Medium-sized Manufacturing Enterprises Research Articles

Digital strategy for firm performance- mediating role of digital platform capabilities and digital culture in manufacturing SMEs

ABSTRACT Manufacturing businesses worldwide increasingly strive to devise and implement strategies to succeed in digital transformation and improve their performance by developing digital capabilities and competencies. We argue that this process should incorporate a culture and dynamic capabilities that support this transformation. In this vein, we propose and test a model explaining the impact of digital strategy on firm performance and the mediation mechanisms of digital platform capabilities and digital culture in this relationship. Our analysis of time-lagged data, gathered from middle and top managers of small and medium-sized manufacturing enterprises (SMEs), affirms our initial hypotheses: digital strategy positively influences firm performance, and digital platform capabilities and organisational culture mediate this relationship. Our study carries significant implications for manufacturing SMEs, particularly those in developing countries, as it underscores the pivotal role of digital platform capabilities and cultural factors in leveraging digital strategies for competitive advantage.

How Can Small and Medium-Sized Manufacturing Enterprises Improve Green Innovation Performance through Innovation Ecosystems?

Under the fierce business competition and sustainable development pressure, the pattern of enterprise innovation has gradually changed from independent innovation to cooperative innovation. As a collection of multi-type innovation actors, the innovation ecosystem provides opportunities and platforms for cooperative innovation among government–industry–university–research institutions. While the present studies on innovation ecosystems are mostly from the perspective of the system level, few studies pay attention to the innovation mechanism of small and medium-sized manufacturing enterprises (SMMEs) in the innovation ecosystem. Therefore, this study takes SMMEs embedded in innovation ecosystems as research objects and explores the factors affecting green innovation. We constructed a theoretical model to explain the effect of innovation eco-embeddedness on green innovation performance based on ecosystem theory and network embeddedness theory; we then collected 363 samples of SMMEs in China through surveys and further tested the data empirically. The results show that the innovation eco-embeddedness (IEE) of SMMEs has a positive effect on their green innovation performance (GIP), and their green value co-creation practices (GVCCPs) partially mediate the relationship between IEE and GIP. Moreover, ecological norms (ENs) in the innovation ecosystem not only positively moderate the impact of IEE on GVCCPs but also positively moderate the mediating role of GVCCPs. This study enriches the relevant research on innovation ecosystems from the perspective of non-core enterprises and provides a theoretical basis and practical reference for SMMEs to implement green innovation practices and realize growth through innovation ecosystems.

Exploring the mechanism of digital technology affordance on manufacturing enterprises’ digital competitive advantage

PurposeDigital technology is crucial to improving a firm’s core competitiveness. However, the existing research on the relationship therein shows heterogeneity. Using digital technology can enhance competitive advantage, which is crucial for enterprises and scholars. Thus, based on the digital technology affordance theory, this study explores the relationship between digital technology affordance and digital competitive advantage.Design/methodology/approachSurvey data were collected from 509 large and medium-sized manufacturing enterprises in China, and multiple regression and structural equation modelling were used to test the hypotheses. Specifically, we discuss the mediating role of digital business capability and the moderating role of organisational legitimacy.FindingsEditability, association and visibility positively affect digital competitive advantage, and their coordination is strong. Further, they can help enterprises gain a competitive advantage through the mediating role of digital business capability (digital strategy, digital integration and regulation). However, the influence effect and action path differ per in different dimensions. Organisational legitimacy positively moderates the mediating effect of digital integration and regulation, and there is a moderated mediating effect. However, the moderating effect on the mediating effect of digital strategy is not significant.Originality/valueExisting studies neglect the relationship between the coordination of digital technology functions and digital competitive advantage. This study provides a new theoretical explanation for an in-depth understanding of these issues. These findings promote the development of innovation theory and provide valuable insights for guiding the application of digital technology in enterprises.

Digital inclusive finance and corporate environmental performance: Insights from Chinese micro, small- and medium-sized manufacturing enterprises

Extensive research has discussed digital inclusive finance’s (DIF) rapid growth in financial services and its vital economic role; however, limited research addresses its potential to mitigate micro, small- and medium-sized enterprise (MSME) financing constraints and generate environmental benefits. This study empirically investigates the effects of DIF on Chinese MSMEs’ environmental performance using a substantial manufacturer sample. The findings indicate that DIF significantly reduces the wastewater discharge intensity of MSMEs. Furthermore, DIF has a more pronounced environmental effect on non-state-owned firms, SMEs, firms in areas with more significant emission reduction pressure, and those in the eastern region. Further mechanism analysis reveals that DIF can ease the financing constraints of MSMEs. Moreover, strengthening terminal treatment, optimizing the energy consumption structure, and increasing investment in research and development are significant pathways through which DIF affects corporate environmental performance. Finally, this study proposes some policy implications to promote the green transformation of MSMEs.

Digital innovation ecosystem and innovation of SMEs: A case study of Anker

Digital technology has changed the original product form, the way of new product production process, business model and organizational form, and even overturned the basic assumptions of many innovation theories. Embedding digital innovation ecosystem makes it possible for small and medium-sized manufacturing enterprises to create value from the production side in the industrial era to the demand side in the digital economy era. Through a typical vertical case analysis, this paper reveals the internal mechanism and process of digital innovation ecosystem enpowers the innovation of small and medium-sized manufacturing enterprises. The research results show that the embedding of digital innovation ecosystem has a significant positive impact on the innovation performance of small and medium-sized manufacturing enterprises, and value co-creation plays an intermediary role between digital innovation ecosystem and the innovation performance of small and medium-sized manufacturing enterprises. This paper puts forward the innovation theoretical framework of small and medium-sized manufacturing enterprises from the perspective of digital innovation ecosystem.

Sustainable procurement practices and sustainable performance: evidence from small and medium-sized manufacturing enterprises in an emerging economy

Sustainable procurement practices and sustainable performance: evidence from small and medium-sized manufacturing enterprises in an emerging economy

4IR 시대 중국 중소수출제조기업의 Green SCM 기술혁신과 지속가능성과 간 관계 연구

Purpose: This paper analyzes the impact of Green SCM technological innovations on corporate sustainability in the 4IR era. Furthermore, it examines the mediating effect of green dynamic capabilities (GDCs) and the moderated mediating effect of government technology support in this process.
 Research design, data, and methodology: F or t his p aper, a s urvey o f s mall a nd medium-sized manufacturing enterprises was conducted in Shandong Province, China, collecting 282 valid data sets. The data were analyzed using SPSS v. 28.0 and the Process Macro v. 3.5 extension program.
 Results: First, green SCM technological innovation significantly enhances GDCs. Second, green SCM technological innovation has a significant positive impact on sustainability. Third, in the relationship between green SCM technological innovation and sustainability performance, GDCs have a significant mediating effect. Lastly, depending on the GDCs, government technology support has a statistically significant moderated mediating effect on the relationship pathway impacting sustainability.
 Conclusions: Implementing innovations in green SCM contributes to the enhancement of an enterprise's GDCs and improves sustainable outcomes. Therefore, small and medium-sized manufacturing enterprises should actively incorporate advanced technologies into green SCM to enhance supply chain efficiency while mitigating environmental impacts.

Environmental orientation and sustainability performance; the mediated moderation effects of green supply chain management practices and institutional pressure

This research delves into the examination of how green supply chain management practices serve as a channel, and how institutional pressures act as limiting factors, affecting the connection between environmental orientation and sustainability performance. The investigation draws on data collected from 202 small and medium-sized manufacturing enterprises (SMEs) in Ghana. The results of the study indicate that while environmental orientation has a positive impact on environmental performance, it does not significantly influence economic performance. Moreover, the study highlights that the relationship between environmental orientation and environmental performance is mediated by the adoption of green supply chain management practices. However, this mediation is not observed in the context of economic performance. Notably, the research underscores that the positive indirect correlation between environmental orientation and environmental performance, facilitated by green supply chain management practices, remains significant with the boundaries of regulatory institutional pressure. This study makes a noteworthy contribution by offering empirical evidence from an African economy, shedding light on the effectiveness of institutional pressures and environmental orientation on both economic and environmental performance.

How flexible leadership ability affects manufacturing enterprises' digital transformation willingness: The role of innovation commitment and environmental dynamics.

Existing studies have recognized the significance of leadership ability on enterprises' digital transformation. However, few of them pay attention to the mechanism of flexible leadership ability (FLA) on digital transformation willingness (DTW). This study aims to explore the influence mechanism of FLA on DTW based on the ability-behavior-purpose logical framework. Survey data is collected from 509 large and medium-sized manufacturing enterprises in China, and multiple regression and PROCESS Macro methods are used for hypothesis testing. This study mainly discusses the impact of FLA on DTW, as well as the mediating role of innovation commitment (IC) and the moderating role of environmental dynamics (ED). Results show that FLA promotes DTW directly (β = 0.574, p<0.001) and indirectly, that is, through IC (the main effect decreased from (β = 0.574, p<0.001) to (β = 0.40, p<0.001). Additionally, the moderating role of ED affects the direct path of FLA on DTW (β = 0.167, p<0.001) as well as the two indirect paths (β = 0.196, p<0.001; β = 0.104, p<0.01). The findings contribute to the advancement of flexible leadership theory, and provide practical advice for enterprises on how to implement digital transformation.

Government regulatory policies for digital transformation in small and medium-sized manufacturing enterprises: an evolutionary game analysis

In recent years, digital transformation (DT) has become an inevitable choice for manufacturing enterprises to achieve sustainable development. As a large number of enterprise groups, small and medium-sized manufacturing enterprises (SMMEs) play an important role in the industrial development of China. However, due to insufficient resource investment, high transformation costs, lack of talents, and unclear transformation pathways, how the government can help SMMEs carry out DT has become an important research topic. Based on this background, this study considers the strategies of government, third-party demonstration enterprises (TDEs) and SMMEs, develops and builds a three-party evolutionary game model, and puts forward a governance mechanism for effective DT strategies (TDEs guide DT and SMMEs conduct DT). This study has drawn many interesting conclusions. (1) If the government chooses not to regulate, when SMMEs are risk-neutral, the government only needs to increase the rewards for SMMEs to effectively promote DT. When SMMEs are risk-averse, the government needs to increase the penalties for SMMEs and increase the rewards for TDEs to effectively promote DT. (2) If the government chooses to regulate, when SMMEs are risk-neutral, the government needs to increase the penalties for both TDEs and SMMEs to effectively promote DT. When SMMEs are risk-averse, the government only needs to increase penalties on SMMEs or TDEs to effectively promote DT. (3) When SMMEs are risk-averse, the government’s best choice is regulation. Because when the government does not regulate, DT may fail even if the government increases the penalties for SMMEs and increases the incentives for TDEs.

Development of a cloud intelligent machine monitoring and control system

Facing the trend of Industry 4.0, the cloud-based supervisory control and data acquisition (SCADA) system employing cloud computing and IoT technology can help the manufacturing industry reduce software investment and system maintenance costs. However, manufacturers may need to install new sensors and controllers, the connection of SCADA system and shop floor machine controller, monitoring dashboard design and implementation usually need to outsource to an experienced system integration company, which may impede medium-sized manufacturing enterprises (SMEs). This paper aims to develop a cloud-based intelligent machine monitoring and control system (CIM-MCS) framework, the service structure, and approach to deploying the CIM-MCS in a public cloud infrastructure platform and service provider. The package diagram is proposed for building the CIM-MCS’s virtual factory model to improve modeling efficiency and data stability. CIM-MCS and its SCADA application in a leading automatic filling and packaging production line show that the CIM-MCS is easy to implement. The transmission time is short and acceptable for practical application. The integration of CIM-MCS with a cloud-based advanced planning scheduling system has the advantage of real-time monitoring, production progress reporting, scheduling, and dispatching and achieves the goal of anytime, anywhere, anyone, and any platform operating an intelligent factory.

Knowledge heterogeneity and corporate innovation performance: The mediating influence of task conflict and relationship conflict.

Innovation has emerged as a crucial factor in the sustenance and growth of enterprises. Nonetheless, small and medium-sized enterprises (SMEs) confront numerous challenges in their pursuit of innovation, owing to constraints in capital, expertise, and knowledge resources. Drawing on the resource-based theory and the input-process-output (IPO) model, this study devises a mechanism model to assess the impact of knowledge heterogeneity and innovation performance on small and medium-sized manufacturing enterprises in Guizhou Province, China. The objective is to offer recommendations for the advancement and innovation of enterprises with relative knowledge resource deficiencies. A total of 324 valid questionnaires were gathered, and the acquired data were analyzed employing SPSS 23.0 and Amos 26.0. The findings reveal that knowledge heterogeneity exerts a significantly positive influence on innovation performance. Task conflict and relationship conflict serve as partial mediators in the effects of knowledge heterogeneity on innovation performance. By capitalizing on the heterogeneity of internal and external knowledge, enterprises can effectively enhance their innovation outcomes. Furthermore, the study demonstrates that knowledge sharing possesses a moderating effect on the impact of knowledge heterogeneity on task conflict, relationship conflict, and innovation performance. In a conducive sharing environment, the ultimate effect of knowledge heterogeneity on innovation is subject to alteration.

Post-Crisis Sustainable Performance of Manufacturing SMEs: The Roles of Positive Orientation, Financial Slack, and External Networks

This paper examines the roles of positive orientation, financial slack, and external networks in the sustainability of small and medium-sized manufacturing enterprises (SMEs) following the global financial crisis in 2008–2009. The financial crisis is a good example of sudden, unexpected external disruption, in which a firm’s resilience as well as sustainability is seriously tested. Using a sample of 207 manufacturing SMEs in Hong Kong, we tested the simultaneous effects of positive orientation, financial slack, and external networks on post-crisis firm performance through strategic change. Our findings show that positive orientation and external networks play an enabling role in strategic change, which in turn leads to high performance. The enabling role of financial slack is, however, not supported. The study also shows that positive orientation, financial slack, and external networks play a buffering role, which has direct and positive effects on performance. The results provide academics and practitioners with a new perspective of the underlying mechanism that sustains the firm performance of SMEs under a financial crisis.

MOTIVATION PROGRAM IN SMALL AND MEDIUM-SIZED MANUFACTURING ENTERPRISES BASED ON THE PREFERENCE FOR NEEDS

Motivation and meeting the employee needs as a part of human resource management fundamentally affect the improvement of job performance and corporate culture. The research fills in the research gap in the field of the definition of the level of motivation factors in small and medium-sized manufacturing enterprises following the preferences for their motivation needs in terms of the selected socio-demographic characteristics such as gender, age, completed education, and job position. A questionnaire was used to determine the level of motivation needs. The proposal of motivation factors as a part of the motivation programme is defined according to selected sociodemographic factors. Findings that a significant increase in motivation needs relating to finance, and work conditions occurred due to the COVID-19 pandemic can be considered a result of the study. The level of motivation does not vary in terms of gender and age. The differences are determined in terms of job position and education. The proposed motivation programme is tailored to the preferences of employees.

Risk Identification Model for Lean Manufacturing Improvement

Small- and medium-sized manufacturing enterprises (SMEs) were confronted with a variety of difficulties due to the increasingly complex market environment, and many of them could not make enough profits to proceed with their manufacturing tasks. The objective of this study was to develop a model of risk management by integrating several risk tools at manufacturing companies. This study was also intended to improve the decision making by providing quantitative analysis at each step of risk management and improve lean practices. Risk quantitative analysis methods such as failure modes and effects analysis (FMEA) and multi-objective optimization on the basis of ratio analysis (MOORA) were applied in this study to identify the potential risks. Moreover, the risk assessment was used to categorize risks into different severity levels. The manufacturing data obtained from a case study was utilised to calculate the risk priority number (RPN). The risk mitigation actions were formulated to reduce the original RPN and the final RPN value decreased to a normal standard in the end. Overall, this study optimised the risk management of one case study SME and improved lean manufacturing practices. By establishing the risk identification model and applying common lean manufacturing concepts in reducing wastes at actual manufacturing processes, the manufacturing enterprise could manage to optimize the operations and increase the actual manufacturing productivity. The machining and assembly processes of diesel engines were optimized and improved with the decrease of RPN and the selection of the CK6150 CNC lathe that owns the highest MOORA assessment value.

Good Business Practices Improve Productivity in Myanmar’s Manufacturing Sector

We investigate the relationship between business practices and enterprise productivity using panel data with matched employer and employee information from Myanmar. The data show that micro, small, and medium-sized manufacturing enterprises in Myanmar typically adopt only a few modern business practices, and the persistence in the use is extremely low. Even so, we find a positive and economically important association between business practices and productivity. Specifically, the empirical results show that a one standard deviation difference in applied business practices (equivalent to applying an additional 4 to 5 of the 20 business practices in focus) is associated with an 8–10 per cent difference in labour productivity. Utilising the employer–employee information to estimate Mincer-type wage regressions, we find that workers receive about half to two-thirds of the productivity gain in higher wages. Overall, our findings support the notion of business practices as a production technology, and we find that workers and managers split the productivity gains evenly.

Linking internal environmental capabilities to sustainable competitive advantage in manufacturing SMEs: The mediating role of eco-innovation

With the world's growing emphasis on environmental issues and the increased pressure on small and medium-sized manufacturing enterprises (SMEs) to address such issues, sustaining competitiveness has become a critical concern for SMEs. Their organisational resources and capabilities must be configurated to align with environmental requirements to sustain their competitiveness. While mounting research has highlighted the importance of environmental capabilities in facilitating proactive environmental practices, it remains unclear how these capabilities can improve manufacturing SMEs' sustainable competitive advantage (SCA). This study, therefore, has investigated how; green absorptive capacity, organisational capabilities and strategic environmental orientation have affected firms' SCA, along with exploring the mediating effect of eco-innovation in such relationships. Using a sample of 176 manufacturing SMEs in Egypt, a cross-sectional survey approach was adopted to collect data on the research variables. The data were analysed using the Smart-PLS software application, and the results demonstrated the significant roles of; green absorptive capacity and strategic environmental orientation in facilitating eco-innovation, which in turn have helped SMEs sustain their competitive advantage. On the other hand, organisational capabilities did not appear to directly or indirectly affect firms' SCA. Hence, this study may pique the interest of SME managers as it has emphasised the importance of strategic environmental orientation and green absorptive capacity in fostering eco-innovation and sustaining competitive advantage.

Implementation of artificial intelligence at the workplace, considering the work ability of employees

The use of artificial intelligence (AI) as an innovation driver is increasingly gaining importance among small and medium-sized manufacturing enterprises. In order to enable a successful AI implementation, both the business requirements and the needs of human resources must be considered. One construct that brings these dimensions together is the concept of work ability. So far, there is little scientific evidence addressing work ability in the context of AI implementation. Therefore, this article aims to create a multidimensional framework using the results of a qualitative study on employee-friendly implementation of AI-based systems. The framework combines central aspects (implementation stage, AI-autonomy level, and work ability) and helps to identify suitable recommendations for companies to increase acceptance and trust in the implementation process. Based on the developed framework, a first version of a socio-technical AI support tool has been created.

Determinants of the implementation of the quality management systems in SMEs

The implementation of the quality management systems using quality improvement methods, tools and approaches is considered one of the significant aspects to increase the per- formance of enterprises in the market environment and growing competition. Most of the authors studied the impact of any of the available quality management tools or philosophies on the performance of enterprises only on a case-by-case basis. The aim of the paper is, however, to examine the effect of implementing a larger scope of tools, approaches or concepts of quality management on the performance of the enterprise more comprehensively from the perspective of their implementation and the assumption of achieving higher enterprise performance. The paper presents the results of the survey, which was carried out from 2020 to 2021. The survey was focused on the implementation of quality management approaches and techniques in small and mediumsized manufacturing enterprises in Slovakia. A total of 313 small and medium-sized manufacturing enterprises were addressed through questionnaires. The representativeness of the sample was tested using the chi-squared goodness-of-fit test. Pearson’s chi-squared test and analysis of contingency were implemented to test the established research hypotheses. Through the results of the analyses, it can be claimed that there are significant relationships between the use of quality management approaches and techniques and the performance of enterprises measured through return of costs. At the same time, the most common reasons for implementing quality management approaches were analysed, which confirmed the hypothesis about the reasons for improving product quality and increasing customer satisfaction, which were based on theoretical assumptions verified in practice. The results also show the significant differences between the researched industries, which gives an opportunity for increasing the level of quality in individual segments.

Simmelian ties for SMEs' green-innovation improvement in manufacturing industries: mediating and moderating effects

PurposeThis study had a threefold aim: to examine the impact of a Simmelian-tie tripartite alliance on corporate green innovation; to determine the chain-mediating roles of knowledge acquisition and knowledge integration; and to identify the moderating effect of network routines on the relationship between a Simmelian tie and green innovation.Design/methodology/approachData were collected through 487 valid survey questionnaires from Chinese small and medium-sized manufacturing enterprises (SMEs). The authors examined the data through a structural model using partial least-squares structural-equation modeling (PLS-SEM) to test the research hypotheses.FindingsThe results reveal several key factors with positive impacts on enterprise green innovation. Specifically, a Simmelian tie significantly and positively affects enterprise green innovation. The results further reveal that knowledge acquisition and integration play mediating roles, while a network routine positively moderates the relationships among a Simmelian tie, knowledge acquisition and integration, and corporate green innovation.Originality/valueThis study is among the earliest empirical studies to investigate the influence of Simmelian ties on corporate green innovation for manufacturing companies. This study provides a theoretical basis for managers of firms, especially those of SMEs with limited resources, to fully use Simmelian ties to achieve environmentally sustainable innovation. In addition, this study validates and extends knowledge-management theory by verifying the linking roles of knowledge acquisition and integration and facilitating role of network routines.