Mid-sized Enterprises Research Articles

Accelerating data analytics adoption in small and mid-size enterprises: A Singapore context

As with other technologies, decisions to adopt data analytics (DA) can create challenges, particularly for small and mid-size enterprises (SMEs), due to resource constraints. Our research assessed the factors that could accelerate DA adoption in SMEs. In Singapore, one-third of SMEs have yet to adopt DA, and it remains unknown how they plan their business strategies to stay ahead of competitors. To investigate how SMEs in Singapore embrace DA, this study used a framework of technological acceptance. Our analysis suggests that management and government support are critical to accelerating DA adoption in SMEs. Management and owners of SMEs must take the lead to explain the importance and relevance of data analytics to their companies, while the government could assist SMEs through grants, tax relief and subsidies to minimize the cost burden of adopting DA.

Commercialization networks in emerging technologies: the case of UK nanotechnology small and midsize enterprises

AbstractThis paper investigates how small and midsize enterprises (SMEs) utilize networks to commercialize emerging technologies. We build on literature on SMEs and innovation, networks, and how innovation occurs within collaborative arrangements. Contrasting network types and their influences on commercialization outcomes are probed in the context of SME value chain positions. An exploratory study is undertaken to offer a framework and findings that provide context and insight. We consider roles of SME agency and strategy to put forward a framework of network types. Using a multiple case approach of a sample of UK nanotechnology SMEs, value-chain positions and networks for commercialization are examined. Data are collected through semi-structured primary interviews with managers and informants and from secondary business databases and other sources.Commercialization outcomes are found to vary by SME network type and value chain positioning. SMEs can proactively create SME-led, peer-SME or broker-led networks that aid commercialization. SME-led networks enable successful commercialization of upstream and midstream products. Peer- SME networks are used for downstream commercialization. Broker-led networks facilitate commercialization in the upstream part of the value chain. Hybrid networks are used where SMEs pursue multiple commercialization strategies. Reactive approaches to networking and interrupted networks, regardless of value chain position, are unfavourable for commercialization. The study’s conceptual and managerial implications are discussed.

Extending the lean value stream mapping to the context of Industry 4.0: An agent-based technology approach

With the advancement of the 4th industrial revolution and its enabling technologies, researchers and practitioners discuss the mutual relationships and integration of Lean manufacturing with Industry 4.0 to enhance the manufacturing sector’s competitiveness. However, the literature falls short on how Lean principles and practices can support Industry 4.0. To contribute to reducing this research gap, this study explores the integration of the Lean practice value stream mapping (VSM) with hybrid simulation (HS) that combines discrete event and agent-based modelling and simulation. It aims to extend VSM scope to the context of Industry 4.0 to help Industry 4.0 initiatives in manufacturing companies, especially in small and mid-size enterprises (SMEs), wherein managerial approaches are still scarce, enabling it to capture the behaviour of more complex entities and distributed production systems. An HS-VSM framework is proposed, and its use is demonstrated through a proof-of-concept case developed in an SME from the furniture and related product manufacturing sector in Quebec, Canada. This study indicates that VSM combined with HS can assist Industry 4.0 roadmap development and help companies understand changes in materials, equipment, processes, and information flows associated with Industry 4.0 application scenarios.

Evaluation of occupational exposure to heat stress and working practices in the small and mid-sized manufacturing industries of Lahore, Pakistan

Background: Climate change is evident around the globe causing heat stress as an emerging public health problem for people working in tropical and subtropical areas. Occupational heat stress can impact the health and productivity of small and mid-sized enterprise workers. Objective: This study aimed to profile the indoor thermal environmental conditions and modify the working practices by recommending the work/rest cycle according to the international organization for standardization 7243. Study Design: This cross-sectional study design included eight industrial (Iron spare parts manufacturing) small and mid-size enterprises in Lahore, Pakistan. The indoor thermal environment, including globe temperature, natural wet bulb temperature, ambient temperature, relative humidity, and air velocity, were recorded during summer to measure the wet bulb globe temperature (WBGT). Quest heat stress meter (model 2500), modified Testo loggers (177-T4), and EL-USB-2-LCD data loggers were placed at different working stations to measure these thermal environmental parameters. A self-administered questionnaire was used to measure the workers’ demographic characteristics and working practices. The International Organization for Standardization 7243 reference was used to estimate and recommend the work/rest cycle. Results: 138 workers aged 28.59 ± 10.46 years participated in this study. Continuous work of 8.8 ± 1.5 hours per day with a conventional resting period of 30-60 minutes was recorded on a typical working day. The indoor wet bulb globe temperature ranged from 26.8°C to 36.4°C. The workers were registered for low (72.5%), moderate (18.1%), and high (9.4%) metabolic rates according to the International Organization for Standardization 7243 reference values. Conclusion: A high wet bulb globe temperature was recorded in the selected small and mid-sized enterprises making these workers vulnerable to heat stress and related illnesses. Work/rest cycle evaluation suggested that the workers were required to improve their cool-down time by avoiding continuous exposure to high temperatures and reducing the metabolic rate.

How do Chinese SMEs enhance technological innovation capability? From the perspective of innovation ecosystem

PurposeThe purpose of this study is to investigate the influence mechanisms of multi-level ecological participants on technological innovation capabilities within the focal small and mid-size enterprises' (SME) innovation ecosystem. The author examines the moderating role of the innovation ecological environment.Design/methodology/approachWith the lenses of innovation ecosystem theory, technological innovation theory and ecological theory, the author constructs and empirically tests a conceptual framework for exploring the effects of the focal SME's connections with universities and research institutions, and the industrial chain and ecosphere on their independent and collaborative innovation capabilities. The innovation ecological environment is employed as a moderating variable in the proposed model. The author issued email questionnaires to managers at innovative SMEs in Shenzhen, Shanghai and Jiangsu provinces. The data were used for multiple regression analyses to test the hypotheses.FindingsAs predicted, the author found that SMEs’ cooperation with universities and research institutions positively affects independent and collaborative innovation capability. The relationships between the industrial chain, the ecosphere and independent and collaborative innovation capabilities are all inverted U-shaped. Additionally, the author demonstrates that the innovation ecological environment positively moderates relationships between the focal SME's ecological participants and these two types of technological innovation capabilities.Originality/valueThe results enrich research on innovation ecosystems and technological innovation capability and provide important managerial implications for Chinese SMEs to enhance their technological innovation capability by constructing and coordinating innovation ecosystems. It also allows China, as well as other developing countries, to cultivate world-class enterprises as an innovative nation.

Willingness for Change to New Norm for Traditional Food Business by SMEs Entrepreneurs

Traditional food represents the cultural identity that becomes an income source for Small and Mid-size enterprises (SMEs) entrepreneurs in Sabah. The sudden presence of COVID-19 since March 2020 has impacted traditional food entrepreneurs. This research examines the readiness of entrepreneurs to innovate their businesses through a new norm. Factor Analysis is used to analyse 21 parameters of a new norm for the traditional food business. This study developed three dimensions: enhancing existing business, new norm business and improving business skills. Entrepreneurs need to prepare strategies to meet new business norms. Support from the government and agencies is required to enhance SME entrepreneurs' business capabilities.

클라우드 서비스 기반 회계정보시스템의 혁신 특성이 혁신 태도와 수용 의도에 미치는 영향

This study attempted to examine factors affecting the innovation acceptance, resistance and use intention of small & mid－sized enterprises (SMSEs)’ accounting cloud services and propose a plan to improve the intention to use their accounting cloud services. For this, a questionnaire survey was performed against 122 SMSEs which have used an accounting information system, and the results found the followings：‘Relative advantage’, ‘reduction of maintenance costs’ and ‘system security concern’ revealed a statistically significant effect on innovation acceptance while ‘reduction of maintenance costs’ and ‘system security concern’ had a significant influence on resistance to innovation. Even though innovation acceptance had a significant effect on use intention, resistance to innovation didn’t show any significant influence on use intention. Therefore, it is required to further emphasize the advertisement of cloud services and maintenance costs for the introduction of an accounting cloud system. Since it is difficult to accept innovation as ‘system security concern’ increases, it is important to have an R&D strategy for national policy support focusing on resolving such security issues and development of security technologies.

Data analytics in small and mid-size enterprises: Enablers and inhibitors for business value and firm performance

A critical question arises as to whether data analytics (DA) can bring value and improve organizational performance. The benefit offered by DA can be achieved only when organizations are able to direct their attention on the conditioning factors that amplify business value. At the same time, organizations should cautiously resolve the issues that dampen DA business value. This study applied resource-based view (RBV) and the dual factor concept to understand such factors within the Small and Mid-size Enterprises (SMEs) context. The results revealed that information and systems qualities were the catalysts for data analytics business value, whereas lack of understanding and concerns over data security and privacy were the most salient predictors that could prevent SMEs from realizing DA business value. Our study highlights the importance of understanding both enablers and inhibitors in IT business value research. We also offer strategies to stakeholders to help SMEs realize DA business value.

Do Islamic Banking Financial Instruments Achieve Equitable Income and Wealth Distribution?

The study investigates empirically whether the current practices of Sharīʿah-based financing contracts namely, Murabahah, Musharakah, Mudarabah, Istisna, Bai Bithaman Ajil, Ijarah and other contracts in the Malaysian Islamic banking industry achieved equitable income and wealth distribution. To do so, the study applied the bounds test and ARDL model to investigate the relationship between Sharīʿah-based financing contracts and Malaysian GINI coefficient index over the period from 1Q 2014 to 1Q 2019. In analyzing the long- and short-run implications, it was found that the practice of such Sharīʿah-based financing contracts in the Islamic banking industry achieved equitable income and wealth distribution in Malaysia using Murabahah, Mudarabah, Istisna, Bai Bithaman Ajil, and other (i.e., forward Ijarah) financing contracts. On the other hand, the findings indicated that Musharakah and Ijarah-based financing contract practices did not achieve equitable income and wealth distribution in Malaysia. This may be because the current practices of both contracts which seem to be handled as debts instruments and designed to the benefit of the banking sector only. To improve the Islamic banks’ financing practices in Malaysia, the outcomes of the study suggest that bank operators should strengthen the weight of Sharīʿah-based profit and loss sharing financing contracts with small and mid-size enterprises (SMEs) instead of corporations. In other words, Islamic banks are able to achieve fair income and wealth distribution and uphold the concept of justice for all by gradually increasing Musharakah-based financing for SMEs that can potentially grow and create economic value. Further, to solve the problem of Ijarah contract practices, Islamic banks must take steps to enhance the requirements of Ijarah contracts, specifically ownership transformation, maintenance responsibility, default penalty, and the issue of legal treatment as well as bear the costs, risks and rewards related to the leasing asset instead of borne by the clint. The empirical findings of the study will provide valuable input for banks policymakers, particularly central banks, and Islamic bank management to evaluate the current practice of Islamic finance and proactively correct shortcomings to achieve equitable wealth distribution. This study is a pioneering investigation that empirically evaluates whether the current practices of Islamic banking financial instruments achieve the aims of the equitable financial system, and ensure that Islamic banks, as intermediaries, address the issue of inequality and attain equitable wealth distribution worldwide.

The Maturity of Corporate Websites as a Digital Communication Channel in Portuguese SMEs’ Process of Adopting E-Commerce

This study aims to determine the maturity of the websites of Portuguese small and mid-sized enterprises (SMEs) as a basic form of digital communication in the sequential process of incorporation of e-commerce. The starting premise is that there is a relationship between the level of maturity reached in the SMEs’ websites as digital tools that allow firms to communicate effectively, and the adoption of e-commerce. To study this, a representative sample of 381 SMEs located in Portugal and selected through stratified random sampling was analysed. To assess the degree of maturity of the websites, a sequential validation model, the extended model of internet commerce adoption (E-MICA), was applied. This information was crossed with some descriptive variables such as the volume of business, the location, the number of employees, and the sector of activity of the SMEs. The results showed that, in general terms, there predominant websites that limit their interaction to promoting products and services thus present a low level of maturity. While the sector of activity, the volume of income, and the location of the firm are decisive for the maturity of the websites as a form of digital communication in the process of incorporating e-commerce, the number of employees is not.

SME business performance: an analysis of economic activities by sectors and subsectors in Guanajuato, Mexico

This article identifies the factors that influence business performance (BP) in the construction, trade, and services sectors, as well as sub-sectors and branches of the manufacturing sector of small and mid-size enterprises (SME) in the state of Guanajuato, Mexico. A quantitative, descriptive, and correlational statistical analysis was performed on a sample of 460 enterprises, estimating a linear regression model using the ordinary least squares (OLS) method. Empirical evidence reveals that the construction, trade, and services sectors agree that profitability, efficient internal processes, and low labor absenteeism are those factors that mostly influence BP. On the other hand, in sub-sectors of low-technology manufacturing (minerals, metals, plastic and rubber; textile; and leather and substitute materials), the quality of product is the factor viewed as the most relevant to explain BP in Mexican SME.

Sustainability Strategies of Equipment Introduction and Overcapacity Risk Sharing in Mask Emergency Supply Chains during Pandemics

The sustainability of the mask emergency supply chain faces two problems during the current COVID-19 pandemic. First, mask manufacturers are mainly small and mid-size enterprises, resulting in a lack of funds and credit lines for the introduction of equipment. Second, the periodicity and uncertainty of pandemics create overcapacity risk for the mask emergency supply chain. To solve these problems, this study incorporates financial leasing institutions and the government into the mask emergency supply chain. Based on a questionnaire survey of practitioners of financial leasing institutions, the relationship between mask manufacturers, financial leasing institutions, and the government in the mask supply chain is analyzed through a game model, and the behavior of mask manufacturers to reduce the scale of mask production after the occurrence of overcapacity is investigated using the cusp catastrophe theory. We find that in the case of masks’ overcapacity, mask manufacturers tend to continue production. Finally, we propose that financial leasing institutions should lease mask production equipment to mask manufacturers under the guarantee of the government and develop a mechanism for the three parties to jointly share the risk of mask overcapacity, aiming at ensuring the sustainable manufacturing of masks during the pandemic.

Which crisis strategies are (expectedly) effective among SMEs during COVID-19?

We investigate COVID-19 as a disabling and an enabling mechanism for small and mid-size enterprises (SMEs), particularly how SMEs’ crisis strategies might help them through the crisis. SMEs can follow a retrenchment strategy, a persevering strategy, or an innovation strategy, and they can do so narrowly or broadly. Using a representative sample of Danish SMEs, we test how crisis strategies are associated with turnover expectations. We find distinct differences in how effective crisis strategies are linked to turnover expectations, depending on how the crisis affected the SMEs in the first place (i.e., the SMEs were crisis victims, crisis immunes, or crisis exploiters).

Commercializing Emerging Technologies through Networks: Insights from UK Nanotechnology SMEs

This research investigates how small and midsize enterprises (SMEs) manage in networks for commercializing emerging technologies. Contrasting network types and their influences on commercialization outcomes are probed in the context of SME value chain positions. We build on literature on SMEs and innovation, networks, and how innovation occurs within collaborative arrangements. In a multiple case approach, 20 UK nanotechnology SMEs and their value-chain positions and strategic nets for commercialization are examined. Data are collected through 40 semi-structured primary interviews with managers and informants and from secondary business databases and other sources. We consider roles of SME agency and strategy to put forward a refined six-part framework of network types. Commercialization outcomes are found to vary by SME strategic net type and value chain positioning. SMEs can proactively create incumbent-oriented, SME-oriented or broker-oriented nets that aid commercialization. Incumbent-oriented nets with proactive SMEs enable successful commercialization of upstream and midstream products. SME-oriented nets are used for downstream commercialization. Broker-oriented nets facilitate commercialization in the upstream part of the value chain. Hybrid nets are used where SMEs pursue multiple commercialization strategies. Reactive approaches to networking and interrupted nets are unfavourable for commercialization. The study’s conceptual and managerial implications are discussed.

Un-used Bank Capital Buffers and Credit Supply Shocks at SMEs during the Pandemic

<ns2:p>Did banks curb lending to creditworthy small and mid-sized enterprises (SME) during the COVID-19 pandemic? Sitting on top of minimum capital requirements, regulatory capital buffers introduced after the 2008 global financial crisis (GFC) are costly regions of "rainy day" equity capital designed to absorb losses and provide lending capacity in a downturn. Using a novel set of confidential loan level data that includes private SME firms, we show that "buffer-constrained" banks (those entering the pandemic with capital ratios close to this regulatory buffer region) reduced loan commitments to SME firms by an average of 1.4 percent more (quarterly) and were 4 percent more likely to end pre-existing lending relationships during the pandemic as compared to "buffer-unconstrained" banks (those entering the pandemic with capital ratios far from the regulatory capital buffer region). We further find heterogenous effects across firms, as buffer-constrained banks disproportionately curtailed credit to three types of borrowers: (1) private, bank-dependent SME firms, (2) firms whose lending relationships were relatively young, and (3) firms whose pre-pandemic credit lines contractually matured at the start of the pandemic (and thus were up for renegotiation). While the post-2008 period saw the rise of banking system capital to historically high levels, these capital buffers went effectively unused during the pandemic. To the best of our knowledge, our study is the first to: (1) empirically test the usability of these Basel III regulatory buffers in a downturn, and (2) contribute a bank capital-based transmission channel to the literature studying how the pandemic transmitted shocks to SME firms.</ns2:p>

Knowledge management stocks in Serbian small and mid-sized enterprises

The study measures and analyzes the representation level of the knowledge management (KM) strategy in Serbian enterprises. KM is the skill of acquiring and allocating knowledge resources in order to achieve greater business efficiency and profitability of enterprises. The paper starts from Romer's (1986, 2018) theory of increasing yields. According to Romer, a stable growth is the result of endogenous accumulation of knowledge. The aim of this paper is to determine the extent to which elements of KM are represented in small and mid-sized Serbian enterprises. The instrument that was constructed for measuring KM contained 11 variables, categorized into 5 complex indicators: academic education, employee training, storage, dissemination and technical support. An online questionnaire with closed responses, interval and Likert scales was used for collecting the data. The survey was conducted on the sample of 157 enterprises in 15 Serbian cities, 60 of which were small and 34 mid-sized enterprises. The data were processed by the 'custom tables with column proportion of significance' statistical technique. Based on the results for small and mid-sized enterprises, measurement indicators such as employee training, dissemination and technical support show a positive level, while the 'storage' and 'academic education' indicator have a partial presence of KM stocks. When it comes to small enterprises, in terms of individual variables that are a constituent part of indicators, the largest stocks of KM were measured with the variable ’number of employees with bachelor’s degree’ where 98.3% of employees have a bachelor’s degree, as well as with the variable 'presence of intranets', within which 96.7% of enterprises are partially or fully associated with this medium. When it comes to mid-sized enterprises, viewed by individual variables, the largest stocks of KM are registered in the variables ’number of employees with bachelor’s degree' (100%) and 'frequency of attending educational seminars outside the enterprise (94%).

Predictions of failure and financial distress: A study on Portuguese high and medium-high technology small and mid-sized enterprises

Predictions of failure and financial distress: A study on Portuguese high and medium-high technology small and mid-sized enterprises

MALAYSIAN JOB SHOP MANUFACTURING’S PRACTICES: CHARACTERISTICS IDENTIFICATION USING THE RASCH MEASUREMENT THEORY

The purpose of this study is to investigate the characteristics useful for Malaysian Job-Shop manufacturing small and mid-size enterprises SMEs to craft their “Best-Practices” using the Rasch Measurement Theory. The research aimed at answering fundamental questions that every enterprise is confronting relating to their practices that is transformed into performance. The existing data from the census sampling comprising 522 Job-Shop manufacturing SMEs, which was collected for previous research. The Rasch model, was used to summarize respondents on variables under study, involving the testing of variables and model testing. In general, the analysis results revealed that for most respondents, their desire is to ensure their processes are understandable and easy to conduct, meaning that activities, that consider employees' opinions and allow a certain degree of flexibility within the enterprise activites have a significant impact on their ability to capture a portion of the market. The result also indicates that 14 items from the 5 identified determinants were highly considered by the respondents in choosing their practice, thus, can be identified as traits or characteristics for practice adoption. The findings will be useful for the enterprises to craft their own best practices at the micro or a macro level in order to continuously improve their performance. © 2021. All Rights Reserved.

Multi-objective reconfigurable production line scheduling forsmart home appliances

In a typical discrete manufacturing process, a new type of reconfigurable production line is introduced, which aims to help small- and mid-size enterprises to improve machine utilization and reduce production cost. In order to effectively handle the production scheduling problem for the manufacturing system, an improved multi-objective particle swarm optimization algorithm based on Brownian motion (MOPSO-BM) is proposed. Since the existing MOPSO algorithms are easily stuck in the local optimum, the global search ability of the proposed method is enhanced based on the random motion mechanism of the BM. To further strengthen the global search capacity, a strategy of fitting the inertia weight with the piecewise Gaussian cumulative distribution function (GCDF) is included, which helps to maintain an excellent convergence rate of the algorithm. Based on the commonly used indicators generational distance (GD) and hypervolume (HV), we compare the MOPSO-BM with several other latest algorithms on the benchmark functions, and it shows a better overall performance. Furthermore, for a real reconfigurable production line of smart home appliances, three algorithms, namely non-dominated sorting genetic algorithm-II (NSGA-II), decomposition-based MOPSO (dMOPSO) and MOPSO-BM, are applied to tackle the scheduling problem. It is demonstrated that MOPSO-BM outperforms the others in terms of convergence rate and quality of solutions.

New Norm for Traditional Food Business by SMEs Entrepreneurs: Case Study in Kota Kinabalu, Sabah

Traditional food represents the cultural identity that becomes income sources for Small and Mid-size enterprises (SMEs) entrepreneurs in Sabah. The sudden presence of the COVID-19 since March 2020 has impacted traditional food entrepreneurs. This research examines what strategies SMEs entrepreneurs are implementing. Factor Analysis is used to analyse 21 parameters of a new norm for the traditional food business. This study succeeded in developing three dimensions: enhancing existing business, new norm business and improving business skills. Entrepreneurs need to prepare strategies to meet new business norms. Support from the government and various agencies is required to enhance SME entrepreneurs' business capabilities. Key Words; Traditional Food, SMEs, Covid-19, New norms eISSN: 2398-4287© 2021. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open access article under the CC BYNC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians/Africans/Arabians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia. DOI: https://doi.org/10.21834/ebpj.v6i16.2667