Small And Medium-sized Enterprises Networks Research Articles

Designing the future of coopetition: An IIoT approach for empowering SME networks

In an era where Information and Communication Technologies (ICT) redefine the boundaries of competition and collaboration, the concept of coopetition — simultaneous competition and cooperation — emerges as a strategic imperative for small and medium-sized enterprises (SMEs). This study presents the design and development of an Industrial Internet of Things (IIoT) artefact designed to enable competition among SMEs. Bringing the Service-Dominant Logic (S-D logic) foundations to IIoT, a Design Science Research (DSR) approach was employed. This approach facilitated the integration of design theory with practical problem-solving, creating the Coopetition IIoT-based System. The primary goal of this solution is to augment the dynamics of coopetition networks, with a particular focus on SMEs. The practical evaluation of the Coopetition IIoT-based System is assessed through a prototype evaluation by experts representing twenty-four manufacturing stone SMEs, a crucial sector in the Portuguese economy. The feedback received was highly positive, indicating a positive evaluation rate of 78.9%. This favourable response highlights the Coopetition IIoT-based System’s proficiency in fostering simultaneous competition and cooperation throughout the lifecycle of business opportunities in SME networks, thereby underscoring its potential as a facilitator of effective competition. Theoretically, this research enriches the application of S-D logic in coopetition networks and advances state-of-the-art IIoT systems. Practically, the Coopetition IIoT-based System demonstrates significant potential in boosting the competitiveness of SMEs in developed economies. Nonetheless, the ultimate efficacy of such IIoT systems will be best determined through real-world application and evaluation. Future research should concentrate on the real-case deployment and assessment of Coopetition IIoT-based Systems within coopetition networks.

Facilitating Value Co-Creation Through Inter-Organizational Information Systems

Many company networks, especially those comprising small- and medium-sized enterprises (SMEs), face the challenge of digitally transforming their value co-creation (VCC). However, this topic, despite its high relevance, remains vastly under-researched. We thus conducted a case study in an SME network to investigate how these companies adapt their internal processes to enable an overarching VCC process in the network and use IT to support it. We first derived a framework of four propositions showing that the modularization of value creation, equality of actors, efficient information and knowledge flow, and inter-organizational information technology support facilitate VCC in these networks. The propositions framework then became our lens to analyze the SME network. Our empirical study enabled us to gain deeper insights into the relationships of the proposed facilitating factors for VCC in company networks and the role of inter-organizational information systems in this context.

A systematic review of human resource management practices in small and medium-sized enterprises

The escalating significance of human resource management (HRM) in small and medium-sized enterprises (SMEs) is underscored through a systematic review and bibliometric analysis of 144 documents from the Scopus database. This paper delineates the evolution of HRM practices within SMEs, identifying four core themes that are increasingly prevalent in scholarly publications. The study leverages content analysis, bibliometrics, and network analysis to map the intellectual structure of the field, providing a comprehensive overview of current trends and future directions. It highlights the necessity of integrating HRM practices as strategic organizational assets and emphasizes their role in enhancing efficiency across global SME networks (Davies, 2017). The growing body of literature suggests a shift towards recognizing the strategic importance of HRM in SMEs, with potential implications for enhancing organizational effectiveness in contemporary and future business environments. This research contributes to the theoretical discourse by testing various HRM theories in the SME context, offering a foundational perspective for understanding HRM challenges and practices in SMEs worldwide.

Practice-oriented methodology for increasing production ramp-up efficiency in global production networks of SME

An increasingly uncertain, customer-centric, and dynamic environment nowadays challenges manufacturing companies on a global scale. To handle this challenge, enterprises are distributing their production in global production networks. To deal with the growing demand for individualization, companies need to diversify their product portfolio. This leads to a growing number of production ramp-ups. Large companies are used to production ramp-ups on a global scale and have developed established tools and methods to optimize ramp-ups. Small and medium-sized enterprises (SME), however lack a consistent and efficient methodology to deal with global production ramp-ups. For this reason, this article presents a practice-oriented methodology for efficiently managing the production ramp-up at different production sites. The methodology consists of three elementary phases: the analysis of the target system and relevant influencing factors, the planning of different phases in the production ramp-up, and the integration of a disruption management model to robustly control ongoing production ramp-ups. For testing its practical suitability, the procedure is exemplarily applied to the production ramp-up of a device for engine management in the automotive supplier market at different sites worldwide.

The enabling role of formalized corporate networks to drive small and medium‐sized enterprises toward sustainability

AbstractThe global economy's transition toward more sustainable development models is undoubtedly grounded on small and medium‐sized enterprises (SMEs). However, SMEs, individual entrepreneurs, and microenterprises have always encountered barriers to implementing social responsibility and sustainability concepts. The paper investigates the enabling role of formalized corporate networks to drive SMEs toward sustainable behaviors. A quantitative nonlinear regression approach is applied to a content analysis of a sample of network contracts coded. The content analysis is applied to analyze the declared objectives, the purpose of the contract, and sustainability areas. An ordered logistic regression is applied on variables related to the behavior of SMEs before entering in the contract and post‐adhesion phases. Data demonstrates how networks of SMEs can be used as enabling factors to boost sustainability among them. Specifically, the study is based on a sample of 96 formalized network contracts (FNCs), including 1486 Italian SMEs in that sustainability‐oriented networks. It offers an evidence‐based perspective on how networks of companies can play a fundamental role in the development of policies aimed at bringing small companies closer to the concept of sustainability (such as eco‐innovations, eco‐efficiency, environmental performance, and social innovations, among others) and its practical implementation. This paper has two significant strengths. The first is that it uses as a sample a set of 1486 companies, including individual entrepreneurs and microenterprises, whose data are usually difficult to collect. The second is that it demonstrates the efficacy of a contractual form that could be scalable to different countries.

Linking coopetition benefits and innovative performance within small and medium-sized enterprises networks: a strategic approach on knowledge sharing and direct collaboration

PurposeThe present study aims to tackle SMEs (small and medium-sized enterprises) managers' awareness of coopetition benefits underpinning the process of knowledge sharing with a view to achieve innovative performance. The scrutiny of coopetition is placed within the context of SMEs strategic networks, which foster a fertile ground for competitive knowledge sharing and direct collaboration among members.Design/methodology/approachIn total, 102 top managers and business owners of European steel SMEs were questioned regarding various issues related to coopetition, knowledge, collaboration and innovative performance strategies. The collected data were analyzed via the technique of partial least squares structural equation modeling (PLS-SEM).FindingsThe obtained values confirm that intense competition in the field stimulates SMEs to become aware of the benefits of coopetition. This awareness directly influences the innovative performance of the SMEs, as well as their interest in competitive knowledge sharing and their willingness to engage in direct collaboration. Direct collaboration catalyzes more intense competitive knowledge sharing at the inter-unit level whereas both direct collaboration and competitive knowledge sharing lead to better innovative performance in the case of the studied steel SMEs.Research limitations/implicationsA key theoretical contribution resides in revealing the influence of manifold factors in the overall equation of innovative performance, integrating competition, coopetition and knowledge sharing as antecedents.Originality/valueThe research advances a phenomenological view on SMEs networks in their strategy to leverage competitive knowledge and enhance system-driven innovation.

Antecedents and Outcomes of Network Involvement in the Internationalization Process: A Case of SMEs from the USA, China, and Russia


 
 
 The internationalization processes of small and medium-sized enterprises (SMEs) differ across economic and cultural environments. Creating an operationalizable and predictive framework to explain them has long been a challenging research task. This task is particularly relevant in an era of reconfiguration of globalization, which directly affects the small business sector. This study proposes a model which includes networking, attitudinal, cultural, and environmental factors as antecedents of the degree of SME internationalization. We collected data and tested this model in three distinct cultural environments: the USA, China, and Russia. The results suggest that attitudinal characteristics of managers, such as global mindset and relationship commitment, condition SMEs network involvement. The influence of network involvement on the degree of SMEs internationalization becomes stronger with increasing environmental turbulence. This study’s findings have practical implications for businesses operating in different countries, as well as governmental organizations and educational institutions.
 
 

Co-creation in networks of SMEs: a conceptual model of the co-creation process

The ability to adopt new digital technology is a very challenging endeavour, especially for small and medium-sized enterprises (SMEs), who because of resource poverty are dependent on external input and cooperation with other companies. Recent research has indicated that co-creation among SMEs is a promising way to overcome such limitations. However, there has been very limited research on the co-creation process, and we have little understanding about how SMEs would go about to establish and run a co-creation network. We propose a conceptual model based on our review of the literature and our empirical findings from investigating co-creation in four networks. The results expand our understanding of the process of establishing co-creation networks and contributes to research on co-creation and practice in SMEs.

Trust, Control, and Value Creation in Strategic Networks of SMEs

This paper investigates the role of trust and control in networks of small and medium-sized enterprises (SMEs), with a focus on both their direct and interaction effects on value creation. To delve into the interplay between trust and control, we unpack control mechanisms into three different forms: output, process, and social control. Our hypotheses are tested on a sample of 58 Italian SME networks based on formal agreements. Results show that the competitiveness and sustainability of inter-firm networks require trust-based relationships among entrepreneurs. Additionally, the adoption of output control mechanisms reinforces the positive link between trust and value creation, whereas a substitution effect exists between trust and process control and, with limited significance, between trust and social control.

Scaffolded contributions, active meetings and scaled engagement: How technology shapes informal learning practices in healthcare SME networks

The importance of informal learning in modern, fast paced work environments has long been recognised. While technology support has been suggested for informal learning by individuals and in organisations, it is only more recently, that we have been able to study in more detail how technology can support such learning in real workplaces. This paper examines technology supported informal workplace learning in the relatively unexplored context of cross-organisational networks of small and medium-sized enterprises (SMEs). We developed an informal learning tool, using a participative, co-design approach found useful for engaging such networks. We analyse qualitative data on tool usage, collected over six months from 30 professionals, working in three different cross-organisational healthcare SME networks. We identify three changes in practice: (1) scaffolded contributions, (2) active meetings and (3) scaled engagement. We explain how and why some functionalities in the tool contributed to these changed practices while others were unused. The changed practices are linked to three stages of organisational knowledge creation: making individual knowledge explicit, group knowledge integration and institutionalisation. We propose three associations between tool functionalities and these processes that contribute to our understanding of technology support for informal learning in early stages of knowledge creation in cross-organisational networks.

Evaluating management practices in horizontal cooperation SMEs networks: the Ecuadorian context

Abstract Small- and medium-sized enterprises (SMEs) play an important role in the economic growth of a country and of a sector. They seek to be incorporated into permanent productivity and competitiveness dynamics through a cooperation strategy. This article evaluated the application of management practices to horizontal SMEs networks of the dairy sector in Ecuador by following the constructivist methodology. The literature review and exploratory research indicated an understanding of cooperative work in the networks or Milk Collection Centers (MCCs) and identified the need to evaluate performance when applying management practices as an unavoidable element to enhance their operation and development. The construction phase took as reference a model for the evaluation of management practices in cooperation networks and contextualized it to the Ecuadorian environment. In the evaluation phase, three networks were evaluated, from which results and conclusions were obtained. The developed model identified six criteria with which the evaluations of MCCs were made, whose analysis allowed their performance level to be quantified and a proposal of some specific improvement opportunities for this sector and a group of SMEs.

Organising of dynamic proximities enables robustness, innovation and growth: The longitudinal case of small and medium-sized enterprises (SMEs) in food producing firm networks

This paper aims to illuminate how dynamics of proximities between SMEs in firm networks can develop for enabling innovation and growth. The research is conducted in a longitudinal approach starting in 2007 through qualitative comments provided from 30 SMEs and ending with follow-up interviews with 10 of the respondents in 2017.The findings show severe pressures experienced by the SMEs from the market, competition and regulatory forces. The longitudinal findings show that complementary proximities of geographical, organisational, temporal, technical, cognitive, vision and especially virtual proximities are important for innovation and growth providing predominantly robustness of the SMEs. The summarization of the findings reveals a model for organising the dynamic interaction of proximities to complement own SME capabilities for utilization of positive open innovation and positive bridging/ bonding of social capital. The proximities have resulted in both short-term cooperation and competition and especially is emphasised long-term collaboration.A contribution is hereby made to SME networks on how organising of dynamic complementary proximities enable innovation and growth. A contribution is made to literature for understanding the interaction of complementary dynamic proximities, which hitherto have been perceived as a “proximity paradox”. Additionally it provides a platform for public bodies to support SMEs.

Knowledge Management in Production Networks: Classification of Knowledge Reuse Techniques

Many studies in the field of knowledge management indicate that enterprises and organizations establishing systematic sharing, transfer and reuse of knowledge can expect substantial benefits. Although sharing and transfer of knowledge requires a way to transfer or capture knowledge, not much work has been spent in investigating what kinds of reuse techniques are used in organizations. Starting from a classification of approaches to knowledge reuse, this paper investigates the state of knowledge reuse in production networks with a specific focus on networks of small and medium-sized enterprises (SME). The aim of the paper is twofold: for production networks, the intention is to investigate which kind of reusable knowledge, in terms of the classification developed, is most relevant for such networks; for the approach to the classification of knowledge reuse techniques, the aim is to further refine the approach and validate it in the field of production network research. The main contributions of this paper are (1) an analysis of reuse situations in SME networks, (2) evaluation of the proposed approach to the knowledge reuse classification for use in the reuse situations and (3) further refinement and validation of the classification approach.

THE MULTIFACETED ROLE OF THE NETWORK ORCHESTRATOR — A LONGITUDINAL CASE STUDY

This longitudinal empirical case study develops a new framework for the role of the orchestrator of networks of Small and Medium-sized Enterprises (SMEs). The SME network under study is followed during six years, through five stages of its lifecycle, and demonstrates the complex and multifaceted nature of the role of the network orchestrator. Various roles are needed for the various stages in order to achieve network retention and sustainability. This multifaceted role is found to encompass the roles as knowledge broker, innovation broker, network entrepreneur and leader and strategist, where the latter emerges as the most salient. The similarities with the role of a firm manager seem paradoxial in light of the dominating view of network management, characterized by the concept of distributed and collective leadership.

Knowledge management and intellectual capital in networks of small- and medium-sized enterprises

PurposeThe purpose of this paper is to propose a theoretical-conceptual model supporting the analysis of the effects of small- and medium-sized enterprises (SMEs) networks on knowledge management (KM) and intellectual capital (IC).Design/methodology/approachThe paper reviews literature on KM, IC and networks theories. The role of SMEs networks on KM and IC was discussed, analysing previous studies that supported the proposition of the model in question. In such model SMEs networks are seen as knowledge networks which are analysed in terms of the network formation process, the context, the strategy, the organisational culture and the stimuli for the sharing of knowledge. KM is observed in terms of knowledge creation, systematisation and sharing. Finally, IC encompasses human capital, structural capital and relational capital. It is noteworthy that KM and IC were considered deeply and closely related.FindingsThe conclusions obtained help to fill an important gap in the management, accounting, KM and IC literature, showing that the processes of creating, acquiring, maintaining, systematising and sharing information and knowledge and IC generation in SMEs networks can be influenced by the network formation process, by the organisational context, as well as by the strategy, organisational culture and stimuli to sharing knowledge.Research limitations/implicationsThe paper provides a theoretical contribution by increasing understanding of the effect of SMEs networks on KM and IC practices – an understanding still at the early stages in the literature. Moreover, the originality of the model proposed extends the relevance of this research, as the literature does not contain a sufficiently established and tested approach that simultaneously provides a clear view of the relations between SMEs, networks, KM and IC, highlighting how SMEs can use networks as a strategy to achieve a more effective management of the knowledge assets forming IC. So, the paper offers several avenues for future research.Practical implicationsBased on previous empirical research, it was perceived that the original model presented in this paper is consistent, collaborating to improve management practice, providing a competitive benchmarking process. This can allow analysts, managers and other decision makers, by using SMEs networks to improve organisational performance, innovation, sustainability, competitiveness and value.Originality/valueThe paper presents an innovative theoretical-conceptual model focussed on the role of SMEs networks on KM and IC, indicating a strong link between the former and the latter in such enterprises in terms of performance, innovation, sustainability, competitiveness and value, an issue whose understanding, although quite relevant, is still incipient in the literature.

SME Networks and International Performance: Unveiling the Significance of Foreign Market Entry Mode

This study investigates the relevance of interorganizational networks for the international performance of small and medium‐sized enterprises (SMEs) in relation to the foreign market entry mode (FMEM) selected. We distinguish two groups of internationalized SMEs: exporting firms and micromultinational enterprises (mMNEs). Drawing on insights from the network theory, our study accounts for the role of intermediate outcomes (innovative behavior and foreign market knowledge). Structural equation modeling is conducted in a sample of U.K.‐based internationalized SMEs. Our findings suggest that interorganizational networks have an indirect influence on international performance but differences are found among the two groups of internationalized SMEs.

Why don’t all high-trust networks achieve strong network benefits? A case-based exploration of cooperation in Norwegian SME networks

ABSTRACTThis paper explores the interactions between three focal constructs: network trust, network cooperation and network benefits. While positive interactions between these constructs are generally recognised, a deeper understanding is needed why high trust does not always coincide with high levels of cooperation and benefits in networks. Based on qualitative and survey data gathered from three Norwegian small and medium-sized enterprise (SME) networks, this paper contributes to the process theory of inter-organisational relationships by showing how network trust, cooperation and benefits interact in various ways in ongoing networks, leading to a more nuanced understanding of the relative and changing impact of each of the three focal constructs on the other constructs. In particular, trust facilitates cooperative initiatives that promise real network benefits which subsequently reinforce trust, especially when network members are smaller firms and the network has many members.

The Moderating Effect of Perceived Effectiveness of SMEs' Marketing Function on the Network Ties—Strategic Adaptiveness Relationship

This study examines the critical role of perceived effectiveness of the Marketing function (MF) in small and medium‐sized enterprises (SMEs) in leveraging entrepreneurial network ties to improve strategic adaptiveness (SA). The study tests whether a MF perceived as effective by SMEs’ managers/owners moderates the relationship between SMEs network ties and SA required for improved performance. Findings of a moderated regression analysis on a sample of 263 Croatian SMEs indicate that network ties contribute significantly to their SA, and that a MF perceived as effective only moderates the impact of customer and competitor ties on SMEs’ SA. Research and practical implications are discussed.

Industrial Clusters and CSR in Developing Countries: The Role of International Donor Funding

This article contributes to literature on corporate social responsibility (CSR) exhibited by industrial clusters in developing countries. The authors conceptualize and empirically investigate the role of donor-funded CSR initiatives aimed at promoting collective action by cluster-based small- and medium-sized enterprises (SMEs). A case study of the Sialkot football-manufacturing cluster in Pakistan indicates that donor-funded support of CSR initiatives in industrial clusters in developing countries may be short-lived, due to the political economy of aid, the national context of CSR implementation, tensions within SME networks, and negative perceptions of CSR by the cluster-based SMEs themselves. The findings and implications of this analysis can inform both research and policy making in this area.

Regional Horizontal Networks within the SME Agri-Food Sector: An Innovation and Social Network Perspective

McAdam M., McAdam R., Dunn A. and McCall C. Regional horizontal networks within the SME agri-food sector: an innovation and social network perspective, Regional Studies. This paper aims to explore how regional horizontal networks within the small and medium-sized enterprise (SME) agri-food sector develop innovative capability and outcomes through the adoption of a combined innovation and social network perspective. To facilitate this, the Slow Food Network was deemed appropriate. A multiple case analysis was then used in order to explore 11 regional SME-based agri-food horizontal networks. The findings demonstrate that a complex life cycle development occurred within the regional SME networks. Such development required unique strategies of explorative and exploitative innovation-based knowledge exchange at different life cycle stages with resultant changes in network dynamics between the SMEs.