Performance Of Small Medium-sized Enterprises Research Articles

Impact of Corporate Entrepreneurship and Market Orientation on the Performance of Small Medium-Sized Enterprises in Ibadan Nigeria

The performance of Small and Medium-Sized Enterprises (SMEs) is pivotal to economic development, particularly in emerging economies like Nigeria. This paper explores the intersection of Corporate Entrepreneurship (CE) and Market Orientation (MO) and their collective impact on the performance of SMEs in Ibadan, Nigeria. Two research questions were raised, and two hypotheses were tested. The study employed the survey research design with five hundred and forty-six (546) respondents as subjects. Representative SMEs were purposively selected from each of the 11 local government areas in Ibadan Metropolis. Primary data was employed using the questionnaire to elicit information from the respondents. Data collected were analysed using Canonical Correlation and Multiple Regression. Findings indicated a combined impact of CE and MO on the performance of SMEs with a Canonical Correlation of 0.510 at p < 0.0. The results also showed that corporate innovation, corporate pro-activeness, risk taking, entrepreneurial culture, intelligence generation, intelligence dissemination and responsiveness using Multiple Regression jointly predicted SMEs performance at F = 19.501; R= .450, R2 = 202, Adj. R2 = .192; P < 000. Based on these results, it is recommended that SMEs should emphasise the practices of CE and put more effort into market research specifically to make confident, progressive business decisions based on market development and market entry opportunities that can lead to sustainable competitive advantage and superior organisational performance.

The Impact of Proactive Resilience Strategies on Organizational Performance: Role of Ambidextrous and Dynamic Capabilities of SMEs in Manufacturing Sector

The challenges of the global business environment foster small medium-sized enterprises (SMEs) to continuously improve their performance in the level of vulnerability to possible impacts and interruptions in their operations that may affect their sustainability. Resilience strategies and ambidextrous capabilities have become important determinants of organizational performance, which has developed as an emerging area of interest in supply chain management in recent years. SMEs are one of the major contributing sectors to the Malaysian economy. Therefore, SMEs have been forced to survive in the current market situation to ensure higher economic growth and competitiveness. The resilience strategies and ambidexterity capabilities are important determinants of SMEs’ performance. As such, this study aims to examine the relationship between proactive resilience strategies, ambidextrous capabilities, and the performance of SMEs in the manufacturing sector, drawing on the dynamic capabilities perspective. A quantitative research design is adopted, a structured survey questionnaire is used, and data are collected from 351 SMEs in the manufacturing sector. Partial least squares structural equation modeling (PLS-SEM), Smart PLS 3.0 is used to test both direct and mediating results. The findings of this study suggested that proactive resilience strategies may have a significant influence on organizational performance of SMEs. Ambidextrous capabilities also act as a strong mediator between proactive resilience strategies and organizational performance. These findings contribute to the dynamic capabilities literature by highlighting the importance of proactive resilience strategies and ambidextrous capabilities in enhancing the positive impact on organizational performance in SMEs. This study provides a plausible explanation of two important management mechanisms for enhancing organizational performance sustainability. The relationships between proactive resilience strategies, ambidextrous capabilities, and organizational performance are malleable. This study also suggests that fostering formal and informal relationships might hold the key to the sustainable performance of SMEs in the long term. This study’s practical contributions are improving the knowledge and performance of supply chain systems for SMEs in the manufacturing sector and enhancing their competitive power in domestic and international markets.

Cash holdings, corporate performance and viability of Greek SMEs

PurposeSeveral theories have been developed trying to explain the corporate decisions on cash holdings. Stakeholder theory is one of the arguments that urge firms with strong stakeholder relationships to hold more cash. The purpose of this paper is to shed further light on this issue by examining the impact of cash holdings on the financial performance and viability of Greek Small-Medium Enterprises before and after the Greek sovereign debt crisis.Design/methodology/approachThe authors collected a large sample from Small-Medium-sized Enterprises (SMEs) and a comparable sample from large firms operating in Greece during the period 2003–2016. Panel regression analysis was performed before and after the Greek debt crisis.FindingsResults indicated that cash holdings contribute positively to the profitability and viability of firms validating the precautionary theory of cash holdings in Greece. Before the crisis, SMEs and large firms both benefited significantly by cash holdings but after the crisis that positive impact of cash is more evident and significant for SMEs.Practical implicationsThese findings corroborate the hypotheses that during a period of limited lending (and severe financial turmoil); cash holdings (and effective cash management) could be a vital tool for sustaining SMEs’ viability and financial performance. This study offers useful managerial implications and contributes to the ongoing debate about the impact of cash holdings on corporate performance.Originality/valueThis is the first study in the Greek business setting trying to examine the impact of cash holdings on financial performance within stakeholder-oriented firms during a period of financial turmoil.

The entry mode strategy and performance of SMEs: Evidence from Norway

The relationship between foreign entry mode choice and the performance of small-medium sized enterprises (SMEs) has been an overarching theme of research of the past decade. However, the research in this area has been hampered by the difficulty of defining and measuring performance. In this study, we used a multi-item measure of performance, which takes into account the relative importance of each measure and the perceived level of satisfaction, to analyse 146 SMEs in Norway. Our regression analysis shows that firm characteristics: size and sector of operation, significantly influence performance. However, prior international experience did not significantly influence performance. In terms of entry mode via international joint venture, trust and congruity of goals between partners have a positive and significant influence on performance.

Malaysian SMEs Development: Future and Challenges on Going Green

Malaysian Small Medium-sized Enterprises (SMEs) is largest business establishment and vital component of the country's economic development. However, limited studies were examined on their development, challenges and future green prospects, especially in service sector. Therefore this article examines the development of SMEs in Malaysia, challenges and opportunities of green practices among SMEs which is play a vital role in the nation growth. The uniqueness of this paper focuses on green practices which is important for SMEs to progress and competitive in domestically and globally. The key messages from these studies examined in this paper are that Malaysian SMEs contribute to the largest business establishment in Malaysia especially service sector and majority of them are in micro size establishment. Nevertheless, there are wide recognition in the literature about the factors hinder SMEs from expanding, this is mainly because high cost of raw materials, high initial cost of investment and shortage of skilled labour. The concept of green environment is still at infancy stage in Malaysian SMEs. Environmental management literature mostly published in the developed countries has proven that ISO 14001 Environmental Management System (EMS) implementation has a positive and significant relationship with SMEs performance. This study is important indicator to encourage other SMEs which has no green practices in place to consider joining the green bandwagon, especially SMEs service sectors. The studies focused are conditioned by the search strategy used. In addition, other key words could be including in future studies such as performance, customer satisfaction, financial performance, environmental and green supply chain management in order to expand this search. The main contribution of this paper is to identify the development of SMEs in Malaysia and future research proposals with regards to the benefit of the green practices (ISO 14001 standards) in Malaysian SMEs service sector.

Small and medium sized enterprises and knowledge networks: an initial analysis of the roles of external supporting organisations

This paper presents research examining the effects of network interaction and small medium sized enterprise (SME) performance, with particular regard to the accessing of knowledge for innovation. Economic development policy is increasingly focused on SMEs, creating a clear research issue in terms of the roles and interactions of support bodies and the creation and dissemination of innovation. This paper thus analyses the contribution of a range of external supporting institutions in an innovation creation and dissemination framework - exploring the contribution of networks, and identifying the mechanisms required therein. Bivariate and multivariate (regression) analyses are employed to investigate outcomes in relation to these structures; data is derived from survey responses of over 450 UK SMEs. Results on the conscious use of relational embeddedness show this to be an important indicator of SME performance, but not universally so. In general, we find less support for the factors predicting SME growth outcomes than is the case for innovation. Finally, we outline an agenda for further research in the area.

An Evaluation of Logistics Determinants, Business Relationships and Firms Characteristics of the Greek Small and Medium Enterprises

The present study assesses the relationship between Small & Medium-sized Enterprises (SMEs) operating invarious economic sectors and the entire function of logistics. It focuses on three primary factors that areessentially associated with SMEs and affect their logistics operations, namely their own perception on the waythese operate, SME behaviour towards their clients and the behavior of suppliers to small and medium-sizedenterprises. The research was carried out with the use of 620 questionnaire sent to specialists and employeesworking in executive positions in three SME categories. The research results revealed the relationships andinter-dependence among the various factors for SMEs operating in all economic sectors. SMEs operating incertain sector appear to pay more attention to specific factors and less to others. SME performance is directlyassociated with and affected not only by the procurement system, but also by logistics, and particularly by thegeneral attitude and behaviour adopted by enterprises towards their customers and suppliers.

Governance di Lingkungan Usaha Kecil Menengah Studi Empiris Pada Usaha Kecil Menengah di Propinsi DIY

This study examines the implementation of good governance in Small Medium Sized Enterprises (SMEs). The specific purposes of this study are to analyzing: (1) the implementation of governance’s perspective: structure, mechanism, legal framework, regulations and business environment, (2) the perception of stakeholders (financial institutions) to the implementation of corporate governance in SMEs, (3) the differences of governance’s implementation in small business and medium business, (4) the differences of SMEs performance and (5) the relationship between corporate governance and firm performance. A sample of 60 SMEs and 10 financial institutions as stakeholders was used in this study. The tools that used in this study are: statistic descriptive, quartile, significant mean differences between two groups, regression and correlations. From this study can be concluded that the implementation of good corporate governance in SMEs are poor (score 0.3798 less than 0.50). Only 15% SMEs implementing corporate governance in good level and 85% in poor level. From statistic descriptive can be shown that the implementation of governance structure which consists of organizational structure and internal business process is weak to support the good corporate governance in SMEs. The governance mechanism which consists of corporate strategy, corporate policy and standard operating procedure can support the implementation of good corporate governance in SMEs. External forces including government regulation, business environment and legal framework is weak to support the implementation of good corporate governance in SMEs. From the comparison can be shown that there is no difference between the implementation of corporate governance in Small and Medium business. The business performance between Small and Medium business is different and there is a positive correlation between corporate governance and firm performance. Keywords: Small Medium Sized Enterprises, Good Corporate Governance, governance structure, governance mechanism, external forces