Perspective Of Small And Medium Enterprises Research Articles

Buying centers and emerging developments: the SME perspective

Purpose This paper aims to explore the challenges and opportunities faced by buying centers in small and medium enterprises (SME) manufacturing companies in view of recent technological changes and the virtualization of communication. Design/methodology/approach This study uses a qualitative approach with multiple case studies to portray complex realities within the buying centers in the manufacturing SME context. The authors selected five Italian companies to portray the diverse characteristics, practices and policies of relevant stakeholders before reaching saturation with the issues explored. Findings The authors find that interactions among buying center members are more effective with greater collaboration and exchange (as opposed to competition and a struggle for power). Virtual/hybrid relations require greater intra-group cooperation, whereas diverse backgrounds and collaborative interactions help the flexibility and performance of the buying center. Greater use of technology produces certainty and automation, but it may also cause overload and biases that can be solved with the ability to analyze and clear responsibility for decisions. Research limitations/implications The authors studied only five Italian companies in this study. Future research in other countries with diverse cultural and socio-economic conditions and methods would help extend this research. Practical implications The findings would improve the understanding of the challenges of adopting new purchase process technologies that would help automate routine tasks, produce useful data and support decision-making. Originality/value Unlike prior studies, this study uses an exploratory design to study the evolution of buying centers in SMEs to seek deeper insights into the challenges and opportunities faced by SMEs because of the growing use of emerging technologies.

The Effects of Interest Rate Liberalization on Small and Medium Enterprises

The financing difficulties faced by small and medium enterprises (SMEs) are major problems hindering the development of the Chinese economy. These challenges not only impede the growth potential of SMEs but also limit innovation and job creation, posing a significant hurdle to overall economic progress in China. This article first presents the financing difficulties of SMEs and examines the reasons causing these difficulties. Then, this article briefly introduces the interest rate liberalization reform in China. After that, this article discusses three effects of interest rate liberalization on SMEs. The first effect is the reduction of the financing cost; the second effect is the increase of accessibility of loans; and the last effect is the transfer of credit resources from large and state companies to SMEs. Then, suggestions on how to tackle the financing difficulties are provided from the perspective of SMEs, financial institutions, and authorities respectively. Lastly, this article concludes that interest rate liberalization reform is conducive in helping enterprises and economic recovery.

Stakeholder management challenges in a health-care medical device project in India – an SME perspective

Learning outcomes The learning outcomes are as follows: understanding the impact on company growth through identification and alignment of stakeholder priorities in a project for SME in an emerging market; analyzing the impact of stakeholder alignment and relationship management on the project outcome; and evaluating the importance of Stakeholder Management for effective Project Management. Case overview/synopsis The case of ‘Hospedia Medicare,’ a medical device manufacturing company based in India, was started by a family involved in the medical devices business for over two decades. The company began operations in a new avatar and focused on one medical device or product by 2013. The product was designed with quality features to solve customer problems, making the cost relatively high compared to other domestic peers. Creating new product lines or updating the existing product attributes was imperative for the company to attain its growth objectives. The protagonist was dealing with a dilemma involving managing various stakeholders, aligning the project scope to create a growth story for the company in line with its vision and managing the stakeholders by understanding and analyzing their needs, expectations and interest, thus influencing the project outcome. The case can be used by instructors to identify, understand and evaluate the importance of different stakeholders on project outcome or success. Furthermore, it can be used to analyze and critique the impact of stakeholders on project scope, which can affect the long-term sustainability of the company, as different stakeholders have different expectations and needs. The case also details how regular communication, collaboration and awareness became essential for the project's success. Lack of an effective engagement strategy at the project planning stage can have risks concerning cost and achieving the overall vision, which creates a positive outcome for all the stakeholders. Complexity academic level The case study can be introduced to graduate and undergraduate students to reflect on and critique the importance of Stakeholder Management in Project Management. It can be used for, entrepreneurship, project management, operations and strategy, particularly emphasizing for small and medium enterprises (SMEs). Supplementary material Teaching notes are available for educators only. Subject code CSS 9: Operations and Logistics.

Leveraging shippers-logistics providers relationships for better sustainability in logistics: the perspective of SMEs

PurposeThe organization of services can affect the adoption of sustainable practices within the relationship between a buyer (e.g. a shipper) and a supplier (e.g. a logistics service provider–LSP). The purpose of this paper is to analyse, within this relationship, the mechanisms affecting collaboration between shippers and LSPs towards adopting green logistics practices to reduce the negative environmental effects of logistics processes. The authors take the perspective of small and medium enterprises (SMEs), which represent – although less investigated than large enterprises – a relevant field of investigation given their impact on the environmental sustainability of logistics processes.Design/methodology/approachThe authors conducted a multiple case-study investigation on a set of dyads involving shippers and LSPs. The authors explored the antecedents shaping the approach to sustainability in logistics and, adopting the absorptive capacity (AC) theory, the learning and knowledge transfer processes leading to the adoption of green practices.FindingsCollaboration between shippers and LSPs for better sustainability in logistics seems not to work when relationships are limited to simple annual (or pluriannual) contracts, and when shippers do not show ambition to improve the level of sustainability of their logistics processes (regardless of whether they show an interest in general sustainability matters). On the other hand, successful cases show higher commitment in the dyadic relationship with respect to improving logistics sustainability, good levels of communication and a more structured process of knowledge sharing, enabled by IT integration, shared performance monitoring, and creation of inter-organizational teams.Originality/valueWhile most of the existing research focuses on the perspective of shippers or LSPs, this work is original since it explores collaborative mechanisms within a buyer-supplier relationship simultaneously taking the perspective of both parties, according to the lens of the AC. It identifies directions for improving collaboration within the shipper-LSP relationship in the context of SMEs to foster the adoption of collaborative green logistics practices to impact sustainability positively.

Training, corporate culture and organizational work models for the development of corporate entrepreneurship in SMEs

PurposeThe purpose of this study is to assess the impact of corporate entrepreneurship. To this end, the learning process of the individual in skills, competencies and agile methodologies is considered, as well as the influence of corporate culture, ways of working and organizational capabilities in small and medium enterprises (SMEs).Design/methodology/approachThis study was performed by means of an email survey questionnaire, conducted on 241 SMEs in Madrid and Guadalajara (Spain). The hypotheses were tested with structural equation modeling (SEM).FindingsThe results yielded a positive and direct link between the organization and the training of business leaders in programs of skills and competencies, as well as between this training and corporate entrepreneurship processes carried out in the organization. However, there is an indirect relationship between organizational activity and processes of the organization and intrapreneurship activities.Research limitations/implicationsThe research provides a practical contribution to the SME perspective and raises awareness of the importance of intrapreneurial activities for business development. Hence, it becomes relevant to focus on training plans that have a direct impact on the development of business innovations that lead to corporate entrepreneurship.Originality/valueThis research contributes to contextualize and enrich the literature on corporate entrepreneurship by addressing the gap related to corporate culture, innovation and skills, through a model that shows the relationship between the variables.

The roles of top management and users in strategic IS planning: a perspective of SMEs

Research on the strategic Information Systems (IS) planning is typically concentrated on large firms. However, the outcomes of this research may not be sufficient to adequately apply to Small and Medium Enterprises (SMEs). Responding to the limited body of work in SMEs with respect to strategic IS planning, this research aims to fill the gap in the body of literature. Having limited resources available, financially and technically, strategic IS planning is getting more crucial for SMEs. Prior work suggests that a high level of internal competencies such as IT leadership by the owner or the top management of the firm are important for progressive IT development to take place in SMEs. Having said that IS is getting paramount for firm’s survival to optimize IS effectively, it is incumbent to investigate the factors influencing strategic IS planning amongst the SMEs. This study contributes to research and practice by providing indepth insights into the IS planning processes in SMEs with a particular focus on the roles of top management and users. Researchers can use these results, which are somewhat different from larger organizations, to revise IS planning phases.

The Intention to Use E-Money: An Empirical Study of Halal Food SMEs In Surakarta

Entering Financial Technology (FINTECH) era, Indonesian Banks and financial institutions competing in issuing their electronic money product. E-money potentially used by Small and Medium Enterprises (SMEs) for doing business and making transactions but in reality it is not so. Halal food SMes E-money usage still low so its important for fintech companies to be able to know and understand perceptions to increase interest in re-transacting using electronic money. However, these is still few studies discussed behavioral intention to use e-money in SMEs sector. Consequently, This study identifies and examines the factors that contribute to behavioral intention to use e-money in Surakarta from the Halal food SMEs perspective . Data for this study were obtained through a mail survey sent to 125 Halal Food SMEs in Surakarta, Jawa Tengah. Regression is used to analyze the data and determine the impact the factors have on behavioral intention to use e-money. The regression results confirm that perceived usefulness, perceived ease of use, perceived behavioral control are the most likely factors that contribute to halal food SMEs intention to use e-money whereas trust was not significantly related. Implications of the findings for developers are discussed further.

How Hotel Industry Cope up with the COVID-19: An SME Perspective

This study aims to determine the plans and strategies adopted by the hotel industry during the COVID-19 crisis. In order to conduct this study, a qualitative research methodology was used where semi-structured interviews were conducted from three countries: Austria, Pakistan, and Indonesia. Interviews were conducted online with the help of applications such as Skype, WhatsApp, and Zoom. A thematic analysis was conducted in which codes, categories, and final themes were generated. The final themes are the study's findings, which are strategies for employees, strategies for customers, strategies for SME hotels, and strategies for the staff. Strategies for employees indicate the planning and programs of the SME Hotels. The study's findings show that strategies adopted by the hotel industries vary from country to country while depending on the contextual factors and role of the government. Most Small and Medium Enterprises (SMEs) hotels in developing countries are less familiar with how to react and survive in the conditions of the crises. Thus, this study can benefit the different stakeholders in the developed and developing countries for adopting strategies and maintain their business during the crises of the COVID-19.JEL Classification: B17, B27, F30, L83How to Cite:Tunio, M. N., Yusrini, L., Shah, Z. A., Katper, N., & Jariko, M. A. (2021). How Hotel Industry Cope Up With The Covid-19: An SME Perspective. Etikonomi, 20(2), 213 – xx. https://doi.org/10.15408/etk.v20i2.19172.

How Industry 4.0 technologies and open innovation can improve green innovation performance?

PurposeThis study investigates the impact of Industry 4.0 technologies on green innovation performance. In this relationship, the mediating role of green innovation behavior is also studied. Moreover, open innovation is tested as a mediator between Industry 4.0 technologies and green innovation behavior.Design/methodology/approachA quantitative research method is adopted in which a structured questionnaire was used to collect data from 217 manufacturing firms of Malaysia. After collecting data, the partial least squares-structural equation modeling (PLS-SEM) technique is applied to analyze data and test the hypothesis of study.FindingsIt is found that Industry 4.0 positively impacts open innovation which leads to green innovation behavior. Also, the former lays positive impact on green innovation behavior which leads to improve green innovation performance.Research limitations/implicationsThe authors conclude that Industry 4.0 technologies can play an important role to improve green innovation performance of Malaysian manufacturing firms by managing open innovation for green innovation behavior which further improves the green innovation performance. In this context, it is recommended that strategists and policymakers should undertake the role of open innovation and Industry 4.0 technologies to promote environment-friendly innovations and to promote the green behavior in companies. The authors suggest hereby that firms should be given incentives to adopt and utilize Industry 4.0 technologies and collaborative innovation interactions – as they foster a climate for sustainable green innovations (which is also a key component to achieve competitive advantage) and a growing concern nowadays.Practical implicationsFirst of all the research contributes to achieving the broader of United Nations to promote sustainable innovation through green innovations. Moreover, the companies can also incorporate the findings and insights of this study while devising their policies to foster green innovations.Originality/valueThis research has done the novel contribution by bridging the gap between open innovation approach and sustainability fields while promoting green innovations in small and medium enterprises (SMEs). These two research fields are rarely studied in previous studies by focusing open innovation particularly. Hence, the authors suggest researchers to undertake these fields to further enhance the level of scholarship between innovation management and sustainability. Also, the authors recommend considering technological orientation and technological absorptive capacity of firms to improve green innovations. The current study has investigated the SMEs perspective in general irrespective to their sectoral differences, thus, for future researchers the authors suggest investigating the sector-wise comparison, i.e. electrical and electronics sector, chemical sector, etc.; or service and manufacturing sector differences.

The role of internal and external sources of knowledge on frugal innovation: moderating role of innovation capabilities

PurposeThis study aims to analyze the effect of external and internal sources of knowledge on frugal innovation. Moreover, it investigated how this relationship is weakened/strengthened by the moderation of innovation capabilities.Design/methodology/approachThis empirical study’s data were taken from 288 small and medium enterprises (SMEs) by using a questionnaire survey. To analyze this data, analysis of a moment structures software (AMOS) was used. Structural equation modeling was conducted to test the hypothesis and the slope test investigated moderation.FindingsThe study results showed the significant effect of internal and external sources of knowledge on frugal innovation. Moreover, the results highlighted that the moderating role of innovation capabilities strengthens this relationship.Research limitations/implicationsThe SMEs of “Saudi Arabia” were considered for this study. Among these, this paper only focused on enterprises owned by Saudi citizens. Moreover, the data were collected from 288 SMEs. Therefore, future studies can be conducted from any other country with larger sample size. This study has used moderation of innovation capabilities and future studies can use information credibility as a moderating variable.Originality/valuePreviously, many studies have highlighted the importance of knowledge for innovation, but the effects of knowledge sources from the perspective of SMEs and emerging markets remain unexplained. Very limited studies have explored the relation of knowledge sources with frugal innovation. This study first examines the moderating role of innovation capabilities between “internal and external knowledge sources” and frugal innovation. Moreover, this research reveals the SMEs of Saudi Arabia and its sector of frugal products.

English

Cloud computing (CC) is a new trend in information technology and has the potential to play a major role, in addressing inefficient resources, make a fundamental growth and competitiveness for large, small and medium enterprises (SMEs) internationally. The main benefits of adoption of CC services by Large and SMEs will be able to use the latest technology, without the need for the upfront cost, but reducing cost, providing a secure information platform and increasing productivity. The main drawback is that most organisations are adopting the CC without properly understanding that information data they are storing in the cloud is secure or not. The primary objective of this paper is to explore the CC adoption from large and SME perspective internationally. The current state of CC information intensity, different levels of external and other support in the organisations, motivations, requirements prevent the intensity of information and various level of external and other support for CC environment, the study findings can provide guidance on how to address the business and technology risks associated by CC adoption. However, a survey is conducted internationally on 107 Large and SMEs through survey monkey website, which shows interest in the CC services adoption. Specifically, in this paper users are evaluated through 6 factors, for instance, external support, competitive pressure, senior management support, employees cloud knowledge, adequate resources and information intensity.Though survey it is revealed that already adopted some cloud services are 84.11%, are in the processes of Implementing 8.41%, intend to adopt cloud services in the next 3 years 6.54% and don't intend to adopt any cloud services in near future 0.93%. The findings are expected to be beneficial for Large and SMEs in their adoption of CC services and may also be useful for service providers with respect to end-users’ concerns.

Global production networks and foreign direct investment by small and medium enterprises in ASEAN.

This paper examines cross-border investments by small and medium enterprises (SMEs) from member states in the Association of South-East Asian Nations (ASEAN). It explains this relatively under-researched topic from the perspective of SMEs’ strategic coupling with or “plugging into” regional production networks coordinated by global lead firms. Facilitated by growing regional integration, these SMEs create and capture significant value added from their involvement in these production networks. The paper first highlights the different drivers of SME-specific FDI activities in ASEAN that contribute to strengthening regional economic integration through intra- and inter-firm activities in the region. The paper then explains the working of their strategic coupling with ASEAN-based production networks through different coupling mechanisms, such as international partnership, industrial specialization and production platforms. The key challenges confronting SME regionalization are highlighted. Finally, the paper considers the policy and practice of promoting SME regionalization so that they can plug into the growth dynamics of different regional production networks.

Adoption Model of E-Commerce from SMEs Perspective in Developing Country Evidence – Case Study for Indonesia

The number of Indonesia people using internet have increased due to advances in information technology, and the activity of electronic commerce (E-Commerce) is increasingly growing. This is a huge potential market for businesses including for SMEs. However, there are only a few Small and Medium Enterprises (SMEs) in Indonesia which have adopted E-Commerce. In fact, they are one important part of the economy in Indonesia. On the other hand, technological advances have made the competition tougher for SMEs. To understand perspective of E-Commerce from SMEs side, this study aims to find out what are the factors that support SMEs to adopt E-Commerce and the effect of the adoption to SMEs’ performance. This research discusses the adoption of E-Commerce by Indonesia SMEs and performance improvement as the effect of the adoption. The problems in this research are elaborated into research questions, i.e. do compatibility, top management support, organizational readiness, perceived benefits and external drive have significant positive effect to E-Commerce adoption? And does the adoption have significant positive effect to company’s performance? The purpose of this research is to analyze factors that support E-Commerce adoption on Indonesia SMEs and to analyze whether the adoption improves the performance of the SMEs. Partial Least Squares Structural Equation Modeling (PLS-SEM) Techniques is applied to analyze by using SmartPLS3. This technique enables researchers to test the relation between complex variables and to get an overall view of the whole model.

Proposed Solutions to the Brand Protection Challenges and Counterfeiting Risks Faced by Small and Medium Enterprises (SMEs)

ABSTRACTSmall and medium enterprises (SMEs) are vulnerable to the same counterfeiting threats faced by larger businesses, yet, the unique brand protection challenges they face have not been explored. These challenges relate to resource constraints that make it difficult to implement traditional brand protection strategies. This article discusses the problem of product counterfeiting from the perspective of SMEs, while considering how the resource constraints they face impact their ability to establish brand protection programs. Potential solutions are described, and 10 testable propositions intended to guide future research and the practice of brand protection in SMEs are proposed.

Towards a framework of contextual human resource management practices for internationalising SMEs

Small and medium enterprises (SMEs) face several strategic, financial and manpower related challenges as they embark on the internationalisation journey. While internationalisation is a growth imperative for SMEs, they are often not equipped to handle these challenges well enough. Lack of trained manpower, knowledge, skills and expertise may lead to erroneous decisions thereby jeopardising the internationalisation process. SMEs find it difficult to absorb such delays and cost owing to limited resources. The limited availability of resources also induces the decision makers to overlook development of human resource practices in favour of more immediate business concerns. With this background, this study attempts to develop a framework of context-specific human resource management practices to meet SME internationalisation challenges. This study explores the organisational needs of SMEs in different stages of internationalisation from the lens of human resource management. This exploration serves as a basis for developing the characteristics of key HRM practices for different phases in SME internationalisation. Propositions are presented and areas for future research are specified, mainly calling for more empirical studies with a different human resource perspective of SMEs.

The SME perspective on motives and success factors in cross-border mergers

Purpose – The purpose of this paper is to address two research questions. First: what causes an small and medium enterprises (SME) to engage in a merger with a multinational group and thereby change its relationships and to start functioning in a hierarchical structure which may be viewed as being the integration of a weaker entity by a stronger and bigger one? And second: what causes the successful continuation of a cross-border merger project from the perspective of an SME? Design/methodology/approach – The concept of the network position is adopted to undertake a longitudinal study of an IT company from Poland. Findings – From the perspective of the SME, its own perceived important network position resulting from the resources it possesses, the ability to decide how they are utilised, as well as relationships strongly supported by trust and a good atmosphere are key motives and success factors for the merger. Originality/value – By adapting the IMP research perspective and the concept of network position to the analysis of mergers the additional aspects of the merger process which are usually not raised in relevant traditional mergers and acquisitions literature are revealed. A merger is not just the sourcing of resources, but also interdependencies and taking joint decisions with regard to them; not just economic aspects, but also social aspects of relationships (trust and atmosphere); not just the sharing of resources between merged entities, but also the constant influence of other relationships and interactions on these resources.

Modelling green IT adoption among SME

Green information technology (IT) allows resources used in a sustainable manners, both in the area of climate protection and resource efficiency. In this study, the authors examined the factors that potentially influence the adoption of green IT among small and medium enterprises (SME). There six factors studied include green organisational identity, environmental organisation legitimacy, green innovation performance, public concern, differentiation and cost reduction. Based on smart partial least square approach, the results showed that green organisational identity, green innovation performance and cost reduction have significantly impacted SME in adopting green IT practices. This study provides new insights into the area of green IT, specifically from the perspective of SME in their sustainable strategic planning for short and long-term values.

Indian SMEs Perspective for election of ERP in Cloud

With increasing market competition and globalization, SMEs have shown interest to deploy ERP package to integrate their business processes. High investment in terms of cost, manpower and time are the major hurdles while selecting a traditional ERP package. Hence there is a need to look for a cost effective ERP solution. Deploying ERP on Cloud is one such option due to lower infrastructure cost and flexible payment. A SME evaluates an ERP solution from Economical, Technological and People perspectives with the factors that measure them. . . A factor can either be a benefit or a threat. A benefit facilitates whereas a threat holds back SMEs decision to adopt ERP in cloud. This research provides a benefit- threat framework on Economical, Technological and People perspective that a SME perceives while selecting ERP in cloud environment. The framework is validated and it suggests that Economical and Technological are two important perspectives while selection of ERP on cloud for a SME.

Potential of Clean Coal Technology in India: An SME Perspective

This study explores business opportunities in the Indian coal based power value chain for European small and medium enterprises (SMEs) that specialise in clean coal technology (CCT), while also providing a general overview of the Indian coal based power value chain and its three 'pillars': coal mining, coal logistics and coal power plants.

An empirical investigation of factors affecting e-collaboration diffusion in SMEs

Organizations today operate in a complex, unpredictable, competitive and global business environment. Organizations have responded to these challenges by implementing collaborative supply chain management (SCM) which allows their organizations to gain competitive advantages. E-collaboration implementation is one of the key technologies to facilitate the success of SCM, which allows the integration of business processes and the sharing of information among supply chain members. E-collaboration has been implemented with considerable success in the supply chain by organizations such as Infineon and Wal-Mart. However, these large organizations have more financial and technical resources compared to Small and Medium Enterprises (SMEs). Little research on the implementation of e-collaboration has focused on the perspective of SMEs. Furthermore, most studies on e-collaboration implementation have traditionally examined the adoption stage of e-collaboration tools instead of a multi-stage diffusion process of technology. The main objective of this study is to understand the factors that influence the diffusion of e-collaboration in SCM among the SMEs. This study proposes a research model to examine a stage-based e-collaboration diffusion process in SMEs. An integration technology adoption model based on Technological-Organizational-Environmental (TOE) framework, Interorganizational Relationships (IOR), and Unified Theory of Acceptance and Use of Technology (UTAUT) is proposed and empirically validated.