Practices In Small And Medium-sized Enterprises Research Articles

A review of talent management and human resource practices in the context of small and medium enterprises

In the dynamic environment of small and medium-sized enterprises (SMEs), the expertise of Talent Management (TM) and Human Resource (HR) practices is important. These include a comprehensive approach for identifying, nurturing and retaining qualified workers, which define the core structure of SMEs' organizational strength. It represent an inclusive strategy to workforce development, including recruiting, upskilling, performance optimization, and developing a working culture that is well matched to the unique subtleties and challenges that SMEs encounter. This review provides a comprehensive examination of TM and HR management (HRM) methods in the context of SMEs. It starts by stressing the significance and specifics of SMEs, emphasizing their critical role in fostering growth as well as the unique obstacles they confront as a result of resource restrictions and enterprising dynamics. The importance of TM in SMEs is highlighted its crucial role in generating organizational success and innovation. Despite the inherent difficulties of TM in SMEs, such as limited resources and talent acquisition hurdles, there are exciting opportunities for advancement. Innovations in technology, strategic collaborations and talent development programs provide opportunities for SMEs to improve their competitiveness and sustainability. By addressing these significant difficulties, this summary gives a complete review of TM and HRM practices in SMEs, emphasizing the need for specialized solutions to assist SMEs with managing the complexity of recruitment and achieving sustainable success.

Eco-sustainable practices through strategic HRM: A review and framework for SMEs in the creative industries

In recent years, there has been a growing recognition of the importance of eco-sustainable practices in the business world, particularly within the context of small and medium-sized enterprises (SMEs) operating in the creative industries. This review presents a comprehensive review and framework for integrating eco-sustainability into the strategic human resource management (HRM) practices of SMEs in the creative industries. The creative industries, encompassing sectors such as design, advertising, fashion, and media, play a significant role in shaping cultural trends and consumer behavior. However, these industries also have a substantial environmental footprint, stemming from resource-intensive production processes, waste generation, and high energy consumption. Recognizing these challenges, there is a growing imperative for SMEs in the creative industries to adopt eco-sustainable practices. Strategic HRM offers a promising approach for integrating eco-sustainability into the core operations of SMEs. By aligning HRM practices with the organization's sustainability goals, SMEs can foster a culture of environmental responsibility and innovation among employees. This review presents a framework that outlines the key dimensions of eco-sustainable HRM, including recruitment and selection, training and development, performance management, and employee engagement. Effective recruitment and selection processes are crucial for attracting individuals who align with the organization's sustainability values. Training and development initiatives can equip employees with the knowledge and skills needed to implement eco-friendly practices in their roles. Performance management systems should include sustainability metrics to evaluate employee contributions to eco-sustainable goals. Additionally, fostering employee engagement through communication, participation, and recognition can enhance commitment to eco-sustainability initiatives. Through the integration of eco-sustainable practices into strategic HRM, SMEs in the creative industries can not only reduce their environmental impact but also gain a competitive edge by appealing to environmentally conscious consumers and investors. This review provides a roadmap for SMEs seeking to navigate the intersection of sustainability and human resource management, ultimately contributing to a more environmentally sustainable future for the creative industries.

Cost accounting practices in SMEs: liability of age and other factors that hinder or burst its implementation in turbulent years

AbstractThis study aimed to investigate the level of cost accounting (CA) implementation in small- and medium-sized enterprises (SMEs). CA is a management accounting tool whose application in small companies has always been difficult. Nevertheless, academicians and practitioners recommend CA implementation in SMEs, especially because of the deep market instability, competitive pressure, and margin erosion that have occurred following the COVID-19 pandemic and 2022 European war scenario. Company size influences CA implementation; however, it is not the only influencing factor and perhaps not even the most important. To investigate the barriers to the adoption of CA and which conditions or actions can remove these barriers, leveraging from the contingency theory, a questionnaire was sent out in July 2022 to limited liability SMEs operating in the manufacturing, construction, and distribution macro-sectors in Verona and Vicenza provinces (Italy). Respondents answered a set of questions regarding CA implementation in their SMEs as of July 2022. Using a multivariate regression model to analyze data from the 120 questionnaires received, we found that lack of resources, limited training and skills, firm age, and the presence of the founder in the firm had a negative influence on CA implementation in SMEs. The low level of CA implementation was also associated with its supposed inefficiency, uselessness, and unsuitability for business. The effect of company size on CA implementation was not statistically significant. Despite this study’s limitations regarding the sample and period considered, we believe that it contributes to both academic debates and practice by illustrating the limiting factors and ways in which CA implementation can be fostered in SMEs in turbulent years.

Conceptualization of a methodology for circular value creation in SMEs in one-off production

Implementing a circular economy (CE) is essential to achieving the long-term goal of carbon neutrality. Therefore, circular economy becomes increasingly relevant in the manufacturing industry. As small and medium-sized enterprises (SMEs) constitute a large part of the manufacturing industry, without them, a wide-ranging circular economy would not be possible. However, various structural barriers across the three dimensions of value creation – process, resource and organization – hinder the adoption of circular practices in SMEs. The difficulty of implementing circular practices is especially true for SMEs in one-off production with highly customized products and low process repeatability. Corporate survival in a circular world means these SMEs must transform themselves in the long term. Therefore, this paper aims to conceptualize a methodology for transforming SMEs in one-off production towards circular value creation. To this end, this research summarizes and analyzes existing barriers in the literature and then derives the requirements for the methodology. It finishes by conceptualizing the methodology by outlining the individual steps.

The Drivers of Sustainability Practices in SMEs and the Impact on Business Performance

The concept of sustainability practices by Small and Medium-sized Enterprises (SMEs) is often ignored, specifically in developing countries. This requires optimal attention, considering the significant role of SMEs in economic growth and the significant collective impact on the ecological environment. Therefore, this study aimed to analyze the impact of collaboration and innovation on SMEs sustainability practices and business performance. A total of 169 samples were obtained from metal manufacturing companies located in the Tegal, Klaten, and Greater Jakarta regions through purposive sampling. The results showed that collaboration significantly and positively affected SMEs sustainability practices, using SEM-PLS analysis. Innovation also positively influenced sustainability practices and business performance. Furthermore, the positive impacts of collaboration and innovation on business performance were mediated by sustainability practices. Sustainability practices also positively affected business performance, showing that the enhancement of sustainability practices commitment was required to achieve Sustainable Development Goals (SDGs) without sacrificing SMEs business growth. From the results, the implementation of other variables was recommended for future analyses, to improve the understanding of the different factors driving sustainability practices in SMEs.

The influence of the labour market and COVID-19 on human resource practices in SMEs in China: a longitudinal study

PurposeThe purpose of this study is to investigate the evolving perceptions and human resource (HR) responses of owners and HR managers of Chinese small and medium-sized enterprises (SMEs) towards local labour markets in the context of the impact of the coronavirus disease 2019 (COVID-19) pandemic.Design/methodology/approachThis study adopts a two-stage longitudinal qualitative approach involving 52 interviews with owners and HR managers of Chinese SMEs in the pre- and post-pandemic time periods.FindingsThe findings reveal a shift from the perceptions of a general labour shortage to perceptions of specialised talent shortages and increasing geographical disparities in local labour markets. They further reveal that SMEs are increasingly likely to adopt efficiency-oriented, flexibility-enhancing HR practices in the face of high uncertainty.Practical implicationsThe findings provide insights into the nature of the constraints of SMEs' sustainable development that need to be addressed by policymakers, SME owners and HR managers when they devise and implement policies relating to structure optimisation, labour market integration and mobility enhancement.Originality/valueIn contrast to extant literature that has examined the labour market at the national level, this study explores the views of SMEs (the demand side) by taking a localised perspective on how SMEs have responded to change through their HR practices.

SMEs on the way to a circular economy: insights from a multi-perspective review

AbstractThe transition to a circular economy (CE) has garnered widespread attention as a solution to address economic, environmental, and social challenges. While large enterprises and policymakers have made steps in adopting CE practices, small and medium-sized enterprises (SMEs) face unique challenges due to limited resources and expertise. Understanding the multi-level perspective (MLP) is essential for SMEs to successfully transition to a CE, as it considers factors at the micro, meso, and macro levels. However, current research often focuses on single levels, necessitating a comprehensive understanding of the phenomenon through systematic research. To address this need, this study conducts a systematic literature review (SLR) using the MLP framework to analyse existing research on SMEs' transition to a CE. The study aims to identify macro-, meso-, and micro-level factors, actors, and mechanisms influencing the transition process. The SLR contributes to academic understanding by developing a conceptual model that elucidates the dynamics of the circular transition process within SMEs. Additionally, it provides practical recommendations to support SMEs in navigating the transition successfully. The adoption of the MLP framework empowers SMEs, policymakers, industry associations, and consumers to play their roles effectively in driving the CE transition. While the study acknowledges certain limitations, it opens avenues for future research and enhancement of CE practices in SMEs.

Categorizing the effects of knowledge management practices on SMES: a literature review

Large firms have managed to design robust knowledge management (KM) systems that help to create more effective responses to turbulent environments. On contrary, small and medium-sized enterprises (SMEs), which often suffer from the liability of smallness, usually carry out KM practices in a more informal and less planned manner. The objective of this research is to characterize the effects of KM practices in SMEs. The designed documentary review systematically analyzed 276 publications in journals indexed in Scopus in 2022. The main results suggest a tendency to study the dimensions of KM, such as dynamic technological capability, human capital, and their effects on financial and innovative performance, among others. The findings contribute to the literature by reordering information provided by scientific publications and revealing the dependent, mediating, and moderating variables linkedto KM that are currently used by SMEs.

Recruitment in SMEs: the role of managerial practices, technology and innovation

PurposeVarious scholars suggest that there is a lack of research on the recruitment in small and medium-sized enterprises (SMEs) and also a scarcity of theoretical basis for the recruitment procedures used by these companies. As the vast majority of studies concentrate on larger organizations, they may not accurately reflect the challenges faced by smaller-sized entities to profoundly and accurately comprehend their recruitment procedures. In addition, the use of technology in recruitment has grown in importance in today’s quickly evolving business environment, particularly in light of the COVID-19 pandemic footprint. This study aims to examine the recruitment procedures used by SMEs and how they have been compelled to adjust to different extents to these technological improvements by the effects of the aforementioned epidemic.Design/methodology/approachWith the aim to investigate the current recruitment practices in SMEs and the extent to which digital technologies are embraced by these companies within human resources (HR) procedures, this research relied on interviews with SMEs representatives. The qualitative methods used provided access to relevant data and insights, as they allowed close interactions with top managers and CEOs of ten companies from various sectors. Thus, the research results draw a vivid and reliable image of the procedures and practices used by small and medium-sized companies to attract, select and retain their staff.FindingsThis study’s findings are of increased interest to HR professionals, recruiters and managers in SMEs, who aim to attract and retain the best talent and optimize their recruitment strategies in a rapidly changing business environment, enabled by technological advancements. Effective HR recruitment procedures adapted to the specific needs of small and medium-sized companies can lead to several benefits for the organization, including improved employee selection, reduced turnover and increased organizational productivity.Research limitations/implicationsAlthough the interviews examined here encompass recruitment techniques from SMEs in a variety of industries, the results’ generalizability is limited by the sample size and geography. Furthermore, the findings’ dependability is dependent on the accuracy of the data provided by the respondents.Practical implicationsThis investigation confirms some of the theoretical underpinnings which point to the lack of formalized structures and procedures in the recruitment process in SMEs, which enjoy more flexibility in managing HR processes. In addition, the results reinforce the arguments indicating an adjustment between HR strategies or policies and organizational goals in smaller enterprises which adapt faster to changes in the market. Moreover, it becomes apparent that there is a relationship between the quality of job descriptions and the successful fit in attracting the right candidates for the open positions. Furthermore, digital technologies offer opportunities for expanding the recruiters’ reach to a wider audience and also support the selection stage, thus increasing the chances of finding suitable staff. As the need to shift from traditional recruitment to e-recruitment in SMEs has been highlighted in the literature, the qualitative research revealed that this need was driven on the one hand by the COVID-19 pandemic when these companies successfully adapted and implemented new online methods of recruiting, but also by the lack of skilled labor, leading to the expansion of recruitment to other parts of the country or even to other countries.Social implicationsWith regard to the proportion of men and women used in small and medium-sized companies, there is a clear need to involve and train more women in the predominantly male-dominated industrial and IT sectors. From this point of view, companies tend to devote more interest to integrating communities of women in these industries, as well as in key management positions. Another point of interest that the study highlights is the fact that SMEs have started to get creative with the benefits package they propose to candidates and focus on remote work, hybrid office–home working, or seasonal work to offer future employees a better work–life balance.Originality/valueThe added value of this investigation is filling the gaps in the current literature concerning recruitment procedures currently used by SMEs, the challenges they face and the solutions they advanced to solve them. Furthermore, SMEs often drive innovation and competition in the market and play a crucial role in the supply chain of larger companies, providing them with the goods and services they need to operate and supporting the availability and reliability of products from larger companies. They are often the driving force behind revitalizing local economies and creating new employment opportunities. Consequently, the underlying significance of this study is rooted in the need to modernize and simultaneously improve HR recruitment procedures through the integration of technology and a focus on innovation.

Circular Economy in SMEs – The Role of Commitment to Sustainability and Digitalization

Small and medium-sized enterprises (SMEs) are a decisive part of the efforts against climate change. However, they are late in terms of sustainability and circular economy (CE). Little is known about the factors that facilitate the implementation of CE practices in SMEs. Due to CE leading to cost savings, new business models or reputation gains, companies can achieve a competitive advantage. To realize this competitive advantage the strategic orientation of a firm is pointed out. Various theoretical papers have shown how CE can be enabled and how it can be inhibited. However, empirical studies that support the existing literature are lacking. The goal of this paper is to investigate the influence of two mechanisms, namely commitment to sustainability (CtS) and digitalization as strategic orientations on CE implementation. Therefore, we conduct a study with a self-developed sample of 754 German SMEs. Using multiple linear regression analyses, the results show that digitalization and CtS positively influence CE implementation in SMEs. Interestingly, the complementary effect of pursuing a dual strategy toward digitalization and sustainability is not significant for CE implementation. Our study contributes to the CE literature by giving a nuanced understanding of various antecedents of CE implementation. This study provides several approaches for managers of SMEs to improve their CE practices. First, digitalization is indeed an effective tool for implementing CE practices. Therefore, practitioners should strengthen their digitalization efforts when considering increased CE implementation. Second, a general focus on sustainability increases the implementation of CE practices. Therefore, practitioners should raise awareness of sustainability throughout the organization. Third, the combined focus on CtS and digitalization needs to be carefully considered. To implement CE, digitalization should be embedded in the sustainability strategy. Due to the liability of smallness, SMEs should seek their resources for digitalization and sustainability commitment not only within but also outside the company boundaries.

Innovation Management Model for Small and Medium-Sized Enterprises (SMEs): Georgia

Abstract The present article explores the internal and external factors that enable the implementation of innovative practices within Georgian SMEs and the successful management of innovation and growth. We posit that a well-functioning and effective innovation management model is a prerequisite for growth and sustainability. The research aims to propose a conceptual model of innovation management and assess whether the application of innovation practices impacts the company’s growth in the targeted sample. The interpretation of results is based on examining the phenomenon and synthesis of theoretical information and data obtained from the online questionnaire and focus group. The data reported here appear to support the assumption that innovation management and a good combination of human and financial resources shall be the basis upon which the growth is implemented. As there is still a scarcity of research on innovation management practices in SMEs in developing countries, notably in Georgia, the present study shall contribute to the business and innovation management literature and shall develop recommendations and suggestions for start-up managers, entrepreneurs, policymakers or other interested parties. Consequently, the present research shall attempt to combine theoretical and empirical substantiations and create practical implications.

Management accounting adoption in small businesses: interfaces with challenges and performance

PurposeWhile companies worldwide are largely comprised of small and medium-sized enterprises (SMEs), a significant amount of management accounting (MA) research focuses on larger organisations, thus leaving MA practice in SMEs relatively under-researched. This paper aims to examine MA adoption (MAA) and its interfaces with MA challenges and business performance from a small business perspective.Design/methodology/approachA sample of 502 small businesses is investigated with an embedded mixed methods research design comprised of qualitative content analysis, factor analysis and analysis of variance.FindingsUp to 78% of small businesses are facing MA challenges that stem from organisation, systems, personnel and/or resources. Based on the present findings, MA challenges do motivate small businesses to at least consider investing in MAA as small businesses facing challenges are more likely to acquire systems and services than those reporting no issues at all. Hence, small business managers seem to not only recognise where their challenges lie, but also seek ways to improve the situation through MAA. The analysis also reveals that companies with the highest MA know-how have the best average solvency, suggesting that small businesses indeed benefit from MAA. Interestingly, the performance at medium levels of know-how declines while investments increase, revealing a “decreasing solvency phenomenon”. Potential explanations are, e.g. the MA not fitting the company’s exact needs, or information usability and use being limited by poor MA understanding.Originality/valueThe originality of the research lies in exploring the interfaces between MA challenges, MAA and small business performance using distinctive embedded mixed methods research design.

An extension of the diffusion of innovation theory for business intelligence adoption: A maturity perspective on project management

This study's objective is to analyze the factors that influence whether or not small and medium-sized enterprises (SMEs) use business intelligence. Based on an exhaustive assessment of the literature, the study offers a model dependent on the diffusion of innovation and augmented with factors expressing the idea of project management maturity (PMM). The research applied structural equation modelling (SEM) to examine data obtained from 112 Jordanian company workers. The findings showed that the adoption of business intelligence has a positive and significant relationship to the complexity, compatibility, and relative advantage of business intelligence; the level of project management maturity has a significant effect on the level of relative advantage, compatibility, and complexity; and the level of project management maturity is significantly associated with the change management and knowledge sharing practices in SMEs. However, we contend that further study has to be carried out, particularly in the context of developing nations, in order to get a comprehensive understanding of how different SMEs may effectively deploy and make use of business intelligence.

Modeling the relationship between business intelligence, supply chain integration, and firm performance: Empirical study

This study aims to model the relationship between business intelligence (BI), supply chain integration (SCI), and firm performance in Jordanian small and medium-sized enterprises (SMEs) using structural equation modeling (SEM). The study utilizes a sample of 400 SMEs from different sectors in Jordan to investigate the hypothesized relationships between the constructs. The results show that BI positively influences SCI and firm performance in Jordanian SMEs. Moreover, SCI was found to mediate the relationship between BI and firm performance. The study also found that the impact of BI on firm performance is fully mediated by SCI, suggesting that SCI plays a crucial role in enhancing firm performance in the context of Jordanian SMEs. The study makes several significant contributions to the literature on supply chain management and business intelligence in the context of SMEs. First, it provides empirical evidence of the positive impact of BI on SCI and firm performance. Second, it sheds light on the mediating role of SCI in the relationship between BI and firm performance. Third, the study contributes to the limited literature on supply chain management and business intelligence in the context of Jordanian SMEs. The findings of this study have practical implications for managers of SMEs in Jordan. They highlight the importance of investing in BI tools and strategies to enhance SCI and firm performance. Additionally, the study suggests that managers should focus on improving their firms' SCI practices to fully exploit the benefits of BI and improve their overall performance. Overall, this study provides new insights into the relationship between BI, SCI, and firm performance in the context of Jordanian SMEs. The study's findings can guide policymakers, researchers, and practitioners in developing and implementing effective strategies to improve supply chain management and business intelligence practices in SMEs, particularly in emerging markets such as Jordan.

Information sharing and multi-tier supply chain management of SMEs in the context of Industry 4.0

This paper investigates the transformation of information sharing and multi-tier supply chain management (MSCM) from the perspective of small and medium-sized enterprises (SMEs) in the context of Industry 4.0. SMEs are typically sharing less information digitally, are less active in conducting MSCM, but must be integrated in digital supplier networks to achieve supply chain transparency or traceability. For this purpose, this paper empirically analyzes SMEs from the manufacturing industry in Austria and Germany are investigated regarding information sharing and MSCM. The responses are analyzed to test three hypotheses, using 81 replies from manufacturing SMEs in Austria and Germany. The three hypotheses investigate the upstream and downstream MSCM practices of SMEs as well as which kind of information is shared with and by SMEs. The results help to understand and reveal potential barriers for information sharing besides technical possibilities to SMEs in order to be actively involved in MSCM.

Sustainability Practices and Performance in European Small-and-Medium Enterprises: Insights from Multiple Case Studies

The advancement of sustainability trajectories is a critical challenge for most of small- and medium-sized enterprises (SMEs). SMEs require specific considerations with regard to business methodologies for achieving and enhancing sustainability, since their business case is far from similar to larger counterparts. As a consequence, tools for implementation of sustainability practices within SMEs need to recognize these differences as well and take into account the intrinsic characteristics and special needs of these enterprises accordingly. This paper reports findings from a multiple case study survey aiming to explore new directions for enhancing the sustainability levels demonstrated by European SMEs. Case studies were conducted in SMEs from four European countries (Denmark, Austria, Greece, and the UK) attempting to shed light on the implementation status of sustainability practices within their business core design and suggest ways of transferring such approaches to other SMEs. In this context, three key questions guided the study — What is the current status of sustainability practices by European SMEs?, what are the emerging issues, setbacks and opportunities towards sustainability practices in SMEs?, and what strategies, resources, and competences may facilitate effective sustainability embeddedness in SMEs? Face-to-face interviews were conducted with owners and managers of the selected SMEs to better understand their attitude and performance in terms of implementing sustainability practices. Findings allow highlighting key sustainability practices as well as drivers and barriers that stimulate or hamper respectively the sustainability practices implementation. While findings reveal a considerable variation in viewpoints among the interviewed SMEs, we identify a strong orientation and momentum towards sustainability endorsement. The paper concludes with implications for policy and management planning and an overarching aim to increase awareness and consideration of sustainability aspects in European SMEs.

Digital responses of SMEs to the COVID-19 crisis

PurposeThis paper aims at exploring the factors that are important for the digital development of small and medium-sized enterprises (SMEs) in response to the coronavirus disease 2019 (COVID-19) crisis compared to large-sized enterprises.Design/methodology/approachUsing data from a survey in Greek firms during the pandemic, econometric models are estimated to identify factors that are related to the expansion of digital marketing and e-commerce practices of SMEs and large-sized enterprises based on the technology–organization–environment framework.FindingsThe results suggest that while further investments in information and communication technology (ICT) infrastructure are important for the digital development of SMEs during the COVID-19 crisis, it is the innovative activities that advance the digitalization of large-sized enterprises. Also, SMEs, which implement flexible human resource (HR) practices (such as remote work) and face delays in the supply chain due to the pandemic, appear to have increased probability of expanding their digital marketing and e-commerce. On the contrary, HR practices do not seem to matter for large firms, while new regulations appear to discourage their digital development during the COVID-19 crisis.Originality/valueThis is the first study which empirically explores the digital reactions of SMEs compared to those of large-sized enterprises in a pandemic crisis context. It advances the limited knowledge on the potentially different responses of SMEs and large-sized enterprises to major external shocks with respect to their digital marketing and e-commerce expansion.

The influence of Corporate Governance Practices on Financial Performance of Small and Medium-Sized Enterprises in Ghana

This study examined the influence of corporate governance practices on the financial performance of Small and Medium Sized Enterprises (SMEs) in Ghana. The study involved a survey of 320 owners/managers of SMEs through a stratified random sampling technique. The main instrument for the collection of data was a questionnaire whiles data was analysed using statistical tools such as mean and standard deviation as well as the use of multiple regression technique to answer the research questions. The results of the study showed that all the four areas of corporate governance practices examined in the study which include the size of the advisory board, the composition of the board, the managerial competence as well as financial disclosure and transparency were positively associated with financial performance of SMEs in Ghana. However, there is poor financial disclosure and transparency among SMEs in Ghana. Weak legal controls and law enforcement, and poor financial disclosure systems are some of the obstacles that affect the practice of corporate governance among SMEs. The study concludes that corporate governance practices of SMEs have significant impact on their financial performance. On the basis of the above findings and conclusion, it was recommended that shareholders of SMEs should ensure that their respective enterprises have active and sizeable advisory boards who meet regularly to support in the management of the firms. Also, managers of the firms should improve their managerial competence through training and development programmes as that affect performance of SMEs in Ghana

How to adapt lean practices in SMEs to support Industry 4.0 in manufacturing

Industry 4.0 promises to increase productivity and flexibility for the manufacturing industry, which translates into greater customer value and lower costs. Lean manufacturing has long championed principles and tools with a focus on value adding activities, elimination of waste and continuous improvement. Even the most successful lean manufacturing firms, in terms of efficiency and quality achieved through waste reduction, will acknowledge there is a lot of opportunity for improvement. This review evaluates how lean principles can support Industry 4.0 in pursuit of greater customer value and manufacturing excellence. Leveraging the opportunities that exist within Industry 4.0 umbrella of technologies can help to further reduce the nine wastes of lean. While large corporations have access to extensive capital markets and can capture economies of scale offered by leading edge technologies of Industry 4.0, small and medium sized enterprises (SMEs) with greater capital restraints face the challenge of justifying Industry 4.0 technologies and cannot risk being at the bleeding edge of technology. Using a case study of a small electronics manufacturing firm, the opportunities, challenges, and the implementation strategy for technology are examined. This paper finds that SMEs pursuit of process efficiencies and waste reduction can be best achieved through a focus on foundational digitalization & data management then taking a stepwise approach towards the cyber-physical systems of Industry 4.0.

A Systematic Mapping Study of Predictive Maintenance in SMEs

The rapid growth of Industry 4.0 and predictive methods fostered a great potential for state-of-the-art techniques in the industrial sector, especially in smart factories. The equipment failure or system breakdowns during run time of a factory creates a severe problems towards impoverishment of the production system and destitution of the business. Predictive Maintenance (PdM) is a cost-saving and data driven technique to predict the maintenance time of in-service equipment or systems to reduce breakdown time and increase productivity. Although PdM is pragmatically adopted in large-scale industries, there is a lack of studies that map the PdM adoption in small and medium-sized enterprises (SMEs). In this systematic mapping study (SMS), we focus on predictive maintenance from an SME perspective to explore the field for researchers, scientists, and developers to comprehend the potential of PdM systems, their challenges, distinctive characteristics, and best practices in SMEs. Our study is based on four research questions comprised of demographic data, key challenges, distinctive characteristics, and best practices of predictive maintenance in SMEs. We found that the current literature on PdM is deficient in the SME domain, especially the financial side is vague. There is a huge potential for PdM in SMEs to design cost models and focus on data availability impediments. Management and monitoring of PdM and skilled personnel are also inadequate. Thus, we present a study that extracts the knowledge from the existing literature about PdM in SMEs, finds the research gap, and can assist in identifying the barriers and challenges of PdM adoption in SMEs.