Small And Medium Enterprises Employees Research Articles

The Impact of Digital Marketing Adoption on Firm Performance: A Case Study of Small and Medium Enterprises in India

Purpose: The aim of the study was to investigate the impact of digital marketing adoption on firm performance: a case study of small and medium enterprises in India. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The adoption of digital marketing among small and medium enterprises (SMEs) in India has led to significant improvements in firm performance. Increased online visibility and reach have resulted in greater customer engagement and acquisition for these businesses. Cost-effectiveness and targeted advertising through digital channels have enhanced ROI compared to traditional marketing methods. SMEs embracing digital marketing have experienced heightened brand awareness and recognition in competitive markets. Unique Contribution to Theory, Practice and Policy: Resource-Based View (RBV), Institutional Theory & Innovation Diffusion Theory may be used to anchor future studies on the impact of digital marketing adoption on firm performance: a case study of small and medium enterprises in India. Develop tailored digital marketing training programs and capacity-building initiatives aimed at enhancing the digital literacy and skills of SME owners and employees in India. Policymakers should also prioritize initiatives to improve digital connectivity and access to affordable internet services in rural and underserved areas.

Determinants of Cross-border E-Commerce Usage Based on TOE Framework of SMEs in Hebei Province

A comprehensive model has been developed to evaluate the usage and outcomes of cross-border e-commerce (CBEC) at firm level. The model is built on the TOE framework, and we have focused on the post-adoption phase, which involves the actual usage of e-commerce and its potential to generate value, rather than just the adoption aspect that is typically the focus of previous literature. The aim of this research is to investigate determinants of e-commerce usage among small and medium enterprises (SMEs) in Hebei Province. The main focus is to conduct preliminary analysis and reliability and validity testing on data of the pilot study. This is necessary to receive valuable feedback from the participants and ensure the final survey's reliability and validity. A pilot survey is conducted in SMEs of Hebei Province using purposive sampling to analyse reliability and validity. In the pilot study, we conducted a survey of 50 SMEs in Hebei Province, and the reliability and validity of our findings were confirmed, and the result provided a context to undertake the analysis of data. The research provides SME employees, managers, governments, and researchers in Hebei Province with a reference for formulating strategies that suit the business model of CBEC SMEs in the province and helps firms make good use of e-commerce to increase international competitiveness.

Impact of leadership styles on employee performance in small and medium enterprises

This study focuses on the relationship between leadership styles and employee performance within the framework of European small and medium enterprises (SMEs). The study conducted interviews with 50 leaders and employees of different SMEs to collect data and reach the findings. The study shows the mixed influence of leadership styles and contextual moderation through qualitative interviews of leaders and employees from various SMEs in Europe. It sheds a spotlight on the various styles of leadership that typify many European SMEs, such that transformational leadership dominates significantly. The sense of dedication and zeal encouraged by charismatic leaders prompts professionals to action. Transactional leadership, however, does facilitate task-oriented accomplishment but it adversely affects employee’s vitality. The lack of common feedback on laissez-faire leadership highlights the essence of flexibility and considering the preferences of team members. Social psychological and other contextual aspects — organizational culture and the SME developmental stage — are, therefore, very important moderators of styles. With transformational leadership, innovative SMEs can thrive; transactional leadership might cause SMEs from regulated industries to grow fat on them. The preferential leadership according to the start-ups and the mature SMEs is different. Its implications for practice point out the importance of coherence with respect to the personality style of the leader concerning the context of the organization and the needs of employees.

Sustaining organisational performance of small and medium enterprises (SMEs) through entrepreneurship

The study examined the effect of entrepreneurship capital on organizational performance of SMEs in South-South, Nigeria. The specific objectives are to: to examine the effect of Social Capital on organisational performance of SME’S in South-South Nigeria; ascertain the effect of loan and grant on organizational Performance of SME’S in South South Nigeria. The descriptive survey research design was used. A sample size of 400 SMEs employees of selected SMEs was used. The study used descriptive statistics, correlation, and multiple regression analyses to analyze the data collected for the study. Finding showed that Social Capital (β =0.250, p=0.000< 0.05) and Loan and Grant (β =0.224, p=0.000< 0.05) have significant positive effect on organizational performance. It was concluded that entrepreneurship capital has a significant positive effect on organizational performance. It was recommended to achieve organizational performance; management of SMEs should continue to leverage on social capital to positively influence the performance. The study established that customer retention and social interaction is influenced by the level of relationship between entrepreneurship capital and organizational performance.

Performance management system and its role for employee performance: Evidence from Ethiopian SMEs

Small and mediumenterprises (SMEs) are crucial to Ethiopia's economy in creating jobs and reducing poverty. Despite the extensive literature on performance management systems (PMS) and employee productivity, there remain unanswered questions regarding which PMS predictors most effectively contribute to improved employee performance. This study aims to investigate the role of PMS in enhancing employee productivity in Ethiopian SMEs using both qualitative methods such as a literature review alongside quantitative techniques like linear regression analysis based on primary & secondary data sources. The findings provide valuable insights into effective strategies for implementing an efficient performance management system that can enhance employees' work outcomes within SMEs operating in Ethiopia.The results show that the implementation of an effective performance management system can significantly improve productivity among SMEs in Ethiopia. The five predictors identified by the linear regression model are important factors that contribute to better work outcomes among employees in Ethiopian SMEs; however, evaluation has been found to have the strongest positive relationship with improved job outcomes among those studied. Based on these findings, we recommend that SME owners/managers/HR professionals implement an effective performance management system that includes clear job responsibilities defined through performance planning, regular feedback provided about progress made towards goals set during the planning stage, periodic appraisals providing constructive criticism as well as recognition for good work done; offering training opportunities helping employees develop new skills or refine existing ones; rewarding high-performing employees who meet or exceed expectations with incentives such as bonuses or promotions can motivate them further.

Impact of Green Servant Leadership in Pakistani Small and Medium Enterprises: Bridging Pro-Environmental Behaviour through Environmental Passion and Climate for Green Creativity

Small and medium enterprises (SMEs) are crucial for any economy to grow and succeed, as evidenced in the Pakistani context, where SMEs contribute 30% of the country’s GDP. The objective of this study is to link green servant leadership (GSL) to the pro-environmental behaviour (PEB) of employees, particularly in SMEs, which very few studies have investigated. Building on social learning theory (SLT), this study developed and tested the conceptual framework that examines the impact of GSL on PEB and the mediating role of environmental passion (EP) and climate for green creativity (CFGC) among employees of SMEs. Data were collected from 460 middle-line managers, and a structural equation modelling (SEM) technique was applied to test hypotheses. The main findings revealed that GSL is impacted by the PEB, while EP and CFGC mediated these relations. The study findings demonstrated that a GSL with strong practices and values towards the environment could have a significant impact on employees’ PEB. This study fills the research gaps in different ways: First, by identifying the role of GSL on the PEB of employees. Second, by examining the dual-mediation mechanism of EP and CFGC between GSL and PEB. Third, this study is focused on the economic context of a developing country. The study offers guidelines for establishing PEB in SMEs. Multiple training programmes and effective planning procedures can achieve this milestone. The administration of SMEs should also give special consideration to pro-environmental issues in its hiring and recruitment practices for managers and leaders.

Does meaningful work mediate the relationship between empowering leadership and mental health? Evidence from Malaysian SME employees.

In Malaysia, small and medium enterprises (SMEs) account for more than half of all employment and 98.7% of all businesses. There is little research on empowering behaviors in SMEs, despite leadership empowerment being often practiced. Therefore, the study aims to investigate how empowering leadership affects employees' mental health. The study also reveals meaningful work's role in mediating the relationship between empowering leadership and employees' mental health. A stratified random sample approach was used to collect data from 516 employees of Malaysian SMEs. The data was analyzed, and the hypothesis was tested using structural equation modeling (AMOS 21.0) with bootstrap confidence intervals computed to evaluate the mediating effect. The results demonstrate that empowering leadership significantly improves employees' mental health. Furthermore, the association between empowering leadership and mental health is partially mediated by meaningful work. This study contributes to the present empowering leadership-meaningful work-mental health model for SME employees, which reduces stress and anxiety at the workplace and positively impacts psychological empowerment and their capacity to control their overall emotions in instances of success.

Entrepreneurial Leadership and Innovative Work Behaviour: Moderating Role of Islamic Work Ethics

The present environmental complexity resulting from technological advancements has made it critical for firms to promote innovation in their activities, products, services and outputs. Innovation is a solution to everyday management problems to successfully adapt to workplace challenges and unanticipated occurrences, the invention of new ideas to improve the workflow and the advancement of novel products and services. However, for a firm to be innovative, it is essential to be led by an entrepreneurial lead. Therefore, we aim to examine the impact of entrepreneurial leader(ship) (EL) on employees’ innovative work behaviour (IWB) with moderating role of Islamic Work Ethics (IWE), with a theoretical lens of Social Cognition and Resource-Based view. To achieve these objectives a self-administered survey questionnaire was circulated among managers, owners and employees of small and medium enterprises (SMEs) in Islamabad. The Partial Least Squares Structural Equation Modelling (PLS-SEM) model was applied for hypotheses testing. The results of SEM demonstrate that EL significantly influences the IWB of employees in SMEs. Similarly, IWE also shows a significant effect on the employees’ IWB. However, an insignificant effect for IWE as a moderator between EL and IWB is observed. Overall, the findings of this research contribute to the existing body of knowledge by conceptualising a theoretical and practical model of entrepreneurial leadership predicting employees’ IWB in SMEs.

Influence of Coopetition on Firm Financial Performance: Mediating Role of Open Innovation Performance

It is essential for a firm to take advantage of the rising phenomenon of coopetition across multiple firms and marketplaces in today's highly competitive climate to enhance its financial performance. Hence, this study contributes to the existing body of literature by probing the link between coopetition and the success of open innovation initiatives in Pakistani SMEs. The failure of Pakistani SMEs to establish a controlled method of coopetition has had a deleterious effect on financial performance. The current research is conducted to identify the low open innovation problem in Pakistani small and medium enterprises (SMEs), which has a negative effect on financial performance. It aims to investigate the impact of coopetition on financial performance and the mediating function of the firm’s open innovation performance in it. To achieve this objective, a survey employing a cross-sectional research design was conducted. The respondents were selected from SMEs operating in the service sector in the cities of Bahawalpur, Multan, and Lodhran in Pakistan. A total of 155 questionnaires were distributed among managerial employees of the above SMEs. The data collected from the responses to the questionnaires was analyzed through Partial Least Square-Structure Equation Modeling (PLS-SEM). It was found that coopetition has a strong role in boosting financial performance. The importance of trust and dependence in crafting an effective coopetition strategy is also emphasized in this research.

Environmental knowledge, perceived behavioral control, and employee green behavior in female employees of small and medium enterprises in Ensenada, Baja California.

Concern for the environment and the diminishing availability of resources is undoubtedly a relevant issue, both personally and organizationally. That is why knowing the factors that affect the occurrence of green behavior is relevant, particularly in SMEs, due to their importance in the economy of all countries, and specifically by the women who work in them, since their participation is gaining more and more preponderance in the Mexican labor force. It is because of the above that the objective of the research was to analyze the effect of environmental knowledge and perceived behavioral control on the employee green behavior of female employees of small and medium enterprises (SMEs) in Ensenada, Baja California. The study is characterized by having a quantitative approach, a non-experimental, exploratory design and a transverse temporal dimension. 240 questionnaires were applied to female employees of SMEs in Ensenada, Baja California. The data collected was analyzed using structural equation modeling based on the partial least squares technique. The results empirically reflect the following: environmental knowledge has a positive and statistically significant effect on perceived behavioral control and employee green behavior. Also, it was found that the perceived behavioral control variable had a positive and statistically significant effect on the employee green behavior of female employees of SMEs in Ensenada, Baja California. Lastly, it was found that environmental knowledge predicts perceived behavioral control which in turn predicts employee green behavior. In this sense, such findings allow us to consider environmental knowledge and perceived behavioral control as predictive variables of employee green behavior.

The influence of national culture on employee voice in small and medium enterprises: a cross-cultural perspective

PurposeThe purpose of this paper is to examine how employee voice in small and medium enterprises (SMEs) is shaped by national culture. Specifically, the paper explores the relationship between national culture and organisational norms and signals. Furthermore, it explores the impact of such norms on employee voice behaviours. The paper chooses to address these issues in the SME context, in three countries with divergent cultural dimensions.Design/methodology/approachThe authors use Kwon and Farndale’s (2020) typology as our “a priori” framework to explore the influence of national cultural values and cultural tightness on SME organisation norms, signals and employee voice behaviours. Our study uses qualitative data gathered through in-depth interviews with SME employees in England, Nigeria and Thailand.FindingsThe results from our interviews are presented thematically. The data illustrates how the cultural dimensions identified by Kwon and Farndale (2020) can have an influence on organisational voice norms. The dimensions are power distance, uncertainty avoidance, in-group collectivism, performance orientation, assertiveness and cultural tightness.Originality/valueHistorically, the impact of national culture as a macro factor on voice has been largely ignored by academic research. Studies in non-western contexts are especially rare. This paper derives its originality by offering unique insights into the culture–voice relationship from both western and non-western perspectives. This provides an international, cross-cultural, comparative dimension to our study. This research includes findings from under-researched settings in Nigeria and Thailand.

Green HRM and employee efficiency: The mediating role of employee motivation in emerging small businesses

The modern organizational structure expects that the human resource department should train the employees effectively to sustain the environment. This study aims to understand the role of green human resource management (GHRM) in the efficiency of organizations’ employees in small and medium enterprises (SMEs) of Pakistan. The questionnaire was developed on a five-point Likert scale to collect primary data from the target respondents, and the target respondents of this study were the employees of SMEs in Pakistan. The results of the study indicate that GHRM is an important tool to motivate and train employees, which ultimately increases the efficiency of employees. This study demonstrates that the SMEs in Pakistan need to consider the critical role of GHRM as it is emerging and provides reliable resources as per the organization’s requirements for better performance. This study provides recommendation for future studies to consider and contribute to the literature and to the practices of SMEs in Pakistan for the efficiency of their employees.

Factors Impacting the Acceptance Level of Insurance Policies by Small and Medium Enterprises in Sri Lanka

Aim: The focus of this study is to provide insight into the acceptance level of insurance policies by Small and Medium Enterprises (SMEs) in Sri Lanka.
 Study Design: Quantitative research strategy was incorporated into the study.
 Place and Duration of Study: Owners, managers, and employees of SMEs were identified as respondents for this study, between June 2020 and July 2021.
 Methodology: This study was conducted based on Primary Data gathered by distributing questionnaires. The sample profile is tested through frequency analysis. To evaluate the goodness of data, the reliability and validity of the measurement items are utilized. Here factor analysis, average variance extracted, Cronbach’s alpha values, and discriminant validity are tested. The multiple regression analysis is utilized to determine whether Lack of awareness, High premium cost and paperwork, Experience and beliefs, Low-Income level, Lack of knowledge, and lack of relationship between SMEs and Insurance companies affect the acceptance level of insurance by SMEs in Sri Lanka.
 Results: The overall results of the hypothesis of the study are presented based on multiple regression analysis. Sig. (p) values of Lack of Awareness (p =.010), Experience and Beliefs (p =.002), Low Income Level (p =.000), and Lack of Knowledge (p =.000). The findings revealed that Lack of Awareness, Experience, and beliefs, Low-income level and Lack of knowledge of SMEs have a significant impact on the acceptance level of insurance policies by SMEs.
 Conclusion: Lack of Awareness, Experience and beliefs, Low-Income level, and Lack of knowledge has caused to inhibit acceptance level of insurance policies by SMEs. In designing insurance plans for SMEs, these factors should be taken into account by Insurance providers.

Does small and medium enterprise differential leadership increase subordinate knowledge hiding? Evidences from job insecurity, territorial consciousness and leadership performance expectation.

Leadership is considered as a significant antecedent of knowledge hiding in SMEs (small and medium enterprises), but the differential dimension of leadership has been evidently neglected in both theoretical and empirical areas. Drawing on conservation of resource theory and social cognitive theory, this research investigates whether and how SME differential leadership influences subordinate knowledge hiding. Specifically, we analyze the underlying mechanisms of a chain-mediator—job insecurity and territorial consciousness and a boundary condition—leadership performance expectation. Multi-wave and multi-source data were collected from a sample of 704 Chinese SME employees and 140 relevant leaders and applied HLM meso-mediational frameworks, and Bootstrap technique with non-parametric percentile residuals for deviation correction. The results show that differential leadership plays a potential role in promoting subordinate knowledge hiding through the serial intervening mechanism of job Insecurity and territorial consciousness in SMEs. Furthermore, the positive relationship between SME differential leadership and job insecurity becomes stronger among subordinates under higher leadership performance expectation; the positive indirect relationship between SME differential leadership and subordinate knowledge hiding is stronger with higher levels of leadership performance expectation. This study contributes to the existing academic literature by empirically analyzing the under-investigated correlation between differential leadership and subordinate knowledge hiding in SMEs, and by exploring the underlying mechanisms and a boundary condition.

A Framework for Knowledge Management System Adoption in Small and Medium Enterprises

Knowledge is a key competitive advantage for small and medium enterprises (SMEs) as a way of competing with other organisations. There is a need to investigate SME adoption of knowledge management systems (KMSs). Knowledge management systems can only assist in this task if they are sufficiently adopted. The purpose of this research was to develop a conceptual framework for KMS adoption within an SME context. The research aimed to explore the interdependencies between various contextual KMS adoption factors, namely the technology, organization, environmental and human behavioural contexts. Four mini-focus groups were conducted and included employees in SMEs. Thematic analysis identified nine themes that describe the dynamics that either promote or prevent KMS adoption. The findings provide deeper insights into the influencing factors in KMS adoption to enhance SME performance and competitiveness. The KMS adoption framework can be applied to improve the adoption of technology in SMEs. Future research could include SMEs in specific industries to compare adoption factors and could also include larger organisations.

An Examination of Customer Relationship Management and Business Sustainability in Small and Medium Enterprises

The aim of this paper was to investigate the impact of customer relationship management (CRM) dimensions on business sustainability in small and medium enterprises (SMEs). A quantitative research approach was employed for data collection and fulfilling the objective of this study. In particular, the data was gathered through a survey instrument from 183 employees of SMEs in Saudi Arabia. The obtained responses were analyzed using the partial least square approach (PLS-SEM). The outcomes showed that customer orientation and CRM organization have significant positive effects on business sustainability. The results also verified that CRM technology and knowledge management play important roles in affecting business sustainability. These findings confirm the importance of customer relationship management and its dimensions in enabling firms to sustain their businesses and thrive in today's changing business environment.

Adoption of Digital Technologies by SMEs for Sustainability and Value Creation: Moderating Role of Entrepreneurial Orientation

Digital business transformation is considered an effective business strategy that appears to have gained attention since the enterprises are challenged to continuously improve their business practices as well as capabilities. The use of digital technologies could reduce the influence of external crises and could introduce massive changes in business operations by providing better business models. Moreover, adopting digital technology can influence both economic sustainability and social value of enterprises and can improve regional socio-economic conditions. There are few recent studies on how technology can empower enterprises at different phases of growth and sustainability; furthermore, very few studies are available that determine how adopting different modern digital technologies can create value for small and medium enterprises (SMEs). Therefore, this study aims to close this gap and investigate the moderating role of entrepreneurial orientation. With the support of resource-based view (RBV) and dynamic capability view (DCV) theories, along with a literature review, a theoretical model has been developed. It was then validated using the PLS-SEM technique considering 319 respondents who are SME employees in India. The findings show that adopting digital technologies has a significant impact on the creation of economic sustainability and social value for SMEs. The study also found a significant moderating impact of entrepreneurial orientation on the relationship between social and economic value creation and SME performance.

The Study on Human Resource Practices and AMO Model and Its Impact on Employee Commitment among Gen Y SMEs Employees in Selangor, Malaysia

Researchers and practitioners have been very enthusiastic and spend the most determinations to study all possible means in order to grab the most advantage from their human resources (HR) especially the Gen Y employees. These employees are pertinent to the part of organisation’s strategic business plan and contribute to the organisation’s performance as well as sustainable competitive advantage. Hence, employee commitment remains a key challenge especially in small and medium enterprises (SMEs) in Malaysia. The purpose of this paper is to investigate the relationship of compensation, training, employee involvement as well as the ability, motivation and opportunity (AMO) model towards employee commitment. The study also seeks to provide the theory-based empirical evidence that the role of AMO model as a mediator in achieving the commitment of employees and used Social Exchange Theory (SET) in order to explain the theoretical rationale of the study model. A total of 168 Gen Y employees representing SMEs service sectors in Selangor, Malaysia participated in this study. Partial Least Square-Structural Equation Modelling (PLS-SEM) was utilised in order to explain the relationship among HR practices towards employee commitment as well as AMO model as a mediator. A key finding that emerged from the analysis showed that only training has direct relationship toward the employee commitment and AMO model plays an important role in gaining employee commitment as it mediates the relationship of employee involvement. However, compensation has no effect in any relationship. Particularly, this study has helped to place the human resource practices, AMO model and employee commitment in the SET by giving a new perspective theoretically that the correct approach of gaining commitment of employees by providing the appropriate practices that employee will reciprocate in return. Also, it showed that Gen Y employees are seeking more involvement than compensation in order to commit themselves. SMEs should involve employees in their daily activities or any decision-making and offers other recognition programs, as money and remuneration are no longer a motivational urge for employees to become committed. Moreover, the findings could therefore serve as a turning point for SMEs to start concentrating and provide more job-related training so that employees can upgrade their skills particularly in this Industrial 4.0 era, where everything changes greatly in the way they deal with others.

A sequential relationship between entrepreneurial orientation, human resource management practices, collective organisational engagement and innovation performance of small and medium enterprises

Despite the increasing relevance of entrepreneurial orientation (EO) for innovation performance in the context of small and medium enterprises (SMEs), few studies examine the complexity of the underlying mechanism that explains the relationship between EO and innovation performance. Drawing on the resource-based view (RBV) and signalling theory, we examine an organisation-level model to explain how SME EO predicts innovation performance through human resource management (HRM) practices and collective organisational engagement (COE). We used data collected from 186 human resource managers and 526 employees in SMEs. The results indicate that HRM practices and COE sequentially mediate the relationship between EO and innovation performance. To complement studies that identify an organisation’s micro processes (i.e. employee behaviours as mediators between EO and innovation), this study highlights the need to examine macro processes occurring at the organisation level to account for the EO–innovation performance relationship.

The ISO 26000's labor environmental issues during COVID-19: does corporate social responsibility help? Evidence from the Egyptian small and medium enterprises.

Based on both the “stakeholder” and “cognitive” theories, this study shed light on the optimistic side of the COVID-19 pandemic, as it also brings the concepts of corporate social responsibility (CSR) and sustainability back into the light, which helps in solving the labor environmental issues. Our research aims to profoundly investigate the correlation between CSR and labor environmental issues based on the International Organization for Standardization’s standard 26,000 (ISO 26000) during COVID-19 and to also examine how CSR practices help solve labor environmental issues in the Egyptian small and medium enterprises (SMEs). Partial least squares structural equation modeling (PLS-SEM) was adopted, for data analysis and hypotheses testing, on a sample of 307 manager-level employees in the Egyptian SMEs. Results indicate that CSR positively impacts labor practices dimensions (employment relationships, human development and training, social dialog, and health and safety at work). However, CSR has an insignificant effect on social protection and work conditions. This study is scientifically valuable since it helps better understand the pandemic’s effects on environmental labor issues in the Egyptian SMEs and shows how CSR helps solve those issues. Also, it discussed the theoretical contributions and practical implications and showed the limitations and future research for this study areaGraphical abstract