Small And Medium Enterprises Sector Research Articles

Antifragility, resilience and collaborative networks of SMEs: a theoretical foundation

PurposeThe dynamic of the business environment has escalated the competition and uncertainty, which is challenging business survivability, particularly for small and medium enterprises (SMEs). SMEs attract researchers due to their unique characteristics that have limited resources but great flexibility and adaptability. Furthermore, Collaborative Networks (CNs) have been proposed by business scholars as a critical strategy to gain resilience and antifragility. However, the concept of antifragility and its relation with CNs is still vague in the SME sector. Therefore, this study aims to develop a complete understanding regarding: (1) the emerging knowledge that is critical in explaining antifragility in the business sector based on co-citation and thematic analysis; (2) the relation between resilience and antifragility in emerging business research; (3) the relation between CNs and antifragility in emerging business research and (4) a framework of antifragility in the SME context.Design/methodology/approachBibliographic Analysis and Systematic Literature Review are performed to reach the research objectives. We use co-citation and thematic analysis to identify the map of emerging knowledge and the related concepts, which are the fundamentals of antifragility. Furthermore, we use a systematic literature review to determine the relation of antifragility, resilience and CNs in the SME context.FindingsAntifragility is a higher level of survivability compared to resilience. Antifragile SMEs could gain an advantage from the uncertain business environment. However, both in resilience and antifragility, SMEs should become active learners. Furthermore, CNs are proposed as the gateway for SMEs to manage their resource limitations. The conceptual framework of Antifragile SMEs is presented as the theoretical contribution of this manuscript.Originality/valueThis article explains the knowledge structure of antifragility in the business sector, particularly among SMEs. Based on bibliometric data, we describe critical characteristics or mental states entrepreneurs should have when facing uncertainty. Furthermore, we propose a conceptual framework for antifragile SMEs where active learning and positive psychology are the pillars, and CNs are critical ingredients of antifragility in SMEs.

The Revival of SMEs in Indonesia from the Impact of the Covid-19 Pandemic

This research examines the revival of Small and Medium Enterprises (SMEs) in Indonesia amidst the Covid-19 pandemic. This pandemic presents major challenges and is a catalyst for unprecedented change in the SME sector. This article aims to identify and analyze the main factors that play a role in the resilience and growth of Indonesian SMEs during and after the pandemic. Utilizing quantitative data and qualitative interviews, this research reveals that digital transformation and government stimulus play an important role. The research results show that SMEs that use digital marketing show good adaptability and growth, and benefit from the shift in consumer behavior to online platforms. The Indonesian government's fiscal support, by assisting struggling SMEs, enables business continuity and recovery from the impact of the pandemic. The study concludes with policy recommendations to maintain the growth and resilience of SMEs, emphasizing the importance of digital inclusion, easy access to financial institutions, and community support networks. The impact of this research is significant for policymakers, business leaders, and community developers aiming to protect the SME sector from future crisis

Beyond the Crisis: Tracking SME Non-Performing Loan in Indonesia Before and After the COVID-19 Stimulus

This study evaluates the impact of two Indonesian government economic stimulus packages on the performance of Non-Performing Loans (NPLs) in the Small and Medium Enterprises (SME) financing sector. It compares the NPLs in conventional and rural banks with Non-Performing Financing (NPF) in Islamic commercial and rural banks, before and after the stimulus, during the COVID-19 crisis period. The two policies are in the form of interest/margin subsidies and credit/financing restructuring for debtors in the SMEs sector. The approach used is a quantitative approach with three analytical methods consisting of ANOVA, MANOVA and DiD (Difference in Difference). The secondary data in this study were sourced from official publications of government institutions such as the Financial Services Authority and the Ministry of Finance. The results showed that there were significant differences in the performance of NPL/F of Conventional banks, Islamic Commercial Banks, Conventional Rural banks, and Islamic Rural banks before and after the government's economic stimulus policy was determined.

Empowering Growth: The Role of Commercial Banks in Financing Small and Medium Enterprises (SMEs) in India

This research explores the pivotal role played by commercial banks in facilitating the financial growth and sustainability of Small and Medium Enterprises (SMEs) in India. SMEs form the backbone of the Indian economy, contributing significantly to employment generation and economic development. This study employs a mixed-methods approach, combining qualitative insights and quantitative analyses, to comprehensively examine the mechanisms through which commercial banks support and finance SMEs. The qualitative component of the study involves interviews, case studies, and expert opinions to capture nuanced perspectives on the challenges and opportunities faced by SMEs in accessing financial services from commercial banks. Simultaneously, quantitative data analysis will be employed to identify trends, correlations, and statistical patterns associated with the financing of SMEs. Various aspects of the role of commercial banks in SME financing will be investigated, including credit facilities, financial products tailored for SMEs, risk assessment, and the impact of banking support on the growth and sustainability of small businesses. The study aims to provide insights into the strategic implications of commercial bank interventions for the SME sector in India. The findings from this research are anticipated to offer valuable insights for policymakers, banking professionals, and SME entrepreneurs. By understanding the intricacies of SME financing by commercial banks, stakeholders can refine strategies, improve financial inclusion, and contribute to the robust development of small and medium enterprises, fostering economic growth in India. This study serves as a foundation for informed decision-making and future research within the realm of SME financing by commercial banks.

Impact of Green Corporate Governance and Green Finance on Sustainable Performance: A case of Manufacturing SMEs of Pakistan

Impact of Green Corporate Governance and Green Finance on Sustainable Performance: A case of Manufacturing SMEs of Pakistan

Reviewing the impact of cloud computing on small and medium enterprises in Africa

The advent of cloud computing has significantly transformed the business landscape globally, offering a plethora of opportunities for organizations to enhance their operational efficiency and competitiveness. This paper aims to review and analyze the impact of cloud computing specifically on Small and Medium Enterprises (SMEs) in the African context. As cloud computing continues to gain traction worldwide, its implications for SMEs in Africa, which constitute a significant portion of the region's economic fabric, become increasingly crucial. The study will adopt a comprehensive approach, combining both qualitative and quantitative methodologies to assess the various dimensions of cloud computing adoption among SMEs in Africa. It will delve into the challenges faced by SMEs in embracing cloud technology, including issues related to infrastructure, data security, and skill gaps. Additionally, the paper will explore the potential benefits derived from the adoption of cloud solutions, such as cost savings, scalability, and improved accessibility to advanced technologies. Furthermore, the research will investigate the role of government policies, industry collaborations, and infrastructure development in shaping the cloud computing landscape for SMEs in Africa. By examining case studies and success stories, the paper will highlight best practices and identify potential strategies for overcoming barriers to adoption. The findings of this review aim to contribute valuable insights for policymakers, business leaders, and technology providers to formulate effective strategies that promote the widespread adoption of cloud computing among SMEs in Africa. Ultimately, the research seeks to enhance our understanding of the dynamics surrounding cloud technology in the African SME sector and provide recommendations for fostering a conducive environment for its sustainable and inclusive growth.

Accelerating SME growth in the African context: Harnessing FinTech, AI, and cybersecurity for economic prosperity

The economic landscape of Africa is evolving rapidly, and the role of Small and Medium Enterprises (SMEs) is increasingly recognized as a key driver of sustainable development. This review explores the potential of leveraging Financial Technology (FinTech), Artificial Intelligence (AI), and Cybersecurity to accelerate SME growth in the African context, ultimately contributing to economic prosperity. In recent years, FinTech has gained prominence for its ability to revolutionize financial services. By facilitating seamless transactions, enhancing access to capital, and streamlining financial processes, FinTech presents a significant opportunity for SMEs in Africa to overcome traditional barriers to growth. The integration of AI technologies further amplifies this potential, enabling SMEs to harness data-driven insights for informed decision-making, operational efficiency, and personalized customer experiences. However, the adoption of FinTech and AI in the African SME sector necessitates robust cybersecurity measures. As digital transformation accelerates, the risk of cyber threats becomes more pronounced. Addressing these challenges requires a strategic approach to cybersecurity, encompassing robust data protection, threat intelligence, and resilient infrastructure. This review underscores the importance of a holistic approach, wherein the synergy between FinTech, AI, and Cybersecurity becomes a catalyst for economic prosperity. Policymakers, financial institutions, and technology providers must collaborate to create an enabling environment that fosters innovation, supports digital literacy, and ensures the security of digital ecosystems. By embracing this technological trifecta, African SMEs can navigate the complexities of the modern business landscape, foster innovation, and contribute significantly to job creation and economic growth. As Africa positions itself on the global stage, the strategic utilization of FinTech, AI, and Cybersecurity emerges as a pivotal driver for unlocking the full potential of SMEs and propelling the continent toward sustained economic prosperity.

Rise of inflation and formation of interest rate on loans in industrial sector: A VECM approach to assess the impact on total industrial production from evidence of Bangladesh

Industrial development is the prerequisite for sustainable economic growth. This study has examined the impact of the interest rate imposed on advances in the small and medium enterprise (SME) industrial sector, the large industrial (LI) sector, and inflation on the total industrial development of Bangladesh. For this purpose, we have used monthly data from January 2015 to June 2021. The weighted average interest rate of advances (WAIRA) is used as a substitute for the interest rate imposed on advances that were sourced from Bangladesh Bank (BB). We have applied Johansen co integration and the VECM technique to investigate long- and short run relationships, and the results have revealed the existence of both. We have observed that, in the short run, only WAIRA on SME industries has a significant negative impact on total industrial development. In the long run, inflation and WAIRA on SME and large industry have a significant impact on industrial development. The long run relationships have indicated that, inflation and WAIRA in the SME sector have a negative influence on total industrial development, but WAIRA in the large industry (LI) sector has a positive influence. Finally, considering the entire situation of the economy of Bangladesh, especially the growing industrial sector, these findings are highly momentous for policy implications and achieving sustainable development in this sector.

Digital Transformation and Its Impact on Business Performance in SMEs of Pakistan: An Empirical Study

This study investigates the pivotal role of digital transformation in enhancing the business performance of Small and Medium Enterprises (SMEs) in Pakistan. Grounded in the Resource-Based View (RBV) theory, the research posits three hypotheses examining the relationships between technology adoption, digital literacy among management, and investment in digital infrastructure with business performance. A stratified random sampling approach was employed to collect data from managers and employees across various Pakistani SMEs. The findings reveal significant positive correlations between the elements of digital transformation and business performance. Specifically, the study indicates that SMEs embracing technological advancements, fostering digital literacy in management, and investing in digital infrastructure demonstrate improved operational efficiency and market adaptability. This research contributes to the understanding of digital transformation in the SME sector, offering valuable insights for practitioners and policymakers. It emphasizes the need for strategic digitalization approaches and highlights the benefits of supportive digital policies for SMEs. While the study offers robust evidence from the Pakistani context, it acknowledges limitations such as self-reporting biases and the need for further research in diverse geographical settings. Future studies are encouraged to explore the long-term impacts and sustainability of digital transformation strategies in SMEs.

Exploring Constraints and Catalysts: A Comprehensive Analysis of Technology Adoption in Sri Lankan Small and Medium Enterprises

Purpose: Small and Medium Enterprises (SMEs) are considered as the backbone of the economy, however they face many difficulties and challenges for their survival. Adapting to changing technology is one of the primary challenges SMEs face. Globally new technologies such as social media and e-commerce have become the trend in contemporary business activities in Business to Consumer (B2C) communications for SMEs. The study aims to find the factors affecting to the adoption of technology in SME sector in an emerging economy, Sri Lanka.
 Design: The study utilized Technology, Organizational, and Environmental (TOE) model. The data was collected from 102 SME owners in Western province Sri Lanka who are registered as SME sectors with less than 50 employees. Qualitative data were collected from 7 SME owners through semi-structured interviews to evaluate new opportunities can gain via technology adaptation and to evaluate the impact of performance via technology adaptation in SME sector in Sri Lanka.
 Findings: Descriptive statistics revealed that there are substantial disparities in how organizations and the environment adapt to new technologies. The ordinal regression analysis emphasised that organizational and environmental factors significantly influence on adaption of technology. Content analysis revealed that SMEs have gained many new opportunities via adaption of technology such as expand their businesses from local to global using e-commerce platform and online money transactions. Social media has made direct business to business instant contact. Further, transparency of business transactions increase trust with suppliers and customers.
 Implications: The SME sector needs both new technology and updates existing technology status and guided towards modernization and continuous improvement process. Finding of this study will give policy makers and government officials on strengthening and arming SME sector with technology to face challenge and complete with local and international competition.

Talent Management Focus on Small and Medium Enterprises A Systematic Literature Review

This systematic literature review explores the employee perspective on talent management within the context of Small and Medium Enterprises (SMEs) in Indonesia. Out of a total of 208 articles initially considered, the final analysis focuses on seven key articles for comparative evaluation. The research delves into various aspects of talent management, including recruitment strategies, employee development initiatives, and retention policies implemented by SMEs. The study aims to provide a comprehensive understanding of how talent management is perceived and experienced by employees in the unique setting of SMEs in Indonesia. By synthesizing findings from the selected articles, the review addresses crucial factors such as the role of technology, shifts in organizational culture, and specific challenges faced by employees in managing talent within SMEs. Through this systematic approach, the research contributes theoretical insights and practical implications for enhancing talent management practices in the SME sector. The findings aim to offer valuable guidance to SME leaders, human resource practitioners, and researchers seeking to optimize talent management strategies in the dynamic business landscape of Indonesia. The research that integrates the employee perspective into talent management is still relatively scarce, especially with a focus on small and medium-sized micro enterprises in Indonesia. This literature review specifically concentrates on the employee's standpoint within the context of talent management. A systematic literature review approach is employed in this study, assisted by the VOS Viewer application. The PRISMA method is used for the review. Out of the 154 Scopus articles reviewed, including empirical studies, conceptual articles, and book chapters, 7 articles specifically address the employee perspective in talent management research in SMEs. The literature review identifies that, although recent literature involves employees as key participants in strategic talent management, conceptual and empirical articles in this stream are still limited and require further conceptual and empirical development.

THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN YEMEN: A CROSS-SECTIONAL STUDY

Due to the importance of the contribution of Small and Medium Enterprises (SMEs) towards development worldwide, researchers in different contexts have investigated the development of SMEs and how economic development can be driven forward by supporting the SME sector. However, when it comes to lower-income economies, literature is scant in investigating the performance and the development of the contribution of SMEs towards economic development in lower-income economies. Hence, the aim of this article is to explore the extent and status of small and medium enterprises in Yemen as a lower-income economy and how their performance varies according to their characteristics. The article adopts cross-sectional quantitative methodologies, it relies on primary data collected conveniently from 400 owners and managers of manufacturing SMEs in Yemen. Descriptive analysis is used to explore the extent of SMEs' performance, and further, variance analysis using Independent Sample t-test and One Way ANOVA in order to explore the variance in the performance according to the variance of enterprise characteristics. The findings indicated a low extent of business performance among manufacturing SMEs, where the mean score of the overall extent ranges from 4.94 to 5.06 out of 7. Further, The result of running One Way ANOVA revealed that the scope of operation, age, and position of managers, in addition to owning a share of enterprises, significantly contribute to the variance in the business performance among manufacturing SMEs (P < 0.05). These results can benefit the managers and owners of SMEs in Yemen and other similar economies by focusing on the extent of performance that their management can target. The implication of this research is summarized by discussing the performance of SMEs in lower-income economies to draw the attention of authors and scholars toward investigating the role and contribution of SMEs in economic development and welfare in lower-income economies.

The Impact of Service Quality on Customer Satisfaction: The Mediating Effect of Perceived Price in Thailand Small Medium Enterprises

This study investigates the impact of service quality on customer satisfaction, with a special focus on the mediating role of perceived price in the context of Thailand's Small and Medium Enterprises (SMEs). In an era where service quality has become a pivotal factor in differentiating businesses, particularly in the SME sector, understanding its influence on customer satisfaction is crucial. The study also explores how the perception of price plays a mediating role in this relationship, a factor that is particularly relevant in the cost-sensitive market of Thailand. A quantitative research methodology was employed, utilizing a structured questionnaire to collect data from a sample of 324 respondents, comprising customers of various SMEs in Thailand. The questionnaire was designed to measure perceptions of service quality, customer satisfaction, and the perceived price. Statistical analyses, including regression analysis and mediation analysis, were conducted to examine the relationships between these variables. The results of the study are expected to provide insightful implications for SMEs in Thailand, demonstrating how service quality directly influences customer satisfaction and how this relationship is further shaped by the customers' perception of price. This research not only contributes to the academic understanding of these dynamics but also offers practical guidance for SMEs in optimizing their service delivery and pricing strategies to enhance customer satisfaction.

Dynamic Capabilities and Firm Performance: Moderating Effect of Environmental Dynamism

This paper, therefore, conducts much detail with regard to the moderating role of environmental dynamism between dynamic capabilities and firm performance, with special reference to Small and Medium Enterprises (SMEs) of Pakistan. The conceptual framework leans on the proposition by Teece, Pisano, and Shuen (1997) that dynamic capabilities allow reconfiguration of resources for the changing market demand and hence the source of competitive advantage to the firm. It is theoretically possible that empirical studies on the moderating effect of environmental dynamism are possible, and still scarce within this domain—an even more rare context in the case of Pakistani SMEs. Thereby, this research intends to fill that gap by empirically examining how the influence of environmental dynamism plays out at the dynamic capabilities-performance nexus in Pakistani SMEs—a sector pivotal for the economic growth of the nation but also challenged by a unique blend of local business conditions. Understanding how firms can benefit from their dynamic capabilities in relation to their performance in volatile markets has become important within this fast-changing business environment. This paper, therefore, through an intensive review of the literature, traces the development of the dynamic capability theory in highlighting its relevance for firm performance and the critical roles environmental dynamism has played as one of the most emphasized contextual factors in firm performance. Quantitative research design will be used for data collection from a broad base of industries under the SME sector of Pakistan, and it will be collected through cross-sectional surveys to explore the proposed relationships. Findings have revealed an environmental dynamism-relevant moderating effect on the relationship between dynamic capabilities and performance. That is to say, in the most volatile environments, SME performance will be more dependent on dynamic capabilities, and that dependence will imply that the strategic value of the capabilities would become contingent on the level of environmental dynamism. This is congruent with the resource-based view (RBV) theory of strategy: the strategic value of resources and capabilities depends on the fit that such resources will have with the external environment. Implications for managers and policymakers, therefore, could be said to be very pragmatic, since SMEs operating within such dynamic markets would have a crying need to develop and deploy dynamic capabilities in a strategic way to effectively steer through the environment. First, these findings contribute to theoretical development in that they draw and support from the dynamic capability view (DCV) and RBV literature in verifying the contingent value of the dynamic capability with respect to environmental dynamism. It not only adds some fertile insights into the dynamic capabilities framework within an emerging market context like Pakistan but also substantiates some interesting facets for SMEs to gain an edge on their competitive advantage within the fast-changing global business environment.

Expounding the Environment of Small and Medium Enterprises (SMEs): A Qualitative Study Conducted in Pakistan

The aim of this study is to expound the environment of SMEs by way of identifying, ranking and classifying factors that affect growth of SMEs. The overall design of the study comprises of review of literature, data collection from primary sources and application of modeling techniques. This is a qualitative study that comprises of literature review along with experts’ opinion for exploring environmental factors affecting growth of SMEs. The experts are selected on the basis of non-probability based purposive sampling and data is collected by face to face interview through a questionnaire. The factors are ranked in different levels of importance using Interpretive Structural Model (ISM) which later on are classified in independent, dependent, autonomous and linkage using MICMAC. The results of literature review and experts’ opinion show that there are fifteen important factors that are critical. The results of ISM show that the least critical factors occupying Level I includes ‘age of enterprise’, ‘experience of owner’ and ‘education of owner’, whereas, ‘trade internationalization’ is the most critical factor occupying Level IX. Remaining eleven factors are with effects that range on the continuum of moderate to severe moderate occupying middle position of the model. The results of MICMAC reveal that trade internationalization is categorized as the important independent factor along with seven other factors. Six factors are categorized as dependent factors. Only one factor is classified as autonomous, and as such no factor is categorized in linkage. This is a seminal research study that contributes to the literature by providing new firsthand information on the phenomenon under study by using novel mathematical modeling techniques. This study is helpful to all stakeholders including Government, industry, researchers and academicians in prioritizing the critical factors for revolutionary growth of SME sector.

Investigating the Impact of Business Development Fund Ltd's Credit Guarantee on Small and Medium Enterprises in Rwanda: A Comprehensive Analysis

In Rwanda, the Business Development Fund Ltd aims to support the initiation, growth, and success of Small and Medium Enterprises (SMEs) by providing credit guarantees, facilitating their access to bank financing. This study explores the efficacy of the credit guarantee fund in stimulating SME growth in Rwanda, particularly within Kigali City. It delves into the accessibility of the BDF Ltd credit guarantee fund for SMEs, assesses its correlation with employment generation, evaluates its influence on SMEs' sales turnover, and analyzes its responsiveness to borrower demands from 2011 to 2013. Employing an explanatory research approach, this study employs a mixed-methods approach, combining qualitative and quantitative methodologies for data collection. A sample of 98 units was selected, utilizing interviews for primary data and document analysis for secondary data. Statistical analysis, including SPSS and tools like Kendall's tau correlation and regression analyses, was employed to scrutinize the relationship between various variables. The findings indicate significant hurdles faced by SMEs in Kigali in accessing the fund, with 95.2% of respondents citing challenges such as prolonged application processes, increased collateral requirements, low bank utilization of the fund, additional bank prerequisites, and perceived inequities. The research reveals a noteworthy positive relationship (r = .37, p <.05, one-tailed) between the guaranteed amount for SMEs in Kigali and employment creation, where an estimated 3,333,333 RWF guaranteed amount predicts the creation of an additional job. Moreover, the study underscores that credit guarantees contribute positively to the beneficiaries' sales turnover and notes that the BDF Ltd has effectively met borrower demands during the 2011-2013 period. This research presents a comprehensive analysis of the impact of credit guarantee funds on SME growth in Rwanda, shedding light on challenges faced by SMEs in accessing these funds and highlighting the fund's substantial role in fostering employment and bolstering sales turnover within the SME sector. Keywords: Business Development Fund Ltd, SMEs, Credit guarantee fund, Kendall's tau correlation, Banks.

Analisis Faktor-Faktor yang Mempengaruhi Praktik Akuntansi Manajemen pada Usaha Kecil dan Menengah di Kota Padang

Small and medium enterprises (SMEs) create a major contribution to the country's economic growth. The development of SMEs can be encouraged by the use of management accounting practices (MAPs) as a basis for decision making in order that their business performances become effective and efficient in achieving goals. However, a few research has been done on MAPs in SMEs in developing countries. This study aims to show what contingency factors (company size, owner participation, market competition, and information technology) affect the implementation of MAPs in the SMEs sector in one of the SMEs central cities in developing country (Indonesia). namely the city of Padang. This study employs a quantitative descriptive survey method, by distributing questionnaires. A sample of 96 respondents was determined by purposive sampling technique. The respondents of the study are owners or staff/managers of SMEs accounting/finance. Multiple regression analysis with SPSS 29 is used to analyze the data. The results of the study conclude that the level of company size, owner participation, market competition, and information technology has a positive and significant effect on the implementation of MAPs by SMEs. This research is expected to be a reference for further research in the field of management accounting and corporate governance in SMEs.

Empowering Small-Medium Enterprises for Developing Local Business: Case Study in Sub-district of Karanggede, Regency of Boyolali

The study aims to explain the empowerment of small and medium enterprises (SMEs) as an effort to increase the sustainable local economy. In developing countries, SMEs play an essential role as the backbone of regional income, which significantly contributes to the national economy. Unfortunately, the SME sector faces various problems stemming from external and internal factors. The SME empowerment program is an effective alternative solution in developing the capacity of SMEs to maintain business continuity and develop innovative products. This research uses a qualitative approach with a case study method. Participant observation, in-depth interviews, and literature review were used to explore data in detail and depth. A purposive sampling technique was used to determine relevant and appropriate informants with the research topic. The study results show that 1) innovation is essential in maintaining SME business continuity. 2) The SME empowerment program aims to build the capacity of SMEs to increase their innovation. In this case, human resources and organizational capacity are carried out by derivative educational activities and workshops, training, and the use of ICT to develop organizational governance. Some of the proposed policy recommendations, the desire for the SME empowerment program needs to be on the agenda of the regional government's annual activities, the application of SME product protection policies must be carried out, and the use of SME products in various public and government events needs to be carried out.

Understanding the Concept of SMEs in Driving Economic Growth and Development in Bangladesh

Small and Medium Enterprises (SMEs) play a vital role in Bangladesh's economy and have been recognized as a significant catalyst for poverty reduction programs and economic growth. Therefore, it is essential to have a comprehensive understanding of the concept of SMEs and their role in driving economic growth and development. Consequently, this study endeavors to explore the definition of SMEs, their present status, and their contributions to the development of Bangladesh’s economy. Using a quantitative research method, the study performed a descriptive statistics analysis on data gathered from diverse sources, including academic, governmental, and private institutions, as well as pertinent literature from researchers, academics, and scholars. The study has found that the definition of SMEs in Bangladesh has undergone changes over time. The study findings also revealed that the growth of SMEs has had a significant impact on various economic indices in Bangladesh, contributing positively to the country's economic development. Hence, the findings of this study can provide valuable insights to readers seeking a comprehensive understanding of SMEs in the context of Bangladesh. Moreover, policymakers can utilize these findings to introduce well-suited policies and initiatives that will foster the future development of the SME sector.

An empirical investigation on the deployment of operational excellence in SMEs

PurposeThis study investigates the quantitative aspect of the various strains of operational excellence (OE) and competitive-potential (CP) in the SME sector. It has five steps, i.e., identifying the key performance constructs of OE and their hypothesized relationship pattern from literature, validating these constructs through factor analysis, formalizing their empirical relationships by structural-equation-modeling (SEM), path analysis of performance constructs with the empirical results, and lastly proposing a framework for OE deployment in SMEs.Design/methodology/approachData for the deployment scores of operational excellence procedures (OEPs) were collected through a structured questionnaire survey. Nine hundred participants from a stratified random sample were approached for the survey, and 473 responses were received. Sample stratification was based on Gender, Education, Experience, Position, Department and Industry. Respondents had 5–30 years of experience managing manufacturing operations, holding the manager position and above.FindingsThe path analysis of the structural model provides unique insights into OE's practical aspects in SMEs (small and medium enterprises). For example, Contractual-conformance and Process-efficiency play pivotal roles as both have a significant positive impact on CP. Supplier efficacy, Consistency and Product-excellence do not improve CP unless mediated by Contractual-conformance or Process-efficiency.Research limitations/implicationsThe study provides important implications for academia, policymakers and managers. The study identifies and validates the operational excellence key performance practices and proposes a framework for manufacturing organizations. SME managers can follow the framework to develop effective operational excellence strategies to help them achieve their organizational goals. Additionally, the study emphasizes the need for continuous culture in SMEs, which will help to support operational excellence deployment. Overall, the implications presented in the study will help SMEs to enhance their competitiveness and operational performance.Originality/valueThe study explores the empirical investigation of the operational excellence deployment in SMEs. The study uses a mixed method approach for research design, including qualitative and quantitative approaches, and uses SEM to test the proposed framework. Validation of OE's six key performance constructs and establishing their empirical relation is an attempt to advance the Operations excellence theory. Unlike large enterprises, SMEs demonstrate an incohesive response to the practices pertaining to Supplier efficacy, Consistency and Product-excellence. This unique response pattern requires special treatment, which is incorporated into the proposed framework.