Sustainability Of Small And Medium Enterprises Research Articles

Key strategies, resources, and capabilities for implementing circular economy in industrial small and medium enterprises

AbstractSmall and medium enterprises (SMEs) are key actors in the implementation of the circular economy (CE) concept as a basis for creating sustainable societies. Thus, the main objective of this study is to identify key strategies and resources that may favor CE implementation in SMEs. These key strategies should encourage SMEs to develop eco‐innovations to gain competitive advantage and create and capture value that is coherent with nature. A mixed‐method approach that consisted of a literature review and a focus group for gathering qualitative data was used. This focus group was made up of experts such as researchers and practitioners from universities, sustainable SMEs, and consultancy firms in Spain. A set of strategies and internal and external factors were identified to help SMEs to implement the CE. Finally, some useful dynamic capabilities for implementing the CE in business performance were identified.

Resource and Information Access for SME Sustainability in the Era of IR 4.0: The Mediating and Moderating Roles of Innovation Capability and Management Commitment

In the era of industrial revolution 4.0 (IR 4.0), sustainability has been a serious challenge of contemporary small and medium enterprises (SMEs). Using Natural Resource-Based-View (NRBV), the current paper examines the moderated mediation model of the role of information access in the sustainability of SMEs, through the mediating role of access to resource and innovation capability in the relationship between information access and sustainability, and the moderating role of management commitment in the relationship between innovation capability and SME sustainability. This paper gathered data from 222 SMEs in Pakistan. The study used a purposive sampling technique to distribute the survey questionnaire. Smart-PLS software was used to analyze the data. The study finding indicates that access to information affects both sustainability and innovation capability. Moreover, access to resources affects innovation capability, though it did not affect SME sustainability. Furthermore, innovation capability mediates the relationship between access to resources, access to information, and SME sustainability. Additionally, management commitment moderates the relationship between access to information and innovation capability; however, it does not moderate the relationship between access to resources and innovation capability. Practical, theoretical, and methodological implications are discussed in the study.

The Hypothesis of a Non Threatning Finance for a Sustainable Smes Development in EU

This paper aims to address the hypothesis of the expansion of Islamic Finance rhetoric to support the development of SMEs. The analysis focused on the definition of PMES and the problems that limit its function in European societies, especially conventional financial instruments that present a permanent challenge. Taking into account the cultural specificities and legal provisions that characterize the countries of the European Union, the paper tries to present the model of participative finance highlighting the key elements that will allow the exploitation of the potential of halal capital.

A generic balanced scorecard for small and medium manufacturing enterprises in South Africa

Background: Prior research confirmed that the balanced scorecard (BSC) can be used successfully at manufacturing small and medium enterprises (SMEs), to assist with sustainability. South African SMEs have a low survival rate despite being a significant contributor to the local economy with the manufacturing sector in particular hampered by negative growth.Aim: The objective of this study was to develop a BSC for manufacturing SMEs in South Africa with measurable key performance indicators (KPIs).Setting: We conducted a Delphi study with cost accounting specialists in different industries.Methods: The development of the generic BSC was facilitated with a Delphi survey and analytical hierarchy process (AHP).Results: The research presents a generic yet flexible BSC for manufacturing SMEs. A total number of 12 generic and 104 specific KPIs were identified. The results revealed a greater emphasis on the financial and customer perspectives that may be conducive to SME sustainability and success.Conclusion: A generic BSC that can be adapted to specific organisational and industry requirements has the potential to enhance SME sustainability and success.

People Management for Sustainable SMEs

The study identifies people management practices among sustainable SMEs that adopt the Thai philosophy of sufficiency economy. The study adopts multi-data collection methods. 'Grounded theory' is adopted as the approach for data analysis. Emerging people management practices are: 1) identifying core competencies consistent to Thai values; 2) being genuinely concerned for employees; 3) offering life skills training for employees; 4) providing opportunities for employees to suggest ideas and encourage them to take part in decision makings; 5) growing own managers; 6) encouraging employees to contribute to the society and environment. This paper is among the first that explore the relationships between people management practices and corporate sustainability in Thai SMEs and propose theoretical assertions between them for future theory building.

People management for sustainable SMEs

People management for sustainable SMEs

Enhancing sustainable performance through job characteristics via workplace spirituality

PurposeThis paper aims to provide empirical evidence of the associations between perceived job characteristics and workplace spirituality with environmental sustainability within the domain of small- and medium-sized enterprises. This study aims to investigate the influence of perceived job characteristics (job identity, task significance and task variety) on environmental sustainability through workplace spirituality.Design/methodology/approachData are collected from 400 small and medium enterprises (SME) employees working in New Delhi, India, and Islamabad, Pakistan. Response rate in this study is 58 per cent. Structural equation modeling has been used to analyze the data through SmartPLS 3.0 and SPSS version 24.FindingsThe results indicate that perceived job characteristics have significant positive influence over workplace spirituality. It is concluded that workplace spirituality also significantly mediates the relationship between perceived job characteristics and environmental sustainability.Research limitations/implicationsIn the present study, perceived job characteristics have been evaluated to improve environmental sustainability in SMEs from Pakistan and India. Therefore, before generalization in the context of other countries can be made, the results obtained may need some modifications.Practical implicationsThe research concerns the understanding of various job characteristics and environmental sustainability from the viewpoint of employees in SMEs at imparting perceived job characteristics as important factors to meet challenges relevant to environmental sustainability in the dynamic market.Social implicationsThere is anecdotal evidence claiming the pivotal role of job characteristics and workplace spirituality toward the recognition of sustainability in the progressive dynamic market. The results of this study represent the effectiveness of perceived job characteristics for accomplishing social objectives through workplace spirituality.Originality/valueThis study contributes to the field by bringing together the concepts of workplace spirituality with perceived job characteristics and environmental sustainability in the context of Pakistani and Indian SMEs.

Barriers to sustainability for small and medium enterprises in the framework of sustainable development—Literature review

AbstractThe objective of this article is to analyze the barriers faced by small and medium enterprises (SMEs) when implementing initiatives for sustainable development. For this purpose, a search equation was designed, and the 50 highest cited articles from the search results in Scopus between years 2013 and 2017 were reviewed. The selected criteria for the article analysis were article name, article year, country, continent, journal, Scimago Journal Rank, Scimago Quartiles, Affiliated Universities, abstract, and keywords. Among the main results, 175 barriers to sustainability for SMEs were identified. The barriers that appeared most frequently were lack of resources, the high initial capital cost of implementing sustainability measures, and lack of expertise. At the end of the article, a proposal is included which shows the 175 identified barriers, classified by “sector,” “sustainability tool,” and “internal/external” which can aid in new qualitative and quantitative studies of barriers to sustainability in SMEs.

The Impact of Entrepreneurial Resilience on the Success of Small and Medium Enterprises in South Africa

Small and medium enterprises (SMEs) have a significant role to play in a country’s sustainable development. The measures of a country’s sustainable development include economic and social factors. The sustainability of small and medium enterprises is vital to job creation, poverty reduction, and sustainable economic growth. The high failure rate of SMEs negatively impacts on South Africa’s sustainable development. The purpose of the study was to investigate the relationship between entrepreneurial resilience and the success of SMEs in South Africa. Success was measured using both organisational and individual criteria. The Connor–Davidson Resilience Scale 10 (CD-RISC 10) was used to measure entrepreneurial resilience. Data was collected from 170 small business owners through the survey method. The self-administered questionnaire method was used to collect data from the participants. Convenience and snowball methods were used for sampling. Descriptive statistics, confirmatory factor analysis, correlation, and regression analysis were used for data analysis. Cronbach’s alpha was used as a measure of reliability. The results indicated that there is a significant positive relationship between entrepreneurial resilience and individual and organisational success. Ways to enhance the resilience of small business owners in order to ensure the sustainability of SMEs are suggested.

Green human resource management implication on increasing productivity of small and medium enterprises

Small And Medium Enterprises (SMEs) is an economic sector that has an important role for economic growth in Indonesia. The level of employment in SMEs, resulting in the role of labor is very influential for SMEs. On the other hand, environmental issues have become an significant factor for the development of SMEs. Therefore, to ensure the sustainability of the business, it is necessary to introduce environmental and social aspects within the framework of the business. Environmental management at the operational processes of business (SMEs), has a positive influence on the sustainability of SMEs in the short term and long term. Green human resource management (Green HRM) is one tool that can be used to manage labor SMEs involving environmental aspects. This study aims to determine the implementation of green HRM in SMEs. The method used is observation and interviews conducted in three SMEs in Sidoarjo. Results showed that SMEs owners do not understand the implementation of green HRM indicated that the working patterns of employees who do not pay attention to the environment.

Analisis Sektor Usaha Kecil & Menengah Menjadi Model Kewirausahaan Sosial Berbasis Ekonomi Kreatif

<p>Social Entrepreneurship is a concept of entrepreneurship (entrepreneurship) that prioritizes social<br />activities by empowering the surrounding community. Small and Medium Enterprises (SMEs) can be<br />involved to be part of Social-entrepreneurship, to support economic independence of society. To<br />support the sustainability of SMEs as well as a more global reach can be used creative economic<br />approach of each sector conducted SMEs. It aims to sustain SMEs for a long time and become the<br />foundation for the Indonesian economy. The purpose of the research is to conduct SME analysis to be<br />part of social entrepreneuship based on creative economy. Quantitative research methods (descriptive<br />statistics) and qualitative (interactive analysis models), where data collection is done by observation,<br />in-depth interviews, and approach of PRA (Participatory Rural Appraisal). The results show that local<br />governments fully support the existence of SMEs, especially the handicraft sector, by providing<br />facilities to change policies and funding assistance. Some craftsmen already have the concept of ideas<br />and creativity in improving product quality, it is seen from the innovation of products developed.<br />Society, government and community of artisans support the existence of creative economy-based<br />social entrepreneurship in order to support the improvement of the economy. To support the<br />sustainability of creative entrepreneurial based on creative economy requires the involvement of<br />government, entrepreneurs, communities through ongoing assistance with policy support siding with<br />SMEs.</p>

Value and alliance capability and the formation of strategic alliances in SMEs: The impact of customer orientation and resource optimisation

Strategic alliances offer significant opportunities to organisations, including the ability to expand their capabilities and to optimize value. In exploring the question of whether firms with differing value expectations choose to enter strategic alliances with firms of different capabilities, this study adopts a qualitative research approach using five Business to Business (B2B) manufacturing small and medium enterprises (SMEs). This study focuses on improving our understanding of three related questions, first, whether or not they aim to capture or create value from the alliance; second, what is the nature of their capabilities and third, what is the inter-relationship between value and capabilities in SME alliance formation. A qualitative research approach enabled in-depth investigation and facilitated the emergence of relevant themes; customer orientation and resource optimisation. The insights derived from the study should help SMEs in partner selection and alignment thereby increasing chances of alliance success and longevity, and in turn SME sustainability and survival.

The Potential Role of PPPs in Developing a Sustainable SME Sector in Developing Countries: A South African Experience

The introduction of Public-private Partnerships (PPPs) in infrastructure provision has changed the way in which governments around the world now view infrastructure provision. However, the introduction of PPPs to deliver infrastructure has not benefited the broader public. Although SMEs are important for employment creation, inequality and poverty reduction, the participation of SMEs (small and medium enterprises) in PPP projects is very low in developing countries. This is because PPP models in developing countries are developed based on those used in developed economies, and such models ignore the socioeconomic realities facing developing countries. The objective of this study is therefore to demonstrate that PPP projects in developing countries present an opportunity for growing the SME sector and create the needed jobs and contribute to poverty alleviation. The study has found that PPP projects have the potential to develop a sustainable SME sector, as it has found that SMEs do participate in PPP projects; however, their participation is curtailed by a number of challenges such as: lack of access to finance, limited human resources, low technological capabilities, and lack of access to markets. It also found that linking SMEs to PPP projects may address some of these challenges to a certain extent, especially if SMEs provide services to PPP projects during both the implementation and the operational phases of PPP projects. It also found that PPPs have not yet been identified by the South African government as one of the initiatives that can facilitate SME development. Most focus on PPP projects is only on ensuring that they include ownership by previously disadvantaged South Africans. The study recommends that a policy be developed that will incentivise PPP firms to use SMEs in their projects and penalise those PPP firms that fail to comply with the policy imperatives. It went on and found that the different South African government institutional initiatives or frameworks to support SMEs seem to be adequate; however, what is needed is a cohesive approach that links all these initiatives together and ensures that they support one another.

The Potential Role of PPPs in Developing a Sustainable SME Sector in Developing Countries: A South African Experience

The introduction of Public-private Partnerships (PPPs) in infrastructure provision has changed the way in which governments around the world now view infrastructure provision. However, the introduction of PPPs to deliver infrastructure has not benefited the broader public. Although SMEs are important for employment creation, inequality and poverty reduction, the participation of SMEs (small and medium enterprises) in PPP projects is very low in developing countries. This is because PPP models in developing countries are developed based on those used in developed economies, and such models ignore the socioeconomic realities facing developing countries. The objective of this study is therefore to demonstrate that PPP projects in developing countries present an opportunity for growing the SME sector and create the needed jobs and contribute to poverty alleviation. The study has found that PPP projects have the potential to develop a sustainable SME sector, as it has found that SMEs do participate in PPP projects; however, their participation is curtailed by a number of challenges such as: lack of access to finance, limited human resources, low technological capabilities, and lack of access to markets. It also found that linking SMEs to PPP projects may address some of these challenges to a certain extent, especially if SMEs provide services to PPP projects during both the implementation and the operational phases of PPP projects. It also found that PPPs have not yet been identified by the South African government as one of the initiatives that can facilitate SME development. Most focus on PPP projects is only on ensuring that they include ownership by previously disadvantaged South Africans. The study recommends that a policy be developed that will incentivise PPP firms to use SMEs in their projects and penalise those PPP firms that fail to comply with the policy imperatives. It went on and found that the different South African government institutional initiatives or frameworks to support SMEs seem to be adequate; however, what is needed is a cohesive approach that links all these initiatives together and ensures that they support one another.

Factors of Sustainable Firm Performance and the Mediating Role of Strategic Opportunity Recognition: A Conceptual Study

The significant role of Small and Medium Enterprises (SMEs) in economic development has been acknowledged and focused for a very long time. They dominate the business establishment around the world. The current challenging and volatile business landscape has called for greater scrutiny to identify survival toolkit for SMEs, given that SMEs are very much important to the dramatic economic changes. Thus, understanding practices that may damage business success is needed urgently. With this crucial and critical situation, it is the time now to identify an alternative approach to understand practices that lead to business success. The purpose of this study is to concentrate on the influence of strategic entrepreneurship (SE) which is manifested in exploration activities only that in-turn represented by strategic opportunity recognition construct, on sustainable SMEs performance in Malaysia. This paper is an attempt to address this challenge by developing a framework for the assessment of recognizing the important role of SE in efficiently contributing to the achievement of Sustainable Firm Performance.

The microlevel actions undertaken by owner‐managers in improving the sustainability practices of cultural and creative small and medium enterprises: A United Kingdom–Italy comparison

SummaryThis article discusses microlevel actions undertaken by owner‐managers, and how such actions affect stakeholders in enhancing the sustainability of small and medium enterprises (SMEs), the knowledge on which is lacking in the extant literature. The paper, by adopting an inductive analytical approach, draws key insights from the literature on microfoundations and sustainability and evidence from representatives of 5 Cultural and Creative Industry SMEs in Italy and of 5 in the United Kingdom. The findings suggest that owner‐managers play a crucial role when engaging in sustainability activities jointly with employees and other stakeholders, through which individual‐level actions enhance collective organizational‐level sustainability practices. The U.K. and Italian cases highlight 2 contrasting approaches to dealing with sustainability; thus, the paper contributes to the emerging literature on SME microfoundations and sustainability.

Innovation and Knowledge Management as the Catalyst of Small Medium Enterprise’s Performance: A Conceptual Paper

Malaysia is now moving towards becoming a developed nation, targeting on the high-income nation by 2020. In order to execute this intention, Malaysia needs to develop and strengthen the economic growth. Small and Medium Enterprises (SMEs) are acknowledged have a significant role in Malaysian economic growth and expected to contribute 41% of GDP by 2020. However, there are a few factors hinder SMEs to maximize their growth and it has been reported that SMEs contributions to the country’s economy are still comparatively low compared with the contributions of SMEs in many developed and developing countries. Innovation is one of the important factors to remaining competitive in this globalization world. Therefore, SMEs need to focus on innovation activities to increase contribution and remain competitive. Knowledge management is one of the most effective strategies that may help to stimulate innovations and enable innovation activities into the business. Hence, the main aim of this study is to investigate the role of innovation in the relationship between knowledge management practices and SMEs Performance. This study proposed to investigate innovation activities at SMEs manufacturing sector focusing in food and beverages industry. Specifically, innovation types that will be focused in this study are product, process and management innovation. The result hopefully will become an empirical evidence that confirmed innovation is crucial to increase SMEs competitive ability and increase organizational performance. In addition, the result also expectantly prove knowledge management practices have an impact on innovation. Lastly, this study will help Malaysian Government to strategies the policy to overcome difficulties and more importantly in ensuring the sustainability and competitiveness of Malaysian SMEs.

Increasing sustainability in SMEs

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Pressure on businesses to operate in a sustainable manner has never been greater. As general concern for such as environmental welfare accelerates, firms are expected to be more accountable for their actions. Corporate social responsibility must therefore be high on the agenda. Around 90 per cent of companies worldwide can be classified as small and medium enterprises (SMEs). Statistics suggest that up to 70 per cent of global pollution is down to such firms. For many SMEs though, sustainability represents a formidable challenge. Limited finances and other resources are obvious impediments, while lack of knowledge is also commonly cited. Some small companies equate sustainability with high costs and give initiatives a wide berth on that basis. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

A practice-based typology of sustainable SMEs: development of a sustainability compass

Cet article propose une typologie des PME fondée sur leurs comportements en termes de développement durable et de responsabilité sociale (RSE). Cette typologie repose sur la mesure de l’engagement de pratiques durables et du niveau d’orientation entrepreneuriale des PME dans quelque 800 PME françaises et québécoises. Elle prend la forme d’une matrice bidimensionnelle, la « boussole de la durabilité » qui distingue quatre profils d’entreprises. La cohérence de ces profils avec les motivations à l’engagement de pratiques durables déclarées par les dirigeants a été validée. Les intérêts pratiques de cette boussole sont divers. Elle peut être utilisée comme un outil de comparaison pour les PME qui souhaitent comprendre leur profil RSE et les pratiques afférentes qui pourraient le renforcer. Elle peut également aider les décideurs publics à ajuster leurs politiques par une meilleure connaissance de la diversité et des besoins particuliers des PME en matière de RSE et de développement durable.

SMEs Growth in the Czech Republic: Some Macroeconomic Perspectives

Small and medium enterprises (SMEs) are seen as a vehicle for employment generation, wealth creation, economic growth and development in countries that have a sound investment climate. SMEs, account for approximately one-third of GDP, over 50% of the value added, 99% of the share of total registered enterprises, and represent 60% of total employment in the Czech Republic. In the light of this background, the paper explores the influence of some macroeconomic variables on SMEs growth in the Czech Republic for the period 1995–2013. In order to assess the impacts of these critical macroeconomic variables (e.g., rate of unemployment, economic growth, credit provided by the financial sector) on SMEs growth, we employed an econometric technique. Our findings suggest a concave relationship between unemployment and SMEs growth in the Czech Republic. More precisely, it signifies that beyond a turning point, unemployment is likely to slow down SMEs growth in the country. Our results further hint at a positive relationship between economic growth and SMEs growth. However, our empirical estimates showed an insignificant relationship between domestic credit provided by the financial sector and SMEs growth in the country. The government of the Czech Republic should continue to provide an enabling investment climate and support for bolstering a sustainable SMEs development within the country. Similar to the extant literature, we have also implored the Czech government to do more with regard to the provision of easier access and affordable credits/loans to SMEs. We have also called for the reduction of bureaucratic bottlenecks that might have to do with SMEs legislations in the country.