Small And Medium-sized Enterprises Sector Research Articles

The Quality Initiative of E-Learning in Germany (QEG)- Management for Quality and Standards in E-Learning

Quality in E-Learning is a critical success factor that is not easy to determine and achieve. In this paper, we aim to describe the challenges in quality development and show as solution approach, an innovative process management for planning, production and application of e-learning and the importance of quality standards. We will focus especially on small and medium-sized enterprises (SMEs), because in the SME sector, the special optimization potential is what the introduction of explicit quality strategies concerns. This paper illustrates at first the problematic and defines its quality development in education and training. Subsequently, appropriate tools and aids, used by both providers and users, will be demonstrated. The focus will be on quality standards and instruments for their application, which will be developed by the Quality Initiative E-Learning in Germany. In particular, the reference process model of PAS 1032-1 and the subsequent constructive first standard for quality management in education and training (ISO/IEC 19796-1) and the type of Quality Management Support Systems (QSS) are explained.

Corporate governance structure and firm performance in small and medium-sized enterprises (SMEs) in Sri Lanka: A path to access the credit

The purpose of this study is to analyse how the adoption of corporate governance structures affects the performance of SMEs in Sri Lanka. For this purpose, we examine the effect of board composition, board size, board and staff skill levels, board leadership (duality), and family ownership on firm performance. To obtain unbiased estimators for the effects of the independent variables, contextual factors such as firm age, firm size, and debt ratio are included as controls for corporate governance structure and performance relationships. Panel regression analysis is used to estimate the relationship between corporate governance and performance. The results show that all measures including board composition, board size, board and staff skill levels, board leadership (duality), and family ownership have significantly positive impacts on profitability. Corporate governance can greatly assist the SME sector by infusing better management practices. It is also clear that corporate governance structures influence the performance of SMEs in Sri Lanka. The finding also shows the implications of SMEs gaining access to finance as a result of adopting a good governance system.

The effect of return migration driven social capital on SME internationalisation: a comparative case study of IT sector entrepreneurs in Central and Eastern Europe

Transition to a market-based economic structure in the post-communist countries of the Central and Eastern Europe (CEE) region since the early 1990s has been accompanied by intense IT-driven technological change. Internationalisation opportunities have emerged for IT sector small and medium sized enterprises (SMEs) based on the region’s strong possession of technical skills. However, while enhanced SME internationalisation is desirable in policy terms, the current socio-economic transitional context of the region is not compatible with a highly competitive global business environment. While transition has facilitated outward migration, return migrants who acquire social capital abroad and establish businesses upon return home may positively influence entrepreneurship, organisational human capital and SME internationalisation in the CEE region. This chain of phenomena remains relatively unresearched in a CEE context, hence this article presents an initial attempt to address it. A process-oriented qualitative case study approach is used to compare the experience of three IT sector entrepreneurs in Hungary who previously worked and studied abroad. Primarily, the acquisition of social capital from abroad is crucial for re-configuration of organisational human capital at home in order to drive ‘born-global’ SME internationalisation. This study therefore provides a basis for further empirical investigation of the overall transformative effect of individual return migrant entrepreneurs upon organisational human capital re-configuration and ensuing SME internationalisation. Additionally, policy suggestions are derived for development of international entrepreneur exchange programmes to enhance social capital development and human capital re-configuration in local innovative SME sectors.

An Overview of Small and Medium-Sized Banking Development in Bosnia and Herzegovina

Abstract: The purpose of this paper is to investigate the level of SME banking development in Bosnia and Herzegovina (BH). By using a structured questionnaire, the authors discuss perceptions of the banking sector representatives in BH regarding SME banking and their future plans for the management of credit risk associated with financing the SME sector. One of the main findings of this research is that the SME sector is becoming a strategic sector for BH banks and banks are willing to increase their involvement with SME clients. Authors also present results on current level of banks’ exposure to SMEs, types of financial services offered to SME’s clients by BH banks, drivers of banks’ involvement with SMEs, obstacles to further development of banks’ involvement with SMEs. Based on the banks’ responses and results of research conducted, suggestions to policy makers are given, such as tax reforms, interest rate subventions to SMEs, improvement of judiciary, simplifying administrative procedures. Also, some recommendations are given to banks, such as the need for better understanding the requirements of SME clients providing them more personal approach and creating a partnership, as well as lobbying the government bodies to change regulations governing SME sector. Keywords: Financial system; Small and medium-sized enterprises (SMEs); SME banking; Comparative experiences; Bosnia and Herzegovina (BH)

Knowledge Management in the Project Life Cycle - Initial Research on Polish Smes

Abstract Contemporary organizations run their activities in an environment, which might be defined as fully uncertain and turbulent. Due to variations that occur in the surrounding environment, an increased attention of management practitioners and theoreticians is paid to new management concepts frequently in an integrated version. The authors express a deep belief that consolidation of approaches to project management and knowledge management constitutes a response to challenge for modern organizations. Research into the issue was based on an attempt to determine significance of the knowledge management issue in a life of projects performed by Polish small and medium-sized enterprises (SMEs). Systemizing of desired knowledge management results in a project, from the point of view of its crucial success factors, is essentially substantiated in providing success of projects performed. Preliminary research included SMEs in construction engineering industry. The enterprises perform project- driven orders or apply a project approach in economic activities that they execute. Research conducted by the authors so far, implies, that the SME sector is characterized by a particularly low efficiency in project management. Hypothetic assumptions indicate that one of the main reasons of reaching an unsatisfactory level of project proficiency shaped mainly by processes of synchronizing and coordination of project activities, is an insufficient level of development of social, organization and technological systems and methods of capitalization, as well as transmission of useful project management knowledge. Essential function is performed by a group of selected respondents - 25 enterprises from the group of SMEs, including 5 micro enterprises, 12 small enterprises, and 8 medium-sized enterprises. Analyses performed so far, take into consideration the economic situation of SMEs in Poland.

Problems of regulations for sme in poland – institutional and cultural context

This article is dedicated to institutional and cultural reasons of a deep gap between the expected quality of regulations by small and medium-sized enterprises (SMEs), and the very poor evaluation of effective legislations. The study is based on a theoretical review of the available reports, surveys, publications and practical experience of authors. It recognizes the necessity for a radical restructuring the process of creating new regulations. The key conclusion indicates the need to change the approach to legislation procedure by the SME sector itself. The paper argues that companies must exit current “dormant perception” about regulations. Without the active attitudes of the main recipients of the regulations it is impossible to increase the quality of law- -making in Poland. The present mechanism determining the regulatory process keeps insufficient system, thereby producing defective legislation, not following the changes in highly competitive markets and hampering the process of the development of companies and the Polish economy. Potential initiatives to achieve a breakthrough of existing barriers for better regulations are presented.

Training Services in Small and Medium-sized Enterprises: Evidence from Poland

In the knowledge-based economy knowledge and skills are becoming more and more significant for the success of companies. This applies also to firms from small and medium-sized enterprises (SMEs) sector. As large companies in many cases posses special divisions devoted to trainings, they normally have no problems with updating the knowledge and skills of their employees. The situation is different with regard to SMEs, which often have no resources and abilities to train their employees. In the article, the following aspects are examined: 1.What are the differences in demand for training services among firms from the SMEs sector and larger companies? 2. What are the determinants of making the decision about using particular training company and training topic?This article analyses the characteristics of using training services by SMEs from the Pomeranian region of Poland and compares the results with those for larger companies.DOI: http://dx.doi.org/10.5755/j01.ss.84.2.7492

Commitment, Communication, and Leadership Determine the Leader: A Qualitative Analysis of Businessperson Characteristics Practiced by SME and Family Business Directors

This article outlines the details of an empirical study into the perceptions of small and medium-sized enterprise (SME) directors regarding the concepts of communication and commitment to leadership style and the interpretation of these concepts by way of depth interviews. The commitment by SME directors is represented by the themes of emotional commitment, visibility, financial bond, and personality traits. The communication by SME directors is represented by the themes of empathy, type of information, reaction and personality of the communication. The concept of leadership in the SME sector is typically closely associated to the charismatic leadership and the theory of the inclusive leadership (IL) style. The IL is a representation and use of all of the represented leadership styles depends on a situation. This study can be described as an exploratory study, consisting of qualitative in-depth interviews that were conducted with 19 directors of SMEs in the Netherlands and a qualitative matrix method was utilised.

When moving information online diminishes change: advisory services to SMEs

Improving the performance of private sector small and medium sized enterprises (SMEs) in a cost effective manner is a major concern for government. Governments have saved costs by moving information online rather than through more expensive face-to-face exchanges between advisers and clients. Building on previous work that distinguished between types of advice, this article evaluates whether these changes to delivery mechanisms affect the type of advice received. Using a multinomial logit model of 1334 cases of business advice to small firms collected in England, the study found that advice to improve capabilities was taken by smaller firms who were less likely to have limited liability or undertake business planning. SMEs sought word-of-mouth referrals before taking internal, capability-enhancing advice. This is also the case when that advice was part of a wider package of assistance involving both internal and external aspects. Only when firms took advice that used extant capabilities did they rely on the Internet. Therefore, when the Internet is privileged over face-to-face advice the changes made by each recipient of advice are likely to diminish causing less impact from advice within the economy. It implies that fewer firms will adopt the sorts of management practices that would improve their productivity.

Small & Medium Enterprise Assessment in Czech Republic & Russia Using Marketing Analytics Methodology

This paper aims to focus on the determinants influencing the internationalization of small and medium-sized enterprises (SMEs) in Czech Republic and Russia. The objective is to investigate and evaluate the business environment and, then, examine the importance of developing and promoting entrepreneurship to allow SMEs in Czech & Russia to develop a competitive position in the international marketplace. An overview of the current economic situation facing SMEs in CZ & RU is provided. Then the factors necessary for the expansion of the business will be discussed, along with the challenges of overcoming the resource gaps to be identified. We have conducted empirical surveys along with the use of SPSS statistical tools to predict the potential of revenue growth in SME sector. Information is provided concerning the current situation for SMEs in CZ & RU and the challenges encountered as they face a business environment that is becoming more competitive. We also found that SMEs are increasingly more integrated into the global economy and not limited to regional/international activities. Quantitative analysis shows that there is significant potential for SMEs for the next couple of years despite the economic uncertainty. This paper integrates entrepreneurship, and the resource-based internationalization of SMEs in Czech Republic & Russia, specifically focusing on the use of technology.

Small & Medium Enterprise Assessment in Czech Republic & Russia Using Marketing Analytics Methodology

This paper aims to focus on the determinants influencing the internationalization of small and medium-sized enterprises (SMEs) in Czech Republic and Russia. The objective is to investigate and evaluate the business environment and, then, examine the importance of developing and promoting entrepreneurship to allow SMEs in Czech & Russia to develop a competitive position in the international marketplace. An overview of the current economic situation facing SMEs in CZ & RU is provided. Then the factors necessary for the expansion of the business will be discussed, along with the challenges of overcoming the resource gaps to be identified. We have conducted empirical surveys along with the use of SPSS statistical tools to predict the potential of revenue growth in SME sector. Information is provided concerning the current situation for SMEs in CZ & RU and the challenges encountered as they face a business environment that is becoming more competitive. We also found that SMEs are increasingly more integrated into the global economy and not limited to regional/international activities. Quantitative analysis shows that there is significant potential for SMEs for the next couple of years despite the economic uncertainty. This paper integrates entrepreneurship, and the resource-based internationalization of SMEs in Czech Republic & Russia, specifically focusing on the use of technology.

E-commerce trading activity and the SME sector: an FSB perspective

Purpose – This study aims to examine e-commerce within UK small and medium sized enterprises (SMEs). More specifically, it seeks to explore associations between e-commerce and internal and external antecedents including trading behaviour, owner/manager characteristics, innovation, public sector involvement, business advice and finance sources. Design/methodology/approach – An 8,500+ sample derived from the 2008 UK Federation of Small Businesses survey was utilised. An OLS regression equation was generated where the percentage of sales made using e-commerce constituted the dependent variable. Independent variables were constructed for several sets of factors including innovation, business advice and sources of finance, as well as a range of owner and SME typology variables. Findings – The results suggest that e-commerce is more strongly apparent in SMEs started from scratch and where they were involved in basic or high knowledge services or the tourist trade. SMEs undertaking e-commerce were also associated with innovation in the form of copyright, as well as public procurement with local authorities and the university sector. Specific business advice in the form of capacity, family and suppliers was also associated with e-commerce trading. Research limitations/implications – These results have implications for SMEs and public sector stakeholders. SMEs must recognise the importance of several potential antecedents such as intellectual property rights, specific business advice and finance to encourage e-commerce. Moreover, it was apparent that certain SME characteristics, namely locality and trading behaviour, were associated with effective e-commerce. Originality/value – This study will be of value to academia, SMEs and key public sector stakeholders in the formulation of policy for ICT development.

Barriers to increasing energy efficiency: evidence from small-and medium-sized enterprises in China

Abstract This paper analyzes financial, informational and organizational barriers to energy efficiency investments for small-and medium-sized enterprises (SMEs) in China. Its findings are based on a survey of 480 SMEs in Zhejiang province, and complemented by semi-structured interviews with enterprises contained in the survey sample. Responses reveal that only a minority of SMEs in China actively perform energy saving activities at a significant level. The survey data suggest, further, that informational barriers are the core bottleneck inhibiting energy efficiency improvements in China's SME sector. Financial and organizational barriers also influence a company's energy saving activities, with interview-based evidence stronger than statistical evidence. The interviews point out three additional barriers to energy saving activities: the role of family ownership structures, lax enforcement of government regulations and the absence of government support as well as a lack of skilled labor. More than 40% of enterprises in the sample declared themselves unaware of energy saving equipment or practices in their respective business area, indicating that there are high transaction costs for SMEs to gather, assess, and apply information about energy saving potentials and relevant technologies. One policy implication of the study is that the Chinese government could play a more active role in fostering the dissemination of energy-efficiency related information in the SME sector.

Market Orientation, Government Regulation, Competitive Advantage and Internationalization of SMEs: A Study in Malaysia

Small and medium-sized enterprises (SMEs) make remarkable contributions to the economic growth of developing countries. As a newly industrialized country, the Malaysian economy predominantly depends on the SME sector. However, this study seeks to redress this by reporting the key drivers influencing the internationalization process of SMEs such as market orientation, government regulation and competitive advantage on internationalization of manufacturing SMEs in Malaysia. To empirically test those factors, primary data was gathered using the survey questionnaire method. The survey instrument was distributed to all manufacturing SMEs involved in exporting which are located in the Klang Valley of Malaysia and totally 257 questionnaires were received (FMM, 2012). The findings indicate the significant role of market orientation, government regulation and competitive advantage in their process of internationalization. Furthermore, the study has added to body of knowledge by introducing competitive advantage as a mediating variable between market orientation and government regulation with internationalization of manufacturing SMEs in Malaysia. The results of this research could help practitioners and managers of SMEs in the manufacturing sector to be in a better position to improve their internationalization efforts.

The Impact of HRM Practices on Supply Chain Management Success in SME

Management practices are being carried out by most of the small and medium sized enterprises (SME) which substantially switched to sophisticated manner. This study aims to determine the relationship between human resource management (HRM) and supply chain management (SCM) in SME. The data from 195 manufacturing and service sectors SME were collected. The Pearson's correlation and multiple regression were employed to examine the relationship and measure the overall impact of IV on DV respectively. This study found that SME performed moderate level of HRM and SCM practices and there is a correlation between HRM practices that proactively contributes in supply chain success. Lastly, training contributed greater to SCM success as compared to other HRM factors. Results suggest that SCM success is activated by HRM practices. SME owners/managers should focus on enhancing the SCM success by implementing sophisticated HRM practices. This integration will allow mapping unique strategies to gain an edge over competitors. Appropriate approaches should be considered at national level to boost the national economy through SME sector.

Innovation in family and non-family SMEs: an exploratory analysis

This study provides an exploratory analysis of differences between family and non-family firms in innovation investment, product and process innovation outcomes, and labor productivity. Using data from the Community Innovation Survey on 2,087 German small- and medium-sized enterprises (SMEs), we observe significant disparities at each stage of the innovation process. Whereas family SMEs have a higher propensity to invest in innovation at all, conditional on investing in innovation, these companies do so less intensively than their non-family counterparts. Family SMEs further tend to outperform non-family SMEs in terms of process innovation outcomes when controlling for innovation investment. Given the level of product and process innovation, however, family SMEs underperform regarding labor productivity in comparison to non-family SMEs. These findings complement previous empirical research by illustrating how the presence of a dominant family relates to innovation inputs and outputs of SMEs in Europe’s largest economy and its innovative SME sector.

The solution-seeking behavior of small Hungarian enterprises between 2006 and 2010

This paper describes the results of an investigation into the finance-related innovative ability of Hungarian micro, small and medium sized enterprises (SMEs) by using two datasets (from 2006 and 2010). The author explored SMEs’ levels of openness to new financial solutions and identified features which influence their innovative solution-seeking behavior. Additionally, changes in innovation between 2006 and 2010 were analyzed according to the SME sector and whether there is a correlation between having an active solution seeking attitude and business performance was examined. The findings show that shared/multiple ownership in businesses (having interests in different enterprises simultaneously) has a significant positive effect on flexibility and innovative ability. However, the size of the business, industrial sector, type of ownership and market of the SME also have some effect. Furthermore, the hypothesis that an active solution-seeking attitude increases after-tax performance per employee was confirmed.

Perspectives of SMEs on knowledge sharing

PurposeThe purpose of this paper is to determine the factors (trust, formalization, knowledge technology, empowering leadership, effective reward systems and motivation) that influence knowledge sharing among the small and medium‐sized enterprises (SMEs) in Malaysia, in order to meet the challenges of today's dynamic business environment.Design/methodology/approachSystematic sampling was used to select 680 manufacturing sector participants from the SME Corporation Malaysia business directory to participate in the survey, out of which 250 valid responses were returned, yielding a response rate of 36.75 percent. Factor analysis and reliability analysis were conducted before testing the seven hypotheses formulated for this study using regression analysis.FindingsThe results indicate that knowledge technology, motivation, effective reward systems, trust and empowering leadership explain up to 60.2 percent of the variance observed in attitude towards knowledge sharing. It was also found that attitude towards knowledge sharing influences intention to share knowledge with anR2of 0.387.Research limitations/implicationsThe sample for this study is based on manufacturing sector SMEs only and it is suggested that future studies enlarge the scope to include the SMEs in the service sector.Practical implicationsIn order to encourage knowledge sharing within SMEs, firms need to ensure that both the technical (knowledge technology) and social (motivation, effective reward systems, trust and empowering leadership) elements are addressed. Hence, a socio‐technical approach needs to be adopted to ensure the effectiveness of the knowledge management strategies formulated by SMEs.Originality/valueThis study highlights the importance of six factors in encouraging knowledge sharing intentions in SMEs operating within the manufacturing sector and confirms that knowledge technology, which encompasses a range of information and communication technologies does play a pivotal rolevis‐à‐visensuring that SMEs have favorable attitudes towards knowledge sharing for their sustained competitive advantage.

Do smart grids offer a new incentive for SME carbon reduction?

Abstract Collectively small and medium sized enterprises (SMEs) are significant energy users although many are unregulated by existing policies due to their low carbon emissions. Carbon reduction is often not a priority but smart grids may create a new opportunity. A smart grid will give electricity suppliers a picture of real-time energy flows and the opportunity for consumers to receive financial incentives for engaging in demand side management. In addition to creating incentives for local carbon reduction, engaging SMEs with smart grids has potential for contributing to wider grid decarbonisation. Modelling of buildings, business activities and technology solutions is needed to identify opportunities for carbon reduction. The diversity of the SME sector complicates strategy development. SMEs are active in almost every business area and occupy the full range of property types. This paper reviews previous modelling work, exposing valuable data on floor space and energy consumption associated with different business activities. Limitations are seen with the age of this data and an inability to distinguish SME energy use. By modelling SME energy use, electrical loads are identified which could be shifted on demand, in a smart network. Initial analysis of consumption, not constrained by existing policies, identifies heating and cooling in retail and commercial offices as having potential for demand response. Hot water in hotel and catering and retail sectors may also be significant because of the energy storage potential. Areas to consider for energy efficiency schemes are also indicated.

Service Pyramid Concept of Knowledge Intensive Business Services in the Small and Medium Sized Enterprises Sector

The activity of service companies is more complex today than before the use of Information and Communication Technology (ICT) became widespread in business. Fewer service companies can be found on the market based solely on physical customer interaction; however, they have been replaced with standardized and automated services. This structural change can be observed particularly among Knowledge Intensive Business Services (KIBS) companies where the use of ICT is not simply a market requirement, but a competition tool, as well. Without the application of any ICT instrument, a KIBS company could not meet market expectations, and furthermore, business developments are mainly ICT-based. On the other hand, companies need to develop their businesses more and more, as KIBS companies which are not able to differentiate themselves as trustworthy on the business services market will disappear. ‘Just another business service company’ cannot really sell today. This is applicable to a greater extent to Small and Medium Sized Enterprises (SME), where ICT has opened market opportunities that have never existed for them before. The aim of this paper is to highlight the new features of KIBS business activities in the SME sector and the related research questions.