Small And Medium-sized Companies Research Articles

Sustainability related impacts of digitalisation on cooperation in global value chains: An exploratory study comparing companies in China, Brazil and Germany

While digitalisation is reconfiguring global value chains (GVCs), the implications for sustainable development, especially in emerging economies, have not yet been thoroughly explored. In order to design more sustainable GVCs this gap must be addressed. This study examines two implications of digitalisation in value chains: first, how polarisation may lead to inequal development; and secondly, whether digital enhanced transparency can be an enabler of companies’ environmental management systems (EMS). A survey-based approach is used to compare the developments of companies in China, Brazil and Germany and gain insights into countries that approach digital transformations from different starting points. The results indicate that polarisation tendencies on a country level are not as pronounced as experts predicted. Across all countries, less than 10% of companies reported that collaboration processes are being fully digitalised, while partial digitalisation is more common, ranging from 46% in Brazil (n = 116), to 61% in China (n = 441) and 63% in Germany (n = 104). Polarisation tendencies are stronger among small- and medium-sized companies (SMEs) across all countries. As SMEs form the backbone of countries' economies, this should be addressed by global governance. Digital enhanced transparency for EMS is not yet widespread, with only 9% of the German, 3% of the Brazilian and 6% of the Chinese companies integrating production data into their EMS in a fully digital way. The results of this study suggest that the automotive sector would provide a suitable object for future research, as it displays clear differences to other industries.

Developing an analysis tool to identify potentials for mobile, time-flexible work in production: Results from the MofAPro research project.

Mobile, time-flexible work provides advantages for companies and employees. However, those opportunities have so far been used primarily in the administrative sector. In a joint practice-oriented project, the possibilities for flexibilization in the production sector are being investigated. Therefore, practical aids of action are to be developed. In this paper the procedure and first results are shown. To obtain initial indications of the opportunities and limitations of mobile, time-flexible work in the production sector, interviews were conducted with employees of the company project partners. An analysis tool was developed based on the results of the interviews. The development follows an iterative process of practice testing and discussion rounds with the project partners. The preliminary analyses show that small and medium-sized companies (SME) need a practical tool for identifying flexibilization potentials in the production sector. In addition, it has been shown that there are several factors that determine or promote the possibilities of mobile, time-flexible work in the production sector. Those factors are considered in the analysis tool. The structure, contents and application of the analysis tool are presented in this paper. The presented procedure and analysis tool provide valuable implications for practice. It shows practical ways of analyzing flexibilization potentials of companies and individual jobs. This provides a basis for discussions between the employer and employees, works councils, and applicants for the occupation of job positions in the production sector.

Discussion about the strategic direction of a Business cooperation to provide the basis for cross-company talent management in German small and medium-sized companies (SME)

In a panel survey, representatives of small and medium-sized enterprises (SMEs) have stated that Talent Management in SMEs should be improved. After evaluating the available literature, this statement is not surprising, as Talent Management mapped in the organization poses challenges for SMEs. An essential aspect in this context is the limitation of available resources. This article aims to theoretically develop a resource-saving way for preparing a potential successor (manage a talent) for his or her role as a future entrepreneur in SMEs. To achieve this, eleven entrepreneurs derived from the distribution of economic sectors were interviewed. The answers were then evaluated with the help of qualitative content analysis. It was found that the results gained in the interviews confirm the findings from the literature. The fight for employees and the fight for talent has also arrived in SMEs, whereby a differentiation between employees and talents in an exclusive talent management approach (keyword: elite education) did not play a role in the considerations of the interview partners. The participants agree that one must take care of ones’ staff and ones’ talents as a company. Every company has established the existing Human Resources (HR) Management so that the company can work. A deeper examination of HR Management topics in general or in-house Talent Management was largely rudimentary. Most participants are open to business cooperation. An essential factor that would prevent business cooperation is the competition problem and the risk of being worse off. At least one advocate could be found for each basic orientation of the business cooperation developed in the article. The approach of establishing cooperation along the value chain was the most well-received. Even if the results are consistent with the findings from the literature, it is crucial that these research results are based on a small database. Theoretically, several possible strategic orientations for business cooperation could be developed, which have not yet been listed in the overview of cooperation characteristics. Whether these theoretical considerations prove themselves in practice would have to be examined in more detail. The article is suitable for companies who do not have HR- specialists, want to get a quick overview of the topic of Talent Management, seek an approach on how to assess companies according to the factor competition to prepare business cooperation, seek an approach to thinking through a resource-saving development of their talents across companies.

Collaborative liaison tool aimed at small and medium-sized companies in peripheral regions. Validation and adjustment through action- research

This article focuses on the processes of testing a collaborative linkage tool, which is oriented toward strengthening the performance of small and medium-sized companies (SMEs) in peripheral regions. For this purpose, the action research methodology is used. This method allows for verifying the feasibility of applying the developed tool. Simultaneously, its design and improvement could corroborate different moments, stages, and steps of the tool, as well as supporting procedures in different situations. It also analyzes the coexistence of this liaison methodology with pre-existing models and the possibilities of enhancing said models and enriching the change agents involved. Besides, the experiences carried out made it posible to verify the flexibility of the tool and its support procedures. It can be tested also the possibility of application and its relationships with each of the different development agents in peripheral regions. During the action research, some improvements were made to the instruments developed. These adjustments made it possible to reduce the risks inherent in linking actions and to favor synergies to strengthen the business fabric.

스마트 글래스의 LED 배치 및 회로 생성을 위한 CAD시스템

Industrial companies aim to improve their productivity by using the latest technologies such as Big Data, artificial intelligence, and IoT. However, small and medium-sized companies (SMEs) often lag behind with the introduction of new technologies and refrain from automating their production processes. In this regard, SMEs that produce smart glass, the production of which requires advanced technology, often continue to depend on manual production processes. We analyzed the existing production process to determine whether the integration of CAD technologies could be used to improve the productivity. This study was limited specifically to the development of algorithms for placing the LEDs in the glass in correspondence with the designed shape and to automatically generate a circuit for delivering current to the LEDs. The arrangement of the LEDs is designed to minimize the discrete Fréchet distance in consideration of the “local maximum point of curvature” and “kink point,” and the circuit is automatically organized by grouping a certain number of LEDs to supply similar current to the LEDs. Finally, the time required for LED placement and circuit preparation was reduced from 2 hours to 10 minutes.

A3 methodology: going beyond process improvement

PurposeThis technological article deals with a case study to implement an improvement to reduce the machine setup of an industrial process, in addition to the development of people using the A3 methodology for problem-solving.Design/methodology/approachAs a research method, action research was used in a single-case study applied to a motorcycle production company, using the concept of the A3 report for problem-solving as the theoretical basis.FindingsThe implementation of the improvement in the process resulted in a reduction of 70.4% of the preparation time (setup) of the machines, thus eliminating the need to add a third production shift.Research limitations/implicationsIt has been applied to only one company, so it lacks a feasibility check to be implemented in other companies.Practical implicationsRegarding its practical contribution, the authors first consider that the proposed method can also be applied in small and medium-sized companies (SMEs), since the investment in this problem-solving approach is low without necessarily implementing the lean production system that, it is usually complex, time-consuming and requires the allocation of a substantial amount of resources by companies. The second practical contribution of this work is that the proposed A3 problem-solving methodology can serve as a guide for managers to implement or improve different industrial and service processes.Originality/valueIt has been applied to only one company, so it lacks a feasibility check to be implemented in other companies.

Collaboration in Value Constellations for Sustainable Production: The Perspective of Small Technology Solution Providers

The rapid ongoing digital transformation creates new opportunities to generate value but also challenges companies in the manufacturing industry to adapt to the recent changes. Moreover, committing to sustainability is essential to maintain competitive advantages, build a more resilient company, and manage increasing societal demands and regulations. Referred to as a “twin transition”, the digital transformation can positively impact firms’ commitments to environmental sustainability. This paper explores challenges that small technology solution providers face on their path toward developing sustainable production solutions for their manufacturing customers. An empirical study was conducted in an industrial cluster of small and medium-sized companies (SMEs) providing innovative, tailor-made production technology solutions to manufacturing companies. As a result, a collaborative process model was suggested for such SMEs to overcome internal and external barriers to obtaining sustainability, thus better supporting the manufacturing companies, i.e., their customers, to strive towards more sustainable production.

Evaluation of AI-based use cases for enhancing the cyber security defense of small and medium-sized companies (SMEs)

Companies are increasingly facing the challenges of a persistent cyber threat landscape. By means of AI, cyber attacks can be efficiently conducted more successful through offensive AI. As for cyber defense, AI can be also utilized against cyber threats (defensive AI). Due to limited resources, especially in small and medium-sized companies (SMEs), there is a need to deploy more effective defensive cyber security solutions. Precisely, the adaptation of AI-based resilient defenses must be driven forward. Therefore, the aim of this paper is to identify and evaluate AI-related use cases with a high impact potential on the cyber security level, while being applicable to SMEs at the same time. In order to reach the research goal, an extensive literature review of several online catalogs, surveys and online platforms was conducted. In conclusion, seven crucial AI-based security features were outlined that are providing a high impact potential to the security level for SMEs. Afterwards, the results are discussed and set into a broader context. Even though AI-based security solutions are providing a large range of advantages, certain challenges and barriers using AI-related security applications are addressed in the paper as well. A high need for usable state of the art AI based cyber security solution for SMEs was identified.

Organizaciona kultura u MSP - istraživanje menadžera u odnosu na percepcije zaposlenih

Purpose. This paper aims to assess the organizational culture exposed by small and medium-sized companies (SMEs). In other words, we examine the relationship between leadership styles, organizational culture and organizational performance. In order to investigate the role of organizational culture, it is fundamental to analyze the leadership styles in relation to the types of culture, to identify how these are related and well aligned so that they can help the SMEs to be more effective, favoring their innovativeness. Therefore, we like to address the issue of organizational alignment as well, which occurs when employees and leadership are on the same page regarding an organization's purposes and core values. Methodology. Based on a sample of 408 Macedonian managers and employees and using the organizational culture assessment instrument VOX, the key findings show that the dominant culture in Macedonian small and medium-sized businesses is Entrepreneurial Democracy and that all employees share similar perceptions about organizational culture. Contribution/Value. It contributes to the scientific body of knowledge in the context of organizational culture and alignment. The implications of this study will be especially important for the Macedonian SMEs managers and owners in order to gain access to important knowledge of its organizational culture or they need to make improvements to stimulate the innovativeness of their employees to participate in the improvement of company's performance on the one hand and satisfied employees on the other hand. It also provides the readers with an understanding of how to measure organizational culture and its alignment by introducing up-to-date scientific research in the same field.

Corporate Websites and their Multilingual Dissemination. An analysis of Southern Spain Tourism Sector

Information and Communication Technologies provide valuable opportunities for companies to expand their business. In this sense, the availability of a multilingual corporate website can be of great help when it comes to reach international targets at a reduced cost. This is especially relevant in countries with remarkable tourism flows and foreign population, which is the case of Spain. The aim of this paper is to analyze the web presence and the multilingual dissemination of their corporate information of small and medium-sized companies (SMEs) from the tourist sector located in Andalusia (Spain). To meet this objective, a sample of 160 SMEs has been analyzed. A frequency analysis has been carried out as well as decision trees, the latter in order to identify drivers for influencing companies for having a website and its subsequent translation. Results show that, although around 70% of the companies had a corporate website, less than 40% of them translated their content and, if they do it, they mostly offered only one translated version of the webpage.

Cultural Values in Digital Transformation in a Small Company

Researchers and practitioners have found culture to be very important to digital transformation. However, despite the widespread consensus about the importance of culture in successful digital transformations, only a limited number of studies have explicitly focused on the cultural aspects in digital transformation in small and medium-sized companies (SMEs). This research investigates and analyses the important cultural values in digital transformation in a small company operating in the IT industry. The findings of this study are nine organisational values, from which eight values show similarities to the existing research. In contrast, the organisational value entitled “affinity towards the organisation” has been identified as a new organisational value in digital transformation in small companies. The identified cultural values can raise the awareness of organisations’ management planning or currently engaged in a digital transformation and help organisations recognise cultural values that can contribute to digital transformation initiatives’ success or failure.

상장중소기업의 강화된 내부회계관리제도 모범규준 적용이 자기자본비용에 미치는 영향

Listed small and medium-sized companies (SMEs), when applying the standards (Standards) for internal accounting control system (IACS), can apply a relaxed Standards unlike large listed companies. This study analyzes the effect of SMEs’ applying the Standards applied to large companies (applying of reinforced Standards) on the cost of equity capital (COE). In addition, this study examines whether the differential role of external corporate governance appears in the relationship between the two.<BR>Empirical results show a negative relationship between the applying of reinforced Standards of SMEs and the COE. This suggests that reinforced application of SMEs’ increases the reliability of the accounting information process and ultimately is related to the reduction of information risk. Specifically, the result is found firms without industry specialized auditors, firms without institutional shareholders and firms with low foreign investor equity, suggesting the application of reinforced Standards is more effectively related to information risk reduction when external corporate governance is weak.<BR>This study has a differentiated contribution by presenting empirical results that SME’s selection of the Standards affects the COE. In particular, the results of this study that proactive design and operation of IACS are related to the reduction of cost of capital.

Readiness of Malaysian Small and Medium Enterprises Construction Companies for Building Information Modelling Implementation

Building Information Modelling (BIM) has shown its efficiency in helping the construction industry players. The BIM helped to achieve better integration of project information and to enhance collaboration between stakeholders and the industry players from the early phase of projects until the end. Small and medium-sized companies (SMEs) have been under-represented in studies on BIM adoption. Although the technology to implement BIM is readily available and rapidly maturing, the adoption of BIM is still slow. Malaysian government support the adoption of BIM-oriented Integrated Design (ID) approaches in their national markets, however, the implementation of BIM software support systems among Small and Medium Enterprises (SMEs) in Malaysia is considered inadequate. In terms of the implementation of information technology, the construction sector in Malaysia still lags behind other sectors. To have a better knowledge of BIM in SMEs, it is important to first identify the major barriers to BIM adoption in SMEs and then examine potential solutions. Hence, the main motivation of this study is to investigate the readiness of Malaysian SMEs construction companies for BIM implementation, to determine the challenges of BIM implementation, and to develop a strategy to overcome the challenges. An online questionnaire survey was conducted and as many as 115 responses were collected. A quantitative approach was used for this research. This study uses a descriptive analysis method which comprised of structured questionnaires developed from reviews of past researches. The finding of this study indicate that BIM adoption in Malaysia is still relatively low. Many actions are needed to promote BIM adoption among construction SMEs in Malaysia.

Os efeitos da aprendizagem organizacional e da capacidade de absorção no desempenho da inovação de produto em pequenas e médias empresas

Objective: Verify the moderating role of absorptive capacity in the relationship between organizational learning and the performance of product innovation in small and medium-sized companies (SMEs).Methodology: The research has a descriptive quantitative approach using the survey method and questionnaires applied to 233 owners of small and medium-sized companies (SMEs). Data were analyzed using the Smart-PLS software using the structural equation modeling technique.Originality: The research used a quantitative and descriptive approach to investigate product innovation performance in the SMEs' field. Investigations into the performance of innovation in SMEs are still a limited and little-explored field in Brazil (Manthey et al., 2017; Davila, Varvakis, North, 2019). Another prominent factor was that the absorptive capacity does not act as a moderator in the relationship between organizational learning and product innovation performance, which goes against the assumptions present in the literature.Main results: The results showed that organizational learning influenced positively the performance of product innovation in the investigated companies, as well as organizational learning positively impacted absorption capacity. However, the moderating role of absorption capacity in the relationship between organizational learning and product innovation performance has not been confirmed in the field of study of the investigated SMEs.Theoretical/methodological contributions: The research showed that the capacity of absorption in the investigated SMEs could not moderate, affecting the direction or intensity of product innovation performance. This fact represents a counterpoint to the previously published literature that advocates a positive relationship between AC and innovation.Social/management contributions: The purpose of this study was to obtain more information on how SMEs absorb knowledge and transform it to improve the performance of innovations. The understanding of practices to develop the knowledge absorption capacity in SMEs is still configured as a "black box" to be explored.

The power of shared positivity: organizational psychological capital and firm performance during exogenous crises

This study examines the influence of organizational psychological capital on the performance of small and medium-sized companies (SMEs) during crises. We argue that SMEs use their intangible resources to cope with difficult situations such as the COVID-19 pandemic. Therefore, we investigate how organizational psychological capital impacts performance and creative innovation through such intangible resources, namely, organizational citizenship behavior, solidarity, and cooperation. Methodologically, we combine structural equation modelling and regression analysis on a dataset of 379 SMEs. Our results support the notion that organizational psychological capital positively influences creative innovation of SMEs and thus performance during crises. Our research contributes to the organizational behavior literature by showing that psychological resources of SMEs can strengthen performance in times of crisis and help to prepare for future ones.

Business process management and risk-adjusted performance in SMEs

PurposeThis paper aims to examine the relationship between business process management (BPM) and company performance. The research focuses on the instrumental aspect of core business processes and its controlling activities in small and medium-sized companies (SMEs) to identify the relationship to company performance.Design/methodology/approachThe results presented in this paper are based on a survey of Slovene SMEs. A questionnaire was distributed to 3007 SMEs via e-mail and a response rate of 5.42% was achieved. The financial data of companies over a six year period as derived from the publicly available financial reports of SMEs along with an industry-specific financial risk measure and other financial data were used for the company risk-adjusted performance measures of relative residual income (ROE-r) and risk-adjusted ROE (ROE-a) calculation.FindingsThe results show that instrumental aspects of core business process controlling activities are related to risk-adjusted company performance measures ROE-r and ROE-a. Companies with lower ROE-r and ROE-a have been perceived to be more focused on the instrumental aspect of BPM. Presumably due to the small sample, the results of a non-parametric Mann–Whitney U test did not statistically confirm the developed hypothesis: “the instrumental aspect of controlling as a core process management activity has a statistically significant impact on company risk-adjusted performance measures such as ROE-r and ROE-a.” Despite this, the results show a possible negative correlation between risk-adjusted performance measures and BPM, which opens possibilities for further research.Research limitations/implicationsThe main limitation of the purposed study model is that the paper have studied only control activities of core business processes and relate it to company risk-adjusted performance measures. The study has been limited by the SME sample and the use of a survey as a research instrument. An additional limitation of the research is the degree of reliability implied by the assumptions of the models used to estimate the required return on equity and risk. Results concern investors, managers and practitioners to start BPM improvement initiatives, to set BPM priority measures and to set priority management decisions and further actions.Originality/valueThis paper presents the unique findings from an investigation of the instrumental aspects of BPM practices and their relationship to company risk-adjusted performance measures in SMEs. This paper developed a measurement instrument for measuring the instrumental aspects of BPM use. An additional original contribution is the use of company risk-adjusted performance measures such as ROE-r and ROE-a, which take into account the required profitability of companies in different industries according to the risk and allows comparable results of companies from different industries. The approach is innovative and interesting as regards researching the factors that affect the profitability of companies that operate in different industries.

Female Micro-Entrepreneurs and Social Networks: Diagnostic Analysis of the Influence of Social-Media Marketing Strategies on Brand Financial Performance.

The business world is facing a very complicated situation due to the COVID-19 pandemic. Small- and medium-sized companies (SMEs)—both in Spain and at the global level—are seeing their survival jeopardized by a fall in revenues. This scenario is aggravated in the case of micro-SMEs headed by female entrepreneurs. Accordingly, micro-SMEs, particularly those led by female entrepreneurs, need to reinvent themselves to overcome the current adversities that could lead to the destruction of their businesses and hence their jobs. One of the ways to do this is to take advantage of digital transformation. Therefore, the aim of this paper is to analyze which variables influence the financial results of female-led Spanish micro-SMEs when they carry out social marketing actions. For that purpose, an online survey was designed and analyzed using the “PROCESS” macro. Results show that social media marketing actions have significant effects on financial performance.

Distributed ledger technology as a catalyst for open innovation adoption among small and medium-sized enterprises

Open innovation and distributed ledger technology (DLT) are both based on the underlying principles of distribution and sharing. While open innovation is about sharing knowledge to improve innovation processes and performance, DLT is a distributed data ledger that is utilized to enhance efficiency, reduce costs, and ensure immutability, traceability, security, and transparency. In this paper, we investigate the barriers to open innovation currently faced by small and medium-sized companies (SMEs) that DLT can solve. To achieve this goal, we conducted semi-structured interviews with 11 experts in open innovation and DLTs from Spain, Germany, Australia, and India. The results of our exploratory study show that DLTs can help to solve several problems, including external barriers, such as problems with contracts, financing, lack of trust, raw materials, lack of information, domestic and international market limitations, IP rights, and governmental regulations as well as bureaucracy. Internal challenges include insufficient funding, organizational systems that are out of date, and lack of trust. When it comes to difficulties associated with the management of open innovation, external barriers are frequently caused by customers' demands, while internal barriers are frequently caused by organizational culture or human nature, which cannot be improved by DLTs. Finally, SMEs might face new obstacles when integrating DLTs, such as integration problems, complex transition phases, and high setup costs as well as problems with attracting and retaining qualified employees.

Critical analysis of Talent Management in German Small and Medium-Sized Companies (SMES)

The article aims to determine which aspects need to be considered to operate effective and efficient talent management.Three hypotheses were formulated, which were processed with qualitative content analysis. The investigation was performed using the software MaxQDA.The following aspects have been identified as critical pillars for successful talent management: The process of talent management must be implemented holistically. It must be clear which positions in the company contribute in a particular way to the company's success and what requirements the personnel intended for this purpose must meet. Talent management should play its part both in times of recovery and in times of crisis to Always ensure the consistent availability of mission-critical workers. take advantage of the crisis to prepare for an expansion starting at the beginning of the recovery.

Why cybersecurity insurance should be regulated and compulsory

ABSTRACT This paper argues that promoting and regulating cybersecurity insurance could solve a key problem: despite the well-publicized hacks of businesses across the world and numerous government awareness campaigns, many small- and medium-sized companies (SMEs) in Europe do not practise proper cybersecurity. Introducing compulsory cybersecurity insurance for SMEs would be the single most effective way to achieve cyber resilience in a modern digital economy and protect businesses from both cybercriminals and state-sponsored hackers. Besides setting minimum standards for company cybersecurity and ensuring that post-breach support services are included in every insurance policy, governments must also address significant issues in the emerging cyber insurance market such as removing false incentives regarding ransoms and fines and creating a backstop mechanism to address aggregate risk. Moreover, they should ensure that all claims are collected in one database since this data would transform our understanding of malware threats and the costs they are causing. Combining these measures could unleash the potential of cyber insurance for the protection of all businesses and their customers, especially if the EU adopts a coherent policy for all member states.