Small And Medium-sized Companies Research Articles

Impact of Training, Customer Orientation and Supervisory Behavior on Sales Performance

This study examined the effect of Training, Customer Orientation and Supervisory Behavior on Salesforce Performance in the context of small and medium-sized companies (SMEs). The diffusion of technology, such as customer relationship management (CRM) systems and social media, has created a need to improve the understanding of how to manage interactions with customers in today’s digital era. The importance of technology is raised in terms of social media and as the world is treated as the “global village’. More importantly, the beginning of novelties such as cloud computing and web-based technology saves time and human efforts. The term, sales performance is the key to success for many organizations and is treated as the most demanding topic for firms. For this study, three hypotheses were formulated and tested with the help of Pearson correlation by using SPSS. Findings indicate that all the Training, Customer Orientation and supervisory behavioural dimensions were statistically significant and positively related to salesforce performance. Implications were drawn for future research and managerial attention.

Agile HRM practices of SMEs

ABSTRACT There have lately been rising interest relating to human resources (HR) in small and medium-sized companies (SMEs). This study focuses on agile and innovative human resource management (HRM) practices in 100 Finnish SMEs. Chief executive officers, HR directors, supervisors, and shop stewards were asked what kinds of agile/innovative HRM practices are present in their company. There are great expectations of SMEs in Finland because the country’s economic growth relies on them. Therefore, it is important to pay attention to the more agile, innovative, and productive HRM practices that can nurture profitability and growth among SMEs.

Leadership Models and Leadership Styles as Success Factors in Small and Medium-sized Enterprises

Under conditions of the population aging, one of the most pressing and urgent problems for company management is the retirement of most administrative staff over the next few years. At the same time, the majority of the young working-age population brings into question the current management practices in companies, considering the work primarily as a way of ensuring their livelihoods. There is a large proportion of the population who believe that work should bring joy, pleasure, and be open to creative activity. It leads to a shift in small and medium-sized companies (SME) from traditional management models to those adapted to modern labor market requirements. It is considered that the advertising brochures and websites of many small and medium-sized enterprises have recently mentioned a standard management style when announcing a vacancy notice. As for the employees, the presence of joint management is considered as “the most important property of the company”, while most managers treat the formation of this management style with a high degree of formality and conventionality. This article investigates the problems of trade companies in the context of the creation and implementation of labor-management policies. These challenges are widely described and discussed in the world of scientific literature, predominantly by the example of other industries, leading to inconsistencies in the conditions and features of its application in the trade sector. According to an empirical approach based on expert interviews, major leadership issues were identified. Experts stressed the fact that while struggling for skilled personnel, the companies face new challenges when the younger generation of employees emerges in the labor market. These workers require a more transformational approach to leadership than that one, which exists today. The reasons for this situation are the promotion of highly qualified specialists to executive positions. Thus, these vacancies are often replaced by those who earned it the most, being an excellent employee, but lack managerial skills. Keywords: demographic trend, leadership styles, RIASEC model, small and medium-sized enterprises, transformational leadership, general management.

Dynamic capabilities in Italian leading SMEs adopting industry 4.0

PurposeThis paper aims to focus on how Industry 4.0 technology transfer has been implemented by leading Italian innovative small, and medium-size companies (SMEs).Design/methodology/approachThis exploratory-descriptive study uses qualitative methods for collecting primary data (interviews and ethnographic observation) and secondary data (surveys, press news and websites).FindingsThe paper contributes to the understanding of what building dynamic capabilities (DC) is, and to clarify pivotal roles, functions and dynamics of the entrepreneur and the executive team.Research limitations/implicationsThe results that emerged from the present research unveil a great potential for further development. The study can be confirmed and/or extended by replicating it within other economic contexts such as the European Union allowing then comparative studies amongst regions and countries.Practical implicationsIn Italian leading SMEs an “augmented management” emerged. The study shows that digital technologies are enriching not only “what” and “how” management performs its duties but also its role: “orchestration” – a key term in DC theory – has been enhanced by new meanings.Social implicationsThe study points out the relevance of an inclusive approach to Industry 4.0 to leverage the collective intelligence of the company.Originality/valueImplementing Industry 4.0 has required a renewal of the leadership executive team: new young executives coming from other companies and sons/daughters of the entrepreneurs have provided methodologies and commitment to foster the digital transformation.

Health and social welfare professionals’ self-rated competence and feedback following a simulation-based coaching intervention in small and medium-sized enterprises

Objective: To examine how health and social welfare professionals in small and medium-sized companies (SMEs) rated their theoretical, practical, and interaction competencies following simulation-based coaching, and to collect feedback for the coaching intervention.Methods: This quantitative survey is part of a wider research and development project conducted in Finland in the years 2017-2019 with assistance from the European Social Fund and carried out in collaboration between two educational institutions. Respondents were 107 nurses and other health and social care professionals in 20 SMEs. Data collection took place using an online questionnaire in May 2019. The data were analyzed using IBM SPSS for Windows 25.Results: The great majority of the participants were satisfied with the coaching intervention. Respondents rated their theoretical, practical, and interaction competencies as good. They also felt confident about their skills in learning, problem-solving, and action-based learning. Among the most salient learning needs were the use of digital tools, social media, and electronic learning environments, and the need to practice remote counseling.Conclusions: The results indicate a need to provide continuing education on information and communication technology for health and social welfare professionals in small and medium-sized companies.

Core Business Process Management and Company Performance

This article deals with the management of business processes activities with an emphasis on core processes as well as their influence on company performance. Article focuses on how core process management, which encompasses the activities of planning, organizing, leading, and controlling, influences the performance of a company. We designed a model of the relationships between selected factors, developed hypotheses and in the empirical part, verified their validity. Management activities of core process (planning, organizing, leading, controlling) were dealt with from an interest and instrumental point of view. A population base of 3,007 small and medium-sized companies (SME) from Slovenia were included in the survey. Within the framework of statistically processing the collected data in the empirical section, we used structural equation modelling (SEM) as the central method since we checked the relations between the different variables (claims), as well as the theoretical model of the relations. The research confirmed that some interest aspects of the core process management (planning, organizing and leading) and some instrumental aspects of the core process management (controlling) influence company performance more than others.

Sustainability Reporting and Performance Measurement Systems: How do Small- and Medium-Sized Benefit Corporations Manage Integration?

Benefit Corporations and B Corps represent alternative models of enterprise, often referred to as “hybrid companies” that bridge the for-profit and not-for-profit models. Italy is the first country outside the USA to pass Benefit Corporation legislation and introduce the Società Benefit. A large number of Italian Benefit Corporations are small- and medium-sized companies (SMEs), since SMEs are widespread within the entrepreneurial fabric and have great relevance in the Italian socio-economic context. A key issue in the emerging debate on small- and medium-sized Benefit Corporations concerns how these companies—with limited reach and considerable financial and human resource constraints—can effectively absorb their added social responsibility. In particular, such firms need to manage their dual mission, integrate social and environmental goals in their business model, and incorporate accountability mechanisms, all while scaling up and garnering the necessary resources to be economically competitive. Starting from these premises, this paper focuses on the performance measurement and reporting systems that are adopted by SMEs that are also Benefit Corporations, and investigates whether benefit impact assessment indicators integrate into an overall sustainability performance management system. To achieve this goal, an exploratory case-based analysis on seven small- and medium-sized Italian-certified Benefit Corporations is presented.

내수기업 수출활성화를 위한 무역전문인력 양성 방안에 대한 연구

In all countries of theworld, the development of trade is an important factor for the survival of the national economy. Increased export will lead to national economic growth. Export is directly linked to employment, and the industrial structurewill be developed in the direction to produce products of comparative advantages. Therefore, every country around the world is trying to promote export regardless of the size of its economy.Accordingly, this paper focused on the promotion of export of domestic companies. It proposed to cultivate trade experts to promote export of domestic companies. The following five methods were proposed to materialize the proposal.First, it is important to foster trade experts to expand and foster the one-person creative companies. In particular, it is important to develop a professional education curriculum. It is necessary to design and conduct a systematic curriculum throughout the process including follow-up after education such as teaching detailed procedures for establishing a trade business, identification of relevant regulations and related organizations, understanding of special features of each exporting country, and details of exporting procedures through specialist training for the individual industries, helping themto keep their network steady so that they can easily get help from consultants.Second, it is necessary to educate tradersworking in the field tomake them trade experts and utilize themin on-the-job training and consulting. To do this, it is necessary to introduce systematic consultant selection process, and to introduce a systemto educate andmanage them. It is because,wemust select themost appropriate candidates, educate themto be lecturers and consultants, and dispatch themto the field, in order tomake the best achievement in export. Nurturing trading professionals utilizing the current tradingworkers to activate export of domestic companies can be more efficient through cooperation of trading education agencies and related agencies in various industries.Third, it is also proposed to cultivate female trade experts by educating female tradeworkerswhose career has been disrupted. It is to provide career disrupted women with opportunities to work after training them as trade professionals and to give manpower pool to domestic companies that are preparing for export.Fourth, it is also proposed to educate foreign students living in Korea to be trading experts and to utilize them as trading infra. They can be trading professionalswhowill contribute to the promotion of export. In the short term, theywill be providedwith opportunities for employment and start-upin the field of trade, and in themid- to long-term, theymay develop a business network between Korea and their own countries. To this end, we need to improve the visa system, expand free trade education opportunities, and support themso that they can establish small but strong enterprises.Fifth, it is proposed to proactively expand trade education to specialized high school students. Considering that most of domestic companies pursuing activation of export are small but strong companies or small andmediumsized companies, they may prefer high school graduates rather than university graduates because of financial limitations. Besides, the specialized high school studentsmay occupy better position in the jobmarket if they are equippedwith expertise in trading.This study can bemeaningful, in that it is the first research that focuses on cultivating trading experts to contribute to the export activation of domestic companies. However, it also has a limitation that it has failed to reflect themore specific field voices. It is hoped that detailed plans will be derived from the opinions of the employees of domestic companiesmaking efforts to become an export company in the related researches in the future.

Guanxi, IT systems, and innovation capability: The moderating role of proactiveness

In Chinese exporting, small and medium-sized companies (SMEs) need to be innovative to develop a competitive advantage. This research explored how these organizations can use two resources: 1) guanxi with customers, distributors, suppliers, and government officials; and 2) IT systems to enhance their innovation capabilities and new product performance. The moderating role of an organization's proactiveness with respect to new product development is also examined. The resource-based view provides the theoretical support for the research. A conceptual model is developed and tested using survey data gathered from 210 Chinese SMEs in manufacturing industries that were analyzed using SmartPLS 2.0. Results show that IT systems are positively related to innovation capability. The relationship between guanxi and innovation capability is significant for firms that exhibit high levels of proactiveness but not when proactiveness is low.

A study on influencing factors of technology commercialization competence of small-and Medium-Sized companies

The purpose of this study was, therefore, to investigate the mediating effect of level of companies’ involvement in consulting on relationship between consultant competence, an external condition, and companies’ competence to commercialize technology and on paths among variables and to provide implications. The research model and hypothesis were developed based on previous studies and questionnaire survey was performed on consultant competence, company’s involvement level, technology commercialization competence, technology commercialization performance with SMCs that used or is using external consulting in process of technology commercialization and tested research model and hypotheses using statistical analysis. The result of empirical analysis showed positive effects among variables, consistently with previous studies, partial mediating effect of company’s involvement on relationship between consultant competence and company’s technology commercialization. It is important for SMCs to achieve successful performance in technology commercialization process, company’s internal involvement to consulting as well as consultant performance of external expert should be developed and, especially, involvement of senior executives is important factor. It is expected that this study provide useful information for SMCs to develop successful technology commercialization competence.

Corporate Social Responsibility: Its Effect on SMEs

In recent times, small and medium-sized companies (SMEs) have focused their activities on short-term financial results. Corporate social responsibility (CSR) is among the organizational practices currently being adopted by companies to increase their competitiveness. While some companies implement CSR out of curiosity or because it is aligned with their true social vocation, most embrace it to increase economic and financial performance. Whereas some theories support CSR practices and assert the great benefits these activities can yield, other theories state that management should not allocate resources to CSR actions. Focusing on SMEs, the present study sought to examine the effects of CSR on profitability from three perspectives: the social, the environmental, and the economic dimensions of social responsibility. The sample for this study included 81 companies in the industrial (54.3%) and services (45.7%) sectors operating in the south of the state of Sonora (Mexico). Data collection was carried out from August to November, 2013, and used a self-directed survey administered to company managers. Results were analyzed and validated using a variance-based statistical technique focused on structural equation models (SEM); the structured relationships were validated by partial least square (PLS) modeling using the SmartPLS Professional software (version 3.2.6). Our findings provide evidence that social and economic CSR activities have a positive influence on profitability in SMEs. This study contributes to the development of the main literature on CSR practices in their social, environmental, and economic dimensions: firm theory, sustainability theory, and stakeholder theory.

Detours on the Path to a European Big Data Economy

As envisioned by the European Commission, national boundaries are supposed to disappear under the Digital Single Market. Many small and medium-sized companies (SMEs) are not aware of the significant potentials and promises of big data for their business activities and models.

KNOWLEDGE MANAGEMENT FOR OPEN INNOVATION: COMPARING RESEARCH RESULTS BETWEEN SMEs AND LARGE COMPANIES

Knowledge co-creation and effective knowledge sharing boost innovativeness in companies. However, rapidly developing technologies and constant changes in the business environment challenge the companies’ practices for knowledge management (KM). The purpose of this paper is to compare the key KM practices and their effect on open innovation between the small- and medium-sized companies (SMEs) and the large companies, and as empirical focus, comparing them through quantitative survey and complementary qualitative interviews. The results indicate that large companies are more externally open to innovate than SMEs and the large companies also value open dialog and knowledge sharing more. Whereas, SMEs seem to rely more on developing their internal practices to support innovativeness. In the both company sizes technology is used rather poorly to support access to open data and networks. The identified factors provide insights for developing KM practices that support open innovation in varying sizes of companies.

Improving Transfer in the Food Sector by Applying a Target Audience-Centered Approach—The Development of a Nonprofit Marketing Campaign Guide Based on a Case Study of the LAV Platform

This article presents a marketing campaign guide to support nonprofit and governmental organizations, such as academic research institutes or governmental agencies, that wish to develop support tools for the food industry. It offers a systematic and target audience-centered approach which guides nonprofits through the various steps of a marketing campaign, from defining the required values of a new product or service to ultimately launching it. The text also explains how a target audience-centered marketing approach was applied in a case study of developing and transferring the LAV platform (LAV—Avoiding Food Waste, from the German “Lebensmittel Abfall Vermeiden”), a website that has been specifically set up and targeted to small- and medium-sized companies (SMEs) in the German food sector that wish to reduce food waste in their operations. Currently, there are more than 500 tools available in the English or German language which attempt to support companies in the food sector in their food waste reduction efforts. However, so far there has been no platform that could gather all these tools to facilitate SMEs’ access to them. The LAV platform compiles various relevant tools from academia as well as from industry and makes the most suitable tools available in a toolbox published on the Internet platform. Here, the tools are structured by topic and market segment; its user-friendliness was tested applying participatory methods which involved SMEs and industry organizations. The LAV platform, as well as target audience-centered marketing approaches more generally, could act as role models for other international projects that also have the goal of setting up and promoting tool-gathering systems.

Are the cultural accounting values a relevant issue for the SMEs’ financing options?

This paper aims to examine the financing options of the managers/owners of SMEs (small and medium-sized companies) from a point of view that incorporates cultural values, namely, conservatism and secrecy. Data were collected with the use of a questionnaire conducted for managers/owners of a sample of 1629 Portuguese SMEs, and with the use of accounting and financial information from the period 2009 to 2011. 438 managers/owners provided valid answers, corresponding to a response rate of 27%. Using multivariate regression techniques as a basis, the results showed that a significant number of managers/owners supported the negative relationship between conservatism/secrecy and the business financing options associated with a higher risk (debts with costs). The results also showed that a more significant number of managers/owners of national SMEs choose sources of financing in light of the pecking order theory.

Framework to overcome barriers in the implementation of cleaner production in small and medium-sized enterprises: Multiple case studies in Brazil

Brazilian small and medium-sized companies (SMEs) face several limitations in the implementation of cleaner production (CP). These limitations unfavourably affect their sustainable transitions. For SMEs to achieve sustainable changeovers, it is essential to implement changes in their production systems by adopting CP in principle and in practice. A literature review indicated that no previous work assessed the barriers to implementing CP in industrial SMEs belonging to the metal-mechanical sector, highlighting a gap requiring additional research. Hence, the objective of this paper was to propose a framework for overcoming obstacles to the implementation of CP for small and medium-sized companies. For that purpose, four related propositions were identified in the literature by means of a systematic review. These propositions assert that SMEs should identify the barriers to implementing CP and use tools to prioritize the identified hurdles and the main actions required to implement CP. In addition, they propose that the lack of investment capital in SMEs enhances the barriers and that the higher the return on investment is, the higher the probability is that an SME adopts CP. Those propositions were validated through multiple case studies comprising four industries belonging to the Brazilian metal-mechanical sector. The cases were small or medium-sized companies that had not yet implemented CP but had manufacturing processes with CP implementation opportunities. The results of the case studies yielded a novel solution to support SMEs in overcoming barriers to implementing CP, providing a contribution to CP theory. This consists of the utilization of a framework with four simple and friendly steps to be used by managers and employees, providing a contribution to CP practice. It is relevant to note that this framework relies on possible economic gains that SMEs can obtain with the adoption of technical CP solutions, considering that those companies endemically suffer from a lack of financial resources for their survival. The proposed framework was validated through only four metal-mechanic manufacturers located in Brazil, and additional research considering a larger amount of companies belonging to other industries and located in other countries could strengthen the findings of this work.

A study on User Behaviors for Consulting of Fintech Companies

Background/Objectives: The area that is receiving the most attention today in ICT development is the financial services area. Fintech refers to the convergence of finance and technology and differs from existing electronic finance. Methods/ Statistical Analysis: The present study used the causal analysis method through multiple linear regression analysis as a statistical analysis method. Multiple linear regression analysis has the advantage of analyzing the isolated influence between variables affecting dependent variables. Findings: Different perceptions and responses for dependent variables resulted in the different countries because of the different cultures of users, as well as differences in social perceptions. Thus, companies that aim to enter into the global market via fintech service should establish their entry strategy and customer acquisition and expansion strategy on a country-by-country basis. Application/Improvements: The results of the study are expected to be basic data which will be substantially helpful to multiple small-and medium-sized companies, ventures, and startups that aim to enter into the fintech field.

Consideraciones para el Código de ética empresarial de las empresas afiliadas a la AMAV-México

Esta publicación tiene como objetivo proponer unas consideraciones para el código de ética empresarial, con base en el grado de importancia que tiene para las empresas afiliadas a la AMAV-México, orientado a integrar el enfoque ético sostenible, con el modelo económico empresarial al medio ambiente y al desarrollo social en los procesos de negocios y proporcionar herramientas necesarias para que se implemente este enfoque sostenible en las pequeñas y medianas empresa,teniendo en cuenta que los códigos de ética en las pymes pueden constituirse en un medio eficaz para institucionalizar la ética dentro de las organizaciones, si se presentan como la expresión clara y definida de los valores compartidos a su interior, este artículo pretende mostrar que su utilidad está estrechamente vinculada al desarrollo de virtudes de las personas involucradas, a una adecuada política de comunicación y a un firme liderazgo, comprometido con los valores morales que refleje la conducta moral sostenible de quienes la conforman.

Modus operandi of SMEs towards cooperative innovation: evidence from Bizkaia

In recent times, open innovation has become fashionable as a way to make up for limited internal efforts around innovation. In the present paper, we review the state of cooperative innovation among small- and medium-sized companies (SMEs) by categorising their modus operandi regarding innovation in general and towards cooperative innovation in particular. To that end, we create a framework for analysis that is rooted in the dichotomy between doing-using-interacting (DUI) and science-technology-investigation (STI). The inventory obtained serves as a basis for identifying implications for managers with regard to enhancing the propensity for cooperative innovation among SMEs and increasing the benefits that can follow from it. We find that SMEs should devote particularly care to creating a position for an internal innovation promoter to act as a boundary spanner between the firm and external partners. Additional recommendations for thought and action are to look beyond the regional home base for innovation partners and consider implementing more formal governance arrangements for cooperative innovation.

Management of Risks in Export Networks

The globalized economy is increasingly affecting small and medium-sized companies (SMEs). As markets and growth are moving outside Europe, SMEs need to find new global customers and build their market entries through export networks to remote locations which often have different cultures, regulations and practices. This paper discusses the risks and challenges related to this transformation, based on observations from Finnish SMEs. Previous research on risk management in the context of export networks and collaborative networked organizations is utilized in the work. Using information collected from Finnish SMEs, the paper analyses the risk factors and risk management methods in export networks. The role of collaboration is discussed, both as a source of risk and as a measure to decrease the risks. Based on the analysis, companies appear to value the risk management methods including collaborative actions with partners, but the use of these methods in practice is low.