Small And Medium-sized Enterprises Business Research Articles

Factors affecting succession planning in family-owned fish trading SMEs in Mwanza City, Tanzania

The purpose of this study was to assess factors affecting succession planning in family-owned fish trading SMEs businesses in Mwanza city. The research utilized quantitative methodologies to evaluate the effect of individual, familial, and organizational factors on succession planning within family-owned small and medium-sized enterprises (SMEs) in Mwanza city. Chi-square analyses revealed that leadership, delegation, the ability to disassociate from the business, and successor preferences significantly influence succession planning. Moreover, the interest and abilities of the successor plays a crucial role in the planning process. The study further found that family-level factors, including traditions, compensating family members, formal communication forums, and the desire to maintain family control, also significantly affect succession planning. Regression analyses indicated that individual factors such as leadership, delegation, and the abilities of potential successors positively influenced succession planning. At the family level, practices like compensating family members and establishing formal communication channels significantly contributed to succession planning, while traditional practices like favouring the eldest son as a successor did not have a substantial impact. Additionally, the study identified that the readiness of the successor, the presence of a clear and documented succession plan, effective board governance, a well-defined organizational structure, and the existence of a written strategic plan were key predictors of successful succession planning. The findings suggest that businesses with well-defined and specific succession plans, identified successors, and active development plans for the next generation are more likely to achieve success in shaping succession planning within family-owned fish trading SMEs, providing a solid foundation for successful ownership transitions. This research offers valuable insights for future research and policy development concerning SME succession planning and business sustainability.

SMALL TO MEDIUM‐SIZED ENTERPRISES DATA PERCEPTION AND APPLICATIONS

In all sectors where digital elements and tools are becoming more and more widespread, it has contributed to the formation of large volumes of data due to the increase in the data flow rate regarding company processes. These data-related developments have contributed to the fact that small and medium-sized enterprises (SMEs) are seen as an important resource by processing and making sense of data. Data capital can enable SME businesses become aware of things by showing correlations, risks, and opportunities that they weren't aware of before. In this study, it aimed to evaluate the knowledge, technological infrastructure, precautions and data perceptions of SMEs for big data applications in the future. In order to find out the above-mentioned elements, a survey analysis study was carried out comprising the company managers in the scope of the selected samples. By using explanatory and confirmatory statistical criteria, this study presents to companies, particularly SMEs, the business opportunities and policy recommendations hidden amongst big data.

Empowering Bumiputra SMEs Through Intellectual Capital: Lessons from a Developing Nation

Small and medium-sized enterprises (SMEs) play a vital role in the economic development of countries by contributing to the expansion of the export sector's GDP, generating a significant number of employment opportunities, and promoting the development of social infrastructure. Despite their crucial role, SMEs in Malaysia have not received sufficient attention in terms of intellectual capital research. This study aims to address this gap in the current literature by examining the intellectual capital of Bumiputra SMEs in a developing country. The primary objective of this study is to assess the impact of intellectual capital components on the performance of Bumiputra SMEs. The data gathering process will involve qualitative techniques, specifically NVivo-facilitated interview sessions. The insights derived from these sessions will provide SME firm owners with a comprehensive understanding of how intellectual capital influences company performance, empowering them to make informed decisions. This study relies on two firm owners as the main sources of information during the interview sessions. The findings reveal that various elements of intellectual capital, such as human capital, structural capital, customer capital, social capital, technological capital, and spiritual capital, significantly influence the commercial performance of Bumiputra SME entrepreneurs. The study's conclusions have a notable and positive impact on the theoretical and practical aspects of Bumiputra SME businesses by expanding the understanding of how intellectual capital serves as a strategic asset for SMEs and by incorporating resource-based, knowledge-based, and social capital frameworks. The decision of employing only a small number of participants was determined by limitations on time, money, and accessibility. Nevertheless, only a small number of representations can yield significant results, particularly in qualitative studies where data accuracy and breadth are crucial.

How Does Digital Infrastructure Affect Manufacturing SMEs Business Model Innovation? An Empirical Study in Guangdong Province

ABSTRACT Based on the resource orchestration theory (ROT), this research explores the significant role of digital infrastructure in enabling business model governance innovation (BMGI) within manufacturing small and medium-sized enterprises (SMEs). Using a sample of 237 cases from Guangdong Province, China, linear regression analysis demonstrated that digital infrastructure could significantly facilitate such innovation. Additionally, both design and use recombination acted as mediators, with design recombination yielding a substantially stronger positive impact on BMGI. This study also highlighted the contrasting impact between discrete and process manufacturing, showing that discrete manufacturing derives more substantial benefits from digital infrastructure. The findings of this research provide valuable theoretical insights into the digital transformation and value creation of SMEs in the manufacturing sector.

Changes in SME Business Due to COVID-19—Survey in Slovakia and the Czech Republic

The objective of the paper is to analyse and compare the consequences of the coronacrisis on the entrepreneurship of small and medium-sized enterprises (SMEs) in Slovakia and the Czech Republic with the aim of identifying the determinants of changes in entrepreneurship. The secondary empirical research was carried out based on the analysis of secondary and primary data. The analysis used economic indicators of SMEs, governmental measures and surveys of the views of entrepreneurs. The analysis used data from statistical databases and official reports from government institutions and non-governmental organisations (NGOs), as well as data from primary surveys conducted by NGOs. Descriptive statistics, financial analysis and cross-comparison methods were used to process the data. The results revealed changes in the business of SMEs in the Czech Republic and Slovakia during the crisis, such as the adaptation of business strategies, improvement of flexibility and acceleration of digitalisation processes. These changes highlighted the importance of building business agility. The summary of the main changes in SME business based on both secondary data and primary surveys and the perception of state anti-pandemic aid by managers as feedback to governments represent the main contributions of the paper.

The Impact of Technological Turbulence on SMEs Business Model Innovation Performance: The Contingent Role of Entry Order

In this study, we investigate how small and medium-sized enterprises (SMEs) engage in business model innovation in response to technology shifts, and the ensuing impact of this innovation on performance. Using structural equation modeling, we analyze data from a survey of 1328 European SMEs and find that technological turbulence affects the scope and novelty of business model innovation, and that these dimensions of innovation in turn affect firm performance. We show that these relationships are doubly contingent: both SME size (micro, small, or medium) and time since market entry are relevant. Early entrant firms are more responsive to technological turbulence through both dimensions of business model innovation, as the learning accruing in these SMEs since market entry motivates and informs business model innovation. There are meaningful differences in these relationships for micro, small, and medium-sized enterprises. Our findings advance the theoretical understanding of the relationships between technology, entry order, business model innovation, and performance and also serve to inform managers’ estimations of the implications of technology turbulence and business model innovation for performance.

Информационно-коммуникационные технологии в международном бизнесе средних и малых предприятий: роль, типы и решения

This article examines the role of information and communication technologies (ICT) in the interna-tional business development of small and medium-sized enterprises (SMEs) in the modern world. The COVID-19 pandemic had forced managers of SME organizations to adapt quickly to new business conditions by adap-tation of new technologies and changing internal and external business processes. The article analyzes the key factors of integration ICT that influence the transformation of the way business is conducted in global markets. The specifics of ICT implementation in various areas of small and medium-sized businesses are described. The most significant challenges of digital transformation of SME business have been identified. The study high-lights the importance of addressing these issues in increasing the competitiveness and innovation capacity of SMEs in the global economy.

The Drivers of Sustainability Practices in SMEs and the Impact on Business Performance

The concept of sustainability practices by Small and Medium-sized Enterprises (SMEs) is often ignored, specifically in developing countries. This requires optimal attention, considering the significant role of SMEs in economic growth and the significant collective impact on the ecological environment. Therefore, this study aimed to analyze the impact of collaboration and innovation on SMEs sustainability practices and business performance. A total of 169 samples were obtained from metal manufacturing companies located in the Tegal, Klaten, and Greater Jakarta regions through purposive sampling. The results showed that collaboration significantly and positively affected SMEs sustainability practices, using SEM-PLS analysis. Innovation also positively influenced sustainability practices and business performance. Furthermore, the positive impacts of collaboration and innovation on business performance were mediated by sustainability practices. Sustainability practices also positively affected business performance, showing that the enhancement of sustainability practices commitment was required to achieve Sustainable Development Goals (SDGs) without sacrificing SMEs business growth. From the results, the implementation of other variables was recommended for future analyses, to improve the understanding of the different factors driving sustainability practices in SMEs.

Implementation Chatbot for SMEs Using Artificial Intelligence Markup Language to Improve Customer Integration and Business Performance

Chatbots have been extensively adopted to produce more positive customer experiences as customers now spend more time in digital surroundings. Despite the technological advancement and benefits of chatbots for client service, exploration of chatbot operations for small and medium-sized enterprises (SMEs) is limited. The absence of exploration explaining the struggles faced by SMEs contributes to the gap in SMEs’ chatbot adoption. This exploration determines the features and rudiments that fit with SMEs’ characteristics and their guests' interactions with chatbots. A mixed-methods approach is used to understand SMEs’ needs. The first study uses interviews with SME business owners and their customers in order to explore the features that chatbots should offer for SME by identifying combinations between chatbots' generic features and SMEs' customer characteristics. The second study tests features identified in SMEs customers to empirically test featured chatbots’ influence on anthropomorphism, perceived enjoyment, perceived ease of use, perceived usefulness, and how they affect SMEs’ customer intentions to use chatbots and their shopping intentions. This paper contributes to the emerging service literature on the use of chatbots for service interactions, particularly for SMEs using Artificial Intelligence Markup Language. The data that has been obtained was analyzed using a Likert scale. As a result, the accuracy of using Artificial Intelligence Markup Language is 84.8%.

Аналіз поточного стану розвитку малого та середнього бізнесу в Україні в контексті воєнного ст

The article examines the consequences of the impact of Russia’s military aggression on the current state of small and medium-sized enterprises (SMEs) in Ukraine. One of the priority areas for the recovery of the Ukrainian economy from the consequences of the economic crisis caused by military actions and the global crisis is the development of small and medium-sized enterprises. Therefore, the purpose of the article is to analyse the dynamics of business activity of small and medium-sized businesses within the domestic market and foreign economic activity, considering the tax reform that has begun since the Russian Federation invaded Ukraine. The subject of the study was chosen to be Ukraine’s small and medium-sized businesses for several reasons: firstly, SMEs accounted for about 70% of employment in the country; secondly, SMEs accounted for almost 60% of gross sales before the military situation. The study used theoretical and empirical methods: induction, explanation, generalisation, comparative analysis, observation and description, and the abstract logical approach was used to make conclusions. In our study, we took into account legislative changes and existing government support instruments that contribute to improving the business climate in the country and, based on secondary data, identified how the mood of entrepreneurs has changed and what the Ukrainian business community should expect shortly, taking into account the reforms and the current economic situation in Ukraine. In addition, the study paid particular attention to the assessments of business representatives, primarily to the expectations of industrial enterprises regarding the prospects for developing their business activity, as expressed in the business confidence indicator and the business climate indicator. The paper has identified several problems that hinder the functioning of SMEs by industry and identified several scenarios for developing SME business needs, taking into account current government actions. The main challenges to the development of SMEs were logistical problems, labour shortages, a significant rise in the cost of raw materials and resources for production, risks associated with hostilities and mining, blocking of foreign trade flows, forced relocation, etc. In the face of these challenges, SMEs are trying to adapt by focusing on business processes, building new development strategies, and becoming flexible. However, a significant proportion of Ukrainian SMEs have been forced to refocus on export development due to the decline in the purchasing power of citizens.

Impact of customer and entrepreneuroriented marketing on business performance: an empirical evidence of SMEs in Russia

This paper aims to investigate the impact of marketing activities on the successful development of small and medium-sized enterprises (SMEs). It identifies and analyzes a set of customeroriented business processes and entrepreneurial marketing competencies designed to profit SMEs. Based on the literature review, the concept of a “marketing model” has been defined as a customer-oriented value system, a set of marketing competences, and marketing business processes. It is hypothesized that not only the customer and entrepreneurial orientations influence SME marketing models, but also basic and dynamic marketing competences and marketing business processes. External and internal factors that influence the development of marketing models are identified, as well as specific characteristics of SME marketing models and the logic of their development. Interview analysis and data content analysis were used to process qualitative data. This study comprises quantitative methods (via survey), combined with further data processing by regression, cluster analysis (IBN SPSS), SEM (IBN SPSS Amos) and the logistic regression methods (logit model). The focus of this research is to analyze the development patterns and specifics of SME marketing modeling to ensure effectiveness and growth of small business. The results of this research demonstrate improvement in the diagnosis and performance evaluation of SMEs and can be utilized by practicing entrepreneurs, SME business owners, and the academic community.

Supply chain risk and SME business continuity strategies in the food industry during COVID-19 pandemic

PurposeThis study aimed to (1) identify supply chain risks faced by small and medium-sized enterprises (SMEs) in food businesses during the COVID-19 pandemic and (2) investigate the business continuity management (BCM) strategies employed by organisations during the COVID-19 pandemic.Design/methodology/approachSemi-structured interviews were conducted, involving eight SMEs in the Malaysian food industry. Their responses were analysed using a thematic analysis.FindingsThe thematic analysis indicated that supply risks, demand risks, operational risks, logistics risks and financial risks were amongst the challenges that the respondents faced during the COVID-19 pandemic. It also provided evidence which showed the importance of flexibility, redundancy and collaboration to avoid or reduce the impact of such risks.Originality/valueThis paper fills the void in the literature by exploring the BCM practices amongst SMEs in the food businesses of a developing country, during the COVID-19 disruptions. Previous studies in the area had mainly focused on large organisations.

ПОСЕРЕДНИЦЬКІ МЕХАНІЗМИ РЕКОНФІГУРАЦІЇ МОЖЛИВОСТЕЙ ЦИФРОВИХ ПЛАТФОРМ ДЛЯ СТВОРЕННЯ ІННОВАЦІЙНИХ БІЗНЕС-МОДЕЛЕЙ МСП

In the digital era, many small and medium-sized enterprises (SMEs) face the challenge of relying on digital platforms to enhance their innovative business models. This article examines the impact of digital platforms on the creation of innovative business models for SMEs. The aim is to identify intermediary mechanisms for reconfiguring the capabilities of digital platforms to foster innovative SME business models. The paper provides an analysis of various definitions of "digital platform" and argues that these platforms are based on algorithmic mechanisms, mutual benefit among stakeholders, a unified information environment, and the effect of reducing transaction costs. It interprets a digital platform for entrepreneurship as an information and communication system aimed at supporting entrepreneurial activities and providing diverse tools, services, and opportunities for entrepreneurs to facilitate the launch, management, and development of their businesses. The article explores the peculiarities of traditional business models (such as direct product sales, franchising, advertising-based models, etc.) and their potential transformation into modern business models (digital platforms, subscription economy model, content subscription model, etc.). The key characteristics of a digital platform for entrepreneurship are identified, including e-commerce, marketplaces, analytics and management tools, community and network utilization, and integration with other services. The study investigates intermediary mechanisms for reconfiguring SME business models, defining these processes as ways for digital platforms to coordinate interactions among various economic participants. It establishes that digital platforms can offer SMEs a range of intermediary mechanisms, including marketing, operational, financial, and informational mechanisms. Furthermore, the paper substantiates the possibilities of reconfiguring traditional SME business models and transforming them into contemporary ones through the reconfiguration of capabilities, value chain innovations, access to new markets, and process digitization.

Banking and trust-based SMEs toward credit access

This study uses three dimensions — ability, virtue and integrity, and accounting information quality — to demonstrate trust’s impact on small and medium-sized enterprises (SMEs) access to finance in Tanjungpinang. A questionnaire was delivered directly or via Google Form to four Tanjungpinang sub-districts. The questionnaire’s Likert scale represents SME business actors’ opinions. The accounting information quality and availability to credit variables included ten statements apiece, whereas the trust dimension had five reports. To test the hypotheses, the data were analyzed using the Statistical Package for the Social Sciences (SPSS) software. Ability, compassion, integrity, and financial information all positively and significantly affected credit access, according to hypothesis testing. Validates earlier findings that trust can overcome information imbalance between banks and SMEs when lending or borrowing. Banks use financial data and trust evaluations in SMEs to distribute loans. The bank recommends quality financial report information for small and medium firms to get loans. This study differs from micro-SMEs (MSMEs) research since tiny enterprises are not a critical necessity.

Toward SME digital transformation in the supply chain context: the role of structural social and human capital

PurposeDigital transformation (DT) and supply chain resilience have received increasing attention. Structural social capital (SSC) and human capital (HC) have recently been identified as strategic resources for small and medium-sized enterprises (SMEs). While the significant role of entrepreneurial competencies (ECs), SME innovativeness (SMI) and technology adoption (TA) in driving business performance have been partially researched, no studies have simultaneously examined the effect of these resources and capabilities on SME business performance growth (BPG) under the lenses of a resource-based view (RBV) and dynamic capabilities (DCs) as well as in the context of DT. This study aims to clarify these unclear relationships.Design/methodology/approachThis study adopts established theoretical lenses, a mixed-methods approach and structural equation modeling (SEM) using a sample of 371 respondents who are top and middle SME managers in Vietnam.FindingsThe study discovers the significant and insignificant relationships between HC, SSC, ECs, SMI, TA and BPG besides providing a new measurement and reconciling existing measurements for the DT context. Some implications for driving SMEs' DT are also suggested.Originality/valueThis study is the first to thoroughly examine the effect of HC and SSC on SMEs' BPG through the mediating role of ECs, SMI and TA under RBV and DCs lenses in the DT context. The investigation is conducted in an emerging market, where DT implementation is in the process of being learned and experimented upon.

Modelling the antecedents for export orientation, innovation capacity and performance for South African manufacturing SMEs

Orientation: In order to improve performance, South African manufacturing small and medium-sized enterprises (SMEs) need to constantly look at expanding their markets by exploring export opportunities and innovating their products and services.Research purpose: The aim of this study was to model the antecedents for export orientation, innovation capacity and SME performance.Motivation for the study: Although the influence of export orientation and innovation capacity on firm performance is well established, this study has brought together these capabilities as well as SME absorptive capacity, knowledge management and entrepreneurial competence into one model.Research design, approach and method: The study adopted a quantitative research approach and employed a cross-sectional survey of 207 SMEs in South Africa. Structural equation modelling was employed for data analysis using AMOS 26.0.Main findings: Absorptive capacity and knowledge management capabilities are certainly significant capabilities that should be embedded in the SME business, in view of their role in positively influencing the development of export orientation and innovation capacity, and that the influence of entrepreneurial competence is not significant enough. The results of the study showed that the primary data collected and analysed fit the posited model.Practical/managerial implications: With SMEs seeking to enter the export market faced with a number of challenges as they begin to explore unchartered waters, the ability to learn and assimilate new knowledge will stand SMEs in good stead as they expand their markets beyond the present boundaries.Contribution/value-add: The study’s findings extend the principle of distributed focus of attention into a possible new theory called SME Export and Innovation Attention Theory.

The impact of COVID-19 on small- and medium-sized enterprises (SMEs): empirical evidence for green economic implications.

Small- and medium-sized enterprises (SMEs) in China have been hit hard by the coronavirus (COVID-19) outbreak, which has jeopardized their going out of business altogether. As a result, this research will shed light on the long-term impacts of COVID-19 lockdown on small businesses worldwide. The information was gathered through a survey questionnaire that 313 people completed. Analyzing the model was accomplished through the use of SEM in this investigation. Management and staff at SMEs worldwide provided the study’s data sources. Research shows that COVID-19 has a significantly bad influence on profitability, operational, economic, and access to finance. In the study’s findings, outside funding aids have played an important role in SMEs’ skill to persist and succeed through technological novelty than in their real output. SME businesses, administrations, and policymakers need to understand the implications of this study’s results.

Virtual Joint Companies as a Means of Incentivizing SMEs to Use Occupational Health Services—A Trial in Two Municipalities in Finland From 2009 to 2011

Employees of Small and Medium-sized Enterprises (SMEs) can benefit from occupational health services (OHS) in the same way that employees of large organizations do. The aim of this 3-year trial was to investigate whether integrating multiple SMEs into virtual joint companies may result in incentive structures like those of large companies concerning access to Occupational Health Services (OHS), which can improve wellbeing and reduce the number of sickness visits to clinics. Several SMEs were grouped together to form virtual organizations to enter into agreements with OHS providers. Two groups were created, each with a somewhat different price structure: one with a fixed annual fee and the other with a cost-dependent fee. The number of sickness visits to clinics increased among those who worked under the cost-dependent fee system, whereas it decreased among those who worked under the fixed-fee system. The findings on the work climate were inconclusive because there was no discernible difference. The improved productive time was particularly appealing to SME businesses, since employees could rapidly schedule sickness visit and they were able to spend less time dealing with sickness-related paperwork. It also raised their awareness of their employees' health. When OHS providers could address SMEs as a group, their desire to collaborate with them improved. Furthermore, the local entrepreneur organizations, which served as the virtual headquarters for the SME groups, stated that they would be willing to continue with the work for a rather moderate compensation. The ability of SMEs to create legal organizations in the form of virtual joint companies appears to address, at least partially, the issues related with the conflict between their small sizes and Occupational Safety and Health (OSH) incentive systems to address work accidents and disease incidences. Using the proposed approach would allow for differential fee systems, as well as economic incentive systems, which presently apply predominantly to large firms, might be extended to SMEs.

Digital readiness of SMEs: An Insight from Indonesia

<p>In the era of industrial revolution 4.0, digital technology is constantly improving in many areas of industry, particularly in business. It forces every business, whether large corporations or small businesses, to make various adjustments in order to keep up with the advancement of digital technology. They should be aware of how far their improvement and readiness have advanced in the digital era. This paper measures the digital readiness of SMEs and categorizes them into the level of digital readiness. The research examined the level of digital readiness among businesses, particularly small and medium-sized enterprises (SMEs) in West Java. A survey of 113 SMEs in West Java was conducted to assess their digital readiness. This research used a descriptive survey research approach. The research method itself is carried out by using a cross sectional survey method. Five variables used in this research include people, process, strategy, technology, and integration. Findings indicated that SMEs in Indonesia show a low level of readiness in relation to Industry 4.0. The majority of the respondents are aware about the phenomenon of digitalization, but they are currently not ready to adapt or use various innovations in their businesses. People, process, strategy, technology, and integration are the five variables analyzed, and the variable showing the best readiness to face digitization is people. SMEs business owners are still taking initial steps to identify the most appropriate strategy to approach industrial revolution 4.0. SMEs must take advantage of existing opportunities, especially with the availability of various information and data to develop business and make decisions. In general, the majority of businesses in Indonesia are small and medium-sized enterprises (SMEs) that are aware of the development of digitalization but are hesitant to implement it and require extensive assistance from various parties to understand and implement digitalization in their business.</p>

Influence of social media adoption on the performance of construction small and medium-sized enterprises (SMEs) in Abuja – Nigeria

PurposeThe purpose of this paper is to examine the influence of social media adoption on the performance of construction small and medium-sized enterprises (SMEs).Design/methodology/approachConstruction SMEs owners and managers in Nigeria were surveyed using questionnaires to gather data. Partial least square structural equation modeling (PLS-SEM) was employed to assess measurement reliability and validity, as well as the hypothesized paths provided in the conceptual model that formed part of the final conclusions.FindingsThe empirical finding showed that social media usage increased knowledge accessibility, reduced costs and improved customer relations and service for organizations. Overall, social media adoption was significantly and positively related to SMEs business performance. Also, the paper revealed that learning capability mediates the relationship between social media and SMEs performance.Research limitations/implicationsData for the study came from only one industry and one related line of business; thus, including more companies from different sectors or industries could be more interesting. The study's findings contributed to the growing body of knowledge about the impact of social media on the efficiency of businesses. Small and medium-sized businesses also need to understand and recognize the impact of social media on the organization's performance in order to achieve a long-term competitive edge from the adoption of social media.Practical implicationsAccording to the findings, small construction firms can benefit from marketing the brands through social media channels and improved learning capability. In terms of accessibility, cost savings and improved relationships with customers, research shows that social media promotion can be beneficial to businesses. A study like this has the potential to show how social media can help striving small businesses interact cost-effectively with customers all over the world, opening new doors for sales and continuous improvement.Originality/valueThe relationship between SME performance in Nigeria and the use of social media has received very little attention despite social media's promising potentials, particularly for small businesses. The authors hoped that this study will fill a gap in the authors' understanding of how social media affects the performance of small and medium-sized businesses (SMEs) in the construction industry.