Small And Medium-sized Enterprises Companies Research Articles

Application of Logistic Regression to Analyze The Economic Efficiency of Vehicle Operation in Terms of the Financial Security of Enterprises

Background: A measurable feature of the efficiency of vehicle use in transportation companies is the revenue from transport orders, which has a significant impact on their profitability. Therefore, it is important to skillfully analyze the parameters related to the operation of vehicles and their impact on the bottom line. Transportation companies, when managing their operations, take steps to reduce operating costs. The above makes a large number of studies available in the literature on the analysis of vehicle damage or wear of system components, as well as ways to predict them. However, there is a lack of studies treating the impact of the parameters of specific orders on economic efficiency, which is a research niche undertaken in the following study. Methods: The purpose of this article was to analyze the economic efficiency of vehicle operation in terms of the financial security of enterprises. The main research problem was formulated in the form of the question of how the various parameters of a transport order affect its profitability. During our study, critical analysis of the literature, mathematical modeling and inference were used. A detailed analysis of transport orders executed by SMEs (small and medium-sized enterprises), which are characterized by a fleet of light commercial vehicles with a capacity of up to 3.5 t, was carried out in the FMCG (Fast-Moving Consumer Good) industry in Poland in 2021–2022. Due to the binary variable form, a logistic regression model was elaborated. The estimated parameters of the model and the calculated odds ratios made it possible to assess the influence of the selected factors on the profitability of orders. Results: Among other things, it was shown that in the case of daily vehicle mileage, the odds quotient indicates that with each additional kilometer driven, the probability of profitability of an order increases by 1%. Taking into account the speed of travel, it is estimated that with an increase in its value by 1 km/h, the probability of profitability of an order decreases by 3%. On the other hand, an increase in cargo weight by 1 kg makes the probability of a profitable order increase by 9%. Conclusion: Through this study, the limited availability of low-cost analytical tools that can be applied during transportation fleet management in SME companies was confirmed, as was the use of simple and non-expansive mathematical models. At the same time, they are not “black boxes” and therefore enable drawing and implementing model conclusions into operations. The results obtained can help shape the overall strategy of companies in the area of vehicle operation and can support the decision-making process related to the management of subsequent orders, indicating those that will bring the highest profit. The above is very important for SME companies, which often operate on the verge of profitability.

Sustainable Development towards Openness SME Innovation: Taking Advantage of Intellectual Capital, Sustainable Initiatives, and Open Innovation

The issues of the relationship between the innovative maturity of enterprises, the orientation of small- and medium-sized enterprises (SMEs) to the principles of sustainability, and the expansion of their participation in sustainable development with business efficiency are very important and interesting. In this case, it is important to find a good balance between a policy that focuses on sustainable development and businesses’ needs. This will help SME companies be as efficient as possible and have the least amount of impact on the environment. This is especially important for countries where small- and medium-sized businesses are the main driving force of the country’s economy. This research aims to examine how the conceptualizations of intellectual capital (e.g., relational capital, social capital, and structural capital) affect open innovation and sustainability-oriented initiatives to foster open sustainability innovation for small- and medium-sized businesses. Using structural equation modeling based on second-order factor analysis, survey data were collected from 481 SMEs in Thailand. Intellectual capital in SMEs enhances opportunity recognition in SMEs to develop open sustainability innovation, while sustainability-oriented initiatives and an open innovation strategy should be well-placed. SMBs and business policymakers should pay attention to the idea of intellectual capital in terms of socio-rational resources, in which open sustainability innovation projects could be developed through sustainable cooperation.

KMD Quest-SW: A Diagnosis of Knowledge Management Addressed to Software Industry SMEs

The software industry depends intensively on its actor’s knowledge to develop its products. This knowledge is crucial to leverage innovation and market sustainability within the software industry companies. Knowledge Management (KM) processes are accomplished in the small- and medium-sized software industry companies daily, however, sometimes not formally. This paper proposes a questionnaire aimed to diagnose KM in small- and medium-sized enterprises (SME) of the software industry, namely, KMD Quest-SW. The KMD Quest-SW was designed to fill up the gap of KM diagnosis in SME in the software industry. The KMD Quest-SW has 46 statements distributed in six dimensions: so-called creation process, registration process, knowledge sharing, knowledge use, innovation process, and knowledge in the software industry. From the software industry perspective, our proposal appears as a promising tool to diagnose and map the knowledge flow in SMEs. From a scientific perspective, the questionnaire breaks new grounds for KM theoretically and practitioners to be adapted for other SME companies interested in KM.

Factors Affecting Employees Work Engagement in Small and Medium-Sized Enterprises.

Background: Improving the labor productivity of small and medium-sized enterprises (SMEs) is essential because of the aging population and predicted reduction in the labor force. Therefore, it is necessary to ensure that employees are in good health to work for long times. In this regard, the purpose of the study is to investigate the relationship between work engagement (WE) and related variables among SME employees. Methods: A cross-sectional study was conducted using the baseline data of the prospective cohort study, which included 377 employees from three SMEs headquartered in Hiroshima Prefecture, Japan. Results: A multiple regression analysis was performed to see the associations between Utrecht Work Engagement Scale (UWES) scores and other variables. Significant associations were found with job satisfaction, age, health literacy (HL), and quality of sleep (all, p < 0.05). Additionally, there was a statistically significant difference observed in WE, quality of sleep, concern for own body, job satisfaction, and family life satisfaction (all, p < 0.001) with respect to high and low HL levels. Conclusions: The results of this study reveal that while implementing health and productivity management in SMEs to increase WE, it is best to concentrate on raising HL, job satisfaction, and sleep quality. To increase generalizability, further research could be conducted with more SMEs companies.

Digital training for psychosocial risk assessment as an approach to foster primary prevention for SMEs: An evaluation study.

Rapidly changing stressful working conditions put new challenges on mental health in future work, especially for small- and medium-sized enterprises (SMEs) which need to be addressed on an organisational level. To promote, secure and sustain a healthy workforce in the long run, primary prevention of psychosocial risks is needed. Still, 70% of EU companies and over 85% of German SMEs lack the legally required implementation of psychosocial risk assessment (PRA) in their occupational safety and health (OSH) management. The aim of the study was to evaluate the digital training PsyHealth worXs! as a suitable approach to teach OSH stakeholders how to conduct PRA. We conducted a longitudinal evaluation study with two measurement times in the first and last week of the digital training based on N = 312 questionnaires. After the training, participants' knowledge of the PRA process was significantly higher, and they felt significantly more competent to derive OSH interventions. Overall, the process of PRA and the involvement of stakeholders were perceived as significantly easier. Results suggest that the digital training provides an easily accessible opportunity for SMEs to successfully enable their OSH management to implement PRA strategies. Future research will have to evaluate the overall long-term implementation increase of PRA in German SME companies.

ЗАКУПКИ СТРАХОВЫХ УСЛУГ У СУБЪЕКТОВ МАЛОГО И СРЕДНЕГО ПРЕДПРИНИМАТЕЛЬСТВА КАК ФАКТОР РИСКА

The article considers the problems of purchasing insurance services from small and medium-sized enterprises (SMEs). The trends of reduction in the number of insurers in Russia (including representatives of SMEs) in 2016-2022 are analyzed. The types of licenses are considered, conclusions are drawn about the single presence of SME representatives in the segments of compulsory motor liability insurance (CTP), compulsory civil liability insurance of the owner of a dangerous object for causing harm as a result of an accident at a dangerous object (OSOPO) and life insurance or a limited number – in other types. The risks associated with the conclusion of insurance contracts with SME companies are analyzed in terms of causes, consequences and measures that can both reduce the risks of receiving substandard services and reduce the severity of negative consequences. Assumptions are made about further developments of the SME segment in the insurance industry

Analysing trademark and social media in the fashion industry: tools that impact performance and internationalization for SMEs

PurposeThis research investigates the role that having a trademark and a social media presence play in the development of international activities as well as their influence on performance for small and medium-sized enterprises (SMEs) operating within the fashion sector of the United Kingdom and Ireland.Design/methodology/approachQuantitative analysis was carried out by integrating information from several data sources. The hypotheses proposed in the authors’ research model are tested on a sample of 102 SMEs, applying bivariate analysis and variance-based structural equation modelling (partial least squares).FindingsBased on the authors’ empirical evidence, the fashion SMEs could improve their performance through two important marketing tools: registered trademark and social media. On the one hand, SMEs with a registered trademark are more present in the international markets, and it also implies higher performance. On the other hand, there is no significant relationship between SMEs with social media and a presence in international markets.Originality/valueThe aim of this paper is to investigate the effect of trademark and social media participation on firms which varies depending on what managers of fashion-related SME companies want to prioritize. Hence, these two marketing tools could be useful for managers to decide on what resources to invest, to register a trademark or to be present in social media, subject to their firms' strategy and objectives.

Investigating the Security Divide between SME and Large Companies: How SME Characteristics Influence Organizational IT Security Investments

Lagging IT security investments in small and medium-sized enterprises (SME) point towards a security divide between SME and large enterprises, yet our structured literature review shows that organizational IT security research has largely neglected the SME context. In an effort to expose reasons for this divide, we build on extant research to conceptualize SME-specific characteristics in a framework and suggest propositions regarding their influence on IT security investments. Based on 25 expert interviews, emerging constraints are investigated and validated. Our findings imply that several widely held assumptions in extant IT security literature should be modified if researchers claim generalizability of their results in an SME context. Exemplary assumptions include the presence of skilled workforce, documented processes or IT-budget planning which are often un(der) developed in SME. Additionally, our study offers context-specific insights regarding particular effects of identified constraints on IT security investments for all involved stakeholders (researchers, SME, large enterprises, governments).

ISLAMIC VALUE OF INNOVATIVE PERFORMANCE IN SMALL AND MEDIUM-SIZED ENTERPRISES: CONCEPTUAL REVIEW OF FATHANAH

Small and medium-sized enterprises (SMEs) contribute to the national economy. It follows to increase in market potential. Innovation has an important role in various business competitions. However, innovative performance has not been completely implemented by SME companies. This research offers the concept of fathanah in innovative performance in SMEs. The research method is a review of the literature on SME innovative performance. This study explains the innovative performance of SMEs with six concepts; process innovation, product innovation, management innovation, organizational innovation, marketing innovation, and technological innovation. The concept of fathanah in innovative performance in SMEs with dimensions of intelligence; intellectual quotient (IQ), emotional quotient (EQ), and spiritual quotient (SQ). This paper applies a conceptual approach. The limitations of this paper are that the dimensions mentioned have not been empirically tested. In addition, there may also be other dimensions of Islamic values related to innovative performance apart from the concept of fathanah. However, the fathanah concept is expected to be applied in innovative performance to develop SMEs.

Evaluation of proceedings for SMEs to conduct I4.0 projects

For the digital transformation of their business, companies conduct specific change projects. In comparison to large companies, small and medium-sized enterprises (SME) have specific constraints, e.g. limited resources. Many proceedings are now available to support SMEs in their transformation process towards industry 4.0 (I4.0). The current scientific state of affairs is presented by a literature review and the publications are evaluated in their applicability for SMEs. The work was carried out in the research project OBerA, which aims to support companies in the metalworking industry in the digitalization of their system landscape. The project consortium consists out of five SME companies from the region of Franconia in Bavaria and Siemens as technology partner. It is carried out that existing proceedings still have drawbacks and further researchwork is needed.

Factores Competitivos De Éxito: Un Estudio De Las Pymes En El Estado De Hidalgo, México

This paper focuses on the influence that small and medium-sized enterprises (SMEs) have on the economy in terms of generating employment and wealth. It also identified the problems that was derived from the limitations generated due to their size and the environmental aggressions in which they were developed. In this sense, the study of its characteristics in terms of strategy, performance, competitiveness, problems, and professionalization is of significant importance to its growth and permanence. To this end, this study aims to determine different strategic factors that SMEs must develop to ensure their competitiveness and performance. Based on a quantitative study of SME companies located in the state of Hidalgo, Mexico, some factors related to competitive performance were identified. Essentially, it was observed that SMEs of larger size and age, which are linked to other actors and that make use of strategic management tools as well as information and control systems, are competitively successful.

Towards sustainability? Forest-based circular bioeconomy business models in Finnish SMEs

In line with the Sustainable Development Goals of the UN 2030 Agenda, the circular bioeconomy concept is gaining greater political momentum and research interest. A circular bioeconomy implies a more efficient resource management of bio-based renewable resources by integrating circular economy principles into the bioeconomy. These ideas have been well received at industry level since they are deemed to foster cost reductions, innovation and competitiveness. While recent scientific literature has dwelt on sustainability-related circular business models, empirical research on company-level implementation is only just emerging. Our study contributes to addressing this research lacuna by seeking answers to two questions: 1. How do small and medium-sized enterprises (SMEs) propose, create and deliver, and capture value through circular bioeconomy business models?; and 2. What are the business challenges and opportunities related to the operationalization of such business models? To this end, we employed content analysis on interview data gathered from managers in Finnish SME companies from the field of packaging, textiles, composite materials, cosmetics and pharmaceutical products. We outlined the main business model archetypes, and identified the key characteristics that enable value capture and delivery for various stakeholders. The contribution of this study is duly two-fold. From the perspective of a theoretical contribution, we expand and refine the conceptualization of sustainable circular bioeconomy and related business models. In addition, based on our findings, we provide insights and recommendations for researchers and policy-makers to advance the sustainability transition to a circular bioeconomy in the context of the forest-based industry, and for the management of SMEs to reflect on company viability and growth.

EXPLORING POLITICAL ENVIRONMENT AND NATIONAL CULTURE IMPACT ON INTERNATIONALIZATION READINESS OF SMES

The purpose of this study is to examine the influence of Political Environment and National Culture on Internationalization Readiness. The Smart-Partial Least Squares (PLS) analysis was used as to investigate the research model based on the survey of 60 Small and Medium-sized Enterprises (SMEs) from various industries which include companies in pharmaceutical, technological, electronic and foods and beverages in Klang Valley, Malaysia. The results supported the effects of two exogenous variables toward endogenous variable (Internationalization Readiness). Since the samples were limited to some SME companies in Klang Valley, Malaysia, the results of this study can only achieve theoretical generalization. Statistically, this study may prove not to be generalizable to the sample and should be confirmed using larger samples.

Predicting Business Distress Using Neural Network in SME-Arab Region

The paper analyzes the financial and operational measures for Small and medium-sized enterprises (SME) business distress for predicting credit worthiness by using panel data of 110 observations from 22 SME companies for a period of 5 years (2009 – 2013). Panel logistic and Neural Network (NN) models are developed as alternative techniques for predicting the business distress. The result suggests that cash cycle, net fixed assets, and leverage ratio are key factors in making credit decisions by lenders. The logistic model overall correctly classified 70 percent while NN framework outperformed the logistic model with 93 percent overall correct classification in training phase, and 83 percent in testing phase. The study opens up potential opportunities for the lending firms to adopt advanced analytical frameworks for predicting distress behavior of business firms.&#x0D; Keywords: SME, Business distress, Arab region, Petrochemical sub-sectors, Logit Model, Neural Network. &#x0D; JEL codes: G29, G32

Requirements for the Design of Flexible and Changeable Manufacturing and Assembly Systems: A SME-survey

Increasingly complex market dynamics due to unpredictable forecasts and shorter innovation cycles require maximum flexibility from production companies and their manufacturing systems. A manufacturing system should not only produce high-quality products at the lowest possible price; it should also be able to react quickly to market changes and consumers preferences. After the implementation in large enterprises belonging to the automotive sector and other related sectors, the concept of flexibility and changeability has been introduced in small and medium-sized enterprises (SME). In recent years, the concept of flexibility and changeability was object of research and industry. Current research in manufacturing pays great attention to flexibility and changeability in manufacturing and assembly systems. Therefore, research and investigations are needed to analyze the requirements for the design of flexible and changeable manufacturing and assembly systems in SMEs in order to define simple and practically suitable design guidelines. This research analyzes the nature of environmental changes, which SMEs are currently facing, due to a questionnaire-based survey. This research paper summarizes the results of the survey, executed with 27 SME companies in North Italy, showing the main requirements for the design of flexible and changeable manufacturing and assembly systems.

Internationalization Decision of a Born Global: the Case of Information Technology Companies

Internationalization of companies is becoming a necessity in order toplay an active role in the market and maintain a competitive advantage. A rapidrise of small and medium sized enterprises (SMEs) in international levelinterpreted like born global phenomenon.Born global companies operating trajectory is characterized by therapid expansion outside the country, as soon as possible after theestablishment of the company. Dynamism, orientation to technology,entrepreneurship and flexibility helps to gain a competitive advantage againsttraditional companies. Partnerships and networking becomes internationalizationaccelerators of born global companies. Accordingly decisioninternationalization of born global companies are especially relevant in today'sresearch.The article presents a framework which shows how born global companiesinternationalize their activities. The framework was approved in Lithuanianinformation technology companies. The results of the empirical researchrevealed the expression of the internationalization decisions making ofLithuanian SMEs companies. Theoretical and empirical results are beneficial forborb global SMEs seeking to internationalize their activities. DOI: http://dx.doi.org/10.5755/j01.ss.80.2.4644

The Determinant of Capital Structure of SMEs in Malaysia: Evidence from Enterprise 50 (E50) SMEs

Capital structure have implications in determining the ability and success of a firm, especially to small andmedium-sized enterprises (SMEs). This paper analyses the capital structure of SMEs in Malaysia focusing onEnterprise 50 (E50) SMEs. E50 is an annual awards program initiated by government and organized by SMECorporation & Deloitte Malaysia since 1997 to recognize the 50 best SME companies in Malaysia based on theirperformances and potential to succeed. The secondary data from Companies Commission of Malaysia has beencollected for the study. The study employed regression analysis on 334 companies, utilised the accounting datafor the five year period of 2005 to 2009. Capital structure is the Dependent Variable referring to debt ratio of thecompanies, decomposed into Long Term Debt ratio and Short term Debt ratio. The Independent Variables (IV)are age; size; tangibility; liquidity; profitability; growth and taxation. Two theories of capital structure haveguided this study i.e. the Trade-Off Theory and the Pecking Order Theory. The study found that size is importantif we decomposed the debt into longand short term. In addition, asset tangibility, liquidity and profitability arethe main capital structure determinants for SMEs. Age and growth are important for a long term, while taxationis not an important consideration in capital structure decision.

A core reference ontology for the customer relationship domain

Customer Relationship Management (CRM) has emerged as an important strategy that companies should implement in order to build profitable and stable relationships with their customer. The domain of CRM has peculiar characteristics: a CRM strategy is largely independent from the specific market sector, it requires multiple units cooperation, it implies the management of a huge amount of knowledge, it is fruitfully supported by software solutions, and finally it implies the integration of human and machine activities. These characteristics suggest that both companies aiming at implementing an efficient CRM strategy, and software houses offering ICT solutions supporting CRM would take great advantage from a common semantic model of CRM. The main contribution of this paper is thus the proposal of O-CREAM-v2, a core reference ontology lbr the CRM domain, specifically targeted to Small and Medium Sized Enterprises (SME). The design of O-CREAM-v2 has been based on requirements mainly elicited from a domain analysis, which considered the way the involved actors talk about CRM within their business, by analyzing documents and interviews with representatives of SME and ICT companies. Moreover, in order to guarantee accuracy in the definition of the basic concepts and to support interoperability within/between companies, O-CREAM-v2 has been developed within the framework provided by the well-known DOLCE foundational ontology, together with three DOLCE extensions, i.e. the ontology of Descriptions and Situations, the Ontology of Intbrmation Objects and the Ontology of Plans. O-CREAM-v2 is composed by two layers: an upper core, which models more general concepts and relations, and can be useful also in business domains other than CRM, and a lower core, representing concepts and relations specific to the CRM domain. The content requirements defined by the domain analysis pointed out that an ontology for the CRM domain has to account for both particulars (such as activities, otters, sales, etc.) and information about them (customer records, reports about sales, etc.). Moreover, since CRM is typically supported by software tools, O-CREAM-v2 includes the formal characterization of software applications. Thus, O-CREAM-v2 is structured into five modules: Relationships, Knowledge, Activities (all three spanning both the upper and the lower core), Software and Miscellaneous (both limited to the upper core). The five ()-CREAM modules arc described in details in the paper. The discussion is concluded by mentioning two possible exploitation perspectives for O-CREAM-v2, which could be the basis for building: (a) Web-based repositories supporting the mediation between supply and demand of CRM-related tools; (b) tools supporting users in building the formal representations of resources in ontology-based IR systems and in the semantic search engines application field.

Aligning teaching and practice: a study of SME marketing

PurposeThis study aims to explore the role of marketing in small and medium‐sized enterprises (SMEs) and to consider how amendments can be made to the UK higher education (HE) teaching curriculum to inform marketing teaching and learning around a small business context.Design/methodology/approachA qualitative, exploratory approach using semi‐structured in‐depth interviews amongst ten owners of SMEs in the East Midlands region of the UK was used.FindingsMarketing in SMEs is centred on customer engagement, networking and word of mouth communication. HE academic institutions should take account of these findings and work towards introducing SME‐specific marketing material in its teaching and learning curricula.Research limitations/implicationsThis study uses a small number of SME companies in one region and therefore the generalisability of the findings may be limited. Further research could extend the number of SME companies and to other regions of the UK.Practical implicationsThe findings have a bearing on the UK HE marketing curriculum. This study offers insights into how the marketing curriculum in HE needs to be adapted in light of the findings to ensure marketing graduates are equipped to enter SME employment.Originality/valueStudies aligning how marketing in SMEs is practiced compared to HE teaching curriculum are limited. This research contributes to the body of literature by further exploring the characteristics and marketing activities of SMEs and highlighting the need to align teaching and practice of marketing in UK HE institutions.

Proposition of Framework for Quality Working Environment Based on Sustainable Design in Small Manufacturing Enterprises

Quality improvements are implemented through various systems, techniques and tools in a company. The implementation of quality initiatives are commonplace in large companies rather than the smaller ones. Small and medium-sized enterprises (SMEs) are usually constrained by their size, expertise and financial resources. Nevertheless, it is important for them to improve their quality of physical work setting and working environment to sustain a competitive advantage. 5S is one of the most widely adopted techniques for industrial housekeeping and, in improving the quality of workplace environment. Since the cost of the development and implementation is one of the main constraints for 5S program at workplace in SMEs, the sustainable design concept shall be adopted. As the main part of the research work, a conceptual model of continuous improvement initiative for quality working environment within small and medium-sized manufacturing companies was developed and proposed. The focus of this research study is on the aspect of how to implement the 5S practices by incorporating sustainable design for improving a quality workplace environment and reducing the environmental impacts through a comprehensive approach. Finally, conclusions are drawn and suggestions made for further research in SME companies.