Context Of Small And Medium-sized Enterprises Research Articles

Formalization of annual performance feedback and employees’ job satisfaction in the SME context

ABSTRACT Human resource management (HRM) practices in small and medium-sized enterprises (SMEs) to increase employees’ job satisfaction are on the rise. Given that SMEs often adopt highly formalized HRM practices of large companies, for example, in the case of annual performance appraisals, we investigate the relationship between the degree of formalization of annual performance feedback and employees’ job satisfaction in the SME context. Using an experimental survey study design (N = 166) in a German SME, we find that employees receiving annual performance feedback with a high degree of formalization report lower job satisfaction directly after the annual performance feedback than those who are still to receive their feedback. In contrast, in the case of annual performance feedback with a low degree of formalization, employees report higher job satisfaction right after the annual performance feedback than employees before the feedback. Moreover, we find that employees’ feedback orientation is an important moderator in this relationship.

The impact of ICT capabilities on supply chain fraud and sustainability – a dynamic capability perspective

PurposeThis study aims to investigate the influence of information and communication technology (ICT) capabilities on supply chain fraud and sustainability within the context of Ghana’s small and medium-sized enterprises (SMEs). Additionally, the research explores the mediating role of supply chain fraud in the relationship between ICT capabilities and supply chain sustainability.Design/methodology/approachData were collected from 102 respondents within Ghana’s SME sector, and the research employed the dynamic capability theory as the conceptual framework. The study utilized partial least squares-structural equation modeling (PLS-SEM) to develop and analyze the proposed model.FindingsThe results of the study reveal a significant reduction in supply chain fraud attributable to enhanced ICT capabilities within Ghanaian SMEs. Moreover, ICT capabilities exert a significant positive influence on supply chain sustainability. Importantly, supply chain fraud emerges as a mediator, elucidating its role at the nexus of supply chain sustainability and ICT capabilities.Originality/valueThis research contributes to the limited body of evidence on the interconnectedness of ICT capabilities, supply chain fraud and supply chain sustainability, particularly within the context of Ghanaian SMEs. Notably, this study pioneers an examination of the mediating impact of supply chain fraud on the relationship between ICT capabilities and supply chain sustainability.

Adoption and performance outcome of digitalization in small and medium-sized enterprises

AbstractDigital transformation has a profound impact on businesses and various implications for firms. While some effectively navigate this digital shift, harnessing the benefits of modern technologies, many small and medium-sized enterprises (SMEs) struggle to seize the opportunities presented by this transformative process, despite its unprecedented potential. Decision-makers within SMEs often grapple with uncertainty surrounding the digitalization process, leading to hesitancy in embracing available technologies. This qualitative study endeavors to address this challenge by exploring the enablers and barriers of digitalization adoption within SMEs, while also assessing its impact on performance. In-depth interviews were conducted with SME managers, with the results revealing that several factors simplify the process of digitization in SMEs, including the appropriate technologies, and a workforce equipped with the right digital skills to use them. Conversely, we identified elements that pose barriers to digitalization, such as the risk-averse culture prevalent in many SMEs, and their reliance on outdated legacy systems. In summary, our research underscores the importance of a strategic interplay of these elements for effective digitization within SMEs. This study sheds light on the intricacies of the digitalization process, while also providing valuable insights into the factors influencing its adoption and the resulting performance outcomes in the SME context.

Sustainable development practices in small and medium-sized enterprises: multiple case studies

Purpose This study aims to understand the sustainable development of small and medium-sized enterprises (SMEs), analysing their current practices in the social, environmental and economic domain. Design/methodology/approach To fulfil this objective, an exploratory, qualitative approach was adopted, using the multiple case study methodology and focusing on eight cases (SMEs) in Portugal. Data were collected through interviews, since this technique allows proximity and interaction with decision makers and those responsible for firms’ sustainability. Findings From content analysis of the interviews held, the results show that SMEs are aware of and committed to sustainability and that the external context and some of its particularities have a significant impact on their sustainable development. These SMEs undertake various practices of a social, environmental and economic nature, highlighting especially environmental ones such as efficient resource consumption, using more sustainable resources, recycling waste and waste management. Practical implications This study contributes greater knowledge of the phenomenon of SMEs’ sustainable development and identifies practical examples that could increase this firm segment’s awareness of the importance of sustainable practices associated with developing their business. Originality/value In this study, new and innovative sustainability practices are presented in the SMEs. The authors can underline that this study contributes to reinforcing the theory about the topic investigated by adding knowledge about sustainable development in the SME context. It deepens knowledge in this scientific area, which can be spread in the scientific community and among SMEs.

Navigating Digital Transformation and Knowledge Structures: Insights for Small and Medium-Sized Enterprises

AbstractIn today’s rapidly evolving business landscape, digital transformation has become synonymous with the strategic integration of cloud computing, mobile internet, social media, and big data. This paradigm shift has reshaped traditional business models, presenting organizational challenges and opportunities. Small and medium-sized enterprises (SMEs), in particular, face a unique set of obstacles as they navigate the complexities of this digital revolution. This research paper delves into the intricacies of digital transformation within the SME context. It acknowledges the significance of this transformation for enhancing core competencies and sustainable development, emphasizing the convergence of business strategy and technological advancement. To provide a comprehensive understanding, this study employs bibliometric analysis using CiteSpace, shedding light on underappreciated procedures, steps, and data related to SMEs’ digital transformation. A systematic literature review extracts a theoretical framework, offering valuable insights and guidance for SMEs operating in an increasingly digitalized business environment. The research contributes to the ongoing global discussion on digital transformation and highlights differences and similarities across various research domains. It identifies thematic clusters such as “Digital transformation of SMEs,” “Industry 4.0,” “Adoption paths,” and “Business model,” revealing trends, themes, and shifts in studying digital transformation in SMEs worldwide. This paper provides a valuable synthesis of previous research accomplishments, offering theoretical implications for academia and practical managerial insights. It emphasizes the importance of collaborative mechanisms and research networks, fostering knowledge exchange and driving innovation in the field of digital transformation for SMEs, both nationally and internationally.

Utilizing blockchain technology in enhancing supply chain efficiency and export performance, and its implications on the financial performance of SMEs

This study examines the intricate relationships among Blockchain Technology utilization, Supply Chain Efficiency, Export Performance, and the Financial Performance of Small and Medium-sized Enterprises (SMEs). The research aims to elucidate the impact of technology adoption on various operational and financial aspects within the SME context. Employing a quantitative research design, data was collected from a diverse sample of SMEs across industries. The relationships were analyzed using statistical techniques, and the hypotheses were tested to uncover the implications of Blockchain Technology integration on SMEs' performance dimensions. The findings reveal that the adoption of Blockchain Technology significantly enhances Supply Chain Efficiency, underscoring its potential for optimizing operational workflows. However, the direct impact of technology on SME Financial Performance is not established, suggesting the importance of a holistic approach to financial growth. Moreover, the positive association between Blockchain Technology and Export Performance highlights the pivotal role of technology in fostering international trade success. Theoretical implications underscore the intricate interplay between technology adoption, operational efficiencies, and financial outcomes in SMEs. Managerially, the study advocates for SMEs to strategically integrate technology within their supply chain management practices to achieve enhanced efficiency and market competitiveness. Limitations include the potential for contextual variations and measurement biases. Future research can delve deeper into the moderating factors that influence the relationship between technology and financial performance in SMEs. The novelty of this study lies in its comprehensive examination of the interrelationships between these factors within the SME context.

SMEs tax minimization as shared responsibility

Prevailing criticism of tax minimization strategies is impacting contemporary business decisions. While extant research has focused on an alleged ‘moral’ shift among large accounting firms and corporates, little is known about tax responsibilities in the context of small and medium-sized enterprises (SMEs). Thus, we examine the following research question: How do SMEs and tax accountants perceive responsibility within the context of taxation? Our empirical investigation involves semi-structured interviews with accountants and their SME clients in Italy. Our findings point to an entanglement of legal, economic, ethical, and philanthropic responsibilities enacted in mundane tax strategy work. We propose a model of ‘shared responsibility’, aiming to clarify the complementary role of SMEs, tax accountants, and state actions in the curtailment of public funding, ultimately affecting the survival of all actors involved. Our work contributes to growing scholarship on business taxation as a form of social responsibility by emphasizing the shared nature of such responsibility, as well as showing how a current reliance on reputational risks to incentivise more responsible tax behaviour is ill suited to the SME context.

Exploring SMEs innovation paths with augmented and virtual reality technologies

PurposeAugmented reality (AR) and virtual reality (VR) are increasingly recognized among technologies potentially driving the digital innovation of small and medium-sized enterprises (SMEs). Nevertheless, the implications of AR/VR adoption in innovation processes have yet to receive much attention to date, with the need to explore the issues facilitating a systematic implementation in the SME context. This study aims to investigate the possible innovation paths of SMEs as a result of AR/VR adoption.Design/methodology/approachThe authors performed a multiple case study research involving six Italian SMEs in manufacturing and service sectors that are investing in AR and/or VR solutions and are digitally innovating thanks to these technologies.FindingsAR/VR solutions lead to different types of innovation in SMEs, i.e. for innovating product or service offerings, business processes or even the business model, when AR/VR extends to the company business logic. SMEs demonstrate being able to leverage internal sources with the essential commitment of top management and low resistance of employees in all kinds of AR/VR-enabled innovations. Conversely, they involve different external innovation sources according to the type of innovation pursued. Organizational issues emerged as more relevant than technological issues.Practical implicationsResults contribute to the literature on digital transformation of SMEs and provide managerial guidance on innovation sources and organizational issues to be considered to effectively deploy AR/VR solutions into specific innovation paths.Originality/valueThis study explores the impact of emergent technologies in the innovation process along with multiple perspectives, degree of complexity, and strategic importance in the SME context.

Winning hearts and minds: the charismatic leader’s role in SME productivity

Purpose This study focuses on exploring charismatic leadership within Lebanese Information Technology (IT) small and medium-sized enterprises (SMEs) and its influence on productivity. Through an in-depth analysis of the charismatic qualities and behaviors exhibited by leaders in these organizations, this research aims to delineate how such attributes may shape productivity levels. This study aims to deepen our understanding of leadership dynamics within the context of Lebanese IT SMEs, providing essential insights that can contribute to the enhancement of organizational performance and success. Design/methodology/approach This fundamental research used a quantitative approach and a purposive sampling method to select 342 Lebanese IT SMEs for primary data collection through a survey. Statistical regression analysis was then applied to treat the collected data. Findings The findings of this study reveal a positive correlation between charismatic leadership and increased innovation behavior among group or board members. This correlation can be strengthened by fostering a sense of ownership toward innovation and by ensuring a healthy work-life balance. Furthermore, the creation of an environment that emphasizes open communication and trust can enhance this correlation. Practical implications The implications of these findings are significant for organizations seeking to enhance their innovation capabilities. They suggest that investing in the development of charismatic leadership skills can be a valuable strategy for fostering innovation and creativity. Originality/value This study offers a unique and practical assessment of the role that charismatic leadership plays in maintaining resilient firm structures, especially during periods of political and economic instability.

Competitiveness and technological capital as determining factors of exports in small and medium-sized companies

This study explores international business integration, focusing on Colombian small and medium-sized enterprises (SMEs). It delves into the crucial aspects of competitiveness and technological capital influencing the export models of these SMEs. Using a questionnaire, responses were gathered from 63 Colombian SMEs exporting to 74 countries with 333 tariff positions. This analysis examines competitiveness factors like innovation, productivity, and business structure, as well as technological capital components such as R&D management, technological processes, and equipment, all tailored to the context of Colombian SMEs. The findings establish a comprehensive model elucidating direct and indirect relationships among these variables. They underscore the importance of strengthening competitiveness elements, particularly the infusion of technology into process and product innovation, alongside productivity and business structure rooted in the value derived from information technologies. Simultaneously, the study highlights the importance of nurturing employees’ physical, financial, and language skills within Colombian SMEs. This study accentuates the pivotal role of investment in technological capital aspects, including research and development management, personnel, and leveraging information technology, especially within Colombian SMEs. These investments are instrumental in augmenting performance and ensuring success in the international business arena. The paper contributes to both theoretical understanding and practical applications in enhancing the international competitiveness of Colombian SMEs.

THE EFFECT OF TECHNOLOGY-ORGANIZATION-ENVIRONMENT (TOE) ON E-COMMERCE ADOPTION AMONG SMES AT MAGELANG REGENCY

The purpose of this study is to investigate and analyze the influence of Technology-Organization-Environment (TOE) factors on the adoption of E-Commerce among Small and Medium-sized Enterprises (SMEs) in Magelang Regency. The research employs regression analysis as the primary method to evaluate the relationships between the independent variables—Technology, Organization, and Environment—and the dependent variable, E-Commerce Adoption. To gather primary data, a questionnaire was utilized as the data collection instrument. The population of interest consisted of 1080 SMEs within Magelang Regency, from which a representative sample of 100 SMEs was selected using the Slovin formula. Subsequently, the collected data was processed using SPSS version 23. The findings of the study demonstrated a positive and significant effect of the TOE factors on E-Commerce Adoption among SMEs in Magelang Regency. This research contributes to a deeper understanding of the dynamics and determinants of E-Commerce adoption in the specific context of SMEs within the mentioned region, highlighting the crucial role of Technology, Organization, and Environment in shaping adoption patterns.
 Keywords: Technology, Organization, Environment, E-Commerce, SMEs

Benefits of Adopting Innovation and Sustainability Practices in Project Management within the SME Context

The economic activity of Small and Medium-Sized Enterprises (SMEs) has become increasingly project-oriented. Given SMEs’ significant role in promoting social and economic well-being, Project Management (PM) has emerged as a crucial tool for fostering innovation and sustainability within these companies and society as a whole. However, there is a gap in the existing literature concerning identifying practices that ensure innovation and sustainability throughout PM within SMEs and the associated benefits of adopting these practices. To address this gap, a comprehensive Systematic Literature Review (SLR) was conducted, gathering articles from reputable databases such as Scopus and Web of Science. In addition, this study seeks to explore the practical, political, and theoretical implications of these findings. The review identified 166 innovation practices, 86 sustainability practices, and 61 benefits, which were categorized based on their primary subject areas. The results of this study contribute to both the academic and practical understanding of the interplay between PM, innovation, and sustainability in SMEs. By identifying these practices and associated benefits, this research provides valuable insights for practitioners and policymakers, enabling them to foster innovation and sustainability within SMEs. In conclusion, this research fills a critical gap in the literature by providing an in-depth analysis of innovation and sustainability practices in the context of PM in SMEs. Also, it identifies that the benefits of adopting these practices extend well beyond economic considerations. The practical, political, and theoretical implications of these findings underscore the importance of integrating PM, innovation, and sustainability for the overall well-being of SMEs and society.

ADHD symptoms of CEOs and business model innovation in the SME context

Considering their typical resource constrains, limited internal capabilities, and heightened dynamism and adaptability, small and medium-sized enterprises (SMEs) are forced to be innovative to secure their competitive advantage. The decision to engage in business model innovation (BMI), especially in the context of SMEs operating in uncertain environments, is strongly dependent upon Chief Executive Officers’ (CEOs) predisposition and personality characteristics. Drawing upon the strategic leadership theory and trait activation theory, we hypothesize that Attention Deficit Hyperactivity Disorder (ADHD) symptoms of CEOs significantly influence BMI activities, particularly under specific conditions. Using a sample of 367 Russian SMEs, we find evidence that CEO gender and CEO tenure intensify the effect of ADHD on BMI. A detailed discussion of our study’s implications for theory and practice in SME settings concludes this article.

Barriers and strategies for implementing lean six sigma in small- and medium sized enterprises (SMEs) in construction industry: a fuzzy TOPSIS analysis

Purpose Quality management barriers have been discovered in construction small- and medium-sized enterprises (SMEs), determining their long-term survival. Despite the recognition of Lean Six Sigma (LSS) as a valuable quality management technique for addressing the barriers faced by SMEs, LSS implementation within the construction SME context is alarmingly low. Therefore, this study aims to investigate the barriers for implementing LSS within construction SMEs and to determine the most effective strategies for overcoming these barriers. Design/methodology/approach A quantitative research approach was used, and data was collected in two stages: a questionnaire survey with 44 construction professionals and an expert opinion survey with 12 LSS specialists. The collected data was then analysed using the fuzzy TOPSIS method, achieving a higher degree of sensitivity. Findings The findings revealed the 15 most significant LSS barriers that need to be addressed. In addition, the ten most important strategies to be implemented in overcoming the identified barriers before LSS implementation were discovered and thematised, most notably the hiring of LSS specialists for project monitoring and the formation of a committee for strategic planning through LSS. Originality/value Previous research on LSS examined barriers and strategies for SMEs in general, but to the best of the authors’ knowledge, this study is the first of its kind, focusing especially on the construction SME context and involving the unique fuzzy TOPSIS approach.

How can lean tools support the innovation process of SMEs?

PurposeAdopting lean principles can unleash several opportunities for firms seeking to increase the efficiency and effectiveness of their product development (PD) process. This study aims to investigate the implementation paths of lean tools in the innovation process of small and medium-sized enterprises (SMEs).Design/methodology/approachA set of 47 lean tools are identified from the literature and ascribed to the five lean thinking principles, i.e. Value, Map, Flow, Pull and Perfection. Their practical adoption – in terms of “when” and “how” – is then explored in a multiple case study of three SMEs in the manufacturing industry.FindingsSMEs adopt multiple lean tools in different phases of their innovation process. They are still at the beginning of the holistic adoption of lean PD, but some core lean tools, such as A3 reports and visual management, are adopted systematically. Results reveal that specific sets of lean tools and supporting principles are more valuable in certain phases of SMEs innovation process. Specifically, the lean tools concerning the principle of Value and Map can enable the phases of Innovation inputs, Concept development and Solution implementation; the ones ascribed to Flow and Pull the phases of Concept development, Testing and experimentation, and Solution implementation; the Perfection tools to the final phases of Testing and experimentation, Solution implementation and Market introduction.Practical implicationsResults provide a reference for SMEs already adopting lean tools in their production process to be extended to the PD process, especially when the delivery of new products is pivotal. Innovative SMEs could evaluate the introduction of specific lean tools in one or more definite phases of their PD process.Originality/valueThe study contributes to the literature on the complementarity between lean and innovation by studying the context of SMEs with a process perspective, thus unveiling the potential paths of a widespread application of lean innovation in SMEs.

Entrepreneurial alertness as a determinant of success in the SME context: a qualitative study

Purpose This study aims to understand whether entrepreneurial alertness is a relevant determinant in creating opportunities in the context of small- and medium-sized enterprises (SME). Design/methodology/approach To this end, qualitative research was undertaken, specifically the case study method. The study context was formed of four SMEs (cases) located in an inland region of Portugal. The data-collecting instrument was an individual interview held with the owners managers of the chosen firms, and the data treatment technique was content and thematic analyses. Findings The results obtained reveal that entrepreneurial alertness is always present in the SME entrepreneurs/business people’s daily lives and clearly creates good business opportunities not yet observed by the competition. Practical implications This study seeks to help SME owners managers to understand the phenomenon of entrepreneurial alertness and understand the importance of this determinant for their firms’ success. Originality/value This study is innovative as it helps to characterise and understand entrepreneurial alertness by showing its importance for SMEs in creating valuable opportunities and achieving success.

Strategic use of social media in marketing and financial performance: The B2B SME context

While the strategic use of social media (SM) for enhancing firm performance has attracted much attention, little is known about it through the lens of business-to-business (B2B) small and medium-sized enterprises (SMEs). Building on the market-driven view and the dynamic capabilities view of competitive strategy, we examine SM use in a framework of market-sensing and customer-linking capabilities that influence firm performance. Our research model posits that market orientation stimulates SM use to enhance market-sensing capability thereby facilitating two customer-linking capabilities, namely customer relationship management and brand management, which collectively contribute to greater marketing performance and financial performance. Our research model is empirically tested using a survey of 143 UK B2B SMEs. The findings broadly support our theorization in which the strategic use of SM, an essential part of market-sensing capability, enhances customer-linking capabilities. Interestingly, although SM use influences brand management capability, its suggested influences on both customer relationship management capability and marketing performance occur only through the mediation of brand management capability. Both customer-linking capabilities positively influence marketing performance and in turn financial performance. Our findings provide novel conceptual and empirical advancement of how market-centric B2B SMEs strategically use SM to enhance their market-sensing and in turn customer-linking capabilities, and hence firm performance.

Agility-based knowledge management method for small and medium-sized enterprises

ABSTRACT Knowledge is a vital asset for organisations. It requires organisations to consider Knowledge Management (KM) activities in their processes. Nowadays, KM is relatively well applied in large organisations, but various constraints are faced by Small and Medium-sized Enterprises (SMEs). This article aims to define an agility-based KM method for the SME context. A lot of research has been performed in the direction of facilitating knowledge sharing in agile projects, while our research aims to present an original and concrete KM method for SMEs by integrating agility principles. We point out that (i) the KM combined with Agile Scrum practices could adapt to SMEs’ specificities, and (ii) SMEs present several positive specificities for the agile-based KM implementation. An application of the method is built in collaboration with Axsens-bte, a SME company specialising in consultancy and training in the supply chain and industrial methods.

Market-based organizational learning, pricing capability and business performance: the moderating effects of coordination mechanism and environmental dynamism

Purpose This study aims to present a conceptual framework for understanding the dual orientations of market-based organizational learning (MBOL), namely, market orientation (MO) and learning orientation (LO), in the development of pricing capability (PC) with the goal of improving business performance (BP). This framework further explores the moderating effects of coordination mechanism (CM) and environmental dynamism (ED) on the PC–BP link and the mediating role of PC on the relationship between MBOL and BP. Design/methodology/approach This study applied the partial least squares structural equation modeling on survey data from 298 Indian small- and medium-sized enterprises (SMEs) operating in manufacturing and service sectors. Findings The findings indicate that MBOL significantly contributes to PC development, which in turn improves BP. Interestingly, PC acts as a partial mediator in the MO–BP link, as well as LO–BP link. Moreover, CM and ED strengthen the effect of PC on BP. Finally, MO and LO have substantial and distinct effects on PC and BP. Research limitations/implications This study examines only one market-related capability, i.e. PC, considers multi-industry SMEs rather than specific large industries and uses cross-sectional instead of longitudinal data. Practical implications These findings are crucial from managerial standpoints because SMEs need to understand the MBOL dimensions, including MO and LO, and their significance in improving PC and BP. Originality/value Understanding how MBOL adoption contributes to superior performance is critical, but research in the SMEs context is still lacking. This study addresses a research gap by examining the impact of MBOL on BP, both directly and indirectly, through PC in the context of SMEs.

Machine Intelligence and Autonomous Robotic Technologies in the Corporate Context of SMEs: Deep Learning and Virtual Simulation Algorithms, Cyber-Physical Production Networks, and Industry 4.0-Based Manufacturing Systems

This study examines Industry 4.0-based technologies, focusing on the barriers to their implementation in European small- and medium-sized enterprises (SMEs). The purpose of this research was to determine the most significant obstacles that prevent SMEs from implementing smart manufacturing, as well as to identify the most important components of such an operationalization and to evaluate whether only large businesses have access to technological opportunities given the financial complexities of such an adoption. The study is premised on the notion that, in the setting of cyber-physical production systems, the gap between massive corporations and SMEs may result in significant disadvantages for the latter, leading to their market exclusion by the former. The research aim was achieved by secondary data analysis, where previously gathered data were assessed and analyzed. The need to investigate this topic originates from the fact that SMEs require more research than large corporations, which are typically the focus of mainstream debates. The findings validated Industry 4.0′s critical role in smart process planning provided by deep learning and virtual simulation algorithms, especially for industrial production. The research also discussed the connection options for SMEs as a means of enhancing business efficiency through machine intelligence and autonomous robotic technologies. The interaction between Industry 4.0 and the economic management of organizations is viewed in this study as a possible source of significant added value.