Small And Medium-sized Enterprises Entrepreneurs Research Articles

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.

Awakening the giant within: turning SME’s survival strategy into improved performance

Purpose This study aims to examine the positive impact of strategies on the viability of small and medium-sized enterprises (SMEs) in times of crisis. Specifically, it investigates the influence of resource utilization as an initial survival strategy on innovation practices and SMEs’ performance. It further assesses the potential impact of government aid and partnerships on the relationship between resource utilization and innovation. Design/methodology/approach This study used a mixed-method approach that integrates phenomenology and quantitative research. This phenomenological study conducted in-depth interviews with 23 SME owners. Based on qualitative findings, a quantitative research design was developed, and this study surveyed 352 SMEs. Structural equation modeling was used for hypothesis testing. Findings Resource utilization as an initial survival strategy has a positive effect on increasing organizational innovation practices and ultimately affects business performance. Furthermore, government support and external partnerships significantly enhance the relationship between resource utilization and innovation. Practical implications The COVID-19 pandemic brought a crisis for businesses but has provided many positive transformations. SME entrepreneurs should sustain their survival strategies and seize external support to enhance their potential. Due to the pandemic, various efforts have created innovations, honed business resiliency and increased competitiveness. Originality/value SMEs struggled with the crisis and responded by utilizing many retrenchment strategies. This study is among the first to provide empirical evidence of an emergency response that has resulted in fruitful impacts. The findings can be generalized to represent the behavior of SMEs, especially in emerging countries.

Analysing the decision approach of the SME entrepreneurs relating to internationalisation of firms: the study of Kenyan SME entrepreneurs

PurposeThe purpose of this study is to analyse the internationalisation decision-making process using causation and effectuation.Design/methodology/approachThe proposed hypotheses are tested with a survey data set of 148 Kenyan small and medium-sized enterprises (SMEs) to assess the pre-internationalisation decision-making of the firm. Multinomial logistic regression has been used to predict the categories from total effectuation to total causation.FindingsThe results of this study show that firm resources and capability provide a solid basis for firms' internationalisation. The entrepreneur becomes more effectual commence as they assess the firm's resource and capability. Entrepreneurs with a high entrepreneurial self-efficacy use both causation and effectuation with a bias towards effectuation. Increasing environmental predictability led the firms to use less effectuation, and increasing psychic distance entails high effectuation relative to high causation in the Kenyan context.Research limitations/implicationsThe sample choice of the category is Kenyan SMEs which may raise some questions. This study assumed that SMEs sampled had the same level of internationalisation experience regardless of the number of years in business.Originality/valueThis study theoretically advances the field of international business by combining the Uppsala internationalisation model with effectuation; this study defines four antecedents of decision-making to form its conceptual framework to study internationalisation decision-making approach for SMEs using the effectuation logic and adds to the stream of literature that has reviewed the factors that influence the internationalisation decision-making process for SMEs in developing countries.

Towards financing the entrepreneurial SMEs: exploring the innovation drivers of successful crowdfunding via a multi-layer decision-making approach

PurposeIn this research, extracting the innovation drivers of successful crowdfunding from the literature review, screening them for the entrepreneurial small- and medium-sized enterprises (SMEs), analysing the cause-and-effect relationship amongst them and presenting a basic causal conceptual model and eventually determining the importance/weight of each relevant driver were the primary purposes of this research. As a result, the authors have also designed a score function to measure the future innovative crowdfunding score for SMEs.Design/methodology/approachA multi-layer multi-criteria decision-making (MCDM) approach has been designed and employed to achieve research objectives. After extracting the initial list of drivers, Fuzzy Delphi was applied to screen the relevant innovation drivers of successful crowdfunding for entrepreneurial SMEs. Decision-making trial and evaluation laboratory (DEMATEL) was used to analyse the cause-and-effect relationship amongst the drivers and illustrate a basic conceptual model. Analytical network process (ANP) and Stepwise Weight Assessment Ratio Analysis (SWARA) were applied to determine the importance of the drivers and by aggregating them to measure the innovative crowdfunding score.FindingsInitially, 28 innovation drivers of successful crowdfunding were extracted from the literature. Then by employing the first-round Delphi fuzzy method amongst 15 international entrepreneurs in SMEs, the relevant drivers, including eleven items, were screened and selected. Then by implementing the DEMATEL method, the relationship amongst these screened drivers was identified, and seven drivers were determined as causes and the rest as effects. Subsequently, a conceptual model based on the causal analysis of the drivers from the DEMATEL method was designed. Eventually, by aggregating the weight of drivers emanated from SWARA, DEMATEL and DANP, the score function for measuring the situation of an SME was designed.Practical implicationsAccording to the crowdfunding scores in this research from entrepreneurs of SMEs, influential factors in developing countries were recognised as two times more prominent in developing countries. This might be rooted in the circumstances of developing countries where many startups and SMEs are emerging in vast areas and different fields due to investment in innovation management. In these countries, the authorities and officials support these companies to empower their capabilities and innovative ideas to (1) deal with the severe competitive market and (2) benefit from them as potential economic engines. Therefore, crowdfunding platforms and public initiatives can be considered one of the most effective government supports, which may involve financial risks.Originality/valueTo the best knowledge of the authors, investigating the innovation drivers of successful crowdfunding via quantitative analysis by multi-layer decision-making approaches has not been considered previously. Moreover, the authors have designed a crowdfunding score function to determine the situation of an entrepreneurial SME in this area. A combination of different MCDM methods, including Fuzzy Delphi, SWARA, DEMATEL, ANP and DANP, to investigate the innovation drivers of successful crowdfunding in SMEs has not been considered previously.

Preserving Heritage of Humanity: A Systematic Study of the Pandemic Impacts and Countermeasures of the SMEs

This study explores the most significant changes experienced by small- and medium-sized enterprises (SMEs) in Indonesia during the COVID-19 pandemic. It reveals the SMEs’ strategies to survive and prosper amid the crisis. These actions are becoming increasingly invaluable and crucial for entrepreneurs in the heritage of humanity, such as Indonesian batik, who must stay in business to preserve national culture. This study conducts a systematic literature review of 42 relevant articles published between 2020 and the present and furthers the investigation using the Most Significant Change technique, involving in-depth interviews with 15 SME entrepreneurs. The results show that Indonesian batik SMEs struggled during the pandemic and experienced at least a 70% revenue reduction. Those who survived implemented retrenchment, persevering, and innovation strategies to achieve their short- and long-term goals. A temporary exit strategy was also applied in which business actors engaged in a different, more profitable business while awaiting normalcy. This study also found that true entrepreneurs’ qualities, namely creativity and resilience, emerge in exceptionally difficult business situations.

Positioning in SMEs: entrepreneurs’ perceptions and strategies

Purpose The concept of positioning is fundamental to how a company approaches and succeeds in a market. Despite a growing body of literature on positioning, existing research has focused mainly on larger companies and brands. This paper aims to apply the concept of positioning to small- and medium-sized enterprises (SME) companies to explore how SME entrepreneurs understand and approach the positioning of their company, and what differences exist compared to large companies and brands. Design/methodology/approach Using a qualitative research approach, this study is based on focus groups involving 13 SME entrepreneurs. The data were analyzed using a qualitative structuring content analysis, which resulted in a newly developed and empirically based typology of SME positioning strategies. Findings The results indicate that SME entrepreneurs view positioning as highly relevant but differ from larger companies in terms of market and brand orientation. Building on the interviews, an empirical matrix of four positioning strategies was developed which SME entrepreneurs typically use: specialization, differentiation, conviction and opposition. Practical implications Based on the developed positioning typology, this study proposes a two-step approach for SME entrepreneurs: gaining clarity on the basic positioning dimensions and exploring four strategic fields of action. Originality/value Overall, the findings contribute to a better understanding of SME entrepreneurs' positioning strategies as important building blocks for market and brand success. The new positioning typology provides a conceptual contribution for further research in the marketing/entrepreneurship interface.

The portrayal of SME leaders in Kuwait on SDG 12

PurposeThe authors have recently been seeing a rising trend towards sustainability and innovation among small- and medium-sized enterprises (SMEs) in Kuwait, especially through the use of the Sustainable Development Goals (SDGs) that were introduced by United Nations in 2015. In Kuwait, corporations such as Zain and NBK have already implemented the SDGs as part of their main objective to create a better future for their companies. This research attempts to explore the reasons why entrepreneurs in SMEs are implementing the SDGs and specifically goal number 12 (SDG 12).Design/methodology/approachWith this research drawing on a qualitative approach, a sample of 20 participants who operated at the executive level of the SMEs were chosen randomly using the “snowball” sampling from different industries, including the food and beverage and beauty and service sectors, and were interviewed.FindingsThe results revealed that most SMEs in Kuwait are considering their approach to sustainability. Although these SMEs are following a global trend, the Kuwait government does not support them in adopting sustainability rules and regulations.Practical implicationsThis research contributes to the existing literature by presenting new knowledge about SMEs in Kuwait implementing the SDGs. It also makes an empirical contribution to the SME and entrepreneurship literature by exploring the reasons for adopting these goals. This study is one of very few that have explored the SDGs in Kuwait, and it can provide grounds for future research on SMEs' adoption in Kuwait of future SGDs. Recommendations and future directions are presented.Originality/valueThe findings add to the empirical literature by revealing the reasons why entrepreneurs in SMEs are implementing SDG 12. Furthermore, the findings will open doors for future research in this field.

Application of quadruple bottom approach on the adoption of eco-design

One of the key drivers of the Indonesian economy is small and medium-sized enterprises (SMEs). Especially in overcoming the crisis caused by COVID-19. However, SMEs also need a competitive advantage to be able to compete with larger companies. One of the competitive advantages can be obtained through innovation in eco-design (Vihma & Moora, 2020). This study examines the factors which influence SMEs’ intention to adopt eco-design. The quadruple bottom line (QBL) method forms the foundation for these elements (Simons et al., 2017). It is the evolution of the triple bottom line (TBL) with the additional factor of purpose, besides three existing factors: people, planet, and profit. In addition, using the theoretical framework of planned behavior and social cognitive theory, we also investigate the variables that affect purpose. In this work, structural equation modeling partial least squares is used as a quantitative method. A questionnaire is used to gather the primary data, SMART PLS 3 software is used for data processing, and SME entrepreneurs are selected as respondents. According to the findings, attitude, and self-efficacy significantly influenced purpose. People, planet, and purpose influence SMEs’ intention to adopt eco-design.

Batik SMEs Digital Literacy Analysis on Digital Economic Readiness during the COVID-19 Pandemic

This study aims to determine the effect of the level of digital literacy on readiness of community level for 2020 digital economy at Batik Small and Medium-sized Enterprises (SMEs). This study uses a quantitative approach with purposive sampling technique which determines 65 respondents in the Masaran, Sragen, Central Java Batik SMEs who have marketed the products through online using social media. The questionnaire was used to retrieve data. Descriptive analysis techniques and multiple linear regression were used to process the data. The results of the descriptive analysis show that the digital literacy level of the majority of Batik SMEs entrepreneurs is in the low category. The regression results indicate that digital literacy has a positive effect on the readiness of community level for 2020 digital economy with the level of gender, educational background, and internet networks as control variables, the higher digital literacy level owned by business people, the higher the community readiness to join the digital economy era which requires have the skills to use digital media also increase.

Technological Education and Its Influence on Digital Economic Readiness during the COVID-19 Pandemic

Consumer behavior changes in the COVID-19 pandemic situation require businesses to switch to an online economic system. To market products appropriately according to the target market, entrepreneurs need to increase literacy in e-commerce activities. This study aims to determine the effect of the level of technological education on readiness of community level for 2020 digital economy at Batik Small and Medium-sized Enterprises (SMEs). This study uses a quantitative approach with purposive sampling technique which determines 65 respondents in the Masaran, Sragen, Central Java Batik SMEs who have marketed the products through online using social media. The questionnaire was used to retrieve data. Descriptive analysis techniques and multiple linear regression were used to process the data. The results of the descriptive analysis show that the technological education level of the majority of Batik SMEs entrepreneurs is in the low category. The regression results indicate that technological education has a positive effect on the readiness of community level for 2020 digital economy with the level of gender, educational background, and internet networks as control variables, the higher technological education level owned by business people, the higher the community readiness to join the digital economy era which requires have the skills to use digital media also increase. The implication of this research is that the low level of technological education which is marked by a lack of understanding of accessing the internet by entrepreneurs can be a strategic step for the government to improve the information technology capabilities of the community by providing intensive training for Batik business groups to be able to compete in the digital market.

A study on socio-aesthetic value accentuation and marketing performance: an SDL perspective

PurposeThis study aims to build a conceptual model based on socio-aesthetic value accentuation (SAVA), positional advantage and sales-network power as the bridging process for enhancing sales performance in the context of small- and medium-sized enterprises (SMEs).Design/methodology/approachA structural study methodology is adopted. In all, 200 owner– managers of SMEs were involved in the study and voluntarily spent time for an interview in the data collection process. To test the model and hypotheses, the authors used the analysis moment structure structural equation modeling (AMOS SEM structural model software to analyse 178 usable questionnaires.FindingsThe results demonstrate three strategic pathways to enhanced sales performance, namely, anchors on SAVA, positional advantage and sales-network power and are the basis of the separate contribution of our proposed strategic equilateral triangle model for conceptual bridging.Research limitations/implicationsThe rejection of the hypothesis provides a room for further research. The sample frame of Indonesian SMEs limits the generalisation power of SAVA concept, which then calls for replication to achieve a broader generalisation. The theoretical implication of the study relates to strengthening the applicability of the theory of service-dominant logic in marketing studies.Practical implicationsThere are several practical managerial implications for SME entrepreneurs seeking to improve sales performance.Originality/valueThis pioneering study explains the role of SAVA – positional advantage and sales-network power to bridge innovation capability and enhanced marketing performance.

“SHOULD I STAY OR SHOULD I GO?”: A MULTIPLE-CRITERIA GROUP DECISION-MAKING APPROACH TO SME INTERNATIONALIZATION

Due to domestic markets’ current economic conditions, companies increasingly feel that they need to become actively involved in international trade. However, small and medium-sized enterprises (SMEs) typically face financial and intellectual constraints during internationalization processes. This means that decision makers must consider a wide range of different variables before deciding to internationalize firms. This study sought to integrate a well-established problem structuring method (i.e., cognitive mapping) and a multiple-criteria decision analysis (MCDA) technique (i.e., Decision EXpert (DEX)) in order to develop a decision model suitable for the identification and assessment of variables influencing SME internationalization capability. Using data collected during face-to-face meetings with a panel of experts (i.e., SME entrepreneurs and chief executive officers (CEOs)), a constructivist method of evaluating SME internationalization capability was created and tested using real data. The results confirm that the dual methodology adopted facilitates the development of a robust evaluation model that can improve decisionmaking processes in the context in question. Specifically, the proposed model identifies product features as the most important factor in SME capability for successful internationalization. In addition, internal factors are significantly more relevant than external factors. The integrated use of cognitive mapping and DEX provides decision makers with a well-informed perspective on SME internationalization capability. We know of no prior research reporting the use of these two methodologies in the SME internationalization context.

Can business model innovation help SMEs in the food and beverage industry to respond to crises? Findings from a Swiss brewery during COVID-19

PurposeThe purpose of this paper is to show how different business model innovations (BMIs) help small and medium-sized enterprises (SMEs) in the food and beverage industry to navigate turbulent and uncertain environments such as the coronavirus economic crisis (COVID-19).Design/methodology/approachThe paper adopts an in-depth case study approach and uses a dynamic business modeling (DBM) approach to analyze how a pioneer craft brewery in Switzerland implemented innovative actions undertaken during the COVID-19 pandemic.FindingsThe paper offers a novel framework describing three processes helping SMEs to implement innovations in their business model (BM) to respond in an effective way to crises, such as the COVID-19 pandemic. The first process refers to SMEs' ability to leverage readily available resources and allows SMEs to rapidly use their current knowledge to react to the changing environment amid the crisis. The second process points at SMEs' ability to transform existing resources into novel products or solutions. Finally, by mobilizing distant resources from their network, SMEs can obtain new resources and knowledge that facilitate the implementation of major changes in their BM.Originality/valueUnlike previous studies, this research adopts a cause-and-effect perspective to make explicit how SMEs' BM changes affect strategic resources, key drivers and processes, thereby impacting performance. The analysis of the multiple reinforcing and balancing feedback loops resulting from the DBM approach can help SME entrepreneurs learn how and what changes are required in their BM to effectively face turbulent times, such as the COVID-19 crisis. From such an analysis, it emerged that the ability of SMEs to effectively implement innovations amid a crisis depends in large part on their collaborations with business partners and their ability to use and transform internal and external knowledge. In addition, as the future evolution of the COVID-19 crisis is still ongoing and uncertain, this study offers a unique perspective for SMEs in the food and beverage industry as the situation unfolds rather than after the fact.

Measuring SMEs’ Propensity for Open Innovation Using Cognitive Mapping and MCDA

Open innovation (OI) has captured increasing interest over recent decades as this approach is linked to higher level organizational ambidextrous strategy, and has become a prerequisite for achieving competitive advantages. Assessing firms' propensity for OI has, however, turned out to be an increasingly challenging endeavor. This is particularly true for small and medium-sized enterprises (SMEs) due to the myriad of factors that influence these companies' capability for innovation. To overcome this challenge, this paper sought to integrate two operational research/management science techniques-cognitive mapping and the Choquet integral (CI) (a nonadditive measure and information aggregator)-to identify and prioritize relevant criteria for evaluating SMEs' propensity for OI, and improving their organizational ambidexterity. To facilitate a real-world application, information was first collected from SME managers and entrepreneurs who agreed to participate in face-to-face group meetings, allowing realism to be incorporated in the decision-making process. The results were validated by both the panel members and project director of COTEC Portugal-a leading think-and-action network for advancing technology diffusion and business innovation cooperation. The findings include that cognitive mapping facilitates the identification and understanding of cause-and-effect relationships between the determinants of OI in SMEs. The CI, in turn, introduces realism into the construction of value functions and the respective assessments of SMEs. The limitations and implications of the proposed system are also discussed.

Learning in SME Internationalization: A New Perspective on Learning From Success versus Failure

Entrepreneurial small- and medium-sized enterprises (SMEs) play a significant role in nearly all economies and are responsible for a significant proportion of cross-border transactions. In order to create and capture opportunities across borders, entrepreneurs in SMEs rely heavily on both self- and vicarious- and experience-based organizational learning. Although a significant percentage of the academic literature has concerned itself with learning from successful experience (or general experience), learning from failed experience (or learning from success versus failure) has receive much less attention. This is despite the fact that failure is generally more pervasive, particular with respect to SMEs, than success. In this paper, we review the extant knowledge on SME success- and failure-based learning from internationalization, with particular emphasis on how the two bases of learning interact. In addition, we relate the five focused issue articles that build on and extend this literature into a set of insightful theoretical and managerial contributions.

Collaboration with whom? SMEs at a Crossroad between R&D partnership exploration and exploitation

Purpose of the paper: Collaboration with external partners is essential for small- and medium-sized enterprises (SMEs) that want to innovate. The purpose of this paper is to examine the impact of three different types of R&D collaborations, namely with universities, research centres and other companies, on SMEs’ product innovation and innovation performance. Methodology: Hypotheses are tested using a Probit/Tobit regression on an Italian sample of manufacturing SMEs. Findings: Our analysis shows that collaborating with universities has a positive impact on product innovation, but not on innovation performance. Whereas, collaboration with research centres and other companies has a positive impact on both product innovation and innovation performance. Research limits: Our results refer to a specific area, Italy, and to a specific period, so that the usual problem of generalisability across time and space arises. Moreover, we focussed on R&D partners considering only three groups, universities, research centres and other companies. For the latter, data at our disposal allowed us to differentiate neither between rival/not rival companies nor on the basis of their industry, size or geographic location. Practical implications: Our findings provide implications for SMEs managers and entrepreneurs who have to decide between R&D partners for their explorative vs exploitative outside-in innovation strategy. Our findings reveal the need to align different R&D partners with different expectations and final outcomes. Originality of the paper: Previous studies shed minimal light on open innovation practices in the SMEs context. Just a few looked at the effect of different R&D partners on product or process innovation and innovation performance (this latter often measured with product or patent number) but separately. We looked at the effects of different R&D collaborations on both product innovation as well as the monetization side of the SMEs innovation process.

Gender differences and business model experimentation in European SMEs

PurposeBy drawing on various theoretical approaches and a gender perspective, this paper aims to examine business model (BM) experimentation as a step towards BM experimentation capabilities as an outcome and, as such, a key antecedent to firm performance.Design/methodology/approachIn this paper, using a unique data set of 444 European small and medium-sized enterprises (SMEs), the authors draw on various theoretical perspectives to devise a structural equation model that examines BM experimentation as a step towards business model innovation (BMI) as an outcome and, as such, a key antecedent to firm performance. Potential differences are examined between female-owned and non-female-owned businesses with regard to hypothesized relations.FindingsMulti-group analysis results reveal that drivers of BM experimentation and the paths linking BM experimentation to overall firm performance are different for female owners in comparison to male owners.Research limitations/implicationsTheoretical and practical implications are various. For SME entrepreneurs, experimenting with their BMs does lead to improved performance.Practical implicationsTheoretical and practical implications are various. For SME entrepreneurs, experimenting with their BMs does lead to improved performance.Originality/valueDespite the increasing number of papers focussing on the relationship between BM and firm performance, the focus on female entrepreneurship, gender differences and BMI, more specifically the process of BMI as BM experimentation, is relatively rare.

Analysing determinants of small and medium‐sized enterprise resilience using fuzzy cognitive mapping

AbstractResilience is an increasingly important concept in current socioeconomic landscapes. Due to the competitive global context in which we live, this trend is particularly noticeable in small and medium‐sized enterprises (SMEs). Due to their limited resources and capabilities, these firms are exposed to unfavourable scenarios that can threaten their stability, viability, and development (i.e., their resilience). Thus, identifying the determinants of SME resilience and their respective cause‐and‐effect relationships is a vital endeavour because these companies' resilience involves a wide variety of conceptual or theoretical issues that need to be understood more fully. This study proposes the creation of a fuzzy cognitive map as a novel way to analyse the determinants of SME resilience. The fuzzy cognitive map was developed based on the insights obtained during two intensive group meetings with a panel of SME managers and entrepreneurs. The resulting well‐informed, process‐oriented framework contains the determinants that need to be considered in this research context. The static and dynamic analyses carried out produced an improved understanding of the cause‐and‐effect relationships between determinants of SME resilience, which facilitates better strategic planning by these firms' managers. The practical implications, advantages, and limitations of the proposed approach are also discussed.

A knowledge-based innovation assessment system for small- and medium-sized enterprises: adding value with cognitive mapping and MCDA

PurposeThe 2008 global financial crisis showed that the ability to innovate is a key management skill and that approaches to assessing the innovation capability of small- and medium-sized enterprises (SMEs) need to be as realistic as possible. This study aims to address the latter practical need through a sociotechnical approach.Design/methodology/approachBased on a combined use of cognitive mapping and the Decision EXpert (DEX) technique, and grounded on the insights generated by a panel of SME managers and entrepreneurs in two intensive group meetings, a knowledge-based assessment system for evaluating SMEs’ innovation capability was created, tested and validated.FindingsThe knowledge-based assessment system identified the most innovative SMEs in a sample of companies. The “plus-minus-1” and dominance analyses carried out provided further support for the results.Research limitations/implicationsThe proposed system is extremely versatile but process-oriented and idiosyncratic in nature, meaning that extrapolations to other contexts need to be done with due caution.Practical implicationsThe panel of SME decision makers agreed that the system improves the current methods used to evaluate SMEs’ innovation capability, contributing to a more informed perspective on management issues. The panel members also noted that the proposed system functions as a learning mechanism, facilitating the development of well-focused suggestions for improvements SMEs can make.Originality/valueThe integrated use of cognitive maps and rule-base decisions contributes to a better understanding of how to assess SMEs’ innovation capability. No prior work reporting the integrated use of these two techniques in this study context has been found.

Interrelationships among Information System Quality, Intention to Use, Perceived Usefulness, Technology Readiness and their Effect on E-Commerce Adoption among SMEs

The development potential of e-commerce is being very explicitly recognized as the tool to facilitate and monitor entrepreneurial-related issues such as human capital development, technical assistance, capacity building and the access to e-commerce by Small and Medium-sized Enterprises (SMEs). The first decade of the new millennium has witnessed a profound change and dramatic increase in the way business and trade has taken place, with e-commerce playing an increasing role worldwide. There is no doubt that there exists enormous potential for using information and communication technologies (ICT) to contribute to the social progress and economic growth of SMEs. As we enter the second decade of the millennium, technological development brings forward more modern development. The Malaysian government launched in 2012 the SME Master Plan 2012-2020 which defines the policy focus for SMEs in achieving Malaysia's goal of becoming a high-income country, as entrusted in Vision 2020. Malaysia fully supports IT integration to spur SMEs' commercial accomplishment in doing their day-to-day operation and taking chances and making crucial business decisions, be it either to expand their existing business or start new viable opportunities. Malaysian entrepreneurs consider operating a small and medium-sized business to be exciting, more challenging and much more rewarding as opposed to doing the 9 to 5 rat race, be it in private or public corporations. While significant attempts had been carried out and spearheaded by the Malaysian government to assist in the flourishing and nourishment of SMEs, unfortunately e-commerce adoption rate and the benefits that can be achieved, are still far below potential. This has resulted in SMEs businesses to languish which subsequently resulted in SMEs business revenue and the pursuit of a viable SME business to grind to an almost halt. Therefore, it is imperative to recognize the factors and barriers affecting SMEs decisions on e-commerce adoption. The purpose of this study is to examine the level of e-commerce adoption among Malaysian SME entrepreneurs by using Parasuraman's Technology Readiness Index (TRI). A set of questionnaires will be supplied to SMEs entrepreneurs based in the northern state of Malaysia, Penang, which is also known as the 'Silicon Valley of the East'. This concept paper's focal point of research focuses on the Technology Readiness drivers (optimism and innovativeness) and barriers (discomfort and insecurity) that will essentially impact e-commerce adoption among SMEs. Despite the fact that there have been instances of SME success stories, there is more than meets the eye when it comes to recognize and tackle the specific controllable factors which hinder SME's business success.