Small And Medium-sized Enterprises Face Research Articles

Open innovation at the digital frontier: unraveling the paradoxes and roadmaps for SMEs' successful digital transformation

PurposeThe purpose of this paper is to fill a gap in the literature regarding the open innovation management approaches that small and medium-sized enterprises (SMEs) can use to access digital technologies and incorporate them into their organizational processes. The research question is: What organizational and process-level managerial actions do SMEs take to successfully access and implement digital technologies within their organizational processes?Design/methodology/approachUsing Guertler et al.'s (2020) Action Innovation Management Research (AIM-R) framework, this study examines the digital transformation experiences of 10 European SMEs to gain insights into the managerial actions that foster successful digital transformation.FindingsThe findings of the paper reveal two major contributions. First, a digital transformation roadmap for SMEs is proposed, with a focus on accessing external resources and reconfiguring internal ones to ease their digital transformation journey. Second, three distinct paradoxes that influence the digital transformation process in SMEs are highlighted, providing useful insights into the challenges and tensions SMEs face during this journey.Originality/valueThis paper provides a unique perspective on the digital transformation of SMEs by examining the managerial actions required for successful technology adoption and revealing the paradoxes that may emerge during this transformative process. The findings form the basis for future research, deepening our understanding of digital transformation in SMEs and providing actionable advice to managers and practitioners navigating this journey.

Development Problems and New Paths of Small and Medium-Sized Enterprises under the Background of Digital Economy

This research explores the transformative impact of the digital economy on small and medium-sized enterprises (SMEs) within the global landscape. In response to the digitalization of the economy, SMEs face both opportunities and challenges that significantly shape their development. The study delves into the positive impact of the digital economy on SMEs, emphasizing the role of internet-based technologies in expanding market access, breaking down trade barriers, and restructuring supply chains. However, it also highlights cybersecurity challenges that SMEs encounter, particularly in the context of increased digitalization and the COVID-19 pandemic. The article further investigates how the digital economy fosters innovation for SMEs, enabling them to contribute significantly to radical advancements and non-technological innovation. The research underscores the symbiotic relationship between digital technologies and SMEs' innovative capabilities, emphasizing their role as catalysts for economic growth. Additionally, the study explores how the digital economy helps SMEs optimize their cost structures, achieve revenue growth, and gain access to new markets through digitalization. The article provides a comprehensive analysis of the multifaceted relationship between SMEs and the digital economy, drawing perspectives from market dynamics, cybersecurity challenges, innovation landscapes, and financial optimization. The findings contribute valuable insights for policymakers, business leaders, and stakeholders, advocating for enhanced cybersecurity measures, digital technology adoption, and strategic innovation to foster a resilient and thriving ecosystem for SMEs in the digital age. The article concludes with recommendations for bridging the digital divide, enhancing cybersecurity measures, and promoting digital transformation among SMEs in an adaptive manner.

How Information Technology Overcomes Deficiencies for Innovation in Small and Medium-Sized Enterprises: Closed Innovation vs. Open Innovation

Innovation is vital for the growth of small and medium-sized enterprises (SMEs). However, SMEs face deficiencies that hinder their innovation output. This study examines how information technology (IT) helps SMEs address two salient deficiencies: technological deficiency (deficiency in internal technical knowledge and skills) and government support deficiency (deficiency in favorable government policies and incentives). Our findings suggest that SME managers can achieve greater innovation output by orienting their IT-enabled innovation efforts in an open or closed manner to address specific deficiencies. They can address technological deficiency by focusing their IT efforts on promoting innovation within the firm, that is, using IT to support closed innovation. In contrast, SMEs that face government support deficiency should give preference to IT Use for Open Innovation Activities to collaborate with external constituents such as customers and suppliers. Furthermore, because of the emergence of digital platforms (e.g., crowdsourcing), managers may be overly biased toward the use of open innovation. Our results suggest that both open and closed IT-enabled innovation have value. We exhort SME managers not to disregard either form of IT-enabled innovation but rather to tailor their approach to suit their organizational context based on specific deficiencies that their firm faces.

A Study of the Relationship between Social Media Marketing through Influencer Marketing and SMEs: Applied on the Egyptian Small and Medium Enterprises

This paper explores the multidimensional influence of social media marketing on Egypt’s Small and Medium Enterprises. This study adopts a mixed-methods approach, integrating surveys, interviews, and case studies to give a thorough analysis. The study begins by assessing the amount of social media marketing adoption among Egyptian SMEs and identifying the most regularly used platforms. It evaluates the frequency and characteristics of social media interactions among SMEs, including consumer engagement and collaborations. Furthermore, the study assesses the problems associated with resource limits, digital literacy, and cultural issues in incorporating social media into SME operations. In addition, the study explores the impact of content created by users and online reviews on brand impression and consumer loyalty. The study also examines whether having an active social media presence corresponds with increasing revenue, market share expansion, and globalization activities. It investigates the role of social media marketing in promoting SMEs’ access to finance and collaborations. In conclusion, this thesis contributes to the existing literature by conducting a comprehensive evaluation of the impact of social media marketing on small and medium-sized enterprises (SMEs) in Egypt. It highlights the immense potential of social media and identifies various challenges SMEs face. The research recommends how policymakers, business support organizations, and SME owners can leverage social media marketing to enhance competitiveness and sustainability in the Egyptian business environment. Keywords: Social Media Marketing – Marketing – SMEs – Egypt.

Study of Challenges and Opportunities that SMES Encounter in Integrating Ai-Driven Approaches into their Marketing Strategies in the Indian Context

This research explores the complex world of small and medium-sized enterprises (SMEs) in India, looking at the potential and problems they have when trying to use AI-driven methods in their marketing campaigns. AI technologies provide SMEs with the opportunity to transform their marketing strategies as the business environment continues to change at a fast pace. The study intends to highlight the opportunities that these technologies bring as well as fully comprehend the obstacles preventing the smooth integration of AI tools into marketing operations. We will carefully look at the obstacles that Indian SMEs face when implementing AI-driven strategies. These obstacles include lack of funds, inadequate technology infrastructure, and a lack of knowledge and comprehension of AI applications. Concurrently, the research will highlight prospects that arise from using AI, delving into improved consumer targeting, tailored marketing strategies, and data-centric decision-making. It will also examine how AI affects marketing efficacy, providing insight into performance indicators and return on investment for small and medium-sized enterprises

THE DIGITAL TRANSFORMATION OF SMES: A COMPARATIVE REVIEW BETWEEN THE USA AND AFRICA

The digital transformation of Small and Medium-sized Enterprises (SMEs) is a critical phenomenon shaping the global business landscape. This paper presents a comparative review between the United States and Africa, exploring the diverse trajectories of digitalization within these regions. While the USA is often at the forefront of technological advancements, Africa's SMEs exhibit unique challenges and opportunities in their digital transformation journey. In the United States, SMEs have embraced digital technologies to enhance operational efficiency, improve customer experiences, and gain a competitive edge. The adoption of cloud computing, data analytics, and e-commerce platforms has become ubiquitous, fostering innovation and scalability. This comparative study delves into the specific strategies employed by American SMEs to navigate the complexities of the digital era. On the contrary, African SMEs face distinct hurdles in their digital transformation efforts. Infrastructure limitations, limited access to capital, and a diverse economic landscape present unique challenges. However, this review sheds light on the innovative approaches taken by African SMEs to overcome these barriers. Leveraging mobile technology, localized digital solutions, and collaborative networks, African SMEs are carving out their digital paths. Moreover, this comparative review emphasizes the role of government policies and support mechanisms in shaping the digital transformation landscape for SMEs in both regions. By examining regulatory frameworks, funding initiatives, and skill development programs, this paper provides a comprehensive analysis of the ecosystem supporting SMEs in their digital evolution. The digital transformation of SMEs is a dynamic process with distinct nuances in the USA and Africa. While American SMEs benefit from advanced technological infrastructures, African SMEs showcase resilience and adaptability in leveraging digital tools to overcome challenges. Understanding these diverse trajectories is essential for policymakers, businesses, and researchers seeking to foster inclusive and sustainable digital growth globally.
 Keywords: Digital Transformation, SMEs, USA, Africa, Review.

Optimized Combination Strategies for Hybrid Work Models in SMEs in the Post-COVID-19 Pandemic

This paper explores optimized combination strategies for implementing effective hybrid work models in small and medium-sized enterprises (SMEs) in the post-COVID-19 pandemic landscape. As remote and on-site workflows become increasingly intertwined, SMEs face distinct challenges in strategically adopting these blended models catered to their unique organizational constraints. This research aims to address the lack of tailored guidelines for SMEs by consolidating insights across multiple disciplines including leadership, organizational behavior, and digital transformation theory. We employ a mixed-methods approach combining surveys, interviews, case studies and longitudinal tracking to examine diverse aspects of hybrid model efficacy in SMEs. Key results reveal that balance between flexibility and in-person collaboration is crucial, but optimum ratios vary across industries. Additionally, inclusion risks must be mitigated and policies personalized to meet generational preferences. Practical recommendations focused on change management and leadership upskilling can significantly enhance SME productivity. We conclude that purpose-driven hybridity centered on belonging and resilience holds strategic advantages for SMEs navigating workforce transformation. Further comparative research can reveal additional success factors for context-specific hybrid work models.

ADDRESSING CLIMATE CHANGE THROUGH ENVIRONMENTAL, SOCIAL, GOVERNANCE (ESG) INITIATIVES: A PRAGMATIC OUTLOOK IN PRESENT ERA

The research explores the pivotal role of Environmental, Social, and Governance (ESG) initiatives in addressing the pressing issue of climate change. As global awareness of environmental challenges grows, businesses, investors, and policymakers increasingly recognize the significance of integrating ESG principles into their strategies. This paper examines how ESG initiatives contribute to mitigating climate change through a holistic approach that encompasses environmental stewardship, social responsibility, and effective corporate governance. This study investigates climate change mitigation through Environmental, Social, and Governance (ESG) initiatives in the context of Small and Medium-sized Enterprises (SMEs) in Rajasthan, India. With a sample size of 370 SMEs, the research employs the Smart-PLS software for comprehensive analysis. Our study explores the pragmatic role of ESG practices in addressing climate change challenges SMEs face in the present era. The findings underscore the significance of integrating sustainability strategies to ensure environmental resilience, social responsibility, and effective governance. While offering valuable insights, the study acknowledges limitations in the scope of ESG factors and the evolving nature of climate change dynamics. Ultimately, the study underscores the importance of collective efforts among stakeholders to foster sustainable practices and combat climate change impacts in Rajasthan's SME sector.

Strategic Management Accounting Practices and Financial Performance of Small and Medium Manufacturing Enterprises in Nairobi City County, Kenya

Previous studies acknowledge that small and medium-sized enterprises (SMEs) are key drivers to Kenya's economic development. Many of these SMEs face persistent constraints and do not realize their full potential, with many failing within their first three years of operation. A possible cause for the high failure rate is poor financial performance. Existing literature highlights one remedy as the use of strategic management accounting practices. This paper investigated the influence of strategic management accounting practices (SMAPs) on the financial performance of small and medium manufacturing enterprises (SMMEs) in Nairobi City County, Kenya. The study used self-reporting opinion questions on Return on Investments (ROI), Return on Assets (ROA) and net profit margin as financial measures. A descriptive research design was used. Target population was 693 SMMEs in Nairobi. Data was collected through a self-administered cross-sectional survey. Questionnaires were administered to a sample of 254 SMMEs with 156 usable responses. Data was analyzed using structural equation modelling to explain the relationships among multiple variables for SMAPs and financial performance. Results of hypothesis testing revealed that SMAPs significantly influence financial performance (chi-square (χ2) = 612.82, DF = 171, p-value = 0.000, CMIN/DF (x2 /df = 3.584, RMSEA = 0.114, IFI= 0.857, CFI= 0.856, NFI= 0.819, GFI =0.806, AGFI=0.751), where the model explains 43.7% in the variations on financial performance of SMMEs. Results suggest that the financial performance of SMMEs can be improved by deploying SMAPs. The study recommends that SMMEs should be encouraged to adopt SMAPs through policy and practice.

Strategic Management Accounting and Financial Performance of Small and Medium Manufacturing Enterprises in Nairobi City County, Kenya

Previous studies acknowledge that small and medium-sized enterprises (SMEs) are key drivers to Kenya's economic development. Many of these SMEs face persistent constraints and do not realize their full potential, with many failing within their first three years of operation. A possible cause for the high failure rate is poor financial performance. Existing literature highlights one remedy as the use of strategic management accounting practices. This paper investigated the influence of strategic management accounting practices (SMAPs) on the financial performance of small and medium manufacturing enterprises (SMMEs) in Nairobi City County, Kenya. The study used self-reporting opinion questions on Return on Investments (ROI), Return on Assets (ROA), operating profit and net profit margin as financial measures. A descriptive research design was used. Target population was 693 SMMEs in Nairobi City County. Data was collected through a self-administered cross-sectional survey. Survey questionnaires were administered to a representative sample of 254 SMMEs with 156 usable responses. Data was analyzed using structural equation modelling to explain the relationships among multiple variables for SMAPs and financial performance. Results of hypothesis testing revealed that SMAPs significantly influence financial performance (chi-square (χ2) = 612.82, DF = 171, p-value = 0.000, CMIN/DF (x2 /df = 3.584, RMSEA = 0.114, IFI= 0.857, CFI= 0.856, NFI= 0.819, GFI =0.806, AGFI=0.751), where the model explains 43.7% in the variations on financial performance of SMMEs. Results suggest that the financial performance of SMMEs can be improved by deploying SMAPs. The study recommends that SMMEs should be encouraged to adopt SMAPs through policy and practice.

On the edge of Big Data: Drivers and barriers to data analytics adoption in SMEs

Adoption of technological innovations such as data analytics represents a major organizational transformation for small and medium-sized enterprises (SMEs). Literature shows that data analytics can improve the performance of SMEs. However, SMEs face many barriers in adopting this technological innovation. Unfortunately, the literature on data analytics adoption in SMEs is limited. Our goal is to identify the drivers and barriers to data analytics adoption in SMEs. With 35 semi-structured interviews with SMEs in the manufacturing and agricultural industries from France, we establish two comprehensive typologies of drivers and barriers. Our results show that exogenous drivers such as market, competition and the Covid-19 crisis have a stronger influence on data analytics adoption in SMEs than endogenous drivers. Endogenous barriers like lack of strategy, skills and organizational culture have a more negative influence on data analytics adoption in SMEs than exogenous barriers. This article contributes to better understanding of data analytics adoption process in SMEs. Our research helps SMEs manage organizational transformation and develop a strategy supporting technology adoption.

Monetary access and survival of small and medium-sized enterprises in South Africa post-COVID-19 era

The COVID-19 pandemic has posed significant challenges to the survival of small and medium-sized enterprises (SMEs) in South Africa, particularly in accessing necessary funding for their daily operations. This study aimed to assess the relationship between monetary access and survival of SMEs in South Africa in the post-COVID-19 era. Quantitative methods were employed to collect data from a sample of 321 SMEs in South Africa, selected through purposive technique. The collected data were analyzed using SPSS, with linear regression and Pearson’s correlation analysis determining the impact of independent factors on the dependent variable. The findings revealed a notable positive correlation between monetary access and the survival of SMEs in the post-COVID-19 era. Specifically, increased access to financial resources was associated with improved survival rates for SMEs. Furthermore, limited financial access hindered the range of services SMEs could provide and restricted their overall performance. These findings emphasize the critical importance of policymakers regularly evaluating and revising their policy actions to address the challenges SMEs face in accessing finances. By adopting effective measures to enhance monetary access for SMEs, policymakers can support their survival and enable them to thrive in the post-COVID-19 era. Finally, this study underscores the significance of monetary access for SMEs’ survival in South Africa following the COVID-19 pandemic. It highlights the need for policy interventions that alleviate SMEs’ difficulties in obtaining funding, enabling them to contribute significantly to economic growth and development.

Measuring the performance of SMEs during the pandemic situation using system dynamic

PurposeThis study aims to create a system dynamics simulation model to forecast the performance of small and medium-sized enterprises (SMEs) if some decision-making is executed to reduce the negative of the coronavirus disease 2019 (COVID-19) pandemic. In particular, this study will focus on SMEs that belong to the furniture industry because the furniture industry is one of the leading industries in Indonesia.Design/methodology/approachThe study develops a system dynamics-based model by using three subsystems, i.e. the “production subsystem,” “demand and revenue subsystem” and “raw material (or wood supply) subsystem.”FindingsThe best scenario is the third scenario which increases the capacity to the normal situation and government subsidy during and after the pandemic. This scenario gives the best performance for industry revenue and gross domestic product (GDP). However, for the government, the most significant expenditure occurs in the third scenario. This seems a trade-off for the government whether to save the wooden-based furniture industry by encouraging the industry to continue operating during the pandemic accompanied by high subsidies or limiting the activities of the wooden-based furniture industry to prevent the spread of COVID-19 by providing low subsidies.Research limitations/implicationsFirst, this study does not try to combine the system dynamics (SD) methodology with the other method or use a multi-methodology since SD has several limitations and the other method may have several advantages compared to SD. Second, the models used in this study do not consider the decline in forest area and quality. Third, the demand for wooden-based furniture is obtained from historical data on domestic and foreign sales and fourth, the model does not include the government budget as a constraint to make any subsidy to help the SMEs.Practical implicationsThis study provides essential insights into implementing the policies in the world pandemic situation when SMEs face lockdown policy.Social implicationsThe study revealed that relevant policy scenarios could be built after simulating and analyzing each scenario's effect on SMEs' performance during the pandemic.Originality/valueThis study will enrich the previous study on the impact of the pandemic on SMEs and the dynamic system modeling on SMEs. The previous study discussed the pandemic's impact on SME performance and the impact's analysis in isolation from the dynamic nature of SME owners' decisions or government policy. In this study, the impact generated from the pandemic situation could be different depending on the decision and policies taken by managers from SMEs and the government.

Financial losses and flood damages experienced by SMEs: Who are the biggest losers across sectors and sizes?

As climate-related disasters increase in frequency, magnitude, and variability, the various facets of flood disaster impacts demand more effective and targeted mitigation actions and resilience strategies. Within the private sector, small and medium-sized enterprises (SMEs) are particularly susceptible to climate-related events like flooding. As the backbone of the UK economy, SMEs' anticipatory adaptation is urgently needed to safeguard the socio-economic system of places at flood risk. Although many studies have examined the financial losses and other damages SMEs face, the discrepancies in losses and damages due to the size and economic sector of the SME are not sufficiently addressed. This knowledge gap hinders more targeted and effective flood-risk management and is also often cited as a reason why flood insurance is unavailable to SMEs. This paper examined the experience of 417 SMEs after three different flood events in the North of the UK. By performing parametric and non-parametric statistical tests using IBM SPSS 25, we offered granularity on the commonalities and differences in financial losses, types of damages, business closures, and decreases in sales that SMEs of different sectors and sizes experienced. The main findings showed the distinctive categories of financial losses that are more common and expensive for some sectors than for others, and provided a detailed list of losses in nine categories for SMEs in 13 sectors. It also revealed that the losses-to-turnover ratio is a more accurate representation of the negative impact that a flood event can exert on SMEs. In addition to informing SMEs of areas to focus their resources to increase their mitigation and adaptation potential, findings from this study can also support insurers, business chambers, the government and other supporting organisations in identifying potential risks to seek prevention and tailor programmes to build SMEs’ socio-economic resilience in a changing climate.

Differentiation Strategy and Export Performance in Emerging Countries: Mediating Effects of Positional Advantage among Mozambican Firms

Small and medium-sized enterprises (SMEs) play an important role in economic and development growth, particularly in developing countries. Their success depends on the expansion of their markets across borders, based on the strategies adopted, in which differentiation strategies and positional advantages play an important role. As an emerging country, Mozambican SMEs face a lack of resources and business environmental challenges in deploying their unique advantages when competing abroad. As such, the objective of this paper is to study the impact of differentiation strategies on the export performance of Mozambican SMEs, and the mediating effect of positional advantage on the relationship between the differentiation strategy and export performance of SMEs. To achieve this objective, an empirical study was conducted, based on a sample of 250 Mozambican firms, to test a theoretical model that applied Structural Equation Modeling using the Partial Least Squares (PLS-SEM) algorithm, based on SmartPLS software version 3.3.6 (SmartPLS GmbH, Oststeinbek, Germany). The results show that differentiation strategies positively impact the export performance of SMEs and that positional advantage mildly mediates the relationship between the differentiation strategy and export performance. This suggests that Mozambican SMEs may not be properly taking advantage of the positional advantage of the differentiation strategies, as the added value generated by the positional advantage is relatively modest. As such, Mozambican SMEs still need to support their positional advantages to overcome fierce international competition. This study contributes to the knowledge about the consequences of adopting differentiation strategies and positional advantages on the export performance of SMEs, particularly in the context of emerging countries.

Valets, butlers, housekeepers. Lawyers and accountants as service providers in the market of legal services for SMEs in Poland

ABSTRACT This paper looks into the practices and meanings of legal services use by small and medium-sized enterprises (SMEs) in Poland. Based on the results of extensive quantitative (n>7000) and qualitative (101 IDIs) studies, it finds that SMEs face significant access to justice barriers. While the studies find that apparent cost barriers cause this, they stress the limited complexity, time and organisational resources at SMEs’ disposal. Furthermore, the realities of small business in Poland and the wide use of private ordering often render legal services spurious. As a result, SME owners and managers adapt the legal services used to their businesses’ limited possibilities and most acute needs. In so doing, they appear to act rationally, with the view of maximising the economic output of their businesses. Despite the availability of lawyers, legal services are often delivered by accountants, and generally kept at a minimum. A typology of legal services used by SMEs created based on qualitative study results: “legal valeting”, “butlering”, and “housekeeping”, reflects this. Traditional home servants inspire these names and indicate the scope of service and the type of relationship between the professionals and service providers.

Modeling Sustainability Challenges of Small and Medium Size Enterprises in Cameroon: Case Study in Buea

To address the sustainability challenges faced by Small and Medium-sized Enterprises (SMEs) in Cameroon, this study employed a qualitative approach, specifically utilizing grounded theory. The philosophical underpinnings were subjectivism ontology and interpretivism epistemology, while axiology was value-bound. The target population were SME owners and managers in Cameroon. A purposive sampling method was used to recruit participants in the town of Buea, from whom primary data was obtained through interviews. The findings revealed the overarching theme of administrative problems as the major sustainability challenge of SMEs. The study also revealed financial problems, electricity supply problems, knowledge & innovation problems, as well as management problems that SMEs face as challenges to their sustainability. This study had a geographical limitation as it was carried out only in the town of Buea, located in the south west region of Cameroon. As a recommendation, comparative studies should be done in other towns to have a broader overview of the challenges faced by SMEs in Cameroon. Based on the results, SME owners and managers will see the need to invest in entrepreneurial education and have adequate capital before venturing into business. The administration will see the need to improve policies and create an enabling environment for business operations.

Toward holistic corporate sustainability—Developing employees' action competence for sustainability in small and medium‐sized enterprises through training

AbstractTo advance holistic corporate sustainability in small and medium‐sized enterprises (SMEs) requires employees to fully engage in sustainability efforts, which, in return, means to develop employees' action competence for sustainability. Little empirical evidence, however, exists on how to do this considering well‐known constraints SMEs face (time, expertise, resources). We present a transdisciplinary project that developed, delivered, and evaluated a sustainability training for the workforce of the Bohlsener Mühle, an SME that has pioneered corporate sustainability in Germany. The training was piloted for the business' apprentices and combined different learning modes to build participants' sustainable action competence. The pre‐post evaluation, supported by observations and qualitative interviews, revealed that employees' action competence for sustainability can be fostered through such trainings and is most effective if organizational factors that enable a corporate culture of sustainability are aligned. We conclude that a human‐centered and action‐oriented approach to training is needed to unleash the full potential of the workforce to advance corporate sustainability.

Implementation of new segments in small- and medium-sized enterprises (SMEs)

PurposeSuccessful segmentation and implementation are crucial for firms. This paper aims to focus on what areas small- and medium-sized enterprises (SMEs) consider when implementing new target segments in the organization. If firms do not understand the potential complexity and plan for implementation, they risk overlooking important areas that cause organizational resistance and failure in the market.Design/methodology/approachThis paper builds on a literature study and five SME case studies based on 44 interviews and 10 intervention workshops.FindingsThe authors identify key areas of change that SMEs consider when planning to implement segments in the organization, including marketing strategy and plans, organizational aspects and implementation processes. Organization changes and sales plays are key considerations among SME managers. The authors further identify four categories characterized by different degrees of marketing and organizational changes that SMEs face when implementing new target segments, reflecting SMEs former choices.Research limitations/implicationsThis research is based on interviews and workshops that bring managers into a situation where they can evaluate needed changes to implement segments. The managers can express the complexity and the effect of the implementation.Practical implicationsThis paper presents considerations and insights derived from SMEs and discusses how firms can be better equipped to implement new segments.Originality/valueThis paper offers new insights and directions for segmentation literature, focusing on implementation and proposing how to advance the segmentation literature.

Impact of COVID-19 on Small- and Medium-sized Enterprises

The COVID-19 pandemic has severely impacted global business operations. Most importantly, practitioners of small- and medium-sized enterprises (SMEs) have been facing devastating economic shocks emanated from the COVID-19 pandemic. The purposes of this study are to explore the business status of SMEs, business sustenance period, types of problems faced by the practitioners and impact on production volume, due to the COVID-19 pandemic. For these purposes, primary survey data from 284 SMEs in Bangladesh are collected in this study. The survey data are descriptively analyzed using appropriate graphs. This study finds that SMEs are facing several problems such as demand fall (92.96%), cancellation of orders (85.56%), liquidity crisis (74.30%), delayed transportation (72.53%), unsecured working environment (68.31%), raw material shortage (63.73%) and employees’ absenteeism (62.67%). The SMEs face beyond 40% decrease in production volume against the pre-pandemic year. Furthermore, this study formulates several strategic measures, which will certainly guide policymakers and practitioners to combat the COVID-19 economic shocks for the SMEs and also for other industries.