Small And Medium-sized Enterprises In Taiwan Research Articles

Strategies and Tools for Small- and Medium-Sized Enterprises (SMEs) to Move toward Green Operations: The Case of the Taiwan Metal Industry

Net-zero carbon reduction has become a global supply chain development trend, and the EU has established CBAM regulations. Industries that fail to effectively reduce carbon emissions will face operational challenges under these regulations. For SMEs, carbon reduction is crucial for sustainable operations. To address this challenge, governments worldwide are formulating relevant policies and investing resources to help SMEs enhance their competitiveness. In Taiwan, the metal industry has an export ratio exceeding 45%, making it a significant global production base for metal products. This study conducted a green operational transformation survey on 230 SMEs in Taiwan’s metal industry. The Taiwanese government has devised a comprehensive carbon reduction approach for the metal industry, which includes environmental facilities, digital technology introduction, process and production technology improvement, resource recycling, and energy conversion as strategies and tools for promoting carbon reduction. According to this study, the aforementioned five promotion strategies have become essential tools for SMEs in their carbon reduction efforts. This study utilized a one-way ANOVA, Pearson correlation analysis, and simple regression analysis, all of which demonstrated significant correlations among these tools. These findings can serve as a reference for other partner countries, accelerating the global industry’s transition toward green operations.

Do Social Network Relationships and Overseas Market Orientation Affect SMEs’ International Performance? A Dynamic Internationalization Capability Perspective

Dynamic internationalization capability plays a significant role in the performance of Taiwanese small and medium-sized enterprises (SMEs) in the process of internationalization. According to the concept of dynamic capability, businesses need to develop and maintain capabilities by obtaining valuable knowledge from different sources, such as market environments and social networks. However, previous studies have tended to only discuss the development of dynamic internationalization capabilities from a single perspective and have failed to explore more comprehensive knowledge sources. This study investigates whether social network relationships and overseas market orientation (OMO) improve dynamic internationalization capabilities. Participants were collected from internationalized SMEs in Taiwan via purposive sampling, yielding 211 valid samples. Results show that trust and commitment have a positive impact on international exploration capabilities, OMO has a positive impact on both international exploration and international exploitation capabilities, and international exploration has a positive impact on international performance. According to the findings, this study has several managerial and theoretical implications. In addition, it shows that the classification of SMEs’ capabilities enables them to focus on resources, thus contributing to resource concentration and the reduction of unnecessary waste.

Innovation in manufacturing SMEs during the COVID-19 pandemic: How does environmental dynamism reinforce employee proactive behavior?

In a turbulent environment such as during the COVID-19 pandemic crisis, employee proactive behavior is imperative for innovation initiatives in small- and medium-sized enterprises (SMEs). We ask whether and how turbulent environments motivate employees to proactively engage in innovative behavior. This study argues that employees' perceptions of environmental dynamism reinforce employee proactive innovation behavior. Using a sample comprising 262 innovative employees from 40 manufacturing SMEs in Taiwan, this study tests a moderated-mediation model in which environmental dynamism is expected to increase the indirect effect of creative self-efficacy on employee innovative behavior through knowledge acquisition. The results confirm the mediating role of knowledge acquisition and the positive moderating effect of environmental dynamism. This study sheds light on the issue of employee proactive behavior in response to changing environments.

Key factors affecting technological capabilities in small and medium-sized Enterprises in Taiwan

Technological capability is a core resource and distinctive competency that enables firms to create firm value. With greater technological capability, firms have more unique resources and skills and engage in more strategic activities and thus can gain competitive advantages and increase their profitability while enhancing their organizational performance. However, small and medium-sized enterprises (SMEs) invariably lack resources required to develop technological capabilities. This study explored the determinants of improvements to technological capabilities based on data regarding SMEs in Taiwan. By following this line of literature, we developed a structure with five independent constructs (“Knowledge Sharing,” “Talent Train,” “Cooperative Relationships,” “Innovation,” and “Government Support”) and one dependent construct (“Technological Capabilities”). We conducted multiple correspondence analysis (MCA) to analyze data collected from questionnaires issued to 77 manufacturing SMEs in Taiwan. MCA can map variables and individuals and therefore enables the construction of complex visual maps and the interpretation of their structures. The findings of this study revealed that technological capabilities can improve firm performance.

Structure-conduct-performance analysis of the rice noodle industry: a case study of Taiwan's SMEs

This study examined how food technology has changed the rice noodle industry in Taiwan. A rice noodle food safety scandal in 2013 led to new government regulations regarding rice noodle labelling in 2014. We investigated the structural traits of Taiwan's rice noodle industry and the conducts of rice noodle manufacturers regarding the food safety incident and the new regulations by employing the structure-conduct-performance paradigm. The study found that most firms involved in the rice noodle industry in Taiwan are small- and medium-sized enterprises (SMEs). Retaining the status quo and registering a regional brand are the two main conducts found by this study. Herein, questions of regional branding in terms of industry and local government conduct are examined alongside the lessons learnt after the scandal and regulation changes.

Extracting key factors for sustainable development of enterprises: Case study of SMEs in Taiwan

In general, enterprises should pay close attention to sustaining sufficient competitiveness in turbulent global business environments that focus on sustainable operations, especially environmental issues. It is obligated for enterprises to protect the environment, utilize sustainable resources and establish eco-industries. Many large enterprises have joined the World Business Council for Sustainable Development (WBCSD). However, the small and medium-sized enterprises (SMEs) pay various degrees of attention to environmental issues and sustainable operations. This paper investigates the sustainable development and innovation of 233 SMEs in Taiwan to find out how to develop a business model that helps them operate in a more sustainable and environmentally friendly way. According to our results, a sustainable business model is a key factor for competitive advantages with straightforward connections to business success. Results also indicate that a sustainable business model is performed with the agreement of colleagues in an organization and it requires comprehensive strategic efforts. This study has limited findings to show the insights of Taiwanese SMEs and should not be generalized in other contexts.

Analysis model of the sustainability development of manufacturing small and medium- sized enterprises in Taiwan

To maintain competitiveness in the marketplace, enterprises have considered sustainability development as an important goal and initiated numerous strategies for sustainability. The three main dimensions, namely, economic, social and environmental aspects, have become the focus of the sustainable development of enterprises while serving as vital indicators for enhancing competitiveness. However, prior studies on sustainable development primarily emphasised theoretical discussions, and few scholars have conducted quantitative data analysis, especially in the small and medium-sized enterprises (SMEs) area. Given this research gap, this study developed an integrated multi-attribute decision analysis model to evaluate the sustainability development of manufacturing SMEs in Taiwan. The present research identifies key sustainability indicators that play a vital role in boosting the sustainable performance of manufacturing SMEs.

An investigation of B-to-B brand value: evidence from manufacturing SMEs in Taiwan

ABSTRACTPurpose: The importance of brand value has been increasingly recognized in business-to-business (B-to-B) marketing settings. Leek and Christodoulides (2012) proposed a comprehensive B-to-B brand value framework based on qualitative examination, which has yet to be quantitatively examined. As such, the objectives of this study are twofold: first, to quantitatively investigate Leek and Christodoulides’ (2012) B-to-B brand value framework and reveal the relative importance of the various attributes/elements; second, to explore whether the attribute/element priority in Leek and Christodoulides’ (2012) value framework differs for various types of buyers with respect to supplier characteristics, environmental factors, and situational factors. The research context is small- and medium-sized enterprises (SMEs) in Taiwan. For industrial marketers, a better understanding of attribute/element priority pertaining to brand value is helpful in terms of marketing efficiency and success probability.Methodology/Approach: Based on data from 22 SME buyers in Taiwan, a cluster analysis was performed to classify SME buyers into different buyer groups based on supplier characteristics, environmental factors, and situational factors, while an analytic hierarchy process was used to indicate the preference structure under different buyer groups.Findings: The results reveal that the functional value items outperformed emotional value ones; further, quality, technology, and after-sales service were the top three elements of brand value. However, the attribute/element priority varied across different buyer groups. In general, the importance of functional value items was greater than that of emotional value items for most SME types. Top attributes/elements that exceeded 10% importance weight were almost all function-related, aside from emotion-related credibility—the primary concern (20.3%) of forced SMEs that held pessimistic perceptions regarding the economic environment, and procured within a highly concentrated market structure.Originality/Value: This research study contributes by indicating the relative importance of brand value attributes/elements in the SME context and examining whether the attribute/element priority varies for distinct types of buyers. Based on the results, a target marketing strategy is provided for B-to-B marketers to effectively design marketing offerings and create brand value for their business buyers.

The Framework for KM Implementation in Product and Service Oriented SMEs: Evidence from Field Studies in Taiwan

Knowledge management (KM) is a core competency that determines the success of small and medium-sized enterprises (SMEs) in this knowledge-based economy. Instead of competing on the basis of physical and financial capital, the success of SMEs is influenced by the knowledge, experience and skills of the owners and its employees. Unfortunately, many SMEs are still struggling with KM implementation due to lacking a comprehensive KM framework. This study aims to identify enablers for KM success and build up a framework for KM implementation in service and product oriented SMEs. By using multiple research methods, this study collects data from SMEs in Taiwan to prove our suggested enablers and reference KM framework. The suggested framework can provide useful assistance and guidance for holistic KM solutions. The K-object concept, which adopted the XML standard, may become a significant managerial and technical element in the KM practice. The enhanced KM framework mandates every employee’s participation in knowledge activities, not just some elite knowledge workers. The findings provide useful implications for researchers and practitioners by providing useful templates for implementing KM initiatives in different industries and more comprehensive framework for KM implementation in different types of SMEs.

Role of Entrepreneurship in Future Economic Development of Taiwan

Historically, entrepreneurship played a central role in the economic development of Taiwan. Therefore small and medium sized enterprises are considered the backbone of the Taiwanese economy. The purpose of this study is to define and elaborate the role of small and medium sized enterprises (SMEs) in terms of non-technical innovation of SMEs, human resource productivity of SMEs and government policies regarding SMEs in the future economic development of Taiwan. The additional objective is to analyze the SMEs role in terms of its social and economic impact and finally to produce conclusive statements based on the final observations. This research is based on transaction cost theory and it was conducted in Bangkok, Thailand. The research is qualitative with an inductive approach in nature. Final findings are based on the five observations; the first three observations show that there is a definite relationship between non-technical innovation, human resource productivity and government policies regarding SMEs with the future economic development of Taiwan and the remaining mentioned that the annual sales share of SMEs in Taiwan is only 30% in 2012 and export sales share is only 17.74% but on the social front, SMEs accommodate more than 79% of workforce in Taiwan. These observations are combined to produce final statement of this research.

Innovation, market power, and firm valuation

The government’s technology policy is an important guideline and direction for the development of technology industry in Taiwan. Taiwan government proposed a two-phase process of high-technology industrialization development and, established center-satellite factory system which has effectively enhanced cooperation on the dimension of business management, total quality management, technology transference, and financial support. This mechanism effectively upgrades the industry level and makes a significant contribution to Taiwan’s economical miracle. This study adopts Olhson’s (1995) model to explore the internal innovation of the information technology (IT) industry, from which it proceeds to observe the external behavior of the industry in terms of market power, in order to analyze how innovation and market power affect market value under keen competition. Empirical results show a positive correlation between innovation and market value of the IT industry, which indicates the importance of innovation to the development of firms and an explanatory capability outside the book values of firms. Market power indicates an insignificant correlation to market value except in small and medium-sized enterprises (SMEs), which implies the economic contribution of SMEs in Taiwan. Key words: Innovation, market power, firm valuation, information technology, panel data.

The Development of Digital Divide Assessment Mechanism for SMEs: A Perspective from the Taiwan Manufacturing Industry

This study developed a mechanism to evaluate and gain a better understanding of the digital divide in small and medium sized enterprises (SMEs) in light of the need to improve the information and communication technologies (ICT) investment and ICT utilization efficiency of SMEs. This study applied the Gowin's Vee research strategy. Through the grounded theory method, 38 critical conceptual factors were found in the literature review. These critical factors were used by the authors to develop an evaluation system for assessing the digital divide. The expert questionnaire methodology was applied and a tentative model set with 29 critical factors was generated. Using the analytic hierarchy process, the authors approached the experimental side and sent questionnaires evaluating the weight of every factor in the prototyped mechanism to Taiwan's manufacturing companies. The resulting comprehensive scale can be a useful tool for measuring the sources of the digital gap as well as for suggesting ways to encourage the adoption of ICT and e-business by SMEs in Taiwan and other countries.

The influence of family ownership on SME performance: evidence from public firms in Taiwan

The relationship between family ownership and firm performance has gained increased attention in the business strategy and financial economics literature. Most existing studies use large companies as the research sample; studies that explicitly investigate the influence of family ownership on the performance of small- and medium-sized enterprises (SMEs) remain sparse. This study raises this issue explicitly by investigating the influence of founding-family ownership on the return on assets and Tobin’s q of 341 public SMEs in Taiwan, during the period of 2002–2006. It emerges from the data that family ownership is prevalent and substantial in Taiwan, representing half of the public SMEs and accounting for more than 11 percent of their outstanding equity. It was found that the influence of family ownership on SME performance is positive and significant. Overall, the results suggest that family ownership is an effective organizational structure for SMEs in Taiwan.

Do as the large enterprises do?

Abstract This study investigated the less explored expatriation practices of small- and medium-sized enterprises (SMEs) in emerging markets. Data for 133 Taiwan SMEs operating in Malaysia and Vietnam revealed that four personality traits of expatriates, i.e., control ability, independence, openness and social ability exert significant influences on overseas performance given that different types of performance require different of expatriate competency. Analytical results also indicated that the widely perceived influence of the favorable evaluation of the expatriate by top managers does not impact the overseas performance of expatriates. Further, the expatriate practices of Taiwan SMEs vary depending on cultural differences between the home country and host countries. Taken together, the findings of this study have valuable implications for both academicians and practitioners in international management.

Role Negotiation and Interaction: An Exploratory Case Study of the Impact of Management Consultants on ERP System Implementation in SMEs in Taiwan

With growing pressures for collaborative information systems (IS) partnerships, Enterprise Resource Planning (ERP) implementation has been an important activity for improving supply chains efficiency in Small and Medium-Sized Enterprises (SMEs). Historically ERP consultants usually take a product-selling approach in SMEs, providing limited management consultancy services. However, a more constructive role for management consultants has become an emerging and challenging issue. This study explored the involvement of management consultants in ERP implementation, particularly with internal managers, ERP consultants and other project members. Extensive interviews were conducted with management consultants as well as 47 project members from four different SMEs in Taiwan employing ERP consultants. Using a grounded theory methodology, prior literature was used to sensitize the findings to key concepts of importance. The results were then analyzed and we described how owner-managers regard management consultants and how the consultants use role negotiation skills to work with both internal managers and ERP consultants. The study found resistance toward management consultants primarily from managers in SMEs, and not owner-managers. The relationships between management consultants and SME managers also differed from similar relationships in large organizations. Suggestions are also provided for academics and practitioners along with areas for future research to extend these exploratory findings.

Determinants of strategic planning effectiveness for information systems in SMEs

Although the relationship between various factors and the effectiveness of Information Systems Strategic Planning (ISSP) has been extensively studied, ISSP in Small and Medium-sized Enterprises (SMEs) has seldom been studied empirically. This study examines the factors influencing the effectiveness of ISSP from the Technological, Organisational and Environmental (TOE) perspectives. Data were collected via a questionnaire survey sent to 800 high-tech manufacturing SMEs in Taiwan. The statistical results show that some TOE factors influencing ISSP effectiveness. The implications of the findings for Information System (IS) practice are discussed. Moreover, this study provides a valuable reference for business managers conducting ISSP exercises and for researchers interested in ISSP.

Does innovation lead to performance? An empirical study of SMEs in Taiwan

PurposeThis study attempts to probe within a multi‐dimensional perspective the nature and type of daily innovation practices of small‐ and medium‐sized enterprises (SMEs) located in Taiwan. The relationship between innovation and organizational performance will also be explored.Design/methodology/approachData of interest were collected through a telephone survey. From the 2000 Directory of Manufacturing and Service Industries in Northern Part of Taiwan, companies with a total employee number less than 200 (the definition of an SME in Taiwan) were the population. Telephone calls to 877 firms were successfully completed with a response rate of 87 per cent.FindingsEighty per cent of the surveyed companies conducted some sort of innovation, the two major types of innovations were technological and marketing innovations. Innovation has a weak link with company sales. Administrative innovations have surfaced to be the most crucial factor in explaining sales rather than technological innovations.Practical implicationsCreating a successful innovation platform to serve as a base for non‐technology‐related innovations may prove to be the most critical catalyst to capitalize on innovation efforts. The research results also provide some insights for companies that are not sure how to integrate innovation into their business operations.Originality/valueThis study unveils the innovation practices of this novel economy and particularly focuses on the less explored SMEs in an Asian context.

Proliferation of computers among Taiwanese SMEs

To upgrade the technology and thereby the economy, governments worldwide have actively encouraged their Small- and Medium-sized Enterprises (SMEs) to adopt Computer-Based Information Systems (CBIS). SME managers, however, often question the benefit of computers and use their small size as an excuse to avoid using sophisticated computers. Using Taiwan as an example, this study shows empirically the extent of computer success in SMEs. Other than exploring the current and potential uses of CBIS in Taiwan SMEs, this study identified the effects of computer technology on various jobs and organisational performances and explored how these effects were related to the success. Motivators and inhibitors for SME computer adoption are also discussed. The major conclusion is that, while firm size may influence the initial adoption of computers, the costs and effort put into the subsequent implementations are the key factors that determine the success of such use in SMEs.

Application of the AHP in data warehouse system selection decisions for SMEs in Taiwan

The study investigates the practice of data warehouse system selection decisions for Small and Medium-sized Enterprises (SMEs) in Taiwan. As data warehouse system evaluation and selection are often costly and time consuming, the need for a decision-aid approach to software selection is obvious, especially for SMEs. The aim of this study is to determine significant factors that influence data warehouse system selection of SMEs. Both technical and managerial factors are considered in structuring an evaluation hierarchy based on the Analytic Hierarchy Process (AHP). The results indicate that SMEs select data warehouse systems that focus mainly on cost and vendor criteria.

A Dynamic Decision Model of SMEs' FDI

Many scholars generally believe that small and medium-sized enterprises (SMEs) in comparison to large firms are at a disadvantage in foreign direct investment (FDI). However, new evidence suggests that SMEs also play an important role in FDI. Why do they undertake risk in other countries? We are interested in what factors significantly motivate them to go abroad. Taiwan's SMEs play a vital role in her economic development and outward FDI, and this study therefore focuses on the outward FDI of Taiwan's SMEs. We apply the hazard rate approach to perform an empirical analysis, taking into consideration the conditional probability of the element of time. Among SMEs, the lower the degree of "capital intensities," the larger the "firm sizes," the higher the "export ratios," or the larger the level of "R&D intensities" are, the greater the intention will be to undergo FDI. The major factors motivating Taiwanese SMEs to conduct FDI in recent years are "utilizing local labor," "expanding markets," and "following major clients."