Small- And Medium-sized Enterprises Policy Research Articles

Stress and resilience to migrant entrepreneur-managers of small and medium enterprises during COVID-19 pandemic

PurposeThe purpose of the study is to investigate the stressors faced by migrant entrepreneur-managers of small and medium-sized enterprises (SMEs) during the COVID-19 pandemic, as well as their resilience strategies for reviving their businesses.Design/methodology/approachThis study employs a qualitative research design based on grounded theory. Semi-structured interview questionnaire was used for one-to-one interviews with 20 migrant entrepreneur-managers, representing ten different business sectors during the peak of the COVID-19 pandemic of 2020 and 2021. Interviews were transcribed, coded into open code, axial code and selective code to identify the major themes, and analysis was done into three levels to explore the stressors and initial strategies implemented to cope with the crisis. Trustworthiness of the findings was ensured by credibility, transferability, dependability and conformability, and reflexivity.FindingsThis study explored three types of stressors: finance-related stressors, supplies-related stressors and human resources-related stressors in migrant SME entrepreneur-managers during the COVID-19 pandemic. The study revealed the use of comprehensive supply chain strategies followed by migrant SME entrepreneur-managers to be resilient enough to cope with a crisis situation like the COVID-19 pandemic.Originality/valueThis study covers an under-researched area of research related to stressors and resilience strategies in migrant SME entrepreneur-managers during the pandemic situation. A large body of prior research contributes to employees' stress and coping behaviors, while this paper focuses on stressors in migrant entrepreneur-managers in the special context of pandemics and their strategies to be resilient during a crisis situation. Thus, the findings of this study contribute to SME entrepreneur-managers, policy makers and academicians so that a large number of migrant entrepreneurs can develop resilient strategies for crisis situations. Furthermore, this study contributes to the supply chain resilience literature and resource dependency theory.

Effect of Entrepreneurial Capabilities and Cultural Diversity on SMEs’ Performance

Although several studies have analyzed how entrepreneurial capability and cultural diversity affect SME performance, this study aims to demonstrate the effect of a range of entrepreneurial capabilities and cultural diversity on small and medium-sized enterprises (SME) performance. The study involved the analysis of 200 questionnaire-based SME owner-manager surveys within Kumasi metropolis, Ghana, influenced by the Partial Least Squares Structural Equation Modeling (PLS-SEM) technique. The study found that there is a significant positive correlation between cultural diversity and entrepreneurial capability, cultural diversity and SME performance, entrepreneurial capabilities and SME performance. These findings contribute to an empirical study comparing entrepreneurial capability and cultural diversity on Ghanaian SME performance. Further recommendations are made for SME managers, policy makers and future researchers.

Effect of Entrepreneurial Capabilities and Cultural Diversity on SMEs’ Performance

Although several studies have analyzed how entrepreneurial capability and cultural diversity affect SME performance, this study aims to demonstrate the effect of a range of entrepreneurial capabilities and cultural diversity on small and medium-sized enterprises (SME) performance. The study involved the analysis of 200 questionnaire-based SME owner-manager surveys within Kumasi metropolis, Ghana, influenced by the Partial Least Squares Structural Equation Modeling (PLS-SEM) technique. The study found that there is a significant positive correlation between cultural diversity and entrepreneurial capability, cultural diversity and SME performance, entrepreneurial capabilities and SME performance. These findings contribute to an empirical study comparing entrepreneurial capability and cultural diversity on Ghanaian SME performance. Further recommendations are made for SME managers, policy makers and future researchers.

Recovery planning and resilience of SMEs during the COVID-19: experience from Saudi Arabia

PurposeThe aim of this study is to tell a story about how the coronavirus 2019 (COVID-19) pandemic affects small- and medium-sized enterprises (SMEs), using Saudi Arabia as an example. In particular, this study explores how SMEs in Saudi Arabia address needed changes in their survival strategy in the market during the COVID-19 pandemic.Design/methodology/approachThis reflective essay is based on the “White Paper 3” of the Global SME Policy Network (GSPN). The GSPN is a global think tank based in Saudi Arabia. As one of the founding leaders of the GSPN and one of the authors of White Paper 03, the author writes this reflective essay based on the interviews of the Chief Executive Officers of 111 SMEs in Saudi Arabia. The interviewees were from six administrative areas including Al-Baaha, Eastern Region, Madinah, Makkah, Qassim and Riyadh. Importantly, 84.7%interviewees were from Riyadh.FindingsThe government has provided significant efforts and stimulus package to keep stable employment and small and medium businesses. A majority of the companies were satisfied with the stimulus packages announced by the government. The author believes that organizations need to monitor and evaluate all the developments associated with the spread of the emerging virus and to develop and implement contingency plans to meet any undesirable circumstances arising from COVID-19 pandemic.Originality/valueThe author believes that the role of SMEs in economic transformation and Vision 2030 is imperative. The author observes that Saudi Arabia is working to increase the contribution of SMEs to gross domestic product from 20% to 35%. Other countries should continuously evaluate the SME impact because of the COVID-19 and continue the support based on the evaluation report such as Saudi Arabia.

Influence of Employee-Focused Corporate Social Responsibility and Employer Brand on Turnover Intention

The purpose of this paper is to investigate employee turnover intention among small and medium-sized enterprises (SMEs) in Malaysia, where difficulty in retention of employees is recognized as being a major issue for SME managers. This study seeks to focus on the mediation effect of employer brand between corporate social responsibility (CSR) and turnover intention. A literature review on CSR indicates that employer brand and turnover intention provide the basis for the research design and hypotheses. Self-administered questionnaire survey, involving 384 respondents from registered SMEs in Selangor, W.P. Kuala Lumpur, and Johor Bahru were analyzed. This study is significant in two ways: Firstly, the findings supported the relationship between employee-focused CSR and turnover intention. Secondly, employer brand was also a significant mediator between CSR and turnover intention. The study findings are expected to guide SME managers and policy makers on employee related decisions and also provide them with insight on the benefits that could be derived from employee-focused CSR. Keywords: CSR, Employer brand, SMEs, Turnover intention. DOI: 10.7176/EJBM/12-9-07 Publication date: March 31 st 2020

The evolution of SME policy: the case of New Zealand

ABSTRACTBuilding on policy process theories, this study constructs a meaningful historical narrative that explains the developments in small and medium-sized enterprise (SME) policy in New Zealand during the period 1978–2008 that marked the point where SME policy was firmly institutionalized as a subsystem within the wider economic policy framework. Temporality is a key characteristic of the policy process and historical accounts are an important means of describing how the process unfolds over time. The enquiry draws on archival sources as well as the personal accounts by individuals who were directly involved in SME policy development. Findings illustrate how the role of SMEs as a policy subsystem develops within an overarching economic policy framework. More specifically, we identify the periods of stability and those of change and what the role of actors, context and events is in this process by highlighting the complexity and interrelated nature of SME policy development. At the time of writing, the foundations of globalization are being called into question. Together with the ever faster rate of technological change, these are important pillars in the predominant political discourses that underpinned the formulation of SME policy during the period of this study. Understanding how SME policy was developed in the past could lead to a better understanding of the role of SME in this new world. As new policy is developed, this study brings to the fore the dynamics of institutional context, policy actors and stakeholders, and the impact they have on policy outcomes.

Small- and medium-sized enterprises in public procurement in primary social and healthcare services

Small- and medium-sized enterprise (SME) policies tend traditionally to focus on supply-side support instruments. However, public procurement provides a potential demand-side SME policy tool to enhance SMEs and maintain competition in the market. SMEs are often under-represented in public procurement compared to their overall economic weight. Existing literature provides limited information on the instruments of public service providers to create business opportunities for SMEs. The aim of this single case study is to describe the role of SMEs in the statutory public service provision of primary social and healthcare. The study also provides insight into the public service provider's ability to facilitate SME access to public procurement and thereby to enhance the efficiency of the local market. We found that a service voucher system could be an additional option for public procurement, as it allows more flexibility in involving small businesses in the production of public services.

Using Sequential Mixed Methods in Enterprise Policy Evaluation: A Pragmatic Design Choice?

1. IntroductionHow, where, when and why Governments intervene at microeconomic level to assist indigenous small and medium sized enterprises (SMEs) largely depends on the prevailing political ideology and historical context of the state in question (Breznitz, 2007, 2012; Mason & Brown, 2011). When governments intervene at firm level they attempt, advertently or inadvertently, to pick or make winners - or at least attempt to avoid picking losers. Targeting is seen as a very attractive public policy approach when viewed from the 'market failure', 'additionality' or 'value for money' perspectives (Bennett, 2012). However there is, as yet, no substantive empirical support for this interventionist approach (Bannock, 2005; Davidsson, 2008; Bridge et al. 2009; Bill et al. 2009; Bennett 2014). This Storey (2008) attributes to the reluctance of states to properly evaluate the outputs of their policies. Evaluation must be an integral part of the micro policy conception and implementation process. It is therefore a pre-requisite for 'evidence-based' policy approaches. Indeed OECD (2004) recommends that a COTE framework be adopted in the development of entrepreneurship and SME policy - C (Clarity & coherence - the proposed theory of change for the policy instrument), O (Objectives), T (Measureable targets) and E (rigorous evaluation).This paper investigates appropriate research approaches for evaluating the role and contribution of micro policy instruments to the subsequent performance of growth-orientated indigenous firms. It then outlines the research methodology and data analysis techniques employed to address the research objective above.The paper is structured as follows: Section 2 outlines the research strategy adopted in the study. The research design and process is then outlined in Section 3. Section 4 explains the data collection and analysis process and the overall results of the study whilst Section 5 provides a brief conclusion section. Finally Section 6 discusses future research directions for mixed methods research in business and management research.2. Research strategyQuantitative approaches can be helpful in establishing what happened in the change process but are less helpful in establishing why or how the state intervention contributed to firm performance. Qualitative approaches can equally be helpful in explaining the why and how by providing rich contextual data. It is argued that quantitative (QUAN) and qualitative (QUAL) approaches can be integrated within one study if the research problem requires methodological triangulation to increase the validity and reliability of the study (Patton, 2002). This can then maximise the 'knowledge yield' of the research study (McCall & Bobko, 1990). This methodologically combined approach has increased in popularity in recent years and is termed 'Mixed methods' research (MMR) (Johnson & Onwvegbozie, 2004; Tashakkori & Teddlie, 2007; Plano Clark & Creswell, 2011). In sum, Johnson and Turner (2003) define the principles of this approach as follows:Methods should be mixed in a way that has complementary strengths and non overlapping weaknesses. ... It involves the recognition that all methods have their limitations as well as their strengths. The fundamental principle is followed for at least three reasons: (a) to obtain convergence or corroboration of findings, (b) to eliminate or minimize key plausible alternative explanations for conclusions drawn from the research data, and (c) to elucidate the divergent aspects of a phenomenon. The fundamental principle can be applied to all stages or components of the research process' (Pg. 297).Saunders (2015) suggests that whilst mixing research methods is not new (just becoming more popular in its use), it is now essential to highlight the relative importance of each selected methodology to the study in addition to justifying the sequencing (concurrent or sequential) of the constituent methodologies. …

GOVERNANCE OF INNOVATION AND GROWTH IN SME NETWORKS

The aim of this article is to reveal what organising of innovation and growth can be enabled in small and medium-sized enterprise (SME) networks. This is especially interesting for the governance of loosely coupled networks. The research is conducted in the Danish food industry with three food-producing firm networks. The posed hypotheses are tested in a structural equation modelling (SEM) approach with the available data of 60 SMEs.The findings show that the governance of preferred behaviours of SMEs has a considerable significant positive impact on product and systematic innovation, which have a significant impact on growth. Governance of network connections is also found to have a significant positive impact on growth. The findings contribute to an understanding of how both governance of preferred SME behaviour and network connections enable innovation. This study provides SMEs, SME network organisations and policy bodies with an enhanced understanding of governance approaches.

The influence of organisation culture on E-commerce adoption

Purpose – The purpose of this paper is to empirically examine the influence of different organisational cultures on e-commerce adoption maturity in small- and medium-sized enterprises (SMEs). Design/methodology/approach – The data for this study were gathered using postal survey questionnaire and analysed using quantitative analysis methods. Findings – The result indicates a positive correlation between adhocracy culture and e-commerce adoption. However, those firms with hierarchy cultural characteristics indicate a negative correlation in relation to e-commerce adoption. The organisational culture differences explain these issues. Research limitations/implications – The analysis is conducted in a single country (i.e. Sri Lanka). Initial findings provide a basis for further research in other country. Practical implications – This research reveals the significance of organisational culture and how it influences e-commerce adoption maturity, both positively and negatively. The research findings are useful for SMEs that are planning or are in the process of implementing or reviewing their e-commerce, as well as for SMEs policy makers and business support community that engaged with e-commerce initiatives. Originality/value – This study is the first to research the influence of different types of organisational cultures on e-commerce adoption maturity. It fills the research gap by advancing the understanding between the association of organisation cultures and e-commerce adoption.

SME policy implementation as a relational challenge

The purpose of this paper is to study the relationship between actors, who implement the small- and medium-sized enterprise (SME) policy, and entrepreneurs, who are the targets of the policy, by focusing on the question who is serving whose interests. The paper presents a case study conducted in one of the sub-regions in Finland. The data include individual interviews with 10 policy implementers and 19 small business entrepreneurs and two group discussions. The data are approached from the perspectives of discourse analysis and positioning theory. The results are further interpreted in terms of agent–principal relations. The results indicate that one relational challenge faced in the implementation of the SME policy is the proxy agency, in which both policy implementers and entrepreneurs position themselves as the principal and the other party as their agent. The proxy agency can be viewed as an interactional pitfall caused by the incompatible discourses of entrepreneurs and policy actors and the actor positions constructed with these discourses. Besides addressing the relational problems enabled by certain individual discourses, the paper also demonstrates how there is also a need to address the potential conflict that stems from the collision between discourses.

An Evaluation of the Impact and Effectiveness of Environmental Legislation in Small and Medium‐Sized Enterprises: Experiences from the UK

ABSTRACTWith small‐ and medium‐sized enterprises (SMEs) accounting for 99.7% of the 4.7 million UK businesses, they can have a huge collective impact on the environment, which in turn is being increasingly regulated. This study investigated the impact and effectiveness of environmental legislation on UK SMEs as well as determining if ‘compliance’ results in improved environmental protection. Interviews were conducted with SME management, site staff, regulators, policy officials and support organisations. Forty‐four SMEs from the north‐west of England participated in the study, and overall a total of 99 individuals were interviewed. The study clearly indicates that the impact of environmental legislation on SMEs is overstated and impact increased commensurate with effort to comply and enforcement action. Only one of the SMEs studied had been prosecuted and only two had been inspected. Compliance issues identified in those SMEs subject to direct regulation did not correlate with previous compliance audits conducted. In general, SMEs had poor awareness of compliance issues; non‐compliance was only really recognised and acknowledged if identified by a regulator and only regarded as serious if prosecuted. Regulation of the environment is clearly only effective if complied with; understanding compliance levels can help measure the link between legislation and environmental protection. The effectiveness of environmental legislation can only be understood if SMEs are subject to regular regulatory contact. Recommendations to improve SME compliance control systems are provided. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.

SME Policy Support in Britain since the 1990s: What have We Learnt?

I examine the evolution of British government support to small and medium-sized enterprises (SMEs), using results from four waves of survey evidence in 1991, 1997, 2002, and 2004, and comparison with other analyses. Whilst government support is often based on overcoming market failures in the availability or use of supports to SMEs, I argue that successful government intervention is difficult to make effective at realistic cost – benefit ratios. The analysis demonstrates little evidence of market failure in provision or take-up of business support. If a market gap existed in the past, it is no longer apparent. Any systemic market failures that remain can influence only the start-up, very early stage growth, and/or the very smallest single-person businesses. I also find that different modes of delivery by centralised, regionalised, or localised structures have very little influence on market penetration. Decentralisation can increase take-up marginally, but this has been achieved only with tenfold increases in costs and major increases in administrative complexity. There is some marginal but significant benefit of policy delivery being in the hands of market, or near-market, agencies. But for all delivery bodies there is massive variability in use, impact, and satisfaction levels achieved. Finally, a brief analysis of gender differences suggests some significant variations in use of advice from different sources, but that government sources have some of the most adverse use levels for female-headed business, and this particularly applies to Business Link. Over the period 1991 – 2004 there is little to indicate the overwhelming success of government SME support policies, particularly at the level of cost that they now involve.

A Zeal for a Zeal? SME Policy and the Political Economy of the EU

This paper explores the relationship between the emerging characteristics of the European Union (EU) as a polity and its policies on small- and medium-sized enterprises (SMEs). Social compromises with the petit bourgeoisie were central to the stability of 19th century European democracies, predating many of the institutional compromises that embedded capitalism into the modern national states. As the EU has moved away from managing national interests through integrationist institutions, and pursued the more democratic credentials of good governance in the open method of coordination, it has followed a pattern of policy making that closely follows that of the EU's SME policy. After demonstrating these parallels, the paper explores the methodological problems of a comparative analysis of SME policy and then explains how the definitional opacity of the SME has given the EU great scope to embed its policies through SME policy.

Entrepreneurship and Competitiveness: The Europeanisation of Small and Medium‐sized Enterprise Policy in Croatia

This article presents the current position of the small and medium‐sized enterprises (SME) sector in Croatia and some selected indicators of the level of entrepreneurial activity. It also evaluates different components of SME policy and performance in the context of Croatia’s progress in the European integration process. The main part of the article presents qualitative research findings based on focus group interviews with Croatian entrepreneurs. In conclusion, the main obstacles to effective policy implementation are identified and the role that the Europeanisation of policy can play in improving the process of policy implementation in this field is examined.

An Evaluation of a Regional Development Agency's Grants in Terms of Deadweight and Displacement

For a number of decades considerable resources have been devoted to supporting Irish industrial policies. There has, however, been a distinct lack of evaluation of these policies. This is particularly pertinent to the Irish small and medium-sized enterprise (SME) sector given its employment potential and importance to the domestic economy. The Small Business Task Force reports that 98% of businesses in Ireland employ fewer than 50 persons and that these provide around half of the total employment in the private sector. There has, however, been a distinct lack of research into the additional impact of SME policy, and particularly the measurement of the twin concepts of deadweight and displacement. To help bridge this gap in Irish SME policy research, the author evaluates grants awarded to indigenous firms (91% of which are SMEs) by a regional development agency in the Shannon region of Ireland. Two components of additionality—deadweight and displacement—are used to aid this evaluation process. The prime methodological approach is that of the self-assessment approach, involving in-depth face-to-face interviews with the managing directors of 77 firms that received grants from the regional development agency in 1995. Data emanating from interviews are then used to obtain estimates of deadweight and displacement in the Shannon region of Ireland.

Discrete dialogues and the legitimation of EU SME policy

This article investigates the problem of legitimation in the European Union (EU) through an examination of EU small and medium sized enterprise (SME) policy. While SMEs are broadly perceived to be central to the prosperity of the EU, by definition they are anomalous to the economic order upon which the EU was established. The development of EU SME policy has therefore been the construction of a policy in a hostile political environment. Beetham's legitimation of power is used to identify discrete dialogues of rules, representations and beliefs, which help to map the development of the policy. These discrete dialogues highlight the tensions that arose during the institutionalization of the policy. The method employs different strands of institutional analysis to unpack systemic bias and so reveal specific failures of the EU to accommodate SMEs. In addition to describing the key characteristics of SME policy, the article also introduces a framework for policy analysis that combines sociological conceptions of legitimacy with constructivist approaches to the EU.

Public policy towards small firms: Spreading the jam too thinly?*

Abstract This article considers the growing economic role and continued economic importance attached to the UK's small and medium sized enterprises (SMEs), a sector of the economy which is overlooked by commentators and economists. The rationale underlying the UK's ‘SME policy’ is outlined and placed in a European context. In particular, the authors carefully set out the arguments and evidence apparently supporting the view that small firms, in particular those currently expanding, are a key ‘economic driver’, creating jobs even during recessionary periods. As such, the SME sector deserves the emphasis currently placed upon it by the recent Conservative government as a focus of policy intervention. However, with reinterpretation of the evidence such statements are carefully dismantled and shown to be somewhat of a cliche. The authors make clear their view that policy attention has focused on the wrong areas of the economy. Emphasis on developing a small firm sector has done little to improve the UK's long...