Strategies Of Small And Medium-sized Enterprises Research Articles

Exploring circular economy strategies of SMEs in the Italian tanning cluster of Arzignano: A multilevel perspective of reactive and proactive strategies

While the Circular Economy predominantly affects large companies and multinationals, its impact on Small and Medium-sized Enterprises (SMEs) is an emerging research area. This research aimed to unfold the Circular Economy strategies implemented by SMEs within an industrial cluster context. Ten companies from the Italian tanning cluster of Arzignano were selected as case studies. Thematic analysis, pattern-matching, and multi-value Qualitative Comparative Analysis techniques were used to analyze primary and secondary data. Main findings revealed that CE strategies taken by the studied companies were characterized by the economic and efficiency benefits provided, such as resource-saving, waste management, energy use reduction, and materials selection for further recycling. SMEs' management is targeting compliance with environmental regulations/certifications, market pressures, and cost-benefit assessments, evidencing an adaptive behavior to external exigencies. Novel findings came from the meso level, such as a ‘symbiotic circularity’ strategy taken by two SMEs and their value chain for co-production, and the chain actions related to recycling, remanufacturing, and reusing wasted products by partner companies. A cascade chain of interdependent actions toward Circular Economy practices was also identified within the cluster level. Reactive and proactive Circular Economy strategies were identified in a multilevel framework.

The role of flexibility, digitalization, and crisis response strategy for SMEs: Case of COVID-19

ABSTRACT We explore the impact of COVID-19 on small- and medium-sized enterprises (SMEs) and examine how crisis management strategies, particularly related to flexibility and digitalization, have influenced their responses during and after the pandemic. In this regard, we investigate the relationships between strategic flexibility, digitalization, digital technology adoption, COVID-19 perception, and firm strategy after the pandemic by specifically incorporating the mediating role of the crisis response strategy. Based on a survey of 206 Turkish SMEs in manufacturing and service industries, our research employs structural equation modeling using Smart PLS. Our findings indicate that crisis response strategies play a significant role in shaping the firm strategy after COVID-19, mediating the impact of strategic flexibility, digitalization, digital technology adoption, and COVID-19 perception. The findings highlight the importance of crisis response strategies—including optimizing business models, developing marketing channels, investing in technological innovation, diversifying into new business areas, and integrating the supply chain—during the COVID-19 period. These strategies are crucial influencers in shaping the firm strategies of SMEs beyond the pandemic. In particular, SMEs demonstrate adaptation by reassessing and restructuring their product portfolios, expanding their presence in regional markets, and establishing strategic collaborations to thrive in the evolving business landscape.

The mediating role of accounting information systems in small and medium enterprise strategies and organizational performance in Iraq

This paper examined accounting information systems (AIS) as a mediator between small and medium-sized enterprises (SMEs) strategies, including (finance source, administrative innovation, organizational culture, developing capabilities levels of SMEs, information source, development of business managers, and technological innovation) and organizational performance. In this quantitative study, 450 self-administered questionnaires were distributed to the managers and owners of SMEs using purposive sampling. Data were analyzed using the structural equation modeling (SEM) method via SmartPLS3 Software. The study offers empirical findings on the importance of AIS as a mediator, considers various factors, and provides clear strategies for better work performance. The study confirmed that the SMEs’ strategy and the use of an AIS significantly and positively affected SMEs’ organizational performance, while AIS use partially mediated between SMEs’ strategy and organizational performance. This result confirms that an SME can enhance its performance by using AIS. AIS can support organizational performance through an SME strategy, avoid human errors, provide cost-against-time savings, and assist in timely internal decision-making considering long-term benefits. However, the results may not reflect the actual performance situation and cannot be generalized to all provinces or other countries because environments differ.

The role of managerial competencies in managing resources for sustainable development strategy in SMEs

PurposeGrounded in upper echelon (UE) theory, this study aims to examine the role of managerial competencies (business experience, financial literacy and digital literacy) in sustainable development strategy, with resource management as a mediator.Design/methodology/approachThe empirical data collection is conducted through a survey completed by 297 top management teams of small and medium-sized enterprises (SMEs) operating in Pakistan. Structural equation modelling in Smart PLS is used to substantiate the hypotheses.FindingsThe findings reveal that financially and digitally literate managers significantly contribute to the sustainable development strategies of SMEs. However, experienced managers do not focus significantly on sustainable development strategies. Resource management partially mediates the nexus between financial literacy and sustainable development strategy, as well as between digital literacy and sustainable development strategy. In contrast, resource management does not mediate the nexus between business experience and sustainable development strategy.Research limitations/implicationsThis study recommends that SMEs should prioritize managers with digital and financial literacy over those with experience. SMEs led by a management team with digital and financial literacy are more effective in resource management for sustainable development practices, whereas experienced managers may not significantly prioritize managing resources for sustainability.Originality/valueWhile research based on the UE theory significantly contributes to the body of knowledge on sustainable development, the role of managerial competencies, particularly business experience, financial literacy and digital literacy, in sustainable development strategy via resource management is neglected. This research fills this gap in the context of UE theory and thereby enriches the literature.

Study Of Survival Strategies Of Hong Kong SMEs Under The Current Global Situation

Due to intense market competition and economic globalization, many small and medium-sized enterprises (SMEs) in Hong Kong face uncertain challenges, leading to a relatively high failure rate in the short term after opening. To cope with these challenges, SMEs must adopt survival strategies. This study examines SMEs' global challenges and how they can enhance their competitiveness. The review identifies five significant challenges: new market development, restructuring through operational integration, cost reduction, improved research and development, and transfer to other markets. The study also considers the survival strategies of SMEs and the external and internal factors that influence business sustainability. A theoretical examination of SMEs' survival strategies based on data collected in October 2023 from 317 SMEs is included in this study.

Enhancing the Vietnamese SMEs' Adaptation to Climate Change Through Human Resources: The Mediating Effect of Adaptability Culture

Adaptation to climate change has emerged as a significant priority for policy and research efforts. This study delves into the multifaceted issue of climate change adaptation within Small and Medium-sized enterprises (SMEs) operating in Vietnam. Beyond merely mitigating vulnerability, these enterprises are actively seeking out avenues for green innovation, using adaptive diversification strategies to navigate the challenges posed by a changing climate. Adaptation to climate change has emerged as a significant priority for policy and research efforts. This study focuses on the adaptation strategies of SMEs in Vietnam in response to climate change. It not only aims to mitigate vulnerability but also explores green innovation opportunities through adaptive diversification. The research investigates the influence of human resources on the ability to adapt to diversification, with organizational adaptive culture acting as a mediating variable within the theoretical framework of the Resource-Based View (RBV). Through an analysis of survey data from 280 SMEs in Vietnam using Structural Equation Modeling (SEM) in SmartPLS4, the study reveals that both human resources and adaptive culture positively impact SMEs' adaptation to climate change. These findings provide valuable insights for management and policy, underscoring the importance of investing in human resources and nurturing adaptability culture within SMEs to effectively tackle climate change challenges.

Navigating supply chain disruptions: a purchasing portfolio matrix analysis of Chinese manufacturing SMEs in the context of COVID-19

PurposeThe purpose of this paper is to provide small and medium-sized enterprises (SMEs) in emerging markets with an updated Purchasing Portfolio Matrix (PPM) specifically for international sourcing. This data-driven PPM matrix is designed to provide a dynamic and process perspective that can help SMEs survive the disruptions caused by emergency situations such as the global COVID-19 pandemic.Design/methodology/approachThis research reports on qualitative interviews with experienced informants from 15 SMEs in the manufacturing industry. The authors follow process-based research using a combination of retrospective and real-time case study approaches to gradually unveil the dynamics in segmentation and sourcing strategies in the international sourcing context during the COVID-19 pandemic.FindingsThe findings reveal the dynamics of segmentation and international sourcing strategies during global disruptions and unpack the underlying logic behind the dynamics that is specific to SMEs in emerging economies.Originality/valueExisting literature on PPM predominantly focuses on static and normal sourcing circumstances. This paper addresses this gap by adopting a dynamic approach to study how sourcing strategies of SMEs from emerging economies evolve in a highly volatile environment from an international sourcing perspective.

The support of small and medium enterprises for sustainable development in the EU

The article examines the small and medium-sized enterprises (SMEs) support measures for sustainable development in the European Union (EU). The study focuses on the theoretical approaches to the concept of sustainable development that is the basis for the development of sustainability programs in the EU in which small and medium-sized companies take part. The article scrutinizes the aim of the European countries to decrease the ecological footprint by taking collective action in the EU and introducing measures to make the production process greener in the EU member countries. The authors underline the role of SMEs in the realization of 17 Sustainable development goals (SDGs) developed by the United Nations. They outline the support measures for sustainable development which number has increased considerably in EU-27 member states in the last three years and that include the support measures for improving regulation of the SMEs activity, their access to resources in accordance with the SME Strategy for sustainable and digital Europe, measures to introduce innovations in ecological and social spheres; technologies of the circular economy and wasteless production that can be implemented in Russia. The study is based on the data of international organizations, international agencies and documents of the European Commission.

Pollution prevention strategies of SMEs in a green supply chain finance under external government intervention.

Small- and medium-sized enterprises (SMEs) are an important force in the promotion of economic development. However, SMEs in the supply chain are often severely punished by the government for polluting the environment through their production processes. Therefore, it is crucial to solve the environmental pollution problem of SMEs. To compensate for the "common knowledge" assumption of participants in traditional game theory, this study constructs an evolutionary game model of a green supply chain composed of SMEs, core enterprises, and commercial banks. The strategic decisions of the supply chain members are analyzed in relation to external interventions of the government. Subsequently, the impact of government incentives and penalties on these strategic choices is considered. The results show that government incentives can promote SMEs' choice to use pollution control strategies, and government penalties can reduce the risk of an SME defaulting, thus promoting the healthy development of a green supply chain finance system. Furthermore, increasing the new income of SMEs, raising the guarantee rate of core enterprises, and reducing the cost of green loans reviewed by banks and the guarantee cost of core enterprises can effectively promote the equilibrium of the tripartite evolutionary game. These findings indicate that the game model introduced here can effectively solve the environmental pollution problems of SMEs and promote the healthy development of a green supply chain finance system.

Promoting Gender Equality in Jordan: A Gender Review of the National Entrepreneurship and SME Growth Strategy 2015-2017

The Hashemite Kingdom of Jordan is an upper –middle income country with very low participation of women in the formal economy. Through the promotion of small and medium sized enterprises (SMEs), there is an opportunity to promote greater gender equality in an important sector of the economy. Unfortunately, national policies are rarely developed with a systematic gender analysis. Using Jordan’s National Entrepreneurship and SME Growth Strategy 2015-2017 (the SME Strategy) as a case study, this article assesses the extent to which entrepreneurship policy in Jordan is inclusive of gender. Overall, the assessment concludes that the SME Strategy does not adequately address gender inequalities or the needs of women in business. It lacks a gender analysis and consequently gender is not integrated into the Strategy’s objectives, activities, budgeting or indicators. The assessment provides recommendations for greater gender sensitivity in national policies. They include ensuring stakeholder engagement to support women entrepreneurs, conducting a systematic gender analysis and implementing further actions based on the analysis.

Motivations behind SME greenfield investment in emerging markets

PurposeThis paper identifies the motivations for small- and medium-sized enterprises (SMEs) when they undertake greenfield foreign direct investment (FDI) into an emerging market. It elucidates the factors that influence SMEs to choose a fully equity-based investment despite the significant risks and commitments involved with greenfield FDI.Design/methodology/approachThis exploratory study uses case study research based on interviews conducted with managers and founders of 16 German SMEs that have established greenfield operations in Malaysia.FindingsBuilding upon the transaction cost theory, five major motivations are identified that drive greenfield choice among the SMEs. The results imply that SME motivation for greenfield is derived from a combination of strategic asset-seeking determinants and culturally driven reactions to external and behavioral uncertainty. The results also ascertain that these motivations have less to do with the size and revenue of the firm, but hinge on the SMEs’ inner antecedents such as asset specificity, international experience, proprietary knowledge and ownership mode.Originality/valueThe findings clarify the literature on equity-based entry mode for SMEs in emerging economies, enabling a closer understanding of the organizational and dynamic experiences and an overview of the auxiliary competencies these companies have to compete in the global market. The conceptual insights and empirical evidence derived from this study contribute to the intellectual discourse and managerial implications in the field of internationalization strategies of SMEs, particularly from developed countries into emerging markets via greenfield FDI.

COVID-19 and service innovation strategies of tourism and hospitality SMEs in an emerging country

PurposeThis study aims to examine the impact of COVID-19 on tourism and hospitality small and medium-sized enterprises (SMEs) in an emerging country located in Latin America and identifies service innovation strategies adopted by these firms to survive a prolonged crisis.Design/methodology/approachA qualitative investigation was conducted drawing on a framework of imposed service innovation. Data were obtained from in-depth interviews with owners/managers of 20 SMEs in the hospitality and tourism sector in Chile.FindingsFindings show that the effect of COVID-19 on SMEs includes a decline in demand due to lockdowns and restrictions, with minimal government support. Tourism and hospitality SMEs developed different service innovation strategies to confront the crisis, and several businesses were even able to exploit new opportunities for future growth.Originality/valueThe effect of COVID-19 and SMEs' service innovation strategies to confront a prolonged crisis is a topic that is largely unexplored, particularly in the tourism and hospitality sector. The findings contribute to the literature on emerging markets, crisis management and SME innovation in tourism and hospitality. The findings provide managerial implications for SME managers, governments and policymakers.

Communicating the Resilience and Corporate Social Responsibility of SMEs during Lockdown in Spain: A Visual and Exploratory Study of Communication Mechanisms and Strategies

The health crisis caused by COVID-19 has led to changes in the behaviour of businesses during lockdown, especially Small and Medium-sized enterprises (SMEs). This study aims to identify the capacity for reaction, resilience, and corporate social responsibility (CSR) from direct sources and from strategic communication categories. Firstly, to discover the communication mechanisms and strategies of innovative SMEs during lockdown in Spain for overcoming difficulties. And secondly, to confirm “Food and Drink”—sector SME resilience capacities through their communications, and the CSR capacity of the SMEs that supports the sustainability to the tourism sector. For this purpose, a qualitative analysis of the 2.0 messages communicated by the companies was carried out and a map generated from social network analysis to identify the most resilient SMEs based on strategic communication elements used. The results show an uneven business reaction that reflects the change of paradigm in communication with customers that is occurring heterogeneously. This study is original because few on this theme apply to SMEs in the Spanish context. We highlight they are all from the “Food and drink” sector and included in the list of enterprises with high growth rate through entrepreneurial spirit and innovation, allowing us to make certain comparisons and understand certain differences and respective resilience, including supply chains and CSR.

Analysis of the Financial Internal Control Strategies of SME Based on the Background of Big Data

With the improvement of the level of market economy and the improvement of the state's attention to small and medium-sized enterprises (SME), the number of small and medium-sized enterprises in China is gradually increasing, and the market competition is also becoming increasingly fierce. Under the background of big data, the competition faced by small and medium-sized enterprises is more severe. Strengthening the management of financial internal control can ensure that enterprises can successfully complete their development goals and improve their market competitiveness, so as to realize the healthy development of small and medium-sized enterprises. Combined with the significance of financial internal control of small and medium-sized enterprises under the background of big data, this paper emphatically analyzes the problems existing in financial internal control of small and medium-sized enterprises under the background of big data. According to the analysis results, this paper puts forward the strategies of financial internal control of small and medium-sized enterprises under the background of big data, for reference.

Moving Beyond Business as Usual Toward Regenerative Business Practice in Small and Medium-Sized Enterprises

Environmental degradation is a complex global challenge requiring the urgent attention of small and medium-sized enterprises (SMEs), which are collectively responsible for a large proportion of global pollution. For those SMEs who are still thinking about sustainability at the level of the organization and reducing its environmental damage, there must be an immediate shift in SME strategy and operations to consider planetary systems and practices that can regenerate ecosystems critical for the business's success. Responding to this urgent need, the authors were keen to identify how SMEs could move from “doing less bad” to “doing more good,” as a critically needed shift toward “regenerative business practice.” Using two case studies of Australian manufacturing sector SMEs already self-identified as regenerative business practices, their transition pathways and current operations were explored for insights and lesson learning that could be used to empower other SMEs. Collected interview data revealed three themes of priority during the two SMEs' journeys: (1) Organization and Nature conviviality; (2) Organizational freedom to innovate; and (3) Organizational innovative outlook. The SMEs' experiences were also explored in relation to an “Action Framework for Regenerative Business” developed by the authors. The framework draws on Stewardship Theory together with a set of “Principles and Strategies of Regenerative Business” for SMEs to consider their current operations and identify opportunities for their next steps accordingly. Such directed actions are imperative to move away from just “reducing pollution” to “restoring planetary systems,” demonstrating truly responsible consumption and production. Within the framework the authors add “advocate” to the existing stewardship roles of “doers,” “donors” and “practitioners,” which acknowledges the importance of this role in enabling SMEs to shift practices; in this case to regenerative business practice.

Online branding strategies of family SME wineries: a Hungarian-German comparative study

PurposeBoth Hungary and Germany belong to the old-world wine-producing countries and have long winemaking traditions. This paper aims at exploring and comparing online branding strategies of family SME (small and medium sized enterprises) wineries at Lake Balaton (Hungary) and Lake Constance (Germany), as two wine regions with similar geographic characteristics.Design/methodology/approachThis paper, based on a total sample of 37 family wineries, 15 at Lake Balaton and 22 at Lake Constance, investigates the differences in brand identity on the website, brand image in social media and online communication channels deployed in both wine regions. The study applies a qualitative methodology using MaxQDA software for conducting content analysis of texts in websites and social media. Descriptive statistics and t-test were conducted to compare the usage of different communication channels and determine statistical significance.FindingsAt Lake Balaton, the vineyard, the winery and the family, while at Lake Constance, the lake itself and the grape are highlighted regarding family winery brand identity. The customer-based brand image of Hungarian family wineries emphasizes wine, food and service, with the predominant use of Facebook. In the German family wineries, the focus of brand identity is on wine, friendliness and taste and includes more extensive usage of websites.Originality/valueThe paper deploys a novel methodology, both in terms of tools used as well as geographic focus to uncover online branding patterns of family wineries, thereby providing implications for wine and tourism industries at lake regions. It compares the share of selected most-used words in the overall text in websites and in social media, and presents the key findings from this innovative approach.

New Distribution Strategies of Korean SMEs in Post COVID-19 Pandemic Era: Focusing on the Innovation of Official Distribution Channels

Purpose - In this study, we aim to explore new distribution strategies for sustainable growth in the era of the 4th industrial revolution, focusing on SMEs (small and medium-sized enterprises) in Korea, and suggest ways to upgrade the government s official distribution channel to the next level. Design/methodology - First of all, this paper explored the prior research, the current status of sales support for SMEs, and the changes in the distribution industry due to COVID-19 pandemic. Based on Moon (2016)’s ABCD strategic model - Agility, Benchmarking, Convergence, and Dedication, the study then derived directions in which official distribution channels should move and the new distribution strategy for Korean SMEs to secure competitive advantage. Findings - First, in terms of ‘Agility’, in order to upgrade official distribution channels, which are currently at some competitive disadvantages compared to private distribution companies, we must quickly introduce technologies for the 4th industrial revolution, such as AI, Big Data, etc., and establish precise strategies to strengthen the capabilities of SMEs. Second, in terms of ‘Benchmarking’, the use of “Chamelezones” has been increasing to enhance the competitiveness of offline stores in line with recent ontact trends. Therefore, official distribution channels should also benchmark such cases, strengthening their competitiveness by utilizing offline spaces more efficiently and effectively. Third, in terms of ‘Convergence’, in line with the rapidly changing trend of the times, official distribution channels should also promote active partnerships with media commerce, e-commerce and ICT platforms, as well as cooperation with private retailers, and focus on creating synergy effects through them. Finally, from the perspective of ‘Dedication’, digitalization should be promoted step by step, finding the sector that can accelerate digital among the value chains of official distribution channels, and continuing to discuss how to digitize it realistically. Originality/value - Based on this analysis, we have presented strategies and implications for innovating official distribution channels for SMEs, which will contribute to enhancing the competitive advantage of official distribution channels in the post COVID-19 pandemic era.

Internationalization processes for sub‐Saharan Africa's small and medium‐sized enterprises: The case of Ivory Coast

AbstractThe aim of this research is to characterize the main internationalization paths of African small and medium‐sized enterprises (SMEs) particularly Ivorian ones. From our results analysis, it appears that the internationalization strategies of African SMEs are specific and adapted to their environments and characteristics. For example, it is important that Ivorian SMEs' managers take into account the national culture and the characteristics of the host market (situation of significant need, market saturation, protectionism) during their international approaches. In addition, we find out that most Ivorian SMEs adopt upstream (import) and downstream (export) internationalization with import as the first mode of entry into foreign markets. Finally, we observe that it is essential that African governments recognize the potential of international SMEs for economic development by introducing support programs. Otherwise, African SMEs would not be able to compete globally and grow.

The interplay effects of skill-enhancing human resources practices, customer orientation and tourism SMEs performance

PurposeThe purpose of this paper is to examine the interplay of skill-enhancing human resources practices, customer orientation (CO) and tourism small- and medium-sized enterprises (SMEs) performance indicators.Design/methodology/approachData for 194 valid cases are gathered through face-to-face techniques in Albanian tourism SMEs. Structural equation modeling is implemented to analyze data and test the hypothesis proposed.FindingsOverall, both skill-enhancing human resources (HR) practices (i.e. recruitment/selection and training) are not associated with SMEs performance. Results suggest that using HR selection/recruitment practices are not associated to SME’s CO. Contrary, implementing skill-enhancing HR training practices is significant for SMEs strategy to focus and address customers’ wants and needs. Finally, it was found that the CO mediates the relationship between skill-enhancing HR training practices and performance, but this was not true on the skill-enhancing HR recruitment/selection practices-performance relationship.Originality/valueThis study makes contributions by further informing the debate about the direct and indirect link between skill-enhancing HR practices and performance. Additionally, it examines the precise role of the skill-enhancing HR practice on SMEs’ culture and or strategy to create value for customers.

Effects of environmental corporate social responsibility on innovativeness of spanish industrial SMEs✰,✰✰,★,★★

• Environmental corporate social responsibility (ECSR) enhances SMEs’ innovativeness. • Innovativeness embeds technological efforts (R&D) and results (product and process innovation). • We provide empirical evidence over a large sample of industrial SMEs. • ECSR promotes sustained innovativeness in already innovative and noninnovative firms. • This evidence strengthens the business case of pro-environmental strategies. This study analyzes how environmental corporate social responsibility (ECSR) strategies contribute to enhancing innovativeness among small and medium-sized enterprises (SMEs) by developing technological resources. We test our hypotheses over an eight-year period using a panel of 2,405 industrial SMEs in Spain. We empirically find that ECSR drives the building of firms’ technological resources, which results in an enhancement of their technological effort or R&D and outcomes in terms of product and process innovation. ECSR intensifies innovation for innovative firms and catalyzes the inception of innovation for previously non-innovating firms, and the resultant effects are sustained over time. We contribute to the literature by analyzing the effects of ECSR in promoting the innovation of firms beyond the well-known influence on green innovation. Further, we examine the neglected research area of the environmental strategies of SMEs. Our findings strengthen the instrumental innovative value of ECSR, specifically for SMEs.