Small And Mid-size Enterprises Research Articles

Identifying and prioritizing the barriers to green innovation in SMEs and the strategies to counteract the barriers: An interval-valued intuitionistic fuzzy approach

Increasing environmental burdens and the importance of innovation in the presently competitive environment have encouraged small- and mid-size enterprises (SMEs) to adopt and implement green innovation practices. This process, however, is faced with many limitations and obstacles. The purpose of this study is to propose a framework to identify barriers to green innovation in SMEs and to provide solutions/strategies to overcome such barriers. Using the systematic literature review (SLR) method and the opinions of 20 experts, the study primarily identified 29 sub-categories of barriers falling under seven main categories including “management”, “organization”, “human resources”, “financial resources”, “external cooperation”, “customers, markets or competitors”, and “the external environment.” Similarly, 22 strategies were discovered that could help to counteract the barriers identified. To determine the weights of the barriers, the Intuitionistic Fuzzy Multiplicative Best-Worst Method (IFMBWM) was used. The strategies, too, were ranked through the Interval-Valued Intuitionistic Fuzzy MULTIMOORA (IVIF-MULTIMOORA) method. Then, a sensitivity analysis and a comparative analysis were applied to confirm the robustness of the proposed method and ensure the consistency of the obtained ranking of alternatives. As the results revealed, the optimal and effective solutions that could be used by policy-makers/managers to overcome the barriers to green innovation were “simplifying authorization and licensing procedures”, “effective environmental laws and regulations”, “shared responsibility throughout the supply chain”, “a supportive organizational culture”, and “merit-based selection of managers.”

Enhancing SME innovation across European regions: Success factors in EU-funded open innovation networks

This study examines the funding allocations to Open Innovation (OI) networks involving small and mid-size enterprises (SMEs) and other organizational actors by the European Union's Horizon 2020 Fast Track to Innovation program (2018–2021). Using a unique dataset of program application information at the participant level, the technological, organizational and locational characteristics of SMEs' OI innovation networks are analyzed. Success in securing funding is found to be linked to host regional innovation performance and to technological distance among SMEs and their partners, while organizational distance has a curvilinear effect. Counter to program objectives, partner heterogeneity has some mixed effects. Insights are offered for SMEs on strategic positioning and to policymakers on the design of future innovation policy initiatives.

The Key Impact of Management Modes for Innovation in SMEs

This study assists in obtaining a better knowledge of managerial and organizational factors favoring different types of innovation, highlighting the critical role of creativity, risk-taking, and performance management for operational innovation. Also, this study aims to simultaneously investigate interactions of exploration and exploitation innovation to show how managers and organizations are usually treated in exploration and exploitation innovation. A sample of 755 valid questionnaires from small and mid-size enterprises (SMEs) from diverse firms in the global south were employed and analyzed using the partial least square structural equation model to examine the proposed research model and assumptions. This study shows that creativity, risk-taking, and performance management are positively and significantly affect operational innovation in global south SMEs. From a strategic point of view, our findings demonstrate that SMEs must create innovation in order to maintain their performance. Managers of SMEs would be aware of the influence of various types of innovation on various aspects of business performance, such as marketing, operations, and finance. On a management level, the research findings assist SMEs in achieving high performance levels with their innovation projects. In addition, this research helps readers to develop a better knowledge of how organizations combine operating innovations and exploration.

An innovative blockchain-based system for human resources digitalization with traceable relationship management

Small and Midsize Enterprises (SMEs) have faced innovative changes in their organizational structure, especially in human resources (HR) and employee management: these digital structural changes have transformed their business practices and strategies. The employees with new technical skills have also been impactful in this digitalization. The HR departments in SMEs have become increasingly pivotal in recruiting new employees and supporting existing employees throughout the organization. ITSvil in Salerno (Italy) has developed the Easywork project based on the “Fenice” microservices architecture. This system supports the HR departments in efficiently managing HR activities through digitalization. The first step in acquiring new resources is formulating the employment contract, which is essential for stipulating agreements on specific job requirements. Blockchain technology and smart contracts are among recent technological innovations impacting this process. Writing contracts in digital codes to simplify and effectively manage the legal relationship involving bureaucratic tasks and cost management is now possible. The new digital system makes employment contract processing transparent, traceable, and reliable. This research presents the design and development of a new microservice compatible and integrable process with the “Fenice” system based on blockchain technology. The proposed digital system aims to make HR management activities more transparent and traceable.

Cultivating Regional Innovation Ecosystems in the Digital Age: Case Studies of Four Cites in China

This paper explores the cultivation paths of innovation ecosystems in the digital age by constructing a theoretical framework consisting of innovators, elements of innovation, platforms and digital governance. Four cities in China, Shenzhen, Hangzhou, Xuzhou and Weifang, were selected for in-depth case studies. Findings revealed that: (1) regions with ‘head enterprises’ and a strong industrial base achieve a competitive advantage via the synergy of digital industrialisation and industrial digitalisation; (2) digital technology pioneer regions can adopt digital industrialisation; (3) regions with a strong industrial base and traditional manufacturing industries can prioritise industrial digitalisation and (4) manufacturing regions with a large number of small and mid-size enterprises (SMEs) who can combine industrial digitalisation and digital value. This study provides theoretical and practical value for the cultivation of regional innovation ecosystems.

The Impact of Digitalization on the Financial Performance of Small- and Medium-Sized Enterprises: Empirical Evidence from an Emerging Economy

Digitalization is increasingly embracing nearly every part of our private and professional lives. However, whether digitalization is deemed to be a necessity that can boost the performances of small- and mid-size enterprises (SMEs) or it is a frivolous costly investment that hinders corporate activities is still unclear. This paper examines the impact of digitalization on the financial performance of SMEs in the context of an emerging economy. Using a comprehensive firm-level dataset consisting of over 5,000 SMEs in Vietnam during the period from 2005 to 2015, we find that digitalization plays a vital role in facilitating the financial performance of SMEs. Specifically, we find that the investment in computers, an e-mail system, internet connection and e-trading would pay off as it can lead to a significant increase in firm financial performance. We furtherfind that firms can benefit from digitalization because it can significantly improve productivity and sales, and yetdoes not lead to an acceleration in total cost. The positive effect of digitalization on firm performance is even more pronounced during the 2007–2009 global economic crisis, and thus highlights the pivotal role of digitalization in tackling the economic shock.

A Privacy Frequent Itemsets Mining Framework for Collaboration in IoT Using Federated Learning

Rapid advancement of industrial internet of things (IoT) technology has changed the supply chain network to an open system to meet the high demand for individualized products and provide better customer experiences. However the open-system supply chain has forced many small and midsize enterprises (SMEs) to adopt vertical integration by being divided into smaller companies with a distinctive business for each SME but a central alliance to produce a range of products and gain competencies. Therefore, existing models do not guarantee the protection of data privacy of individual SMEs. Moreover, especially for the IoT environment, collecting data in a secure way and revealing valuable knowledge in an IoT network is difficult. How to share data in a secure framework is of paramount importance in the internet of behavior field. In this article, a privacy-preserving data-mining framework is proposed for joint-venture industrial collaborative activities by combining federated learning and a “pre-large concept” of data-mining techniques. The novelty of the proposed approach is that, while mining high-utility itemsets (HUIs) from multiple datasets, it does not require direct data sharing. In the proposed method, the federated-learning framework can learn from aggregated learning parameters without scanning all data from different sets. The pre-large concept in this approach reduces the amount of scanning into different datasets. Thus, the approach makes it possible to train federated learning more quickly while protecting the privacy of individual data owners. The approach has been tested on real industrial datasets in a collaborative environment. Extensive experimental results show that the approach achieves high accuracy compared with conventional data-mining techniques while preserving the privacy of datasets.

Improving creativity among SME employees: exploring the role of organization-based self-esteem and psychological capital

PurposeUnlike multinational companies, small and mid-size enterprises (SMEs) have budget constraints and, thereby, cannot invest heavily in improving the creativity of employees. They look for alternative budget-friendly ways to do the same. The authors of the current paper attempt to identify two psychological-based constructs which positively influence creativity among employees. Both these psychological constructs may be improved among the employees using suitable interventions from the human resource (HR) professionals and line managers working in the organization. This study is an attempt to test the influence of organization-based self-esteem (OBSE) and psychological capital (PC) (both malleable) on creative performance behaviour (CPB) among SME employees.Design/methodology/approachValidated instruments were used to collect data. Structural equation model (SEM) was used to evaluate the 377 responses collected from the employees working in three SME's in India. All three SMEs work in the area of innovative process design and require a high level of creativity among employees.FindingsPC fully mediates the relationship between OBSE and the CPBs of employees. Employees experiencing higher levels of OBSE will develop higher self-esteem, and these employees will exhibit more creative behaviours, increasing the likelihood of achieving creative results.Research limitations/implicationsThis study provides valuable inputs to the creativity literature as it describes the process of how self-esteem influences the creativity of an employee. HR professionals working in SMEs can work on enhancing the OBSE and PC (both malleable) of employees to improve creativity among employees.Originality/valueTo the best of the researcher's knowledge, this is the first attempt to identify frugal ways to improve creativity, especially in SMEs.

How does government-backed finance affect SMEs’ crisis predictors?

This paper estimates the impact of public guarantees on crisis predictive indicators among small and mid-size enterprises (SMEs). We use a confidential database provided by the Italian Ministry of Economic Development on the universe of guarantees granted by the Central Guarantee Fund. We apply difference-in-difference regressions and propensity-score matching estimators to a sample of approximately 40,000 SMEs over the 2010–2018 period. We find that obtaining a public guarantee improves profitability both in the short- and medium-term. On the other hand, SMEs’ financial health worsens in the short run, but financial burdens are alleviated 2 years after the issuance of a guarantee. The economic and financial effects of government-backed loans are amplified for micro-sized firms, companies operating in the service sector and direct guarantees. Our results can thus support public authorities in designing credit guarantee schemes capable of preventing SMEs’ zombification and protecting them from the risk of debt overhang.

The effects of foreign direct investment on the performance of small-medium enterprises: The case of Vietnam

Foreign direct investment (FDI) is one of the most important elements influencing countries' international economic integration. FDI establishes direct, consistent, and long-lasting interconnections between economies as well as encouraging innovative technology and know-how transmission across territories while allowing host economies to offer their goods more extensively on global markets. FDI is also a source of investment financing that creates the climate for appropriate policies. Aside from the obvious advantages for all economic sectors, attracting FDI in small and midsize enterprises (SMEs) has a variety of additional benefits. For example, an opportunity to participate in the global supply chain for parts and components; an opportunity not yet wholly established in most developing nations but is critical for industrialization and improving income distribution through job creation for low-skilled employees. This study compared the impact of FDI on the performance of SMEs in Vietnam to that of a group of ASEAN nations with comparable economic structures including Indonesia, Malaysia, and Thailand. The empirical evidence indicates that FDI has a negative effect on the performance of SMEs in the group of four ASEAN member countries while having a positive influence on Vietnamese SMEs.

Application of the COHRV Conceptual Framework to Enhance Sustainable Manufacturing

For the implementation of Industry Industry 4.0 (I4.0), companies need the commitment of several departments, knowledge and technology within data management, cyber physical systems, and Internet of Things, among other pillars of I4.0. This industrial revolution (I4.0)offers opportunities for the development of competitive advantages, new market positions within a supply chain, new product design and processes, and manufacturing sustainability. Regardless of such benefits, for small and mid-size enterprises (SMEs) it represents a challenge, because they lack specific capabilities, qualified human resources, and technological and/or financial support. The challenges for SMEs from industrial sectors can be dealt with by means of strategic joint ventures, known as horizontal collaboration. Seen as the new vertical collaboration, horizontal collaboration offers a way for enterprises to combine their strengths in order to gain competitive advantages and develop new market opportunities. This paper presents the Resources and Value Horizontal Collaboration Model, “COHRV”, for its acronym in Spanish, structured as a guide to merge enterprises’ strengths such as knowledge transfer, qualified human resources, technology, and more. The COHRV model was designed as a disruptive business model, presenting a new perspective for horizontal collaboration projects between SMEs. To show the effective applicability of the COHRV model, data obtained from nine SMEs in a previous case study were used. The objective was to observe how the COHRV model works as a framework to create new strategies for SMEs, to work on a sustainable manufacturing venture.

Voluntary Retirement by Founder-Owners

Stable business run by a founder-owner are often disrupted at the moment of transferring its control. Preparing the necessary steps while the going is good is crucial for smooth transition. This qualitative study investigates an inner psychological journey of elderly business owners in initiating their retirement plans. We collected evidences from small and mid-size enterprises (SMEs) owners in France. We identified key factors that either advance or thwart the owners’ attachment to the organizations.

Typology and dynamics of actors` roles and positions within entrepreneurial ecosystems: an exploratory study

ABSTRACT This study explores how health-tech small and mid-size enterprises (SMEs) could better utilize the entrepreneurial ecosystems (EEs) around them in developing their business within this fast-growing yet under-researched industry. Based on the qualitative empirical study, we examine actor roles and related dynamics in the health-tech ecosystem to understand how firms could benefit from the ecosystem's resources. The study contributes to EE research by providing an empirically grounded typology of ten actor roles and examining how an individual company could change and develop its role in the network to grow and succeed. Moreover, it extends the current research on role typologies by explaining the various roles in EEs and underlines the importance of ecosystem dynamics. Managerially, the study highlights the importance of recognizing the company’s role(s) and the roles of other ecosystem members, which further aids in their strategic decision-making and future planning.

Adoption of ICTs as an emergent business strategy during and following COVID-19 crisis: evidence from Indian MSMEs

PurposeThis study aims to identify how ICT appeared as an emergent business strategy and to investigate the impact of ICT adoption factors on the perceived benefits of micro, small and medium enterprises (MSMEs).Design/methodology/approachA total of 393 responses from Indian small and mid-size enterprises (SMEs) were collected for the final analysis. The study presents the partial least-squares structural equation modeling with the Chi-square test and descriptive analysis as a methodology based on numerous independent variables and one dependent variable.FindingsThe findings indicate that ICT adoption during and following the COVID-19 pandemic is constant in nature of the enterprise. Moreover, the results indicate that different adoption of ICT factors influence on perceived benefits of organizational performance of Indian MSMEs that lent good support except for the regulatory framework.Research limitations/implicationsThe implications of the current research help Indian MSMEs to take investment decisions in various technologies that help the organization. Furthermore, managers and practitioners help the organization in deciding which technology adoption factors are more critical to the betterment of the organization.Originality/valueThe study found certain ICT adoption factors that have a significant role in organizational performance in Indian MSMEs. Moreover, during COVID-19, investigate ICTs' role as a business strategy.

Accelerating data analytics adoption in small and mid-size enterprises: A Singapore context

As with other technologies, decisions to adopt data analytics (DA) can create challenges, particularly for small and mid-size enterprises (SMEs), due to resource constraints. Our research assessed the factors that could accelerate DA adoption in SMEs. In Singapore, one-third of SMEs have yet to adopt DA, and it remains unknown how they plan their business strategies to stay ahead of competitors. To investigate how SMEs in Singapore embrace DA, this study used a framework of technological acceptance. Our analysis suggests that management and government support are critical to accelerating DA adoption in SMEs. Management and owners of SMEs must take the lead to explain the importance and relevance of data analytics to their companies, while the government could assist SMEs through grants, tax relief and subsidies to minimize the cost burden of adopting DA.

Commercialization networks in emerging technologies: the case of UK nanotechnology small and midsize enterprises

AbstractThis paper investigates how small and midsize enterprises (SMEs) utilize networks to commercialize emerging technologies. We build on literature on SMEs and innovation, networks, and how innovation occurs within collaborative arrangements. Contrasting network types and their influences on commercialization outcomes are probed in the context of SME value chain positions. An exploratory study is undertaken to offer a framework and findings that provide context and insight. We consider roles of SME agency and strategy to put forward a framework of network types. Using a multiple case approach of a sample of UK nanotechnology SMEs, value-chain positions and networks for commercialization are examined. Data are collected through semi-structured primary interviews with managers and informants and from secondary business databases and other sources.Commercialization outcomes are found to vary by SME network type and value chain positioning. SMEs can proactively create SME-led, peer-SME or broker-led networks that aid commercialization. SME-led networks enable successful commercialization of upstream and midstream products. Peer- SME networks are used for downstream commercialization. Broker-led networks facilitate commercialization in the upstream part of the value chain. Hybrid networks are used where SMEs pursue multiple commercialization strategies. Reactive approaches to networking and interrupted networks, regardless of value chain position, are unfavourable for commercialization. The study’s conceptual and managerial implications are discussed.

Extending the lean value stream mapping to the context of Industry 4.0: An agent-based technology approach

With the advancement of the 4th industrial revolution and its enabling technologies, researchers and practitioners discuss the mutual relationships and integration of Lean manufacturing with Industry 4.0 to enhance the manufacturing sector’s competitiveness. However, the literature falls short on how Lean principles and practices can support Industry 4.0. To contribute to reducing this research gap, this study explores the integration of the Lean practice value stream mapping (VSM) with hybrid simulation (HS) that combines discrete event and agent-based modelling and simulation. It aims to extend VSM scope to the context of Industry 4.0 to help Industry 4.0 initiatives in manufacturing companies, especially in small and mid-size enterprises (SMEs), wherein managerial approaches are still scarce, enabling it to capture the behaviour of more complex entities and distributed production systems. An HS-VSM framework is proposed, and its use is demonstrated through a proof-of-concept case developed in an SME from the furniture and related product manufacturing sector in Quebec, Canada. This study indicates that VSM combined with HS can assist Industry 4.0 roadmap development and help companies understand changes in materials, equipment, processes, and information flows associated with Industry 4.0 application scenarios.

Willingness for Change to New Norm for Traditional Food Business by SMEs Entrepreneurs

Traditional food represents the cultural identity that becomes an income source for Small and Mid-size enterprises (SMEs) entrepreneurs in Sabah. The sudden presence of COVID-19 since March 2020 has impacted traditional food entrepreneurs. This research examines the readiness of entrepreneurs to innovate their businesses through a new norm. Factor Analysis is used to analyse 21 parameters of a new norm for the traditional food business. This study developed three dimensions: enhancing existing business, new norm business and improving business skills. Entrepreneurs need to prepare strategies to meet new business norms. Support from the government and agencies is required to enhance SME entrepreneurs' business capabilities.

Data analytics in small and mid-size enterprises: Enablers and inhibitors for business value and firm performance

A critical question arises as to whether data analytics (DA) can bring value and improve organizational performance. The benefit offered by DA can be achieved only when organizations are able to direct their attention on the conditioning factors that amplify business value. At the same time, organizations should cautiously resolve the issues that dampen DA business value. This study applied resource-based view (RBV) and the dual factor concept to understand such factors within the Small and Mid-size Enterprises (SMEs) context. The results revealed that information and systems qualities were the catalysts for data analytics business value, whereas lack of understanding and concerns over data security and privacy were the most salient predictors that could prevent SMEs from realizing DA business value. Our study highlights the importance of understanding both enablers and inhibitors in IT business value research. We also offer strategies to stakeholders to help SMEs realize DA business value.

Do Islamic Banking Financial Instruments Achieve Equitable Income and Wealth Distribution?

The study investigates empirically whether the current practices of Sharīʿah-based financing contracts namely, Murabahah, Musharakah, Mudarabah, Istisna, Bai Bithaman Ajil, Ijarah and other contracts in the Malaysian Islamic banking industry achieved equitable income and wealth distribution. To do so, the study applied the bounds test and ARDL model to investigate the relationship between Sharīʿah-based financing contracts and Malaysian GINI coefficient index over the period from 1Q 2014 to 1Q 2019. In analyzing the long- and short-run implications, it was found that the practice of such Sharīʿah-based financing contracts in the Islamic banking industry achieved equitable income and wealth distribution in Malaysia using Murabahah, Mudarabah, Istisna, Bai Bithaman Ajil, and other (i.e., forward Ijarah) financing contracts. On the other hand, the findings indicated that Musharakah and Ijarah-based financing contract practices did not achieve equitable income and wealth distribution in Malaysia. This may be because the current practices of both contracts which seem to be handled as debts instruments and designed to the benefit of the banking sector only. To improve the Islamic banks’ financing practices in Malaysia, the outcomes of the study suggest that bank operators should strengthen the weight of Sharīʿah-based profit and loss sharing financing contracts with small and mid-size enterprises (SMEs) instead of corporations. In other words, Islamic banks are able to achieve fair income and wealth distribution and uphold the concept of justice for all by gradually increasing Musharakah-based financing for SMEs that can potentially grow and create economic value. Further, to solve the problem of Ijarah contract practices, Islamic banks must take steps to enhance the requirements of Ijarah contracts, specifically ownership transformation, maintenance responsibility, default penalty, and the issue of legal treatment as well as bear the costs, risks and rewards related to the leasing asset instead of borne by the clint. The empirical findings of the study will provide valuable input for banks policymakers, particularly central banks, and Islamic bank management to evaluate the current practice of Islamic finance and proactively correct shortcomings to achieve equitable wealth distribution. This study is a pioneering investigation that empirically evaluates whether the current practices of Islamic banking financial instruments achieve the aims of the equitable financial system, and ensure that Islamic banks, as intermediaries, address the issue of inequality and attain equitable wealth distribution worldwide.