Small And Mid-sized Enterprises Research Articles

The interplay of entrepreneurial motivations, job attractiveness and family-owned SMEs growth: evidence from China Pakistan Economic Corridor region

PurposeThe purpose of this study is to provide a nuanced explanation of the linkage between entrepreneurial motivations, job attractiveness and growth of family-owned small and mid-sized enterprises (SMEs) using expectancy and institutional theories.Design/methodology/approachThe data was collected from small family business owners and job seekers in the same companies during interview time using a simple random technique.FindingsThe study found that three EMs among small business owners play a pivotal role in family SME business growth in underdeveloped trade regions like China–Pakistan Economic Corridor. These firms are interested in investing in seaport-related commerce, restaurants or hotels and real estate business.Practical implicationsThe government, small family business owners, universities and regional youth can use this applied research for their benefits alike.Originality/valueThe study contributes in multiple ways. First, the authors brought a unique context in the emerging economies context of an informal economy like Pakistan. Second, the authors have uniquely tested the moderating role of job attractiveness in the least developed regions. Finally, the authors have integrated family SMEs’ expectancy theory and institutional perspective.

Multi-agent collaborative conceptual design method for robotic manufacturing systems in small- and mid-sized enterprises

Robotic manufacturing systems are essential in the post-pandemic world owing to their high level of flexibility and automation during a labor crisis. However, designing a suitable robotic manufacturing system for small- and mid-sized enterprises (SMEs) is challenging, considering both their financial burdens and the current supply chain disruptions of component suppliers. To address these challenges, this study proposes a distributed multi-agent collaborative conceptual design method involving designers and suppliers to assist SMEs in implementing robotic manufacturing systems. First, we propose a common data model that enables knowledge interaction between different agents during collaborative conceptual design. Subsequently, based on the proposed data model, the agent-based collaborative conceptual design process is developed, which enables different agents to communicate, interact, and negotiate with each other according to their experiences and knowledge. Third, an integrative algorithm based on 2-additive fuzzy measures, Choquet integral, and stochastic multi-criteria acceptability analysis is implemented to support the multi-agent decision-making process to robustly select architecture alternatives. As a case study, a real industrial design project of a robotic manufacturing system required by our industrial partner, is adopted to demonstrate the effectiveness of the proposed method.

Ageing and welfare technology industry ecosystem for small and midsized enterprises (SMEs)

Ageing and welfare technology industry ecosystem for small and midsized enterprises (SMEs)

Core Technological Competence and Competitive Advantage: A Study on Chinese High-Tech SMEs.

The purpose of this study was to examine the effect of core technology competence on the competitive advantage of high-tech SMEs (small- and mid-sized enterprises in China). Based on the 379 valid responses collected from a survey, structural equation modeling (SEM) was employed to examine the research model. Infrastructure and technology, state-of-the-art technology, innovative research and development (R&D) capability, and organizational flexibility all have a significant impact on the competitive advantage, while infrastructure and technology, state-of-the-art technology, and innovative R&D capability have a significant effect on organizational flexibility. Organizational flexibility plays a mediating role between innovative R&D capability’s effect and competitive advantage. Under the continuous influence of COVID-19, we should promote development from the perspective of strengthening enterprise infrastructure and technology and improving organizational flexibility to gain a competitive advantage. This study reveals the internal relationship between core technology competence, organizational flexibility, and competitive advantage. The results of this study will help us to fully understand the survival status and competitive advantage of high-tech SMEs under COVID-19.

Preventive Measures Against COVID-19 in Small- and Mid-sized Enterprises from an Early Stage of the Epidemic in Daegu and Gyeongsangbuk-do

BackgroundIn the early stage of the coronavirus disease 2019 (COVID-19) epidemic, small- and mid-sized enterprises (SMEs) may be an important transmission consideration. The study aimed to identify the pattern of COVID-19 prevention measures during the outbreaks in Daegu and Gyeongsangbuk-do at the early stage of COVID-19. Moreover, we investigated whether SME size and past experiences affected the preventive measures implemented in the region. MethodsA survey detailing the general characteristics and implementation of 12 preventive activities was conducted in 122 SMEs in Daegu and Gyeongsangbuk-do. The survey was analyzed by size and operation period. ResultsThe study subjects consisted of 53 (43.4%) workplaces with 1–5 employees, 50 (40.9%) workplaces with 6–30 employees, and 19 (15.6%) workplaces with 31–49 employees. The lowest three items among those surveyed were ‘symptomatic workers to stay home for 3–4 days’ (17.2%), ‘work remotely’ (18.9%), and ‘video meetings’ (20.5%). There were significant differences in the rate of several preventive measures implemented. The larger sized SMEs, the higher the number of implementations (p < 0.01). The operation period had no significant relationship with the implementation of preventive measures. The same pattern was observed in multiple generalized linear regression with covariate adjustment. ConclusionPreventive measures among SMEs with fewer than 50 employees were identified. Even within SMEs, a gap in preventive measures according to size was confirmed. To prevent the spread of infection and protect workers' right to health, different support for different sized SMEs is necessary.

The Maturity of Corporate Websites as a Digital Communication Channel in Portuguese SMEs’ Process of Adopting E-Commerce

This study aims to determine the maturity of the websites of Portuguese small and mid-sized enterprises (SMEs) as a basic form of digital communication in the sequential process of incorporation of e-commerce. The starting premise is that there is a relationship between the level of maturity reached in the SMEs’ websites as digital tools that allow firms to communicate effectively, and the adoption of e-commerce. To study this, a representative sample of 381 SMEs located in Portugal and selected through stratified random sampling was analysed. To assess the degree of maturity of the websites, a sequential validation model, the extended model of internet commerce adoption (E-MICA), was applied. This information was crossed with some descriptive variables such as the volume of business, the location, the number of employees, and the sector of activity of the SMEs. The results showed that, in general terms, there predominant websites that limit their interaction to promoting products and services thus present a low level of maturity. While the sector of activity, the volume of income, and the location of the firm are decisive for the maturity of the websites as a form of digital communication in the process of incorporating e-commerce, the number of employees is not.

Un-used Bank Capital Buffers and Credit Supply Shocks at SMEs during the Pandemic

Did banks curb lending to creditworthy small and mid-sized enterprises (SME) during the COVID-19 pandemic? Sitting on top of minimum capital requirements, regulatory capital buffers introduced after the 2008 global financial crisis (GFC) are costly regions of "rainy day" equity capital designed to absorb losses and provide lending capacity in a downturn. Using a novel set of confidential loan level data that includes private SME firms, we show that "buffer-constrained" banks (those entering the pandemic with capital ratios close to this regulatory buffer region) reduced loan commitments to SME firms by an average of 1.4 percent more (quarterly) and were 4 percent more likely to end pre-existing lending relationships during the pandemic as compared to "buffer-unconstrained" banks (those entering the pandemic with capital ratios far from the regulatory capital buffer region). We further find heterogenous effects across firms, as buffer-constrained banks disproportionately curtailed credit to three types of borrowers: (1) private, bank-dependent SME firms, (2) firms whose lending relationships were relatively young, and (3) firms whose pre-pandemic credit lines contractually matured at the start of the pandemic (and thus were up for renegotiation). While the post-2008 period saw the rise of banking system capital to historically high levels, these capital buffers went effectively unused during the pandemic. To the best of our knowledge, our study is the first to: (1) empirically test the usability of these Basel III regulatory buffers in a downturn, and (2) contribute a bank capital-based transmission channel to the literature studying how the pandemic transmitted shocks to SME firms.

Working Paper 34: Local certification through Collective Action

How can local certification of small and mid-sized enterprises (SMEs) help to alleviate anti-corruption due diligence for SMEs as well as multinational corporations (MNC) seeking to work with them. This Working Paper by the Basel Institute's Collective Action team attempts to answer that question based on discussions and analysis of current local certification initiatives in different countries and sectors.&#x0D; Local certification in this context means the assessment of a company’s anti-corruption compliance standards according to a method devised through a Collective Action and developed within a domestic (local) market. The local component also involves verification (certification) by a reputable organisation based in the same country as the entity that is being certified. &#x0D; The paper explores:&#x0D; &#x0D; Due diligence dilemmas faced by both SMEs and MNCs.&#x0D; How local certification can help SMEs develop and demonstrate robust anti-corruption compliance procedures.&#x0D; How a trusted certification programme can help alleviate due diligence on third parties by MNCs, using a risk-based approach.&#x0D; Wider benefits, including raising standards of compliance across the board.&#x0D; How a Collective Action approach boosts the potential of local certification to achieve these wins.&#x0D; Special considerations and six practical recommendations for practitioners seeking to raise levels of anti-corruption compliance through a local certification scheme.&#x0D;

Corporate Tax Enforcement Externalities and the Banking Sector

ABSTRACTWe explore whether corporate tax enforcement can affect bank lending. Specifically, we hypothesize that tax enforcement efforts aimed at small and midsized enterprises (SME) can improve their information environments, which in turn could lead to increased bank commercial lending. Exploiting the regional structure employed by the IRS until 1999, we find that the corporate tax return audit probability for SMEs is associated with greater commercial lending growth for regionally focused banks. We find similar evidence when exploiting the IRS reorganization from a regional to federal system in 2000. Further results show that tax enforcement's impact on SME informational environments is at least partially responsible for this association: The impact of tax auditing on bank lending is stronger for banks facing greater informational disadvantages and in areas where SMEs face greater hold‐up problems. Finally, we find that the tax audit rate is positively associated with loan portfolio quality, suggesting that tax enforcement can lead to better loan decisions. Our findings are consistent with the tax authority's mandate having important externalities on bank lending and SME access to capital, suggesting that the benefits to tax enforcement go beyond improving tax collection.

Determinants of cloud ERP adoption in Jordan: an exploratory study

Enterprise resource planning (ERP) systems are usually adopted through two major options: cloud computing or on-premise infrastructure. The issues related to hardware, servers, implementation costs, and facilities, which are necessary to run on-premise ERP systems, are rather great for small and mid-sized enterprises (SMEs). The purpose of this research is to highlight the factors influencing cloud ERP adoption among SMEs. The technological, organisational, and environmental (TOE) model will be used as a theoretical base. This qualitative, exploratory study gathers data from 13 different SMEs and cloud ERP service providers through semi-structured interviews, focusing on SMEs in Jordan. According to our results, support from both service providers and top management within the company play an important role in whether a firm adopts cloud ERP services, in addition to a number of other factors at varying rates. Research findings can be used by service providers and business owners to enhance their approach to cloud ERP by showing the reasons why some SMEs chose to adopt this technology and others did not. Cloud ERP providers need to intensify their efforts to build a progressive environment for their services that will eliminate any ambiguity regarding this type of technology.

PROBLEMS OF SMALL AND MID-SIZED ENTERPRISES IN JAPAN’S SOFTWARE INDUSTRY

This paper examines the reasons that most small and mid-sized enterprises (SMEs) in Japan’s software industry do not develop into large firms. Thousands of SMEs are informally organized under several large companies. Those SMEs have experienced difficulty developing into large firms. This industrial structure has remained for several decades. Several papers have already suggested reasons for this phenomenon, but each paper in the literature has given few reasons. This paper analyzes the issue more comprehensively. First, this article surveys the literature and determine several factors that contribute to the issue. Then, this paper demonstrates how they complicate the issue and make it difficult to solve. Finally, the paper illustrates several approaches in an effort to find solutions. The first method is introducing agile modeling and other iterative software development processes. Agile modeling adjusts design change more easily compared with other software development processes. Other iterative software development processes also adjust design change easily compared to the waterfall model. By using these processes, software engineers can avoid long overtime work, which contributes to the difficulties in securing human resource. The second method is for software firms to demand appropriate compensation for each design change. If many Japanese firms did this, overtime work would be shorter, and the working environment of SMEs would improve. Then, SMEs obtain excellent workers. This will help SMEs to grow to large firms.

Modeling and assessing the effects of digital technologies on KPIs in manufacturing systems

To be competitive, small and midsized enterprises (SMEs) need to focus on a targeted implementation of digital technologies. However, selecting the wrong technology can be a risk, especially for SMEs, as this will lead to higher costs and increasing the implementation time of the optimal solution. Currently, most of the digitalization approaches are not detailed enough so that SMEs can quickly adapt them. Therefore, the paper presents an approach to empower SMEs to select a suitable digital technology by mapping available digital technologies with known key performance indicators (KPI) of a manufacturing system to identify the positive and negative impacts.

Corporate Tax Enforcement Externalities and the Banking Sector

We explore whether corporate tax enforcement can affect bank lending. Specifically, we hypothesize that tax enforcement efforts aimed at small and midsized enterprises (SME) can improve their information environments, which in turn could lead to increased bank commercial lending. Exploiting the regional structure employed by the IRS until 1999, we find that the corporate tax return audit probability for SMEs is associated with greater commercial lending growth for regionally focused banks. We find similar evidence when exploiting the IRS reorganization from a regional to federal system in 2000 as an exogenous change to tax enforcement at the district level. Further results show that tax enforcement’s impact on SME informational environments is at least partially responsible for this association: the impact of tax auditing on bank lending is stronger for banks facing greater informational disadvantages and in areas where SMEs face greater hold-up problems. Finally, we find that the tax audit rate is positively associated with loan portfolio quality, suggesting that tax enforcement can lead to better loan decisions. Our findings are consistent with the tax authority’s mandate having important externalities on bank lending and SME access to capital, suggesting that the benefits to tax enforcement go beyond improving tax collection.

Location and pull of proximate markets: internationalisation decisions of firms in a small economy

Existing studies have mostly focused on internationalisation decisions of small and mid-sized enterprises (SMEs) from either developed economies or large developing economies. This paper fills a gap in the literature by focusing on SMEs in a small economy. A qualitative approach, utilising in-depth interviews, was adopted to discover the effects of resource endowments and psychic distance on where, why, and how firms expand business internationally. Executives from five key business-to-consumer sectors were interviewed. Findings show how the firms perceived and responded to global competitive developments and how resource endowments and psychic distance affected international market research, market selection, and market development decisions.

Small and mid-sized enterprises (SMEs) quality management (QM) research (1990–2014): a revealing look at QM's vital role in making SMEs stronger

Findings from 25 years of quality management small and mid-sized enterprise (QM SME) research, 55 studies spanning 18 countries are provided. Using a multi-stage QM model to frame the review, the discussion clarifies the stages SMEs experience when engaging QM. The SME QM literature supports the use of QM by SMEs. Yet, many potential barriers often hinder SMEs' QM pursuit. Affirming differences between large firms and SMEs, QM may need to be calibrated differently for SMEs, with QM activities aligned with SME resources. Also, while QM is often touted to be universally applicable, there is evidence that country factors, ranging from leadership skills to national culture to government, likely affect implementation and outcomes, albeit more research is needed. Performance following QM implementation tends to be supportive of QM, although QM costs, resource constraints, and fatigue can lead to reduced QM commitment.

Determinants of RFID adoption intention by SMEs: an empirical investigation

Radio frequency identification (RFID) technology has been considered as one of the 10 technologies that will transform firm across industries. However, the adoption and use of the technology has been slower than predicted, mainly because of technological, organisation and environment factors related to RFID. This study develops a conceptual model that explores the role that technological, organisational, environmental and managerial characteristics of small and mid-sized enterprises (SMEs) play in their intention to adopt RFID technology. To test the model, a web-based survey was administered to 453 SME managers from the USA, the UK, Australia and India. Logistic hierarchical regression is used to test the proposed model. Implications for RFID technology research, theory and practice are discussed.

Las prácticas de desarrollo sustentable: un acercamiento descriptivo a las pequeñas empresas de Guadalajara, México

Se expone, a través de un estudio descriptivo, las prácticas que realizan actualmente las pequeñas y medianas empresas (PYME) de la Zona Metropolitana de Guadalajara, México, referente a desarrollo sustentable empresarial. Se encuestaron a casi 400 empresas. Se tomó de referencia un cuestionario, elaborado y validado previamente, con más de 100 preguntas sobre prácticas empresariales de desarrollo sustentable, aplicado al dueño de la empresa. Los resultados fueron divididos en cinco categorías. Los datos fueron capturados y analizados con base en una orientación de estadística descriptiva. Se muestran los resultados que describen su situación actual, encontrándose que más del 50% de las PYME de la Zona Metropolitana de Guadalajara están por debajo de estas prácticas, que no son parte de sus objetivos, además que hay una desvinculación con todos sus stakeholders. Al final se hace algunas sugerencias de cómo poder encaminar a las PYME para que aumente su grado de compromiso en este tema

Exploring the determinants of born‐global firms in Chile

Purpose Although much has been studied about the characteristics of born‐global firms in developed countries, studies about developing economies are far and few between and most tend to be exploratory. The paper aims to discuss these issues. Design/methodology/approach This paper studies how Chilean born‐global firms behave and examine five distinct factors as compared to enterprises that gradually internationalize. A logistic regression model was applied to a sample of 115 small‐ and mid‐sized enterprises (SMEs) that presented a growing and non‐occasional internationalization to study the change in the probability that a young Chilean exporter will be classified as born‐global. Findings The results show that a foreign capital network, an economic development agencies (EDAs) network, the cultural distance from the countries receiving the exports, the localization of the SME in the capital city, and the company's size are factors that significantly increase the probability that a young Chilean exporter will be classified as born‐global. In contrast with the high technology content of the born‐global companies that has been reported in developed countries, the technology level was not relevant in how quickly the Chilean SMEs internationalized. Originality/value New public policy proposals may be inferred from the results of this paper. For example, the EDAs may increase their effort in promoting internationalization, particularly in geographical regions by taking into account the characteristics of each city and its entrepreneurs. This could help diminish the positive effect of location (i.e. perverse effect of centralization) presented in this study.

Functional Analysis of Open Source Erp Systems - An Exploratory Analysis

Previous research on Open Source Software (OSS) has primarily focused on the motivation of contributors, the innovation process itself, and the competitive dynamics. Only marginal attention has been given to OS enterprise systems, an area where most companies have started implementations of packaged software and which has a direct link to business value. This paper addresses this gap. In fact, successful implementation stories are reported from small and mid-sized enterprises (SME). However, OS Enterprise Resource Planning Systems (ERP) are far away from being widespread and the literature focuses specific aspects. This research aims to enhance the understanding of OS ERP systems regarding their business functionality and the evaluation process. Among the results are strengths and weaknesses of OS ERP systems as well as insights regarding their potential. Finally, an agenda for further research is presented.

Rehabilitation aus der Sicht kleiner und mittlerer Unternehmen: Wissen, Wertschätzung und Kooperationsmöglichkeiten – Ergebnisse des KoRB-Projektes

The experiences of small and midsized enterprises (SME) with medical rehabilitation were investigated in the KoRB-Study (KoRB= KOoperation Rehabilitation und Betrieb) for the first time. Opportunities for a targeted cooperation between the statutory pension insurance and these enterprises were explored. Based on explorative interviews, Westphalian employers, members of the works council, occupational health practitioners and employees were interrogated about the image of and their appreciation of medical rehabilitation in the work setting. Experience with rehabilitation and the level of information on rehabilitation were recorded as well as the compatibility of rehabilitation with operative processes in the working site. In addition rehab hospitals were asked about their experience in cooperating with enterprises. 697 employers of small and midsized enterprises, 458 members of the works councils, 73 occupational health practitioners, 47 rehab hospitals and 3 509 employees, who are members of the German Pension Fund of Westphalia, took part in the survey. Especially employers perceived rehabilitation positively and reported good experiences. Among the employees, those who had taken part in rehabilitation showed the highest appreciation. Occupational health practitioners were more restrained in their appraisal. Some of them complained about a lack of sustainability. The different target groups of the survey felt differently well informed about rehabilitation - best ratings came from the occupational health practitioners, worst ratings from the employees. All groups would welcome more accessible information in case of need. Medical rehabilitation in its standard form of "3 weeks full-time" often causes severe logistic problems in SME (e. g., replacement of employee, loss of experience). However the financial burden is perceived as less problematic. Employers favour alternative rehab models, which allow part-time working. Many employees, who expressed a need for rehabilitation, refrained from applying for rehabilitation on account of worries about loosing their employment. Both rehab clinicians and occupational health practitioners argued in favour of improved communication and cooperation in order to adapt medical rehab to the specific requirements of the working place and to assure a smooth reintegration into work.