Small Industrial Companies Research Articles

Capital structure, profitability and risk: a study of small companies in the industrial sector of the Republic of Kazakhstan

The purpose of the study: Determining the impact of the capital structure on small companies’ performance operating in the field of industry in Kazakhstan. The problem statement. The question to be analyzed in this study is: does the capital structure aff ect the performance of small Kazakhstani companies operating in the industrial sector? Methodology: In this study, we use data from 30 small industry companies in Kazakhstan based on annual reports for 2012-2022. The total debt ratio is the dependent variable used in this study. Profi tability, business risk, tax efficiency and age of the company were taken as independent variables. Statistics, correlation and multivariate regression were used to analyze the data. Originality/value of the study: The results showed that borrowed capital is subject to factors of profi tability, tax burden, and business risk. There was no signifi cant impact of the age of the company on the borrowed capital. Relevance: This study complements the literature on capital structure factors in developing countries and the financial condition of small industrial enterprises. This research will be aimed at exploring the potential use of borrowed capital to increase the profi tability of the company to reduce business risks.

Social capital in small industrial firms and its link with innovation

Introduction: social Capital in organizations is an intangible asset that represents the favourable relationships that exist between work teams, within an organization and externally, to different interest groups.Objective: this study examined the link between internal relational social capital (RSC) and external RSC with innovation in small industrial firms in Tabasco, Mexico. There was also an inquiry into how much internal RSC and external RSC explain innovation. Methods: the design was nonexperimental, cross-sectional, descriptive, correlational, and explanatory. Linear regression analysis was used.Results: significant positive relationships was identified between internal RSC and external RSC and innovation. The internal RSC and external RSC contributed significantly to the explaining of innovation. Areas of opportunity were identified for these firms in process design and formal research activities for new raw materials, production procedures and patent generation. Conclusion: to promote innovation, managers of small industrial companies must continue to establish strategies and practices to strengthen RSC

Structural characteristics and sustainable organizations and their perspectives

The objective was to analyze the dimensions, components of technological capacity and management technologies, as innovative perspectives of organizational sustainability. It investigated in micro, small and medium-sized companies “which technical and managerial characteristics are suitable for innovation and sustainability?" Specifically, what is the relationship between technological capabilities and management technologies allied to entrepreneurship, with organizational sustainability and sustainable development?" In the method, research in the literature and field in the universe of 1,758 micro, small and medium industrial, and 15,112 micro and small industrial and service companies, with a stratified random sample and accessibility. The analysis presented here suggests that predictable dimensions, competencies and technological capabilities, combined with appropriate management technologies, are prominent factors in evaluating innovative and sustainable organizational structures that lead to economic and social development.

Sustainable organizations: conceptions and attributes

The article has as its object of study micro, small and medium-sized industrial and service companies. The objective was to analyze the dimensions, components of technological capacity and management technologies, as innovative attributes of organizational sustainability. It investigated in micro, small and medium-sized companies “which technical and managerial attributes are suitable for innovation and organizational sustainability?”. Specifically, what is the relationship between technological capabilities and management technologies allied to entrepreneurship, with organizational sustainability and sustainable development?" In the method, research in the literature and field in the universe of 1,758 micro, small and medium industrial, and 15,112 micro and small industrial and service companies, with a stratified random sample and accessibility. In theoretical and methodological contributions, the study points to an advance for the academic community in the areas of innovation, technologies and empirical research for organizations. In social and managerial contributions, the application of technological capacity and management technologies in micro, small and medium-sized companies generate perspectives for sustainable managerial and social development. Among the main results, the literature and empirical, the analysis presented here suggests that predictable dimensions, competencies and technological capabilities, combined with appropriate management technologies, are prominent attributes in evaluating innovative and sustainable organizational structures that lead to economic and social development.

Digital Transformations Theoretical Investigation On The Basis Of Smart Government Initiatives

Digital Transformations Theoretical Investigation On The Basis Of Smart Government Initiatives

INTRODUCTION OF DIGITAL PLATFORMS BY INDUSTRIAL COMPANIES AS A SOURCE OF COMPETITIVE ADVANTAGES

This paper examines the impact of digital platforms on the development of industrial companies, their role for the development and formation of sustainable competitive advantages by industrial enterprises. It is investigated how digital platforms affect efficiency and what negative network effects industrial companies experience. As a method of empirical research, the case method of eight Russian industrial companies is used, the number of which varies from 38 to 996 people. All the industrial companies included in the sample have been working on digital platforms for more than 5 years. The results of the study were the conclusions that digital platforms are used as an opportunity to enter foreign markets only by small industrial companies, large and medium-sized companies use other sources of internationalisation; digital platforms are not used as a source of innovative development. Digital platforms serve as an ecosystem to create a better offer for customers. Digital platforms are also a source of sustainable competitive advantages due to the formation of relationships with partners and obtaining information about consumers and markets.

Understanding and implementing environmental management in small entrepreneurial ventures: supply chain management, production and design

PurposeThis work aims to propose guidelines for small industrial businesses to take their first steps toward implementing systems, programs and tools (SPTs) for environmental management in a structured way.Design/methodology/approachThe authors conducted case studies in large companies certificated ISO 14001. They ran tests for construct validity, external validity and reliability. Cross-analysis of the information collected led to identifying patterns and strategies adopted by these companies to implement environmental management. Based on the literature on environmental management in small businesses and the author's experience, the practices learned from large companies were adapted to the reality of small ones, thus resulting in the proposed guidelines.FindingsThese guidelines enable small companies to develop their environmental management following the logical evolution of SPTs: ISO 14001, green supply chain management (GSCM), cleaner production (CP) and green design (GD). The implementation should happen gradually, through the PDCA cycle, according to three specific levels of environmental evolution.Research limitations/implicationsSince the guidelines focused on small industrial companies, future studies should consider other sectors, such as services, to benefit from the solutions presented. As for the implications, besides improving the small company's performance and enhancing its image, implementing the guidelines creates a green synergy along the supply chain, thus benefiting society beyond the company's borders.Originality/valueThe main theoretical-scientific contribution of this work is to deepen a block of knowledge that articulates environmental management and small businesses, creating a basis for further research and a reference for analyzing and discussing empirical studies in small companies. As an applied-management contribution, the guidelines allow small companies to effectively develop SPTs to move toward environmental sustainability.

Investigating the investment value of Elmo company based on SWOT analysis

Startups face huge challenges in all aspects, and corporate finance is an essential part of surviving in a very competitive industry environment. Corporate finance determines the possibility of business development, and the capital chain is an important factor for the company's survival. In order to assess the value of an investment in universal startups and to determine the appropriate channels for obtaining investment, the small industrial technology company Elmo, Inc. was selected as a representative. In this paper, we analyze the investment value of Elmo, a start-up company, using SWOT analysis, which is commonly used in business analysis, to evaluate the strengths, weaknesses, opportunities, and treats of the company, and the results show that Elmo has high investment value. The analysis of the investment value of the company will serve as investment advice for investment institutions and create more financing opportunities for startups, thus promoting the development of startups. The company's investment value analysis can also help the company to clarify its development direction and investment requirements, find suitable financing methods and stabilize its capital chain.

Quantitative and qualitative risk-informed energy investment for industrial companies

In the ongoing energy transition, small and medium-sized industrial companies are making energy equipment investments due to the obsolescence of their current equipment as well as social, political and market pressures. These firms typically choose investments with low risk exposure based on a combination of criteria that are not always quantifiable. However, published studies on energy investment to date have not been suitable for industrial SMEs because they do not assess the value of the investment over time, ignore the qualitative aspects of decision-making, and do not consider uncertainties. To fill this gap in the literature, this paper proposes a methodology that considers both quantitative and qualitative parameters and risks over time through an extended two-stage risk-informed approach. The proposed methodology includes fuzzy and statistical techniques for evaluating both qualitative and quantitative parameters, as well as their uncertainties, at the time of decision-making and over the investment lifetime. Fuzzy logic is used in the first stage of the optimisation process to measure qualitative parameters and their uncertainty, while quantitative parameters are expressed using probability density functions to account for their uncertainty and measure the quantitative risk assumed by the investor. This methodology is applied to a case study involving a real industrial SME, and the results show that considering both quantitative and qualitative parameters and uncertainties in the optimisation process leads to a more balanced consideration of economic, environmental and social criteria and reduces the variability of the outcome compared to economic-only approaches that do not account for risks. Specifically, the case study shows that considering these parameters and uncertainties resulted in a 15.7% reduction in the size of the cogeneration system due to its environmental and social impacts, and 4.2% reduction in the variability of the economic result.

Comprehensive Production Maintenance and its Role in Improving the Company Performance

The study aimed to reveal the impact of applying comprehensive production maintenance on company performance in small and medium industrial Malaysian companies. The descriptive analytical secondary data was utilised as a tool for gathering data from 135 companies as a sample from 2009 to 2017, and after conducting the analysis of the data and testing the hypotheses, the study reached a number of results among them. There is a positive significant effect of the application of comprehensive productivity maintenance on company performance in in the small and medium industrial companies. Therefore, this study recommended that the total productive maintenance is a system that is also valuable for quality administration and safety administration in rapports of keeping the integrity of equipment and operating approaches. The study recommended giving more attention to the management of the industrial companies.

The role of entrepreneurial orientation and social capital toward technology innovation among SMEs in Kurdistan

The emergence of the fourth industrial revolution has made fundamental changes to technology, industries, and societal patterns and processes. SMEs are familiarizing themselves with new technological innovations to adapt to the current shifts. SMEs significantly contribute to economic progress by creating jobs, generating revenue, reducing poverty, and launching new ventures, especially in developing economies. However, the contribution of the SMEs in Kurdistan is limited due to the weak capacity to produce technological innovations and the inability to execute manufacturing processes effectively. So, the study aims to investigate the impact of Entrepreneurial Orientation (EC) and Social Capital (SO) on the Technological Innovation (TI) of Kurdistan SMEs in the Kurdistan region of Iraq. This study used the resource-based theory as the underlying theory for its presumptions, and its model was constructed using self-administered questionnaires. Three hundred forty-four business owners participated in this study, yielding a response rate of 68%. The results of the current study showed that social capital and entrepreneurial orientation both significantly and positively affect technological innovation. The study will contribute to technology innovation adoption among small industrial companies in Kurdistan and reduce potential setbacks for technology adoption, highlighting externally generated knowledge of entrepreneurial orientation and social capital.

Extended reality technologies in small and medium-sized European industrial companies: level of awareness, diffusion and enablers of adoption

Augmented reality (AR) and virtual reality (VR), collectively referred to as “extended reality” (XR), have begun to diffuse in industry. However, the current levels of awareness, perceived limitations, and use of AR and VR, as well as the potential differences on these aspects between these technologies are still not well known. Moreover, it is unknown whether small and medium-sized enterprises (SMEs) differ from large companies on these issues. This research employed a mixed methods research design to address this gap by carrying out a cross-sectional survey (n = 208) to gauge European industrial companies’ level of AR and VR awareness and adoption, and by interviewing 45 companies in nine European countries in order to identify critical enabling factors in the adoption of XR for SMEs. Results show no statistical difference between the respondents’ perceptions toward AR and VR or in their use levels. Thus, examining AR and VR under the umbrella term XR seems justified, especially in the context of their organizational use. However, larger companies were found to be using XR more than SMEs. Analysis of interviews based on the technology–organization–environment framework also yielded several enabling factors affecting XR adoption and specified whether they are particularly highlighted in the SME context. Overall, this paper contributes to XR research by providing a holistic multi-country overview that highlights key issues for managers aiming to invest in these technologies, as well as critical organizational perspectives to be considered by scholars.

Islamic Financial Management Practices and Business Performance in Small Industrial Companies

This study aims to examine the effect of Islamic financial literacy, investment decisions, funding decisions, and working capital on business performance in small halal industries (IK) in Ternate. The respondents involved were 53 IK. This research is quantitative and descriptive. Data was collected using online questionnaires, namely, google forms and interviews. This study uses a simple random sampling technique in producing the research sample. The data analysis technique used multiple regression models and research hypothesis testing. The results showed that the financial literacy of IK owners was moderate and had no effect on business performance. Investment decisions of IK players are relatively good and do not affect business performance. The funding decisions of halal IK actors are rather good and impact business performance. The findings of this study are that working capital is classified as very good and has a positive and significant effect on IK business performance. Furthermore, working capital has a dominant impact on business performance, as seen from the bear value of the t table compared to 3 (three) other variables. This research implies that it can be used as a support for strategic decisions regarding the development of IK in the city of Ternate, that IK owners need to develop financial literacy, investment decisions, and appropriate funding decisions as well as manage the company's working capital effectively and efficiently so that the achievement of business performance is better.

Islamic Financial Management Practices and Business Performance in Small Industrial Companies

This study aims to examine the effect of Islamic financial literacy, investment decisions, funding decisions, and working capital on business performance in small halal industries (IK) in Ternate. The respondents involved were 53 IK. This research is quantitative and descriptive. Data was collected using online questionnaires, namely, google forms and interviews. This study uses a simple random sampling technique in producing the research sample. The data analysis technique used multiple regression models and research hypothesis testing. The results showed that the financial literacy of IK owners was moderate and had no effect on business performance. Investment decisions of IK players are relatively good and do not affect business performance. The funding decisions of halal IK actors are rather good and impact business performance. The findings of this study are that working capital is classified as very good and has a positive and significant effect on IK business performance. Furthermore, working capital has a dominant impact on business performance, as seen from the bear value of the t table compared to 3 (three) other variables. This research implies that it can be used as a support for strategic decisions regarding the development of IK in the city of Ternate, that IK owners need to develop financial literacy, investment decisions, and appropriate funding decisions as well as manage the company's working capital effectively and efficiently so that the achievement of business performance is better.

Analysis of an Energy Management System of a Small Plant Connected to the Rural Power System

This paper presents the analysis of an energy management system (EMS) implemented to fulfill the requirements of a microgrid (MG) power supply owned by a small industrial company and connected to the rural power system. The main goal of this system is to ensure connection with the existing rural power system in terms of energy exchange, as well as to perform islanding mode operation of the microgrid based on the energy demand of the company. Power generated in the implemented microgrid is based on a hybrid system supported by renewable energy sources and an energy storage system. The aim of the developed energy management system implemented in this MG power system is to enable the microgrid to operate according to scheduled diagrams related to different load events. The presented investigation, analysis, and assessment of the implemented energy management system are based on the on-site measurements and observations of the long-term operation of the microgrid concerning the hybrid renewable energy-based generation system and the company energy demand, which is useful from perspective of the predicted deficiency of electrical energy in Poland, both for customers and transmission system operators. Furthermore, the observed drawbacks and failures of the implemented EMS and the MG are pointed out and discussed to overcome and minimize these disadvantages, and to improve the operational reliability of the whole system.

Costing System in Sales Price (CSSP): analysis of results in small and medium-sized industrial companies located in RS (Brazil)

Resumo The overall objective of this study was to analyze the results of the implementation of the Costing System in Sales Price (CSSP), using a cost matrix that considers the distribution of indirect costs and fixed expenses in seven small and medium-sized industrial companies, located in “Serra Gaúcha” (RS), through a Reference Apportionment (RA) that parameterizes the revenue with the market value of each product. Data were collected in the year 2015. This study also contextualizes and provides a cost structure in a format similar to the Income Statement (IS), using, as main information source, the accounting data, financial records, analysis of accounting books and production data which were combined with semi-structured interviews. To sum up, this research has established the Costing System in Sales Price (CSSP) and the Reference Apportionment (RA) as criteria for distribution of indirect costs, reinforcing the idea that the sales price should follow the market logic. Palavras-chave: Reference Apportionment. Sales price. Costing system.

Application of the clustering algorithm to the small and micro industrial companies for mapping regions with k-medoids

The largest segment of national economic actors is the micro and small enterprises (MSEs). The research aims to analyze the number of micro and small companies in Indonesia using data mining techniques to map a cluster. The dataset used consists of three-four records of the central Statistical Bureau (SourceUrl: https:/www.bps.go.id/), composed of the micro and smaller companies in 2017-2019. The k-medoids method is the solution used in cluster mapping. The average number of small and micro enterprises for 2017-2019 is the attribute used. The numbers of clusters were determined with the Davies Bouldin Index method (DBI), where k = 2 is the best value (0.111). In accordance with the results of the cluster (k=2), the label is divided into two (high cluster (clt1) and low group) (clt2). The results of the calculation of k-medoids show that 90% of Indonesia’s area is within the low class. In the high cluster are only Central Java, West Java and East Java. Accuracy, accuracy, reminder and f-measurement parameters are 100% demonstrated in the cluster test results. This mapping can be one of the foundations on which to constantly increase the number of micro and small firms, since the role of MSEs in jobs is extremely important, since it is apparent that MSEs have continued to grow considerably.

The effects of applying just-in-time production system on maximizing profitability of small and medium industrial companies in Jordan

This study aimed to investigate the extent of applying just-in-time production system on maximizing profitability of small and medium industrial companies in Jordan, where maximizing profitability of companies represented in both (reducing product costs and reducing ending inventory obsolescence) for those companies. In order to achieve the objectives of the study, a questionnaire was designed as a tool for study and was distributed to the study sample represented by administrative managers and financial managers in small and medium industrial companies. The study community consisted of (235) companies of small and medium industrial companies. The Robert Mason equation was used to determine the sample size which consisted of 146 companies, where this study distributed 292questionnaires, and 217 of them were received, while 33 questionnaires were excluded, and the final sample was 184 questionnaires. The results of the study showed that there is a statistically significant impact of applying just-in-time production system on maximizing profitability of small and medium industrial companies in Jordan, and there is a statistically significant impact of applying just-in-time production system on (reducing product costs and reducing ending inventory obsolescence) in small and medium industrial companies. The Study recommended a number of recommendations, the most important of which is: It is necessary to review the successful experiences of international companies that adopt applying just-in-time production system, and to benefit from them by small and medium industrial companies in Jordan in applying just-in-time production system as an advanced tool for cost management and thus maximizing their profitability.

SEGURIDAD E HIGIENE INDUSTRIAL EN LAS PYMES DE HERMOSILLO, SONORA, MÉXICO.

En el presente artículo se realiza un estudio descriptivo de la situación actual de las pequeñas y medianas empresa del sector industrial que operan en la ciudad de Hermosillo, Sonora, México, con el objetivo de conocer el grado de aplicación de la normatividad existente en materia de seguridad e higiene. Para ello, tomando como referencia las normas oficiales mexicanas STPS-001, STPS-002, STPS-017 y STPS-021, se diseñó y aplicó un instrumento de cuestionario para obtener información sobre las condiciones de trabajo en materia de seguridad e higiene. La forma en que se llevó a cabo la selección de las empresas fue a través de la página de Internet de la Secretaría de Economía de México, tomando como población objetivo el listado pequeñas y medianas empresas del sector industrial, publicado en el sitio web. Posteriormente, a través de un muestreo estratificado se seleccionaron las pequeñas y medianas empresas.

Estimation of the Energy Saving Potentials in Foundry Industries Based on ISO 50001

This paper presents the application of tools to develop a procedure to estimate the energy saving potentials in a small foundry company in Colombia, based on the ISO 50001 standard. This work was carried within the framework of a national industrial project, funded by UNIDO, aimed at the small and medium industrial sector companies (SMEs) of Valle del Cauca, to establish the requirements that are needed to implement an energy management system. With the aim of increasing the energy efficiency of the processes, the energy planning process proposed by ISO 50001 is carried out, whose lead to the establishment of concrete and attainable goals, as well as to the proposal of various improvement plans regarding savings and efficient use of energy. As a result, the savings potentials for the different production levels were estimated, which represents a saving of 15984.25 kWh, which corresponds to 8.7% of the total energy consumed in the 10 months analyzed, and a value of 1486 USD.