Small Medium Enterprises Research Articles

The role of adhocracy culture in open innovation in SMEs

Purpose Studies have demonstrated the role of organizational culture on innovative performance. However, there is limited focus on the role of adhocracy culture in facilitating open innovation in organizations, especially in small and medium enterprises (SMEs) that are constrained by a lack of adequate resources, making them dependent on dynamic innovative culture such as adhocracy culture. Design/methodology/approach This study used a quantitative methodology, using both exploratory and descriptive methods. Five hundred manufacturing SMEs in Jordan were chosen through systemic random sampling from a registered list of 2,310 manufacturing SMEs. A questionnaire was used as the study’s instrument on these SMEs. In sum, 335 responses (67%) were considered suitable for analysis. Findings This paper supports the previous studies that suggest that the success of open innovation rests largely on creating an effective organizational culture (e.g., adhocracy culture). However, this paper indicates the positive influence of adhocracy culture on the features of open innovation (i.e., inbound innovation, outbound innovation). Originality/value This study contributes to the literature by emphasizing the organizational elements that encourage open innovation in SMEs. It also provides empirical knowledge of a research model that offers SME stakeholders a cost-effective driver for open innovation activities by transforming intangible resources such as organizational culture, namely, adhocracy culture, to boost the competitiveness of their SMEs.

The Role of SMEs in Enhancing Women’s Employment Opportunities in Nepal: A Data-Driven Perspective

Small and Medium Enterprises (SMEs) play a crucial role in Nepal’s economy, making up over 90% of all businesses and providing jobs for around 2.6 million people. Despite this, women are underrepresented in the SME sector, accounting for only 37.75% of the workforce. Most of these women work in informal and low-paying roles, highlighting a significant gender gap. This study takes a data-driven approach to explore the barriers that limit women’s participation in SMEs. These include restricted access to financial resources, insufficient vocational training, deeply rooted societal norms, and poor infrastructure in rural areas. By analyzing secondary data, the research emphasizes how promoting gender inclusion in SMEs could have transformative effects. These include reducing poverty, increasing household incomes, and potentially boosting Nepal’s GDP by up to 16%. The study also reviews successful practices from around the world and evaluates how they can be adapted to Nepal’s unique social and economic conditions. It calls for targeted measures such as expanding women’s access to financial services, providing skill development opportunities, and implementing gender-sensitive policies. These actions aim to create a more inclusive SME sector. Ultimately, the findings underline the critical role of SMEs in driving sustainable economic growth and gender equality. By prioritizing women’s participation, SMEs can become powerful tools for socioeconomic progress in Nepal

EFFECT OF PAY-AS-YOU-EARN AND COMPANY INCOME TAX ON PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN SOUTHWEST NIGERIA

Small and Medium Enterprises have always been considered an important force for economic development and industrialization in smaller economies.These small enterprises have increasingly been recognized as enterprises that contribute considerably to the creation of jobs, economic growth and eradication of poverty in any developing or developed economy. The study is to examined the effect of multiple taxations on performance of SMEs in southwest Nigeria. Secondary data sources were used, Data on SME variables was specifically extracted from published Central Bank of Nigeria Bulletin 2023. The study found that Pay-As-You-Earn and Company Income Tax have a positive and insignificant effect on Small and Medium Enterprises (SMEs) in Nigeria, while Value Added Tax (VAT) has a negative and insignificant effect on SME performance. Multiple taxation was found to increase performance. The study concluded that multiple taxation significantly impacts the performance of Nigerian SMEs. Effective tax management leads to higher performance, as SMEs with higher investment capital rely on their own capital for asset growth, reducing reliance on expensive external funding, resulting in higher profitability. However, size does not support significant economies of scale. The study recommend that SMEs should promote value-added tax, implement robust accounting systems, stay updated with VAT rules, research VAT reliefs, ensure accurate invoices, set aside funds for PAYE obligations, and invest in payroll software. KEYWORD: Pay-As-You-Earn, Small and Medium Enterprises,Value Added Tax.

Uncovering the Complexity of Supply Chain in MSMEs: A Systematic Review

Supply chain management (SCM) obstacles frequently impede operations optimization for micro, small, and medium enterprises (MSMEs). Supply Chain Management significantly enhances the competitiveness and operational efficiency of Micro, Small, and Medium Enterprises; nevertheless, its adoption is frequently hindered by resource, financial, and technological limitations. This dilemma must be addressed by MSMEs, which are vital to economic growth, innovation, and job creation globally. This study analyzes the intricacies of SCM implementation in MSMEs via a comprehensive review of the current literature. The PRISMA framework delineates the comprehensive procedures for selecting and accepting pertinent articles. This review utilized a sample of 20 publications in the Scopus database, published between 2014 and 2023. An exhaustive examination of the literature on SCM identifies the most cited papers, journals, and authors. The author's concluding point in this paper posits that, despite considerable research in SCM, it is imperative to modify conditions that can facilitate SMEs, particularly in developing nations.

Application of Business Intelligence in Kenyan SMEs

Business Intelligence is still in its infancy stages in developing countries, particularly Kenya. Research has shown that different models are available to assess the usage and adoption of Business Intelligence (BI). In this case, the technological, organizational, and environmental (TOE) model was proposed as a suitable model for developing economies like Kenya. The study investigates how the TOE constructs affect BI adoption, the BI systems in Kenya, and whether managers influence BI adoption. The equivocal nature of the TOE framework allowed the creation of a structured interview questionnaire that was divided into two parts; the demographic profile and questions based on the TOE framework. The results demonstrated that the TOE factors led to more intensive BI adoption, but there might be a lack of awareness or technical skills to adopt advanced BI technologies. On this basis, it is recommended that managers within small- and medium-sized enterprises (SME) learn about better BI solutions and how they can leverage the advantage to enable them to stay profitable, competitive, and data driven. Further research is needed to better understand BI usage within SMEs preferably with larger and representative sample sizes and across different counties within Kenya.

Adoption of Website Technology as a Business Funding Platform for Student MSMEs: Diffusion of Innovation (DOI) Theory Perspective

This study investigates the adoption of GEMAH, a digital platform connecting investors and micro, small, and medium enterprises (MSMEs) owned by students, using the Diffusion of Innovation (DOI) framework. The findings highlight GEMAH’s advantages in providing efficient and accessible funding tailored to the digital preferences of Gen Z entrepreneurs. However, challenges remain in usability and information clarity, which are critical for first-time users. Trialability fosters user confidence, yet a lack of testimonials and case studies limits trust, and the platform’s early development stage constrains observability. Additionally, regulatory and infrastructural gaps underscore the importance of institutional support from universities and financial authorities like OJK. This study suggests improving GEMAH’s features, enhancing transparency, and fostering user trust through regulatory assurance and collaboration with educational institutions. GEMAH holds potential as a sustainable solution for financial inclusion and the growth of student MSMEs in Indonesia.

Excel For Accounting : Perancangan Laporan Keuangan Supplier Produk Agrikultur

This research aims to determine a model for designing simple financial reports for micro, small, and medium enterprises (MSMEs) using Microsoft Excel (EFA) at PT. FreshGo Indonesia, is a food supplier company, especially agricultural products such as fruit, vegetables, meat, seafood, and also provides superior products from Indonesian MSMEs. This research uses descriptive qualitative methods to produce financial reports consisting of profit and loss reports, and balance sheets. Data collection techniques were carried out using interviews, documentation, and observation methods. Meanwhile, the data used in this research is transaction data and other information about finances for one month. The results of this research are in the form of simple financial reports based on Microsoft Excel (EFA) which are used to record daily transactions so that financial reports can be prepared for a certain period.

Prioritising elements of digitalisation for lean and green SME operations: an ISM-MICMAC study in the Indian context

PurposeThe purpose of this paper is to identify the key elements of digitalization for lean and green operations and develop a conceptual framework for their implementation. The paper focuses on small and medium-sized enterprises (SMEs) and aims to explore the role of digitalisation in enhancing their operational efficiency and sustainability. By identifying key factors and metrics related to digitalisation, the paper seeks to provide insights for strategic management to improve lean and green practices in SMEs.Design/methodology/approachInterpretive structural modeling (ISM) and Matrix of Cross-Impact Multiplication Applied to a Classification (MICMAC) approaches were deployed to classify the major dimensions of digitalisation. These methods were used to analyse the direct and indirect relationships among the identified elements of digitalisation. A comprehensive literature review and expert consultations were conducted to identify 13 key elements relevant to lean and green operations. The experts also assisted in determining the contextual relationships between the variables for the ISM model.FindingsThe analysis classified the 13 identified elements of digitalisation into different levels according to their driving power and dependence. The results from the ISM model indicated three levels of classifications. At level-1, Internet of things (IoT) and smart sensors (IoT & SS), automation and robotics directly influence lean and green operations. At level-2, real-time monitoring and control system and at level-3 fundamental elements of digitalisation such as big data analytics, predictive maintenance, cloud computing, energy management systems (EMSs), additive manufacturing, blockchain, digital workflow automation and digital collaboration platform.Originality/valueAll elements are interrelated and essential for making strategic decisions. This study emphasis the significance of prioritising these attributes to attain long-term excellence through digitalisation. For the industries that seek the reward of lean and green operations for their growth, this paper has great practical utility. Identifying the key factors of digitalisation would help strategic managers in handling lean and green environment of SMEs through these aspects.

An Appraisal of the Impact of Financial Technologies (FinTechs) on Financial Inclusions in Selected Parts of Zambia

Purpose: In recent years, the rise of Financial Technologies (FinTechs) has transformed the landscape of financial services, particularly in terms of expanding access to financial products and services, known as financial inclusion. The study seeks to understand how FinTech innovations contribute to bridging the gap between the banked and unbanked, promoting financial literacy, and fostering a culture of financial empowerment. Methodology: The study employed a mixed methods approach to gather comprehensive insights. A target sample size of 1,200 individuals was carefully selected across six districts—Chongwe, Shibuyunji, Chisamba, Lusaka, and Kafue—encompassing both urban and peri-urban areas. These districts were chosen based on evidenced statistical literacy levels, ensuring participants had sufficient understanding of financial concepts and technology. A total of 722 responses were received, resulting in a 60% response rate. Findings: Results indicate a strong link between the emergence of FinTechs and financial inclusion. FinTech innovations, such as mobile banking, digital payments, and alternative lending platforms, have significantly lowered barriers to accessing financial services for underserved populations, including low-income individuals, small and medium-sized enterprises (SMEs), and those in remote areas. Additionally, FinTech platforms have empowered individuals by promoting financial literacy through user-friendly interfaces and personalized financial management tools. Despite these advancements, challenges persist in ensuring equitable access, particularly for marginalized communities facing digital literacy barriers, infrastructural limitations, and regulatory constraints. Unique Contribution to Theory, Policy and Practice: The study highlights the transformative role of FinTechs in democratizing access to financial services and knowledge, fostering financial empowerment, and narrowing the gap between the banked and unbanked. However, it underscores the need for collaborative efforts among governments, financial institutions, and FinTech companies to address persistent challenges. Recommendations include developing inclusive policies, improving infrastructure, and promoting digital literacy initiatives to ensure that FinTech's potential is fully harnessed in creating a more inclusive and sustainable financial ecosystem

Sustainability Reporting Determinants: A Systematic Review of Trends, Challenges, and Opportunities

ABSTRACT Understanding the determinants of sustainability reporting is critical for improving sustainability reporting frameworks. This study systematically reviewed 154 papers published between 2000 and 2020 in Accounting, Business, and Management journals on sustainability reporting determinants. Key sustainability reporting determinants identified include corporate governance, owner/manager attributes, managerial perceptions, and firm-specific variables. Other interesting findings revealed a notably strong geographic bias, with most studies focused on developed countries and large firms, with limited attention to developing countries and small- and medium-sized enterprises (SMEs). Additionally, there is a growing trend toward Triple Bottom Line (TBL) reporting, which addresses the economic, social, and environmental dimensions of sustainability reporting, reflecting a growing scholarly attention to the interlinkages among these dimensions, though some studies lacked a theoretical framework. Lastly, many studies from developing countries, especially in Asia and Africa, were published in non-ranked journals, highlighting quality concerns. This study offers valuable insights and directions for future research while encouraging a more holistic approach to sustainability reporting.

Strategi Pemasaran Umkm Warung Nasi Sunda Ibu Titing Melalui Pendekatan Analisis Swot dan Marketing Mix

This study explores the marketing strategy of Warung Nasi Sunda Ibu Titing, a micro, small, and medium enterprise (MSME) that has been operating since 2004 and faces challenges such as intense competition, limited facilities, and low adoption of digital technology. The problem statement revolves around efforts to enhance competitiveness through effective strategies. The research methodology employs a qualitative descriptive approach using SWOT analysis to identify strengths, weaknesses, opportunities, and threats, complemented by the Marketing Mix (4P) framework to develop a comprehensive marketing strategy. The findings reveal that Warung Nasi Sunda Ibu Titing’s main strengths include a diverse menu, high-quality products, and a strategic location. However, weaknesses such as minimal digital promotion and limited parking facilities pose significant challenges. Opportunities arise from modern culinary trends and government policies supporting MSMEs, which can be leveraged to expand the market. Threats from more innovative competitors and the instability of raw material prices require adaptive strategies. The study concludes by recommending strategies such as expanding digital services through online platforms, enhancing social media promotion, and introducing menu innovations to attract new customer segments. Implementing these strategies is expected to help Warung Nasi Sunda Ibu Titing maintain its presence and improve competitiveness in the culinary market.

The Impact of Green Inclusive Leadership on Green Innovation in Chinese SMEs: The Mediating Roles of Green Knowledge Sharing and Green Organizational Identity

The growing urgency of climate change underscores the need for enhanced green management practices across organizations, particularly for small and medium enterprises (SMEs), the backbone of economic development. Green inclusive leadership (GIL) is defined as a leadership approach that emphasizes inclusivity, openness, and support for employees’ green ideas and contributions, fostering alignment with organizational environmental objectives. This study examines the influence of GIL on green knowledge sharing (GKS), green organizational identity (GOI), and green innovation (GI) within diverse Chinese industries, including manufacturing, services, media, and IT. Using data from 625 valid survey responses collected from 700 predominantly young, educated employees, this research demonstrates that GIL has a direct positive impact on GKS, GOI, and GI. The findings further reveal that GKS and GOI significantly contribute to GI, highlighting their roles as critical drivers of green innovation. Additionally, GKS and GOI partially mediate the relationship between GIL and GI, providing insights into how GIL promotes sustainable practices and innovation. This study underscores the importance of leadership and collaborative organizational practices in fostering a green-oriented organizational climate, supporting adopting green business models essential for competitive and resilient enterprises in a sustainable economy.

The Influence of Green Product Innovation, Green Process Innovation, and End-of-Line Management Innovation on Sustainability Performance Dimensions

Purpose- Sustainability performance (SP) boosts competitive advantage and benefits the environment and society. The present study analyzes the impact of green technology innovation (GTI) dimensions, namely green product innovation (GPtI), green process innovation (GPsI), and end-of-line innovation management (ELIM), on SP dimensions, namely economic performance (EcP), environmental performance (EnP), and social performance (SoP).Design/Methodology- A questionnaire instrument was developed and administered to a sample of 145 small and medium-sized enterprises (SMEs) located in the Tehran province of Iran. The data collected were analyzed using PLS-SEM.Findings- The data analysis results showed that GPtI and GPsI significantly influence EcP, EnP, and SoP. Furthermore, the findings indicate that while ELIM positively impacts EnP and SoP, it does not exert any influence on EcP.Practical Implications- This research highlights the significance of GTI in enhancing SP, providing practical implications for SMEs to adopt eco-friendly practices, thereby improving operational efficiency, reducing environmental impact, and fostering competitive advantage in the market.

The importance of ICT adoption on MSMEs performance: the mediating role of distinctive competencies

Purpose This study aims to examine and identify how the resource-based view and dynamic capability theory contribute to information and communication technology (ICT) adoption to improve micro, small and medium enterprise (MSME) performance, mediated by distinctive competencies. This research provides insight into how MSMEs can improve performance by strategically adopting ICT tools and developing distinctive competencies. Design/methodology/approach Data were collected through online questionnaires from creative industry MSMEs (fashion, culinary and crafts) in Indonesia. The results were analyzed using the partial least squares-structural equation method technique (Fornell and Cha, 1994) with Smart PLS 3.0 (Ringle et al., 2015). Findings The results show that ICT adoption significantly impacts the MSMEs marketing performance in the creative industry sector. In addition, adopting ICT tools influences the development of distinctive competencies among MSMEs, improving MSMEs marketing performance. Distinctive competencies were found to mediate the relationship between ICT adoption and MSMEs marketing performance, which underscores the importance of technology skills, organizational skills, environmental skills and entrepreneurial mindset in driving business success. These findings highlight the critical role of distinctive competencies as a key factor in leveraging ICT adoption to improve MSMEs marketing performance. Research limitations/implications The main limitation is that this research coverage area is less extensive due to the time constraints of this study. Future work could cover different regions and explore other mediators in the ICT–performance relationship. Practical implications This research assists MSMEs in improving performance by adopting ICT and developing distinctive competencies with targeted training in relevant skills. Social implications This research highlights the potential to improve MSMEs marketing performance and drive economic growth and resilience through ICT adoption. Originality/value This study contributes to the existing literature by providing empirical evidence of the relationship between ICT adoption, distinctive competencies and MSME marketing performance in the context of the creative industries sector. This study offers a new perspective on how MSMEs can use ICT tools and develop distinctive competencies to enhance their marketing performance competitive advantage and achieve sustainable growth. By emphasizing the mediating role of distinctive competencies, this study highlights how ICT adoption impacts positively MSME marketing performance, providing valuable insights for practitioners, policymakers and researchers in entrepreneurship and technology adoption.

The Influence of Financial Literacy and Access to Financing on the Profitability of MSMEs in Gorontalo: An Empirical Analysis

This study aims to analyze the influence of financial literacy and access to financing, primarily through People's Business Credit, on the profitability of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. In the context of the significant development of MSMEs in various regions, good financial literacy is expected to increase financial inclusion and, in turn, support business growth. The method used in this study was a survey with a questionnaire distributed to 100 MSME actors in Bandar Lampung and Gorontalo. Data analysis used linear regression techniques to identify the relationship between variables. The study results indicate that high financial literacy and reasonable access to financing positively increase MSME's profitability. These findings emphasize the importance of increasing financial literacy and access to funding for MSMEs to encourage local economic growth. Policy recommendations are aimed at the government and financial institutions to improve financial education programs and facilitate access to financing for MSMEs.

Digital capabilities of SMEs: driving the Industry 4.0 revolution and measuring its innovative effects

PurposeThis study developed a theoretical model to test the relationship between digital capability and Industry 4.0 (I4.0) and its effect on innovation performance in small and medium-sized enterprises (SMEs).Design/methodology/approachThe proposed theoretical model was evaluated using partial least-squares structural equation modeling and fuzzy-set qualitative comparative analysis. The data were obtained from a sample of 536 SMEs in Chile.FindingsThe proposed model presented two dimensions of digital capability: management and information and communication technologies (ICTs). Management models composed of enterprise resource planning and customer relationship management systems are essential for optimizing organizational management. Meanwhile, ICTs facilitate the smooth flow of information within an organization, leading to improved efficiency in production processes. I4.0 is encouraged by exposing SMEs to base technologies such as data analytics. These results confirm that I4.0 influences innovation performance.Practical implicationsSME managers should encourage the development of digital capabilities to transition toward I4.0, as this can make SMEs more competitive and innovative in changing and dynamic scenarios.Social implicationsI4.0 adoption and the development of digital capabilities can directly affect employment and national economic growth.Originality/valueMost studies focus on the organizational factors affecting SMEs’ I4.0 adoption. They do not, however, address the role played by current digital capability in I4.0 technology adoption and its effect on firms’ innovation performance.

Supply chain risks for SMEs in construction projects: a structured literature review and research agenda

PurposeWhilst there has been much research examining risk management in construction supply chains, there is a relative dearth of knowledge concerning small and medium-sized enterprises (SMEs) in this context. SMEs are considered vulnerable economic agents due to their financial constraints and reduced viability compared to large firms. This study aims to fill this gap by providing a comprehensive review, identifying key challenges in the research and generating a future research agenda.Design/methodology/approachA structured literature review was conducted in this study, resulting in the identification of 106 articles that relate to construction SME risks. Thematic analysis was then employed to determine the supply chain risk themes. Additionally, VOSviewer was employed to depict content frequency and, most recently, trends based on the timeline.FindingsThis paper uncovers eight distinct supply chain risks pertinent to construction SMEs, arranging these into three themes from the standpoint of supply chain risk management. Moreover, it identifies six gaps in the existing body of research on construction SMEs and puts forth prospective research directions and questions to address each of these identified gaps.Originality/valueThe practical significance of this study is to provide SMEs in the construction industry with a comprehensive framework for identifying and categorizing risks related to management and strategy, operations and processes and sustainability. With this framework, SMEs can systematically assess potential risks at all stages of a project.

ENTREPRENEURIAL ORIENTATION AS DRIVER OF SUSTAINABILITY IN NIGERIAN SMEs

The Nigerian economy is predominantly driven by Small and Medium-sized Enterprises (SMEs), which play a significant role in contributing to the country’s gross domestic product (GDP) growth. This paper examines the role of entrepreneurial orientation as a key driver of SME sustainability in Nigeria. Unlike previous studies that have focused primarily on quantitative approaches, this research adopts a qualitative methodology to explore how innovativeness and competitiveness influence the sustainability and performance of SMEs. Primary data was collected through semi-structured interviews with four SME owners, selected using purposive sampling to ensure their relevant experience with innovation and sustainability. The study utilized the Narrative Textual Case Study (NTCS) method to analyze the data. The interviews were designed to capture insights into how the introduction of new ideas, processes, and products impacts the performance and sustainability of SMEs. The findings revealed that innovativeness, as demonstrated through the introduction of new ideas, processes, and products, plays a critical role in fostering SME sustainability across environmental, social, and economic dimensions. Furthermore, competitiveness emerged as a crucial factor, enabling SMEs to evaluate various strategic options for growth and long-term viability.

WHAT PREDICTS THE TECHNICAL EFFICIENCY IN MALAYSIA’S FOOD PROCESSING INDUSTRY?

The present study focuses on the technical efficiency of Small and Medium Enterprises (SMEs) and Large-scale enterprises (LSEs) in Malaysia's food processing industry by adopting Data Envelopment Analysis (DEA) and Tobit regression. The empirical results provide that the SMEs technical efficiency score in constant return to scale (CRS) and variable return to scale (VRS) are 0.940 and 0.986 respectively which indicates the SMEs can enhance the level of output by 6 per cent for CRS and 1.4 per cent for VRS by using the given level of inputs. Moreover, the technical efficiency level of LSE is 0.673 and 0.942 from CRS and VRS respectively. The finding also suggests that the training cost, research and development, and foreign direct investment positively affect technical efficiency while information and technology, public infrastructure, and trade openness negatively affect the technical efficiency in SMEs. On the other hand, government infrastructure and trade openness have a positive connection with the technical efficiency of LSEs in Malaysia's food processing industry. Contradiction, research and development, and world oil price are negatively affecting the technical efficiency in LSEs which means the higher of these variables, the higher the efficiency in LSEs.

Analysis of Company Policies and Strategies Based on Identification of The Contribution Technology Needs in MSMEs Leather Processing Industry

<p class="Abstract"><strong>Technology is crucial to the success of any company, especially for Micro, Small and Medium Enterprises (MSME). MSMEs XYZ is a small and medium industry in Bandung that processes leather into bags. As a result, it is vital to boost technology by conducting a technology management analysis on these SMEs in order to maintain quality products and compete with the competition. This research aims to use the technology assessment analysis based on Technometrics models as a foundation for evaluating strengths and weaknesses linked to products and processes in MSMEs XYZ in order to get alternative strategies and policies. The measured technology components include technoware (production equipment), humanware (human resource capabilities), infoware (information tools), and orgaware are the measured technological components (organizational tools). The component contribution values for technoware (0,223), humanware (0,688), infoware (0,156), and orgaware (0,311). The Technologies Contribution value received (0,279) is a type of traditional technology with a low classification level. Recommendation for this research is acquisition within procurement of manufacturing machinery and equipment. In order to preserve company sustainability in terms of technology, MSMEs XYZ to raise investment, update products and manufacturing methods, and expand human resources.</strong><strong></strong></p><p class="Abstract"><strong><em><span lang="EN-GB">Keywords</span></em></strong><em><span lang="EN-GB">: MSME, Production, Technometrics Model.</span></em></p>