Small Medium-sized Enterprises Research Articles

BLOCKCHAIN DRIVEN INTERNATIONAL BUSINESS: A NEW FRONTIER

ABSTRACT This paper discusses the impact blockchain technology has on international business. There are great opportunities for incorporating the blockchain within global value chain activities and cross-border trade facilitation, along with business functions across borders – i.e., blockchain driven international business (BDIB). The paper posits that while initial investments in BDIB would be higher, there would be better performance realized over the long term. It is critical, then, to better understand and research the incorporation of this technology across the various needs of multinational enterprises (MNEs) as well as international small & medium sized enterprises (SMEs). Implications are discussed. Keywords Blockchain, Global Value Chains, International Business

Social media insights for non-luxury fashion SMEs in emerging markets: evidence from young consumers

PurposeThe study investigates the factors that influence young consumers (Gen Zs and Ys) in emerging markets to engage fashion ads of non-luxury fashion retail small- to medium-size enterprises (SMEs) on social media. Through a desk assessment of practice and the phenomenon's available evidence in the extant literature, four main drivers were delineated, reviewed and subsequently tested to influence young consumers' behavioural engagements of emerging markets' fashion SMEs' social media contents.Design/methodology/approachA non-probability sample of 1,150 respondents (Gen Y and Z combined) in Ghana, an emerging market, formed the sample for the study. The respondents assessed four empirically identified antecedents (sales campaigns, relevant sales-related information, catchy and inspiring product/brand photo/video and consumer-generated contents) that are likely to influence their behavioural engagement on social media platforms (Instagram, Facebook, WhatsApp and Twitter). SmartPLS (version 3.3.3) was employed to perform partial least square structural equation modelling.FindingsThe results showed that to engage fashion-related ads, particularly from non-luxury fashion SMEs, young consumers consider sales campaigns, cues from consumer-generated contents, as well as quality and inspiring videos and photos. Less attention is given to relevant sales-related information.Practical implicationsThe three significant drivers of engagement found in the current study provide managerial knowledge for non-luxury fashion SMEs in emerging markets. Videos and still pictures must be of high definition and quality. Short and long promotional campaigns may drive positive behavioural engagements. Interactivity between fashion SMEs and young consumers is encouraged as it precipitates the positive engagement behaviours enabled by social media. The study concludes with actionable recommendations for the non-luxury fashion SME sector in emerging economies.Originality/valueThe study is the first of its kind to ascertain what drives young consumers' engagement with non-luxury fashion SMEs on social media. It provides managerial insights and guidance to SMEs in emerging markets on effective social media fashion retailing targeted mainly at digital natives, the dominant generational cohorts on social media in most emerging economies.

The Tendency for Occupational Fraud in Malaysian Small Medium Enterprises and The Effect of Internal Control, Ethical Culture and Awareness on Fraud

Occupational fraud requires serious attention due to its detrimental effect towards businesses, nation’s economy, and community well-being. Implications led to businesses losing their revenue while affecting global economy negatively and depriving the society of fair share on nation’s wealth. Malaysia’s businesses have seen cases of occupational fraud among small, medium sized enterprises (SME) representing the significant portion of country’s business population of 95%. Such vulnerability among them were due to deficiency in control system. Hence this study aims to assess the influence of internal control, fraud awareness and ethical culture on tendency of occupational fraud within SMEs in Malaysia. Most past studies have focused on public sector and listed companies while limited study was done on SME with inconsistent results. Questionnaire survey was adopted with SME staffs as respondents from 384 SME out of 907,065 establishments. Data collected was analyzed using multiple regression which revealed significant influence by internal control and fraud awareness factors on tendency of occupational fraud among SME staffs, while ethical culture showed insignificant influence. This study has limitation due to limited number of response rate of 33% and sample may not consist of SME whose staffs had committed occupational fraud. The finding provides further evidence on tendency of occupational fraud among SMEs. It will be useful for organizations, especially SMEs in understanding potential areas requiring further attention to remedy occupational fraud.

Software Positioning Tool to Support SMEs in Adoption of Big Data Analytics using a Case Study Application

Big Data Analytics is widely adopted by large companies but to a lesser extent by small to medium-sized enterprises (SMEs). SMEs comprise 99% of all businesses in the UK (6 million), employ 61% of the country’s workforce and generate over half of the turnover of the UK’s private sector (£2.1trillion). SMEs represent 99% of all businesses in Europe and 90% worldwide. Therefore, assisting them to gain competitive advantage by the adoption of technology, such as Big Data Analytics is an important business initiative. The aim of this paper is to outline the process in which a positioning tool based on theoretical frameworks has been developed to help SMEs analyse their readiness to adopt Big Data Analytics using a case study. Previous work has identified 21 barriers to adoption and a methodology based on theoretical frameworks was developed to produce a positioning tool Holistic Big Data Analytics Framework for UK SMEs(HBDAF-UKSMEs).The paper outlines a case study based on a software development company to utilise this HBDAF-UKSMEs framework to assess the readiness using the proposed scoring tool for the adoption of Big Data Analytics based on three stages: pre-data analytics, business intelligence and Big Data Analytics.

Key factors influencing the export performance of SMEs in Rwanda: evidence from the non-traditional export sector

Purpose This study aims to develop and empirically test a model that describes the factors influencing a firm’s export performance; a model that can be adopted by future export researchers, policymakers and practitioners. Specifically, this study aimed to identify the main factors affecting the export performance of manufacturing small- to medium-sized enterprises (SMEs) in Rwanda and determine the extent of influence of each identified factor on export performance. Design/methodology/approach The research design combines both exploratory research and causal research designs to test the proposed model. Interview guide and survey questionnaires were used to collect the raw data. The collected quantitative data were analysed using the structural equation modelling technique with the Analysis of Moment Structures software. Findings The findings revealed that all the factors identified, namely, organisational, entrepreneurial and industrial, and market factors had a significant positive impact on the export performance of SMEs. Moreover, entrepreneurial factors were proven to be the most influencing factors in export performance followed by market-level factors. In this context, the proposed resource-market-based model of export performance was tested and validated in a less developed country, Rwanda, for exporting SMEs. Originality/value The proposed model of export performance extends the existing literature in two ways: firstly, it integrates internal and external factors to explain the export performance of an SME and secondly, it tests the relative importance of these factors in driving and maintaining international performance.

Accelerating the transformation to a sustainable food economy by strengthening the sustainable entrepreneurial ecosystem

Strengthening the sustainable entrepreneurial ecosystem (SEE), particularly its support functions for small to medium-sized enterprises (SMEs), is increasingly seen as an important means of accelerating the transformation to a sustainable economy. Little is known, however, abouthowto strengthen SEEs. In this article, we evaluate a series of 16 projects intended to develop SEE functioning to accelerate transformation to a sustainable food economy in the Greater Phoenix Area of Arizona. We use an evaluative framework designed around a set of ten SEE support functions to qualitatively assess the baseline state of the SEE, how projects were executed, the effects of these projects, and the overall changes in the SEE that resulted. The findings indicate all but one projects had positive effects on the SEE (nine weak, six medium). In conjunction with other developments, the projects raised the overall SEE performance from the baseline state of two functions being performed at only minimal level, to six functions being performed minimally, and one at a medium level. Insights gained from comparing results across projects suggest tentative guidelines for future practice, which should be useful for SEE stakeholders, including policy makers, economic development agencies, financial institutions, consultants, and educators, interested in strengthening SEEs. Researchers engaging in studies on strengthening SEEs may benefit from the evaluative framework enabling larger cross-case comparisons.

Dependencies between MES features and efficient implementation

During the last decade, a lot of procedure models for the introduction of industry 4.0 (I40) or industrial internet of things (IIoT) solutions have been proposed, especially in the German literature. Since they target all kinds of I40 projects they necessarily must be somewhat generic and are missing important details especially for the “implementation phase”. However, even in specific models for introducing manufacturing execution systems (MES) there are a lot of vague hints instead of concrete advice of how to do an effective and efficient implementation. Although it is certainly right that soft factors like finding the right partners and doing a good change management that involves end users early in the process are at least as critical as technical aspects, the latter should not be neglected. In this paper, some desirable features of MES are discussed and how they positively influence the efforts necessary for introducing such a system in a small to medium sized enterprise (SME).

Digitalisation for organisations in industry 4.0: A working example

Digitalisation and Industry 4.0 is changing the landscape of traditional industries and how they operate. Regulation, sustainability and staff shortages are challenging companies to alter their behaviour and business processes. It is now becoming essential for small to medium size enterprises (SMEs) to adapt to this change. This paper showcases how digitalisation can help with these new requirements by examining a case study with specific interest in collecting, monitoring and analysing data. The application was created for an SME registered in Ireland, and it will be used to showcase the difference between normal coding and low code development in the creation of these apps. This comparison is important because low code development will become essential for organisations in order to create novel IT-based approaches that will be used for the digital transformation of their specific business. Along with describing and reflecting on this process, we will also explain how this application is linked with the Sustainable Development Goals (SDGs) and how companies can integrate these goals in their business and IT choices.

The Relationship between Entrepreneurial Orientation and Employee Engagement: A Multilevel Analysis

This research examined the relationship between entrepreneurial orientation and employee engagement, using a sample of 372 employees from small to medium-sized enterprises (SMEs) in Syria. Our study aimed to provide an empirical understanding of the intricacies that interplay between the entrepreneurial orientation of firms and the level of employee engagement. The results indicate a positive correlation between these two factors. The insights provided by this study may be valuable for business owners, policymakers, and researchers alike.

Entrepreneurial Orientation, International Operations, and Logistics Alliance Usage: Perspective From Australian SMEs

At a time when small-to-medium-sized enterprises (SMEs) are challenged with the international logistics disruptions, forming a large set of logistics alliance relationships has become a critical strategic matter for SMEs. The objective of this study is to examine the links between SME entrepreneurial orientation, international operations, and logistics alliance usage. Utilizing resource dependency theory and upper echelons theory, a model is tested using survey data from 222 Australian SME executives. The findings present a direct positive relationship between SME entrepreneurial orientation and logistics alliance usage. Moreover, the study finds that the link between entrepreneurial orientation and logistics alliance usage becomes stronger for the firms that participate in international operations.

Workforce diversity enhancing employee performance in small and medium-sized enterprises in Pakistan

This study aimed to highlight workforce diversity in employee performance practice in Pakistan's small and medium enterprises. There is a significantly larger need for a diverse workforce in Pakistani SMEs because SMEs developing their positive contribution to sustaining a Pakistan economy and workforce diversifying the private sector in employment. The influence of diversity involves gender, age, education, and ethnic diversity to improve employee performance. This quantitative research used a survey method to collect data from 120 employees employed in SMEs in Pakistan. The study findings established the significant contribution of training for workforce diversity and employee performance is important for SMEs to solve work-related problems. Initially, employees need to understand the diverse system at SMEs for better team building to accomplish of a task. The statistical results also support the significant association of skills training and team building for task completion. The current study examines the significant challenges to workforce diversity top dimensions of gender, age, education, and ethnicity offer suggestions on how to improve workforce diversity and employee performance. This research is addressing workforce diversity and employee relations in small and medium-sized enterprises in Pakistan, and for better performance, SMEs in Pakistan must concentrate on giving staff tasks and training that are relevant to those tasks. The research influence that all the top four dimensions of workforce diversity (gender, age, education, ethnicity) have a positive correlation with employee performance in a Pakistani small-medium size enterprise. As a result, SMEs must operate workforce diversity to improve employee performance.

Empathize with Whom? Adopting a Design Thinking Mind-Set to Stimulate Sustainability Initiatives in Chinese SMEs

This paper highlights the growing importance towards supporting Chinese Small to Medium sized Enterprises (SMEs) in adopting pro-active and collaborative behaviors that stimulate sustainability initiatives. Equating to 90% of enterprises in the country and contributing towards 60% of the nation’s gross domestic product (GDP), China’s SMEs are recognized for their willingness to engage in change, raising the potential for exploring and embarking on new ventures. This paper proposes that a design thinking mind-set, rooted in empathic stakeholder dialogue, conceptually supports SMEs to engage with the increasingly complex challenges that envelop China’s society, culture, economy, and environment. Discussion emphasizes that proactively including and responding to the various and ambiguous needs of stakeholders leads to increased opportunity for innovation and new ways of thinking, both being vital for sustainable and responsible growth. Equally, the questions of whom to empathize with and how should SMEs empathize are postulated as roadblocks to the adoption of design thinking in SMEs. This paper proposes a model for addressing those challenges.

Knowledge integration for resilience among multinational SMEs amid the COVID-19: from the view of global digital platforms

PurposeMultinational small-to-medium-sized enterprises (SMEs) are increasingly participating in cross-border digital platforms – especially amid the COVID-19 pandemic. Accordingly, knowledge integration (KI) has become more and more important. In fact, it has been deemed by many as the key to organizational resilience. Given this burgeoning phenomenon, this study aims to explore a path for improving the resilience of multinational SMEs. Through this process, this study also finds a relationship between the KI processes associated with adopting global digital platforms and the resiliency of local–global businesses. Hence, in part, this paper also explores the effectiveness of all these mechanisms.Design/methodology/approachThis study used the stepwise regression method in Stata 16.0 to analyze the direct effects of both horizontal and vertical KI processes on the resilience of local–global businesses. Additionally, t-tests were also used to compare the differences in coefficients between the mechanisms. The sample analyzed comprised data on multinational manufacturing SMEs in the Yangtze River Delta region of China who are using global digital platforms.FindingsThe KI processes of these firms, both horizontal and vertical, positively correlate to resilience. Horizontal KI processes more efficiently increase the resilience of global businesses, whereas vertical processes more efficiently increase the resilience of local businesses.Originality/valueFirst, this study provides insights into how multinational SMEs can improve their resilience in a crisis. In addition to adding to the knowledge of KI processes, this expands the KM literature on pandemics. Second, by creating two KI processes based on global digital platforms and discussing their influence on resilience, this research deepens the understanding of affordance in the KM literature. Third, focusing on the KI research stream, the results shed light on how KI processes might occur and how firms develop their KI processes.

Enterprise Resource Planning Critical Success Factors in Small Medium-Sized Enterprise

Enterprise Resource Planning Critical Success Factors in Small Medium-Sized Enterprise

Exploring multi-stakeholder value co-creation as an entrepreneurial approach to survival and sustainability: The case of Pennine Pubs

This case focuses on the entrepreneurial use of multi-stakeholder value co-creation to emerge stronger from challenging trading conditions. In particular, it examines Pennine Pubs, a small-/medium-sized enterprise (SME) operating several rural public houses, which are licensed to sell food and alcoholic drinks to guests. Based in Northern England, it has adapted commercial strategies to mitigate government-enforced Covid-19 lockdowns. Pennine Pubs’ Managing Director is currently considering how to build upon the multi-stakeholder value co-creation strategy which emerged quickly immediately before and during the first lockdown period, when customers were prohibited from visiting pubs. He expects the outcome to be a more refined and sustainable commercial strategy which retains the most significant benefits of his lockdown-period innovations. The case considers how co-creation is applied as a reaction to unforeseen business challenges, and how it can underpin proactive strategies to capitalise upon favourable trading conditions. The concept is explored in the context of rapidly evolving, unpredictable and highly problematic constraints upon retail trade, and the ‘new normal’ of customers returning to retail premises, albeit with expectations modified by recent experiences. Finally, the case considers the impact of SMEs collaborating with suppliers, customers and other stakeholders to co-create mutual, commercially sustainable value.

Digital Technology Transformation of SMEs: Indonesian Case Study

The transition to the industry 4.0 era has forced businesses worldwide, including Indonesia, to adapt to digital transformation. The problem faced by small and medium-sized businesses is the readiness to adopt digital technology. It is necessary to study the readiness of Small Medium Sized Enterprises (SMEs) to face changes so that information and needs from SMEs can be obtained to adapt to this new era. This paper aims to analyze SMEs’ technological readiness to carry out digital transformation in Indonesia. The research method is quantitative, involving 150 SMEs in Manado City. North Sulawesi Province, Indonesia online. Data analysis with multiple regression. The research findings reveal the readiness of SMEs to carry out digital technology transformation in Indonesia. The implication of this research is to serve as a guide for the government, universities, and the industrial world so that SMEs in Indonesia can successfully transform digital technology.

Call for Papers: Accounting and accountability in small- to medium-sized enterprises (SMEs)

Call for Papers: Accounting and accountability in small- to medium-sized enterprises (SMEs)

Call for Papers: Accounting and accountability in small- to medium-sized enterprises (SMEs)

Call for Papers: Accounting and accountability in small- to medium-sized enterprises (SMEs)

Marketing capability development through networking – An entrepreneurial marketing perspective

How are marketing capabilities developed in SMEs? Drawing upon the entrepreneurial marketing perspective, this article explores how small-to-medium-sized enterprises (SMEs) develop their marketing capabilities. Using an in-depth qualitative study of SME entrepreneurs from a small open developed economy, we find that entrepreneurial networking plays a significant role in how SMEs develop specialized, cross-functional and dynamic marketing capabilities which are integral to their growth and competitiveness. We identify the type of resource interaction processes entrepreneurs engage in with actors in their network to generate and deliver market value. SMEs in this study wholly depend upon entrepreneurial networking for accessing key informational, relational, reputational, and knowledge resources to develop their marketing capabilities. Our findings further elucidate that the type of entrepreneurial networking in this study is one that exhibits entrepreneurial marketing behavior, yet, is more strategic and deliberate in nature rather than effectual. This study advances the entrepreneurial marketing and marketing capabilities literatures by assigning greater theoretical and empirical credence to the under-explored role of entrepreneurial networking in marketing capability development in SMEs.

Diversity field officer service: An evaluation of an employer engagement strategy trialed in Geelong, Australia

BACKGROUND: The Australian Government has applied considerable focus to improving the unemployment rate of people with disability through initiatives to build their capacity and job readiness. Far less attention has been paid to addressing the needs of business, especially small- to medium-sized enterprises (SME). OBJECTIVE: We evaluated the Diversity Field Officer Service (DFOS) pilot, which aimed to address that gap through providing direct support to SME to build disability confidence and more inclusive organizations. METHODS: We used a mixed method approach (pre- and post-service surveys along with post-service semi-structured interviews) with representatives from 36 businesses. We used descriptive statistics and thematic analysis to summarise the survey data and interview material, respectively. RESULTS: Confidence in employing people with disability increased, as did the employment of, and intention to employ, people with disability. Many businesses were implementing, or planning to implement, measures to increase the employment of people with disability. DFOS capacity building exercises and activities (e.g., one-to-one conversations to understand the specific needs and challenges of their businesses) were all rated highly. Participants were generally supportive of an ongoing role for DFOS. CONCLUSION: The DFOS holds promise as a strategy to increase the employment of people with disability in SME.