Small Medium-sized Enterprises Research Articles

The schizophrenic board secretary: Embedded agent between multiple stakeholders and financial misconduct

While agency theory has emphasized the importance of corporate governance in preventing financial misconduct, monitoring bodies do not always function well, especially in transition economies. By integrating the stakeholder-agency perspective with prospect theory, this study provides a new explanation of such dysfunction by introducing an embedded agent concept that manifests in a “schizophrenic” status of agents who need to satisfy multiple stakeholders and their conflicting interests. Drawing on a sample of small-to-medium-sized enterprises (SMEs) listed on the Chinese National Equities and Exchange and Quotations system from 2014 to 2017, it is shown that having a board secretary did not help reduce financial misconduct as the government expected, due to an embedded agent problem. However, their dysfunctional status would largely disappear, and they would perform their monitoring responsibilities if given higher equity shares and stricter subnational regulations, two key contingencies that better align embedded agents’ interests with one group of stakeholders. Overall, this study contributes to the corporate governance literature by introducing the embedded agent concept and its theoretical boundaries, along with a focus on transition economies.

Green Innovation for Small-to Medium-Sized Enterprises (SMEs): Systematic Literature Review

The green innovation literature of the past few decades is not only interesting for research due to its high level of environmental awareness and the provision of green products and services, but also because of its widespread and important applications. This study aims to determine research trends related to the adoption of green innovation, especially in SMEs during 2013-2023 by using Systematic Literature Review techniques. The result of this research identifies the key elements factors of GI for managers and ultimately serve as an important reference to help formulate GI activity strategies. This research can serve as a foundation for scientific development so that the number of studies related to new topics related to green innovation also continues to increase

Green HRM practices, employee well‐being, and sustainable work behavior: Examining the moderating role of resource commitment

AbstractThis study examines how green human resource management (HRM) practices impact employees' subjective well‐being through the mediating mechanism of employees' green behavior (EGB). We further explore the moderating role of resource commitment. Based on a sample of 249 employees and their supervisors working in small‐ to medium‐sized enterprises (SMEs) in Ghana, we discovered that green HRM practices have a positive influence on EGB, and this connection is further reinforced by resource commitment. The analysis also reveals that EGB serves as a mediator in the relationship between green HRM practices and employees' subjective well‐being. These findings suggest that green HRM practices affect employees' subjective well‐being through EGB. The wider implications of these findings for theory and HRM practitioners are discussed.

Floriculture Industry: Multifunction Leaves Stem Cutting Machine for Small Medium-sized Enterprises

The floriculture industry plays a crucial role in the global economy by providing not only aesthetic value but also contributing significantly to agricultural employment and the export market. However, the efficiency and sustainability of SMEs in floriculture are often hindered by labourintensive practices, especially in the propagation of plants through stem cutting. This novel multifunction leaves stem cutting machine designed specifically to cater to the needs of SMEs in the floriculture sector. This machine serves the function to separate the flowers and leaves for selling purposes. It has gained lots of interest specifically in the flower-related field, florist businesses, and leaves extraction processes due to its convenient applications in separating the leaves from the flowers. However, readily available machines such as rose cutting machine are lack in it functions where it only operates only one function. The deficiency of the current product may cause serious injury to employees because the existing machine does not have good safety features that can avoid the workers being injured while carrying out the work. The objective of this study is to design, fabricate and test the functionality of the new system and ergonomic multifunction leaves stem cutting machine. The design was created by using Fusion 360 with the main part separating leaves, cutting the stem, washing part, and system part. All the processes will be carried out on the machine that have safety features that will not harm the user. The machine demonstrated exceptional performance including consistency of the machine that will benefits the SMEs with high productivity and lower production cost.

Sustainable business models in ‘lighthouse’ small to medium enterprises

AbstractAddressing major global environmental and social challenges requires transformation of the private sector. Small- to medium-sized enterprises (SMEs) constitute 90% of private organisations globally, resulting in calls for research into the strategic roles SMEs can play in shaping sustainable futures through adopting sustainable business models (SBMs). The purpose of our study is to understand the factors that allow SMEs to successfully adopt SBMs. We used an exploratory qualitative approach drawing on interviews with SMEs implementing SBMs. Our findings extend contemporary insights by revealing the important role of the external support (‘enabling’) environment, and identifying—potentially transformative—capabilities that can help steer SMEs’ transitions to SBMs. These include persistence, tenacity, flexibility, adaptability, and a willingness to learn and fail. They enable SMEs to successfully operate in times of uncertainty and rapid changes in the external environment, and respond to new requirements through changes to their business models.

Key policy mechanisms supporting the University–Industry collaboration in the Danube region: case study of academic HPC centres and SMEs

Purpose This paper aims to explore the key anchors of the National Innovation System shaping the nature of collaboration between academic high-performance computing centres (academic HPC centres) and small- to medium-sized enterprises (SMEs) working in the automotive and electronics sectors of the Danube region. With two main research questions, it discusses the importance of knowledge transfer and technology transfer for collaboration between University and Industry (U-I collaboration) in three groups of developmentally distinct countries: competitively advanced, competitively intermediate and competitively lagging. As main anchors of the innovation system, stable legal environment, exciting innovation policies and strong R&D funding are recognised.Design/methodology/approachA qualitative empirical study in 14 Danube region countries included 92 focus group participants, expert representatives of academic HPC centres and SMEs. The data were audio recorded, transcribed and analysed.FindingsThe findings show the main prerequisites of the framework conditions for efficient U-I collaboration evolve through a goal-oriented National Innovation Policy and developed and functioning legal environment supporting labour market and intellectual property (IP) protection and enforcement. Additionally, skilled people are needed to be able to operate with HPC, where it seems all the countries lack such skilled workforce. In competitively lagging countries, the high levels of brain drain exhibit strong impact to U-I collaboration.Research limitations/implicationsResearch into relationships between academic HPC centres and SMEs conducted was qualitative; therefore, limitations in terms of generalisation arise from it. On the other hand, the research is promising in terms of offering the guidance for policy makers who can use the findings when delivering innovation policy mix, adjusted to developmental level of own innovation ecosystem.Originality/value The study is among the pioneering work in U-I collaboration between academic HPC centres and SMEs from automotive and electronics industries in the Danube region. The research addresses the dynamics of collaboration and offers policy implications to strengthen the particular U-I collaboration.

A mobile messaging-based conversational agent-led stress mindset intervention for New Zealand small-to-medium-sized enterprise owner-managers: effectiveness and acceptability study

ABSTRACT The rising surge of work-related stress is particularly severe among small-to-medium-sized enterprise (SME) owner-managers, and has been linked to an array of deleterious consequences, such as burnout, venture failure, and suicide. Sadly, the majority of available stress management interventions appear to be ill-suited to owner-managers. Prior work, however, suggests that mobile phone-based messaging conversational agents (CAs) may hold promise for delivering mental health interventions to underserved groups such as the self-employed. Furthermore, recent research with SMEs finds that altering one's stress mindset – beliefs about the extent to which stress might be enhancing or debilitating can change one's responses to stress. Against this backdrop, the present study assessed the effectiveness and acceptability of a first-of-its-kind mobile messaging-based conversational agent-led stress mindset intervention (mCASMI) for Aotearoa New Zealand SME owner-managers. The mCASMI was delivered over 4-days via WhatsApp Messenger. The results confirmed that the mCASMI was successful in altering participants' mindsets about stress, in conjunction with self-reported improvements in productivity and work performance. The owner-managers who received the intervention were engaged, adherent, and reported a high degree of rapport with the CA. Though preliminary, these findings extend the state-of-the-art and suggest progressing with a larger-scale feasibility study.

The Determinants of Cloud Computing Vision and Its Impact on Cloud Accounting Adoption in SMBs

This study challenges the conventional belief of autonomy among the technological, organizational, and environmental (TOE) framework constituents and probes into their effect on the adoption of cloud-based accounting within small- to medium-sized enterprises (SMEs). We postulate that a vision of cloud computing plays a mediating role between the TOE elements and the adoption of cloud accounting practices. The study delves deeper into exploring the mediating impact of this cloud computing vision in driving the adoption of cloud accounting. Applying a snowball sampling methodology, we successfully collated 293 relevant responses. The outcomes lend support to the interconnectedness prevailing among the TOE components. The cloud computing vision emerged as a crucial mediator, accentuating the influences of organizational readiness, senior management endorsement, relative advantage, compatibility, and competitive pressure on the transition to cloud-based accounting. Additionally, our findings illuminate the impact of cultivating a vision of cloud computing on the adoption of cloud accounting methodologies. These results contribute to the enrichment of the TOE model by calling into question the prevalent notion of independence among TOE components when employing a vision as an intention surrogate. Consequently, we encourage further research to embed the vision as a proxy for intention within the TOE model and to concurrently investigate potential correlations among the TOE elements.

Sustainability Management, Technological Innovation and Corporate Social Responsibility for Social Media Small to Medium-Sized Enterprises (SMEs)

The aim of this paper is to investigate the impact of the social and technological environment on business performance. Focus is placed on SMEs and their effort to achieve sustainable competitive advantage and thereby sustainable business performance. For this purpose, a survey study was carried out, where primary data was collected from a representative sample of SMEs operating in the Social Media industry of Greece. Questionnaires were distributed to managers and entrepreneurs of the Social Media Industry. These managers/entrepreneurs were selected using a simple random sampling methodology. The findings of the study revealed that social and technological developments have a major role in developing a sustainable competitive advantage. Strategy alignment was also found to be key in tackling the problems and in undertaking the opportunities that arise from the current social and technological environment, thereby reaching sustainable business performance. The findings of the study are especially useful to entrepreneurs and professionals in the industry in formulating effective strategies towards aligning their business with current advancements in emerging digital technologies. Such an alignment would bring numerous competitive advantages and in turn sustainable business performance.

Automated Liquid Filling System for Small Medium-Sized Enterprises in Ghana

Ghana has seen a significant rise in the production of beverages by Small and Medium-sized Enterprises (SMEs) in recent times. However, the high cost associated with implementing automated systems in their production makes it difficult for SMEs to adopt such technology. To address this challenge a simple, scalable and economical automated liquid filling system that can be adopted by SMEs is built. The main components of the system are a microcontroller, servo motor, submersible water pump, relay, Liquid crystal display (LCD), and a keypad. The microprocessor in the design makes the system easier to customize to user preference and allows the system to be modified to accommodate different bottle sizes. The system’s use of a counter and timer are employed in the system to eliminate sensors making it economical, power efficient and limiting the number of interfaces for fault. The system is portable, user-friendly and easier to maintain. When tested with water and common beverages in the Ghanaian market the system demonstrated an ability to fill twelve 250-mL bottles with water, sobolo, and fruit juice within 21, 30, and 42 seconds, respectively. Thedeveloped system provides a practical solution to SMEs' challenge of implementing automated systems in their production process, thereby enhancing their competitiveness and potential for growth in Ghana.

The Impact of Proactive Resilience Strategies on Organizational Performance: Role of Ambidextrous and Dynamic Capabilities of SMEs in Manufacturing Sector

The challenges of the global business environment foster small medium-sized enterprises (SMEs) to continuously improve their performance in the level of vulnerability to possible impacts and interruptions in their operations that may affect their sustainability. Resilience strategies and ambidextrous capabilities have become important determinants of organizational performance, which has developed as an emerging area of interest in supply chain management in recent years. SMEs are one of the major contributing sectors to the Malaysian economy. Therefore, SMEs have been forced to survive in the current market situation to ensure higher economic growth and competitiveness. The resilience strategies and ambidexterity capabilities are important determinants of SMEs’ performance. As such, this study aims to examine the relationship between proactive resilience strategies, ambidextrous capabilities, and the performance of SMEs in the manufacturing sector, drawing on the dynamic capabilities perspective. A quantitative research design is adopted, a structured survey questionnaire is used, and data are collected from 351 SMEs in the manufacturing sector. Partial least squares structural equation modeling (PLS-SEM), Smart PLS 3.0 is used to test both direct and mediating results. The findings of this study suggested that proactive resilience strategies may have a significant influence on organizational performance of SMEs. Ambidextrous capabilities also act as a strong mediator between proactive resilience strategies and organizational performance. These findings contribute to the dynamic capabilities literature by highlighting the importance of proactive resilience strategies and ambidextrous capabilities in enhancing the positive impact on organizational performance in SMEs. This study provides a plausible explanation of two important management mechanisms for enhancing organizational performance sustainability. The relationships between proactive resilience strategies, ambidextrous capabilities, and organizational performance are malleable. This study also suggests that fostering formal and informal relationships might hold the key to the sustainable performance of SMEs in the long term. This study’s practical contributions are improving the knowledge and performance of supply chain systems for SMEs in the manufacturing sector and enhancing their competitive power in domestic and international markets.

Enablers and barriers to mental health initiatives in construction SMEs.

Mental ill-health is prevalent in the construction industry, and workers in small- to medium-sized enterprises (SMEs) are at high risk. Knowledge about the implementation of mental health initiatives in construction SMEs is limited. To explore enablers and barriers to implementing mental health initiatives within UK SME construction firms from the perspective of the business owners, directors and managers with responsibilities for workplace mental health. Qualitative study involving semi-structured interviews conducted with company owners/managers with responsibilities for workforce mental health. Participants were sampled from construction SMEs in the UK. Eleven construction professionals were interviewed (10 men, 1 woman; aged 34-55 years, M = 40.6) representing UK SME construction firms that were micro (<10 employees, n = 8), small (<50 employees, n = 1) and medium (<250 employees, n = 2) sized organizations. Reflexive thematic analysis generated four themes: (i) traditional views and macho culture, identified as barriers to implementation; (ii) mental health awareness, knowledge and education; (iii) valuing good mental health and (iv) a reactive or proactive approach to mental health, which all served as both enablers and barriers depending on perspective and context. This study sheds light on an under-researched but high-risk category of workers experiencing poor mental health. We provide recommendations for policy and practice with a 'call to action' for SME owners, industry and policymakers to embark on workplace mental health implementation projects in SME settings.

Analyzing the factors influencing the adoption of cloud computing by SMEs using the SEM approach

Cloud computing (CC) represents a third-generation computing platform that offers numerous benefits, including faster data transactions, cost advantages, elasticity, flexibility, and pay-per-use models, among others. However, CC adoption in developing nations, such as Somalia, is impeded by various challenges. This study aims to investigate the factors influencing CC adoption in small to medium-sized enterprises (SMEs) in Somalia. Data was collected from 195 ICT officials and experts in the SME domain in Mogadishu, Somalia, and analyzed using structural equation modeling (SEM). The results revealed that cost savings, firm size, top management support, and regulatory support significantly influence CC adoption in SMEs. Conversely, security concerns and competitive pressure showed no significant relationship with CC adoption. This study contributes to the literature by examining the technology, organization, and environment (TOE) framework in the context of CC adoption and provides valuable insights to inform policymaking and promote CC adoption in developing nations. Nonetheless, the study's limitation lies in its narrow focus on Somalia, and the generalizability of the results to other developing nations may be limited.

An Exploratory Study of Quality Management for Sustainability among Small Medium-Sized Enterprise

An Exploratory Study of Quality Management for Sustainability among Small Medium-Sized Enterprise

Enabling Sustainable Adaptation and Transitions: Exploring New Roles of a Tourism Innovation Intermediary in Andalusia, Spain

Tourism is a major global and local industry creating value through services that are enhanced and enabled through intermediaries that support innovation in the sector. This exploratory case study examines the roles and activities of a publicly funded tourism innovation intermediary for small medium-sized enterprises (SMEs) and professionals in Andalucia, Spain. We note the gap in knowledge on how intermediaries may best support stakeholders in achieving resilience and sustainability in transitions in tourism service ecosystems. Building on interviews, reports, and observations, this study finds that the intermediary has successfully supported its stakeholders in enhancing their adaptability in the current service ecosystem. There is less evidence of achieving deliberate transformations towards long-term sustainability and resilience. As the intermediary is uniquely positioned at the meso-level of the regional tourism service ecosystem, this study proposes exploring engagement to cover both macro and micro-level activities to enable moving towards becoming a transition intermediary and a regional sustainability catalyst. This study furthermore proposes an expanded range of roles and activities for the intermediary to enable moving towards resilience and sustainability, while contributing to the understanding of innovation intermediaries supporting sustainability in the tourism sector.

Export duration and product innovations: do born globals learn by exporting differently?

PurposeThis paper aims to study the learning-by-exporting effect among small-to-medium-sized enterprises (SMEs). Specifically, the authors propose a dynamic perspective and suggest that learning-by-exporting is duration-dependent and contingent upon the born global internationalization strategy. In earlier phases of export activities, exporting has had a strong positive effect on SMEs’ innovations, which, however, diminishes over time. This inverted U-shape effect is even more distinct for born global firms.Design/methodology/approachThe authors used longitudinal data with 1,689 Canadian SMEs to test their hypotheses. A two-stage instrumental approach is used to take into account the endogeneity of the born global international strategy on new product innovations.FindingsBorn globals learn faster at the early stages of exporting but also restrain their innovations more strongly than gradual internationalizers in the longer run, leveling out the initial learning advantages of newness. Thus, this study suggests that born globals have a significantly different learning trajectory than gradual internationalizers.Practical implicationsTo maximize the benefits of exporting on innovation, managers should focus on learning during the initial years of exporting. However, once this period has passed, it is advisable for managers to invest in research and development as well as other innovation activities to complement the learning effect of exporting. Born global firms experience more rapid learning at the initial stage of exporting, but such learning effects wear off quicker later than gradually internationalized firms. For SME managers, this study helps draw their attention to the learning benefits of exporting in the initial years of export participation.Originality/valueThis study corroborates recent studies arguing for a “learning-by-exporting” effect. Providing longitudinal firm-level evidence, the authors also forward a dynamic perspective and show that learning by exporting is duration dependent and contingent upon the market entry strategy pursued by SMEs.

Strategic factors conferring organizational resilience in SMEs during economic crises: a measurement scale

PurposeThe paper aims to develop a strategic conceptualization and measurement scale of organizational resilience to support researchers examining how small firms prepare and respond deliberately to general disruptions in the operating environment over more extended time frames.Design/methodology/approachThe paper uses a four-step process to develop, present and test (for predictive validity) a scale of strategic organizational resilience for frequent events or those needing long-term responses.FindingsThe resulting seven-factor measurement scale of organizational resilience consists of readiness, slack, problem-solving, flexibility, connectedness, adaptiveness and proactiveness.Originality/valueThe literature on organizational resilience explains how organizations recover from rare but catastrophic events by focusing on adaptation principles and short-term survival. The broader conceptualization presented here enables the study of organizational resilience in small-medium size enterprises (SMEs) across more frequent and pervasive events, such as financial crises, industry downturns and other forms of structural change and technological disruption. This is operationalized in a measure that includes new strategic factors associated with forward-planning and more traditional operationally focused elements.

Exploring the prioritisation of biodiversity amongst small‐ to medium‐sized enterprise leaders with strong bigger‐than‐self value orientation

AbstractThis paper reports on a quantitative study of prioritisation of biodiversity amongst small‐ to medium‐sized enterprise (SME) leaders. Existing research indicates that value orientation impacts propensity for pro‐environmental behaviours. However, as biodiversity loss remains inadequately addressed, this study employs the value‐belief‐norm framework to explore how leaders with strong biospheric and altruistic (collectively termed ‘bigger‐than‐self’) value orientations perceive their responsibility for biodiversity loss in comparison with climate change and, using an adaptation of the Global Reporting Initiative standards, how biodiversity is prioritised against other areas of environmental sustainability in their businesses. Surveying 61 SME leaders, primarily in the South‐West UK, it was found that biodiversity is often considered of low priority compared with factors such as energy, waste, materials and emissions. Analysis also indicates that these leaders feel less responsibility for biodiversity than for climate change demonstrating that, even where bigger‐than‐self values dominate, there is a need for higher prioritisation of biodiversity amongst SMEs.

Tackling grand societal challenges: Understanding when and how reverse engineering fosters frugal product innovation in an emerging market

AbstractSocieties are confronted with grand challenges that require the efforts and coordination of diverse stakeholders. In this context, the role of for‐profit organizations has become vital in addressing such challenges. Drawing on the strategy tripod perspective, this study investigated the influence of reverse engineering on frugal product‐innovation performance (PIP) through the mediating effect of frugal innovation (i.e., cost innovation, and affordable value innovation). In addition, we examined the moderating impact of the industry environment (i.e., technological turbulence) and institutional context (i.e., legal inefficiency) on this relationship. We tested our hypotheses using time‐lagged data from 243 small to medium‐sized enterprises (SMEs) in an emerging economy—Ghana. Results from our analyses show that several of our hypotheses are supported which offers important implications for the indirect impact of reverse engineering on frugal product‐innovation performance in the context of resource‐constrained emerging markets. These findings extend the grand challenges, strategy, and innovation literature.

Seeking innovation: The research protocol for SMEs' networking

The paper aims to state the research protocol for the innovation-seeking behavior of Small- to Medium-sized Enterprises (SMEs), related to the classification of knowledge needs expressed in the networking databases. The dataset of 9301 networking offers as the outcome of proactive attitudes represents the content of the Enterprise Europe Network (EEN) database. The data set has been semi-automatically obtained using the rvest R package, and then analyzed using static word embedding neural network architecture: Continuous Bag-of-Words (CBoW), predictive model Skip-Gram, and Global Vectors for Word Representation (GloVe) considered the state-of-the-art models, to create topic-specific lexicons. The proportion of offers labeled as Exploitative innovation to Explorative innovation is balanced with a 51%–49% proportion. The prediction rates show good performance with an AUC score of 0.887, and the prediction rates for exploratory innovation 0.878 and explorative innovation 0.857. The performance of predictions with the frequency-inverse document frequency (TF-IDF) technique shows that the research protocol is sufficient to categorize the innovation-seeking behavior of SMEs using static word embedding based on the description of knowledge needs and text classification, but it is not perfect due to the general entropy related to the outcome of networking. In the context of networking, SMEs place a greater emphasis on explorative innovation in their innovation-seeking behavior. They prioritize smart technologies and global business cooperation, whereas current information technologies and software are more of interest to SMEs that adopt an exploitative innovation approach.