Small Medium Enterprises Research Articles

Data and IT Systems Security in Contemporary Organizations

ABSTRACT Data and IT systems security is a critical aspect and plays a significant role in protecting an organization’s business. Organizations must safeguard their information and assets to sustain their value and reputation. Security is essential to information systems because it concerns personal and confidential data belonging to users or companies. The study aims to indicate how enterprises in Poland guarantee the security of data and IT systems, as well as to estimate the complexity of this phenomenon. We have confirmed that small and medium enterprises (SMEs) organizations with a lower level of computerization generally invest fewer resources and possess less expertise in establishing and maintaining IT security policies and strategies.

Navigating the Challenges and Seizing Opportunities in Implementing Closed-Loop Supply Chains

Closed-Loop Supply Chains (CLSCs) present a transformative solution for industries seeking sustainability by reintegrating returned products through recycling, refurbishment, and remanufacturing, reducing waste and dependency on added resources. While offering substantial benefits, CLSC adoption faces challenges, including high infrastructure costs, complex reverse coordination, and inconsistent regulatory support, which hinder widespread application. Through a mixed-method approach using surveys and case studies, this study reveals barriers such as financial constraints and operational restructuring needs, while highlighting enablers like digital tools (e.g., blockchain, IoT) that enhance efficiency and transparency. Furthermore, it emphasizes the critical role of regulatory incentives (subsidies, tax breaks, and extended producer responsibility mandates) and strategic partnerships that pool resources and share risks, essential for small and medium-sized enterprises (SMEs) aiming to implement CLSCs effectively. By proposing a practical CLSC framework, informed by empirical data, this research provides actionable insights for businesses to embrace circular economy principles, aligning environmental responsibility with corporate resilience, profitability, and consumer expectations. CLSCs, therefore, are not only an environmental solution but also a strategic opportunity that addresses sustainability imperatives while meeting regulatory requirements and advancing competitive advantage.

Mapping the Scientific Shreds on Barriers to SMEs’ Innovation

The present study aims to showcase the vital contributions to innovation barriers in the context of small and medium enterprises (SMEs) for 1975–2022. With the help of VOSviewer, this bibliometric analysis employs a quantitative method based on documents retrieved from SCOPUS database to assess historical patterns, results and the key elements affecting open innovation in SMEs. The results show an upward trend of research publications in the totality of the 222 documents contributed by 160 authors from 59 countries. The majority of research was conducted in developed countries. Findings also reveal the most cited research articles, keyword analysis, country collaboration and the number of documents published yearly. Language bias may occur as this bibliometric study only included literature written in a single language. Consequently, studies released in other languages may go unnoticed. This study is helpful for policymakers to provide a conducive environment for innovation among SMEs to keep economic growth on priority. This study offers the first comprehensive assessment of innovation barriers in a holistic manner. With the help of bibliometric analysis, the study assesses the intellectual framework of open innovation in SMEs.

Working Capital Management and Financial Sustainability of Small and Medium Enterprises

The study examined the nexus between working capital management and sustainability of small and medium enterprises (SMEs) in Bayelsa State. A quantitative design was adopted and the population of the study was 1256 SMEs and a sample of 303 SMEs was selected through a stratified sampling procedure. The data were collected through a structured questionnaire while content validity and Cronbach alpha was applied to determine the internal consistency of the measurement of the instruments. The data was analysed through structural equation modelling using a process-based approach of Smart PLS. The study found that account receivable management had a significant positive effect on financial sustainability of SMEs while cash management and inventory management had a positive but non-significant effect on the financial sustainability of SMEs in Bayelsa State. It was recommended that there should be a robust policy framework to promote effective receivable collection process and minimize bad debts. Further, managers should improve access to financing options for SMEs and facilitate cash inflows and inventory management. There should also be an integrative working capital management process to ensure financial sustainability of SMEs.

An Investigation of the Barriers and Drivers for Implementing Green Supply Chain in Malaysian Food and Beverage SMEs: A Qualitative Perspective

The food and beverage (F&B) sector in Malaysia is experiencing rapid growth, largely driven by small and medium-sized enterprises (SMEs). However, many Malaysian F&B companies are encountering challenges when it comes to adopting environmentally friendly practices to enhance their environmental performance. This research aims to pinpoint the obstacles that hinder the implementation of Green Supply Chain Management (GSCM) in the F&B industry and to identify the drivers that influence companies' adoption of GSCM initiatives. Data was gathered through semi-structured interviews with 10 individuals from five different F&B SMEs (Companies A, B, C, D, and E) using a qualitative methodology. The data was analyzed using ATLAS.ti version 10, and themes were identified through coding. The study's findings revealed that a lack of knowledge and information sharing presents the most significant barrier to GSCM implementation, as there is insufficient awareness and dissemination of green concepts and practices among SME employees and consumers. Information sharing is crucial for facilitating green activities and promoting collaboration within the supply chain. Additionally, green manufacturing was identified as the most important driver in encouraging environmentally friendly practices among the top five drivers. SME companies need to find a balance between production performance and meeting sustainability requirements. Understanding the barriers and drivers of Malaysian F&B SMEs will enable practitioners to make well-informed decisions regarding GSCM implementation, ultimately enhancing the performance of the F&B industry and ensuring a sustainable food supply.

PERSONAL FINANCIAL PLANNING AND BUSINESS FINANCE IN UMKM IN ARA VILLAGE, BULUKUMBA REGENCY

In an increasingly competitive economy, efficient financial management is the key to success for both individuals and businesses. Good financial planning is not only important for individuals in managing personal finances but also crucial for business continuity, especially for Micro, Small and Medium Enterprises (MSMEs). In 2023, it is estimated that the Indonesian economy will strengthen thanks to the significant contribution of MSME growth, MSMEs play a vital role as the main driver of the Indonesian economy, considering that 99% of businesses in this country are MSMEs. PKM uni aims to increase knowledge about personal finance and business finance. The method used in producing the focus of PKM objectives is Service Learning (SL), where through this approach business groups are invited to not only understand the theory of using science and technology in their business activities theoretically, but also to apply this knowledge practically. The results obtained are Based on the survey conducted, there was a positive response from the participants in the community service activities which was seen from the average of the three aspects in the survey results which were classified as very high above four. There were no significant obstacles during the process of implementing community service activities, due to good cooperation from partners and a high intention to learn from the training participants.

Green human resource management and corporate social responsibility as drivers of organizational performance: mediating effects of employee engagement and corporate reputation in Vietnam

Purpose This study aims to investigate the relationship between green human resource management (GHRM), corporate social responsibility (CSR) and organizational performance (OP) of small- and medium-sized enterprises (SMEs) by examining corporate reputation (CR) and employee engagement (EE) as mediators in Vietnam. Design/methodology/approach This study used the quantitative method with 458 valid responses from mid- to senior-level managers and chief executive officers (CEOs) were obtained and used for data analysis. To analyze and explore the relationships between constructs and mediators, SmartPLS version 4.0 structural equation modeling was used to analyze the data of the SMEs of Vietnam in 2023. Findings The results showed strong and positive relationships between GHRM, CSR and OP in SMEs, with CR and EE serving as significant mediators. Originality/value This research provides new insights into how GHRM and CSR enhance OP by using an integrated model that examines how CR and EE mediate this relationship. It demonstrates that businesses implementing GHRM and CSR can promote sustainable development among stakeholders, leading to improved OP in Vietnam’s dynamic economic environment. The findings have practical implications for executives and managers, emphasizing the need to balance stakeholder, environmental and social interests to optimize GHRM and CSR initiatives and foster sustainable growth. This study’s insights could significantly influence SMEs in the Vietnamese economy.

DIGITAL TRANSFORMATION: IS THERE ANY LINK WITH MARKET PERFORMANCE OF PHARMACEUTICAL MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES IN KENYA

The business-operating environment in Kenya and especially in the City County of Nairobi has caused a large number of pharmaceutical Micro, Small, and Medium-Sized Enterprises report profit warnings and thus experience performance issues. Data from the World Bank for the previous two years indicate pharmaceutical MSMEs operating in Kenya have seen a decline in profits and stagnation. The study therefore sought to establish the effect of digital transformation elements, including e-procurement, e-marketing, e-payment, and telemedicine, on the market performance of pharmaceutical Micro, Small, and Medium Enterprises (MSMEs) in Nairobi City County, Kenya. The research examines the limited understanding of how these digital technologies influence market performance, particularly in the pharmaceutical MSME sector. The study employs a cross-sectional descriptive research design, surveying 122 MSMEs from an initial target population of 175, selected through proportionate and simple random sampling. The questionnaire was tested for validity and reliability using Cronbach's alpha with a threshold of 0.7. Quantitative data were analyzed through multiple regression and correlation analysis to determine the strength of the relationships between variables. The results reveal that e-procurement, e-marketing, e-payment, and telemedicine significantly and positively affect market performance. The findings suggest that these digital strategies enhance procurement efficiency, marketing outreach, financial transactions, and healthcare service delivery, ultimately improving the market performance of pharmaceutical MSMEs.

The Nexus of Crowdfunding and e-Wakaf to Islamic Fintech in Indonesia in the Era of Industrial Revolution 5.0

This study analyses the contribution of digitalisation in Islamic finance through the application of Islamic crowdfunding and e-wakaf instruments in supporting the development of Islamic fintech in Indonesia, especially in the era of the Industrial Revolution 5.0. Digitalisation in the Islamic finance sector plays a strategic role in expanding access to financial inclusion and facilitating more effective community involvement in sharia-based economic activities. Using the Robust Least Squares (RLS) method, this study utilises secondary data for the period 2018 to 2023 to evaluate the impact of Islamic crowdfunding and e-wakaf on the growth of Islamic fintech. The results show that Islamic crowdfunding significantly expands access to alternative funding, especially for small and medium enterprises (SMEs), while e-wakaf improves transparency and efficiency of waqf asset management through digital technology. These two instruments simultaneously contribute positively to the strengthening of the Islamic fintech ecosystem in Indonesia, creating a strong foundation for broader and sustainable financial inclusion. The findings provide important perspectives for the development of innovative policies and strategies in advancing the Islamic financial sector in the digital era.

Refueling intellectual capital toward innovation performance of SMEs in Saudi Arabia: mediating the role of entrepreneurial opportunity recognition

PurposeThe objectives of this research were to inspect the relationship of intellectual capital (IC), along with its dimensions (human, structural and internal and external relational capital) with innovation performance (IP), to explore entrepreneurial opportunity recognition (EOR) as a mediator between the IC and IP of small and medium-sized enterprises (SMEs) in Saudi Arabia.Design/methodology/approachThis research used data collected via a well-structured questionnaire. The sample size was comprised of 457 participants who were owners and/or managers of SMEs in Saudi Arabia. Further, the findings were extracted from data using partial least squares (PLS) techniques.FindingsThe results indicated that all dimensions of IC, including human capital (HC), structural capital (SC), internal relational capital (IRC) and external relational capital (ERC), had a significant relation with both IP and EOR. It was also shown that EOR positively influenced IP. Furthermore, the results showed that EOR played an important role as a mediator between IC (HC, SC, IRC and ERC) and IP.Practical implicationsThe present research offered a beneficial and novel managerial and theoretical strategy for improving a given firm’s IP with the support of IC and EOR. This finding offered a vision to the management teams of SMEs for full utilization of IC and IP. The present study also provided policymakers, administration and future studies with a path to improving the production and services of SMEs to secure market advantages.Originality/valueAccording to the author’s best knowledge, the present research represented the first attempt to expose the mediating role of the EOR relationship between IC and IP. Furthermore, the present study also developed the relationship between dynamic capabilities (DC) theory, intellectual capital-based view (ICV) theory and resource-based view (RBV) theory, with variables that reveal the theoretical foundation of the study. Finally, the results of this study were verified by the existing literature.

State and trends in the development of the microfinance market in Russia

The relevance of the article is due to the insignificant contribution of microfinance to the development of the Russian economic system, especially in the context of supporting small and medium-sized businesses. However, the regulator sees it as a promising sector of the financial market and considers its progressive development necessary. The purpose of the work is to study the current state and identify trends in the development of the microfinance market in Russia. The methodological basis of the study includes empirical observation and analysis. During the work, official statistical data and scientific publications on the topic of microfinance have been used. The article provides a review of current legislative documents regulating the microfinance sector, and analyses the state of the market based on statistical data. It is substantiated that some elements of the monetary and financial policies pursued in the Russian Federation can be applied for the successful development of the microfinance sector, contribute to its effective and balanced work, and improve accessibility and sustainability. In the course of the work, key directions for the development of the microfinance market are formed: improving regulation and supervision; promoting financial literacy of the population; application of digital technologies; expansion and diversification of the product portfolio, development of partnerships, social entrepreneurship, which contribute to the sustainable development of this segment of the financial market. Particular attention is paid to a detailed analysis of improving the regulatory framework for microfinance in Russia from the point of view of legislation on bankruptcy of individuals, stimulating innovation and digitalisation, and supporting social entrepreneurship.

Analysis of the Role of Digital Marketing in the Development of Micro, Small and Medium Enterprises (MSMEs) in Cibinong District

This study aims to analyze the role of digital development marketing in supporting the growth of Micro, Small, and Medium Enterprises (MSMEs) in Cibinong District. Along with the increasing internet penetration and use of social media, digital marketing has become a strategic tool to increase market reach and competitiveness of MSMEs. The research method used is descriptive qualitative, with data collection through interviews, observations, and literature studies. The results of the study indicate that MSMEs that implement digital marketing are able to increase sales, expand market share, and strengthen product branding. However, there are still obstacles in the form of a lack of digital knowledge and access to technology, especially among micro-scale MSMEs. Therefore, support is needed from the government and related institutions to improve digital literacy and provide infrastructure that supports the development of digital marketing in this region. Overall, the role of digital marketing for MSMEs in Cibinong District is very significant in increasing competitiveness, efficiency, and market reach. However, to maximize this potential, collaborative efforts are needed between MSME actors, the government, and technology service providers so that existing challenges can be overcome properly. This study is expected to be a reference for the development of effective digital marketing strategies for MSMEs in Cibinong District.

Barriers and enablers of life cycle assessment in small and medium enterprises: a systematic review

AbstractBusinesses are facing increasing pressure from multiple stakeholders to integrate sustainability into their practices and business models. Although Small and Medium-sized Enterprises (SMEs) represent at least 90% of businesses worldwide and contribute approximately 60% of environmental impacts, assessing and improving their sustainability performance is not a priority for them. SMEs can address sustainability issues through the application of the different Life Cycle Assessment (LCA) approaches. LCA focuses solely on the environment; however, other forms, such as social, costing, sustainability, and organizational LCA, enable practitioners to assess impacts across the entire life cycle of the studied system, each with different scopes and approaches. However, LCA remains in the domain of large companies. This article aims to identify the main barriers and enablers of LCA in SMEs for wider use as a tool to improve sustainability performance. Through a systematic review of the scientific literature on LCA among SMEs applying the Standardized Technique for Assessing and Reporting Reviews of LCA data, a sample of 61 articles provides a 20-year history. Our results characterize the application of LCA in SMEs through six main aspects. Our main conclusions identify three main barriers to the application of LCA among SMEs: lack of trained personnel, lack of data, and high costs. To overcome these barriers, we found that narrowing down the scope using simplified methods in clusters can increase the use of LCA among SMEs. A simplified SME cluster-elaborated LCA can be used to qualitatively identify sustainability hotspots, develop suitable strategies to improve sustainability performance, and respond to market requests.

SMEs internationalization by grafting knowledge. Unveiling the enabling mechanisms of strategic knowledge management

ABSTRACT International knowledge plays a crucial role for firms willing to internationalize. Small and medium-sized enterprises (SMEs) often try to graft it from external sources, such as advisers, consultants, etc. Among them, Temporary Export Managers (TEMs) are becoming a viable solution among SMEs to access readily available international experience at a relatively low cost. However, it is unclear how SMEs graft knowledge from TEMs and how SME-TEM interactions translate into impacts on the firm’s internationalization strategy. To address this gap, we examined 20 cases of the TEM-SME collaboration, conducting 48 semi-structured interviews in Italy. The results show that three main knowledge mechanisms are activated through TEM-SME interactions: mobilization, integration, and recombination. A grounded interpretative framework is proposed to show how these mechanisms affect strategic international knowledge, encompassing differentiated-to-differentiated, differentiated-to-integrated, and integrated-to-integrated knowledge trajectories. The study offers insights to both TEMs and SMEs to enhance knowledge grafting processes to impact SMEs’ international development.

The Mundane Art of Cybersecurity: Living with Insecure IT in Danish Small- and Medium-Sized Enterprises

Small- and medium-sized enterprises (SMEs) are an essential part of the global economy and paramount to local communities and employment markets. They are also considered to be particularly vulnerable to cyberattacks as they lack technical competencies, strict controls, and organizational routines. We present the results of an ethnographic study of 30 SMEs in Denmark to further our understanding of how companies in this segment handle cybersecurity in their daily practices. We suggest that cybersecurity is dealt with as a mundane art: instead of striving for solutions, SMEs must leave things undone, endure partially broken systems, and resort to making things slightly better or worse but never good. In line with CSCW scholarship on care in broken worlds, we emphasize the various tactics of living with insecure technologies. In a broken world, securing is often not about assurance or following rules but about handling dilemmas, breaking things a little but not a lot, or waiting things out.

Circular economy adoption in MSMEs: unveiling enablers and barriers

Purpose The study aims to explore the enablers and barriers to the adoption of circular economy (CE) practices in micro, small and medium enterprises (MSMEs) and examine how these factors differ between developed and developing countries. Design/methodology/approach The research uses a systematic literature review (SLR) methodology to identify key enablers and barriers to CE adoption in MSMEs. The SLR process involved a detailed search and analysis of relevant academic articles from the Scopus and Web of Science databases, following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines to ensure transparency. Findings The study identifies 19 enablers and 16 barriers to CE adoption in MSMEs. Technological upgrades are the key factor helping MSMEs successfully implement CE practices, while financial constraints are the main challenge they face, according to studies from both developed and developing countries. Originality/value This research contributes to the existing body of literature by not only identifying the primary factors that either support or impede the implementation of CE by MSMEs but also by classifying them according to developed and developing countries to provide policymakers and MSME stakeholders with valuable insights on enhancing the implementation of CE in both countries by taking into account the particular barriers and enablers faced by each group individually.

Driving Small and medium-sized enterprise Performance Through Product Innovation: The Roles of Strategic Orientation, Market Power, and Organizational Collaboration

Small and medium-sized enterprises (SMEs) are essential contributors to economic growth and development. However, they often face significant challenges in maintaining competitiveness and achieving sustained growth, particularly in the current era of rapid technological advancements, globalization, and evolving market dynamics. This study aims to investigate the critical factors that drive product innovation and their subsequent impact on the performance of SMEs. A quantitative research approach was employed in this study. Data were collected through a survey administered to 69 Sasirangan Cloth SMEs in Banjarmasin, Indonesia. These SMEs are engaged in the traditional textile craft of Sasirangan cloth, which holds cultural significance in the region. Structural equation modeling (SEM) with partial least squares (PLS) was utilized to analyze the collected data. The findings of the data analysis reveal that strategic orientation, market power, and organizational collaboration have a positive and statistically significant impact on product innovation. This suggests that SMEs that adopt a market-oriented, entrepreneurial, and technology-oriented strategic approach, combined with efforts to develop market power and engage in collaborative relationships with other organizations, are more likely to foster product innovation. Furthermore, the study finds that product innovation plays a mediating role in the relationship between these factors and company performance, indicating that product innovation is a key mechanism through which strategic orientation, market power, and organizational collaboration contribute to enhancing SME performance. In conclusion, this study underscores the pivotal role of product innovation in driving SME performance. By developing and introducing new products or significantly improving existing ones, SMEs can differentiate themselves from competitors, attract new customers, and enhance their overall competitiveness.

E-Business Online Experience, Satisfaction and Trust: Basis for Customer Loyalty among Selected SMEs in Bulacan

This research paper investigates the relationship between e-business online experience, satisfaction, and trust as predictors of customer loyalty among small and medium enterprises (SMEs) in a selected area of Bulacan. Considering the increasing reliance on digital platforms for e-commerce, issues surrounding online security and user privacy have arisen, raising concerns about consumer trust in e-business environments. Employing a quantitative research methodology, the study utilizes a quantitative descriptive and correlational design to measure and identify the mean and standard deviation of online experience, satisfaction, and trust as independent variables, with customer loyalty as the dependent variable. The findings reveal that SMEs in Bulacan have a strongly positive perception of their e-business online experience, particularly highlighting the simplicity, visual appeal, and effectiveness of the websites they use. They appreciate the quality of information provided by these e-business platforms, which facilitates e-purchases through up-to-date content and straightforward transactions. The study also indicates a strong agreement among SMEs regarding the effectiveness of e-business websites in meeting consumer expectations for repeat purchases, while also identifying areas for improvement in online performance features. Moreover, SMEs generally perceive a high level of security regarding e-business platforms, particularly regarding information transmission and electronic payment safety. However, there was a slightly lower perception of user privacy concerns. The regression analysis indicates that both e-business online experience and customer satisfaction are significant predictors of customer loyalty, underscoring the importance of enhancing these aspects to cultivate lasting customer relationships.

Open-Source Enterprise Resource Planning Systems for Small and Medium Enterprises: A Conceptual Framework

The growing importance of information management in the digital economy has exerted considerable pressure on small and medium enterprises (SMEs) to implement advanced innovations in technology. Nonetheless, the high costs and intricacy of conventional Enterprise Resource Planning (ERP) systems have constrained their uptake among SMEs. This conceptual study examines the feasibility of Open-Source ERP (OS-ERP) systems as a practical option for Malaysian SMEs, offering a conceptual framework that connects information management capabilities, entrepreneurial orientation (EO), and enterprise success. The article contends that OS-ERP systems can augment entrepreneurial performance by enhancing information integration, strategic decision-making, and enterprise agility. This approach seeks to guide future research and offer practical insights for SMEs and policymakers to encourage digital transformation.

The effect of digitalization on sustainability reporting: The role of sustainability competence, green knowledge integration, and stakeholder pressure

AbstractThe study was designed to provide an answer to the research question regarding the effect of digitalization on sustainability reporting and to reveal the mechanisms underlying this relationship. The methodology included data collection from 371 small‐ and medium‐sized enterprises (SMEs) originating from Ghana, by using a structured questionnaire. Further on, we employed the structural equation modeling (SEM) technique to analyze the relationships among our research variables. The findings showed that the effect of digitalization on SMEs' sustainability reporting is insignificant negative while sustainability competence fully mediated the relationship. The nexus between digitalization and sustainability competence was positively moderated by green knowledge integration. Similarly, stakeholder pressure was found to positively moderate the relationship between sustainability competence and sustainability reporting. To the best of our knowledge, this is the first study to approach digitalization's impact on sustainability disclosure in the Ghanaian SMEs' sector, resulting in manifold valuable policy and managerial practice implications.