Performance Of SMEs Research Articles

Radical and incremental innovations performance in Eastern European SMEs: An empirical study of developed and emerging economies

Assessing the effectiveness of radical and incremental innovation in SMEs in Eastern European countries is a significant issue in regional economics. In contrast, radical innovation entails the creation of wholly novel goods or organization processes that establish new markets. Progressive enhancements to current goods and processes are referred to as incremental innovation. This study explains the influence of incremental and radical innovation on performance of small and medium-sized enterprises in Eastern Europe. Employing EUROSTAT data from 2012 to 2021 using regression analysis and a graphical model, we examined basic, radical, and incremental innovation and total researcher performance in SMEs, which could enormously affect business performance in Eastern European countries. Our findings indicated that radical, incremental innovation and total research are all favourably related to the performance of SMEs and an approach to studying various innovations and their impact on SMEs. The particular performance effects of radical and incremental innovations in Eastern European SMEs might vary considerably. To give more specific knowledge and suggestions for SMEs, empirical investigations and comprehensive research are required. Our results can contribute to SMEs both theoretically and practically, providing fresh theoretical perspectives for scholars and helpful management consequences for administrators of SMEs in developing countries.

Driving Success: Unveiling the Synergy of E-Marketing, Sustainability, and Technology Orientation in Online SME

In Romania, the pandemic and post-pandemic effects, coupled with the nearly 80% increase in internet service penetration, have led to an extraordinary acceleration of e-commerce activity. Rising rents and operational costs, heightened financial challenges, and the improved quality and accessibility of internet connectivity have prompted some Romanian SMEs to sell their products and services online or through other online communication networks. In this context, it becomes essential to conduct marketing research to identify factors that could stimulate business performance. The purpose of this study is to assess the impact of e-marketing orientation, sustainability orientation, and technology orientation on the performance of online SMEs in Romania. Hypothesis testing and validation of the proposed construct model were conducted using structural equation modeling with partial least squares (SEM-PLS) and multi-group analysis (PLS-MGA). The research results have indicated that all three independent variables have positive and significant effects on online SMEs’ business performance. Finally, the study suggests that SME managers should focus on integrating these three variables and on selling products and services both nationally and internationally through the internet if they aim for long-term business performance growth.

Implications of Contextual Ambidexterity and Digital Platform Capability on SME Performance: The Role of Absorptive Capacity as a Moderator

Implications of Contextual Ambidexterity and Digital Platform Capability on SME Performance: The Role of Absorptive Capacity as a Moderator

Work from home arrangements and organizational performance in Italian SMEs: evidence from the COVID-19 pandemic

AbstractWe use survey data on Italian small- and medium-sized enterprises collected during the COVID-19 pandemic to explore the relationship between the adoption of work from home (WFH) practices and organizational performance. In so doing, we investigate several dimensions of organizational performance, including measures of labor productivity and workers’ concentration and motivation, the level of absenteeism, the organization of work through management by objectives (MBO), and the presence of coordination and communication costs. We obtain several results. First, we find a significantly enhanced capability of firms that adopted WFH during the pandemic to sustain the overall organizational performance, particularly when such a work practice is used intensively. Less deteriorated labor productivity and workers’ concentration and motivation, decreased absenteeism, and a substantial rise in the adoption of MBO practices seem to be important aspects behind the detected benefits related to WFH. Third, when WFH is used at medium levels of intensity, it is associated with augmented coordination and communication costs, which nonetheless do not appear to overcome the benefits associated with WFH.

Green Intellectual Capital on Firm Performance Moderated by Green Business Strategy in Craftsmanship SME’s

This study shows how SME’s performance is affected by the three components of green intellectual capital (GIC), namely green human capital (GHC), green structural capital (GSC), and green relational capital (GRC), and uses the moderating role of green business strategy (GBS) to explain the relationship. Data was collected from 92 SMEs in the craft industry in the Special Region of Yogyakarta. Primary data for the study was collected from respondents through closed-ended questionnaires distributed directly (offline) and google forms (online) to test the suggested model and analyzed using structural equation modeling with Smart PLS 3. The findings show that: 1) green intellectual capital has a negative influence on SME performance; 2) the three components of GIC have a positive influence on SME performance; 3) green business strategy weakens the influence of GIC on the performance of craft SMEs in Yogyakarta Special Region

Entrepreneurship Education Structure and SMEs Performance amongst Managers in Port Harcourt Metropolis, Rivers State, Nigeria

The importance of entrepreneurial education skills in supporting countries’ economic growth and development has been recognized by experts in the field of accounting, finance, sociology and economics. Today, the issue of entrepreneurship skills is becoming so increasingly important that it has turned into a priority for developing countries including Nigeria. This study empirically explores the relationship between entrepreneurship education skills and venture performance amongst managers of small and medium scale firm in Port Harcourt metropolis. Descriptive survey design was adopted and correctly completed 400 sets of questionnaire were used. Series of statistical analysis were applied including mean, aggregate mean, standard deviation, and Spearman rank correlation with the aid of statistical package for social sciences, version 25. The empirical results indicate that psychomotor education significantly relates to profitability and market share. We therefore conclude that entrepreneurship education structure relates to small and medium enterprises performance amongst managers in Port Harcourt Metropolis, Rivers State, Nigeria, and recommend that policy makers should consider introducing entrepreneurship in primary and secondary schools through integration to other subjects or as a stand-alone subject. This could function as an introductory stage which will prepare students for more advanced entrepreneurship education structure in the small. Policy makers should also create conducive entrepreneurship education centers within the business eco-system to enable traders attend free workshops when scheduled. Traders can be pre-informed about the benefits of attending/participating in business workshops through social media before slating any.

Impact of Digital Marketing And Intellectual Capital On Business Performance (Case Study Of SMEs In Depok City, West Java)

This study explores the impact of digital marketing and intellectual capital on the business performance of SMEs in Depok City. Using a quantitative approach, this research analyzes data obtained from 100 respondents through online questionnaires. The results of multiple linear regression analysis indicate that both digital marketing and intellectual capital have a significant influence on business performance. Digital marketing, measured through variables such as interactivity, site design, cost/transaction, and incentive programs, has been proven to increase customer engagement and online transaction volumes. On the other hand, intellectual capital, consisting of human capital, structural capital, and relational capital, plays a crucial role in enhancing the operational efficiency and profitability of companies. Business performance measurements in this study include profitability, operational efficiency, and customer satisfaction. The coefficient of determination (R²) value of 77.2% indicates that the digital marketing and intellectual capital variables together explain most of the variability in business performance. These findings are consistent with previous studies showing that the use of digital technology in marketing and the management of intellectual capital can enhance a company's competitiveness and overall performance. Thus, this research makes a significant contribution to the literature on digital marketing and intellectual capital management, offering practical insights for business practitioners to improve their marketing strategies and intangible asset management.

Transformative Work Behavior: Development and Validation of a Measurement Scale

The Transformative Work Behavior (TWB) concept is able to build optimal SME performance in a dynamic business environment, especially post-pandemic, through a strategic human resource and socio-emotional approach. Reflecting the important role of leadership in forming an innovative and adaptive work culture, which is one of the keys to the long-term success of an organization amidst market dynamics and an ever-changing environment. This paper aims to develop, validate and measure the variable mechanism of Transformative Work Behavior (TWB) as a concept scientific novelty. This research uses transformative learning theory, organizational knowledge creation theory, leadership theory, open innovation, social exchange theory as the basis for forming the novelty variable. The population in this study were digital creative MSMEs, questionnaires were given randomly, using non-probability sampling. Meanwhile, the sample size using the 10 times rule method is 280 samples. The analysis method used uses the SEM method. This paper is a concept development, validation and explanation of the mechanism for measuring the novel variable of transformative work behavior which has never been studied before.

Effect of Urbanization on the Performance SMES in Anambra State Nigeria

This work evaluated the effect of urbanization on the performance SMEs in Anambra State Nigeria. Specifically the study investigated the effect of infrastructural services on performance of SMEs, social amenities on the performance of SMEs and the effect of technological development and performance of SMEs in Anambra State, Nigeria. Relevant conceptual, theoretical and empirical literatures were reviewed. The study was anchored on Self-Generated or Endogenous Urbanization Theory. This study adopted survey design. Infrastructural services, social amenities and technological development were employed as the independent variables while performance of SMEs was employed as the dependent variable. The population is unknown, as such the sample size of the study was determined with the aid of Topman’s non-parametric sample size determination formula, applied when the population frame is unknown. A sample size of 368 respondents. The data generated were analyzed using descriptive statistics, correlation analysis and multiple regression analysis. The study found that infrastructural facilities has a significant effect on the performance of SMEs; Social amenities has a significant effect on the performance and technological development has a significant effect on the performance of SMEs in Anambra State, Nigeria. The study concludes that urbanization had a significant effect on the performance of SMEs in Anambra State, Nigeria. The study recommended that government should provide availability of Infrastructural facilities in rural areas will decrease the rural – urban migration of the people that will increase on the performance of SMEs. Government in collaboration with private sector could make and implement programme for rural upliftement such as social amenities programmes, housing loans, electricity, water supply etc. So that they will not have interest to migrate to urban areas. Small business owners should stay current on technological development and try to influence government decision-making and policy on urbanization.

THE IMPORTANCE EMPLOYEE ENGAGEMENT IN MEDIATING PERCEIVED ORGANIZATIONAL SUPPORT ON JOB PERFORMANCE

Employee engagement mediates work performance and perceived organisational support in this study. This study examines how perceived organisational support affects job performance, employee engagement, and job performance in shoe SMEs in East Java, as well as whether employee engagement mediates the relationship between the two. Partial Least Squares regression using SmartPLS version 3.0 showed that perceived organisational support directly affected job performance. This suggests that organisational effectiveness improves with perceived support. Employee involvement indirectly impacts job performance. However, the indirect effect is still smaller than the direct effect of perceived organisational support on job performance, indicating that employee engagement owned by company employees cannot mediate the relationship. To boost employee performance, an organisation must increase perceived organisational support. To test model mediation, review employee involvement. Assessing employee performance and organisational support requires further assessments. Employee engagement can be influenced by internal and external influences, unlike many researches.

The Role of Entrepreneurial Orientation in Small Medium Enterprises Performance in Lagos, Nigeria

This study examines the role of entrepreneurial orientation on the performance of Small and Medium Enterprises (SMEs) in Nigeria. The objective was to determine the effect of innovativeness, risk-taking, proactiveness, autonomy and competitive aggressiveness on the performance of SMEs in Nigeria. Using a 21-item questionnaire with a 5-point Likert scale, the authors collected data on entrepreneurial orientation and SMES Performance. Taro Yamani Formula determined the sample size of 222 SME owners, Managers and Workers. Collected data was analysed with the use of a frequency distribution table, and simple percentages and the hypotheses were tested with Chi-Square statistical formula. The study revealed that innovativeness, risk-taking, proactiveness and competitive aggressiveness enhance the performance of SMEs. The practice of autonomy does not enhance SMEs' performance. The research suggests that SME owners and managers should be creative and innovative to adapt to external changes and customer needs. They should take calculated risks, invest in new products and services, conduct competitor analysis, and encourage employee initiatives.

Evaluation of Firms Supports Policies

Purpose: This study evaluates, analyzes, and measures support policy for small and medium enterprises in Hanoi to propose some recommendations to help small and medium enterprises improve business performance and expand scale. Theoretical Framework: In terms of scale, among the SMEs operating in the area, SMEs in the non-state sector account for the largest proportion, estimated at about 97.2%. This shows that SMEs in the non-state sector contribute an important part to Hanoi's economy. The average production and business capital of non-state-owned SMEs increased by 10.2%. This may represent the development and performance enhancement of firms in this area. Method/Design/Approach: A survey was conducted with the participation of 210 employees of SMEs in Hanoi, including the board of directors and sales department heads. Analytical methods such as descriptive statistics, independent t-tests, and ANOVA analyses are used to test and measure the scales. Results and Conclusion: Research results show that support policies for small and medium enterprises in Hanoi are highly appreciated. There is no statistically significant difference in the support policy for small and medium enterprises in Hanoi between these different genders, ages, job positions, business operating times, and business sectors. Research Implications: This research uses the contents of the support policy for small and medium enterprises in Hanoi and the business performance of SMEs in Hanoi based on prior studies in the realm of firms. Within the context of the digital transformation of the entire society and industrial revolution 4.0, these variables are useful solutions for SMEs. Originality/Value: This study uses a new research methodology to evaluate and measure the support policy for small and medium enterprises in Hanoi. The paper's primary contribution is findings that benefit the SMEs in Hanoi in the improvement of their scale expansion and business performance.

Hybrid ConvLSTM Model for Evaluating the Performance of SMEs in The Software Sector

Hybrid ConvLSTM Model for Evaluating the Performance of SMEs in The Software Sector

Evaluating the relationship between entrepreneurial ecosystem, resilience and SME performance in post-pandemic period

PurposeThe literature on entrepreneurship implicitly suggests that developed nations' entrepreneurial ecosystems (EE) are positively related to small and medium enterprise performance. However, few theoretical and empirical studies explicitly investigate this relationship in emerging economies. Also, earlier studies have concentrated on the EE–SME performance association in a stable environment without any uncertainties. Hence, the current study analyses the relationship between EE and SME performance in an emerging economy. Entrepreneurial resilience (ER) has been introduced (mediator) to understand the EE–SME performance relationship in the post-pandemic period.Design/methodology/approachThe research sample comprises 359 Indian SMEs. The owners/managers of each SME were contacted to obtain responses. The research employs a multifaceted method Partial Least Squares-structural equation modelling that permits the investigation of several concurrent associations for data analysis.FindingsThe findings reveal that EE significantly impacts ER and SME performance. Additionally, ER partially mediates the relationship between EE and SME performance. The findings indicate that post-pandemic India's EE positively influences SME performance directly, as well as indirectly through ER.Research limitations/implicationsThe results provide implications for policymakers from economies similar to India's. It suggests that policymakers can enhance ER and, consequently, SME performance during periods of uncertainty by focusing on developing an EE with strong institutional foundations, supportive frameworks and a culture of adaptability.Originality/valueSMEs and entrepreneurial activities in India are relatively new, but they are rising rapidly. This investigation adds to our knowledge of EE and allows us to comprehend its components in developing countries. This article contributes to the knowledge of India’s SME performance from an EE and ER perspective in the post-pandemic scenario.

Strategic information planning and performance of SMEs: A structural equation modelling approach

BACKGROUND: The business environment is getting unstable due to which execution of decision support systems has become significant to maintain competitive advantage. Small and medium enterprises in particular confront issues, such as insufficiency of devising strategic planning, strategic decision-making, and information exchange, as well as difficulty increasing performance. Because functional strategic management and decision-making are required, strategic information systems planning is employed to accumulate information and assist decision-makers in developing and implementing the best strategy for gaining superior performance. Executives in information systems focus on technical difficulties while ignoring decisions to support strategic plans. OBJECTIVE: The purpose of this article is to investigate how strategic information systems planning contributes to increased performance in SMEs. METHODS: Data was gathered through questionnaires distributed to information system executives in SMEs, primarily in Jordan. The data was collected with the help of questionnaires adopted from prior studies. For Analysis after applying the diagnostic tests, structural equation modelling has been applied to test the framework developed based on the literature. RESULTS: A structural equation modeling (SEM) was conducted, the individual loadings of the SEM items are investigated, reliability and discriminant validity is tested, and path coefficients of hypothesized relationships of the developed model are tested. CONCLUSIONS: The findings suggested that managers should prioritize implementing strategic information systems planning so that they can gain superior performance with better agility in the future. This research not only enhances the current understanding of the significance of strategic information systems planning but also assists supervisors to improve the procedure.

Innovative marketing and sales promotion: catalysts or inhibitors of SME performance in Ghana

Innovative marketing and sales promotion: catalysts or inhibitors of SME performance in Ghana

The Impact of E-commerce on Organizational and Financial Performance in SMEs: Evidence from Saudi Arabia

The Impact of E-commerce on Organizational and Financial Performance in SMEs: Evidence from Saudi Arabia

Impact of Innovations on SME Performance in Ho Chi Minh City (Vietnam)

This study aims to refine the broad idea of innovation by focusing on four specific types: product innovation, organizational innovation, process innovation, and R&D. These four categories will be used to measure the extent of innovation. The statistical model is used to examine the association between such innovations and business performance. The model is based on a sample size of 7,788 enterprises, with data provided by the Vietnamese General Statistics Offices. The findings validate the presence of product innovation, organizational innovation, and R&D as factors influencing SME success. Among these factors, organizational innovation has the highest influence, followed by product innovation and R&D. The causal link between process innovation and SME performance remains unestablished, as SMEs, comprising 95% or more of the market, primarily allocate their investments towards organizational innovation, product or service innovation, and R&D. This discovery serves as a valuable point of reference for both businesses and policymakers. It highlights the importance of considering potential forms of support for SMEs in order to foster innovation and achieve success.

Job Design and Employee Involvement on SMEs Performance: The Mediating Role of Employee Motivation

The study used empirical data to explore the impact of job design and employee involvement on Small and Medium-Sized Enterprises (SMEs’) performance. Data was collected from 367 employees of Ghanaian SMEs using random sampling. IBM SPSS 24 and AMOS-SEM were used for confirmatory factor analysis and to analyse the latent variables. The measurement model was tested on the entire dataset using exploratory factor analysis. The investigation demonstrated a strong fit for a four-factor hypothesis model. The study revealed a statistically significant beneficial relationship between job design and employee involvement in organisational performance. It also found a favourable correlation between job design, employee involvement and motivation. However, there was a negative correlation between employee motivation and organisational performance. The study uniquely focused on SMEs in an emerging economy like Ghana using financial sector tiers two and three. The implication is that job design and employee involvement improve SMEs’ performance and give them a competitive advantage. The study underlines the significance of job design and employee involvement in Ghanaian SMEs, mainly in the Greater Accra Region. This study is of great value as it informs policymakers and actors of small and medium enterprises of the need to appropriately design jobs that interest and elicit employee involvement and performance.

Eco-innovation and SMEs’ sustainable performance: a meta-analysis

PurposeThe study aims to build upon the Resource-based view of the firm (RBV) and Dynamic Capability Theory (DCT) to perform a meta-analysis on the eco-innovation/SMEs’ sustainable performance relationship.Design/methodology/approachEmploying a psychometric meta-analytic approach with a random-effects model, the study examines a sample of 134,841 SMEs covering 99 studies and 233 study effects. Subgroup and meta-regression analysis were used to test the study`s hypotheses in Comprehensive Meta-Analysis (CMA) statistical software.FindingsResults unveil that the average impact of eco-innovation on SMEs` sustainable performance is positively significant but moderate. Moreover, it was found that eco-process, eco-product, eco-organizational, and eco-marketing innovations positively influence SMEs’ sustainable performance, but the impact of eco-organizational innovation is the strongest. Findings further reveal that eco-innovation positively influences economic, social, and environmental performance, but its effect on social performance is the largest. Moreover, our findings reveal that contextual factors, including industry type, culture, industry intensity, global sustainable competitive index, and human development index, moderate the eco-innovation/SMEs’ sustainable performance relationship. Lastly, methodological factors, namely sampling technique, study type, and publication status, account for study-study variance.Practical implicationsOur findings imply that investing in eco-innovation is worthwhile for SMEs. Therefore, CEOs/managers of SMEs must adopt eco-innovation initiatives by establishing a sustainability vision, developing employee environmental development and training, building a stakeholder management system, and promoting employee engagement in sustainability activities.Originality/valueThe study develops a holistic conceptual framework to consolidate the distinct types of eco-innovation and their association with the sustainable performance of SMEs for the first time in this research stream, thereby resolving the anecdotal results and synthesizing the fragmented literature across culture, discipline, and contexts.