Spanish Small And Medium-sized Enterprises Research Articles

International entrepreneurship in innovative SMEs: Examining the connection between CEOs’ dynamic managerial capabilities, business model innovation and export performance

International entrepreneurship scholars aim to understand how small and medium-sized enterprises (SMEs) achieve long-term competitive advantage and international success. This paper examines how business model innovation (BMI) helps entrepreneurial and innovative SMEs in improving export performance suggesting that changes in value creation, value delivery, and value capture are required to target international customers effectively. Additionally, drawing on the dynamic managerial capabilities literature, we look at the role of CEOs’ managerial capabilities on BMI. A quantitative study using partial least squares structural equation model (PLS-SEM) was conducted on 189 innovative Spanish SMEs operating in business-to-business (B2B) international markets. Our findings provide new insights into the underexplored relationship between BMI and export performance generating new evidence regarding the mechanisms through which innovative SMEs may improve export performance. We also highlight the positive relevance of CEOs’ managerial social capital (external connectivity) and managerial cognition (empowering leadership) to foster BMI. Finally, managerial implications and future research directions are proposed.

Export manager profile in small and medium-sized enterprises: a gender issue?

ObjetivoExplorar la existencia de perfiles de gestor de exportaciones diferenciados en función del género. El estudio pretende responder a dos preguntas de investigación: (1) ¿difiere el perfil de los gestores de exportación en función del género? En caso afirmativo, (2) ¿en qué atributos directivos/rasgos se observa la diferencia y cuál es la relación entre ellos?Diseño/metodologíaAnálisis empírico cuantitativo sobre una muestra de gestores de exportación de pequeñas y medianas empresas (PYMEs) españolas.ResultadosNuestros resultados apuntan a la existencia de perfiles de gestor de exportación diferenciados por género en términos de atributos objetivos, rasgos personales, estilos de gestión y percepciones relativas a prácticas discriminatorias y estereotipos perjudiciales. Existen dos efectos sustitución en función del género: (1) experiencia profesional versus educación formal y (2) orientación empresarial versus uso de redes relacionales.OriginalidadEl género es una cuestión escasamente estudiada en la literatura sobre gestión internacional a pesar de su relevancia en el contexto institucional internacional. Este artículo aborda el aspecto del género en la gestión de exportaciones.LimitacionesNuestros datos son limitados en términos de ámbito geográfico y tamaño de las empresas; por tanto, no son generalizables sin la realización de nuevos estudios.Implicaciones prácticasNuestras conclusiones pueden ayudar a comprender la relevancia de los equipos de exportación que integran a directivos de diferente género y se benefician de la combinación de diversos atributos directivos, rasgos personales y procesos relacionales en su crecimiento internacional.

Does digitalisation enable small and medium‐sized enterprises to become more sustainable?

AbstractEnvironmental sustainability is currently of paramount importance worldwide. In this context, digitalisation has emerged as a transformative force in the business world, and small and medium‐sized enterprises (SMEs) need to adapt to sustainability and digitalisation without neglecting performance. The objective of the study is to establish the connection between the positive financial outcomes resulting from digital capabilities and the ability of SMEs to become environmentally sustainable. Additionally, a theoretical framework has been developed to explain the results from the analysis of a reflexive structural equation model using data collected from 975 Spanish SMEs. The results indicate that investing in digitalisation allows companies to become more environmentally responsible and achieve qualitative growth in terms of reputation. Furthermore, digitalisation promotes quantitative growth through improved efficiency, cost savings, enhanced product quality and increased customer satisfaction. Lastly, the study model demonstrates that profitable companies are more likely to be sustainable.

Digital transformation and firm performance in innovative SMEs: The mediating role of business model innovation

This study investigates the consequences of digital transformation (DT) over performance in the case of innovative Small and Medium-sized Enterprises (SMEs). SMEs represent a heterogeneous kind of company in terms of capabilities. By focusing on their innovative character as a boundary condition, we increase our understanding of this relationship. We further research the mediating role of business model innovation (BMI) in the relationship between DT and performance. A sample of 434 innovative Spanish SMEs is used to test the research model through Partial Least Squares Structural Equation Modelling (PLS-SEM). We find that BMI partially mediates the positive relationship between DT and performance. This finding extends our understanding of BMI as an alignment tool and a blueprint for innovative SMEs channeling their investments in DT towards the improvement of performance. Finally, we put forward managerial implications and propose future avenues of research.

Digital transformation in SMEs: Understanding its determinants and size heterogeneity

Digital transformation plays a vital role in the success of firms, especially for small and medium-sized enterprises (SMEs). The business landscape is becoming more challenging for small businesses and they must navigate this complexity by adopting digitalization. However, many of them fail in this process. Our study aims to understand the main determinants of digital transformation, and the effect of size heterogeneity within SMEs. To this end, we apply the resource-based view, the technology-organization-environment framework and the technology acceptance model to a statistically representative sample of Spanish SMEs. We show that the manager's academic background, internationalization and firm size have a positive impact on digital adoption. Knowledge resulting from professionalization and an international context plays a critical role in overcoming SMEs' limitations and achieving digital transformation. Moreover, the positive effect of size is moderated by the levels of managerial education and internationalization. We go beyond the comparison between SMEs and large companies, by providing evidence about size heterogeneity within SMEs. Our findings provide valuable guidance for SMEs' digital transformation journeys, encouraging managers to embrace new knowledge and capabilities. Additionally, SME growth can facilitate digital transformation. Policymakers should develop programs aimed at promoting SME professionalization and international expansion.

Learning from different types of failure: evidence from non-severe and severe work accidents in SMEs

AbstractThis paper investigates the learning patterns of small and medium-sized enterprises (SMEs) from heterogeneous work accidents (i.e., minor and severe and fatal accidents). Work safety cannot be overlooked, and the focus of this study on learning from failure allows to understand how SMEs match safety problems with solutions generated by past experience with work accidents and knowledge acquisition; while acknowledging that accident heterogeneity influences SMEs’ learning. The analysis uses a sample of 108 Spanish SMEs during 2006–2009. The results show that SMEs learn to modify safety practices, and that experience with both minor and severe and fatal accidents impact learning outcomes—measured as changes in the unit accident cost—through different mechanisms. Cumulative experience with past work accidents supports exploitative learning, but this effect was found only for minor accidents. Although the adoption of safety-enhancing tools (i.e., OHSAS 18001) does not affect learning, the findings reveal the value of ambidextrous learning: SMEs adopting the OHSAS 18001 learn more from severe and fatal accidents than from minor accidents by triggering drastic modifications in their safety practices.

Learning to be entrepreneurial: Do family firms gain more from female leadership than nonfamily firms?

AbstractResearch SummaryWe integrate social learning theory with gender role congruity theory to propose that family firms gain more from female leadership than nonfamily firms due to the congruence of female communal values with those of a family business. Results of our empirical study, based on a sample of 322 Spanish small‐ and medium‐sized enterprises (SMEs), show that while all three dimensions of learning orientation (commitment to learning, shared vision, and open‐mindedness) are positively related to an entrepreneurial orientation, significant differences exist based on the CEO's gender and whether the SME is a family or nonfamily firm. Strongest differences were found between female‐led family and nonfamily SMEs whereby the entrepreneurial orientation of female‐led family SMEs benefited significantly more from their firm's commitment to learning and open‐mindedness.Managerial SummaryTo cultivate entrepreneurship, a small‐ and medium‐sized enterprise (SME) leader must create an organization that fosters learning. Yet, surprisingly, we know little about male and female leaders' ability to translate their SME's learning into entrepreneurship. Our study reveals that in comparison to nonfamily firms, family firms offer an environment that is more conducive to supporting women leaders, which allows their female leaders to direct their SME's learning more effectively toward entrepreneurship. However, while female‐led family SMEs were as effective as male‐led family‐ and nonfamily‐led SMEs in directing learning toward entrepreneurship, female‐led nonfamily SMEs struggled. Our study therefore suggests that while women have an advantage leading family SMEs, gender biases hamper female leaders' ability to transform learning into greater entrepreneurial orientation in nonfamily SMEs.

How knowledge-based dynamic capabilities relate to firm performance: the mediating role of entrepreneurial orientation

To examine how knowledge-based dynamic capabilities relate to firm performance through the mediating role of entrepreneurial orientation, we analyzed data of a sample of 1047 Portuguese and Spanish small and medium-sized enterprises (SMEs) of all industry sectors. The results reveal that knowledge-based dynamic capabilities are associated with firm performance and that the relationship is partially mediated by a firm’s entrepreneurial orientation. This mediation could be explained by the fact that an entrepreneurial orientation to identify and utilize new opportunities is integral to knowledge value creation and extraction, and to avoid pervasive rigidities. Our study sheds light on the mechanisms through which knowledge-based dynamic capabilities are associated with firm performance and helps to explain performance differences among firms. In addition, we provide management insight on how firms can deploy their knowledge-based dynamic capabilities and extract value from them to face change and promote their entrepreneurial orientation and performance.

Influence of Economic Policy Uncertainty on Tourism SME Performance: The Spanish Case

ABSTRACT This paper studies the influence of Economic Policy Uncertainty (EPU) on the performance of small and medium-sized enterprises (SMEs) involved in the Spanish Tourism Sector and analyzes the role that company characteristics can play in this relationship. To achieve this objective, a sample of 5,529 Spanish tourism SMEs has been taken from 2012 to 2020. Applying panel data analysis, it is found that increases in EPU are associated with lower business performance in these companies. Results suggest that SMEs should increase their size, be more flexible and achieve an appropriate balance between indebtedness and liquidity to be more resilient to EPU. The findings present relevant implications for the managers of Spanish tourism SMEs and for economic policymakers.

Digitalization and trade participation of SMEs

This study examines the impact of digitalization on the participation of small and medium-sized enterprises (SMEs) in export and import activities. Using data on Spanish manufacturing SMEs from 2001 to 2014, we construct a multidimensional firm-level index of digitalization. We then estimate a set of dynamic models analyzing the direct and indirect (via total factor productivity) effects of digitalization on firms’ export and import strategies. We find evidence that firms’ digitalization positively influences the probability of exporting and importing, both directly and through productivity. We find that productivity has a stronger impact on SMEs’ trade behavior than the direct channel of digitalization. A one standard deviation increase in the digitalization index increases the probability of exporting and importing by 1.5 and 0.8 percentage points, respectively, while the same increase in the logarithm of productivity has a three times greater effect for exporting and nine times greater for importing.

Do small- and medium-sized companies intend to use the Metaverse as part of their strategy? A behavioral intention analysis

PurposeThe purpose of the research is to analyze the factors that determine the intention of small- and medium-sized enterprises (SMEs) to adopt the Metaverse. For this purpose, the analysis of the effort expectancy and performance expectancy of the constructs in relation to business satisfaction is proposed.Design/methodology/approachThe analysis was performed on a sample of 182 Spanish SMEs in the technology sector, using a PLS-SEM approach for development. For the confirmation of the model and its results, an analysis with PLSpredict was performed, obtaining a high predictive capacity of the model.FindingsAfter the analysis of the model proposed in this research, it is recorded that the valuation of the effort to be made and the possible performance expected by the companies does not directly determine the intention to use immersive technology in their strategic behavior. Instead, the results obtained indicate that business satisfaction will involve obtaining information, reducing uncertainty and analyzing the competition necessary for approaching this new virtual environment.Originality/valueThe study represents one of the first approaches to the intention of business behavior in the development of performance strategies within Metaverse systems. So far, the literature has approached immersive systems from perspectives close to consumer behavior, but the study of strategic business behavior has been left aside due to the high degree of experimentalism of this field of study and its scientific approach. The present study aims to contribute to the knowledge of the factors involved in the intention to use the Metaverse by SMEs interested in this field.

Managerial concentration, ownership concentration, and firm value: Evidence from Spanish SMEs

Various corporate governance theories indicate that governance in small and medium-sized enterprises (SMEs) differs to that of larger corporations due to the ownership-management function within the organizational structure. This article provides empirical evidence of enhanced firm value in a sample of listed SMEs resulting from certain corporate governance mechanisms related to managerial and ownership concentration. The empirical analysis conducted in this paper is based on a panel data set consisting of 108 small and medium-sized public firms on the Spanish alternative stock exchange over a time frame of five years (2015-2019). The results suggest that CEO duality, the controlling shareholders, and the second largest shareholders all improve firm value. Conversely, the ratio of independent directors has a negative impact on firm value. These findings are robust to alternative model specifications such as dynamic panel estimators (Generalized Method of Moments -GMM-) and instrumental variable methods. Overall, we show that the governance configuration of listed SMEs can mitigate several of the central issues, such as agency problems, that large corporations face.

Seizing opportunities in Europe: a roadmap for efficient big data implementation in Spanish SMEs

PurposeThis paper aims to help small- and medium-sized enterprises (SMEs) to seize the potential of Big Data in their marketing strategies to leverage a competitive advantage in the rising digital marketplace and lead the post-pandemic economic recovery. However, Spanish SMEs have had serious difficulties in working with Big Data.Design/methodology/approachIn this study, a roadmap is designed to pave the way for a successful Big Data implementation.FindingsSMEs with updated information on how to access the historic funding opportunities might profit to this opportunity. It not only generates financing opportunities for SMEs but also grants continuity to their strategies by offering the most profitable techniques by which they can efficiently analyse data and gain consumer insights, thus overcoming the many problems they face when working with Big Data as well as helping them to monetise their marketing strategies.Originality/valueThe main advantage of this research is its innovative approach to business strategy as it provides. The value added by this paper lies in its holistic and updated approach to supporting SMEs’ Big Data strategies.

Towards the Tyrell corporation? Digitisation, firm-size and productivity divergence in Spain

Digitisation has raised concerns about how it can transform the growth of productivity in firms and its divergence around the world. Given that literature has focused mainly on confirming firm productivity gaps, research on the explanatory role of digital-based complementarities in productivity gaps has been scarce. This work aims to provide evidence on the digital divide and its causes in small and medium-sized enterprises (SME) and in large firms. Using a sample of 5,840 Spanish SMEs and large firms during the 1991–2016 period, results reflect a growing divergence in total factor productivity, both for SMEs and for large firms. Moreover, they also show that the productivity gap becomes more evident when firms develop digital-based complementarities, particularly those derived from ICT investment, R&D activities and product innovation. Firm strategies and policy implications of the results obtained are also discussed.

The influence of family firm image on access to financial resources in family SMEs: a signaling theory perspective

This study investigates whether a projected family firm image can affect access to financial resources, which is key to providing broader strategic options and meeting short-term financial needs, especially for small and medium-sized enterprises (SMEs). Building on the signaling literature, we consider the family SME leaders’ perspective and conceptually and empirically examine whether they believe a projected family firm image acts as a credible signal to the lender. We also examine additional boundary conditions influencing the family SME’s projected image–access to financial resources relationship, by specifically investigating whether firm age and size alter the degree of the signaling effect. Our unique data on 289 Spanish family SMEs reveal that projected family firm image can act as an attractive signal to lenders, leading to better access to financial resources for SMEs. Furthermore, firm size reinforces the role of the projected family firm image as a positive signal. These findings address an important practical issue in terms of family firm stakeholder perceptions, offering contributions to the corporate branding, family business, and financing literature.

Exploring the Intensity of Relationships with Vocational Education Centres: A Typology of Spanish SMEs

Even though the availability of skilled labour and technological know-how is critical to the sustainability of small and medium-sized enterprises (SMEs), the relationships between industry and the vocational education system have received little attention in the recent literature regarding social aspects of innovation. The objective of this paper is to analyse the intensity of relationships between industrial SMEs and vocational education and training (VET) centres from the firms’ perspective. The study is based on a survey carried out with a sample of 1388 Spanish industrial SMEs with vocational education graduates among their employees. Multivariate hierarchical segmentation techniques were used in order to identify the main explanatory variables. As a result, we obtained a typology (“tree”) of eight organizational profiles associated to different intensity levels (from higher to lower) of relationships between firms and schools. The results show that most industrial SMEs maintain relations with vocational education centres, reflecting the importance of the latter for the companies. The organisational type having the highest level of relations refers to SMEs with experience in external cooperation (cooperation with other actors in innovation projects) which have vocational education employees (graduates) in technical areas and which are bigger in size. Likewise, the results suggest that fruitful collaboration between SMEs and vocational education centres depends on the existence of an established culture of innovation among the smaller firms. This work sheds light on economic and social sustainability. Its results and discussion are linked to the objectives of United Nations sustainable development goals and the recent communication from the European Commission to the European Parliament entitled “European skills agenda for sustainable competitiveness, social fairness, and resilience”.

Examining the effects of the quality of financial reports on SME trade credit: An innovative approach

Following an innovative approach, the effects of financial report quality on the use of trade credit in small and medium-sized enterprises (SMEs) are examined. This effect is considered in a direct and indirect way. Firstly, we analyze whether SMEs with low-quality information are more likely to use trade credit as a financial resource. Secondly, we investigate whether the relationship between trade credit and bank credit in SMEs is moderated by the quality of financial reports. For the empirical analysis, we use a sample of Spanish SMEs over the period 2004 to 2011, and apply a panel data model with fixed effects. The findings suggest that firms with low-quality financial reporting use more trade credit. Furthermore, the influence of bank credit on trade credit is found to be partially moderated by audit opinion.

Digital strategy aligning in SMEs: A dynamic capabilities perspective

Digital strategy alignment is a dominant concern for today’s managers and information systems researchers. Yet research in this area remains fragmented, particularly on the digital strategy alignment of small and medium-sized enterprises (SMEs), which is concerning owing to their value to European economies. Employing dynamic capabilities as an analytical lens, we investigate how 43 British, Irish, Italian, and Spanish SMEs, across five industry sectors, enact digital aligning. We identify a model of digital alignment comprising five phases, which we term “passive acceptance,” “connection,” “immersion,” “fusion,” and “transformation,” as well as the specific combinations of sensing, seizing, and reorganizing capabilities associated with each phase. Our model provides a holistic, practice-based perspective and highlights the role of micro-behaviors and leadership in SMEs implementing digital strategy.

CEO gender and SMEs innovativeness: evidence for Spanish businesses

This paper analyses the role of gender of the chief executive officer (CEO) on the propensity to introduce innovations using a sample of 1405 Spanish small- and medium-sized enterprises (SMEs). We examine whether there are significant differences between female- and male-led businesses in terms of their propensity to innovate, and whether these differences may be explained by factors related to the attributes of the CEO concerning risk tolerance, self-confidence, education level and cooperative behaviour. In particular, this study tests if the linkages between these managerial attributes and the propensity to innovate are influenced by the gender of the CEO. Using a multivariate probit model (triprobit), we further investigate the role of gender on the CEO decision to simultaneously introduce product, process and organisational innovations. Our main results indicate that there are not significant differences in the propensity to introduce innovations between male- and female-run businesses when considering innovation at an aggregated level, that is, innovating in any of the three types of innovations considered. However, we obtain a higher propensity of male CEOs to introduce process innovations, as compared to their female counterparts. No significant differences by gender are found for product and organisational innovations. Additionally, results of the multivariate probit model indicate that the three innovation decisions are interdependent and should be jointly analysed. This study contributes to the scant literature regarding gender impact on firm’s innovativeness with novel empirical evidence for SMEs.

System quality and security certification in seven weeks: A multi-case study in Spanish SMEs

Every company wishes to improve its system quality and security, all the more so in these times of digital transformation, since having a good quality and security management system is essential to any company’s commercial survival. Such needs are even more pressing for small and medium-sized enterprises (SMEs), given their limited time and resources. To address these needs, a Spanish company, Proceso Social, has developed an innovative method called “SevenWeeks” to allow SMEs to create or improve their quality and security management systems in just seven weeks, with a view to obtaining one or both of the ISO 9001 and ISO/IEC 27001 certifications.We have evaluated the effectiveness and usefulness of SevenWeeks by carrying out a multi-case study of 26 Spanish companies, based on independent sources of evidence.This allowed us to corroborate that SevenWeeks was indeed effective for and perceived as useful by all the companies, as it enabled them to create their own quality and security management systems in only seven weeks and to obtain the necessary ISO certification. The interviewees found SevenWeeks to be an agile and intuitive method, easy to implement, which reduces costs and effort. We also include some recommendations to improve and further develop the method.