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1 – 10 of 266The role of small and medium enterprises (SMEs) in stimulating economic growth and innovation underscores the crucial need to understand the factors that influence their…
Abstract
Purpose
The role of small and medium enterprises (SMEs) in stimulating economic growth and innovation underscores the crucial need to understand the factors that influence their participation in public sector markets. Drawing on network theory, this research delves into the interaction effect of innovation culture and collaborative relationships on SME participation in public procurement. It assesses how collaborative relationships can serve as a vital mediator, enhancing the impact of innovation culture on SME participation in public procurement.
Design/methodology/approach
The research was carried out with 248 SME suppliers in Ilala district, located in the Dar es Salaam region of Tanzania, utilizing a questionnaire survey and a stratified random sampling technique. Structural equation modeling (SEM) and the Hayes PROCESS macro were employed to analyze the data.
Findings
The study findings highlight collaborative relationships as a pivotal mediator between innovation culture and SME participation in public procurement. Although no direct link between innovation culture and SME participation in public procurement was established, the results indicate a noteworthy positive influence of innovation culture on collaborative relationships, subsequently affecting SME participation in public procurement.
Practical implications
The research underscores the significance of promoting an innovation-driven culture to support the participation of SMEs within public procurement activities. Additionally, the research offers valuable perspectives on the role of collaborative relationships in stimulating innovation and achieving success in public procurement, guiding SME managers, policymakers and industry stakeholders in cultivating productive relationships and partnerships.
Originality/value
The research enhances both theoretical and practical insights, adding to the literature that addresses the effects of innovation culture and collaborative relationships on SME participation in public procurement. These insights can be valuable to policymakers and SME managers in designing appropriate strategies that foster an innovative culture and explore the benefits of collaborative relationships for effective participation in public procurement.
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Public procurement presents substantial market opportunities for small- and medium-sized enterprises (SMEs), which can contribute to their economic growth. However, limited…
Abstract
Purpose
Public procurement presents substantial market opportunities for small- and medium-sized enterprises (SMEs), which can contribute to their economic growth. However, limited dynamic capabilities often pose challenges for SMEs to participate effectively in public procurement markets. Drawing on dynamic capability (DC) theory, this study explores whether financial capability (FNCP) influences SMEs’ ability to leverage their technological capability (TECC) and marketing sensing capability (MKSC) and actively engage in public procurement.
Design/methodology/approach
Data for this study were collected from 248 SME managers in the Ilala District, Tanzania, using a cross-sectional questionnaire survey and stratified random sampling technique. The proposed hypotheses were tested empirically through confirmatory factor analysis (CFA) and the Hayes PROCESS macro.
Findings
TECC and MKSC demonstrated significant positive associations with SME participation in public procurement (SMPP). Moreover, the interaction between TECC and FNCP as well as the interaction between MKSC and FNCP demonstrate a significant positive effect, suggesting that FNCP strengthens the impact of TECC and MKSC on SMPP.
Research limitations/implications
The scope of this study was limited to SMEs in the Ilala District of Tanzania, hence affecting the generalizability of the findings to other contexts. More importantly, the study findings enrich the understanding of DC theory, signifying that the integration and reconfiguration of MKSC, TECC and FNCP add significant value to SMPP.
Practical implications
The findings suggest that policymakers, support institutions and SME managers should focus on enhancing SMEs' MKSC and TECC to improve their participation in public procurement. In addition, improving SMEs' access to financial resources can further strengthen these effects, enabling more inclusive participation in public procurement.
Originality/value
The study contributes to the literature on SMPP by highlighting the critical roles of MKSC and TECC. It also underscores the importance of FNCP as a moderator in these relationships, which has not been addressed in the existing literature. By integrating these factors, the study offers a comprehensive framework for understanding the dynamics that influence SMPP from financial, technological and marketing perspectives, particularly in developing economies like Tanzania.
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Ariful Islam, Sazali Abd Wahab and Shehnaz Tehseen
Malaysian small and medium-sized enterprises (SMEs) are critical for economic development and meeting the sustainable development goals (SDGs); however, many struggle to survive…
Abstract
Purpose
Malaysian small and medium-sized enterprises (SMEs) are critical for economic development and meeting the sustainable development goals (SDGs); however, many struggle to survive in the long term. So, this study aims to present a model for sustainable growth that bridges the gap between desired growth and managerial competencies. By configuring university helix-induced crowdfunding and opportunity recognition competencies with industry helix-driven innovation, the study encourages a quadruple bottom line (QBL) strategy, helping SMEs attain competitiveness for sustainable growth.
Design/methodology/approach
This pilot study used a sequential mixed methods design and adhered to the pragmatic research paradigm. A survey of 52 SCORE-listed manufacturers yielded quantitative data, complemented by qualitative interviews with 7 SME decision makers. This study used NVivo 10 and SmartPLS 4.0 for the necessary analysis. In addition, an effective triangulation strategy has been implemented to explain causation among selected variables.
Findings
The findings show that opportunity recognition and crowdfunding are positively associated with SMEs’ ability to grow in a sustainable manner and that exploitative and explorative innovation also mediate those relationships. The qualitative part highlighted key insights for successfully applying this model in Malaysian SMEs. The interview results also suggest that corporate spirituality might help SMEs adopt sustainability-focused practices.
Research limitations/implications
More research is required regarding both the methods and results of this pilot study. Although conducting a pilot study increases the likelihood of success in the main study, it does not ensure it.
Practical implications
This study equips Malaysian SMEs with a roadmap for achieving sustainable growth. The obtained findings indicate that Malaysian SMEs that develop strong crowdfunding and opportunity recognition competencies are more likely to achieve innovation-focused long-term survival. In addition, incorporating corporate spirituality can enhance their economic, social and environmental performance.
Social implications
By supporting more innovation in SMEs, which can improve sustainability-oriented successes and support a healthy economic system, these findings may have a beneficial social change impact. The concept may also act as the foundation for SMEs’ promotion of the SDGs.
Originality/value
The study uniquely offers a holistic growth model for Malaysian SMEs founded on the helix-QBL understanding that explains a firm’s sustainability-focused competitive advantage.
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The aim of this study is to empirically investigate the impact of marketing analytics capability on business performance from the perspective of RBV theory.
Abstract
Purpose
The aim of this study is to empirically investigate the impact of marketing analytics capability on business performance from the perspective of RBV theory.
Design/methodology/approach
This study used a survey method to gather information from 225 food processing SMEs registered with the Ghana Enterprise Agency (GEA) in Ghana’s eastern region. A structural equation modeling (SEM) path analysis was used to assess the impact of marketing analytics capability (MAC) on the performance of SMEs.
Findings
The results of the study show that MAC significantly and positively affect the financial performance (FP), customer performance (CF), internal business process performance (IBPP) and learning and growth performance (LGP) of Ghanaian SMEs. The findings of this study also illustrated the significance of MAC determinants, including marketing analytics skills (MAS), data resource management (DRM) and data processing capabilities (DPC), in achieving SME success in Ghana.
Originality/value
The research’s conclusions give RBV theory strong credence. The results of this study also provide credence to previous research finding that SMEs should view MAC and its determinants (i.e. DRM, DPC, MAS) as a crucial strategic capability to improve their performance (i.e. FP, CF, IBPP, LGP). With regard to its contribution, this study broadens the body of knowledge on MAC and SME performance, particularly in the context of an emerging economy.
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Edwin Juma Omol, Lucy Waruguru Mburu and Paul Anyango Abuonji
This study introduces the Digital Maturity Assessment Model (DMAM), a model tailored to assess the digital maturity of SMEs, tracing its development from addressing business…
Abstract
Purpose
This study introduces the Digital Maturity Assessment Model (DMAM), a model tailored to assess the digital maturity of SMEs, tracing its development from addressing business challenges to establishing a comparative analysis framework grounded in Resource Dependence Theory (RDT).
Design/methodology/approach
DMAM is based on positivist philosophy and objectivist epistemology, supported by Design Science Research (DSR) and Capability Maturity Model Integration (CMMI). The methodology involves iterative development, from problem identification to creating a practical solution for assessing SMEs' digital maturity and guiding digitalization efforts.
Findings
DMAM offers a clear and specific methodology, distinguishing itself by addressing the unique needs of SMEs, particularly resource-dependent ones. The model’s development fills critical gaps in existing literature and provides a practical artifact for SMEs' digitalization.
Originality/value
DMAM is original in its focus on the specific needs of resource-dependent SMEs, offering actionable recommendations and addressing shortcomings in existing models. It serves as a foundational framework for SMEs' digital transformation, making a significant contribution to the digital maturity assessment literature.
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Dian Palupi Restuputri, Ilyas Masudin, Auraria Putri Septira, Kannan Govindan and Widayat Widayat
This study highlights the significance of knowledge management in the relationship between organizational ambidexterity and organizational performance within the context of…
Abstract
Purpose
This study highlights the significance of knowledge management in the relationship between organizational ambidexterity and organizational performance within the context of Indonesian SMEs.
Design/methodology/approach
The study adopts a quantitative research approach, employing a survey questionnaire to collect data from a sample of SMEs operating in Indonesia. Structural Equation Modeling using Partial Least Square is used to investigate the relationship between variables.
Findings
The findings of this study show that in the context of small and medium enterprises, the variables of environmental and technological uncertainty are not driving factors in organizational ambidexterity. In contrast, market uncertainty has a significant effect on organizational ambidexterity. Moreover, it is also found that knowledge management does not support the variables of environmental, market, and technological uncertainty on organizational ambidexterity in small and medium enterprises. The results show that knowledge management plays a significant role in organizational ambidexterity. It also shows that knowledge management could support a significant way between organizational ambidexterity and organizational performance.
Originality/value
The findings of this study give insights for SMEs to attain a sustainable competitive edge in a dynamic business landscape by implementing efficient knowledge management techniques that bolster their ambidextrous capacities.
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Jitender Kumar, Garima Rani, Manju Rani and Vinki Rani
This study aims to empirically examine and analyze the factors that influence the adoption of blockchain technology, particularly within small and medium-sized enterprises (SMEs)…
Abstract
Purpose
This study aims to empirically examine and analyze the factors that influence the adoption of blockchain technology, particularly within small and medium-sized enterprises (SMEs). The study also predicts how adopting blockchain technology may affect SMEs’ market and financial performance.
Design/methodology/approach
The research is grounded in the theoretical frameworks of the “technology–organization–environment (TOE) framework” and the “resource-based view (RBV)” perspective. The researchers collected 407 responses from a survey conducted on SMEs in India. The statistical package for social science, followed by the “partial least square structural equation modeling (PLS-SEM)” technique, was applied for the data analysis.
Findings
This paper offered a robust research framework for blockchain technology adoption in which one of the two proposed technological factors (relative advantage), one organizational factor (top management support) and two environmental factors (competitive pressure and market dynamics) significantly influence blockchain technology adoption. Similarly, there is a substantial association between blockchain technology adoption and both market and financial performance. More specifically, the complexity and perceived investment cost have been recognized as barriers to SMEs adopting blockchain technology.
Research limitations/implications
The primary focus of this research lies in examining the adoption of blockchain technology among SMEs in India. Consequently, there exists an opportunity to broaden the scope of this study to include various other countries. Such an expansion holds the potential to yield more precise and comprehensive results, enabling a comparative analysis across diverse international contexts.
Practical implications
The outcomes have practical significance for SMEs as they navigate their strategies for adopting blockchain technology. Moreover, policymakers and practitioners can use these findings to enact specific measures targeting barriers, fostering the adoption of blockchain in Indian SMEs and creating a more supportive environment for technological integration and growth.
Originality/value
This study introduces a novel theoretical framework focusing on the impact of blockchain adoption on SMEs. Its distinctive contribution lies in investigating the mediating role of blockchain adoption in the relationship between market and financial performance, specifically within emerging economies. By addressing this gap, the study enhances the understanding of how blockchain adoption shapes SME performance in evolving economic landscapes.
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Said Elbanna, Fareed Begum and Nasrina Mauji
The distinctiveness of Japanese management practices offers invaluable insights for the strategic development and operational excellence of small and medium-sized enterprises…
Abstract
Purpose
The distinctiveness of Japanese management practices offers invaluable insights for the strategic development and operational excellence of small and medium-sized enterprises (SMEs) worldwide. Recognizing this, the purpose of this study is to explore an extensive review of the literature on Japanese SMEs. The aim is to reveal previously explored research domains and to systematically categorize the unique factors contributing to the success and challenges of SMEs. This investigation not only illuminates the peculiarities of Japanese SMEs management but also sets the stage for applying these insights globally to SMEs across diverse industries.
Design/methodology/approach
Using a systematic review approach, 63 studies on Japanese SMEs from 1996 to 2021 were identified and analyzed.
Findings
This analysis identified six critical themes in Japanese SME management: nuanced firm management practices; forefront innovation and technology; internationalization; supportive government policies; commitment to corporate social responsibility and sustainable development; and vibrant entrepreneurship. The authors also spotlight challenges like navigating global competition and adapting to rapid technological changes. These insights, alongside noted methodological gaps in existing literature, suggest fertile grounds for future research and hold significant implications for SMEs globally.
Originality/value
The investigation of Japanese SMEs in this study highlights valuable insights for SMEs, policymakers and scholars, as it represents a rich and distinctive research phenomenon with various organizational, cultural, economic and political implications.
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This study presents the impact of Economic Policy Uncertainty (EPU)-induced Trade Supply Chain Vulnerability (TSCV) on the Small and Medium-Sized Enterprises (SMEs) in India by…
Abstract
Purpose
This study presents the impact of Economic Policy Uncertainty (EPU)-induced Trade Supply Chain Vulnerability (TSCV) on the Small and Medium-Sized Enterprises (SMEs) in India by leveraging the World Bank Enterprise Survey data for 2014 and 2022. Applying econometric techniques, it examines firm size’ influence on productivity and trade participation, providing insights for enhancing SME resilience and trade participation amid uncertainty.
Design/methodology/approach
The econometric techniques focus on export participation, along with variables such as total exports, firm size, productivity, and capital intensity. It addresses crucial factors such as the direct import of intermediate goods and foreign ownership. Utilizing the Cobb-Douglas production function, the study estimates Total Factor Productivity, mitigating endogeneity and multicollinearity through a two-stage process. Besides, the study uses a case study of North Indian SMEs engaged in manufacturing activities and their adoption of mitigation strategies to combat unprecedented EPU.
Findings
Results reveal that EPU-induced TSCV reduces exports, impacting employment and firm size. Increased productivity, driven by technological adoption, correlates with improved export performance. The study highlights the negative impact of TSCV on trade participation, particularly for smaller Indian firms. Moreover, SMEs implement cost-based, supplier-based, and inventory-based strategies more than technology-based and risk-based strategies.
Practical implications
Policy recommendations include promoting increased imports and inward foreign direct investment to enhance small firms’ trade integration during economic uncertainty. Tailored support for smaller firms, considering their limited capacity, is crucial. Encouraging small firms to engage in international trade and adopting diverse SC mitigation strategies associated with policy uncertainty are vital considerations.
Originality/value
This study explores the impact of EPU-induced TSCV on Indian SMEs’ trade dynamics, offering nuanced insights for policymakers to enhance SME resilience amid uncertainty. The econometric analysis unveils patterns in export behavior, productivity, and factors influencing trade participation during economic uncertainty.
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Innocent Otache and Timothy Onechojon Usman
There is a paucity of empirical studies on the impact of entrepreneurial management on small and medium enterprises (SME) performance. Against this backdrop and drawing upon the…
Abstract
Purpose
There is a paucity of empirical studies on the impact of entrepreneurial management on small and medium enterprises (SME) performance. Against this backdrop and drawing upon the resource-based view, this study aims to explore the relationship between entrepreneurial management and SME performance and the mediating role of competitive advantage in an emerging economy.
Design/methodology/approach
This study adopted a survey research design and a quantitative approach. A self-reported questionnaire was used to collect data from a conveniently selected sample of 174 manufacturing SMEs in Nigeria. This study performed mediation analysis to test the proposed hypotheses using Hayes’ PROCESS macro v4.
Findings
The findings indicate that entrepreneurial management positively impacts competitive advantage and SME performance. Furthermore, competitive advantage has a positive impact on SME performance and plays a significant mediating role in the relationship between entrepreneurial management and SME performance.
Research limitations/implications
This study only examines manufacturing SMEs in a single country, Nigeria; thus, the generalisability of its findings is limited.
Practical implications
The findings of this study offer practical implications for SMEs and SME owners or managers. The findings suggest that to gain a sustainable competitive advantage and achieve superior performance, SMEs should pursue opportunities regardless of the available resources, promote flat and flexible organisation structures, adopt fast growth orientation and strategies, reward employees based on the value they add to the organisation and foster an entrepreneurial culture.
Originality/value
To the best of the authors’ knowledge, this study is the first to provide empirical evidence of the mediating effect of competitive advantage on the relationship between entrepreneurial management and SME performance in an emerging economy. This study demonstrates that implementing entrepreneurial management practices by SMEs can result in sustainable competitive advantage and superior performance.
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