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1 – 10 of over 1000This 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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Nurin Athilah Masron, Zaini Zainol and Suhaiza Ismail
The objectives of this paper are twofold. First, it aims to investigate the impact of the COVID-19 pandemic on the activities and performance of small and medium-sized enterprises…
Abstract
Purpose
The objectives of this paper are twofold. First, it aims to investigate the impact of the COVID-19 pandemic on the activities and performance of small and medium-sized enterprises (SMEs) government suppliers involved in government green procurement (GGP). Second, it examines the differences in the impact of COVID-19 between small and medium-sized groups.
Design/methodology/approach
The study used a questionnaire survey that was distributed to SMEs listed in the MyHIJAU directory that supply green goods and services to the government. Of the total 394 sample respondents, 126 usable questionnaires were received, representing a usable response rate of 31.98%. Descriptive analysis of mean score, standard deviation and mean score ranking was used to analyse the overall results. A t-test analysis was carried out to examine the differences between the small and medium-sized groups of companies.
Findings
The study discovers that the SME government suppliers involved in GGP were impacted by the COVID-19 pandemic. The top ranked impacts are that “the COVID-19 pandemic has heightened health and safety practices among the employees”, “the COVID-19 pandemic has reduced company’s turnover”, “the COVID-19 pandemic has forced the company to implement a cost reduction strategy”, “the COVID-19 pandemic has had a negative impact on the company’s ability to deliver work, supplies or services to the government” and “the COVID-19 pandemic has forced the company to incur higher production costs for green products or services provided”. However, there is no significant difference between the impact of the COVID-19 pandemic on the small and medium-sized group of enterprises.
Originality/value
The present study is among the fewer studies on the impact of the COVID-19 pandemic, with particular focus on SME government suppliers involved in GGP.
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Jude Edeh, Nuraddeen Nuhu, Mahdi Tajeddin and Amon Simba
Small and medium-sized enterprises in developing countries, particularly in the Sub-Saharan African region, find it hard to innovate due to severe resource constraints and high…
Abstract
Purpose
Small and medium-sized enterprises in developing countries, particularly in the Sub-Saharan African region, find it hard to innovate due to severe resource constraints and high institutional voids. Given this, the paper examines three international strategic responses that small and medium-sized enterprises in Sub-Saharan Africa adopt to implement innovations in the face of weak institutional environments.
Design/methodology/approach
Using comprehensive data from the World Bank Enterprise Survey, the study applies the Instrumental Variable Probit approach to analyse a sample of 8,466 SMEs from eleven countries in the Sub-Saharan African region.
Findings
The empirical results show that foreign ownership negatively affects product and process innovation. Additionally, the results reveal that small and medium-sized enterprises that leverage exporting and international quality certifications are likely to implement innovations.
Originality/value
The paper contributes to the literature by suggesting that small and medium-sized enterprises must exploit strategic alternatives to improve their innovation efforts when operating in a weak institutional environment. Thus, by exploring international strategic responses to institutional difficulties when implementing innovations, this paper goes beyond the prevailing research approach in developing countries that mainly emphasises the barriers to innovations.
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Martin Gelencsér, Zsolt Sandor Kőmüves, Gábor Hollósy-Vadász and Gábor Szabó-Szentgróti
This study aims to explore the holistic context of organisational staff retention in small, medium and large organisations. It also aims to identify the factors affecting the…
Abstract
Purpose
This study aims to explore the holistic context of organisational staff retention in small, medium and large organisations. It also aims to identify the factors affecting the retention of organisations of different sizes.
Design/methodology/approach
The study implements an empirical test of a model created during previous research with the participation of 511 employees. The responses to the online questionnaire and the modelling were analysed using the partial least squares structural equation modelling method. The models were tested for internal consistency reliability, convergent and discriminant validity, multicollinearity and model fit.
Findings
Two models were tested by organisation size, which revealed a total of 62 significant correlations between the latent variables tested. Identical correlations were present in both models in 22 cases. After testing the hypotheses, critical variables (nature of work, normative commitment, benefits, co-workers and organisational commitment) were identified that determine employees’ organisational commitment and intention to leave, regardless of the size of the organisation.
Research limitations/implications
As a result of this research, the models developed are suitable for identifying differences in organisational staffing levels, but there is as yet no empirical evidence on the use of the scales for homogeneous groups of employees.
Practical implications
The results show that employees’ normative commitment and organisational commitment are critical factors for retention. Of the satisfaction factors examined, the nature of work, benefits and co-workers have a significant impact on retention in organisations, so organisational retention measures should focus on improving satisfaction regarding these factors.
Social implications
The readers of the journal would appreciate the work, which highlights the significance of employee psychology and retention for organisational success.
Originality/value
The study is based on primary data and, to the best of the authors’ knowledge, is one of the few studies that take a holistic approach to organisational staff retention in the context of the moderating effect of organisational size. This study contributes to a comprehensive understanding of the phenomenon of employee retention and in contrast to previous research, examines the combined effect of several factors.
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Sanjeet Singh, Mitra Amini, Mohammed Jamshed, Hari Prapan Sharma and Waseem Khan
The purpose of the study is to examine the obstacle in doing business and determinants of credit adoption by the textile enterprises in India.
Abstract
Purpose
The purpose of the study is to examine the obstacle in doing business and determinants of credit adoption by the textile enterprises in India.
Design/methodology/approach
The study is based on World Bank’s Enterprises Survey, there are 571 enterprises involved in textile business. The enterprises survey has response on wide range of business obstacles which are categorized under three broad categories, namely, access to resource, business regulations and market externalities. Chi-square test and analysis of variance (ANOVA) have been used to examine the significant difference among firm’s profile and perceived business obstacles across the firm size. Furthermore, binary logistic regression model has been applied to explore the determinants of credit adoption by textile enterprises.
Findings
A statistically significant difference has been found in size of firms and legal status nature of establishment, gender of top manager, main product market and credit adoption from financial institutions. Majority of small- and medium-sized enterprises (SMEs) are sole proprietorship firm while large enterprises are limited partnership firms. Similarly, large enterprises have relatively more female as a top manager and international market for their product. ANOVA reveals equal degree of obstacles in doing textile business across the firm size. The logistic regression coefficient and marginal effects reveal that firm size, main market,gender of owner, number of establishment in the firms positive and significantly affects the credit adoption by 3 textile enterprises.
Practical implications
The study has some policy implications for various stakeholders such as textile business managers and promoters, government, investors and bankers for entrepreneurship development in textile sector. The study suggests that the government should incentivize small- and medium-sized businesses to increase their exports. The results show that despite government efforts to finance SMEs, fewer SMEs are receiving both short- and long-term credit. To help SMEs in the textile industry overcome financial difficulties and expand their main product market to both domestic and international levels, a soft loan should be provided based on the characteristics of textile enterprises.
Originality/value
The present study suggests the evidence-based understanding of textile business environment. The value and uniqueness of this study is to explore an ease of business textile sector using comprehensive enterprises survey data of World Bank.
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Yanmei Xu, Zhenli Bai, Ziqiang Wang, Xia Song, Yanan Zhang and Qiwen Zhang
Aside from grappling with technological advancements, enterprises in the industrial internet era are embracing business model innovation to align with the evolution of the…
Abstract
Purpose
Aside from grappling with technological advancements, enterprises in the industrial internet era are embracing business model innovation to align with the evolution of the industrial internet. However, a gap persists in the existing research regarding the strategies and methods available to small and medium-sized enterprises (SMEs) for executing business model innovation. Therefore, this paper aims to explore the connotation, characteristics and logic of business model innovation for SMEs in the industrial internet era.
Design/methodology/approach
To explore the business model innovation logic of small and medium-sized enterprises in the era of industrial internet, the paper adopts a longitudinal single-case study approach, with PAYA, a medium-sized enterprise in the electromechanical industry, serving as the subject of research. It systematically analyzes PAYA’s business model innovation, centering on four key elements of the business model: value proposition, value creation, value delivery and value capture.
Findings
The study proposes two types of business model innovation, namely, “Migration” and “Expansion”, and explains the logic of business model innovation for SMEs in the industrial internet era: faced with a rapidly changing market environment, entrepreneurs put forward the value proposition through the insight of the market environment, then enterprises conduct technological innovation to support the value creation by their own unique experience and knowledge, and then improve the legitimacy of the market by expanding the influence of market acceptance of the new business model to promote the value delivery, and finally capture the economic value and ecological value.
Originality/value
The types and logic of business model innovation proposed in this paper contribute to supplementing and developing the theory of business model innovation and meanwhile have important reference value for SMEs in the industrial internet era.
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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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Tatik Tatik and Doddy Setiawan
This study aims to examine the main factors that influence the adoption of social media marketing (SMM) by small and medium-sized enterprises (SMEs) in Indonesia and how the…
Abstract
Purpose
This study aims to examine the main factors that influence the adoption of social media marketing (SMM) by small and medium-sized enterprises (SMEs) in Indonesia and how the influence of social media marketing on the performance of micro, small and medium-sized enterprises (MSMEs) in Indonesia. This research can provide input for teaching, public policy toward digital infrastructure and influence public attitudes toward digital involvement in business. This implication is in line with the findings of this research, which bridges theory and practice and has the potential to influence economic growth and quality of life.
Design/methodology/approach
The data collection method used is a survey method by distributing questionnaires to MSME actors. The number of samples in this study was 234 respondents. This study was analyzed using the Structural Equation Model (SEM) with the help of SmartPLS software.
Findings
The results of this study indicate that marketing through social media has an effect on the performance of MSMEs. MSMEs need to adopt digital media considering the rapid development of digital technology today to be in line with the demands of business development. Using social media platforms, consumers can instantly connect with new products, services and brands with ease.
Originality/value
This article provides a significant and original contribution to the literature by examining the influence of social media marketing on the performance of micro, small and medium-sized enterprises (MSMEs) in Indonesia. This report provides new insights into the adoption and impact of SMM in the Indonesian context, where internet and social media use is very high.
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Rapid changes in technologies and customer preferences are increasing market uncertainty. Hence, despite the benefits of reactive and adaptive marketing in the industrial market…
Abstract
Purpose
Rapid changes in technologies and customer preferences are increasing market uncertainty. Hence, despite the benefits of reactive and adaptive marketing in the industrial market, such marketing is sometimes insufficient for suppliers to survive and succeed. This phenomenon is prevalent among the small and medium-sized suppliers (SMSs) who fail to build technological capability. This suggests that SMSs should be entrepreneurial to survive and succeed in today’s environment. Against this backdrop, the purposes of this study are to understand the process by which entrepreneurial marketing of SMSs enhances their technological capability and to explore factors that stimulate SMSs to implement entrepreneurial marketing.
Design/methodology/approach
Based on a survey data set on 249 industrial SMSs in South Korea, the authors test the hypotheses formulated in this work using structural equation modeling.
Findings
Based on effectuation theory, this study conceptualizes entrepreneurial marketing as a process by contrasting entrepreneurial marketing with reactive and adaptive marketing. The results show that proactive market orientation and subsequent exploratory market behavior enhance technological capability, and proactive market orientation is stimulated by relational satisfaction and perceived technological turbulence.
Originality/value
This study advances effectuation theory in the industrial marketing literature by exploring the value of entrepreneurial marketing in today’s industrial market. Further, this study extends the entrepreneurial marketing literature by conceptualizing and testing the process by which entrepreneurial marketing of SMSs enhances their technological capability.
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Rodney Adriko and Jason R.C. Nurse
This study aims to offer insights into the state of research covering cybersecurity, cyber insurance and small- to medium-sized enterprises (SMEs). It examines benefits of…
Abstract
Purpose
This study aims to offer insights into the state of research covering cybersecurity, cyber insurance and small- to medium-sized enterprises (SMEs). It examines benefits of insurance to an SME’s security posture, challenges faced, and potential solutions and outstanding research questions.
Design/methodology/approach
Research objectives were formulated, and the Preferred Reporting Items for Systematic Reviews and Meta-Analyses Protocol was used to perform a systematic literature review (SLR). A total of 19 papers were identified from an initial set of 451.
Findings
This research underscores the role of cybersecurity in the value proposition of cyber insurance for SMEs. The findings highlight the benefits that cyber insurance offers SMEs including protection against cyber threats, financial assistance and access to cybersecurity expertise. However, challenges hinder SME’s engagement with insurance, including difficulties in understanding cyber risk, lack of cybersecurity knowledge and complex insurance policies. Researchers recommend solutions, such as risk assessment frameworks and government intervention, to increase cyber insurance uptake/value to SMEs.
Research limitations/implications
There is a need for further research in the risk assessment and cybersecurity practices of SMEs, the influence of government intervention and the effectiveness of insurers in compensating for losses. The findings also encourage innovation to address the unique needs of SMEs. These insights can guide future research and contribute to enhancing cyber insurance adoption.
Originality/value
To the best of the authors’ knowledge, this is the first SLR to comprehensively examine the intersection of cybersecurity and cyber insurance specifically in the context of SMEs.
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