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Article
Publication date: 31 July 2021

Khaldoon Nusair, Hamed Ibrahim Al-Azri, Usamah F. Alfarhan, Saeed Al-Muharrami and S.R. Nikhashemi

This paper aims to examine small- and medium-sized enterprises’ (SMEs) strategic capabilities in terms of their marketing and management capabilities, their sources of…

Abstract

Purpose

This paper aims to examine small- and medium-sized enterprises’ (SMEs) strategic capabilities in terms of their marketing and management capabilities, their sources of environmental uncertainty and their organizational capabilities. Additionally, to what extent the effect differs across two sectors (manufacturing and service).

Design/methodology/approach

Partial least squares structural equation modeling was used to conduct multigroup analysis for the two sectors. Data was collected from a sample of 315 Omani SMEs, 166 from manufacturing and 149 from services.

Findings

The results show that strategic capabilities have a significant positive effect on customer satisfaction. However, the effect differs between manufacturing and service SMEs; the effect is greater in service than in manufacturing SMEs. Furthermore, the effect of organizational capabilities on customer satisfaction was found to be positive. However, the effect is higher in manufacturing as the difference is statistically significant.

Originality/value

Due to the growing importance of the service and manufacturing SMEs in developing countries and their considerable involvement in economic development, it is important to understand the characteristics of the strategic capabilities in both sectors. Thus, according to the authors’ knowledge, this paper is one of the first to propose a comprehensive framework that measures collectively the direct impact of strategic capabilities, organizational capabilities and environmental uncertainties on SMEs customer satisfaction and effectiveness.

Details

Journal of Entrepreneurship in Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2053-4604

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Book part
Publication date: 18 November 2019

Ahmad Arslan, Sean Naughton, Abdollah Mohammadparast Tabas and Vesa Puhakka

This chapter conceptually addresses outward internationalisation of small and medium sized enterprises (SMEs) from the emerging markets (EMs) by focussing on the role of…

Abstract

This chapter conceptually addresses outward internationalisation of small and medium sized enterprises (SMEs) from the emerging markets (EMs) by focussing on the role of prior contract manufacturing relationships with a developed market multinational enterprise (DMNE). The internationalisation of SMEs originating from EMs is a rather under-researched area and the role of prior contract manufacturing experience specifically has not been addressed in prior studies. Based on a literature review, the authors identified four capabilities developed by EM SMEs during their contract manufacturing relationships with DMNE(s) that potentially help in later outward internationalisation. The authors incorporate some insights from dynamic capabilities theory, and develop propositions addressing the role of relational capital, human capital, manufacturing productivity capabilities and product innovation capabilities in this specific context. Despite being conceptual in nature, this chapter is one of the first to explicitly highlight the role of these specific capabilities developed during contract manufacturing relationship for outward internationalisation, setting bases for future studies to further empirically investigate them in different contexts.

Details

International Entrepreneurship in Emerging Markets: Nature, Drivers, Barriers and Determinants
Type: Book
ISBN: 978-1-78769-564-1

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Article
Publication date: 21 May 2021

Wisdom Apedo Deku, Jiuhe Wang, Edmund Danquah and Das Narain

The purpose of this study was to provide comprehensive overview, and exposure of the correlation between entrepreneurial orientation dimension (EOD) and business…

Abstract

Purpose

The purpose of this study was to provide comprehensive overview, and exposure of the correlation between entrepreneurial orientation dimension (EOD) and business innovation environment (BIE) on small and medium enterprises (SMEs) financial performance in the Ghanaian manufacturing SMEs sector that enhances knowledge and contextualization in marketing and entrepreneurship literature.

Design/methodology/approach

Anchored on resource-based view theory, 520 manufacturing SMEs companies were conveniently drawn from Association of Ghana Industry, through National Board for Small Scale Industries, using structural equation modelling techniques to analyse the hypotheses.

Findings

This study revealed that three entrepreneurial orientation dimensions EOD: risk-taking, innovations and pro-activeness have positive significant impact on financial performance manufacturing of SMEs. BIE also has positive impact on financial performance of manufacturing of SMEs and BIE moderates SMEs financial performance.

Research limitations/implications

This is a country-specific manufacturing SMEs sector, which means that the findings cannot be used to justify other SMEs in Ghana and SMEs in different country. However, the study was limited to only three EODs: risk-taking, innovations, pro-activeness and Ghanaian manufacturing BIE of SMEs. More countries and other SMEs are needed to expand the field of research in EODs and BIE.

Practical implications

It provides an insight into BIE which is important for marketers, entrepreneurs, regulatory bodies, SMEs owners-managers, directors, government and NGO to strengthening and reshaping their BIE in manufacturing SMEs sector policies, conducts and laws.

Originality/value

This paper fills knowledge and contextual gap in entrepreneurship and marketing literature by presenting comprehensive overview of BIE and EOD research that enhances the on-going discussion in the marketing and entrepreneurship manufacturing SMEs context and proposing priorities for future research streams within an emerging economy.

Details

World Journal of Entrepreneurship, Management and Sustainable Development, vol. 17 no. 4
Type: Research Article
ISSN: 2042-5961

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Article
Publication date: 23 December 2020

Sajan M.P. and Shalij P.R.

The purpose of this study is to investigate whether the adoption of Lean manufacturing (LM) contributes towards the sustainability performance of small and medium-sized…

Abstract

Purpose

The purpose of this study is to investigate whether the adoption of Lean manufacturing (LM) contributes towards the sustainability performance of small and medium-sized enterprises (SMEs) in India.

Design/methodology/approach

The study is based on a multi-case study approach conducted among five independent Indian manufacturing SMEs. The information from direct observation, structured questionnaire interviews with key persons and archival data are used to analyse and cross-check the relationship. An assessment tool, developed using the variables collected from the previous works, is used to measure the relationship.

Findings

The study provides a solid basis for the contribution and positive influence of LM towards the sustainability performance in SMEs. The manufacturing SMEs that have adopted Lean principles and practices are benefited more towards their economic, environmental and social sustainability performances, irrespective of their operational characteristics such as firm size and final product.

Research limitations/implications

This is a limited study conducted in a particular state in India by selecting only five independent case companies with divergent operational characteristics such as size of the firms, product and manufacturing process.

Originality/value

The study contributes by authorising the contribution of LM towards sustainability performance of SMEs. The findings will inspire academic community and industrial practitioners to expend for the adoption of Lean principles looking forward the sustainable development of the SMEs.

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Article
Publication date: 3 November 2020

Jiawen Chen, Linlin Liu and Yong Wang

This study investigates business model innovation in small- and medium-sized manufacturing enterprises (SMEs) and its impact on firm growth.

Abstract

Purpose

This study investigates business model innovation in small- and medium-sized manufacturing enterprises (SMEs) and its impact on firm growth.

Design/methodology/approach

The study was based on analyzing data collected through a questionnaire survey. Structural equation modeling was applied to test the hypotheses.

Findings

Business model innovation has a positive effect on SME growth in the manufacturing sectors. Moreover, growth is also achieved through the indirect effect of business model innovation on customer trust and commitment.

Practical implications

Managers will benefit from understanding how business model innovation can help their companies to overcome resource constraints and achieve sustained growth. When manufacturing SMEs engage in modular or structural changes to their business model, they may find it worthwhile to focus on maintaining a relationship of trust and commitment with their customers.

Originality/value

This study highlights business model innovation as a unique and important, yet underexplored, factor in manufacturing SME growth. The findings also untangle the complex processes of customer relationship management by which business model innovation improves manufacturing competitive advantage for SMEs.

Details

Journal of Manufacturing Technology Management, vol. 32 no. 2
Type: Research Article
ISSN: 1741-038X

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Article
Publication date: 8 May 2018

Saumyaranjan Sahoo and Sudhir Yadav

The purpose of this paper is to examine the extent to which lean management practices are adopted by small- and medium-sized manufacturing organizations in India and their…

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Abstract

Purpose

The purpose of this paper is to examine the extent to which lean management practices are adopted by small- and medium-sized manufacturing organizations in India and their impact on firm’s operational performance (OP). Also, the paper makes an attempt to identify the barriers and challenges faced by Indian SMEs that are striving to succeed with improvement efforts based on lean manufacturing.

Design/methodology/approach

In this paper, acceptability and implementation of lean manufacturing in Indian Manufacturing SMEs were analyzed using three constructs, namely, process improvement (PI), flow management (FM) and waste minimization (WM). The responding firms were categorized into “lean-Beginners,” “In-transition lean” and “lean” group based on their phases of lean implementation. Using a survey questionnaire, data were collected from 121 manufacturing SMEs in India. Lean tools and barriers, identified from the literature review, were also included in the survey. The reliability and validity of the practice and performance measures were evaluated. Correlation analysis was employed to investigate the effects of three constructs on OP.

Findings

The results indicate that all the three lean constructs are significantly related to OP. In the context of Indian manufacturing SMEs, “PI” and “WM” practices have shown a higher level of significance on OP, compared to “FM” practices. “5S -workplace organization” was found to be the most practiced lean tool. “Attitude of workmen” was highlighted as the main obstacle in successfully implementing lean. The findings suggest overall positive effects as a result of applying lean tools and philosophy in Indian SMEs.

Research limitations/implications

The research results may lack qualitative justification because of the chosen research approach. Therefore, the researchers are encouraged to explore the inter-relationship among various lean tools/practices and performance criteria by conducting a qualitative study in the form of a case study or action research.

Practical implications

This paper is a beneficial source of information that highlights the contribution of lean implementation in enhancing manufacturing productivity. The major tools and techniques used by Indian SMEs have been highlighted and discussed; it could be a genuine source of motivation to lean practitioner and entrepreneurs of SMEs to go in for lean implementation. The findings are also expected to benefit the lean practitioners and entrepreneurs of SMEs to focus on vital issues to facilitate successful lean implementation in an organization.

Originality/value

The paper demonstrates that practical implication of lean implementation can bring real breakthroughs in productivity to small- and medium-scale manufacturing firms.

Details

Benchmarking: An International Journal, vol. 25 no. 4
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 28 January 2014

Malin Löfving, Kristina Säfsten and Mats Winroth

– The paper aims at increasing the understanding of how manufacturing strategy formulation can be facilitated in SMEs.

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2148

Abstract

Purpose

The paper aims at increasing the understanding of how manufacturing strategy formulation can be facilitated in SMEs.

Design/methodology/approach

The research presented in this paper follows a four-stage logic. Initially, a literature review was conducted identifying a number of manufacturing strategy frameworks. Thereafter, theoretical and practical assessment criteria were established. The SME requirements were identified through five case studies. Based on these assessment criteria, identified manufacturing strategy formulation frameworks were evaluated. When a framework was found that fulfilled most of the requirements set out, a detailed analysis of the framework was done, based on criteria related to specific SME characteristics.

Findings

In total, 15 different manufacturing strategy formulation frameworks were identified in the literature. To evaluate the suitability of these frameworks in SMEs, a number of assessment criteria were established, both in theory and in practice. These assessment criteria were grouped into three parts based on their character: procedure, realisation and contextual issues. The assessment of the 15 frameworks revealed that among the identified frameworks there was one framework that stood out and fulfilled several of the criteria. However, the frameworks still need to be adapted to the specific SME characteristics.

Originality/value

Although a number of manufacturing strategy frameworks exist, their usability in practice has seldom been investigated. The results presented provide valuable knowledge for the continued work of rendering manufacturing strategy frameworks suitable and thereby useful for SMEs.

Details

Journal of Manufacturing Technology Management, vol. 25 no. 1
Type: Research Article
ISSN: 1741-038X

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Article
Publication date: 6 June 2016

Ruchi Mishra

The purpose of this paper is to analyse and compare the status of manufacturing flexibility adoption, its barriers and adoption practices in small and medium-sized…

Abstract

Purpose

The purpose of this paper is to analyse and compare the status of manufacturing flexibility adoption, its barriers and adoption practices in small and medium-sized enterprises (SMEs) and large firms in India.

Design/methodology/approach

Using mixed methods sequential explanatory design, this study employs survey responses from 121 firms, followed by 16 semi-structured interviews to investigate and explain the status of manufacturing flexibility adoption, barriers to adoption and practices adopted to achieve flexibility in SMEs and large firms in India.

Findings

The study suggests that awareness of manufacturing flexibility concept in SMEs is considerably low and application of manufacturing flexibility is still at embryonic stage. It was found that both SMEs and large firms employ manufacturing flexibility, but they differ with respect to their emphasis on adoption practices used to achieve flexibility. SMEs emphasize entrepreneurial orientation and flexible human resource practices to achieve flexibility, whereas large firms emphasize practices such as technological capability, sourcing practices and integration practices to achieve flexibility. The study also illustrates barriers that hinder manufacturing flexibility adoption at plant level in India.

Research limitations/implications

The study is cross-sectional in nature and is limited to specific regions of India. The use of subjective measures in survey questionnaire is another limitation of the study.

Practical implications

Practitioners should consider combinations of adoption practices to achieve the desired level of manufacturing flexibility. It is also important to give due consideration to barriers before considering manufacturing flexibility adoption.

Originality/value

The findings contribute to the manufacturing flexibility and SMEs research by providing insights into manufacturing flexibility adoption from the developing economy perspective and by widening the scope of existing research into SMEs.

Details

Journal of Manufacturing Technology Management, vol. 27 no. 5
Type: Research Article
ISSN: 1741-038X

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Article
Publication date: 8 April 2021

Diana Kolbe, Haydeé Calderón and Marta Frasquet

Using online channels is an opportunity for small and medium-sized enterprises (SMEs) in the manufacturing industry to reach new markets and reduce the dependency on…

Abstract

Purpose

Using online channels is an opportunity for small and medium-sized enterprises (SMEs) in the manufacturing industry to reach new markets and reduce the dependency on distributors. The challenge remains that of integrating new online channels into existing networks effectively. This paper aims to identify to what extent multichannel integration is enhanced by the innovation capability of manufacturing SMEs and the subsequent influence on their performance.

Design/methodology/approach

Data were collected by means of a survey aimed at managers of small manufacturing firms in Mexico and were analysed through an advanced partial least squares (PLS) approach via SmartPLS.

Findings

Manufacturing SMEs with more advanced innovation capability achieve higher levels of multichannel integration. In turn, when multichannel integration is more advanced, manufacturing SMEs enjoy better results with respect to sales, fulfilling marketing objectives and improving relationships with customers.

Research limitations/implications

The model could be extended to accommodate other variables that may affect the effective integration of multiple channels.

Practical implications

Manufacturing SMEs can improve their results by integrating online channels with existing offline channels with a commitment to innovating in the market.

Originality/value

Analysing multichannel integration from the perspective of manufacturing firms, examining not only the positive consequences but also the underlying capabilities needed.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 24 August 2020

Pezhman Ghadimi, Shane O'Neill, Chao Wang and John W. Sutherland

The purpose of this study is to identify a comprehensive list of main enablers of successful implementation of green manufacturing (GM) practices in small and medium-sized…

Abstract

Purpose

The purpose of this study is to identify a comprehensive list of main enablers of successful implementation of green manufacturing (GM) practices in small and medium-sized enterprises (SMEs). Based on the inputs from Irish SMEs' experts, a validated conceptual hierarchy model of the identified enablers is developed to analyse and prioritise the most dominant ones.

Design/methodology/approach

Data were collected using a questionnaire survey responded by various professionals in Irish manufacturing SMEs. Experts' opinions were analysed using interpretive structural modelling (ISM) and cross-impact matrix multiplication applied to classification (MICMAC) to distinguish the mutual influences amongst the nine identified enablers.

Findings

The findings revealed that from the Irish SMEs' perspective, strong green supply chain relations are the outcome of successfully implementing GM and not a driver of the other enablers. Furthermore, lower manufacturing costs are found to arise as a result of GM practices in SMEs.

Practical implications

It is discussed that emulating the actions of larger companies will not necessarily yield the same results for SMEs. Innovation will become a cornerstone of remaining competitive in a sustainable environment, which is facilitated by closer green supply chain relations.

Originality/value

The reported findings in this article contribute to theory and practice of GM and SMEs research domains by systematically identified, classified and ranked enablers in a conceptual hierarchal model from the perspective of Irish SMEs. This research lays the foundations for further analysis of the GM practices enablers in a time when UN mandates and EU regulations are increasingly impacting SMEs all around Europe and especially Ireland.

Details

Journal of Manufacturing Technology Management, vol. 32 no. 1
Type: Research Article
ISSN: 1741-038X

Keywords

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