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Article
Publication date: 18 January 2022

Soojeen Jang, Yanghon Chung and Hosung Son

Through the resource-based view (RBV) and contingency theory, this study empirically investigates the impacts of smart manufacturing systems' maturity levels on the performance of…

Abstract

Purpose

Through the resource-based view (RBV) and contingency theory, this study empirically investigates the impacts of smart manufacturing systems' maturity levels on the performance of small and medium-sized enterprises (SMEs). Moreover, it aims to examine how industry types (i.e. high- and low-tech industries) and human-resource factors (i.e. the proportion of production workers to total workers) as contingency factors influence the effects of smart manufacturing systems.

Design/methodology/approach

The study conducted an empirical investigation of a sample of 163 Korean manufacturing SMEs. This study used an ordinary least squares regression to examine the impacts of the maturity levels of smart manufacturing systems on financial performance. Moreover, the impacts on operational efficiency were analysed using data envelopment analysis based on bootstrap methods and Tobit regression.

Findings

The RBV results indicate that the higher the maturity levels of smart manufacturing systems, the higher the financial performance and operational efficiency. Moreover, based on contingency theory, this study reveals that the effect of the maturity levels of smart manufacturing systems on financial performance and operational efficiency depends on firms' industry types and the proportion of production workers.

Research limitations/implications

This study shows that the introduction of smart manufacturing systems can help SMEs achieve better financial performance and operational efficiency. However, their effectiveness is contingent on firms' industry types and the characteristics of their human resources.

Practical implications

Since the effects of the maturity levels of smart manufacturing systems on SME performance differ depending on their industries and the characteristics of human resources, managers need to consider them when introducing or investing in smart manufacturing systems.

Originality/value

Based on the RBV and contingency theory, this is the first empirical study to examine the moderating effects of industry types and the proportion of production workers on the impacts of the maturity levels of smart manufacturing systems on the financial performance and operational efficiency of SMEs.

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.

Article
Publication date: 5 March 2024

Ramesh Krishnan

Smart manufacturing is revolutionizing the manufacturing industry by shifting the focus from traditional manufacturing to a more intelligent, interconnected and responsive system…

Abstract

Purpose

Smart manufacturing is revolutionizing the manufacturing industry by shifting the focus from traditional manufacturing to a more intelligent, interconnected and responsive system. Despite being the backbone of the economy and despite the government’s efforts in supporting and encouraging the transformation to smart manufacturing, small and medium enterprises (SMEs) have been struggling to transform their operations. This study aims to identify the challenges for SMEs’ transformation and the benefits they can get from this transformation, following a systematic review of existing literature.

Design/methodology/approach

A systematic review of existing literature has been performed to identify the peer-reviewed journal articles that focus on smart manufacturing for SMEs. First, a comprehensive list of keywords relevant to the review questions are identified. Second, Scopus and Web of Science databases were then used to search for articles, applying filters for English language and peer-reviewed status. Third, after manually assessing abstracts for relevance, 175 articles are considered for further review and analysis.

Findings

The benefits and challenges of SMEs’ transformation to smart manufacturing are identified. The identified challenges are categorized using the Smart Industry Readiness Index (SIRI) framework. Further, to address the identified challenges and initiate the SME’s transition toward smart manufacturing, a framework has been proposed that shows how SMEs can start their transition with minimum investment and existing resources.

Originality/value

Several studies have concentrated on understanding how smart manufacturing enhances sustainability, productivity and preventive maintenance. However, there is a lack of studies comprehensively analyzing the challenges for smart manufacturing adoption for SMEs. The originality of this study lies in identifying the challenges and benefits of smart manufacturing transformation and proposing a framework as a roadmap for SMEs' smart manufacturing adoption.

Details

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

Keywords

Article
Publication date: 11 July 2023

Sheshadri Chatterjee, Ranjan Chaudhuri and Demetris Vrontis

This study examines the significance of the hybrid offerings of servitization by manufacturing small and medium-sized enterprises (SMEs). This study also examines why and how…

Abstract

Purpose

This study examines the significance of the hybrid offerings of servitization by manufacturing small and medium-sized enterprises (SMEs). This study also examines why and how hybrid offerings matter for manufacturing SMEs. The study also investigates the moderating role of risk-taking ability (RA) and technology turbulence (TT) on manufacturing SMEs' performance.

Design/methodology/approach

This study has used literature from the areas of servitization, hybrid offerings and internationalization related to SMEs. Also, with the help of theories and literature, a model has been developed conceptually. This model has been validated using a structural equation modeling (SEM) technique on survey data collected from manufacturing SMEs.

Findings

This study finds the significance of manufacturing SMEs' servitization for internationalization effort. Also, this study highlights the moderating impacts of RA and TT on the performance of manufacturing SMEs.

Research limitations/implications

This study provides valuable inputs to the management of SMEs, especially practitioners that are involved in formulating strategies for hybrid offerings, including servitization activities for the manufacturing SMEs. This study also contributes to the overall body of literature on hybrid offering and servitization.

Originality/value

The study adds values to the overall body of literature for both servitization and internationalization. This study focuses mainly on the significance of hybrid offerings, including servitization by the manufacturing SMEs. Few studies have dealt with such hybrid offerings by manufacturing SMEs as part of the SMEs' internationalization effort. Thus, this study can be considered unique. Moreover, the study investigates the moderating role of RA and TT for SME performance, which adds value toward the body of knowledge in the extant literature.

Details

International Marketing Review, vol. 40 no. 4
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 28 January 2011

Zélia Serrasqueiro

The purpose of this paper is to analyze the importance of information asymmetry in the relationships between Portuguese SME's capital structure decisions and creditors, comparing…

2570

Abstract

Purpose

The purpose of this paper is to analyze the importance of information asymmetry in the relationships between Portuguese SME's capital structure decisions and creditors, comparing the results of service SME with those found in manufacturing SMEs.

Design/methodology/approach

Two samples of Portuguese SMEs are considered: one sample is composed by 610 unlisted service SMEs; and, the other sample is made up by 381 unlisted SMEs in manufacturing industry, for the period 1999‐2006. To estimate the results, the two‐step estimation method is used, to control possible bias arising from data selection. In the first step, probit regression is used. In the second step, after the control for possible data bias, dynamic panel estimators are used.

Findings

The results obtained suggest that information asymmetry in the relationships between SMEs and creditors has a greater relative influence on capital structure decisions of service SMEs than on those of manufacturing SMEs.

Practical implications

Given the increasing importance of service SMEs in the Portuguese economy for stimulating employment, business volume, and consequently economic growth, it would be advisable for policy makers to create special long‐term lines of credit, with advantageous terms, so that Portuguese service SMEs, when internal finance is insufficient, can finance more efficiently the growth opportunities and the strategies for diversification. In addition, since SMEs' capital structure decisions present differences, both concerning the sector of industry and over time, the measures adopted by policy makers should differentiate their measures between industry sectors and over time.

Originality/value

First, this paper is pioneering in comparing the adjustment of actual short‐ and long‐term debts, in service and manufacturing SMEs, towards the respective target ratios. Second, it is pioneering in using dynamic estimators and in using the two‐step estimation method, in studies of determinants of capital structure decisions of service and manufacturing SMEs.

Details

Management Research Review, vol. 34 no. 1
Type: Research Article
ISSN: 2040-8269

Keywords

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…

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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

Article
Publication date: 13 June 2018

Miia Martinsuo and Toni Luomaranta

Adopting additive manufacturing (AM) can be challenging, especially in small- and medium-sized enterprises (SMEs) and as part of the supply chains of larger firms. The purpose of…

2308

Abstract

Purpose

Adopting additive manufacturing (AM) can be challenging, especially in small- and medium-sized enterprises (SMEs) and as part of the supply chains of larger firms. The purpose of this paper is to explore SMEs’ perspectives on the adoption of AM in their specific supply chain positions. The paper develops new knowledge on the challenges SMEs face across the supply chain and the actions they need to promote the adoption of AM.

Design/methodology/approach

An exploratory interview-based research design is used. In total, 17 interviews were conducted and analyzed in four types of SMEs in their specific positions in AM supply chains. The challenges of adopting AM were mapped, and actions to promote AM adoption were identified.

Findings

SMEs in different supply chain positions experience different challenges when adopting AM. Strategic and operative actions are suggested as key solutions to overcome the challenges. The benefits of AM on a large scale will be achieved only if the broader supply chain adopts AM technology and experiences its benefits.

Research limitations/implications

The research is limited by its single-country context, its focus on SMEs, and the selection of early-phase AM-adopter firms. The findings imply a need to understand AM adoption as a shared concern and systemic innovation in the supply chain, instead of just a firm-specific implementation task.

Practical implications

The findings offer a framework for categorizing AM adoption challenges and propose ways to overcome the challenges of adoption.

Originality/value

The study reveals that AM adoption is not only a technology issue, but also an issue of strategic, organizational and operational challenges across the supply chain. It shows that when adopting AM, SMEs face particular challenges and require specific solutions according to their supply chain position.

Details

Journal of Manufacturing Technology Management, vol. 29 no. 6
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 7 March 2016

Malin Löfving

The purpose of this paper is to investigate the choices made in manufacturing decision categories by subcontractor small- and medium-size enterprises (SMEs) and determines if…

Abstract

Purpose

The purpose of this paper is to investigate the choices made in manufacturing decision categories by subcontractor small- and medium-size enterprises (SMEs) and determines if subcontractor SMEs make homogenous manufacturing choices.

Design/methodology/approach

A literature review was used to develop theoretical propositions. A multiple case study with 19 subcontractor SMEs was conducted.

Findings

Factors that might lead to homogenous choices in the manufacturing strategy decision categories were formalised into four theoretical propositions. The propositions were based on new institutionalism factors as well as SME factors. The findings reveal that there is considerable heterogeneity across the subcontractor SMEs in the various manufacturing decision categories. However, there are similarities between some manufacturing choices. This can partly be explained by the proposed factors and partly by other factors, such as SME characteristics and process choices.

Research limitations/implications

The study reinforces the need for more research that is focused on manufacturing decisions and choices in SMEs. All cases were of Swedish SMEs belonging to three different industries, potentially limiting the generalisability of findings to other industries or countries.

Practical implications

This study highlights the importance of the different choices made considering manufacturing and the factors influencing those choices. This provides guidance for managers when they make manufacturing choices in various decision categories.

Originality/value

By addressing new institutionalism, SME characteristics and decision categories in the same study, the author provides new insights into the categories of manufacturing decisions.

Details

Journal of Manufacturing Technology Management, vol. 27 no. 2
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 7 September 2015

Jos Mesu, Karin Sanders and Maarten van Riemsdijk

The purpose of this paper is to investigate whether the generally positive impact of transformational leadership on organizational commitment in large organizations can be…

7703

Abstract

Purpose

The purpose of this paper is to investigate whether the generally positive impact of transformational leadership on organizational commitment in large organizations can be extended to small- and medium-sized businesses (SMEs) in the manufacturing and service industry. The authors investigate the possible moderator effects of a participative and directive leadership style.

Design/methodology/approach

The collected data from 588 employees who rated 93 supervisors within 35 Dutch SMEs in both manufacturing and service industry. The authors analyse the nested data by means of multilevel modelling.

Findings

Transformational leadership, defined as visionary leadership and development stimulation, was positively related to organizational commitment for service SMEs, but not for manufacturing SMEs. While a participative leadership style did not moderate the relationship between transformational leadership and organizational commitment in either industry, a directive leadership style strengthened the relationship between transformational leadership and organizational commitment in manufacturing SMEs.

Research limitations/implications

Leaders in the service industry SMEs should engage in transformational leadership, whereas leaders in manufacturing industry SMEs should engage in other types of leadership. Future research should examine effective leadership in manufacturing.

Practical implications

As the results of this study suggest, a distinction should be made between manufacturing and service industry. The advice therefore needs to be twofold. Supervisors in manufacturing SMEs can best improve employees’ organizational commitment by intensifying transformational leader behaviour combined with a directive decision style. Supervisors in service SMEs do not have to combine transformational leader behaviour with a particular leader decision style, if they wish to be more effective.

Social implications

Demonstrating transformational leader behaviour can be successful in both manufacturing and service SMEs. However, in manufacturing companies this will only be effective when combined with a directive leader decision style.

Originality/value

Although SMEs most of the time are considered as one similar group in comparison to large organizations, the authors follow Hughes and Wood (1999; see also Stonehouse and Pemberton, 2002) who argue that because of their different products, customers, and labour it is important to disaggregate research on SMEs and differentiate between manufacturing and service SMEs.

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 distributors…

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. 37 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

11 – 20 of over 20000