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Article
Publication date: 26 January 2024

Innocent Otache

This study aims to explore the mediating role of competitive advantage and the moderating role of competitive intensity in the relationship between innovation capability (IC) and…

Abstract

Purpose

This study aims to explore the mediating role of competitive advantage and the moderating role of competitive intensity in the relationship between innovation capability (IC) and small and medium-sized enterprise (SME) performance and between strategic flexibility (SF) and SME performance.

Design/methodology/approach

The study adopted a survey research design. The data were collected from a conveniently selected sample of 159 SMEs in Nigeria using a self-reported questionnaire. Mediation and moderation analyses were performed using Hayes' PROCESS macro v3.

Findings

Results showed that IC and SF positively affect SME performance. Also, competitive advantage significantly mediates the relationship between IC and SME performance and between SF and SME performance. Additionally, competitive intensity positively and significantly moderates the relationship between IC and SME performance but fails to significantly moderate the relationship between SF and SME performance.

Practical implications

The findings have managerial implications for SME owners and managers. The findings suggest the need for SMEs to develop more IC and increase their SF. Thus, SME owners and managers should invest more in developing IC and SF. More specifically, they should invest more in research and development, the development of intellectual capital (consisting of human capital, structural capital and relational capital) and new technologies, products, services and processes. Also, they should nurture an innovation culture, encourage creative and innovative acts and allow employees to experiment with new ideas without hindrances.

Originality/value

To the best of the author’s knowledge, this study is the first to provide empirical evidence of the mediating role of competitive advantage and the moderating role of competitive intensity in the relationship between IC and SME performance and between SF and SME performance in the context of emerging economies such as Nigeria. The study validates dynamic capabilities theory by demonstrating that IC and SF are dynamic capabilities that give SMEs a competitive advantage and enhance their performance.

Details

African Journal of Economic and Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-0705

Keywords

Open Access
Article
Publication date: 15 November 2023

Sheila Namagembe and Musa Mbago

The study examined the influence of small and medium enterprise (SME) owner-managers' managerial competencies on supply chain performance, the mediation role of information…

Abstract

Purpose

The study examined the influence of small and medium enterprise (SME) owner-managers' managerial competencies on supply chain performance, the mediation role of information quality on the SME owner-managers' managerial competencies and supply chain performance relationship, the mediating role of information quality on the information sharing and supply chain performance relationship and the mediating role of both information sharing and information quality on SME owner-managers' managerial competences and supply chain performance relationship.

Design/methodology/approach

Data were collected from SME agro-processing firms. The determined sample size for the agro-processing firms was 200, while an effective sample size of 177 was obtained. The Covariance Structural Equation Modelling software was used to obtain results on the influence of SME owner-managers' managerial competencies on supply chain performance, the mediation role of information quality on the SME owner-managers' managerial competencies and supply chain performance relationship, the mediating role of information quality on the information sharing and supply chain performance relationship and the mediating role of both information sharing and information quality on SME owner-managers' managerial competences and supply chain performance relationship.

Findings

Findings indicated that a positive significant influence of SME owner-managers' managerial competencies on supply chain performance and the presence of partial mediation effects when the mediating role of information quality in the SME owner-managers' managerial competencies and supply chain performance relationship and the information sharing and supply chain performance relationship is tested. Also, a partial mediating role of information sharing and information quality is obtained in the SME owner-managers' managerial competencies and supply chain performance relationship.

Research limitations/implications

The study mainly focused on SME agro-processing firms eliminating other SME manufacturing firms. Also, the research employed a wholistic approach when studying the SME agro-processing firms without focusing on how SME owner-managers' managerial competencies would affect information sharing, information quality and supply chain performance based on the market type (local or foreign) and the source of raw materials (local or foreign) and the impact of information sharing on information quality hasn't been given significant attention in the existing literature.

Originality/value

The research focused on the mediation role of quality of information shared by SME owner-managers in the relationship between information sharing and supply chain performance, the mediating role of information quality in the SME owner-managers' managerial competencies and supply chain performance and the mediating role of both SME owner-manager's information sharing and quality of information shared in the relationship between SME owner-managers' managerial competences and supply chain performance. These mediation effects haven't been given significant attention in previous research. Further, while information sharing and information quality have been studied, they have been studied at a supply chain level, not at a managerial level.

Details

Modern Supply Chain Research and Applications, vol. 5 no. 4
Type: Research Article
ISSN: 2631-3871

Keywords

Book part
Publication date: 24 June 2017

Tom Cockburn, Khosro Jahdi and Cheryl Cockburn-Wootten

Specifically, this chapter reviews practical issues concerning how ethical values are developed to generate a sense of common purpose across two SME organizations, one in South…

Abstract

Specifically, this chapter reviews practical issues concerning how ethical values are developed to generate a sense of common purpose across two SME organizations, one in South America and the other in Spain. We used a survey questionnaire covering 12 thematic areas for the pilot study based upon two private language schools. We also critically reviewed literature on other business sectors and on SME clusters to discuss some emerging trends in preparing to be both “Right 4 Market” as well as “Right 2 Market.” This chapter provides information about each SME and its context, indicating what can be found there and how the information can help diverse SME across for-profit and not-for-profit sectors such as NGOs in both regions. It’s a first stage pilot for a yet to be completed study and it is based upon a very small convenience sample. Challenging the traditional business paradigm requires key factors embedded and embodied in organizational learning, systems, and innovation. Ethical capital accumulation relies on effective communications, culture, and evolving workplace custom and practice, as well as demographic factors. This chapter fulfils an identified information/resources need and offers some initial practical advice for SME and some insights for future researchers.

Details

Corporate Social Responsibility and Corporate Governance
Type: Book
ISBN: 978-1-78714-411-8

Keywords

Book part
Publication date: 28 March 2022

Mistrean Larisa, Buşmachiu Eugenia and Staver Liliana

Introduction: Micro and small and medium-sized enterprises (SMEs) represent approximately 99.7% of enterprises in the EU, USA, Japan and about 98.7% in the Republic of Moldova

Abstract

Introduction: Micro and small and medium-sized enterprises (SMEs) represent approximately 99.7% of enterprises in the EU, USA, Japan and about 98.7% in the Republic of Moldova. They provide two-thirds of private sector jobs and contribute more than half of the total value added created by existing businesses. Under these conditions, various action programmes are adopted to increase the competitiveness of SMEs through research and innovation and to improve access to finance. In addition, the impact of the COVID-19 pandemic has stimulated new reflections on economic recovery, reconstruction and strengthening the resilience of SMEs.

Aim: This chapter aims to give an overview of the SME development, the credit market, access to finance and leasing and to analyse the regulatory framework in terms of quantitative and qualitative criteria for SME classification and the advantages and shortcomings of credit guarantees in the Republic of Moldova. Moreover, in doing this it aims to examine the credit market trends in the SMEs sector and their impact on SMEs’ performance and development.

Method: This chapter uses quantitative data for trend analyses in order to investigate the SMEs access to the credit market, the effectiveness of SME potential funding sources in the Republic of Moldova and the impact of the pandemic on SME development.

Findings: The study found significant and positive role of the credit market in the SME sector development and positive impact on SME performance and economic development. Thus, the study concluded that in order for SMEs to remain competitive and profitable it is very important that they focus on innovation and continuously seek ways to access financial resources on the credit market. During the recent financial crisis, numerous commercial banks focussed considerable attention to SME funding via lending facilities and programmes specifically dedicated to the SME sector.

Originality of the Study: This chapter provides evidence on SME access to finance on the Moldovan credit market over the 2015–2020 period by using statistics on credit to both financial and non-financial markets and offers new insights into the topic area by emphasising the importance of the SMEs financing portfolio for the Moldova economic development.

Implications: The results of this chapter suggest that the future research would be aided by improvements in the collection of more data on the pandemic period and new financial techniques and practical products available on the credit market of SME.

Details

Managing Risk and Decision Making in Times of Economic Distress, Part B
Type: Book
ISBN: 978-1-80262-971-2

Keywords

Article
Publication date: 14 December 2023

Juan Martin Ireta-Sanchez

The purpose of this study is to identify the business strategies that entrepreneurs have formulated to establish the business with the intention of scaling up in the information…

Abstract

Purpose

The purpose of this study is to identify the business strategies that entrepreneurs have formulated to establish the business with the intention of scaling up in the information technology (IT) sector in Chile, given that they have managed to scale up sustainably at an average annual rate of 73.3% and an average annual employee growth rate of 37% for four consecutive years after an establishment period of 25 months.

Design/methodology/approach

Three methodological steps were used to identify which strategic initiatives are relevant to the establishment of small- and medium-sized enterprises (SMEs) on the path to scaling up. The first part consisted of identifying the literature and defining the research propositions and research questions. The second part was to prepare, collect and analyse the data to conduct the research by applying, transcribing, reviewing and coding the sources of evidence to explore how SMEs are able to develop strategic initiatives for the start-up process. The final stage was to validate the research proposal to identify potential strategic initiatives identified during the multi-case study.

Findings

As a result of the data analysis and empirical findings, three deliberate strategic initiatives were identified: staying engaged with customers, delivering successful business solutions and articulating social capital. However, in crisis situations, entrepreneurs readjust their strategies based on their management skills and an emergent strategic initiative was identified as securing the financial structure and revolutionising change. While this research was not designed to identify personal attributes, it did highlight the importance of adaptation and learning as a skill to drive the business model for scaling up during the establishment of their business.

Research limitations/implications

It is clear that the study focused on Chile and cannot be replicated in other regions or sectors due to the characteristics of the sample itself, but it provides empirical evidence that there are cycles prior to scale up that need to be understood. The findings were empirically validated during the establishment phase, but the deliberate and emergent strategic initiatives that consolidated the SME to prepare for its scale-up process are not evident in the theory.

Practical implications

The IT sector will continue to grow and change after the pandemic, and the global economy will use more digital systems, creating new ways of working with the use of IT. This context will impact on SMEs where strategies, whether deliberate or emergent, will need to be part of the new business models, and therefore, caution should be exercised when using the results of this study. Public and private institutions should educate and guide entrepreneurs for the potential scaling up of their SMEs without having to wait 42 months, according to Global Entrepreneurship Monitor 2021-2022 (Hill et al., 2022). Scaling up can begin as early as 25 months after establishment, breaking the paradigm of the theory that the SME must be established in a period of 3.5 years. This period cannot be generalised as business opportunities in the IT sector are faster. The research also contributes by reporting that contingency planning is relevant during the establishment phase.

Social implications

Educational institutions and the public sector have made efforts to change business cultures regarding the importance of strengthening entrepreneurship, but teaching the emergent strategies that often challenge SME creation is not yet widespread in educational formats. This is a challenge not only for institutions but also for entrepreneurs trying to anticipate the constant changes in the global economy. This research provides an opportunity to create more dynamic business models with more conscious risk planning.

Originality/value

Although the literature has confirmed the findings, this research has provided a pre-scaling picture that links these two important stages on the axis of deliberate and emergent strategies. The findings confirm the importance of correctly embedding five strategic initiatives for the establishment of the SME if it is to continue on its journey towards business scale-up. However, there is a lack of empirical evidence in emerging economies on how entrepreneurs have found the right path to scale-up.

Open Access
Article
Publication date: 27 September 2023

Deepak Kumar, B.V. Phani, Naveen Chilamkurti, Suman Saurabh and Vanessa Ratten

The review examines the existing literature on blockchain-based small and medium enterprise (SME) finance and highlights its trend, themes, opportunities and challenges. Based on…

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Abstract

Purpose

The review examines the existing literature on blockchain-based small and medium enterprise (SME) finance and highlights its trend, themes, opportunities and challenges. Based on these factors, the authors create a framework for the existing literature on blockchain-based SME financing and lay down future research paths.

Design/methodology/approach

The review follows a systematic approach. It includes 53 articles encompassing multiple dimensions of blockchain-based SME finance, including peer-to-peer lending platforms, supply chain finance (SCF), decentralized lending protocols and tokenization of assets. The review critically evaluates these approaches' theoretical underpinnings, empirical evidence and practical implementations.

Findings

The review demonstrates that blockchain-based SME finance holds significant promise in addressing the credit gap by leveraging blockchain technology's decentralized and transparent nature. Benefits identified include reduced information asymmetry, improved access to financing, enhanced credit assessment processes and increased financial inclusion. However, the literature acknowledges several challenges and limitations, such as regulatory uncertainties, scalability issues, operational complexities and potential security risks.

Originality/value

The article contributes to the growing knowledge of blockchain-based SME finance by synthesizing and evaluating the existing literature. It also provides a framework for the existing literature in the area and future research paths. The study offers insights for researchers, policymakers and practitioners seeking to understand the potential of blockchain technology in filling the SME credit gap and fostering economic development through improved access to finance for SMEs.

Details

Journal of Trade Science, vol. 11 no. 2/3
Type: Research Article
ISSN: 2815-5793

Keywords

Article
Publication date: 16 May 2023

Nisansala Wijekoon, Umesh Sharma and Grant Samkin

This paper aims to examine the perceptions of owners and accountants of small- and medium-sized entities (SMEs) on the users and their financial information needs of SME financial…

Abstract

Purpose

This paper aims to examine the perceptions of owners and accountants of small- and medium-sized entities (SMEs) on the users and their financial information needs of SME financial reporting.

Design/methodology/approach

Postal questionnaire surveys with owners and accountants of SMEs were used to identify users and their financial information needs. In total, 1,498 questionnaires were sent to SME owners and accountants. A total of 358 questionnaires were returned, generating 323 useable questionnaires. The management branch of stakeholder theory is used for the study which asserts that company management is expected to meet the expectations of those stakeholders who are more powerful than others.

Findings

The users of Sri Lanka SME financial information were limited to owners, banks and Department of Inland Revenue. Users and financial information needs of owners varied in relation to the size of the SME. Financial information are useful for making capital investment and planning decisions for owners regardless of the size of the SME. By sharing information with outside parties, disclosures can diminish information asymmetries between the firms and its stakeholders. The top three reasons for which owners use SME financial information are for planning purposes, estimating income tax liabilities, and taking marketing and pricing decisions.

Research limitations/implications

Since the study focuses only on the views of owner-managers and accountants of SMEs, the holistic understanding of uses of SME financial information by other user groups cannot be achieved.

Practical implications

The results of this study provide international and local standard setters with an indication of future direction for SME financial reporting.

Social implications

This paper extends existing knowledge on users and their financial information needs of SMEs in developing countries. Consequently, the findings of this paper make a valuable contribution to the work of practitioners such as local and international standards-setters and regulators who may be considering developing/revising financial reporting framework for SMEs either worldwide or in developing countries.

Originality/value

Although SME financial reporting has attracted enormous attention in the recent accounting literature, academic research into SME financial reporting is scant. This paper extends existing knowledge on users and their financial information needs of SMEs in developing countries. The general purpose financial reporting model and the accounting standard IFRS for SMEs in particular would not be applicable to Sri Lankan SMEs unless it modifies to reflect the financial information needs of users of Sri Lankan SME financial information.

Details

Journal of Accounting in Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2042-1168

Keywords

Article
Publication date: 13 July 2023

Victor Atiase, Yong Wang and Samia Mahmood

Training remains an important factor in developing the managerial effectiveness and capability of small and medium-sized enterprises (SMEs), yet there are concerns regarding the…

Abstract

Purpose

Training remains an important factor in developing the managerial effectiveness and capability of small and medium-sized enterprises (SMEs), yet there are concerns regarding the quality of training provided to SME managers in Ghana, hence the weak managerial capabilities observed in SME management. This study, therefore, examines the impact of managerial training on the effectiveness of SME managers in Ghana.

Design/methodology/approach

Drawing on the human capital theory (Becker, 1962; Rosen, 1977), this study employs the variance-based estimating technique, partial least square structural equation modelling (PLS-SEM) in estimating the effects of training on the managerial effectiveness of SME managers. Adopting a stratified random sampling technique, the study uses primary data collected from 506 SMEs in Ghana to test 4 hypothesised paths.

Findings

First, the model result indicates that training accessibility and training content are statistically significant in explaining managerial effectiveness at a 1% level. However, both training efficiency and training frequency are statistically insignificant in explaining managerial effectiveness in Ghana. Second, while the industry category is found to influence the relationship between training and managerial effectiveness, gender, manager's age and education are insignificant in explaining any effects.

Research limitations/implications

Though the sample size is large, the findings from this study could not be generalised to the whole of Ghana since it is regionally based. The study could benefit immensely from a triangulated method where a qualitative dimension could provide deeper insight into some of the findings in this study.

Originality/value

Studies of this nature focussing on the managerial effectiveness of SME managers in the Ghanaian context is rare. This is one of the few studies in the Ghanaian research context which focuses on the capability development approach in the delivery of managerial training to SMEs.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 29 no. 8
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 3 July 2023

Nathalia Suchek, João J.M. Ferreira and Paula O. Fernandes

Drawing on the resource-based view (RBV), this paper aims to analyse the relevance of Industry 4.0 (I4.0) technologies and participation in global value chains (GVC) and the…

Abstract

Purpose

Drawing on the resource-based view (RBV), this paper aims to analyse the relevance of Industry 4.0 (I4.0) technologies and participation in global value chains (GVC) and the effects of the complementarity between both in the adoption of circular economy (CE) actions by small and medium-sized enterprises (SME).

Design/methodology/approach

This paper analysed a large-scale international sample by employing logistic and linear regression models to test the research hypotheses on the effects of I4.0 technologies, GVC participation, and the interaction on CE actions (recycling or reusing materials, reducing the consumption and impact of natural resources, saving energy and/or switching to sustainable energy sources, developing sustainable products or services).

Findings

The evidence suggests that I4.0 technologies already represent important resources for CE adoption and SME participating in GVC display a greater likelihood of adopting CE actions. From the perspective of resource complementarity, by interacting the two factors viewed as resources in this article, results may report that adopting I4.0 technologies and simultaneously participating in GVC may turn out detrimental to SME undertaking CE actions, specifically as regards recycling and reusing materials, saving energy or switching to sustainable energy sources and in cases of widely adopting CE practices.

Originality/value

The paper returns novel insights into the adoption of CE practices by presenting evidence that I4.0 technologies and participation in GVC may be successful means for SME seeking to implement CE actions but must be combined carefully. This paper also provides theoretical and practical implications for SME managers, firms participating in GVCs and policy makers, and shedding light on new research avenues.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 16 November 2022

Christine Weigel and Martin R.W. Hiebl

Small- and medium-sized enterprises (SMEs) carry huge economic importance worldwide. At the same time, SMEs face specific challenges, some of which may be alleviated by employing…

Abstract

Purpose

Small- and medium-sized enterprises (SMEs) carry huge economic importance worldwide. At the same time, SMEs face specific challenges, some of which may be alleviated by employing accountants. However, research on the role and impact of accountants in SMEs has long remained fragmented and scarce. This paper aims to encourage more research on accountants in SMEs by providing the first comprehensive and systematic review of relevant research.

Design/methodology/approach

Based on systematic review methods, the authors critically examine 68 research articles dealing with accountants in SMEs.

Findings

The review identifies three dominant roles for accountants in SMEs: providers of reporting services, sources of SME owners’ self-validation and translators between capital providers and SMEs and advisors. Implicitly, many studies assume a value-enhancing effect of employing accountants in SMEs regardless of these specific roles. At the same time, available studies seldom make use of existing theoretical frameworks to more closely analyze the value-enhancing potential of human resources such as accountants. The authors, thus, propose the resource-based view as a robust theoretical framework to improve theory building in research on accountants in SMEs.

Originality/value

To the best of the authors’ knowledge, this paper is the first systematic review of accountants in SMEs. In addition, the authors develop a resource-based model on accountants in SMEs to guide future research on this topic.

Details

Journal of Accounting & Organizational Change, vol. 19 no. 5
Type: Research Article
ISSN: 1832-5912

Keywords

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