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Article
Publication date: 11 October 2021

Sheila Namagembe, Joseph Ntayi Mpeera and Awad Kalid

This study aims to examine the influence of market logics on tendering capabilities and small and medium enterprise (SME) involvement in public procurement, the influence of SME

Abstract

Purpose

This study aims to examine the influence of market logics on tendering capabilities and small and medium enterprise (SME) involvement in public procurement, the influence of SME governance mechanisms on tendering capabilities and SME involvement in public procurement and the influence of tendering capabilities on SME involvement in public procurement.

Design/methodology/approach

Data was collected from owners/managers of SMEs registered by the Public Procurement and Disposal of Public Assets Authority. The SPSS software and CB-SEM software were used to obtain results on the influence of market logics on tendering capabilities and SME involvement in public procurement, the influence of SME governance mechanisms on tendering capabilities and SME involvement in public procurement and the influence of tendering capabilities on SME involvement in public procurement.

Findings

Findings indicated that SME involvement in public procurement is mainly influenced by their governance mechanisms whilst both market logics and governance mechanisms had a positive influence on tendering capabilities of SME firms. Market logics and tendering capabilities had no effect on SME involvement.

Research limitations/implications

The study mainly focussed on SMEs’ involvement in public procurement. The research has implications for decision makers in government and SME firms concerned with enhancing levels of SME involvement in public procurement activities.

Originality/value

Many governments are now focussing on procurement lot sizing so as to increase SME involvement in public procurement. Despite the use of lot sizing, SME involvement in public procurement is still low in many developing countries and also declining in others. Aspects such as market logics and governance mechanisms that may help understand the variations in involvement have not been given significant attention.

Article
Publication date: 14 March 2023

Jong-Seok Kim and Dongsu Seo

This study aims to predict artificial intelligence (AI) technology development and the impact of AI utilization activity on companies, to identify AI strategies dealing with the…

1079

Abstract

Purpose

This study aims to predict artificial intelligence (AI) technology development and the impact of AI utilization activity on companies, to identify AI strategies dealing with the broad innovation activity of AI, and to construct the strategic decision-making framework of AI strategies for a small- and medium-sized enterprise (hereafter SME), to improve strategic decision-making practices of AI strategy in SMEs.

Design/methodology/approach

This study used the multiple methods on the design of two data collection stages. The first stage is an expertise-based approach. It organized the three groups of expert panels and conducted the Delphi survey on them in combination with the brainstorming of technology, innovation and strategy in the fourth industrial revolution. The second stage is in the complement approach of expertise-based results. It used the literature review to involve the analysis of academic and practical papers, reports and audio materials relating to technology development, innovation types and strategies of AI. Additionally, it organized the four semi-structured interviews. Finally, this study used the mind-map and decision tree to conduct each analysis and synthesize each analytical result.

Findings

This study identifies the precondition and four paths of AI technological development classifying into specialized AI, AI convergence with other technologies, general AI and AI control methods. It captures the impact of non- and technological innovation through AI on companies. Second, it identifies and classifies the six types of AI strategy: the bystander, capability-building, capability-holding, management-enhancing, market-enhancing and new-market-creating strategy. By using the decision tree, it constructs the strategic decision-making framework containing six AI strategies. Actionable points, strategic priorities and relevant instruments are suggested.

Research limitations/implications

The strategic decision-making framework covering from AI technology development to utilization in a SME can help understand the strategic behaviours in SMEs. The typology of six AI strategies implies the broad innovation behaviours in SMEs. It can lead to further research to understand the pattern of strategic and innovation behaviour on AI.

Practical implications

This practical study can help executives, managers and engineers in SMEs to develop their strategic practices through the strategic decision framework and six AI strategies.

Originality/value

This practical study elicits the six types of AI strategy and constructs the strategic decision-making framework of six AI strategies from AI technology development to utilization. It can contribute to improving the practices of strategic decision-making in SMEs.

Open Access
Article
Publication date: 18 September 2023

Thomas Anning-Dorson

The business landscapes in Asia and Africa are predominantly characterized by small and medium enterprises (SMEs) facing significant resource constraints. Understanding the…

Abstract

Purpose

The business landscapes in Asia and Africa are predominantly characterized by small and medium enterprises (SMEs) facing significant resource constraints. Understanding the capability dynamics of these enterprises in such contexts carries significant implications for theory and practice. This paper aims to addresses a crucial question of whether increasing customer involvement capability consistently yields the necessary rent for enterprises operating under resource constraints in emerging markets in Asia and Africa. By investigating this question, the paper offers SMEs a more nuanced approach to capability development, enabling them to achieve better returns on their investments.

Design/methodology/approach

To ensure the robustness of the findings, data were collected from SME service firms operating in two emerging economies: India (Asia) and Ghana (Africa). Data were collected in two waves to allow for catering to specific environmental conditions not accounted for in the study. Two-stage data analysis was then conducted to test the hypothesized relationships across the two countries.

Findings

The findings reveal that customer involvement capability does not always lead to an increase in firm-level competitiveness, and the effect follows an inverted U-shaped pattern. However, the nature of this relationship varies under different market conditions in both contexts. Specifically, in periods of low customer demand and intense competition, the relationship is linear and positive. On the other hand, in periods of high demand and competition, the relationship becomes inverted U-shaped, returning to a direct relationship with firm-level competitiveness.

Originality/value

This paper provides a resolution to the critical issue of whether customer involvement capability consistently delivers firm performance benefits, particularly for resource-constrained SMEs in emerging markets. By explaining how SMEs in emerging markets can fully capitalize on their capability development to optimize their resources, this paper makes a distinctive contribution. Moreover, it sheds light on the importance of aligning involvement capabilities with prevailing market conditions for SMEs to reap the maximum benefits.

Details

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

Keywords

Article
Publication date: 25 March 2020

Temidayo O. Akenroye, Jonathan D. Owens, Jamal Elbaz and Olatunde A. Durowoju

Although small- and medium-sized enterprises (SMEs) play major roles in most economies in terms of job creation, innovation and contribution to national income, they are often…

2034

Abstract

Purpose

Although small- and medium-sized enterprises (SMEs) play major roles in most economies in terms of job creation, innovation and contribution to national income, they are often underrepresented in public procurement markets. This paper aims to explore how the dynamic capabilities theory can improve SME participation in public procurement.

Design/methodology/approach

Through a systematic literature review, the paper identifies common barriers to the effective participation of SMEs in public procurement and explores the applicability of the dynamic capabilities theory in addressing these barriers.

Findings

A theoretical analysis was conducted to identify possible relationships between the factors reported in the literature as barriers to SME participation in public procurement and different components of the dynamic capabilities of firms (i.e. sensing, seizing, reconfiguring and learning). Seven key propositions were generated to guide future research.

Research limitations/implications

Despite its contributions, this paper is based solely on a systematic literature review and theoretical analysis. Future studies could use meta-analysis to review multiple studies relating to the nexus between SMEs and public procurement, hence improving methodological rigour.

Practical implications

The paper contributes to the ongoing debate about whether and how SMEs can leverage their resources and capabilities to develop self-help strategies to improve participation in public procurement, an area yet underexplored in the literature.

Originality/value

This is one of the few studies examining the implications of firm-level capabilities of SME activity in public procurement markets. The findings may be beneficial to SME managers/owners, particularly regarding firms' ability to leverage resources and capabilities to participate effectively in public procurement.

Details

Business Process Management Journal, vol. 26 no. 4
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 21 October 2013

Šarūnas Nedzinskas, Asta Pundzienė, Solveiga Buožiūtė-Rafanavičienė and Margarita Pilkienė

This paper aims to examine the influence of the dynamic capabilities of small and medium enterprises (SMEs) on organizational performance, and the interaction between dynamic…

3646

Abstract

Purpose

This paper aims to examine the influence of the dynamic capabilities of small and medium enterprises (SMEs) on organizational performance, and the interaction between dynamic capabilities and organizational inertia in a volatile environment.

Design/methodology/approach

A quantitative survey was carried out in Lithuania's SME sector. In order to achieve the aim of this empirical research, a sample of 360 SMEs was analyzed.

Findings

This exploratory study offers a conceptual model for dynamic capabilities and organizational inertia in a volatile environment. The findings suggest that dynamic capabilities have positive effects on non-financial relative organizational performance, though no impact on financial relative organizational performance has been revealed. The authors argue that organizational inertia moderates dynamic capabilities and relative organizational performance.

Research limitations/implications

One suggestion for further research is to investigate the interaction between dynamic capabilities and organizational inertia in a stable environment and to perform longitudinal research embracing a broader sample of organizations.

Originality/value

The study addresses a gap in strategic management literature and practice, examining the interaction between SME dynamic capabilities and organizational inertia in a volatile environment during an economic crisis.

Details

Baltic Journal of Management, vol. 8 no. 4
Type: Research Article
ISSN: 1746-5265

Keywords

Article
Publication date: 1 April 2017

Anthony Flynn and Paul Davis

This paper develops and tests a model for explaining small and medium-size enterprise (SME) participation and success in public procurement. The model is informed by a capability

Abstract

This paper develops and tests a model for explaining small and medium-size enterprise (SME) participation and success in public procurement. The model is informed by a capability-based view of public sector tendering that includes relational and procedural dimensions. To test the model a survey was carried out on firms competing for contracts with Irish public sector organizations (n = 3010). The survey was repeated one year later to demonstrate reliability (n = 3092). Overall, the results lend support to the model. Procedural capability is associated with frequency of tendering and typical value of contract sought. Relational capability is not. Procedural and relational capabilities are each significant in accounting for success rates in contract competitions and commercial orientation towards the public sector.

Details

Journal of Public Procurement, vol. 17 no. 3
Type: Research Article
ISSN: 1535-0118

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: 30 November 2021

Perengki Susanto, Mohammad Enamul Hoque, Najeeb Ullah Shah, Andel Hopi Candra, Nik Mohd Hazrul Nik Hashim and Nor Liza Abdullah

Small and medium-sized enterprises (SMEs) are an important contributor to emerging countries’ economic growth. However, SMEs have been struggling to sustain their performance in a…

3627

Abstract

Purpose

Small and medium-sized enterprises (SMEs) are an important contributor to emerging countries’ economic growth. However, SMEs have been struggling to sustain their performance in a highly competitive environment. Thus, this study aims to re-examine the effect of SMEs’ entrepreneurial orientation (EO) on firms’ performance during the COVID-19. This study has also studied the moderating role of social media usage and the mediating role of marketing capabilities and social media usage.

Design/methodology/approach

This study used a structured questionnaire for data collection, where the unit of analysis was the manager or owner of SMEs. The data were analyzed using partial least square-structural equation modeling.

Findings

The findings show that an EO has a significant and positive effect on an SME’s performance, but the outcomes are conditional on the role of social media and marketing capabilities. The empirical results reveal that marketing capabilities significantly mediate the relationship between EO and SME performance. In addition, social media usage moderates the relationship between EO and SME performance and it also partially mediates the EO-performance nexus of SMEs. Finally, this study discovers that the EO-Performance nexus of SMEs is serially mediated by social media usage and marketing capabilities.

Research limitations/implications

This study has important implications for SMEs that are seeking to gain a competitive advantage. For example, an SME should deploy market activities through social media channels. In situations such as a pandemic and uncertainty, this could be the most effective tool.

Originality/value

This study builds a theory-based mediation-moderation model to explain the link between EO and SME performance. In explaining mediation-moderation effects, the current study provides insight into EO-performance relationships. Moreover, the current model facilitates exploring whether serial mediation passes through social media usage and market capabilities. Therefore, with new findings, the study extends the literature on serial mediation in the EO-performance of SMEs. Additionally, this study extends the literature on the moderating role of social media on SMEs in Indonesia, which has not been investigated. Besides, the current study adds new insight into the EO-performance of SME in COVID-19 condition.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 15 no. 2
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 10 January 2023

Oliver William Jones, David Devins and Greg Barnes

The paper is a proof of concept (PoC) intervention study aimed for developing performance management (PM) practices in manufacturing small and medium-sized enterprises (SMEs) with…

827

Abstract

Purpose

The paper is a proof of concept (PoC) intervention study aimed for developing performance management (PM) practices in manufacturing small and medium-sized enterprises (SMEs) with the longer-term aim enabling the SMEs to improve their productivity. The intervention was designed and deployed by a collaborative quartet of academics, management consultants, accountancy firm and a commercial bank manager.

Design/methodology/approach

The paper firstly musters a set of initialising PM practices aligned to productivity improvement. These are utilised to design a knowledge transfer intervention for deployment with a set of manufacturing SMEs incorporating some associated productivity tools. The evaluation of the intervention utilised a case study approach founded on a logic model of the intervention to assess the development of the PM practices.

Findings

The intervention contributed to a partial development of the mustered practices and the productivity diagnostic based on the multi-factor productivity (MFP) abstraction and a data extraction protocol had the strongest impact. The study revealed the importance of the three interlaced factors: Depth of engagement, feedback opportunities and the intervention gradient (the increase of independent action from the participating SME's and the diminishment of the external intervention effort).

Research limitations/implications

The case study is based on a limited number of individual SME's, and within just the manufacturing sector.

Practical implications

SME businesses will require a more sustained programme of interventions than this pilot to develop PM capability, and depth of engagement within the SME is critical. Professional stakeholders can be utilised in recruitment of firms for intervention programmes. Business can start developing PM capability prior to PMS implementation using the tools from this programme.

Originality/value

The productivity diagnostic tool, based on a synthesis of MFP and the performance pyramid, an array of potential initialising practices for PM capability and discovery of potential mechanisms for PM practice development.

Details

International Journal of Productivity and Performance Management, vol. 73 no. 1
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 4 June 2018

Byoungho Jin and Hyeon Jeong Cho

The purpose of this paper is to extend our understanding of the development of small- and medium-sized enterprise (SME) organizational capabilities and their contributions to…

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Abstract

Purpose

The purpose of this paper is to extend our understanding of the development of small- and medium-sized enterprise (SME) organizational capabilities and their contributions to export performance by incorporating two antecedents: one from the internal environment (international entrepreneurial orientation) and another from the external environment (domestic market competition).

Design/methodology/approach

A proposed framework built on resource-based view and contingency theory was tested using partial least squares with data collected from 470 Korean SMEs.

Findings

International entrepreneurial orientation and domestic market competition both prompted SMEs to develop their technological and marketing capabilities, leading to enhanced performance in international markets. Full mediating effects of technological and marketing capabilities were discovered between international entrepreneurial orientation and export performance.

Practical implications

Given the direct effect of organizational capabilities on export performance, SMEs should facilitate the spirit of international entrepreneurial orientation and heightened managerial awareness of domestic market competition to efficiently cultivate organizational capabilities.

Originality/value

Unique findings indicate that SME capabilities can be optimally cultivated under the coexistence of an internal impetus (i.e. international entrepreneurial orientation) and a harsh external environment (i.e. domestic competition), demonstrating the significance of context in developing organizational capabilities.

Details

Journal of Business & Industrial Marketing, vol. 33 no. 5
Type: Research Article
ISSN: 0885-8624

Keywords

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