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The ASEAN Economic Community (AEC) initiative poses both significant opportunities and difficult challenges to the Malaysian SME communities. This study aims to investigate the preparedness of the local SMEs to compete and exploit opportunities in a post-AEC era. The aim is to contribute to existing literature and knowledge base on SMEs’ practices in the ASEAN region. The manufacturing sector has been selected for study, and the research efforts focus on procurement competencies. SME procurement practices in the two largest manufacturing sub-sectors in Malaysia – resource-based (RB) and electrical and electronics (E&E) – are explored.

Preparedness for AEC is gauged from four key performance areas summarized from literature review. Six key research activities are also identified for each performance area from the findings of previous works. Data were collected using a survey instrument and face-to-face interviews. Research methodology is primarily qualitative with quantitative data for robustness check.

The findings reveal peculiar procurement practices in Malaysian SME manufacturers that have significant implications on their preparedness to compete effectively post-AEC. The findings also highlighted the key influences that have contributed to variations in Malaysian SMEs’ attitude toward trade liberalization challenges and business process improvements in comparison with practices in foreign firms and more advanced economies.

Theoretical models have been adopted across business settings and environments by managers. This study reveals managerial practices in Malaysian SME manufacturers run counter to developed theories. The peculiarities and business attitudes of this resilient economic sector can be an important input to managerial decision-making when analyzing business activities in the region.

The purpose of this study is to examine the subnational regional dimension of exports by small and medium-sized enterprises (SMEs) in India, one of the prominent emerging economies or “rising powers”.

To understand the forces driving the variation in subnational region’s share in international business of rising power SMEs, an analytical conceptual framework on regional export advantage (REA) was formulated based on the review of relevant theoretical and empirical literature. The model was estimated for Indian states using the most appropriate and recently developed econometric technique of fractional logit model.

The paper provides evidence that the emergence of exports by rising Indian power SMEs is geographically limited to a few select regions/states. Southern Indian states alone accounted for half of exports from SMEs in the organized manufacturing sector during 2000-2008, followed by Western India. The REA analysis has brought to the fore that regional stock of technological knowledge, availability of skill, port facilities, urban areas and foreign direct investment stocks are crucial factors determining states’ share in SME exports across technological subcategories. However, the size and sophistication of local demand continue to influence states’ efforts at enhancing exports by SMEs, at least those belonging to the medium- and high-technology categories.

The proposed empirical framework could be extended to include institutional and political economy factors. Its application to subnational regional shares in total exports by all firms taking into account fixed effects for regions may be another feasible line of future research.

Empirical findings recognize that appropriate strategies by subnational policymakers are important for a region to achieve a higher contribution in national SME exports. Subnational policy measures aimed at upgradation of regional technological assets and skill base through the promotion of technology clusters and R & D of local firms, facilitation and creation of better industry-university linkages and investments in education and training institution may help the states to gain higher export advantage.

This paper provides new analytics and insights into the role of subnational spaces in the internationalization of rising power SMEs from India and serves to contribute to the extant international business research that is predominantly occupied with “nation” as the unit of location.

Although foreign direct investment and entrepreneurship are potential routes to recovery (Girma and Wakelin, 2001; Lyon et al., 2002), existing literature is divided on the relationship between the two. The purpose of this paper is to examine the influence of foreign investment on the local SME sector after the 2008 financial crisis.

Local authority district data from Great Britain is used to examine the influence of foreign firm employment on the size of the local SME sector as a proportion of all firms, and foreign firm influence on firm births in the locality. In order to control for local geographical, infrastructural and economic conditions regression analysis is used to examine the relationship between foreign business employment and indigenous business activities.

The potential for technological spillovers and spinout activities appears to dominate with firm birth rates higher where there is greater foreign firm employment. However, there is also evidence of crowding out in relation to the existing SME sector, which is found to be reduced in size where foreign influence through employment is greater.

The results here indicating a complementarity relationship between foreign influence on employment and firm births is important for policy makers looking to revive struggling local economies. However, the relevant support needs to be in place to maximise the benefit from the supply of new entrepreneurs generated.

Unlike many other studies the relationship between the SME sector, firm births and foreign influence is considered at a local level and where economic conditions are more uncertain and economic recovery is less taken for granted. A better understanding of the relationship allows more appropriate policy to be developed in order to aid local economies to recover.

Guided by institutional theory, this empirical paper examines variations in the adoption of HRM practices among SMEs in three different business sectors (services, manufacturing and trade).

Data from 300 owners/managers representing three business sectors were collected through a survey method.

The results suggest that service SMEs use more formal HRM practices than manufacturing and trade SMEs. Manufacturing SMEs are more formal than trade firms. Results are not affected by firm age.

Social desirability bias may have influenced respondents into portraying a positive image of the organization by inflating HRM sophistication. A further limitation is that the performance of the firms was not measured. As such, it is not possible to judge whether greater HRM formality correlated with improved organizational performance.

This study shows how the business sector shapes HRM practices in Pakistani SMEs. Findings help to inform Pakistan's Small and Medium Enterprise Development Authority (SMEDA) in dealings with manufacturing and trade firms in terms of improving HRM practices.

Given the important role of SMEs in economic development, comparative research on HRM in SME contexts is scarce. Since SMEs are vital for Pakistan's economy, an improved understanding of the sector's approach to human resource development is important. The findings extend the boundaries of prior comparative HRM literature in SMEs by addressing sector influences while controlling for contextual factors.

The purpose of this paper is to investigate the data profile of manufacturing small and medium enterprises (SMEs) with specific emphasis on understanding the data readiness of SMEs for discrete event simulation (DES) modelling.

Research was conducted through a review of literature and a survey research strategy of manufacturing SMEs.

This paper illustrates the data profile of manufacturing SMEs. Insight is provided on the types of data collected by SMEs, the collection methods used and how these data are stored by the SMEs. Additionally size and age effects are considered. Based on this data profile, conclusions are made regarding an indication of data readiness of manufacturing SMEs for DES modelling.

This research is focused specifically on manufacturing SMEs in Ireland, other countries and sectors are not investigated.

This paper provides owner-managers and senior management insight into the data profile of manufacturing SMEs and their potential for utilisation of DES for performance improvement and decision support.

This paper addresses the gaps that exist in the knowledge of the data profile of manufacturing SMEs and consequently the status of this profile with regard to the readiness of SMEs for DES modelling.

The purpose of this paper is to present the findings of research carried out as part of an industrial project for selection of an enterprise resource planning (ERP) system in a made‐to‐order (MTO) small‐to‐medium enterprise (SME) scenario. It develops a framework or methodology for selection. It also highlights the areas pertaining to the unique needs of, first, the SME sector and, second, the MTO sector, to be considered while selecting a solution. A work book is developed to provide a structured ERP software selection process for SMEs using a comprehensive literature review plus practical experience. This research is potentially aimed at being useful to other SMEs as a guide for a structured selection process.

A combination of comprehensive literature review and experience of managing the selection process for an ERP system in an SME was employed for the study.

Over the past few years, the number of large companies buying new ERP systems has reached saturation point. This has led to the ERP developers seeking instead other potential markets among SMEs. The MTO scenario within the SME sector is one which is very capricious in terms of demand forecasting, lead times, routings, etc. When selecting a system, an organisation in such a segment needs a tailored methodology and a list of key target areas to consider.

The paper represents a very useful source of practical information for the SME sector to consider when selecting an ERP system.

The paper provides valuable insight into the details of ERP selection, focusing on the peculiarities of the SME MTO sector.

The purpose of this paper is to focus on three fundamental human-related behaviour factors associated with Lean Six Sigma (LSS) projects in German manufacturing small-and medium-sized enterprises (SMEs) on the readiness of people (managers and their staff) to commence LSS projects. These are core personal competence, strategic vision of the people and the organisational culture of the specific organisation.

Based on a thorough review of the academic literature a set of hypotheses were constructed to examine the level of association between people’s competence, vision and culture with LSS readiness within SMEs. This was done using correlation and regression analysis. Data collection were carried out in seven different German manufacturing SMEs involved in aerospace supply and agro-food manufacturing using a survey instrument.

It was found that there is a strong positive association between the core competence of people and organisational culture with readiness for commencing LSS in the manufacturing SMEs studied. The core values of people, education level and the vision of making continuous quality improvement were identified as key variables in promoting LSS readiness in these manufacturing SMEs. This study indicates that these “softer” variables can be essential to successful LSS implementation and need to be explored further before undertaking the process.

From the perspective of the implementers of LSS the results of this research could be of interest to different manufacturing SMEs intending to embark upon an LSS journey as it highlights the significance of human-related behavioural factors in the process. SME organisations may consider carrying out development or training with their managers and employees around personal and organisational values, addressing core competence and strengthening organisational culture in order to facilitate LSS readiness and enhance the prospect of its success.

It would appear that this LSS research has not been carried out within the German manufacturing SME context before and although discrete in nature has surfaced the “softer” variables of core competence of staff and organisational culture as important readiness issues to address when undertaking LSS. This integrated approach of human behavioural factors, organisational culture, LSS and manufacturing SMEs demonstrates the originality of the research.

The purpose of this paper is to increase understanding and knowledge of the impact of globalisation on African small and medium enterprise (SME) development. The contribution of SMEs to manufacturing industrialisation can be viewed in the context of the changing setting of globalisation. Globalisation is a description as well as a prescription. It can be broadly defined as closer economic integration as a result of rapid advances in technology, growth of world trade and competition, and policy changes towards economic liberalisation. Globalisation can also pose a challenge on how SMEs in Africa should brace themselves to respond to – and take advantages of – the changes, and carve an appropriate position in the global competitive economy.

The paper reviews and synthesises the eclectic literature and also draws from the experiences of both developed and developing economies.

The evidence from the literature points to several stumbling blocks that prevent African manufacturing SMEs from participating successfully in the global economy. These include problems with exports, technology, competitiveness and inter-firm linkages as well as barriers in the institutional and policy environments.

The paper will be useful to businesses, researchers, policy makers, civil society and others interested in understanding the impact of globalisation on manufacturing SME development.

The purpose of this paper is to empirically examine the influence of the internet on the internationalisation process and international customer relationship interactions of UK manufacturing small to medium‐sized enterprises (SMEs). The paper is positioned at the interface of the literature on international entrepreneurship and the internet.

The paper discusses the findings from multiple case studies of ten UK manufacturing SMEs from a variety of UK sectors, producing high‐, medium‐ and low‐tech offerings. In‐depth interviews with directors or managers of the SMEs were conducted. Individual and cross‐case analysis was carried out using coding frameworks to reduce and analyse the data and capture patterns in the findings.

The findings reveal how the influence of the internet in the internationalisation process and international customer relationship interactions differed in the high‐, medium‐or low‐tech SME categories. The influence of the internet differed across three main dimensions: the way in which the SMEs invested in and used different internet applications for internationalisation and customer relationship support, the SMEs' perceptions of the internet as a tool to support communication with international customers; the SMEs' reliance on more personal and interactive forms of contact with international customers.

The results demonstrate that the level of technological advancement of an SME's offerings has an important bearing on how these firms adopt the internet in their internationalisation process and gain advantages in their international customer interactions. The managerial implications of the study are relevant for manufacturing SMEs, their customers and government agencies involved with SMEs.

This research is amongst the first empirical contributions to examine the themes of the internet, internationalisation and international customer interactions in UK manufacturing SMEs and to highlight the importance of the level of technological advancement of an SME's offerings in distinguishing the ways in which the internet is used by entrepreneurial small firms in their internationalisation process.

This paper reports on research investigating the process of formation of manufacturing strategy in six UK manufacturing small and medium‐sized enterprises (SMEs). Realised manufacturing strategy can be considered to be the pattern formed in the stream of actions taken within a firm’s manufacturing function. The research aims to locate the source of that stream by identifying the causal origins of strategic manufacturing actions using a strategy charting method. The findings indicate that, for these companies, realised manufacturing strategy is predominantly formed through a bottom‐up emergent process, arising from the preferences of personnel within the manufacturing function. For most strategic manufacturing actions, there is no demonstrable link to business strategy. As such, these firms are not following best‐practice manufacturing strategy literature, which advises that manufacturing strategy be derived from business strategy in a top‐down deliberate process. This is the case despite differences in the size, products, customers, ownership structures and histories of the companies. The paper speculates that, in UK SMEs, more widely, manufacturing strategy may similarly not arise from the pursuit of business objectives. This may be because the concept of manufacturing as a potential strategic weapon is absent in the SME community, or because the formalised top‐down deliberate process of developing manufacturing strategy associated with this concept is inappropriate in the dynamic environments in which most SMEs operate.