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Article
Publication date: 1 March 2014

Caroline Nicholas and Michael Fruhmann

This paper will consider the rationale and effectiveness of SMEsupport policies in the award of public procurement (PP) contracts. One group of economic justifications for SME…

3079

Abstract

This paper will consider the rationale and effectiveness of SMEsupport policies in the award of public procurement (PP) contracts. One group of economic justifications for SME policies derives from the notion that awarding PP contracts to SMEs (and micro-enterprises) encourages innovation, entrepreneurship and so contributes to job creation, economic growth and can support local and regional developments to the benefit of wider society. The link between SMEs, innovation and economic growth has often been assumed in PP policy-making. While some studies show higher growth rates in small than larger firms, others indicate, to the contrary, that many micro and small enterprises, and particularly informal businesses, are not actively seeking to grow. This paper will assess how effective SME policies may be, and questions the extent to which they are properly evaluated.

Details

Journal of Public Procurement, vol. 14 no. 3
Type: Research Article
ISSN: 1535-0118

Article
Publication date: 4 September 2017

Hande Karadag

Small- and medium-sized enterprises (SMEs) are crucial for socio-economic growth due to their significant role in creating new workforce, gross domestic product increase…

2928

Abstract

Purpose

Small- and medium-sized enterprises (SMEs) are crucial for socio-economic growth due to their significant role in creating new workforce, gross domestic product increase, innovation and entrepreneurship. This paper aims to examine financial management performance in SMEs with regard to industry, firm age and education level of owner/managers differences.

Design/methodology/approach

The data used in the study are collected from 188 SMEs through structured questionnaires, and three hypotheses regarding the associations are tested by using structural equation modeling.

Findings

Findings of one-way ANOVA tests indicate that performance in financial management practices has a strong and positive correlation with education level of small business owner/managers, whereas no significant difference is found regarding SMEs operating in different industries. For the impact of company age, independent samples t-test is conducted, and a meaningful difference between small- and medium-sized companies which are five years or older and younger is found.

Research limitations/implications

This study shows that a significant difference for age of an SME is present between over and under five-year-old SMEs, with respect to financial management performance, which is an important finding for both small business and financial management literatures. The tests regarding the particular hypotheses about education level of SME owner/managers indicate that education level of SME owner/managers significantly impacts financial management performance.

Practical implications

The present study provides important practical implications. First, the importance of education level of owner/managers on SME financial performance is highlighted. Second, strong empirical support is found for the impact of company age on SME performance, which might be discussed as the importance of accumulation of knowledge of the owner/managers and the changes required with the growth patterns of the company, with increasing company age. Third, the study shows that industry differences do not exhibit a significant performance variation factor in financial management of SMEs, with respect to other demographic factors. Overall, these contributions help us better understand the financial management performance indicators in small and medium sized businesses.

Originality/value

This study focuses on company age, education level and industry differences with respect to financial management performance in SMEs in emerging economies, therefore provides additional empirical evidence to a research area where very few empirical studies exist.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 9 no. 3
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 1 May 2015

Graciela Corral de Zubielqui, Janice Jones, Pi-Shen Seet and Noel Lindsay

The purpose of this paper is to understand how and why small to medium enterprises (SMEs) access knowledge from external actors in general and from higher education institutions…

2070

Abstract

Purpose

The purpose of this paper is to understand how and why small to medium enterprises (SMEs) access knowledge from external actors in general and from higher education institutions (HEIs) in particular and what is the extent to which these knowledge access pathways affect SME innovativeness.

Design/methodology/approach

The paper involved both quantitative and qualitative approaches: a survey of 1,226 SMEs and a mini case study to follow-up on issues arising from the survey analysis. Survey data were analysed using both non-parametric and multivariate Poisson regression analysis. The case study was based on a medium-sized manufacturing firm in South Australia.

Findings

While there are significant differences between the micro-, small- and medium-sized enterprises, the evidence suggests that SMEs generally use “generic” university–industry knowledge transfer pathways (e.g. published research results) rather than university–industry links with high “relational” involvement. More significantly, the results indicate that SMEs are more likely to rely on organisations other than universities and related R&D enterprises for knowledge acquisition like clients/customers or suppliers. While collaboration is most likely to occur within the same state/territory, or Australia, many SMEs also collaborate internationally, usually as part of normal supplier–customer relationships, reinforcing knowledge acquisition from organisationally proximate partners. These findings are also supported by the case study.

Research limitations/implications

This research was limited to surveying SMEs in one geographic (metropolitan) region in Australia. It also does not account for the different patterns of HEI–SME interactions in different industry sectors. There is also only one case study.

Originality/value

First, the research adds to the few field studies that have investigated accessing knowledge for innovation among SMEs. Specifically, the research contributes to an understanding of the heterogeneous roles that different actors play in facilitating knowledge access for improving innovative SMEs outcomes. Second, the research does not treat all SMEs similarly in terms of size effects but instead accounts for differing SME sizes and how this affects their selection of knowledge access pathways. Third, the research contributes to a small number of studies that attempt to understand how HEIs and SMEs can work better together in the context of a regional innovation system, especially one that is relatively less competitive to the larger economy.

Details

Journal of Business & Industrial Marketing, vol. 30 no. 3/4
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 1 November 1997

Gerald Vinten, David A. Lane and Nicky Hayes

There can be no doubt that the small and medium sized enterprise (SME) plays a pivotal role in most if not all economies, and that social policy makers have an interest in…

1787

Abstract

There can be no doubt that the small and medium sized enterprise (SME) plays a pivotal role in most if not all economies, and that social policy makers have an interest in ensuring the viability of this sector of the economy, which plays a crucial role in the contract culture of national and international competitiveness. Quite apart from the essential symbiosis between the large multinationals and public limited companies and this sector, the sustainability of unemployment benefit payouts would be jeopardised should the sector experience a significant downturn. There are already worldwide concerns about the ability to continue to finance state pensions at anything like the present scale, and any loss of viability of the SME sector will simply exacerbate this situation. There are also useful reciprocations to be achieved by comparisons across sectors, including in significant areas such as internal control (Vinten, Lane, Hayes, 1996). The recent flurry of activity has included initiatives of the Institute of Chartered Accountants of England and Wales 1996) and the information needs of owners (Institute of Chartered Accountants of England and Wales 1996a), an Auditing Practices Board (1996) Practice Note, and a Department of Trade and Industry Consultation Document (DTI 1996).

Details

Management Research News, vol. 20 no. 11
Type: Research Article
ISSN: 0140-9174

Article
Publication date: 16 February 2023

Peter Fluhrer and Taiga Brahm

The concept of positioning is fundamental to how a company approaches and succeeds in a market. Despite a growing body of literature on positioning, existing research has focused…

Abstract

Purpose

The concept of positioning is fundamental to how a company approaches and succeeds in a market. Despite a growing body of literature on positioning, existing research has focused mainly on larger companies and brands. This paper aims to apply the concept of positioning to small- and medium-sized enterprises (SME) companies to explore how SME entrepreneurs understand and approach the positioning of their company, and what differences exist compared to large companies and brands.

Design/methodology/approach

Using a qualitative research approach, this study is based on focus groups involving 13 SME entrepreneurs. The data were analyzed using a qualitative structuring content analysis, which resulted in a newly developed and empirically based typology of SME positioning strategies.

Findings

The results indicate that SME entrepreneurs view positioning as highly relevant but differ from larger companies in terms of market and brand orientation. Building on the interviews, an empirical matrix of four positioning strategies was developed which SME entrepreneurs typically use: specialization, differentiation, conviction and opposition.

Practical implications

Based on the developed positioning typology, this study proposes a two-step approach for SME entrepreneurs: gaining clarity on the basic positioning dimensions and exploring four strategic fields of action.

Originality/value

Overall, the findings contribute to a better understanding of SME entrepreneurs' positioning strategies as important building blocks for market and brand success. The new positioning typology provides a conceptual contribution for further research in the marketing/entrepreneurship interface.

Details

Journal of Research in Marketing and Entrepreneurship, vol. 25 no. 3
Type: Research Article
ISSN: 1471-5201

Keywords

Open Access
Article
Publication date: 4 May 2021

Marian Crowley-Henry, Edward P. O'Connor and Blanca Suarez-Bilbao

This micro-level study unpacks the recruitment and retention of international professionals to small and medium-sized enterprises (SMEs). The study highlights the influence of the…

2328

Abstract

Purpose

This micro-level study unpacks the recruitment and retention of international professionals to small and medium-sized enterprises (SMEs). The study highlights the influence of the founders' international experience when applying organisational-level (meso) policies and practices. With their insider experience as skilled migrants, we share how the founders in each of the SMEs mobilised career capital into human resource management (HRM) strategies.

Design/methodology/approach

Combining literature on SMEs and skilled migrants' careers, we draw upon intelligent career theory to illuminate the recruitment and retention of self-initiated expatriates and skilled migrants in SMEs. With three SME case studies as samples–one micro, one small and one medium-sized organisation in Ireland–we consider the influence of the founders' international experience in the design and application of formal and informal HRM strategies (at the organisational level) that are operationalised to recruit and retain international talent to/in these organisations.

Findings

The HRM practices in the three SME cases in this paper, each run by migrant founders, vary from formalised (for our medium-sized organisation), semi-formalised (for our small-sized organisation) to ad hoc and tailor-made (for our micro-sized organisation). These particular SMEs were often more receptive to hiring other migrants. The important role of the three SME case studies' skilled migrant founders and their own international career experiences was apparent in the particular HRM approaches they adopted. The relevance of intelligent career theory when applying micro-level findings at the meso-organisational level is shown.

Originality/value

The paper presents how the international experience of founder–managers, in turn, impacts on the HRM practices and policies that are implemented to recruit and retain international employees. The study highlights how both organisation size and founder-manager international experience influence the degree of customisation of HRM practices and policies in SMEs, specifically pertaining to the recruitment and retention of self-initiated expatriates and skilled migrant employees. The heterogeneity within the sub-categories encompassed under the umbrella label of SME is emphasised; validating our case study approach, where nuance and detail of the specific organisation can be shared.

Details

Journal of Global Mobility: The Home of Expatriate Management Research, vol. 9 no. 2
Type: Research Article
ISSN: 2049-8799

Keywords

Article
Publication date: 27 April 2010

Suzanne Richbell, László Szerb and Zsuzsanna Vitai

This paper aims to provide an original picture of a selection of human resource management (HRM) activities in the micro, small and medium sized enterprises (SMEs) in Hungary and…

3090

Abstract

Purpose

This paper aims to provide an original picture of a selection of human resource management (HRM) activities in the micro, small and medium sized enterprises (SMEs) in Hungary and to explore the extent to which these activities can be related to variations in firm size and variations in firm performance.

Design/methodology/approach

The study measures the presence or absence of a selection of HRM activities through a questionnaire survey of a large sample of 678 Hungarian SMEs.

Findings

Hungarian SMEs, in their working relationships, are closer to the “happy family” model of the SME than the “bleak house” model. Employee morale was perceived as high and only one in ten SMEs felt their employees were opposed to change. Owners were reluctant to seek advice from those outside the firm. They also showed reluctance to discuss future plans with their employees although they did tend to consult employees who would be affected directly by any change. Communication within SMEs was predominantly informal. Surprisingly, given the skills shortages highlighted by SMEs in other economies, very few of the Hungarian SMEs identified skills shortages as a problem and formal training programmes were reported only rarely. Variations between micro, small and medium sized firms are highlighted to emphasize the heterogeneous nature of the Hungarian SME sector.

Research limitations/implications

The HRM activities considered provide a picture of only a small number of HRM activities in Hungarian SMEs but the findings imply the relationships examined here are deserving of further exploration both in Hungary and other transition economies.

Originality/value

The paper provides a detailed picture of selected aspects of HRM in smaller businesses within a transition economy.

Details

Employee Relations, vol. 32 no. 3
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 15 February 2024

Nurin Athilah Masron, Suhaiza Ismail and Zaini Zainol

The objectives of this study are twofold. Firstly, this study aims to examine the challenges of green public procurement (GPP) involvement among small- and medium-sized…

Abstract

Purpose

The objectives of this study are twofold. Firstly, this study aims to examine the challenges of green public procurement (GPP) involvement among small- and medium-sized enterprises (SMEs) government suppliers. Secondly, it investigates the differences in the perceived challenges between the small- and medium-sized groups of companies.

Design/methodology/approach

The study draws on the quantitative method. The questionnaire was distributed to SMEs that supply green goods or services to the government and which are listed in the MyHijau directory. Using convenience sampling, a total of 394 questionnaires were distributed and 126 usable questionnaires were received, representing a response rate of 31.98%. A descriptive analysis of the mean score, standard deviation and mean score ranking was used to analyse the overall results. The t-test analysis was carried out to examine the differences between the small- and medium-sized groups of companies.

Findings

All five categories of the barriers, i.e. financial, legal, people, knowledge and organizational challenges, are perceived as the important challenges for SMEs’ involvement in GPP. Of the five categories, “having lack of knowledgeable staff on GPP” under the category of “people” challenge is ranked as the most major barrier. In relation to the differences between the two groups of enterprises (small- and medium-sized), medium enterprises are more affected by two items under the “organization” challenge, i.e. “The company has not targeted suppliers that promote environmentally-friendly products/services” and “The company has not established a clear objective on purchase of green products and services”, as compared to the small-sized enterprises through their GPP involvement.

Social implications

By understanding the difficulties faced by SMEs in engaging with GPP, various practical measures can be formulated to support the SME businesses in mitigating the challenges faced for their involvement with GPP, which subsequently will lead to the country’s target to reach the sustainable development goals.

Originality/value

This study extends empirical evidence on barriers or challenges that may hinder the involvement in government green procurement, with a specific focus on SME government suppliers.

Details

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

Keywords

Article
Publication date: 2 April 2024

Nurin Athilah Masron, Zaini Zainol and Suhaiza Ismail

The objectives of this paper are twofold. First, it aims to investigate the impact of the COVID-19 pandemic on the activities and performance of small and medium-sized enterprises…

Abstract

Purpose

The objectives of this paper are twofold. First, it aims to investigate the impact of the COVID-19 pandemic on the activities and performance of small and medium-sized enterprises (SMEs) government suppliers involved in government green procurement (GGP). Second, it examines the differences in the impact of COVID-19 between small and medium-sized groups.

Design/methodology/approach

The study used a questionnaire survey that was distributed to SMEs listed in the MyHIJAU directory that supply green goods and services to the government. Of the total 394 sample respondents, 126 usable questionnaires were received, representing a usable response rate of 31.98%. Descriptive analysis of mean score, standard deviation and mean score ranking was used to analyse the overall results. A t-test analysis was carried out to examine the differences between the small and medium-sized groups of companies.

Findings

The study discovers that the SME government suppliers involved in GGP were impacted by the COVID-19 pandemic. The top ranked impacts are that “the COVID-19 pandemic has heightened health and safety practices among the employees”, “the COVID-19 pandemic has reduced company’s turnover”, “the COVID-19 pandemic has forced the company to implement a cost reduction strategy”, “the COVID-19 pandemic has had a negative impact on the company’s ability to deliver work, supplies or services to the government” and “the COVID-19 pandemic has forced the company to incur higher production costs for green products or services provided”. However, there is no significant difference between the impact of the COVID-19 pandemic on the small and medium-sized group of enterprises.

Originality/value

The present study is among the fewer studies on the impact of the COVID-19 pandemic, with particular focus on SME government suppliers involved in GGP.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

Keywords

Article
Publication date: 10 July 2017

Raphael Odoom, Priscilla Mensah and George Asamoah

This paper aims to draw on the organizational ecology theory to examine variations in branding efforts and performance of small and medium-sized enterprises (SMEs) across…

1124

Abstract

Purpose

This paper aims to draw on the organizational ecology theory to examine variations in branding efforts and performance of small and medium-sized enterprises (SMEs) across enterprises sizes and business operating sectors.

Design/methodology/approach

A four-stage analysis involving principal component analysis, Pearson correlation, ANOVA and logistic regressions was used on a sample of 430 SMEs within an emerging market.

Findings

Principal component analysis identified four brand marketing efforts relevant to the SMEs. These efforts were used in fluctuating extents among small-sized versus medium-sized enterprises, as well as manufacturing versus services SMEs. Additionally, proportionate levels of performance corollaries were found to be accruable across the enterprise sizes and operating sectors.

Originality/value

The paper first identifies four brand-building efforts germane to SMEs within an emerging market and examines their precise contributions to firm performance within enterprise sizes and business operating sectors. It further reinforces the relevance of brand marketing programs to the growth of SMEs by establishing the likelihood and extent to which brand-building efforts impact on SME performance across enterprise sizes, as well as operating sectors. The study also presents issues of potential research and managerial interest from an emerging market, offering insightful implications to researchers and SME managers.

Details

Journal of Research in Marketing and Entrepreneurship, vol. 19 no. 1
Type: Research Article
ISSN: 1471-5201

Keywords

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