To be competitive, small and medium-sized enterprises (SMEs) need to transform their business models. To overcome the liability of smallness, SMEs often need to collaborate with external ...partners-implement open innovation. The complex processes behind business model transformation and open innovation combined remain unexplored. Linking the literature on business model innovation, open innovation, and SMEs, we examine how open business models can be a solution for SMEs. In particular, taking a process perspective, we study business model transformations in several European SMEs using a two-dimensional typology of SME business model innovation, considering the radicalness of the transformation and SME openness toward external partnerships. We identify the triggers for SMEs' business model innovation: market turbulence, market immaturity, competition, prior failure in open innovation, and scaling production. We also signify how SMEs address the challenges related to the open business model transformation.
This study explores the impact of government support programs (GSPs) on the interrelationships between the dimensions of the entrepreneurial orientation (EO) and performance using a sample of ...agro-based small- and medium-sized enterprises in a developing economy. The study develops a two-dimensional metric of the GSP construct consisting of financial and non-financial GSP interventions. The study finds preliminary evidence that both nonfinancial and financial GSPs have moderating effects that can magnify the impact of the EO dimensions of innovativeness, risk taking, autonomy, and competitive aggressiveness on performance. These findings offer guidance to small business policymakers in developing economies.
•Contrary to the generic belief, cost reduction is not the top two factors for SMEs to move to cloud.•Security and privacy factors are more than willing to move to cloud than cost reduction.•The ease ...of use and convenience scores the topmost slot, fueled by the exponential growth in tablets and smart phones.•The cloud service providers should improve the reliability of the cloud, which would expedite the adoption by SMEs.•A better reliable cloud would also increase the chances of sharing and collaboration between the stakeholders in SMEs.
Cloud computing has become the buzzword in the industry today. Though, it is not an entirely new concept but in today's digital age, it has become ubiquitous due to the proliferation of Internet, broadband, mobile devices, better bandwidth and mobility requirements for end-users (be it consumers, SMEs or enterprises). In this paper, the focus is on the perceived inclination of micro and small businesses (SMEs or SMBs) toward cloud computing and the benefits reaped by them. This paper presents five factors influencing the cloud usage by this business community, whose needs and business requirements are very different from large enterprises. Firstly, ease of use and convenience is the biggest favorable factor followed by security and privacy and then comes the cost reduction. The fourth factor reliability is ignored as SMEs do not consider cloud as reliable. Lastly but not the least, SMEs do not want to use cloud for sharing and collaboration and prefer their old conventional methods for sharing and collaborating with their stakeholders.
Does Industry 4.0 really matter for SME innovation? Somohano-Rodríguez, Francisco M.; Madrid-Guijarro, Antonia; López-Fernández, José Manuel
Journal of small business management,
07/2022, Letnik:
60, Številka:
4
Journal Article
Recenzirano
This research, grounded on the organizational information processing theory, studies whether the digital enabling technologies of Industry 4.0 (I4.0) impact innovation in small and medium enterprises ...(SMEs), and what role innovation strategies play in promoting I4.0 in SMEs. We consider two types of enablers, information and communication digital enabling technologies (IDETs) and advanced robotics and integration digital enabling technologies (ADETs), according to their nature, to demonstrate that different I4.0 enabling technologies play different roles in SME innovations. Results from 109 SMEs show that strategic planning fosters I4.0, and innovation is promoted more intensively by IDETs than by ADETs, with both technologies exerting mediating effects in the relationship between strategy and innovation. Finally, innovation has positive effects on performance.
Individual ambidexterity is of vital importance to the competitive advantage of organizations, especially small and medium enterprises (SMEs). Yet the ambiguous conceptualization in literature ...hinders our understanding of the concept, its antecedents, and its outcomes. We use a systematic review to capture the development of individual ambidexterity in the literature since 2007, identifying several major issues obstructing its conceptual clarity. We further propose a typology based on the exploration-exploitation relationship. By identifying different types of individual ambidexterity and linking the concept to the context of SMEs, this review offers conceptual clarity and directions for studying individual ambidexterity in SMEs for future research.
One of the greatest challenges facing the world today is climate change. The need to consistently advance with environmentally sustainable practices in today's businesses is crucial, and businesses ...are demanded to be more environmentally sustainable every day. This study conducts an analysis of the literature on small and medium‐sized enterprises' (SMEs) environmental sustainability by carefully examining 122 studies from 58 journals published from 2013 to 2019. We investigate the trends in drivers and barriers of sustainability adoption to inform both SMEs managers and policymakers. Our results also classify the reviewed studies on the basis of their methodologies and show the distribution of studies across industry sectors and locations in order to set directions for future research on sustainability practices of SMEs.
•A framework of six fields of action is critical to adopt and audit CE practices.•Government initiatives and policies are key drivers for CE adoption in Indian SMEs.•Lack of technical know-how and ...digital transformation inhibits the CE adoption.•SMEs need a stakeholder collaboration strategy to adopt and evolve CE practices.
Circular Economy (CE) adoption in Indian SMEs is still nascent, irrespective of various initiatives, policies, and trans-national strategic partnerships of the Indian government. The existing research has outlined the benefits of CE adoption within organisations (regardless of the size and sector) to achieve sustainable business performance in emerging markets. This paper employs resource-based view as a theoretical lens to examine the factors influencing and inhibiting CE adoption in Indian manufacturing and process-based SMEs by conducting twelve case-studies. The within and cross-case analysis shows that lack of business process analysis, skills and expertise, digital transformation and multi-stakeholder cooperation within the supply chain inhibits CE adoption, while government initiatives, competitive advantage, environmental regulation, and customer pressure are the drivers. The study proposes a CE implementation guide comprising six principles for the SMEs’ managers in India to achieve resource efficiency, cost savings, multi-stakeholder collaboration and sustainable outcomes across the CE fields of action.
Background: The study examined the effects of management skills on the financial sustainability of SMEs. The study evaluated different variables such as; technical skills, communication skills, and ...human relations skills, but this particular study focuses on the effect of technical skills on the financial sustainability of SMEs. Methodology: The study used a descriptive research design. The sample size for the study of 149 was drawn from a study population of 185. Results: Findings identified technical skills as the highest contributing factor of management skills to financial sustainability with (βeta value of .426, Sig. at 0.000 t-value=4.836>1.96. Conclusion: In conclusion, employees want managers to cooperate with them more, appreciate them more, and understand them more. These two parts of the questionnaire clearly state the opinion of employees and that is why managers need to take this issue seriously and communicate with their subordinates more. Recommendation. The study recommended that employees and managers of SMEs should invest much and adopt the best practical skills to run businesses such as; bookkeeping and records management skills, and computer skills for them to reach greater heights.
Background This study was based on three objectives which included; financial accessibility and growth of small scale, financial technology and growth of small and medium enterprises, financial ...literacy and growth of small and medium enterprises. The study was guided by three theories which include; the resource-based theory, neoclassic theory, and finance growth theory. Methodology The study employed a descriptive study design and sectional survey was used and a sample size of 186 respondents was used from a target population of 360 SMEs operating in the Makindye urban division. Data was collected using questionnaires and analyzed using descriptive statistics (mean and standard deviation) and inferential (correlation and regression) with the aid of SPSS. Results The study findings concerning the main objective indicated that financial inclusion influences the growth of small and medium enterprises in Makindye urban division, Kampala, Uganda. The findings indicate financial accessibility as a major challenge limiting the growth of SMEs in Makindye urban division since most of the respondents disagreed that they easily access finance financial technology was also another challenge that limited their growth while financial literacy wasn’t a challenge to the owners of SMEs in this area. There is a moderate positive significant relationship between financial inclusion and the growth of SMEs in Makindye Urban Division. Conclusion SMEs around are limited to accessing financial services by financial players financial technology in terms of mobile money and mobile banking are being used in SMEs which is improving their growth. Financial literacy has a positive relationship with the growth of SMEs in Makindye Urban Division Recommendation There is a need for sensitization of the financial inclusion strategies to the beneficiaries. Financial institutions must make SMEs aware of the importance of full disclosure of the personal and business information required when looking for financial services.
•Fintech affects how banks provide loans to SMEs.•Fintech simplifies and supports banks when providing credit to SMEs.•Fintech has a more significant effect on larger banks than smaller ones.•It is ...more important to utilize fintech than to develop many small banks for SME finance.
This study examines the impact of financial technology (fintech) on the ability of banks to offer credit to small and medium enterprises (SMEs). By analyzing the lending records of banks in Chinese provinces from 2011 to 2018, we demonstrate that fintech effectively facilitates the banking sector's credit supply to SMEs. We also consider whether the impact of fintech varies according to the size of the bank. Compared with small banks, fintech has a more significant influence on the increase in credit for SMEs in large banks. Thus, maybe it is more important to utilize fintech than to develop many small banks.
