Balancing exploration and exploitation is a critical challenge that is particularly difficult for smaller, nascent organizations that lack the resources, capabilities, and experience necessary to ...successfully implement ambidexterity. To better understand how small and medium-sized enterprises achieve ambidexterity, we develop theoretical arguments that link organizational performance to strategic combinations of exploration and exploitation in both product and market domains. We test the hypotheses with a longitudinal study in a dynamic industry that combines objective measures of competition, firm size, age, and revenue performance with self-reported measures of product and market exploration and exploitation. The empirical results offer new insights with respect to several tensions at the heart of the ambidexterity challenge: (1) pure strategies that combine product exploration with market exploration or product exploitation with market exploitation have complementary interaction effects on revenue, (2) cross-functional ambidexterity combining product exploitation with market exploration also exerts complementary interaction effects on revenue, (3) product ambidexterity has positive effects on revenue for older and larger—but not younger and smaller—firms, and (4) market ambidexterity has positive effects on revenue for larger—but not smaller, younger, or older—firms. Two ambidexterity paradoxes emerge: (1) larger, older firms have the resources, capabilities, and experience required to benefit from a product ambidexterity strategy, but larger, older firms are less likely to implement product ambidexterity; and (2) only larger firms have the resources and capabilities required to benefit from a market ambidexterity strategy, but developing and sustaining market ambidexterity is necessary to drive long-term growth.
This study aims to add to the knowledge on the motivations driving SMEs in Spain to engage in voluntary social and environmental reporting (SER). We apply inductive content analysis to information ...sourced from interviews with SME owner‐managers, complemented with CEO letters. While the paper confirms that there are several co‐existing motivations for SER in SMEs, inconsistencies are identified between the information disclosed in the two aforementioned sources. Overall, stakeholder engagement seems to be the most important motivation for reporting. Contrary to what the literature to date has shown about the relevance of SME owner‐managers' personal values when it comes to disclosing social and environmental information, our findings suggest that individual beliefs and values are not the main factor driving SER. Results also show industry and firm size are determinants of motivations for SER. The study thus contributes to the literature on this underexplored topic by providing insights into the motivations for SER in SMEs. An understanding of these motivations is pivotal to help policymakers focus their efforts on implementing appropriate institutional reforms in this emerging field.
PurposeThis article aims to investigate the organisational implications of adopting Industry 4.0 (I4.0) technologies, giving specific attention to operations. The paper addresses these implications ...in two directions: organisational prerequisites for, and consequences of, I4.0 technologies.Design/methodology/approachThe research is based on a multiple case study of Italian small and medium enterprises (SMEs) in manufacturing. Ten case studies have been developed through interviews, company visits and secondary data collection.FindingsThe multiple case study results show that: (1) a lean organisational structure supports effective adoption of I4.0 technologies; (2) introducing such technologies is linked to developing a new kind of job profile (i.e. the “Autonomous Operative Job Profile”); and (3) higher levels of technology adoption create a higher need for non-technical competences.Research limitations/implicationsA limitation of this research relates to the highly heterogeneous maturity levels of the sampled companies, due to the relative newness of the I4.0 paradigm. Future research could, therefore, longitudinally analyse the technology integration process within organisations.Practical implicationsThis research provides preliminary evidence about how organisations and technologies co-evolve, thus suggesting that managers should co-design these areas. It also demonstrates the extreme importance of designing a structured process and a clear set of human resource management tools to favour SME organisational development.Originality/valueThe study is built upon a conceptual framework derived from the sociotechnical perspective that analyses the interconnections between technology implementation and organisational change. From the results, three research propositions are derived to be tested on a larger scale.
Purpose
Industry 4.0 is expected to significantly transform industrial value creation. However, research on business models affected through Industry 4.0, and on small- and medium-sized enterprises ...(SMEs), remains scarce. In response, the purpose of this paper is to address both aspects, further elaborating on the role that SMEs can take toward Industry 4.0 as provider or user.
Design/methodology/approach
The paper used an exploratory research design based on 43 in-depth expert interviews within the three most important German industry sectors, mechanical and plant engineering, electrical engineering and automotive suppliers. Interviews were conducted with leading personnel of the respective enterprises, including 22 CEOs. They assign business model implications through Industry 4.0, referring to the Business Model Canvas, while the paper delineates between Industry 4.0 providers and users.
Findings
The paper finds that key resources and value proposition are among the most affected elements of the business model, whereas channels are the least affected. Furthermore, distinct characteristics between Industry 4.0 providers and users can be delineated. In general, Industry 4.0 providers’ business models are significantly more affected than users, except for key partners and customer relationships.
Research limitations/implications
Industry 4.0 remains at its early stages of implementation. As a result, many interviewees’ answers remain at a rather general level.
Practical implications
Strategies for the further alignment of the business models are provided for Industry 4.0 providers and users.
Originality/value
The paper is among the few that investigate Industry 4.0 in the context of SMEs and business models.
Electronic commerce (EC) has substantial potential to foster the growth of small and medium-sized enterprises (SMEs) in developed and developing countries alike. However, EC adoption by SMEs in ...developing countries has faced many challenges that have not been adequately addressed due to the complex nature of EC adoption in such countries. The aim of this study is to systematically examine the influence of organizational, industry, and national readiness and environmental pressure on the adoption of diverse EC technologies by SMEs in developing countries. A quantitative survey was conducted with retail SMEs within the Malaysian grocery sector to validate the proposed multi-level model. Findings indicate significant influence of environmental pressure on the adoption of various EC technologies. Organizational and national readiness have different influences across diverse EC technologies, while the influence of industry readiness is shown to be insignificant. This study extends the current understanding of the influence of micro-, meso- and macro-level factors and has important implications for researchers, practitioners, and policy makers.
Previous research has established the benefits of branding for business-to-business (B2B) organizations. Various tools can be used to support B2B brands, including the internet and other interactive ...technologies. Yet research on how organizations use Social Networking Sites (SNS) to achieve brand objectives remains limited. This study addresses the gap by focusing on B2B SMEs and their social networking practices, particularly, usage, perceived barriers, and the measurement of effectiveness of SNS as a marketing tool. Findings from a mail survey show that over a quarter of B2B SMEs in the UK are currently using SNS to achieve brand objectives, the most popular of which is to attract new customers. On the other hand, the most significant barrier is the lack of perceived relevance for particular sectors. Notably, the overwhelming majority of users do not adopt any metrics to assess SNS effectiveness. Almost half of the sample of SMEs that currently use SNS have indicated their intention to increase their marketing spending on this channel, highlighting the growing importance of SNS in a B2B context.
► We examine the social networking practices by B2B SMEs. ► B2B SMEs in the UK use SNS to attract new customers. ► Most B2B SEMs using SNS intend to increase marketing spending on SNS. ► B2B SME's not using SNS due to the lack of perceived relevance of SNS for particular industry sectors.
This study focuses on how the interplay between a firm's absorptive capacity (ACAP), and its technological and customer relationship capability contributes to its overall performance. Using ...structural equation modeling in a sample of 158 firms (316 questionnaires, two respondents per firm) from South Korea's semiconductor industry, we find that a firm's ACAP leads to better performance in terms of new product development, market performance and profitability when used in combination with the firm's capability to engage state of the art technologies in its new product development program (NPD) (technological capability) as well as cultivate strong customer relationships to gain customer insight in NPD (customer relationship capability). By highlighting the interactive nature of absorptive capacity's antecedents and how these relate to firms' performance, this study contributes to the understanding of the role of ACAP as a mechanism for translating external knowledge into tangible benefits in high-tech SMEs, thus leading to important theoretical and practical implications.
•ACAP delivers performance when in tandem with technological and customer relationship capability.•ACAP translates external knowledge to performance in high-tech SMEs.•A more robust theory of ACAP is achieved here, with data from high-tech SMEs in the South Korean semiconductor industry.
The upheaval caused by the spread of COVID-19 is having a devastating effect on small businesses. A review of the data on COVID-19's impact on micro-, small, and medium-sized enterprises suggests the ...economic fallout from this pandemic will get worse for small businesses and their employees before it gets better. To help combat the negative effects, this article offers practical and tactical strategies for navigating the uncertainty and risk especially prevalent in today's pandemic-filled business environment.
Prior studies suggest that open innovation activities positively influence innovation outcomes in large firms. However, few studies have investigated the implications of small and medium-sized ...enterprises' (SMEs) adoption of open innovation. We address this research gap by investigating the effects of four inbound open innovation activities on innovation performance of SMEs. In doing so, we draw on data from 252 high-tech SMEs. Our results reveal that different open innovation activities are beneficial for different innovation outcomes. For instance, technology sourcing is linked to radical innovation performance, whereas technology scouting is linked to incremental innovation performance. These findings hold several important theoretical and practical implications.
Purpose
During the last two decades, studies on the theoretical models in the area of international business (IB), such as gradual internationalization and the born-global firms, have gained the ...attention of researchers. The purpose of this paper is to critically review the studies on the process of internationalization (Gradual Internationalization vs Born-Global/International new venture models) to identify the research gaps in this area and to prepare a future research agenda.
Design/methodology/approach
Systematic literature review method was employed for this review. The authors highlight the findings from prior studies, compare and contrast salient characteristics and features, based on the articles published in journals with an impact factor score of at least 1.0, and provide directions for research.
Findings
The authors find that there are several areas that were under-explored in prior research. There is a great potential for theoretical extension and theory development in this field as it covers the tenets of four subjects: IB, marketing, strategic management and entrepreneurship.
Originality/value
There is no comprehensive/integrated review exploring the methods/variables and constructs used in prior studies integrating gradual internationalization/born-global models based on all the articles published in well-regarded academic journals. This review seeks to provide deeper insights, which help us to contribute toward the development of this research field.
PDF
