•Investigates whether innovative firms find it harder to access finance – and whether this has worsened since the crisis.•Finds a structural effect which means that innovative firms find it harder to ...access finance.•Finds that the cyclical effect has mainly been felt by non-innovative firms, although access to finance is harder for innovative firms than before the crisis.•Shows that the exception to this is absolute credit rationing, and innovative firms are disproportionately likely to be unable to obtain finance from any source.
In the wake of the 2008 financial crisis, there has been increased focus on access to finance for small firms. Research from before the crisis suggested that it was harder for innovative firms to access finance. Yet no research has considered the differential effect of the crisis on innovative firms. This paper addresses this gap using a dataset of over 10,000 UK SME employers. We find that innovative firms are more likely to be turned down for finance than other firms, and this worsened significantly in the crisis. However, regressions controlling for a host of firm characteristics show that the worsening in general credit conditions has been more pronounced for non-innovative firms with the exception of absolute credit rationing which still remains more severe for innovative firms. The results suggest that there are two issues in the financial system. The first is a structural problem which restricts access to finance for innovative firms. The second is a cyclical problem has been caused by the financial crisis and has impacted relatively more severely on non-innovative firms.
PurposeThe digital transformation under Industry 4.0 is complex and resource-intensive, making a strategic digitalization guideline vital to small and medium-sized enterprises' success in the ...Industry 4.0 transition. The present study aims to provide manufacturing small and medium-sized enterprises (SMEs) with a guideline for digital transformation success under Industry 4.0.Design/methodology/approachThe study first performed a content-centric literature review to identify digital transformation success determinants. The study further implemented interpretive structural modeling to extract the order at which the success determinants should be present to facilitate the SMEs’ digital transformation success optimally. The interpretive model and interpretive logic knowledge base matrix were also used for developing the digital transformation guideline.FindingsEleven success determinants are vital to SMEs’ digital transformation efforts. For example, results revealed that external support for digitalization is the first step in ensuring digital transformation success among SMEs, while operations technology readiness is the most inaccessible success determinant.Research limitations/implicationsThe study highlights the degree of importance of the 11 success determinants identified, which magnifies each determinant's strategic priority based on its driving power and dependence power. Theorizing the dependent variable of “digital transformation success” and quantitatively measuring the extent to which each success determinant contributes to explaining “digital transformation success” offers an exciting opportunity for future research.Practical implicationsDigital transformation success phenomenon within the Industry 4.0 context is significantly different from the digitalization success concept within the traditional literature. The digital transformation under Industry 4.0 is immensely resource-intensive and complex. Smaller manufacturers must have specific capabilities such as change management and digitalization strategic planning capability to reach a certain degree of information, digital, operations and cyber maturity.Originality/valueThe digital transformation success guide developed in the study describes each success determinants' functionality in relation to other determinants and explains how they might contribute to the digital transformation success within the manufacturing sector. This guide enables smaller manufacturers to better understand the concept of manufacturing digital transformation under Industry 4.0 and devise robust strategies to steer their digital transformation process effectively.
Using the five factor model (FFM) of personality, we delineate two distinct roles of CEO personality in managing strategic change: initiating strategic change and determining the performance effects ...of strategic change implementation. Based on data from 120 smalland medium-sized enterprises (SMEs) in Ecuador, we found that some FFM traits of CEOs influenced initiation only (extraversion and openness), others similarly influenced initiation and performance effects of implementation (emotional stability and agreeableness), and still others had opposing effects on initiation and effective implementation (conscientiousness). These results point to a dual role of CEO FFM of personality in managing strategic change, and they indicate the differences in CEO FFM traits needed to initiate strategic change and those needed to improve the performance effects of strategic change implementation.
•Entrepreneurially oriented firms outperform their rivals.•Absorptive capacity is a dynamic capability important for entrepreneurial firms.•Absorptive capacity is a moderator particularly important ...when market turbulence is high.
The literature on entrepreneurial orientation (EO) has confirmed the positive relationship between EO and firm performance and that relationship's dependence on several contingencies. The present study connects the resource-based view and its dynamic capability extension to introduce absorptive capacity (ACAP) as a moderator of the relationship between EO and firm performance. This theoretically derived research model is empirically validated using survey data from 219 small and medium-sized enterprises in Germany. Our empirical findings are that ACAP strengthens the EO–performance relationship in turbulent markets.
•We examine the impact of governmental subsidy on innovation of regional SMEs.•Governmental support policies enhance patent and new design registrations of SMEs.•Networks with universities promote ...tehnological innovation of regional SMEs.
This study explores the impact of governmental support policies on the innovation of SMEs in the regional strategic industries in South Korea. We use the technological development assistance funds as a proxy for governmental support policies for SMEs in the regional industries in Korea. The innovation of SMEs is measured by technological innovation: patent, utility model, trademark, and new design registrations. Before empirically testing the impact of governmental support policies on the innovation of SMEs, this study reviews the literature concerning the innovation and the governmental support policies of SMEs in regional industries. Results from empirical models, which simultaneously control for factors which were thought to affect the innovation of regional SMEs, indicate that a positive relationship exists among the technological development assistance by the Korean government and patent acquisitions and new design registrations of regional SMEs. Networks with universities also have a positive relationship with patent acquisitions and new design registrations of regional SMEs. This study suggests there is an importance to governmental financial aids for regional SME innovations, and there is an importance to the need to build a strong social relationship in today's networked economy.
•We conduct a systematic review on SME foreign market entry mode choice research.•We analyze 33 journal articles in terms of both theoretical framework and contextual dimensions.•We identify gaps in ...the literature by examining the extent to which studies have considered the characteristics of SMEs.•We develop an agenda to guide future scholarship in the domain of SME foreign market entry mode choice research.
Despite significant differences between small and medium-sized enterprises (SMEs) and large multinational enterprises (MNEs), the majority of extant foreign market entry mode choice literature has focused on MNEs. The current state of knowledge regarding SME foreign market entry mode choice is equivocal. The present paper reviews the current state of SME foreign market entry mode choice literature and maps future research directions. To this end, we systematically analyze 33 relevant journal articles for their theoretical frameworks and contextual dimensions. Based on this review, we identify gaps in the literature and develop an agenda to guide future scholarship in this important domain of research in taking SME-specific characteristics into consideration.
Small and medium enterprises (SMEs) in the manufacturing sector make a significant contribution to economic growth, yet most of the research into innovation management in the manufacturing sector has ...focused on large organizations. This article, however, identifies innovation drivers and their performance implications in manufacturing SMEs. Its study gathered survey data from a sample of 600 Australian SMEs and found that SMEs are similar to large firms with respect to the way that innovation strategy and formal structure are the key drivers of their performance, but do not appear to utilize innovation culture in a strategic and structured manner. This study therefore concludes that SMEs' performance is likely to improve as they increase the degree to which they mirror large manufacturing firms with respect to formal strategy and structure, and to which they recognize that innovation culture and strategy are closely aligned throughout the innovation process.
•The paper examines the key drivers of mobile marketing adoption intention.•A multi-perspective framework rooted in TOE framework was developed and tested.•Data was randomly sourced from 205 ...small-medium-sized enterprises in South Africa.•Data was analysed using structural equation modelling.•The framework possesses substantial explanatory power to explain adoption intention.•Among the important drivers of intention perceived top management support was the strongest.
This paper examines the key drivers of mobile marketing adoption intention by South African SMEs using a multi-perspective framework that combines elements in the technological, organisational and environmental contexts of the enterprises. Data was collected from a random sample of 205 SMEs from Gauteng, South Africa. Structural equation modelling was used to analyse the data. The results identified perceived relative advantage, perceived cost, top management support, employees’ IT capability, and customer pressure as important drivers of mobile marketing adoption intention. Of these factors, top management support emerged as the strongest driver of adoption intention. The implications of these findings for mobile marketers and others interested in accelerating the adoption of mobile marketing among SMEs are highlighted.
Through a proprietary dataset of small and medium‐sized enterprises (SMEs) on China's National Equities Exchange and Quotations (NEEQ), we examine the impact of venture capital (VC) backup on access ...to bank loans by SMEs. We find that VC backup can help SMEs obtain more bank loans under better conditions and significantly relieve their financing constraint. This is especially meaningful for private SMEs, those in high‐tech, in regions of less‐developed banking industry, or with lower quality accounting information. This study may have policy implications as a pilot ‘combined debt‐equity financing’ discussion in the context of the largest bank‐based economy.
The objective of this paper is to understand the contribution of networks to innovation and firm performance in small and medium enterprises (SMEs). Based on longitudinal data from 1,435 SMEs, we ...show that strong, heterogeneous ties improve innovation in SMEs. However, the connections between network ties and firm performance are more complex than previously thought, as the positive association is mediated by innovation. Consequently, SMEs should only concentrate on cultivating and maintaining networks if they lead directly to improvements in innovation.
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