This study aims to understand the performance of SME’s product innovation by relating it to the foresight concept of SME owners or managers and the moderating effect of competitive intensity. It ...employs a quantitative research method by using a survey. This paper studies SMEs from the West Java Province of Indonesia in three industrial sectors: food, fashion, and handicrafts. These industrial sectors were chosen because they are the most competitive, and their consumers change rapidly. Data were collected through a structured questionnaire. A total of 200 questionnaires were distributed, 190 were returned, and 187 were used for data processing. Furthermore, the data were analyzed using exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and structural equation modeling (SEM). The results show that networking, time horizon, and analysis can affect product innovation performance (p < 0.05). Furthermore, competition intensity does not affect the relationship between analysis and product innovation performance, although there is a relationship between networking and time horizon. The results of this study provide insight for Indonesian SMEs, especially in West Java. Foresight skills trained by SMEs will make them accustomed to facing high-level competition, especially in the time horizon dimension. However, on the other hand, the high intensity of competition can reduce their networking to collaborate with various related parties.
The performance implications of innovation in small and medium-sized enterprises (SMEs) have attracted considerable interest among academics and practitioners. However, empirical research on the ...innovation–performance relationship in SMEs shows controversial results. This meta-analysis synthesizes empirical findings in order to obtain evidence whether and especially under which circumstances smaller, resource-scarce firms benefit from innovation. We find that innovation–performance relationship is context dependent. Factors such as the age of the firm, the type of innovation, and the cultural context affect the impact of innovation on firm performance to a large extent.
Global epidemic crises, such as the coronavirus (COVID-19), usually expose small and medium enterprises (SMEs) to various kinds of challenges and may put their lives at risk. This study aims to ...develop a theoretical model to provide insights about the association between innovation practices and the SMEs' performance and survival while underlining the auxiliary role of external support in such a relationship. Online questionnaire has been used to collect the data from 259 randomly selected SME managers in Saudi Arabia, and the data was analyzed using the SmartPLS3 software. The structural equation modeling results showed that the innovation practices adopted by SMEs to face the repercussions of COVID-19 had a positive impact on the performance and likelihood of business survival. PLS-SEM bootstrap results indicated that external support aids strengthen the positive impact of SMEs' innovation practices on business survival rather than its performance. The study has several significant practical implications for SME managers, governments, and policy makers that have been stated.
In this paper we estimate the effects of the pandemic on Tunisian small and medium-sized enterprises (SMEs) and examine their adaptation processes during the first lockdown. Three simultaneous shocks ...are examined employing a Difference-in-Differences (DID) framework applied to the national firm census: the labor input shock, the demand shock and the intermediate input shock. We show that SME performance in the first year of the crisis was heavily affected by a combination of labor input, demand and intermediate input shocks, but only the effects of the demand and intermediate input shocks persisted in the following year. Using our own firm survey, we examine three kinds of adaptation strategies: workplace and process adaptation, and trade credit. We find that firms in non-essential sectors were less able to adapt during the first lockdown, suggesting that firm adaptation seems to be more driven by capability than by necessity.
•The combined demand, labor and intermediate input shocks heavily affected SMEs in 2020.•Only the effects of the demand and intermediate input shocks persisted in 2021.•Outward-looking firms and foreign-owned firms adapted better and were more resilient.•Firm adaptation seems to be driven more by capability than by necessity.
Purpose
This paper aims to investigate the effect of governance – a proxy for network effects on small and medium enterprises (SME) growth through access to new markets. Specifically, investigate how ...export intensity (EI) and performance are affected. This study also tests related theories, given the growth in the post-liberalization setting of a developing economy. Specifically, this study tests Uppsala and born global (BG) perspectives for internationalization and resource-based view for performance.
Design/methodology/approach
The authors collect secondary data for each SME over a 20 year period from a growth-oriented developing economy – India. This period is after the liberalization of the Indian economy. Thus, the authors test the hypotheses in this context. The authors expect that exports would surge for SMEs given the governance structures considered. The authors consider several governance modes and two types of product classifications, namely, products and services.
Findings
The authors find conditional support for the two models – indicating that governance structures do not consistently support finding new markets. Further, given the governance structure, EI is not consistently a means to improved performance. This is contrary to the expectations. However, at the same time, the authors do find evidence that governance matters and affects products and services differently.
Research limitations/implications
While the authors conduct research in India which has a variety of cultures and state policies, the authors still believe comparative study with multi-country data from developing countries might bring further insights. Further, primary data would also help to understand governance and motivational effects (the authors did not consider the later). Implications: The authors believe the research will have implications for policy since the authors find effects of governance. Hence, specific policies that improve the performance of a governance type could be adopted.
Practical implications
Although SMEs are affected by many factors, the authors find significant effects for important variables. Hence, the authors believe the government could use the study to design proper policies so that new markets could be discovered through different governance forms, through strategic investment and capacity building.
Social implications
SMEs are a key part of the social fabric of a society/country. The work deals with how SMEs could be helped. Hence, the authors believe the work has important implications for society. Further, as the work deals with large firm-SME interfaces, the authors also inform how these different governance structures are performing and where attention is needed.
Originality/value
The authors find that certain governance-type and SME-type work well together. Further, networks through the governance structures help find new markets – depending on SME-type. The authors find partial support for the Uppsala model and also for the BG model, again depending on the SME-type.
Theoretically speaking knowledge sharing seems relevant for innovations in general. Yet, there is no adequate understanding of how knowledge sharing can develop green innovation in SMEs. This paper ...focuses on how internal and external knowledge sharing intercede green innovation and ponders on how it affects the organization performance. First, the empirical results show that all types of external knowledge don't convey the same green innovative outputs. Second, they reveal that the success of the innovation process is strongly impacted by the access to knowledge sources but above all by the combination of internal and external knowledge in each phase of the green innovation process. The success of green innovations unveils the organizational absorptive capacity of external knowledge and their transformation into internal skills. Eventually, the risks associated with knowledge transfer can hinder the positive relationship between green innovation and the firms' performance. It also leads to the financial failure of green innovations.
In spite of increasing interest in open innovation, discussion about the concept and its potential application to the SME sector has been excluded from mainstream literature. However, given that the ...argument about the effect of firm size on the effectiveness of innovation is still ongoing, it is worth addressing the issue from an SME perspective. That is the focus of this article, which seeks, firstly, to place the concept of open innovation in the context of SMEs; secondly to suggest the input of an intermediary in facilitating innovation; and finally to report accounts of Korean SMEs’ success in working with an intermediary. The research results support the potential of open innovation for SMEs, and indicate networking as one effective way to facilitate open innovation among SMEs.
•Big data driven innovation helps in sustaining SME supply chain operation.•Optimizing IoT and big data embedded supply chain help SMEs in sustainability.•R&D and IT capability of SMEs play ...significant role to improve supply chain ability.•SME leadership plays vital role in sustaining supply chain operations in crisis.
Due to the COVID-19 pandemic, there is an unprecedented crisis for businesses. The small and medium enterprises (SMEs) have been impacted even more, due to their limited resources. Extant literature has prescribed many treatments on how SMEs could survive in post COVID-19 situation, but studies did not analyse how big data driven innovation could improve supply chain management (SCM) process in the post COVID-19 pandemic under the moderating influence of SME technology leadership support. Thus, there is a research gap in this important domain. The aim of this study is to examine the impact of big data driven innovation and technology capability of the SME on its supply chain system. The study also investigates the moderating role of SME technology leadership support on SME performance in the post COVID-19 scenario. With the help of literature and resource-based view (RBV) and dynamic capability view (DCV) theory, a theoretical model has been developed conceptually. Later the model is validated using structural equation modelling (SEM) technique with 327 usable respondents from SMEs from India. The study found that both big data driven innovation and the techno-functional capability of SME impacts supply chain capability which in turn impacts the SME performance in the post COVID-19 scenario. The study also finds that there will be a moderating impact of SME technology leadership support on SME performance.
This study aims to investigate the influence of independent variables, such as SME economic policies, political stability, funding access, regulatory changes, economic growth and policy uncertainty ...on SME performance leading up to the 2024 presidential election in Indonesia. This research employs a quantitative approach with regression analysis methodology. Data was collected through a survey using Google Form from SME owners in 29 districts and nine cities in East Java province. The research findings indicate that SME economic policies, political stability and economic growth have a positive and significant impact on SME performance. Meanwhile, funding access and policy uncertainty do not significantly affect SME performance. Regulatory changes also have a positive and significant impact on SME performance. These findings hold critical implications for the development of the SME ecosystem in Indonesia. In the context of an evolving economy, this research provides a solid foundation for decisionmaking in designing more effective policies. Additionally, the government’s involvement in creating a stable and conducive environment for supporting, advancing and developing the SME sector, which is a vital pillar of the Indonesian economy, is highlighted.
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