The role of R&D investments and export on SMEs’ growth: a domain ambidexterity perspective

2018 ◽  
Vol 56 (9) ◽  
pp. 1883-1903 ◽  
Author(s):  
Daniele Battaglia ◽  
Paolo Neirotti ◽  
Emilio Paolucci
Keyword(s):  
Life Cycle ◽  
Small And Medium Enterprises ◽  
International Studies ◽  
Content Type ◽  
Theoretical Contribution ◽  
Revenue Growth ◽  
Conflicting Objectives ◽  
Organizational Maturity ◽  
Medium Enterprises ◽  
Technology Industries

PurposeInternational sales are critical for the prosperity of small and medium enterprises (SMEs), because of the limited size of their domestic market, but they can be difficult to attain for a number of reasons. The purpose of this paper is to investigate this topic and use a domain ambidexterity framework to analyze why the relationship between research and development (R&D) investments and export initiatives generates managerial tensions in high- and medium-technology industries. In this paper, it is claimed that R&D investments and internationalization can be conflicting objectives that entail a diversity of routines and managerial approaches. This aspect is critical, especially when SMEs are in the early stages of their life cycle and are resource constrained.Design/methodology/approachThis issue is tested using multiple regressions on data collected through a survey that was conducted in 2014. The sample is composed of 221 SMEs operating in Italy in high-and medium-technology industries.FindingsThe estimates show that combining contemporary high R&D investments and high export activities negatively affects the growth of revenues of SMEs. In detail, when exports over revenue are below 10 percent, R&D investments have a positive effect on revenue growth, whereas when exports over revenue are above 50 percent, the effect of R&D investments on revenue growth is negative. However, age acts as a moderator on this relationship, thus implying that the effect of combining these initiatives varies according to the life cycle of a firm. In particular, combining R&D investments and export generates tensions that limit the growth of revenues in young SMEs (less than ten years old). For firms aged between 10 and 25 years, the effect is positive, while the effect is positive but not statistically significant for mature firms (older than 25 years). These results demonstrate that the diversity of the organizational maturity in SMEs has an impact on their ability to combine activities that require different capabilities (technological vs market).Originality/valueThis paper offers a theoretical contribution to the literature on domain ambidexterity, as it shows that combining contemporary innovation-related activities with international activities may constrain the performance of SMEs, according to the age of the firm. It extends the theoretical framework of domain ambidexterity to international studies and it reconciles previous mixed evidence about the combination of innovation and internationalization activities of SMEs.

The development and target market selection influential strategies for Iranian SMEs: empirical study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmad Reza Jafarian-Moghaddam
Keyword(s):  
Empirical Study ◽  
Swot Analysis ◽  
Small And Medium Enterprises ◽  
Multicriteria Decision Making ◽  
Development Strategies ◽  
Target Market ◽  
International Studies ◽  
Content Type ◽  
Medium Enterprises ◽  
The Impact

Purpose The financial resources limitation, the difficult conditions for entry into the market and the lack of sufficient funds are the most important problems facing Iranian small and medium enterprises (SMEs). For these reasons, this paper aims to propose an appropriate methodology for formulating the most influential Iranian SMEs development strategies to make it possible to grow and make more income. Then, a framework is developed to precisely determine the target market for Iranian SMEs. Design/methodology/approach The paper uses strengths, weaknesses, opportunities and threats (SWOT) analysis; Pareto principle and analysis of the market conditions to propose the development strategies and uses a methodology based on multicriteria decision-making (MCDM) method to determine the target market. Findings According to the research results, it is necessary for the Iranian SMEs to follow the brand strengthening, product and market development, enhancing product quality and creating research and development units strategies focusing on the domestic market. The results obtained from the empirical study also indicated that the customer acquisition rate improved from 0.06 to 0.13 per month, and the company's income has a 64% growth in 2016 than the year 2015 through the selection of some public customers as the target market. Originality/value Very few studies have been done so far on the formulation methodology of a market entry strategy for SMEs. Studies by researchers imply that no studies have been conducted in Iran in this regard. International studies also mainly focus on the impact of some marketing activities.

Importance of commitment in encouraging employees’ innovative behaviour

2016 ◽  
Vol 8 (1) ◽  
pp. 70-83 ◽  
Author(s):  
Fatemeh Hakimian ◽  
Hadi Farid ◽  
Mohd Nazari Ismail ◽  
Pradeep Kumar Nair
Keyword(s):  
Small And Medium Enterprises ◽  
Business Environment ◽  
Partial Least Square ◽  
Least Square ◽  
Innovative Behavior ◽  
Content Type ◽  
Theoretical Contribution ◽  
Innovative Behaviour ◽  
Medium Enterprises ◽  
The Relationship

Purpose – The extremely competitive and globalized business environment directs organizations to rely on human capital to be innovative. Committed employees are needed for organizations to foster innovative behaviors. The purpose of this paper is to examine the relationship between three forms of commitment and employees’ innovative behavior. Design/methodology/approach – Adopted questionnaire from previous studies were distributed among employees of Malaysian Small and Medium Enterprises. A total of 219 questionnaires were analyzed via partial least square. Findings – Statistical results revealed significant relationships between affective and normative commitment and employees’ innovative behavior. Originality/value – This study offers a theoretical contribution by adding an insight into the relationship between commitment and innovative behavior. The study also provides a practical guideline for managers of Malaysian SMEs who aim to increase innovative behavior among employees by considering their level of commitment.

Twiga Hosting Ltd – providing affordable information and communication technologies services to small and medium enterprises

2011 ◽  
Vol 1 (4) ◽  
pp. 1-16
Author(s):  
Juma James Masele
Keyword(s):  
Information And Communication Technologies ◽  
Undergraduate Students ◽  
Success Factors ◽  
Small And Medium Enterprises ◽  
Innovation Management ◽  
Communication Technologies ◽  
Subject Area ◽  
Content Type ◽  
Information And Communication ◽  
Medium Enterprises

TitleTwiga Hosting Ltd – providing affordable information and communication technologies services to small and medium enterprises.Subject areaThe case describes the launch of Twiga Hosting Ltd, a company providing information and communication technology (ICT) services to the underserved small and medium enterprise (SME) sector in Tanzania and in a many countries in Africa.Study level/applicabilityThis case targets a range of audience from undergraduate students taking both Bachelor of Commerce and those taking Bachelor of Business Administration; and Postgraduate students taking business‐related courses. Nonetheless, the case may be used by all other learners of advanced studies in entrepreneurship and innovation management.Case overviewThe case addresses a number of issues including: Issues to be considered when starting an ICT enterprise. Strategic management. Business revenue models.Expected learning outcomes To impart/inculcate entrepreneurial insights in ICT and related areas. To make learners aware of the business growth opportunities in ICT ventures. The success factors for fruitful ICT ventures. To enable learners to identify challenges facing entrepreneurs in ICT ventures and the ways to overcome them.Supplementary materialsTeaching notes.

Relevant factors of innovation contests for SMEs

2017 ◽  
Vol 23 (6) ◽  
pp. 1196-1215 ◽  
Author(s):  
Maria Isabel Rodriguez Ferradas ◽  
José A. Alfaro Tanco ◽  
Francesco Sandulli
Keyword(s):  
New Product Development ◽  
Corporate Culture ◽  
Small And Medium Enterprises ◽  
Retrospective Case ◽  
Content Type ◽  
Context Factors ◽  
Medium Enterprises ◽  
Design Factors ◽  
Relevant Factors

Purpose The purpose of this paper is to explore the relevant factors that influence the implementation of innovation contests, an open innovation (OI) practice that has been extensively reported in the literature as a managerial tool for external knowledge search. The authors focus the study on the context of small and medium enterprises (SMEs). Design/methodology/approach The approach is a retrospective case study. This methodology allows an in-depth view into a Spanish SME that successfully undertook two new product development processes thanks to the deployment of innovation contests. Findings The main context factors influencing innovation contests as managerial tool are ambidexterity, technological and marketing turbulence and intermediaries, among others. Regarding design factors, this work highlights the role of attraction and facilitation. Additionally, the repetitive implementation of innovation contests creates a corporate culture that promotes OI activities. Practical implications Managers will understand that they can use innovation contests as a managerial tool, and knowing the factors that need to be taken into account when implementing an innovation contest will help SMEs managers to make better use of this practice. Originality/value This case study enriches the literature of both innovation contests and topics relevant to SMEs. Based on a theoretical framework of the design factors that influence the implementation of innovation contests, the authors propose a research framework that incorporates those context factors in association with an SME.

Effects of cloud computing assimilation on supply chain financing risks of SMEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qiang Lu ◽  
Jinliang Chen ◽  
Hua Song ◽  
Xiangyu Zhou
Keyword(s):  
Cloud Computing ◽  
Supply Chain ◽  
Small And Medium Enterprises ◽  
Supply Chain Integration ◽  
Content Type ◽  
Supply Chain Financing ◽  
Medium Enterprises ◽  
The Relationship ◽  
Moderating Role

Purpose The purpose of this study is to examine how cloud computing assimilation reduces supply chain financing (SCF) risks of small and medium enterprises (SMEs). This study also investigated the mediating roles of internal and external supply chain integration between cloud computing assimilation and the SCF risks of SMEs, as well as the moderating role of environmental competitiveness. Design/methodology/approach Data was collected from surveys of SMEs located in China. Multiple regression analysis was used to validate the proposed theoretical model and research hypotheses. Findings The findings show that cloud computing assimilation could reduce the SCF risks of SMEs directly. The results also indicate that both internal and external supply chain integration mediate the relationship between cloud computing assimilation and SCF risks. Furthermore, environmental competitiveness inhibits the effects of cloud computing assimilation on SCF risks. Originality/value To our best knowledge, this is the preliminary study to explore the role of cloud computing assimilation in reducing the SCF risks of SMEs. Also, this study attempted to investigate the process by which cloud computing assimilation affects the SCF risks of SMEs.

How to survive in the age of artificial intelligence? Exploring the intelligent transformations of SMEs in central China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jinqiang Wang ◽  
Yaobin Lu ◽  
Si Fan ◽  
Peng Hu ◽  
Bin Wang
Keyword(s):  
Artificial Intelligence ◽  
Small And Medium Enterprises ◽  
Policy Support ◽  
Central China ◽  
Limited Resources ◽  
Text Data ◽  
Content Type ◽  
External Pressures ◽  
Medium Enterprises

PurposeThe purpose of the research is to explore how small and medium enterprises (SMEs) in central China achieve intelligent transformation through the use of artificial intelligence (AI). Because of unequal resource allocation, constraints on the intelligent transformation of SMEs in central China are different from those in economically and technologically well-developed coastal provinces. Hence, the authors focus on SMEs in central China to identify drivers of and barriers to intelligent transformation.Design/methodology/approachThe interview data were collected from 66 SMEs across 20 industries in central China. To verify the validity of the data collection method, the authors used two methods to control for retrospective bias: multi-level informants and enterprises' AI project application materials (Wei and Clegg, 2020). The final data were validated without conflicts. Next, the authors cautiously followed a two-step approach recommended by Venkatesh et al. (2010) and used NVivo 11.0 to analyze the collected text data.FindingsSMEs in central China are enthusiastic about intelligent transformation while facing both internal and external pressures. SMEs need to pay attention to both internal (enterprise development needs, implementation cost, human resources and top management involvement) and external factors (external market pressure, convenience of AI technology and policy support) and their different impacts on intelligent transformation. However, constrained by limited resources, SMEs in central China have been forced to take a step-by-step intelligent transformation strategy based on their actual needs with the technological flexibility method in the short term.Originality/valueConsidering the large number of SMEs and their importance in promoting China's economic development and job creation (SME Bureau of MIIT, 2020), more research on SMEs with limited resources is needed. In the study, the authors confirmed that enterprises should handle “social responsibility” carefully because over-emphasizing it will hinder intelligent transformation. However, firms should pay attention to the role of executives in promoting intelligent transformation and make full use of policy support to access more resources.

Big data-driven supply chain and performance: a resource-based view

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shampy Kamboj ◽  
Shruti Rana
Keyword(s):  
Big Data ◽  
Supply Chain ◽  
Small And Medium Enterprises ◽  
Data Driven ◽  
Equation Modeling ◽  
Firm Age ◽  
Content Type ◽  
Sustainable Performance ◽  
Medium Enterprises

PurposeThe main objective of this paper is to study the role of supply chain performance (SCP) as a mediator between big data-driven supply chain (BDDSC) and firm sustainable performance. In addition, the role of firm age as a moderator between BDDSC and SCP as well as between SCP and firm sustainable performance has also been explored.Design/methodology/approachThe 200 managers of medium or senior level positions in micro, small and medium enterprises (MSMEs) located at Delhi-NCR have been contacted. Further, collected data have been confirmed with confirmatory factor analysis (CFA). In this paper, structure equation modeling (SEM) has been employed to empirically check the proposed hypotheses and their relationships.FindingsThe findings confirmed that SCP mediates the link between BDDSC and firm sustainable performance. Additionally, firm age moderates the association between BDDSC and SCP as well as between SCP and firm sustainable performance.Research limitations/implicationsThe role of SCP and firm age between BDDSC and sustainable performance have been examined in the context of MSMEs in Delhi-NCR and thereby limit the generalization of results to other industries and country contexts.Originality/valueThe present study adds to the existing literature via recognizing the blackbox using SCP and firm age to comprehend BDDSC and firm sustainable performance relationship.

Determinants and outcomes ofe-business adoption among manufacturing SMEs: Insights from a developing country

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muneer Abbad ◽  
Ibrahim Hussien Musa Magboul ◽  
Kholoud AlQeisi
Keyword(s):  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Ease Of Use ◽  
Government Support ◽  
Relative Advantage ◽  
Perceived Ease Of Use ◽  
Content Type ◽  
Business Practitioners ◽  
Using Data ◽  
Medium Enterprises

Purpose In response to a turbulent industrial environment, especially for small and medium enterprises (SMEs), organizations have widely adopted e-business to improve their processes. This study aims to propose a model that encapsulates the determinants and outcomes of e-business adoption. Design/methodology/approach The determinants and outcomes of e-business adoption were tested using data gathered from 282 managers and analysed using structural equation modelling techniques. Findings The results indicated that owner support, perceived ease of use and government support were important determinants that influence e-business adoption. Attitude, competitive pressureand relative advantage were not significant. Regarding outcomes, e-business adoption had a major impact on SME functioning and operational progress; however, it had no influence on competitive advantage. Originality/value By ascertaining the determinants and outcomes of e-business adoption, the findings provide e-business practitioners and managers with guidelines that can encourage more efficient and effective e-business adoption within their organizations. The results also provide a basis for more precise e-business studies to be conducted in developing countries.

Technical efficiency and its determinants in the Indian textile garments industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdulla ◽  
Shiv Kumar
Keyword(s):  
Panel Data ◽  
Technical Efficiency ◽  
Textile Industry ◽  
Small And Medium Enterprises ◽  
Stochastic Frontier ◽  
Efficiency Score ◽  
Value Chains ◽  
Small Scale ◽  
Content Type ◽  
Medium Enterprises

Purpose This paper aims to examine technical efficiency and its determinants in Indian textile garments industry in post-agreement on textiles and clothing regime and evaluate the technical efficiency among micro, small and medium enterprises (MSMEs) firms. Design/methodology/approach This study uses unbalanced panel data for the period 2005–2010 to 2015–2016. The stochastic frontier function is used to estimate technical efficiency and its determinants. Findings The results show that the overall ecosystem of textile garments’ value chains could be improved to enhance the technical efficiency thereof. The result also reveals that small-scale firms have the highest technical efficiency scores, and medium-scale firms have the least technical efficiency score among all the categories of MSMEs. Research limitations/implications The textile garments industry needs to define its innovation strategies, as these strategies lead to different results that can be achieved only through the management of resources dedicated to the generation and implementation of innovations. Practical implications This study has shown that to offset India’s cost disadvantage in the international markets, there is a need to develop an ecosystem of textile manufacturing and value chains, eliminate the inverted duty structure (where inputs are taxed at a higher rate than the final product) and switch over from shuttle looms toward shuttle-less looms. This would unleash the potential of textile and garments industry and make it globally competitive and technically efficient. Further, there will be an alignment with the ease of doing business with an appropriate mix of policy, technology, institution, infrastructure, information and services. Originality/value Using frontier production function takes stochastic context into account for the dynamic character of technical efficiency and its components. Most of the past studies have assessed technical efficiency at the aggregate level using three-digit National Industrial Classification (NIC) or four-digit NIC code. An analysis at higher levels of aggregation masks the variation in technical efficiency. This study used five-digit NIC data to measure the firm-specific technical efficiency of the textile industry. According to the authors’ knowledge, this study is the first of its kind in the Indian textile industry using stochastic frontier approach and panel data. Further, it also looks at the contribution of different determinants in technical efficiency to the firms.

Dealing with surprise attacks: decomposing ERM as a dynamic capability to handle crises

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vishnu Chandar Venkatesh ◽  
Meeta Dasgupta ◽  
Anupama Prashar ◽  
Torben Juul Andersen
Keyword(s):  
Empirical Evidence ◽  
Small And Medium Enterprises ◽  
Survival Rates ◽  
Dynamic Capability ◽  
Expert Interviews ◽  
Content Type ◽  
Intelligence Gathering ◽  
Enterprise Risk ◽  
Medium Enterprises ◽  
Alliance Building

PurposeTurbulent hypercompetitive market conditions make small and medium enterprises (SMEs) vulnerable to abrupt crises caused by unexpected competitor moves. In these situations, enterprise risk management (ERM) can serve as a dynamic capability (DC) to overcome the impending crisis and improve SMEs' survival rates. To explore this capacity, which has only been vaguely addressed in prior research, we conduct an exploratory, abductive study to update the extant (ERM and DC) literature with empirical evidence from expert interviews.Design/methodology/approachWe conduct an exploratory, abductive study using empirical evidence from expert interviews.FindingsOur findings reveal ERM as a second-order DC in the micro-foundational components of competitive intelligence gathering, alliance building and integrative capabilities. We find that competitive intensity and government policy moderate the effects of these foundational capabilities. Finally, our study proposes a survivability model that provides new valuable knowledge of ERM as a DC for SMEs to deal with competition-driven crises.Originality/valueThis research survivability model shows how ERM as DC can facilitate the survivability of SMEs against competitive surprises. Although restricted to crises arising out of competitive surprises, this study provides valuable knowledge to the literature on what type of DCs are useful for specific situations. The study findings not only extended Teece's (2007) DCs framework to competitive crises but also placed it within a hierarchy of capabilities. The research findings indicate that an ERM culture in SMEs promote the growth and development of sensing, seizing and reconfiguring capabilities, vital for tiding competitive crises.

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