Readiness of Manufacturing Small and Medium Enterprises (SME) to Adopt Problem Solving Tools: A Preliminary Study

2013 ◽  
Vol 64 (2) ◽  
Author(s):  
Low Rong Quan ◽  
Ahmad Suhaimi Baharudin
Keyword(s):  
Problem Solving ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Root Cause ◽  
Preliminary Study ◽  
Medium Enterprises

Problem Solving Tools are tools that help companies such as Small and Medium Enterprises (SMEs) engaged in manufacturing to identify the root cause of the problems and rectify the problems effectively. However, the level of utilization of the Tools has been poor. The factors that influence the level of utilization of the Problem Solving Tools by these Small and Medium Enterprises were identified through preliminary interviews conducted in the course of this research. The preliminary interviews also reveal the actual circumstances of Small and Medium Enterprises in the manufacturing sector of Malaysia and the problems that they face with regards to the use of Problem Solving Tools.

scholarly journals Women’s Economic Empowerment in Vietnam: Performance and Constraints of Female-Led Manufacturing SMEs

2021 ◽  
Vol 14 (6) ◽  
pp. 255
Author(s):  
MinhTam Bui ◽  
Trinh Q. Long
Keyword(s):  
Labor Productivity ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Value Added ◽  
Medium Size ◽  
Formal Sector ◽  
Firm Level ◽  
Average Value ◽  
Significant Difference ◽  
Medium Enterprises

This paper identifies whether there was a performance difference among micro, small and medium enterprises (MSMEs) led by men and by women in Vietnam during the period 2005–2013 and aims to provide explanations for the differences, if any, in various performance indicators. The paper adopts a quantitative approach using a firm-level panel dataset in the manufacturing sector in 10 provinces/cities in Vietnam in five waves from 2005 to 2013. Fixed effect models are estimated to examine the influence of firm variables and demographic, human capital characteristics of owners/managers on firms’ value added, labor productivity and employment creation. We found that men led MSMEs did not outperform those led by women on average. Although the average value added was lower for female-led firms in the informal sector, the opposite was true in the formal sector where women tend to lead medium-size firms with higher value added and labor productivity. The performance disparity was more envisaged across levels of formality and less clear from a gender perspective. Moreover, while firms owned by businessmen seemed to create more jobs, firms owned by women had a higher share of female employees. No significant difference in business constraints faced by women and by men was found.

scholarly journals The Causal Effect of Access to Finance on Productivity of Small and Medium Enterprises in Vietnam

2019 ◽  
Vol 11 (19) ◽  
pp. 5451 ◽  
Author(s):  
Mai Huong Giang ◽  
Bui Huy Trung ◽  
Yuichiro Yoshida ◽  
Tran Dang Xuan ◽  
Mai Thanh Que
Keyword(s):  
Financial Services ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Causal Effect ◽  
Bank Loan ◽  
Firm Productivity ◽  
Function Estimation ◽  
Access To Finance ◽  
The Government ◽  
Medium Enterprises

In many developing countries, obtaining financial services at affordable rates and fair terms has been a significant challenge for small and medium enterprises (SMEs). However, this issue has not been paid much attention in Vietnam, even though SMEs account for about 95% of total enterprises and the financial market of the country has not been well developed. This study investigates the causal effects of access to finance on productivity of SMEs operating in the manufacturing sector in Vietnam. Productivity was measured as the total factor productivity (TFP) obtained by production function estimation using the Levinsohn and Petrin approach. Regarding financial accessibility, two factors covered the extent to which firms might have a bank loan or overdraft facility were employed. To study the causal inferences of access to finance on firm productivity, the research adopted the difference-in-differences (DID) approach, as well as the propensity score matching (PSM) coupled with DID technique. The empirical results indicated that improving the financial accessibility could directly enhance firm productivity. Particularly, it was shown that firms having access to a bank loan could significantly improve TFP by approximately 8.6% in the DID model and about 9% in the PSM-DID model. Meanwhile, the firm average TFP increased by approximately 12.3% and 15.7% in simple DID and PSM-DID models, respectively, when firms had an overdraft facility. These findings suggest that the government should put more effort into assisting SMEs in generating bankable projects, and create a sound and healthy financial environment to stimulate firms’ access to finance, which will ensure their sustainability and growth.

scholarly journals The impact of advisory services on Iranian SME performance: An empirical investigation of the role of professional accountants

2012 ◽  
Vol 43 (2) ◽  
pp. 61-72 ◽  
Author(s):  
Y. Kamyabi ◽  
S. Devi
Keyword(s):  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Theory And Practice ◽  
Competitive Intensity ◽  
Managerial Skills ◽  
Advisory Services ◽  
Job Opportunities ◽  
Medium Enterprises ◽  
The Impact

The role of small and medium enterprises (SMEs) is recognized globally given their contribution to total productivity and job opportunities. However, the majority of SMEs tend to fail due to a lack of marketing knowledge and managerial skills or technical expertise. Professional accountants are in a unique situation to help SME owner/managers to achieve their business objectives and bridge the skills gap. Therefore, this paper aims to identify the factors that affect the decisions of owner/managers of SMEs in Iranian manufacturing sector to utilise the professional accountants’ advisory services and to examine the impact of these advisory services on SME performance using the Resource-Based View (RBV) of the firm. Based on a questionnaire survey data of 658 Iranian manufacturing SMEs, our regression analysis reveals a significant positive relationship between utilisation of professional accountants′ advisory services and three independent variables, namely, knowledge of owner/manager, competitive intensity and complexity of marketing decisions. Furthermore, we evidence that the use of advisory services is significant and positively associated with SME performance. More importantly, utilisation of professional accountants′ advisory services partially mediates the relationship between knowledge of owner/manager, competitive intensity and complexity of marketing decisions and firm performance. Therefore, we provide a specific, theoretically and empirically grounded prediction of how utilisation of professional accountants′ advisory services influences performance with implications for theory and practice.

scholarly journals A generic balanced scorecard for small and medium manufacturing enterprises in South Africa

2019 ◽  
Vol 11 (1) ◽  
Author(s):  
Arthur Reynolds ◽  
Houdini Fourie ◽  
Lourens Erasmus
Keyword(s):  
South Africa ◽  
South African ◽  
Balanced Scorecard ◽  
Delphi Study ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Local Economy ◽  
The Balanced Scorecard ◽  
Manufacturing Enterprises ◽  
Medium Enterprises

Background: Prior research confirmed that the balanced scorecard (BSC) can be used successfully at manufacturing small and medium enterprises (SMEs), to assist with sustainability. South African SMEs have a low survival rate despite being a significant contributor to the local economy with the manufacturing sector in particular hampered by negative growth.Aim: The objective of this study was to develop a BSC for manufacturing SMEs in South Africa with measurable key performance indicators (KPIs).Setting: We conducted a Delphi study with cost accounting specialists in different industries.Methods: The development of the generic BSC was facilitated with a Delphi survey and analytical hierarchy process (AHP).Results: The research presents a generic yet flexible BSC for manufacturing SMEs. A total number of 12 generic and 104 specific KPIs were identified. The results revealed a greater emphasis on the financial and customer perspectives that may be conducive to SME sustainability and success.Conclusion: A generic BSC that can be adapted to specific organisational and industry requirements has the potential to enhance SME sustainability and success.

The Determinants of Adoption of Cloud-Based ERP of Nigerian's SMES Manufacturing Sector Using Toe Framework and Doi Theory

2019 ◽  
Vol 15 (3) ◽  
pp. 27-43 ◽  
Author(s):  
Usman Musa Zakari Usman ◽  
Mohammad Nazir Ahmad ◽  
Nor Hidayati Zakaria
Keyword(s):  
Enterprise Resource Planning ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Resource Planning ◽  
Relative Advantage ◽  
Research Model ◽  
Adoption Factors ◽  
Innovation Characteristics ◽  
Operational Issues ◽  
Medium Enterprises

Adoption factors relating to enterprise resource planning (ERP) have been studied quite extensively over the years. Most of the earlier studies on cloud ERP have focused only on technical and operational issues. A few studies have addressed the adoption of cloud ERP from the user's perspective, mostly assessing the effects of the innovation characteristics or the contextual factors. Very few studies to date have conducted a holistic evaluation of both the direct and indirect effects of the determinants on cloud ERP adoption in manufacturing SMEs. Therefore, this study aims to explore and gain an understanding of the determinants of adoption factors for cloud ERP and its relative advantage to small and medium enterprises (SME) organisations. The manufacturing SMEs in Nigeria are specifically targeted. This study also seeks to develop a research model that integrates the innovation characteristics and technology-organisation-environment (TOE) perspectives that underlie its adoption.

Financing Micro, Small, and Medium Enterprises in Indian Industry

2019 ◽  
pp. 668-680
Author(s):  
Shromona Ganguly
Keyword(s):  
Small Firm ◽  
Small Firms ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Credit Availability ◽  
Firm Financing ◽  
National Output ◽  
Specific Factors ◽  
Employment Generation ◽  
Medium Enterprises

During the last five decades, the micro, small, and medium enterprises (MSME) in the Indian economy have emerged as a dynamic, vibrant segment having a significant contribution towards employment generation and entrepreneurship formation. Despite being an important contributor towards the national output and employment of the economy, the MSME sector continues to face a number of challenges choking its growth, of which credit availability to these enterprises has become one of the most important issues. The existing literature on small firm financing discusses the issues and challenges from a cross-country perspective. There is a lack of detailed research on implications of country-specific factors and financial system on small firm financing. The chapter aims to fill this gap by analyzing the extent and nature of credit constraint faced by small firms in the manufacturing sector in India and how technology may change the situation in the coming years.

Agro-processing Industries in the South AfricaN Economy

2021 ◽  
pp. 216-239
Author(s):  
Horman Chitonge
Keyword(s):  
South African ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Value Added ◽  
Value Chains ◽  
Inclusive Growth ◽  
The South ◽  
Employment Creation ◽  
Business Opportunities ◽  
Medium Enterprises

This chapter provides an overview of the agro-processing sector in the South African economy, focusing on the sector’s potential to contribute to inclusive growth through high value-added activities. The chapter shows that agro-processing industries have been the largest subsector of the manufacturing sector in the country since the 1970s, accounting for the largest share of both manufacturing output and employment. Apart from being the largest segment of the manufacturing sector, agro-processing industries have the potential to contribute to the broader national objective of transforming the structure of the economy through the creation of jobs and business opportunities for new small and medium enterprises on both sides of the agro-processing value chains. Employment creation potential lies in the fact that most agro-processing industries are labour intensive. Agro-processing industries, on average, use 40 per cent more labour per unit of capital relative to the manufacturing sector as a whole. However, the challenge is that several of the most labour-intensive agro-processing industries are experiencing declining or stagnating value-added, investment, and, most importantly, employment levels. Consistent and coordinated implementation of strategies which revive dynamism in labour-intensive industries is required to overcome this challenge.

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