SMEs’ financial risks in supply chain trade with large companies: The case of Italian automotive component industry

2021 ◽  
Vol 47 (2) ◽  
pp. 126-137
Author(s):  
Marco Errico ◽  
Ivan De Noni ◽  
Claudio Teodori
Keyword(s):  
Supply Chain ◽  
Small Businesses ◽  
Financial Stability ◽  
Small And Medium Enterprises ◽  
Scale Efficiency ◽  
Accounts Payable ◽  
Product And Process Innovation ◽  
Product And Process ◽  
Casting Industry ◽  
Medium Enterprises

Becoming a supplier of large companies is traditionally considered to be positive for small and medium enterprises’ (SMEs) competitiveness. Small businesses can take several advantages by joining supply chain trade with large companies such as scale efficiency and productivity as well as technological and managerial abilities, product and process innovation, market positioning, and reputation. However, not everything is convenient per se. The subcontracting by large companies might provide some financial criticalities that need to be faced and properly managed by SMEs to exploit supply chain benefits without affecting financial stability and losing competitiveness. In this direction, the literature on supply chain finance has recently focused on financial issues related to working capital optimization in terms of accounts payable, receivable, and inventories. Adopting this perspective, the study contributes to a better understanding of SMEs’ financial constraints in supply chains driven by large companies by investigating a sample of small Italian firms, which operate in the metal casting industry and by comparing firms joining and not joining the automotive supply chain.

Combining Knowledge to Improve Product and Process Innovation and Performance of SMES in Developing Economies

2020 ◽  
Vol 17 (02) ◽  
pp. 2050013
Author(s):  
Fábio de Oliveira Paula ◽  
Jorge Ferreira da Silva
Keyword(s):  
Developing Economies ◽  
Small And Medium Enterprises ◽  
Process Innovation ◽  
Technology Firms ◽  
High Technology Firms ◽  
Product And Process Innovation ◽  
Product And Process ◽  
And Performance ◽  
Medium Enterprises ◽  
The Relationship

The aim of this study was to investigate how combining internal and external knowledge sources (KS) may influence product and process innovation of small and medium enterprises (SMEs) from developing economies in order to improve their financial performances (FPs). Previous research mostly supported that internal KS influence innovation directly as well as indirectly, moderating the relationship between external KS and innovation performance (IP), with this moderation being more prominent in the case of high-technology firms. These studies also supported that innovation influences FP more strongly in this type of firm. The present study proposes that, in developing countries, the opposite occurs. The moderation relationship of internal KS on the relationship between external KS and IP would be stronger in low-technology firms, as well as the positive effect of innovation on FP. We tested our propositions using a sample of 1551 Brazilian manufacturing SMEs controlling by the technological intensity of the industry and confirmed a good part of the proposed hypotheses.

scholarly journals The Role of Trade Credit in Activities of Small and Medium-Sized Enterprises

2020 ◽  
Vol 12 (6) ◽  
pp. 126-135
Author(s):  
E.A. Panova ◽  
Keyword(s):  
Small Businesses ◽  
Price Competition ◽  
Trade Credit ◽  
Small And Medium Enterprises ◽  
Negative Relationship ◽  
Bank Lending ◽  
Cash Flows ◽  
Accounts Payable ◽  
Medium Enterprises ◽  
Return On Sales

Trade credit has a special meaning for small and medium-sized enterprises (SMEs). When they act as a supplier, it allows them to increase sales and cash flows, and helps establish and maintain permanent relationships with clients. Deferred payment provision is a tool for non-price competition, giving a client time to make sure of product quality. Trade credit as a financial source is an important alternative to bank lending. The article is devoted to studying the determinants of accounts payable in Russian industrial SMEs.It is based on the financial indicators calculated using the SMEs’ accounting statements for the period 2010–2018, published by Rosstat. The statistical data analysis has led to the conclusion that accounts payable are the main borrowed financial source for Russian industrial SMEs. The results of the regression analysis demonstrate a direct dependence of the accounts payable amount on sales growth and a reverse dependence of the former on the liquidity both in small and medium enterprises. Small businesses are also characterized by a negative relationship between return on sales and the accounts payable amount.

Environmental Protection through Small Businesses: An Analysis of the Role of Stakeholders in Green Operations

2011 ◽  
Vol 356-360 ◽  
pp. 2555-2565 ◽  
Author(s):  
Raja Zuraidah Raja Mohd Rasi ◽  
Amir Abdekhodaee ◽  
Romesh Nagarajah
Keyword(s):  
Small Businesses ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Environmental Orientation ◽  
Environmental Practices ◽  
Environmental Initiatives ◽  
Top Managers ◽  
Product And Process ◽  
Medium Enterprises ◽  
The Impact

In this paper we investigate key causal linkages in proactive environmental practices based on an empirical study of 232 Malaysian Small and Medium Enterprises (SMEs). We propose a conceptual framework and test this framework using Structural Equation Modelling (SEM). The key focus of this study is to explore SMEs’ environmental initiatives and the impact of stakeholders’ involvement in determining SMEs’ environmental strategies. The study examines the relationship between stakeholders’ involvement (customers, suppliers, government, top managers and employees) and proactive environmental practices (internal management systems, process-based changes, product-based changes). The results support the notion that SMEs have moved to develop an increasingly proactive environmental orientation. Although our survey strongly suggests that each stakeholder has a different role and impacts differently on SMEs’ sustainability practices, vertical partners play the most critical roles in supporting environmental practices based on product and process-based changes.

scholarly journals BUSINESS ENVIRONMENT, INNOVATION CAPABILITY AND BUSINESS PERFORMANCE: EMPIRICAL STUDY OF JAKARTA’S FLOUR BASED FOOD SMEs

2009 ◽  
Vol 8 (1) ◽  
Author(s):  
V. Rachmadi Parmono ◽  
Y. Eko Widodo
Keyword(s):  
Business Performance ◽  
Government Regulation ◽  
Small And Medium Enterprises ◽  
Business Environment ◽  
Innovation Capability ◽  
Managerial Implication ◽  
Product And Process Innovation ◽  
Product And Process ◽  
Medium Enterprises ◽  
The Relationship

This study is concerned on the relationship between innovation capability and business performance in small and medium enterprises context. The existing studies generally have analyzed the issues pertaining of innovation capability in large business or knowledge intensive firm context. By researching of the innovation capability of small and medium enterprises (SME’s), it will review innovation capability in a broader and novel context. The SME’s operate in a competitive environment and are not very advanced technologically. This research proposes statistical hypotheses to study these based on data samples. By employing path analysis, This research test the relationship between innovation categories and business performance. The result of our study show that government regulation directly affects to innovation capability, product and process innovation capability directly affect business performance in SME’s. Finally, managerial implication will be discussed.

scholarly journals Factors affecting financial stability of small and medium enterprises: A case study of emerging markets

2017 ◽  
Vol 7 (1) ◽  
pp. 7-17
Author(s):  
Nonhlanhla Mbatha ◽  
Musawenkosi Ngibe
Keyword(s):  
South African ◽  
Financial Reporting ◽  
Small Businesses ◽  
Financial Stability ◽  
Negative Impact ◽  
Small And Medium Enterprises ◽  
Practical Experience ◽  
The South ◽  
Factors Affecting ◽  
Medium Enterprises

Small and Medium Enterprises (SMEs) play a significant role in the South African economy as they provide job opportunities to communities and contribute to the South African gross domestic product. However, the majority of small businesses lack financial skills, which results in the falsification of financial information and analysis and inaccurate financial reports leading to decline of confidence by investors and negative impact on stakeholders. Therefore, this study examines the critical factors that affect SME’s financial stability which in the long run result in the liquidation of SMEs. The study was descriptive and quantitative in nature, using questionnaires to collect data from a sample of one hundred and twenty (120) SMEs across the Durban area. The findings show that lack of understanding of financial reporting has a negative impact on the financial stability of the business. Also the lack of insufficient financial experience proved to have a negative impact on the financial stability of SMEs. The study recommends that a short accounting programme should be developed by government incubators to assist and provide owners and accounts staff of SMEs with practical experience in financial reporting in order to increase their level of understanding financial reporting processes.

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.

Performance of supply chain management and digitalization of human resource information in SMEs

2021 ◽  
Vol 9 (2) ◽  
pp. 277-282 ◽  
Author(s):  
Ansa Savad Salim ◽  
M. M. Sulphey
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Human Resource ◽  
Small And Medium Enterprises ◽  
It Infrastructure ◽  
Chain Management ◽  
Resource Information ◽  
Vernacular Language ◽  
Information Practices ◽  
Medium Enterprises

The aim of this study is to determine the influencing factors of Supply Chain Management and digitalization of human resource information practices in the small and medium enterprises of Oman. Digitalization of human resource information is the adoption of electronic means to the human resource activities of Supply Chain Management. In this system, the whole human resource activities are implemented through electronic means with the support of information technology (IT) infrastructure. To measure the Digitalizationof Human Resource Information Practices and the performance level of Supply Chain Management, two adopted constructs from two different studies were used. The study samples were taken from the SMEs of Oman. Almost 180 employees of different provinces responded to the questionnaires translated into vernacular language through google forms and a few hardcopy surveys were distributed to different locations with the support of SMEs and few entrepreneurs. The study found a significant positive relationship between the Performance of SCM and the Digitalization of Human Resource Information of a prominent variable electronic communication and other variables were found with no significant relationship. The finding of the study acts as a significant contributor to the existing literature on SCM as well as human resource management.

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.

Family Firms, Enterprise Development and Tacit Knowledge Transformation: Small and Medium Enterprises (SMEs) Innovation in Malaysia

2021 ◽  
pp. 097215092110476
Author(s):  
John Lee Kean Yew
Keyword(s):  
Tacit Knowledge ◽  
Small Businesses ◽  
Global Economy ◽  
Family Firms ◽  
Small And Medium Enterprises ◽  
Enterprise Development ◽  
Generational Change ◽  
Knowledge Transformation ◽  
Family Smes ◽  
Medium Enterprises

In light of the global economy, it is undeniable that small businesses such as family-owned small and medium enterprises (SMEs) affect economic performance globally. They offer a key basis of flexibility and innovation but also face some challenges along the way. Since family SMEs form a large portion in the Malaysian corporate sector, the economy of this country is highly dependent on family firms’ entrepreneurial capacity. During the past decade, although family SMEs innovation is analytically and empirically reviewed in terms of theory building, it still lacks a systematic adoption of thorough and theoretically-based frameworks to gain understanding on the evolution of knowledge transformation surrounding this topic. This study primarily focuses on the development of tacit knowledge through innovation during generational change with specific attention given to three family firms ranging from old, new and declining wealth enterprises. Besides, this article appraises the evolution of SMEs innovation when new generations attempt to transform the tacit knowledge in advancing the products innovation and quality branding in Malaysia.

Sign in / Sign up

Export Citation Format

Share Document