scholarly journals DIGITAL DIVIDE OF SMALL AND MEDIUM-SIZED ENTERPRISES: AN ANALYSIS OF INFLUENCING FACTORS USING THE TOE THEORY

Author(s):  
CESAR ALEXANDRE DE SOUZA ◽  
ÉRICA SOUZA SIQUEIRA ◽  
NICOLAU REINHARD

ABSTRACT Purpose: This study describes the phenomenon of digital divide in small and medium enterprises in Brazil by means of an indicator of ICTs use in these organizations. Originality/gap/relevance/implications: There are several studies on the adoption of ICTs by organizations, however rare are those that explore the topic using the concept of digital divide. This study addresses the second order digital divide, related to the effective use of ICTs by companies. Key methodological aspects: The study was carried out based on a sample of 3,231 companies participating in the "TIC Empresas" survey of 2014 (published in 2015). By means of structural equations, an index was created to measure the intensity of the ICTs use in organizations and factors that affect it were verified through linear regressions. Summary of key results: The first result concerns the feasibility of an index that measures the ICTs use. Then, when analyzing its distribution, we can see the discrepancy of values between companies in relation to their size. The regression analysis indicates that the access to technology and the Internet, as well as ICTs skills and attitudes are factors correlated to a more intense use of ICTs by organizations. Key considerations/conclusions: Digital divide is a phenomenon related to high enterprise mortality rates and low productivity in small and medium-sized enterprises. This study outlines a possible way to study this phenomenon, integrating an adoption model (TOE) and a model of ICTs use in the context of second order digital divide.

Author(s):  
Orlando Manuel Martins Marques Lima Rua

The main objective of this chapter is to analyze the relationship between entrepreneurial orientation and competitive advantage on Portuguese exporting textiles small and medium enterprises (SMEs). Therefore, a quantitative methodological approach was used, conducting a descriptive, exploratory, and transversal empirical study, having applied a questionnaire to a sample of Portuguese SMEs, associated of the Portuguese textile association (ATP). The structural equations model was used for this purpose, using the partial least squares (PLS). Based on survey data from 247 firms, the empirical results indicate that 1) innovation have a positive and significant impact on differentiation, 2) proactivity and risk-taking does not have a positive and significant impact on differentiation, and 3) innovation, proactivity, and risk-taking does not have a positive and significant impact on cost leadership. This study shows that Portuguese textile SMEs seek to support and stimulate new ideas, experimentation, and creativity that surely result in new products, services, and processes.


Author(s):  
Raavee Kadam ◽  
Srinivasa Rao ◽  
Waheed Kareem Abdul ◽  
Shazi Shah Jabeen

Purpose In environments characterized by high cultural diversity, the ability to understand the cultural makeup of the workforce and the environment would equip business owners with knowledge required to innovate, take risks and proactively change their business offerings. Drawing on the upper echelons theory and action-characteristics model of entrepreneurship, the purpose of this paper is to test how competencies of small business owners, namely, cultural intelligence (CQ) and entrepreneurial orientation (EO) contribute to the performance of their firms. Design/methodology/approach Using a sample of 106 small and medium enterprises (SMEs) from the UAE, the data were collected through structured questionnaires and analyzed using partial least squares–structural equations modeling. Findings Results showed that CQ of the SME owner has a positive effect on firm performance (FP) through the mediating role of EO. Also, CQ of the SME owner was found to have a direct effect on FP, thus asserting its importance as a valuable competency that SME owners need to cultivate when operating in a multicultural environment. Practical implications Skills of the top managers greatly influence the choices and decisions they make, which in turn impact the effectiveness of their organizations. This study focuses on the role of managerial competencies that need to be cultivated among SME owners that would contribute to the growth of their firms. Originality/value This research studies the role of an individual’s cross-cultural and entrepreneurial competencies that enable the organization to achieve higher performance.


Author(s):  
Masese Chuma Benard ◽  
Mbugua Samwel Thaiya ◽  
Korongo Julia Nduta ◽  
Joram Mutai Kiptoo ◽  
Dr. Nambiro Alice Wechuli

ICTs have played a critical role within the development of business particularly small and medium enterprises. During a modern digital era, technology is most vital pillar within the provision of data and knowledge for the growth of development, sustainability, productivity and competitiveness of small and medium enterprises. The primary goal of this study was to research on the role of ICT4D in the growth and development of SMEs: a solution to digital divide. The paper used secondary data. It was noted that small and medium enterprises take part in a significant role in Kenya’s economy. Enterprises in Kenya, more especially SMEs, have enjoyed the benefits and the potential of adoption and utilization of ICT within their operations. ICT has the potential of remodeling the business and improve.


2017 ◽  
Vol 33 (59) ◽  
pp. 50-63
Author(s):  
Omar Javier Solano Rodríguez

Information technologies (IT) can be largely the solution or the problem of the sustainability and performance of small and medium enterprises (SMEs). IT is an important source of resources that can improve the competitiveness of SMEs. Therefore, the aim of this article is to identify the IT competences of SMEs and to establish their relationship with knowledge acquisition (KA), the way of managing the accounting information system (AIS) and its impact on the performance of the company. The model uses the technique of structural equations based on variance, making an empirical study based on the information of 124 Colombian SMEs in the industrial sector. The results obtained allow us to conclude that IT directly and through KA processes significantly help to increase organizational performance. It is confirmed that IT is decisive for an efficient management of AIS information, although this does not contribute to the performance of the company, given that in the relations between the SIC management variable and performance (DSEMP) a negative coefficient was identified between the constructs and with no statistical significance. This research contributes to the development of resource and capacity theories and dynamic capacity. It also allows the identification of technological capabilities of the SME, its processes in KA and how to measure the efficiency of AIS, management and organizational performance.


Author(s):  
Orlando Manuel Martins Marques Lima Rua

The main objective of this chapter is to analyze the relationship between entrepreneurial orientation and competitive advantage on Portuguese exporting textiles small and medium enterprises (SMEs). Therefore, a quantitative methodological approach was used, conducting a descriptive, exploratory, and transversal empirical study, having applied a questionnaire to a sample of Portuguese SMEs, associated of the Portuguese textile association (ATP). The structural equations model was used for this purpose, using the partial least squares (PLS). Based on survey data from 247 firms, the empirical results indicate that 1) innovation have a positive and significant impact on differentiation, 2) proactivity and risk-taking does not have a positive and significant impact on differentiation, and 3) innovation, proactivity, and risk-taking does not have a positive and significant impact on cost leadership. This study shows that Portuguese textile SMEs seek to support and stimulate new ideas, experimentation, and creativity that surely result in new products, services, and processes.


2018 ◽  
Vol 36 (1) ◽  
pp. 89-110 ◽  
Author(s):  
Mark Ojeme ◽  
Andrew Robson ◽  
Nigel Coates

Purpose The purpose of this paper is to evaluate the role of the commitment between small and medium enterprises (SMEs) and their banks in Nigeria from the perspective of the senior SME employees. The antecedents to, and outcomes from, commitment that underpin these crucial business-to-business (B2B) relationships are quantified as part of a proposed relationship model. Design/methodology/approach In total, 850 SMEs located across three Nigerian regions were targeted leading to the achievement of 491 complete surveys. The data collected comprised various validated items from which scales were developed. Data collection was supported by means of face-to-face interviews with senior SME representatives. Confirmatory factor analysis and structural equations modelling (SEM) were employed to validate the research model and quantify the associated relationships. Findings Two dimensions of commitment are relevant here, namely, the affective and calculative components. The key respective antecedents to these commitment dimensions are trust and social bonding for affective commitment and costs related to benefit loss for calculative commitment. Affective commitment has the greater marginal effect on SMEs’ behavioural intentions towards their banks. Research limitations/implications The research could be expanding further in future studies through consideration of the banks’ perspectives alongside those of the SMEs as consumers. Originality/value This lies in the assessment of the relationships’ strengths and characteristics from the perspectives of SMEs as clients, a sector under-represented in relationship marketing research and in a location where B2B relationships have perhaps not been fully supported by their banking sector.


2014 ◽  
Vol 708 ◽  
pp. 205-209 ◽  
Author(s):  
Alena Dankova ◽  
Marta Telus

The aim of this paper is to focus on the issue of financial logistics within conditions of small and medium enterprises, especially by gaining and using of financial resources by companies in selected regions in Slovak Republic.The main idea of this paper is to define possible recommendations and ideas based on the acquired knowledge for more effective use of supporting financial systems for SMEs. The aim is to eliminate regional disparities on selected area as well as possibility of using alternative sources of financing SMEs.


2020 ◽  
Vol 64 (3) ◽  
pp. 357-371
Author(s):  
Betha Igbinosun

AbstractIn a bid to improve financial inclusion and access to affordable debt finance by micro, small and medium enterprises (MSMEs), Nigeria's Secured Transactions in Movable Assets Act (STMA) was enacted on 31 May 2017 to regulate the creation, perfection and realization of security interests in movable assets. This article critically examines certain provisions of the STMA, including the potential issues that may arise due to the dual registration system now available under the act and that hitherto existing under the Companies and Allied Matters Act, as well as the implications of the STMA on traditional pledge transactions. It concludes that, while the STMA is an impressive attempt at enabling MSMEs to leverage their assets into capital for investment and expansion, it fails to procure a harmonized legal framework for secured transactions in personal property or to facilitate their effective use as collateral to improve access to credit by businesses in Nigeria.


Author(s):  
Boyang You ◽  
Conglai Fan

Based on the data set from Chinese Industrial Enterprises Database (2003–2008), this article first quantifies the net job creation of industrial enterprises in China by three methods: the base-year method ( Birch, 1979 ), the average-year method ( Davis, Haltiwanger, & Schuh, 1996 ) and the dynamic method (Davidsson, 1998). After evaluating from the results, it is concluded that the dynamic method is more precise than others. By adapting the dynamic method to the database, this article reaffirms that small and medium enterprises (SMEs) in China are the dominated power in terms of job creation. Furthermore, relationships between net job creation and several enterprise characteristics, including enterprise size, age, average salary and asset are investigated with the data calculated by the dynamic method. Instead of conventional linear regressions, a lognormal simulation is found to be more suitable to describe those relationships. Finally, the conclusion in this article indicates that not only the SMEs but also young enterprises (under the age of 5) are the major force in creating jobs in China.


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