Strategy Formulation and Organizational Structure in SMEs

Business Growth ◽

Strategy Formulation ◽

General Theme ◽

One of the biggest challenges faced by small and medium enterprises (SMEs) concerns the capacity of the entrepreneur to formulate strategies within a formal organizational structure. Very often, important knowledge about the business remains solely in the deeper levels of the entrepreneur's mind and cannot be accessed by any stakeholder. As a result, many of the good ideas that entrepreneurs have end up dying with them. This hinders business growth, business model replication, and successful succession in family businesses and SME's in general. Therefore, it is important to investigate ways to structure within the firm the strategies generated in the entrepreneur's mind, in order to prepare SMEs for growth and long-term sustainability, above and beyond the minds, hands, and lives of their founders. Our chapter explores this general theme by offering methodological insights on how to extract and formalize the tacit knowledge coming from SME founders. We focus on the formulation of strategies based on the marketing knowledge and life experience of the entrepreneur.

Sustainable Energy and the Growth of Small and Medium Enterprises in Ghana

International Business ◽

10.4018/978-1-4666-9814-7.ch037 ◽

2016 ◽

pp. 773-790

Author(s):

Ruby Melody Agbola ◽

Evans Sokro

Keyword(s):

Survey Design ◽

Strong Positive Correlation ◽

Business Growth ◽

Power Outages ◽

Fuel Prices ◽

Medium Enterprises ◽

The Impact ◽

Petroleum Fuels

The chronic shortage of petroleum fuels, especially gasoline and LPG, and the prolonged and indiscriminate power outages coupled with the recent increment in fuel prices appear to be taking their toll on Ghanaian businesses; hence, some have questioned the degree of security, reliability, and long-term sustainability of the country's energy need. The chapter assesses the impact of the recent power outages on the growth and profitability of Small and Medium Enterprises (SMEs). The study employed a survey design consisting of structured questionnaires involving a total of 190 SMEs across the country. An eight item Likert scale used to assess the impact of the energy crisis on three key measures of business growth revealed a strong positive correlation between the power outages and reduced profitability but a weak correlation with business expansion by way of market development and a statistically insignificant relationship between the power outages and growth in number of employees.

From big business to small and medium-sized enterprises: factors and prospects

Problems and Perspectives in Management ◽

10.21511/ppm.16(2).2018.04 ◽

2018 ◽

Vol 16 (2) ◽

pp. 42-48 ◽

Cited By ~ 2

Author(s):

Anton Kvitka ◽

Anna Kramarenko

Keyword(s):

Organizational Structure ◽

Service Sector ◽

The United States ◽

Total Employment ◽

Economic Changes ◽

Large Corporations ◽

The article considers changes in organizational structure (in the context of a shift in favor of small business), the main factors and long-term prospects of these changes. Enhancing the role of small and medium-sized enterprises (SMEs) in many countries of the world is described. The concept of SMEs, as well as the range of indicators measuring organizational structure, is defined. Modern trends that indicate the increasing role of small and medium-sized enterprises are shown. On the basis of dynamics of economic indicators in Europe and the United States, the increasing role of small and medium enterprises is investigated. It is shown that the increase in the share of the service sector is the result of market saturation. The influence of the service sector on the shifts in the organizational structure in the period of global economic changes, as well as the influence on the increasing share of more flexible and innovative small and medium-sized enterprises in total employment and income, is argued. Increased competition in the process of saturation of the market is shown as one of the factors of the development of personal needs that promote individual entrepreneurs, inventors and innovators, for whom a complex and rigid structure of large organizations is the factor which limits the growth and interferes with their becoming the engines of scientific and technological progress. It is proved that in conditions when large corporations find themselves unable to identify a new micro niche quickly, small and medium enterprises are becoming the most convenient form for the realization and promotion of innovation. The transition from the dominance of large corporations to the dominance of SMEs in the process of substitution of technological modes is investigated. The increasing role of small and medium firms in the context of long-term trends of economic development is considered.

Green Technology Applications for Enterprise and Academic Innovation - Advances in Environmental Engineering and Green Technologies ◽

Sustainable Energy and the Growth of Small and Medium Enterprises in Ghana

10.4018/978-1-4666-5166-1.ch009 ◽

2014 ◽

pp. 133-149

Author(s):

Ruby Melody Agbola ◽

Evans Sokro

Keyword(s):

Survey Design ◽

Strong Positive Correlation ◽

Business Growth ◽

Power Outages ◽

Fuel Prices ◽

Medium Enterprises ◽

The Impact ◽

Petroleum Fuels

The Long-Term Effectiveness of Advertising Driven Sales for E-Commerce SMEs

Proceedings of the International Conference on Business Excellence ◽

10.2478/picbe-2019-0104 ◽

2019 ◽

Vol 13 (1) ◽

pp. 1180-1191

Author(s):

Marta Christina Suciu ◽

Christian Năsulea ◽

Diana Florentina Năsulea

Keyword(s):

Business Model ◽

Business Models ◽

Medium Size ◽

Sustainable Business ◽

Advertising Budget ◽

New Business ◽

Medium Enterprises ◽

The Impact

Abstract The digital transformation allowed for new business models to emerge. As e-commerce seems to be the future of retail, an increased number of entrepreneurs are trying to better leverage advertising in a way that leads to a sustainable business model on medium to long-term. Retail enterprises are spending huge amounts of money on search engine and social media paid advertising in order to make their products visible and thus, become more profitable. However, the academic literature suggests contradictory findings on the effectiveness of paid advertising. While it seems that for already established companies like e-Bay, shutting off paid campaigns doesn’t proportionally decrease the website’s traffic, for other large companies with more competitors the findings show the opposite, meaning that most of the traffic goes down when paid-campaigns are shut off. The aim of our paper is to assess the impact of paid campaigns on the long-term revenues of small and medium enterprises activating in e-commerce. Is investing in paid advertising at the beginning enough to build a business model that can sustain itself or does less advertising translate directly in less sales? We conduct a study for a number of Romanian e-commerce businesses in order to determine the effectiveness of paid advertising and its impact on the long-term revenue stream. Our findings contribute to the existing research through valuable data on small and medium size enterprises and can help business managers make more informed decisions when it comes to their paid advertising budget and strategy.

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

Global Business Review ◽

10.1177/09721509211047648 ◽

2021 ◽

pp. 097215092110476

Author(s):

John Lee Kean Yew

Keyword(s):

Tacit Knowledge ◽

Small Businesses ◽

Global Economy ◽

Family Firms ◽

Enterprise Development ◽

Generational Change ◽

Knowledge Transformation ◽

Family Smes ◽

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.

PETA RENCANA (ROADMAP) RISET ENTERPRISE RESOURCE PLANNING (ERP) DENGAN FOKUS RISET PADA USAHA KECIL DAN MENENGAH (UKM) DI INDONESIA

Jurnal Sistem Informasi ◽

10.21609/jsi.v6i2.287 ◽

2012 ◽

Vol 6 (2) ◽

pp. 140

Author(s):

Putu Wuri Handayani ◽

J.W. Saputro ◽

Achmad Nizar Hidayanto ◽

Indra Budi

Keyword(s):

Enterprise Resource Planning ◽

Business Processes ◽

Resource Planning ◽

Fast Response ◽

National Data ◽

Critical Issues ◽

The Republic ◽

Usaha Kecil dan Menengah (UKM) di Indonesia telah dapat berkontribusi terhadap PDB (Produk Domestik Bruto) nasional sebesar 55.56% berdasarkan data Biro Perencanaan Kementerian Negara Koperasi dan UKM Republik Indonesia, pada tahun 2008. Untuk memperluas pangsa pasar dan meningkatkan daya saing UKM, UKM membutuhkan suatu aplikasi yang dapat mengintegrasikan dan mengotomatisasi proses bisnis UKM. Aplikasi ERP dapat menjadi salah satu solusi untuk UKM dikarenakan keuntungan yang dapat diberikan seperti memberikan informasi dengan waktu respon yang cepat, meningkatkan interaksi antar bagian dalam suatu organisasi, meningkatkan pengelolaan siklus pemesanan barang, dsb. Beberapa isu kritis yang dihadapi oleh UKM adalah terbatasnya dana dan kapabilitas teknologi informasi yang dimiliki. Dalam memahami kebutuhan layanan yang diperlukan oleh UKM untuk aplikasi ERP dan untuk menyediakan arahan bagi UKM serta menanggapi kurangnya riset ERP di Indonesia maka riset ini bertujuan untuk menggambarkan peta rencana jangka panjang dari agenda riset ERP yang akan dilakukan untuk UKM di Indonesia. Small and Medium Enterprises (SMEs) in Indonesia has been able to contribute to the GDP (Gross Domestic Product) of 55.56% based on national data Planning Bureau of the Ministry of Cooperatives and SMEs of the Republic of Indonesia, in 2008. To expand market share and improve the competitiveness of SMEs, SMEs need an application that can integrate and automate business processes of SMEs. ERP applications can be one solution for SMEs because of the advantages that can be provided such as providing information with fast response time, increase the interaction between the departments of an organization, improving the management of ordering goods cycle, etc. Some of the critical issues faced by SMEs are the limited funds and information technology capabilities they have. In understanding the needs of the services required by SMEs for ERP applications and to provide guidance for SMEs and response to the lack of research about ERP in Indonesia, this research aims to describe the long-term plan maps of the ERP's research agenda that will be made for SMEs in Indonesia.

Influence of Organizational Structure on the Quality of Computerized Accounting Systems among Small and Medium Enterprises in Nigeria

10.7176/rjfa/11-22-08 ◽

2020 ◽

Keyword(s):

Organizational Structure ◽

Accounting Systems ◽

PENERAPAN BISNIS MODEL KANVAS DALAM PENENTUAN RENCANA MANAJEMEN USAHA KEDELAI EDAMAME GORENG

JURNAL AGROTEKNOLOGI ◽

10.19184/j-agt.v13i01.8554 ◽

2019 ◽

Vol 13 (01) ◽

pp. 42

Author(s):

Novitha Herawati ◽

Triana Lindriati ◽

Ida Bagus Suryaningrat

Keyword(s):

Business Model ◽

Business Models ◽

Primary Data ◽

Value Proposition ◽

Middle Income ◽

Business Model Canvas ◽

Trade Offs ◽

Customer Segment ◽

Business model canvas (BMC) is a strategic management and lean start-up template for developing new or documenting existing business models. It is a visual chart with elements describing a firm's or product's value proposition, infrastructure, customers, and finances. It assists firms in their aligning activities by illustrating potential trade-offs. Business model canvas focuses on the idea of creating value in a business. The purpose of implementation of BMC was to determined the best business planning of fried edamame, when it applied to the industry or MSMEs (Micro, Small and Medium Enterprises). The method in the research used descriptive method, while the data analysis used qualitative analysis. Primary data collection was obtained from interviews. Analysis was done by compiling the initial hypothesis, hypothesis testing and verification of business model canvas (BMC). The results showed that the business model strategy for fried edamame products in the value proposition component were crispy, natural, labeled and applied good cooking oil for use. The customer segment component were the buyers of the entire Jember Regency including men and women over 20 years old with middle income. Components of revenue streams were fried edamame product sales, sale of unused oil, and sale of edamame peel to farmers, while the component channels were direct selling and retailers for fried edamame product. Keywords: business model, fried edamame, strategy, value proposition

Open Innovation Strategies in SMEs

Small and Medium Enterprises ◽

10.4018/978-1-4666-3886-0.ch015 ◽

2013 ◽

pp. 281-293 ◽

Cited By ~ 2

Author(s):

Hakikur Rahman ◽

Isabel Ramos

Keyword(s):

Business Model ◽

Value Chain ◽

Open Innovation ◽

Economic Gain ◽

Innovation Strategies ◽

Medium Enterprises ◽

Financial Base ◽

Partnership Approach ◽

Corporate Business

Open innovation in entrepreneurships already finds its acceptance at all levels of the business industry for adding value to the business. The value could be in the form of economic gain or enhancement of knowledge leading to a sustained financial base. Open innovation adopts various strategies to accomplish the task for enhancing the value gain. Varying by size, nature, pattern, or characteristics of the firm various strategies are being adopted by enterprises. Though largely known to be familiar in corporate business houses, in recent years open innovation is also becoming increasingly familiar in small and medium enterprises (SMEs) and the trend is rapidly increasing. However, despite the potency of open innovation strategies, most of the enterprises are yet to find a sustained business model, especially for the SMEs working at the periphery of that value chain. This forms the basis of the current study. This chapter is trying to formulate a business model incorporating partnership approach from academia, research houses, intermediaries, and other stakeholders.

Identifying Digital Transformation Paths in the Business Model of SMEs during the COVID-19 Pandemic

Journal of Open Innovation Technology Market and Complexity ◽

10.3390/joitmc6040104 ◽

2020 ◽

Vol 6 (4) ◽

pp. 104

Author(s):

Anjar Priyono ◽

Abdul Moin ◽

Vera Nur Aini Oktaviani Putri

Keyword(s):

Business Model ◽

Digital Literacy ◽

Environmental Changes ◽

Sampling Technique ◽

Future Research ◽

Multiple Case ◽

High Level ◽

The objective of this study was to analyze how small and medium enterprises (SMEs) cope with environmental changes due to the COVID-19 pandemic by pursuing the business model transformation with the support of digital technologies. To achieve the objective, this study used a multiple case study design with qualitative analysis to examine the data obtained from interviews, observation, and field visits. Seven manufacturing SMEs from Indonesia were selected using a theoretical sampling technique, with the purpose of achieving some degree of variation to allow us to undertake replication logic. Our analysis demonstrates that SMEs adopt a different degree of digital transformations, which can be summarized into three paths, depending on the firms’ contextual factors. First, SMEs with a high level of digital maturity who respond to the challenges by accelerating the transition toward digitalized firms; second, SMEs experiencing liquidity issues but a low level of digital maturity who decide to digitalize the sales function only; and, third, the SMEs that have very limited digital literacy but are supported by a high level of social capital. This last group of firms solves the challenges by finding partners who possess excellent digital capabilities. The qualitative case study method allows us to conduct in-depth and detailed analysis, but has thin generalizability. To address this limitation, future research can use a survey covering various industries to test the proposed theory that has resulted from this study, so that the generalizability can be assured.