Process Management for SMEs

More than 90% of companies in Spain, and other European countries, are SMEs. Therefore it is imperative to support and develop their competitiveness due to their contribution to the national economy. Thus, process management is said to be a useful means to improve efficiency and achieve a competitive advantage. Taking this into consideration the aim of this study is to identify and rank the barriers, enablers and benefits that SMEs encounter when implementing process management and to propose different initiatives to ease the implementation process. In order to fulfil this objective, a survey was conducted among SMEs that have already implemented process management so that their experience could help other SMEs. Finally, a ranking of barriers, enablers and benefits is obtained and some suggestions for managers are proposed.

Initial Price Strategies of Polish Micro and Small Enterprises

The sector of micro, small and medium size enterprises is important for any economy. It is important also for Poland. Analyzing the industrial organization of this sector it was confirmed that the owners and managers of such companies are applying strategies, which are rational from their point of view, but not from the perspective of real market conditions. It is argued therefore that the game theory is for them a solution in enhancing competences and performance of their organizations. Based on randomized sample of Polish micro and small companies the paper aimed to find out if the managers apply the game theory rationales when choosing price strategy when enter the market. It was confirmed that they do not and that they don't play Nash equilibrium in the strategic interaction when it comes to the price level. There was applied maxmin strategy, which maximises the worst - case scenario from the game. Thus there is a real chance that if entrepreneurs would analyze the situation with respect of game theory, their strategies would be more accurate and provide better outcomes.

Structural Change Management for Sustainable SME Development

This chapter addresses several approaches in investigation of the SME life cycles, particularly in respect to the structure, functions and behavior of these businesses. Once SMEs have been established they start to change both their structure and behavior. In fact, it could be stated that SMEs operate in a permanently changing environment. There are a lot of factors which influence these changes and optimizing their management is a great challenge for most SMEs. As a result of these factors and suboptimal SME management practices survival rate of new established SMEs is low. For researchers and practitioners it is therefore crucial to discover how to increase long-term survival chances of SMEs through relevant structural change. In order to contribute to this goal the chapter will consider the conceptual and research framework of the structure and practical management behavior of SMEs in change management processes. The chapter also provides suggestions on how to use practical management tools such as the PEST, SWOT and TOWS matrices and ways of their analysis.

Entrepreneurship and Enterprise Value Creation in Support of Smart, Sustainable, and Inclusive Growth in the European Union

In 2010, the European Union codified “Smart, Sustainable, and Inclusive Growth” (SSIG) as part of the Europe 2020 Strategy. Introduced in the context of the global financial crisis, SSIG seeks to restore economic resiliency and foster a more equitable, innovative and environmentally sustainable European economy. The research evaluates the processes of entrepreneurship through which small and medium enterprises (SMEs) contribute to SSIG, including through “innovation-driven entrepreneurship,” “sustainable entrepreneurship” and “social entrepreneurship.” The research additionally assesses the creation of an enabling regulatory and fiscal environment for these modes of value creation, their associated socio-economic outcomes and their monitoring and evaluation practices.

Financial Innovation in Medium-Sized Enterprises Optimizes Their Gravitation Towards Capital Markets

A major problem for medium enterprises is ensuring that their financial management exercises prudence in the attraction of alternative sources of financing in transition into middle tier, larger enterprise status and towards stock exchange. Difficulties in attracting capital, the high cost of bank credit, absence of robust financial and business information reporting capacities may represent obstacles. One partial solution is capacity development for access to stock exchanges and having these institutions with a strong allocation capacity to efficiently finance these businesses. Though underdeveloped in transition economies, they are potentially important institutions in successful financial performance of businesses. In a review of conditions for handling risk and uncertainty, developing capacity for access to stock exchanges through working capital combinations, this treatise demonstrates that medium enterprises could benefit from this approach. Regulatory reforms to facilitate the use of stock exchange financing and well-designed financial management models are recommended.

A Further Look at Working Capital Optimization in Medium-Sized Firms

SMEs battling with financial volatility require financial and business ambidexterity. To them working capital optimization is one partial solution to improve performance. Examined concepts will not develop a spectacular model but rather quantitatively - qualitatively upgrade existing theories. The treatise will demonstrate that in stochastic working capital decisions important are varieties of alternatives. A structural model of working capital optimization is developed with practical examples for financial decision making under uncertainty. Emphasis will be placed on structuring management problems with the analysis of preferences using probability tools. Additional light is shed on coupling static and dynamic indicators, systemically approaching inventory and cash management, sales and purchasing, costs and profitability. Working capital optimization can contribute to management of financial risk and have an overall impact in medium sized enterprises. Conclusions and recommendations will aim to contribute to the overall body of knowledge on optimized financial decision making.

Regression Analysis for Environmental Practices

The aim of this research is to shed light on establishing a successful integration of environmental practices among small and medium enterprises (SMEs). The purpose is to develop a better understanding of what drives SME participation into potential environmental practices within a context in Finland. Specific objectives are to: 1) assess the willingness to participate (WTP) among Finnish SMEs based on four drivers - financial performance, internal readiness, supplier pressure and governmental regulations; 2) separate respondents into demographical subgroups based on their WTP; and 3) determine features that characterize Finnish SMEs which are WTP based from the studied sample.

Knowledge Management Optimization through IT and E-Business Utilization

This chapter, which is the first part of fundamental research related to optimization of SMEs knowledge management, elaborates relevant key optimization criteria. First section deals with optimizing electronic forms of communication, web site material, management effectiveness, customer management and procedures for electronic responses, channels of communication, SME cooperation mechanisms. In the second part analyzed is knowledge management optimization, modernization of SMEs, the level of use of modern information, development of employees and partners, financing the development of IT employees, the budget for information technology, innovative knowledge management in budget planning, the benefits of electronic payment cards, communication of employees and management and IT innovation. Exploration of these questions further examines impact of new technologies, IT in optimizing the development of competitive capacity and advantages from SME technological inputs and outputs. Finally, the chapter offers appropriate conclusions and recommendations.

Integrating Sustainable Development into Project Portfolio Management through Application of Open Innovation

In recent years, the idea of integration of sustainability into project management has been put forth, which requires a more comprehensive and holistic approach to project management. Integration of sustainability increases the complexity of project management. Therefore, project management organizations require a framework capable of opening up the traditional organization of the project business and providing competitive advantages. This study argues that the open innovation model presents the requisite capability to approach this issue. This research, through a structured review of the literature and an overview of the open innovation and project management knowledge areas, explains how open innovation can provide a fruitful contribution to the integration of sustainable development into project portfolio management and why it should be favoured. The findings show that open innovation can facilitate the environmental, social and economic sustainability of projects, while rendering the project organization more agile.

Development of an Optimization Tool for Intangibles in SMEs

The purpose of this chapter is to present research findings and address the conclusion that intellectual capital is present, measurable and can be optimized in SMEs. The theoretical part of the chapter presents a review of tools for measuring intellectual capital. By using this concept, SMEs recognize the importance of intellectual capital and accept methods by which they can convert their businesses into knowledge based companies. This approach has evolved very dynamically as changes in business development and intellectual capital continue to develop. The chapter also provides the newly created tool for optimizing intellectual potential in SMEs, tested through a pilot research in an SME, the “Prestige by Milka” company. As it can be seen from the chapter, neglecting intangibles frequently results in suboptimal business development. It is expected that the conclusions and recommendations of this study will reveal possible directions for further development of optimization potential and intellectual capital in SMEs.