Operations management and advanced manufacturing technologies in SMEs

PURPOSE: The purpose of the present research note is to give an overview of research in the field of risk management in leasing SMEs as well as to present fields for future research. It intends to encourage other researchers to fill the current gap in research on risk management in general and on risk management in (German leasing) SMEs in particular. DESIGN/METHOD: The research note is based on interviews with 40 German leasing firms, thereof 35 SMEs. Qualitative research was chosen due to the nascent knowledge area and to explore cause-effect- -relationships as well as to gain a deeper understanding of the practical requirements on risk management. RESULTS/FINDINGS: A research framework was presented based on the findings of the literature review. Based on the interviews, the framework could be drilled down into more operative, leasing-specific topics. Amongst others, it could be found that the risk management organisation is greatly shaped by the underlying risk strategy, the motivation for risk management, as well as the essential risks. These three elements form the basis for the operative and strategic risk management practice. Furthermore, it was differentiated in the different lifecycle phases of risk management. ORIGINALITY/VALUE: The presented research note is based on the first known research in the field of risk management for German leasing SMEs with a comparable number of interviews. Therefore, this research note includes a high degree of novelty. Adapting the findings in practice as well as combining it with other research questions might add significant value to risk management research as well as practice not only limited to the German leasing industry. KEYWORDS: risk management, small and medium-sized enterprises (SMEs), leasing, financial services, Germany. JEL: A12, D81, G32

Using the technology-organization-environment framework, this paper investigates elements that affect the adoption of e-commerce technology by Jordanian small- and medium-sized enterprises (SMEs). Cloud computing, logistics digitalization, and AI-driven customer engagement serve as elements for technological readiness assessment. In contrast, regulatory compliance readiness and supportive government measures are other significant factors for the study. Survey questionnaires for 425 respondents, including SME owners and managers alongside employees from different Jordanian industries, were distributed between March and July 2024 through stratified random sampling. SEM served as the model for evaluating and testing the hypotheses. The examination shows cloud computing readiness (β = 0.34, p < 0.01) combined with AI-driven customer engagement (β = 0.42, p < 0.001) along with logistics digitalization (β = 0.38, p < 0.001) to be the vital drivers that boost e-commerce adoption among SMEs. The findings show that readiness for regulatory compliance failed to impact enterprises’ adoption rates of e-commerce substantially. The government support strengthened the positive impact of technological enablers on e-commerce adoption. The research results present crucial knowledge that shows policymakers and SME managers why they should invest in specific digital infrastructure, improved financial support systems, and less complex regulatory frameworks to support successful digital transformation among Jordanian SMEs.

PurposeThe purpose of this paper is to investigate the influence of entrepreneurs’ social competence (SC) on small and medium-sized enterprise (SME) performance.Design/methodology/approachPrimary data of 250 manufacturing SMEs were collected through a survey method. The influence of SC on performance was tested using structural equation modelling (SEM).FindingsOverall, the findings suggest that SC dimensions have a positive influence on SME performance in terms of nonfinancial perspective. More clearly, the findings show that out of five dimensions of SC, which include social adaptability, social perception, social expressiveness, persuasiveness and impression management; social perception, persuasiveness and impression management have direct effect on customer perspective; persuasiveness, social expressiveness and social adaptability have a direct influence on internal business processes and social adaptability, social perception, impression management and social expressiveness are directly related with learning and growth. Contrary to expectations though, social perception and social adaptability were significantly and negatively associated with internal business processes and customer perspective, respectively, while there was no significant correlation between social expressiveness, persuasiveness and impression management with customer perspective, business processes and learning and growth in that order.Practical implicationsThe current study affirms that SMEs managed by entrepreneurs and managers who possess high levels of SC, may have a better performance compared to those operated by entrepreneurs with low levels of SC. This justifies a need for SME entrepreneurs and managers to work hard to improve their SC capabilities.Originality/valueThis study is pertinent and unique because, it extensively examines each of the five dimensions of SC in relation to nonfinancial indicators of SME performance. Besides, the study also provides additional evidence of the impact of SC on SME performance by suggesting that entrepreneurs who are socially competent are more likely to own highly successful ventures.

PurposeFirst, this study aims to examine the level of implementation of lean manufacturing (LM) practices by the small- and medium-sized enterprises (SMEs) in the wooden furniture industry in Jepara. Second is to examine the impact of LM practices on operational performance (OP) and business performance (BP). Third is to examine the impact of LM practices on BP with OP as a mediating and moderating variable. OP is the quantifiable aspect of the process of an organisation, such as production cycle time, reliability and inventory turnover, whereas BP is usually related to the responsibility of the firms to their shareholders and has the goal of profit maximization.Design/methodology/approachThis study used primary data collected through an offline questionnaire. The questionnaire was intended to identify the extent of the implementation of LM practices and the level of OP and BP achieved by SMEs. The LM practices consist of 6 dimensions with 26 indicators; OP, 4 dimensions with 11 indicators; and BP, 3 dimensions with 9 indicators. The data obtained from the questionnaire were processed via partial least squares (PLS) regression using the SmartPLS software. PLS is generally used to assess the extent to which LM practices predict values in OP and BP.FindingsA total of 100 questionnaires were administered, of which 81% were properly filled, completed and returned. The result of the study confirms that LM practices should be applied collectively and comprehensively as each practice is interdependent. Moreover, it confirms that these practices have a direct effect on OP and BP and that OP can drive broader BP measures. Finally, the result confirms that these practices can improve BP indirectly with OP as a mediator variable. While the empirical evidence in this study supported the role of OP as a mediating variable between the implementation of LM practices and OB, it did not support the role of OP as a moderating variable.Research limitations/implicationsFirst, it is arguable that LM practices, OP and BP are only measured by the Likert scale, which would likely create bias and inconsistency from the owners or managers of SMEs in expressing the level of LM practices and performances achieved by the SMEs in the wooden furniture industry. Future research may help establish qualitative approaches to better measure the LM practices as well as the OP and BP through observation and probing. Second, this study was limited geographically (limited to only the SMEs in the wooden furniture industry in Jepara and did not cover all regions in Central Java as well as in Indonesia). Therefore, a wider geographical area could be considered, including the other regions in Indonesia which also produce wooden furniture.Practical implicationsThis study practically contributes to the LM body of knowledge by identifying the relationships among the LM practices, OP and BP in SMEs. Understanding these relationships will help the owner or managers of SMEs make better decisions in achieving the OP and BP. The owner or managers of SMEs who implement the LM practices individually may experience disappointing performance results as these practices should be applied collectively and comprehensively.Social implicationsThe LM practices may help the owners or managers of the SMEs to be competitive and achieve the optimum result.Originality/valueThis is the first known study that adopts the PLS framework to examine how OP measurement affects the relationship between the LM practices and BP in the case of the SMEs in Indonesia.

PurposeThis paper aims to unpack how small and medium-sized enterprises (SMEs) can operationalise coopetition in talent management, addressing ongoing talent shortages in the hospitality industry which were intensified during the Covid-19 pandemic.Design/methodology/approachThis conceptual paper draws from literature on coopetition and talent management in SMEs. Specifically, the authors take an interorganisational talent pool lens and develop a framework following the principles of open-systems theory.FindingsThe authors find that the traditional use of talent pools is often impractical for SMEs because of a lack of resources and capabilities. Instead, interorganisational talent pools, through coopetition in talent management, can aid these firms to address talent shortages. The authors identify potential for SME coopetition at various stages, including attraction, development and retention of talent.Practical implicationsCoopetition in talent management can aid industries in establishing market-thickening pipelines. Through co-attracting, co-developing and co-retaining talent, SMEs can create interorganisational talent pools. To develop talent management coopetition, a set of prerequisites, catalysts and potential inhibitors must be analysed and managed.Originality/valueThis paper moves the talent management debate beyond competition for talent, introducing coopetition as a viable alternative. Taking an open-systems perspective, the authors develop an integrative framework for coopetition in talent management in SMEs encompassing input, process and output components. The authors reveal the dynamic and complex nature of this coopetition process, highlighting the essential role of coopetition context and illustrating open-system principles.

PurposeThis study examines the effect of non-financial variables related to governance on the accuracy of financial distress prediction among Egyptian listed small and medium-sized enterprises (SMEs), by using the logistic regression technique.Design/methodology/approachThis study used a sample of 24 Egyptian-listed SMEs in each year, totaling 120 firm observations, of which 25 were classified distressed and 95 of them non-distressed between 2014 and 2018. The variables for the study included five financial variables and thirteen non-financial variables related to governance. The models were developed using financial variables alone as well as combining financial and non-financial variables related to governance.FindingsThe results showed that the model with financial variables had a prediction accuracy of 91.7% , whereas models with a combination of financial and non-financial variables related to governance predict with comparatively better accuracy of 92.7 and 93.6% .Research limitations/implicationsAlthough the results seem to be conclusive, it could be noted that the non-distressed sample was not paired with the distressed sample. Other studies showed that paired samples increase the financial distress prediction rate. Furthermore, due to the small sample size, this study was unable to create a hold-out sub-sample for the accuracy test.Practical implicationsThe proposed distress prediction model for SMEs is effective for stakeholders, including banks and other financial institutions, in the assessment of the credit risk of SMEs. Using such a model, they could better identify SMEs with a higher risk of failure in their lending decisions. Moreover, SME managers' could be interested in using such models as a tool for planning corrective action, in addition to planning and controlling current operations to avoid financial failure in the future.Originality/valueThis study contributes to financial distress prediction literature in different ways. First, few studies were conducted in the area of financial distress among SMEs. Second, neither of these studies was conducted within the Egyptian context, nor any of them had used non-financial variables related to governance in the prediction of financial distress among SMEs.

BackgroundTobacco control should be a higher public health priority in Japan. Some workplaces provide smoking cessation support and connect employees to effective smoking cessation treatments such as outpatient clinics. However, tobacco control measures have not been sufficiently implemented in Japan, especially in small- and medium-sized enterprises (SMEs), where resources are limited. Organizational commitment and consistent leadership are crucial to facilitate implementation, but research on whether supporting organizational leaders leads to health behavior changes among employees is limited.MethodsThis hybrid type II cluster randomized effectiveness implementation trial (eSMART-TC) aims to examine the effects of interactive assistance for SME management on health and implementation outcomes. We will provide interactive assistance to employers and health managers for 6 months, aiming to promote the utilization of reimbursed smoking cessation treatments by public health insurance and to implement smoke-free workplaces. The intervention will consist of three strategies: supporting employees through campaigns, tailored ongoing facilitation, and ensuring executive engagement and support. The primary health and implementation outcomes will be salivary cotinine-validated 7-day point-prevalence abstinence rate, and the adoption of two recommended measures (promoting utilization of smoking cessation treatment and implementing smoke-free workplaces) 6 months after the initial session, respectively. Other outcomes for implementation (e.g., penetration of smoking cessation clinic visits), health (e.g., salivary cotinine-validated 7-day point-prevalence abstinence rate at 12 months), and process (e.g., adherence and potential moderating factors) will be collected via questionnaires, interviews, logbooks, and interventionists’ notes at 6 and 12 months. An economic analysis will be undertaken to assess the cost-effectiveness of the implementation interventions at 12 months.DiscussionThis will be the first cluster randomized controlled trial to evaluate the effectiveness of an implementation intervention with interactive assistance for employers and health managers in SMEs on smoking cessation and implementation of evidence-based tobacco control measures in SMEs. The findings of this trial targeting management in SMEs have the potential to accelerate the implementation of evidence-based smoking cessation methods as well as abstinence rates among employees in SMEs across Japan.Trial registrationThe study protocol has been registered in the UMIN Clinical Trials Registry (UMIN-CTR; ID: UMIN000044526). Registered on 06/14/2021.

Predominant enterprises use predictive analytics as their main instrument to control monetary perils starting from foreign exchange (FX) exposure. Small and medium-sized enterprises (SMEs) encounter substantial obstacles when it comes to implementing data-driven approaches although large corporations have already accepted this methodology. The evaluation analyzes how organizational aspects contribute to the implementation of predictive analytics for FX exposure management within SMEs along with major adoption hindrances and assistance elements. The potential of predictive analytics for risk management in SMEs depends strongly on factors which include their technological capabilities and financial resources and data access limitations and workforce expertise alongside regulatory demands. Predictive analytics solutions for SMEs need dedicated development to match their needs while training programs and policy changes will help increase wide-spread implementation. Future studies need to concentrate on building both economical and easy-to-use technology models while investigating the behavioral aspects which determine acceptance rates. SMEs who successfully overcome obstacles in adopting predictive analytics technology will build better financial stability while keeping their market competitiveness strong.

Purpose The purpose of this paper is to establish how small- and medium-sized enterprises (SMEs) in water, beverage, soap, detergent, metal fabrication, wood and furniture manufacturing industries can sustain or improve their competitive advantage by integrating specific resources and capabilities. The paper seeks to offer an alternative framework “resource capability-based view (RCBV)” that provides a strategic marketing direction for SMEs regarding how innovative marketing practices and dynamic marketing capabilities integrate to create sustainable market advantage. Design/methodology/approach This current paper employed a quantitative survey design with a positivist methodological research paradigm. The paper used a multi-stage stratified and simple random sampling technique to collect data from 591 manufacturing SMEs in Ghana. SMEs in water, beverage, soap, detergent, metal fabrication, wood and furniture manufacturing industries were sampled for the study. A structural equation model was employed to test the study hypotheses to arrive at the findings. Findings The study found that product design and packaging innovations, promotion innovations, retail innovations and pricing innovations provide sustainable market advantage for water, beverage, detergent and metal fabrication SMEs. The paper also found that new product designs and packages are the major drivers of sustainable market advantage followed by innovative retail outlets. The paper further originated that integrating marketing competence (marketing resources and marketing capabilities) and innovative marketing activities provides a marginal improvement in competitive advantage. Physical resources may result in market advantage but integrating physical resources with dynamic marketing capabilities provides sufficient competitive sustainability in a competitive market. Practical implications SMEs in water, beverage, soap, detergent, metal fabrication, wood and furniture manufacturing industries should prioritise their key marketing resources and capabilities in product designs, promotion, pricing and retailing innovations in order to sustain market advantage. Old products should not be faded from the market but rather SME managers should employ innovative retail strategies, such as eco-friendly advertising, product re-branding and digital platforms (social network sites and websites), which are important to sustaining market performance. Government must develop targeted policies to bridge the information gap between SMEs and research institutions such as universities through regular subsidised entrepreneurial training and creation of semi-annual industry-academic fairs. The main theoretical contribution of this current paper is the development of “RCBV” as a framework which shows how SMEs can integrate specific resources and capabilities to achieve sustainable market advantage. This framework offers an integrative view of conventional resource-based view and dynamic capability theory (DCT) which are independently examined in the literature. Originality/value This current study has proposed an integrated and elaborative approach to the conventional resource-based view and DCT which does not provide a composite understanding in the literature. SMEs may lack the needed resources and capabilities to introduce new products or extant product lines but this paper has demonstrated that how SME can sustain market advantage of existing product(s) by synchronously using specific marketing resources and capabilities. The proposed framework offers a guide for SMEs to integrate their physical resources and capabilities to sustain their market advantage.

PurposeThis paper aims to examine the influence of accounting information system (AIS) success on planning process effectiveness (PPE) in small- and medium-sized enterprises (SMEs) of Yemen, a less developed nation (LDN).Design/methodology/approachThis study developed a theoretical model based on IS success model (DMISS2003). The model’s components were tested using structural equation modeling via SmartPLS on a sample of 325 SMEs.FindingsThe empirical results imply that AIS success positively affects PPE if SMEs focus on AIS information quality, system quality, user satisfaction and usage.Research limitations/implicationsThis study focused on SMEs in Yemen. Thus, it can be expanded to include different other countries.Practical implicationsThe results of this study could be considered by owners and managers of SMEs, policymakers and AIS designers/vendors. This study could provide them insight into the role of AIS success in promoting PPE in SMEs. This study could assist policymakers in analyzing the work of SMEs and assessing their success, referring to AIS. Moreover, knowing the most critical determinants of AIS success could direct designers’/vendors’ efforts toward upgrading and improving the present AIS.Social implicationsGovernment policymakers in LDNs considering how to motivate SME development in their nation should be aware of the significance of AIS success and implementation among SMEs and its role in the nation’s economic development.Originality/valueThis research is one of the first that investigates the impact of AIS success on PPE in SMEs. Current literature largely lacks the investigation of such an impact, especially among SMEs in LDNs such as Yemen. Most AIS’s prior research focused on SMEs in developed nations, which may not fully apply to LDNs such as Yemen. Indeed, no existing literature is available where AIS success impacts PPE in SMEs of LDNs. In this respect, this study claims its uniqueness.

PurposeThis study aims to investigate the influence of the digitalization of corporate social responsibility (CSR) on the sustainable competitive performance (SCP) of small- and medium-sized enterprises (SMEs) in an emerging economy and to examine the moderating effect of digital organizational culture on this relationship.Design/methodology/approachData collection was conducted through a survey completed by 311 owners and top managers operating in service, trading and manufacturing sector SMEs positioned within the twin cities of Pakistan. A convenient purposively sampling technique and snowball method were used for data collection, and structural equation modeling was used for data analysis.FindingsThe results of this study suggest that CSR digitalization has a markedly positive influence on the SCP. Digital organizational culture appears to moderate these relationships.Practical implicationsThis study highlights the importance of considering CSR digitalization and fostering a digital organizational culture for SMEs to achieve SCP. The findings provide valuable insights for strategic decision-makers, including owners, CEOs and senior management of SMEs, to enhance their knowledge concerning how and why a digital organizational culture makes it easier to digitalize CSR activities, with the ultimate objective of ensuring SCP and SME growth. Overall, the findings of this study have practical implications for policymakers and managers in SMEs as they can promote the adoption of digital technologies in CSR initiatives and develop a digital organizational culture within the organization. This would contribute to enhancing the SCP of SMEs. Thus, this research is beneficial for business actors, policymakers and researchers seeking to enhance SMEs’ SCP.Social implicationsThis study provides valuable guidance to the senior management of SMEs regarding successfully adopting and integrating digital technologies into their CSR practices. This integration can lead to increased social and environmental benefits, which positively impact both business and society. Policymakers can use these findings to develop policies and initiatives to encourage CSR digitalization among SMEs. By providing support and incentives for digital transformation, policymakers can help SMEs adopt digital tools to improve their CSR performance, contributing to economic growth and sustainability.Originality/valueThis study pioneers research on the links between CSR digitalization, digital organizational culture and the SCP of SMEs. This study contributes to the literature by defining CSR digitalization as an antecedent to the SCP of SMEs. In addition, this study underlines the significance of CSR digitalization for the achievement of SMEs’ SCP of SMEs with the moderating role of digital organizational culture. Overall, this study enriches the resource base view literature through empirical evidence.

This study examines the impact of proactive orientation on the performance of Small and Medium-Sized Enterprises (SMEs) in Delta State, Nigeria, with a focus on two key proactive behaviors: Anticipating Challenges and Threats (ACT) and Learning and Adaptation (LA). Using a sample size of 390 SMEs across various sectors in Delta State, the study investigates how these proactive behaviors influence SME performance in terms of growth, competitiveness, profitability, and sustainability. A quantitative research approach was adopted, utilizing structured questionnaires to collect data from SME owners and managers on their proactive strategies and corresponding business outcomes. The findings reveal that both ACT and LA significantly enhance the performance of SMEs in Delta State. SMEs that proactively anticipate potential challenges and threats are better equipped to mitigate risks and maintain operational continuity, thereby enhancing their resilience in the face of external shocks. Similarly, SMEs that engage in continuous learning and adaptation processes are more flexible, innovative, and responsive to changes in the market, which significantly contributes to improved business performance and long-term growth. The study recommends that SME owners and managers in Delta State should focus on developing strategies to anticipate potential market challenges and invest in continuous learning and adaptation processes. This would involve creating systems to assess and respond to environmental changes and adopting innovative approaches to problem-solving and growth.In terms of contributions to knowledge, this study provides empirical evidence that proactive behaviors, specifically ACT and LA, are crucial for enhancing SME performance in a developing economy such as Nigeria.

PurposeThis study aims to investigate how marketing communication (MC) and nascent corporate communication (CC) strategies are juxtaposed in the small- and medium-sized enterprise (SME) setting.Design/methodology/approachA qualitative research method based on a multiple case study approach is elaborated in a South-East Asian emerging economy.FindingsThe key findings show that MC and nascent CC strategies coexist in SMEs, and are frequently closely interwoven, enabling the introduction of an integrated hybrid communication (IHC) theoretical perspective in this context. Four requisites inform IHC management: communicate the identity/roots; establish and communicate the relationship with multiple stakeholders; communicate the product/service to customers; and communicate other activities of the firm (e.g. corporate social responsibility and brand identity). SME managers were predisposed to use at least three communication channels among the following: advertising, sales promotion, public relations, direct marketing and/or personal selling. Furthermore, managers generally preferred internet-enabled communication.Research limitations/implicationsThis study provides fresh insights into how SMEs could integrate their communication strategies to increase their survival chances and business growth. However, the need to develop SMEs is required in every economy. Thus, the present findings could be seen as relevant to various audiences (academic, practitioners and/or policy-makers) such as for managers from Western and/or European settings who are interested in operating in the Malaysian economy.Practical implicationsBy using the four requisites that inform IHC, owners/managers of SMEs can adopt a more holistic approach, by strategically planning communication activities using both communication typologies (i.e. product and firm level). Thus, SMEs will be able to enhance clarity and consistency in their communication strategy and achieve brand equity across relevant stakeholders in the long run.Originality/valueThis study introduces the IHC theoretical perspective and reveals the communication tools used by SMEs to communicate product and brand-related messages to multiple stakeholders. These messages tend to stem from and are shaped by the identity/roots of the firm embedded in managerial personality/values.

Purpose Focusing on the small and medium-sized enterprises (SME) context, the paper aims to examine the emergence of new management practices in management teams under hybrid working. Drawing from contributions in the management innovation domain, a framework for management practice in supporting hybrid working in the SME context is proposed. Design/methodology/approach An integrative review of literature in the domains of management innovation, SME, and hybrid working is conducted. Future nuanced empirical research is posited. Findings The conceptual framework proposes that five management innovations emerge in the context of SME hybrid working: strategic management innovations, network relationship management innovations, control and evaluation management innovations, sense-making and sense-giving management innovations and organising innovations, and that these drive SME management practices. Research limitations/implications Building on the management innovation literature, this study articulates the unique context of hybrid working in the SME as a space for management innovation and develops a framework which proposes relevant management team practices. Practical implications The practical relevance of management innovation occurs both in negotiating the change to hybrid work and in cultivating an organisational culture where management innovations become an ongoing response to feedback from a changing and dynamic environment, as indicated in the conceptual model. Where executives are open to opportunities and changes emerging from this environment, as opposed to taking more constrained approaches, for instance, as framed by resource conservation theory, a management innovation perspective can help reframe hybrid working in context as a strategic opportunity. Social implications It is argued that the lens of management innovation at the level of the SME management team gives policymakers an opportunity to view hybrid working as an opportunity for both improved social and economic outcomes and also as that such outcomes can be developed through management innovation. Policies supporting such development might include modifications to existing training supports for SMEs. Specific modifications can support management teams and executives in both reflective learning and intervening so as to support the development of future management innovations in their businesses. Originality/value The conceptual framework of the emergence of management innovations and practices for management teams reflects a unique theoretical approach to hybrid organising. Future empirical research is necessary to progress the framework’s development.

Climate-related concerns have drastically made companies realize the need for better environmental regulations and consolidate them in corporate business strategies such as Corporate Social Responsibility (CSR). CSR improves firm performance by valuing the stakeholders' interests and substantially achieving a competitive advantage over competitors. Recognising a firm's competitive advantage in the market indicates performance and might help the company perform better. The objective of this research is to provide concrete proof related to how CSR affects competitive advantage and its effects on company performance, especially financial performance in SMEs in Bali Province. This study uses primary data in the form of questionnaires distributed to SMEs both directly and online. The sample of this research is the manager / owner of SMEs in Bali Province. Data analysis tools using SmartPLS 4.0. The study's findings indicate that CSR has a direct impact on financial performance (SMEs) and CSR indirectly affects the financial performance (SMEs) through competitive advantage. Competitive advantage was found to partially mediate the impact of CSR and financial performance (SMEs). These findings will be used by SME managers in Bali Province in order to enhance the company's financial performance by considering the use of CSR strategies and strengthening competitive advantage. Implementing CSR can help a company become more competitive and separate itself from competitors by providing an innovative product or service. Finally, corporate social responsibility (CSR) can give a company a competitive advantage by strengthening its marketing abilities, which leads to improved performance.