ABSTRACT
PurposeThis study aims to investigate the impact of environmental scanning on organizational resilience through the mediation of organizational learning and innovation based on organizational information processing theory (OIPT) within Egyptian small and medium enterprises (SMEs) during the COVID-19 pandemic.Design/methodology/approachThis study adopted a cross-sectional design to collect the data used to carry out mediation analysis. A self-administered questionnaire was used to collect data from a sample consisting of 249 Egyptian SMEs. The smart partial least square structural equation modeling (PLS-SEM) technique was adopted to test the hypotheses.FindingsEnvironmental scanning does not have a direct effect on organizational resilience. However, organizational learning and innovation fully mediate the relationship between environmental scanning and organizational resilience.Research limitations/implicationsThe sample size was small, covering only Egyptian manufacturing SMEs. The results may differ in the service sector and other countries. The study was cross-sectional which is limited to tracing the long-term effects of environmental scanning, organizational learning and innovation on organizational resilience. Accordingly, a longitudinal study may be undertaken.Practical implicationsManagers in Egyptian SMEs should use signals from environmental scanning activities as input for learning and transforming business processes through innovation to develop organizational resilience.Originality/valueThis study is the first to investigate the role of environmental scanning in building organizational resilience through organizational learning and innovation based on the perspective of OIPT within Egyptian SMEs during the COVID-19 crisis.
ABSTRACT
This is a heterodox review of Political Economy, Macroeconomics and Business Management on the readjustment effect in the tourism sector due to the impact of the digital transition and its aggravation with the COVID-19 crisis and the Ukraine war. A synthesis of the paradigmatic change with the digital economy and how it affects labor and professional relations is proposed, requiring a transformation of the economic system and the production process. Attention is focused on the tourism sector and its paradox in the European Union: despite its growing importance, however, its recognition and transformation is insufficient. This paradox is intensified in the Spanish case, where more European recovery funds are being allocated and yet the vulnerability of its SMEs and tourism entrepreneurs is growing.
ABSTRACT
The aim of this research is to examine the relationship between innovation and performance in culinary sector MSME in Indonesia. This research also examines the mediating role of competitive strategies on the correlation of innovation in SME performance. This study proceeds using a quantitative approach and Partial Least Square (PLS) through SmartPLS software. The sample of this study consisted of 201 SMEs in Indonesia (specially in Surabaya) that engage in the food and beverage (culinary) sector, and the researcher used an accidental sampling technique to collect data. The result revealed that process innovation was directly, positively, and significantly related to the performance of SMEs. Further-more, the analysis found that competitive strategies, including cost leadership, differentiation, and focus, mediated a partial relationship between innovation and SME performance and had a full mediation of innovation in SME performance. This study shows that SMEs with process innovation can more easily achieve superior performance than SMEs which imple-ment product-oriented innovation. This research focused on SMEs in Surabaya, so it is necessary to be careful in general-izing the results to other locations or business sectors. © 2023 The Author(s). Published by Vilnius Gediminas Technical University.
ABSTRACT
Businesses have experienced the impacts of COVID-19 differently due to their inherent characteristics and resilience capabilities. Understanding the varied experiences of businesses is an important ingredient for a well-informed policy and for future preparedness. The purpose of this study is to conduct a qualitative analysis of the impacts of the COVID-19 pandemic on different businesses (small, medium, and large) and their coping strategies. The findings reveal different experiences among the businesses;the majority of small businesses were unable to change their business operation model due to logistics and infrastructure constraints, forcing most to temporarily close or pause operations, unlike the larger businesses that had a relatively inbuilt resilience structure. It is also interesting to report that government relief schemes were mainly utilized by larger businesses, arguably due to their formal nature and organized labour, whereas most smaller businesses were out of operation or relying on family support networks for survival. This study further identifies different approaches such as adjusting cost structures, temporary closures, transitioning to an online business (ICT) model, reskilling staff, and retrenchment as some coping strategies. Lessons learned and recommendations are provided at the end of this study.
ABSTRACT
This paper aims to examine the barriers and challenges faced by busi-nesses in Kosovo in terms of access to SMEs funding sources during the pandemic, as well as their impact on the business evaluation of SMEs. Given that more than 99 percent of businesses in Kosovo are SMEs, which are considered essential for economic development, they also contribute to job creation. This study employs a quantitative approach, with reported data provided directly by SMEs via questionnaires. The empirical approach used in the study is ordered logit regression to measure the effect of credit lending, business plan, own investment, donations, and borrowings from family or friends on business evaluation during the Covid-19 pandemic. Empirical re-sults show that credit lending and business plans have a signiAcant positive impact on business evaluation, whereas borrowings from family or friends and donations have a signiAcant negative impact. Despite the study's limi-tations, we are convinced that it should spark a debate between research-ers, academics, and policymakers. The study contains the original value and contribution in the empirical aspect, which is designed on the data provided for Kosovo to evaluate the association between SMEs and the use of funding sources during the Covid-19 pandemic.
ABSTRACT
After the humanitarian crisis, caused by COVID-19, enterprises have to face a post-pandemic economic crisis. As small and medium-sized enterprises (SMEs) constitute 99% of EU enterprises and create every third workplace (European Parliament, 2021), it is important to monitor their situation not only to survive but also to develop and build strong economies in the future. The aim of this research is to investigate development trends and opportunities in (SMEs') development, with a special focus on start-ups (STPS) as representative of these. Also, special attention is paid to the concept of sustainable development (SD), which fulfils the UN 2030 Agenda for Sustainable Development Goals (SDGs). The proposed methodology consists of three stages: desk research, in-depth interviews, and primary data analysis, and uses a qualitative method. The article describes the findings of recent Polish studies undertaken to verify and augment earlier pilot research. The novelty of the article is the examination of the dependence between the STPS survival rate and the SD as a measure of SDGs' fulfilment. The limitation may be the specificity of the pandemic, as well as the study of post-pandemic trends that shows a strictly binding need to have a stable strategy for establishing, managing and developing enterprises and increasing their survival rates.
ABSTRACT
Small and medium-sized enterprises (SMEs) are key actors in climate change mitigation and adaptation. Their aggregate emissions are significant, and they are disproportionately affected by climate impacts, including extreme weather events. SMEs also play a vital role in shaping the environmental behaviours of individuals, communities, and other businesses. However, these organisations have been largely neglected by climate policies across all levels of government. A series of global crises, including the COVID-19 pandemic, war in Europe and the Middle East, and energy price spikes, have posed an existential threat to millions of SMEs, while also acting as a catalyst for the reconfiguration of the social contract between business, society and the state, both temporary and more long-term. In this article, we make the case for increased focus on the governance of SME decarbonisation to address this turbulent context. We outline key challenges facing public policymakers and other governance actors, compare strategic options, identify evidence gaps that hinder effective interventions, and highlight implications for research. In doing so we set out key elements of a renewed social contract for business, society and state relations.
ABSTRACT
Purpose - The following article focuses on assessment of the evolution of digital transformation in SMEs in the manufacturing industry since the beginning of the pandemic. The digital transformation is assessed in the different blocks of the BM Canvas. The main ob-jective of the paper is to evaluate the impact of the pandemic on the development of digital transformation, and to assess whether it is still influencing it now, or vice versa, or no longer has such an impact. Research methodology - The digital transformation is examined in each block of the Business Model Canvas (BM Canvas) from the beginning of the pandemic to the current state. The in-dividual data is obtained from a survey conducted among 18 SMEs. Small and medium-sized enterprises in the manufacturing industry are examined. The survey is based on semi-struc-tured interviews with SME ' s management representatives. The collected data is then pro-cessed by examining the average rate of digital transformation in each block, the modus, and the median. The focus was again on developments and changes in the digital transformation of enterprises. The data was collected for three periods - before the pandemic (2019), during the pandemic (2021) and now (July 2022). Findings - The paper shows the evolution of digital transformation in the different building blocks of the BM Canvas for SMEs in the manufacturing industry since the beginning of the pandemic. The evolution of digital transformation varies across the BM Canvas blocks. For the Channels block, as of July 2022, there has been a decrease in the average digital transformation rate. The other blocks have seen an increase and continue to develop. However, the increases are no longer as high as in 2021. Whether digital transformation will continue to develop for individual blocks in future periods is a suitable research question for further research. The find-ings show that the changes and developments vary from building block to building block. It was found that the importance of each building block changed during the pandemic for each firm representative. The results provide the basis for the analysis of the development and change of BM Canvas for individual companies. Research limitations - At the moment, the current situation in Ukraine, in addition to the COVID-19 pandemic, is playing a major role in SMEs activities as it affects companies. This conflict was not considered in the research, and the development since the beginning of the pandemic was followed. Practical implications - This research highlights how the digital transformation of individual SMEs in the manufacturing industry is evolving. It highlights the impact of the pandemic, which has undoubtedly increased the growth of digital transformation rates. For future research, these results can be very useful, as other influences on the rates of digital transformation can be investigated. Originality/Value - The research was carried out on the basis of primary data collected by the authors themselves. The data were processed and evaluated. The results of the research show how the level of digital transformation in different blocks of the BM Canvas has evolved from the beginning for each SME in the manufacturing industry.
ABSTRACT
Due to the importance of entrepreneurship and innovation in the Pharmaceutical industry, the current study investigates the moderation role of Entrepreneurial Orientation (EO) on the influence of innovation on Pharmaceutical SMEs performance in Jordan. The current research was conducted on Jordanian pharmaceutical SMEs including manufacturers, distributors, and pharmacies with employee numbers of less than 100. The research design was quantitative, descriptive, causal, and cross-sectional held by an online questionnaire tool targeted all employees, managers, and Chief Executive Officers (CEOs) in pharmaceutical SMEs. Using the AMOS software, the Structural Equation Model (SEM) was adopted to analyze a sample of 162 surveys and examine the hypotheses. The outcome of this study indicated that the research model variables can explain 69.4% of the variance of SMEs' performance. Additionally, it confirmed that innovation has a significant positive impact on pharmaceutical SMEs, and Entrepreneurial Orientation moderates the influence of innovation on pharmaceutical SMEs' Performance. Furthermore, current research findings contribute to extending existing relevant knowledge about the innovation impact and moderating role of Entrepreneurial Orientation on pharmaceutical SMEs' performance in Jordan and understanding the relationship between these variables to be of significant guidance to managing entrepreneurship in emerging economies. Further, the results show SMEs' methods and directions to follow during crises, such as COVID-19, to maintain business performance and sustainability. The current research paper contributes to the present literature since very limited studies investigated the innovation impact on SMEs' performance. Moreover, previous studies did not sufficiently analyze the impact of management, product, and process dimensions of innovation on SMEs' performance with the contribution of EO.
ABSTRACT
The COVID-19 pandemic and its different waves brought several complications to people's social lives and massively affected business activities worldwide. Accordingly, in this study, we explored the various COVID-19 threats, uncertainties, and risks that are faced by entrepreneurship, propensity, and development. We applied a deductive approach in this study and utilized cross-sectional data that we collected through a questionnaire. We based this study's findings on 320 valid cases. By employing structural equation modeling (SEM), we reveal that factors, such as quality of business environment (QoBE) and access to financial resources (AtFR,) have a positive and significant impact on entrepreneurial propensity (EP). On the other hand, the findings reveal that two factors, namely the uncertainties caused by the COVID-19 pandemic (UoCOVID-19) and the risk perceptions of the COVID-19 pandemic (RPoCOVID-19), have a negative effect on EP. This study's findings provide valuable information about the COVID-19 pandemic and, on particular, on the development of EP among university students. In addition, this study's findings guide and support policymakers and higher authorities in understanding the impact of the COVID-19 pandemic and other business-related factors for developing EP. Further, these findings support the creation of conducive business environments even during a global pandemic or another natural disaster. Finally, this study's findings contribute other empirical evidence to enrich previous research on health, business, and management.
ABSTRACT
Background: The African continent is known for high entrepreneurial activity, especially in the agricultural sector. Despite this, the continent's economic development is below expectations, due to numerous factors constraining the growth and sustainability of agricultural SMEs. These constraints have been exacerbated by the COVID-19 pandemic. The purpose of this study was to understand the pathways through which the pandemic affected agri-SMEs, with specific focus on assessing the differentiated effects arising from the size of the agri-SME and the gender of the owner-manager. Methods: Data was collected from over 100 agri-SMEs, ranging in size from sole proprietorships with one employee to agri-SMEs employing up to 100 people, in six African countries. Mixed methods were used to analyse the data with changes in business operations arising from changing market access, regimented health and safety guidelines and constrained labour supply assessed using visualisations and descriptive statistics. Logistic regression modelling was employed to determine the set of variables contributing to agri-SME business downturn during the COVID-19 pandemic. Results: All surveyed agri-SMEs were negatively affected by COVID-19-associated restrictions with the size of the firm and gender of the owner-managers resulting in differentiated impacts. The smallest agri-SMEs, mainly owner-managed by women, were more likely to experience disruptions in marketing their goods and maintaining their labour supply. Larger agri-SMEs made changes to their business operations to comply with government guidelines during the pandemic and made investments to manage their labour supply, thus sustaining their business operations. In addition, logistic regression modelling results show that financing prior to the pandemic, engaging in primary agricultural production, and being further from urban centres significantly influenced the likelihood of a firm incurring business losses. Conclusions: These findings necessitate engendered multi-faceted agri-SME support packages that are tailored for smaller-sized agri-SMEs. Any such support package should include support for agri-SMEs to develop sustainable marketing strategies and help them secure flexible financing that considers payment deferrals and debt moratorium during bona fide market shocks such as the COVID-19 pandemic.
ABSTRACT
PurposeThe United Kingdom's European Union membership referendum, which marked the end of UK membership in the European Union, created much uncertainty amongst those British and European business practitioners who were accustomed to conducting trade with partners across The North Sea. This exogenous threat to business was subsequently compounded by another serious threat: the COVID-19 pandemic. Knowing that business-to-business (B2B) relationships are particularly important for the success of small- and medium-sized enterprises (SMEs), and that exogenous threats in the business environment can threaten these relationships, the purpose of this study is to examine whether frequent contact and social exchanges between partners on a range of topics, during threatening times, are positively linked to the relationship qualities of trust, satisfaction, and commitment.Methodology/approachGuided by an explorative, expert interview with a Danish SME owner-manager (OM) who has a great deal of experience conducting business with UK partners, a questionnaire was developed to examine two variables which seemingly play central roles with regard to supporting business relationships during threatening times: contact frequency (how often partners are in contact), and contact scope (how often B2B partners talk together about topics which are social in nature). The questionnaire was administered to 193 Danish SME owners and managers who had British business partners at the time of the BREXIT referendum and the COVID-19 pandemic.FindingsThe questionnaire revealed a positive relationship between contact frequency and relationship satisfaction and commitment, as well as a positive relationship between contact scope and relationship commitment. However, no significant relationships were found between contact frequency nor contact scope, on the one hand, and the level of trust between business partners on the other.Research implicationsThis study has underscored the usefulness of studying social exchanges, and not just information exchanges, as they are an important, relationship-strengthening aspect of B2B communication. Indeed, while the central role played by informational exchanges in building quality relationships, including trusting relationships, is well-documented, this study increases our understanding of the value of social exchanges to business relationship quality;in particular, their noteworthy link to B2B partners' willingness to go to great lengths to maintain relationships during challenging times.Practical implicationsOur findings indicate that simply being in contact with B2B partners and speaking about topics that are not directly related to business is not, on its own, a sufficient means of establishing trusting relationships;however, it is nonetheless worthwhile to take the time to nurture personal relationships with B2B partners. Just a modest amount of contact is positively related to relationship satisfaction, as well as relationship commitment, which can be crucial when unforeseen and threatening times inevitably arise in the business environment.Contribution of the paperBesides enhancing our understanding of the value of frequent and social exchanges in terms of relationship quality, this paper also illustrates a useful means of studying social aspects of business relationships, which are notoriously difficult to study. This is accomplished via a questionnaire study in which respondents are asked to concretely reflect upon and report on the frequency and nature of their contact with specific B2B partners.
ABSTRACT
This paper empirically analyzes the relationship between certain organizational characteristics and sales performance on a sample of 360 micro, small and medium-sized enterprises (MSMEs) from Paraguay. The results from the logistic regression analysis show that the outsourcing of operations has a positive impact on sales. On the other hand, it was observed that relationships with suppliers in the supply chain as well as the delay of planned investments before the pandemic negatively influence sales. These results might help businesses and policy makers to strengthen certain internal characteristics of MSMEs to improve sales possibilities, especially during crisis periods.
ABSTRACT
PurposeCoronavirus disease 2019 (COVID-19) has had a tremendous negative effect on the economies around the world by infusing uncertainty into supply chains. In this paper, the authors address two important research questions (RQs): (1) did COVID-19 wage subsidies impact small and medium enterprises (SMEs) to become more flexible towards the SMEs' business customers and (2) can such flexibility be a source for greater resilience to the crisis? As a result, the authors investigate the relationship between governmental wage subsidies and SMEs' flexibility norms towards the SMEs' business customers (study 1). The authors further uncover when and how flexibility towards existing customers contributes to SME resilience (study 2).Design/methodology/approachThe authors frame the inquiry under the resource dependence theory (RDT) and behavioural additionality principle. The authors use survey methodology and test the assumptions in study 1 (n = 225) and study 2 (n = 95) on a sample of SMEs from various business-to-business (B2B) industries in Croatia.FindingsOverall, in study 1, the authors find that SMEs that receive governmental wage subsidies have greater flexibility norms. However, this relationship is significantly conditioned by SMEs' competitive profile. SMEs that strongly rely on innovation are more willing to behave flexibly when receiving subsidies, whereas SMEs driven by branding do not. Study 2 sheds light on when flexibility towards existing customers increases SME resilience. Findings show that flexibility norms are negatively related to resilience, but this relationship is becoming less negative amongst SMEs with lower financial dependence on the largest customer.Originality/valueThis study extends RDT in the area of firm-government relationships by showing that wage subsidies became a source of power for the Government and a source of dependency for SMEs. In such cases, the SMEs receiving those subsidies align with the governmental agenda and exhibit higher flexibility towards the SMEs' customers. Drawing arguments from behavioural additionality, the authors show that this effect varies due to SMEs' attention and organisational priorities resulting from different competitive profiles. Ultimately, the authors showcase that higher flexibility norms can contribute to resilience if the SME restructures its dependency by having a less-concentrated customer base.
ABSTRACT
This paper sought to identify what key drivers have shaped the extent of E-marketing orientation (EMO) among entrepreneurs and the self-employed during these 'unprecedented times' in the Jordanian context. The study made use of a previously proposed model and incorporated the perceived continuity of COVID-19 as a moderating factor. The study used cross-sectional quantitative-deductive methods and self-administrated questionnaire. Non-probability convenience sampling was used, and the sample comprised 314 responses from owners, directors, managers, supervisors, the partners of businesses in Jordan. SMART partial-least-squares were used and path analysis reported that perceived relative advantage, level of competition and perceived continuity of COVID-19 scored moderate level of influence, whereas the remaining antecedents scored a low level of variance. Moreover, perceived complexity seen insignificant negative antecedent. Perceived continuity of COVID-19 was seen to directly influence EMO and was identified as a standalone antecedent considering that the moderation paths did not demonstrate any significant influence.
ABSTRACT
It is generally accepted that open and competitive markets are necessary to ensure economic growth and that the decision-making process of foreign investment involves 'an intricate structure of attitudes and opinion, social relationships both in and outside the firm, and the way such attitudes, opinions and social relationships are changing'. Therefore, the aim of the research is to explore the characteristics of Italian companies with increasing revenues during COVID-19 to explain if a higher level of innovation affects the survival/adaptability, as well as performance in terms of internationalisation. Based on a review of OECD data on business dynamism that highlights changes in economies and small and medium-sized enterprises (SMEs), the hypothesis is tested with a survey of a sample of 100 Italian SMEs. The results confirm that innovation investments helped maximise revenues in the pandemic period, thanks to foreign investments.
ABSTRACT
Small and medium-sized enterprises (SME) development in the regions of Kazakhstan is characterised by substantial imbalances. The cities of republican significance - Nur-Sultan and Almaty - are leading in terms of SME performance indicators. However, the quantitative development of such enterprises in these cities does not always lead to a corresponding increase in their contribution to output. Meanwhile, literature lacks studies on this relationship and its causal analysis necessary to provide scientific substantiation of the state policy to support SME development in regions. The present article aims to assess the contribution of SMEs to the output of the cities of republican significance and find solutions to the problems hindering business development. It is hypothesised that there is a weak linear correlation between the number of operating SMEs and output in Nur-Sultan and Almaty. The study utilised the Pearson correlation method, comparative and causal analysis. The presence of a positive correlation between the number of operating SMEs and the production output in the studied regions was confirmed, although, according to the correlation coefficient value, this relationship is weak. The suboptimal structure of the SME sector, as well as the low labour productivity in small enterprises are the key reasons for the weak correlation. Recommendations to stimulate the activities of SMEs were formulated based on the analysis of hindering factors (including inefficient government support). It is concluded that the reduction of the SME sector due to the COVID-19 pandemic in some way positively affected the market, since ineffectively functioning entities were eliminated. Thus, the state should focus on the targeted support and directly stimulate strong players capable of self-renewal. The research results can be useful to the state and local authorities to create measures to support SMEs and regional business regulation policy.
ABSTRACT
Researchers and practitioners have highlighted the importance of supply chain analytic capabilities in managing risk while maintaining a competitive advantage (COA). However, the importance of digital supply chain capabilities (DSCCs) in improving resilience, agility, and robustness practices to foster the implementation of sustainable supply chain practices and any resulting COA remains unclear. Based on the dynamic capabilities view, we propose a research model for achieving a COA in contexts of uncertainty, such as the COVID-19 pandemic. A survey of Indian small and medium-sized enterprises in the original equipment manufacturing industry, comprising 310 respondents, was administered. Using structural equation modeling, we examine the proposed model. The findings show a significant positive effect of DSCCs on supply chain resilience and agile practices. The findings also indicate that supply chain resilience, robustness, and agile practices positively affect sustainable supply chain practices. Moreover, sustainable supply chain practices positively influence COA. Furthermore, the study reveals that the effect of DSCCs on sustainable supply chain practices is mediated by supply chain resilience, robustness, and agile practices. Managers concerned with investment in sustainable supply chain practices can obtain a COA through the successful implementation of supply chain resilience, robustness, and agile practices.
ABSTRACT
The rapid digitalisation of SMEs, further expedited as a business continuity measure against Covid19 impact, has brought along major cybersecurity challenges, as it creates a fertile landscape for malicious actors, that want to capitalise on the insufficient cybersecurity planning and preparedness of SMEs to conduct low-effort, lucrative attacks. This paper constitutes a case study on the cybersecurity challenges, specificities and the safeguarding of the ATracker, a real-life data collection and analytics engine developed by the SME Suite5. The ATracker has been successfully protected against attacks in conjunction with the PUZZLE Framework, a holistic policy-based cybersecurity solution, addressing major cybersecurity pillars and leveraging on the latest scientific advancements in cybersecurity research. © 2023 IEEE.
ABSTRACT
Purpose: The objective of the research is proposed a methodology to prepare a Zero-Based Budget ( ZBB) for Small and Medium-sized Enterprises (SMEs) in Ecuador, applying fuzzy logic. Design/methodology/approach: A quantitative approach is assumed to show findings derived from the work carried out in these Ecuadorian business units, belonging to non-essential sectors such as wood, textiles and footwear. Fuzzy logic, the technique of expertise, and Trapezoidal Fuzzy Numbers ( TpFN) are used to capture true budget levels. Findings: The results recommend that optimal budget levels can be obtained for SMEs in restrictive and health emergency contexts. Originality/value: As a result of COVID-19 pandemic, markets and demand are contracting causing variations in income and demanding greater rationalization at the level of expenditures. For SMEs is essential prepared income and disbursements estimates. Based on the methodology proposed, predictions are made to achieve the objectives of SMEs. Directors will be able to make more successful decisions for the benefit of their companies, to streamline operations, direct the achievement of objectives, rationalize expenses (costs and expenses), and to project better scenarios in the future before carrying out cost-benefit analysis.