Business Model Innovation in Established SMEs: A Configurational Approach

Small and medium-sized enterprises (SMEs) are at the heart of a nation’s wealth creation, employment generation and economic development. To help SMEs stay competitive in a fast-changing environment, researchers have recently emphasized the relevance of business model innovation (BMI). However, BMI and its performance are not linear but rather a complex phenomenon that depends on contingency factors. Based on configurational theory, this study extends the BMI research to SMEs, exploring the management approaches and BMI capabilities that foster BMI in established SMEs. To achieve this objective, this study of a purposive sample of 78 Spanish SMEs adopts the fuzzy set qualitative comparative analysis (fsQCA) method. Results suggest three substantive conclusions. First, long-term managerial orientation is a key factor for the development of BMI in SMEs. Second, five BMI capabilities (sensing customer needs, sensing technological options, conceptualizing and experimenting, collaborating and BMI strategy) support, in combination with the management approach, the development of BMI in established SMEs. Third, open innovation (open flows of knowledge regarding market needs and the potential of technologies, as well as collaboration with customers) are concrete preconditions of business model innovation. Therefore, managers in SMEs need both to actively consider their management approach towards BMI, and to develop some key dynamic capabilities in their organizations to implement BMI, an approach also valid for post-Covid-19 management

The cost and information management effect in SMEs : an empirical analysis

Purpose: The purpose of the study is to analyse costs and information management as determinants of the final price strategy, the cost components and to identify the impact of factors affecting the performance of SMEs. Design/Methodology/Approach: The methodology is based on the comparative analysis of data using both primary and secondary sources. The data collected are analyzed using the regression method. The results show that cost and information management contributes to determinate the company’s price of goods and services. Findings: The research for SMEs shows that company performance depends on managerial decision taking into account cost management and accounting information. Decision-making in this context is determined by making a choice between alternatives and it is based on objectives. Cost and information management has a key goal, to organize costs by creating products and services, so company managers can use cost information as a guide to setting sales prices and inventory estimates by determining profits. Practical Implications: This work will be useful to the people in the academic field, readers, and knowledge seekers and will be of great relevance in the area of managerial decisions and performance appraisal. Originality/Value: It contributes to the knowledge of financial managers and other accountants as it will assist them in effective planning and control.peer-reviewe

International lessons in knowledge management : a study of western & eastern manufacturing SMEs

In today’s competitive business market, Small and Medium Enterprises (SMEs) are seeking to adopt supporting tools in order to survive. Many large organizations have been successfully implementing Knowledge Management with productivity and efficiency gains cited. SME’s on the other hand are less familiar with this practice with fewer published studies of Knowledge Management focusing on SMEs. Studies which draw global comparisons of Knowledge Management practices in SME’s are particularly rare. The aim of this study is to identify and investigate similarities and differences in Knowledge Management practice between SMEs in UK and Thailand within the manufacturing sector. The objective being to better understand and facilitate the transfer of good practice and lessons between the two countries. Questionnaires investigating Knowledge Management practice have been developed and distributed to SMEs in the Manufacturing Sector across the UK and Thailand. This paper reports on the responses of a total of 384 questionnaires from 36 manufacturing companies from the UK and Thailand. The study covers a range of manufacturing sectors including food and beverage, automotive and aerospace industries etc. Findings are reported from each of the two countries followed by a comparative statistical analysis of the similarities and differences. The results show a significant difference between the numbers of manufacturing SME’s that have implemented a formal knowledge management approach. With significantly more Thai organisations reporting the adoption of formal knowledge management approaches. Similarities exist in the encouragement given to employees for knowledge management activities. Significant difference exists in the barriers that the UK and Thai organisations face in capturing knowledge. The results have the potential to gain improvements and competitive advantage through understanding how knowledge management is influenced by geographic and cultural differences and the transfer of lessons and good practice between Thailand and the UK

Investigating the technology catching-up trajectory of Chinese Hi-Tech SMEs: an integrated framework from industry-, resource-, and institution-based view

Accepted for WLICSMB 2010Purpose This paper intends to review the literatures on the technology catching-up trajectory of latecomers in order to understand the innovation strategies of Chinese Hi-Tech SMEs (Gu & Tse, 2010; Xie & White, 2006; Chen & Qu, 2003; Lee & Lim, 2001; Kim, 1997). It also tries to construct an integrated framework to investigate their innovation strategies and the impact on organizational performance from the Industry-, Resource-, and Institution-based view (Peng, Wang, & Jiang, 2008). Design/methodology/approach The authors have reviewed papers published in the leading journals in the R&D field and proposed an integrated conceptual framework of innovation strategies of Chinese Hi-Tech firms based on Peng, Wang and Jiang (2008)’s institution-based view framework to examine the innovation strategy from Industry-, firm-specific Resource-based, and Institution-based View Originality/Value This paper pays attention to the institution factors in shaping Chinese SMEs to develop innovative capabilities. Chinese firms have comparative advantages, such as better comprehending Chinese local market, better understanding of local business environment comparing to MNEs. Our paper argues that by developing effective innovation strategies and improving innovative capabilities, Chinese SMEs will be able to survive from the severe competitions from state-owned enterprises and foreign firms in China

Modelo de maturidade e auditoria da gestão da inovação em micro, pequenas e médias empresas (SMES) brasileiras

Objective: To analyze the degree of innovation management and propose a maturity model for Brazilian SMEs. Methodology/Approach: Comparative study cases of quantitative and qualitative approach, descriptive and applied, for Brazilian SMEs; used the deductive and inductive methods and the triangulation of data for analysis and proposition of the model. Originality/Relevance: The challenge of understanding in depth the critical factors and relationships between innovation, performance and competitiveness of SMEs is important for their survival, growth and development, especially in emerging economies such as Brazil. Main Results: (i) despite the practical difficulties of managing innovation and the absence of a formal strategy in some SMEs to encourage and support innovative processes, these are directly and indirectly related to the performance and competitiveness of these companies; (ii) the degree of innovation maturity is influenced by the characteristics of SMEs and their managers. Auditing and management of innovation increase their capacity for survival, growth and business development. Theoretical / Methodological contributions: (i) theoretical, by collaborating to fill the aforementioned gap and broaden the knowledge on the subject within the scope of SMEs; (ii) applied, by proposing a specific framework for auditing and measuring the degree of maturity of innovation in SMEs, based on a validated framework in the international literature. Social / Management contributions: The proposed model brings managerial contributions by refining the praxis of SMEs in innovation management, offering companies in similar situations an opportunity for competitive benchmarking

Human Capital and Environmental Engagement of SMEs in Pakistan: A Comparative Analysis of the Leather Industry

As part of a broader effort to reduce environmental degradation, small and medium-sized enterprises (SMEs) around the world are increasingly being required by different stakeholders to adopt more environmentally responsible business practices. The existing literature suggests that the main factors prompting SMEs to adopt environmental practices are: compliance with regulations, economic advantage and the realisation of personal ethical values. However, knowledge and understanding about the resources and capabilities that might enable SMEs to adopt environmental practices remains very limited. At the same time, much of the prior literature is about developed economies. The aim of this case study is to address these gaps in the literature by exploring the influence of human capital on environmental engagement of SMEs in Pakistan’s leatherworking industry. Findings reveal that human capital does influence environmental practices in SMEs of leather industry. Compared to some earlier studies from developed economies, which emphasis more on informal environmental learning, this study finds that both formal education and informal environmental learning are important for better environmental engagement of SMEs. Importance of networking for seeking environmental knowledge also came up quite clearly. The implications are that well-designed and executed interventions could promote large-scale improvements in environmental performance of this industry sector. Furthermore, awareness programmes should aim, not simply to educate entrepreneurs and employees, but also to inspire them to pursue environmental opportunities

Virtual Collaborative R&D Teams in Malaysia Manufacturing SMEs

This paper presents the results of empirical research conducted during March to September 2009. The study focused on the influence of virtual research and development (R&D) teams within Malaysian manufacturing small and medium sized enterprises (SMEs). The specific objective of the study is better understanding of the application of collaborative technologies in business, to find the effective factors to assist SMEs to remain competitive in the future. The paper stresses to find an answer for a question “Is there any relationship between company size, Internet connection facility and virtuality?”. The survey data shows SMEs are now technologically capable of performing the virtual collaborative team, but the infrastructure usage is less. SMEs now have the necessary technology to begin the implementation process of collaboration tools to reduce research and development (R&D) time, costs and increase productivity. So, the manager of R&D should take the potentials of virtual teams into account

The relationship between knowledge management and innovation level in Mexican SMEs: Empirical evidence

The transformation of the current society from an industry-based economy to a knowledge management and innovation-based economy is changing the design and implementation of business strategies and the nature of the competition among the organizations which are mainly small and medium-size enterprises (SMEs). They struggle to survive in a market which is more demanding and competitive, so they seeknowledge management as one of the most effective strategies that may help to enable the innovation activities into the businesses. For these reasons, this research paper has as a main goal to analyze the relationship between knowledge management and innovation in Mexican SMEs. The empirical analysis used 125 manufacturing SMEs (each SME having from 20 to 250 employees) as a sample to be carried out. The obtained results indicate that knowledge management has a positive impact in products, process, and management systems innovation

Sustainable performance management in the EU SME sector. A review and analysis of concepts and methods of strategic management accounting

Purpose: The paper’s main objective is to structure the knowledge of the existing regulatory frameworks, projects and actions that support sustainable performance management (SPM) in small and medium-sized enterprises (SMEs) against the backdrop of the growing significance of the circular economy. The paper will also evidence how strategic management accounting (SMA) assists this process, what individual metrics, dashboards or scorecard concepts have been proposed and how their use may be assessed. Methodology/approach: The research methods include (1) a descriptive systematic analysis of the policies established by the policymakers and regulators in the EU, (2) a comparative analysis of various organisations’ initiatives, actions, delivered toolkits and their outputs, and (3) a literature review of the essential works and research studies on sustainable business models (SBMs), circular business models (CBMs) and SPM in the context of SMEs. Findings: The policies established in the EU support SPM by encouraging SMEs to be involved in sustainable business practices and indicating how to embark on a green transition. Recently, multiple initiatives have been aimed at indicating the opportunities the closed-loop economy system offers SMEs. Many toolkits have also been developed to help SMEs measure their sustainable performance. Although this measurement is vital for SMEs, the business practice falls behind the regulatory framework. Therefore, internal initiatives from the SME sector are needed to popularise the sustainability concept. Research limitations/implications: SMEs show lower levels of compliance with environmental requirements and are unaware of how their activities affect the environment. A limitation of the research is that, in many cases, SMEs are not ready to respond properly to the ESG requirements imposed by regulators. The reason may be a lack of knowledge, experience and limited funds. Therefore, future research should focus on recognizing the gaps in this area and identifying what may be impeding the development of sustainability performance management in SMEs. Originality/value: The work presents the evolution path from the traditional business models (TBMs) through the SBMs to innovative CBMs and addresses their distinctive features. It contributes to the existing knowledge about SMA in SMEs by analysing its links with SPM