Supply chain resilience in Finnish SME family firms

Paper delivered at the 21st Logistics Research Network annual conference 2016, 7th-9th September 2016, Hull. Abstract Purpose: The challenging economic landscape in Finland has brought about a stronger need among firms to manage risk and uncertainty in order to maintain operational performance and supply chain continuity. Given this turbulent environment, the contribution and commercial activities that small and medium sized family firms provide for the Finnish economy require them to have knowledge of drivers of risk and the tools to mitigate it. The purpose of this paper is to analyze how resilient small- and medium-sized (SME) family firm supply chains are operating during the current economic turbulence in Finland. Research Approach: The empirical study for this paper took an inductive research approach by devising a framework from the literature on family firm capabilities and supply chain risk and resilience, and then investigating the strength of the framework through qualitative data collection. Multiple-case studies were conducted including pilot and semi-structured interviews with respondents representing six SME family firms active in Finland. Findings and Originality: Risk drivers and key capabilities connected to SME family firms have been identified. The subject of supply chain resilience was perceived as an abstract subject by several firms, but gained increased interest throughout the research. Several resilience-promoting activities are already being conducted by some firms, nevertheless areas of improvement have also been identified. Despite the growing interest of SMEs in risk and resilience not many studies have been conducted on how SME family firms manage their supply chain resilience; thus this study bridges a gap by combining these two elements. Research Impact: There are many different studies on SME family firms but research on how capabilities of the family firm influences supply chain resilience has not received a great degree of academic interest. Further, prior empirical research on how SME family firms manage supply chain risk and resilience in practice is scarce. This study thus informs the literature on these aspects. Practical Impact: The findings of this study contribute valuable insights to managers active in SME family firms when evaluating their level of business risk and uncertainty, particularly relating to their supply chain activities. Further, the findings offer practical guidelines to help improve supply chain continuity and resilience

How do supply chain management and information systems practices influence operational performance?:Evidence from emerging country SMEs

This study first provides a comparative analysis of the impact of supply chain management (SCM) and information systems (IS) practices on operational performance (OPER) of small- and medium-sized enterprises (SMEs) operating in two neighbouring emerging country markets of Turkey and Bulgaria. Then, we investigate moderating effects of both SCM–IS-linked enablers and inhibitors on the links between SCM and IS practices and OPER of SMEs. To this end, we first empirically identify the underlying dimensions of SCM and IS practices, and SCM–IS-related enabling and inhibiting factors. Second, a series of regression analyses are undertaken to estimate the impact of the study's constructs on OPER of SMEs. The results are discussed comparatively within the contexts of both Turkish and Bulgarian SMEs and beyond. The study makes a significant contribution to the extant literature through obtaining and analysing cross-national survey data of SCM and IS practices in emerging country markets

A simplified activity-based costing approach for SMEs : the case study of an Italian small road company

Purpose: The paper proposes an original conceptual model for designing a simplified Activity-Based Costing (ABC) approach for Small and Medium-sized Enterprises (SMEs) by focusing on the transport sector. Design/Methodology/Approach: The model is designed starting from the distinctive characteristics of the SMEs’ collaborative culture. The approach is then tested in the case of an Italian small-road company. Findings: The simplified ABC, which was gradually introduced in the SME, allowed the firm to gain confidence with the costing system. Moreover, the discussion of the results led to identifying the main areas to improve. Practical Implications: Costing systems based on collaboration can lead to operational improvements in SMEs operating in dynamic and competitive sectors as transport. Moreover, advanced technologies may hold a crucial role for their development. Originality/Value: Not much research has considered collaboration as a driver for introducing ABC in SMEs. The paper contributes to the literature on simplified managerial approaches, suggesting trends for future research.peer-reviewe

Why small and medium construction enterprises do not employ six sigma

Six sigma (6σ) is a powerful business strategy which is aimed at increasing customer satisfaction and profitability by improving the quality of products and services. Many organisations have implemented 6σ and achieved significant levels of success. Successful implementation of 6σ leads to outcomes that would be welcome in the construction industry, given its reputation of suboptimal performance. The construction industry relies heavily on small and medium enterprises (SMEs). Any improvement in construction SMEs would lead to improvements in the construction industry as a whole. Against this background, a survey was undertaken to establish whether construction SMEs used 6σ and to identify factors affecting the adoption of this business strategy. It was found that none of the SMEs in the sample used 6σ. The reasons given for not employing 6σ, in descending order of importance, were: lack of knowledge about 6σ programme; lack of resources (human, time, money); 6σ programme not required by customers; other sufficient quality system in use; 6σ provides no perceived benefits; and end users not prepared to pay for 6σ programme. These reasons can be challenged when a critical analysis of innovation in the external environment within which construction SMEs operate, trends in the mode of delivery of construction industry products, trends in performance measurement in the construction industry and the flexibility of 6σ as a quantitative approach to managing quality. Construction industry stakeholders need to think about 6σ critically and make informed decisions about its role in the construction industry quality management agenda

Networking Innovation in the European Car Industry : Does the Open Innovation Model Fit?

The automobile industry is has entered an innovation race. Uncertain technological trends, long development cycles, highly capital intensive product development, saturated markets, and environmental and safety regulations have subjected the sector to major transformations. The technological and organizational innovations related to these transformations necessitate research that can enhance our understanding of the characteristics of the new systems and extrapolate the implications for companies as well as for the wider economy. Is the industry ready to change and accelerate the pace of its innovation and adaptability? Have the traditional supply chains transformed into supply networks and regional automobile ecosystems? The study investigates the applicability of the Open Innovation concept to a mature capital-intensive asset-based industry, which is preparing for a radical technological discontinuity - the European automobile industry - through interviewing purposely selected knowledgeable respondents across seven European countries. The findings contribute to the understanding of the OI concept by identifying key obstacles to the wider adoption of the OI model, and signalling the importance of intermediaries and large incumbents for driving network development and OI practices as well as the need of new competencies to be developed by all players.Peer reviewe

A framework of justification criteria for advanced manufacturing technology implementation in small and medium enterprises

Today in order to stay in businesses and prosper, Small and Medium Enterprises (SMEs) are seeking higher electiveness and competitiveness across the entire cycle of marketing, product design, manufacture, test and sales. SMEs play an increasingly important role in all aspects of competitiveness: both products and production techniques, but also management methods, the organization of the firm and human resources training. One of the ways by which SMEs can achieve a competitive advantage in manufacturing is through the implementation of Advanced Manufacturing Technology (AMT). An increasing number of them have chosen and are choosing various levels of AMT as the solution. Realizing the importance of SMEs, an attempt has been made in this paper to review the application of AMT in SMEs. Also, a framework has been offered for the implementation of AMT in SMEs. Finally, a summary of findings and conclusions are presented

Firm Characteristic Determinants of SME Participation in Production Networks

This paper provides an empirical analysis of small and medium enterprise (SME) participation in production networks. It gauges firm characteristic determinants of SME participation in production networks. The empirical investigation utilizes results obtained from an ERIA Survey on SME Participation in Production Networks, conducted over a three month period at the end 2009 in most ASEAN countries (i.e., Thailand, Indonesia, Malaysia, Philippines, Vietnam, Cambodia, and Laos PDR) and China. The results suggest that productivity, foreign ownership, financial characteristics, innovation efforts, and managerial/entrepreneurial attitudes are the important firm characteristics that determine SME participation in production networks. The paper extends the analysis to identify the determinants that allow SMEs to move from low to high quality or value adding participation in production networks. The results suggest that size, productivity, foreign ownership, and, to some extent, innovation efforts and managerial attitudes, are the important firm characteristics needed by SMEs to upgrade their positions in production networks. The finding suggests that SMEs really exploit competitiveness from economies of scale only when they are able to engage in production networks.

Upgrading strategies in global furniture value chains

Abstract not available

The Relationship Between Entrepreneurship Orientation and Organizational Learning Toward Business Strategy and Business Performance of Cocoa’s Small and Medium Enterprises (SME) in East Kalimantan

The objective of this research was tested the relationship between entrepreneurship orientation and organizational learning toward business strategy and business performance of cocoa’s small and medium enterprises (SME) in East Kalimantan.The study was a confirmatory carries out by testing several hypotheses in order to figure out the causal relationship of all the above variables. All Small and Medium Enterprises (SME) of cocoa in East Kalimantan. A standardized questionnaire was distributed among different people pertinent to cocoa’s industry (distributors, whole sellers, retailers, sales force and employees etc). Questionnaires were used by random sampling technique. A model with hypotheses of the relationships between the constructs was built. The technical analysis applied to test the research hypothesis was Structural Equation Modeling (SEM) by AMOS program.The result of research showed that there were direct, significant and positive relationships between entrepreneurship orientation and organizational learning and business strategy; there were direct, significant and positive relationships between organizational learning and business strategy and  business performance. There were no relationships between entrepreneurship orientation and business performance and there were no relationships between organizational learning and business strategy at cocoa’s small and medium enterprises (SME) in East Kalimantan.Benefit of this research can be used as scientific information regarding the variables of entrepreneurship orientation, organizational learning, business strategy and business performance. It can also be used as a basis to motivate improvement small scale industry. Keywords: Entrepreneurship orientation, organizational learning, business strategy, business performanc

A primer on governance and performance in small and medium-sized enterprises

This paper is a primer on corporate performance, corporate governance, and their interrelationships and measurement systems, with particular focus on Small and Medium- Sized Enterprises (SMEs). This is the first report of a larger on going research project. In the domain of performance measurement the paper describes the trend from financial to non-financial measures, as well as a taxonomy of measures and the impact of the TQM movement on measurement practices. In the domain of governance, governance as a general concept is presented, followed by the more specific concept of corporate governance. Four theories of corporate governance are explained, along with literature findings on the relationship between corporate governance and corporate performance, with reference to both works on large firms and works on SMEs.Corporate governance, corporate performance, measurement, small and medium-sized enterprises (SMEs)