Analysis of Organic Growth Strategies on Performance of small and medium sized Enterprises: Case of Thika Sub-County, Kenya

Small and Medium-sized Enterprises (SMEs) play an important economic role in Kenya. The sub-sector contributes to an estimated 20 percent of the GDP and employs 85 percent of the Kenyan workforce. The purpose of the study was to analyze the influence of organic growth strategies on the performance of SMEs in Thika sub-county, Kenya. The study was guided by the Ansoff’s Matrix and Penrose’s (1959) growth theories and the Balanced Scorecard performance theory by Kaplan & Norton (1992) in the measurement of performance of SMEs. The study was guided by the following null hypothesis: There is no relationship between penetration, market development, product development and diversification strategies on the performance of SMEs in Thika Sub-county. Literature was reviewed on the concept of growth in enterprises, definition of SMEs, organic growth strategies and the concept of performance of enterprises. A conceptual framework was also developed. The organic growth strategies formed the independent variables while the performance of SMEs was the dependent variable. The strategy implementation conditions formed the intervening variable. The central thesis of the study was that organic (internal) growth strategies are core ingredients necessary for spurring growth of SMEs and in turn enhancing their performance. The study was a correlational study. It was located in Thika Sub-County in Kiambu County, Kenya. The study targeted 4805 SMEs within the Sub-County. Proportional stratified random sampling technique was used to sample 36 SMEs. The unit of analysis was the 36 CEOs/ Marketing Managers of the sampled SMEs, who were purposively chosen due to their superior knowledge of the SMEs. Data was collected using Organic Growth Strategies Questionnaire (OGSQ). Quantitative data was coded into a computer sheet that was used to enter data in Statistical Package of Social Science (SPSS) program (version 21.0). Quantitative data will be presented in frequency distribution tables and analyzed using mean, percentage, Pearson-Product correlation coefficient and linear regression. The significance of the results was tested at .05 significance level. Qualitative data was analyzed thematically. The study found out that penetration, market development, product development and diversification strategies positively influenced the performance of SMEs. The four independent variables account for 44.9% of the total variability of performance of SMEs. Penetration and market development strategies added statistically significantly to the prediction of performance of SMEs. The product development and diversification strategies should approached with caution as they are much riskier. The study concluded that SMEs should embrace the organic growth strategies to spur growth of their enterprises. The study recommended that the government should create a Ministry of Micro, Small and Medium Enterprises to fund the implementation of the organic growth strategies developed by SMEs and provide technical support in market research, ideas incubation and capacity building of the CEOs/Owners of the SMEs.  Finally, the study recommended that similar studies to be carried in other counties in Kenya. Also, further study should be conducted to analyze the influence of inorganic strategies on performance of SMEs. Key Words: Organic Growth Strategies, Performance of small and medium sized Enterprises

Harmonizing CMMI-DEV 1.2 and XP Method to Improve The Software Development Processes in Small Software Development Firms

Most software development organizations are small firms, and they have realized the need to manage and improve their software development and management activities. Traditional Software Process Improvement (SPI) models and standards are not realistic for these firms because of high cost, limited resources and strict project deadlines. Therefore, these firms need a lightweight software development method and an appropriate SPI model to manage and improve their software development and management processes. This study aims to construct a suitable software development process improvement framework for Small Software Development Firms (SSDFs) based on eXtreme Programming (XP) method and Capability Maturity Model Integration for Development Version 1.2 (CMMI-Dev1.2) model. Four stages are involved in developing the framework: (1) aligning XP practices to the specific goals of CMMI-Dev1.2 Key Process Areas (KPAs); (2) developing the proposed software development process improvement framework based on extending XP method by adapting the Extension-Based Approach (EBA), CMMI-Dev1.2, and generic elements of the SPI framework; (3) verifying the compatibility of the proposed framework to the KPAs of CMMI-Dev1.2 by using focus group method coupled with Delphi technique; and (4) validating the modified framework by using CMMI-Dev1.2 questionnaire as a main item to validate the suitability of the modified framework for SSDFs, and conducting two case studies to validate the applicability and effectiveness of this framework for these firms. The result of aligning XP practices to the KPAs of CMMI-Dev1.2 shows that twelve KPAs are largely supported by XP practices, eight KPAs are partially supported by XP practices, and two KPAs are not-supported by XP practices. The main contributions of this study are: software development process improvement framework for SSDFs, elicit better understanding of how to construct the framework, and quality improvement of the software development processes. There are possible avenues for extending this research to fulfil the missing specific practices of several KPAs, examining other agile practices and using CMMI-Dev1.3 to improve the framework, and conducting more case studie

Sistemas de informação na indústria 4.0 : mecanismos de apoio à transferência de dados para conhecimento em ambientes Lean

The paradigm that presently emerges in the organizational context, known as Industry 4.0 (I4.0) or Fourth Industrial Revolution, promises to bring principles of connectivity and flexibility to the companies that embrace it. Industry 4.0 enhances the efficiency in adapting in real time to the customers’ requirements, through the establishment of an intelligent shop floor capable of answering in a flexible and customized way to market changes. However, during the last three decades, it is known that the adoption of the Lean philosophy was absorbed by the industrial environment, with results that proved to be exuberant, considering the simplicity of the tools. In this way, the I4.0 implementation must be prepared to preserve the existing manufacturing systems, proceeding, whenever possible, to upgrade them on a Lean excellence basis. It is said that information systems will be decisive in the foundation of the I4.0 paradigm. Of these, MES systems, with greater connection to the shop floor, will tend to be aligned with existing practices, contributing, through their connectivity, to the introduction of knowledge management practices and data visualization mechanisms. In the specification and architecture phase of these systems, understanding the processes will be crucial. Thus, their documentation is an organizational pillar, with BPMN and UML being able to guide it. However, and in addition to its usefulness in the processes’ mapping, BPMN is also likely to be applied in capturing tacit knowledge, which can be a foundation for the constitution of knowledge repositories, impacting organizational excellence. It is in this context that the present work is implanted, aiming at the creation of guidelines and mechanisms that facilitate the implementation of I4.0 strategies in Lean industrial environments. The adopted methodology first went through an exhaustive literature review, in order to find possible bilateral effects between I4.0 technologies and lean tools. Then, the development of some applications aligned with the I4.0 paradigm, as a technological engine, and the Lean philosophy, as a tool for eliminating waste and / or creating value, was contemplated. From the various development experiences in an industrial context and considering the evidence reported in the literature, this study proposes a Lean 4.0 framework oriented to the shop floor.O paradigma que atualmente emerge no contexto organizacional, conhecido como Indústria 4.0 (I4.0) ou Quarta Revolução Industrial, promete trazer princípios de conectividade e flexibilidade às empresas que a adotam. A Indústria 4.0 potencia a eficácia no ajuste em tempo real aos requisitos dos clientes, através da constituição de um chão de fábrica inteligente e capaz de responder de forma flexível e customizada às mudanças do mercado. Contudo, durante as últimas três décadas, sabe-se que a adoção da filosofia Lean foi absorvida pelo meio industrial, com resultados que se demonstraram exuberantes, tendo em conta a simplicidade das ferramentas. Deste modo, a implementação I4.0 deve ser feita no sentido da preservação dos sistemas de manufatura já existentes, procedendo, desde que possível, ao seu upgrade numa base de excelência Lean. Conta-se que os sistemas de informação serão decisivos na fundação do paradigma I4.0. Destes, os sistemas MES, com maior conexão ao chão de fábrica, tenderão a ser alinhados com as práticas já existentes, contribuindo, através da sua conectividade, para a introdução de práticas de gestão do conhecimento e mecanismos de visualização de dados. Na fase de especificação e arquitetura destes sistemas, o entendimento dos processos será crucial. Assim, a documentação dos mesmos é um pilar organizacional, estando o BPMN e a UML capazes de a orientar. Porém, e a somar à sua utilidade na ilustração de processos, o BPMN está igualmente passível de ser aplicado na captação de conhecimento tácito, o que por si pode ser uma base para a constituição de repositórios de conhecimento, contribuindo para a excelência organizacional. É neste contexto que o presente trabalho se insere, tendo como objetivo a criação de linhas orientadoras e mecanismos que facilitem a implementação de estratégias I4.0 em ambientes industriais Lean. A metodologia adotada passou, primeiramente, por uma exaustiva revisão da literatura, por forma a encontrar possíveis efeitos bilaterais entre tecnologias I4.0 e ferramentas lean. De seguida, contemplou-se o desenvolvimento de alguns aplicativos alinhados ao paradigma I4.0, enquanto motor tecnológico, e à filosofia Lean, enquanto ferramenta de eliminação de desperdícios e/ou criação de valor. Das diversas experiências de desenvolvimento em contexto industrial e considerando as evidências reportadas na literatura o presente estudo propõe uma framework Lean 4.0 orientado ao chão de fábrica.Mestrado em Engenharia e Gestão Industria

Role of Impact Assessment in Sustainable Development

This book discusses the role of environmental and social impact assessments in companies, such as profit and non-profit realities as a pathway for sustainable development and the role of hybrid organizations in the context of growth and change. The book includes theoretical analyses, case studies, and literature reviews on impact assessment using broad perspectives. Finally, the links between social assessment and social finance are addressed

Overcoming sustainability barriers through Formalized Network Contracts (FNCs): the experience of Italian SMEs

Working Paper Ircres-CNR 03/2018. The role of formal business networking in SMEs is receiving more attention from scholars and practitioners. However, several aspects remain unclear, including if and how, corporate sustainability approaches are implemented and aligned within such networks, mostly created for competitiveness and resource efficiency purpose. With the aim of filling this gap in the literature over Small Business Social Responsibility, an empirical investigation is proposed by analyzing 389 Formalized Network Contracts and their original legal document, following Bocken et al. (2014) business model archetypes and NBS (2012) studies on sustainable innovation and, normative-making perspectives. Findings include the addition of a new general aims for such FNC that is the creation and enablement of clusters, following the perspective of Creation of Shared Value. In addition, we demonstrate that FNC is a suitable tool for micro, SMEs, and individual entrepreneurs to meet sustainability issues introducing eco-innovations, eco-efficiency and shared value herein their products/services, business models and organizational changes as roughly half of these contracts include a reference to sustainability issues

Synergetic value-driven innovation in business model of organic agriculture in China: a case study of IGARDEN

The innovation of business model is an important way for enterprises to gain competitive advantages and achieve sustainable development. With the rapid development of organic agriculture, an increasing number of scholars started to pay more attention to the research on the business model innovation of organic agriculture in recent years. However, most of the studies took the western developed countries as research objects, while research on cases of China’s local entrepreneurs are not often to be found. In order to develop Chinese organic agriculture’s business model innovation theory and to guide the practice, this thesis selects IGARDEN as the research object, and with a value-created perspective we explore the innovation process, path and essential characteristics of its business model by a case study method. Through the case study of IGARDEN, the result shows that: (1) The business model of IGARDEN follows the evolution from product-based to platform-based; (2) IGARDEN’s business model innovation follows the logic of value creation, and the core of value creation is the expression of product value, the increase of platform value and the accumulation of sustainable value; (3) The emergence of synergistic value expands the border of value creation activities, promoting the innovation process of business model. Driven by Synergetic Value, the value creation carrier of IGARDEN has thus facilitated the emergence of new business models; (4) The process of business model innovation in IGARDEN is essentially an iterative process based on value creation, value synergy and value upgrading. The research result has contributed to the potential enrichment of theories related to business model innovation through a specific scope of the business model innovation within the organic agriculture industry of China, and it can be a guide of forming business model innovation strategy for entrepreneurs facing similar business environment as described in the case.A inovação do modelo de negócios é um método importante para as empresas obterem vantagens competitivas e alcançarem o desenvolvimento sustentável. Com o rápido desenvolvimento da agricultura orgânica, um número crescente de estudiosos começou a prestar mais atenção à pesquisa sobre o modelo de negócios da agricultura orgânica nos últimos anos. No entanto, a maioria dos estudos levaram esses países ocidentais desenvolvidos como objetos de pesquisa, enquanto a pesquisa sobre casos de empreendedores locais chineses não costuma ser encontrada. Para desenvolver a teoria da inovação do modelo de negócio da agricultura orgânica chinesa e orientar a prática, esta tese seleciona o IGARDEN como objeto de pesquisa e, com uma perspectiva de valor, exploramos o processo, caminho de inovação e as características essenciais de seu modelo de negócio. Através do estudo de caso do IGARDEN, o resultado mostra que: (1) O modelo de negócio do IGARDEN segue a evolução de baseada em produto para baseada em plataforma; (2) A inovação do modelo de negócios do IGARDEN segue a lógica da criação de valor, e o núcleo da criação de valor é a expressão do valor do produto， o aumento do valor da plataforma e o acúmulo de valor sustentável; (3) O surgimento de valor sinérgico expande a fronteira das atividades de criação de valor, promovendo o processo de inovação do modelo de negócio. Impulsionado pelo Valor Sinérgico, o portador de criação de valor do IGARDEN facilitou o surgimento de novos modelos de negócios; (4) O processo de inovação do modelo de negócios no IGARDEN é essencialmente um processo iterativo baseado na criação de valor, na sinergia de valor e na atualização de valor. O resultado da pesquisa contribuiu para o potencial enriquecimento de teorias relacionadas à inovação do modelo de negócios através de um escopo específico da inovação do modelo de negócios dentro da agricultura orgânica da China, e pode ser um guia de formação de estratégia de inovação de modelo de negócios para empreendedores que enfrentam negócios semelhantes ambiente descrito neste caso

Beyond the Product – Enabling design services in small and medium sized enterprises

While the design industry is moving into new domains, it seems that potential customers do not always understand how the designer can contribute beyond the aesthetically appealing product. The overall purpose of this thesis is to expand our understanding of design as an enabling service in the context of small and medium sized enterprises. Enabling design services have the potential to result in organizational learning and change. The co-creation of new knowledge and competencies can in turn enable the customer organization to become more innovative and able to deal with an ambiguous environment. The first part of the research consisted of interviews and workshops with the major industrial design consultancies in Sweden and Finland and some smaller American consultancies. A conceptual business model canvas based on service dominant logic is presented in the thesis to increase our understanding of the business of the industrial design consultancy. During the study, we observed several changes in the organization of the industrial design consultancy. We also noticed self-confidence among the industrial design consultancies in respect to their skills in methods to orchestrate collaboration and contribute to strategic development in customer organizations. An analysis of the initial interviews and workshops together with a literature study helped me to summarize the characteristics of the methods and processes designers are educated in as being integrative, collaborative and explorative. They are integrative in that they incorporate hands with thought, and theory with practice. They are collaborative in that interaction between individuals is a necessity to solve the wicked, ambiguous and open-ended problems the designer usually faces. This has resulted in designers being educated in methods involving a broad range of stakeholders such as users in development processes. Finally, the methods and processes are explorative in that they aim at ingenuity and focus on how things ought to be rather than on the present state. The second part of the research consisted of interviews and observations and had a focus on shared activities between design students and participants from small and medium sized companies. Design methods and processes were put into the context of organizational learning and change theories that centered on knowing as embodied and encultured. An activity theoretical model was applied to enrich the analysis of the diversity of perspectives that may lead to conflicting interpretation and negotiation in shared activities. The concepts of place and space were used to highlight the dynamics between how structures and human desires and needs motivated participants in the shared activities. Place is characterized by stability and is the strategy of the prevailing and often connected to identity. Space is practiced place and connected to change and human agency. The thesis presents how design services enabled individuals and organizations to be introduced to and to strengthen a given place, such as a discipline or organization. It also provides examples of the opposite, with individuals distancing themselves from a place, such as a discipline. Mediating artifacts and the integration of doing and reflection created experiences that evoked emotional involvement and enactment among the participants. Most activities resulted in creating space for change and learning and the outcome can be characterized as business and organizational development