Development of small and medium enterprises through clusters and networking : a comparative study of India, Pakistan and Sri Lanka

Clusters have several advantages. These include a high degree of networking which stimulates productivity, ability to diversify and to acquire the capacity to new products when the demand for existing products falls. The policy makers are searching ways to create new clusters. With an even more globalized world and increased competition the appeal of clusters has become stronger and more urgent. Yet, the formation and the sustenance of the clusters has somehow remained a mystery. There has been a limited research carried out in this direction. No doubt it is a complex area and no figurative results can be highlighted to show as to how the development of industrial clusters has taken place. The authors go about seeking answers to these questions by examining the experience of some of the prominent and successful clusters, their formation and sustenance in the three countries. The study further investigates various initiatives, the role and the results thereof in development of clusters.peer-reviewe

Exploring the role of individual level and firm level dynamic capabilities in SMEs’ internationalization

This paper presents a multi-level model that examines the impact of dynamic capabilities on the internationalization of SMEs while taking into account the interactions among them. The purpose of the research is to understand the applicability of dynamic capabilities at the individual and the firm level to the SME internationalization process in developing country context and to assess to what extent a firm’s asset position and individual level dynamic capabilities influence the generation of firm level dynamic capabilities in SMEs. First, the dynamic capabilities theory was theoretically linked to the internationalization phenomenon. The relationships among firm-level dynamic capabilities, individual-level dynamic capabilities (owner specific dynamic capabilities), and internationalization were identified. The research framework and hypotheses were developed and empirically tested with 197 SMEs. The findings established that owner-specific dynamic capabilities have a positive influence on both firm dynamic capabilities and internationalization, and firm dynamic capabilities positively influence internationalization. It was also found that the market assets position measured as perceptual environmental dynamism positively influenced firm dynamic capabilities but structural and reputational asset positions of SMEs did not influence generation of firm dynamic capabilities. Moreover, firm dynamic capabilities had a mediation effect in the relationship between owner-specific dynamic capabilities and internationalization. Theoretically, this confirms the relevance of dynamic capability theory to internationalization and the possibility of integrating existing internationalization theories. Entrepreneurs, SME managers, and policy-makers could gain valuable insights on how entrepreneur and firm capabilities lead to better international prospects from this outcome

Lessons from natural disasters, tsunami-affected Small and Medium-Sized Enterprises (SMEs) in Sri Lanka

The main objective of this paper is to identify some of the key issues encountered by tsunami-affected small and medium-sized enterprises (SMEs) in the process of rehabilitation and re-establishment in Sri Lanka. The second objective is to assess how far these affected industries have received various benefits and supports from bodies such as government agencies, private sector firms, donors and NGOs to help them get back into business. The final objective is to recommend policies and strategies to develop the tsunami-affected SMEs in a self-sustaining manner and within a certain time period. The main database of firms for this research has been obtained from the Industrial Development Board, which conducted a survey covering 4,389 tsunami-affected micro- and SMEs. In addition to this, information from various state organizations and NGOs-based sources has been used. This paper identifies the main issues related to tsunami-affected SMEs ranging from basic infrastructure provision up to finance, marketing, machinery, technology, training, product identification and development and so forth. In fact, it is shown that there are no significant differences between issues faced by SMEs in general and tsunami-affected SMEs, apart of course from the effects of a sudden disaster (the tidal wave). Consequently, these issues can be generalized as issues relevant to SMEs in Sri Lanka as a whole. However, under the flood and rain of local and foreign assistance, there have been more pledges and promises than actual deliveries and, so, tsunami-affected SMEs have received comparatively little support and assistance in recovering and no records can be found as to where the colossal amount of foreign assistance received has actually gone. Finally, this paper recommends various types of business incubator centres and entrepreneurial enhancing skill programmes for the revamping of tsunami-affected SMEs in addition to the normal disaster risk management plan

The Impact of incentives and regulatory regimes on changing customer behavior : a study based on the Power Utility Customer Segments in Sri Lanka

This study aims to develop a scientific model to ascertain the impact of incentives, regulatory regimes, and new technology products on the behavior of different customer segments of the electricity market, in order to conserve energy and address the current problem of peak power deficit in Sri Lankan electricity secto

Factors affecting sustainability of municipal solid waste composting projects in Sri Lanka

During the past decades, many composting projects have been implemented with the assistance from various donor agencies to address the municipal solid waste (MSW) problem in developing countries, especially in urban areas. However, very few of these projects are sustainable and many were reported as failures, some even closed down and most ofexisting operations rely on heavy subsidies from the Government, foreign funding sources and Local Authorities (LAs). To enhance solid waste management (SWM) an initiative called "Pilisaru" project started in 2008 lead by the Central Environmental Authority (CEA) to develop the infrastructures of LAs for a better S WM system mainly focllsing on composting as an efficient low cost option for treatment of the organic waste fraction. However, the initial assessment of this initiative encountered many issues. Therefore, this study was proposed to identifY main lactors that affect the sustainability of municipal compost plants. The methods used to obtain data for this research comprise, sample survey that involved five selected compost plants operating under LAs in Sri Lanka; a specific lield survey that observed waste segregation activities: and a cl ients perception survey conducted in a super market in Colombo that aimed to assess customers perspective 011 buying and use ofcompost based I"bod products. To supplement the findings ofthese investigations, a complementary literature revie\\ and selected expert interviews were carried out with representative stakeholders. The research findings indicate that most of LAs do not have the needed expertise to design, implement and manage an integrated S WM system that allows efticient operation of compost plants according to recognized standards. Furthermore, it appears that 1110st ofthe compost plants do not manage it full-cost recovery of their O&M cost with the main issues that users are not charged for the provided waste management services and .produced compost can not be marketed successfully, Besides, from the perspective of sustainable operation, need and provision offuture investment is unclear, especially for replacement to maintain an effective operation level. To overcome the emerging weaknesses of the Pilisaru project, it is recommended to provide a continuous capacity building programme for the LAs and involved stakeholders, supported by public awareness programs, especially lor enhanced waste segregation, marketing promotion for compost products as well as technical and financial assistance for relevant stakeholders that need support to perform their tasks in the SW value chain. Furthermore, it is envisioned to revisit the provided SWM policies and to add regulations that built on insights from best SWM practices in Sri Lanka but also from applicable international experiences from other developing countries. This should also include the production of quality compost that meets the fertilizer demands from an agriculture perspective. Lastly, the enhancement of waste segregation practices and involvement of the private sector should be addressed in order to strengthen operations and business performance through enhanced public participation and Private-Public-Partnerships (PPP)

Challenges of agri-food supply in city region food systems : an emerging economy perspective

Purpose - This paper explores the challenges of food security from source to consumption of agri-food value chain by considering urban–rural linkages in city region food systems (CRFSs) and proposes a strategic framework for CRFS identifying strategies to promote urban–rural linkages among multiple stakeholders. Design/methodology/approach - A qualitative case study approach to a fruit and vegetable value chain from rural source to consumption in the Colombo City region identifies the challenges of food security. A snowballing sampling method was used to gather information from retailers, wholesalers, commission agent, farmers and consumers. The data were collected through face-to-face interviews, observations and secondary data sources. The data were analysed using thematic analysis. Findings - Challenges in food security in the value chain related to five areas: input and production, infrastructure, public institutional support and policy, finance, and food market. Colombo city is heavily dependent on food sourced from other cities due to limited land and lack of locally situated commercially oriented farmers. Research limitations/implications - This research is limited to a selected number of fruits and vegetables in the Colombo city region and leaves out other food items. Originality/value - This study contributes to informing policy and decision-making processes to promote a more balanced rural to city food value chain in Colombo City that could benefit all stakeholders from rural small-scale producers to urban consumers