scholarly journals Strategic Orientations and Absorptive Capacity on Economic and Environmental Sustainability: A Study among the Batik Small and Medium Enterprises in Malaysia

2020 ◽  
Vol 12 (21) ◽  
pp. 8957
Author(s):  
Noorshella Che Nawi ◽  
Abdullah Al Mamun ◽  
Raja Rosnah Raja Daud ◽  
Noorul Azwin Md Nasir
Keyword(s):  
Absorptive Capacity ◽  
Environmental Sustainability ◽  
Customer Orientation ◽  
Small And Medium Enterprises ◽  
Business Environment ◽  
Matrix Analysis ◽  
Cross Sectional ◽  
Strategic Orientations ◽  
Performance Matrix ◽  
Medium Enterprises

This research intended to evaluate the effects of innovation orientation (INO), customer orientation (CSO), supplier orientation (SPO), network orientation (NWO), and absorptive capacity (ABC) on economic and environmental sustainability among the Batik small and medium enterprises (SMEs) in Malaysia. This study adopted a cross-sectional design and collected quantitative data using self-reported adopted scales from 213 randomly selected Batik SMEs from Kelantan and Terengganu, Malaysia. The results revealed that INO, CSO, and ABC had a positive and significant effect on the economic sustainability (ECS) of the Batik SMEs in Malaysia. The effects of SPO and NWO on ECS were positive but not statistically significant. It was found that ECS significantly and positively affected the environmental sustainability (ENS) of the Batik SMEs in Malaysia. Besides that, ECS mediated the effects of CSO and ABC on the ENS of the Batik SMEs in Malaysia. Furthermore, important performance matrix analysis revealed that the most important factors for ENS were Batik SMEs’ ECS, absorptive capacity, and INO. For the performance of ENS, the most important factors were CSO, SPO, and NWO. The Batik SMEs and entrepreneurial development programs and policies should focus on innovation and CSO as well as improving ABC to sustain in today’s competitive business environment.

scholarly journals STRATEGIC ORIENTATIONS, THE MEDIATING EFFECT OF ABSORPTIVE CAPACITY AND INNOVATION: A STUDY AMONG MALAYSIAN MANUFACTURING SMEs

2019 ◽  
Vol 23 (02) ◽  
pp. 1950016 ◽  
Author(s):  
ABDULLAH AL MAMUN ◽  
SYED ALI FAZAL ◽  
MUHAMMAD MOHIUDDIN ◽  
ZHAN SU
Keyword(s):  
Absorptive Capacity ◽  
Small And Medium Enterprises ◽  
Structured Interview ◽  
Mediating Effect ◽  
Cross Sectional ◽  
Strategic Orientations ◽  
Top Managers ◽  
Cross Sectional Design ◽  
The One ◽  
Medium Enterprises

Strategic orientations (SOs) and absorptive capacity can significantly enhance innovation capacity in manufacturing Small and Medium Enterprises (SMEs). This study explores the relationship of SOs i.e., Market Orientations (MOs), Entrepreneurial Orientations (EOs) and Customer Orientations (COs) to absorptive capacity on the one hand, and to innovation on the other hand. The study also delves into the issue of how absorptive capacity mediates the effects of SOs on innovation in manufacturing SMEs from emerging countries’ perspective. This study uses a cross-sectional design and quantitative data collected through a structured interview of top managers from 360 manufacturing SMEs. The findings show that MO, EO and CO have positive and significant effects on innovation and that absorptive capacity partially mediates SOs’ effects on innovation.

Practice of information systems

2006 ◽  
Vol 17 (2) ◽  
pp. 199-223 ◽  
Author(s):  
Milind Kumar Sharma ◽  
Rajat Bhagwat
Keyword(s):  
Operations Management ◽  
Survey Methodology ◽  
Small And Medium Enterprises ◽  
Business Environment ◽  
Cross Sectional ◽  
Content Type ◽  
Business Operations ◽  
Current Trends ◽  
Day To Day Operations ◽  
Medium Enterprises

PurposeTo provide the outcome of information system (IS) related practice survey designed to identify current trends in Indian small and medium enterprises (SMEs).Design/methodology/approachThis research is exploratory in nature, a survey methodology is used for study and the focus of study is cross‐sectional. Two companies have been selected for detailed case studies. The objective of the study was to become more familiar through survey and information collected to one point in time. The methodology was based on a questionnaire survey and personal interviews.FindingsThe outcomes, based on a survey of 210 SMEs, reveal that though SMEs understand and acknowledge the importance of the IS in day‐to‐day operations management in the present dynamic and heterogeneous business environment but these are yet to implement, operate and exploit it fully in a formal and professional manner so as to enable them to derive maximum business gains out of it. SMEs are not found equipped adequately with the IS resources to suit their needs.Research limitations/implicationsThe target of the study is the SMEs operational in the western part of India and hence it has the limitation in terms of the scope. However, the overall results are encouraging with 70 percent response rare in the survey and underline the need for more such studies. The results have implications for all managers responsible for IS, any SME in the era of globalization.Originality/valueThe paper presents IS‐related practices going on in Indian SMEs. Findings reported in the paper provide SMEs operators the utility of IS in day‐to‐day business operations.

scholarly journals The influence of absorptive capacity and networking capabilities on small and medium enterprises

2019 ◽  
Vol 11 (1) ◽  
Author(s):  
Watson Munyanyi ◽  
David Pooe
Keyword(s):  
Absorptive Capacity ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Business Environment ◽  
Operational Performance ◽  
Technological Transformation ◽  
Rate Analysis ◽  
Day To Day Operations ◽  
Medium Enterprises ◽  
Relational Capabilities

Background: In response to the ever-growing complexity in the business environment that has resulted from the dramatic technological transformation, businesses have altered the way they conduct business. The influence of the external business environment is increasing in significance, rendering traditional methods of operating business outdated and forcing the adoption of new methods.Objective: The aim of this study is to investigate how organisational capabilities influence small and medium enterprises’ (SMEs) operational performance (OP), by specifically looking at absorptive capacity (ACAP), networking capabilities (NCs) and customer relational capabilities (CRCs).Setting: This study was conducted in Zimbabwe and was spread across the 10 provinces, focusing on 388 randomly selected SMEs.Methods: Data were collected through self-administering questionnaires to respondents, using the drop-off or pickup technique and making telephonic follow-ups to increase the response rate. Analysis of the data in this study was largely quantitative in nature and it was performed using a two-step structural equation modelling approach.Results: The results of the study indicate that CRCs lead both ACAP and NCs to improve OP.Conclusion: This study enlightens both SMEs’ managers and policymakers on the significance of capabilities, as opposed to resources, in the growth of the SMEs sector. In light of the results, it is imperative that firms orientate themselves to embrace networking and ACAP as central tenets of their day-to-day operations while attending to customers timely and innovatively.

scholarly journals Digitalization Adoption among Malaysian SMEs: The Drivers and its’ Industry Based Heterogeneity

2021 ◽  
Vol 7 (1) ◽  
pp. 10-13
Author(s):  
Mei Peng Low ◽  
Hengky Latan ◽  
Charbel J Chiappetta Jabbour
Keyword(s):  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Group Analysis ◽  
Positive Influence ◽  
Partial Least Square ◽  
Least Square ◽  
Matrix Analysis ◽  
Equation Modeling ◽  
Performance Matrix ◽  
Medium Enterprises

Digital technologies advancement has immersed in many aspects of our lives, be it an individual or a business. The fast moving technologies has fostered the growth of digital economy. Businesses which fail to adopt will eventually lose their competitive advantage. The pressing phenomena motivates the study of digitalization adoption among small and medium enterprises (SMEs), which account for the majority of the businesses worldwide. Technology-Organization-Environment (TOE) framework was utilized to guide this study. The plausible difference between service based and non-service based industries was also examined. Quantitative approach via purposive sampling was performed to collect data from the SMEs. The data was analyzed using the concept of Hierarchical Component Model (HCM) for TOE constructs and Multi-Group Analysis (MGA) under the purview of Partial Least Square Structural Equation Modeling (PLS-SEM). For more insightful findings, Importance Performance Matrix Analysis (IPMA) was conducted. The findings informed that Technology and Organization record significant positive influence on Digitalization Adoption among SMEs while there is heterogeneity between service based and non-service based industries.

How does management perceive export success? An empirical study of Moroccan SMEs

2015 ◽  
Vol 21 (1) ◽  
pp. 126-151 ◽  
Author(s):  
Hind El Makrini
Keyword(s):  
Customer Orientation ◽  
Small And Medium Enterprises ◽  
Cross Sectional ◽  
Policy Makers ◽  
Resource Based View ◽  
Content Type ◽  
Factors Affecting ◽  
Quantitative Design ◽  
Medium Enterprises ◽  
Practical Implications

Purpose – The purpose of this paper is to examine the managerial determinants of the export success of Moroccan small and medium enterprises (SMEs) based on resource-based view (RBV) of a firm. Design/methodology/approach – The quantitative design was employed involving a questionnaire completed by 100 managers of Moroccan SMEs. Multiple regression analyses were carried out to confirm or reject eight hypotheses. Findings – It was found that management export commitment and management customer orientation are the main managerial factors in the export success of Moroccan SMEs. Research limitations/implications – The study was limited to one context, and it followed a cross-sectional approach. Export success was measured by only subjective method with Likert scale. The study suggests that further investigations can be made to incorporate other factors affecting export success. Practical implications – The results offer insights into the practices of Moroccan exporting SMEs and recommendations for policy makers as well as an indication for further research. The research can also be used in teaching. Originality/value – First, the tested model is one of few that consider developing country contexts. Second, this research can serve as a guide for future researchers who intend to study export success in other developing countries, particularly in Maghreb regions where there is a gross dearth of research. Therefore, the study is of significant value to practitioners and scholars alike.

scholarly journals Extrapolative Collaborative Filtering Recommendation System with Word2Vec for Purchased Product for SMEs

2021 ◽  
Vol 13 (13) ◽  
pp. 7156
Author(s):  
Kyoung Jun Lee ◽  
Yu Jeong Hwangbo ◽  
Baek Jeong ◽  
Ji Woong Yoo ◽  
Kyung Yang Park
Keyword(s):  
Collaborative Filtering ◽  
High Performance ◽  
Recommendation System ◽  
Small And Medium Enterprises ◽  
Personal Information ◽  
Business Environment ◽  
Share Data ◽  
Artificial Intelligence Technology ◽  
Medium Enterprises ◽  
Start Ups

Many small and medium enterprises (SMEs) want to introduce recommendation services to boost sales, but they need to have sufficient amounts of data to introduce these recommendation services. This study proposes an extrapolative collaborative filtering (ECF) system that does not directly share data among SMEs but improves recommendation performance for small and medium-sized companies that lack data through the extrapolation of data, which can provide a magical experience to users. Previously, recommendations were made utilizing only data generated by the merchant itself, so it was impossible to recommend goods to new users. However, our ECF system provides appropriate recommendations to new users as well as existing users based on privacy-preserved payment transaction data. To accomplish this, PP2Vec using Word2Vec was developed by utilizing purchase information only, excluding personal information from payment company data. We then compared the performances of single-merchant models and multi-merchant models. For the merchants with more data than SMEs, the performance of the single-merchant model was higher, while for the SME merchants with fewer data, the multi-merchant model’s performance was higher. The ECF System proposed in this study is more suitable for the real-world business environment because it does not directly share data among companies. Our study shows that AI (artificial intelligence) technology can contribute to the sustainability and viability of economic systems by providing high-performance recommendation capability, especially for small and medium-sized enterprises and start-ups.

scholarly journals Strategic Planning and Competitive Advantage of ICT Small and Medium Enterprises in Kenya

2013 ◽  
Vol 1 (1) ◽  
pp. 191 ◽  
Author(s):  
Zachary B. Awino
Keyword(s):  
Strategic Planning ◽  
Competitive Advantage ◽  
Small And Medium Enterprises ◽  
Critical Role ◽  
Dynamic Environment ◽  
Business Environment ◽  
Positive Influence ◽  
Balanced Score Card ◽  
Medium Enterprises

The Paper is the research findings on the role of strategic planning and competitive advantage of ICT Small and Medium Enterprises in Kenya. Literature suggests that the contemporary business environment in which organisations operate is increasingly becoming uncertain and unpredictable. Significant changes are mostly driven by technological changes, globalisation and trade liberalisation. As a result, like large enterprises, SMEs are facing new and unexpected challenges that threaten their competitiveness. While most countries acknowledge the critical role that SMEs contribute to their economies, both as an engine of growth and sustainable development, many questions still remain unanswered as to the determination of the critical challenges facing SMEs and how these challenges could be addressed to improve their competitiveness. These challenges have increased the need for empirical information which is essential for decision making in addressing issues that are likely to enhance SMEs survival and growth. It is noted that there has been no adequate research studies on the role of strategic planning and competitive advantage of SMEs. This study contributes to the need to address the research gaps and thus explored the role of strategic planning and competitive advange of SMEs in Kenya. The study population consisted of 238 ICT SMEs from Nairobi and its environs. A sample size of 146 firms constituting 61 per cent of the total population was selected through stratified sampling. The study aimed to collect data from 438 respondents from top, middle and lower management teams. Structured questionnaires with closed and open ended questions was used for data collection, 239 responses were received from 123 ICT firms a response rate of 55 per cent and 84.2 per cent respectively. Key characteristics of strategic planning including formality, environmental analysis processes both internal and external orientations, strategies adopted, and implementation and control were recorded. Data analysis was done using descriptive statistics, factor analysis, t-test, ANOVA, correlation, correlation matrixes and regression analysis. The key findings revealed that strategic planning has significant and positive influence in performance of SME’s. The test of hypothesis revealed that strategic planning has positive and significant influence on competitive advantage. The study demonstrated strategic planning as a learning tool and a strategic resource which is consistent with the underlying assumptions of resource based theory, systems theory, chaos theory and balanced score card model assumptions. It is envisaged that, this kind of research is likely to generate useful discussions on the role of strategic planning and performance, of SMEs. It is apparent that entrepreneurs of SMEs cannot ignore strategic planning as significant changes in competitive advantage is the result of change or effective application of strategic planning. Policy makers and academicians may need to address the capacity needs of SMEs and develop strategic planning model that address the challenges that SMEs encounter in a dynamic environment.

scholarly journals Women Entrepreneurs in Bangladesh- Challenges and Determining Factors

2015 ◽  
Vol 9 (2) ◽  
pp. 27-41 ◽  
Author(s):  
Tania Afroze ◽  
Md Kashrul Alam ◽  
Eliza Akther ◽  
Nahid Sultana Jui
Keyword(s):  
Gender Discrimination ◽  
Women Entrepreneurs ◽  
Small And Medium Enterprises ◽  
Secondary Data ◽  
Business Environment ◽  
Sales Promotion ◽  
Social Constraints ◽  
Management Skills ◽  
Economic Activities ◽  
Medium Enterprises

The aim of this study is to find out the major challenges that hinder smooth operation of women entrepreneurs of Bangladesh. It also finds the reasons behind the success of the women entrepreneurship. Both primary and secondary data have been used to conduct the study. The questionnaire included questions about economic problems, family related issues, social constraints and other limitations faced by women entrepreneurs and the reasons behind their success. Women involved in various small and medium enterprises take on the challenge to work in a male-dominated society, competitive and complex economic and business environment. However, the identified challenges are inadequate capital, sales promotion, getting permission to start-up a business, gender discrimination, illiteracy and lack of knowledge among women, non-availability of training program and technical support, lack of managerial experience, in some cases young people make ill talk about the enterprise and so on. Personal qualities such as hard work and perseverance, management skills and marketing skills, support provided by their spouses or family are the main reasons behind the success of the women entrepreneurs. The level of participation of women in mainstream economic activities remains insufficient and the percentage of women in business is still much below than that of their male counterparts.Journal of Business and Technology (Dhaka) Vol.9(2) 2014; 27-41

scholarly journals New tools and opportunities in growth and climate friendly greening for small and medium enterprises in the European Union

2015 ◽  
Vol 9 (4) ◽  
pp. 25-31
Author(s):  
Xénia Szanyi-Gyenes ◽  
György Mudri ◽  
Mária Bakosné Böröcz
Keyword(s):  
Economic Growth ◽  
Environmental Sustainability ◽  
Small And Medium Enterprises ◽  
Sustainable Growth ◽  
Added Value ◽  
Easy Access ◽  
The European Union ◽  
Access To Finance ◽  
Medium Enterprises ◽  
The Eu

The role of Small and Medium Enterprises (SMEs) is unquestionable in the European economies, while financial opportunities are still inadequate for them. The more than 20 million SMEs play a significant role in European economic growth, innovation and job creation. According to the latest EC Annual Report , SMEs are accounting for 99% of all non-financial enterprises, employing 88.8 million people and generating almost EUR 3.7 tn in added value for our economy. Despite the fact that there is plenty of EU funding available for these SMEs, for certain reasons these funds hardly reach them. But we have to see that the EU supports SMEs by various way, e.g. by grants, regulatory changes, financial instrument, direct funds. On the other hand, SMEs and decision makers realised that the environmental sustainability has to be attached to the economic growth, therefore more and more tools are available for these enterprises. Over the last few years, public institutions, the market, the financial community and non-governmental associations have explicitly demanded that firms improve their environmental performance. One of the greatest opportunities might lay in the Climate- and Energy Strategy till 2030 as 20% of the EU budget is allocated to climate-related actions, however the easy access to finance is still a key question. Does the EU recognise the actual difficulties? Is there a systemic reason behind the absorption problems? Is the EU creating a more businessfriendly environment for SMEs, facilitating access to finance, stimulates the green and sustainable growth and improving access to new markets? The paper analyses the current European situation of the SMEs and the effectiveness of some new tools, which are specially targeting SMEs. JEL classification: Q18

scholarly journals Internationalization of Small and Medium Enterprises from Arusha Tanzania: Market Information, Financial Resources and Product Quality Setbacks

2018 ◽  
Vol 4 (2) ◽  
pp. 77
Author(s):  
Liliane Pasape
Keyword(s):  
Product Quality ◽  
Small And Medium Enterprises ◽  
Information Source ◽  
Business Environment ◽  
Packaging Materials ◽  
Market Information ◽  
Processing Machinery ◽  
Key Players ◽  
Processed Products ◽  
Medium Enterprises

The small and medium enterprises (SMEs) are key players towards reviving the economy and livelihood development in Tanzania, yet their involvement in international business is still unsatisfactory. This study therefore assessed the three major setbacks for industrialization of Arusha’s SMEs namely as information, finance and quality. A cross-section research design was conducted using questionnaires. Through non-probability sampling, 50 respondents were stratified selected from SMEs owners, employees, business development support organizations and regulators. Data was analysed using descriptive statistics and logit model. The findings on the existing business environment revealed that: majority of the SMEs involve women (68%) dealing with handcraft and tailoring, with less than five years of business experience. Moreover, the major identified information setbacks are low access to information source, use of irrelevancy market information, use of in effective medium of communication and high cost of the information. Besides, other financial related setbacks are limited sources of capital, lack of collateral, poor credibility history and high transaction cost. On quality setbacks include selling semi processed products, poor finished product and packaging materials as well insufficient processing machinery. Thus for SMEs internationalization the following recommendations are established: improving accessibility and affordability of relevant market information; designing various financial products at reasonable lending rates, strengthening entrepreneurial skills and formalization of enterprises; enhancing availability of processing machinery and packaging materials for improving product quality and competitiveness as well as avoiding selling of semi processed products . Above all, the government, regulators, private sector organizations and other key players along the value chain must play their respective relevant role towards supporting SMEs.

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