Supply chain drivers, partnerships and performance of high-tech SMEs

Relationship between Changes in the Business Environment, Innovation Strategy Selection and Firm’s Performance: Empirical Evidence from Slovenia

This article studies the relationship between changes in the external business environment, a firm’s innovation strategies towards customers, and performance. A model of relations was developed, as well as a hypothesis: “The use of the differentiation strategy has a positive effect on firm’s performance. SMEs that use the differentiation strategy achieve better performance than those who use one of the other strategies (low-cost strategy, focus strategy, or an overtaking strategy)”. The empirical study includes a population of 3007 SMEs and a sample of 163 SMEs. The firm’s performance was measured using financial measures such as return on equity (ROE) and return on assets (ROA), operational measures such as economic value added (EVA) and comprehensive measures such as credit rating (CR). The structural equation modelling (SEM) approach was used for data analysis. Based on the results, we can confirm that changes in a firm’s external environment affect the firm’s strategy towards customers, which influences the performance of a firm. The empirical study confirmed that firms using the differentiation strategy indicate higher performances (ROA, EVA, and CR) than those using any other strategy. Results also show that high-performance SMEs incorporate customer perspectives into strategy selection. The most significant influence on the firm’s selection of the differentiation strategy was found in cases when the firm cooperates with new customers with whom it has not collaborated thus far. SMEs that use a low-cost strategy, focus strategy, or overtaking strategy are less successful than companies that use a differentiation strategy. The developed model of relations in this research has special meaning for researchers and managers in the field of strategic management, strategy selection and implementation, as well as performance of SMEs.

Relationship Stability and Supply Chain Performance for SMEs: From Internal, Supplier, and Customer Integration Perspectives

This study examined the relationship between supply integration and relationship stability and the relationship between relationship stability and performance; furthermore, the moderation effect of environmental uncertainty on supply chain integration and relationship stability was analyzed. The subjects are typical small and medium-sized enterprises (SMEs) in developing countries that focus on niche markets to compete with large-scale manufacturers. Questionnaires were distributed to manufacturers to collect empirical data; in total, 566 valid samples were gathered. The results indicate that supply chain integration has positive effects on relational stability and that relational stability has positive effects on supply chain performance. Relational stability is a mediator between supply chain integration and supply chain performance. The contingency effects of environmental uncertainty on the relationships between internal integration and relational stability were determined in this research. This research framework extended past research on supply chain management; part of the research explored the relationship between supply chain integration and different measures of supply chain performance, as well as whether uncertainty affects supply chain integration and supply chain performance.

SME productivity stakeholders: getting in the right orbit

Purpose

The purpose of this paper is to explore who small and medium-sized enterprise (SME) owner–managers consider as key stakeholders for their business for helping increase productivity and the nature of the stakeholders' impact.

Design/methodology/approach

The study uses the Lego Serious Play methodology and narrative analysis in a focus group setting.

Findings

The analysis revealed a narrow depth of field of productivity stakeholders and identified critical narratives, involving close stakeholders which could constrain productivity. Lack of information on current and/or future productivity states, and a social brake due to the potential impact on employees are two at the forefront of owner–manager perspectives. The study also identified the importance of internal and external champions to improve productivity and re-enforced the significance of skills gaps, the role of Further Education providers and other infrastructure assets.

Research limitations/implications

The purposiveness sample of the single focus group setting results in a lack of generalizability, but provides potential for replication and transposability based on the generic type of stakeholders discussed. The work highlights the potential to further enhance the constituent attributes of stakeholder salience.

Practical implications

There is a potential for different network agents to increase their collaboration to create a more coherent narrative for individual productivity investment opportunities and for policy makers to consider how to leverage this.

Social implications

The findings suggest that the implications of deskilling and job loss are major factors to be considered in the policy discourse. SMEs are less likely to pursue productivity improvements in a low growth setting because of their local social implications.

Originality/value

The study is innovative in using Lego to elucidate narratives in relation to both stakeholder identification and their contributions to productivity improvement impact in a UK SME context. The study introduces an innovative stakeholder orbital map and further develops the stakeholder salience concept; both useful for the future conceptual and empirical work.

Strategic issues in supply chain management of Indian SMEs due to globalization: an empirical study

Purpose

In globalized market, organizations of all sizes are having huge opportunities for growth. However, due to various resource constraints, it has become challenging for small and medium enterprises (SMEs) of growing economies to survive in this global competition. Effective supply chain management (SCM) can be a major driving factor for success of Indian SMEs in dynamic world economy. SMEs face many operational challenges while implementing effective SCM. The purpose of this paper is to study different strategic issues for successful implementation of SCM in Indian SMEs.

Design/methodology/approach

A survey has been conducted in Indian SMEs of different sectors. Major constructs of survey instrument are motivations, hindrances, investment priorities, supply chain practices and performance. In total, 1,500 Indian SMEs have been approached for collecting response through survey instrument. 257 complete responses were finalized. Statistical analysis of data acquired from survey is performed by using SPSS software.

Findings

It is observed that managing customers, organization resources, and inventory are main SCM practices. Major investment areas are systems for developing quick response and quality management. Currently, human resource and knowledge management have been found to be less priority areas for SMEs. The major focus of Indian SMEs is on cost and lead time reduction by having effective SCM.

Originality/value

Novelty of this study is that strategic issues for effective SCM in context to Indian SMEs have been analyzed. The findings of the study will help Indian SMEs in doing strategic planning for being competitive in the global market.

Distribution channels of vegetable industry in Indonesia: impact on business performance

Purpose

The purpose of this paper is to analyse the distribution channels of vegetable sectors in Indonesia, its economic impact on the performance of vegetable sales and the factors affecting marketing channels selected by producers.

Design/methodology/approach

The study employed qualitative and quantitative methods. A market survey was qualitatively conducted at producer, intermediary, wholesaler, hotel and food processing company as well as retailer levels. Producer survey was quantitatively conducted at the farm level, by interviewing 556 randomly selected farm households. Structural equation modelling was employed to accomplish the objectives of the study.

Findings

Marketing channels for vegetables in Indonesia was complex and relatively long. Farmers decided to select particular channels because of business circumstance and their knowledge. Distance and gentleman’s agreement with traders limited farmers to choose the desirable marketing channel. Marketing channels affect business performance in terms of high sales and profit.

Research limitations/implications

This study only pays attention to the supply side of vegetables. The effect of marketing channels also encumbers the consumers, which are beyond this study. Other studies are expected to highlight the consumer side.

Originality/value

This study focused on smallholder agribusiness players. This study uses two surveys as data sources: market survey and producer survey. The market survey serves as vital information to design producer surveys.

Mediating role of quality performance on the association between organisational factors and competitive advantage

Purpose

The purpose of this paper is to provide an initial empirical insight into the mediating role of quality performance on the association between six specific organisational factors (top management support, employee involvement, employee empowerment, reward and recognition, training and customer focus) and competitive advantage.

Design/methodology/approach

A survey questionnaire was used to collect data from 179 garment organisations in a developing country, Bangladesh.

Findings

The results show that quality performance mediates the association between three specific organisational factors (top management support, employee involvement and reward and recognition) and competitive advantage. In addition, a fourth organisational factor, employee empowerment, exhibited a direct association with competitive advantage.

Originality/value

The findings provide managers of developing economies with an important insight into the critical role of quality in achieving competitive advantage. In line with the resources-based view, the findings suggest that managers should deploy their limited resources to focus on providing top management support for, encourage employee involvement in and provide adequate rewards and recognition in respect to quality initiatives.