1
|
Roffia P, Dabić M. The role of management control and integrated information systems for the resilience of SMEs. Rev Manag Sci 2023. [PMCID: PMC10044055 DOI: 10.1007/s11846-023-00657-6] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [Grants] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 03/30/2023]
Abstract
This paper investigates the resilience of small and medium-sized enterprises (SMEs) in relation to the COVID-19 pandemic, particularly the influence exerted by certain factors related to management control, integrated information systems (enterprise resource planning [ERP]), information and communication technology (ICT) systems, and financial resources. For this purpose, leveraging from the dynamic capability theory, in late spring 2020, a questionnaire was sent to limited-liability SMEs in Verona and Vicenza provinces in Italy operating in the manufacturing, construction, and distribution sectors. Respondents were asked to answer a set of questions and to evaluate the resilience of their firms as of January 1, 2020; May 1, 2020; and one year later, as of July 2021. Using a multivariate regression model to analyze data from the 143 questionnaires received, we found a positive influence of budgeting, business continuity tools, availability of supplementary financial resources, and resilience of the entrepreneur on both COVID-19 resilience and the organizational resilience of SMEs. SMEs with a high intention to use ERP systems also had high resilience levels. ICT use for smart working was not statistically significant. Despite the limitations concerning the sample and period considered, we believe that this study contributes to both academic debate, by illustrating the influence of certain managerial and organizational factors on the resilience of SMEs, and practice, by supporting a greater empirical use of management control tools, such as budgets and contingency plans, and integrated information systems (ERP). Our study supports the creation of financial buffers and strengthening the entrepreneur’s resilience for improving SME resilience.
Collapse
Affiliation(s)
- Paolo Roffia
- grid.5611.30000 0004 1763 1124Department of Management, University of Verona, Verona, Italy
| | - Marina Dabić
- grid.4808.40000 0001 0657 4636Faculty of Economics and Business, University of Zagreb, Zagreb, Croatia
| |
Collapse
|
2
|
Syrová L, Špička J. Exploring the indirect links between enterprise risk management and the financial performance of SMEs. Risk Manag 2023; 25:1. [PMCID: PMC9744063 DOI: 10.1057/s41283-022-00107-9] [Citation(s) in RCA: 1] [Impact Index Per Article: 1.0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [Grants] [Track Full Text] [Subscribe] [Scholar Register] [Accepted: 09/10/2022] [Indexed: 01/19/2024]
Abstract
This paper responds to the lack of empirical evidence on how enterprise risk management (ERM) and the financial performance of small and medium-sized enterprises (SMEs) are related. Structural equation modeling is used to explore new mediators in the relationship between ERM and SME financial performance. The results show that organizational culture (mission dimension) and strategic risk management performance are full and positive mediators between ERM and financial performance. These research results highlight the fact that the implementation of ERM in an enterprise does not by itself generate the expected effects without the existence of a mature organizational culture and the monitoring of strategic risk management performance. These findings are particularly relevant for SMEs with “pretend ERM” that lacks the strategic and operational components. ERM also helps to transform the negative effect of foreign capital in SME equity on financial performance into a positive effect.
Collapse
Affiliation(s)
- Lenka Syrová
- Department of Strategy, Faculty of Business Administration, Prague University of Economics and Business, Prague, Czech Republic
| | - Jindřich Špička
- Department of Strategy, Faculty of Business Administration, Prague University of Economics and Business, Prague, Czech Republic
| |
Collapse
|
3
|
Nabil Messabia, Paul-Rodrigue Fomi, Chokri Kooli. Managing restaurants during the COVID-19 crisis: Innovating to survive and prosper. Journal of Innovation & Knowledge 2022; 7. [ DOI: 10.1016/j.jik.2022.100234] [Citation(s) in RCA: 8] [Impact Index Per Article: 4.0] [Reference Citation Analysis] [What about the content of this article? (0)] [Abstract] [Key Words] [Track Full Text] [Subscribe] [Scholar Register] [Received: 04/05/2022] [Accepted: 07/17/2022] [Indexed: 06/16/2023]
Abstract
This research examines the experiences of small- and medium-sized enterprise (SME) owners in the food service sector during the COVID-19 crisis. We collected authentic opinion through semi-structured interviews with restaurant owners in the Outaouais region (Quebec, Canada). Qualitative analysis of the interviews revealed that restaurant owners suffered from several issues: stress, shortage of employees, financial losses, liquidity problems, closures, reopenings, and difficulties in adapting to change. To overcome this crisis, entrepreneurs had to demonstrate resilience, innovation, and strategic management. Meanwhile, through its assistance programs, the government greatly supported entrepreneurs. While Canadian federal programs performed well, the Quebec government's support remained limited. We suggest that public administrators and program evaluators should address the shortcomings raised in this research. Lastly, this study contributes to the literature by providing a new perspective on the strategic management of SMEs during crisis and new managerial insights. Furthermore, we provide new perspectives on inclusive policy and program design during crisis.
Collapse
|
4
|
Pozzo DN, Roa IG, Beleño CAG, Orfale HJ, Montaño AMA, Gomez AJR. Exporters' risk perceptions during covid times: a study with Colombian and Brazilian SMEs. Procedia Computer Science 2022; 210:339-344. [DOI: 10.1016/j.procs.2022.10.161] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Abstract] [Key Words] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 11/16/2022]
Abstract
The present study aims to provide an initial highlight on risk perceptions of exporting SMEs from Latin America during the covid-19 pandemic. A sample of Colombian and Brazilian companies was analyzed using 24 scenarios based on 8 risk types: contamination risk, exchange rate risk, trade risks, logistics and operations risks, risk of policy and regulation changes, credit risk, supplier-related risks, buyer-related risks and employee-related risks. Results show significant differences between countries as well as a highly distinction between 2020 and 2021 perceptions of threat, impact, loss, and likelihood.
Collapse
|
5
|
Abstract
In the pre‐COVID period, the restaurant industry had significantly grown in India in the past decade due to rapid urbanization and modernization. In the post‐COVID period, the small restaurant entrepreneurs are fighting for their survival due to the lack of funds, a shift in the consumers' behaviour and perception, and negative cash flows. It has led to the closure of restaurants, loss of employment, and adversely affected the allied industries. The small restaurant entrepreneurs are exploring some new opportunities amid the crisis and adopting innovative approaches, technological and digital interventions to meet the consumers' need for a contact‐less dining experience. However, a joint effort on the part of entrepreneurs and government bodies will facilitate and fuel the restaurant industry's growth again.
Collapse
Affiliation(s)
- Shinu Vig
- Department of ManagementInstitute of Management StudiesGhaziabadIndia
| | - Richa N. Agarwal
- Department of ManagementInstitute of Management StudiesGhaziabadIndia
| |
Collapse
|
6
|
Thukral E. COVID‐19: Small and medium enterprises challenges and responses with creativity, innovation, and entrepreneurship. Strategic Change 2021; 30:153-158. [PMCID: PMC8207047 DOI: 10.1002/jsc.2399] [Citation(s) in RCA: 18] [Impact Index Per Article: 6.0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 06/17/2023]
Abstract
SMEs are significantly affected by COVID‐19 crisis as they overrepresent hardest‐hit sectors such as retail, hospitality, food services, entertainment services, and construction. The discovery and the spread of COVID‐19 in the absence of cure have led governments to take drastic measures, including the lockdown of large parts of society and social distancing resulting in behavioral changes. Some SMEs are responding to the crisis by applying creativity to problems to obtain opportunities. However, it is because of resilience that they can see an opportunity in chaos and survive uncertain times, but, to convert those opportunities to reality, some government interventions are needed to correct the negative effects of lockdown restrictions by revitalizing the entrepreneurial ecosystem.
Collapse
Affiliation(s)
- Esha Thukral
- Department of Management, Sport and Tourism, La Trobe Business SchoolLa Trobe UniversityMelbourneVictoriaAustralia
| |
Collapse
|
7
|
ElDeeb MS, Halim YT, Kamel EM. The pillars determining financial inclusion among SMEs in Egypt: service awareness, access and usage metrics and macroeconomic policies. Futur Bus J 2021; 7:32. [PMCID: PMC8334340 DOI: 10.1186/s43093-021-00073-w] [Citation(s) in RCA: 1] [Impact Index Per Article: 0.3] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [Track Full Text] [Subscribe] [Scholar Register] [Received: 05/29/2020] [Accepted: 06/11/2021] [Indexed: 05/21/2023]
Abstract
Over the past decade, financial inclusion has been a trending topic and key priority in developing countries seeking to build a resilient financial sector and pursuing economic growth. Most of the recently launched financial inclusion initiatives in Egypt, especially those aligned with the 2030 sustainability strategy, have targeted marginalized and excluded individuals. Only a few have addressed the financial inclusion of small- and medium-sized enterprises (SMEs). Accordingly, this paper aims to identify the main pillars of financial inclusion for SMEs. In keeping up with the mainstream literature, it introduces a number of financial inclusion determinants designed to attract SMEs. They include supply-side determinants such as access to financial services and marketing awareness campaigns, which act as tools to segment financial services and market their benefits to SMEs, and demand-side determinants, which involve the use of financial services. Finally, there is an assessment of the macroeconomic risks to investors and SMEs. The researchers’ methodology was based on first deriving a novel dataset from responses to a questionnaire addressing bankers who manage SME portfolios, second analyzing the dataset through descriptive and inferential statistics and third undertaking a twofold econometric estimation. The econometric estimations started with principal component analysis (PCA) and proceeded to a logistic regression to determine the significant variables pertinent to increasing the financial inclusion of SMEs. The PCA suggested three main pillars determining financial inclusion. They are integrated marketing tools, which increase SMEs’ awareness of and access to the most sophisticated banking services, usage of banking services, and assessment of the macroeconomic risks that would prevent SMEs from gaining access to financial services. As well, the interaction term between the variables derived from the three pillars accounts for a variability of 86.6% in the level of financial inclusion of Egypt’s SMEs.
Collapse
Affiliation(s)
- Mohamed Samy ElDeeb
- Faculty of Management Sciences, October University for Modern Sciences and Arts, 4/14 Zahraa Elmaadi, PO Box 11742, Cairo, Egypt
| | - Yasser Tawfik Halim
- Faculty of Management Sciences, October University for Modern Sciences and Arts, 99 A Road 9 Maadi, PO Box 11728, Cairo, Cairo, Egypt
| | - Esmat Mostafa Kamel
- Faculty of Management Sciences, 6th of October, October University for Modern Sciences and Arts, Cairo, Egypt
| |
Collapse
|
8
|
Corredera-Catalán F, di Pietro F, Trujillo-Ponce A. Post-COVID-19 SME financing constraints and the credit guarantee scheme solution in Spain. J Bank Regul 2021; 22:250-260. [PMCID: PMC7970804 DOI: 10.1057/s41261-021-00143-7] [Citation(s) in RCA: 6] [Impact Index Per Article: 2.0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [Grants] [Track Full Text] [Subscribe] [Scholar Register] [Accepted: 02/16/2021] [Indexed: 06/15/2023]
Abstract
Countries around the world are working hard to fight against the economic crisis caused by the coronavirus pandemic, with a special emphasis on small- and medium-sized enterprises (SMEs) due to their vulnerability and importance in the business ecosystem. This paper analyzes the Spanish guarantee model and the measures taken by regional governments in conjunction with the main mutual guarantee societies (MGSs) to mitigate the economic problems associated with the COVID-19 pandemic. We show that public administrations may use guarantee schemes as instruments to improve SME access to financing while limiting the burden on the public budget.
Collapse
Affiliation(s)
| | - Filippo di Pietro
- Department of Financial Economics and Operations Management, Universidad de Sevilla, 41018 Seville, Spain
| | - Antonio Trujillo-Ponce
- Department of Financial Economics and Accounting, Universidad Pablo de Olavide, 41013 Seville, Spain
| |
Collapse
|
9
|
Anwar M, Clauß T. Personality traits and bricolage as drivers of sustainable social responsibility in family SMEs: A COVID‐19 perspective. Business and Society Review 2021; 126:37-68. [PMCID: PMC8014499 DOI: 10.1111/basr.12222] [Citation(s) in RCA: 5] [Impact Index Per Article: 1.7] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [Track Full Text] [Subscribe] [Scholar Register] [Received: 08/11/2020] [Revised: 10/17/2020] [Accepted: 10/30/2020] [Indexed: 09/02/2023]
Abstract
Motivated by the social and environmental challenges resulting from the COVID‐19 pandemic, this research examines the influence of the “big five” personality traits; extroversion, agreeableness, openness, conscientiousness, and neuroticism on sustainable social responsibility with a mediating role of bricolage. We collected empirical evidence from 245 family‐owned SMEs. The results indicate that the personality traits do not directly influence sustainable social responsibility, although the traits (except extroversion) influence bricolage. Moreover, we found that open, conscious, and agreeable personalities indirectly contribute to sustainable social responsibility, with bricolage as a mediator. Our findings encourage enterprises to focus on those personality traits during crises (especially COVID‐19) that empower people to effectively manage existing resources (e.g., bricolage) and protect their stakeholders. Family‐owned SMEs need to assign resource utilization tasks to family members having personalities of openness, conscientiousness, and neuroticism because these kinds of people have high capacities for bricolage.
Collapse
Affiliation(s)
- Muhammad Anwar
- Witten Institute for Family BusinessUniversity of Witten/HerdeckeWittenGermany
| | - Thomas Clauß
- Witten Institute for Family BusinessUniversity of Witten/HerdeckeWittenGermany
| |
Collapse
|
10
|
Elena Razumovskaia, Larisa Yuzvovich, Elena Kniazeva, Mikhail Klimenko, Valeriy Shelyakin. The Effectiveness of Russian Government Policy to Support SMEs in the COVID-19 Pandemic. Journal of Open Innovation: Technology, Market, and Complexity 2020; 6. [ DOI: 10.3390/joitmc6040160] [Citation(s) in RCA: 22] [Impact Index Per Article: 5.5] [Reference Citation Analysis] [What about the content of this article? (0)] [Abstract] [Key Words] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 04/17/2023]
Abstract
This study was aimed at developing a cognitive—econometric model for assessing the effectiveness of the current governmental policies to support enterprises in Russia in the context of pandemic propagation. Using the Granger test and correlation analysis, we formed a system of key indicators that characterizes the economic development of SMEs (small and medium-sized enterprises) in Russia. Based on the revealed causal relationships and correlation coefficients, a model describing the impact of public policy support instruments on SME economic development was built using cognitive modeling. By means of the additive convolution method, the correlation coefficient between the Russia Small Business Index (RSBI) and the COVID-19 prevalence rate was used to predict the 2020 year-end RSBI value. Regarding the RSBI index forecast, the effectiveness of instruments of the state support for SMEs was evaluated. It was determined how much these indicators of the anti-crisis package of measures should change to increase SMEs’ business activities. The developed cognitive model can be utilized by private and governmental institutions to continuously monitor the effectiveness of public policies that support SMEs. It can also be used as a preventive indicator to evaluate the impact of the anti-crisis measures during pandemics and in the case of other exogenous risks threatening SMEs. The originality of the research results was determined by the econometric methods applied to empirically assess the effectiveness and degree of impact of governmental measures on the operation of SMEs under conditions of uncertainty.
Collapse
|
11
|
Kottika E, Özsomer A, Rydén P, Theodorakis IG, Kaminakis K, Kottikas KG, Stathakopoulos V. We survived this! What managers could learn from SMEs who successfully navigated the Greek economic crisis. Industrial Marketing Management 2020; 88:352-365. [PMCID: PMC7286645 DOI: 10.1016/j.indmarman.2020.05.021] [Citation(s) in RCA: 9] [Impact Index Per Article: 2.3] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [Track Full Text] [Subscribe] [Scholar Register] [Received: 05/01/2020] [Revised: 05/19/2020] [Accepted: 05/21/2020] [Indexed: 05/22/2023]
Abstract
Small and medium size enterprises in both business to business and consumer markets are particularly vulnerable to economic downturns. Concentrating on the Greek economic crisis, one of the toughest and most prolonged on a global scale, the present research sheds light on both anthropocentric and business-centric factors that helped SMEs survive, therefore, providing a valuable survival manual. Per findings of two studies performed under the given economically intense conditions, it is evidenced that the right answer to survival rests upon: (a) the entrepreneurs' personality traits and skills that affect the market and entrepreneurial orientations of SMEs, (b) the adoption of such orientations that keep impacting the firms' performance, and finally (c) the implementation of strategy relevant to reaching higher quality standards for products and services, combined with tactics relevant to downsizing, marketing actions, extroversion, and financial management. Entrepreneurs' traits influence SMEs' EO and MO, which then impact performance. The main strategy of SMEs that survived was the one of improving product quality. In crisis, survival tactics include: downsize, marketing actions, extroversion, financial management. The study applied the novel and robust analytical approach of the Bayesian SEM.
Collapse
Affiliation(s)
- Efthymia Kottika
- Assistant Professor, University of Economics, Prague, Winston Churchill Sq. 4, 130 67 Prague 3, Czech Republic
| | - Ayşegül Özsomer
- Professor of Marketing, Koç University, Rumelifeneri Yolu Sarıyer, 34450 Istanbul, Turkey
| | - Pernille Rydén
- Associate Professor, Technical University of Denmark, Lautrupvang 15, 2750 Ballerup, Denmark
- Corresponding author.
| | - Ioannis G. Theodorakis
- Assistant Professor, INSEEC Grande École INSEEC U., Paris, 27 Avenue Claude Vellefaux, 75010 Paris, France
| | - Kostas Kaminakis
- Academic Coordinator, National and Kapodistrian University of Athens, 5 Stadiou, 10562 Athens, Greece
| | - Konstantinos G. Kottikas
- PhD Candidate, Athens University of Economics and Business, 12 Derigni Street, 104 34 Athens, Greece
| | - Vlasis Stathakopoulos
- Professor of Marketing, Athens University of Economics and Business, 12 Derigni Street, 104 34 Athens, Greece
| |
Collapse
|
12
|
Cocker F, Martin A, Scott J, Venn A, Sanderson K. Psychological distress, related work attendance, and productivity loss in small-to-medium enterprise owner/managers. Int J Environ Res Public Health 2013; 10:5062-82. [PMID: 24132134 PMCID: PMC3823320 DOI: 10.3390/ijerph10105062] [Citation(s) in RCA: 52] [Impact Index Per Article: 4.7] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Download PDF] [Figures] [Subscribe] [Scholar Register] [Received: 07/22/2013] [Revised: 09/04/2013] [Accepted: 10/01/2013] [Indexed: 12/02/2022]
Abstract
Owner/managers of small-to-medium enterprises (SMEs) are an under-researched population in terms of psychological distress and the associated health and economic consequences. Using baseline data from the evaluation of the Business in Mind program, a mental health promotion intervention amongst SME owner/managers, this study investigated: (i) prevalence of high/very high psychological distress, past-month sickness absenteeism and presenteeism days in SME owner/managers; (ii) associated, self-reported lost productivity; and (iii) associations between work, non-work and business-specific factors and work attendance behaviours. In our sample of 217 SME owner/managers 36.8% reported high/very high psychological distress. Of this group 38.7% reported past-month absenteeism, 82.5% reported past-month presenteeism, and those reporting presenteeism were 50% less productive as than usual. Negative binomial regression was used to demonstrate the independent effects of socio-demographic, work-related wellbeing and health-related factors, as well as various individual and business characteristics on continuous measures of absenteeism and presenteeism days. Health-related factors (self-rated health and treatment) were the strongest correlates of higher presenteeism days (p < 0.05). Work-related wellbeing factors (job tension and job satisfaction) were the strongest correlates of higher absenteeism days (p < 0.05). Higher educational attainment, treatment and neuroticism were also correlated with more absenteeism days. SME-specific information about the occurrence of psychological distress, work attendance behaviour, and the variables that influence these decisions, are needed for the development of guidelines for managing psychological distress within this sector.
Collapse
Affiliation(s)
- Fiona Cocker
- Menzies Research Institute Tasmania, University of Tasmania, Private Bag 23, Hobart TAS 7000, Australia; E-Mails: (A.V.); (K.S.)
| | - Angela Martin
- School of Management, University of Tasmania, Locked Bag 1316, Launceston TAS 7250, Australia; E-Mail:
| | - Jenn Scott
- School of Psychology, University of Tasmania, Private Bag 30, Hobart TAS 7001, Australia; E-Mail:
| | - Alison Venn
- Menzies Research Institute Tasmania, University of Tasmania, Private Bag 23, Hobart TAS 7000, Australia; E-Mails: (A.V.); (K.S.)
| | - Kristy Sanderson
- Menzies Research Institute Tasmania, University of Tasmania, Private Bag 23, Hobart TAS 7000, Australia; E-Mails: (A.V.); (K.S.)
| |
Collapse
|