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  • articleFree Access

    The Role of Technology in Predicting Business Analytics Adoption in SMEs

    Research shows that data-driven decision making using business analytics can create competitive advantages for organisations. However, this can only happen if the organisations successfully accept and use the business analytics effectively. Many studies reported business analytics implementation in large organisations, and fewer studies focus on Small and Medium Enterprises (SMEs). Furthermore, SMEs are scoring lower scores in technology absorption. Therefore, it is essential to examine the business analytics adoption among SMEs. Previous research has reported that relative advantage and compatibility were the most highlighted factors under the technology dimension in adopting innovative technologies. However, the literature reported inconsistent findings on the significance of relative advantage and compatibility in adopting various technologies. Therefore, this research conducted a quantitative survey-based study to examine the significance of relative advantage and compatibility in predicting business analytics adoption among SMEs. The sample was selected using systematic random sampling from a Malaysian national entrepreneurs database. There were 241 SMEs that responded to the online survey sent by email. The analysis using the partial least squares structural equation modelling (PLS-SEM) informed that relative advantage was significantly related to business analytics adoption; however, compatibility did not influence the business analytics adoption by SMEs in Malaysia. This finding shows that the better the relative advantage of business analytics SMEs know, the higher the possibility of adoption. In addition, less compatibility of the SMEs in Malaysia hindered the business analytics adoption. This study contributes to the theoretical aspect, which statistically informed the finding out of inconsistent gaps in technology adoption. Furthermore, this study also contributes to the practical aspect, in which managers, owners, vendors, and policy-makers can use these findings to spur and facilitate business analytics adoption among SMEs in developing countries.

  • articleOpen Access

    DO DYNAMIC CAPABILITIES FACILITATE BUSINESS MODEL INNOVATION IN SMALL AND MEDIUM-SIZED CHINESE FAMILY COMPANIES?

    This study investigates whether small- and medium-sized enterprises (SMEs) under family influence (FI) can achieve business model innovation (BMI) through dynamic capabilities (DCs) as promoted by prior research. Overall, 259 small and medium-sized family firms in Southeastern China were examined and analysed using the partial least squares structural equation modelling (PLS-SEM) method. The findings showed a direct negative link between FI-DCs (sensing, seizing, and transforming capabilities), sensing capabilities—value capture, transforming capabilities—value proposition/value creation, and a positive link between seizing capabilities—value creation. Additionally, the negative moderation effect of environment dynamism was found between sensing capabilities—value capture, seizing capabilities—value creation, and transforming capabilities—value proposition. This research provides various new insights for practitioners and researchers in small and medium-sized family firms to achieve BMI through DCs. It develops an empirical, multi-dimensional hypothetical model from a micro perspective that includes the moderating role of the influencing relationship.

  • articleFree Access

    GREEN INNOVATION LAUNCH VERSUS EXPANSION: DO THE PUBLIC POLICY SUPPORTS NEEDED VARY BY FIRM SIZE?

    Green innovation is garnering increasing attention in business, academic and policy circles as a route to sustainable growth and development. Governments have introduced a range of policies to encourage and enable firms to introduce and expand their offerings of environmental friendly goods and services. While environmental regulation has been shown to be an important driver of green innovation, little is known about whether other types of polices, such as financial incentives, technical and marketing supports, and assistance with identifying potential markets, are important to firms of all sizes at different stages of the green innovation process (i.e., at product/service launch vs. product/service expansion). Using data from the European Commission, the results show that policy support to identify markets or customers is deemed important by firms of all sizes to introduce green goods and services. However, this support is no longer perceived as important to expand firms’ green portfolio. This suggests firms capitalise by using their existing markets or customers. The results do not lend support to the view of small firms as the most resource constrained and hence needing the greatest policy supports. Overall, the results point to the need for a variety of policy supports targeted at (1) firms of different sizes and (2) by stage of the green innovation process.

  • articleOpen Access

    THE STRATEGIC ROLE OF PRIVATE EQUITY IN THE INTERNATIONALIZATION OF ITALIAN SMEs

    The internationalization of the portfolio company is a key strategy used by private equity (PE) investors to create value and produce returns. In recent years, the focus on the strategies for value-creation through operational improvement has become essential to achieve the exponential growth required to the portfolio company, given the low multiples and the market risk of leverage. In this paper, we define the key types of contribution that a PE investor can provide in order to support the internationalization process and their effects on the portfolio company’s performance. The research is based on a survey administered to 47 PE fund managers, which covers 156 deals involving Italian companies. The results offer insight into the contribution to the corporate governance, strategy and management that PE provides in addition to the monetary support. The findings show that the non-financial support given to the portfolio companies has a positive impact on the performance and that the most impactful contribution the PE can give is the support to the relational network when the company strategy involves a foreign direct investment.

  • articleFree Access

    Analyzing Industry 4.0 Implementation Barriers in Indian SMEs

    Production in small and medium enterprises (SMEs) makes a substantial contribution to the Gross Domestic Product directly and indirectly in developing economies including India. In the present time, applying Industry 4.0 to the SMEs will build a smart manufacturing system that will prove to be economically feasible as well as socially sustainable. The purpose of this study is to identify and prioritize major barriers of implementing Industry 4.0 in Indian SMEs. A questionnaire with 12 barriers which were identified based on the literature survey and expert discussion was made to be filled by industry experts of production, information technology, business and members of the top management in SMEs. Further, Multi-Criteria Decision Making (MCDM) methods like TOPSIS, VIKOR and PROMETHEE are used to find the rank for each barrier. The study reveals that the major implementation barriers of Industry4.0 in Indian SMEs are fear of unemployment, lack of IT training, poor IT infrastructure, etc. The ranking for each barrier will not only help to assess risks in manufacturing, supply chain or business initiative, but also to help the managers in devising risk mitigation plans. This study may be used by firms working under the manufacturing sector.

  • chapterFree Access

    Chapter 1: Comparative Study on Regulatory Frameworks for Promotion of Startup Businesses and SMEs in Japan, Republic of Korea, Malaysia, and Thailand

    The vital factors which can facilitate the development of Startups and Small and Medium-Sized Enterprises (SMEs) in markets are the appropriate regulatory and policy frameworks. However, there is a difference in the frameworks which may contribute to different levels of development of startups and SMEs in different countries. This chapter thus focuses on the comparative study of the frameworks of selected countries to display their possible challenges in those countries. The chapter shows that governments in Japan, Republic of Korea, Malaysia, and Thailand adopt different regulatory frameworks which help stimulate the creation of startups and SMEs. It provides comparisons of the frameworks in those four countries, and also presents that there are challenges from these regulatory frameworks for startups and SMEs developing there.