A guide for supply chain integration in SMEs

Supply chain integration (SCI) is a competitive business approach for enterprises that has not been implemented as widely as expected in small and medium-sized enterprises (SMEs). One of the factors explaining this low level of application is the lack of methodologies to develop SCI that fit the characteristics of this type of enterprise. In this article, we present a methodology that enables SMEs to achieve correct SCI in a manner that is simple, straightforward and oriented towards their particular characteristics. Thus, SMEs will be able to align and coordinate the aims, resources, decisions, methods, business processes and employees involved in the supply chain. The methodology addresses the problem of SMEs SCI and it was produced by applying the case study research method to 30 industrial SMEs. The methodology is organised in phases and the activities to be performed, the techniques and supporting tools to be used, as well as the expected outcomes are all described for each phase. With this methodology, it becomes possible to overcome the main barriers that prevent SMEs from achieving a correct integration of their supply chains. In addition to the methodology, this article also outlines the significant benefits observed in the 30 enterprises as a result of its application.     

中小企业违约风险系统性和异质性测度——基于违约风险成分分析法的研究

与大中型企业相比,经济环境恶化或突发事件冲击使中小企业资产价值更易大幅下降,不仅单个企业违约风险急增,企业间的违约相关性也明显变大。然而不同类型中小企业违约风险变化特征仍有较大差异。为了更好测度中小企业违约风险、分析其相关性和差异性,本文在资产价值满足跳-扩散过程假定下,将或有权益分析法、组合违约风险分析与系统波动风险测度β相结合,把违约风险分解为系统成分和异质成分。系统成分越大,表明企业违约风险越易受外部经济环境和相关违约风险影响。异质成分越大则表明企业违约风险与自身异质性特征更为相关。实证研究表明,违约风险成分分析能较好解释中小企业违约风险的相关性和差异性,有助于违约风险分类管理。     

Data-driven operations management: organisational implications of the digital transformation in industrial practice

Abstract

The ongoing digital transformation on industry has so far mostly been studied from the perspective of cyber-physical systems solutions as drivers of change. In this paper, we turn the focus to the changes in data management resulting from the introduction of new digital technologies in industry. So far, data processing activities in operations management have usually been organised according to the existing business structures inside and in-between companies. With increasing importance of Big Data in the context of the digital transformation, the opposite will be the case: business structures will evolve based on the potential to develop value streams offered on the basis of new data processing solutions. Based on a review of the extant literature, we identify the general different fields of action for operations management related to data processing. In particular, we explore the impact of Big Data on industrial operations and its organisational implications.     

Knowledge retention in ERP implementations: the context of UK SMEs

Abstract

Knowledge retention (k-retention) is vital for various enterprise resource planning (ERP) implementations in small and medium-sized enterprises (SMEs), though it is a highly demanding and challenging task. The aim of this paper is to investigate different types of approaches to k-retention and factors influencing k-retention in SMEs. Our study adopts a grounded theory approach with cases based on 12 ERP implementations in UK SMEs. We analyze our data using thematic analysis. The findings reveal specific elements that support the k-retention of ERP package knowledge and business process knowledge. These elements are: k-retention tools, documentation, human capital and the understanding of k-retention challenges. In addition to insights from these aspects, our study reveals two additional factors (project management and organizational culture) that influence ERP package k-retention and business process k-retention. Based on these findings, we develop an ERP k-retention (EKR) framework that can be utilized by SMEs which are considering implementing ERP systems, to facilitate knowledge retention during implementation.     

Understanding platform business models: A mixed methods study of marketplaces

Recent technological advances have enabled the emergence of novel business models based on digital platforms. Marketplace like Airbnb or Uber offer such digital platforms to connect previously unmatched demand-side and supply-side participants through innovative forms of value creation, delivery and capture. While countless firms claim to offer the next ‘Airbnb for X’ or ‘Uber for Y’, we lack knowledge about the defining business model characteristics of these marketplaces. To close the gap, this paper provides a conceptually and empirically grounded taxonomy of their business models. Applying a mixed methods approach, it first develops an integrative framework of marketplace business models. Guided by the framework, the research systematically analyzes 100 randomly selected marketplaces with content analysis and binary coding. The gathered data is analyzed with cluster analysis techniques to develop a taxonomy for marketplace business models. The clustering process reveals six clearly distinguishable types of marketplace business models and thus shows that there is no one-size-fits-all approach to creating, delivering, and capturing value with marketplaces and platforms in general. We characterize these distinctive types on basis of the qualitative and quantitative findings. Among others, we find that two of these types are highly aligned with business model characteristics associated with the so-called sharing economy. The findings are discussed against platform, marketplace, and sharing economy literature to contribute to a higher integration of different literature streams that are concerned with similar organizational types and phenomena.     

Cyber risk assessment in small and medium-sized enterprises: A multilevel decision-making approach for small e-tailors

The role played by information and communication technologies in today's businesses cannot be underestimated. While such technological advancements provide numerous advantages and opportunities, they are known to thread organizations with new challenges such as cyberattacks. This is particularly important for small and medium-sized enterprises (SMEs) that are deemed to be the least mature and highly vulnerable to cybersecurity risks. Thus, this research is set to assess the cyber risks in online retailing SMEs (e-tailing SMEs). Therefore, this article employs a sample of 124 small e-tailers in the United Kingdom and takes advantage of a multi-criteria decision analysis (MCDA) method. Indeed, we identified a total number of 28 identified cyber-oriented risks in five exhaustive themes of “security,” “dependency,” “employee,” “strategic,” and “legal” risks. Subsequently, an integrated approach using step-wise weight assessment ratio analysis (SWARA) and best–worst method (BWM) has been employed to develop a pathway of risk assessment. As such, the current study outlines a novel approach toward cybersecurity risk management for e-tailing SMEs and discusses its effectiveness and contributions to the cyber risk management literature.     

How to reconsider risk management in SMEs? An Advanced,Reasoned and Organised Literature Review

The purpose of this paper is two-fold: to reconsider the fundamental role of risk management (RM) in small and medium enterprises (SMEs) by identifying and critically analysing the most important international works; and to define opportunities for further studies by suggesting a different approach to study the topic. This research is based on a new hybrid method developed by the authors, called Advanced, Reasoned and Organised (ARO) literature review, which improves the quality of literature reviews by integrating the systematic review for quantitative papers, the meta-synthesis for qualitative research and the critical interpretative analysis. Forty-eight articles were included in the literature review. Bibliometric and cluster analyses were carried out. Two hypotheses were applied as filters in the interpretative synthesis of the content and guided the analysis to answer two research questions. The findings underline that RM in SMEs is still a ‘spot’ subject as they put little effort into the risk identification, assessment and monitoring. The lack of procedures and strategies is due to the lack of risk mindfulness and knowledge, and it is related to the managers’ and owners’ risk attitudes. It is fundamental to understand why risk procedures are not implemented and to find a way to raise awareness of the potential benefits of risk and control measures. The topic is current, and the multidisciplinary perspective and mixed-method approach enhance both theoretical and practical contributions for academics and SME owners.     

ICT-based solution approach for collaborative delivery of customised products

Growing interest on business collaboration motivates today’s industries, especially small and medium enterprises (SMEs) to establish and manage dynamic and non-hierarchical business networks to respond to market opportunities with added business benefits. This business environment requires concurrent work and real-time information sharing between key business partners in order to design and develop customised products. The use of traditional communication media such as e-mail, phone and fax is not satisfactory to get real-time information and is time-consuming and most often ineffective. In such environments, an Information and Communication Technology (ICT)/Web-based technology supports real-time information sharing among networked SMEs for the collaborative design and manufacturing of customised products. This study proposes an innovative ICT platform supporting SMEs collaboration, through Web and the Internet of Things technologies, which follows the Net-Challenge conceptual approach and methodological guidelines for SMEs to form and operate virtual organisations for the collaborative development and delivery of customised products. The ICT Platform was assessed in three different industry domains, namely the textile and apparel, the footwear and the machine tools, respectively. This ICT solution promotes collaboration, with substantial advantages for SMEs including the reduction of costs and delivery time and improvement of the innovation potential.     

A study of the use of business improvement initiatives: the association with company size and level of national development

This paper investigates the awareness, use and effectiveness of improvement initiatives in organisations of different sizes and in different countries. In particular, comparisons are made between large firms and small and medium enterprises (SMEs), between organisations in the developing and developed worlds and between organisations in China and India and the rest of the developing world. A questionnaire survey of 453 organisations across 44 countries was conducted with the findings indicating that there are significant differences in comparability of tools. For some tools there are no significant differences between developed and developing countries as well as between large organisations and small organisations. For other tools, there are significant differences with organisations in developing countries, in general, more aware and more likely to use business improvement initiatives when compared to organisations in developed countries. Similarly, organisations in China and India have a higher awareness of and are more likely to adopt improvement initiatives when compared to the rest of the developing world. Finally, larger firms are more aware and more likely to use improvement initiatives when compared to SMEs.     

New Media and Strategy Research: Towards a Relational Agency Approach

A rapidly growing body of literature focuses on the relationship between new media and strategy, and offers recommendations regarding appropriate strategic actions in relation to new media. This paper systematically reviews 130 articles with a focus on the diagnoses they provide and the directions they offer strategists regarding the role of new media in strategy. The analysis identifies four main ways of conceptualizing new media in the literature: as forces in an increasingly turbulent strategic environment; as changing the role of strategists; as tools for strategically engaging stakeholders; and as both increasing and decreasing the control necessary for strategy making. These conceptualizations are based on often‐implicit assumptions about ‘agency’ in strategy: new media are seen either as forces influencing strategy or as tools in the hands of humans, who are portrayed as the agents of strategy. In both cases, new media are black‐boxed, such that their specific properties and ways of becoming embedded in particular contexts are rarely examined. After discussing these assumptions and a limited number of studies that challenge them, the paper develops an approach to strategy and new media based on a relational understanding of agency, an attention to technological affordances and a methodological sensitivity to tracing strategy‐making assemblages of human and non‐human elements. We argue that future research based on this approach will advance our knowledge of strategy making in ways that do not take new media for granted and ways that are attentive to different kinds of agency.     

PSS business model conceptualization and application*

The discussion about business models has gained considerable attention in the last decade. Business model frameworks have been developed in the literature as management methods helping companies to comprehend and analyse their current business logic and guide the deployment of new strategies. In response to calls for a deeper understanding of the application of a business model approach to product-service systems (PSS), this study develops a two-level hierarchical framework that (i) includes a set of components with pertinent, second-order variables to take into account when undergoing the shift from products to solutions; (ii) supports industrial companies, especially SMEs, in designing their future business model and in consistently planning the actions needed to implement it. The framework was applied and refined within real-life settings. The application to KINE – a robot solutions supplier – shows how key challenges faced by servitization firms may be thoroughly addressed through the adoption of a business model perspective.     

How to compare performances of firms operating in different sectors?

This paper seeks to address the question ‘How to measure different SMEs’ performances comparatively?’ An initial review reveals that the literature does not provide objective and explicit debate on the subject. Consequently, an approach is developed, informed by the literature, which is used to compare the performances of 37 SMEs. The consistency and reliability of the approach is tested, resulting in a ranking of the 37 firms according to their performances. Using cluster and factor analysis the paper demonstrates that leading indicators are somewhat redundant, and that lagging indicators have greater significance for the purpose of comparative measurement of different SMEs performances. Whilst the approach adopted here withstood internal and external validity tests and can be seen as a robust way of comparing SMEs performances, these results may be limited to this study.     

Benefits of adopting lean production on green performance of SMEs: a case study

Abstract

Small- and medium-sized enterprises (SMEs) are widely recommended to strive, not only for their performance in operational side, but they need to integrate the environmental dimension. To do that, the literature widely indicates a positive impact of lean practices on green performance. However, very few studies have been carried out in SMEs context. In this view, this paper aims at providing through a practical case study of lean implementation in a real-life small manufacturing company, the information to confirm this synergy between lean and green performance. To achieve this aim, a proposed framework of lean and green integration has been implemented in a SME producing different types of pumps. The results achieved shows that there is a strong correlation between operational metrics improvement and green metrics improvement. Moreover, the benefits of lean practices such as 5S, Kanban, SMED, AM, cellular manufacturing and quality control on green performance are widely demonstrated. Future work could study other processes and explore other case-specific supporting tools and techniques.     

Of those who plan: A meta-analysis of the relationship between human capital and business planning

Business planning is a popular managerial practice, especially in the SME context. Yet, literature presents diverging perspectives regarding business planning and the role it fulfills for the individuals leading these organizations. To advance research, we focus on evidence regarding factors that determine whether and how individuals engage in business planning. Drawing on human capital concepts and the theory of planned behavior, we scrutinize how education and different prominent work experience types influence business planning behaviors. We use meta-analysis to aggregate data on 8095 observations leading SMEs from 31 independent data sets. We find critical differences in planning behaviors relating to human capital types, as well as to whether individuals engage in substantive planning processes or the specific preparation of a formal business plan. Implications of our findings for research on business planning are discussed.     

Building resilience in SMEs of perishable product supply chains: enablers,barriers and risks

SMEs of perishable product supply chains (PPSCs) are critical to sustaining fresh food supply and global economy. However, they face immense challenges given the nature of their operations. Surprisingly, the literature lacks research on the distinct intra- and inter-organisational factors intertwined to build resilience in these firms. From the semi-structured interviews conducted with 30 managers of a PPSC in Australia, we developed a holistic framework to build resilience in SMEs of PPSCs. The findings offer novel insights into research and practice including an optimal portfolio of enablers, barriers and risks towards building resilience. The analysis reveals that most risks stem from the factors that are internal to the supply chain, thus necessitating a strong supply chain collaboration. The level of resilience, barriers and risks varies considerably within SMEs depending on their size (small vs. medium) and location of nodes in the supply chain. Interestingly, the SMEs with consortium support demonstrate better resilience and performance.     

Knowledge management in product innovation: an interpretative review

Knowledge management (KM) is relatively new, but still a very hot topic in management research and practice. Leading companies are reshaping their organizations in order to increase their ability in managing knowledge sharing and transfer within and across their organizational boundaries. KM is today considered by many scholars the next arena for global competition. Product innovation (PI), in particular, is one of the most promising areas, where KM is today applied and studied. Management literature has underlined how knowledge becomes the only source of sustainable competitive advantage in turbulent contexts, and the cognitive perspective represents the most adequate approach to analysing and understanding PI as a continuous learning process rather than as a sporadic event. Since the early 1990s, many contributions emerged from different fields, but after nearly one decade, KM is not yet a unitary stream of literature but reflects very diverse roots. In this paper, the different streams and approaches emerging in literature on KM in PI are reviewed and described, aiming at providing researchers with an interpretative tool and some directions for further research.     

The implementation of digital technologies for operations management: a case study for manufacturing apps

Abstract

Manufacturing applications address business to business (B2B) with highly customised applications developed for specific requirements, offering highly specialised solution-oriented and service-based software components, systems, and digital tools that aim at a fast and accurate decision-making support system. The purpose of this paper is to describe the implementation of digital technologies for operations management using manufacturing or engineering apps (eApps), for product design and manufacturing processes. In particular, starting from the specific needs of two companies from mature European industries as automotive and food, this work depicts how this kind of solutions can support companies and improve their operations. In particular, related benefits and challenges faced for the full implementation of the developed tools are highlighted. Moreover a business model to exploit the manufacturing apps is also proposed. The business model proposed for the exploitation of the eApps supports the commercialisation of all the revenue streams offered by this rapidly growing sector taking into account the specific needs of the concerned stakeholders through a diversified value proposition.     

Performance measurement systems in SMEs: A review for a research agenda

In recent years, literature has identified the increasing complexity of small and medium-sized enterprises (SMEs) and highlighted their sensitivity to differences in managerial culture and management systems. Research has shown that performance measurement systems (PMSs) could play an important role in supporting managerial development in these companies. In this paper, the literature on performance measurement in manufacturing SMEs is reviewed and the diffusion, characteristics and determinants of performance measurement in SMEs are analysed. Shortcomings in the performance measurement systems are highlighted and the many factors that seem to constrain PMSs in manufacturing SMEs are defined, e.g. lack of financial and human resources, wrong perception of the benefits of PMS implementation, short-term strategic planning. Moreover, using dimensions defined according to the information found in the literature, two PMS models specifically developed for SMEs are compared with generic PMS models. The comparison points out an evolution in PMS models over time; in particular, the models developed in the last 20 years are more horizontal, process-oriented and focus on stakeholder needs. However, it is not clear whether these changes are due to the evolution of the generic models or an attempt to introduce models suited to the needs of SMEs. To clarify this matter and better to understand PMSs in SMEs, further theoretical and empirical studies are necessary. The main issues still requiring investigation are listed in a research agenda at the end of the paper.     

Networks in policy,management and governance: a comparative literature review to stimulate future research avenues

Policy networks, network management and network governance have received particular attention in the public sector literature over the last 20 years. Networks have been studied from different perspectives resulting in the creation of various concepts and definitions. However, the proliferation of definitions, metrics and language is responsible for a confusing picture, where policy networks, network management and network governance are used both as synonyms and to define different concepts. We review the existing literature with two aims: firstly, to compare the three streams of literature, by highlighting their similarities and differences; secondly, to propose a guide for network scholars that identifies the importance of each stream in analyzing specific issues.     

Where business networks and institutions meet: Internationalization decision-making under uncertainty

Both business networks and institutional forces are relevant to firm internationalization but they have seldom been studied together. We investigate under what circumstances firms are more likely to adopt non-predictive strategy in light of the influence of the business networks, the institutional forces, and the home market background affecting their internationalization. Based on survey data from 758 small and medium-sized enterprises (SMEs) from Brazil, China, Poland, Italy, and Sweden, our results support the effects of formal institutional distance and cultural differences on the use of non-predictive strategies by SMEs in internationalization decisions, as well as the contingency effects of business network stability and of having an emerging market background. We integrate research on the liability of foreignness and the liability of outsidership and find that business network stability is critical. It does not moderate the relation between cultural difference and NPS adoption but attenuates the negative relation between institutional distance and NPS adoption, indicating that the liabilities of foreignness and outsidership play different roles in internationalization.