COVID-19 and Ludhiana’s woolen knitwear industry: way forward

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Swati Mehta ◽  
Manpreet Kaur
Keyword(s):  
Small And Medium Enterprises ◽  
Virus Disease ◽  
World Market ◽  
Feedback Mechanism ◽  
Content Type ◽  
Road Map ◽  
Innovation Approach ◽  
Medium Enterprises ◽  
World Economic Order ◽  
The Impact

Purpose The purpose of this paper is to examine the challenges faced by the Ludhiana’s woolen knitwear industry that got accentuated with the outbreak of Corona Virus Disease 2019 (COVID-19). The paper discusses the road map for building capabilities within the industry from the perspective of “system of innovation” approach that would help the industry to comply with the recent call for “AatmaNirbhar Bharat Abhiyan.” Design Methodology Approach The woolen knitwear industry from Ludhiana district of North Indian state, Punjab, was taken as a case to examine the impact of COVID-19. Data was collected online through self-structured questionnaire along with telephonic interviews. Stage I was the period of “total lock-down” and Stage II was conducted after the announcement of “stimulus package” and during the unlocking period. Some local industry associations and labor unions were also interviewed to understand the wider perspectives of different stakeholders. Descriptive statistic was applied to analyze the results of the survey. Findings It is estimated that the industry would lose about INR 2,000 crores approximately US$282.1m with the monetary loss of man-days nearing INR 157 crores approximately US$22.1m for the total lockdown period of 68 days. This amount is feared to increase with the lackluster re-opening of the industry in the unlocking period. The study reveals that there were some concerns, such as infrastructural bottlenecks, obsolete internal and international connectivity and institutional rigidity with cumbersome rules and regulations that get heightened with the outbreak of COVID-19. The entrepreneurs and workers are skeptic regarding the nature of demand revival in the changing world economic order. The paper suggests a dynamic policy intervention with inbuilt feedback mechanism along with reviving the organizations to infuse enthusiasm among various actors of industry. Originality/value The study is one of the first few to conduct surveys at two different stages to assess the impact of COVID-19 from the perspective of micro, small and medium enterprises and workers working therein while taking the case of Ludhiana woolen knitwear industry. The findings of this study will aid the industry and policymakers to take essential steps to make the industry more innovative and competitive in the dynamic world market.

Social media as tool for facilitating knowledge creation and innovation in small and medium enterprises

2018 ◽  
Vol 13 (3) ◽  
pp. 329-344 ◽  
Author(s):  
Armando Papa ◽  
Gabriele Santoro ◽  
Lia Tirabeni ◽  
Filippo Monge
Keyword(s):  
Social Media ◽  
Knowledge Creation ◽  
Small And Medium Enterprises ◽  
Theoretical Perspective ◽  
Innovation Process ◽  
Digital Tool ◽  
Content Type ◽  
Media Usage ◽  
Medium Enterprises ◽  
The Impact

Purpose The purpose of this paper is to study the effects of social media usage on four knowledge creation processes, namely socialisation, externalisation, combination and internalisation, and innovation in small and medium enterprises (SMEs). Design/methodology/approach A sample of 96 SMEs has been used to gather data through a standardised questionnaire and test the hypotheses through OLS regression models. Findings The results indicate that social media influence positively three out of four knowledge creation processes and that they help to foster the innovation process. Originality/value From a theoretical perspective, the study contributes to literature considering a specific digital tool and its effect on knowledge creation and innovation. In fact, a few studies have considered the impact of social media usage on other variables, such as ROI and productivity, but never on knowledge creation and innovation through a quantitative study. From a managerial perspective, the research suggests managers to implement and involve social media within business and innovation processes.

Corporate governance and underpricing of small and medium enterprises IPOs in India

2020 ◽  
Vol 20 (3) ◽  
pp. 503-525
Author(s):  
Nischay Arora ◽  
Balwinder Singh
Keyword(s):  
Corporate Governance ◽  
Small And Medium Enterprises ◽  
Curvilinear Relationship ◽  
Board Structure ◽  
Governance Mechanisms ◽  
Content Type ◽  
Explanatory Variables ◽  
Corporate Governance Mechanisms ◽  
Medium Enterprises ◽  
The Impact

Purpose The purpose of the paper is to examine the impact of corporate governance mechanisms, i.e. board structure and ownership structure on the underpricing of small and medium enterprises (SME) IPOs in India. Design/methodology/approach Most of the extant empirical research studies have either pivoted on mainstream IPOs or SMEs IPOs in developed economies, but the present study examines 200 SME IPOs issued during Feb 2012 to April 2017. Multiple regressions have been used to examine the impact of the corporate governance mechanisms on raw return (RR). Furthermore, robustness of the results has been verified through the employment of market-adjusted excess return (MAER) as an additional proxy of underpricing. Findings The results highlight that board size, inverse of board committees, board independence, board age, board directorships positively, and top ten shareholding negatively influence RR. Further, direction of promoter ownership variable indicates curvilinear relationship with underpricing. Other explanatory variables used in model lack statistical validity. Similar results have been obtained when variables were regressed against MAER with related board members being additionally significant in model. Practical implications The findings suggest that Indian investors do take cues from board structure and ownership patterns for making investment decisions in small- and medium-sized firms. Further, the results are also helpful to top management in structuring their boards. Originality/value The present research enriches SME IPOs underpricing literature because the impact of corporate governance mechanisms on unadjusted returns is relatively under explored particularly within the context of small- and medium-sized firms.

An examination of strategies under the financial tsunami

2010 ◽  
Vol 110 (9) ◽  
pp. 1319-1336 ◽  
Author(s):  
G.T.S. Ho ◽  
K.L. Choy ◽  
S.H. Chung ◽  
C.H.Y. Lam
Keyword(s):  
Hong Kong ◽  
Global Economy ◽  
Quantitative Research ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Business Environment ◽  
Content Type ◽  
Corporate Strategies ◽  
Medium Enterprises ◽  
The Impact

PurposeThe purpose of this paper is to identify the factors, such as the different strategies adopted and the size of the company, that have a significant determining impact on the financial performance of companies in extreme circumstances.Design/methodology/approachThe research target of this paper is the small and medium enterprises (SMEs) in Hong Kong. This is quantitative research and it is done on a survey basis, which includes hypothesis setting and statistical analysis. In addition, constructive suggestions are given to companies after analyzing the current situation.FindingsIn total, ten factors from four dimensions are determined as the critical strategies for the company to adopt in an uncertain financial situation. The result shows the influence of different factors on return on investment for the companies with different backgrounds.Practical implicationsThe business environment today is full of turbulence and uncertainties; this, along with the fierce global competition, means that manufacturers are all struggling to survive. The financial tsunami that has swept across the global economy is believed to be the most catastrophic in living memory. Therefore, this research will be especially valuable and useful to companies which wish to achieve excellence in business performance in spite of such a global disaster.Originality/valueManufacturers worldwide have suffered badly from the impact of the financial tsunami. The SMEs in Hong Kong are certainly not an exception. However, under the same adverse conditions, some have been able to maintain their stability or even thrive. The findings suggest some specific corporate strategies which will enable companies to survive and remain competitive.

Impact of service quality on satisfaction and loyalty at manufacturer-distributor dyad

2019 ◽  
Vol 16 (1) ◽  
pp. 91-122 ◽  
Author(s):  
Surjit Kumar Gandhi ◽  
Anish Sachdeva ◽  
Ajay Gupta
Keyword(s):  
Service Quality ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Empirical Studies ◽  
Equation Modeling ◽  
Content Type ◽  
Northern India ◽  
Indian Setting ◽  
Medium Enterprises ◽  
The Impact

PurposeThe purpose of this paper is to investigate the role played by service quality (SQ) in manufacturer–distributor working partnerships in the context of Indian small and medium enterprises (SMEs), and present two models which propose and validate that contributions toward SQ, made by both the manufacturing unit and distribution firm lead to satisfaction which consequently results in business-to-business (B2B) loyalty.Design/methodology/approachThe research design for this study includes a combination of literature review, exploratory interviews with a focus group and a questionnaire survey conducted through interview schedule from 101 information rich and willing respondents working in SMEs of northern India.FindingsThe paper brings out scales foe measuring organizational (internal) and distributor (external) SQ. Further, two models using structural equation modeling are developed. Model-I examines the effect of organizational SQ on distributor SQ. Model-II examines the impact of distributor SQ on satisfaction and loyalty and also tests a set of four propositions related to their working relationship. The models are empirically tested and are found to be fit.Research limitations/implicationsFuture researchers may validate these scales, and empirically test the proposed models in alternate settings. Insights derived from this study may be transferred to other partnerships, which may exist in a manufacturing supply chain including suppliers, employees, retailers and end consumers.Practical implicationsThis study would be of interest to SME practitioners interested in improving SQ with their distributors. The study also finds support for strengthening collaborative relationships with B2B partners to achieve a win-win situation.Originality/valueThere are very few empirical studies that measure SQ w.r.t. distribution function in SMEs and the concept is in nascent stage, especially in Indian setting.

Inadequately educated workforce and financing obstacles: international evidence from SMEs in developing countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Imad Jabbouri ◽  
Omar Farooq
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Small And Medium Enterprises ◽  
Poor Performance ◽  
Capital Requirements ◽  
Informal Credit ◽  
Policy Makers ◽  
Content Type ◽  
Medium Enterprises ◽  
The Impact

PurposeThis paper aims to document the impact of inadequately educated workforce on the extent of financing obstacles experienced by firms.Design/methodology/approachThe authors use the data provided by the World Bank's Enterprise Surveys to test our arguments. The data were collected during the period between 2008 and 2018 in 141 developing countries. A pooled ordered logit regression analysis is performed to arrive at the results.FindingsThe study’s results show that firms with inadequately educated workforce are more likely to experience financing obstacles than other firms. The authors argue that poor performance and lack of technical expertise required to access finance are some of the reasons behind greater financing obstacles experienced by these firms. The study’s results are robust across different geographic regions. The authors also show that firms with inadequately educated workforce are more likely to seek informal credit for financing their short-term (working capital) and long-term (capital expenditures) capital requirements.Practical implicationsUnderstanding the factors that affect the financing constraints faced by small and medium enterprises (SMEs) should be valuable to managers of SMEs and policy-makers. By removing these constraints, managers can improve their access to financing, and policy-makers can facilitate higher economic growth and better economic conditions.Originality/valuePrior studies have largely been silent on the impact of inadequately educated workforce on the access to finance. This paper draws attention to this issue within the context of SMEs in an international setting. SMEs are the drivers of economic growth in any country. However, their contributions to economic growth cannot materialize without fulfilling their capital needs.

Research on fraud: an overview from small medium enterprises (SMEs)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Siti Faizah Zainal ◽  
Hafiza Aishah Hashim ◽  
Akmalia M. Ariff ◽  
Zalailah Salleh
Keyword(s):  
Internal Control ◽  
Small Businesses ◽  
Small And Medium Enterprises ◽  
Future Research ◽  
Control Mechanisms ◽  
Content Type ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
The Cost ◽  
The Impact

Purpose The purpose of this paper is to present a review of literature on fraud with a specific focus on small and medium enterprises (SMEs). Specifically, it aims to provide further knowledge on recent developments in fraud research and offers suggestions for future research. Design/Methodology/Approach This paper systematically reviews the fraud literature, by organising them into five sections; definition, elements, theories, factors and prevention mechanisms. Findings The most common factors of fraud in SMEs are the low morale among employees and weak internal control within the organisations. Nonetheless, research on fraud involving SMEs is limited, albeit the importance of SMEs to the economy. Research Limitations/Implications This paper encapsulates the importance of research on fraud in SMEs by offering directions for future research. Among others, future studies might indicate the link between corruption, financing sources and innovation of SMEs, especially within the context of an emerging country and reveal the cost of the criminal justice system to identify more accurately the cost of fraud in SMEs. Originality/Value The focus on fraud in SMEs and the recent period of study offer a foundation for future research directed at the factors of fraud and the prevention mechanisms. Future research can further explore and broaden the literature on fraud involving SMEs through research that focuses on the impact of fraud and the types of control mechanisms that suit the SMEs. Greater understanding of fraud in the SMEs allows in identifying the best approach to prevent and detect fraud for small businesses with limited resources.

Impact of introducing e-commerce on small and medium enterprises – a case on logistics provider

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Morsheda Parvin ◽  
Soaib Bin Asimiran ◽  
Ahmad Fauzi Bin Mohd Ayub
Keyword(s):  
Economic Growth ◽  
Design Methodology ◽  
Service Providers ◽  
Small And Medium Enterprises ◽  
Electronic Devices ◽  
Content Type ◽  
The Difference ◽  
Medium Enterprises ◽  
Sustainable Economic Growth ◽  
The Impact

Purpose Small and medium enterprises (SME) significantly alleviate poverty and generate employment to achieve sustainable economic growth. Using electronic devices, e-commerce allows an immediate and advanced communication service to accomplish business transactions. Considering logistics provider as a case, this paper aims to examine the impact of adopting an e-commerce technology on its customers’ and agents’ satisfaction. Design/methodology/approach The authors use the difference in difference methodology to examine these effects and find positive impacts on both customers and service providers. Findings As SMEs are widely considered as the powerhouse of an economy, the authors’ findings suggest that using e-commerce not only makes an SME agent more efficient but also accelerates an SME business transaction, which ultimately helps to achieve sustainable economic growth. Originality/value A few studies are conducted in examining the impact of SME on economy. However, according to the authors’ knowledge, this is the first research that examines the impact of e-commerce on SME.

Financing woes: estimating the impact of MSME financing gap on financial structure practices of firm owners

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vibhuti Mittal ◽  
T.V. Raman
Keyword(s):  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Financial Structure ◽  
Service Industries ◽  
Equation Modeling ◽  
Content Type ◽  
Financing Gap ◽  
Medium Enterprises ◽  
The Impact ◽  
Firm Owners

PurposeAccessing formal mainstream finance is a cumbersome process for Micro, Small and Medium Enterprises (MSMEs) of emerging economies. Empirical investigations have connected finance accessibility to financing gap that restricts MSMEs from borrowing through formal channels. The purpose of this study is to explore the influence of financing gap on firms' financial structure (FS) practices. In this regard, the research framework divides financing gap into four dimensions, namely: demand gap (DG), supply gap (SG), knowledge gap (KG) and empathy gap (EG).Design/methodology/approachThe paper adopts a quantitative approach to establish the underlying relationship between the variables. The participants of the self-structured questionnaire survey were 219 MSME owners from manufacturing, trading and service industries. The results are inferred through the partial least squares structural equation modeling (SEM) technique.FindingsThe findings recognise a significant impact of financing gap on the FS practices of firm owners. The financing constraints contributing to KG, SG and EG are found to be extending the unwillingness of firm owners to borrow through formal channels. Further, the results also confirm the influence of financing gap on the pecking order framework (POF) of MSMEs' FS.Practical implicationsThe study offers the perspective and hesitance of MSME owners towards mainstream financing. The key findings are useful for the financial intermediaries and policymakers, who need to be sensitive and proactive in their small business lending process.Originality/valueThe study adds to the limited evidence of various dimensions of financing gap. It also addresses the role of financing gap on the conscious preferences of MSME owners towards the informal source of financing along with the POF.

Web GIS to enhance relational capital: the case of general merchandise retailers

2016 ◽  
Vol 20 (3) ◽  
pp. 578-593 ◽  
Author(s):  
Raul Baños ◽  
Gonzalo Wandosell ◽  
María Concepción Parra
Keyword(s):  
Information And Communication Technologies ◽  
Web Sites ◽  
Geographical Information Systems ◽  
Small And Medium Enterprises ◽  
Web Gis ◽  
Geographical Information ◽  
Relational Capital ◽  
Content Type ◽  
Medium Enterprises ◽  
The Impact

Purpose This paper aims to study the impact of information and communication technologies in organizations to capture and manage intellectual capital. The paper focuses particularly on the use of Web-based geographical information systems (Web GIS) to increase relational capital. Design/methodology/approach This paper analyzes in detail the Web sites of 143 general merchandise retailers, which have been grouped according to their dominant operational format. Menus and search tools have been used to find out about the way in which these retailers provide information to the customers about their stores, with special attention to the use of Web GIS. Findings The results obtained show that most of the companies analyzed use Web GIS to provide information about the location and other characteristics of the stores. The findings in this paper also suggest that the quantity and quality of the information provided by is somewhat related to the company size. Research limitations/implications The limitations of this study come from the difficulty of predicting whether small and medium enterprises (SMEs) will generalize the use of Web GIS in the future. Practical implications The findings of the paper suggest that large retail firms have adopted Web GIS to provide information to the customers and for other geomarketing purposes. Moreover, SMEs should use Web GIS to improve their relationship with customers. Originality/value To the authors’ knowledge, no paper has analyzed in detail the use of Web GIS by companies with the aim of enhancing relational capital.

Types of foreign networks and internationalization performance of Korean SMEs

2016 ◽  
Vol 24 (1) ◽  
pp. 47-61 ◽  
Author(s):  
So Won Jeong
Keyword(s):  
Financial Performance ◽  
Small And Medium Enterprises ◽  
International Markets ◽  
Performance Outcomes ◽  
Business Networks ◽  
Content Type ◽  
Strategic Performance ◽  
Medium Enterprises ◽  
Performance Satisfaction ◽  
The Impact

Purpose The purpose of the study is to empirically analyze how various types of foreign networks influence the internationalization performance of Korean small and medium enterprises (SMEs). The specific aim is to investigate the impact of each network type (family and friends, clients (buyers, vendors, etc.), potential buyers contacted through an Internet search for export, acquaintances from trade shows and fairs and acquaintances from government organizations) on internationalization performance outcomes, such as financial performance, financial performance satisfaction and strategic performance. Design/methodology/approach To identify influential foreign networks, multiple regression analysis was conducted. The sample consisted of 484 exporting Korean SMEs. Findings The results emphasized the role of business networks with clients in enhancing financial performance, financial performance satisfaction and strategic performance of Korean SMEs in international markets. Originality/value The research contributes to the expansion of SME internationalization literature by identifying various types of foreign networks used in international markets and revealing their differential roles on the internationalization performance of Korean SMEs.

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