Firm Capabilities and Growth Strategies: The Moderating Role of Institutional Factors

2020 ◽  
Vol 24 (50) ◽  
pp. 80-115
Author(s):  
Gerardo Velasco-Gutiérrez ◽  
Miguel A. Montoya ◽  
Margarita Orozco ◽  
Joan-Lluis Capelleras
Keyword(s):  
Small And Medium Enterprises ◽  
Business Environment ◽  
Growth Strategy ◽  
Institutional Factors ◽  
Growth Strategies ◽  
Credit Access ◽  
Organic Growth ◽  
Managerial Implications ◽  
Information And Communication ◽  
Medium Enterprises

Building on Resource-Based View (RBV) and Institutional Theory (IT), we decided to study the internal and external factors that affect the choice between different growth strategies in small and medium enterprises (SMEs) in an emerging economy. We started identifying that there is a direct relationship between technological resources and an organic growth strategy, financial resources and an acquisitive growth strategy, and networking capabilities and a hybrid growth strategy. We argue that the intensity of these relations is moderated by institutional factors, such as a country’s intellectual property protections (for organic strategies), credit access (for acquisitive strategies), and trust in the business environment (for hybrid strategies). We based our findings on 450 face-to-face surveys with CEOs from firms in the Electronic Technology, Information, and Communication Sector (ETICS) in Mexico. Managerial implications are also discussed in the paper, as well as future avenues of research.

SME GROWTH STRATEGIES: ORGANIC OR NON-ORGANIC?

2007 ◽  
Vol 15 (04) ◽  
pp. 317-338 ◽  
Author(s):  
MIKA PASANEN
Keyword(s):  
Firm Growth ◽  
Small And Medium Enterprises ◽  
Growth Strategies ◽  
Factors Affecting ◽  
Organic Growth ◽  
Growth Firms ◽  
Managerial Implications ◽  
Strategic Factors ◽  
And Performance ◽  
Medium Enterprises

This paper focuses on factors affecting the growth and performance of small and medium enterprises (SMEs). The aim was to identify strategic factors differentiating two types of growth firms, organic growth SMEs and acquisition growth SMEs. The comparison was based on the empirical data of 20 acquisition growth SMEs and 90 organic growth SMEs, The analysis revealed strategic differences, with important implications, between the two groups. The most noteworthy differences were related to their scale of operation, firm age, founders, and product and customer structures. The results increase our understanding of the factors affecting SME growth and performance in two different contexts of growth strategies. They suggest that firm growth pattern is associated with SME characteristics, and thus has managerial implications.

scholarly journals Digital Inclusion Of Ict And Its Implication Among Entrepreneurs Of Small And Medium Enterprises

2019 ◽  
Vol 8 (5C) ◽  
pp. 747-752
Keyword(s):  
Digital Media ◽  
Small And Medium Enterprises ◽  
Strong Relationship ◽  
Business Environment ◽  
Business Networks ◽  
Digital Inclusion ◽  
Information And Communication ◽  
Marketing Tool ◽  
The Government ◽  
Medium Enterprises

The emergence of new digital technologies and the existence of digital media has had an important impact in changing the operation of business environment. Correspondingly, the diversity of applications and digital media has now provided a broader space for the users, including the entrepreneurs, to enhance and upsurge their contact with customers and suppliers in entrepreneurship sector. Information and Communication Technology (ICT) and the Web are particularly the integrated and dynamic tool in nurturing entrepreneurship as well as act as the communication and marketing tool to grow the business. It is important to explore the new phenomenon in entrepreneurship that is closely related to ICT usage. The purpose of this study was to identify the patterns of ICT usage and to analyze the relationship between digital inclusion and its implications among entrepreneurs of small and medium enterprises (SMEs). The quantitative method is employed in this study with samples aimed at focusing on entrepreneurs in the Klang Valley. A questionnaire was distributed directly to 500 respondents aged between 18 to 55 years old. The data collected were analyzed descriptively and with correlation inference by using the SPSS software. The finding indicated a significant and strong relationship between digital inclusion and its implications (p <0.005, r = .685) among entrepreneurs of SMEs. It revealed that the entrepreneurs with high involvement in ICT usage have high implications in terms of innovation and business satisfaction. The study recommends that the government should play a dynamic role in education and training for the development of the SMEs as well as bridge the gap among the SMEs to adopt the use of digital media tools. In sum, the use of ICT contributes to enhance a number of benefits such as to be more competitive, innovative, expanding business networks and gaining more global marketing opportunities.

scholarly journals The Critical Review on the Adoption of ICTs in the Small and Medium Enterprises (SMEs) in the Developing Countries

2019 ◽  
Vol 2 (2) ◽  
pp. 33-40
Author(s):  
Nasser Saif Al Busaidi ◽  
Abul Bashar Bhuiyan ◽  
Norhayah Zulkifli
Keyword(s):  
Information And Communication Technologies ◽  
Success Factors ◽  
Small And Medium Enterprises ◽  
Communication Technologies ◽  
Business Environment ◽  
Management Skills ◽  
Critical Success ◽  
Information And Communication ◽  
Business Competitiveness ◽  
Medium Enterprises

The Small and Medium Enterprises (SMEs) are considered as the mainstay of the economy, whereas the Information and Communication Technologies (ICTs) is regarded as unitary of the major drivers for SMEs. The function of the ICT is to ensure that as far as the organizations are concerned, their strategy and design, innovation of new products, services, processes, productivity, expansion of market size, improvement of product qualities, enhancement of performance and, development, as well as supporting business competitiveness can be executed accordingly. However, debates about the efficient uses of ICTs by SMEs in developing nations are being discussed and reported widely. Therefore, this study analyzes the critical success factors on the ICTs adoption in the SMEs globally focusing on Oman. Questionnaire survey is conducted among the managers of the SMEs. It is found that the effective adoption of ICTs in the SMEs is caused by a number of success factors including among others limited access to markets and, finance, lack of awareness to global markets, unfriendly business environment, poor management skills and lack of updated technology. complication of the bureaucracy process, as well as lack of training relating to basic business.

scholarly journals Extrapolative Collaborative Filtering Recommendation System with Word2Vec for Purchased Product for SMEs

2021 ◽  
Vol 13 (13) ◽  
pp. 7156
Author(s):  
Kyoung Jun Lee ◽  
Yu Jeong Hwangbo ◽  
Baek Jeong ◽  
Ji Woong Yoo ◽  
Kyung Yang Park
Keyword(s):  
Collaborative Filtering ◽  
High Performance ◽  
Recommendation System ◽  
Small And Medium Enterprises ◽  
Personal Information ◽  
Business Environment ◽  
Share Data ◽  
Artificial Intelligence Technology ◽  
Medium Enterprises ◽  
Start Ups

Many small and medium enterprises (SMEs) want to introduce recommendation services to boost sales, but they need to have sufficient amounts of data to introduce these recommendation services. This study proposes an extrapolative collaborative filtering (ECF) system that does not directly share data among SMEs but improves recommendation performance for small and medium-sized companies that lack data through the extrapolation of data, which can provide a magical experience to users. Previously, recommendations were made utilizing only data generated by the merchant itself, so it was impossible to recommend goods to new users. However, our ECF system provides appropriate recommendations to new users as well as existing users based on privacy-preserved payment transaction data. To accomplish this, PP2Vec using Word2Vec was developed by utilizing purchase information only, excluding personal information from payment company data. We then compared the performances of single-merchant models and multi-merchant models. For the merchants with more data than SMEs, the performance of the single-merchant model was higher, while for the SME merchants with fewer data, the multi-merchant model’s performance was higher. The ECF System proposed in this study is more suitable for the real-world business environment because it does not directly share data among companies. Our study shows that AI (artificial intelligence) technology can contribute to the sustainability and viability of economic systems by providing high-performance recommendation capability, especially for small and medium-sized enterprises and start-ups.

The procurement process in the Virtual Vertical Enterprise scenario: the point of view of Large Enterprises

1999 ◽  
Vol 18 (3-4) ◽  
pp. 187-191
Author(s):  
Roberto Santoro
Keyword(s):  
Supply Chains ◽  
Information And Communication Technology ◽  
Communication Technology ◽  
Small And Medium Enterprises ◽  
Point Of View ◽  
Delivery Time ◽  
Procurement Process ◽  
Information And Communication ◽  
Medium Enterprises ◽  
Large Enterprises

The extraordinary development of the Information and Communication Technology (ICT) allows for innovative relationships among enterprises, organised in extended networks and regardless of their location. In this scenario, Large Enterprises can re-organise their traditional supply chains (generally formed by Small and Medium Enterprises) according to VIrtual Vertical Enterprise concepts and methodology, in order to obtain: (1) better control of subcontractors activities; (2) cost and delivery time reduction; (3) decrease of subcontractors number.

Twiga Hosting Ltd – providing affordable information and communication technologies services to small and medium enterprises

2011 ◽  
Vol 1 (4) ◽  
pp. 1-16
Author(s):  
Juma James Masele
Keyword(s):  
Information And Communication Technologies ◽  
Undergraduate Students ◽  
Success Factors ◽  
Small And Medium Enterprises ◽  
Innovation Management ◽  
Communication Technologies ◽  
Subject Area ◽  
Content Type ◽  
Information And Communication ◽  
Medium Enterprises

TitleTwiga Hosting Ltd – providing affordable information and communication technologies services to small and medium enterprises.Subject areaThe case describes the launch of Twiga Hosting Ltd, a company providing information and communication technology (ICT) services to the underserved small and medium enterprise (SME) sector in Tanzania and in a many countries in Africa.Study level/applicabilityThis case targets a range of audience from undergraduate students taking both Bachelor of Commerce and those taking Bachelor of Business Administration; and Postgraduate students taking business‐related courses. Nonetheless, the case may be used by all other learners of advanced studies in entrepreneurship and innovation management.Case overviewThe case addresses a number of issues including: Issues to be considered when starting an ICT enterprise. Strategic management. Business revenue models.Expected learning outcomes To impart/inculcate entrepreneurial insights in ICT and related areas. To make learners aware of the business growth opportunities in ICT ventures. The success factors for fruitful ICT ventures. To enable learners to identify challenges facing entrepreneurs in ICT ventures and the ways to overcome them.Supplementary materialsTeaching notes.

Understanding the gendered nature of developing country MSMEs’ access, adoption and use of information and communication technologies for development (ICT4D)

2020 ◽  
Vol 12 (3) ◽  
pp. 273-295
Author(s):  
Elisa Mohanty ◽  
Anindya Jayanta Mishra
Keyword(s):  
Information And Communication Technologies ◽  
Small And Medium Enterprises ◽  
Communication Technologies ◽  
Dark Side ◽  
Future Research ◽  
Power Dynamics ◽  
Content Type ◽  
Time Period ◽  
Information And Communication ◽  
Medium Enterprises

Purpose The widespread use of information and communication technologies (ICTs) has had a significant effect on various groups and communities of people including micro, small and medium enterprises (MSMEs) and their owners/managers. The current study aims to analyze recent literature regarding adoption of ICTs by MSMEs. Further, it tries to locate gender within this broader context of diffusion of ICTs among MSMEs. Design/methodology/approach Using the thematic analysis approach, the research articles pertaining to six leading journals on ICTs, gender and entrepreneurship published during the time period from 2011 to 2019 are reviewed. Findings The literature selected for the study has been discussed under two primary categories, viz. “adoption of information and communication technologies for development (ICT4D) for business purposes” and “insights on gender in ICT4D use by MSMEs.” Research limitations/implications The context-dependent nature of ICT use can enable future entrepreneurs to assess the scope of specific ICTs in given areas of operation. The gendered nature of ICTs helps to evaluate as well as question the empowerment potential of ICTs. The study emphasizes the need to account for historical specificities and transnational linkages in understanding access, adoption and use of ICT4D by women MSME entrepreneurs. Originality/value The study bridges together literature on ICT4D use by MSMEs and the role of gender in ICT-mediated entrepreneurial environments. While unraveling the interplay of power dynamics in such environments, the scope for future research in terms of tapping into the content of information exchanges and exploring the implications of “dark side of internet” for women MSME entrepreneurs is also indicated.

scholarly journals Strategic Planning and Competitive Advantage of ICT Small and Medium Enterprises in Kenya

2013 ◽  
Vol 1 (1) ◽  
pp. 191 ◽  
Author(s):  
Zachary B. Awino
Keyword(s):  
Strategic Planning ◽  
Competitive Advantage ◽  
Small And Medium Enterprises ◽  
Critical Role ◽  
Dynamic Environment ◽  
Business Environment ◽  
Positive Influence ◽  
Balanced Score Card ◽  
Medium Enterprises

The Paper is the research findings on the role of strategic planning and competitive advantage of ICT Small and Medium Enterprises in Kenya. Literature suggests that the contemporary business environment in which organisations operate is increasingly becoming uncertain and unpredictable. Significant changes are mostly driven by technological changes, globalisation and trade liberalisation. As a result, like large enterprises, SMEs are facing new and unexpected challenges that threaten their competitiveness. While most countries acknowledge the critical role that SMEs contribute to their economies, both as an engine of growth and sustainable development, many questions still remain unanswered as to the determination of the critical challenges facing SMEs and how these challenges could be addressed to improve their competitiveness. These challenges have increased the need for empirical information which is essential for decision making in addressing issues that are likely to enhance SMEs survival and growth. It is noted that there has been no adequate research studies on the role of strategic planning and competitive advantage of SMEs. This study contributes to the need to address the research gaps and thus explored the role of strategic planning and competitive advange of SMEs in Kenya. The study population consisted of 238 ICT SMEs from Nairobi and its environs. A sample size of 146 firms constituting 61 per cent of the total population was selected through stratified sampling. The study aimed to collect data from 438 respondents from top, middle and lower management teams. Structured questionnaires with closed and open ended questions was used for data collection, 239 responses were received from 123 ICT firms a response rate of 55 per cent and 84.2 per cent respectively. Key characteristics of strategic planning including formality, environmental analysis processes both internal and external orientations, strategies adopted, and implementation and control were recorded. Data analysis was done using descriptive statistics, factor analysis, t-test, ANOVA, correlation, correlation matrixes and regression analysis. The key findings revealed that strategic planning has significant and positive influence in performance of SME’s. The test of hypothesis revealed that strategic planning has positive and significant influence on competitive advantage. The study demonstrated strategic planning as a learning tool and a strategic resource which is consistent with the underlying assumptions of resource based theory, systems theory, chaos theory and balanced score card model assumptions. It is envisaged that, this kind of research is likely to generate useful discussions on the role of strategic planning and performance, of SMEs. It is apparent that entrepreneurs of SMEs cannot ignore strategic planning as significant changes in competitive advantage is the result of change or effective application of strategic planning. Policy makers and academicians may need to address the capacity needs of SMEs and develop strategic planning model that address the challenges that SMEs encounter in a dynamic environment.

scholarly journals Women Entrepreneurs in Bangladesh- Challenges and Determining Factors

2015 ◽  
Vol 9 (2) ◽  
pp. 27-41 ◽  
Author(s):  
Tania Afroze ◽  
Md Kashrul Alam ◽  
Eliza Akther ◽  
Nahid Sultana Jui
Keyword(s):  
Gender Discrimination ◽  
Women Entrepreneurs ◽  
Small And Medium Enterprises ◽  
Secondary Data ◽  
Business Environment ◽  
Sales Promotion ◽  
Social Constraints ◽  
Management Skills ◽  
Economic Activities ◽  
Medium Enterprises

The aim of this study is to find out the major challenges that hinder smooth operation of women entrepreneurs of Bangladesh. It also finds the reasons behind the success of the women entrepreneurship. Both primary and secondary data have been used to conduct the study. The questionnaire included questions about economic problems, family related issues, social constraints and other limitations faced by women entrepreneurs and the reasons behind their success. Women involved in various small and medium enterprises take on the challenge to work in a male-dominated society, competitive and complex economic and business environment. However, the identified challenges are inadequate capital, sales promotion, getting permission to start-up a business, gender discrimination, illiteracy and lack of knowledge among women, non-availability of training program and technical support, lack of managerial experience, in some cases young people make ill talk about the enterprise and so on. Personal qualities such as hard work and perseverance, management skills and marketing skills, support provided by their spouses or family are the main reasons behind the success of the women entrepreneurs. The level of participation of women in mainstream economic activities remains insufficient and the percentage of women in business is still much below than that of their male counterparts.Journal of Business and Technology (Dhaka) Vol.9(2) 2014; 27-41

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