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Learning orientation emphasizes the importance of learning from any experience. It is grounded on commitment to learn, shared vision, open‐mindedness, and knowledge sharing. Organizational knowledge management literature based on social complexity theory posits that learning orientation makes companies generate new knowledge through spontaneous multi-level iterations and self-organization. Challenges related to the current business environment requires companies to constantly adjust to remain competitive. Still, the mechanisms making learning-oriented companies more capable to develop innovative product have been scantly explored. Pertinent literature actually conjectures this relationship as spontaneous, directed, and unmediated. Moreover, Small and Medium Enterprises (SMEs)rarely represent the context of analysis of research on this topic. Frequently lacking resources to systematically pursue product innovation, SMEs rely on solutions deriving from the combination of internal knowledge and external sources; thus, these companies depend on learning orientation principles to remain innovative. In this vein, the research aims to understand how learning orientation allows product innovation in SMEs through the achievement of strategic flexibility. Structural equation modelling was used to analyse data from 300 British SMEs. The results demonstrate the mediating role of strategic flexibility in the relationships between learning orientation and product innovation. The importance of innovation culture also emerged.
The role of government should not decrease in a linear fashion but rather must increase at the upper middle-income stage. Economic growth at the low-income stage follows a country’s comparative advantages and does not require considerable direct government intervention. Upgrading to enter high value-added sectors may require more direct intervention by the government, such as public–private R&D consortiums, because firms at this stage face increased difficulty in terms of entry barriers, IPR disputes, and technology transfers. To overcome the challenge of strategically managing global–local interfaces, two modes of government involvement are possible. The slow but steady mode of catch-up corresponds to the case of the IT cluster in Penang, Malaysia, and the auto industry in Thailand, where the main focus of public intervention was on re-skilling and up-skilling local labor forces. The faster mode of catch-up more closely corresponds to the situation of Shenzhen and the Chinese auto sector where asymmetric intervention was mobilized to foster domestically owned firms. A final question addressed by this chapter is how to generate big businesses as an engine for growth beyond the middle-income stage, as well as how to promote the coevolution of big businesses and SMEs.
The Australian income tax system is considered to be among the most complex tax systems in the world. In order to properly understand how the income tax system works, it is necessary to adopt a structured approach that starts with the most basic elements of the regime. At the centre of every tax system are the statutes that govern their operation and contain the rules for calculating tax liability. This chapter introduces Australia’s income tax legislation and focuses on how a taxpayer’s income tax liability is calculated. It discusses the concept of taxable income and how income tax interacts with GST and FBT. The chapter outlines a number of speical concepts related to calculating a taxpayer’s tax liability as well as the special rules that apply to SBEs. It also examines the rates of income tax payable by different entities and focuses on the marginal tax rates and additional levies that apply to individuals (eg Medicare levy and Medicare levy surcharge). It also discusses tax offsets, the Higher Education Loans Program (‘HELP’) and the basic assessment, payment and collection rules. The chapter concludes with a detailed example showing the steps involved in calculating a taxpayer’s income tax liability.
This research aims to unpack how digital technologies can facilitate the flourishing of circular business practices in small- and medium-sized enterprises by structuring a detailed going circular path that explains businesses’ evolution toward circularity. In doing so, it outlines how the observed organizations have adopted – or are adopting – circular economy principles thanks to business digitalization. Following an inductive approach based on a multiple case study methodology, we investigated 16 small- and medium-sized enterprises operating in industries that put considerable pressure on the environment (e.g., manufacturing, chemical, construction, fashion, food, and beverage). Our findings confirm how digital technologies, as well as Industry 4.0 structures, play a fundamental role in shaping, enabling, enhancing, and refining circular products and processes development. Accordingly, we outline a generalizable step-by-step process to pursue circular economy by employing digital technologies. The present study represents a practical handout for guiding companies through their going circular path.
Public concerns about the impacts of globalization and in particular the perception that benefits of trade have not been shared widely make it harder to continue to advocate for more and open trade at the multilateral level or in some cases at the bilateral level. The Government of Canada, therefore, has committed to making trade work for all, including women. Understanding the effects of trade on people in Canada is important. Global Affairs Canada (GAC) is undertaking a new analytical approach based on four complementary elements to help craft a coherent gender responsive and inclusive trade policy for Canada: (1) Research and analysis of the participation in trade of women-owned businesses in Canada; (2) Ex ante economic impact analysis using a computable general equilibrium (CGE) model and adding a labour market module; (3) Ex post quantitative assessment of free trade agreements (FTAs); and (4) Comprehensive dynamic gender-based analysis plus (GBA Plus) of a trade negotiation. The purpose of this chapter is to examine what Canada has been doing on these four elements and show how they are helping Canada craft a gender-responsive and inclusive trade policy so that others can determine whether this approach might be useful for application in their own countries.
An increasing number of small and medium enterprises (SMEs) are focusing on sustainable development and on embracing sustainable business models (SBMs). Despite the growing interest of academics and practitioners in SBMs, and the benefits for stakeholders, there is limited knowledge regarding the factors enabling SME transition toward SBMs, leading them to integrate sustainable principles in their BMs. This study explores the enabling factors for SBM adoption by SMEs and provides an improved understanding of this recent phenomenon. Understanding what factors enable adoption of SBMs is crucial for both SMEs and policymakers. The research uses an inductive qualitative research design approach focused on multiple case studies. The findings reveal that both internal and external factors play a key role in enabling SME transition toward SBM adoption. The internal factors that emerged include openness, change of mindset, problemistic search, social exchange, and resource valorization, while external factors included markets change, technological innovation, stakeholders’ influences, policy and institutions.
This research aims to analyse the links and potential limiting and supporting factors between sustainability actions and sustainability reporting. Comparing companies involved in sustainability actions and those whose reporting practices lack a formal reporting system, this analysis focuses on Italian small and medium-sized enterprises (SMEs) in the meat and cured meat industry, identifying the perspective (formative) that links sustainability action to communication in these SMEs. The qualitative interpretative approach, based on semistructured interviews, highlights the relevant strengths and weaknesses concerning substantive sustainability actions and the effect of communication on them, providing implications for international and sectoral policies and management choices. Filling a gap in the SME literature concerning their approaches to sustainability reporting and action (and the relationship thereof), this study also introduces, as a widely used practice, ‘greenhushing’, i.e., the deliberate absence of or limited communication on effectively implemented sustainability practices or their salient results.
This paper addresses an important knowledge gap regarding the internationalization of family businesses. To understand the specific factors that influence the internationalization of these firms, this paper investigates the role and articulation of entrepreneurial orientation (EO) and family social capital (FSC) on internationalization performance. Our findings reveal that the more entrepreneurial the family business, the higher the likelihood of identifying and exploiting business opportunities in foreign markets. The moderating effect that FSC can have on the dynamics between EO and internationalization indicates that this relational family specific asset facilitates organizational stability and performance enhancement.
The legitimacy of ISDS appears to depend in part on an expectation that it benefits smaller businesses, not just large multinationals and the super-wealthy. This chapter collects data on size and wealth of the foreign investors that have brought claims and received monetary awards due to ISDS. Categories for the size and wealth of foreign investors are compared to the size of damage awards, which helps determine that the primary beneficiaries in ISDS cases have been companies with annual revenue exceeding US$1 billion and individuals with net wealth in excess of US$100 million. The main finding is that the beneficiaries of ISDS-ordered financial transfers, in the aggregate, have overwhelmingly been wealthy individual investors and large companies – and especially extra-large companies. The authors also note that the awards gained by small companies are not so different from their legal costs.
The bursting of the “bubble economy” in 1989–1990 brought decades of challenge for Japanese Small and Medium-Sized Enterprises (SMEs), which had assumed the role of subcontractor within production networks dominated by large companies. This article explores the impact of a rapidly altered business environment, due to economic crisis, the decline of relational subcontracting, and technological change, on the management and organization of firms. It provides a needed historical account of Japanese SMEs striving to avoid “hollowing out,” and detailed case studies explain what gaining greater independence as a flexible specialist meant in practice. A focus on the immediate advantages of computerized tools could not bring about the intended strategic objectives, whereas the systemizing of new and existing resources in skills and equipment enabled sustainable competitive differentiation in production and products. The case studies map out the internal competence transformations of SMEs over time, and indicate the value of historical approaches to exploring strategic and organizational change.
In this study, we investigate the mediating effect of institutional networking on the relationship between perceived corruption and the growth of small and medium-sized enterprises (SMEs). We also examine the moderating impact of financial slack on the relationship between perceived corruption and institutional networking. We test our moderated mediation model using data from 212 SMEs operating in Ghana. The findings from the study show that perceived corruption is positively related to institutional networking and this relationship is amplified when levels of financial slack are greater. The findings also show that institutional networking positively mediates the relationship between perceived corruption and SME growth. Theoretical and practical implications are discussed.
Across the United Kingdom public (and private) resources have been targeted on improving broadband infrastructure. While this has served to provide new opportunities for households and firms, there has been some debate around the ability of firms to take full advantage of the opportunities that arise through this evolving infrastructure. In this respect, there has been particular debate on how far small- and medium-sized enterprises (SMEs) have taken up the challenge of effectively engaging with the resource. Drawing on the case of Wales, this paper explores the digital maturity of a sample of Welsh SMEs. The paper provides evidence of how far SMEs are successfully engaging with the new opportunities available through broadband, and develops a typology of firms according to their engagement. The paper then explores how these differences produce policy implications.
Entrepreneurial orientation (EO) is a key factor in the creation and development of companies. This study examines the CEO's personal background (personality, proactivity and resistance to change) and its influence on the EO of the organization to determine which factors enhance or weaken EO. We achieve this goal through quantitative research, developing a structural equations model with partial least squares to analyse a sample of 358 Spanish SMEs from different sectors. The results suggest that specific personality dimensions exert substantial influence on the organization's EO. We also analyse individual proactivity and resistance to change as conduits for the effect of personality dimensions on the company's EO.
Researchers have extensively studied how large firms and SMEs use business and political ties to obtain tangible and intangible resources in transition economies. However, how SMEs establish these ties in the context of power-imbalanced dependence by using unethical and illegal “strategic practice” such as bribery remains underexplored. Furthermore, how SMEs deploy strategies to mitigate such risky actions in the process of resource acquisition is also given limited attention in the literature. Lack of exploration of these issues leaves significant gaps in our understanding of how SMEs are able to initiate and operate their ties for survival and growth despite enormous institutional constraints. We analyze the negative and positive effects of power dependence on business resource acquisition via regression analysis using survey data drawn from 232 Chinese SMEs. The findings indicate that power-imbalanced dependence among SMEs is associated with their use of bribery to establish political ties with officials for access to resources. The moderating effect of power-mutual dependence on this relationship is also examined. Theoretical significance and managerial implications of these findings for SMEs in transition economies are discussed.
Collective entrepreneurship (CE) is the ability of several individuals to jointly innovate and create within organisations. In this exploratory study, we investigate whether the relationship between some specific leadership styles and more effective CE is affected by moderator variables. The unit of analysis were staff members of a Portuguese group of small- and medium-sized enterprises (SMEs). A total of 204 questionnaires were returned, representing almost half the employee population we approached. For measurement, we employed 19 items to gather the six latent variables related to our model. For data analysis, we used partial least squares. We found that participative leadership style had the highest joint and indirect effect on more effective CE. Job satisfaction appears to be an important moderator for the occurrence of CE. The impact of employees’ organisational commitment and collaboration on CE is rather weak. Our study contributes to advancing knowledge in the fields of organisational psychology and entrepreneurship. We combine and extend previous research, which allows us to reconcile the sometimes contradictory findings so far concerning leadership and CE in the realm of small- and medium-sized enterprises.
Existing research on certifiable management standards (CMS) and corporate social responsibility (CSR) tends to focus on large companies and is characterised by disagreement about the role of these standards as drivers of CSR. We contribute to the literature by shifting the analytical focus to the behaviour of small and medium-sized enterprises (SMEs) that subscribe to multiple CSR related standards. We argue that, in respect of motive and commitment, SMEs are not as different from large companies as the literature suggests, as they are guided by similar institutional and economic motives. Results, based on ISO 9001, ISO 14001 and OHSAS 18001 certified SMEs in Greece, demonstrate that later adopters are more susceptible to coercive and mimetic motives and are less likely to commit fully to the CMS requirements, while earlier adopters react to normative motives and considerations of internal efficiency gains and tend to carry out CMS requirements with greater diligence.
The importance of the environment is something of a cracked record to many small business owners, as historically any calls to business to change or improve their practices or behaviours were from the ‘environmental’ or ‘green’ perspective, rather than from a business perspective. As a consequence, many small businesses have simply tuned out. This research sought to identify the impact of an education intervention program that encouraged better environmental management practices and provided practical assistance to the businesses. The research was designed to test the effectiveness of the program and record any changes that occurred in the businesses over the duration of the project. To measure changes, it included a pre- and post-intervention survey. Overall, there was an increased awareness in most of the businesses in regard to environmental issues. Participants from many of the businesses also expressed positive changes to both behaviours and attitudes to environmental issues. This demonstrated the value of the program, and also highlighted the challenge to engage small business, even when a business case is apparent, given the cost of implementing this type of intensive and personalised assistance.
While ‘open innovation’ is often considered to be an organisational strategy with universal application, its generalisability and applicability to organisations operating within emerging economies has yet to be fully explored. This study provides empirical evidence of its importance within a substantial sample of Chinese large firms and small and medium enterprises. Using Tobit regression analysis, our findings indicate that external knowledge sources from inter-firm networking are more important in creating the benefits of open innovation for Chinese small and medium enterprises than their larger peers. Linkages to university and research institutes generally have few direct effects on the innovation performance of both large and small firms in China. However, the role of universities and research institutes is shown to be important among our large firm sample when combined with evident internal absorptive capacity. This interaction is generally limited to our large firm sample, and is not as evident among small firms.
Our study indicates that the barriers to the adoption of open innovation by Chinese firms might be largely related to the comparatively weak domestic research expertise and limited organisational absorptive capabilities, with this most particularly evident for small and medium enterprises.
These findings suggest that, based on this evidence, there is no need for emerging economies like China to mimic the emergence path from closed to open innovation followed by developed countries. Chinese firms will be more likely to garner the benefits available from openness when they develop the capabilities required to identify, assimilate and commercialise knowledge and technologies obtained from external sources.
Customer relations provide a valuable link between customers and the companies who produce the products they buy and the services they use. Every organisational member carries out actions which reflect the existence of counter-knowledge (i.e., obsolete knowledge and inappropriate knowledge structures) which in turn can lead to detrimental effects on customers. A decision to reorientate counter-knowledge takes an extended period of time to produce significant results as this process involves the integration of existing capabilities with newly acquired knowledge. Crucially, however, it also involves the unlearning of capabilities which are no longer relevant. Unlearning is the process by which firms eliminate old logics and behaviours and make room for new ones. With the development of this paper, we intend to address the following question: How can managers help to correct counter-knowledge in order to foster customer relations? These relationships are examined through an empirical investigation of 164 small and medium enterprises in the Spanish construction industry. Our results show that an unlearning context (i.e., the examination of lens fitting, the framework for changing individual habits and the framework for consolidating emergent understandings) is an important solution for the process of counteracting the negative effects of counter-knowledge (e.g., misunderstandings and misconceptions). The results also shed light on a tangible means for managers to enhance customer relations through unlearning practices.
This study focuses on university—industry—government (UIG) linkages and their influence on innovation in Taiwan. The innovation effects are estimated using a quartet of measures — technology transfers, technology licensing, firms incubated and patents granted — while the UIG influence is estimated via its differential impact according to the size of the firms involved, the type of innovation (process or product-oriented), the stage of the technology cycle, and the role of government. Using a Structural Equation Model (SEM) method to examine these interactions, the study reveals that UIG linkage effects vary with the size of company, in that the major incentive for UIG linkages for large companies is an attempt to acquire a skilled and qualified workforce, while SMEs (small and medium enterprises) tend to use them to gain marketing advantage, particularly for those SMEs or start-ups in emerging industries. The study concludes that Taiwan's innovation capacity is heavily reliant on building the capability of SMEs and continues to depend greatly on government leadership through technology-capability-enhancing institutions such as ITRI.