The management of interdependence and the sharing of vision by micro-finance agencies for new and emerging SMEs

The purpose of this paper is to conceptualise a theoretical model that clarifies the variations in both processes for sharing vision and interdependence of the lender and the SME owner in micro-finance. Processes for sharing vision and interdependence are possible predictors of the effective tacit and explicit knowledge generation/utilization of a micro-finance agency – SME owner relationship. For new and emerging SMEs the micro-finance agency can provide a critical role in their development. Micro-finance agencies can provide a mechanism in economic development that enables SMEs to have greater speed to markets. The focus of this paper is on the relationship between the micro-finance lending officer and the SME owner. Specifically, the model developed in this paper informs understanding the nature of knowledge generation/utilization between micro-finance agencies and SMEs. Effective generation/utilization facilitates the assessment of the risk for investment. The model clarifies the variations between interdependence and the development of processes for sharing of vision. When you have high interdependence (characterised by good cooperation) and effective processes for sharing of vision, an environment of effective knowledge generation/utilization is likely to be created between the micro-finance agency and the SME owner. The model proposes that the effective management of both tacit and explicit knowledge between the micro-finance agency and SMEs supports them to reach their markets. Implications of this research for SMEs and micro-finance agencies include the increase of knowledge and understanding of SME processes.

New descriptions and understandings of internationalisation: A tale of knowledge-intensive SMEs

This research seeks to generate and foster new descriptions and understandings of processes underlying the internationalisation experienced by small- and medium-sized, knowledge-intensive enterprises. The longitudinal study centres on the growth and internationalisation of a cluster of small- and medium-sized enterprises (SMEs) in the most southern state of Australia, of which a number were 'bom global.' It draws on both retrospective data such as corporate archives, as well as observations and interviews as events unfolded over a period of eighteen months to garner insights into processes underlying the SMEs' internationalisation. The approach to inquiry is influenced by an epistemology of social constructionism, interpretive narrative, sensemaking and dramaturgical theoretical perspectives, and elements of cultural anthropology. Exploratory in the early stages, a funnel approach characteristic of ethnographic enquiry was used whereby the study became progressively focused over time. The extended period of fieldwork led to observations and interpretations that cast the retrospective data in new light, and the use of the construct 'legitimacy' as a lens through which to view activities and events infusing the firms' internationalisation. A generic narrative scheme that offers a temporal ordering of actions, context and meaning attributions in relation to legitimation behaviours and internationalisation processes is developed. This narrative scheme is then used to garner a deeper understanding of three activities that were central to the firms' internationalisation over time: the choice of geographic export markets, strategic participation in international standard-setting committees, and portfolio entrepreneurship. In addition, the study offers a rich story of the growth and internationalisation of the cluster of knowledge-intensive SMEs. The tale of growth and internationalisation pursued by the cluster of knowledgeintensive SMEs spans the period from 1975 to mid 1997, and may prove a useful resource for the theorising of others.

Towards an inter-organisational knowledge transfer framework for SMEs

This paper aims to develop a framework for SMEs to help them understand, and thus to improve, the process of knowledge exchange with their customers or suppliers. Through a review of the literature on knowledge transfer, organisational learning, social network theory and electronic networks, the key actors, key factors and their relationships in the process are identified. Finally, a framework containing all above points is proposed.

Toward understanding inter-organizational knowledge transfer needs in SMEs:insight from a UK investigation

Purpose - External knowledge is generally believed to be of prime importance to small to medium-sized enterprises (SMEs). However, a review of the literature shows that no empirical research has looked at knowledge management issues at the inter-organizational level in SMEs. This paper seeks to report on an empirical investigation with UK SMEs in the service sector to identify their needs and practices regarding inter-organizational knowledge transfer, and thus provide empirical evidence to support the above belief. Design/methodology/approach - A two-tier methodology (i.e. using both questionnaire survey and interview approaches) is deployed to address the main research objectives. A questionnaire survey of SMEs is carried out to investigate their current inter-organizational knowledge transfer situation and managers' perception on various relevant issues. Then 12 face-to-face interviews with SME managers are conducted to further validate key findings drawn from the questionnaire survey. Findings - The empirical evidence collected from the survey and interviews confirms the general belief that external knowledge is of prime importance for SMEs, and demonstrates that SMEs have very strong needs for external knowledge and inter-organizational knowledge transfer. Research limitations/implications - The findings provide very strong underpinning for further theoretical research on inter-organizational knowledge transfer in SMEs. However, this study has certain limitations: its results may not be applicable to other industrial sectors or the same sector in other countries; or to micro or large companies; nor does it involve cross-cultural issues. Originality/value - By adopting a two-tier research methodology, this study provides more reliable understanding and knowledge on SMEs' inter-organizational knowledge transfer needs and practices, and fills the gap that exists in the empirical investigations on the subject. © Emerald Group Publishing Limited.

The 'voice' approach of trade associations:support for SMEs accessing a research institute

Access to external sources of technical knowledge is one of the keys to staying innovative for small and medium-sized enterprises (SMEs). The literature suggests that SMEs with a weak internal R&D capacity do not make much use of institutional sources like research institutes and universities. In this paper I investigate how trade associations can induce member SMEs to use a research institute. The case of a public research institute and SMEs in the textile industry in Kyoto, Japan is examined. Evidence from the case suggests that trade associations facilitate the use of the institute by expressing a collective `voice' to the management of the institute. The effect is evident among active members in the use of services involving a large information gap as to their benefits. I also consider a shortcoming of the collective approach and suggest some measures to be taken on the part of research institutes.

Impact of the length of relationships upon the use of research institutes by SMEs

Recent studies of US industrial modernisation programmes argue that difficulties of establishing long-term relationships with users prevent them from facilitating development of innovation capabilities. The paper supports this argument through a survey of Japanese research institutes the US programmes were modelled on. In view of information asymmetries in their use, it tests the hypothesis that small and medium-sized firms start using the research institutes with ‘low information gap’ services and gradually move on to ‘high information gap’ services that often require more absorptive capacity. This is demonstrated both under one-to-one relationships and between groups of firms and a research institute.

An investigation of SMEs’ inter-organisational knowledge transfer needs in Internet marketing

Internet marketing, as a key area of e-commerce, plays an important role in SMEs’ e-commerce success. It is the use of Internet technologies in facilitating and supporting marketing activities. Its implementation and success require expert knowledge and extensive experience. SMEs admit that they are willing to embrace Internet marketing to enhance their business competitiveness, but do not know where to start and suffer from a lack of guidance. Evidence suggests that Internet marketing analysis is one of the most needed areas of training in e-commerce for SMEs. It is therefore evident that SMEs need to acquire Internet marketing knowledge from external sources. However, the majority of the literature fails to study what specific knowledge they need and from whom they should acquire the knowledge. This paper has addressed these issues through a questionnaire survey of UK SMEs in the service sector. It identifies SMEs’ specific transfer needs for Internet marketing knowledge, and discusses strategic issues for improving SMEs’ effectiveness of leveraging knowledge.

Development and application of an electronic-manufacturing selection framework for SMEs

With a wide diversity of available technologies, it is extremely problematic for SMEs to identify, plan, prioritize and use the correct strategy. Electronic-manufacturing has been evolving for some time, but currently an effective planning framework to assist managers with implementing electronic-manufacturing planning is still lacking. A framework, built around three elements: the Balanced Scorecard, Quality Function Deployment and Value Chain Analysis, is proposed here to assist SMEs in managing complexity in e-manufacturing planning. A case study, carried out in Singapore, demonstrates the practicality and utility of the framework in the context of a real business environment. © World Scientific Publishing Company.

Employability and the psychological contract in European ICT sector SMEs

This article explores the employability of information and communication technology (ICT) professionals from the perspective of small- and medium-sized enterprises (SMEs). The first stage of analysis, based on over 100 interviews with managers of ICT supplier companies in seven European countries (Germany, Greece, Italy, the Netherlands, Norway, Poland and the UK), showed most SMEs to have a generally ad hoc approach to managing the employability of their ICT professionals. Assessment and development plans were used primarily to keep skills current to business needs; however, the more developed northern European markets showed greater awareness of the ‘high commitment’ benefits of a more sophisticated approach towards career management (e.g. through mentoring or career planning). A second stage of analysis based only on UK interviews builds on this to propose a model of positive employer influence on psychological contracts through career and employability management practices.