Pervasive limitations : innovating with ambient intelligence (AmI) technologies and restricted absorptive capacity in Australian SME manufacturers

The last 25 years have seen rapid increases in the number and sophistication of technological and process innovations in large manufacturers, producing dramatic improvements in productivity and efficiency. However, smaller manufacturers’ adoption of such innovations has been uneven. Ambient Intelligence (AmI) technologies are being positioned as the next performance and productivity enhancing purchase for manufacturers. This paper defines and gives examples of AmI technologies in current use, summarises AmI technologies of potential interest to small and medium enterprise (SME) manufacturers, and identifies potential impacts of restricted absorptive capacity in SMEs on the adoption of AmI technologies. Comparing two SME manufacturers, one from Germany and one from Australia illustrates a potential application of generic AmI technology based business solutions to a range of SME manufacturers.

Inter-relationships between innovation and market orientation in SMEs

Purpose – This study aims to explore the nature of the interactions between two strategies, innovation and market orientation. By examining the components of these constructs the paper seeks to identify key components of market orientation that are antecedent factors of the innovation performance of the firm.

Design/methodology/approach – Correlation analysis was undertaken on data from a survey of 73 manufacturing firms in the Greater Western Sydney economic development zone in Australia. The data were supplemented by information obtained from the firm's annual reports.

Findings – Innovation was found to be positively correlated to market orientation (customer orientation, competitor orientation and inter-functional co-ordination) and both of these constructs were found to be positively correlated to firm performance and the degree of change in the firm's competitive environment.

Research limitations/implications – Possible limitations are: the low survey response rate; the nature of the sampled population; and the spread of industries involved, which could limit the generalisability of the results. The next steps will be to conduct deeper analysis into the factors that make up the subscales of the two constructs and to determine how market orientation or its associated activities interact with the innovation process.

Practical implications – In order to maximize a firm's financial performance, organizations should increase both their market orientation and their innovation activities as these factors operate synergistically.

Originality/value – This study is arguably the first to establish the finding that the degree of change in the competitive environment and the level of market orientation are linked, and the identification of the components of market orientation that are linked to firm innovation. These findings suggest that firm innovation and firm market orientation are strategic reactions to changes in the firm's competitive environment.

An empirical study of high performance HRM practices in Chinese SMEs

This paper explores the performance effects of human resource management (HRM) practices in 74 Chinese small and medium-sized enterprises (SMEs). Four high performance HRM practices are identified: performance-based pay, participatory decision-making, free market selection, and performance evaluation. Regression analysis results support the conventional idea that the adoption of HRM practices generates better HRM outcomes and, in turn, better HRM outcomes contribute positively to firm performance. However, not all HRM practices, and their effects, led to improved SME performance. Among the Chinese SMEs investigated, a high level of employee commitment was identified as being the key HRM outcome for enhancing performance.

Enhancing Chinese SME performance through innovative HR practices

Purpose – The purpose of this paper is to show how understanding of human resource (HR) management practices which have been adopted in the emerging markets such as that in China is particularly interesting to academia and management practitioners. The purpose of this study is to shed some light on the implementation of innovative HR practices among 74 Chinese small and medium-sized enterprises (SMEs) and to explain how the HR practices influence their firm performance.

Design/methodology/approach – Cluster analysis is used to group Chinese SMEs according to their adoption of innovative human resource (HR) practices and examine how the practices are associated with HR outcomes and firm performance.

Findings – It is found that the membership of clusters is influenced by several factors, including ownership, age and size of firms. These characteristics have influenced the motivation, capacity and ability of firms in the sample to adopt high performance human resource practices. The extent to which firms have adopted innovative human resource practices is shown to be closely associated with human resource outcomes and firm performance.

Originality/value – The key implication is that SMEs, especially those rapidly developing domestic and collectively owned small firms, as well as those state-owned enterprises in China, may see clearly the benefits of devoting greater attention to HR practices to achieve their future growth potential.

Internationalisation of SMEs : European comparative studies

We examine new research on the internationalisation of Small and Medium-sized Enterprises (SMEs) in 27 European countries. We find that, in both established market economies and in transition economies, SME international entrepreneurship is driven by internal resources and capabilities, membership in networks or clusters, favourable government policies, economy, competitive market conditions, and industry structure. We then develop a conceptual model and propositions of the drivers of European SME internationalisation. Our findings have important implications for managers in improving their firms' international market performance.

The relationship between knowledge management strategic orientation and business strategic orientation among SMEs

Little is known about how Small and Medium Sized Enterprises (SMEs) practise Knowledge Management (KM) from both a theoretical and empirical perspective. Some research has been conducted in this field but from a western cultural perspective. Research on KM and SMEs in developing countries such as Saudi Arabia is limited. The research reported in this paper investigated KM strategic orientations and business strategic orientations in Saudi Arabian SMEs. The research involved the development of a theoretical framework relating to KM strategies and business strategies. Three KM strategies were proposed: aggressive, conservative and balanced and were linked to Miles and Snow’s typology: prospectors, defenders and analysers respectively. The empirical research involved a survey of Saudi Arabian SMEs. A total of 143 SMEs, participated in the survey. The results indicate that the proposed classifications and relationships between KM strategic dimensions were valid. It further shows that there was an association between business strategy and KM strategy exists and the proposed linkage between: prospectors and aggressive KM strategy, defenders and conservative KM strategy and analysers and balanced KM strategy were mostly confirmed but with some inconsistency regarding knowledge breadth dimensions.

Australian construction SME : management implication of TQM implementation

SME play a major role in the economies and TQM is important in construction industry. The aim of this paper is to investigate, via extensive literature reviews, the management implication of Australian construction SME implementing TQM. In summary, there are four management perspectives: construction management, knowledge management, supply chain management and marketing management to enhance competitive advantage that may favour commercial viability. One can reasonably conclude that the quality improvements will greatly help to create long term commercial advantages.

An empirical study of the influence of different organisation cultures on e-commerce adoption maturity

Drawing on Cameron and Quinn’s organisational cultures typology that defines four types of organisational culture (i.e., clan, adhocracy, market, and hierarchy), and Daniel et al.’s four-stage model of e-commerce adoption, this paper empirically examines the influence of different organisational cultures on e-commerce adoption maturity in small and medium-sized enterprises (SMEs) in Sri Lanka. The result indicates a positive correlation between adhocracy culture and e-commerce adoption. However, those firms with hierarchy cultural characteristics indicate a negative correlation in relation to e-commerce adoption. The organisational culture differences explain these issues.

Australian SMEs waste to landfill

Landfill waste has a negative impact on the environment and small and medium sized enterprises (SMEs) are believed to be significant contributors. There is little government or scholarly research, however, quantifying the collective volume of waste SMEs send to landfill. Where studies do exist they measure total volumes (landfill and recycling combined) and/or do not distinguish between specific waste streams (e.g. wood) and subcategories (e.g. dust). This paper contributes to knowledge by giving insight into the collective volume of waste of 404 SMEs, reconceptualising SME waste into subcategories and by measuring landfill volumes. It presents findings from these 404 Australian SMEs which found that, in descending order, cardboard, paper, plastic wrap, wood dust and particleboard were the subcategories these SMEs sent to landfill in the greatest volumes. It also argues that this reconceptualisation, and associated data collection protocols, have the potential to enable scholars and policy makers to determine the waste subcategories to which SMEs contribute most, formulate targeted interventions and research or evaluate environmental outcomes. © 2014 © 2014 Environment Institute of Australia and New Zealand Inc.

SMEs and the potential for a collaborative path to environmental responsibility

Globally, the potential for small and medium-sized enterprises (SMEs) to collectively impact negatively on the environment is great. Therefore, the adoption, and maintenance, of environmentally responsible practices by this group of firms is especially critical. Studies of environmental practices successfully implemented by small firms have revealed that relationships with other firms, or other organizations, can contribute to greater awareness of the benefits of such activities and, therefore, enhance the possibility of environmental engagement. Collaborative relationships may provide opportunities for SMEs to overcome some of the barriers to implementing environmental initiatives associated with their size, and/or associated characteristics. This paper focuses on attitudes of SME owner-managers to a variety of environmental issues (including regulation and voluntary standards), and to collaborating with other firms (in either a formal or informal sense). The data this paper draws upon are from two waves of an ongoing longitudinal survey of New Zealand SMEs.

Energy performance of medium-sized healthcare buildings in Victoria, Australia- a case study

This paper investigates the energy performance of three medium-sized healthcare buildings in Victoria, Australia, that operate only during the daytime. The aim is to provide preliminary understanding of energy consumption in this particular typology in Australia in relation to the available benchmarks. This paper also identifies the differences of energy consumption between different functional areas within medium health facilities. Building features and operational characteristics contributing to the variations in healthcare energy performance are discussed. The total annual energy consumption data ranging from 167-306 kWh/m(2) or 42-72 kWh/m(3) were compared against international data from various climatic zones. Some of the drivers of energy consumption were determined and potentials for energy and water conservation were identified. Comparison with international standards shows a possibility to achieve lower energy consumption in Victorian healthcare buildings.

The contours of employee voice in SMEs: the importance of context

This article develops a context-sensitive approach to analyse how and why voice operates in small- to medium-sized enterprises (SMEs), an area that remains under-theorised and under-researched. By building on a priori frameworks with proven ability to unpack complexity and take account of the wider context of SMEs, this article explores how resources (human and social capital) and constraints (product market, labour market and strategic orientation) interact to shape voice practices. The article finds significant differences between 'reported' compared with 'actual' practices in situ, and identifies different types of firms ('strategic market regulation', 'strategic market-led' and 'non-strategic market-led') along with the factors that influence the form and practice of voice. Overall, the article argues that researchers should further pursue research that appreciates the layered nature of ontology and the role played by firm context to explain complex organisational phenomena, if we are to advance our understanding of voice practices in SMEs and beyond.

How do SMEs with single and multiple owners finance their operations differently? Empirical evidence from China

We study the impact of firm-level characteristics on the capital structures of private small and medium-sized enterprises (SMEs) as well as the differences between the capital structures adopted by SMEs with single and multiple owners in China. Our findings highlight the limited use of asset-based financing by Chinese SMEs. We also find that the propensity of SMEs with single-owners to use external debt was significantly less than those with multiple owners. Furthermore, our findings suggest that single-owned firms are subject to a more constrained pecking order than those with multiple owners.

Ownership concentration and product innovation in Chinese private SMEs

Product innovation is extremely important to the growth, success, and ultimate survival of firms. Although its unique features in small and medium-sized enterprises (SMEs) have gained growing attention in the literature, there is limited knowledge as to how ownership concentration moderates the relationship between product innovation and its determinants. Based upon insights from agency and institutional theories, we examine the moderating effects of ownership concentration on the relationship between product innovation and its key determinants in Chinese SMEs, utilizing a large dataset of 43,728 Chinese firms over the period 2005-2006. We focus on examining the differences between single-owner SMEs, where there is dominant control of one family member, and multiple-owner SMEs, where principal-agent conflicts and principal-principal conflicts are more likely to occur. Our findings indicate that single-owned firms tend to convert research and development into product innovation more efficiently than firms with multiple owners, who are typically better at utilizing external sources of knowledge and human capital.