Going metric--is it for you? : a planning model for small manufacturing companies.

Mode of access: Internet.

Technological and organisational change in small- to medium-sized manufacturing companies:a learning organisation perspective

This paper examines the extent to which a learning organisation perspective is attainable in small- to medium-sized manufacturing companies. An audit tool is developed from the literature on organisational learning and recognised processes that lead towards becoming a learning organisation. The paper focuses on the application of the audit tool in three UK automotive component suppliers which are all experiencing pressures for change imposed by the major vehicle manufacturers. The main changes are concerned with tiering of the supply chain and substantial delegation of responsibilities to component suppliers including an increasing emphasis on innovation and continuous improvement. The companies presented in the paper are taken from a research project into the impact of changes in supply chain relationships on the operation of small- and medium-sized manufacturing firms in the West Midlands region of the UK. The ways in which the companies are responding to change are presented together with the results of a self-assessment using the developed audit tool. These results suggest that companies of this type tend to focus on change in those areas that involve least challenge to the established power and authority of management.

Impacts of flood hazards on small and medium companies:strategies for property level protection and business continuity

Worldwide floods have become one of the costliest weather-related hazards, causing large-scale human, economic, and environmental damage during the recent past. Recent years have seen a large number of such flood events around the globe, with Europe and the United Kingdom being no exception. Currently, about one in six properties in England is at risk of flooding (EA, 2009), and the risk is expected to further increase in the future (Evans et al., 2004). Although public spending on community-level flood protection has increased and some properties are protected by such protection schemes, many properties at risk of flooding may still be left without adequate protection. As far as businesses are concerned, this has led to an increased need for implementing strategies for property-level flood protection and business continuity, in order to improve their capacity to survive a flood hazard. Small and medium-sized enterprises (SMEs) constitute a significant portion of the UK business community. In the United Kingdom, more than 99% of private sector enterprises fall within the category of SMEs (BERR, 2008). They account for more than half of employment creation (59%) and turnover generation (52%) (BERR, 2008), and are thus considered the backbone of the UK economy. However, they are often affected disproportionately by natural hazards when compared with their larger counterparts (Tierney and Dahlhamer, 1996; Webb, Tierney, and Dahlhamer, 2000; Alesch et al., 2001) due to their increased vulnerability. Previous research reveals that small businesses are not adequately prepared to cope with the risk of natural hazards and to recover following such events (Tierney and Dahlhamer, 1996; Alesch et al., 2001; Yoshida and Deyle, 2005; Crichton, 2006; Dlugolecki, 2008). For instance, 90% of small businesses do not have adequate insurance coverage for their property (AXA Insurance UK, 2008) and only about 30% have a business continuity plan (Woodman, 2008). Not being adequately protected by community-level flood protection measures as well as property- and business-level protection measures threatens the survival of SMEs, especially those located in flood risk areas. This chapter discusses the potential effects of flood hazards on SMEs and the coping strategies that the SMEs can undertake to ensure the continuity of their business activities amid flood events. It contextualizes this discussion within a survey conducted under the Engineering and Physical Sciences Research Council (EPSRC) funded research project entitled “Community Resilience to Extreme Weather — CREW”.

A case study analysis on information and communication technology usage in small logistics service companies

The impact of ICT (information and communications technology) on the logistics service industry is reshaping its organisation and structure. Within this process, the nature of changes resulting from ICT dissemination in small 3PLs (third party logistics providers) is still unclear, although a large number of logistics service markets, especially in the EU context, are populated by a high number of small 3PLs. In addition, there is still a gap in the literature where the role of technological capability in small 3PLs is seriously underestimated. This gives rise to the need to develop investigation in this area. The paper presents the preliminary results of a case study analysis on ICT usage in a sample of 7 small Italian 3PLs. The results highlight some of the barriers to effective ICT implementation, as well as some of the critical success factors.

A beszerzés helye és szerepe a kis és középvállalatok gyakorlatában = The role of purchasing in small and medium sized companies

A tanulmány a szakirodalom azon egyre szélesedő részéhez járul hozzá, amely a kis és középvállalatok gyakorlatával, sajátosságaik vizsgálatával foglalkozik. Egy speciális aspektust emel ki, mely a hazai nagyvállalati működésben jelentős fejlődésen ment keresztül azzal, hogy a KKV-k beszerzési sajátosságainak megismerését célozza meg. Az áttekintő kép kialakításához a nemzetközi szakirodalomban elérhető empirikus eredményeket és a BCE-n folyó Versenyképesség Kutatás kérdőíves adatbázisának válaszait dolgozza fel. Olyan kérdéseket emel ki, mint a beszerzés szerepe a KKV-k működésében és az azt befolyásoló tényezők illetve a beszerzési gyakorlat sajátosságai. _________ Small and medium sized enterprises play an important role in every economy. This article aims to contribute to the growing number of literature focusing on SMEs management practice. It highlights a management field, which has gone through a significant development in large companies’ practice as it investigates the purchasing and supplier management related issues. The overview is based on a review of literature and the analysis of the survey database of Competitiveness Research of CUB. It highlights such topics as the role of purchasing in SMEs, factors influencing the perceived importance and the purchasing practice of SME-s.

Relationship marketing in Latin American context: Implications for small Finnish software companies in Latin American B2B partnerships

After a productivity decrease of established national export industries in Finland such as mobile and paper industries, innovative, smaller companies with the intentions to internationalize right from the start have been proliferating. For software companies early internationalization is an especially good opportunity, as Internet usage becomes increasingly homogeneous across borders and software products often do not need a physical distribution channel. Globalization also makes Finnish companies turn to unfamiliar export markets like Latin America, a very untraditional market for Finns. Relationships consisting of Finnish and Latin American business partners have therefore not been widely studied, especially from a new-age software company’s perspective. To study these partnerships, relationship marketing theory was taken into the core of the study, as its practice focuses mainly on establishing and maintaining relationships with stakeholders at a profit, so that the objectives of all parties are met, which is done by a mutual exchange and fulfillment of promises. The most important dimensions of relationship marketing were identified as trust, commitment and attraction, which were then focused on, as the study aims to understand the implications Latin American business culture has for the understanding, and hence, effective application of relationship marketing in the Latin American market. The question to be answered consecutively was how should the dimensions of trust, commitment and attraction be understood in business relationships in Latin America? The study was conducted by first joining insights given by Latin American business culture literature with overall theories on the three dimensions. Through pattern matching, these insights were compared to empirical evidence collected from business professionals of the Latin American market and from the experiences of Finnish software businesses that had recently expanded into the market. What was found was that previous literature on Latin American business culture had already named many implications for the relationship marketing dimensions that were relevant also for small Finnish software firms on the market. However, key findings also presented important new drivers for the three constructs. Local presence in the area where the Latin American partner is located was found to drive or enhance trust, commitment and attraction. High-frequency follow up procedures were in turn found to drive commitment and attraction. Both local presence and follow up were defined according to the respective evidence in the study. Also, in the context of Finnish software firms in relationships with Latin American partners, the national origins or the foreignness of the Finnish party was seen to enhance trust and attraction in the relationship

Do programs to improve business performance in small and medium manufacturing enterprise improve opportunity recognition?

Increasing awareness of the benefits of stimulating entrepreneurial behaviour in small and medium enterprises has fostered strong interest in innovation programs. Recently many western countries have invested in design innovation for better firm performance. This research presents some early findings from a study of companies which participated in an holistic approach to design innovation, where the outcomes include better business performance and better market positioning in global markets. Preliminary findings from in-depth semi-structured interviews indicate the importance of firm openness to new ways of working and developing new processes of strategic entrepreneurship. Implications for theory and practice are discussed.

Unintended consequences of regulatory reporting requirements for small and medium size construction entities : Australian evidence

The Queensland Building Services Authority (QBSA) regulates the construction industry in Queensland, Australia, with licensing requirements creating differential financial reporting obligations, depending on firm size. Economic theories of regulation and behaviour provide a framework for investigating effects of the financial constraints and financial reporting requirements imposed by QBSA licensing. Data are analysed for all small and medium construction entities operating in Queensland between 2001 and 2006. Findings suggesting that construction licensees are categorizing themselves as smaller to avoid the more onerous and costly financial reporting of higher licensee categories are consistent with US findings from the 2002 Sarbanes-Oxley (SOX) regulation which created incentives for small firms to stay small to avoid the costs of compliance with more onerous financial reporting requirements. Such behaviour can have the undesirable economic consequences of adversely affecting employment, investment, wealth creation and financial stability. Insights and implications from the analysed QBSA processes are important for future policy reform and design, and useful to be considered where similar regulatory approaches are planned.

Trust, reputation and the small firm : building online brand reputation for SMEs

Social media provides numerous opportunities for small businesses to promote their products and services, build brand communities and reach diverse market niches. An important factor in seizing these opportunities is developing trust and creating reputation among consumers. This qualitative study examines how a group of Australian small business managers utilize social media websites to connect to, communicate with and maintain their customer base. For the purpose of this paper we are using case studies of four companies physically based in Victoria, Australia. These businesses have a high presence in online consumer groups, being both active members of communities and representatives of their businesses. The duality of their role as participant and company representative imposes difficulties in creating reputation among community members. We have used in-depth interviews as a primary research method, additionally monitoring their activities on social media sites such as forums, social networking services, blogs and micro-blogs. We have identified practices helpful for developing trust, building reputation and create a brand image in online communities.

Improving opportunity recognition and business performance in small and medium manufacturing enterprises through design innovation programs

Increasing awareness of the benefits of stimulating entrepreneurial behaviour in small and medium enterprises has fostered strong interest in innovation programs. Recently many western countries have invested in design innovation for better firm performance. This research presents some early findings from a study of companies that participated in a holistic approach to design innovation, where the outcomes include better business performance and better market positioning in global markets. Preliminary findings from in-depth semi-structured interviews indicate the importance of firm openness to new ways of working and to developing new processes of strategic entrepreneurship. Implications for theory and practice are discussed.

The engagement of small to medium enterprises for managing waste in building retrofit projects

The market of building retrofits is increasingly more intensified as existing buildings are aging. The building retrofit projects involve existing buildings which impose constraints on stakeholders throughout the project process. They are also risky, complex, less predictable and difficult to be well planned with on-site waste becoming one of the critical issues. Small and Medium Enterprises (SMEs) carry out most of the work in retrofit projects as subcontractors, but they often do not have adequate resources to deal with the specific technical challenges and project risks related to waste. This paper first discusses the requirements of waste management in building retrofit projects considering specific project characteristics and work natures, and highlights the importance of involving SMEs in waste planning and management through an appropriate way. By utilizing semi-structured interviews, this research develops a process model for SMEs to be applied in waste management. A collaboration scenario is also developed for collaborative waste planning and management by SMEs as subcontractors and large companies as main contractors. Findings from the paper will promote coordination of project delivery and waste management in building retrofit projects, and improve the involvement and performance of SMEs in dealing with waste problems.

Examining corporate governance disclosures of listed companies in Fiji

In 2009, the Capital Markets Development Authority (CMDA) - Fiji’s capital market regulator - introduced the Code of Corporate Governance (the Code). The Code is ‘principle-based’ and requires companies listed on the South Pacific Stock Exchange (SPSE) and the financial intermediaries to disclose their compliance with the Code’s principles. While compliance with the Code is mandatory, the nature and extent of disclosure is at the discretion of the complying entities. Agency theory and signalling theory suggest that firms with higher expected levels of agency costs will provide greater levels of voluntary disclosures as signals of strong corporate governance. Thus, the study seeks to test these theories by examining the heterogeneity of corporate governance disclosures by firms listed on SPSE, and determining the characteristics of firms that provide similar levels of disclosures. We conducted a content analysis of corporate governance disclosures on the annual reports of firms from 2008-2012. The study finds that large, non-family owned firms with high levels of shareholder dispersion provide greater quantity and higher quality corporate governance disclosures. For firms that are relatively smaller, family owned and have low levels of shareholder dispersion, the quantity and quality of corporate governance disclosures are much lower. Some of these firms provide boilerplate disclosures with minimal changes in the following years. These findings support the propositions of agency and signalling theory, which suggest that firms with higher separation between agents and principals will provide more voluntary disclosures to reduce expected agency costs transfers. Semi-structured interviews conducted with key stakeholders further reinforce the findings. The interviews also reveal that complying entities positively perceive the introduction of the Code. Furthermore, while compliance with Code brought about additional costs, they believed that most of these costs were minimal and one-off, and the benefits of greater corporate disclosure to improve user decision making outweighed the costs. The study contributes to the literature as it provides insight into the experience of a small capital market with introducing a ‘principle-based’ Code that attempts to encourage corporate governance practices through enhanced disclosure. The study also assists policy makers better understand complying entities’ motivations for compliance and the extent of compliance.