Integrated Management System Implementation in SMEs: A Proposed model for Organisational Performance and Sustainability (Published)
Management systems are important for any organization especially to small and medium enterprises (SMEs) that face limitations in areas that larger firms have stability. One of the approaches to overcome these challenges and maintain business growth is implementing and following an integrated management system (IMS), as a model for improving the organizational performance and to maintain sustainable growth in a business. SMEs are global leaders in providing employment opportunities – around 60-70 % in developed economies and 99% of all business in OECD countries, hence sustaining them and enhancing their performance in the business market over larger firms is critical to retain employment opportunities in the future. IMS provides internal and external benefits, especially being more feasible and appropriate for SMEs by increasing competitiveness, stability in business, effective resources management and resilience during market challenges. However, it’s important to focus on the specific characteristics and factors that determine SMEs effective implementation of IMS. To overcome the various barriers limiting their business growth and organizational performance, the proposed conceptional model developed through this research study in conjunction with the associated factors would enable SMEs to effectively implement IMS to achieve organizational performance and sustainability. SMEs in order to maintain a competitive nature in the emerging business markets must adopt different strategies and mechanisms to address the challenges in technology and innovation, which are the prime impacting factors that define a clear road map for sustainable growth.
Keywords: Integrated, Organisation, Performance, SMEs, Sustainability, management system
Digital Transformation for Small & Medium Enterprises (SMEs): with Special Focus on Sri Lankan Context as an Emerging Economy (Published)
Small & Medium Enterprises (SME’s) constitutes for over 75% of the number of enterprises in Sri Lanka and contribute to 52% of the GDP of Sri Lankan economy. In any case, the development and extension of SME’s are constrained due to a multitude of factors that are yet to be investigated. Competition is often intense for SME’s in Sri Lanka and they can neither influence price nor quantity. The standard view of competitive advantages on differentiation or cost is a challenge for SME’s. They are probably not going to have the option to “lock” in clients and providers, build entry barriers or altogether lower cost. SME’s usually have limited resources in finance, skilled employees, in-house knowledge or management. Meanwhile, digital transformation is featured in many businesses enabling reshaping the strategy and business models. SMEs are also found as empirically investigated context with the concept of digitalization, but still further studies are claimed on it. Accordingly, this paper investigates how SMEs could be benefitted with digital transformation as a strategic initiation whilst challenges and cases are discussed in line within. It has followed comprehensive literature review as the main research tool and the paper is framed as a concept paper with the discussion on empirical insights. Authors made an attention on Sri Lankan SME sector as a specific context. Finally, it concludes the paper with some research directions and priorities for the future studies.
Keywords: Digital Transformation, SMEs, Sri Lanka, business models, competitive advantages
Perceived Benefit of Computerized Accounting System on the Operational Efficacy of Small and Medium Scale Enterprises in Maiduguri Metropolis (Published)
The aim of this study is to examine the Perceived Benefit of Computerized Accounting System on the Operational Efficacy of Small and Medium Scale Enterprises in Maiduguri Metropolis. The study used primary data only. Questionnaires were administered on the sampled respondents of 182 out of the population of 334. Of the 182 sample size validly and correctly returned questionnaires for data analysis was 124. The sampled respondents were in three categories: Non Automated (NA); Partially Automated (PA); and Fully Automated (FA). The Data were analyzed using descriptive analysis and test of hypothesis formulated using SPSS 20.0. The Hypothesis was tested using Analysis of Variance (ANOVA). The results obtained indicted significant differences in the test (i.e. P ≥ 0.05). The study found out that there was operational efficacy in terms of receivables accounts management. The study recommends that SMEs should embrace the use of CBAS for better competitiveness, improvement in business operation and performance.
Keywords: Computerized Accounting System (CAS), Operational Efficacy, Receivables accounts, SMEs
Relationship between Risk-Taking and Business Performance among Small and Medium Enterprises in Eldoret Town, Kenya (Published)
The measure of entrepreneurial activity in an organization is the level of creativity and innovation across all its operations. How intense the creative and innovative disposition is determined by the success of organizations as reflected in performance outcomes. The purpose of the study was to examine the relationship between entrepreneurial intensity and performance of small and medium enterprises in Eldoret town, Kenya. Informed by the study, this paper explores the influence of risk-taking on the performance of SMEs in Eldoret town. The study adopted an ex-post facto research design. It targeted all the SMEs in Eldoret town. Systematic sampling technique was adopted to select a sample of 100 SME owners/managers to be involved in the study. The collected data was analysed using both descriptive and inferential statistics. Descriptive statistics was presented in form of percentages, frequencies, pie charts and graphs. Pearson correlation was employed to test the hypotheses of the study. The study established that there is a strong positive correlation between risk-taking and business performance of SMEs in Eldoret town. Therefore, committing business resources to venture in uncertain and unfamiliar environments could result in increased returns and market share for the business.
Keywords: Business Performance, Eldoret Town, Kenya, Medium Enterprises, SMEs, Small, risk-taking
SERVICE QUALITY AS A CATALYST FOR CUSTOMER SATISFACTION OF SMALL AND MEDIUM SIZED ENTERPRISES (SMES) IN KITALE MUNICIPALITY,KENYA (Published)
Service quality and customer satisfaction is an important ingredient in addressing global challenges, such as customer satisfaction and service quality. Service quality influences customer satisfaction because with an excellent service provided to the customers, their needs and expectations are met and as a result it improves customer satisfaction and helps create a good image of the company and bring positive reactions to potential customers mind. Despite this attention, little empirical research has been performed about relationship-marketing practices among SMEs, especially those in developing countries. This study is intended to investigate the effects of service quality on customer satisfaction in Kitale town. Stratified sampling was used to divide the Central Business District in terms of streets. Systematic random sampling was used to select SMEs from each street to obtain a sample size of 146 SMEs where customers was interviewed from each SME making a total of 146 customers involved in this research work. Findings reveals that service quality highly affect customer satisfaction positively (β2=0.396, P<0.05). All the beta values were significant at 0.05 level of significance. Hence it is recommended that managers should focus on developing appropriate competencies in service quality since it has a positive impact on customer satisfaction.
Keywords: Customer Satisfaction, SMEs, Service Quality