• Title/Summary/Keyword: Manufacturing SMEs

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The Role of Industrial Clustering and Manufacturing Flexibility in Achieving High Innovation Capability and Operational Performance in Indonesian Manufacturing SMEs

  • Purwanto, Untung Setiyo;Kamaruddin, Shahrul;Mohamad, Norizah
    • Industrial Engineering and Management Systems
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    • v.14 no.3
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    • pp.236-247
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    • 2015
  • This study aims to examine the effects of industrial clustering and manufacturing flexibility on innovation capability and operational performance. This study follow a survey method to collect data pertaining to the phenomena of industrial clustering, manufacturing flexibility, innovation capability, and operational performance by utilizing a single respondent design. A total of 124 Indonesian manufacturing SMEs are taken to test the proposed theoretical model by utilizing covariance-based structural equations modeling approach. It was found that both industrial clustering and manufacturing flexibility was positively associated with operational performance and innovation capability as well. In addition, innovation capability may account for the effects of industrial clustering and manufacturing flexibility on operational performance. This implies that manufacturing SMEs have to reorient their production and operation perspectives, including agglomerate with other similar or related SMEs to develop and utilize their own resources. The SMEs also need to possess some degree of manufacturing flexibility in respond to the uncertain environment and market changes. In addition, the SMEs should put a greater emphasize to use industrial cluster and manufacturing flexibility benefits to generate innovation capability to achieve high performance.

An Exploratory Case Study on RPA Introduction for Manufacturing SMEs (중소·중견 제조기업 RPA 도입을 위한 사례 탐색 연구)

  • Kang, Young Sik;Shim, Seon Young
    • The Journal of Information Systems
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    • v.31 no.1
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    • pp.25-58
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    • 2022
  • Purpose The purpose of this study is to analyzes the RPA fitting processes by the casese of manufacturing SMEs(Small and Medium-sized Enterprises) in an exploraty approach. Based on the findings on the RPA fitting processes, we intend to provide a cornerstone for developing a general-purpose RPA introduction model in the future. Design/methodology/approach In this study, empirical cases of RPA fitting processes were analyzed based on interviews with project managers of specialized IT suppliers in charge of RPA development and managers of IT departments of manufacturing SMEs that actually introduced RPA. In order to explore various RPA fitting process in the manufacturing value chain, a total of 7 manufacturing SMEs were interviewed, ranging from companies using a legacy system to companies without a legacy system. Over the primary and secondary activity processes, the details of RPA processes were analyzed in the steps of 'Frequency Identification, Input Processing, Source Identification, Inquiry and Processing, Information Registration, Result Reporting'. Findings From the analysis, we derived some exploratory results that the processes over 0.25 FTE and related with many suppliers and clients are fitting for RPA introduction in manufacturing SMEs Our results will provide basic data for the development of the future general-purpose RPA introduction model for manufacturing SMEs, providing practical reference for RPA introduction.

The Moderating Role of Environmental Turbulence between Learning Orientation and SME Performance in the Manufacturing Sector of Pakistan

  • SAJJAD, Ali;IBRAHIM, Yusnidah;SHAMSUDDIN, Jauriyah
    • Journal of Distribution Science
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    • v.20 no.5
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    • pp.1-11
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    • 2022
  • Purpose: This study attemptsto investigate the moderating effects of environmental turbulence (ET) between learning orientation (LO) and SMEs' performance. Research design, data, and Methodology: To gain insights and provide implications for manufacturing SMEs in Pakistan, this study adopted simple random sampling to collect 379 valid responses. Data were collected through a self-administrative questionnaire from manufacturing SMEs owners/managers. Partial least squares of structural equation modeling have been used to test research hypotheses by using SmartPLS® 3.0 software. Results: The study's primary finding is that LO has a significantly positive effect on SMEs' performance and this relationship is strengthened under the moderating influence of environmental turbulence (ET). Conclusion: Environmental turbulence (ET) enables SMEs to focus on learning capability to get a more competitive advantage. Moreover, SMEs owner/managers ought to emphasize continuous learning that accentuates the capability to compete with environmental changes. Findings support notifying Pakistan's Small and Medium Enterprise Development Authority (SMEDA) in dealings with Manufacturing SMEs in terms of improving their internal capabilities. This research contributes to the literature as it provides a more detailed and in-depth explanation of distribution management-related issues faced by SMEs. This research carries a significant influence on literature and relevant Resource-based view and contingency theories.

A Study on the priority of core competencies for the "Korean Hidden Champion(K Champ)" : Focused on the manufacturing SME's in Gyeongsangnam-do

  • Kim, Yong Gil;Lee, Min Jung
    • Journal of the Korea Society of Computer and Information
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    • v.21 no.11
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    • pp.141-149
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    • 2016
  • In a rapidly changing global environment and the massive development in IT technology, Manufacturing SMEs have difficulties in lack of resources and competencies continued to have strong growth potential "Korean Hidden Champion(K Champ)". In order to overcome the difficulties of Manufacturing SMEs, we examined the core competencies using the AHP and proposed the K Champ development strategy. The implications in the academic is as follows: First, the suggestions for development strategy plan was drawn for the K Champ's core competencies with the recognized importance by the CEO or business executives. Secondly, the manufacturing SMEs were broken down by industry structural characteristics variables(sales amounts, industry sectors, business types and delivery methods) and the importance was investigated, analyzed and clarified. This study is intended to develop strategies of Gyeongsangnam-do manufacturing SMEs for K Champ such as German 'Hidden Champion'. We identified the importance of the level of core competencies and the coherent alternative policy direction and practical alternative were proposed. These mean the concrete relationship of core competencies for the K Champ transition and suggest a realistic directional needed for the local manufacturing SMEs in the proposed 'Government's Development Policy for Korean Hidden Champion'.

Analysis of R&D efficiency for IT SMEs (IT 중소기업의 연구개발투자 효율성 분석)

  • Seo, Hwan-Ju;Gang, Seong-Jin;Kim, Jeong-Eon
    • Journal of Technology Innovation
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    • v.16 no.2
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    • pp.41-63
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    • 2008
  • Employing firm-level data during the period of 1980-2006, this paper analyzes the R&D efficiency of IT SMEs. We focus on comparing the R&D efficiency of IT SMEs with that of large-sized IT firms and non-IT SMEs. The results are summarized as follows. First, the R&D investment of IT SMEs has not been increased since 2000. In IT manufacturing industry, the portion of the R&D investment of IT SMEs is no more than 10.6% in 2005. Second, we analyze the innovation capacity of SMEs with the number of the patent application. The result is similar with the trend of R&D investment. The portion of the patent application of SMEs has not been increased since 2000. Third, the R&D efficiency of non-IT firms is higher than that of IT SMEs regardless of the firm size. The R&D efficiency of non-IT SMEs is over three times as large as that of IT SMEs. Meanwhile, The R&D efficiency of the large-sized non IT firms is 1.86 times as large as that of IT large-sized firms. Finally, we estimate the R&D elasticity and compare between IT manufacturing and service industry. The result shows that the R&D elasticity of IT service industry is higher than that of IT manufacturing industry, regardless of firm size.

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Strategic typologies of Korean SMEs in manufacturing industries (국내 중소기업의 전략유형과 특성;제조업을 중심으로)

  • Lee, Byeong-Heon;Park, Sang-Mun;Son, Byeong-Ho;Jang, Ji-Ho
    • 한국벤처창업학회:학술대회논문집
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    • 2006.04a
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    • pp.139-166
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    • 2006
  • This paper explored strategic types of Korean SMEs in manufacturing industries and investigated key differences among strategic types by analysing firm size, product market, technological capabilities and performances. According to previous studies, this papers categorized SMEs into four strategic types-technological innovative SMEs, multi-product SMEs, capital-intensive SMEs, and OEM-based SMEs types. Based on the empirical survey from 1,077 Korea SMEs in diverse industries, there are significant differences among strategic types on the key characteristics including product market, resource capability and performance. Finally this paper suggested implications for the studies on SMEs and managerial and policy directions to support SMEs.

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The Impact of Innovation Capability of SMEs Companies on Corporate Performance : Focusing on the Mediating Effect of Competitive Advantage (중소기업의 혁신역량이 기업성과에 미치는 영향 : 경쟁우위의 매개효과를 중심으로)

  • Kim, Jong Heon;Koo, Il Seob
    • Journal of the Korea Safety Management & Science
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    • v.22 no.1
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    • pp.51-59
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    • 2020
  • The importance of innovative capability, the driving force behind innovation as a company's intangible resources, is increasing. In general, companies with high innovation capability are more likely to be successful in innovation, which can be expected to have a positive impact on corporate performance. The innovation capacity of SMEs considered in this study is R&D capability and manufacturing capability. The reason for this is that not only the continuous efforts to strengthen the competitiveness of SMEs are focused on stabilizing manufacturing capability, but also considering the situation in which governmental support for SMEs' R&D capability has been actively developed. This study examines whether R&D capability and manufacturing capability have a significant influence on corporate performance and securing competitive advantage, and analyzes whether competitive advantage acts as a mediator between innovation capability and corporate performance through regression analysis. SPSS 23.0 software was used for the empirical analysis of the data obtained through the survey. The research results are as follows. First, both R&D and manufacturing capabilities of SMEs were found to have a significant positive effect on corporate performance. Second, manufacturing capability had a significant effect on securing competitive advantage of SMEs, but R&D capability was not significant. Third, the competitive advantage of SMEs was found to play a mediating role between manufacturing capability and corporate performance.

A Study on the Security Management System for Preventing Technology Leakage of Small and Medium Enterprises in Digital New Deal Environment

  • Kim, Sun-Jib
    • International Journal of Advanced Culture Technology
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    • v.9 no.4
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    • pp.355-362
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    • 2021
  • Through the Korean version of the New Deal 2.0, manufacturing-oriented SMEs are facing a new environmental change called smart factory construction. In addition, SMEs are facing new security threats along with a contactless environment due to COVID-19. However, it is practically impossible to apply the previously researched and developed security management system to protect the core technology of manufacturing-oriented SMEs due to the lack of economic capacity of SMEs. Therefore, through research on security management systems suitable for SMEs, it is necessary to strengthen their business competitiveness and ensure sustainability through proactive responses to security threats faced by SMEs. The security management system presented in this study is a security management system to prevent technology leakage applicable to SMEs by deriving and reflecting the minimum security requirements in consideration of technology protection point of view, smart factory, and remote access in a non-contact environment. It is also designed in a modular form. The proposed security management system is standardized and can be selectively used by SMEs.

The Effect of Exports on Growth of Small and Medium-Sized Enterprises: Evidence from Vietnamese Manufacturing Firms

  • LE, Ngan Thi Thanh
    • The Journal of Asian Finance, Economics and Business
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    • v.9 no.1
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    • pp.35-42
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    • 2022
  • The paper aims to examine the impact of exports on the growth of Vietnamese manufacturing small and medium-sized enterprises (SMEs) by exploring the information of 36,053 enterprises across 24 manufacturing sectors from the Vietnam Annual Enterprise Survey (VAES) in the period 2014-2019. To deal with the problem of variable variance, autocorrelation, and endogeneity of the model, the paper uses the OLS regression method with a strong standard error method and system GMM. Export participation by SMEs is positively associated with business growth in terms of sales and total assets, according to the findings. The GMM estimate shows that the rate of sales growth among exporters is 36.5 percent greater than that of non-exporting enterprises in the case of the sales growth measure. Exporters' average total asset growth rate is 19% greater than the rate estimated for non-exporting businesses. The study's findings indicate the need of adopting policies that promote SMEs in transition economies like Vietnam to engage in exporting activities. Furthermore, the findings show that financial assistance and suitable ownership would enable SMEs to take advantage of export opportunities to increase sales and total assets.

Manufacturing and Tests of Cryostat for SMES (I) (SMES용 Cryostat 시제작 및 평가 (I))

  • 조전욱;심기덕;하홍수;김해종;김봉태;성기철;권영길;류강식;고득용
    • Proceedings of the Korea Institute of Applied Superconductivity and Cryogenics Conference
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    • 2001.02a
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    • pp.117-120
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    • 2001
  • In this paper we present the results of manufacturing and tests of prototype cryostat for micro-SMES. The prototype cryostat with HTS current leads and refrigerator had been designed and manufactured for micro-SMES. The cryostat had been tested the helium boil-off and mechanical stress during transfer and vibration test. These results will be applied to micro-SMES cryostat.

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