This full paper works towards merging ‘frugality’ and ‘design thinking’ into a simplified framework for a workshop routine as a stepping stone for SMEs in developed countries to create and capture value of frugal innovations. Innovations which are born out of the notion that we can do more with less, or for less. This framework is aimed at reaching a specific group of SMEs, in this paper called the peloton of SMEs, a large group of SMEs which generally have lower growth ambitions and growth potential in comparison to the frontrunners. This group is often overlooked by (regional) governmental innovation programmes due to a primary focus on the same industry’s frontrunners. The framework was first tested with students, discussed with experts and eventually tested with SMEs from the Agribusiness sector in the Netherlands. Frugal Elements added to the design thinking process are; (a.) a Frugal Lens (b.) Frugal Business Model Patternsfor BMI (c.) Frugal leadership development (d.) Frugal Validation of the solution (e.) Frugal Intervention (limited time, limited theory, vertical learning community, practical tools). Although the first Pilot has been a succes in terms of helping participating SMEs to create innovations, more research is necessary for the design of a final framework which is expected to contribute to the frameworks that are currently available to SMEs in frugal and sustainable business modelling.
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Purpose: Small and medium-sized entities (SMEs) operating in the alternative financing sector are typically heterogenous in nature making them differ greatly from traditional banks. Where traditional banks must comply with strict banking regulations, developing uniform regulations for the alternative financing sector remains a challenge. This paper examines the current challenges and solutions from a sociological and institutional perspective in developing standards for SMEs operating in the alternative financing sector in the Netherlands. Adopting minimum quality standards should lead to increased transparency and public trust in the non-banking sector.
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In December of 2004 the Directorate General for Research and Technological Development (DG RTD) of the European Commission (EC) set up a High-Level Expert Group to propose a series of measures to stimulate the reporting of Intellectual Capital in research intensive Small and Medium-Sized Enterprises (SMEs). The Expert Group has focused on enterprises that either perform Research and Development (R&D), or use the results of R&D to innovate and has also considered the implications for the specialist R&D units of larger enterprises, dedicated Research & Technology Organizations and Universities. In this report the Expert Group presents its findings, leading to six recommendations to stimulate the reporting of Intellectual Capital in SMEs by raising awareness, improving reporting competencies, promoting the use of IC Reporting and facilitating standardization.
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This paper provides guidance for developing risk-based management tools to improve the procurement (purchasing) performance of SMEs. Extant academic literature only offers little support on developing such tools and does not consider the wide variety of SMEs. The paper defines a procurement tool for SMEs as any structured managerial aid that one or more persons use for analysing, structuring or influencing the management and effective execution of activities within SME procurement processes. In the context of this research such tools are directed at identifying risks or uncertainties in procurement processes and at improving such processes through effective analysis and decision-making. The paper draws from SME and entrepreneurial literature related to strategy, sustainability, innovation or risk management, and from literature related to procurement management and maturity grids.It discusses literature on developing management tools and criteria on assessing the quality of such tools. It discusses key aspects and organisational variables related to the application and adoption of such tools. It then presents a five-step instrument with guidelines and criteria to develop risk-based procurement management tools for entrepreneurs and SMEs. These guidelines are described as to be used in action research with student researchers and company research participants.
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A growing amount of (semi) public organizations in the Netherlands write tenders with mandatory social conditions. It is important for SMEs to focus on social procurement in their business strategy. SMEs should be proactive and try to affect the conditions (semi) public organizations write in their tenders. On the other hand, (semi) public organizations should facilitate SMEs by developing transparent procurement processes and by organizing information meetings with SMEs. The most important factor for an effective social procurement procedure seems to be the dialogue between SMEs, purchasers and the persons responsible for matching target groups. Because it seems easier for SMEs to meet social procurement conditions if they cooperate with other SMEs and set up labour pools, we performed an exploratory research on the formation of labour pools. The labour pools can be set up by SMEs in the same branch or in a cooperation chain. Our research shows that entrepreneurs require a lot of perseverance in developing a labour pool. It also appears that labour pools without commitment of public authorities are not effective.
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Small and medium-sized enterprises have found their way into multi-cultural relations to outsource or offshore their business processes. Relationships are built either from an economic or emotional point of view. Our study particularly focused on how SMEs owner/managers build, maintain, and –when necessary– exit their relationships with other SMEs by using trust as a core element. We have chosen for a qualitative research strategy by conducting semi-structured interviews in The Netherlands, Germany, UK, Denmark and Sweden. The countries selected are representatives of the application of Northern-European and Anglo-Saxon business models. Our results suggest that trust is of the essence in the relationship building process and that the perception of trust needs to be understood and managed in multi-cultural relations by all parties involved. We can also conclude from our results that SMEs are intrinsically inclined to base their offshore activities on trust. For practical reasons, partners in relationships need to be educated and trained how to build trust in multi-cultural relations. Future research should focus on the firms’ culture to examine the influence on trustful multi-culture relationships.
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Aims: identify and explain purchasing-oriented patterns in Small and Medium Sized Enterprises (SMEs) via case study research.Scope: Using a conceptual framework and empirical research this article proposes a series of purchasing-oriented patterns in SMEs. These patterns align activities to achieve the SMEs proposed value proposition towards customers and activities to purchase resources needed for realizing the value proposition.Structure: This paper introduces the research topic. It discusses a conceptual framework and theory. It then continues with the methodology to collect and analyse case study data and describes empirical finding. It discusses these findings related to the framework and literature and ends with summarizing first conclusions.Conclusion: The SMEs in the dataset use four types of purchasing-oriented patterns related to their customer value propositions These SMEs can strive for low transaction costs can but invest in extrinsic product attributes to realize their value proposition. Both the transaction cost theory and the resource based view help to explain the purchasing-oriented patterns. Further research is needed to strengthen and validate findings.
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Purpose The purpose of this paper is to investigate possible differences in the degrees of employability, leader–member exchange (LMX) and innovative work behaviours in a comparison between Belgium and the Netherlands. Although neighbouring countries, disparate national cultures between the two are assumed to influence the amount of employability, LMX and innovative work behaviours among their respective working populations. Furthermore, this paper aims to validate a mediation model across the two countries to test whether employability (partially) mediates the relationship between LMX and innovative work behaviours. Design/methodology/approach Data from employees and their immediate supervisors working in small- and medium-sized enterprises (SMEs) in Belgium and the Netherlands supported the hypothesized model. Structural equation modelling was used to investigate the mediation model using a multisource approach. Findings The amount of employability and innovative work behaviours of employees appeared to differ significantly between Belgium and the Netherlands. Furthermore, the results suggested that for both countries a positive relationship with one’s immediate supervisor (LMX) is beneficial in the light of workers’ innovative work behaviours, through its impact on employability, which was found to be a full mediator in this relationship. Research limitations/implications Future studies using a longitudinal approach could give more insight into the model relationships. Moreover, the variation in systems, national contexts and managerial practices in the Euroregion calls for more cross-national comparative scholarly research. Practical implications SMEs often do not employ professionals to manage human resources, that is, supervisors themselves have to carry the responsibility to encourage employees to further develop themselves and to enhance their innovative work behaviours. This while the challenge of more cross-national cooperation encourages a boost for innovations in the Euroregion. Originality/value This study is the first cross-national validation of a mediation model wherein a competence-based measure of employability is incorporated as a possible mediator in the relationship between LMX and innovative work behaviours.
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Small and Medium Enterprises (SME) comprise 99% of the European-economy, though, most research and implementation methods concerning Business Process Management Systems (BPMS) focus on large enterprises. We create a BPMS implementation method that is suitable for SMEs. Based on three existing BPMS implementation methods and by incorporating differentiators of SMEs and large enterprises a BPMS implementation method is constructed. The constructed method is validated through a series of interviews with BPMS implementation experts. Experts agree with the constructed method though discussion arise on a more detailed level of activities in the method.
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Aims: identify and explain purchasing-oriented patterns in Small and Medium Sized Enterprises (SMEs) via case study research.Scope: Using a conceptual framework and empirical research this article proposes a series of purchasing-oriented patterns in SMEs. These patterns align activities to achieve the SMEs proposed value proposition towards customers and activities to purchase resources needed for realizing the value proposition.Structure: This paper introduces the research topic. It discusses a conceptual framework and theory. It then continues with the methodology to collect and analyse case study data and describes empirical finding. It discusses these findings related to the framework and literature and ends with summarizing first conclusions.Conclusion: The SMEs in the dataset use four types of purchasing-oriented patterns related to their customer value propositions These SMEs can strive for low transaction costs can but invest in extrinsic product attributes to realize their value proposition. Both the transaction cost theory and the resource based view help to explain the purchasing-oriented patterns. Further research is needed to strengthen and validate findings.
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