Purchasing practices in small- to medium-sized enterprises: An examination of strategic purchasing adoption,supplier evaluation and supplier capabilities

The benefits that can be derived from effective purchasing have long been recognised in the management literature. Despite a growing body of research on purchasing practices in small- to medium-sized enterprises (SMEs), a number of key issues remain under-examined. We investigate SME purchasing practices in terms of (1) the degree to which purchasing is regarded as a ‘strategic’ activity by SMEs, (2) the use of supplier evaluation systems by SMEs and (3) the supplier capabilities emphasised by SME buyers. Through a survey of UK SME managers, we find that purchasing practices varied greatly across SMEs. Purchasing formality is generally low with limited evidence of purchasing being employed strategically and with many firms not undertaking formal supplier evaluations. In terms of supplier capabilities, we find that SMEs differ in the capabilities they prioritise, with three distinct groups evident. These groups are labelled ‘holistic’, ‘process’ and ‘logistics’ based on the supplier capabilities they emphasise. These three groups of firms also differed in terms of the emphasis they placed on strategic purchasing, supplier evaluation, technological focus and how they compete in their main markets, but not in terms of firm size or number of suppliers utilised. The implications of these findings are discussed and areas meriting future research are proposed.     

HRM and performance—The role of talent management as a transmission mechanism in an emerging market context

This paper investigates the link between HRM practices, talent management (TM), and firm performance and examines the role of HRM/business strategy alignment in an emerging market context. Through survey evidence gathered from 198 respondent firms, this study shows that TM, when focused on a series of practices aimed at developing workforce networks and social capital, is a key transmission mechanism mediating the relationship between HRM and firm performance. HRM strategy and business strategy alignment increases these performance impacts but is not an essential component in the HRM‐TM‐performance link.     

The interactions between person–organization fit and leadership styles in Asian firms,an empirical testing

This paper presents a study that examines the use of human resource management (HRM) practices and factors influencing the adoption of HRM practices in small and medium-sized enterprises (SMEs). Using a multiple-case study method, HRM in SMEs was explored by comparing 12 small and medium-sized and 12 large semiconductor design firms. The findings show that there is considerable homogeneity across the firms in relation to their use of human resources (HR) practices providing support for the insights based on the new institutionalism. The factors leading to the homogeneity HRM are discussed. It is argued that theory-based empirical research on HRM in SMEs within the same industry enable us move towards a systematic understanding and explanation of HRM in SMEs.     

Sustainable environmental practices and financial performance: Evidence from listed small and medium‐sized enterprise in the United Kingdom

In this article, we investigate the financial implication of sustainable environmental practices on UK small and medium‐sized enterprises (SMEs)–traded firms. Existing literature indicates that there is a direct relationship between sustainable environmental practices and financial performance. However, studies looking at this relationship have focused mainly on large firms with little attention paid to SMEs. Further, those looking at environmental and financial performance relationships have often used a single measure of performance in their studies. This study bridges these research gaps by focusing on listed SMEs in the United Kingdom using multiple measures of sustainable environmental policy indices on a panel of 201 SMEs on the Alternative Investment Market from 2011 to 2016. Evidence from our panel data analysis suggests significant and a nonlinear (concave) relationship between sustainable environmental practices and firms' financial performance. Specifically, energy efficiency practices, greenhouse gases, material, and resource efficiency revealed an inverted U‐shaped relationship with financial performance. The results will offer guidance to management in terms of allocating resources to sustainable environmental practices investment.     

Management for Sustainable Development and Its Impact on Firm Value in the SME Context: Does Size Matter?

With the increasing demands from society towards sustainable and social responsible business practices, management for sustainable development has become a cornerstone to understand the success of many firms in the current competitive context. This article investigates corporate social responsibility (CSR) and examines the links between CSR practices and business outcomes – both financial and non‐financial (i.e. image and corporate reputation) – for small‐to‐medium sized enterprises (SMEs). In addition, we also attempt to determine whether the impact of such relationships is moderated by firm size. To this end, we carry out a quantitative study using PLS techniques to analyze a sample of SME owners and managers, with a view to test the proposed model in the light of social capital theory. In this sense, our study is pioneering in that it aims to determine – from a quantitative viewpoint – the degree to which firm size has a moderating impact on a series of relevant CSR‐driven outcomes. The data suggest that, in SME contexts, CSR impacts corporate reputation, brand image and financial value of the company. Importantly, we find that the larger the firm, the greater the intensity of the relationships linking CSR and business outcomes. Hence, our findings have important implications for CSR implementation in SME contexts. Finally, we provide a series of guidelines aimed at maximizing the effectiveness of CSR‐based business practices. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

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. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment     

A quarter‐century review of HRM in small and medium‐sized enterprises: Capturing what we know,exploring where we need to go

Despite the proliferation of HRM research, only a small fraction explores the context of small and medium‐sized enterprises (SMEs). Where HRM in SMEs has received attention, the literature base remains fragmented and variable, comprising a plurality of definitions, explanations, and methods. To advance understanding, this paper uses a quarter‐century systematic review drawing on an evidence base of 137 peer‐reviewed articles. A cumulative framework is presented capturing key developments and synthesizing existing areas of research focus. Analysis of limitations and knowledge‐gaps finds a failure to differentiate across various types of SMEs, limited appreciation of SME characteristics and contextual conditions, and a dominance of managerial perspectives. An agenda for future research on HRM in SMEs is outlined with respect to definitional parameters, HR practices, HRM–performance, key determinants, and presenting issues. The paper concludes that SMEs offer a unique, fruitful, and timely context for investigations of HRM.     

Environmental Management in SMEs in the UK: Practices,Pressures and Perceived Benefits

Environmental management represents a significant challenge for small businesses, and prior research has shown that they are typically less engaged with environmental issues than their larger counterparts. At the same time, prior research has seldom explored engagement among small and medium‐sized companies (SMEs) with the wide variety of practices that are encompassed by environmental management, nor has it sought to explore heterogeneity among SMEs. In this study, we analyse the extent of SME involvement in a wide range of environmental management practices and the differences between small and medium‐sized businesses. We also explore SME perceptions of pressures for, and benefits of, engagement with environmental issues. Our findings show that most small businesses are engaged in some environmental initiatives but that there is significant heterogeneity in the engagement of small and medium‐sized businesses. Consistent with this, we show that the smallest companies perceive significantly fewer benefits of engagement with environmental issues. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.     

An analysis of the talent management challenges in a post-communist country: the case of Poland

There is a dearth of empirical studies on talent management (TM) in the emerging markets, and in particular a lack of research on TM in the countries of the Central and Eastern European (CEE) region. Our empirical study in 58 organisations in Poland, a major economy in the CEE region, is one of the first studies to examine TM in this context. Our study highlights the particular nature of the TM challenges facing organisations in Poland and shows that there is little evidence to suggest that Polish practice is converging with Western models. Our paper suggests that TM is likely to challenge many traditional management practices and attitudes which continue to dominate Polish culture in the period of transition to a market economy.     

EM into SME won't go? Attitudes,awareness and practices in the London Borough of Croydon

This paper provides an account of a questionnaire-based survey of businesses (all except one being SMEs) in the London Borough of Croydon. The main findings reported are that (i) most managers profess a high level of environmental concern, but (ii) they have little knowledge of developments in the field of environmental management and (iii) they have not introduced formal practices to manage the environmental performance of their businesses. The research also indicates that market forces (as supply chain pressure) and intervention strategies (the provision of environmental management services) have, as yet, had little or no significant impact on SME behaviour. It is suggested that both of these potential ‘drivers’ are limited in the extent to which they are likely to influence future practice in SMEs. Following from this, it is also suggested that attempts to promote environmental management in SMEs are only likely to succeed if they are grounded in a thorough understanding of the heterogeneous natures of SMEs and the diverse socio-economic contexts within which they operate. Relating to this, a number of areas for further research are proposed. © 1998 John Wiley & Sons, Ltd and ERP Environment.     

Voluntary sustainability assurance in small and medium-sized entities: The role of country origin in Europe

The assurance of sustainability information by small and medium-sized entities (SMEs) has not attracted much research interest to date. To rectify this, we draw on a sample of European firms (from the EU, the United Kingdom and Norway) extracted from the Global Reporting Initiative (GRI) database and explore the disclosure variable in relation to country-specific factors. Assurance rates are found to be low among SMEs, and moreover, the level of disclosure is limited. The assurance market is dominated by accounting firms, above all by the Big Four. Legal origin is found to be a highly relevant factor, with Scandinavian countries presenting the highest percentage rates of sustainability report assurance. Among the cultural variables analysed, power distance, masculinity and uncertainty avoidance have a significant negative impact on the decision to assure sustainability information. Overall, the study serves to enhance understanding of SME practices in different countries of origin.     

Understanding the effect of market orientation on circular economy practices: The mediating role of closed-loop orientation in German SMEs

The implementation of circular economy (CE) practices is considered a key driver towards sustainable development of firms. Earlier studies point to the general strategic approach of market orientation as an antecedent to CE practice implementation. Still, insights are limited as the mechanisms underlying this relationship remain unclear. Based on a sample of 121 German small and medium-sized enterprises (SME), we empirically examine how the strategic approach of closed-loop orientation mediates the relationship between market orientation and the implementation of three types of CE practices. Using structural equation modelling, we find that while market orientation is positively related to all three types of CE practices, closed-loop orientation mediates these relationships for only two. Our study extends CE literature by suggesting that market orientation is translated into closed-loop orientation to spur CE practice implementation. We also offer a differentiated understanding of CE practice implementation in the context of German SMEs.     

The effects of environmental,social and governance disclosure on the cost of capital in small and medium enterprises: The role of family business status

Environmental, social, and governance (ESG) disclosure has become a critical component of corporate reporting. However, the effectiveness of this type of disclosure remains poorly explored among small and medium enterprises (SMEs), despite the fact that these businesses represent the majority of firms around the world. By leveraging on a dataset of Italian listed SMEs, we fill this gap to shed new light on the effects of nonfinancial disclosure on the cost of capital. The study reveals that, in stark contrast with the evidence on large companies, environmental disclosure for SMEs is bound to provoke an increase in the cost of capital. Yet this pattern is capsized when the company is a family SME, as it benefits from environmental disclosure, as large companies do.     

Small & medium-sized enterprises and Corporate Social Responsibility: a systematic review of the literature

Most business management research to date has either failed to look at firm size as a factor or focused its attention on large companies. The fact is, however, that small and medium-sized enterprises (SMEs) are unique, making general assumptions applicable to other types of firms of little use. Corporate Social Responsibility (CSR) is no exception. Recent decades have seen a plethora of studies which debate definitions, consider content and scope, and study causal relationships with antecedents and implications of applying CSR. Yet only a small percentage of the literature has delved into SME realities. Through a systematic review of the literature, the present study aims to analyze the state of the question and identify the theoretical framework of reference, and CSR antecedents and consequences in SME contexts in order to provide a jumping off point for future empirical studies. Hence, after consulting a cross-section of internationally renowned experts and the SSCI/JCR Index, we have reviewed articles in the foremost management journals (Academy of Management Review, Academy of Management Journal, Journal of Management Studies, Journal of Management, Strategic Management Journal), SME management journals (Journal of Small Business Management, International Small Business Journal, Small Business Economics) and CSR-related journals (Business Ethics Quarterly, Corporate Governance: An International Review, Journal of Business Ethics, Business Ethics: an European Review and Business & Society). Our findings shed light on key themes including idiosyncrasies of CSR management, aspects such as terminology and language, the recommended theoretical framework, and antecedents, barriers and potential impact of CSR in the SME context.     

ERP system implementation in SMEs: exploring the influences of the SME context

Small and medium-sized enterprises (SMEs) are increasingly implementing enterprise resource planning (ERP) systems. Compared to large enterprises, SMEs differ in a number of inherent characteristics, which are likely to impact the ERP system implementations. The purpose of this study is to explore these influences of the SME context on the ERP system implementation process. SME characteristics are synthesised from relevant literature and the influences of the contextual factors on various activities across the ERP life cycle are investigated. The study presents findings from a multiple case study of four SMEs. The ownership type of the companies and limited resources were identified as the most influential contextual factors. Among the ERP life-cycle phases, the implementation phase was affected most by the SME context. The case studies also illustrate the need for a more nuanced view on what should be considered general characteristics of SMEs; for example, regarding the level of IS knowledge, business processes, and market characteristics.     

Best practice interventions: Short-term impact and long-term outcomes

This paper uses empirical field research to examine whether short-term best practice interventions (BPIs) can lead to improvements that are sustained in the long term. In addition, this research investigates the implied conflict between striving for short-term results and achieving long-term development of capabilities. It also examines the tension between the lack of resources of the typical small and medium sized enterprise (SME) users of BPIs and the time required to develop a critical mass of capability. A longitudinal case-based study of eight SME contexts examined BPI outcomes and factors leading to short- and long-term success and sustaining best practices. The research identifies factors related to the intervention context, implementation and change-agent approach. The data indicate that in resource-limited SMEs BPIs are limited in their ability to develop adequate capability for long-term change.     

Human resource management and organizational performance of small and medium enterprises (SMEs) in Nigeria

The link between human resource management (HRM) and firm performance of organizations has received significant research attention, generally focused on large firms from developed countries to the omission of studies focused on small and medium enterprises (SMEs) and those from developing countries. This study partially addresses this gap in the literature. We investigated the relationship between HRM practices and the financial (FIN) and non-financial performance (NONFIN) of SMEs in Nigeria. A survey design with 236 respondents was used to test the hypotheses. Multiple regression results showed that human capital development and occupational health and safety had a direct relationship with NONFIN, and employee performance management and NONFIN on FIN performance. HRM practices as a group accounted for 16% of the variance in NONFIN and 12% of the variance in FIN. Regression analyses controlled for size and age of the firm. This study partially supports a model of positive relationships between certain HRM practices and firm performance.     

Talent management: context matters

Abstract

There is little doubt that the attraction, development, and retention of talent are nowadays one of the most critical challenges faced by companies worldwide. Despite the increasing scholarly attention during the last years many questions remain, particularly, those related to how (and why) talent management (TM) is conceived, implemented and developed within organizations, not to mention about its outcomes or effectiveness. We argue that organizational context has been underappreciated in TM research, which is an omission since context affects the occurrence, meaning and implementation of TM. Therefore, we edited a special issue which seeks to contribute to advance our knowledge of how contextual factors affect the conceptualization, implementation and effectiveness of TM. In this opening article, we offer a brief overview of how context is integrated in previous TM research. We then introduce the four articles in this special issue and their contributions which addresses gap in TM research and, finally, we offer some suggestions on how to improve contextualized TM research.     

The phenomenon of young talent management in Russia—A context‐embedded analysis

This article describes the particularities of young talent management (TM) in Russia and explains them through a context‐specific analysis. It adopts a multilevel perspective that acknowledges the relevance of context at three levels: the macro environment, the organizational, and the individual. Data were gathered through 46 interviews with HR managers and young talents from six Russian companies and six Russian subsidiaries of foreign multinational companies (MNCs) active in a variety of industries. Following the contextualization approach, this study offers important insights into the interplay between macro, organizational, and individual factors as well as their isolated or interrelated effects on TM. While multilevel contextualization provides the rationale behind certain TM practices and the particular focus on young talents in Russia, it also explains why Russian companies are inspired by global best TM practices. Thus, contextualization allows for explaining the coexistence of a specific environment and nonspecific (global best) TM practices. Important particularities are revealed also when compared to the results of TM studies in other emerging countries. The article contributes not only to the TM discussion, but also to the wider field of international human resource management and the international management literature regarding contextualization.     

Commitment to Sustainability in Small and Medium‐Sized Enterprises: The Influence of Strategic Orientations and Management Values

Ecosystem degradation and social sustainability have become important issues in the corporate sphere during the last few decades. However, research discussing corporate social responsibility and related concepts has often focused on larger companies, sometimes neglecting the specifics of small and medium‐sized enterprises (SMEs). The main purpose of this study is to examine the relationships between two common strategic orientations, market orientation (MO) and entrepreneurial orientation (EO), in relation to sustainability commitment, sustainability practices and management values in SMEs. Questionnaire responses from 450 Swedish SMEs were analyzed, confirming the influence of MO, EO and sustainability practices on commitment to sustainability, implying that firms committed to sustainability see both market and entrepreneurial advantages of sustainability. The results also show that different parts of MO and EO differ in importance for commitment to sustainability among SMEs. Implications concern the importance for firms and policymakers to work with sustainability issues using both internal and external perspectives. © 2015 The Authors. Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd