The internationalization of small and medium enterprises (SMEs) has become vital as it enables them to enhance their business prospects and achieve organizational objectives. This is of utmost significance for the future growth of nations, regions, and the global economy, given the progressively significant role played by SMEs in contributing to economic development. However, SMEs face numerous challenges when it comes to internationalization, primarily due to their limited capabilities. As a result, only a minimal percentage of SMEs are able to expand their business into the international market. Despite the numerous barriers faced by SMEs, this research specifically focuses on three main barriers: lack of market knowledge, limited business networks, and challenges related to new product development. These factors are crucial when expanding a business into the international market. Therefore, this study aims to explore how SMEs can expand their business to the international market by overcoming these barriers through the effective utilization of social media. This empirical study adopts an exploratory approach and employs qualitative methodology with an inductive research approach. To gather data, this research conducted interviews with technology-based companies in Luleå. In-depth semi-structured interviews were conducted using an interview guide, and the collected data were analysed using the thematic method. The findings of the study highlight that social media can indeed be a successful influencer in the internationalization process of SMEs, particularly by utilizing business networking opportunities. Additionally, SMEs utilize social media as a secondary source for obtaining market information and engaging in new product development activities. However, the research also identifies hesitancy among technology-based SMEs when it comes to trusting the information obtained from social media platforms. Based on the findings of this study, several recommendations have been developed, primarily focusing on technology-based SMEs. These recommendations were derived from interviews conducted with companies located in Luleå and are intended to benefit SMEs operating in the tech industry as a whole.

Sustainable Supply Chain Management (SSCM) is an evolving discipline, and incorporates the environmental and social performance dimensions of sustainability with the traditional measure of economic performance; current SSCM research indicates a skew towards economic performance and its interaction with environmental performance, while social performance is underrepresented (Pagell and Wu, 2009, Schaefer, 2004, Sharma and Ruud, 2003). The UK clothing industry represents a relevant research focus due to its supply chain complexity, and scale and scope of its environmental and social impacts; this thesis further recognises the tendency for academic research to focus on Large Enterprises (LE) (Curran and Blackburn, 2001) and investigates how SSCM is implemented in UK SME clothing supply chains to understand how and why they address economic, environmental and social performance and the potential contribution to developing the SSCM concept. An inductive case study methodology is employed and the research focuses on 4 UK clothing SMEs with primary data collection a series of semi-structured interviews, supported by observation, company documentation and archival data. Three theoretical lenses are applied and the findings indicate that SMEs manage their supply chains for sustainability in ways that strongly align with their specific characteristics and apply a greater emphasis on long-term, trust-based and mutually beneficial supplier relationships. A rich view of SSCM practice in SMEs is developed, which reflects the more intangible and human components of sustainability and supply chain relationships, and how these can be harnessed to achieve firm specific commitments. This thesis fulfils an identified need to study how sustainability is addressed in SME supply chains within a single industry; SSCM research to date has focused on large organisations and multiple industry perspectives. It contributes to knowledge in both the SSCM and SME research fields by identifying key gaps within the combined literature, critiquing sustainability models and developing a conceptual framework from the findings, which aims to embed social performance and offer a more integrated approach to SSCM in this context.

SMEs in the 21 century have to cope with an increasingly dynamic and competitive environment. In order to work effectively within this environment, SMEs have to collaborate with other enterprises in forms of virtual organisations. Despite the increased interest in the area of virtual organisation collaboration, useful information is still lacking about the risk sources of virtual organisation, where the enterprise face more complicated risk threats than those in traditional enterprise due to the new form of relationships between partners. The aim of this research was to identify a risk management contribution where this research has identified key areas of risk that SMEs are likely to face when working collaboratively in VO. It also enables SMEs to understand the relative importance of these risks. A further contribution is made by use of tools (ISM and ANP) to enable SMEs to understand the inter-relationships of risk sources. Multiple analysis techniques provide triangulation of analysis results, leading to validation of results. The secondary research showed all of the risk sources identified in the relevant literature and some of the relationships between them, whilst the primary research addressed all of the direct and indirect relationships using the Interpretive Structural Modeling. Also the primary data sources from the questionnaires and the case study shed light on the relative importance of these sources using the Analytical Network Process. Areas for further research are suggested to close the gaps and to continue enriching the research.

Identifying appropriate international distributors for small and medium-sized enterprises (SMEs) in the software industry for overseas markets can determine a firm's future endeavors in international expansion. SMEs lack the complex skills in market research and decision analysis to identify suitable partners to engage in global market entry. Foreign distributors hold responsibility to represent, sell, market, and add value to the software manufacturer's products in local markets. Identifying appropriate attributes to determine a suitable distributor is essential in assuring success in new export markets. Methods for partner selection have been addressed in the international marketing and information systems literature. Building on this literature, this dissertation develops an improved method for identifying suitable distributors in the SME software industry. The partner selection conundrum is modeled as a binary classification problem in that it involves predicting whether an alliance relationship will survive over a specific period. The challenge presented to researchers is not just the large number of variables involved in the selection process but also the inherent uncertainty in the decision making process. This study uses a Bayesian methodology for this classification task. A Naïve Bayes (NB) classification model was developed factoring sixteen alliance attributes identified in the partner selection literature and validated by domain experts who scored the importance of these attributes. Thirty years of partnership data that contributed to relationship longevity trained the model and held-back data was used to validate the model. The NB classification model returned accurate predictions in both the group of foreign distributors that succeeded and failed to reach the relationship longevity threshold of five years. The study's contribution to the software SME business community and its practitioners was the identification of an improved methodology for predictive success. The approach employed a simple Bayesian prediction model utilizing key alliance attributes to help software SMEs identify potential foreign distributor partners who can sustain relationship longevity from which to build a strong business partnership. Keeping the methodology simple is critical for SMEs who struggle with an abundance of challenges to maintain their corporate viability in the market place.

Abstract   Title: Search Engine Marketing in SMEs Level: Final assignment for Bachelor Degree in Business Administration Authors: Kamilla Fahlström & Caroline Jensen Supervisor: Jens Eklinder Frick Date: 2016 January Purpose: The purpose of this study is to use Expectancy theory to describe and analyze small company owners’ motivations for their usage of Search Engine Marketing, in terms of their perceived Valence, Expectancy and Instrumentality. Method: To research the aim of this study a qualitative research approach was used. The empirical data was compiled through ten semi-structured interviews from a varied selection of Swedish companies in the service sector. The data was analyzed with previous research to create an understanding of the motivations for using Search Engine Marketing. Conclusions: The result of this study, when analyzed alongside Expectancy theory, indicates that small business owners are motivated to use Search Engine Marketing. Furthermore, which method of Search Engine Marketing that the owners are motivated to use is dependent on their perceptions of the different methods. Future research: Due to the lack of research into the attitudinal and psychological aspects of Search Engine Marketing and the limitations of this study, it would be interesting if more research were done into this area. For example, it would be interesting to study if trust-based companies are motivated to use Search Engine Marketing, and if demographics affect the motivations. Contribution: This study contributes with results on a previously unexplored area within the research field of Search Engine Marketing. The study also contribute with some information to practice regarding small service company owners’ thoughts about their usage of Search Engine Marketing.  Key words: Search Engine Marketing, SMEs, Expectancy theory, Motivation, Website visibility

This thesis comprehensively explores the credit risk of Small and Medium Sized Enterprises (SMEs) using transactional characteristics, financial variables and market information. It contributes SMEs credit risk modelling by exploring a range of soft features, such as management capability, industrial sectors, entity type, etc. It is the first study of investigating the concept of management capability through quantitative transactional information. Firstly, models are proposed to assess the credit risk of SMEs by identifying the significant factors. To fulfill this, two studies are carried out. In the first study, logistic regression, survival analysis and ordinal regression are used to model the relationship between transformed financial variables and probability of default. Both the traditional AUROC measure and Hand Statistic are used to evaluate the performances of the models, and they both indicate that logistic regression on weights of evidence transformed data yields the best prediction. Survival model takes an extra element of the time dimension into consideration. Ordinal regression performs poorly possibly due to impact of sample sizes. The factors appeared with highest frequencies are ratios associated with liquidity and growth. The other study predicts the credit risk (‘good’ ‘bad’ and ‘indeterminate’) of the SMEs using transactional characteristics. 35000 SMEs are clustered by different clustering algorithms. It is notably found that most ‘indeterminate’ observations are clustered with ‘bad’ observation, which is different from industry habit of combining ‘indeterminate’ and ‘good’. Logistic regression performs better than ordinal regression according to AUROC measure. In addition, some key points raised in focus group interview with bank managers are seen in the modelling process as significant variables, such as sector belonging to, entity type, region/location, time associated with bank, and account conduct. Secondly, the informational bases of two major models, which are accounting based credit scoring models and Merton type models, are explored to figure out aspects which affect SMEs’ credit risk. 33 financial variables covering nine financial categories are considered. It employs other modelling frameworks rather than the often-used linear regression, which are linear regression with interactions and the Cox proportional hazard model. It is found that weak relationship exists between these two models. The two major models capture different aspects of corporate information, it is suggested that a hybrid model, which incorporate both sources of information, might be considered to predict SMEs financial health. Thirdly, management capability of SMEs is elicited by applying principal component analysis to their transactional characteristics. Management capability is a qualitative idea, and its manifestation in quantitative variables was not explored in previous research. This study indicates some success in determining management capability. It is found that financial measure (credit turnover and debit turnover) and the performance measure (number of days in excess of the account) could be considered as reflecting management capability. Good management can identify trends at a very early stage and take action to mitigate the issue.

It has long been argued that Social Capital, a concept represented by the value embedded in the social relationships of individuals or collectives constitute strategic resources for individuals and organisations. Social networks are thus perceived by businesses, particularly small and medium enterprises, as a means to access those resources, for example gaining privileged access to strategic information that could secure financial resources. In reality, and because of the inherent characteristics of Social Capital, entrepreneurs or business owner/managers who effectively use resources available within social networks are driven by a clear and compelling vision and sustained by a set of leadership attributes which are in line with the process of recognising, evaluating and exploiting opportunities. This study reinforces the concept of Entrepreneurship as a multi-social construct. Using survey data from 359 SMEs in UK South West food and drink manufacturing, this study uses a structural equation model to evaluate the relationships of interdependence between Social Capital, Leadership and Entrepreneurship Process. The mediating role of leadership in this interaction first, explains the relationship between Social Capital and Entrepreneurship Process and second, exposes the entrepreneurial behaviour common among SW food and drink manufacturers as the underlying explanatory factor of the competitiveness. Notwithstanding the prevalence of social networks, the level of brokerage appears to be very concentrated on closed networks with providers of professional services and local associations. This inadequate level of brokerage heightens the existence of structural holes which points to a situation of ‘over-socialisation’ suggesting that social norms prescribe economic action. The lack of appropriate market knowledge among ii owners/managers of small medium enterprises in the UK South West food and drink manufacturing frustrates the formulation of a comprehensive vision, in spite of the fact that values of ‘hard work’, ‘continued improvement’ and ‘ambition are largely shared among them. The main findings contribute toward a better understanding of Social Capital as distinct from social networks and the leadership role in business competitiveness. It makes a significant contribution to the debate on the integration of individual and environmental perspectives as a direction of future research on the understanding of Entrepreneurship. The study implications address policy-makers and business managers in filling the skills and knowledge gaps which are restraining the competitiveness of SMEs in this important and strategic sector

In recent years there has been an increase in the adoption of Information and Communication Technology (ICT) in organisations, as the use of ICT causes some form of revolution in business practices. All over the world, ICT has greatly transformed the manner in which companies conduct business. However, there is considerable evidence to show that Small and Medium Sized Enterprises (SMEs) in developing countries, particularly those in Sub-Saharan Africa (SSA), are yet to reap the full benefits offered by ICT as compared to their counterparts in the developed countries. Although the contribution of SMEs’ is of notable importance to many countries’ economy, yet those in developing countries lag far behind. For SMEs to survive and remain competitive in the current highly competitive business environment there is a need to adopt and use ICT effectively, in order to attain some level of competitive advantage. This research investigates factors affecting the adoption and effective utilisation of ICT, with particular emphasis on SMEs in Nigeria. It is presumed that SMEs’ adoption of ICT in Nigeria will provide opportunities to accelerate the country’s socio-economic growth as it will offer Nigeria the chance to ‘leapfrog’ some stages of development. The methodology adopted in undertaking this study is the qualitative research approach although a survey was used at the initial stage, to provide an exploratory snapshot of the SMEs in context. This research has empirically identified key factors motivating ICT adoption in Nigerian SMEs, and benefits resulting from the use of ICT in their organisational performance. Factors affecting the adoption and effective utilisation of ICT in Nigerian SMEs were also identified. Following this, strategies were proposed which led to the development of a framework that will assist to increase the adoption and effective use of ICT amongst SMEs in Nigeria and also, aid the further deployment of more sophisticated ICT solutions by these SMEs. The framework was validated via a survey and analysed with the aid of SPSS software. The findings obtained from the validation procedure indicated that the framework is valuable and suitable for use in practice since the research shows that the majority of respondents accepted the research findings and recommendations for success. This research offers recommendations that will assist the Nigerian government, stakeholders such as ISPs, as well as owners/managers of SMEs, in resolving the problems confronting SMEs in Nigeria.

<p><strong>Background:</strong></p><p>According to experts logistics outsourcing is a process and companies should develop their understanding about it as a process. Literature suggests a systematic and strategic approach for this process and also presents different models and aspects to improve logistics outsourcing as a process. But some scholars reveal a gap in literature regarding logistics outsourcing process in SMEs. They suggest in the discussion regarding logistics outsourcing as a process SMEs are totally ignored and there is a need to conduct research on this topic with perspective of SMEs. They also suggest the practices of SMEs in logistics outsourcing process are different from suggested process in literature.</p><p><strong>Research Questions:</strong><strong> </strong></p><p><em>Q.1: According to the literature, how should companies develop and perform logistics outsourcing process?</em></p><p><em>Q.2: How does the logistics outsourcing process in SMEs differ from the process suggested in the literature?</em></p><p><em>Q.3: Why do the practices of SMEs regarding logistics outsourcing process differ from the process suggested in the literature?</em></p><p><strong>Purpose of the Study: </strong></p><p>The purpose of this study is to reduce the gap in literature regarding logistics outsourcing in SMEs by studying their logistics outsourcing process to identify and understand the differences in their practices as compare to suggested process in literature.</p><p><strong>Methodology</strong>:</p><p>This thesis is written from a positivistic perspective with a deductive approach. For this thesis multiple-case studies are employed by using qualitative research method. For empirical data collection semi-structured interviews are used and pattern matching is used as analysis method.</p><p><strong>Conclusion: </strong></p><p>Taiwanese SMEs do not have very structured and systematic process for logistics outsourcing which is exactly opposite to the suggested process by literature.  These SMEs are also performing some suggested aspects of logistics outsourcing process but not as recommended in literature and these aspects are also not integrated as a process. According to our findings, lack of understanding about logistics outsourcing as a process, limitation of resources and lack of interest of top management are main reasons for these differences in the practices of SMEs regarding logistics outsourcing process from the suggested process in literature. We also find that the reviewed literature and suggested models of logistics outsourcing process are focusing on strategic partnership between 3PLs and companies but the partnership between SMEs and their logistics services providers is more tactical in nature. This is also a possible reason of this difference.</p>

<p><strong>Title: </strong>The influence of network relationships in the internationalization of SMEs</p><p> </p><p><strong>Authors: </strong>Andersson, Arvid & Helander, Anna</p><p> </p><p> </p><p><strong>Tutor:</strong> Karlsson, Tomas</p><p> </p><p> </p><p><strong>Date:</strong> June, 2009</p><p> </p><p><strong>Background</strong>: The world has become globalized, resulting in a rapid increase in international trade. Also many SMEs actively internationalize. At the same time, networks are increasingly replacing traditional markets. In the internationalization process of SMEs it has through research been confirmed that firms are influenced by network relationships in their internationalization process.</p><p><strong>Problem</strong>: Choice of foreign market and market entry mode are crucial decisions SMEs make in their internationalization process. It has been found that network relationships affect SMEs in these decisions. However, the research within this area has been focusing heavily on knowledge-intensive SMEs. Scholars call for further research in relation to other industries, as well as a more specific investigation of what kind of different network relationships that affect choice of foreign market and of market entry mode.</p><p><strong>Purpose: </strong>The purpose of this thesis is to investigate how SMEs’ choice of foreign market and market entry mode is influenced by different types of network relationships.</p><p> </p><p><strong>Method: </strong>A multiple case study strategy was applied and four SMEs were included in the sample. Data was collected through semi-structured interviews, (three personal and one telephone interview), and complemented with secondary data. The respondents were the CEOs of the case firms. The collected data was categorized and each case firm was analyzed, followed by cross-case comparisons.</p><p><strong>Conclusion: </strong>The findings in this thesis show that all case firms had been affected by network relationships in the choice of foreign market and/or choice of market entry mode. Generally the findings conformed to a certain degree to previous findings concerning SMEs in knowledge intensive industries. Further, it was found that network relationship influence was more frequent in the choice of foreign market. In this decision, firms which had taken a proactive approach were mainly infuenced by strong and formal relationships. Firms taking a reactive approach were mainly influenced by weak and informal relationships. Concerning entry mode, it was only weak, informal relationships which had influenced the decision.</p><p> </p>