Small Business International Review (ISSN 2531-0046) is an international journal committed to the open-access publication of research articles that enhance knowledge and understanding of small and medium-sized enterprises (SMEs). The journal covers a wide range of topics related to SMEs, including but not limited to: Innovation and Entrepreneurship Growth and Development Strategies Human Resource Management and Leadership Finance and Capital Structure Marketing and Communication International Trade and Globalization Family Business Dynamics and Governance Sustainability and Corporate Social Responsibility Technology and Digital Transformation Knowledge Management Organizational Culture and Diversity Business Ethics and Corporate Governance Small Business International Review encourages a diversity of approaches and methodologies that contribute to SME research, as outlined below. Theoretical and Empirical Studies on Small and Medium-Sized Enterprises: Small Business International Review aims to be the leading publication outlet for high-quality theoretical, review, and empirical research on a broad range of topics influencing and shaping SMEs. The journal welcomes contributions from young researchers exploring new areas of SME research, as well as from more experienced researchers expanding on previous work or exploring new paradigms. Interdisciplinary Approach to SME Research: Small Business International Review publishes top-tier research on SME-related topics across various disciplines, including management, organizational behavior, sociology, anthropology, psychology, social psychology, and industrial relations. As an international platform, the journal transcends regional, geographical, and disciplinary boundaries to reach a wide audience. A Range of Perspectives and Styles: The journal publishes both quantitative and qualitative research, case studies, and mixed-methods studies. These contributions are designed not only to advance academic knowledge but also to influence public policy and business practice. Regardless of the methodological approach, all research published in Small Business International Review meets the highest standards of rigor and excellence. The journal's methodological orientations cover a spectrum from micro to macro analyses, conceptual frameworks, literature reviews, empirical studies, and experimental methods, all aimed at making a meaningful impact on public policy. Additionally, Small Business International Review accepts research notes intended as brief, specific contributions to subtopics related to SMEs. These notes provide researchers with an opportunity to present preliminary findings or innovative approaches that could open new avenues for SME research.
Spanish Accounting and Business Administration Association (AECA) and Universidad Politécnica de Cartagena (UPCT)
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Managing talent to compete: Recommendations for enhancing entrepreneurial competences in Spanish SMEs
In an increasingly volatile and competitive environment, small and medium-sized enterprises (SMEs) must cultivate strong entrepreneurial competences to adapt effectively to ongoing market changes. These competences, grounded in organisational learning, innovation, and customer orientation, are shaped by how firms manage their talent and structure their internal operations. This study proposes an integrated model linking talent management to entrepreneurial competences, identifying cross-functional teams, organisational commitment, and employee professionalism as key mediating factors, while also examining the moderating influence of environmental dynamism. Based on survey data from 1,721 CEOs of Spanish SMEs across major economic sectors, the results show that firms investing in the attraction, development, and retention of talent demonstrate stronger entrepreneurial competences. These effects are further reinforced when collaboration within cross-functional teams and high levels of commitment and professionalism are present—particularly in more stable environments. The findings highlight the strategic value of proactive human capital management, cohesive multidisciplinary teams, and the promotion of commitment and professionalism as essential drivers of innovation and sustained competitiveness in today’s dynamic business context.
Human Resource Management and Leadership
Copyright (c) 2025 Miguel Ángel Sastre-Castillo, Mercedes Rubio-Andres, Jorge Linuesa-Langreo, Santiago Gutiérrez-Broncano https://creativecommons.org/licenses/by-nc-sa/4.0
Survival analysis for predicting bankruptcy in small and medium-sized enterprises (SMEs): A case study approach
This study investigates the determinants of small and medium-sized enterprise (SME) survival through a quantitative analysis of financial and managerial factors. Using a dataset of SMEs observed over a ten-year period, the research applies survival analysis techniques based on the nonparametric Kaplan–Meier estimator and complementary log–log regression to identify predictors of business insolvency. The results show that firm survival is positively influenced by financial structure, return on assets, EBITDA, and human capital productivity, whereas excessive working capital is negatively associated with longevity. By incorporating underexplored variables such as financial results and employee productivity, this study broadens the empirical scope of survival analysis beyond traditional financial ratios. The findings contribute to the strategic management literature by identifying measurable financial and operational indicators that can serve as early warning signals of business failure. Although the data are drawn from a regional sample, the managerial implications are broadly applicable to SMEs operating across diverse economic and institutional contexts.
Copyright (c) 2025 David Mena-Siles, German Gemar https://creativecommons.org/licenses/by-nc-sa/4.0
Human capabilities and firm performance in women-owned micro and small-medium enterprises: The mediating role of substantive and dynamic capabilities
Dynamic capabilities are widely recognized as a catalyst for firm performance yet there is a dearth of research on how dynamic capabilities work with human and substantive capabilities to contribute to firm performance particularly in women-owned micro and small firms. This study investigates the influence of human capabilities on firm performance, mediated by both substantive and dynamic capabilities. Drawing on Zahra et al., (2006) conceptual model of substantive and dynamic capabilities, we test the relationship between human capabilities of women business owners and substantive and dynamic capabilities as they act on firm performance. We find that human capabilities directly and indirectly influence firm financial performance, mediated by substantive and dynamic capabilities. Substantive capabilities do not directly influence firm performance but have a role indirectly through dynamic capabilities. The results illuminate the interplay between capabilities as key drivers of financial performance and contribute novel insights into human and substantive and dynamic capabilities for policymakers when developing policy to support micro and small firm performance.
Copyright (c) 2025 Antoinette Flynn, Josephine Igoe, Yvonne Costin https://creativecommons.org/licenses/by-nc-sa/4.0
Unlocking cultural SME innovation: A configurational approach to manager empowerment
Cultural small and medium-sized enterprises (SMEs) and cultural tourism share a symbiotic relationship, with each depending on the vitality of the other. Yet the core cultural sector has traditionally struggled with digitalization and innovation. Because vibrant cultural tourism relies on active, innovative cultural enterprises as key stakeholders, understanding how to foster innovation within these firms is crucial. Although cultural tourism can empower such enterprises, the mechanisms linking managers’ empowerment to their innovative work behavior (IWB) remain insufficiently understood. This study investigates how psychological, social, political, and digital empowerment combine to shape IWB among managers of cultural SMEs. Data were collected from 202 Spanish managers through a survey and analyzed using confirmatory factor analysis (CFA) and fuzzy-set qualitative comparative analysis (fsQCA). The findings reveal complex configurational pathways leading to high IWB. Psychological, social, and digital empowerment consistently appeared in effective configurations, typically working in combination, suggesting that no single dimension alone is sufficient to drive IWB. By contrast, political empowerment was often absent or negatively related in pathways that produced high IWB, indicating potential constraining effects in this context. Overall, fostering IWB in cultural SMEs requires nuanced, multi-dimensional empowerment strategies that move beyond single-factor approaches and acknowledge the complex, interactive, and sometimes paradoxical roles that different forms of empowerment play in supporting managerial innovation.
Copyright (c) 2025 Liudmila Sycheva, Antonio J Verdu-Jover https://creativecommons.org/licenses/by-nc-sa/4.0
Drivers of SME customer relationship management: Perspectives from owners/managers
The relationship between managerial perceptions of customer relationship management (CRM) and actual CRM practices within organizations remains unclear, particularly in the context of small and medium-sized enterprises (SMEs) operating in developing market economies. This study explores how SME owners and managers perceive CRM as it unfolds within their firms. It posits that the perceived value of relationship marketing, business systems, and stakeholder relationships are key antecedents of CRM in SMEs. A cross-sectional survey design was employed, using a self-administered questionnaire completed by 267 owners and managers of retail SMEs in South Africa. Structural equation modeling (SEM) using SmartPLS 4 was conducted to analyze the data. The findings indicate that, from the perspective of owners and managers, perceived relationship marketing value, stakeholder relationships, and business systems each have a significant effect on CRM. The study recommends that SMEs invest in stakeholder engagement and business systems that support CRM implementation, as these factors influence the effectiveness of CRM initiatives. Furthermore, the results underscore the importance of SME leaders’ perceptions in shaping CRM strategy and practice within their organizations.
Copyright (c) 2025 Johannes A Wiid, Belinda C Senooane https://creativecommons.org/licenses/by-nc-sa/4.0
Influence of need for affiliation on small business customer loyalty
The need for affiliation (nAff) facet of David McClelland’s (1961) triad of needs is prevalent in psychology and business literature. Typically, nAff is referenced in combination with McClelland’s additional two triads: need for achievement (nAch) and need for power (nPow). Isolating the nAff construct, this study investigates the linkage of affiliation inclination of small business customers to their perceived value of retail servicescapes, filling a gap in the literature on nAff by evaluating the extent to which customer perceptions of servicescapes correspond to loyalty behaviors. Using online questionnaires, we analyzed data from 265 small business customers. This study suggests that servicescapes evoke customers’ feelings and reactions and customers subsequently form opinions of the servicescapes and the associative business. The study results indicate that customers’ need to be attached to small businesses and be satisfied with their small business experiences drive loyalty. When customers have positive servicescape reactions and become loyal customers, small businesses benefit. The findings of this study offer valuable insights for small business owners around the world, suggesting that investing in servicescape initiatives could contribute to their ongoing business success.
Copyright (c) 2025 Aaron Joyal, Carol Bartlo https://creativecommons.org/licenses/by-nc-sa/4.0
Organizational culture as an explanation for job search effort across small, medium, and large firms
This study examines whether organizational culture influences employees to seek alternative job opportunities and explores the moderating effect of firm size on the relationship between organizational culture and job search effort. Conducted in Sri Lanka, the research focuses on employees from small, medium, and large private firms, categorized by the number of persons employed. A total of 252 valid responses were analyzed. The findings reveal that organizational culture significantly impacts employees’ job search effort and that firm size plays a moderating role in this relationship.
Copyright (c) 2025 Vathsala Wickramasinghe https://creativecommons.org/licenses/by-nc-sa/4.0
The use of different cost of equity models when valuing SMEs: A case study
This study examines the valuation process of small and medium-sized enterprises (SMEs), using a Portuguese SME as a case study. The analysis focuses on calculating the cost of equity, with particular attention to the unique characteristics of these companies. The valuation was conducted using the discounted cash flow (DCF) method, with a preference for the average cost model. Two different approaches were employed to forecast free cash flows: (a) the geometric growth rate of sales, and (b) free cash flow projections derived from a model based on historical results. To calculate the cost of equity, three distinct models were used: (a) the capital asset pricing model (CAPM) with modifications proposed by Damodaran (2014), (b) the model developed by the Spanish Association of Accounting and Business Administration (AECA) from Rojo-Ramírez et al. (2012), and (c) the build-up model proposed by Ibbotson. These models serve as alternatives to the traditional CAPM, which is less suitable for unlisted companies due to the absence of a market beta. The study compares the results obtained from each model, focusing on their impact on the company’s valuation. Valuing SMEs is crucial for enhancing corporate decision-making. Furthermore, the approaches utilized in this study provide valuable guidelines for financial analysts involved in SME valuation.
Copyright (c) 2025 António Gomes, Maria João Jorge, Ana Gonçalves Pereira https://creativecommons.org/licenses/by-nc-sa/4.0
A proposal for measuring entrepreneurial intention among university students
The literature on entrepreneurial intention among university students has largely been grounded in attitudinal models that rely on instruments with limited multidimensional coverage and contextual sensitivity. This study proposes and validates a scale that integrates psychological, educational, and social dimensions. The instrument was administered to a sample of 1,141 students from the Faculty of Accounting and Business Administration at the National Autonomous University of Mexico (UNAM). Exploratory factor analysis identified six factors accounting for 65.78% of the variance. The findings highlight the need to strengthen entrepreneurial competencies within the university context. The study also examines the influence of the family environment and offers practical implications for curriculum design and entrepreneurship education.
Copyright (c) 2025 María Luisa Saavedra García, Angélica Riveros Rosas, Karen Gisel Velázquez Rojas https://creativecommons.org/licenses/by-nc-sa/4.0
Internationalization of local products in today’s world: A Focus on the Swiss cheese sector “La Tête de Moine AOP”
In the context of economic crises, globalization, and intensifying competition, small and medium-sized enterprises (SMEs)—particularly those in the agri-food sector—are increasingly encouraged to expand into international markets. This study fills a gap in the literature by exploring the internationalization of the exceptional Swiss cheese La Tête de Moine AOP from a supply-side perspective. Drawing on the resource-based view (RBV) and incorporating territorial factors, the research analyzes how internal resources, organizational capabilities, and regional identity contribute to the global success of this local product. Using semi-structured interviews and a focus group involving key stakeholders and experts in the sector, the study identifies the managerial strategies that have enabled La Tête de Moine AOP to establish an international presence. The findings underscore the importance of cooperative dynamics among local actors—including producers, refiners, institutions, and promotional groups—who jointly contribute to the creation and marketing of distinctive resources. This form of collective governance, rooted in the La Tête de Moine region, enhances strategic coherence and facilitates adaptation to international markets. The study extends the RBV by highlighting the territorial embeddedness of strategic resources, demonstrating that such resources are often co-produced within a localized ecosystem. It thus offers new insights into the relationship between territorial identity, local collaboration, and global competitiveness in the internationalization of high-end agri-food products.
Copyright (c) 2025 Lamia Ben Hamida, Stefanie Hasler, Hana Siala Abid, Romdhane Khemakhem https://creativecommons.org/licenses/by-nc-sa/4.0
The influence of digital transformation and implementation barriers on innovation in Brazilian micro, small, and medium enterprises
This study aims to analyze the influence of digital transformation on innovation and the moderating role of barriers to digitalization in this relationship within Brazilian micro, small, and medium enterprises (MSMEs). The sample comprises 731 Brazilian MSMEs. The findings indicate that digital transformation, characterized by digitalization strategies and technology usage, has a positive and significant impact on innovation. Moreover, barriers to digitalization negatively and significantly affect the relationship between digital transformation and innovation, but this effect is observed only in medium-sized enterprises. This study contributes to strategic management practices by providing insights into the role of digital transformation in business innovation. Future research should investigate why barriers to digitalization do not consistently impact the relationship between digital transformation and innovation.
Copyright (c) 2024 Edna Cassaro, Ieda Margarete Oro, Sérgio Begnini, Marcos Ricardo Rosa Georges https://creativecommons.org/licenses/by-nc-sa/4.0
Supply chain integration and its relationship with the business performance of metal-mechanics small and medium-sized enterprises
Small and medium-sized enterprises (SMEs) in Latin America demonstrate productivity levels of 32% and 43%, respectively, when compared to large companies. This lower productivity places them at a disadvantage in accessing the global value chain. According to the OECD/ECLAC (2012), factors that help SMEs improve their business performance include access to knowledge and information (from customers and suppliers) and the implementation of managerial systems, such as supply chain integration (SCI). This research examines the relationship between SCI and the business performance of metal-mechanics manufacturing SMEs in the metropolitan zone of Guadalajara (ZMG), Jalisco, Mexico. The findings indicate that supplier integration, internal integration, and customer integration have a positive and significant impact on business performance.
Copyright (c) 2024 Juan Bernardino Arellano-Rodríguez https://creativecommons.org/licenses/by-nc-sa/4.0
Evaluating ESG performance: The influence of firm size and gender diversity
This study examines the relationship between firm size and Environmental, Social, and Governance (ESG) scores, with a focus on the growing importance of sustainability and corporate social responsibility (CSR). Drawing on data from 4,525 U.S. companies, an Ordinary Least Squares (OLS) regression analysis reveals a significant positive association between firm size and ESG performance, suggesting that larger firms are better positioned to allocate resources toward sustainability initiatives. Furthermore, the findings indicate that board gender diversity has a positive impact on ESG scores, underscoring the importance of diverse perspectives in corporate governance. The results highlight the need for standardized ESG reporting and provide insights into how firm characteristics shape sustainability outcomes. This research offers practical guidance for corporate leaders and policymakers seeking to advance sustainability practices across organizations.
Sustainability and Corporate Social Responsibility
Business Ethics and Corporate Governance
Copyright (c) 2024 Raúl Gómez Martínez, Maria Luisa Medrano-Garcia, Daniel Amo Navas https://creativecommons.org/licenses/by-nc-sa/4.0
Knowledge absorption and innovation in UK SMEs: A study by economic sector and place
This study focusses on knowledge absorption in SMEs and their abilities to develop innovations. It does so by examining SMEs in three different economic sectors, namely, manufacturing, high-tech and services. In doing so it provides one of the first comparative studies of SMEs within these different sectors. It also examines variations by place and compares the performance of SMEs across four distinct places within the UK. The research is based around both a quantitative analysis of firm performances followed by a detailed in-depth qualitative study. Our results focussed on the stages of knowledge transfer from acquisition, assimilation, through to the transformation and exploitation of knowledge. The findings draw attention to the significance. of management practices within SMEs and recognised the importance of open innovation. The study indicates that place alone does not play a key role, compared with the industry sector.
Copyright (c) 2024 Gareth Shaw, David F Murphy, Alison Marshall, Alessandro Rosiello, Vania Sena, Junxiong Li https://creativecommons.org/licenses/by-nc-sa/4.0
Immigrants as entrepreneurs in emerging economies: Institutional, self-efficacy, and social networking effects on enterprise performance
While extensive research exists on immigrants as workers and migrant laborers, studies on immigrants as entrepreneurs in emerging economies are only beginning to emerge. This article addresses the limited knowledge on how immigrant entrepreneurs' agency, particularly their motivations, influences their enterprise growth. It provides a novel, in-depth analysis of how immigrant entrepreneurs leverage self-efficacy and social capital to navigate the challenges posed by the regulatory institutional environment. The study was conducted in South Africa using primary survey data, analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the proposed hypotheses. The findings indicate that entrepreneurial self-efficacy has a positive and significant impact on the growth and innovation performance of immigrant enterprises. However, the moderating effects of institutional factors were not significant in this relationship. This study underscores the importance of key drivers of immigrant entrepreneurship within emerging market contexts. The insights gained may be adapted by immigrant entrepreneurs to their specific local environments. The originality of this research lies in establishing closer empirical connections between previously unlinked factors in the study of immigrant entrepreneurship within an African market context.
Copyright (c) 2024 Boris Urban, Mahad Moti https://creativecommons.org/licenses/by-nc-sa/4.0
Entrepreneurial bricolage: A key to innovation for SMEs in a developing economy
Entrepreneurship promotes economic growth, particularly in developing economies where small and medium-sized enterprises (SMEs) are a significant source of employment and economic activity. However, SMEs in developing countries often face various resource constraints and weak institutions, forcing them to engage in entrepreneurial bricolage behavior by creatively combining existing resources. This study explores the relationship between entrepreneurial bricolage and product, process, and marketing innovation among SMEs in the Philippines. Logistic regression estimates reveal that entrepreneurial bricolage has a significant and positive impact on product, process, and marketing innovation. As entrepreneurial bricolage behavior increases, so does the probability of innovation, highlighting the importance of creative problem-solving in settings with inadequate resources. The study also emphasizes the need for policies that support SMEs by providing enabling resources, such as robust infrastructure and reliable communication platforms, to encourage firm innovation that fosters positive spill-over effects on the broader economy.
Copyright (c) 2024 John Paul C. Flaminiano https://creativecommons.org/licenses/by-nc-sa/4.0
The influence of green quality of work life, green employee engagement, and green rewards on green employee retention in SME employees
One of the biggest challenges for employers is retaining employees, who are crucial for enhancing company performance, especially in SMEs. This research aims to determine the influence of Green Quality of Work Life, Green Employee Engagement, and Green Rewards on Green Employee Retention. The study employs a quantitative approach, sampling 204 SME employees in Indonesia, determined using the Slovin formula with a 7% margin of error. Quota sampling techniques and questionnaires distributed via Google Forms were used for data collection. The analytical tool used is SEM PLS version 4, incorporating validity and reliability testing, Fornell-Larcker Criterion, Heterotrait-Monotrait Ratio, and hypothesis testing, with responses measured on a 5-point Likert scale. The results indicate that Green Quality of Work Life does not significantly affect Green Employee Retention. However, Green Employee Engagement and Green Rewards have a significant impact on Green Employee Retention. The theoretical contribution of this research lies in the application of financial motivation theory, particularly regarding the lowest mean of the first indicator. This theory could be valuable as a moderator in future research models. Practically, the study suggests that increasing salaries and providing knowledge and training as forms of additional expertise can enhance employee retention.
Copyright (c) 2024 Putri Wicaksari, Asep Rokhyadi Permana Saputra, Aminah Nur Rahmah https://creativecommons.org/licenses/by-nc-sa/4.0
Local firms spillovers from multinationals’ exports in Switzerland
This paper aims to examine how local firms can learn from the export activities of large multinational corporations (MNCs). Arguing that MNCs’ export activities could act as catalysts for local firms, allowing them to start exporting or intensify their export volume, we hypothesize that the size and extent of export spillovers depend on the linkage between local firms and MNCs, the geographical distance between them in the home country, and the foreign export market destination in terms of psychic distance from the home market. Using Swiss manufacturing firm-level data, we found support to this learning by exporting effect through which local firms benefit from the presence of MNCs’ exporter counterparts and the export activities of their upstream MNCs’ suppliers, with particular effects of the nature and the physical location of destinations. From these findings, several important academic and practical implications are exhibited and discussed
Copyright (c) 2024 Lamia Ben Hamida https://creativecommons.org/licenses/by-nc-sa/4.0
What are the main drivers of SMEs’ production of sustainability reports?
This study aims to deepen our understanding of the theoretical frameworks that underlie SMEs' disclosure of sustainability information. Qualitative empirical research was conducted on SMEs that proactively engage in sustainability reporting. To identify the key drivers, interviews were conducted with a sample of Spanish SMEs, and the reasons for sustainability reporting provided by informants were ranked by frequency. Our findings indicate that stakeholder theory holds a prominent position, closely followed by legitimacy theory and the resource-based view. This ranking reveals a mixture of external and internal drivers, contributing to the existing literature by emphasizing the predominance of management factors over sociological arguments in favor of sustainability reporting in SMEs. Regulators, practitioners, and academics can benefit from these findings to better understand the decision-making processes of SMEs regarding sustainability reporting practices, while accounting for their relationships in the contexts in which they operate.
Copyright (c) 2024 M. Dolores Guerrero-Baena, Francisca Castilla-Polo, Pablo Rodríguez-Gutiérrez https://creativecommons.org/licenses/by-nc-sa/4.0
The reciprocity of perceived organizational support and employee engagement in SMEs during the COVID-19 pandemic
This paper examines the reciprocal relationship between perceived organizational support (POS) and employee engagement within small and medium-sized enterprises (SMEs) during the COVID-19 pandemic. During this crisis, a positive association was observed: SMEs that committed to their employees tended to see a corresponding engagement from their employees. To assess how performance influenced this relationship, the study also explored whether this reciprocal pattern varied with different levels of business performance—decreased, unchanged, or improved—relative to pre-crisis economic performance. An empirical analysis was conducted on a sample of 114 SMEs from the Andalusian region (Spain) using a regression model with mediating effects. The findings reveal that reciprocity between POS and employee engagement was evident during the pandemic and was particularly strong among SMEs belonging to the sub-sample with negative economic results.
Copyright (c) 2024 Vera Ferrón Vílchez, María Eugenia Senise Barrio, Rocío Llamas Sánchez https://creativecommons.org/licenses/by-nc-sa/4.0