Innovation might be the most critical factor for an SME (new or existing one) in order to survive and succeed! Can you think 3 critical success factors that will help an SME innovate
productively?
Tarirai Chinyepe -DBA 806(Wednesday, 23 January 2019 06:07)
The survival of the SMEs is invariably dependent on how capable are these organisations effectively contact themselves with the effect of factors that do affect their performance. There are a number
of critical success factors that drives performance of SMEs. It is therefore of paramount importance to identify these factors which indeed would require the attention of the SMEs in order that they
create sustained growth and profitability. For SMEs to survive the following critical factors are required otherwise it will be disastrous.
SMEs are regarded as the engine room for economic growth and development in most countries as they help in the creation of employment and poverty reduction measures in both developing and developed
economies.
a) Owner/Management/Shareholder commitment:- the involvement of the owner is predominantly based on the appetite of the success and survival of the business in the long-term. For the success and
survival of the business the owners is dependable on how the organisation was formed. The formation depends on motivation that resulted in the formation of the business, whether the owner was pushed
or pulled by certain factors. The level in which the owner/management commitment will act as a catalyst in the influencing of the level in which support is rendered or provided by the other
functional managers (Belassi & Tukel, 1996) and the behavior of the general staff as well.
The owner/ manager of the SME should as as an agent of change and can influence behavior of people who work for the organisation so that their activities would focus on the key stakeholders
(Bassioni., Price & Hassan, 2005). In addition to this the involvement will also influence the behavior of employees through training and development of employees, placement or incentives that
will help to boost morale and resistance to change by employees in the communication of strategic planning for the organisation. The SME can contact training sessions customer care and other staff
development programme that will help skills enhancement for effective performance and productivity. Commitment will ensure that business works together as a team with the intention of achieving its
desired objectives.
b) Employee commitment:- committed employees are key to strong organisation performance, successful change and ultimately a lasting corporate success. There is need for aiming to put more emphasis on
encouraging, commitment of employees by allowing them to participate in decision-making, autonomy, employee motivation, employee loyalty, recognition, employee learning and professional growth
(Scandura, 2007).
The owner/manager can strengthen the corporate culture of employees by listening to and support them hence this will increase employee satisfaction and retention and ultimately a happy workforce
would increase productivity, growth and sales volumes.
In the advent of failure to motivate employees can lead to a dissatisfaction, low commitment which are a recipe of reporting for work late, absenteeism, high staff turnover, lack of willingness to
work overtime and generally low productivity.
c) Innovation:- according to Saunila, (2016), innovation is a requisite for sustainable long-term business performance. The survival and success of the SME organisation will depend on its strength in
innovation capability. One of the keys to any successful business is being able to come up with new ideas to keep operations, products and services fresh.
Rogers in 1998 defined innovation as " a term for defining a series of vast changes in business activities which will lead to firm performance improvement. These changes may be related to new or
improved goods or services, invest in new machinery, opening new markets, investment on education, creating intellectual assets or technologies". Innovation allows organisations to coordinate
themselves with changes of the environment, market and customer demands. When enterprise is faced with constrained resources the SMEs would need to develop new abilities, entrepreneurial orientation
culture and the mindset for survival and growth strategies.
Organisations that usually take the largest risk, close the biggest gaps and identify opportunities are rewarded with the title of true investors and leaders by their consumers and peers and these
true innovators are setting themselves apart from any and all competition.
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Tarirai Chinyepe -DBA 806 (Wednesday, 23 January 2019 06:07)
The survival of the SMEs is invariably dependent on how capable are these organisations effectively contact themselves with the effect of factors that do affect their performance. There are a number of critical success factors that drives performance of SMEs. It is therefore of paramount importance to identify these factors which indeed would require the attention of the SMEs in order that they create sustained growth and profitability. For SMEs to survive the following critical factors are required otherwise it will be disastrous.
SMEs are regarded as the engine room for economic growth and development in most countries as they help in the creation of employment and poverty reduction measures in both developing and developed economies.
a) Owner/Management/Shareholder commitment:- the involvement of the owner is predominantly based on the appetite of the success and survival of the business in the long-term. For the success and survival of the business the owners is dependable on how the organisation was formed. The formation depends on motivation that resulted in the formation of the business, whether the owner was pushed or pulled by certain factors. The level in which the owner/management commitment will act as a catalyst in the influencing of the level in which support is rendered or provided by the other functional managers (Belassi & Tukel, 1996) and the behavior of the general staff as well.
The owner/ manager of the SME should as as an agent of change and can influence behavior of people who work for the organisation so that their activities would focus on the key stakeholders (Bassioni., Price & Hassan, 2005). In addition to this the involvement will also influence the behavior of employees through training and development of employees, placement or incentives that will help to boost morale and resistance to change by employees in the communication of strategic planning for the organisation. The SME can contact training sessions customer care and other staff development programme that will help skills enhancement for effective performance and productivity. Commitment will ensure that business works together as a team with the intention of achieving its desired objectives.
b) Employee commitment:- committed employees are key to strong organisation performance, successful change and ultimately a lasting corporate success. There is need for aiming to put more emphasis on encouraging, commitment of employees by allowing them to participate in decision-making, autonomy, employee motivation, employee loyalty, recognition, employee learning and professional growth (Scandura, 2007).
The owner/manager can strengthen the corporate culture of employees by listening to and support them hence this will increase employee satisfaction and retention and ultimately a happy workforce would increase productivity, growth and sales volumes.
In the advent of failure to motivate employees can lead to a dissatisfaction, low commitment which are a recipe of reporting for work late, absenteeism, high staff turnover, lack of willingness to work overtime and generally low productivity.
c) Innovation:- according to Saunila, (2016), innovation is a requisite for sustainable long-term business performance. The survival and success of the SME organisation will depend on its strength in innovation capability. One of the keys to any successful business is being able to come up with new ideas to keep operations, products and services fresh.
Rogers in 1998 defined innovation as " a term for defining a series of vast changes in business activities which will lead to firm performance improvement. These changes may be related to new or improved goods or services, invest in new machinery, opening new markets, investment on education, creating intellectual assets or technologies". Innovation allows organisations to coordinate themselves with changes of the environment, market and customer demands. When enterprise is faced with constrained resources the SMEs would need to develop new abilities, entrepreneurial orientation culture and the mindset for survival and growth strategies.
Organisations that usually take the largest risk, close the biggest gaps and identify opportunities are rewarded with the title of true investors and leaders by their consumers and peers and these true innovators are setting themselves apart from any and all competition.