This study examines whether access to next-generation telecommunications infrastructure, such as 5G, can mitigate the adverse effects of depopulation on the performance of SMEs located in rural areas. The adoption of digital technologies associated with Industry 4.0, including big data analytics, cloud computing, and artificial intelligence, enables firms to optimize processes, enhance competitiveness, and ultimately improve profitability. However, depopulation may hinder digital transformation by limiting access to adequate telecommunications infrastructure in rural areas. In this context, the study offers a new perspective on how environmental conditions and local resources shape economic activity. Using quantitative analysis, the findings show that advanced connectivity is not merely a technical improvement but a critical factor capable of offsetting the adverse effects of depopulation on business performance. These results provide important insights into the resilience of rural SMEs and offer a strategic basis for the design of development policies in depopulated areas.
This issue of Small Business International Review wishes to devote a few words of recognition, gratitude, and affection to Carlos Martínez-Abarca Pastor, a person closely linked to the history of this journal and to the editorial project that made it possible. Carlos’s relationship with this project began long before the launch of SBIR. Since 2008, he has been linked to FAEDPYME, where he worked as a project officer and contributed, steadily and discreetly, to the development of many of the Foundation’s initiatives. Among them was the creation, in 2012, of FAEDPYME International Review, conceived as an international academic forum for research on small and medium-sized enterprises. From those first steps, Carlos was present as the journal’s managing editor. During that initial stage, until 2016, his work was essential in sustaining and developing an editorial initiative that would later enter a new phase. When, in 2017, the journal became Small Business International Review, Carlos continued to carry out that role from the very foundation of SBIR. His presence has therefore accompanied not only the birth of this journal, but also the transition between two stages of the same editorial journey. Throughout all these years, Carlos has carried out work that was often quiet and not always visible to readers and authors, but essential for the journal’s progress, consolidation, and growth. Behind every published issue, every editorial process, every technical adjustment, every communication, and every final detail, there has been his serious, constant, and generous work. Those of us who have shared this project with him know well that his contribution has gone far beyond the duties formally associated with his position. Carlos has always taken on more tasks and responsibilities than could reasonably be expected of him, not out of obligation, but out of personal commitment, a deep sense of responsibility, and a profound dedication to the journal. His way of working helped resolve many difficulties, gave continuity to editorial processes, and enabled SBIR to build, step by step, an increasingly solid, professional, and recognizable structure. In a scientific journal, the most visible names are usually those of authors, reviewers, and editors. Yet there are people whose contribution is decisive precisely because they make everything else possible. Carlos is one of those people. His role as managing editor has sustained the journal’s day-to-day work, cared for its processes, attended to its details, and maintained the continuity of a project that, without such constant work, would hardly have reached the level of maturity it has today. This collective effort, to which Carlos has contributed decisively, has enabled SBIR to achieve especially important national and international recognitions in recent years: the granting and renewal of the FECYT Quality Seal for Spanish scientific journals, inclusion in Scopus, with a Q2 classification in one of its subject areas, and inclusion in the Academic Journal Guide, with a 1 rating. These milestones are the result of the work of many people — editors, the editorial team, the scientific committee, reviewers, and authors — but it would be unfair not to acknowledge that Carlos’s work has been an essential part of the editorial infrastructure that made them possible. For us, who have worked with him for so many years, Carlos has not only been a key figure in the journal’s editorial management. He has been, and remains, a close colleague: reliable, discreet, and generous; someone with whom we have shared concerns, urgent matters, difficult decisions, and also many satisfactions. His name forms part of SBIR’s history, of the previous stage that made its birth possible, and, more broadly, of the FAEDPYME trajectory from which this editorial project emerged. Current circumstances prevent him from continuing to lead the day-to-day tasks he has carried out for so many years. Precisely for that reason, this letter is, above all, a gesture of gratitude and recognition: for his work, his commitment, his patience, his availability, and the way in which he has always cared for the journal. It is also an expression of gratitude for the privilege of having known him and of having shared with him such an important part of this journey. As a lasting expression of this recognition, the SBIR Editorial Board has agreed to appoint Carlos Martínez-Abarca Pastor as a member of the journal’s Honorary Committee. Through this gesture, we wish to state that his contribution forms part of SBIR’s editorial identity and of the living history of this project. His name will remain linked to a journal that he has helped build from its origins and to which he has devoted so many years of work, commitment, and affection. SBIR cannot be understood without Carlos Martínez-Abarca Pastor. His work is present in the journal’s evolution, in its way of working, and in the gratitude of all of us who have had the good fortune to walk alongside him. Carlos, thank you for your work, your generosity, your loyalty, and everything you have given to this journal from its very beginnings. This issue is also intended as a token of our recognition and affection. Gregorio Sánchez Marín Julio Diéguez Soto Co-Editors-in-Chief of Small Business International Review
This study examines the career choices of potential next-generation family business successors (NEXTs) and their willingness to continue family businesses, with a focus on Finnish firms. It adopts a qualitative multiple-case study design and a phenomenographic approach. Data were collected through individual semi-structured interviews and two focus group interviews and analyzed using thematic coding. The study builds on Sharma and Irving’s (2005) model of successor commitment—comprising affective, normative, and continuance dimensions—while incorporating the adoption of entrepreneurial behavior. The findings indicate that, alongside family expectations and NEXTs’ identity and psychological ownership, attitudes toward entrepreneurship and enacted entrepreneurial behavior also shape career choices. This study contributes by identifying key factors influencing NEXTs’ decisions and offers insights for incumbents, successors, and succession practitioners. The findings also have practical implications for succession planning and for the design of entrepreneurship education and training programs tailored to the next generation.
Sustainable strategies and digitalization play central roles in the transition of manufacturing companies toward the development of sustainable products and services. This study examines whether the implementation of environmental care strategies and the integration of advanced technological tools influence firm performance. It also explores the indirect effect of sustainable strategies on performance through digitalization in manufacturing organizations. To test these relationships, the study applies a partial least squares structural equation modeling (PLS-SEM) technique to a sample of 120 firms in the manufacturing sector in Coahuila, Mexico. The results indicate that when organizations implement energy conservation practices, reduce waste generation, and undertake energy infrastructure projects—combined with the adoption of advanced technologies that support information integration and analysis—they achieve higher levels of performance. These findings offer important implications for managerial decision-making and for the development of public policies aimed at promoting sustainability-oriented strategies and digital transformation in small and medium-sized enterprises in developing countries.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
