Analysis of dynamics and opportunity cost of SME operations

Virupaxi Bagodi and Deepankar Sinha

International Journal of Productivity and Quality Management, 2023, vol. 38, issue 2, 166-192

Abstract: SMEs contribute significantly to the economy but have inconsistent growth and high mortality rates. Authors intend to comprehend the dynamics arising out of product-mix, markets, and governance affecting SME performance. Two hundred responses were obtained using a questionnaire. Cluster analysis was adopted for investigation. For each cluster, Bayesian-Pearson-correlation and Bayesian-linear-regression were carried out to determine the associations that were not explicit (frequentist approach). Results imply that a standard policy does not suit all SMEs and requires different prescriptions. Manufacturers of fixed type-of-products and those operating in the export-market show greater stability. Family businesses have slower growth rates but better customer-relations. Overtime and delay due to changes in production scheduling are two main ailments. None of the SMEs are lean and resilient. SMEs be categorised on their stage in the organisational life cycle, market it operates, ownership, type of product, supply-chain, and operations philosophy for better policy making.

Keywords: small and medium enterprises; SMEs; cluster analysis; frequentist and Bayesian approaches; opportunity cost; performance. (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=129605 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijpqma:v:38:y:2023:i:2:p:166-192

Access Statistics for this article

More articles in International Journal of Productivity and Quality Management from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().