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Organizational capability in SMEs

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  • Patrizia Garengo
  • Giovanni Bernardi

Abstract

Purpose - The aim of this study is to investigate both the path taken by companies in order to survive in a competitive environment and the factors that have favoured or limited their development. Design/methodology/approach - The study was carried out using a retrospective approach. Empirical evidence was gathered using a descriptive survey and data collected during previous research programs involving 100 SMEs located in the Veneto region (Italy). Findings - The findings show that a lack of organizational capabilities is one of the main factors limiting development in SMEs. The companies investigated appear to follow similar paths and performance measurement systems (PMS) could play a key role as a potential driver of managerial development in SMEs. Research limitations/implications - The study refers solely to Italian SMEs located in the Veneto region. Conclusions on the role played by PMS as a system for supporting development were based on a theoretical study; anad hocempirical study would be useful for further investigation of this topic. Practical implications - The study emphasizes the important role played by organizational capability for favouring the competitiveness and survival of SMEs. The study indicated that in SMEs managerial developments usually come later, following changes in strategy. Firms could prevent managerial crisis by implementing managerial systems. Originality/value - Traditionally the growth of SMEs is measured by turnover and number of employees. This study highlights the importance of investigating not only quantitative, but also qualitative growth to analyse development in SMEs. PMS is presented as a key managerial system that can support qualitative growth and promote the competitiveness of SMEs.

Suggested Citation

  • Patrizia Garengo & Giovanni Bernardi, 2007. "Organizational capability in SMEs," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 56(5/6), pages 518-532, June.
    • Handle: RePEc:eme:ijppmp:v:56:y:2007:i:5/6:p:518-532
    DOI: 10.1108/17410400710757178
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    Citations

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    Cited by:

    1. Curraj, Erjon & Lab, SDAG, 2020. "BUSINESS DIGITALIZATION OF SMEs IN ALBANIA: INNOVATIVE APPROACHES AND THEIR IMPACT ON PERFORMANCE," Thesis Commons p3yq9, Center for Open Science.
    2. Dafna Schwartz & Raphael Bar-El & David J. Bentolila, 2022. "Adapting Reverse Mentoring Strategy to SMEs: A New Pilot Model Implemented in Brazil," Sustainability, MDPI, vol. 14(15), pages 1-15, August.
    3. Moyassar Al-Taie & Aileen Cater-Steel, 2020. "The Organisational Life Cycle Scale: An Empirical Validation," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 29(2), pages 293-325, September.
    4. Kankam-Kwarteng, Collins & Osman, Barbara & Acheampong, Stephen, 2020. "Performance of restaurants: Recognizing competitive intensity and differentiation strategies," MPRA Paper 103781, University Library of Munich, Germany.
    5. Syamsul Azri Abdul Rahman & Safrul Izani Mohd Salleh & Mohd Hafiz Harun & Noryati Yaakub & Yasmiza Long, 2018. "The Awareness and Practices of Islamic Values in Performance Measurement System (PMS): The Case of a Malaysian Small and Medium Enterprise (SME)," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 8(12), pages 1147-1156, December.
    6. Tareq N. Hashem & Ahmad Ismaiel Al maani, 2021. "The Impact of Strategic Fit on the Marketing Performance of the Industrial Corporations in Jordan," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(2), pages 115-115, July.
    7. Francesca Sgr? & Federica Palazzi & Massimo Ciambotti & Lorenzo Gelsomini, 2020. "Factors promoting and hindering the adoption of management accounting tools. Evidence from Italian manufacturing SMEs," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2020(Suppl. 1), pages 19-38.
    8. Tommaso Pucci & Christian Simoni & Lorenzo Zanni, 2015. "Measuring the relationship between marketing assets, intellectual capital and firm performance," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 19(3), pages 589-616, August.
    9. Agnieszka Ma³kowska & Ma³gorzata Uhruska, 2022. "Factors affecting SMEs growth: the case of the real estate valuation service industry," Oeconomia Copernicana, Institute of Economic Research, vol. 13(1), pages 79-108, March.
    10. Kankam-Kwarteng, Collins & Osman, Barbara & Acheampong, Stephen, 2020. "Performance of restaurants: Recognizing competitive intensity and differentiation strategies," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 6(3), pages 25-34.
    11. Mara Del Baldo & Anna Maria Arcari & Marcantonio Ruisi, 2019. "Controllo di gestione nelle PMI e consulenti esterni," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2019(1 suppl.), pages 69-94.
    12. Antonia Madrid-Guijarro & Dominique Philippe Martin & Domingo García-Pérez-de-Lema, 2021. "Capacity of open innovation activities in fostering product and process innovation in manufacturing SMEs," Review of Managerial Science, Springer, vol. 15(7), pages 2137-2164, October.
    13. Nicola Castellano & Lorenzo Leto, 2021. "Implementazione di Sistemi di Misurazione delle Performance nelle PMI: elementi di analisi nella prospettiva del cambiamento organizzativo," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2021(1), pages 129-150.

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