Environmental turbulence: impact on UK SMEs’ manufacturing priorities

Abstract

Purpose: This paper aims to assess the impact of 2008 recession (Great Recession)-led environmental turbulence on the manufacturing small and medium enterprise (SME) sector and its related competitive priorities. Design/methodology/approach: A mixed methods research strategy, consisting of a survey of 104 manufacturing SMEs located in the UK, complemented by 17 in-depth interviews with senior management representatives from this survey group. Findings: Senior managers have prompted a realignment of competitive manufacturing priorities accounting for external financial and market conditions. Differing competitive priorities postrecession are given to various areas of manufacturing decision-making, the greatest impact being on manufacturing costs. Manufacturing flexibility, performance in meeting customer deliveries and enhancing supplier selection are merited to increase priority with relatively little change for process technology, quality and environmental practices. Research limitations/implications:The sample of survey participants was relatively small, therefore prohibiting an assessment of differences in competitive priorities by sub-sectors of manufacturing SMEs. This was offset by a healthy number of informative, in-depth interviews that provided a richness of examples and insight into the shifting priorities for the sector. Practical implications: Clear priorities have emerged around reducing manufacturing costs, being more flexible in manufacturing and improving outward performance relating to customers and suppliers. Originality/value: This builds on established manufacturing strategy constructs and points to necessary competitive priority realignment focused on the performance areas listed above.

Examining Environmental Turbulence Intensity: A Strategic Agility and Innovativeness Approach on Firm Performance in Environmental Turbulence Situations

“…Ref. [21] define ET as the rate of innovation in sectors where competition is unpredictable. According to [22], ET might be described as the rate of change within the industry and technology.…”

Entrepreneurial resilience and self-efficacy during global crisis: study of small businesses in a developing economy

“…Product innovation: Innovation is key for inclusive and sustainable business models and practices. MSMEs provide fertile ground for innovation and in the case of small enterprises, it is a precursor to growth (Sainidis and Robson, 2016). To survive and sustain in the present volatile environment small firms must embrace innovation in their day-to-day functioning and managerial aspects (Shrirame and Soni, 2015).…”

Reflecting on the use of mixed methods in the subject of sustainable strategies in manufacturing SMEs

“…Within the research project described in this chapter, the research team (Sainidis and Robson, 2016;2017) used a suitable survey and interview sample drawn from the population of UKbased manufacturing SMEs. The study made use of purposive samples for both its quantitative and qualitative data collection phase.…”