Managing routines and keeping on track: technology, human cognition and performativity in SMEs

Abstract

PurposeRoutine dynamics provide a robust theoretical framework to explore a wide range of organizational phenomena. However, the study of routines and the effect of technology on its performativity in small and medium-sized enterprises (SMEs) still lack attention by researchers. This paper aims to analyze how the balance between process technology and human cognition affects routines' performativity in SMEs.Design/methodology/approachIt was conducted a multicase study composed of Brazilian SMEs in the bakery industry. Data collection took place through interviews with managers and employees, observation of operational processes and document analysis. Thematic content analysis was adopted for categorization and data analysis.FindingsThe authors’ findings allow inferring there is no primacy of a more automated or artisanal production process to achieve competitiveness, which breaks the paradigm of the superior performance of automated production over the artisanal process that haunts SMEs. Though technology increases production efficiency, the artisanal approach can be valuable at promoting a company by commercially using this know-how to explore other business models appreciated by the public.Practical implicationsThe authors’ proposals became relevant in a practical perspective once it works as a parameter for SME managers' decision-making about new investments in production resources and to foster public policies and other actions developed by support services for small businesses.Originality/valueThis study expands the frontiers in routines literature on SMEs, which lacks deepening. From this, SME managers can intensify actions to optimize process routines performativity through technologies or human cognition to keep the routines on track.

Social, environmental, and economic dimensions of innovation capabilities: Theorizing from sustainable business

“…Instead of purely economic motivation, more and more small‐ and medium‐sized enterprises (SMEs) are born out of social and environmental missions (see Halme & Korpela, 2014; Lynch & Ferasso, 2023; Ostermann, Nascimento, Steinbruch, & Callegaro‐de‐Menezes, 2021), highlighting the importance of SMEs for sustainable development. Commonly, SMEs suffer more from a lack of resources than large companies (Parker et al, 2009; SEBRAE, 2016), forcing them to do more with less (Costa Júnior et al, 2022) and to be more innovative to overcome these limitations in favor of sustainability (Halme & Korpela, 2014). Also, although SMEs do not have the same socioenvironmental impact as large companies, they are essential players in sustainable transformation when analyzed together (Lynch & Ferasso, 2023).…”

“…Third, we selected companies that were already selling their products and services. This is because early-stage companies (like some start- suffer more from a lack of resources than large companies (Parker et al, 2009;SEBRAE, 2016), forcing them to do more with less (Costa Júnior et al, 2022) and to be more innovative to overcome these limitations in favor of sustainability (Halme & Korpela, 2014). Also, although SMEs do not have the same socioenvironmental impact as large companies, they are essential players in sustainable transformation when analyzed together (Lynch & Ferasso, 2023).…”