Classification of micro, small and medium enterprises (M-SME) based on their available levels of knowledge

This paper proposes a novel and practical method of classifying micro, small and medium enterprises (M-SME) based on their available levels of knowledge. This classification considers that the specific problems that dominate a company’s operations are related to the level of knowledge available. The...

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Bibliographic Details
Published in:Technovation 2016-01, Vol.47, p.59-69
Main Authors: López-Ortega, Eugenio, Canales-Sanchez, Damian, Bautista-Godinez, Tomás, Macias-Herrera, Santiago
Format: Article
Language:English
Subjects:
Cluster analysis
Discriminant analysis
Knowledge available
SME classification
SME taxonomy
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Summary:This paper proposes a novel and practical method of classifying micro, small and medium enterprises (M-SME) based on their available levels of knowledge. This classification considers that the specific problems that dominate a company’s operations are related to the level of knowledge available. Therefore, identifying the dominant problem groups facing the company can enable an estimate of the level of knowledge available in the enterprise. Data from 2698 Mexican M-SMEs are used to identify operational problems. The main problem groups are obtained through a cluster analysis. The proposed classification consists of three levels of knowledge based on the interpretation of the dominant problem groups in each enterprise. Each of the 2698 Mexican M-SME are classified by a discriminant analysis. Nearly half of the M-SME are classified as having a lower level of available knowledge, and only 10% are classified with the highest level. No difference is observed between the size of the company and the level of available knowledge. This means that growth in the number of employees and sales of M-SMEs is not necessarily accompanied by an accumulation of knowledge that companies can use to improve their operations. •Method of classifying enterprises is proposed based on available of knowledge.•Data from 2698 Mexican SMEs are used to identify operational problem groups.•Classification consists of three levels of knowledge based on problem groups•Half of the M-SME are classified as having a lower level of available knowledge.•No difference is observed between enterprise’s size and level of knowledge.
ISSN:0166-4972
1879-2383
DOI:10.1016/j.technovation.2015.10.001