Innovation's Governance and Investments for Enhancing Competitiveness of Manufacturing SMEs
Law and Economics Yearly Review Journal, vol. 3, part 1, pp. 72-97, Queen Mary University, London, UK, ISSN 2050-9014
24 Pages Posted: 9 Sep 2014 Last revised: 22 Jan 2015
Date Written: June 27, 2014
To become innovative and competitive manufacturing contractors, SMEs have to be capable to supply manufacturers with advanced equipment, components, and tools for improved manufacturing and engineering operations. Besides, despite their foremost numbers and importance in job creation, traditionally SMEs encounter difficulty in obtaining formal credit or equity. Maturities of commercial bank loans extended to SMEs are often limited to a period far too short to pay off any sizeable investment. Many European governments and international financial institutions have tried to address the problems of high transaction costs and risks by creating subsidized credit programmes and/or providing loan guarantees. Such projects have often fostered a culture of non-repayment or failed to reach the target group or achieve financial self-sustainability. Further, it tries to understand what are the main barriers for SMEs with respect to the realisation of their innovative potential and their capacity to improve internal processes by the adoption of innovative manufacturing techniques and a graduated organizational change. They are becoming particularly important for achieving greater productivity, lower operational costs, and higher revenues (usually characterized by reduced access to external finance, unavailability of wider distribution channels, low internationalization, etc.). The purpose of this article at last is to clarify how on-line training on automation and innovation fields can bring economic and organizational benefits. Innovative training contents can improve manufacturing knowledge of managers and employees, especially on industrial automation systems.
Keywords: SMEs, corporate governance, managerial skills, automation, innovation, change management, human resources, people management
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