Business management models for high technological small to medium enterprises (SMEs), incorporating the close relations of subdivisions within the company, and aspects of volatile economic climates

Abstract

It is the authors' opinion that new product development (NPD), marketing, production and financial management within an SME cannot be separated from each other as they are closely linked to each other and often managed by the same person within the company (SME). Statistical trends indicate that the biggest cause of failure of SMEs is lack of capital and cash flow related problems. It is naive to think that any division within the SMEs especially NPD, production and engineering management can be separated and managed as separate entities without also involving the financial status of the company and its cash flow within any given stage of the project development. The authors herewith present proven models to do NPD, marketing and production within high technology SMEs. The models proposed are substantiated by an investigation using a sample of 30 high technology SMEs, within the electronic/electrical industry The models present management guidelines which keep financial vulnerability in mind and offer engineering management structures to help emerging high technology SMEs. The goal is not to create new analytic models, but to offer optimum use of current methods.