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Does Provision of Smart Services Depend on Cooperation Flexibility, Innovation Flexibility, Innovation Performance or Business Performance in SMEs?

Kaňovská, Lucie; Doubravský, Karel

Abstract

Many manufacturers provide a lot of accompanying services to their products. However, not all of them supply smart services, because the move towards these is not easy, especially for SMEs, which often struggle with a lack of money, insufficient digital technologies or unskilled employees. The aim of this paper is to find out if smart service provision depends on cooperation flexibility, innovation flexibility, innovation performance and business performance in SMEs. To fulfil the research aim, quantitative research was carried out among 112 Czech electrotechnical SMEs. The findings show that the higher the rating companies give to working with external customers, the less chance they have of providing smart services. Thus, SMEs who value cooperation flexibility with external customers as less important are more likely to provide smart services. The higher rating companies give to product innovation flexibility, the higher the chance for providing smart services. Thus, we can expect companies who value product innovation flexibility more highly to more likely deliver smart services.

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64|h ps://doi.o g/10.3311/PPso.15709 C ea i e Commons A ibu ion b Pe iodica Poly echnica Social and Managemen Sciences, 29(1), pp. 64–69, 2021 Ci e his a icle as: Kano ska, L., Doub a sky, K. (2021) "Does P o ision o Sma Se ices Depend on Coope a ion Flexibili y, Inno a ion Flexibili y, Inno a ion Pe o mance o Business Pe o mance in SMEs?", Pe iodica Poly echnica Social and Managemen Sciences, 29(1), pp. 64–69. h ps://doi.o g/10.3311/PPso.15709 Does P o ision o Sma Se ices Depend on Coope a ion Flexibili y, Inno a ion Flexibili y, Inno a ion Pe o mance o Business Pe o mance in SMEs? Lucie Kano ska1*, Ka el Doub a sky2 1 Ins i u e o Managemen , Facul y o Business and Managemen , B no Uni e si y o Technology, 2906/4 Kolejni, 612 00 B no, Czech Republic 2 Ins i u e o In o ma ics, Facul y o Business and Managemen , B no Uni e si y o Technology, 2906/4 Kolejni, 612 00 B no, Czech Republic * Co esponding au ho , e-mail: kano ska@ bm. u b .cz Recei ed: 07 Feb ua y 2020, Accep ed: 18 May 2020, Published online: 19 Oc obe 2020 Abs ac Many manu ac u e s p o ide a lo o accompanying se ices o hei p oduc s. Howe e , no all o hem supply sma se ices, because he mo e owa ds hese is no easy, especially o SMEs, which o en s uggle wi h a lack o money, insu icien digi al echnologies o unskilled employees. The aim o his pape is o ind ou i sma se ice p o ision depends on coope a ion lexibili y, inno a ion lexibili y, inno a ion pe o mance and business pe o mance in SMEs. To ul il he esea ch aim, quan i a i e esea ch was ca ied ou among 112 Czech elec o echnical SMEs. The indings show ha he highe he a ing companies gi e o wo king wi hex e nal cus ome s, he less chance hey ha e o p o iding sma se ices. Thus, SMEs who alue coope a ion lexibili y wi h ex e nal cus ome s as less impo an a e mo e likely o p o ide sma se ices. The highe a ing companies gi e o p oduc inno a ion lexibili y, hehighe he chance o p o iding sma se ices. Thus, we can expec companies who alue p oduc inno a ion lexibili y mo e highly o mo e likely deli e sma se ices. Keywo ds se ices in manu ac u ing, sma se ices, SMEs, lexibili y, pe o mance, elec o echnical manu ac u e s, Czech Republic 1 In oduc ion A lo o manu ac u e s wo k on he ans o ma ion o hei angible p oduc s o p o ision se ices o sa is y hei cus- ome s wi h be e complexi y. Accompanying se ices a e able o suppo he company posi ion on he ma ke s and a e one o he impo an sou ces o compe i i e ad an age. Wi h he g owing impo ance o digi al echnology, man- u ac u e s a e s a ing o o e sma se ices o hei cus- ome s. Digi al echnologies assis companies o p oduce and deli e "indi idual cus omized" p oduc s and se - ices. Hence, cus ome s could be ope a ed on an indi id- ual basis, which could imp o e cus ome sa is ac ion and con o ming hei quali y expec a ions (Sade e al., 2019). The p ocess o in eg a ing se ices o angible p oduc s is called se i iza ion, and he in eg a ion o sma se ices is called sma se i iza ion. The issue o sma se i iza ion is speci ic o SMEs, whe e he implemen a ion o sma echnologies is mo e demanding due o he o en limi ed inancial and pe sonnel capaci ies. Coope a ion be ween companies is e y impo - an oday and is gaining in impo ance. Equally, he impo - ance o lexibili y, which is mo e and mo e ecognized as essen ial o building a sus ainable compe i i e ad an- age in p oduc inno a ion, is inc easingly impo an . To be able o be e unde s and he si ua ion in man- u ac u ing SMEs in he ield o sma se ice p o ision, his pape se s ou o asce ain i sma se ice p o ision depends on inno a ion and coope a ion lexibili y and inno- a ion and business pe o mance in elec o echnical SMEs in he Czech Republic. The ca ego iza ion o SMEs in he esea ch is in acco dance wi h he Wo ld Bank's de ini ion o SMEs as en e p ises employing be ween 10–249 employ- ees. The empi ical pa o he wo k is ocused on elec ical enginee ing companies (CZ-NACE 26 and CZ-NACE 27), which a e impo an ep esen a i es o he manu ac u - ing indus y and a e subcon ac o s o many o he sec- o s o he economy. In addi ion, he elec ical enginee ing Kano ska and Doub a sky Pe iod. Poly ech. Soc. Man. Sci., 29(1), pp. 64–69, 2021|65 indus y is a global indus y, which means ha on he one hand, many Czech companies can ha e cus ome s a ound he wo ld, while on he o he hand, compe i o s can also be global. As a esul , i is necessa y o cons an ly ocus on esea ch and de elopmen , inno a e p oduc s, espond o cus ome demand, look o p oduc ion sa ings and new ends in he ield. 2 Li e a u e e iew Many opposing e minologies a e used o sma se ices, such as " elese ice" (Bo gmeie , 2002), " ele-main enance" (Ga cia e al., 2004), " elema ics" (Cha e jee e al., 2001), "e-se ice" (Rowley, 2006), "e-main enance" (Le a e al., 2008) o some a ia ions, combina ions o adap a ions using he e m " emo e", such as "RRDM (Remo e Repai , Diagnos ics and Main enance)" (Biehl e al., 2004). Acco ding o Klein (2017), he e m "sma se ice" has gained popula i y mo e ecen ly. Sma se ices ha o e manu ac u ing se ices o hei p oduc s can also be e e ed o as accompanying se ices using sma echnol- ogies. Fo his pape , he e m "sma se ice" is used. Also, a lo o de ini ions o sma se ices we e de el- oped o e las yea s. Sma se ices can be pe cei ed as one o he enable s o se i iza ion (e.g. G ubic and Peppa d, 2016; Neu and B own, 2008) and a e he appli- ca ion o specialized compe ences, h ough deeds, p o- cesses, and pe o mances ha a e enabled by sma p oduc s (Be e ungen e al., 2017). "Sma se ices a e echnologically-media ed se ices ac i ely deli e ed by he p o ide h ough accessing a emo e asse and exchanging da a h ough buil -in con ol and/o eed- back de ices" (Klein, 2017). Finally, as Allmendinge and Lomb eglia (2005) decla e, "Soon, i will no be enough o a company o o e se ices; i will ha e o p o ide sma se ices.". Sma se ices can also o e some aluable ben- e i s o hei p o ide s and also o hei cus ome s. Sma se ices a e mo e compe i i e, o e new sou ces o e enue, highe ma gins, and conside able cos sa ings (Küssel e al., 2000). They p o ide he oppo uni y o lea n om cus ome s, es ablishing a basis o esea ch and de el- opmen , sales o ma ke ing ac i i ies (Laine e al., 2010). Sma se ices allow o de ec o ea ly p edic machine ailu es o de ec i e p oduc s a ea ly s ages and can o e ins an oo cause analysis as well as ins an ecommenda- ions o p ope emedia ion (Sade e al., 2019). Po e and Heppelmann (2014) summa ize hei posi ion: "Sma se - ices o e exponen ially expanding oppo uni ies o new unc ionali y, a g ea e eliabili y, much highe p od- uc u iliza ion, and capabili ies ha cu ac oss and an- scend adi ional p oduc bounda ies". Allmendinge and Lomb eglia (2005) s a e ha companies p o iding sma se ices ge mo e han 50 % o e enue and 60 % o ma - gins om se ices han om p oduc sales. Digi al esou ces can be a le e o inno a ion in SMEs (Higón, 2012). They also change he way inno a ion is managed (Yoo e al., 2009) and make companies mo e ex o e ed (Tambe e al., 2012). Digi al esou ces ace he adi ional spa ial cons ain s o companies which a e connec ed o coope a ion in he ield o inno a- ion (Del ou e al., 2018). Acco ding o Pagani (2013), an inc easing in e es in business- o-business collabo a- ion can be expec ed, based on se ices, which use sma echnology and can change adi ional business ope a ions and make collabo a ion a majo success ac o . Flexibili y has become one o he mos use ul and nec- essa y ools in oday's compe i i e ma ke s. Flexibili y in manu ac u ing is widely ecognized as a c i ical compo- nen o achie ing a compe i i e ad an age in he ma ke . P oduc inno a ion lexibili y is inc easingly ecognized as essen ial o building a sus ainable compe i i e ad an- age in an inc easingly u bulen ma ke (Liao e al., 2010). 3 Me hodology Fo a good unde s anding o he esea ch p oblem, he quali a i e esea ch was unde aken in manu ac u ing companies. The cu en esea ch is a ollow-up o he ea - lie esea ch held in 60 manu ac u ing companies. The ques ionnai e consis ed o se en pa s wi h sui able ques ions. Coope a ion lexibili y was di ided in o ex e nal coope a ion lexibili y wi h cus ome s, ex e nal coope a ion lexibili y wi h supplie s and in e nal coope a ion lexibil- i y. Inno a ion lexibili y was di ided in o inno a ion lex- ibili y ela ing o p oduc and inno a ion lexibili y ela - ing o accompanying se ices. Also, he ques ions ela ed o inno a ion pe o mance and business de elopmen we e included. The las pa o he ques ionnai e asked o gen- e al in o ma ion abou he esponden s, including a eques abou hei in e es in sma se ice p o ision. The i ems ela ing o lexibili y we e based on Tomáško á (2005), Liao and Ba nes (2015), Obeida e al. (2016). The i ems ela ing o inno a ion pe o mance we e based on Liao and Ba nes (2015) and Obeida e al. (2016). Pe o mance is de ined as sys em o moni o ing indi idual co po a e p ocesses on he way o implemen he app op ia e changes in o ganiza ional cul u e, sys ems 66|Kano ska and Doub a sky Pe iod. Poly ech. Soc. Man. Sci., 29(1), pp. 64–69, 2021 and p ocesses (Milicho ský, 2015). Business pe o mance i ems ypically measu e he use o ma ke ing pe o - mance i ems (i ems 1–3) and inancial pe o mance i ems (i ems 4 and 5). The i ems ela ing o p o ision o sma se ice we e inspi ed by Bje ke and Johansson (2015), Chaudhu i (2018), G ubic and Peppa d (2016). A Like scale o m om 1 o 5 was used o he ques- ionnai e, whe e 1 means "No, I don' ag ee" and 5 means "Yes, I ag ee". All pa s we e es ed using C onbach alpha. The le el o eliabili y o ex e nal coope a ion lexibili y o cus ome s was 0.792, o ex e nal coope a ion lexibil- i y o supplie s 0.812, o in e nal coope a ion lexibili y 0.814, o inno a ion lexibili y ela ing o p oduc 0.832 (p oduc inno a ion lexibili y), o inno a ion lexibili y ela ing o accompanying se ices 0.890, o inno a ion pe o mance 0.677 and o business pe o mance 0.673. The le els o eliabili y we e good o all pa s o he ques- ionnai e excep inno a ion pe o mance and business pe o mance whe e he le el o eliabili y is ques ionable. Manu ac u ing SMEs om he Czech Republic pa - icipa ed in he esea ch, especially p oduce s o elec ic equipmen and elec onic componen s. Manu ac u e s pa icipa ing in he esea ch comply wi h he Czech indus- y classi ica ion, namely CZ-NACE 26 (Manu ac u e o compu e , elec onic and op ical p oduc s) and CZ-NACE 27 (The P oduc ion o Elec ical Equipmen ). The e a e 278 companies in CZ-NACE 26 and 575 compa- nies in CZ-NACE 27 wi h 10–250 employees acco ding o Czech S a is ical O ice. To ally he e a e 853 companies (da a a e om Decembe 2019). Small and medium manu ac u e s we e selec ed om he Amadeus da abase. Mos ly manage s and di ec o s we e con ac ed by email and asked o ill ou a ques- ionnai e, which was web-based. Incomple e ques ion- nai es we e disca ded. The da a was collec ed om July o Oc obe 2019. The o al numbe o SMEs om CZ-NACE 26 and om CZ-NACE 27 in he Amadeus da abase was 730 (254 SMEs om CZ-NACE 26 and 476 SMEs om CZ-NACE 27). All 730 companies we e con ac ed, bu 22 emails we e sen back immedia ely. These companies ha e al eady ceased o exis o a e in liq- uida ion o con ac emails we e missing and he compa- nies we e no longe aceable. In o al, 112 ully comple ed ques ionnai es we e ecei ed back. The ques ionnai e e u n a e co esponds o 15.8 %. The da a analysis was done by he so wa e package SPSS, Ve sion 17. The pape is ocused on sma se ice p o ision and on coope a ion lexibili y and inno a ion lexibili y in man- u ac u ing SMEs. The ollowing esea ch ques ion was p oposed RQ: Does P o ision o Sma Se ices depend on coope a ion lexibili y, inno a ion lexibili y, inno a- ion pe o mance and business pe o mance in SMEs? Logis ic eg ession was chosen o ul ill he aim o he pape . Logis ic eg ession is used o c ea e a model whe e he dependen a iable is a ca ego ical a iable (sma se - ice p o ision). Independen a iables (whe e i is possible o moni o whe he hey ha e an in luence on he depen- den a iable) can be bo h me ic and ca ego ical a iables. 4 Findings The Resea ch Ques ion used bina y logis ic eg ession o desc ibe he dependence o sma se ices p o ision on quan i a i e esea ch a eas. The dependen a iable is dicho omous (Yes, No). Independen a iables a e me ic a iables: • collabo a i e lexibili y / ex e nal - cus ome s, • collabo a i e lexibili y / ex e nal - supplie s, • collabo a i e lexibili y / in e nal, inno a ion lexi- bili y by p oduc , • inno a ion lexibili y by accompanying se ices, • inno a ion pe o mance and business pe o mance. The ollowing Table 1 shows he signi icance o inde- penden a iables measu ed by Wald's s a is ics. Fi s o all, he iew was ocused on a cons an ha has no logical in e p e a ion in he model. Based on he p- alue o he signi icance es o he cons an , which is highe han he selec ed signi icance le el o 0.05, he cons an is s a is ically insigni ican ( doesn' ha e in o - ma ion alue o his mode). The model is ec ea ed wi h- ou a cons an . Thus, a new educed model is calcula ed, see Table 2. Table 1 Signi icance o a iables in he model BS.E. Wald d p- alue Exp(B) Ex e nal- cus ome s –1.558 0.590 6.987 10.008 0.211 Ex e nal- supplie s 0.261 0.330 0.623 10.430 1.298 In e nal 0.675 0.441 2.341 10.126 1.964 Flexibili y by p oduc 0.801 0.486 2.719 10.099 2.228 Flexibili y by accomp. se ices 0.296 0.424 0.488 10.485 1.345 Inno a ion Pe o mance –0.416 0.380 1.200 10.273 0.660 Business Pe o mance 0.902 0.474 3.630 10.057 2.466 Cons an –2.726 1.591 2.937 10.087 0.065 Kano ska and Doub a sky Pe iod. Poly ech. Soc. Man. Sci., 29(1), pp. 64–69, 2021|67 Acco ding o he p- alues o he signi icance es s o he indi idual eg ession coe icien s, i can be seen in Table 2 ha he only a iable ha ing a signi ican impac on sma se ices p o ision is lexibili y in he ield o coope a ion / ex e nal / cus ome s (p- alue < 0.05). Highe alues o p- alues indica e he e a e high co ela ions be ween inde- penden a iables (a mul icollinea i y p oblem). Fo his eason, he dependence be ween he independen a iables is de e mined by a co ela ion ma ix. The e a e s ong dependences (g ea e han 0.9) be ween a iables inno a- ion lexibili y by accompanying se ices: • collabo a i e lexibili y / ex e nal-cus ome s, • collabo a i e lexibili y / ex e nal-supplie s, • collabo a i e lexibili y / ex e nal - cus ome s, • collabo a i e lexibili y / in e nal and inno a ion lex- ibili y by p oduc , • inno a ion pe o mance, • inno a ion lexibili y by p oduc , business pe o mance • inno a ion lexibili y by p oduc . Fi s o all, he iew is ocused on he dependence o inno a ion lexibili y by accompanying se ices: • collabo a i e lexibili y / ex e nal • supplie s on collabo a i e lexibili y / Ex e nal- cus ome s. New educed models a e calcula ed by emo ing he ele an a iables o pai s o a iables om he o iginal model. These educed models a e compa ed (R2 is aken as a c i e ion). The bes model is p esen ed in Table 3. The p oblem o he exis ence o a s ong dependence o collabo a i e lexibili y / in e nal, inno a ion pe o - mance, business pe o mance on inno a ion lexibili y by p oduc is sol ed in he same way. New educed models a e calcula ed by emo ing he ele an a iables o pai s o a iables o iple o a iables om he o iginal model. These educed models a e compa ed (R2 is aken as a c i- e ion). The bes model is p esen ed in Table 4. Table 4 shows wo a iables ha do no co ela e sig- ni ican ly. Thus, he model desc ibing he p o ision o sma se ices can only be desc ibed as shown in Table 4. Bo h a iables in his model a e s a is ically signi ican (p- alue < 0.05). Acco ding o he las column Exp (B), which is he exposed coe icien o chance, he p o ision o sma se ices can be in e p e ed by changing he p e- dic o by one. The highe he a ing companies gi e o wo king wi h ex e nal cus ome s, he less chance hey ha e o p o iding sma se ices. Thus, o companies e alua - ing wo se coope a ion wi h ex e nal cus ome s, we a e mo e likely o p o ide sma se ices. The highe he a - ing companies gi e inno a ion o he p oduc , he highe he chance hey ha e o p o iding sma se ices. Thus, o companies e alua ing p oduc inno a ion, we can be mo e likely o deli e sma se ices. Looking a he esul s in e ms o whe he he busi- ness sco e in each egion a ec s sma se ices p o ision, i can be said ha he chances o p o iding sma se ices o an en e p ise e alua ing coope a ion lexibili y / ex e - nal / cus ome s a e age 2, is 0.439 imes highe han he company ha e alua es lexibili y in he ield o collabo- a ion / ex e nal / cus ome s on a e age 1. So i can be said ha he inc easing e alua ion o lexibili y in he ield o Table 3 Signi icance o a iables in he model BS.E. Wald d p- alue Exp(B) Ex e nal- cus ome s –1.781 0.517 11.883 10.001 0.168 In e nal 0.699 0.414 2.844 10.092 2.012 Flexibili y by p oduc 1.044 0.374 7.775 10.005 2.841 Inno a ion Pe o mance –0.566 0.354 2.557 10.110 0.568 Business Pe o mance 0.843 0.461 3.352 10.067 2.324 Table 4 Signi icance o a iables in he model BS.E. Wald d p- alue Exp(B) Ex e nal- cus ome s –0.824 0.257 10.267 10.001 0.439 Flexibili y by p oduc 0.970 0.308 9.958 10.002 2.639 Table 2 Signi icance o a iables in he model BS.E. Wald d p- alue Exp(B) Ex e nal- cus ome s –1.849 0.568 10.580 10.001 0.157 Ex e nal- supplie s 0.149 0.314 0.227 10.634 1.161 In e nal 0.620 0.428 2.102 10.147 1.860 Flexibili y by p oduc 0.904 0.474 3.643 10.056 2.470 Flexibili y by accomp. se ices 0.219 0.407 0.291 10.590 1.245 Inno a ion Pe o mance –0.605 0.360 2.835 10.092 0.546 Business Pe o mance 0.822 0.460 3.191 10.074 2.275 68|Kano ska and Doub a sky Pe iod. Poly ech. Soc. Man. Sci., 29(1), pp. 64–69, 2021 coope a ion lexibili y / ex e nal / cus ome s educes he chances o p o iding sma se ices. I can also be seen om he o he side, which means ha a company e alua - ing lexibili y in ex e nal coope a ion - cus ome s on a e - age 1, has 2.278 imes highe chances o no p o iding sma se ices han an agency e alua ing coope a ion lexibili y in ex e nal coope a ion - cus ome s on a e - age 2. The chances o p o iding sma se ices o a man- u ac u e ha e alua es inno a ion lexibili y o a p oduc a e age o 2, a e 2.639 imes highe han a company ha e alua es inno a ion lexibili y o a p oduc a e age o 1. 5 Discussion To ul ill he esea ch ques ion s a ed abo e, logis ic eg ession c ea es a model desc ibing he impac o some a eas on sma se ice p o ision. The quan i a i e esea ch ca ied ou con i med only wo a eas. The gene al model o se en pa s looks like his: log . π παβ ββ ββ ββ x xxxxxx xx () − () =+ ++ ++ ++ 111 22 33 44 55 66 77 The esul ing model looks like his: lo g, π π ββ x xxx () − () =+ 111 22 speci ically: log. .. π π x xxx () − () =− + 10 824 097 12 In e p e a ion is no ia he g aph bu able and chances, see Table 4. The highe he a ing companies gi e o wo king wi h ex e nal cus ome s, he less chance hey ha e o p o id- ing sma se ices. Thus, o companies e alua ing wo se coope a ion wi h ex e nal cus ome s, hey a e mo e likely o p o ide sma se ices. The highe he a ing companies gi e o inno a ion o he p oduc , he highe he chance hey a e o p o iding sma se ices. Thus, o companies e alua ing p oduc inno a ion, we can be mo e likely o deli e sma se ices. This inding is in line wi h Biehl (2017) ha sma se ices " aised high expec a ions o i s po en ial" and a e widely used o desc ibe he company's inno a ion. I we wan o answe he esea ch ques ion, "Does P o ision o Sma Se ices depend on coope a ion lexi- bili y, inno a ion lexibili y, inno a ion pe o mance and business pe o mance in SMEs?", we ha e o say ha p o- ision o sma se ices depends only on coope a ion lex- ibili y / ex e nal / cus ome s and on inno a ion lexibili y ela ing o p oduc . Only wo pa s om se en possible a ec he sma se ice p o ision signi ican ly. 6 Conclusion The indings o he esea ch show ha he p o ision o sma se ices depends on coope a ion lexibili y / ex e - nal / cus ome s and inno a ion lexibili y ela ing o p oduc . Bo h a iables om se en possible in he abo e-men ioned model a e s a is ically signi ican (p < 0.05). The p o ision o sma se ices can be in e p e ed by changing he p e- dic o by one. The highe he a ing companies gi e o wo king wi h ex e nal cus ome s, he less chance hey ha e o p o iding sma se ices. The highe he a ing companies gi e o inno a ion o he p oduc , he highe he chance hey ha e o p o iding sma se ices. I would ce ainly be in e es ing o con inue esea ch in o he indus ies and hen be able o compa e he p o i- sion o sma se ices. The a icle limi may be in a sample o manu ac u e s, a ge ing only one indus y and espon- den s wi hin one coun y. The e o e, u he esea ch will be di ec ed o o he indus ies o iden i y he mos comp ehensi e iew o he p o ision o sma se ices o indus ial manu ac u e s. Acknowledgemen E a Tomasko a con ibu ed in he esea ch, which was held in 112 elec o echnical SMEs companies in he Czech Republic in 2019. Re e ences Allmendinge , G., Lomb eglia, R. 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