SME characteristics-impact duality framework: a literature review

Abstract

Small and medium-sized Enterprises (SMEs) represent a significant portion of firms in the global construction industry. SMEs have distinct characteristics based on their organisational nature, which can both enable or hinder their impact on the construction industry. This paper aims to review the impact of SMEs towards the construction industry. The methodology adopted for this study was a narrative literature review with a qualitative content analysis to categorise, summarise and structure the collected data. The study is based on scholarly publications on SME characteristics, exploring how these characteristics enable or hinder their impact on the construction industry in various aspects, including employment generation, innovation, productivity, social development, and economic growth. Findings revealed that while SMEs possess positive characteristics, such as local employment, innovation, and a flexible organisational structure, they also exhibit negative characteristics, including limited resources, skill shortages, and reduced efficiency. By mapping negative and positive attributes with their impact, a conceptual framework is developed to presents the dual role of SMEs' impact on the construction industry. This paper concludes by facilitating SMEs in finding solutions that reduce their negative impact and enhance their positive impact on the construction industry, thereby strengthening SMEs' role and easing the broader industry's constraints.