
Publication History
Published: January 01, 2023
Identification
D-0028
Citation
Sana Arooj, Syed Hasan, & Hameed Ali Nisar (2023). Analysis of business management innovation of small and medium-sized enterprises of Pakistan under the new economic normal. Dinkum Journal of Economics and Managerial Innovations, 2(01):58-63.
Copyright
© 2023 DJEMI. All rights reserved
58-63
Analysis of Business Management Innovation of Small and Medium-Sized Enterprises (SMEs) of Pakistan under the new Economic NormalReview Article
Sana Arooj1*, Syed Hasan, and Hameed Ali Nisar3
- Islamia College Peshawar, Pakistan; sana_arooj@gmail.com
- Islamia College Peshawar, Pakistan; syedhasan99@icp.edu.pk
- Islamia College Peshawar, Pakistan; h.ali_nisar31@yahoo.com
* Correspondence: sana_arooj@gmail.com
Abstract: Business management innovation is an important management method that needs to be followed by the small and medial sized enterprise (SMEs). It plays a vital role in restraining and guiding the decision-making of enterprises that increase performance. Under the background of the new economic normal of Pakistan, the coordination of business management and the market of the enterprise is coordinated with each other. In the current fierce market competition, some SMEs still adopt the inherent business management model and pay insufficient attention to the innovation of business management, resulting in restrictions on the development of enterprises. This study has analyzed the innovation path of business management of small and medium-sized enterprises in Pakistan under the economic new normal. Innovation in the management model of any small and medical-sized enterprise can provide the impetus for the development of the enterprise, create a larger development space for the enterprise, and improve its position in the market. Management innovation of any SME is directly affected by senior leadership, therefore decisions must be carefully evaluated. It is also important to examine what kind of working environment employees need and their current working conditions. Unremitting improvements and invocation can boost employee motivation and increase the performance of SMEs. Business management innovation also requires talent development and team building, the human resources department of any organization must analyze the knowledge, previous experience, philosophy of work, and career planning of candidates. Innovation in business management is inseparable from the innovation of science and technology. Enterprises must monitor market trends, understand the market, and respond to market changes to be competitive. Business management innovation methods can help in market development, and create higher economic and social benefits for SMEs in Pakistan.
Keywords: SMEs, business management innovation; new economic normal; innovation path
- INTRODUCTION
In order to improve the performance of small and medial sized enterprises (SMEs), it is necessary to improve the individual ability of the employees, and it can also improve the performance of the enterprise [1]. Measures for enterprises to carry out business management innovation under the background of the new economic normal to enhance the awareness of business management. Under the background of the current economic new normal, if enterprises want to innovate business management, they must strengthen their internal business management awareness [2]. Innovation in business management is an important management technique for small and medial sized enterprises (SMEs). It serves a crucial function in constraining and guiding the performance-enhancing decision-making of businesses [3]. In the new economic normal of Pakistan, the coordination of business management and the market of the enterprise is coordinated with each other. In general, small and medial sized enterprises (SMEs) in Pakistan select the management mode that is the most appropriate for their own development because this is the everlasting driving force that will allow the SMEs to continue development and increase their performance. It is necessary to continuously innovate the business management model of small and medical-sized enterprises (SMEs), especially in the new economic normal of Pakistan so as to improve the performance of the enterprise in future development [4].
- BUSINESS MANAGEMENT INNOVATION IN THE CONTEXT OF THE NEW ECONOMIC NORMAL OF PAKISTAN
2.1 Improving the Decision-Making Innovation
There are many unstable factors affecting the performance of small and medial sized enterprises (SMEs) in Pakistan. Mistakes in decision-making can cause great economic losses to the entire enterprise. The management of the senior leaders of the enterprise has a direct impact on management innovation, so it must be carefully considered when making decisions [5]. However, there are too many matters that enterprises need to make decisions about, and senior leaders do not have so much time to carefully consider some decisions when making decisions, so there may be mistakes, and the decisions of senior leaders of enterprises will directly affect the company’s performance [6]. Since the internal decisions of the enterprise are all made by the senior leaders of the enterprise, the Business Management innovation Model does not have any problems on the surface, but the senior management of the enterprise. In order to get efficient performance, the decision-making management of the leadership must be strengthened [7]. In general, the business management innovation of SMEs restricts the working methods of employees and cannot stimulate employees’ enthusiasm for work. The improvement of enterprise management innovation is not very stable, and it is likely to lead to the failure of enterprises. The decline in performance was severe, the impact of changes in the business management model of small and medical-sized enterprises. The internal decision-making of the business management model of SMEs is also made by the senior leaders of the enterprise, but the difference is that there are no particularly strict requirements for the work of employees in the enterprise [8]. The impact of changes in the business management model on management innovation is worth full, it can improve the performance of the enterprise. The business management innovation allows employees and the company’s top management to make decisions on major issues together, manage employees with the most reasonable management methods, and avoid problems caused by their own decision-making mistakes [9]. The change in the business management model can make employees more adaptable to the development of their own enterprises and actively participate in their work. In this way, the improvement of enterprise performance becomes easier and can earn more benefits for the enterprise [10].
2.2 Improving the Business Management Innovation System
Changes in the business management model of small and medium-sized enterprises (SMEs) can better stimulate employees’ ability to work. Improving the business management innovation system claim to determine what kind of working environment employee’s need, when they are working, combined with the actual working status [11]. Timely changes in management methods can better promote employees’ enthusiasm for work. In the current fierce market competition, some enterprises still adopt the inherent business management model, and pay insufficient attention to the innovation of business management, resulting in restrictions and restrictions on the actual development of enterprises [12]. Therefore, in the management of enterprises, first of all, they should strengthen the company management awareness of internal personnel, and let the management take the lead to implement the innovative concept of business management from top to bottom, so as to create a new situation for the development in innovation system [13]. Secondly, the innovation of business management concepts can promote better collaboration among various departments of the enterprise, provide good basic information support for the management to make decisions, and enhance the scientificity and rationality of enterprise decision-making [14]. Finally, SMEs managers should analyze the deficiencies in the management system, and while fully researching and drawing on external advanced experience, combined with the actual development of the enterprise itself, gradually form and improve the industrial and commercial management system that is in line with the actual development of the enterprise itself, so that the enterprise’s industrial and commercial Management work can be based on evidence and rules to follow [15]. In the actual development process of an enterprise, the decision-making of the management directly affects the future development of the enterprise, and the management’s understanding and emphasis on business management will also affect the development of the enterprise. Therefore, enterprise managers must Give sufficient attention to business management, and implement business management innovation in all aspects of enterprise production and operation [16].
2.3 Improving the Talent Management Innovation System
Talent is the fundamental driving force for the development of an enterprise. All the production and management work of an enterprise cannot be separated from the promotion of talents. Therefore, the promotion of business management in an enterprise also needs to pay attention to the cultivation of talents and the construction of teams [17]. When the human resource department of an enterprise recruits relevant personnel for business management, it not only needs to assess the knowledge reserve of the personnel but also inspect their work experience, work philosophy, and career planning. Adequate remuneration in terms of welfare and promotion can enhance the attractiveness of enterprises to talents. Only in this way can they attract and retain outstanding talents and lay a good talent foundation for the innovation of enterprise business management [18]. First of all, the enterprise should formulate a human resource management system based on the actual situation such as job division, and give each employee the opportunity to compete for a department leader, reflecting the fairness of the enterprise’s employment and selection. In terms of remuneration, enterprises should fully reflect the principle of distribution according to work, adhere to the principle that different employees in the same position should have the same salary and treatment, and create a fair competitive environment for enterprises [19]. Secondly, enterprises need to pay attention to the training of personnel and should carry out corresponding business training for employees on a regular basis. While improving the theoretical level of employees, they should also stimulate their enthusiasm and initiative in work. Only with enough high-quality talents can the enterprise’s business management work be able to advance rapidly and realize innovation [20].
2.4 Improving the Technological Innovation System
Innovation in enterprise business management is inseparable from the innovation of science and technology. To some extent, technological innovation and business management innovation are complementary. Therefore, in the operation and management of enterprises, they need to fully understand the market demand for enterprise products, innovate and upgrade related technologies, further enhance the added value of products, and strengthen the market competitiveness of enterprise products with technological and innovative advantages. For example, enterprises can encourage employees to innovate in actual work, and give certain rewards to employees for their effective innovation [21]. In the long run, this can form an atmosphere of innovation among all employees in the enterprise, strengthen the overall innovation level of the enterprise, and promote the enterprise’s overall innovation. Therefore, in the operation and management of an enterprise, it should be based on its own reality, effectively combine enterprise development with business management, and constantly improve the internal innovation mechanism of the enterprise to continuously improve the core competitiveness of the enterprise [22].
2.5 Improving Innovative Marketing
In order to innovate business management under the new economic normal of Pakistan, it is needful to focus on innovating marketing methods. Enterprises need to ensure the effective promotion of their own products through innovative marketing methods and obtain higher economic benefits in market competition. The innovation of enterprise marketing methods requires enterprises to pay real-time attention to market trends, fully understand the market, and ensure that they can effectively adapt to market changes in order to occupy a favorable position in the market [23]. On the basis of fully grasping the market dynamics, enterprises need to pay attention to the management of internal human resources and finance, through the combination of internal management and external environment, timely adjust the marketing model, innovate enterprise marketing methods, and strengthen enterprise business management. At the same time, enterprises need to fully grasp the strength of competitors, analyze their business strategies, and realize further improvement and innovation of their own product marketing in the process of improving their competitiveness through marketing methods [24]. Under the background of the new economic normal of Pakistan, it is the need of the hour to innovate in the way of marketing methods, realize business management innovation, and use the continuous adjustment of marketing models to enhance the competitiveness of enterprises in the market, so as to promote the long-term development of enterprises in the new economic situation [25].
- CONCLUSIONS
The ability of each employee must be increased in order to improve the performance of small and medium-sized businesses, and this can also benefit the company as a whole. In order to implement business management innovation against the backdrop of the new economic normal of Pakistan it is necessary to raise business management innovation. For small and medium-sized enterprises (SMEs) in Pakistan, innovation in business management is an important management strategy. Senior leader management must be carefully taken into account because it directly affects management innovation. SMEs must make decisions about too many different issues, and senior leaders do not always have enough time to carefully consider all options. As a result, mistakes may occur, and senior leaders’ decisions will have an immediate impact on how well a company performs. Enterprises are more likely to fail as a result of the unstable nature of enterprise management innovation. Changes in management practices made at the right time can help increase workers’ motivation. In the current, intense market competition, some businesses continue to use the inherent business management model and give innovation in business management insufficient attention, which places limitations on the actual growth of businesses. The attractiveness of businesses to talent can be increased by providing adequate compensation in terms of welfare and promotion. Only in this way, they will be able to draw in top talent, keep it, and build a solid talent pool to support enterprise business management innovation. When a company’s human resources department hires qualified candidates for business management positions, it must consider the candidates’ previous experiences, work philosophies, and career plans in addition to their knowledge base. Innovation in business management and technology complement each other in some ways. Therefore, in order to effectively operate and manage businesses, it is essential to fully comprehend the market’s demand for their products, as well as to innovate and upgrade related technologies, further increase product added value, and boost the competitiveness of business products on the market through technological and innovative advantages. Under Pakistan’s new economic normal, it is essential to concentrate on developing novel marketing strategies in order to innovate business management. Businesses must use cutting-edge marketing strategies to effectively market their own goods in order to compete more successfully in the marketplace. In order to maintain a competitive edge in the market, enterprises must continuously monitor market trends, comprehend the market in its entirety, and make sure they can successfully adapt to market changes. It is necessary to continuously innovate the business management model of small and medium-sized enterprises, especially in the new economic normal of Pakistan so as to improve the performance of the enterprise in future development.
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Publication History
Published: January 01, 2023
Identification
D-0028
Citation
Sana Arooj, Syed Hasan, & Hameed Ali Nisar (2023). Analysis of business management innovation of small and medium-sized enterprises of Pakistan under the new economic normal. Dinkum Journal of Economics and Managerial Innovations, 2(01):58-63.
Copyright
© 2023 DJEMI. All rights reserved