Integrated Management System Implementation in SMEs

International Journal of Business and Management Review
Vol.8, No.4, pp.58-77, July 2020

Published by ECRTD-UK
Print ISSN: 2052-6393(Print), Online ISSN: 2052-6407(Online)
INTEGRATED MANAGEMENT SYSTEM IMPLEMENTATION IN SMES: A
PROPOSED MODEL FOR ORGANISATIONAL PERFORMANCE AND
SUSTAINABILITY
Hesham Magd
Associate Dean for Quality Assurance and Accreditation, Faculty Head of Business and
Economics, Modern College of Business and Science, Muscat, Oman
Email: [email protected]
Henry Karyamsetty
Assistant Professor, Transportation, Logistics and Safety Management Department, Faculty of
Business and Economics, Modern College of Business and Science, Muscat, Oman
Email: [email protected]
ABSTRACT: Management systems are important for any organization especially to small and
medium enterprises (SMEs) that face limitations in areas that larger firms have stability. One
of the approaches to overcome these challenges and maintain business growth is implementing
and following an integrated management system (IMS), as a model for improving the
organizational performance and to maintain sustainable growth in a business. SMEs are global
leaders in providing employment opportunities - around 60-70 % in developed economies and
99% of all business in OECD countries, hence sustaining them and enhancing their
performance in the business market over larger firms is critical to retain employment
opportunities in the future. IMS provides internal and external benefits, especially being more
feasible and appropriate for SMEs by increasing competitiveness, stability in business, effective
resources management and resilience during market challenges. However, it’s important to
focus on the specific characteristics and factors that determine SMEs effective implementation
of IMS. To overcome the various barriers limiting their business growth and organizational
performance, the proposed conceptional model developed through this research study in
conjunction with the associated factors would enable SMEs to effectively implement IMS to
achieve organizational performance and sustainability. SMEs in order to maintain a
competitive nature in the emerging business markets must adopt different strategies and
mechanisms to address the challenges in technology and innovation, which are the prime
impacting factors that define a clear road map for sustainable growth.
KEYWORDS: SMEs, management system, sustainability, organisation, integrated,
performance.
INTRODUCTION
Globally, small and medium enterprises (SME) are gaining momentum predominantly in
developing and underdeveloped countries, arising because of the large demand for workforce
employment and the potential to boost global economic development through their value-added
business(es) (Rotar et al., 2019). These firms are considered as SMEs dependent on the number
of employees working, which changes from country to country. However, the European Union
considers SMEs as businesses which have no more than 250 employees (www.oecd.org. 2019).
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While in USA the limit is no more than 500 employees Yang (2018). These enterprises are also
viewed as significant avenues for economic growth and potential employment sectors among
large companies by contributing to more than 50% to the global GDP (www.ilo.org. 2019).
Globally, 90% of the business population originates from SMEs, providing 60-70 % of
employment in developed economies, for example, SMEs account for 97.5% Western
Australia, and 98% in Taiwan, while European countries have a substantial percent of SMEs
with 99 % (Arnold, 2019; Yang, 2018). Statistics have revealed a decreasing trend of SMEs
between 2008 and 2013, especially in OECD countries. While Germany, New Zealand and
Brazil showed an increase in the size of SMEs, which caused a negative effect on the
employment rates, economy, and productivity (www. oecd. org. 2017).
SMEs are perceived to constitute 99% of all the firms in OECD countries forming a major
source of employment through manufacturing and service providing sectors, accounting for
approximately 60-70% of jobs (www.oecd.org. 2019). These enterprises are vital for the future
as they assure a tremendous scope for job creation, boosting the economic development,
innovation in market strategies as described by Hillary (2000). By the turn of 2030, analysis
from the world bank indicates a necessity of 600 million jobs to meet the global employment
workforce, which prioritizes developing small and mediums enterprises worldwide (www.
Worldbank.org. 2020). Conversely, many of these enterprises have constraints and struggle
within the competitive markets due to regulatory framework, limited access to finance and skill
shortages, which is affecting their ability to sustain a business (www.oecd.org, 2019). On the
contrary, globalization, technological upgrades, management system compliance procedures
etc. also pose a bigger challenge to SMEs to compete with bigger companies that have wider
reaching business connections and a larger supply chain network. Thus, to survive the
competitive market and sustain themselves amongst the larger firms, SMEs have to focus on
combating their challenges and the limitations they are facing by making proactive change via
initiatives such as imbibing management systems into their business to get wider market access,
effective recognition, reinforcing of customer confidence and meeting regulatory frameworks.
Research studies are being conducted by various researchers, few of them have studied the
determining factors and indicators that influence the growth of SMEs with the current
challenges in the business market (Olaru et al., 2014). All this work only points towards finding
out the ways to make SMEs more sustainable in terms of meeting business challenges,
competing with bigger firms, to tide over with business strategies. To overcome the changing
scenario and trends, SMEs should be revolutionized by implementing regulatory framework,
incorporating management systems into their process for successful business growth and
continuity.
This paper describes the influence of management systems on SMEs by reviewing the different
studies done by researchers. The study deals with the application of integrate management
system(s) for sustaining the SMEs business in the market and sheds light on the influence of
management system(s) on organizational performance in sustaining business continuity.
TOTAL QUALITY MANAGEMENT SYSTEM AND SMES PERFORMANCE
There is a growing emphasis on the importance of incorporating management systems in

organizations to enhance the quality and production, more specifically in SMEs as they are
potential sectors for boosting economic development by creating jobs in the following
centuries. The success of any SMEs depends on its contribution to economic development by
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creating jobs, growth in business opportunities and its performance which are all directly
influenced by quality management systems. Results from studies revealed that performance of
SMEs are subsidized by total quality management systems in bringing high results and
improvements to business production (Pinho, 2008). Furthermore, innovation strategies of
organizations have a positive influence on their performance that comes from understanding
the relationship between consumer orientation and innovation, though based on the survey data
30% to 60% of SMEs in OECD countries are considered innovative in broad sense (www.oecd.
org 2019). Gotzamani et al., 2006 (as cited in Singh, 2011, pp. 7-10) has identified 11 key
enabling factors from his analysis that impacts on the success of total quality management
system in SMEs and established a framework for improving the performance and customer
satisfaction, in conjunction with Pambreni et al. (2019) who concluded customer focus,
continuous improvement, total employee involvement. Strategically based together, these are
influencing factors for organization performance up to 40% while the rest are impacted by other
factors that are not studied from his work.
Several studies identified TQM as the solution for building sustainable business in SMEs as it
brings quality into products thus improving customer satisfaction as, Temtime and Solomon
(2002) from their study reported TQM are considerably awarded importance by SMEs once the
size of the firm increases gradually, as this growth will attract long term competitiveness and
more profitability. Aich et al. (2018) indicated that TQM in SMEs can be successfully
implemented by employing IT in their business operations for improving product quality and
productivity. While Somerville (1994) studied the influence of five areas of barriers that
challenge the implementation of TQM in the construction industry. Salaheldin (2009) among
other studies identified critical success factors for TQM practices that have an affinity to
enhance organization performance in SMEs, substantiating the reports of Yusof and Aspinwall
(1999) that critical success factors are not focused on SMEs unlike how they were observed in
large companies and have proposed significant factors for success of SMEs alongside the
studies done by many authors. Rahman (2001) in his study found no significant impact of TQM
on organization performance and the effect is independent of ISO 9000 certification, whereas
Terziovski and Samson (1999) reflects that TQM would influence organizational performance
depending on employee size in companies.
HEALTH AND SAFETY IN TOTAL QUALITY MANAGEMENT SYSTEM
Health and safety have become an integral part of every business, currently felt at every stage
of operations both in larger firms and SMEs. In view of very limited research done on health
and safety integration to quality management system in organizations, combining both the
management systems are vital for sustaining businesses and consumer satisfaction in both larger
firms and SMEs.
Research studies now indicate that the SMEs are gradually migrating to adopt integrated
management systems as a sustainable mechanism to overcome the barriers and maintain
business continuity and achieve organizational performance and sustainability (Stamou, 2003).
Total quality management systems are standards that aim to achieve quality products which has
significant relation with health and safety, as improving the latter was found to reduce injuries
in organizations. Safety at work obviously will increase confidence among workers through
management commitment and leadership, as these are characteristics for improving both safety
and quality in organizations as described in Loushine et al. (2004).
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Considerable research studies are found, and literature is available on integrating safety into
quality management systems as stated in Pun & Hui (2002). Furthermore, integrating safety
into TQM has shown practical results by providing distinct objectives, identity of business
success, clear safety values; as they both show synergistic effects contrary to the studies done
by Osborne and Zairi (1997) stating integration of safety to TQM has barriers and obstacles
that impede the process, as both management systems have different approaches to a common
goal. After all, safety orientation to total quality management system is a different dimension
to promote continuous improvement, motivate employee involvement, which is prioritized
through this approach by large firms.
EFFECTIVENESS OF INTEGRATED MANAGEMENT SYSTEM
Integrated management system (IMS) is widely gaining popularity by its application in all
organizations over independent management systems which focuses on either total quality or
environmental and occupational health and safety (Abad et al., 2014; Abad et al., 2016; Olaru
et al., 2014). Moljevic et al. (2013) indicated that the integrated management system focuses
on quality systems, environmental management systems, management systems for health and
safety at work and a model for an integrated management system (management responsibility,
system resources, product realization, measurement, analysis and improvement).
IMS is gaining momentum across SMEs and is seen as part of a management portfolio
(Wilkinson & Dale, 2000). Asif et al. (2011) defined integrated management system as set of
interconnected processes that uses human resources, materials, information, infrastructural,
and financial resources for achievement sustainability strategies (cited in Zahid and Ghazali,
2017:481). IMS is recognized for its integration of its goals, processes and resources (Zahid &
Ghazali, 2017). IMS is designed to focus on the involvement of stakeholders, and the needs of
stakeholders (Rocha et al., 2007). This is supported further by Samy et al. (2015:987) stating
that an IMS is as composite of interdependent processes that operate harmoniously, share the
same pool of human, material, information, infrastructure and financial resources and are all
aimed towards fulfillment of set goals to the satisfaction of the stakeholders. In that case, it is
fair to claim that IMS is a system which provides a systematic structure, resources and
procedures to plan, monitor and control any project related to quality, environment and safety
(Griffith, 1999).
Based on most of the related literature reviews on IMS, it was highlighted that IMS focuses on
the integration of three systems/standards (see figure 1) related to quality, environment, and
health and safety (Samy et al. 2015). IMS has eight core principles that must exist for effective
implementation and they are; customer focus and satisfaction, leadership commitment,
employee participation, training and development, facts based decision making, continuous
improvement, employee health and safety and realization of social responsibility, and
sustainable development. However, recent studies have suggested to include other systems or
standards such as corporate sustainability Asif et al. (2011); Rocha et al. (2007), risk
management Labodova (2004) ergonomics Matias and Coelho (2002), agile manufacturing
Bamber et al. (2000), corporate governance and AIDS Management (Singh, 2011). The
addition of new standards/systems can be feasible with the IMS ingredients if deemed necessary
as depicted in Figure. 1 a, b.
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Having an integrated system has the benefit of producing a more evolving and effective system
(Simon et al., 2012; Karapetrovic & Casadesus, 2009), which can fit easily with organizational
self-assessment and benchmarking (Zeng et al., 2011). IMS implementation in organizations
can lead to a diverse number of tangible and intangible benefits (see table 1) such as optimized
management systems, increased competitiveness, effective resource utilization, efficient
workflow (Zeng et al., 2011; Salomone, 2008), improved employee training (Santos et al.,
2011), better teamwork (Simon et al., 2011), business management simplification (Low and
Chin, 2003), reduction in bureaucracy (Asif et al., 2009; 2010; Simon et al., 2012; Zeng et al.,
2010), competitive advantage achieved through effective allocation of responsibilities and
accountability, cooperate social responsibility, and minimization of financial loss (Pun and Hui
,2002). Through the implementation of IMS, organizations can achieve economies of scale
(Matias and Coelho, 2002), productivity, efficiency and organizational performance (Samy et
al., 2015), and enhances organizational ability to adopt to volatile business environment and
business sustainability (Bernardo et al., 2009); Labodova, 2004; Mackau, 2003); Molina-
Azorin et al., 2008; Simon et al., 2012; Von Ahsen and Funck, 2001; Wilkinson and Dale, 2002;
and Zeng et al., 2011).
Other empirical studies demonstrated other benefits which included organizational
improvements, facilitating the process of goal setting, and action plans in alignment with the
organizational goals, improving the decision making in relation to quality, environmental and
health and safety issues, reducing the documentation efforts, and increase staff awareness of
issues related to quality, environmental and occupational safety and reduce costs (Olaru et al.
2011, 2013; Raisiene, 2011; Bernardo et al., 2010; Patience, 2008).
IMS concepts have diverse benefits that can specifically overcome the challenges faced by
SMEs through provisions of internal and external rewards. Olaru et al. (2014) in their report
summarized the benefits of IMS which can stabilize SMEs in terms of profits and business
development. However, though the IMS approach is increasingly adopted in larger firms, the
concept is not gaining momentum in SMEs due to lack of awareness, proper guidance to
implement, characteristics of SMEs. Conversely, Stamou (2013) indicated that the
implementation of IMS is feasible and appropriate to SMEs due to the smaller nature of
business activities, quick adaptability, decentralized work culture and easier communication,
identical to Wells and Galbraith (1999). See Table 1.
Garengo and Biazzo (2013) stated in their study that IMS do always have definite advantages
over quality management system as it enables firms to overcome difficulties dealing with
separate management systems thus saving time, cost and resources - conforming to work
reported in Zutshi and Sohal (2005). Analysis by Douglas and Glen (2000) revealed that there
are varying levels of integration of management systems exercised by SMEs in UK, to achieve
combined benefits from adopting either of the management systems. Fassoula and Rogerson
(2003) explains five management tools for SMEs to fulfill an effective integrated management
system, while authors Olaru et al. (2014) studied on identifying indicators to assess the
performance of SMEs related to IMS. It was observed that 85% of the SMEs in Romania have
managed to adopt integrated systems with either quality management or environmental
management. Moljevic et al. (2013) summarized IMS benefits in SMEs and they were
categorized as internal and external benefits (see table 2).
Different researchers worked extensively on developing models for integration of management
systems for SMEs. Husband and Mandal (1999) suggested building a conceptual model using
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different dimensions for improvising the effect of quality integrated management systems.
Stamou (2013) in his report mentioned facilitating factors for SMEs to adopt integrated
management systems and states many authors previously have identified the major drivers that
improvise the business of SMEs. Hillary (1999); Welford (1994); and Winder (2000) have all
mentioned stakeholders, customers, local government, local community, employees and
regulators are prominent agents in compelling SMEs to adopt integrated management systems,
while Griffith (2000) asserted that these enterprises are bound to demonstrate assurance of
quality, environmental performance and improved health and safety for confirming to
legislative compliance, on par with larger firms.
Rebelo et al. (2016) asserted from his study that integration of quality, environment and
occupational health and safety brings in sustainable development in organizations confirming
to ISO (2018) explains external pressures are the key reasons to implement IMS in SMEs due
the nature and requirement of business. While Khanna et al. (2010) deduced that IMS provides
interactions among different management systems, to accomplish common objectives,
consequently reducing the time for audits as required by individual management systems.
Alongside Slater (1991); Douglas and Glen (2000); Jorgensen et al. (2002) and Pojasek, (2006)
all concluded that IMS is beneficial for organizations saving time on documentation, resource
minimization, establishing strong relations with different elements of the individual
management systems and facilitating in conducting internal and external audits, but was
disproved by Bernardo et al. (2009) - as individual management systems have diversified goals
and complexity in implementing with limited expertise observed in SMEs. Mackau. (2003)
expresses that introducing IMS in SMEs does not fully satisfy the employee and employers
expectation but rather causes significant changes, probably leading to complexity in business
operation. The author also stated a lack of employee integration is more obviously observed in
SMEs, those implementing IMS contrary to the studies that exist on stimulating employee
acceptance during integration.
CHARACTERISTICS OF SMES, IMS IMPLEMENTATION AND CHALLENGES
In considering IMS implementation and challenges in SMEs, it’s important to highlight that
there are characteristics associated with SMEs which differ from large organizations which
impact on IMS implementation and challenges. Assarlind and Gremyr (2014) listed the SME
characteristics based on the work of Ghobadian and Gallear, (1997); and Hudson et al. (2001).
SME characteristics seem to focus on structure, contact, processes and people. Table 3 provides
further description of each characteristic.
In support of SME Characteristics, Garengo and Biazzo (2013:314) listed the following
characteristics based on various studies that may prevent the effective implementation of IMS.
 Lack of formalized strategy, as strategy is very often not made explicit
 Entrepreneurial behavior leading to many unpredictable changes in direction and
priorities: SMEs consider a high structured management system as a constraint to
change
 Limited managerial capacities mainly fueled by implicit and context-specific knowledge
 Operational focus leading to limited involvement in strategic and managerial activities
 Limited capital and human resources: The staff often have no extra time for managerial
and strategic activities, such as implementing a management system
 Poor understanding and therefore scarce adoption of management tools
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The implementation of integrated management systems in organizations depends on parameters
such as the availability of resources; competency and expertise, nature of the organization,
complexity of the business operation, processes of the organization, and type of integration
(Samy et al., 2015). For effective implementation, it’s essential that the challenges and
difficulties must be identified in order to cope and provide solutions and alternative directions.
Some of the presented challenges are difficulties in organizing an IMS (Santos et al., 2011)
taking long time to achieve the integration, difficulty in changing organizational culture,
training staff (Asif et al., 2009) and conflict with the various standards (Karapetrovic and
Willborn, 1998; Zutshi and Sohal, 2005; Asif et al., 2009).
Zeng et al. (2007) grouped these challenges into two groups; named internal and external
factors. The internal factors include organizational structure, organizational culture, human
resources, and understanding and perceptions, while the external factors included technical
guidance, certification bodies, stakeholders and customers and institutional environment.
Taking into consideration all these challenges, Samy et al. (2015) presented the factors
impacting on the effectiveness of the IMS implementation as Internal barriers (resources,
people and implementation) and external barriers (economic, social, legal and cultural) as
presented in Table 4.
Khanna et al. (2009) indicated that focus on stakeholders, management commitment, provision
of resources, training, process control and documentation structure and continuous
improvement as critical success factors for IMS implementation. While Joao et al. (2012)
concluded that top management involvement, financial resources, human resources, and
training as critical success factors. Moreover, commitment and leadership, planning, human
and materials resources, policies, objectives and targets, information and communication, and
satisfaction of internal and external stakeholders were identified as critical success factors by
Rebelo et al. (2016). Furthermore, Mohammed et al. (2005, 2007) concluded that management
leadership and commitment, education and training, continual improvement, performance
measurement, systems and processes, resources management, and stakeholders were concluded
in their study as critical success factors. These factors are supported further by (Dubinski et al.,
2003; Zutshi and Sohal, 2005; Holdsworth, 2003; Karapetrovic & Willborn, 2002; Mackau,
2003; Scipioni et al., 2001; Wilkinson & Dale, 1999; Jackson, 1996).
Additionally, Garengo and Biazzo (2013) documented that there are five enablers that are
crucial for the effective implementation of IMS and they are the commitment of the
management team, external facilitators, effective communication, software solution and
continuous improvements. Taking all the above into consideration, a few common factors were
identified in aid of effective IMS implementation in SMEs and they are listed as follows:
1. Leadership/Management Commitment
2. Resources Management
3. Effective Communications & Information
4. Stakeholders Focus
5. Education and Training
6. Performance Measurement
7. Systems and Processes
Based on the above literature review where it is believed that IMS has the potential to
enable SMEs to become sustainable, this can be achieved through the effective implementation
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of IMS that fits with SMEs characteristics. The authors presented a model (see Figure 3) based
on various components which will enable SMEs to implement IMS effectively and achieve
organizational performance and sustainability.
Figure 3 reflects the first step which is referred to as INPUT. The input stage considers critical
success factors of implementing IMS where SMEs management provides IMS policy
statements and objectives, IMS planning and performance reviews, provides enough resources
(e.g., financial, physical, technical), appointment of a project manager/facilitator to lead and
manage the project with a clear vision, support the implementation through the provision of
human resources, information, infrastructure and equipment, put a system in place to recognize
and encourage employee involvement and empowerment, and offer education and training to
have qualified and trained employees who will move the implementation forward. SMEs must
also focus their attention on their internal and external customers, suppliers, local authorities,
and local community. Moreover, develop performance standards, progress monitoring,
measure performance, benchmark performance and implement internal and external audits.
Furthermore, ensuring that SMEs have the correct systems, process, and procedures to support
the implementation of IMS, and building the culture of continuous improvements in seeking
better ways of performing work. Also, the input stage considers the internal and external
barriers where SMEs must identify these barriers and avoid them in improving their systems
and process in order to support the IMS implementation.
The second stage is the OPERATION where SMEs start implementing IMS with the focus on
their characteristics and follow Plan, Do, Check, and Act (PDCA), which is the basis of
continuous improvement. While SMEs are implementing the selected IMS, PDCA process will
be followed as follow:
 Plan: the purpose of this stage is to identify problems and possible causes and to
prioritize corrective actions through drawing information/data.
 Do: This phase involves activities designed to improve the situation. These activities
include the generation of possible solutions, selection of the best of these solutions
through the application of different techniques such as Impact Analysis to scrutinize,
and implement a pilot project on a small scale to see the workability of the identified
solution
 Check: This phase will focus on observing how effective the pilot solution has been and
gather data/information and learnings from it that could improve it further. Based on
the check phase, results where a possible number of areas have been identified, you may
make a decision whether as to repeat the "Do" and "Check" phases, incorporating your
additional improvements.
 Act: Now you implement your solution. However, the use of the PDCA Cycle doesn't
necessarily stop there as it’s a continuous improvement initiative, you need to loop back
to the Plan Phase, and find out further areas for improvement.
The third stage is the OUTPUT where after the effective implementation, SMEs will start
experiencing internal and external benefits which will lead to overall improved performance
and sustainable organizational development.
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DISCUSSION
Small and medium enterprises are increasingly important to be established especially in
developing and underdeveloped countries to provide opportunities for employment and
livelihood for the growing population. SMEs are strategic to every country as they provide
services and goods in the supply chain market including to large firms. SMEs need to adopt
technology changes and innovative strategies to accelerate their business growth (Gunasekaran
et al., 2011), this needs substantial resources and support from management to implement the
changes which has been a challenge and a barrier to many SMEs in developing and under
developed nations which have limited access to innovation.
Extensive research studies on diversified topics related to SMEs for sustaining business
continuity, surviving the current global challenges with reference to consumer satisfaction and
product quality, indicate implementing integrated management system in SMEs as a significant
measure. Although, implementing them in organizations especially in SMEs involves many
internal and external factors that determine the effectiveness and benefits thereafter. IMS should
be conceptualized based on the need arising in individual SMEs with focus on issues that
determine its successful implementation, rather than addressing all the elements of the
management systems would cause failure of IMS in these enterprises. SMEs themselves do not
have strong competitors from the analysis of literature but have inherent challenges that limit
their growth and flexibility to innovate.
These enterprises, in order to deliver their potential output, must address the multiple challenges
by synchronizing their operations to advancements in technology that might affect these firms
in delivering quality products. Hence, SMEs have expanded their scope by emphasizing the
need to incorporate total quality management system and or integrated management system as
means to overcome the many barriers they face over larger firms. However, adopting integrated
management systems over total quality management systems in SMEs has become a need-based
approach rather than purpose-based approach to justify their resilience in a competitive market.
In principle, TQM and IMS have slightly similar approaches and applicability as the latter
combines quality management systems to the extent of the management element in
organizations - though IMS covers a wider scope of operations in SMEs, that would benefit the
management from implementing individual management systems.
Globally, industries are shifting steadily towards IMS as an improvement over quality
management systems to meet competitive markets which also creates an added value, especially
to SMEs. Although substantial studies have proven that IMS has significant benefits over
individual management systems that are essential for SMEs, which prioritize their resources
and maintain business continuity. Nevertheless, there are no distinct indicators apparently
identified and developed to assess the effectiveness of IMS over independent management
systema in either SMEs or larger firms. Yet, most of the research studies have only critically
examined either of the management systema, therefore implying that IMS is more likely to be
an effective and diversified approach for sustainable business in these enterprises. Hence, need
arises to examine the determining factors that significantly represent the effectiveness of
integrated management systems over total quality management, presuming the fact that
organization business operations are not specifically oriented to any management system.
SMEs in pursuit of excellence, must have the business growth to meet the competition in market
with larger firms and should be prepared to experience transitional changes that can enable
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them to meet the business trends. As these firms have limited networking and lesser resilience
to market pressures, SMEs need to have back-end support for building relationships with
multinational companies and larger firms. However, SMEs operating individually, have higher
risk of coping with the global market by subsequently loosing recognition and business
opportunities. To the contrary, networking with partner SMEs do exist in European countries
which provides stability and sustenance during recession. Such a collaboration network among
SMEs benefits individual units by adding value to their products and services from being part
of a supply chain market.
On the other hand, there is compulsion for all the SMEs operating in the virtual network to
follow common standards for management systems, or else it would likely lead to conflicts
between individual units and their performance. Therefore, working towards implementing
integrated management systems within those enterprises will collectively enhance the
productivity in SMEs regionally and will strengthen their inherent business continuity.
Integrating management systems in organizations including SMEs is considered a better
approach over individual management systems for a sustainable business and continued growth
in the global market, yet integration does not always facilitate improvement in performance
unless challenges during the integration process are addressed at early stages and reasonable
measures taken by every facet of management. Hence, to fully harness the benefits of integrated
management systems over quality management, integration should be practiced at earlier stages
of business operation in all sectors of SMEs globally.
To achieve the objectives of IMS, management should emphasize providing training to
motivate employee participation and involvement at every stage of the integration process.
From the overall analysis, individual management systems existing in practice were fully
meeting requirements and the TQM model has disabilities when it comes to dealing with
organizational and employee demands. Thus, integrated management systems would be a
feasible method to have comprehensive and practical structure within SMEs that can sustain
business continuity.
CONCLUSION
Management systems are becoming more applicable to all sorts of businesses, especially in
small and medium enterprises to sustain the increasing competition in the global market over
larger firms, which are more stabilized in times of economic disturbances. On the contrary,
economies are directing their focusing more towards these small enterprises due to the potential
they have in providing employment and promising jobs in the future which could potentially
sustain many businesses and employment worldwide.
In pursuit of these SMEs it is likely that potential challenges to sustain business continuity will
be encountered, in addition to maintaining compliance with regulatory framework, thus
necessitating these organizations to understand the significance of incorporating IMS to their
business operations. However, wide research studies and proposed models on the application
of different management systems have indicated a positive influence on SME businesses that
would improve their performance. Nevertheless, implementing an integrated management
system is considered a more effective and feasible mechanism for SMEs to ensure sustainable
business continuity. Besides, there are also some significant enablers influencing IMS
implementation essentially to overcome the inherent internal and external barriers that disable
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the effectiveness of SMEs over the larger firms. In this complexity of business affordability,
consumer satisfaction is very critical in deciding the success and deliverance of quality products
that subsequently boosts the prospects of every organization, especially SMEs, in this scope of
study.
Conversely, the benefits of IMS implementation exceed across individual management systems
either in larger firms or SMEs, with characteristics differing in both types of business
establishments though the operational features are similar. Furthermore, to maximize the
efficient use of IMS in SMEs, a three-stage model developed in this study will typically support
these enterprises to attain stability and sustenance, which appends all the elements of a
management system at every stage of business operation. Despite all these findings, SMEs have
the necessity to broaden their view towards collaborating with larger business partners to
maintain the flow of service provision and goods in a supply chain that would provide an ideal
approach to achieve sustainability and improve organization performance. Nevertheless, SMEs
critically need to focus on addressing the challenges limiting their business growth and to adopt
improvements in technology and innovation to meet the globalization demands.
The question remains unanswered, with all the research findings, if SMEs should remain
optimistic towards a competitive global market and if they will continue as potential sources
for employment in future.
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Figure 1a Figure 1b
(Source: Samy et al., 2015: 988)

Figure 1: Showing complete IMS ingredients
Table 1: IMS Categorized Benefits
Internal Functional Benefits Documentation Reduction, avoidance of duplication and decreased paperwork
Benefits Improved Operational Efficiency
Simplified Systems and procedures
Time savings and reduction in time required for implementing the Management
Systems
Unification of audits
Unification of training
Common framework for continual improvement
Enhances overall organizational performance
Synergy between MSS
Financial Benefits Cost reductions, e.g., in management, operations, and insurance premiums.
Cost savings by unification and reduction of audits
Reduction in certification costs
Organizational Benefits Efficient use of human resources
Improves organizational global strategy
Better allocation of resources
Improves organizational learning and growth
Effective utilization of resources
Clear definition of responsibilities
Improves the organizations internal processes
Means to sustainable development
Strategic planning
Holistic view
Improved interdepartmental communication
Other Benefits Encourage Teamwork
Better options to include new systems
Increased employee Morale and understanding
Cultural change (Learning organization)
Improvement in quality, environmental and health and safety
External Commercial Benefits Enhanced customer satisfaction
Benefits Satisfies the beneficiaries
Improved image of company
Gaining competitive advantage
Statutory Benefits Prerequisite for business
Improvement in quality, environmental and health and safety
(Source: Samy et al., 2015: 995)
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Table 2: IMS categorized benefits in SMEs
Internal Organizational Benefits Improvement of quality of management by down-sizing three

Benefits functional departments to one and reducing fuzzy management
boundaries between individual systems
Increase in operational efficiency by harmonizing organizational
structures with similar elements and sharing information across
traditional organizational boundaries
Avoidance of duplication between procedures of systems –
Streamlining paperwork and communication
Financial Benefits Cost savings by the reduction of the frequency of audits
Reduction in external certification costs over single certification
audits
Increase in profit margins
People Benefits Increase in employee motivation, awareness and qualifications
Creation of a better company image among employees
External Commercial Benefits Competitive advantage,
Benefits Improvement of marketplace
Gain new customers/satisfy existing ones
Communication Benefits Improvement of company’s image
Improvement of relations with stakeholders
Evidence of legal compliance
Q/E/S Benefits Improvement in quality, environmental and health and safety
Reduction of hazardous waste generation
Reduction of equipment damage and product loss
(Source: Moljevic et al., 2013: 318-319)
Table 3: SME characteristics
Structure  Flat structure with few layers People  Modest human capital and
of management know-how
 Large degree of influence  Very few internal change
exercised by individual catalysts
managers  Individuals can see the results
 Informal strategies of their efforts
 Single sited  Low incidence of unionization
 Potential for quick responses
to external changes
 Unified culture
 Limited financial resources
Contact  Operating in limited markets Processes  Flexible processes
with a small customer base  Low degree of standardization
 Limited external contacts  Reactive and firefighting
mentality
 Result oriented
(Source: Assarlind and Gremyr, 2014: 402)
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Table 4: IMS Implementation: Internal and External Barriers
IMS Implementation: Internal Barriers
1 Resources and Insufficient financial and human resources
Management Lack of information, expertise and insufficient training
Lack of time and delays in integration
Lack of management and administration support
Lack of strategic planning
Inadequate and methodologies and lack of specialized auditors
2 People Lack of proper attitude and perception
Lack of employees’ motivation
Employees rejection of new system
Employees resistance due to loss of individual functions
Lack of awareness
3 Implementation Diversity of constituent MSS – different scope of individual systems
Different structure of individual MMS
Misunderstanding of integration concepts and lack of guidelines
Reduced flexibility after integration
Increase in bureaucracy due to intertwining
Risk of not assigning right level of importance to each function of MSS
IMS Implementation: External Barriers
1 Economic Insufficient drivers and benefits
Uncertainty about value of IMS
2 Social and Legal Lack of support schemes and guidance
Lack of promotion of IMS
Varying demands from different stakeholders
Continually changing regulations and guidelines
Unavailability of formal IMS
Unavailability of common denominator
3 Cultural Requires cultural transformation
Lack of communication and teamwork
Varying culture and personality clashes
(Source: Samy et al., 2015:996)
Figure 2: Proposed model by authors on IMS in SMEs
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International Journal of Business and Management Review

Vol.8, No.4, pp.58-77, July 2020

There is a growing emphasis on the importance of incorporating management systems in

Asif, M. Bruijn E. J. D. Fisscher, O. A. M. Searcy, C. and Steenhuis, H. J. (2009) “Process

Bernardo, M. Casadesus, M. Karapetrovic, S. and Heras, I. (2009). How integrated are

VonAhsen, A. and Funck, D. (2001). Integrated Management Systems — Opportunities and

Welford, R. (1994). Cases in Environmental Management and Business Strategy. Pitman

(Source: Samy et al., 2015: 988)

Table 1: IMS Categorized Benefits

Internal Organizational Benefits Improvement of quality of management by down-sizing three

Figure 2: Proposed model by authors on IMS in SMEs

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