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The IUP Journal of Knowledge Management :
Performance Management and Innovative Human Resource Training Through Flexible Production Systems Aimed at Enhancing the Competitiveness of SMEs
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In the current knowledge economy, companies need to develop competitive advantages based on an adequate and intensive use of innovation processes and Information and Communication Technology (ICT) that are becoming essential elements of business success in today’s European market. The purpose of this paper is to introduce and discuss the benefits of online training on automation and innovation fields and try to explain their organizational impact on Small and Medium-Sized Enterprises (SMEs). Besides, it tries to understand the main barriers to SMEs with respect to the realization of their innovative potential and their capacity to improve internal processes by ICT adoption and organizational change. They are becoming particularly important for achieving greater productivity, lower operational costs, and higher revenues (usually characterized by reduced access to external finance, unavailability of wider distribution channels, low internationalization, etc.). The goal of the paper is also to synthesize the experience and the benefits of e-learning and of a specific professional environment in the training process. The described project provides training contents to enhance the participants’ background and some innovative simulations to improve effectively the specialized knowledge of the employees on industrial automation systems.

 
 
 

Information and Communication Technology (ICT), automation and robotics are changing the manufacturing processes and industrial competitiveness. In parallel, educational institutions are also integrating several aspects of information systems, logistics, mechanics, electronic processes (mechatronics) and technologies to improve their business courses. This element is especially relevant for Small and Medium-Sized Enterprises (SMEs), whose survival depends, among other factors, on the use they make of ICTs to develop new organizational models, compete in new markets or enhance their internal and external communication relationships. Nevertheless, many small enterprises have rather conservative approaches toward new technologies and thereby miss many opportunities of utilizing improved technologies (Armenia et al., 2008). SMEs need highly qualified staff with strong competencies for operating new industrial machines and managing sophisticated production processes (Casalino et al., 2012). The project results analyzed in this paper can help managers and trainers to address and go over the problem of low knowledge about possibilities offered by flexible industrial automation systems. The project, which will be described in depth later, adapts and develops an innovative approach and learning contents (Uskov and Casalino, 2012) targeted specifically at SMEs to qualify managers and staff on industrial automation systems. There have been significant debates about the impact of new ICTs on economic performance (Jin, 1999) and competitiveness in general, and on productivity, efficiency, and innovation in particular (Metallo et al., 2012). The diffusion of automation can produce new opportunities to SMEs. It overcomes the concept of traditional organization and emphasizes the interdependence between the organization of jobs and technology (Fontana and Caroli, 2013). Notably, in seeking an explanation for the acceleration in productivity and economic growth experienced in many industrialized countries, many economists have looked at the development, application, and utilization of ICT as a critical success factor. Hence, at the firm level, the expectations are of greater efficiency, lower costs, and access to larger and new markets, while governments see the application and use of ICT as generating higher productivity and competitiveness (Agrifoglio et al., 2013). This paper provides an analysis of automation and innovation fields and tries to explain their organizational impact on SMEs. Besides, it tries to understand the main barriers to SMEs with respect to the realization of their innovative potential and their capacity to create employment (reduced access to external finance, unavailability of wider distribution channels, low internationalization, etc.). Moreover, as first argued by New Growth Theory (Romer, 1986), the capacity of continuous innovation has become a key factor in the global competition of high-income regions in order to acquire additional factors of production and the new value-adding processes which are necessary to keep an economy on a sustainable growth path (Ricciardi and De Marco, 2012). SMEs seem to be the ideal vehicle to promote both goals—sustainable innovation-based economic growth and employment creation—without trade-offs, given, as frequently assumed, the high flexibility as well as the relatively labor-intensive mode of production in SMEs. However, the issue as to how realistic these expectations are is anything but resolved. Despite the experience with a different number of SME promotion programs, it is still debated as to which specific policy measure is really suitable to guarantee undistorted competition by compensating firm-size specific disadvantages, such as the SMEs’ restricted access to public resources.

 
 
 

Knowledge Management Journal, Information and Communication Technology (ICT), Small and Medium-Sized Enterprises (SMEs), Performance Management, Innovative Human Resource Training, Flexible Production Systems, Enhancing, Competitiveness, SMEs.