The Role of Manufacturing Operations in SMEs Performance: A Systematic Review

The critical role of manufacturing operations in enhancing the performance of Small and Medium Enterprises (SMEs) has become increasingly evident in recent years. This systematic review examines how manufacturing operations influence the performance of SMEs, analysing findings from 69 diverse research papers published between 2014 and 2024. Utilizing the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework, the review focuses on key operational strategies, including lean manufacturing and advanced manufacturing technologies, assessing their effectiveness in improving business outcomes such as efficiency, productivity, and financial performance. The methodology included a thorough review of the research methods used in the studies, identifying potential biases, gaps, and highlighting the need for diverse approaches. While manufacturing operations have led to improved productivity and increased efficiency for many SMEs, challenges such as limited resources, lack of technical expertise, and resistance to change remain prevalent. Notably, a reporting bias was observed, with 48% of the literature composed of quantitative studies, 30% being mixed-method studies, and only 20% and 1% representing qualitative and exploratory studies, respectively. This imbalance suggests an overemphasis on quantitative methods, limiting the range of ideas and understanding available. Key strategies such as lean manufacturing and advanced technologies were shown to enhance productivity by 15% to 25% in SMEs. By adopting a broad approach, this review ensures that the findings are applicable across various sectors and geographies, offering valuable insights into best practices and challenges across diverse economic contexts. The broad scope also allows for the identification of under-researched areas, fostering a more comprehensive understanding of how manufacturing operations contribute to SME success. The review provides a decision-making framework for business leaders and policy recommendations to foster SME growth in a competitive, globalized market.