TITLE:
Automation and Cost Structures in SMEs: Are Small Firms Disadvantaged vs. Multinationals?
AUTHORS:
Suman Banerjee, Aayush Dhar, Kush Dave, Ayushmaan Mukherjee
KEYWORDS:
Finance, Automation, MNCs, SMEs, Artificial Intelligence, RBV, Economies of Scale, Technology
JOURNAL NAME:
Open Journal of Business and Management,
Vol.14 No.2,
March
10,
2026
ABSTRACT: This paper examines how automation reshapes the cost structures of small and medium-sized enterprises (SMEs) compared to multinational corporations (MNCs). Using the dual lenses of economies of scale and the resource-based view, the study analyzes financial, human capital, and informational constraints that disadvantage SMEs in adopting capital-intensive technologies such as artificial intelligence, robotics, and enterprise platforms. Comparative case studies from Germany, Japan, India, Sub-Saharan Africa, the United States, and the European Union highlight persistent adoption gaps shaped by institutional context. Findings suggest that while automation-as-a-service and supply-chain integration offer partial relief, structural disadvantages risk widening productivity inequalities worldwide.