Strategic management controlling system and its importance for SMEs in the EU
-
DOIhttp://dx.doi.org/10.21511/ppm.18(3).2020.30
-
Article InfoVolume 18 2020, Issue #3, pp. 362-372
- Cited by
- 1169 Views
-
228 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The current hyper-competitive environment offers many great opportunities for small and medium-sized businesses (SMEs), but on the other hand, this business environment is also hazardous. SMEs are a significant economic power and employer in the European Union. Their competitiveness and long-term stability are a crucial factor for European cohesion and economic growth. The research aim is to design a strategic management controlling system that should be implemented to SMEs and be useful for their long-term future development. The study was conducted in 2017–2020 based on data from 403 SMEs. The PAPI method was used to collect data. The implications between defined variables controlling, ROA, turnover, financial analysis, and strategic management were explained, and the results obtained from an in-depth analysis were indicated. The research was concluded by a model of strategic management controlling system tested by experimental in-practice implementation on SMEs and verified. The model and the research findings are suitable for business practice and should support the long-term stability and development of SMEs.
Acknowledgment
The paper has been prepared within the project “Risk Management in Industry 4.0” (7427/2019/02 IGA VŠFS) using the objective oriented support for specific university research of the University of Finance and Administration.
- Keywords
-
JEL Classification (Paper profile tab)M10, M21, M30, M40
-
References47
-
Tables3
-
Figures1
-
- Figure 1. Operative and strategic controlling implementation at the surveyed SMEs
-
- Table 1. Pearson correlation analysis
- Table 2. Model construction, dependent variable Strategic management
- Table 3. Model summary
-
- Afonina, A. (2015). Strategic management tools and techniques and organisational performance: Findings from the Czech Republic. Journal of Competitiveness, 7(3),19-36.
- Asenkerschbaumer, S. (2012). Strategisches Controlling bei Bosch: Volatilität ist die neue Normalität. Controlling & Management, 56(5), 336-340.
- Barbu, A., & Isaic-Maniu, Al. (2011). Data collection in Romanian market research: a comparison between prices of PAPI, CATI and CAWI. Management & Marketing, 6(3), 349-364.
- Belás, J., Dvorský, J., Kubálek, J., &Smrčka, L. (2018). Important factors of financial risk in the SME segment. Journal of International Studies, 11(1), 80-92.
- Benedic, N. O. (2015). The Challenge of Controlling. International Journal of Industrial Engineering and Management (IJIEM), 6(4), 153-163.
- Bernard, Y., Godard, L., & Zouaoui, M. (2018). The effect of CEOs’ turnover on the corporate sustainability performance of French firms: JBE. Journal of Business Ethics, 150(4), 1049-1069.
- Bieńkowska, A., Kral, Z., & Zabłocka-Kluczka, A. (2017). Selected functional solutions of strategic controlling in organisations operating in Poland. Management, 22(1), 101-118.
- Buchholz, L. (2013). Strategisches Controlling (2 Auflage). Wiesbaden: Springer Fachmedien Wiesbaden.
- Bulmer, M. (2017). Sociological Research Methods. Routledge, 450 p.
- Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. Psychometrika, 16(3), 297-334.
- Darlington, R. B., & Hayes, A. F. (2017). Regression analysis and linear models: concepts, applications, and implementation. New York: The Guilford Press.
- Doğan, E. (2016). The effect of innovation on competitiveness. Ekonometri ve İstatistik Sayı, 24, 60-81.
- Drechsler, A., & Weißschädel, S. (2018). An IT strategy development framework for small and medium enterprises. Information Systems and eBusiness Management, 16(1), 93-124.
- EUROPEAN COMMISSION. (2019). SME Performance Review: The annual report (2018) Brusel.
- Farley, J. E. and Flota, M. (2017). Sociology. Routledge.
- Gama, A. P. M., & Geraldes, H. S. A. (2012). Credit risk assessment and the impact of the New Basel Capital Accord on small and medium-sized enterprises: an empirical analysis. Management Research Review, 35(8), 727-749.
- Gavel’, O. Yu. (2017). Prospects of controlling systems in strategic management. Finasovaja Analitika, 10(1), 4-19.
- Goller, I., & Bessant, J. (2017). Creativity for Innovation Management (332 p.). New York: Routledge.
- Grishunin, S. V. (2017). Developing the mechanism of qualitative risk assessment in strategic controlling. St. Petersburg State Polytechnical University Journal. Economics, 2.
- Heidt, M., Gerlach, J. P., & Buxmann, P. (2019). Investigating the security divide between SME and large companies: How SME characteristics influence organisational IT security investments. Information Systems Frontiers, 21(6), 1285-1305.
- Jamil, G. L. (2018). Handbook of Research on Strategic Innovation Management for Improved Competitive Advantage. 1. Hershey: IGI Global, p. 712-714.
- Jo, W. S., Alfnes, E. Strandhagen, J. O., & Logan, R. V. (2017). The fit of industry 4.0 applications in manufacturing logistics: A multiple case study. Advances in Manufacturing, 5(4), 344-358.
- Kamps, T. (2013). Systematic Chasing for Economic Success: An Innovation Management Approach (120 p.). Hamburg: Anchor.
- Kenari, N. K., Naser, F. F., & Iranzadeh, S. (2018). A comprehensive model for energy management strategies in coordination with manufacturing and organisation strategies and its effect on energy management performance. Cogent Business & Management, 5(1)
- Ključnikov, A., & Belás, J. (2016). Approaches of Czech entrepreneurs to debt financing and management of credit risk. Equilibrium. Journal of Economics and Economic Policy, 11(2), 343-365.
- Kramer, R. S., Mileva., M., & Kay, R. L. (2018). Inter-rater agreement in trait judgements from faces. PLoS One, 13(8).
- Krystek, U. (2012). Strategisches Controlling – Strategische Controller – Eine Befragung unter Personalberatern zur Rolle der strategischen Controller in der Unternehmenspraxis. Controlling? Zeitschrift Für Erfolgsorientierte Unternehmenssteuerung, 24(1), 10-16.
- Laval, V. (2018). How to Increase the Value-added of Controlling (215 p.). Berlin: Gruyter.
- Máchová, R. et al. (2015). Inovačné podnikanie a hodnotenie inovačního potenciálu podnikatelských sietí. Brno: Tribun EU.
- Maqsood, A. S., Tareq Zayed, A. A., & Wikström, K. (2019). Benchmarking the strategic roles of the project management office (PMO) when developing business ecosystems. Benchmarking, 27(2), 452-469.
- Moef, Al., Pellerin, R., Lamouri S., Tamayo-Giraldo, & Barbaray, R. (2017). The industrial management of SMEs in the era of Industry 4.0. International Journal of Production Research, 56(3), 1118-1136.
- Petrů, N., Kramoliš, J., Stuchlík, P. (2020). Marketing Tools in the Era of Digitization and Their Use in Practice by Family and Other Businesses. E&M Economics and Management, 23(1), 197-212.
- Písař, P., & Havlíček, K. (2018). Advanced Controlling and Information Systems Methods as a Tool for Cohesion and Competitiveness of the European Union (Proceedings of the 4th International Conference on European Integration 2018, Ostrava, 1172 p.).
- Písař, P., & Tomášková, A. (2019). The importance of social networks for the SME innovation potential in Industry 4.0 (Working paper).
- Porter, M. E. (2004). Competitive strategy: techniques for analysing industries and competitors (396 p.). New York: Free Press.
- Rompho, N. (2018). Operational performance measures for startups. Measuring Business Excellence, 22(1), 31-41.
- Sachitra, V. (2016). Review of Competitive Advantage Measurements: Reference on Agribusiness Sector. Journal of Scientific Research & Reports, 12(6), 1-11.
- Safar, L., Sopko, J., Bednar, S., & Poklemba, R. (2018). Concept of SME business model for industry 4.0 environment. TEM Journal, 7(3), 626-637.
- Shih-Chi, C., & Sharfman, M. (2018). Corporate social irresponsibility and executive succession: An empirical examination: JBE. Journal of Business Ethics, 149(3), 707-723.
- Stimie, J. E., & Vlok, P. J. (2016). A mechanism for the early detection and management of physical asset management strategy execution failure. South African Journal of Industrial Engineering, 27(3), 158-173.
- Strandhagen, J. W., Alfnes, E., & Vallandingham, L. R. (2017). The fit of Industry 4.0 applications in manufacturing logistics: a multiple case study. Advances in Manufacturing, 5, 344-358.
- Tsintsadze, A., Oniani, L., & Ghoghoberidze, T. (2018). Determining and predicting correlation of macroeconomic indicators on credit risk caused by overdue credit. Banks and Bank Systems, 13(3), 114-119.
- Unger, B., Gemünden, H., & Aubry, M. (2012). The three roles of a project portfolio management office: their impact on portfolio management execution and success. International Journal of Project Management, 30(5), 608-620.
- Vitezić, N., & Vitezić, V. (2015). A Conceptual Model of Linkage between Innovation Management and Controlling in the Sustainable Environment. The Journal of Applied Business Research, 31(1), 175-184.
- Wijayatunga, P. (2016). A geometric view on Pearson’s correlation coefficient and a generalisation of it to non-linear dependencies. Ratio Mathematica, 30, 3-21.
- Zaušková, A., Bobovnický, A., & Madleňák, A. (2013). How can the state support the innovations to build sustainable competitive advantage of the country. Serbian Journal of Management, 8(2), 255-267.
- Zolkos, R. (2012). Strategic outlook key to successful risk management: Organisational goals must be considered at program’s outset. Business Insurance, 46(17), 14-n/a.