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The Internationalization of SMEs in Central Europe and Its Impact on Their Methods of Risk Management

Author

Listed:
  • Zuzana Virglerova

    (Tomas Bata University in Zlin, Czech Republic)

  • Muhammad Asif Khan

    (University of Kotli, Jammu and Kashmir, Pakistan)

  • Raimonda Martinkute-Kauliene

    (Vilnius Gediminas Technical University, Lithuania)

  • Sandor Kovacs

    (University of Debrecen, Hungary)

Abstract

The international business environment is very competitive, and enterprises should be aware of how to manage business risks, which methods to choose, and what impact these risks have on the sustainability of these methods and on the whole system. The aim of this article is to analyse the impact of the internationalization of SMEs on risk management and define the differences in perceptions of the importance of sustainability regarding this system. Data from an extensive research study in V4 countries (Czech Republic, Hungary Slovakia, Poland) were analysed. Data were collected through on-line questionnaire in 2018, and a total of 1781 valid responses by SMEs were included in this research. To fulfil the research aim, three hypotheses were established. The odds ratio was calculated for the effect of company type (international x domestic) on the different individuals responsible for risk management. The Tarantula similarity measure was calculated to measure the strength and pairwise relationships between risk reducing strategies and risk management techniques. The Chi-Square test was applied to assess differences between variables. The results show that a specialized risk manager is authorized to deal with risk management in international companies more often than in domestic companies. There are also differences in the relationship between risk managing techniques and risk reducing strategies, depending on the presence of the business on international market. Companies in the international market are more focused on methods of risk management which support sustainability and their system of risk management has a more stable future.

Suggested Citation

  • Zuzana Virglerova & Muhammad Asif Khan & Raimonda Martinkute-Kauliene & Sandor Kovacs, 2020. "The Internationalization of SMEs in Central Europe and Its Impact on Their Methods of Risk Management," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 22(55), pages 792-792, August.
  • Handle: RePEc:aes:amfeco:v:22:y:2020:i:55:p:792
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    References listed on IDEAS

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    Cited by:

    1. Aleksandr Kljuènikov & Mehmet Civelek & Cyril Klimeš & Radim Farana, 2022. "Export risk perceptions of SMEs in selected Visegrad countries," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(1), pages 173-190, March.
    2. Emilia Jercan & Teodora Nacu, 2024. "The Role of Management/Manager Practices in the Process of Internationalization of SMEs," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 112-127.
    3. Satı, Zümrüt Ecevit, 2024. "Comparison of the criteria affecting the digital innovation performance of the European Union (EU) member and candidate countries with the entropy weight-TOPSIS method and investigation of its importa," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    4. Dilawar Khan & Muhammad Nouman & József Popp & Muhammad Asif Khan & Faheem Ur Rehman & Judit Oláh, 2021. "Link between Technically Derived Energy Efficiency and Ecological Footprint: Empirical Evidence from the ASEAN Region," Energies, MDPI, vol. 14(13), pages 1-16, June.
    5. Hermes Castro Fajardo & Lina María Otálora Gómez & Fernando Chavarro Miranda, 2022. "Análisis y evaluación de mercados internacionales de la miel natural," Apuntes del Cenes, Universidad Pedagógica y Tecnológica de Colombia, vol. 41(74), pages 201-240, July.
    6. Faheem Ur Rehman & Ejaz Ahmad & Muhammad Asif Khan & József Popp & Judit Oláh, 2021. "Does Trade Related Sectoral Infrastructure Make Chinese Exports More Sophisticated and Diversified?," Sustainability, MDPI, vol. 13(10), pages 1-21, May.

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    More about this item

    Keywords

    risk manager; V4 (Czech Republic; Hungary Slovakia; Poland); enterprise; risk management; ERM; sustainability;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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