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IT SECTOR DEVELOPMENT IN CLUJ-NAPOCA. THE CASE OF SMEs

Author

Listed:
  • IOAN CRISTIAN CHIFU

    (Department of Business, Faculty of Business, Babes-Bolyai University, Cluj-Napoca, Romania)

  • WASEEM EID

    (Master Graduate, International Business Administration master program, Faculty of Business, Babes-Bolyai University, Cluj-Napoca, Romania)

  • IOAN ALIN NISTOR

    (Department of Business, Faculty of Business, Babes-Bolyai University, Cluj-Napoca, Romania)

Abstract

The purpose of this paper is to to explore the evolution of SMEs from Cluj-Napoca in the IT sector by looking into the following problems: the relationship between number of employees, type of ownership and type of activity, as well as relationship between profit, liabilities, turnover, type of ownership and type of activity. The results indicate that the sector is attractive for the investors no matter what type of activity they want to develop (production or outsourcing). The main reason that makes them invest is the well prepared and relatively low cost workforce. Moreover, under favorable conditions (increase in turnover, decrease in liabilities or liabilities/capital ratio), the trend of the profit is ascending, making from this sector an interesting one for the investors (Romanian or international). Thus, our models show that this possible increase of the profit is a moderate one. Further investigations show that the development of the sector is rather a moderate one not a “booming” one. The results are normal if we take into consideration the fact that the process of developing Cluj-Napoca as an IT pole is at the beginning.

Suggested Citation

  • Ioan Cristian Chifu & Waseem Eid & Ioan Alin Nistor, 2015. "IT SECTOR DEVELOPMENT IN CLUJ-NAPOCA. THE CASE OF SMEs," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    • Handle: RePEc:bbn:journl:2015_4_4_chifu
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    File URL: http://tbs.ubbcluj.ro/RePEc/bbn/journl/Negotia_4_2015.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    IT sector; SMEs; profit; linear model; log-linear model;
    All these keywords.

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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