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Eliciting Weights of Significance of Criteria for a Monitoring Model of Performance of SMEs for Successful Insolvency Administrator’s Intervention

Author

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  • Askoldas Podviezko

    (Agricultural Policy and Foreign Trade Division, Lithuanian Institute of Agrarian Economics, LT-03105 Vilnius, Lithuania
    These authors contributed equally to this work.)

  • Ralph Kurschus

    (Rechtsanwalte—Insolvenzverwalter, Schwedenstraße 11, DE-17033 Neubrandenburg, Germany
    These authors contributed equally to this work.)

  • Giedre Lapinskiene

    (Department of Business Technologies and Entrepreneurship, Vilnius Gediminas Technical University, Sauletekio ave, LT-10223 Vilnius, Lithuania
    These authors contributed equally to this work.)

Abstract

Small and medium-sized enterprises (SMEs) are accounted for as a major part of the economy of the EU in terms of part of the population employed, turnover, value-added, etc. Causes of insolvency of SMEs can be different; they are categorized in the paper. A considerable shift from resolving cases of bankruptcy with the sole aim to satisfy creditors’ rights to augmenting and enhancing liquidation and reorganization procedures evolved interest of the authors in creating efficient bankruptcy prediction models and, in particular, methodologies for evaluation and monitoring of the performance of SMEs. In the paper, we reviewed several initiatives and instruments created by the EU for supporting SMEs. The paper laid a foundation for creating a more comprehensive methodology for evaluation of the state of a firm undergoing the process of reorganization. A hierarchy structure of criteria for the evaluation of SMEs was used in the paper; methodologies for eliciting weights of importance of criteria from experts and gauging the level of concordance of opinions of experts were applied. Resulting weights of criteria of performance of an insolvent SME were obtained; the importance of the managerial category of criteria was revealed. Prominent features of hierarchy structures and methodology of using the structure for calculating ultimate weights were described and demonstrated. Gauging concordance of opinions of experts revealed a satisfactory level of concordance of opinions of experts; this allowed to prepare the ultimate weights of criteria for multiple criteria evaluation of SMEs for further research.

Suggested Citation

  • Askoldas Podviezko & Ralph Kurschus & Giedre Lapinskiene, 2019. "Eliciting Weights of Significance of Criteria for a Monitoring Model of Performance of SMEs for Successful Insolvency Administrator’s Intervention," Sustainability, MDPI, vol. 11(20), pages 1-16, October.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:20:p:5667-:d:276337
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    Cited by:

    1. Sanghoon Lee & Keunho Choi & Donghee Yoo, 2020. "Predicting the Insolvency of SMEs Using Technological Feasibility Assessment Information and Data Mining Techniques," Sustainability, MDPI, vol. 12(23), pages 1-17, November.

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