IDEAS home Printed from https://ideas.repec.org/a/ssi/jouesi/v8y2021i3p487-503.html
   My bibliography  Save this article

Measuring efficiency by using selected determinants in regional SMEs

Author

Listed:
  • Ladislav Mura

    (Pan-European University, Slovakia)

  • Zuzana Hajduová

    (University of Economics in Bratislava, Slovakia)

Abstract

In comparison to other EU countries, Slovakia is characterized by increased business activity and the highest representation of micro-enterprises in the business sector. In the years 2017/2018 -, up to 75% of companies in the SME segment conducted business activity in the field of industry, accommodation, trade, transport and construction. The collected data clearly indicates a growing trend in providing accommodation services, business and information services, business and brokerage services. The main objective of the study is to assess the sectorial structure of SMEs and managerial determinants of their efficiency. The research sample of the enterprises has shown that even these methods can better warn against bankruptcy by predicting whether business will or will not be sustainable. In comparison to EU-28, Slovakia has a significantly higher representation of industry and civil engineering in the sectoral structure of SMEs, while the service sector is under-represented. We conducted a research focusing on our defined area of business in the SME segment. The evaluation of efficiency is most often performed by ratios, which are based on current financial statements of companies. The disadvantage of these measurements is the focus on a certain quantified range of parameters that do not significantly affect the overall efficiency of the unit. Based on the DEA methodology, a selected segment of services in individual regions of Slovakia was analysed in details. The SME sector in individual regions of Slovakia is showing differences. This work presents the results of the clearly defined efficiency of business entities. The main part of this work is about the exact determination of factors that need to be changed in order the specified entity shows signs of efficient management.

Suggested Citation

  • Ladislav Mura & Zuzana Hajduová, 2021. "Measuring efficiency by using selected determinants in regional SMEs," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(3), pages 487-503, March.
    • Handle: RePEc:ssi:jouesi:v:8:y:2021:i:3:p:487-503
    DOI: 10.9770/jesi.2021.8.3(31)
    as

    Download full text from publisher

    File URL: https://jssidoi.org/jesi/uploads/articles/31/Mura_Measuring_efficiency_by_using_selected_determinants_in_regional_SMEs.pdf
    Download Restriction: no
    File URL: https://jssidoi.org/jesi/article/795
    Download Restriction: no
    File URL: https://libkey.io/10.9770/jesi.2021.8.3(31)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Anna A. MIKHAYLOVA & Andrey S. MIKHAYLOV & Andrey S. MIKHAYLOV & Oksana V. SAVCHINA & Angelina P. PLOTNIKOVA, 2019. "Innovation Landscape Of The Baltic Region," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2019(33), pages 165-180, December.
    2. Poór József & Allen D. Engle & Kovács Ádám & Anna Albrychiewicz-Slocinska & Zdeněk Caha & Vilmante Kumpikaite-Valiuniene & Zsolt Horbulák, 2020. "Initial Findings For Labour Markets In The Czech Republic, Hungary, Poland And Slovakia," Central European Journal of Labour Law and Personnel Management, Labour Law Association, vol. 3(1).
    3. Chukwunonye Anyakoha, 2019. "JOB ANALYSIS AS A TOOL FOR IMPROVED ORGANIZATIONAL PERFORMANCE OF SMEs IN LAGOS, NIGERIA," Central European Journal of Labour Law and Personnel Management, Labour Law Association, vol. 2(1).
    4. Robert Huggins & Piers Thompson, 2015. "Entrepreneurship, innovation and regional growth: a network theory," Small Business Economics, Springer, vol. 45(1), pages 103-128, June.
    5. Anna Zauskova & Monika Reznickova, 2020. "SoLoMo marketing as a global tool for enhancing awareness of eco-innovations in Slovak business environment," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 15(1), pages 133-150, March.
    6. Premysl Pisar & Diana Bilkova, 2019. "Controlling as a tool for SME management with an emphasis on innovations in the context of Industry 4.0," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 14(4), pages 763-785, December.
    7. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    8. Gentjan ÇERA & Maksim MEÇO & Edmond ÇERA & Sadik MALOKU, 2019. "The Effect Of Institutional Constraints And Business Network On Trust In Government: An Institutional Perspective," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2019(33), pages 6-19, December.
    9. Mardani, Abbas & Zavadskas, Edmundas Kazimieras & Streimikiene, Dalia & Jusoh, Ahmad & Khoshnoudi, Masoumeh, 2017. "A comprehensive review of data envelopment analysis (DEA) approach in energy efficiency," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 1298-1322.
    10. Ramakrishnan Ramanathan & Usha Ramanathan, 2011. "A performance measurement framework combining DEA and balanced scorecard for the UK health sector," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 12(3), pages 257-278.
    11. Zoltán Lakner & Anna Kiss & Ivan Merlet & Judit Oláh & Domicián Máté & Janusz Grabara & József Popp, 2018. "Building Coalitions for a Diversified and Sustainable Tourism: Two Case Studies from Hungary," Sustainability, MDPI, vol. 10(4), pages 1-23, April.
    12. Chunling Li & Khansa Pervaiz & Muhammad Asif Khan & Faheem Ur Rehman & Judit Oláh, 2019. "On the Asymmetries of Sovereign Credit Rating Announcements and Financial Market Development in the European Region," Sustainability, MDPI, vol. 11(23), pages 1-14, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stavros Kalogiannidis & Efstratios Loizou & Dimitrios Kalfas & Fotios Chatzitheodoridis, 2022. "Local and Regional Management Approaches for the Redesign of Local Development: A Case Study of Greece," Administrative Sciences, MDPI, vol. 12(2), pages 1-17, June.
    2. Ján Dobrovič & Veronika Čabinová & Peter Gallo & Petra Partlová & Jan Váchal & Beáta Balogová & Jozef Orgonáš, 2021. "Application of the DEA Model in Tourism SMEs: An Empirical Study from Slovakia in the Context of Business Sustainability," Sustainability, MDPI, vol. 13(13), pages 1-19, July.
    3. Michal Hrivnák & Peter Moritz & Marcela Chreneková, 2021. "What Kept the Boat Afloat? Sustainability of Employment in Knowledge-Intensive Sectors Due to Government Measures during COVID-19 Pandemic," Sustainability, MDPI, vol. 13(15), pages 1-21, July.
    4. Fabrice-Gilles Ndombi Avouba & Prince Ossebi Douniam & Christelle Ines Leticia Ndombi Ondze, 2024. "Efficiency of SMEs in Africa: Evidence from Congolese Data," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 10956-10984, September.
    5. Boris Rumanko & Jana Kozáková & Mária Urbánová & Monika Hudáková, 2021. "Family Business as a Bearer of Social Sustainability in Multinationals-Case of Slovakia," Sustainability, MDPI, vol. 13(14), pages 1-25, July.
    6. Iveta Šimberová & Antonín Korauš & David Schüller & Lenka Širáňová & Jarmila Straková & Jan Váchal, 2022. "Threats and Opportunities in Digital Transformation in SMEs from the Perspective of Sustainability: A Case Study in the Czech Republic," Sustainability, MDPI, vol. 14(6), pages 1-17, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mihai Andronie & George Lăzăroiu & Roxana Ștefănescu & Cristian Uță & Irina Dijmărescu, 2021. "Sustainable, Smart, and Sensing Technologies for Cyber-Physical Manufacturing Systems: A Systematic Literature Review," Sustainability, MDPI, vol. 13(10), pages 1-23, May.
    2. Hellen Ogutu & Gogo Fredrick Collins Adol & Zoltán Bujdosó & Benedek Andrea & Maria Fekete-Farkas & Lóránt Dénes Dávid, 2023. "Theoretical Nexus of Knowledge Management and Tourism Business Enterprise Competitiveness: An Integrated Overview," Sustainability, MDPI, vol. 15(3), pages 1-11, January.
    3. Loureiro, Sandra Maria Correia & Romero, Jaime & Bilro, Ricardo Godinho, 2020. "Stakeholder engagement in co-creation processes for innovation: A systematic literature review and case study," Journal of Business Research, Elsevier, vol. 119(C), pages 388-409.
    4. Hrivnák Michal & Roháčiková Oľga & Schwarcz Pavol, 2020. "What Drives the Private Innovation in Rural Areas? In-Depth Case Study of Slovak Rural Region," Administrative Sciences, MDPI, vol. 10(3), pages 1-17, July.
    5. Szerb, László & Rideg, András & Hornyák, Miklós & Krabatné Fehér, Zsófia, 2023. "Magyarországi városrégiók versenyképességének mérése és elemzése [Measuring and analyzing the competitiveness of urban regions in Hungary]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(2), pages 119-148.
    6. Marina Dabić & Jane Maley & Leo-Paul Dana & Ivan Novak & Massimiliano M. Pellegrini & Andrea Caputo, 2020. "Pathways of SME internationalization: a bibliometric and systematic review," Small Business Economics, Springer, vol. 55(3), pages 705-725, October.
    7. Jonathan H. Reed, 2022. "Operational and strategic change during temporary turbulence: evidence from the COVID-19 pandemic," Operations Management Research, Springer, vol. 15(1), pages 589-608, June.
    8. Witold Nowiński & Wanda Nowara, 2011. "Stopień i uwarunkowania internacjonalizacji polskich małych i średnich przedsiębiorstw," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 29-45.
    9. Rasha Fady Ismail & Fadi Safieddine & Rawad Hammad & Mazhar Hallak Kantakji, 2022. "Towards Sustainable Production Processes Reengineering: Case Study at INCOM Egypt," Sustainability, MDPI, vol. 14(11), pages 1-25, May.
    10. Fumihiko Isada, 2021. "Changes in the International Network of Japanese Electronics Manufacturers," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 9(1), pages 47-62, May.
    11. Piñeiro-Chousa, Juan & López-Cabarcos, M. Ángeles & Romero-Castro, Noelia María & Pérez-Pico, Ada María, 2020. "Innovation, entrepreneurship and knowledge in the business scientific field: Mapping the research front," Journal of Business Research, Elsevier, vol. 115(C), pages 475-485.
    12. Agnieszka A. Tubis & Katarzyna Grzybowska, 2022. "In Search of Industry 4.0 and Logistics 4.0 in Small-Medium Enterprises—A State of the Art Review," Energies, MDPI, vol. 15(22), pages 1-26, November.
    13. Gregorio Rius-Sorolla & Sofía Estelles-Miguel & Carlos Rueda-Armengot, 2020. "Multivariable Supplier Segmentation in Sustainable Supply Chain Management," Sustainability, MDPI, vol. 12(11), pages 1-16, June.
    14. Lai, John & Olynk Widmar, Nicole J. & Gunderson, Michael A. & Widmar, David A. & Ortega, David L., 2018. "Prioritization of farm success factors by commercial farm managers," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(6), July.
    15. Peter Grajzl & Stjepan Srhoj & Jaka Cepec & Barbara Mörec, 2024. "A by-product of big government: the attenuating role of public procurement for the effectiveness of grants-based entrepreneurship policy," Small Business Economics, Springer, vol. 62(3), pages 895-916, March.
    16. Muhammad Sajjad Hussain & Muhammad Muhaizam Bin Musa Musa & Abdelnaser Omran Ali, 2018. "The Impact of Private Ownership Structure on Risk Taking by Pakistani Banks: An Empirical Study AbstractThe financial crisis of 2007-09 was converted the focus of researchers and regulators toward ban," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 6(3), pages :325-337, September.
    17. Peter E. Harland & Zakir Uddin & Sven Laudien, 2020. "Product platforms as a lever of competitive advantage on a company-wide level: a resource management perspective," Review of Managerial Science, Springer, vol. 14(1), pages 137-158, February.
    18. Henry M. H. Chan & Vincent W. S. Cho, 2022. "An Empirical Study: The Impact of Collaborative Communications on New Product Creativity That Contributes to New Product Performance," Sustainability, MDPI, vol. 14(8), pages 1-17, April.
    19. Hornyák, Miklós & Kruzslicz, Ferenc & Lányi, Beatrix, 2023. "A kis- és középvállalatok digitális transzformációja - az online jelenlét és a versenyképesség összefüggései [The relationships between the online presence of SMEs and competitiveness]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 517-543.
    20. Marco Valeri & Rodolfo Baggio, 2021. "A critical reflection on the adoption of blockchain in tourism," Information Technology & Tourism, Springer, vol. 23(2), pages 121-132, June.

    More about this item

    Keywords

    small and medium enterprises; regions; DEA; models; correlation;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssi:jouesi:v:8:y:2021:i:3:p:487-503. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuela Tvaronaviciene (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.