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Controlling as a tool for SME management with an emphasis on innovations in the context of Industry 4.0

Author

Listed:
  • Premysl Pisar

    (University of Finance and Administration, Czech Republic)

  • Diana Bilkova

    (University of Economics, Czech Republic)

Abstract

Research background: Small and medium-sized businesses are significant economic power and employer in the European Union. The modern globalized world, new technologies, and advanced connectivity bring SMEs a wide range of opportunities, but also threats. Increasing the stability and competitiveness of SMEs is one of the main goals of national governments and the EU. The research is based on personal research in SMEs, its experiences and backward testing of reached results. Purpose of the article: The aim of the paper is to analyze the possibilities the potential of using controlling as a managing tool of SMEs for increased competitiveness in the context of Industry 4.0 with an emphasis on innovations. Methods: The study is based on a detailed analysis of 341 SMEs from the Czech Republic obtained in the years 2017–2019. The data were analyzed using statistical methods such Pearson correlation, stepwise regression for the purpose of determining the relationship between the controlling management system of a company, its innovation potential, level of process maturity, number of employees, internal audit, financial stability and strategic plan. Statistical analysis confirmed the close relationship of the analyzed variables and backwards experimental testing of the statistical analysis conclusions defined critical factors in the area of people in an organization, usage of advanced information systems and Industry 4.0 technologies implementation. Findings & Value added: Those important areas were determined as essential for the successful development of SMEs, as well as the most significant threats in the Industry 4.0 environment. The information obtained is useful in practice and can be applied to a more in-depth analysis of the issues. The research findings are showing possible opportunities and treads for SMEs long term stability and development as well as ways to increase enterprise performance based on controlling management system.

Suggested Citation

  • 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.
    • Handle: RePEc:pes:ierequ:v:14:y:2019:i:4:p:763-785
    DOI: 10.24136/eq.2019.035
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    Cited by:

    1. 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.
    2. 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.
    3. Adam Wisniewski, 2021. "The Link Between Business Relations and Success of an Organization: A Research Study," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 521-535.
    4. Irawan Soerodjo, 2020. "Joint Venture as a Model of Cooperation in the Infrastructure Projects in Indonesia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 396-401.
    5. Katarina Valaskova & Marek Nagy & Stanislav Zabojnik & George Lăzăroiu, 2022. "Industry 4.0 Wireless Networks and Cyber-Physical Smart Manufacturing Systems as Accelerators of Value-Added Growth in Slovak Exports," Mathematics, MDPI, vol. 10(14), pages 1-21, July.
    6. Ján Dvorský & Ľudmila Kozubíková & Barbora Bacová, 2020. "The Perception of Business Risks by SMEs in the Czech Republic," Central European Business Review, Prague University of Economics and Business, vol. 2020(5), pages 25-44.
    7. Tomas Kliestik & Marek Nagy & Katarina Valaskova, 2023. "Global Value Chains and Industry 4.0 in the Context of Lean Workplaces for Enhancing Company Performance and Its Comprehension via the Digital Readiness and Expertise of Workforce in the V4 Nations," Mathematics, MDPI, vol. 11(3), pages 1-21, January.
    8. Marta Urbaníková & Michaela Štubňová & Viera Papcunová & Jarmila Hudáková, 2020. "Analysis of Innovation Activities of Slovak Small and Medium-Sized Family Businesses," Administrative Sciences, MDPI, vol. 10(4), pages 1-19, October.
    9. 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.
    10. Jan Dvorsky & Ludmila Kozubikova & Aleksandr Kljucnikov & Eva Ivanova, 2022. "Owners vs. Managers. Disparities of Attitudes on the Business Risk in SME Segment," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(59), pages 174-174.
    11. Alka Obadic & Dejan Ravselj & Aleksander Aristovnik, 2020. "Administrative Barriers in the Field of Employment in the EU: Empirical Evidence from Croatia and Slovenia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 533-553.
    12. 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.
    13. Marek Nagy & George Lăzăroiu, 2022. "Computer Vision Algorithms, Remote Sensing Data Fusion Techniques, and Mapping and Navigation Tools in the Industry 4.0-Based Slovak Automotive Sector," Mathematics, MDPI, vol. 10(19), pages 1-22, September.

    More about this item

    Keywords

    industry 4.0; controlling; SME; innovation; audit;
    All these keywords.

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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