IDEAS home Printed from https://ideas.repec.org/a/prg/jnlcbr/v2021y2021i5id289p99-113.html
   My bibliography  Save this article

The Significance of Controlling in Enterprises in Emerging Economies

Author

Listed:
  • Mariana Sedliačiková
  • Maria Moresová
  • Josef Drábek
  • Václav Kupčák

Abstract

Globalisation and increasing competition affect all existing enterprises, as well as those in emerging economies. For this reason, enterprises continuously improve their own management systems and try to gain a competitive advantage in the market in addition to eliminating shortcomings. In emerging economies in Central Europe, including Slovakia, there are still not well-established tools to support management decisions that could reveal reserves, identify deviations from the required state and reflect all these attributes in the system of motivation, evaluation, and remuneration of employees. Controlling is such a tool, the implementation of which is a prerequisite for growth in performance and market value of the enterprise. The aim of the paper is to identify and present the optimal software support for controlling for the given segment of enterprises based on the mapping of the current state of using Business Intelligence to support controlling in micro and small enterprises (MSEs) in the conditions of the specific emerging economy, namely Slovakia. This information system will allow MSEs to respond flexibly to market changes, offer alternative options to support managerial decisions and can simulate the impact of any change in the plan on business management. Within empirical research, a questionnaire was used as a method to survey the given problem in the business practice of micro and small enterprises in Slovakia. The questionnaire was sent to 2,415 MSEs, with the research sample consisting of 421 respondents, i.e. of 17.43%. The survey meets the condition of a minimum sample size. We focused on groups of micro and small enterprises, as these represent 99% of the country's market potential. While the introduction of the controlling module into the basic information systems of the company or Business Intelligence are investment-intensive for MSEs, as a real option, affordable software support for controlling based on the MS Excel programme was identified in practice. In view of the above, a prototype of a controlling information system called 'SOFIN-KA' was designed and successfully tested in the practice of the Slovak Republic in an MS Excel programme, which is customisable to each MSEs. Implications for Central European audience: For the success of micro and small enterprises (MSEs) in today's turbulent business environment, it is important to make better and faster decisions. However, MSEs in Central Europe, including Slovakia, currently do not often have sufficiently established tools to support management decisions. One of the ways to solve this problem is controlling. The proposed software support for controlling is applicable not only in Slovak MSEs but also in V4 countries. The software has been designed this way that it can always be adapted to the specific conditions of each company.

Suggested Citation

  • Mariana Sedliačiková & Maria Moresová & Josef Drábek & Václav Kupčák, 2021. "The Significance of Controlling in Enterprises in Emerging Economies," Central European Business Review, Prague University of Economics and Business, vol. 2021(5), pages 99-113.
    • Handle: RePEc:prg:jnlcbr:v:2021:y:2021:i:5:id:289:p:99-113
    DOI: 10.18267/j.cebr.289
    as

    Download full text from publisher

    File URL: http://cebr.vse.cz/doi/10.18267/j.cebr.289.html
    Download Restriction: free of charge
    File URL: http://cebr.vse.cz/doi/10.18267/j.cebr.289.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.cebr.289?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. repec:kap:iaecre:v:17:y:2011:i:4:p:476-483 is not listed on IDEAS
    2. David J. Deming, 2017. "The Growing Importance of Social Skills in the Labor Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(4), pages 1593-1640.
    3. Milota Vetráková & Miloš Hitka & Marek Potkány & Silvia Lorincová & Lukáš Smerek, 2018. "Corporate Sustainability in the Process of Employee Recruitment through Social Networks in Conditions of Slovak Small and Medium Enterprises," Sustainability, MDPI, vol. 10(5), pages 1-17, May.
    4. Paul Matthews, 2007. "ICT assimilation and SME expansion," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(6), pages 817-827.
    5. Sajda Qureshil & Mehruz Kamal & Peter Wolcott, 2009. "Information Technology Interventions for Growth and Competitiveness in Micro-Enterprises," International Journal of Enterprise Information Systems (IJEIS), IGI Global, vol. 5(2), pages 71-95, April.
    6. Beck, Thorsten & Demirguc-Kunt, Asli, 2006. "Small and medium-size enterprises: Access to finance as a growth constraint," Journal of Banking & Finance, Elsevier, vol. 30(11), pages 2931-2943, November.
    7. Tomáš Ratinger & Vladislav Čadil & Sylvester Amoako Agyemang, 2020. "Are There Any Economic Impacts of Business R&D Support? The Case of the Czech Republic," Central European Business Review, Prague University of Economics and Business, vol. 2020(5), pages 45-62.
    8. Jaroslaw Ropega, 2011. "The Reasons and Symptoms of Failure in SME," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 17(4), pages 476-483, 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. Solarte Solarte, Claudia Magali & Benavides Pupiales, Luis Eduardo & Bolaños Delgado, Sandra Lucía & Rivera Vallejo, Gloria Alicia, 2023. "Revisión sistemática de literatura sobre estrategias implementadas por los micronegocios para su subsistencia," Revista Tendencias, Universidad de Narino, vol. 24(2), pages 231-261, July.

    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. Nathan Mwenda Mutwiri, 2021. "Covid-19 financial distancing for MSMEs in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(3), pages 357-362, April.
    2. Pedota, Mattia & Grilli, Luca & Piscitello, Lucia, 2023. "Technology adoption and upskilling in the wake of Industry 4.0," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    3. Gonzalo Maldonado-Guzmán & Sandra Yesenia Pinzón-Castro & Rubén Michael Rodríguez-González, 2020. "The Impact of Information and Communication Technology in Mexican SMEs Growth," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 10(2), pages 1-5.
    4. Hassan Faouzi, 2014. "Les NTIC et les stratégies de positionnement des entreprises : le cas des hébergeurs touristiques, Agadir, Maroc," Post-Print hal-02902469, HAL.
    5. Mushtaq, Rizwan & Gull, Ammar Ali & Usman, Muhammad, 2022. "ICT adoption, innovation, and SMEs’ access to finance," Telecommunications Policy, Elsevier, vol. 46(3).
    6. Cowling, Marc, 2010. "The role of loan guarantee schemes in alleviating credit rationing in the UK," Journal of Financial Stability, Elsevier, vol. 6(1), pages 36-44, April.
    7. Osei-Tutu, Francis & Weill, Laurent, 2023. "Individualism reduces borrower discouragement," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 370-385.
    8. Oznur Ozdamar & Eleftherios Giovanis & Sahizer Samuk, 2020. "State business relations and the dynamics of job flows in Egypt and Turkey," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(4), pages 519-558, December.
    9. Knack, Steve & Xu, Lixin Colin, 2017. "Unbundling institutions for external finance: Worldwide firm-level evidence," Journal of Corporate Finance, Elsevier, vol. 44(C), pages 215-232.
    10. Dimelis, Sophia & Giotopoulos, Ioannis & Louri, Helen, 2015. "Can firms grow without credit?: evidence from the Euro Area, 2005-2011: a quantile panel analysis," LSE Research Online Documents on Economics 61157, London School of Economics and Political Science, LSE Library.
    11. C. Kirabo Jackson & Shanette C. Porter & John Q. Easton & Alyssa Blanchard & Sebastián Kiguel, 2020. "School Effects on Socioemotional Development, School-Based Arrests, and Educational Attainment," American Economic Review: Insights, American Economic Association, vol. 2(4), pages 491-508, December.
    12. kemdong nicodeme TENEKEU, 2020. "Les déterminants de la pérennité des institutions de microfinance au Cameroun," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 11(1), pages 122-138, June.
    13. Fabian Kosse & Thomas Deckers & Pia Pinger & Hannah Schildberg-Hörisch & Armin Falk, 2020. "The Formation of Prosociality: Causal Evidence on the Role of Social Environment," Journal of Political Economy, University of Chicago Press, vol. 128(2), pages 434-467.
    14. Cristina Fernández & Roberta García & Paloma Lopez-Garcia & Benedicta Marzinotto & Roberta Serafini & Juuso Vanhala & Ladislav Wintr, 2017. "Firm growth in Europe: An overview based on the COMPNET labour module," BCL working papers 107, Central Bank of Luxembourg.
    15. Florentina Melnic & Daniel Juravle, 2020. "Governance And Access To Finance," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 25, pages 151-168, June.
    16. Böhm, Robert & Letmathe, Peter & Schinner, Matthias, 2023. "The monetary value of competencies: A novel method and case study in smart manufacturing," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    17. Howard Bodenhorn, 2016. "Two Centuries of Finance and Growth in the United States, 1790-1980," Working Papers id:11352, eSocialSciences.
    18. Gabrielova, Karina & Buchko, Aaron A., 2021. "Here comes Generation Z: Millennials as managers," Business Horizons, Elsevier, vol. 64(4), pages 489-499.
    19. Shusen Qi & Steven Ongena & Hua Cheng, 2022. "Working with women, do men get all the credit?," Small Business Economics, Springer, vol. 59(4), pages 1427-1447, December.
    20. Eva Hagsten & Patricia Kotnik, 2017. "ICT as facilitator of internationalisation in small- and medium-sized firms," Small Business Economics, Springer, vol. 48(2), pages 431-446, February.

    More about this item

    Keywords

    business intelligence; emerging economies; controlling; globalisation; MS Excel;
    All these keywords.

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M29 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Other

    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:prg:jnlcbr:v:2021:y:2021:i:5:id:289:p:99-113. 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: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    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.