IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i4p1520-d322097.html
   My bibliography  Save this article

Use of the Value Chain in the Process of Generating a Sustainable Business Strategy on the Example of Manufacturing and Industrial Enterprises in the Czech Republic

Author

Listed:
  • Jarmila Straková

    (Faculty of Corporate Strategy, Department of Management, Institute of Technology and Business in České Budějovice, Okružní 517/10, 370 01 České Budějovice, Czech Republic)

  • Ismi Rajiani

    (Faculty of Economics & Business, Department of Management, Universitas Muhammadiyah Gresik, Jl. Sumatra 101 Gresik, Jawa Timur 61121, Indonesia)

  • Petra Pártlová

    (Faculty of Corporate Strategy, Department of Management, Institute of Technology and Business in České Budějovice, Okružní 517/10, 370 01 České Budějovice, Czech Republic)

  • Jan Váchal

    (Faculty of Corporate Strategy, Department of Management, Institute of Technology and Business in České Budějovice, Okružní 517/10, 370 01 České Budějovice, Czech Republic)

  • Ján Dobrovič

    (Faculty of Corporate Strategy, Department of Management, Institute of Technology and Business in České Budějovice, Okružní 517/10, 370 01 České Budějovice, Czech Republic)

Abstract

This paper presents a method of generating a business strategy using value chain analysis. There were 186 manufacturing and industrial enterprises from the Czech Republic. The analysis was carried out using mathematical–statistical methods (dimensional reduction, logit regression and its transformation in order to objectify the opinion level of the managers) and with a neural network in terms of validation of the results of the mathematical–statistical methods. The aim was to determine the significance of different parts of the value chain in terms of their impact on the profitability of an enterprise and to demonstrate its important role in the process of generating business strategy. The significance for the profitability of the enterprises was statistically proven in the area of scientific and technological development, input logistics and human resource management. These parts were identified by the authors as the golden triangle of manufacturing and industry. Purchasing and output logistics were identified as the parts with a negative impact to the profitability of the enterprises. Strong underestimation of scientific and technological development by the top managers of the manufacturing and industrial enterprises is seen as a very negative finding. Neural networks showed higher statistical sensitivity compared to the mathematical–statistical methods (dimensional reduction and logit regression). They defined the value sector chain with the following structure (ranked from the highest degree of positive impact on the profitability of the enterprise): human resource management, scientific and technological development, production, input logistics, purchasing, material management, output logistics, enterprise infrastructure, marketing and sales, service and other supporting services. In conclusion, it is stated that the sector value chain of manufacturing and industrial enterprises will be further decomposed into value chain models of specific industries of the production and industry, such as engineering and construction, intended for direct use in different business entities to generate their unique value chains and corporate strategies.

Suggested Citation

  • Jarmila Straková & Ismi Rajiani & Petra Pártlová & Jan Váchal & Ján Dobrovič, 2020. "Use of the Value Chain in the Process of Generating a Sustainable Business Strategy on the Example of Manufacturing and Industrial Enterprises in the Czech Republic," Sustainability, MDPI, vol. 12(4), pages 1-15, February.
  • Handle: RePEc:gam:jsusta:v:12:y:2020:i:4:p:1520-:d:322097
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/4/1520/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/12/4/1520/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Margarida Rodrigues & Mário Franco, 2019. "The Corporate Sustainability Strategy in Organisations: A Systematic Review and Future Directions," Sustainability, MDPI, vol. 11(22), pages 1-22, November.
    2. Francesca Chiaromonte & R. Cook, 2002. "Sufficient Dimension Reduction and Graphics in Regression," Annals of the Institute of Statistical Mathematics, Springer;The Institute of Statistical Mathematics, vol. 54(4), pages 768-795, December.
    3. Judit Nagy & Judit Oláh & Edina Erdei & Domicián Máté & József Popp, 2018. "The Role and Impact of Industry 4.0 and the Internet of Things on the Business Strategy of the Value Chain—The Case of Hungary," Sustainability, MDPI, vol. 10(10), pages 1-25, September.
    4. Anna Adamik & Michał Nowicki, 2019. "Pathologies and Paradoxes of Co-Creation: A Contribution to the Discussion about Corporate Social Responsibility in Building a Competitive Advantage in the Age of Industry 4.0," Sustainability, MDPI, vol. 11(18), pages 1-38, September.
    5. Koc, T. & Bozdag, E., 2017. "Measuring the degree of novelty of innovation based on Porter's value chain approach," European Journal of Operational Research, Elsevier, vol. 257(2), pages 559-567.
    6. Chenhall, Robert H., 2005. "Integrative strategic performance measurement systems, strategic alignment of manufacturing, learning and strategic outcomes: an exploratory study," Accounting, Organizations and Society, Elsevier, vol. 30(5), pages 395-422, July.
    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. Jarmila Straková & Yaroslava Kostiuk, 2023. "Importance of Business Process Quality for Creating Added Value and Raising Reputation of Companies in Low-Carbon Economy," Energies, MDPI, vol. 16(17), pages 1-18, September.
    2. Tukiran, Martinus & Sunaryo, Widodo & Ghufron, Nurul & Rusli, Zil Irvan & Dalilah, Elih, 2022. "Public sector management: indispensable facilitating factors in sculpting organizational ambidexterity," MPRA Paper 113982, University Library of Munich, Germany, revised 21 Mar 2022.
    3. Antonín Korauš & Miroslav Gombár & Alena Vagaská & Stanislav Šišulák & Filip Černák, 2021. "Secondary Energy Sources and Their Optimization in the Context of the Tax Gap on Petrol and Diesel," Energies, MDPI, vol. 14(14), pages 1-22, July.
    4. Amare Tesfaw & Feyera Senbeta & Dawit Alemu & Ermias Teferi, 2021. "Value Chain Analysis of Eucalyptus Wood Products in the Blue Nile Highlands of Northwestern Ethiopia," Sustainability, MDPI, vol. 13(22), pages 1-25, November.
    5. Helena Fidlerová & Augustín Stareček & Natália Vraňaková & Cagri Bulut & Michael Keaney, 2022. "Sustainable Entrepreneurship for Business Opportunity Recognition: Analysis of an Awareness Questionnaire among Organisations," Energies, MDPI, vol. 15(3), pages 1-15, January.
    6. Jarmila Straková & Antonín Korauš & Jan Váchal & František Pollák & Filip Černák & Milan Talíř & Jaroslav Kollmann, 2021. "Sustainable Development Economics of Enterprises in the Services Sector Based on Effective Management of Value Streams," Sustainability, MDPI, vol. 13(16), pages 1-15, August.

    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. Jaroslav Vrchota & Petr Řehoř & Monika Maříková & Martin Pech, 2020. "Critical Success Factors of the Project Management in Relation to Industry 4.0 for Sustainability of Projects," Sustainability, MDPI, vol. 13(1), pages 1-19, December.
    2. Paweł Kłobukowski & Jacek Pasieczny, 2020. "Impact of Resources on the Development of Local Entrepreneurship in Industry 4.0," Sustainability, MDPI, vol. 12(24), pages 1-25, December.
    3. Cidália Oliveira & Margarida Rodrigues & Rui Silva & Galvão Meirinhos & Mário Franco, 2022. "BSC’s Perspectives Ranking towards Organizational Performance: An Empirical Study Performed with Portuguese Exporters," Sustainability, MDPI, vol. 14(23), pages 1-22, November.
    4. 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.
    5. Heira Georgina Valdez-Bocanegra & Gonzalo Maldonado-Guzmán & Carmen Castrejón-Mata, 2020. "The Entrepreneurial Orientation and its Impact on Competitiveness and Growth: Empirical Evidence in the State of Aguascalientes in Mexico," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 10(3), pages 1-6.
    6. Hall, Matthew, 2010. "Accounting information and managerial work," LSE Research Online Documents on Economics 28539, London School of Economics and Political Science, LSE Library.
    7. Yin, Xiangrong & Li, Bing & Cook, R. Dennis, 2008. "Successive direction extraction for estimating the central subspace in a multiple-index regression," Journal of Multivariate Analysis, Elsevier, vol. 99(8), pages 1733-1757, September.
    8. Tholakele Nkomo & Mlisa Jasper Ndlovu, 2023. "The Effects of Innovation on the Entrepreneurial Performance of Family Businesses with Special Reference to Nyaradzo Group, Zimbabwe," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(9), pages 1366-1384, September.
    9. Nurisyal Muhamad & Sofiah Md Auzair & Amizawati Mohd Amir & Md Daud Ismail, 2016. "Measuring Sustainability Performance Measurement System," EuroEconomica, Danubius University of Galati, issue 3(12), pages 182-199, JUNE.
    10. Jan Bouwens & Laurence Van Lent, 2007. "Assessing the Performance of Business Unit Managers," Journal of Accounting Research, Wiley Blackwell, vol. 45(4), pages 667-697, September.
    11. Carlos Moreno Miranda & Ra?l Moreno & Pablo Moreno, 2020. "Protected-Denomination-of-Origin Cocoa Bean: Chain governance and Sustainability Performance," Economia agro-alimentare, FrancoAngeli Editore, vol. 22(1), pages 1-24.
    12. repec:dau:papers:123456789/10751 is not listed on IDEAS
    13. Andrea Katona & Zoltán Birkner & Erzsébet Péter, 2023. "Examining Digital Transformation Trends in Austrian and Hungarian Companies," Sustainability, MDPI, vol. 15(15), pages 1-22, August.
    14. Weng, Jiaying, 2022. "Fourier transform sparse inverse regression estimators for sufficient variable selection," Computational Statistics & Data Analysis, Elsevier, vol. 168(C).
    15. Joaquin Sanchez-Planelles & Marival Segarra-Oña & Angel Peiro-Signes, 2020. "Building a Theoretical Framework for Corporate Sustainability," Sustainability, MDPI, vol. 13(1), pages 1-21, December.
    16. Robin Hogrefe & Sabine Bohnet-Joschko, 2023. "The Social Dimension of Corporate Sustainability: Review of an Evolving Research Field," Sustainability, MDPI, vol. 15(4), pages 1-22, February.
    17. Thi Cam Tu Luong & Ann Jorissen & Ine Paeleman, 2019. "Performance Measurement for Sustainability: Does Firm Ownership Matter," Sustainability, MDPI, vol. 11(16), pages 1-35, August.
    18. Said Yousef Dwikat & Darwina Arshad & Mohd Noor Mohd Shariff, 2023. "Effect of Competent Human Capital, Strategic Flexibility and Turbulent Environment on Sustainable Performance of SMEs in Manufacturing Industries in Palestine," Sustainability, MDPI, vol. 15(6), pages 1-29, March.
    19. Noorbaloochi, Siamak & Nelson, David, 2008. "Conditionally specified models and dimension reduction in the exponential families," Journal of Multivariate Analysis, Elsevier, vol. 99(8), pages 1574-1589, September.
    20. Michaela Kotkova Striteska & David Zapletal, 2020. "The Role of Corporate Culture in Performance Measurement and Management Systems," IJFS, MDPI, vol. 8(4), pages 1-12, November.
    21. Hofmann, Thorsten, 2011. "Balanced Scorecard: Theoretische Konzeption und Anwendung in der Praxis," Research Papers on Marketing Strategy 4/2011, Julius-Maximilians-Universität Würzburg, Lehrstuhl für BWL und Marketing.

    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:gam:jsusta:v:12:y:2020:i:4:p:1520-:d:322097. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.