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The application of Kohonen networks for identification of leaders in the trade sector in Czechia

Author

Listed:
  • Jaromir Vrbka

    (Institute of Technology and Business in Ceske Budejovice, Czech Republic)

  • Elvira Nica

    (Bucharest Academy of Economic Studies, Romania)

  • Ivana Podhorska

    (University of Zilina, Slovakia)

Abstract

Research background: The trade sector is considered to be the power of economy, in developing countries in particular. With regard to the Czech Republic, this field of the national economy constitutes the second most significant employer and, at the same time, the second most significant contributor to GNP. Apart from traditional methods of business analyzing and identifying leaders, artificial neural networks are widely used. These networks have become more popular in the field of economy, although their potential has yet to be fully exploited. Purpose of the article: The aim of this article is to analyze the trade sector in the Czech Republic using Kohonen networks and to identify the leaders in this field. Methods: The data set consists of complete financial statements of 11,604 enterprises that engaged in trade activities in the Czech Republic in 2016. The data set is subjected to cluster analysis using Kohonen networks. Individual clusters are subjected to the analysis of absolute indicators and return on equity which, apart from other, shows a special attraction of individual clusters to potential investors. Average and absolute quantities of individual clusters are also analyzed, which means that the most successful clusters of enterprises in the trade sector are indicated. Findings & Value added: The results show that a relatively small group of enter-prises enormously influences the development of the trade sector, including the whole economy. The results of analyzing 319 enterprises showed that it is possible to predict the future development of the trade sector. Nevertheless, it is also evident that the trade sector did not go well in 2016, which means that investments of owners are minimal.

Suggested Citation

  • Jaromir Vrbka & Elvira Nica & Ivana Podhorska, 2019. "The application of Kohonen networks for identification of leaders in the trade sector in Czechia," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 14(4), pages 739-761, December.
    • Handle: RePEc:pes:ierequ:v:14:y:2019:i:4:p:739-761
    DOI: 10.24136/eq.2019.034
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    Citations

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    Cited by:

    1. Jakub Horak & Petr Suler & Jaroslav Kollmann & Jan Marecek, 2020. "Credit Absorption Capacity of Businesses in the Construction Sector of the Czech Republic—Analysis Based on the Difference in Values of EVA Entity and EVA Equity," Sustainability, MDPI, vol. 12(21), pages 1-16, October.
    2. Justyna Łapińska & Iwona Escher & Joanna Górka & Agata Sudolska & Paweł Brzustewicz, 2021. "Employees’ Trust in Artificial Intelligence in Companies: The Case of Energy and Chemical Industries in Poland," Energies, MDPI, vol. 14(7), pages 1-20, April.
    3. Katarina Valaskova & Pavol Durana & Peter Adamko & Jaroslav Jaros, 2020. "Financial Compass for Slovak Enterprises: Modeling Economic Stability of Agricultural Entities," JRFM, MDPI, vol. 13(5), pages 1-16, May.
    4. Jakub Horak & Tomas Krulicky & Zuzana Rowland & Veronika Machova, 2020. "Creating a Comprehensive Method for the Evaluation of a Company," Sustainability, MDPI, vol. 12(21), pages 1-23, November.
    5. David Vrtana & Anna Krizanova & Eva Skorvagova & Katarina Valaskova, 2020. "Exploring the Affective Level in Adolescents in Relation to Advertising with a Selected Emotional Appeal," Sustainability, MDPI, vol. 12(19), pages 1-16, October.

    More about this item

    Keywords

    trade sector; Kohonen networks; leaders in the field; cluster analysis; return on equity;
    All these keywords.

    JEL classification:

    • C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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