IDEAS home Printed from https://ideas.repec.org/a/ssi/jouesi/v10y2023i4p118-134.html
   My bibliography  Save this article

Innovation of the production process of engineering companies in relation to business portfolio

Author

Listed:
  • Milan Talíř

    (Brno University of Technology, Czech Republic)

  • Jarmila Straková

    (Institute of Technology and Business in České Budějovice, Czech Republic)

Abstract

The paper is aimed at the innovation process in the context of the business portfolio of micro-enterprises. This type of companies is typical of and prevalent in the southern region of the Czech Republic, and the presented conclusions have general validity. A newly developed method of assessing the innovative technological potential of enterprises called "Business technology assessment system" (BTAS), with the contribution of "Criteria analysis of systems". The research answers the question, what economic efficiency can innovations in the production process bring to SMEs dealing with custom manufacturing in the engineering sector. Technological backwardness including corporate infrastructure was proven. Companies compensate for this shortcoming by an increased focus on satisfying customer needs and a high degree of flexibility and innovation in production. From the point of view of production processes, there is a high degree of interconnectedness between individual operations and sub-processes. The business portfolio of most of these companies is disproportionately broad, and this is reflected in the negative findings in terms of the disproportionate number of methods and technologies that these companies possess, but do not fully utilize. Such behaviour of the companies can be explained by the absence of active creation and updating of business strategy. The economic evaluation of the innovative process (BTAS) proved that the very implementation of innovations did not lead to a major increase in the profit margin. The situation was different when evaluating the benefits of the digitization process, which brought an increase in sales and corporate margins. A completely new finding has been demonstrated, i.e., if a company has unused equipment which brings opportunity costs as well, it is possible to create space for innovation by removing it, and at the same time the sale of equipment can be a significant financial contributor to innovation.

Suggested Citation

  • Milan Talíř & Jarmila Straková, 2023. "Innovation of the production process of engineering companies in relation to business portfolio," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 10(4), pages 118-134, June.
  • Handle: RePEc:ssi:jouesi:v:10:y:2023:i:4:p:118-134
    DOI: 10.9770/jesi.2023.10.4(8)
    as

    Download full text from publisher

    File URL: https://jssidoi.org/jesi/uploads/articles/40/Talir_Innovation_of_the_production_process_of_engineering_companies_in_relation_to_business_portfolio.pdf
    Download Restriction: no

    File URL: https://jssidoi.org/jesi/article/1083
    Download Restriction: no

    File URL: https://libkey.io/10.9770/jesi.2023.10.4(8)?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. Ghezzi, Antonio & Cavallo, Angelo, 2020. "Agile Business Model Innovation in Digital Entrepreneurship: Lean Startup Approaches," Journal of Business Research, Elsevier, vol. 110(C), pages 519-537.
    Full references (including those not matched with items on IDEAS)

    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. Han, Wucheng & Li, Xiaoyu & Zhu, Weijie & Lu, Ruoyu & Zu, Xu, 2024. "Knowledge digitization and high-tech firm performance: A moderated mediation model incorporating business model innovation and entrepreneurial orientation," Technology in Society, Elsevier, vol. 77(C).
    2. Granato, Giulia & Fischer, Arnout R.H. & van Trijp, Hans C.M., 2022. "“Misalignments between users and designers as source of inspiration: A novel hybrid method for physical new product development”," Technovation, Elsevier, vol. 111(C).
    3. Bhatti, Sabeen Hussain & Santoro, Gabriele & Khan, Jabran & Rizzato, Fabio, 2021. "Antecedents and consequences of business model innovation in the IT industry," Journal of Business Research, Elsevier, vol. 123(C), pages 389-400.
    4. Lehrer, Mark & Almor, Tamar, 2022. "Startups internationalizing in quest of a business model: The global prospecting of process niche firms," Journal of International Management, Elsevier, vol. 28(1).
    5. Hua Zhang & Qiwang Zhang, 2023. "How Does Digital Transformation Facilitate Enterprise Total Factor Productivity? The Multiple Mediators of Supplier Concentration and Customer Concentration," Sustainability, MDPI, vol. 15(3), pages 1-18, January.
    6. Dr. Ravinder Rena, 2023. "An Overview on the Role of Innovation in Making Sustainable and Future-Ready Businesses," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 14(1), pages 11-18, January.
    7. Nien-Ping Chen & Kao-Yi Shen & Chiung-Ju Liang, 2021. "Hybrid Decision Model for Evaluating Blockchain Business Strategy: A Bank’s Perspective," Sustainability, MDPI, vol. 13(11), pages 1-22, May.
    8. Khan Muhammad Asif, 2022. "Universities’ Involvement in Promoting Digital Entrepreneurship and Future Digital Entrepreneurship Opportunities through Digital Technologies in Indonesia," Journal of Intercultural Management, Sciendo, vol. 14(4), pages 39-59, December.
    9. Ghezzi, Antonio, 2020. "How Entrepreneurs make sense of Lean Startup Approaches: Business Models as cognitive lenses to generate fast and frugal Heuristics," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    10. Mika Gabrielsson & Markus Raatikainen & Saara Julkunen, 2022. "Accelerated Internationalization Among Inexperienced Digital Entrepreneurs: Toward a Holistic Entrepreneurial Decision-Making Model," Management International Review, Springer, vol. 62(2), pages 137-168, April.
    11. Aristides Papathomas & George Konteos, 2024. "Financial institutions digital transformation: the stages of the journey and business metrics to follow," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(2), pages 590-606, June.
    12. Elisa Martina Martinelli & Annalisa Tunisini, 2024. "Digitalization in Italian SMEs: the transformation of marketing channels," Italian Journal of Marketing, Springer, vol. 2024(4), pages 445-474, December.
    13. Angelo Cavallo & Antonio Ghezzi & Cristina Rossi-Lamastra, 2021. "Small-medium enterprises and innovative startups in entrepreneurial ecosystems: exploring an under-remarked relation," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1843-1866, December.
    14. Xiang, Guopeng & Peng, Mixiang & Tang, Fei & Liu, Yuan, 2024. "Unpacking the impact of entrepreneurial learning on business model innovation in internet startups: Mediating roles of digital capabilities," Technology in Society, Elsevier, vol. 77(C).
    15. Yunis, Manal & Mirza, Nawazish & Safi, Adnan & Umar, Muhammad, 2024. "Impact of audit quality and digital transformation on innovation efficiency: Role of financial risk-taking," Global Finance Journal, Elsevier, vol. 62(C).
    16. Léo-Paul Dana & Edoardo Crocco & Francesca Culasso & Elisa Giacosa, 2024. "Mapping the field of digital entrepreneurship: a topic modeling approach," International Entrepreneurship and Management Journal, Springer, vol. 20(2), pages 1011-1045, June.
    17. Silvia Sanasi, 2023. "Entrepreneurial experimentation in business model dynamics: Current understanding and future opportunities," International Entrepreneurship and Management Journal, Springer, vol. 19(2), pages 805-836, June.
    18. Khorshed Alam & Mohammad Afshar Ali & Michael Erdiaw-Kwasie & Md Shahiduzzaman & Eswaran Velayutham & Peter A. Murray & Retha Wiesner, 2022. "Impact of ICTs on Innovation and Performance of Firms: Do Start-ups, Regional Proximity and Skills Matter?," Sustainability, MDPI, vol. 14(10), pages 1-18, May.
    19. Kateb, Sanaz & Ruehle, Rebecca C. & Kroon, David P. & van Burg, Elco & Huber, Max, 2022. "Innovating under pressure: Adopting digital technologies in social care organizations during the COVID-19 crisis," Technovation, Elsevier, vol. 115(C).
    20. Daniel Metz, 2021. "Role of Organizational Diagnosis in Improving Employee- Centred Strategies in the IT&C Sector," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 24(82), pages 47-55, December,.

    More about this item

    Keywords

    strategic management; innovation; industry production process; BTAS;
    All these keywords.

    JEL classification:

    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

    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:10:y:2023:i:4:p:118-134. 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.