Empirical development taxonomy of micro, small and medium-sized enterprises in South Moravian Region

Abstract

This paper represents a pilot study examining entrepreneurial behavior patterns within the area of development of micro, small and medium-sized market active enterprises in South Moravian Region from the perspective of strategic management. The main aim of this article is to classify the enterprises by the character of development activities into relatively homogeneous groups and identify those activities that contribute to considerable differences between the individual groups. Empirical evidence is based on a quantitative survey in terms of a random choice of respondents obtained by means of an e-mail questionnaire. The major analytic procedure applied within this research comprises methods of Cluster Analysis and validation technique based on chi-square and G-square nonparametric tests for testing differences (independence) of variables between the clusters. By means of Cluster Analysis three relatively homogenous SME groups were identified. The first cluster, called “global”, (approximately 6% of the respondents) prevails in most of the strategic development aspects of the researched enterprises. Global SMEs rely on development activities in the area of product innovations and risk diversification into other activities. In terms of changes in functional strategies this involves primarily the area of new technology and human resources development, and the ability to benefit from participation in networks of cooperating organizations. The second cluster, called “transition”, (approximately 59% of the respondents) is developed mainly by means of investments in business specific knowledge, and/or in technical skills of their employees. They are more conservative in the area of product innovations and risk diversification into other activities, which is then reflected in a lower level of investments in technologies and marketing. In comparison with global enterprises the major difference lies in a much lower number of activities in the area of seeking cooperation with other enterprises. The third cluster, called “local”, (approximately 35% of the respondents) chooses the way of product innovations whose supply is mostly composed of standardized products and services, especially in local or regional markets. Local enterprises, when compared to the former clusters, are typical for a lower level of business cooperation, and in fact for absence of utilizing the support programs.