Strategic Management from the Perspective of SMEs Operating in Service Sector

Abstract

Purpose: Providing high quality services is a basis for long-term competitiveness of small and medium-sized enterprises. Recognizing the success factors of transformation and strategic management is an issue that has been frequently addressed in the past two decades. The goal of this article is to evaluate the strategy of small and medium-sized enterprises offering services in tourism and catering. Methodology/Approach: The qualitative analysis was based on 107 completed interviews. Two hypotheses were formulated and an Independence Test was applied. Chi-square Test and Cross Table Analyiss were used which enable to examine the relationship between 2 non-metric variables. The two examined variables related to our Hypothesis 1 were ordinal, and 1 ordinal, 1 nominal in the case of Hypothesis 2. The significance level was p=0.05. Findings: The obtained results show weak relationship between the size of the business and the awareness of the strategy. No relationship can be detected between the size of the business and the evaluation of the key success factor Research Limitation/Implication: The research activity and obtaining research data from SMEs was obstacled by the pandemic situation caused by COVID-19. The research was limited by external circumstances, so the interviews with company representatives could be conducted on online platforms. Originality/Value of paper: The paper examines how successful the SMEs involved in the research are in communicating the values and goals of the company to their employees. It brings important findings in the field of stretegy management which leads to high quality services in the case of providers.