Abstract
The article aims to improve existing theories of business development and crisis management with a special emphasis on inner dynamics of crises in small and medium enterprises (S.M.E.s). For these purposes, combined perspectives of system dynamics, company life cycles, crisis management, resilience and business continuity management in S.M.E.s have been used. Based on data of about 554 crises from 183 companies collected in the Czech Republic, the most common crises types and their combinations have been identified using association rules mining method. Then, a simulation system dynamics model synthesizing the main findings and allowing scenario analysis to explain and avoid some of the crises in S.M.E.s has been developed for a case study of manufacturing company. Such a simulation model enriches the present knowledge and explains complex dynamics of crises in S.M.E.s in a novel way. When properly calibrated, this model could be used as a supporting tool for decision-making in manufacturing S.M.E.s.
Highlights
The growth of companies is a very frequent topic for discussion
The model structure development was grounded in an analysis of empirical data about 554 crises from 183 Czech companies where the main purpose was to identify co-occurrence of different types of crises and ways how managers were dealing with these crises
This analysis could be very helpful for the manager, e.g., to predict possible impacts of various possible managerial decisions when a certain type of crisis occurs, allowing to avoid causing further problems in the future
Summary
Governments, as well as shareholders and initial public offering (I.P.O.) markets are interested in fast growing companies and lack of growth is generally perceived as a problem In this context, each attempt to further explain and overcome obstacles to growth may be helpful, especially in relation to the recent global financial crisis and its impact on businesses. The model structure development was grounded in an analysis of empirical data about 554 crises from 183 Czech companies where the main purpose was to identify co-occurrence of different types of crises and ways how managers were dealing with these crises The use of such a model focused on manufacturing firms including its calibration is further demonstrated on a case study of real company and related scenario analysis. This analysis could be very helpful for the manager, e.g., to predict possible impacts of various possible managerial decisions when a certain type of crisis occurs, allowing to avoid causing further problems in the future
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