Use of the Value Chain in the Process of Generating a Sustainable Business Strategy on the Example of Manufacturing and Industrial Enterprises in the Czech Republic

Jarmila Straková,Ján Dobrovič,Petra Pártlová,Jan Váchal,Ismi Rajiani

doi:10.3390/su12041520

Jarmila Straková, Ján Dobrovič + Show 3 more

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https://doi.org/10.3390/su12041520

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Abstract

This paper presents a method of generating a business strategy using value chain analysis. There were 186 manufacturing and industrial enterprises from the Czech Republic. The analysis was carried out using mathematical–statistical methods (dimensional reduction, logit regression and its transformation in order to objectify the opinion level of the managers) and with a neural network in terms of validation of the results of the mathematical–statistical methods. The aim was to determine the significance of different parts of the value chain in terms of their impact on the profitability of an enterprise and to demonstrate its important role in the process of generating business strategy. The significance for the profitability of the enterprises was statistically proven in the area of scientific and technological development, input logistics and human resource management. These parts were identified by the authors as the golden triangle of manufacturing and industry. Purchasing and output logistics were identified as the parts with a negative impact to the profitability of the enterprises. Strong underestimation of scientific and technological development by the top managers of the manufacturing and industrial enterprises is seen as a very negative finding. Neural networks showed higher statistical sensitivity compared to the mathematical–statistical methods (dimensional reduction and logit regression). They defined the value sector chain with the following structure (ranked from the highest degree of positive impact on the profitability of the enterprise): human resource management, scientific and technological development, production, input logistics, purchasing, material management, output logistics, enterprise infrastructure, marketing and sales, service and other supporting services. In conclusion, it is stated that the sector value chain of manufacturing and industrial enterprises will be further decomposed into value chain models of specific industries of the production and industry, such as engineering and construction, intended for direct use in different business entities to generate their unique value chains and corporate strategies.

Highlights

The impact of a new paradigm related to the introduction of new information technologies, innovation, and digitization processes taking place in the internal environment of enterprises is increasingly reflected in business practice [1,2,3]
A similar situation arises in the educational field at universities, where the requirements of enterprises for knowledge and skills competences of university graduates in a number of areas, especially in the field of strategic management and decision making of companies, differ considerably from the content and form of teaching of courses related to business strategy
Using the method of dimensional reduction, a positive impact on the profitability of business entities was found for scientific and technological development and input logistics, and for human resource management to a lesser extent. These factors are considered to be dominant in terms of value-added creation. Another issue is related to their real use in business practice

Summary

Introduction

The impact of a new paradigm related to the introduction of new information technologies, innovation, and digitization processes taking place in the internal environment of enterprises is increasingly reflected in business practice [1,2,3]. A similar situation arises in the educational field at universities, where the requirements of enterprises for knowledge and skills competences of university graduates in a number of areas, especially in the field of strategic management and decision making of companies, differ considerably from the content and form of teaching of courses related to business strategy. These facts have become the main accelerator and motivation to start our research activities and write this paper. This paper focuses on one of the possible approaches to creating a business strategy, using a value chain, with the aim of contributing to the above-mentioned paradigm in business management

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