Increase Business Performance Research Articles

Efficiency of small business: the case of Nigeria

The concept of entrepreneurial orientation (EO) has been widely discussed through previous studies in entrepreneurship, so it can be considered as one of the main topics in this field, and the most commonly used measure of entrepreneurial behaviour. The main objectives of the study were to determine the effect of entrepreneurial orientation on small and medium sized enterprises and also to examine the effect of innovative performance on EO. The study population refers to selected SMEs that were registered with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) in Ogun State, Nigeria. The primary data was generated through the field survey using structured questionnaire as a major research instrument. Taro Yamani scientific formula was adopted to determine the sample size. Correlation statistical analytical, Pearson Product Moment correlation Coefficient method and content validity method was applied. The study used Analysis of variance (ANOVA), correlation efficiency, and regression analysis for this study. The research found that there is a significant effect of entrepreneurial orientation on small and medium sized enterprises performance in Nigeria. Moreover, the results of the study indicated that EO affects innovative performance. The study recommends that small and medium sized enterprises should embrace the entrepreneurial orientation dimensions of autonomy, pro-activeness, risk taking, competitive aggressiveness and innovativeness to increase business performance and SMEs operators should adopt autonomy by encouraging employees to be autonomous and be free to take initiative for the best interest of the organization and use periodic appraisal to monitor them.

How to stay competitive: An innovative concept to assess the business competitiveness using online restaurant reviews

Nowadays customers would make decisions by reading online reviews and comparing differences in restaurants before visiting. Therefore how restaurants take advantage from such information is important to attract customers and stay competitive. Many researchers believe that increasing business performance could improve competitiveness. However, with changing customer requirements and business environment, it is challenging to understand which attributes matter the most to customers and how to improve considering competitors. Therefore this study proposed assessing restaurant competitiveness using online reviews. After crawling 38,479 online reviews employing Python, deep learning-based BERT is developed to measure attribute performance and understand the competitiveness through McKinsey Matrix. Then, the competitiveness was analyzed from a temporal dynamic view to present how attributes are changing importance. Notably, the asymmetric effects between attribute performance and satisfaction were considered. Results demonstrated encouraging accuracy in measuring restaurant competitiveness and explained how asymmetric McKinsey Matrix could help formulate efficient competitiveness enhancement strategies.

Program for Improving Service Quality and Promotion at the "Ridhu Bathi" Fashion Business

Purpose ­ This activity was carried out in the "Rindu Bathi" fashion business sector located in Yogyakarta. This activity program aims to increase partners' insight and skills in the field of marketing, especially improving service quality and developing promotional programs so that it is hoped that they can improve business performance. The programs implemented include creating product management and customer service standards, developing form to record the customer’s data and creating business cards as promotional tool. Methods - Activity methods include: (1). observing partner business locations and conducting interviews with business owners, (2). designing programs to improve services and promotions, and (3). program implementation Result and discussions - The result of this activity is the preparation of service standards which can be used as guidelines for product management and also as a basis for salespeople in providing services to consumers with the hope of improving service quality. Another result is the preparation of a questionnaire instrument that can be used by partners to measure consumer satisfaction and evaluate feedback from consumers. Effort to increase brand image is carried out by developing promotional programs in the form of creating business cards. All of these activities provide positive benefits for partners and are expected to be implemented well so that they can improve partner business performance Conclusion - Improving service quality and promotions are a number of important activities carried out by partners in order to encourage increased business performance so that the targets that have been set can be achieved. For this reason, partners need to continuously evaluate the activities that have been implemented and actively innovate, especially in marketing.

Effects of knowledge transformation and social capital on business performance

PurposeThis article delves into the antecedents of business performance. The main aim of this study is to analyze the effect of knowledge transformation on business performance in firms in the tourism industry and how cognitive and structural social capital heterogeneously moderate this relationship.Design/methodology/approachThe empirical study was conducted on a sample of 300 firms from the tourism industry in Arequipa-Perú. The analysis was performed by means of partial least squares structural equation modeling, using the Smart PLS software.FindingsOur findings show that knowledge transformation is key factor for increasing business performance. The results also highlight the significance of interorganizational relationships in this effect and the importance of analyzing each dimension of social capital separately. Thus, it is observed that cognitive social capital enhances the relationship between knowledge transformation and business performance, while (Sari and Indriani, 2023) structural social capital hinders it.Practical implicationsThe findings assist practitioners in developing a shared culture, values and goals with their contacts to improve business performance. Furthermore, firms should establish bridging ties with external agents to avoid be stuck in excessively dense networks. Relationships with institutions can act as a bridging agent.Originality/valueThis paper analyses the unresolved question of how knowledge transformation affects the business performance of companies in the tourism sector as well as how different dimensions of social capital influence in this relationship. Addressing these two critical, but as yet unresolved questions, this study draws on absorptive capacity and social capital theories as an overarching framework to present a conceptual model that integrates both theories in order to analyze the effect of knowledge transformation on business performance in tourism firms and the role of structural and cognitive capital on this relationship.

Digitalization of Marketing, Finance and Inventory Management in MSMEs “Sriti Gamplong”

This community service activity is carried out by the MSMEs "Sriti Gamplong" which produces various handicrafts. The aim of this activity is to optimize marketing activities by utilizing digital technology such as: social media and marketplaces. It is hoped that this will increase consumer buying interest. Apart from that, technology-based ways of managing finances and inventory were also introduced. The results of the activity show that partners increasingly understand the importance of digitalization to support increased business performance. Apart from that, marketing activities are becoming more effective, financial and inventory management is becoming more controlled.

Impact of Dynamic Capabilities on Business Performance of SMEs during an Economic Crisis with reference to Western Province

The current economic crisis which is experiencing has a significant impact on the development and performance of most SMEs, making their existence even more susceptible. In the face of the current economic crisis, Dynamic capabilities (DCs) can be utilized as a survival mechanism to help organizations to increase the value of their businesses, get competitive advantages, and increase business performance in a changing business environment. Therefore, the purpose of this paper is to analyze the impact of three dimensions of DCs which are sensing, seizing, and reconfiguring on the business performance of SMEs during this economic crisis. In addition, this study investigates how DCs could impact business performance through Information technology (IT) adoption as a moderator. The quantitative approach is adopted, where a cross sectional survey was utilized to collect primary data from SMEs. Findings of the study based on a sample of 380 SMEs in western province and stratified random sampling method was utilized to select participants. Structural Equation Modeling (SEM) was used to analyze data by using Smart PLS 4 software. The results revealed that only sensing and reconfiguring capabilities have a significant impact on SMEs’ performance and IT adoption moderates the relationship between DCs and business performance during the economic crisis. Therefore, this study provides a great effort to quantitatively investigate the impact of three procedures of DCs and the moderate effect of IT adoption during the economic crisis. Furthermore, it conveys a better understanding of how SMEs could deploy their DCs to ensure higher levels of performance in periods of crisis. The results of this research will pave a path for them to successfully take effective strategic decision on the SMEs. Keywords: Business Performance, Dynamic Capabilities, Economic Crisis, and SME.

Relationship between entrepreneurial orientation, innovative co-branding partnership, and business performance

PURPOSE: This study aimed to determine the relationship between entrepreneurial orientation (EO), innovative co-branding partnership, and business performance. EO was analyzed through five dimensions: innovativeness, proactiveness, risk-taking, competitive aggressiveness, and autonomy. METHODOLOGY: As part of the first phase of brand management research, the quantitative survey was conducted in June 2023 among managers of companies operating in Poland using an online questionnaire. 280 responses were obtained, of which 266 questionnaires were qualified for further calculations. Incomplete questionnaires were eliminated. Hypotheses were formulated regarding the positive impact of the five dimensions of EO (innovation, proactivity, risk-taking, competitive aggressiveness, and autonomy) on business performance and innovative co-branding partnership, and the positive impact of innovative co-branding partnership on business performance. Structural equation modeling using partial least squares (PLS-SEM) was applied to support the conceptual framework and proposed hypotheses. The calculations were performed in Smart PLS version 4.0.9.5. FINDINGS: The results indicate that three EO dimensions (innovativeness, proactiveness, and competitive aggressiveness) influence business performance. There was no effect of risk-taking and autonomy on business performance. In addition, three EO dimensions (innovativeness, competitive aggressiveness, and autonomy) influence innovative co-branding partnership. No effect of risk-taking and proactivity was found on innovative co-branding partnership. This means that two EO dimensions (innovativeness and competitive aggressiveness) positively influence innovative co-branding partnership and business performance. Furthermore, innovative co-branding partnership was proven to influence business performance. IMPLICATIONS for theory and practice: The results of the study point to theoretical implications for further exploration of entrepreneurial orientation and its dimensions. The practical implications relate to recommendations for managers. Managers should make efforts to increase innovation, market activity, and competitiveness of the market offer. It is necessary to monitor the actions taken in the context of their impact on selected market, consumer, product, and brand performance. In addition, managers should analyze the possibilities of undertaking cooperation of this nature to increase business performance. ORIGINALITY AND VALUE: This study provides a better understanding of the impact of entrepreneurial orientation on business performance using innovative co-branding. Compared to previous studies, it has an advantage in research by introducing the issue of innovative co-branding, which can be used for the development of new business activities. In addition, this study focuses on several areas of business performance, including product, brand, consumer, and financial performance.

The Influence of Dynamic Capabilities, Entrepreneurial Orientation, and Quality of Strategy on Increasing Business Performance (Empirical Study on Batik MSMEs in Semarang City)

This study aims to examine and analyze the effect of dynamic capabilities, entrepreneurial orientation, and strategic quality on improving business performance (Empirical Study on Batik SMEs in Semarang City). The 3,256 MSME actors are the population. The 97 respondents selected were batik MSME actors who were active for a period of 5 years. The dynamic capability variable partially has a positive and significant effect on business performance. This is evidenced by the value of the regression coefficient value of 0.231 (positive) with a significance value of 0.000 <0.05, then H1 is accepted. The entrepreneurial orientation variable partially has a positive and significant effect on business performance. This is evidenced by the regression coefficient value of 0.345 (positive) with a significance value of 0.000 <0.05, then H2 is accepted. The strategic quality variable partially has a positive and significant effect on business performance. This is evidenced by the value of the regression coefficient of 0.179 (positive) with a significance value of 0.014 <0.05, then H3 is accepted. The variables of dynamic capability, entrepreneurial orientation and strategic quality simultaneously affect business performance. This is evidenced by the calculated F value of 14.328 > F table of 3.09 and a significance value (Sig.) 0.000 <0.05, then H4 is accepted.

THE INFLUENCE OF INNOVATION CAPABILITY AND HUMAN CAPITAL TO THE BUSINESS PERFORMANCE OF LEILEM FURNITURE SME’S UNITS

Business Performance is one important characteristic that really exhibit the toughness from all business players in the market, especially from business units under SMEs system. Innovation Capability and Human Capital are two essential factors for establishing, maintaining and increasing Business Performance from any company or business unit. This study aims to figure out the influence of Innovation Capability and Human Capital toward the Business Performance of Leilem Furniture SME’s Units. Overall population in this research is Leilem Furniture SME’s Units City and the chosen sample is 30 respondents. Data analysis uses multiple linear regressions analysis method. This research result proves that Innovation Capability and Human Capital simultaneously and partially influence the Business Performance of Leilem Furniture SME’s Units. Owners and management from each one Leilem Furniture SME’s Units have to preserve and boost Innovation Capability and Human Capital in every business unit and deliberate other factors that influence the Business Performance of Leilem Furniture SME’s Units. Keywords: innovation capability, human capital, business performance

Influence of absorptive capacity and emotion regulation on business performance through the mediating role of knowledge management

This study aims to explore the impact of absorptive capacity, emotion regulation, and knowledge management on performance, in Vietnam. The qualitative method is based on an overview of previous studies, the research team builds the first scale. For the quantitative research, data was collected using the convenience sampling method from a total of 536 Small and Medium Enterprises in the Mekong Delta. Owners, directors, and managers were targeted to be interviewed. The methods of exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and structural equation modeling (SEM) are used to analyze the data. The findings revealed that the quality of the supervisor-employee relationship is a crucial factor in enhancing business performance. Specifically, the study found that absorptive capacity and emotion regulation have a positive influence on performance through the mediating role of knowledge management. The study suggests that enhancing absorptive capacity and emotion regulation in the enterprise and promoting the role of knowledge management can contribute to increasing business performance. This has great implications for firms looking to remain competitive in the market. By investing in these areas, firms can ensure that they are utilizing their resources effectively and efficiently to drive growth and success.

Internal factors of entrepreneurial and business performance of small and medium enterprises (SMEs) in East Java, Indonesia

The analysis conducted in this empirical study is the direct and indirect impact of internal entrepreneurial factors on the performance of small and medium enterprises. These factors were identified from previous studies from various countries, such as entrepreneurial-innovative work behavior, entrepreneurial leadership, entrepreneurial self-efficacy, and entrepreneurial motivation, by taking the research object of small-medium enterprise owners in Java. East, Indonesia. Descriptive statistics and structural equation models were used to analyze the research data. Samples were taken with uncontrolled quota sampling techniques. The research data was collected by distributing questionnaires online with the Google form application and offline. The total respondents were 575 small-medium enterprise owners. The test results showed that internal factors such as entrepreneurial self-efficacy, motivation, and leadership could increase business performance significantly.In contrast, entrepreneurial-innovative work behavior cannot significantly increase business performance. Other test results showed that: 1) entrepreneurial self-efficacy significantly improved entrepreneurial motivation; 2) entrepreneurial leadership significantly improved innovative entrepreneurial behavior; 3) entrepreneurial motivation partially mediated the influence of entrepreneurial self-efficacy on business performance; 4) innovative entrepreneurial behavior did not mediate the influence of entrepreneurial leadership on business performance. The contribution of the results of this study provides additional empirical studies on the role of entrepreneurial leadership, which significantly increases innovative entrepreneurial behavior. There is a lot of potential to develop business existence through entrepreneurial leadership through innovative behavior in entrepreneurship. Another contribution of this study is that entrepreneurial self-efficacy is a dominant predictor of business performance in SMEs and significantly increases entrepreneurial motivation. These findings reveal the importance of self-efficacy for SMEs because high self-efficacy for business actors is expected to increase entrepreneurial self-efficacy and teamwork motivation in helping to achieve business performance.

Investigation of the role of individual creativity of employees in the relationship of learning organization and business performance

This study aims to examine the role of individual creativity of employees in the relationship between the learning organization and business performance. Quantitative patterned research methods were used in the study. A survey method was used to collect first-hand data. The research sample consists of a group of 301 employees operating in various sectors and working in different positions in the province of Istanbul, Turkey. The questionnaire consists of appropriate scales to measure learning organization characteristics, individual creativity and business performance. Data analysis was carried out using statistical methods and regression analysis via SPSS 2.0 statistical program. Findings show that learning organization characteristics positively affect the individual creativity role of employees. In addition, it has been revealed that the individual creativity level of the employees has a positive relationship with the business performance. The mediating effect of the individual creativity variable in the relationship between the learning organization and the job performance has also been found. These findings highlight that the learning organization is an effective strategy in increasing business performance and that the individual creativity of employees is a critical factor in this process.

THE EFFECT OF ENTREPRENEURIAL ORIENTATION AND MARKET ORIENTATION ON JAKARTA’S CULINARY BUSINESS PERFORMANCE

Entrepreneurial and market orientation have an essential role in encouraging increased business performance. Entrepreneurial orientation is the business's strategic orientation to perform and decide to strengthen its competitive position. Market orientation is a strategy and approach to respond to the market to meet customer needs. The purpose of this study was to determine the effect of entrepreneurial orientation. Entrepreneurial orientation consists of 5 dimensions: risk-taking, innovativeness, proactiveness, competitive aggressiveness, and autonomy, and the effect of market orientation on the performance of culinary businesses in Jakarta. This study used a sample of 100 culinary business owners in Jakarta who were selected by purposive sampling. The PLS-SEM method is used to analyze data in this study. According to study's research results, entrepreneurial and market orientation have a positive impact on the performance of Jakarta's culinary businesses.

Unleashing corporate potential: the interplay of intellectual capital, knowledge management, and environmental compliance in enhancing innovation and performance

PurposeThis paper aims to explore how the three components of intellectual capital (IC) (human, structural and relational) are related to corporate innovation and how effective knowledge management can improve business performance, innovation and environmental compliance. Additionally, the study investigates the influence of environmental compliance on overall business performance.Design/methodology/approachThe organizational resource-based view was used to develop a theoretical model and accompanying hypotheses. A survey design approach was used to collect data and evaluate the model. The predicted relationships were tested by structural equation modeling using data acquired from members of management teams in the Vietnamese manufacturing sector.FindingsThe three components of IC have significant positive effects on business performance. In addition, corporate innovation, knowledge management success (KMS) and environmental compliance all significantly increase business performance. Moreover, KMS indirectly enhances business performance through innovation and environmental compliance.Research limitations/implicationsThis study provides useful insights into knowledge management, innovation and environmental compliance for administrators, practitioners and scholars. The results support practical advice for how firms can integrate KMS strategies into their operations, improve environmental compliance and increase business success.Originality/valueThe links between IC, knowledge management, innovation and environmental compliance are of ongoing interest to organizational scholars. However, empirical research on the relationships of these factors with business performance has been limited. This study investigates these links and offers factual evidence for them.

Impact of Digital Technology Capabilities on Operational Performance of the Media Industry: A Systematic Review

Purpose: The media sector comprises diverse modes of communication, such as print, broadcast, and digital platforms. The emergence of digital media has resulted in substantial changes, posed challenges to conventional media platforms, and presented novel prospects. Notwithstanding, the media sector encounters impediments such as copyright infringement apprehensions and the imperative to generate revenue from digital material. In addition, the industry has been disrupted by technological advancements and competition from digital behemoths such as Google and Facebook. The utilization of digital technology capability and digital innovation has become essential in augmenting operational performance. The significance of digital innovation in the media industry is increasingly being acknowledged. However, there is a dearth of literature concerning the impact of digital tech on performance in this sector.
 Methodology: The present study endeavors to bridge the existing research lacuna by undertaking a systematic review of literature to investigate the correlation between digital technology proficiency, digital innovation, and operational efficacy in the media sector. The PRISMA protocol was employed to conduct a search across four databases, and a content-based research methodology was utilized to analyze the collected studies. The search strategy involved the integration of controlled vocabulary terms and keywords, as well as the application of Boolean operators to enhance the precision of the search across multiple databases, including Web of Science, Scopus, IEEE Xplore, and Google Scholar. The inclusion criteria comprise studies that were conducted subsequent to the year 2010, authored in the English language, and have undergone peer-review. In accordance with the established inclusion criteria, a cumulative total of 23 studies (n =23) were deemed eligible for analysis.
 Findings: The findings of the systematic review show the significant impact of digital technology proficiency on the functional efficiency of the media sector. The capacity of digital technology, which includes proficiency, assets, and skills, is of paramount importance in propelling digital advancement and augmenting operational efficacy. The integration of digital technologies within the media industry has resulted in the democratization of content, the convergence of media platforms, and the emergence of novel hybrid media formats. The impact of digital capabilities on business performance can change, but in order to increase business performance, digital capabilities must lead to new digital innovations, which in turn can boost business performance.
 Unique contribution to theory, practice and policy: In order to achieve success in the contemporary digital landscape, media entities must strategically confront technological challenges, adopt digital advancements, and adjust to evolving market dynamics.

Exploitation, exploration and ambidextrous strategies of SMES in accelerating organisational effectiveness

PurposeThis study aims to analyse the resilience strategy utilized by small and medium-sized enterprises (SMEs), enabling these businesses to effectively adapt their operations in response to varying conditions by providing them with essential resources. SMEs operate in marketplaces that are both dynamic and frequently tumultuous. These markets provide SMEs with a variety of obstacles, including economic ups and downs, advances in technology, evolving customer tastes and new regulatory requirements. SMEs need to create a strategic strategy to survive and grow in such situations. This strategy ought to help strengthen their resiliency and make it possible for them to make the most of emerging opportunities while simultaneously lowering the dangers.Design/methodology/approachThe questionnaires adopted and adapted from previous research served as the basis for gathering the data. The manufacturing industry was polled through the use of questionnaires. To test the hypothesis, the data were analysed using Smart PLS. Through the use of closed-ended questions directed to the proprietors, managers or senior executives of SMEs, data were collected from each and every institution in the sample. Following the examination of the data by means of descriptive analysis and the presentation of several scenarios using information relating to SMEs, the findings were presented.FindingsThe ambidextrous strategies that are used by SMEs have a propensity to offer a constructive contribution to SMEs. In this study, it was discovered that ambidexterity, which is defined as the capacity to both seek and capitalise on possibilities, has a significant bearing on the organisational effectiveness of SMEs. The results showed that ambidextrous strategies have a propensity to work as mediators in interactions involving proactive resilience tactics and performance.Research limitations/implicationsThe research expands our understanding of how SMEs in the manufacturing sector may improve their performance by concentrating on growing their ambidextrous strategies.Practical implicationsThis study provides a plausible explanation of two crucial management mechanisms for enhancing the sustainability of organisational effectiveness. The relationships between ambidextrous capabilities and firm effectiveness are malleable, and this study suggests that nurturing formal and informal relationships may be the key to SMEs' long-term sustainable performance. Improving the knowledge and performance of supply chain systems for SMEs in the manufacturing sector and boosting their competitiveness in domestic and international markets are the practical contributions of this study.Social implicationsOur comprehension of monitoring, cooperation and innovation within social management was deepened as a result of these facts. In addition, the study conducted in the sector uncovered four essential connections that outline how managers should actively work towards lowering social risks, developing new possibilities and increasing business performance. These capacities and links, when taken as a whole, provide the foundation upon which an integrated framework and five research propositions are built.Originality/valueThis research offers a convincing explanation of fundamental management processes for enhancing the sustainability of organisational effectiveness. This research implies that developing formal and informal interactions may be the key to the sustainable performance of SMEs over the long run. The relationships between ambidextrous capabilities, methods and organisational effectiveness are flexible, and this study also suggests that these relationships may be shaped. The practical contributions made by this research include boosting the understanding and performance of supply chain systems for SMEs as well as the competitive power of these businesses in both local and international markets.

Development Model of Increasing Business Performance of Road Transport Enterprises of Eastern Economic Corridor (EEC) in Thailand

Development Model of Increasing Business Performance of Road Transport Enterprises of Eastern Economic Corridor (EEC) in Thailand

Spatial Analysis of Competency Approach as an Entrepreneurial Distinctiveness: A Focus on Micro and Small Enterprises

Micro and Small enterprises provide an essential role in the Philippine economy by creating more job opportunities that help reduce the country's poverty rate. However, with numerous competitors, MSEs with entrepreneurial distinctiveness only tend to continue their business operations. Thus, this study aimed to assess and understand the entrepreneurial competencies and distinctiveness of DTI-registered MSEs in selected areas in Cavite. This study utilized a descriptive correlation research design. A stratified sampling technique was employed to determine the specific quality of the participants. This study used 385 DTI-registered MSEs as respondents in selected Cavite areas. The study's findings stated that MSEs have enough entrepreneurial competence for the sustainability and continuity of their business operation. This study concluded that MSEs have more significant differences regarding the opportunity, organizing, relationship, and commitment than strategic and conceptual competency between the business profile. Thus, the researchers recommend that MSEs further develop the six dimensions of entrepreneurial competency mentioned in this study by attending training programs and seminars regarding the proper utilization and execution of entrepreneurial competencies that may increase business performance and growth. Moreover, local government agencies responsible for policy-making and related agencies conducting seminars and training programs consider proposing assistance to MSEs related to awareness and understanding of different dimensions of entrepreneurial competencies and proper utilization and generation of competitive advantage recognition of a business owner.
 Keywords: competency approach, entrepreneurial competency, entrepreneurial distinctiveness, micro and small enterprises (MSEs)

Increasing Business Performance in Property Management by Implementing the Green Habit

The objective of this study is to analyze the impact of green habits on property management business performance in Indonesia. This research is relatively new because the variable used, that is the green habit. The data used are the primary data in accordance with a mixed methods approach. The research findings have proven that green habits have a significant influence on business performance, which means green habits can improve business performance. Consumer habits toward environmental sustainability are the determinants of product sales and will ultimately have an impact on increasing sales and company performance. The results of this study contributed both scientific and practical aspects. From the scientific aspect, it supports the theory of organizational behavior, in which companies can run more effectively and influence performance improvement by applying science or something new that is useful. From the practical aspect, the company not only pays attention to profits but must pay attention to environmental aspects and the community around the company, especially property management. It is time to implement sustainability, one of which is green habits so that they can be more developed by increasing business performance and competitiveness.

Capital Structure and Corporate Performance: An Empirical Analysis from Central Europe

The capital structure and its indicators play a significant role in corporate finance. The aim is to estimate business performance using selected indicators describing primarily the capital structure, asset structure, or liquidity of transport companies in Central Europe. The total sample consists of almost 4000 small and medium-sized enterprises in the transport sector. This data is collected from Amadeus Bureau van Dijk. The results show that six out of ten variables are statistically significant predictors affecting business performance; two out of the six indicators are categorical variables, such as the company size classified into small and medium enterprises and the country divided into the Czech Republic, Hungary, Poland, or Slovakia. We find that Hungarian medium-sized enterprises show higher profitability than other enterprises, assuming other factors are unchanged. Finally, the results demonstrate that a high debt ratio and a high share of non-current assets in total assets have a negative impact on corporate performance in contrast to the current ratio and the share of cash and cash equivalents in total assets. In other words, liquidity and cash and its equivalents have a significant role in increasing business performance. These findings are specific because, generally, high liquidity does not positively impact performance.