Polish SMEs Research Articles

Management practices and their relation to success of Polish SMEs: The empirical verification.

The aim of the paper is to identify management practices that are characteristic for SMEs that achieve market success measured by their business performance in last their years of their operation analyze the relationships between management practices applied in small and medium-sized enterprises and their success measured by their business performance drawing on the data from 2710 SMEs operating on the Polish market. A cluster analysis was used to distinguish homogenous SME groups in view of their management practices. We examined differences between groups in terms of their business performance. The HINoV algorithm allowed six variables to be selected out of 32 management practices chosen initially for testing, with these variables providing the basis for grouping. Modal values and medians were calculated for 17 business performance measures in the three clusters produced. The subsequent analysis of those findings was focused on capturing significant differences. In the group of 2710 Polish SMEs, it was possible to verify that there existed an association between management practices in the field of modern HRM, computer systems supporting management and the company's economic performance, as measured by an increase in net revenue and number of customers over the last three years. In clusters where the above mentioned practices were appreciated, modal and median values of the increase reported in net revenue and number of customers were significantly higher. The research has shown that at a time marked by a shortage of highly skilled personnel one should pay particular attention to building an integrated and committed team of workers and to employee empowerment. The research has also shown that SME managers monitor only a fraction of basic business performance measures, which may prove to be a major risk to SMEs. Previous studies have been largely conducted in a fragmentary manner, i.e. they were concerned with the relationships between the application of some practices (strategic management, BPR, entrepreneurial orientation, monitoring, etc.) and selected business effectiveness measures. In this paper, the research covered SME management practices from a variety of areas which were then compared with the entrepreneurs' assessment as to whether the company's economic condition changed over the last three years. It is also the first attempt in post-socialist economies to identify those SME management practices that are related to better economic results.

Managerial Competencies & Polish SMEs’ Response to the COVID-19 Pandemic: An Insight

The COVID-19 pandemic and its implications have had a devastating impact on the business sector worldwide, especially on the SMEs’ sector. By highlighting the evolution, and so the specificity, of the Polish SMEs’ sector, by reference to the concept of learning organization, this paper queried the sources of the Polish SMEs’ unsatisfactory response to the COVID-19 pandemic and its implications. A survey (n = 147) conducted among a sample of Polish SMEs revealed that the Polish SMEs, in general, did not recognize the salience of managerial skills in building their capacity to withstand a crisis. Creating growth opportunities, rather than accumulating and operationalizing their organization’s knowledge, were stressed as the way of navigating challenges. This paper offers an insight into selected factors that influenced Polish SMEs’ sector during the COVID-19 pandemic, and suggests some ways of addressing problems thus identified.

Multi-Sided Digital Platforms’ Application in SMEs’ Fashion Brands Internet-Enabled International Marketing

Purpose: While the multi-sided digital platforms (MSPs) enjoy increasing interest regarding their business models and internationalisation, little research has been done on the application of MSPs in firms` foreign expansion. Specifically, it is unclear how MSPs can support small and medium enterprises` (SMEs) international marketing. The aim of this paper is to identify models of MSPs application in the Internet-enabled international marketing of SMEs’ fashion brands. Design/Methodology/Approach: As the research method a multiple-case study was used. Data were obtained from both in-depth interviews with managers of four Polish SMEs – owners of fashion brands, whose products are sold in the foreign markets via MSPs, and secondary sources. Findings: Studied companies offer their products via international MSPs originating from foreign markets and home country. It may be initiated both by platform`s operators, brand owner and a foreign distributor. Responsible for the relations with MSPs and in control over international marketing via MSPs may be both brand owner and a foreign distributor. Practical Implications: Presented models of MSPs application in international marketing can be used as a basis for shaping marketing strategies in this area. Originality/Value: This paper contributes to the better understanding of SMEs` Internet-enabled international marketing using MSPs.

COVID-19 Interruptions and SMEs Heterogeneity: Evidence from Poland

This study contributes to the emerging stream of the literature on the COVID-19-related risks and their impact on businesses’ performance. The growing evidence within is, however, missing the uniqueness of country-level settings, as well as lacking the voice of SMEs solely. The extant literature provides some evidence on SMEs’ vulnerabilities to the crisis, but it commonly compares SMEs with large firms. To cover this gap, the main aim of this study is to analyze the perception of COVID-19 interruptions by various groups of Polish SMEs. Thus, this work adds primarily by revising the perceptions of COVID-19 risks, given the heterogeneity of SMEs if we consider their size, age, legal form of organization and status of a family firm. Based on the survey results on SMEs operating in Poland, we employ ANOVA and k-means ranks to provide strong evidence that COVID-19’s impact was perceived as more interruptive by micro and very young firms, as well as by the firms that perform as sole proprietorships. We have also found evidence that family firms do not differ from non-family ones in the perceptions of COVID-19 impacts.

Social responsibility of SMEs from the perspective of their innovativeness: Evidence from Poland

In the context of long-term development, the question of innovation activities undertaken by SMEs that influence their ability to react quickly to changes in the environment, appears to be particularly important. Therefore, we have attempted to answer the question whether the use of CSR measures increases the chances of SMEs introducing product and process innovations. In the study, we used the CAPI method, and we assessed data obtained from 1286 Polish SMEs using logistic regression. The results suggest that the chances of SMEs that use elements of the CSR approach introducing innovations are higher than in the case of SMEs that do not undertake such activities. The relationship can be observed among SMEs which plan to increase expenditure on R&D, indicating that the investment is financing opportunities available on the market that correspond to their needs, or those which plan to modernize their infrastructure or to develop high-quality, reliable infrastructure.

Management Succession in Polish Small and Medium Enterprises in the Light of Empirical Studies

Purpose: The article presents the methodology and empirical study results on management succession in Polish small and medium enterprises aimed at the identification of scope, form effects, and barriers in management succession and situational conditionings of that process. Design/Methodology/Approach: The empirical studies were accomplished with the use of survey technique on random-target array of 200 Polish private enterprises. The respondents were entrepreneurs – owners or main shareholders of the examined subjects. To formulate conclusions selected statistical analyses were used, in the form of quantitative / percentage indications of specified variants of responses from the questionnaires, as well as the correlative calculus of variables. Findings: The author managed to positively verify the hypothesis of the limited scope of managerial successions in managing polish SMEs, demonstrate the positive effect of these processes upon the development of enterprises, as well as to indicate their main restrictions. We also revealed the connections between the features of succession and the selected characteristics of enterprises. Practical Implications: The author sees the practical effects of propagating study results in the possible changes in the sceptical attitudes of Polish entrepreneurs towards managerial forms of succession in management, which should result in development and improvement of effectiveness in enterprises. Originality/Value: The presented studies have no equivalent in domestic literature, and their results are of importance both for those practicing management and for demarcating the directions of further studies.

Decision Making and Entrepreneurial Orientation of SMEs

Recently there have been several reports concerning the SMEs' decision-making in the foreign markets, including the discussion comparing the so-called “effectual” decision-making style with the causative one. The study aims to investigate the nature of the decision making of SME-exporters and to analyze the relationship of the decision-making style with their entrepreneurial orientation. A mixed-mode CAWI/CATI method was applied to 300 Polish SMEs from the manufacturing sector in the Spring of 2018. To assess their decision making, the scale based on Chandler et al. was used, and to evaluate their entrepreneurial orientation, the scale adapted from Fiore et al. was used. As it was found, formal planning dominated the studied firms' decision making. The more advanced international players relied more on formalized contracts with their partners than the other firms. Moreover, there exists a positive and significant association of decision making with entrepreneurial orientation dimensions.

Pricing Strategies – Comparative Analysis of Non-Exporting Enterprises and of Intense Exporters Based on the Example of Polish SMEs

The research aim of the paper is to verify the differences with regard to the pricing strategies being implemented among non-exporting enterprises and intense exporters based on the example of Polish SMEs. The study presented was conducted between May – June 2019 on a representative sample of Polish SMEs created after 2004: non-exporters and exp orters with a min. 25% share of exports in the total sales. The research method applied is computer assisted web interviewing (CAWI) and computer assisted telephone interviewing (CATI). The total count of the sample is 240 businesses, randomly selected from a database which contains 2969 Polish companies. The study emphasizes that between exporting companies and non-exporting companies, there are differences in the pricing strategy application. Exporting enterprises more frequently have a differentiated pricing policy. No significant connection between the pricing strategy and the quality strategy was observed, both among non-exporting enterprises and intense exporters.

Green Logistics: The Way to Environmental Sustainability of Logistics. Empirical Evidence from Polish SMEs

The needs related to natural environment protection, which are accentuated both in world literature and practice, became the main prerequisite to find new management concepts enabling the development of solutions which are environmentally responsible and economically effective at the same time. One of the concepts which can be an answer for the requirements related to environment protection is the ‘green logistics’ concept. The literature review shows that publications referring to the development of ‘green logistics’ have so far focused primarily on the processes of implementation and development of ‘green logistics’ in large enterprises. In other words, the reviewed research studies didn’t take into account the specific nature of the SME sector, which is a very important factor considering its diversity and, most of all, its high significance and size in the economy. As a consequence, a research gap related to the development of ‘green logistics’ among small and medium-sized enterprises was identified. To explore the identified research gap, a survey among 200 SMEs running their businesses in Poland was conducted. On the basis of the conducted research, it was revealed that SMEs’ activities related to environment protection when running logistics processes are mostly determined by actual legal provisions. However, this amounts to enterprises reaching a certain minimum related to the state's environmental policy. On the other hand, it’s worth emphasising the role of the supply chain leader, which becomes a strong driving force for implementing ‘green’ solutions in the area of logistics for enterprises with higher levels of ‘green logistics’ development. The research results can be a starting point for creating a model illustrating the development of ‘green logistics’ in the SME sector.
 Keywords: green logistics, environmental sustainability, SME

Selected aspects of risk management in Polish and Slovak SMEs

Selected aspects of risk management in Polish and Slovak SMEs

Training professionalisation and SME performance

ABSTRACTThis paper examines how SMEs organize their training process, the extent to which they apply training practices that are well-grounded in literature, and how these impact upon their performance. To evaluate the training process, the concept of ‘training professionalization’ was applied to identify the scope and specificity of actions undertaken. This mostly refers to formal training which should consist of needs assessment, planning, execution and evaluation. This article presents the results of research conducted on a group of 100 Polish SMEs. The research design made it possible to evaluate training professionalization and verify interdependence between training professionalization level and business outcomes. Data analysis confirmed that the training process in SMEs is generally underdeveloped; only in a few companies is it executed according to the models and procedures discussed in the literature. However, it was statistically supported that companies executing training processes according to theoretical models reported higher outcomes and an increase in almost all evaluated performance indicators.

Politics, sport mega events and grassroots mobilization. Anticipated triumph and unexpected failure of political elite in Poland

Sport mega events are the most prominent manifestations of the multidimensional and global interrelation between sport and politics. The purpose of the paper is to present the contrasting cases of two Polish SMEs: UEFA European Championships in football (Euro, 2012) and the bid for Winter Olympic Games Cracow 2022. This article pays special attention to the role of Polish political elite in promoting both events and to the grassroots movement that effectively ended the bidding for the latter event. It also discusses how the allegedly successful Euro 2012 tournament was presented in the public discourse in order to avoid conflicts and debates about the very idea of hosting the games. This proved unsuccessful in the latter case. This case deserves scrutiny as it is an unusual example of effective bottom up mobilization of civil society against the whole political elite.

Parametric Conditions of High Financial Risk in the SME Sector

The sector of SME is the major force for the national economic and social development. Financial risk is one of the key threats to the activity of small and medium enterprises. The most common manifestation of the financial risk of SMEs is difficulty in financing the business and lack of funds for development. Banks are unwilling to grant loans to such companies. Moreover, it is the rising operating costs that cause shrinking profits, which may result in corporate debt, difficulty in debt repayment, and consequently, high financial risk of these entities. Numerous differences in conducting the activity of small and large enterprises intensify this risk and mean that the model of credit financing for companies is not adjusted to the capabilities and principles of the operation of small enterprises. Therefore, risk management is one of the most important internal processes in small and medium enterprises. The identification of factors that affect the level of financial risk in these entities is therefore crucial. The main objective of this research was to analyze the impact of selected parametric characteristics of the SME sector on the intensity of financial risk they take. This objective was accomplished on the basis of the survey with the participation of Polish SMEs. In order to test the adopted research assumptions, the linear regression model was used with four continuous variables for each type of the identified financial risk. Based on the final research results, the logit model was obtained for the risk of insufficient profits. It was indicated that both the internationalization of the company and the ability to manage risk are the only factors that affect a high level of risk of low income. The article ends with the discussion and the comparison with some previous research in this area.

Innovation strategies in SME’s economic growth and job creation in economy

Abstract SMEs and entrepreneurship are key to ensuring economic growth, innovation, job creation, and social integration in the EU. The SME sector has a crucial role to play in creating new jobs, economic growth and innovation in socioeconomic development. The paper aims to address the critical role of small and medium-sized companies by investigating innovation management strategies in the SME sector. The goal of the present paper is to analyze the innovation strategies of SMEs and to provide an overview of the performance of Polish SMEs against those in the European Union. The main method in the study is desk research based on secondary statistic data. The method made it possible to prove that innovative strategy is a necessary condition to improve the competitiveness level in the SME sector. The main contribution of this research is to highlight the impact of innovation strategies on the competitive level of the researched entities for SMEs. The linear model developed for the “innovation expenditure” factor and forecast for 2-year period amply make it clear that SMEs continue to tread a positive growth trend.

The role of firm-level factors and regional innovation capabilities for Polish SMEs

The paper elaborates on the innovativeness of Small and Medium-Sized Enterprises in Poland from the regional perspective. The empirical evidence is based on data collected among 820 Polish SMEs which actively use ICT tools in their business processes. Identifying firm-level (internal) and regional drivers of innovations in these enterprises was the main aim of this study. The originality of the utilized research approach lies in combining within one framework firm-level data with meso data describing the innovative potential of the regional environment and using multilevel random-effects models to analyze the relevance of firm-level and regional drivers of SMEs’ innovativeness. By deploying a regional random effects approach, we assessed indirectly the effectiveness of innovation policies conducted in Polish NUTS 2 regions within a RIS and S3 framework. Interestingly, the research hypothesis, stating that regional (external) factors are more important to enhance innovativeness of SME than firm-level (internal) drivers, was verified negatively. The study revealed that SMEs in less-developed regions of Poland rely more on in-house capabilities, than on the regional innovative potential, to introduce different types of innovations. This suggests that the S3 framework in less-developed regions should concentrate more on linking firm-level factors and regional innovation systems to enhance companies’ innovation capacity.

Interpretive Structural Modeling Approach to Analyze the Interaction Among Key Factors of Risk Management Process in SMEs: Polish Experience

Many drivers are shaping the risk management processes in enterprise. Understanding the interrelationships between individual risk drivers is a significantly important for decision making processes. This is a complex challenge especially for SMEs enterprises. This paper aims to identify the most important risk factors and determine the interactions of these factors in risk management process in small and medium firms based on Polish SMEs experience. This study is based on the technique Interpretive Structural Modelling (ISM), in order to delineate a flowchart that shows the main risk factors (and their relationships) influencing the risk management processes in small and medium enterprises. Through a process of modelling it was possible to reach a graphical presentation that shows the operating sequence of main risk factors in order to understand the logic of their relationship. The final model is a useful tool that can be adopted to optimize decision making process in SMEs from risk perspective. Keywords: enterprise risk management, interpretive structural modeling (ISM ), risk factors, SMEs

Openness to co-creation as a method of reducing the complexity of the environment and dynamizing companies’ competitive advantages

Abstract Openness is an expression of an enterprise’s ability to adapt to changing environment conditions and its ability to cooperate with different types of partners. A given company’s openness shows its readiness for the creation of dynamics of many business processes, including the creation of its competitive advantage. Due to the nature of today’s enterprises’ environment, mainly its “high velocity” & “complexity” attributes, openness of companies has to be multifaceted. Organization-customer relationships, called co-creation, are one of such facets. The capacity for effective co-creation gives a company the ability to gain a competitive advantage along with the chance for its permanent dynamization and sustainability. The main purpose of the paper is to present the framework and algorithm of co-creation as a method of reducing the complexity of the environment and dynamizing companies’ competitive advantages. A review of literature in the areas of open organization, open culture, partnership, co-creation, and competitive advantage provides a basis for understanding the process of co-creation. Collected data show that the activity of enterprises in this process is a key factor in the reduction of complexity of a company’s environment and an important stimulator of the dynamization of a company’s competitive advantage. The authors’ own CATI questionnaire survey research conducted in Poland showed the level of preparation Polish SMEs have to co-create.

Uwarunkowania zagranicznej ekspansji polskich MŚP

The article shows that the share of Polish SMEs in export is lower than the number of enterprises in the Polish economy and the number of people working in SME. This situation is a result of the influence of many factors – both endogenous and exogenous – mainly due to the lack of export policy in Poland. The effect of international research and comparisons is to check the research hypothesis. The main objective of article is to formulate recommendations based on international research and comparisons which may contribute to an increase of the importance of Polish SMEs as exporters. The paper was written on the basis of the literature studies in the field of internationalization of enterprises and statistical data illustrating the SME sector in Poland and selected EU countries.

Influence of group purchasing organizations on financial situation of Polish SMEs

Research background: SMEs often operate in markets where they compete with large companies. A fight for a customer, payment backlogs, problems with debt collection and new branches cause that managers are looking for solutions that will influence positively on the situation of financial companies. Maintaining liquidity and generating income are the primary steps to build a competitive position and a progressive development of enterprises. One of the most popular methods that allows companies to do profitable business and increase their chances for safety is operation within group purchasing organizations. Currently in the Polish market there are many different types of GPOs (Group Purchasing Organizations). The choice of the right one is a chance to improve their financial situation.
 Purpose of the article: The aim of the article is to present an impact of group purchasing organizations on the financial situation of enterprises. In the article the classification of groups is done and there are shown the benefits that commercial enterprises operating in them gain. The article presents some obstacles to join specific group purchasing organizations and difficulties faced by companies operating in them.
 Methods: The studies were carried out on the basis of 60 SMEs. These companies operated in five Polish GPOs. The groups were divided into branch and multi-branch ones. The study period covered the years 2013?2015. In order to analyze the impact of purchasing groups on the financial situation of enterprises, some selected groups of financial ratios were used. A preliminary analysis of financial balance sheets and profit and loss account was conducted.
 Findings & Value added: The analysis showed that the choice of an appropriate group purchasing organization had a large impact on financial situation of companies. Different opportunities can be offered by a branch purchasing group than by the multi-branch one. Research has shown that better results relate to dynamics of revenues, costs, liquidity and profitability that are effects of operation within the branch purchasing groups. The analysis conducted has also showed that functioning within purchasing groups allows to maintain safe financial liquidity, apart from obtaining a low price of purchased goods and materials, and has a positive impact on the effectiveness of managing receivables and short-term liabilities.

PLACE OF INNOVATION IN THE CONTEMPORARY MANAGEMENT CONCEPT

This study attempts to present current concepts of organization management and related consequences for the innovative activity of modern small and medium-sized enterprises. The article have a theoretical and empirical nature. The first part of the publication contains short reflections on the importance of paradigms in management sciences, supplemented with the main assumptions of the dominant trends and research concepts in this field. In turn, the second part includes the results of research in the field of innovation audit, which were carried out on the sample 80 Polish SMEs distinguished in the Business Gazelles 2016 Ranking. The study, using the CAWI method, was conducted and presented in accordance with the research procedure of the creators of the innovation audit - J. Tidd and J. Bessant.