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Small and medium enterprises (SMEs) are main generators of employment and economic development in European Union. In Croatia and Slovenia, SMEs in wood processing (C16) and furniture manufacturing (C31) also play an important role in social cohesion and development of rural areas. The aim of this research was to investigate the current situation in SMEs in wood processing and furniture manufacturing regarding driving parameters of business and production management system in the time of a disturbed market situation caused by the COVID-19 global pandemic. Two different questionnaires in an e-mail survey were used to collect data for this research from companies and from experts in the field of management, production and marketing. Various statistical tests were used using seven driving parameters on data collected from 212 SMEs. Also, the Analytic Hierarchy Process (AHP) was used on the data collected from 20 experts. Results showed that companies in the time of pandemic crisis and during the time of major disturbances in supply chain pay the most attention to their production program and quality of their products, and then to marketing activities and situation on the market. According to the results presented in this research, the management model can help SMEs managers, micro and small enterprises in particular, to improve their decision-making process, make the necessary innovations easier and faster, and maintain the sustainable business and production management system of their companies.

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Corporate leaders often view innovation as a key contributor to superior profits, market sharing, and competitive positioning. However, confusion regarding the definition of innovation, how to create it, and how to implement it remains. In countries that are recent European Union members, little research has been done on innovation and how innovation is related to corporate management activities. In this study, the linkages were examined in the Croatian furniture industry. The first part of the study was to deconstruct innovation into three components: product innovation, production process innovation, and human resource innovation. The second part of the study evaluates the relationships between these innovation components and four company management activities/factors (research and development investments, company flexibility, export activity, and the Internet usage) were examined. Scale testing resulted in valid deconstruction measures of innovation. Hypothesized correlations between innovation components and company management factors were supported, although the results were not fully consistent with those of previous studies.

During the last decade, the Slovak and Croatian furniture industry markets have experienced changes that have made these markets more interesting for domestic and foreign investors. Furniture manufacturers and retailers are still trying to determine the best ways to adjust to customer demands, and understanding the furniture preferences of customers would provide beneficial information to the furniture industry. The purpose of this study, which was conducted in 2016, was to improve the knowledge regarding differences in the preferences of customers for furniture materials, attributes, and styles when purchasing furniture in Slovakia and Croatia. The findings showed that Slovak and Croatian respondents differ in their preferences for furniture materials, as well as the factors that influence their purchasing decisions when buying interior and exterior furniture. Overall, it was found that wood as the furniture material, compared with the surveyed substitutes, was widely preferred among the Croatian and Slovak respondents.