Owners vs. Managers. Disparities of Attitudes on the Business Risk in SME Segment

Dvorský, Ján; Kozubíková, Ľudmila; Ključnikov, Aleksandr; Ivanová, Eva

doi:10.24818/ea/2022/59/174

Cited by 7 publications

(8 citation statements)

References 42 publications

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“…The growth of SME costs in countries close to military conflict (countries of the Visegrad Group) is affected to the greatest extent. Many research studies examine the importance and benefit of risk management in enterprises and currently also assess various negative influences and impacts on the financial performance of enterprises [4,[24][25][26]. The mentioned research studies and empirical research declare the growing interest of research teams in examining the issue of risk management in the enterprise, which is also testified by the following processed analysis.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Management of Operational Risk in the Context of Financial Performance of SMEs

Hudáková,

Kardoš,

Dvorský

et al. 2023

Systems

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Owners and managers of small and medium-sized enterprises (SMEs) have changed their perspective on risk management due to the current global negative threats in the business environment. If they want to be successful and ensure the financial performance of their business, they must adopt a proactive approach to reducing strategic risks in connection with operational risks. The aim of the article is to identify and quantify the differences in operational risk management and its effect on the financial management of SMEs between four Central European countries. The statistical sample of SMEs consisted of 1090 owners and top managers. Data collection was carried out through a questionnaire in the period December 2022–January 2023. Statistical hypotheses were evaluated with the application of correlation analysis and linear regression modelling. Empirical findings have confirmed that operational risk management has a significant positive impact on improving the profitability of the enterprise and on reducing the enterprise’s indebtedness, as well as in the context of reducing the enterprise’s inability to pay its obligations. However, there are disparities in the perception of this influence between owners/managers with regard to the country in which they carry out their business activities. The findings are important for both national and multinational organizations and entities dealing with risk management in the business environment of small and medium-sized enterprises.

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Section: Theoretical Backgroundmentioning

confidence: 99%

Management of Operational Risk in the Context of Financial Performance of SMEs

Hudáková,

Kardoš,

Dvorský

et al. 2023

Systems

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“…SMEs in the European Union employ fewer than 250 people; their annual turnover does not exceed EUR 50 million or the annual balance sheet total does not exceed EUR 43 million (The Commission of European Communities, 2003). Among them, micro, small and medium-sized entities are considered to play a fundamental role in countries' economies (Smith et al, 2022;Dvorsky et al, 2022;Journeault et al, 2021;Liñán et al, 2020;Belás et al, 2014;Borah et al, 2022;Meluzín et al, 2018;Belás et al, 2021). SMEs comprise the majority of all businesses, often constituting more than 99% of all enterprises.…”

Section: Introductionmentioning

confidence: 99%

“…The Visegrad Group (also known as the 'Visegrad Four' or simply 'V4') is an example of regional cooperation between the Central European countries. The V4 comprises Poland, the Czech Republic, the Slovak Republic and Hungary, which are connected by proximity, similar geopolitical conditions, a shared history and common traditions, cultures and values (Dvorsky et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

The impact of corporate reputation and social media engagement on the sustainability of SMEs: Perceptions of top managers and the owners

Dvorský,

Bednarz,

Blajer-Gołębiewska

2023

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Research background: Small and medium-sized enterprises (SMEs) play a fundamental role in countries’ economies. Currently, entrepreneurs are struggling not only with the uncertainty of the business environment, but also with high expectations for businesses to be run in a sustainable way. Therefore, the impact of corporate reputation and social media on sustainability is an area of interest for entrepreneurs. In this context, little research has been conducted on their perception of the linkage between these issues. Furthermore, there has been no direct explanation of the effects of SMEs’ reputation and social media usage on their sustainable development, especially in the V4 countries. Purpose of the article: This article defines, quantifies, and verifies the effects of corporate reputation and social media on sustainable development as perceived by SMEs’ owners and top managers in the V4 countries. Methods: Data were gathered in December 2022 and January 2023 using the computer-assisted web interviewing (CAWI) method. The survey was designed based on a literature review and experts’ opinions. Respondents (top managers of SMEs, n = 1090) were asked questions on their firms’ characteristics, reputation, social media usage and sustainable development. The linear regression modelling (LRM) was utilised to evaluate the hypothesis. Findings & value added: The study revealed a strong relationship between owners’ and top managers’ perceptions of the importance of both corporate reputation and sustainable development in SMEs. The belief that social media supports the growth of companies’ performance is related to the understanding of the concept of sustainable business development. Surprisingly, for the owners and top managers of SMEs in V4 countries, there was no relationship between the awareness of social media usage to share information with customers and partners and the understanding of sustainable business growth.

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“…To date, it has been indicated that individual risk attitudes are linked to various types of behaviors, including saving, consumption, investment, and career choices (Djankov et al, 2006;Caliendo et al, 2010;Pfeifer, 2011). More importantly, as a critical factor, individual risk attitudes are expected to influence business development as entrepreneurs' risk attitudes, through their strategic choices, affect the behaviors of their firms (Soreide, 2009;Dvorsky et al, 2022). For example, in practice, entrepreneurs' risk aversion often leads them to become conservative (Taofeeq et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

How do contract performance rates affect entrepreneurs’ risk-averse attitudes? Evidence from China

et al. 2023

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IntroductionEntrepreneurs’ attitudes toward risk is one of the most critical factors influencing business growth and economic development. Therefore, addressing the influencing factors and formation mechanisms of entrepreneurs’ risk attitudes has become a crucial research endeavor. In this paper, we examine how contract performance rates affect entrepreneurs’ risk attitudes through the mediating effect of subjective well-being as well as assess the moderating effect of the regional business environment on this relationship.MethodsThe ordered probit regression technique was employed to analyze the data obtained from 3,660 sampled respondents from the 2019 China Household Finance Survey. All analysis was performed using Stata 15.0.ResultsThe empirical results show that contract performance rates have a substantial positive indirect effect on entrepreneurs’ degree of risk aversion through improved subjective well-being. The regional business environment plays a negative regulatory role in the relationship between contract performance rates and entrepreneurs’ risk aversion. Furthermore, urban–rural heterogeneity appears to consistently determine the extent of the influence of contract performance rates on entrepreneurs’ risk attitudes.ConclusionTo reduce entrepreneurs’ risk aversion and enhance social and economic activity, the government should improve regional business environments by taking specific measures. Our study contributes to the empirical understanding of entrepreneurs’ investment decisions in the context of urban and rural environments.

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Owners vs. Managers. Disparities of Attitudes on the Business Risk in SME Segment

Cited by 7 publications

References 42 publications

Management of Operational Risk in the Context of Financial Performance of SMEs

Management of Operational Risk in the Context of Financial Performance of SMEs

The impact of corporate reputation and social media engagement on the sustainability of SMEs: Perceptions of top managers and the owners

How do contract performance rates affect entrepreneurs’ risk-averse attitudes? Evidence from China

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