The Use of Quantitative Methods in Business Practice: Study of Czech Republic

Abstract

The purpose of the study is to evaluate the use of quantitative methods in companies and determine the reasons for the non-use of quantitative methods. First, the context of dependence on individual characteristics of the company, such as size, amount of foreign share, and business sector, is analysed. Subsequently, the methods companies use, and those for which companies require scientific support and research are identified. The study is carried out in companies in the Czech Republic and is based on an electronic survey. Methods of statistical testing of dependencies are used for evaluation. The inputs showed that the size of the company is the most dependent on the use of quantitative methods in companies. From the results of the question on the reasons for not using quantitative methods in business practice, the most significant number of respondents answered that the methods are too academic and often their use in business practice is unrealistic due to their complexity. It is the trend of academic institutions and scientific societies to develop quantitative evaluation software with simple input and interpretation. They identified the forecasting of business variables as the method with the greatest scientific potential. The following are simulation methods and logistics management methods. The article may provide a central theme for future science and research development in business.

Hybrid demand forecasting models: pre-pandemic and pandemic use studies

“…The main limitations of this study are, of course, the application to the data of one type of business. As already mentioned in the discussion chapter, research in this area should be continued, as evidenced by another study by the authors (Kolková et al, 2022). Using forecasting methods during periods of demand stability and low volatility is easy.…”

Demand forecasting: AI-based, statistical and hybrid models vs practice-based models - the case of SMEs and large enterprises

“…The use of more complex ML models in practice is still limited to large enterprises. Kolková et al (2022), in their research, focused on SMEs, and large enterprises, confirmed that SMEs do not widely use quantitative methods for their decision-making. The main reason for not using quantitative methods in SMEs was that they are too academically demanding and that their use in practice is often unrealistic due to their complexity.…”

“…However, most companies still focus on forecasting, although not at the top of it. Forecasting future business development is considered the most for future research (Kolková et al, 2022). At the same time, the research should lead to simplification and more direct applicability and interpretability of methods.…”

“…However, for SMEs, these criteria can be crucial. According to the research by Kolková et al (2022), the complexity of models for small and medium-sized enterprises is often the main reason for not using them.…”

Knowledge and Technological Innovations in the Context of Tourists' Spending in OECD Countries

“…The use of innovative technologies has a significant impact on business indicators (Civelek et al, 2021a), forecasts, order rates, logistics and automation, as well as the ability to control and advertise. Such innovations are important due to the transformation (Civelek et al, 2021b), profitability (Stefko et al, 2020), and competitiveness (Kliuchnikava, 2022;Janovska et al, 2012) that positively affect their performance (Stefko et al, 2019), and competencies of companies to manage their innovation potential (Kolková et al, 2022), production capacity (Kutac et al, 2013), and financial issues (Charaia et al, 2021). Innovations also carry high importance for regions that significantly impact economic development in various areas (Jemala 2021).…”