Share:


Risk management level determinants in Visegrad countries – sectoral analysis

    Jaroslav Belas Affiliation
    ; Beata Gavurova   Affiliation
    ; Matus Kubak   Affiliation
    ; Andrea Novotna Affiliation

Abstract

Increasing competition has emphasized the need for creating and using more effective strategies at the level of SMEs to achieve competitive advantage. SMEs face higher risks in terms of the globalization due to the limited resources as well as size. The objective of the study was to examine the determinants of risk management with an emphasis on the sector specifics of SMEs in the V4 countries. This enables the quantification of sectoral differences in relation to the socioeconomic determinants. The research sample included 1585 SMEs from the V4 countries. The data obtained from SME managers and owners were processed using the descriptive statistics and logistic regression. The results of the analyses confirm the existence of differences across SMEs concerning the risk management, which are determined by the country in which a given company operates, industry, gender and age of its manager or the owner of the company. The results of the study provide a valuable platform for the development of systems to measure and assess business risks in companies and to set up training systems. It will also enhance the development of international and national benchmarking indicators and the creation of international databases for comparative analyses.

Keyword : business risks, experience with the business failure, business environment, small and medium-sized enterprise, entrepreneurship

How to Cite
Belas, J., Gavurova, B., Kubak, M., & Novotna, A. (2023). Risk management level determinants in Visegrad countries – sectoral analysis. Technological and Economic Development of Economy, 29(1), 307–325. https://doi.org/10.3846/tede.2023.18415
Published in Issue
Mar 6, 2023
Abstract Views
472
PDF Downloads
418
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Antosko, M., Korba, P., & Sabo, J. (2015). One runway airport separations. Informatics, geoinformatics and remote sensing, SGEM 2015. In International Multidisciplinary Scientific GeoConference-SGEM (pp. 241–248). Curran Associates, Inc.

Asgary, A., Ozdemir, A. I., & Özyürek, H. (2020). Small and medium enterprises and global risks: Evidence from manufacturing SMEs in Turkey. International Journal of Disaster Risk Science, 11, 59–73. https://doi.org/10.1007/s13753-020-00247-0

Bartos, V., Vochozka, M., & Janikova, J. (2021). Fair value in squeeze-out of large mining companies. Acta Montanistica Slovaca, 26(4), 712–731. https://doi.org/10.46544/AMS.v26i4.10

Belás, J., Bilan, Y., Ključnikov, A., Vincúrová, Z., & Macháček, J. (2015). Actual problems of business risk in segment SME. Case study from Slovakia. International Journal of Entrepreneurial Knowledge, 3(1), 46–56. https://doi.org/10.1515/ijek-2015-0010

Belas, J., Gavurova, B., Cepel, M., & Kubak, M. (2020). Evaluation of economic potential of business environment development by comparing sector differences: Perspective of SMEs in Czech Republic and Slovakia. Oeconomia Copernicana, 11(1), 131–155. https://doi.org/10.24136/oc.2020.006

Bensaada, I., & Taghezout, N. (2019). An enterprise risk management system for SMEs: Innovative design paradigm and risk representation model. Small Enterprise Research, 26(2), 179–206. https://doi.org/10.1080/13215906.2019.1624190

Blanc Alquier, A. M., & Lagasse Tignol, M. H. (2006). Risk management in small-and medium-sized enterprises. Production Planning & Control, 17(3), 273–282. https://doi.org/10.1080/09537280500285334

Bogodistov, Y., & Wohlgemuth, V. (2017). Enterprise risk management: A capability-based perspective. Journal of Risk Finance, 18(3), 234–251. https://doi.org/10.1108/JRF-10-2016-0131

Bubnova, Y. B., & Stepanova, M. N. (2022). Participation of financial institutions in minimizing the risks of the road transport complex. Transportation Research Procedia, 61, 132–138. https://doi.org/10.1016/j.trpro.2022.01.022

Buganová, K., Mošková, E., & Šimíčková, J. (2021). Increasing the resilience of transport enterprises through the implementation of risk management and continuity management. Transportation Research Procedia, 55, 1522–1529. https://doi.org/10.1016/j.trpro.2021.07.141

Cepel, M., Gavurova, B., Dvorsky, J., & Belas, J. (2020). The impact of the COVID-19 crisis on the perception of business risk in the SME segment. Journal of International Studies, 13(3), 248–263. https://doi.org/10.14254/2071-8330.2020/13-3/16

Chang, X. (2022). Impact of risks on forced CEO turnover. Quantitative Finance and Economics, 6(2), 177–205. https://doi.org/10.3934/QFE.2022008

Cicea, C., Popa, I., Marinescu, C., & Ștefan, S. C. (2019). Determinants of SMEs’ performance: Evidence from European countries. Economic Research-Ekonomska Istraživanja, 32(1), 1602–1620. https://doi.org/10.1080/1331677X.2019.1636699

Cipovová, E., & Dlasková, G. (2016). Comparison of different methods of credit risk management of the commercial bank to accelerate lending activities for SME segment. European Research Studies Journal, 19, 17–26. Retrieved February 11, 2022, from https://www.ersj.eu/repec/ers/papers/16_4_p2.pdf

Demirkol, A. (2022). An empirical analysis of securitization discourse in the European Union. Migration Letters, 19(3), 273–286. https://doi.org/10.33182/ml.v19i3.1832

Doś, A., Wieczorek-Kosmala, M., & Błach, J. (2022). The effect of business legal form on the perception of COVID-19-related disruptions by households running a business. Risks, 10(4), 82. https://doi.org/10.3390/risks10040082

Džunda, M., Dzurovčin, P., Kaľavský, P., Korba, P., Cséfalvay, Z., & Hovanec, M. (2021). The UWB radar application in the aviation security systems. Applied Sciences, 11(10), 4556. https://doi.org/10.3390/app11104556

Foss, N. J., & Saebi, T. (2017). Fifteen years of research on business model innovation: How far have we come, and where should we go? Journal of Management, 43(1), 200–227. https://doi.org/10.1177/0149206316675927

Főző, L., Andoga, R., Schreiner, M., Beneda, K., Hovanec, M., & Korba, P. (2019, April). Simulation aspects of adaptive control design for small turbojet engines. In 2019 IEEE 23rd International Conference on Intelligent Engineering Systems (INES), 000101–000106. Hungary. IEEE. https://doi.org/10.1109/INES46365.2019.9109503

Gavurova, B., Belas, J., Bilan, Y., & Horak, J. (2020). Study of legislative and administrative obstacles to SMEs business in the Czech Republic and Slovakia. Oeconomia Copernicana, 11(4), 689–719. https://doi.org/10.24136/oc.2020.028

Havierniková, K., & Kordoš, M. (2019). The SMEs’ perception of financial risks in the context of cluster cooperation. Quantitative Finance and Economics, 3(3), 586–607. https://doi.org/10.3934/QFE.2019.3.586

Hoogendoorn, B., van der Zwan, P., & Thurik, R. (2019). Sustainable entrepreneurship: The role of perceived barriers and risk. Journal of Business Ethics, 157, 1133–1154. https://doi.org/10.1007/s10551-017-3646-8

Hudakova, M., Gabrysova, M., Petrakova, Z., Buganova, K., & Krajcik, V. (2021). The perception of market and economic risks by owners and managers of enterprises in the V4 countries. Journal of Competitiveness, 13(4), 60–77. https://doi.org/10.7441/joc.2021.04.04

Hudakova, M., Masar, M., Luskova, M., & Patak, M. R. (2018). The dependence of perceived business risks on the size of SMEs. Journal of Competitiveness, 10(4), 54–69. https://doi.org/10.7441/joc.2018.04.04

Hudáková, M., Masár, M., Šimák, L., & Brezina, D. (2019). The current state of the application of risk management in the transport sector. Transportation Research Procedia, 40, 1073–1079. https://doi.org/10.1016/j.trpro.2019.07.150

Impedovo, M. A. (2022). Transformative agency in workers’ account: Tensions in professional development. Migration Letters, 19(3), 343–355. https://doi.org/10.33182/ml.v19i3.1144

Ismail, T. A. T., Zahari, M. S. M., Hanafiah, M. H., & Balasubramaniam, K. (2022). Customer brand personality, dining experience, and satisfaction at luxury hotel restaurants. Journal of Tourism and Services, 24(13), 26–42. https://doi.org/10.29036/jots.v13i24.278

Kan, T. C. (2022). Perceived value, inter-functional coordination, and strategic adaptation: The perspective on selecting travel agencies from school travel plan. Journal of Tourism and Services, 24(13), 236–255. https://doi.org/10.29036/jots.v13i24.366

Khan, K. A., Çera, G., & Nétek, V. (2019). Perception of the selected business environment aspects by service firms. Journal of Tourism and Services, 10(19), 111–127. https://doi.org/10.29036/jots.v10i19.115

Kliuchnikava, Y. (2022). The impact of the pandemic on attitude to innovations of SMEs in the Czech Republic. International Journal of Entrepreneurial Knowledge, 10(1), 34–45. https://doi.org/10.37335/ijek.v10i1.131

Ključnikov, A., Belás, J., Kozubíková, L., & Paseková, P. (2016). The entreprenurial perception of SME business environment quality in the Czech Republic. Journal of Competitiveness, 8(1), 66–78. https://doi.org/10.7441/joc.2016.01.05

Ključnikov, A., Civelek, M., & Supeková, S. C. (2022b). The innovative posture of SMEs depending on the usage of marketing tools. Serbian Journal of Management, 17(1), 73–84. https://doi.org/10.5937/sjm17-32902

Ključnikov, A., Civelek, M., Klimeš, C., & Farana, R. (2022a). Export risk perceptions of SMEs in selected Visegrad countries. Equilibrium. Quarterly Journal of Economics and Economic Policy, 17(1), 173–190. https://doi.org/10.24136/eq.2022.007

Kolbari, S. (2019). Investigating challenges and assessing managers’ capabilities for risk management in small and medium-sized enterprises at the time of financial crisis in developing economies. Revista Gestão & Tecnologia, 19(1), 44–56. Retrieved February 11, 2022, from http://revistagt.fpl.edu.br/get/article/view/1524

Kolupaieva, I., Pustovhar, S., Suprun, O., & Shevchenko, O. (2019). Diagnostics of systemic risk impact on the enterprise capacity for financial risk neutralization: The case of Ukrainian metallurgical enterprises. Oeconomia Copernicana, 10(3), 471–491. https://doi.org/10.24136/oc.2019.023

Kozubíková, L., Belás, J., Ključnikov, A., & Virglerová, Z. (2015). Differences in approach to selected constructs of entrepreneurail orientation in SME segment regarding the selected socio-demographic factors. Transformation in Business and Economic, 14(3C(36C), 333–355.

Kunuroglu, F., & Önder, A. S. (2022). The role of out-group network in the choice of migration destination: Evidence from Turkey. Migration Letters, 19(3), 253–260. https://doi.org/10.33182/ml.v19i3.1399

Kužma, D., Korba, P., Hovanec, M., & Dulina, Ľ. (2016). The use of CAX systems as a tool for modeling construction element in the aviation industry. NAŠE MORE: znanstveni časopis za more i pomorstvo, 63(3 Special Issue), 134–139. https://doi.org/10.17818/NM/2016/SI11

Lahuta, P., Kardoš, P., & Hudáková, M. (2021). Integrated risk management system in transport. Transportation Research Procedia, 55, 1530–1537. https://doi.org/10.1016/j.trpro.2021.07.142

Liu, F., Fang, M., Park, K, & Chen, X. (2021). Supply chain finance, performance and risk: How do SMEs adjust their buyer-supplier relationship for competitiveness? Journal of Competitiveness, 13(4), 78–95. https://doi.org/10.7441/joc.2021.04.05

Machova, V., & Vochozka, M. (2019, November). Analysis of business companies based on artificial neural networks. In J. Horak (Ed.), Innovative Economic Symposium 2018 – Milestones and Trends of World Economy (IES2018), 61. China. VŠTE. https://doi.org/10.1051/shsconf/20196101013

Meyer, N., Meyer, D., & Kot, S. (2017). The development of a process tool for improved risk management in local government. Calitatea, 18(S1), 425.

Oláh, J., Kovács, S., Virglerova, Z., Lakner, Z., Kovacova, M., & Popp, J. (2019). Analysis and comparison of economic and financial risk sources in SMEs of the Visegrad Group and Serbia. Sustainability, 11(7), 1853. https://doi.org/10.3390/su11071853

Peng, K., & Yan, G. (2021). A survey on deep learning for financial risk prediction. Quantitative Finance and Economics, 5(4), 716–737. https://doi.org/10.3934/qfe.2021032

Pereira-Moliner, J., López-Gamero, M. D., Font, X., Molina-Azorín, J. F., Tarí, J. J., & Pertusa-Ortega, E. M. (2021). Sustainability, competitive advantages and performance in the hotel industry: A synergistic relationship. Journal of Tourism and Services, 23(12), 132–149. https://doi.org/10.29036/jots.v12i23.282

Petruf, M., Korba, P., & Kolesár, J. (2015). Roles of logistics in air transportation. NAŠE MORE: znanstveni časopis za more i pomorstvo, 62(3 Special Issue), 215–218. https://doi.org/10.17818/NM/2015/SI23

Přívara, A. (2021). Labour market efficiency and emigration in Slovakia and EU neighbouring countries. Economic Research-Ekonomska Istraživanja, 34(1), 1850–1869. https://doi.org/10.1080/1331677X.2020.1858131

Privara, A. (2022). Economic growth and labour market in the European Union: Lessons from COVID-19. Oeconomia Copernicana, 13(2), 355–377. https://doi.org/10.24136/oc.2022.011

Přívara, A., & Rievajová, E. (2021). Migration governance in Slovakia during the COVID-19 crisis. Migration Letters, 18(3), 331–338. https://doi.org/10.33182/ml.v18i3.1469

Privara, A., Rievajová, E., & Dziura, B. (2018). Unemployment aspects of regional development (The cases of the Czech and Slovak Republics). Advanced Science Letters, 24(9), 6320–6322. https://doi.org/10.1166/asl.2018.13042

Rahman, A. R., Civelek, M. C., & Kozubikova, L. K. (2016). Proactiveness, competitive aggressiveness and autonomy: A comparative study from the Czech Republic. Equilibrium. Quarterly Journal of Economics and Economic Policy, 11(3), 631–650. https://doi.org/10.12775/EQUIL.2016.028

Rehman, A. U., & Anwar, M. (2019). Mediating role of enterprise risk management practices between business strategy and SME performance. Small Enterprise Research, 26(2), 207–227. https://doi.org/10.1080/13215906.2019.1624385

Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), 341–350. https://doi.org/10.1016/j.jbusres.2014.06.024

Sandoz, L. (2021). Localising informal practices in transnational entrepreneurship. Migration Letters, 18(2), 135–148. https://doi.org/10.33182/ml.v18i2.1177

Schaltegger, S., Lüdeke-Freund, F., & Hansen, E. G. (2016). Business models for sustainability: A co-evolutionary analysis of sustainable entrepreneurship, innovation, and transformation. Organization & Environment, 29(3), 264–289. https://doi.org/10.1177/1086026616633272

Shpak, N., Bondarenko, Yu., Sroka, W., Kulyniak, I., Tsymbalista, N., & Prosovych, O. (2022). Strategic planning of the recreational and tourist industry development: The Ukrainian evidence. International Journal of Entrepreneurial Knowledge, 10(1), 100–122. https://doi.org/10.37335/ijek.v10i1.158

Skare, M., & Soriano, D. B. (2021). How globalization is changing digital technology adoption: An international perspective. Journal of Innovation & Knowledge, 6(4), 222–233. https://doi.org/10.1016/j.jik.2021.04.001

Smékalová, L., Hájek, O., Belás, J., & Macháček, J. (2014). Perception of small and medium entrepreneurship in the Czech Republic. Journal of Competitiveness, 6(4), 41–49. https://doi.org/10.7441/joc.2014.04.03

Sobeková Majková, M. (2016). The relationship between the risk of a change of the interest rate and the age of entrepreneurs among Slovak SMEs. Journal of Competitiveness, 8(3), 125–138. https://doi.org/10.7441/joc.2016.03.08

Stehel, V., & Vochozka, M. (2016). The analysis of the economical value added in transport. NASE MORE, 63(3, SI), 185–188. https://doi.org/10.17818/NM/2016/SI20

Szabo, S., Pilát, M., Makó, S., Korba, P., Čičváková, M., & Kmec, Ľ. (2022). Increasing the efficiency of aircraft ground handling – A case study. Aerospace, 9(1), 2. https://doi.org/10.3390/aerospace9010002

Turisová, R., Pačaiová, H., Kotianová, Z., Nagyová, A., Hovanec, M., & Korba, P. (2021). Evaluation of eMaintenance application based on the new version of the EFQM Model. Sustainability, 13(7), 3682. https://doi.org/10.3390/su13073682

Valaskova, K., Androniceanu, A.-M., Zvarikova, K., & Olah, J. (2021). Bonds between earnings management and corporate financial stability in the context of the competitive ability of enterprises. Journal of Competitiveness, 13(4), 167–184. https://doi.org/10.7441/joc.2021.04.10

Virglerová, Z., Kozubíková, L., & Vojtovič, S. (2016). Influence of selected factors on financial risk management in SMEs in the Czech Republic. Montenegrin Journal of Economics, 12(1), 21–36. https://doi.org/10.14254/1800-5845/2016.12-1.1

Vochozka, M., Horák, J., Krulický, T., & Pardal, P. (2020). Predicting future Brent oil price on global markets. Acta Montanistica Slovaca, 25(3), 375–392. https://doi.org/10.46544/AMS.v25i3.10

Vorobeva, E., & Dana, L. P. (2021). The COVID-19 pandemic and migrant entrepreneurship: Responses to the market shock. Migration Letters, 18(4), 477–485. https://doi.org/10.33182/ml.v18i4.1400

Zhao, W., Yang, T., Hughes, K. D., & Li, Y. (2021). Entrepreneurial alertness and business model innovation: The role of entrepreneurial learning and risk perception. International Entrepreneurship and Management Journal, 17, 839–864. https://doi.org/10.1007/s11365-020-00637-2