Publication detail

Factors affecting business performance in the open economy

REŽŇÁKOVÁ, M. STRNADOVÁ, M.

Original Title

Factors affecting business performance in the open economy

Type

conference paper

Language

English

Original Abstract

The international trade and the cross-border movement of capital, which are main factors of globalisation, puts pressure on strengthening the competitiveness and growth of business performance, as well as eliminating inefficient processes. In particular, this pressure affects enterprises operating in an open economy, such as the Czech Republic. It is the export of machinery and transport equipment that has the highest share in total export. For the firms operating in this sector it is vital to identify the value drivers, i.e. key performance indicators contributing to value creation. Based on the undertaken literature research, a value driver is each factor affecting the value of the business. Quantitative value drivers are mostly financial indicators; qualitative value drivers represent quality of company management. Effective performance management requires eliminating processes, which may jeopardise the business value growth. According the previous research, factors reducing the business value include the lack of capital, lack of strategic management systems and poor quality of production. In order to gain further insight into the topic, the paper presents the results of the research identifying factors adversely affecting the performance of mechanical engineering enterprises in the Czech Republic. The collection data took place through a questionnaire survey among company senior managers. The research results show that the factors representing the highest risk for the performance and value of businesses include the incompetence of management staff and the failure to respect customer requirements.

Keywords

value drivers, financial ratios, non-financial indicators, threats of performance, mechanical engineering companies

Authors

REŽŇÁKOVÁ, M.; STRNADOVÁ, M.

Released

30. 10. 2017

Publisher

University of Zilina, The Faculty of Operation and Economics of Transport and Communications

Location

Rajecke Teplice

ISBN

978-80-8154-212-1

Book

GLOBALIZATION AND ITS SOCIO-ECONOMIC CONSEQUENCES

Edition number

1

Pages from

2167

Pages to

2174

Pages count

8

URL

http://ke.uniza.sk/sites/default/files/content_files/part_i_final_3.pdf

BibTex

@inproceedings{BUT141400,
  author="Mária {Režňáková} and Michala {Strnadová}",
  title="Factors affecting business performance in the open economy",
  booktitle="GLOBALIZATION AND ITS SOCIO-ECONOMIC CONSEQUENCES",
  year="2017",
  number="1",
  pages="2167--2174",
  publisher="University of Zilina, The Faculty of Operation and Economics of Transport and Communications",
  address="Rajecke Teplice",
  isbn="978-80-8154-212-1",
  url="http://ke.uniza.sk/sites/default/files/content_files/part_i_final_3.pdf"
}