Strategic Management from the Perspective of SMEs Operating in Service Sector
Abstract
Purpose: Providing high quality services is a basis for long-term competitiveness of small and medium-sized enterprises. Recognizing the success factors of transformation and strategic management is an issue that has been frequently addressed in the past two decades. The goal of this article is to evaluate the strategy of small and medium-sized enterprises offering services in tourism and catering.
Methodology/Approach: The qualitative analysis was based on 107 completed interviews. Two hypotheses were formulated and an Independence Test was applied. Chi-square Test and Cross Table Analyiss were used which enable to examine the relationship between 2 non-metric variables. The two examined variables related to our Hypothesis 1 were ordinal, and 1 ordinal, 1 nominal in the case of Hypothesis 2. The significance level was p=0.05.
Findings: The obtained results show weak relationship between the size of the business and the awareness of the strategy. No relationship can be detected between the size of the business and the evaluation of the key success factor
Research Limitation/Implication: The research activity and obtaining research data from SMEs was obstacled by the pandemic situation caused by COVID-19. The research was limited by external circumstances, so the interviews with company representatives could be conducted on online platforms.
Originality/Value of paper: The paper examines how successful the SMEs involved in the research are in communicating the values and goals of the company to their employees. It brings important findings in the field of stretegy management which leads to high quality services in the case of providers.
References
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Ambrosini, V., Johnson, G. and Scholes, K., 1998. Exploring techniques of analysis and evaluation in strategic management. New York: Prentice Hall.
Antošová, M., 2012. Strategický manažment a rozhodovanie. Bratislava: Iura Edition.
Anyakoha, C., 2019. Strategic management practice and micro - small enterprises financial performance in Imo, South East Nigeria. Acta Oeconomica Universitatis Selye, 8(1), pp.41-52.
Bainbridge, C., 1996. Designing for change: A practical guide for business transformation. New York: John Wiley.
Bartkus, B.R., Glassman, M. and McAfee, R.B., 2004. A comparism of the quality of European, Japanese and US mission statements: a content analysis. European Management Journal, [e-journal] 22(4), pp.393-401. DOI: 10.1016/j.emj.2004.06.013.
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Bobenič Hintošová, A., Bruothová, M. and Vasková, I., 2020. Does Foreign Direct Investment Boost Innovation? The Case of the Visegrad and Baltic Countries. Quality Innovation Prosperity, [e-journal] 24(3), pp.106-121. DOI: 10.12776/QIP.V24I3.1519.
Bobenič Hintošová, A., Hajduová, Z., Szajt M. and Bobenič T., 2020. The Influence of Firm-Specific Factors on Firm´s Performance. Polish Journal of Management Studies, [e-journal] 21(2), pp.115-128. DOI: 10.17512/pjms.2020.21.2.09.
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Chandler, A., 1992. Strategy amd Structure. Cahters in the History of the American Enterprise. Cambridge, MA: MIT Press.
D’Aveni, R.A., 1994. Hypercompetition. New York: Free Press.
Day, G.S. and Wensley, R., 1988. Assessing advantage: a framework for diagnosing competitive superiority. Journal of Marketing, [e-journal] 52(2), pp. 1-20. DOI: 10.1177/002224298805200201.
Fonseca, L.M., and Lima, V.M., 2015. Impact of Supplier Management Strategies on the Organizational Performance of ISO 9001 Certified Organizations. Quality Innovation Prosperity, [e-journal] 19(2), pp.32-54. DOI: 10.12776/qip.v19i2.592.
Forbes Insights, 2014. Culture of Quality: Accelerating Growth and Performance in the Enterprise. New York: Forbes.
Galabova, B., 2021. Open innovation – potential, constraints and prospects. International Scientific Journal Innovations, 9(1), pp.7-11.
Genus, A., 1995. Flexible strategic management. London: Chapman & Hall.
Grunert, K.G. and Ellegaard, C., 1993. The concept of key success factors: theory and method. Perspectives on Marketing Management, 3, pp.245-274.
Hamel, G., Prahalad, C.K., Howard, T. and O'Neal, D.E., 1999. Strategic Flexibility: Managing in a Turbulent Economy. Chichester: Wiley.
Hitt, M.A., Ricart, J.E. and Nixon, R.D., 1998. New managerial mindsets: Organizational transformation and strategy implementation. New York: J. Wiley.
ISO, 2016. ISO 9001:2015 for Small Enterprises - What to do? Geneva: International Organization for Standardization.
Johnson, G. and Scholes, K., 2000. Cesty k úspěšnému podniku. Praha: Computer Press.
Joyce, P. and Woods, A., 1996. Essential strategic management: From modernism to pragmatism. Boston, MA: Butterworth-Heinemann.
Košťan, P. and Šuleř, O., 2002. Firemní strategie - plánování a realizace. Praha: Computer Press.
Kourdi, J., 2011. Podniková strategie. Průvodce rozvojem vašeho byznysu. Brno: Edika.
Magretta, J., 2012. Michael Porter jasně a zrozumitelně, O konkurenci a strategii. Praha: Management Press.
Magyar, Z., 2009a. Kisvállalatok stratégiai prioritásainak vizsgálata az észak – alföldi régióban. Gödöllő: Szent István Egyetem.
Magyar, Z., 2009b. A study of product strategy priorities at the small enterprises of the North-Alföld Region. Acta Agraria Debreceniensis, [e-journal] 33, pp. 55-64. DOI: 10.34101/actaagrar/33/2852.
Mallya, T., 2007. Základy strategického řízení a rozhodování. Praha: Grada Publishing.
Mathur, S.S. and Kenyon, A., 1998. Creating Value: Shaping Tomorrow's Business. Oxford: Butterworth-Heinemann.
Mura, L. and Sleziak, J., 2014. Innovation and Entrepreneurship Network. Proceedings of the CERS 2014: 5th Central European Conference in Regional Science, International Conference Proceedings. Košice, Slovakia, 5-8 Oct. 2015. Košice: Technical University of Košice. pp.643-651.
Mura, L., Žuľová, J. and Madleňák, A., 2016. Strategic management and management of personnel costs: employing young people in the Slovak Republic. Problems and Perspectives in Management, 14(1), pp.79-84. DOI: 10.21511/ppm.14(1).2016.09.
Papula, J., 2004. Vývoj teórie strategického manažmentu pod vplyvom zmien v prostredí. Bratislava: Karprint.
Papula, J., Papulová, Z. and Papula, J., 2019. Stratégia a strategický manažment. Bratislava: Wolters Kluwer.
Porter, M.E., 2004. Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: The Free Press.
Rajnoha, R. and Lorincová, S., 2015. Strategic Management of Business Performance Based on Innovations and Information Support in Specific Conditions of Slovakia. Journal of Competitiveness, [e-journal] 7(1), pp.3-21. DOI: 10.7441/joc.2015.01.01.
Richardson, B. and Richardson, R., 1992. Business planning: An approach to strategic management. London: Pitman.
Souček, Z., 2005. Firma 21. storočia. Praha: Professional Publishing.
Sousa, J.A. and Hambrick, D.C., 1989. Key success factors: test of a general theory in the mature industrial – product sector. Strategic Management Journal, 10(4), pp.367-382.
Szabó, A., 2016. A munkavállalói elkötelezettség növelésének hatása és lehetőségei. Opus et Educatio, 3(4), pp.439-450.
Szemere, T. P., Garai-Fodor, M. and Csiszárik-Kocsir, Á., 2021. Risk Approach-Risk Hierarchy or Construction Investment Risks in the Light of Interim Empiric Primary Research Conclusions. Risks, [e-journal] 9(5), pp.84-100.
Teece, D.J., Pisano, G. and Shuen, A., 1997. Dynamic Capabilities and Strategic Management. Strategic Management Journal, [e-journal] 18(7), pp.509-533. DOI: 10.1142/9789812834478_0002.
Thompson, J., 1995. The CIMA handbook of strategic management. Oxford: Butterworth–Heinemann.
Van der Walt, L.J., Kroon, J. and Fourie, B.J., 2004. The importance of a vision and mission for small, medium-sized and large businesses. South African Journal of Economic and Management Sciences (SAJEMS), 7(2), pp.206-220.
Varadarajan, P.R., 1985. A two-factor classification of competitive strategy variables. Strategic Management Journal, 6(4), pp.357-75.
Ward, J. and Peppard, J., 2013. Strategic planning for information systems. London: John Wiley & Sons.
Winslow, W., 1996. Strategic business transformation: Achieving strategic objectives through business re-engineering. New York: McGraw-Hill.
Zgodavova, K. and Bober, P., 2012. An Innovative Approach to the Integrated Management System Development: SIMPRO-IMS Web Based Environment. Quality Innovation Prosperity, [e-journal] 16(2), pp.59-70. DOI: 10.12776/qip.v16i2.69.
Al-Hanakta, R., Horuz, D. and Corekcioglu, S., 2020. Sustainable Innovation Development in Jordanian SMEs And Startups. In: D.K. Dimitrov, D. Nikoloski and R. Yilmaz, eds., Proceedings of XIV. International Balkan and Near Eastern Social Sciences Congress Series on Economics, Business and Management. Plovdiv, Bulgaria, 26-27 Sept. 2020. Bulgaria: University of Agri. and Rural Development, University “St. Kliment Ohridski”, IBANESS. pp. 404-412.
Aliperti, G. and Cruz, A., 2020. Promoting built-for-disaster-purpose mobile applications: An interdisciplinary literature review to increase their penetration rate among tourists. Journal of Hospitality and Tourism Management, [e-journal] 44, pp.193-210. DOI: 10.1016/j.jhtm.2020.06.006.
AlQershi, N.A., Diah, M.L.B.M., Latiffi, A.B.A. and Ahmad, W.N.K.W., 2020. Strategic Innovation and Competitive Advantage of Manufacturing SMEs: The Mediating Role of Human Capital. Quality Innovation Prosperity, [e-journal] 24(3), pp.70-89. DOI: 10.12776/qip.v24i3.1493.
Ambrosini, V., Johnson, G. and Scholes, K., 1998. Exploring techniques of analysis and evaluation in strategic management. New York: Prentice Hall.
Antošová, M., 2012. Strategický manažment a rozhodovanie. Bratislava: Iura Edition.
Anyakoha, C., 2019. Strategic management practice and micro - small enterprises financial performance in Imo, South East Nigeria. Acta Oeconomica Universitatis Selye, 8(1), pp.41-52.
Bainbridge, C., 1996. Designing for change: A practical guide for business transformation. New York: John Wiley.
Bartkus, B.R., Glassman, M. and McAfee, R.B., 2004. A comparism of the quality of European, Japanese and US mission statements: a content analysis. European Management Journal, [e-journal] 22(4), pp.393-401. DOI: 10.1016/j.emj.2004.06.013.
Bharadwaj, S.G., Varadarajan, P.R. and Fahy, J., 1993. Sustainable competitive advantage in service industries: a conceptual model and research propositions. Journal of Marketing, [e-journal] 57(4), pp.83-99. DOI: 10.1177/002224299305700407.
Bobenič Hintošová, A., Bruothová, M. and Vasková, I., 2020. Does Foreign Direct Investment Boost Innovation? The Case of the Visegrad and Baltic Countries. Quality Innovation Prosperity, [e-journal] 24(3), pp.106-121. DOI: 10.12776/QIP.V24I3.1519.
Bobenič Hintošová, A., Hajduová, Z., Szajt M. and Bobenič T., 2020. The Influence of Firm-Specific Factors on Firm´s Performance. Polish Journal of Management Studies, [e-journal] 21(2), pp.115-128. DOI: 10.17512/pjms.2020.21.2.09.
Bratianu, C. and Balanescu, G.V., 2008. Vision, mission and corporate values. A comparative analysis of the top 50 U.S. companies. Management & Marketing, 3(3), pp.19-38.
Chandler, A., 1992. Strategy amd Structure. Cahters in the History of the American Enterprise. Cambridge, MA: MIT Press.
D’Aveni, R.A., 1994. Hypercompetition. New York: Free Press.
Day, G.S. and Wensley, R., 1988. Assessing advantage: a framework for diagnosing competitive superiority. Journal of Marketing, [e-journal] 52(2), pp. 1-20. DOI: 10.1177/002224298805200201.
Fonseca, L.M., and Lima, V.M., 2015. Impact of Supplier Management Strategies on the Organizational Performance of ISO 9001 Certified Organizations. Quality Innovation Prosperity, [e-journal] 19(2), pp.32-54. DOI: 10.12776/qip.v19i2.592.
Forbes Insights, 2014. Culture of Quality: Accelerating Growth and Performance in the Enterprise. New York: Forbes.
Galabova, B., 2021. Open innovation – potential, constraints and prospects. International Scientific Journal Innovations, 9(1), pp.7-11.
Genus, A., 1995. Flexible strategic management. London: Chapman & Hall.
Grunert, K.G. and Ellegaard, C., 1993. The concept of key success factors: theory and method. Perspectives on Marketing Management, 3, pp.245-274.
Hamel, G., Prahalad, C.K., Howard, T. and O'Neal, D.E., 1999. Strategic Flexibility: Managing in a Turbulent Economy. Chichester: Wiley.
Hitt, M.A., Ricart, J.E. and Nixon, R.D., 1998. New managerial mindsets: Organizational transformation and strategy implementation. New York: J. Wiley.
ISO, 2016. ISO 9001:2015 for Small Enterprises - What to do? Geneva: International Organization for Standardization.
Johnson, G. and Scholes, K., 2000. Cesty k úspěšnému podniku. Praha: Computer Press.
Joyce, P. and Woods, A., 1996. Essential strategic management: From modernism to pragmatism. Boston, MA: Butterworth-Heinemann.
Košťan, P. and Šuleř, O., 2002. Firemní strategie - plánování a realizace. Praha: Computer Press.
Kourdi, J., 2011. Podniková strategie. Průvodce rozvojem vašeho byznysu. Brno: Edika.
Magretta, J., 2012. Michael Porter jasně a zrozumitelně, O konkurenci a strategii. Praha: Management Press.
Magyar, Z., 2009a. Kisvállalatok stratégiai prioritásainak vizsgálata az észak – alföldi régióban. Gödöllő: Szent István Egyetem.
Magyar, Z., 2009b. A study of product strategy priorities at the small enterprises of the North-Alföld Region. Acta Agraria Debreceniensis, [e-journal] 33, pp. 55-64. DOI: 10.34101/actaagrar/33/2852.
Mallya, T., 2007. Základy strategického řízení a rozhodování. Praha: Grada Publishing.
Mathur, S.S. and Kenyon, A., 1998. Creating Value: Shaping Tomorrow's Business. Oxford: Butterworth-Heinemann.
Mura, L. and Sleziak, J., 2014. Innovation and Entrepreneurship Network. Proceedings of the CERS 2014: 5th Central European Conference in Regional Science, International Conference Proceedings. Košice, Slovakia, 5-8 Oct. 2015. Košice: Technical University of Košice. pp.643-651.
Mura, L., Žuľová, J. and Madleňák, A., 2016. Strategic management and management of personnel costs: employing young people in the Slovak Republic. Problems and Perspectives in Management, 14(1), pp.79-84. DOI: 10.21511/ppm.14(1).2016.09.
Papula, J., 2004. Vývoj teórie strategického manažmentu pod vplyvom zmien v prostredí. Bratislava: Karprint.
Papula, J., Papulová, Z. and Papula, J., 2019. Stratégia a strategický manažment. Bratislava: Wolters Kluwer.
Porter, M.E., 2004. Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: The Free Press.
Rajnoha, R. and Lorincová, S., 2015. Strategic Management of Business Performance Based on Innovations and Information Support in Specific Conditions of Slovakia. Journal of Competitiveness, [e-journal] 7(1), pp.3-21. DOI: 10.7441/joc.2015.01.01.
Richardson, B. and Richardson, R., 1992. Business planning: An approach to strategic management. London: Pitman.
Souček, Z., 2005. Firma 21. storočia. Praha: Professional Publishing.
Sousa, J.A. and Hambrick, D.C., 1989. Key success factors: test of a general theory in the mature industrial – product sector. Strategic Management Journal, 10(4), pp.367-382.
Szabó, A., 2016. A munkavállalói elkötelezettség növelésének hatása és lehetőségei. Opus et Educatio, 3(4), pp.439-450.
Szemere, T. P., Garai-Fodor, M. and Csiszárik-Kocsir, Á., 2021. Risk Approach-Risk Hierarchy or Construction Investment Risks in the Light of Interim Empiric Primary Research Conclusions. Risks, [e-journal] 9(5), pp.84-100.
Teece, D.J., Pisano, G. and Shuen, A., 1997. Dynamic Capabilities and Strategic Management. Strategic Management Journal, [e-journal] 18(7), pp.509-533. DOI: 10.1142/9789812834478_0002.
Thompson, J., 1995. The CIMA handbook of strategic management. Oxford: Butterworth–Heinemann.
Van der Walt, L.J., Kroon, J. and Fourie, B.J., 2004. The importance of a vision and mission for small, medium-sized and large businesses. South African Journal of Economic and Management Sciences (SAJEMS), 7(2), pp.206-220.
Varadarajan, P.R., 1985. A two-factor classification of competitive strategy variables. Strategic Management Journal, 6(4), pp.357-75.
Ward, J. and Peppard, J., 2013. Strategic planning for information systems. London: John Wiley & Sons.
Winslow, W., 1996. Strategic business transformation: Achieving strategic objectives through business re-engineering. New York: McGraw-Hill.
Zgodavova, K. and Bober, P., 2012. An Innovative Approach to the Integrated Management System Development: SIMPRO-IMS Web Based Environment. Quality Innovation Prosperity, [e-journal] 16(2), pp.59-70. DOI: 10.12776/qip.v16i2.69.
Authors
Zsigmond, T., Machová, R., & Zsigmondová, A. (2021). Strategic Management from the Perspective of SMEs Operating in Service Sector. Quality Innovation Prosperity, 25(2), 37–53. https://doi.org/10.12776/qip.v25i2.1549
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