Enhancing SMEs’ Growth by Investing in Organizational Capital

Objective: The objective of this paper is to verify the relationship between the share of investments in organizational capital (OC) within the total amount of investments and key performance indicators of SMEs. Research Design & Methods: Quantitative research based on the author’s theoretical...

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Main Author: Urban Pauli
Format: Article
Language:English
Published: Cracow University of Economics 2016-09-01
Series:Entrepreneurial Business and Economics Review
Subjects:
Online Access:http:////eber.uek.krakow.pl/index.php/eber/article/view/150
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author Urban Pauli
author_facet Urban Pauli
author_sort Urban Pauli
collection DOAJ
description Objective: The objective of this paper is to verify the relationship between the share of investments in organizational capital (OC) within the total amount of investments and key performance indicators of SMEs. Research Design & Methods: Quantitative research based on the author’s theoretical model and was conducted on a group of 180 Polish SMEs with the use of a structured questionnaire. To verify the hypothesis measures of dispersion as well as correlation were used. Findings: The share of investments in OC vary at particular growth stages and the highest is in decline stage. Investigated firms invest mostly in 'brand' and 'IT systems'. Investing in OC seems to be important mostly for SMEs that are in the prime stage. In this stage the share of investments in OC is correlated with almost all performance indicators. It suggests that OC can be treated as a source of competitive advantage and firms’ performance. Implications & Recommendations: The appropriate share of investments in particular resources positively impact the effectiveness of decisions aimed at enhancing SMEs growth. Guidelines in what to invest help managers to plan their activities, especially while operating in a rapidly changing environment. Contribution & Value Added: The study contributes to the stream of research devoted to SME growth factors. Despite the fact that there already are publications on the impact of particular resources on organisations’ success or failure, complex studies, including those concerning Polish SMEs, are much needed.
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spelling doaj.art-f04b21bce38f4236acf6248e70122cb32022-12-22T00:54:47ZengCracow University of EconomicsEntrepreneurial Business and Economics Review2353-883X2353-88212016-09-014310311610.15678/EBER.2016.040308147Enhancing SMEs’ Growth by Investing in Organizational CapitalUrban Pauli0Cracow University of EconomicsObjective: The objective of this paper is to verify the relationship between the share of investments in organizational capital (OC) within the total amount of investments and key performance indicators of SMEs. Research Design & Methods: Quantitative research based on the author’s theoretical model and was conducted on a group of 180 Polish SMEs with the use of a structured questionnaire. To verify the hypothesis measures of dispersion as well as correlation were used. Findings: The share of investments in OC vary at particular growth stages and the highest is in decline stage. Investigated firms invest mostly in 'brand' and 'IT systems'. Investing in OC seems to be important mostly for SMEs that are in the prime stage. In this stage the share of investments in OC is correlated with almost all performance indicators. It suggests that OC can be treated as a source of competitive advantage and firms’ performance. Implications & Recommendations: The appropriate share of investments in particular resources positively impact the effectiveness of decisions aimed at enhancing SMEs growth. Guidelines in what to invest help managers to plan their activities, especially while operating in a rapidly changing environment. Contribution & Value Added: The study contributes to the stream of research devoted to SME growth factors. Despite the fact that there already are publications on the impact of particular resources on organisations’ success or failure, complex studies, including those concerning Polish SMEs, are much needed.//eber.uek.krakow.pl/index.php/eber/article/view/150SMEssmall and medium-sized enterprisesgrowth modelsorganiza-tional capitalinvestmentsresources
spellingShingle Urban Pauli
Enhancing SMEs’ Growth by Investing in Organizational Capital
Entrepreneurial Business and Economics Review
SMEs
small and medium-sized enterprises
growth models
organiza-tional capital
investments
resources
title Enhancing SMEs’ Growth by Investing in Organizational Capital
title_full Enhancing SMEs’ Growth by Investing in Organizational Capital
title_fullStr Enhancing SMEs’ Growth by Investing in Organizational Capital
title_full_unstemmed Enhancing SMEs’ Growth by Investing in Organizational Capital
title_short Enhancing SMEs’ Growth by Investing in Organizational Capital
title_sort enhancing smes growth by investing in organizational capital
topic SMEs
small and medium-sized enterprises
growth models
organiza-tional capital
investments
resources
url http:////eber.uek.krakow.pl/index.php/eber/article/view/150
work_keys_str_mv AT urbanpauli enhancingsmesgrowthbyinvestinginorganizationalcapital