PL EN


Preferencje help
Widoczny [Schowaj] Abstrakt
Liczba wyników
2023 | 9 | nr 4 | 59--71
Tytuł artykułu

Determinants of SME Profitability in the Service Sector: An Empirical Investigation from Poland

Warianty tytułu
Języki publikacji
EN
Abstrakty
EN
Objective: The article aims to verify profitability and its determinants in SME service firms. Research Design & Methods: We conducted a critical literature review and analysed empirical data based on a linear mixed model. The research sample comprises 1851 SMEs representing the service sector. Findings: An analysis of the determinants of SME profitability in the service sector indicates the significance of such factors as belonging to a given industry, debt levels, asset structure, company size, and financial liquidity. Implications & Recommendations: The financial success of SMEs in the service sector results mainly from belonging to a specific industry. The profitability of a business activity is determined by a given sector's internal competition, entry and exit barriers, technological advancement, and the structure of the market and business environment. Moreover, the profitability of SME service companies also depends on their size. On the other hand, such variables as indebtedness, asset structure, and financial liquidity negatively impact profitability. Contribution & Value Added: An analysis of SME profitability in the service sector is the first such undertaking in Eastern Europe. It is also true of the verification of profitability determinants in the service sector. The article also empirically verifies the profitability of different activities in the service sector. (original abstract)
Rocznik
Tom
9
Numer
Strony
59--71
Opis fizyczny
Twórcy
  • Uniwersytet Ekonomiczny w Krakowie
  • Uniwersytet Ekonomiczny w Krakowie
Bibliografia
  • 1. Adams, M., & Buckle, M. (2003). The determinants of corporate financial performance in the Bermuda insurance market. Applied Financial Economics, 13(2), 133-143. https://doi.org/10.1080/09603100210105030
  • 2. Adams, M. (1996). Investment earnings and the characteristics of life insurance firms: New Zealand evidence. Australian Journal of Management, 21(1), 41-55. https://doi.org/10.1177/031289629602100106
  • 3. Anastassopoulos, G. (2004). Profitability differences between MNE subsidiaries and domestic firms: the case of the food industry in Greece. Agribusiness: An International Journal, 20(1), 45-60. https://doi.org/10.1002/agr.10082
  • 4. Bhayani, J. (2010). Determinant of profitability in Indian cement industry: An economic analysis. South Asian Journal of Management, 17(4), 6-20. Retrieved from https://www.semanticscholar.org/ on June 10, 2023.
  • 5. Chinaemerem, O.C., & Anthony O. (2012). Impact of capital structure on the financial performance of Nigerian firms. Oman Chapter of Arabian Journal of Business and Management Review, 34(969), 1-19. https://doi.org/10.12816/0002231
  • 6. Coad, A. (2007). Firm growth: A survey. Max Planck Institute of Economics. Papers on Economics and Evolution, Jena, No. 0703, 28-29. Retrieved from https://www.researchgate.net/publication/5018415 on June 10, 2023.
  • 7. Coad, A., Segarra, A., & Teruel, M. (2013). Like milk or wine: Does firm performance improve with age? Structural Change and Economic Dynamics, 24, 173-189. https://doi.org/10.1016/j.strueco.2012.07.002
  • 8. Czekaj, J., & Dresler, Z. (2008). Zarządzanie finansami przedsiębiorstw. Warszawa: Wyd. PWN.
  • 9. Deloof, M. (2003). Does working capital management affect profitability of Belgian firms? Journal of Business Finance & Accounting, 30(3-4), 573-588. https://doi.org/10.1111/1468-5957.00008
  • 10. Eljelly, A.M. (2004). Liquidity-profitability trade-off: An empirical investigation in an emerging market. International Journal of Commerce and Management, 14, 48-61. https://doi.org/10.1108/10569210480000179
  • 11. Fama, E.F., & Jensen, M.C. (1983). Agency problems and residual claims. The Journal of Law and Economics, 26(2), 327-349. https://doi.org/10.2139/ssrn.94032
  • 12. Getahun, M. (2016). Capital structure and financial performance of insurance industries in Ethiopia. Global Journal of Management and Business Research, 16, 45-54. Retrieved from https://globaljournals.org/GJMBR_Volume16/6-Capital-Structure-and-Financial.pdf on June 10, 2023.
  • 13. Gharaibeh, O., & Khaled, M.H.B. (2020). Determinants of profitability in Jordanian services companies. Investment Management and Financial Innovations, 17(1), 277-290. https://doi.org/10.21511/imfi.17(1).2020.24
  • 14. Goddard, J., Tavakoli, M., & Wilson, J.O. (2005). Determinants of profitability in European manufacturing and services: evidence from a dynamic panel model. Applied Financial Economics, 15(18), 1269-1282. https://doi.org/10.1080/09603100500387139
  • 15. Greiner, L.E. (1972). Evolution and revolution as organization Growth. Hanurcf Business Review, 50(4), 37-46. Retrieved from https://hbr.org/1998/05/evolution-and-revolution-as-organizations-grow on June 10, 2023.
  • 16. Hendriksen, E.A., & van Breda, M.F. (2002). Teoria rachunkowości. Warszawa: Wydaw. Naukowe PWN (pp. 327-328).
  • 17. Hovakimian, A., Opler, T., & Titman, S. (2001). The debt-equity choice. Journal of Financial and Quantitative analysis, 36(1), 1-24. https://doi.org/10.2307/2676195
  • 18. Jabłońska-Porzuczek, L., Kalinowski, S., & Smoluk-Sikorska, J. (2018). Determinanty konkurencyjności mikro-, małych i średnich przedsiębiorstw branży piekarniczo-cukierniczej, Zeszyty Naukowe. Organizacja i Zarządzanie, Politechnika Śląska, 117, 173-185. https://doi.org/10.29119/1641-3466.2018.117.11
  • 19. Kędzior, M. (2016). Zależność rentowności przedsiębiorstw od czynników mikroekonomicznych, makroekonomicznych i instytucjonalnych w wybranych państwach Unii Europejskiej. Zeszyty Naukowe/Uniwersytet Ekonomiczny w Krakowie. Seria Specjalna, Monografie.
  • 20. López-Gracia, J., & Sogorb-Mira, F. (2008). Testing trade-off and pecking order theories financing SMEs. Small Business Economics, 31(2), 117-136. https://doi.org/10.1007/s11187-007-9088-4
  • 21. Margaretha, F., & Supartika, N. (2016). Factors affecting profitability of small medium enterprises (SMEs) firm listed in Indonesia Stock Exchange. Journal of Economics, Business and Management, 4(2), 132-137. https://doi.org/10.7763/JOEBM.2016.V4.379
  • 22. Michaelas, N., Chittenden, F., & Poutziouris, P. (1999). Financial policy and capital structure choice in UK SMEs: Empirical evidence from company panel data. Small Business Economics, 12(2), 113-130. https://doi.org/10.1023/A:1008010724051
  • 23. Myers C. (1984). The capital structure puzzle. The Journal of Finance, 39(3), 574-592. https://doi.org/10.1111/j.1540-6261.1984.tb03646.x
  • 24. Nucci, F., Pozzolo, A., & Schivardi, F. (2005). Is firm's productivity related to its financial structure? Evidence from microeconomic data. Rivista di Politica Economica, 95(1), 269-290. Retrieved from https://efmaefm.org/0efmameetings/efma%20annual%20meetings/2005-Milan/papers/204-pozzolo_paper.pdf on June 10, 2023.
  • 25. Nunes, J.M., Serrasqueiro, Z.M., & Sequeira, T.N. (2009). Profitability in Portuguese service industries: a panel data approach. The Service Industries Journal, 29(5), 693-707. https://doi.org/10.1080/02642060902720188
  • 26. Nunes, M., Viveiros, A., & Serrasqueiro, Z. (2012). Are the determinants of young SME profitability different? Empirical evidence using dynamic estimators. Journal of Business Economics and Management, 13(3), 443-470. https://doi.org/10.3846/16111699.2011.620148
  • 27. Olokoyo, F.O. (2013). Capital structure and corporate performance of Nigerian quoted firms: A panel data approach. African Development Review, 25(3), 358-369. https://doi.org/10.1111/j.1467-8268.2013.12034.x
  • 28. Orser, B.J., Hogarth-Scott, S., & Riding, A.L. (2000). Performance, firm size, and management problem solving. Journal of Small Business Management, 38(4), 42-58. Retrieved from https://www.researchgate.net/publication/274698692 on June 10, 2023.
  • 29. Pantea, M., Gligor, D., & Anis, C. (2014). Economic determinants of Romanian firms' financial performance. Procedia-Social and Behavioral Sciences, 124, 272-281. https://doi.org/10.1016/j.sbspro.2014.02.486
  • 30. Pervan, M., Pervan, I., & Ćurak, M. (2019). Determinants of firm profitability in the Croatian manufacturing industry: evidence from dynamic panel analysis. Economic Research-Ekonomska istraživanja, 32(1), 968-981. https://doi.org/10.1080/1331677X.2019.1583587
  • 31. Pervan, M., Pervan, I., & Ćurak, M. (2017). The influence of age on firm performance: evidence from the Croatian food industry. Journal of Eastern Europe Research in Business and Economics, 1, 1-10. https://doi.org/10.5171/2017.618681
  • 32. Petersen M.A., & Rajan R.G. (1994), The benefits of lending relationships: Evidence from small business data, The Journal of Finance, 49(1), 3-37. https://doi.org/10.2307/2329133
  • 33. Pi, L., & Timme, G. (1993). Corporate control and bank efficiency. Journal of Banking & Finance, 17(2-3), 515-530. https://doi.org/10.1016/0378-4266(93)90050-N
  • 34. Ponikvar, N., & Tajnikar, M. (2011). Are the determinants of markup size industry-specific? The case of Slovenian manufacturing firms. Panoeconomicus, 58(2), 229-244. https://doi.org/10.2298/PAN1102229P
  • 35. Prusak, R. (2019). Analysis of selected elements of knowledge management in the context of the size of the enterprise and the specifics of its activity. Management, 23(1), 90-103. https://doi.org/10.2478/manment-2019-0006
  • 36. Qian, G., & Li, L. (2003). Profitability of small-and medium-sized enterprises in high-tech industries: the case of the biotechnology industry. Strategic Management Journal, 24(9), 881-887. https://doi.org/10.1002/smj.344
  • 37. Salman, A.K., & Yazdanfar, D. (2012). Profitability in Swedish Micro-Firms: a quantile regression approach. International Business Research, 5(8), 94-106. https://doi.org/10.5539/ibr.v5n8p94
  • 38. Singh, H.P., Kumar, S., & Colombage, S. (2017). Working capital management and firm profitability: a meta-analysis. Qualitative Research in Financial Markets, 34-47. https://doi.org/10.1108/QRFM-06-2016-0018
  • 39. Sogorb-Mira, F. (2005). How SME uniqueness affects capital structure: Evidence from a 1994-1998 Spanish data panel. Small Business Economics, 25(5), 447-457. https://doi.org/10.1007/s11187-004-6486-8
  • 40. Srbinoska, D. (2018). Liquidity and profitability analysis of non-financial entities listed on the Macedonian Stock Exchange. Business and Management Horizons, 6(2), 34-46. https://doi.org/10.5296/BMH.V6I2.13723
  • 41. Węgrzyn, G. (2010). The service sector in Poland - significance and development prospects. Scientific works of the Wrocław University of Economics. Ekonomia, 139, 184-196. Retrieved from http://bazekon.icm.edu.pl/bazekon/element/bwmeta1.element.ekon-element-000171346009 on June 10, 2023.
  • 42. Yang, C.H., & Chen, K.H. (2009). Are small firms less efficient?. Small Business Economics, 32(4), 375-395. https://doi.org/10.1007/s11187-007-9082-x
  • 43. Yazdanfar, D. (2013). Profitability determinants among micro firms: evidence from Swedish data. International Journal of Managerial Finance, 9(2), 150-160.-76. https://doi.org/10.1108/17439131311307565
Typ dokumentu
Bibliografia
Identyfikator YADDA
bwmeta1.element.ekon-element-000171679457

Zgłoszenie zostało wysłane

Zgłoszenie zostało wysłane

Musisz być zalogowany aby pisać komentarze.
JavaScript jest wyłączony w Twojej przeglądarce internetowej. Włącz go, a następnie odśwież stronę, aby móc w pełni z niej korzystać.