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Original scientific paper

https://doi.org/10.1080/1331677X.2018.1552176

System dynamics model of crises in small and medium enterprises

Viktor Vojtko ; Faculty of Economics, Czech Republic, Department of Trade and Tourism, University of South Bohemia in Ceske Budejovice, Czech Republic
Ladislav Rolínek orcid id orcid.org/0000-0003-2587-8226 ; Faculty of Economics, Czech Republic, Department of Management, University of South Bohemia in Ceske Budejovice
Miroslav Plevný orcid id orcid.org/0000-0003-4774-0877 ; Faculty of Economics, Czech Republic, Department of Economics and Quantitative methods, University of West Bohemia in Pilsen, Plzen, Czech Republic


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Abstract

The article aims to improve existing theories of business development and crisis management with a special emphasis on inner dynamics of crises in small and medium enterprises (S.M.E.s). For these purposes, combined perspectives of system dynamics, company life cycles, crisis management, resilience and business continuity management in S.M.E.s have been used. Based on data of about 554 crises from 183 companies collected in the Czech Republic, the most common crises types and their combinations have been identified using association rules mining method. Then, a simulation system dynamics model synthesizing the main findings and allowing scenario analysis to explain and avoid some of the crises in S.M.E.s has been developed for a case study of manufacturing company. Such a simulation model enriches the present knowledge and explains complex dynamics of crises in S.M.E.s in a novel way. When properly calibrated, this model could be used as a supporting tool for decision-making in manufacturing S.M.E.s.

Keywords

small and medium enterprises (S.M.E.); crisis; business management; system dynamics model; simulation modelling

Hrčak ID:

228565

URI

https://hrcak.srce.hr/228565

Publication date:

22.1.2019.

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