Original scientific paper
https://doi.org/10.1080/1331677X.2021.2010111
Model of business risks and their impact on operational performance of SMEs
Zuzana Virglerova
Marija Panic
Danijela Voza
Milica Velickovic
Abstract
Risks can negatively affect not only internal processes within a
company and business results but also managerial decisions. One
of the preconditions for sound decision-making would be the
identification of specific risks. The primary goal of this paper is to
create a structural model for exploring the interrelationships
among sources of business risks and the operational performance
of SMEs. A survey was conducted in 1,781 SMEs from selected
Central European countries. CFA (Confirmatory Factor Analysis)
was used to check the reliability and validity of the model. The
Cronbach’s alpha test was used to assess the internal consistency
of data collection instruments. For measurement of sample
adequacy, Kaiser-Meyer-Olkin (KMO) test was used. The model
presented in this paper provides a tool for identifying the interrelationships among sources of business risks, operational performance and the market position. The model can help managers of
SMEs focus on specific areas of their business that should not be
ignored in decision-making processes.
Keywords
Business environment; entrepreneurship; market position; decision-making; business risk
Hrčak ID:
302689
URI
Publication date:
31.3.2023.
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