Acta Univ. Agric. Silvic. Mendelianae Brun. 2013, 61(7), 2867-2873 | DOI: 10.11118/actaun201361072867

Using a base of simplified financial plan for determination innovations' economic effect in small and medium-sized enterprises

Jakub Tabas, Michaela Beranová
Department of Business Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic

Currently, innovations seem to be a crucial process in companies in order to at least maintain or even improve their competitiveness. Strengthening global competition puts the stress on continual improvements in every sphere of business entity's activities. This way, innovations are the almost only tool to maintain customers, subsequently to keep the place on a market or the market share, and then to sustain the financial performance of a company.
It means that effect of innovations is closely connected with the financial performance of a business entity that can be measured with various methods or approaches while the financial analysis ratios are supposed to be basic ones. In order to interpret the results of these financial ratios, different bases are used when the base of financial plan is one of them.
The objective of this article is to determine the economic effect of innovations on financial performance of small and medium-sized enterprises in the Czech Republic on the base of simplified financial plan. Obviously, starting-point of the financial plan preparation is the plan of sales. Sales represent one of the company's value generators, and sales projection is constituted as basis of authors' approach to determination of effect of innovations on financial performance of business entities while basic categorization of companies according to the business branch (CZ NACE), sphere of innovation and innovation's degree is applied.

Keywords: financial performance, financial plan, innovation, sales, SMEs
Grants and funding:

This paper is the outcome of the project IGA PEF MENDELU: Verifikace modelu hodnocení ekonomického efektu inovací v kontextu výkonnosti malých a středních podniků v ČR (No. 36/2012).

Received: April 11, 2013; Published: December 24, 2013  Show citation

ACS AIP APA ASA Harvard Chicago IEEE ISO690 MLA NLM Turabian Vancouver
Tabas, J., & Beranová, M. (2013). Using a base of simplified financial plan for determination innovations' economic effect in small and medium-sized enterprises. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 61(7), 2867-2873. doi: 10.11118/actaun201361072867
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. AUDRETCH, D. B., 2001: Research Issues Relating to Structure, Competition, and Performance of Small Technology-Based Firms. Small Business Economics, 16, 1: 37-51. ISSN 1573-0913. DOI: 10.1023/A:1011124607332 Go to original source...
    2. AVERMAETE, T. et al., 2003: Determinants of innovation in small food firms. European Journal of Innovation Management, 6, 1: 8-17. ISSN 1460-1060. DOI: 10.1108/14601060310459163 Go to original source...
    3. BERANOVÁ, M., MARTINOVIČOVÁ, D., 2010: Application of the theory of decision making under risk and uncertainty at modelling of costs. Agricultural Economics - Zemědělská ekonomika, 56, 5: 201-208. ISSN 0139-570X. DOI: 10.17221/88/2009-AGRICECON Go to original source...
    4. BHASKARAN, S., 2006: Incremental Innovation and Business Performance: Small and Medium-Size Food Enterprises in Concentrated Industry Environment. Journal of Small Business Management, 44, 1: 64-80. ISSN 1540-627X. DOI: 10.1111/j.1540-627X.2006.00154.x Go to original source...
    5. COHEN, W. M., KLEPPER, S., 1996: Firm size and the nature Innovation within industries: the case of process a product R&D. The Review of Economics and Statistics, 78, 2: 232-243. ISSN 1530-9142. DOI: 10.2307/2109925 Go to original source...
    6. DVOŘÁK, J., 2009: Evaluace inovací, jejich bariéry a faktory úspěšnosti. In: Podnikanie a konkurenceschopnost firiem 2009. I. d. Bratislava: Ekonomická univerzita v Bratislavě, 25-30. ISBN 978-80-225-3738-5.
    7. FORSMAN, H., RANTENEN, H., 2011: Small manufacturing and service enterprises as innovators: a comparison by size. European Journal of Innovation Management, 14, 1: 27-50. ISSN 1460-1060. DOI: 10.1108/14601061111104689 Go to original source...
    8. GURKOV, I., 2005: Innovations in Russian Industries: Conditions for Implementation and Impact on Competitiveness. Journal for East European Management Studies, 10, 3: 218-246. ISSN 1862-0019. DOI: 10.5771/0949-6181-2005-3-218 Go to original source...
    9. HAUSCHILDT, J., 2004: Innovations management. München: Vahlen, pp. 600. ISBN 978-38006-3075-2.
    10. JOHANNESSAN, J. A. et al., 2001: Innovation as newness: What Is New, How New, and New to Whom? European Journal of Innovation Management, 4, 1: 20-31. ISSN 1460-1060. DOI: 10.1108/14601060110365547 Go to original source...
    11. JURČÍK, R., 2007: The economic impact of the EC procurement policy. Agricultural Economics - Zemědělská ekonomika, 53, 7: 333-337. ISSN 0139-570x. Go to original source...
    12. KOTABE, M., SWAN, K. S., 1995: The Role of Strategic Alliance in High Technology New Product Development. Strategic Management Journal, 16, 8: 621-636. ISSN 1097-0266. DOI: 10.1002/smj.4250160804 Go to original source...
    13. MAREK, P. et al., 2009: Studijní průvodce financemi podniku. 2nd ed. Praha: Ekopress, pp. 634. ISBN 978-80-86929-49-1.
    14. NAVER, J. C., SLATER, S. F., 1990: The Effect of a Market Orientation on Business Profitability. Journal of Marketing, 54, 4: 20-35. ISSN 0022-2429. DOI: 10.2307/1251757 Go to original source...
    15. OKSANEN, J., RILLA, N., 2009: Innovation and Entrepreneurship: New Innovations as Source for Competitiveness in Finnish SMEs. International Journal of Entrepreneurship, 13, Spec. Is.: 35-48. ISSN 1939-4675
    16. Regulation No. 500/2002 which explains some rules given by the Accounting Law No. 563/1991, as amended.
    17. SCHUMPETER, J. A., 1934: Theory of Economic Development. Cambridge: Harvard University Press, Mass. 255. ISBN 9780674879904.
    18. TABAS, J., BERANOVÁ, M., MARTINOVIČOVÁ, D., 2012: Influence of Product Innovations on Financial Performance of Small and Medium-sized Enterprises in the Czech Republic. Acta Univ. Agric. et Silvic. Mendel. Brun., 60, 7: 409-414. ISSN 1211-8516. DOI: 10.11118/actaun201260070409 Go to original source...
    19. TABAS, J., BERANOVÁ, M., POLÁK, J., 2012: Evaluation of innovation processes. Acta Univ. Agric. et Silvic. Mendel. Brun., 60, 2: 523-532. ISSN 1211-8516. DOI: 10.11118/actaun201260020523 Go to original source...
    20. TABAS, J., POLÁK, J., BERANOVÁ, M., 2010: Evaluation of approaches to definition of innovations. Acta Univ. Agric. et Silvic. Mendel. Brun., 58, 6: 563-570. ISSN 1211-8516. DOI: 10.11118/actaun201058060563 Go to original source...
    21. VERHEES, F. J. H. M., MEULENBERG, M. T. G., 2004: Market Orientation, Innovativeness, Product Innovation, and Performance in Small Firms. Journal of Small Business Management, 42, 2: 134-154. ISSN 1540-627X. DOI: 10.1111/j.1540-627X.2004.00102.x Go to original source...
    22. WRIGHT, R. S., 2012: Why Innovations are Arguments. MIT Sloan Management Review, 53, 3: 95-97. ISSN 1532-9194.

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content