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Source: Journal Citation ReportsTM from ClarivateTM 2022

Entrepreneurship and Sustainability Issues Open access
Journal Impact FactorTM (2022) 1.7
Journal Citation IndicatorTM (2022) 0.42
Received: 2022-12-04  |  Accepted: 2023-03-21  |  Published: 2023-03-30

Title

Riskiness of value-creating corporate activities and their influence on strategic management of engineering companies


Abstract

This paper presents a procedure for definition and analysis of value-creating corporate activities on an example of a selected engineering company and a newly proposed calculation of riskiness of the production process. The risk calculation is based on an analysis of the value chain or value stream of its primary activities. Three research questions were formulated within the framework of the solution concerning differentiation of the value stream in serial and custom production, significance of individual primary processes for creation of the corporate margin and differentiation of the degree of risk between serial and custom production. The obtained outputs from the model engineering enterprise showed that the intensity of added value creation is lower in serial production than in custom production. In terms of the importance of the primary activities for serial and custom production in the value chain, the production process can be considered dominant from the viewpoint of margin generation, followed by the technical preparation process. In addition to the already mentioned reduced level of generation of added value, the lower average riskiness of the production process was also found for serial production compared to custom production. The graphical presentation at the end of the paper suggests a correlation between the level of added value creation in partial production operations and their respective level of risk. The authors of the article assume that the presented results have general validity for engineering production enterprises, which will be the subject of follow-up case studies on similar topics.


Keywords

value chain, value stream, process added value, riskiness of production process


JEL classifications

G32 , L11 , L23


URI

http://jssidoi.org/jesi/article/1073


DOI


Pages

383-398


Funding

This research was funded as a part of an internal research competition at the department of management for 2022 entitled: "The importance of quality and innovation benefits for creating and increasing added value in business processes". PID: IVSUPS002. This research was funded by and participates in the project of the Technology Agency of the Czech Republic: "Optimization of management in made-to-order piece production in real time with the use of IoT and digital technologies". PID: FW01010460.

This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Straková, Jarmila
Institute of Technology and Business in České Budějovice, České Budějovice, Czech Republic https://www.vstecb.cz
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Kollmann, Jaroslav
Institute of Technology and Business in České Budějovice, České Budějovice, Czech Republic https://www.vstecb.cz
University of Žilina, Žilina, Slovakia https://www.uniza.sk
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Kostiuk, Yaroslava
Institute of Technology and Business in České Budějovice, České Budějovice, Czech Republic https://www.vstecb.cz
University of Žilina, Žilina, Slovakia https://www.uniza.sk
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Palinchak, Mykola
Uzhhorod National University, Uzhhorod, Ukraine https://www.uzhnu.edu.ua
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Černák, Filip
University of Prešov, Prešov, Slovakia http://www.unipo.sk
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Journal title

Entrepreneurship and Sustainability Issues

Volume

10


Number

3


Issue date

March 2023


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 1294  |  PDF downloads: 480

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