Determining the Performance Measurement of SME from Economic Value Added: Study on Hungary, Somogy County

Main Article Content

Devesh Singh
Zoltan Gal
Raqif Huseynov
Michał Wojtaszek

EVA (Economic Value Added) permits commercial businesses to figure out whether the business is operating in profit and the money can be put into effect into a more profitable source. A leading EVA is a sign that the company has a greater value. The goal of this study is to identify if SMEs' actions carried out on a daily basis are able to generate economic value added for their business. The study is based on a comparative study between Hungary and 28 EU countries. The study is carried out in Hungary’s region of Somogy county. First, the variables for research were created and research was carried out at ground level. The research used the Expletory Factor analysis method to find EVA determinants. The results showed that determinants work together to reshape the regional industrial growth. The research demonstrated that finance and sluggish production are the major determinants in Somogy county. Entrepreneurs' skills and finance have the major impact, which means that to achieve a high growth in SMEs, policy makers have to solve these two problems and make the policy concentric toward finance and high skill development problem.

Article Details

Jak cytować
Singh, D., Gal, Z., Huseynov, R., & Wojtaszek, M. (2018). Determining the Performance Measurement of SME from Economic Value Added: Study on Hungary, Somogy County. Zeszyty Naukowe SGGW W Warszawie - Problemy Rolnictwa Światowego, 18(2), 270–279.

Bahri, M., St-Pierre, J., Sakka, O. (2010). Economic value added:a useful tool for SME performance management. International Journal of Productivity and Performance Management, 60(6), 603-621. (Crossref)

Bartel, A. (1994). Productivity gains from the implementation of employee training programs. Industrial Relations, 33(4), 411-425. (Crossref)

Garengo, P., Biazzo, S. Bititci, U.S. (2005). Performance measurement systems in SMEs:a review for a research agenda. International Journal of Management Reviews, 7(1), 25-47. (Crossref)

Girotra, A., Yadav, S.S. (2001). Economic Value Added (EVA): A new flexible tool for measuring corporate performance. Global Journal of Flexible Systems Management, 2(1), 7-18.

Günther, T., Landrock, B., Muche T. (2000). Genwing versus Unternehmenswertorientierte performance - Eine Empirische Untersuchung auf Basis der Korrelation von Kapitalmarktrenditen für die Deutsche DAX-100 - Unternehmen (Profit versus Value Based Performance Measures. An Empirical Investigation Based on the Correlation with Capital Market for German DAX-100 Companies). Controlling, 1(2), 69-75, 2(3), 129-134.

Hussein, M., Gunasekaran, A., Laitinen, E.K. (1998). Management accounting system in Finnish service firms. Technovation, 18, 57-67 (Crossref)

Petrescu, S., Apostol, C. (2009). Value Creation Analysis. Economic Value Added. Theoretical

and Applied Economics, 5 (sup.), 118-123.

Porter, M.Y., Kramer, M.K. (2002). The competitive advantage of corporate philanthropy. Harvard Business Review, 80(12), 55-69.

Sharma, A.K., Kumar, S. (2010). Economic Value Added (EVA) - Literature Review. International Journal of Economics and Finance, 2(2), pp. 200-221. (Crossref)

Stern, J.M., Stewart, G.B. and Chew, D.H. (1998). “The EVA financial management system”,The Revolution in Corporate Finance, 3rd ed., Blackwell Publishers, Oxford.

Stewart, G.B. (1990). The Quest for Value: the EVA management guide, Harper Business, New York.

Szeleny, I. (1988). Socialist Entrepreneurs. Embourgeoisement in Rural Hungary. Madison, WI: University of Wisconsin Press.

Kim, J. (1999). The relaxation of financing constraints by the initial public offering of small manufacturing firms. Small Business Economics, 12(3), 191-202. (Crossref)



Download data is not yet available.