Innovation of the production process of engineering companies
in relation to business portfolio

TALÍŘ, Milan and Jarmila STRAKOVÁ. Innovation of the production process of engineering companies in relation to business portfolio. Entrepreneurship and Sustainability Issues. Vilnius,Litva: Entrepreneurship and Sustainability Center, 2023, vol. 10, No 4, p. 118-134. ISSN 2345-0282.

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TY  - JOUR
ID  - 68381
AU  - Talíř, Milan - Straková, Jarmila
PY  - 2023
TI  - Innovation of the production process of engineering companies in relation to business portfolio
JF  - Entrepreneurship and Sustainability Issues
VL  - 10
IS  - 4
SP  - 118-134
EP  - 118-134
PB  - Entrepreneurship and Sustainability Center
SN  - 23450282
KW  - strategic management
KW  - innovation
KW  - industry
KW  - production process
KW  - BTAS
UR  - https://ideas.repec.org/a/ssi/jouesi/v10y2023i4p118-134.html
N2  - The paper is aimed at the innovation process in the context of the business portfolio of micro-enterprises. This type of companies is typical of and prevalent in the southern region of the Czech Republic, and the presented conclusions have general validity. A newly developed method of assessing the innovative technological potential of enterprises called "Business technology assessment system" (BTAS), with the contribution of "Criteria analysis of systems". The research answers the question, what economic efficiency can innovations in the production process bring to SMEs dealing with custom manufacturing in the engineering sector. Technological backwardness including corporate infrastructure was proven. Companies compensate for this shortcoming by an increased focus on satisfying customer needs and a high degree of flexibility and innovation in production. From the point of view of production processes, there is a high degree of interconnectedness between individual operations and sub-processes. The business portfolio of most of these companies is disproportionately broad, and this is reflected in the negative findings in terms of the disproportionate number of methods and technologies that these companies possess, but do not fully utilize. Such behaviour of the companies can be explained by the absence of active creation and updating of business strategy. The economic evaluation of the innovative process (BTAS) proved that the very implementation of innovations did not lead to a major increase in the profit margin. The situation was different when evaluating the benefits of the digitization process, which brought an increase in sales and corporate margins. A completely new finding has been demonstrated, i.e., if a company has unused equipment which brings opportunity costs as well, it is possible to create space for innovation by removing it, and at the same time the sale of equipment can be a significant financial contributor to innovation.
ER  -

Basic information
Original name	Innovation of the production process of engineering companies in relation to business portfolio
Authors	TALÍŘ, Milan and Jarmila STRAKOVÁ.
Edition	Entrepreneurship and Sustainability Issues, Vilnius,Litva, Entrepreneurship and Sustainability Center, 2023, 2345-0282.

Other information
Original language	English
Type of outcome	Article in a journal
Field of Study	50204 Business and management
Country of publisher	Lithuania
Confidentiality degree	is not subject to a state or trade secret
WWW	URL
Organization unit	Institute of Technology and Business in České Budějovice
Keywords (in Czech)	strategické řízení; inovace; průmysl; produkční proces; BTAS
Keywords in English	strategic management; innovation; industry; production process; BTAS
Tags	NE_STM_a
Changed by	Changed by: Barbora Kroupová, učo 25655. Changed: 18/7/2023 14:23.

Abstract

The paper is aimed at the innovation process in the context of the business portfolio of micro-enterprises. This type of companies is typical of and prevalent in the southern region of the Czech Republic, and the presented conclusions have general validity. A newly developed method of assessing the innovative technological potential of enterprises called "Business technology assessment system" (BTAS), with the contribution of "Criteria analysis of systems". The research answers the question, what economic efficiency can innovations in the production process bring to SMEs dealing with custom manufacturing in the engineering sector. Technological backwardness including corporate infrastructure was proven. Companies compensate for this shortcoming by an increased focus on satisfying customer needs and a high degree of flexibility and innovation in production. From the point of view of production processes, there is a high degree of interconnectedness between individual operations and sub-processes. The business portfolio of most of these companies is disproportionately broad, and this is reflected in the negative findings in terms of the disproportionate number of methods and technologies that these companies possess, but do not fully utilize. Such behaviour of the companies can be explained by the absence of active creation and updating of business strategy. The economic evaluation of the innovative process (BTAS) proved that the very implementation of innovations did not lead to a major increase in the profit margin. The situation was different when evaluating the benefits of the digitization process, which brought an increase in sales and corporate margins. A completely new finding has been demonstrated, i.e., if a company has unused equipment which brings opportunity costs as well, it is possible to create space for innovation by removing it, and at the same time the sale of equipment can be a significant financial contributor to innovation.

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Innovation of the production process of engineering companies in relation to business portfolio

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