Use of the Value Chain in the Process of Generating a Sustainable Business Strategy on the Example of Manufacturing and Industrial Enterprises in the Czech Republic

Jarmila Straková, Ismi Rajiani, Petra Pártlová, Jan Váchal and Ján Dobrovič
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Jarmila Straková: Faculty of Corporate Strategy, Department of Management, Institute of Technology and Business in České Budějovice, Okružní 517/10, 370 01 České Budějovice, Czech Republic
Ismi Rajiani: Faculty of Economics & Business, Department of Management, Universitas Muhammadiyah Gresik, Jl. Sumatra 101 Gresik, Jawa Timur 61121, Indonesia
Petra Pártlová: Faculty of Corporate Strategy, Department of Management, Institute of Technology and Business in České Budějovice, Okružní 517/10, 370 01 České Budějovice, Czech Republic
Jan Váchal: Faculty of Corporate Strategy, Department of Management, Institute of Technology and Business in České Budějovice, Okružní 517/10, 370 01 České Budějovice, Czech Republic
Ján Dobrovič: Faculty of Corporate Strategy, Department of Management, Institute of Technology and Business in České Budějovice, Okružní 517/10, 370 01 České Budějovice, Czech Republic

Sustainability, 2020, vol. 12, issue 4, 1-15

Abstract: This paper presents a method of generating a business strategy using value chain analysis. There were 186 manufacturing and industrial enterprises from the Czech Republic. The analysis was carried out using mathematical–statistical methods (dimensional reduction, logit regression and its transformation in order to objectify the opinion level of the managers) and with a neural network in terms of validation of the results of the mathematical–statistical methods. The aim was to determine the significance of different parts of the value chain in terms of their impact on the profitability of an enterprise and to demonstrate its important role in the process of generating business strategy. The significance for the profitability of the enterprises was statistically proven in the area of scientific and technological development, input logistics and human resource management. These parts were identified by the authors as the golden triangle of manufacturing and industry. Purchasing and output logistics were identified as the parts with a negative impact to the profitability of the enterprises. Strong underestimation of scientific and technological development by the top managers of the manufacturing and industrial enterprises is seen as a very negative finding. Neural networks showed higher statistical sensitivity compared to the mathematical–statistical methods (dimensional reduction and logit regression). They defined the value sector chain with the following structure (ranked from the highest degree of positive impact on the profitability of the enterprise): human resource management, scientific and technological development, production, input logistics, purchasing, material management, output logistics, enterprise infrastructure, marketing and sales, service and other supporting services. In conclusion, it is stated that the sector value chain of manufacturing and industrial enterprises will be further decomposed into value chain models of specific industries of the production and industry, such as engineering and construction, intended for direct use in different business entities to generate their unique value chains and corporate strategies.

Keywords: value chain; business strategy; profitability; competitiveness; sustainability; competitive advantage (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:4:p:1520-:d:322097

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