Analyzing Performance in Wholesale Trade Romanian SMEs: Framing Circular Economy Business Scenarios

Codruța Cornelia Dura, Ana Maria Mihaela Iordache, Alexandru Ionescu, Claudia Isac and Teodora Odett Breaz
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Codruța Cornelia Dura: Department of Economics, University of Petroșani, 332006 Petroșani, Romania
Ana Maria Mihaela Iordache: Department of Informatics, Statistics and Mathematics, Romanian—American University, 012101 Bucharest, Romania
Alexandru Ionescu: Department of Trade, Economic Integration and Business Administration, Romanian—American University, 012101 Bucharest, Romania
Claudia Isac: Department of Economics, University of Petroșani, 332006 Petroșani, Romania
Teodora Odett Breaz: Faculty of Economic Science, 1 Decembrie 1918 University, 510009 Alba Iulia, Romania

Sustainability, 2022, vol. 14, issue 9, 1-34

Abstract: The study analyzes the performance levels achieved by Romanian wholesaler SMEs from Hunedoara County and to advance some practical courses of action designed to support local entrepreneurs in improving efficiency and in embracing circular economy (CE) practices. We employed cluster and discriminant analyses with a focus on providing an accurate classification of trade SMEs, according to their performance. Three distinct classifications of SMEs resulted in: (i) a class of enterprises displaying high levels of the rates of return, whose business owners exhibited an increased risk appetite and applied investment policies focusing on future development by means of incorporating digital instruments; (ii) a class of SMEs displaying average levels of rates of return, which manage to survive in situations of crisis through maintaining the position previously gained on the market; and (iii) a class of SMEs exhibiting a precarious financial position and employing defensive strategies, with managers who are reluctant to take risks in the innovation processes. Furthermore, we present a cloud computing solution which was tailored for one of the companies from our sample that appeared to be the most likely to carry out the transition from the average SME performance class to the higher class. The main advantages that are brought about by the IT solution in terms of environmental sustainability consist of: improvements in energy efficiency, the decrease in carbon footprints, the lowering of operational costs and the diminishing of the amount of e-waste.

Keywords: SMEs; digitalization; circular economy; financial performance; COVID-19 pandemic; ODOO ERP; energy efficiency; carbon footprint; e-waste (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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