Export risk perceptions of SMEs in selected Visegrad countries

• Authors: Aleksandr Ključnikov , Mehmet Civelek , Cyril Klimeš , Radim Farana

Abstracts

EN

Research background: Export activities are crucial for SMEs' growth and income since they enable businesses to expand abroad. However, SMEs encounter some export impediments, including legislative, tax-related, and cultural-linguistic differences, which increase their export risk. Moreover, since different legislative, tax-related, and cultural conditions affect SMEs' export activities, SMEs' perceptions regarding export obstacles might also differ. Purpose of the article: This paper aims to determine whether the SMEs' perceptions of export barriers in selected Visegrad countries differ. Methods: The researchers employ a random sampling method to create the research sample and create an Internet-mediated questionnaire to collect the re-search data, including 408 SMEs from the Czech Republic, Slovakia, and Hungary. The researchers ran ANOVA analyses with the Gabriel Post Hoc test to find differences between those SMEs. Findings & value added: The results reveal that the perceptions of Czech and Slovak SMEs differ regarding legislative and tax-related export barriers. On the other hand, the perceptions of SMEs from various countries do not differ concerning cultural-linguistic export barriers. Unfortunately, there is a lack of studies comparing the perceptions of SMEs from Visegrad countries regarding legislative, tax-related, and cultural barriers. Thus, evaluating this topic from an international perspective brings novel findings and fills this research gap. Therefore, policymakers, SMEs, governments, public institutions, and academicians might gain benefits from the results of this unique research.

Keywords

EN

export risk; legislative differences; tax-related differences; cultural-linguistic differences; Visegrad countries

• Publisher: Instytut Badań Gospodarczych
• Journal: Equilibrium. Quarterly Journal of Economics and Economic Policy
• Year: 2022
• Volume: 17
• Issue: 1
• Pages: 173-190

Dates

published

2022

Contributors

author

Aleksandr Ključnikov

• University of Entrepreneurship and Law in Ostrava

• https://orcid.org/0000000303502658

author

Mehmet Civelek

• University of Entrepreneurship and Law in Ostrava

• https://orcid.org/0000000212475308

author

Cyril Klimeš

• Mendel University in Brno

• https://orcid.org/0000000195455195

author

Radim Farana

• Mendel University in Brno

• https://orcid.org/0000000219304560

References

• Alrashidi, Y. A. (2017). SMEs decision-makers' culture characteristics and risk perception associated with exporting. European Journal of Business and Management, 9(27), 68?82.
• Arteaga-Ortiz, J., Ramírez, A., & Martel, M. J. (2016). Export barriers perceived as a function of the destination market. In Economics and management 2016: ICEM?2016: 21st international scientific conference. Brno: Brno University of Technology, 586?594.
• Belas, J., Amoah, J., Kliuchnikava, Y., & Bilan, Y. (2020a). Selected factors of SMEs management in the service sector. Journal of Tourism and Services, 21(11), 129?146. doi: 10.29036/jots.v11i21.215.
• Belas, J., Gavurova, B., Cepel, M., & Kubak, M. (2020b). Evaluation of economic potential of business environment development by comparing sector differences: perspective of SMEs in the Czech Republic and Slovakia. Oeconomia Copernicana, 11(1), 135?159. doi: 10.24136/oc.2020.006.
• Bilan, Y., Gavurova, B., Stanislaw, G., & Tkacova, A. (2017). The composite coincident indicator (CCI) for business cycles. Acta Polytechnica Hungarica, 14(7), 71?90. doi:10.12700/aph.14.7.2017.7.5.
• Buno, M., Nadanyiova, M., & Hraskova, D. (2015). The comparison of the quality of business environment in the countries of Visegrad group. Procedia Economics and Finance, 26, 423?430. doi: 10.1016/S2212-5671(15)00826-6.
• Carbaugh, R. (2005). International economics. Thomson Southwestern.
• Čepel, M., Stasiukynas, A., Kotaskova, A., & Dvorský, J. (2018). Business environment quality index in SME segment. Journal of Competitiveness, 10(1), 21?40. doi: 10.7441/joc.2018.02.02.
• Civelek, M., Ključnikov, A., Dobrovič, J., & Hudáková, M. (2016). A model of measurement of the quality of business environment in SME segment. Journal of International Studies, 9(2), 90?102. doi: 10.14254/2071-8330.2016/9-2/6.
• Civelek, M., Ključnikov, A., Fialova, V., Folvarčná, A., & Stoch, M. (2021). How innovativeness of family-owned SMEs differ depending on their characteristics? Equilibrium. Quarterly Journal of Economics and Economic Policy, 16(2), 413?428. doi: 10.24136/eq.2021.015.
• Cooney, T. M., Ratcliffe, A., & Silver, J. A. (2009). Supporting value creation by reducing cultural distance as a barrier to exporting. International Journal of Entrepreneurial Venturing, 1(2), 205?219.
• Dvorský, J., Petráková, Z., & Polách, J. (2019). Assessing market, financial, economic risk sources by czech and slovak SMEs. International Journal of Entrepreneurial Knowledge, 7(2), 30?40. doi:10.12345-0008.
• Dvorský, J., Petráková, Z., Ajaz Khan, K., Formánek, I., & Mikoláš, Z. (2020a). Selected aspects of strategic management in service sector. Journal of Tourism and Services, 20(11), 109?123. doi: 10.29036/jots.v11i20.146.
• Dvorský, J., Petráková, Z., & Fialová, V.(2020b). Perception of business risks by entrepreneurs. International Journal of Entrepreneurial Knowledge, 8(1), 76?88. doi: 10.37335/ijek.v8i1.104.
• Dvorský, J., Belas, J. Jr., Cera, G.,& Bilan, S. (2021). Disparities in perception of business risks in connection with achieved education of the owner/manager and doing business. International Journal of Entrepreneurial Knowledge, 9(1), 25?40. doi: 10.37335/ijek.v9i1.123.
• Éltető, A., & Udvari, B. (2018). Factors influencing the export of Hungarian SMEs. International Journal of Export Marketing, 2(2), 104?124. doi: 10.1504/ IJEXPORTM.2018.096769.
• European Commission (2014). Supporting the internationalisation of SMEs. Retrieved form https://op.europa.eu/en/publication-detail/-/publication/dd69f968- fea2-4034-90d5-7a648574618f.
• European Commission, SBA fact sheet (2019). Retrieved from: https://ec.europa.eu/docsroom/documents/38662/attachments/14/translations/en/renditions/native.
• Fedorko, I., Bačík, R., & Gavurová, B. (2018). Technology acceptance model in e-commerce segment. Management & Marketing, 13, 1242?1256. doi: 10.2478/m mcks-2018-0034.
• Feng, H., & Viksne, K. (2016). Exploring the obstacles of Latvian food companies export to china. European Integration Studies, 10, 114?124. doi: 10.5755/j01.ei s.0.10.14637.
• Gavurova, B., Belas, J., Bilan, Y., & Horak, J. (2020a). Study of legislative and administrative obstacles to SMEs business in the Czech Republic and Slovakia. Oeconomia Copernicana, 11(4), 689?719. doi: 10.24136/oc.2020.028.
• Gavurova, B., Ivankova, V., Rigelsky, M., & Přívarová, M. (2020b). Relations between tourism spending and global competitiveness ? an empirical study in developed OECD countries. Journal of Tourism and Services, 21(11), 38?54. doi: 10.29036/jots.v11i21.175.
• Gavurova, B., Packova, M., Misankova, M., & Smrcka, L. (2017). Predictive potential and risks of selected bankruptcy prediction models in the Slovak business environment. Journal of Business Economics and Management, 18(6), 1156?1173. doi: 10.3846/16111699.2017.1400461.
• Hofstede (2021). Compare counties. Retrieved from https://www.hofstede-insights.com/product/compare-countries/.
• Hofstede, G., Hofstede, G. J., & Minkov, M. (2010). Cultures and organizations: software of the mind-intercultural cooperation and its importance for survival. McGraw-Hill.
• Kaprálová, B. (2017). Export barriers in Latin America according to Czech companies. Scientific papers of the University of Pardubice. Series D, Faculty of Economics and Administration, 41, 87?98.
• Kaputa, V., Paluš, H., & Vlosky, R. (2016). Barriers for wood processing companies to enter foreign markets. European Journal of Wood Products, 74(1), 109?122. doi: 10.1007/s00107-015-0954-5.
• Korneliussen, T., & Blasius, J. (2008). The effects of cultural distance, free trade agreements, and protectionism on perceived export barriers. Journal of Global Marketing, 21(3), 217?230. do?: 10.1080/08911760802152074.
• Khan, K. A., Çera, G., & Nétek, V. (2019). Perception of the selected business environment aspects by service firms. Journal of Tourism and Services, 10(19), 111?127. doi: 10.29036/jots. v10i19. 115.
• Ključnikov, A., Civelek, M., Fialova, V., & Folvarčná, A. (2021). Organizational, local, and global innovativeness of family-owned SMEs depending on firm-individual level characteristics: evidence from the Czech Republic. Equilibrium. Quarterly Journal of Economics and Economic Policy, 16(1). 169?184. doi: 10.24136/eq.2021.006.
• Kneller, R., & Pisu, M. (2011). Barriers to exporting: what are they and who do they matter to? World Economy, 34(6), 893?930. doi: 10.1111/j.1467-9701.2 011.01357.x.
• Kreiser, P. M., Marino, L. D. , Dickson, P., & Weaver, K. M. (2010). Cultural influences on entrepreneurial orientation: the impact of national culture on risk taking and proactiveness in SMEs. Entrepreneurship Theory and Practice, 34(5), 959?984. doi: 10.1111/j.1540-6520.2010.00396.x.
• Kristjánsdóttir, H., Gu?laugsson, ?. Ö., Gu?mundsdóttir, S., & A?alsteinsson, G. D. (2017). Hofstede national culture and international trade. Applied Economics, 49(57), 5792?5801. doi: 10.1080/00036846.2017.1343446.
• Leonidou, L. C. (2004). An analysis of the barriers hindering small business export development. Journal of Small Business Management, 42(3), 279?302. doi: 10.1111/j.1540-627X.2004.00112.x.
• Lobo, C. A., Fernandes, C. I., Ferreira, J. J., & Peris-Ortiz, M. (2020). Factors affecting SMEs' strategic decisions to approach international markets. European Journal of International Management, 14(4), 617?639. doi: 10.1504/ EJIM.2020.107607.
• Martinez, M. G., & Ba?ados, F. (2004). Impact of EU organic product certification legislation on Chile organic exports. Food Policy, 29(1), 1?14. doi: 10.1016/j.f oodpol.2004.01.001.
• Morgan, R. E., & Katsikeas, C. S. (1997). Obstacles to export initiation and expansion. Omega, 25(6), 677?690. doi: 10.1016/S0305-0483(97)00035-2.
• Narayanan, V. (2015). Export barriers for small and medium-sized enterprises: a literature review based on Leonidou's model. Entrepreneurial Business and Economics Review, 3(2), 105?123. doi: 10.15678/EBER.2015.030208.
• OECD (2015). Taxation of SMEs in OECD and G20 countries, OECD tax policy studies. Paris: OECD.
• OECD (2020). Financing SMEs and entrepreneurs 2020 an OECD scoreboard. Retrieved from https://www.oecd-ilibrary.org/docserver/061fe03d-en.pdf? expires=1589570033&id=id&accname=guest&checksum=4413403B0B2B1A261885BFD6AC8874D7.
• Pavlák, M. (2018). Barriers to the internationalization of Czech SMEs. European Research Studies Journal, 21(2), 453?462.
• Pinho, J. C., & Martins, L. (2010). Exporting barriers: insights from Portuguese small- and medium-sized exporters and non-exporters. Journal of International Entrepreneurship, 8, 254?272. doi: 10.1007/s10843-010-0046-x.
• Polak, J. (2019). Determining probabilities for commercial risk model of Czech exports to China with respect to cultural differences and financial management. Journal of Competitiveness, 11(3), 109?127. doi: 10.7441/joc.2019.03.07.
• Sanusi, K. A., Meyer, D., & Ślusarczyk, B. (2017). The relationship between changes in inflation and financial development. Polish Journal of Management Studies, 16(2), 253?265 doi: 10.17512/pjms.2017.16.2.22.
• Schröder, P. J., & S?rensen, A. (2014). A welfare ranking of multilateral reductions in real and tariff trade barriers when firms are heterogenous. Review of International Economics, 22(3), 423?443. doi: 10.1111/roie.12122.
• Sinicakova, M., & Gavurova, B. (2017). Single monetary policy versus macroeconomic fundamentals in Slovakia. Ekononomický časopis, 65(2), 158?172.
• Stefko, R., Bacik, R., Fedorko, R., Gavurova, B., Horvath, J., & Propper, M. (2017). Gender differences in the case of work satisfaction and motivation. Polish Journal of Management Studies, 16(1), 215?225. doi: 10.17512/pjms.20 17.16.1.18.
• Tan, A., Brewer, P., & Liesch, P. (2018). Rigidity in SME export commencement decisions. International Business Review, 27(1), 46?55. doi: 10.1016/j.ibusrev. 2017.05.002.
• Tee, E., Boadi, L., & Opoku, R. (2016). The effect of tax payment on the performance of SMEs: the case of selected SMEs in Ga West municipal assembly. European Journal of Business and Management, 8(20), 119?125.
• Uner, M. M., Kocak, A., Cavusgil, E., & Cavusgil, S. T. (2013). Do barriers to export vary for born globals and across stages of internationalization? An empirical inquiry in the emerging market of Turkey. International Business Review, 22(5), 800?813. doi: 10.1016/j.ibusrev.2012.12.005.
• Virglerova, Z., Khan, M. A., Martinkute-Kauliene, R., & Kovács, S. (2020a). The internationalization of SMEs in Central Europe and its impact on their methods of risk management. Amfiteatru Economic, 22(55), 792?807. doi: 10.24818/EA /2020/55/792.
• Virglerova, Z., Kliestik, T., Rowland, Z., & Rozsa, Z. (2020b). Barriers to internationalization of smes in visegrad countries. Transformations in Business & Economics, 19(3), 58?73.
• Virglerova, Z., Ivanova, E., Dvorsky, J., Belas, J., & Krulický, T. (2021). Selected factors of internationalisation and their impact on the SME perception of the market risk. Oeconomia Copernicana, 12(4), 1011?1032. doi: 10.24136/oc.202 1.033.
• Wach, K. (2015). Impact of cultural and social norms on entrepreneurship in the EU: cross-Country evidence based on gem survey results. Zarządzanie w Kulturze, 16(1), 15?29. doi: 10.4467/20843976ZK.15.002.3037.

Identifiers

DOI

10.24136/eq.2022.007

Biblioteka Nauki

22444280