Enterprise performance indicators and their use for strategic management – empirical evidence in globalized word

University of West Bohemia, Faculty of Economics, Department of Business Administration and Management, Univerzitní 8, 301 00 Plzeň, Czech Republic

^* Corresponding author: mnosk@kpm.zcu.cz

Abstract

Research background: Indicators of enterprise performance has been globally discussed for decades. There are many ways to assess the performance of enterprises, some are general, and some are specifically tailored for enterprise’s needs. Yet, this issue can be seen from other, empirical perspective: what aspects (indicators and their values) should enterprises focus on, in order to improve their performance in globalized word.

Purpose of the article: The aim of this article is to examine the set of indicators (i.e. their values) in order to find out which ones can affect the performance indicators, thus the enterprise performance itself. This finding could help the enterprise´s management with strategic decisions regarding future objectives.

Methods: This research adopted quantitative approach based on the analysis of dataset downloaded from Albertina – Gold edition. Twelve selected indicators describing 2 338 enterprises are statistically tested in order to accept or reject the hypothesis of their statistical interdependence towards selected performance indicators (ROE, ROS).

Findings & Value added: The findings of this preliminary research indicate that there are few indicators (such as Total Debt or Working Capital), which correlate with performance indicators. These results are presented and discussed in the paper, together with the possible future research.