Objective: To identify the Management Excellence Factors (MEFs) and the degree of management maturity, productivity and competitiveness associated with the financial performance of Micro and Small Enterprises (MSEs) in the city of Barretos (SP), Brazil.
Methodology: The research is quantitative and explores two databases of the MPEs: i) Documentary: Registration of the Brazilian Micro and Small Business Support Service (SEBRAE) of Barretos; ii) Survey: Application of the MEG questionnaire from the National Quality Foundation (FNQ). A descriptive data analysis from 200 MSEs belonging to different segments (Services, Industry, Commerce and Civil Construction) and statistical tests (Chi-square tests of Independence and Binary Logistic Regression) are carried out using the software Minitab®.
Relevance: The mortality of MSEs before four years of age is close to 77.9% in Brazil. However, MSEs represent around 93.6% of the private companies in Brazil. The literature, to understand the MEFs of MSEs, has used the “World Class” Management Excellence Model (MEG). However, few studies use MEGs to analyze the impact of managerial factors on the performance of MSEs. This research addresses this gap by delving deeper into understanding the application of MEGs and their relationships with the financial performance of SMEs.
Main results: The statistical analysis shows that the factors “People”, “Processes” and “Leadership and Innovation” have a positive impact on the MSEs’ financial performance (p-value < 0.05). Furthermore, the main sociodemographic factors are “Education” and “Experience with Entrepreneurship” (p-value < 0.05). The conclusions highlight the use of MEG as a subsidy for policy development for MSEs.
Main contributions: Most studies on MEGs focus on large organizations rather than SMEs. In this sense, this research provides significant insights into the key factors that enhance management maturity and financial performance of SMEs. Therefore, this research contributes to the understanding of standards of management excellence and to the development of more effective strategies to improve the financial performance and competitiveness of MSEs.
Objective: To identify the Management Excellence Factors (MEFs) and the degree of management maturity, productivity and competitiveness associated with the financial performance of Micro and Small Enterprises (MSEs) in the city of Barretos (SP), Brazil. Methodology: The research is quantitative and explores two databases of the MPEs: i) Documentary: Registration of the Brazilian Micro and Small Business Support Service (SEBRAE) of Barretos; ii) Survey: Application of the MEG questionnaire from the National Quality Foundation (FNQ). A descriptive data analysis from 200 MSEs belonging to different segments (Services, Industry, Commerce and Civil Construction) and statistical tests (Chi-square tests of Independence and Binary Logistic Regression) are carried out using the software Minitab®. Relevance: The mortality of MSEs before four years of age is close to 77.9% in Brazil. However, MSEs represent around 93.6% of the private companies in Brazil. The literature, to understand the MEFs of MSEs, has used the “World Class” Management Excellence Model (MEG). However, few studies use MEGs to analyze the impact of managerial factors on the performance of MSEs. This research addresses this gap by delving deeper into understanding the application of MEGs and their relationships with the financial performance of SMEs. Main results: The statistical analysis shows that the factors “People”, “Processes” and “Leadership and Innovation” have a positive impact on the MSEs’ financial performance (p-value < 0.05). Furthermore, the main sociodemographic factors are “Education” and “Experience with Entrepreneurship” (p-value < 0.05). The conclusions highlight the use of MEG as a subsidy for policy development for MSEs. Main contributions: Most studies on MEGs focus on large organizations rather than SMEs. In this sense, this research provides significant insights into the key factors that enhance management maturity and financial performance of SMEs. Therefore, this research contributes to the understanding of standards of management excellence and to the development of more effective strategies to improve the financial performance and competitiveness of MSEs. Read More