Scholarly record
SMART BUSINESS DEVELOPMENT OPPORTUNITIES: A CASE STUDY
Abstract
Smart development is a problem examined by many research studies, and the scientists note that the concept of smart economy becomes increasingly popular in scientific and practical strategy documents. The documents refer to small and medium enterprises implementing the Industrial Revolution 4.0 as smart companies, which are the basis of economic growth. The smart specialization strategy of Latvia states that more innovations are needed for a more productive economy and the development of more valuable products, and digital transformation becomes a crucial prerequisite for the future growth of companies. To succeed, a company needs to be aware of the most important competitive advantages. Business prospects are largely shaped by the efficient investment and innovation activity of a company and the application of modern technologies in the production and management of the company. The authors of the paper conducted a case study of a company in Latvia to identify the factors affecting smart business development and whether the performance of the company meets the parameters of smart development. Based on the literature review, the main aspects of smart business development were developed: (1) smartness, innovation and sustainability – a development plan needs to be smart, i.e. with an innovative approach to process organization and management; development activities should involve innovation, applying a creative approach to planning; sustainable, i.e. focused on prospects; (2) a smart development plan affects the following aspects of company operation: business management strategy, production and processes, technology-driven progress, digital support and human competencies; (3) integration of smart technology solutions at the stages of value creation and the availability of information for prudent decision-making as a way of improving the performance of the smart company. The authors’ contribution to a solution to the research problem: parameters of smart operation of an individual company were defined and a questionnaire for leading employees and specialists of a company was designed based on the parameters, which could be used for examining and describing smart business development in similar small companies. The research results revealed that the operation of the company examined could be assessed as smart: the productivity of the company was high, as was the value added of the products, investments were made in production and the professional growth of employees, the company sought to introduce innovations and digital technologies and, in the opinion of the authors, the most important thing was that the company was oriented towards smart growth and sustainability, as well as innovative initiatives by the personnel.
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