Title: Impact of internal additional compensations policy on revenues in cross-sectoral SME environment

Authors: Sanja Todorović; Mladen Radišić; Aleksandar Takači; Jelena Borocki; Jana Kliestikova

Addresses: Department of Industrial Engineering and Management, Faculty of Technical Sciences, University of Novi Sad, Republic of Serbia ' Department of Industrial Engineering and Management, Faculty of Technical Sciences, University of Novi Sad, Republic of Serbia ' Department of Basic Engineering Disciplines, Faculty of Technology, University of Novi Sad, Republic of Serbia ' Department of Industrial Engineering and Management, Faculty of Technical Sciences, University of Novi Sad, Republic of Serbia ' Department of Economics, Faculty of Operation and Economics of Transport and Communications, University of Zilina, Slovak Republic

Abstract: A contemporary business practice attributed to the small and medium-sized enterprises (SMEs) reflects rather ad-hoc employees' compensations policies. In this study, we investigate whether cross-sectoral differences exist with respect to the additional compensations performance on the sample of IT (information technologies) and non-IT small firms coming from an emerging market in Europe. The central research includes systematic statistical analysis of the relations between additional compensations performance (both material and non-material) and revenues growth for more than 60 SMEs. We conclude that cross-sectoral differences of additional compensations' impact on revenues growth are evident. IT SMEs are more likely to experience year-to-year revenues growth when they perform additional compensations towards their employees and they execute non-material additional compensations more frequently. However, variables observing employee category receiving an additional compensation and funding spent for additional compensations did not show considerable statistical significance with respect to impact on revenues growth for both observed sectors.

Keywords: additional compensations; SMEs; small and medium-sized enterprises; revenues growth; Fisher's exact test.

DOI: 10.1504/EJIM.2019.102838

European Journal of International Management, 2019 Vol.13 No.6, pp.843 - 863

Received: 09 Jul 2018
Accepted: 15 Sep 2018

Published online: 29 Aug 2019 *

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