Risk Management Practices in Turkish SMEs: A Study on the Necessity of an Emergency Plan
Introduction
A recent study by the Institute for Manufacturing (IfM) in 2001 highlighted a lack of appropriate organizational culture, structure, and management principles in small and medium-sized enterprises (SMEs). The investigation found that less than 25% of decisions in SMEs were delegated. This study explores risk management practices in Turkish SMEs and emphasizes the need for an emergency plan to establish a systematic risk management process.
Risk Management Practices in Turkish SMEs
A study by Anil and Cakir (2015) revealed that Turkish managers perceive risk as both a loss and an opportunity for excitement, reflecting cultural differences. The researchers found significant differences in risk perception between construction and IT firms. These findings underscore the importance of considering demographic variables such as age, gender, nationality, and education level, as well as personality traits like risk attitude, when examining risk management practices.
Need for Emergency Plan
Given the crucial role of SMEs in Turkey’s economic growth and their significant contribution to human capital and value-added creation, the results of this study emphasize the need for an emergency plan in establishing a systematic risk management process in SMEs. An emergency plan can help ensure that SMEs are prepared to respond effectively to unexpected events and minimize losses.
References
- European Commission. (2012b). SBA fact sheets. [Online]. Available: http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review-2014/sme-fact-sheet.pdf
- Das, T. K., & Teng, B. (2001). Relational risk and its personal correlates in strategic alliances. Journal of Business Psychology, 15(3), 445-461.
- Anil, I., & Cakir, O. (2015). Cultural differences and the effects on risk management practices: An empirical study in Turkish and German companies. In Proc. 5th Annual International Conference on Innovation and Entrepreneurship (pp. 1-10).
- Soleimani Zoghi, F. (2017). Relational risk management in strategic partnerships. International Journal of Trade, Economics and Finance, 8(2), 123-137.
About the Author
Dr. Farzaneh Soleimani Zoghi is a research associate at Contractual Management Institute (CMI) Berlin and lecturer at SRH Hochschule Berlin. She holds a Ph.D. in production management and marketing from Marmara University, Istanbul. Her research interests include business relationship management, risk management, and international marketing.