The online maturity of Hungarian small family enterprises in the light of competitiveness
DOI:
https://doi.org/10.15170/MM.2024.58.01.03Keywords:
family firms, digitalization, SME competitiveness, online presence, digital maturityAbstract
THE AIM OF THE PAPER
The aim of the study is to examine the online presence of Hungarian small family businesses. It also aims to answer the research question of whether a higher level and more complex online presence has an impact on the competitiveness of family businesses. We would like to prove that small family businesses with their own websites and social media profiles are more competitive than their counterparts that do not use online opportunities.
METHODOLOGY
For our empirical research, we used the results of the SME Competitiveness Research Group of PTE KTK. For this research, data from 738 Hungarian SMEs were analyzed. The dataset contains data on the online presence of 505 family SMEs in Hungary. To identify family nature, a firm-relationship network analysis was necessary, which was carried out using the OPTEN database. The results were used to construct a two-outcome variable that was used to categorize the companies under investigation. Analysis of variance and WebIndex methodology were used to determine the correlation between online presence and competitiveness levels.
MOST IMPORTANT RESULTS
Less than half of the companies surveyed had a presence on a social media platform, and 25% had no or very rudimentary online presence. However, we found that the maturity categories were consistent with competitiveness. Thus, the maturity of small family businesses is positively related to their competitiveness. It should be stressed that no similar study has been conducted for domestic family firms; therefore, our research can be considered original.
RECOMMENDATIONS
Moving small businesses into a higher online presence maturity category also brings about improvements in competitiveness and all its dimensions. It is also worthwhile to push small family businesses towards an online presence in certain industries, to make managers understand the importance of this, and to encourage them to create a corporate website or at least to use social media more effectively.
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