Management Practices and Their Impact on Performance: Evidence From the Furniture Sector in Colombia

Management Practices and Their Impact on Performance: Evidence From the Furniture Sector in Colombia

Jorge Alberto Gamez (Agustiniana University, Colombia) and Carolina Aguirre (Agustiniana University, Colombia)
DOI: 10.4018/978-1-5225-8012-6.ch004

Abstract

Business skills are based on the quality of management, which guarantees the ability of people to incorporate technology and manage the necessary changes in order to adapt to various forms of competition. Colombia is below the Latin American average in management practices. Large companies have access to the best managers while SMEs do not, and this is reflected on their performance. The birth of companies does not imply the automatic renewal of the business fabric because there are problems of management capacity. In this sample of the furniture sector in Bogota, the management practices of SMEs based on Blackman are presented. This sector is made up of 98% of SMEs with a good performance in obtaining benefits but low performance in competitiveness, innovation, and sustainability. Management practices are proposed based on participation, planning, innovation, the use of external consultants, and financial control.
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Entrepreneurs

Pereira (2007) analyzes the factors that affect the decision of a person for starting a company, the variables that affect its performance, the practices of the investors and their impacts, the influence of social networks and the strategic perspective based on resources. González (2007) (see Table 1) established the attributes of the entrepreneur as follows:

Key Terms in this Chapter

Management Techniques: Skills for management control, decision m, king, and problem analysis.

Small Enterprises: Companies that have between 11 and 50 employees and actives between 501 and 5,000 SMMLV.

Performance: Fulfillment of the obligations inherent to a profession, position, or trade.

SMEs: Small and medium-sized businesses.

Enterprise: Organization unit dedicated to industrial, mercantile, or service for lucrative purposes or activities.

Family Companies: Companies created and managed by a single family.

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