Performance Evaluation Framework under the Influence of Industry 4.0: The Case of the Czech Manufacturing Industry

118 2021, XXIV, 1 Business Adminis a ion and Managemen DOI: 10.15240/ ul/001/2021-1-008 PERFORMANCE EVALUATION FRAMEWORK UNDER THE INFLUENCE OF INDUSTRY 4.0: THE CASE OF THE CZECH MANUFACTURING INDUSTRY Ma ina Hed ičáko á1, Ma in K ál2 1 Uni e si y o H adec K álo é, Facul y o In o ma ics and Managemen , Depa men o Economics, Czech Republic, ORCID: 0000-0001-9751-8292, [email p o ec ed]; 2 Uni e si y o H adec K álo é, Facul y o In o ma ics and Managemen , Depa men o Economics, Czech Republic, ORCID: 0000-0003-2237-3564, [email p o ec ed]. Abs ac : The cu en economic si ua ion c ea es gene al p essu e o inc ease pe o mance. Any ine icien use o p oduc ion ac o s will lead o p oblems and long- e m economic unsus ainabili y in many indus ies. The e ec s o he Co id-19 pandemic will also ha e a nega i e impac on all sec o s o he economy and he as e onse o he ou h indus ial e olu ion. The a icle, he e o e, p oposes a new amewo k o he pe o mance e alua ion o he manu ac u ing indus y, which is based on he composi e pe o mance indica o . This indica o is ob ained by a c oss-sec o al compa ison o all sub-key pe o mance indica o s. Using clus e analysis and analysis o a iance, a o al o 6 indica o s o e alua e pe o mance in he manu ac u ing indus y we e selec ed as s a is ically signi ican . The added alue o he whole concep is i s di ec independence on he economic si ua ion, which elimina es sho - e m economic oscilla ions ha would be e lec ed in classical me hods o pe o mance e alua ion o he wise. The esul s show ha some indus ies a e mo e e icien in he long un due o hei e ec i e in es men s in he capi al, which eplaces he labou ac o and c ea es oom o he ealiza ion o ela i ely highe p o i s. By con as , some sec o s, despi e high in es men s, do no achie e he desi ed le el o pe o mance – hese in es men s a e no e icien o hey a e complemen a y o he labou ac o , hus denying he p inciples o Indus y 4.0. I hus c ea es p econdi ions o inc easing dependence on ex e nal ac o s and, a he same ime, makes he gi en sec o s in a eely compe i i e en i onmen economically unsus ainable in he long un. Keywo ds: Pe o mance, e iciency, indus y, added alue, in es men , Key Pe o mance Indica o s. JEL Classi ica ion: L60, O31. APA S yle Ci a ion: Hed ičáko á, M., & K ál, M. (2021). Pe o mance E alua ion F amewo k unde he In luence o Indus y 4.0: The Case o he Czech Manu ac u ing Indus y. E&M Economics and Managemen , 24(1), 118–134. h ps://doi.o g/10.15240/ ul/001/2021-1-008 In oduc ion The manu ac u ing indus y is key o he Czech economy and has deep oo s in i s his o y. The manu ac u ing indus y accoun s o abou 35% o he na ional economy. I also has a dominan posi ion compa ed o o he coun ies o he Eu opean Union. The manu ac u ing indus y also con ibu ed he mos o he c ea ion o he g oss domes ic p oduc in 2018. I also plays a signi ican ole in employmen policy, wi h a ound 40% o he economically ac i e popula ion in he manu ac u ing indus y. In he manu ac u ing indus y, he la ges employe s a e manu ac u e o anspo equipmen and manu ac u e o me al s uc u es. The a e age wage in all sec ions o he manu ac u ing indus y is also inc easing yea by yea . The manu ac u ing indus y also plays an impo an ole in e ms o inno a ion, new echnologies and in es men s. Ano he impo an in o ma ion: in 119 1, XXIV, 2021 Business Adminis a ion and Managemen he Czech Republic in 2018, he manu ac u ing indus y accoun ed o abou one- hi d o he g oss alue added. Domes ic p oduc ion o manu ac u ing in 2018 inc eased by 3.3% yea - on-yea . To s eng hen and main ain he compe i i eness o he Czech economy, he Czech go e nmen app o ed he Indus y 4.0 ini ia i e in Augus 2016. Indus y 4.0 is also e e ed o as he ou h indus ial e olu ion and signi ican ly changes he na u e o he indus y and o he pa s o he na ional economy. This ini ia i e has al eady been app o ed in mos coun ies o he Eu opean Union bu also o he coun ies (USA, China, e c) (Associa ion o Small and Medium-sized En e p ises and Sel - employed Pe sons o he Czech Republic, 2019; The Minis y o Indus y and T ade o he Czech Republic, 2018a). The concep o Indus y 4.0 was i s men ioned a he ade ai in Hano e in Ge many in 2011. This concep o Indus y 4.0 is a massi e implemen a ion o new in o ma ion echnologies and he digi iza ion o manu ac u ing p ocesses (Ma eso a e al., 2018). Al hough indus ial p ocesses a e mo e au oma ed, human pe o mance is s ill he main ac o esponsible o p oduc quali y and ac o y p oduc i i y (Flynn e al., 2017; Pe uzzini e al., 2017). The need o e alua e he e iciency and pe o mance o p oduc ion and p oduc ion ac o s and he long- e m posi ion and de elopmen o he indus y o ensu e he sus ainabili y o indi idual indus ial sec o s leads o he compila ion o new me hods o measu ing pe o mance. These me hods a e adap ed o he cu en si ua ion – especially o ex e nal ac o s and in e nal equi emen s. Companies in he Czech Republic slowly begin o lea e he analysis o he de elopmen o indi idual a ios and looking o new sophis ica ed (Asmalo skij e al., 2019; Hálek e al., 2020; Ka l e al., 2018; Pa elko á e al., 2018; Vim o á, 2015). Zizla sky (2016) p o ed ha many en e p ises s ill do no measu e inno a ion pe o mance despi e he impo ance o inno a ion as an engine o g ow h. Only a ew o ganisa ions appea o ha e an e ec i e sys em o measu ing hei o e all inno a ion pe o mance. One op ion is Key Pe o mance Indica o s (KPIs), which can p o ide pe o mance in o ma ion in a b oade con ex . Howe e , in he con ex o pe o mance e alua ion, sus ainabili y mus be aken in o accoun simul aneously. Cu en ly, he economies o mos coun ies a e a ec ed by he economic consequences o co ona i us pandemic. Many companies will ha e economic p oblems and will ha e o look o new ways o make hei p oduc ion p ocesses e en mo e e icien . Fo his eason, he e is also a mo e massi e p omo ion o digi iza ion and home-o ice. Companies will ha e o look o new me hods o measu e hei pe o mance and compa e hem wi h each o he . 1. Theo e icalBackg ound Key Pe o mance Indica o s (KPIs) a e essen ial o moni o ing pe o mance in he indus y. They can be used o iden i y poo pe o mance and imp o emen po en ial. KPIs can be de ined o indi idual equipmen , sub-p ocesses, and whole plan s. KPIs can measu e di e en ypes o pe o mances, o example, ene gy, aw- ma e ial, con ol & ope a ion, main enance, e c (Ali & Nakos een, 2005; Hed ičáko á & K ál, 2019; Lindbe g e al., 2015). The app op ia e selec ion and imp o ed unde s anding o he KPIs could help he manu ac u ing en e p ises ul il he desi ed business objec i es (Kang e al., 2016). Indica o s KPIs can be used in almos all indus ies and sec o s. KPIs o cons uc ion deal wi h, e.g. (Al-Tmeemy e al., 2011; Chan e al., 2004; Chan & Chan, 2004; Cheung e al., 2004; Jahangi ian e al., 2017; Kuma aswamy e al., 2017; Lam e al., 2007; Luu e al., 2008). The in e na ional s anda d ISO 22400 has de ined a se o Key Pe o mance Indica o s (KPIs) o e alua e he pe o mance o manu ac u ing ope a ions (Zhu e al., 2017). A se o 34 KPIs has been in oduced in ISO 22400 (Zhu e al., 2018). Howe e , he KPIs in a manu ac u ing sys em a e no independen , and hey may ha e in insic mu ual ela ionships (Kang e al., 2016). To make de ined KPIs mo e sui able o e alua ing ope a ional pe o mance in he manu ac u ing indus y, we p opose a ious me hods o measu ing pe o mance and o ganizing KPIs o he manu ac u ing indus y. This a icle p oposes a me hodology o compiling a composi e pe o mance indica o , which uses pa ial key pe o mance indica o s and hus eely ollows he analysis o pe o mance om Hed ičáko á and K ál 120 2021, XXIV, 1 Business Adminis a ion and Managemen (2019) o he manu ac u ing indus y. The manu ac u ing indus y is an indus y ha signi ican ly in luences he le el o he en i e economy, and he Czech economy has an i eplaceable ole. The manu ac u ing indus y in ol es he mechanical, physical, o chemical con e sion o ma e ials o componen s in o new p oduc s (goods). The esul o he p oduc ion p ocess is ei he inished p oduc s in ended o use o consump ion, o semi- inished p oduc s. The manu ac u ing indus y is a conc e e indus y, and he classic a ios a e insu icien om ou poin o iew o e alua e i s pe o mance. The p oposals o measu ing pe o mance using a ious indica o s depend on hei speci ic alues, and he economic si ua ion s ongly in luences hese alues in indus ial sec o s. In some pe iods, pe o mance is highe (o e some hing) due o economic g ow h, while some imes i is unde es ima ed due o ecession. The main goal is o p esen a sys em o pe o mance e alua ion, which elimina es hese ac o s as much as possible and iden i y hose sec o s ha a e long- e m s able and ha e he po en ial o u he de elopmen in he economic en i onmen e sa. The e o e, manu ac u ing indus ies nowadays implemen a pe o mance measu emen sys em o e alua e he ope a ing s a e o hei manu ac u ing ac i i ies (Ali & Nakos een, 2005; F anceschini e al., 2007; Neely e al., 1995; Zhu e al., 2017). The impo ance o key pe o mance indica o s (KPIs) is o quan i y he e iciency and e ec i eness o he managemen o p oduc ion ope a ions and o he implemen a ion o s a egic goals o managemen and p ocess imp o emen (B az e al., 2011; Hálek e al., 2020; Hed ičáko á & K ál, 2019; Lindbe g e al., 2015; Zhu e al., 2018, 2017). O cou se, he in oduc ion o he p oposed pe o mance indica o s will also b ing p oblems. Pe al e al. (2017) a gue ha KPIs a e no always well known, and some imes, i is di icul o ind a sui able KPI o ma ch e e y business goal. B az e al. (2011) shown he di icul y and complexi y in e iewing and upda ing an exis ing PMS. The p oblem is ela ed o he in ol emen o PMS use s, he assessmen o pe o mance measu es, and da a a ailabili y. Complexi y is simila o changes in in o ma ion echnology o implemen he change in p ocedu e o compu ing he measu es. KPIs ell you wha o do o inc ease pe o mance d ama ically (G aham e al., 2015). KPIs should be selec ed h ough discussions wi h s akeholde s (employees, manage s, cus ome s) (Globe son, 1985) and ela ed o he business objec i es (s a egy) (Globe son, 1985; G aham e al., 2015; So o ou e al., 2001) o enable p og ess o be assessed agains hese objec i es bo h in e nally and ex e nally (G aham e al., 2015; P iceWa e houseCoope s, 2007). Falle e al. (2016) also show ha i is impo an o ake in o accoun he speci ic cha ac e is ics o SMEs when de eloping SBSCs and o use me hods ha allow hem o adap o p e ailing condi ions, such as s a egic managemen , o ganiza ional s uc u e, and esou ces. Many au ho s also discuss he pe o mance o companies in de eloping sus ainabili y. Rajnoha e al. (2017) ound ha he BSC me hodology has a demons able impac on business pe o mance. The pe o mance o companies is also a ec ed by he KPI sys em and en i onmen al o ien a ion. I companies do no ha e a knowledge in o ma ion sys em as a complex sys em and do no conside hei implemen a ion, hey end o ha e a lowe le el o pe o mance. Fo example, Hsu e al. (2017) ocused on inc easing he g oss ma gin sha e de i ed om he adop ed sus ainabili y s a egy. Fe ei a e al. (2016) emphasized he need o conside he o e all cos s and in es men s associa ed wi h en i onmen al p o ec ion. Woe d and B ink (2004) explained he impo ance o inancial indica o s ela ed o sus ainabili y o e alua e alue c ea ion (H is o e al., 2019; H is o & Chi ico, 2019). Hed ičáko á and K ál (2019) emphasize ha KPI analysis can also be used o analyse how indi idual indus ies espond o he economic ecession, which is now e y ele an a he ime o he co ona i us pandemic. An example is an au omo i e indus y, which ep esen s a signi ican sha e o he Czech indus y (Hed ičáko á & K ál, 2019). Boďa and Ú adníček (2020) also highligh he so ely unno iced ac ha he key a io o inancial analysis, e u n on equi y, may easily a ain non-sense alues and hese should be emo ed be o e compiling inancial analysis; o he wise, indus y s a is ics a e biased upwa d ega dless o wha measu e o cen al endency is made use o . 2. Ma e ialsandMe hods The numbe o indus y- ocused publica ions ha assess hei pe o mance is clea e idence 121 1, XXIV, 2021 Business Adminis a ion and Managemen ha indus ial ela ions play an essen ial ole in he EU Membe S a es and socie y. This ac is, among o he hings, he basis o he equi emen s o da a collec ion and e alua ion, which allows a compa ison o he posi ions o indi idual EU coun ies, o example, using a uni ied Indus ial ela ions index, which is p ocessed by Eu o ond. Indus ial ela ions index is a composi e index ha comp ehensi ely measu es coun y pe o mance in ou dimensions – indus ial democ acy, indus ial compe i i eness, social jus ice, and quali y o wo k and employmen – and indus ial ela ions sys ems as a whole. All o hem wi h he ange [0, 100], whe e he highe he sco e, he be e he pe o mance o he indus ial ela ions sys em (Eu o ond, 2020). The a icle’s main goal is o in oduce a new sys em o e alua ing he pe o mance o indus ies based on a composi e pe o mance indica o . The added alue o his new pe o mance e alua ion me hodology is he use o ela i ely simple and uni ied key pe o mance indica o s and he sepa a ion o di ec and explici dependence on ex e nal economic in luences. This way, i can p o ide p oduc ion manage s, company managemen , and poli ical ep esen a i es wi h use ul in o ma ion abou he pe o mance o indus ies. This in o ma ion has conside able po en ial o de ining hose sec o s whose de elopmen has been ine icien o a long ime and he p inciples o i s ope a ion in he u u e in an en i onmen o ee compe i ion unsus ainable. Some o he co e indings p esen ed in se e al s udies ha deal wi h pe o mance e alua ion a e aken in o accoun in he amewo k. Namely, Hed ičáko á and K ál (2019) ha e se he eigh pe o mance indica o s ( a ios) o assess he a ea o indus y: added alue pe employee, added alue in ela ion o cos , u no e pe employee; ea nings be o e axes and in e es (EBIT) pe employee, in es men pe employee, a sha e o in es men s o he o al cos s, added alue in ela ion o in es men s, and EBIT in ela ion o in es men s. Tu ley e al. (2015) and Robbins e al. (2016) use se en di e en inancial indica o s o e alua e public pe o mance o p opose a amewo k o calcula ing one composi e index using a benchma k sco e. O he esea ches (Am ina & Yuso , 2011; Hu , 2011; Rayns o d, 2000; Za a-Gómez e al., 2009) used di e en me hods o assessing he pe o mance, bu all o hem a e usable o e alua ing in a long- e m pe iod. Fo example, Am ina and Yuso (2011) p opose a se o ini ial key pe o mance indica o s (KPIs) o sus ainable manu ac u ing e alua ion belie ed o be app op ia e o au omo i e companies, consis ing o h ee ac o s di ided in o nine dimensions and a o al o 41 sub-dimensions. Hu (2011) e alua es he pe o mance by a ing, aking in o accoun ou a eas – economic si ua ion, inancial pe o mance, deb se ice cos s, and managemen quali y. Za a- Gomez e al. (2009) di ided indica o s in o se e al g oups – sho - e m liquidi y, budge sol ency, long- e m sol ency, se ice-le el sol ency. I also conside s he de elopmen o hei alues. Acco ding o Rayns o d (2000), he KPI amewo k should consis o se en main g oups: Time, Cos , Quali y, Clien Sa is ac ion, Clien Changes, Business Pe o mance, Heal h, and Sa e y (Rayns o d, 2000). All o he au ho s men ioned abo e see one o he ad an ages o pe o mance indica o s hei ela i e simplici y and easy p esen abili y, which makes hem mo e use ul in he p ac ical ield. A he same ime, knowledge o he app op ia e numbe o key pe o mance indica o s in al eady published s udies is aken in o accoun . The op imum numbe o KPIs is, unanimously in he li e a u e, ewe han 20 (G aham e al., 2015). Kaplan and No on (1992) ecommend ewe han 20 KPIs, Pa men e (2015) abou 10, while Hope and F ase (2003) and P iceWa e houseCoope s (2007) sugges ewe han 10 KPIs. KPIs should also be placed in con ex , showing ends as well as absolu e pe o mance (G aham e al., 2015; P iceWa e houseCoope s, 2007). To de e mine he de elopmen and cu en pe o mance o indi idual indus ies he i s pe o mance a ios a e used, which a e added alue pe employee, added alue in ela ion o cos , u no e pe employee; ea nings be o e axes and in e es (EBIT) pe employee, in es men pe employee, a sha e o in es men s o he o al cos s, added alue in ela ion o in es men s, EBIT in ela ion o in es men s. Subsequen ly, using hese pe o mance indica o s, a clus e analysis is pe o med, which iden i ies he indus ial sec o s o bo h he p ima y economic indus ies acco ding o CZ-NACE, as well as hei sub- componen s, wi h di e en deg ees o long- e m pe o mance. The di ision in o a o al o 4 122 2021, XXIV, 1 Business Adminis a ion and Managemen clus e s using he Euclidean dis ance is chosen, wi h each g oup can ep esen a ce ain deg ee o pe o mance o a gi en indus y. Wi hin his clus e analysis, hose pe o mance indica o s a e also iden i ied ha a e s a is ically signi ican o his di ision in o clus e s ( he signi icance le el alpha = 0.05 is used). The ollowing sec ion in oduces a new amewo k o e alua ing pe o mance based on a composi e pe o mance indica o . The calcula ion o his indica o is based on he poin e alua ion o he e iciency o each indus y acco ding o each o he pe o mance indica o s ha we e iden i ied as s a is ically signi ican in he clus e analysis. Fo each indus y, he cu en alue o each selec ed (signi ican ) pe o mance indica o is i s calcula ed. Subsequen ly, all indus ies a e so ed in descending o de om he alue ep esen ing he highes pe o mance o he lowes pe o mance. In he nex s ep, poin s a e assigned o he sec o , acco ding o he qua ile in which hey a e di ided ( he i s qua ile = 3 poin s, he second qua ile = 2 poin s, he hi d qua ile = 1 poin and he ou h qua ile = 0 poin s). The sum o he poin s c ea es he so-called composi e sco e (indica o ) o pe o mance. This composi e pe o mance indica o , by con as o he pe o mance e alua ion by se e al di e en indica o s, p o ides summa y in o ma ion on how s able, e icien , and sus ainable gi en indus ial sec o is. I is also possible o e alua e he end o de elopmen o each indus ial sec o in he long- e m pe iod. A he end o he empi ical pa , he in e dependence be ween selec ed indica o s ela ed o in es men s is p esen ed. These esul s a e con on ed wi h he pe o mance esul s o indi idual indus ies, including g aphical ep esen a ion – di e ences and he same ea u es a e p esen ed. The esul s o his analysis complemen he o e all iew o he mu ual pe o mance o indus ies and can also se e as backg ound in o ma ion on he end in which he pe o mance o indi idual sec o s will de elop in a ious economic si ua ions. Publicly a ailable da a on he manu ac u ing indus y in he Czech Republic a e used as a basis o analyses. These a e he essen ial cha ac e is ics o each indus y acco ding o CZ-NACE codes, hese cha ac e is ics include, o example, accoun ing da a and economic esul s (especially p o i , sales, cos s, in es men ), inancial da a (e.g., added alue, pe o mance a ios) and o he iden i ica ion da a (e.g., numbe o companies, numbe o employees). Mos o hese da a a e ob ained by he Czech S a is ical O ice h ough a combina ion o exhaus i e and sample su ey me hods. The su ey is ca ied ou by he Czech S a is ical O ice once a yea in acco dance wi h app o ed egula ions (Czech S a is ical O ice, 2019), using elec onic o pape o ms. The s uc u ed da a a e subsequen ly published in coope a ion wi h he Minis y o Indus y and T ade o he Czech Republic (The Minis y o Indus y and T ade o he Czech Republic, 2018b, 2018a). 3. Resul s 3.1 Pe o manceIndica o s To iden i y key pe o mance indica o s ha a e impo an o de ec ing di e ences in indi idual indus ies’ pe o mance, clus e analysis, and subsequen analysis o a iance we e pe o med. The di ision in o a o al o 4 clus e s using he Euclidean dis ance is chosen. Wi hin his clus e analysis, hose pe o mance indica o s a e also iden i ied ha a e s a is ically signi ican o his di ision in o clus e s ( he signi icance le el alpha = 0.05 is used). The clus e analysis inpu s we e pe o mance indica o s ha we e designed o e alua e he manu ac u ing indus y sec o s acco ding o a ious key pe o mance indica o s (Hed ičáko á & K ál, 2019) and a e in line wi h he indings p esen ed by o he au ho s (see he sec ion on ma e ials and me hods). They a e:  Added alue pe employee;  Added alue in ela ion o cos ;  The u no e pe employee;  Ea nings be o e axes and in e es (EBIT) pe employee;  In es men pe employee;  A sha e o in es men s o he o al cos s;  Added alue in ela ion o in es men s;  EBIT in ela ion o in es men s. All alues o hese indica o s we e s anda dized a i s , so ha all a iables gained he same weigh s, hus elimina ing he isk ha some o he alues will domina e and he e o e skew he esul s. The clus e analysis esul s show a ela i ely high simila i y be ween he di e en indus ies (see Fig. 1). A sepa a e clus e consis s o he p oduc ion o compu e and op ical and elec onic p oduc s. This sec o is cha ac e ized by a high le el 123 1, XXIV, 2021 Business Adminis a ion and Managemen o o al cos s, especially in es men s, which ha ms added alue in ela ion o o al cos s. On he o he hand, i achie es a high le el o added alue pe employee o sales pe employee and, in e ms o he i m’s manage ial heo y, can be assessed as one o he mos success ul. A smalle g oup is o med by he sec o o ex ile p oduc ion, lea he and ela ed p oduc s, and clo hing p oduc ion. These sec o s di e om he o he s by wo se esul s o indica o s aking in o accoun he numbe o employees – low le els o in es men , sales, and added alue. This is a consequence o a highe deg ee o deploymen o manual wo k, which is cu en ly no app ecia ed, among o he hings, as a esul o cheap compe i ion om Sou heas Asia. Ano he g oup o indus ies is, o example, he p oduc ion o be e ages, he p oduc ion o pape and pape p oduc s, o he p oduc ion o basic pha maceu ical p oduc s and pha maceu ical p epa a ions. These sec o s achie e he highes alues o pe o mance indica o s aking in o accoun he numbe o employees due o he high sha e o in es men cos s (on a e age 6.72%). Thus, he shi o p oduc ion au oma ion and obo ics has a posi i e e ec on educing ope a ing cos s, such as wages, and hus leads o g ea e independence o labou a ailabili y. The las g oup o indus ies is also, o some ex en , dependen on human esou ces’ manual labou , bu cha ac e ized by a highe deg ee o added alue. These a e, o example, elec ical equipmen , ab ica ed me al p oduc s, excep machine y and equipmen , ood p oduc s, and u ni u e p oduc ion. Fig. 1: Dend og am using a e age linkage Sou ce: own 124 2021, XXIV, 1 Business Adminis a ion and Managemen Analysis o a iance (ANOVA) was also pe o med as pa o he clus e analysis. I aimed o de e mine which pe o mance indica o s a e s a is ically signi ican o clus e o ma ion (a he le el o signi icance alpha = 0.05). I u ned ou ha a o al o 6 ou o 8 pe o mance indica o s di e s a is ically signi ican ly among he indi idual clus e s. Only wo indica o s ( he sha e o in es men s in o al cos s, and EBIT in ela ion o in es men s) do no di e s a is ically signi ican ly be ween di e en g oups. Unlike o he indica o s, hey a e no used in he amewo k o se he composi e pe o mance indica o . 3.2 Pe o manceE alua ion To de e mine he composi e pe o mance indica o , a o al o 6 sub-pe o mance indica o s, which we e iden i ied as s a is ically signi ican in he clus e analysis, we e used. The p inciple o calcula ing he composi e pe o mance indica o is based on he sco ing o each indus ial sec o acco ding o he qua ile in which i is loca ed acco ding o each pe o mance indica o . A i s , qua ile alues o each pe o mance indica o we e iden i ied (see Tab. 2). Da a o he pe iod 2008–2018 we e used. In he ollowing s eps (i.e., he use o a poin e alua ion as a p oxy a iable), i was no necessa y o con inue wi h s anda dized da a – o be e in e p e a ion, non-s anda dized da a a e used. Fo each indica o alue o he manu ac u ing indus y, each indus ial sec o was assigned a poin alue, acco ding o he qua ile in which he alue o each index was included: 1s qua ile = 3 poin s, 2nd qua ile = 2 poin s, 3 d qua ile = 1 poin , and 4 h qua ile = 0 poin s. The composi e indica o is hen de ined as he sum o hese indi idual poin s. As hese poin s a e assigned o he indus y o each o he six indica o s, he composi e pe o mance indica o can each a maximum o 18 poin s. While he dis ibu ion o he alues o he qua iles o he added alue in ela ion o cos s is ela i ely e en, o he o he indica o s, i signi ican ly de ia es – he di e ences be ween he i s wo qua iles a e signi ican ly highe han be ween he second wo qua iles. Al hough his ac may ha e an impac on he o e all e alua ion o pe o mance acco ding o a composi e indica o , which uses poin alues acco ding o qua iles, i is necessa y o keep in mind ha hese a e long- e m a e age alues o hese indica o s. Due o he a iance o hese alues o e ime and because poin alues a e assigned acco ding o qua iles o he whole g oup o indus ies, he dis ibu ion o speci ic alues o indica o s o each indus y is, he e o e, ma ginal in he o e all scale. The alues o he composi e pe o mance indica o s a e p esen ed in Tab. 3. A he same ime, hese alues o composi e indica o s a e used o de e mine he long- e m pe o mance o indi idual indus ies. This long- e m pe o mance is calcula ed as he sum o indi idual composi e pe o mance indica o s in he pe iod 2008–2018. Based on his sum, each indus ial sec o is classi ied in o an indi idual qua ile om he mos e icien (Q1) o he leas e icien (Q4). The de elopmen o indi idual Clus e d E o d F Sig. Mean squa e Mean squa e Added alue/cos s 3.166 30.677 17 4.680 0.015 In es men s/cos s 2.245 30.839 17 2.675 0.080 EBIT/employee 4.777 30.392 17 12.175 0.000 Added alue/employee 5.246 30.310 17 16.950 0.000 Tu no e /employee 5.462 30.271 17 20.124 0.000 In es men s/employee 6.521 30.085 17 77.149 0.000 Added alue/in es men s 5.739 30.223 17 25.789 0.000 EBIT/in es men s 2.199 30.847 17 2.595 0.086 Sou ce: own Tab. 1: Analysis o a iance (ANOVA) 125 1, XXIV, 2021 Business Adminis a ion and Managemen g oups o sec o s acco ding o he pe o mance qua ile is illus a ed in Fig. 2. The e alua ion o he pe o mance o indi idual indus ial sec o s shows ha in he long un (be ween 2008 and 2018), wi h a ew excep ions, he e a e no signi ican luc ua ions in hei pe o mance. Mos o all indus ies, ega dless o ex e nal ci cums ances, achie e app oxima ely he same esul s compa ed o o he indus ial sec o s. This is e iden , o example, in he case o be e age p oduc ion, which achie ed he bes esul s o e he whole sec o s be ween 2008 and 2018, and, con e sely, in he case o manu ac u e o ex iles, which eached he wo s esul s (compa ed o o he indus ies). Howe e , despi e he s abili y o mos sec o s, excep ions can be ound. I is, o example, he p oduc ion o basic me als Added alue/cos s [%] EBIT/ employee [ hs. CZK] Added alue/ employee [ hs. CZK] Tu no e / employee [ hs. CZK] In es men s/ employee [ hs. CZK] Added alue/ in es men s [ hs. CZK] Q1 (3 poin s) > 31.27% > 320.32 > 840.41 > 3,718.45 > 233.84 > 5.02 Q2 (2 poin s) ≤ 31.27% ≤ 320.32 ≤ 840.41 ≤ 3,718.45 ≤ 233.84 ≤ 5.02 Q3 (1 poin ) ≤ 26.23% ≤ 197.16 ≤ 726.83 ≤ 2,688.52 ≤ 153.45 ≤ 4.65 Q4 (0 poin s) ≤ 22.24% ≤ 127.87 ≤ 606.51 ≤ 2,263.36 ≤ 136.19 ≤ 4.32 Sou ce: own Tab. 2: Qua ile limi alues o each pe o mance indica o Fig. 2: De elopmen o pe o mance o he manu ac u ing indus y sec o s acco ding o pe o mance qua iles Sou ce: own 126 2021, XXIV, 1 Business Adminis a ion and Managemen and me allu gical p ocessing o me als, which was a ec ed by he consequences o he inancial c isis o such an ex en ha he e was a signi ican d op in sales and p o i s compa ed o o he sec o s, which esul ed in a educ ion in o e all pe o mance. Howe e , in he pe iod o subsequen economic g ow h ( om 2011 o 2018), his sec o also eached simila alues as be o e he inancial c isis. 3.3 Indus y 4.0 Con ex The con ibu ion o he implemen a ion o he p inciples o Indus y 4.0 in he con ex o long- e m pe o mance leading o he economic sus ainabili y o indus ial sec o s can be illus a ed in wo e y simila , bu also di e en , indus ies – be e age p oduc ion (Q1) and ood p oduc ion (Q4). The be e age indus y is cha ac e ized up o h ee imes highe in es men s in ela ion o o al cos s. These in es men s lead o a educ ion in ope a ing cos s and hus inc eased p o i s in he u u e. By con as , he p oduc ion o ood p oduc s, due o lowe in es men s, achie es lowe added alue and lowe u no e and p o i s. I migh seem ha inc easing he le el o in es men au oma ically leads o a educ ion in cos s, an inc ease in sales and p o i s in he long un, and consequen ly o a highe le el o e iciency and independence om ex e nal sou ces o inancing (such as subsidies). Howe e , no o he s a emen is u he om he u h, as illus a ed in Fig. 3. Al hough, in gene al, he indus ies o all qua iles ha e a simila le el o in es men in o al cos s, he indus ies included in he Q1 Indus y 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 ΣQ Be e age p oduc ion 15 16 15 15 14 15 15 15 15 16 16 167 Q1 Basic pha maceu ical p oduc s and p epa a ions 16 14 16 15 15 15 16 13 15 13 12 160 Q1 Chemicals and chemical p oduc s 11 10 12 13 14 12 14 13 12 13 13 137 Q1 O he non-me allic mine al p oduc s 15 13 13 11 10 11 11 12 12 12 12 132 Q1 Rubbe and plas ic p oduc s 9 10 11 11 13 13 12 13 13 12 9 126 Q1 Mo o ehicles, aile s and semi- aile s 10 9 12 12 11 11 12 12 12 13 11 125 Q2 O he anspo equipmen 9 12 11 13 13 11 11 11 10 8 7 116 Q2 Pape and pape p oduc s 10 11 9998991011 11 106 Q2 Elec ical equipmen 7 9 12 10 11 1089898101 Q2 Basic me als, me allu gical p ocessing o me als 13 4 6 10 7 9 11 88811 95 Q2 Fab ica ed me al p oduc s, excep machine y 77768978891086 Q2 P in ing and ep oduc ion o eco ded media 911 87867976583 Q3 Compu e , elec onic and op ical p oduc s 65567710988778 Q3 Manu ac u e o wood, co k, and s aw p oduc s 675677668911 78 Q3 Machine y and equipmen no speci ied elsewhe e 6687878766675 Q3 O he manu ac u ing indus y 8986674666874 Q3 Wea ing appa el 6666666666666 Q4 Lea he and ela ed p oduc s 6665363654656 Q4 Food p oduc s 6744343343344 Q4 Fu ni u e p oduc ion 3415344455543 Q4 Manu ac u e o ex iles 2453423123332 Q4 Sou ce: own Tab. 3: Values o he composi e pe o mance indica o s be ween 2008–2018 133 1, XXIV, 2021 Business Adminis a ion and Managemen Ma eso a, P., Soukal, I., S obodo a, L., Hed icako a, M., Ja anma di, E., Selama , A., & K ejca , O. (2018). Consequences o Indus y 4.0 in Business and Economics. Economies, 6(3), 46. h ps://doi.o g/10.3390/ economies6030046 Neely, A., G ego y, M., & Pla s, K. (1995). Pe o mance measu emen sys em design: A li e a u e e iew and esea ch agenda. In e na ional Jou nal o Ope a ions & P oduc ion Managemen , 15(4), 80–116. h ps://doi.o g/10.1108/01443579510083622 Pa men e , D. (2015). Key pe o mance indica o s: De eloping, implemen ing, and using winning KPIs (3 d ed.). Hoboken, NJ: Wiley. Pa elko á, D., Homolka, L., Knápko á, A., Kolman, K., & Pham, H. (2018). EVA and Key Pe o mance Indica o s: The Case o Au omo i e Sec o in P e-C isis, C isis and Pos -C isis Pe iods. Economics & Sociology, 11(3), 78–95. h ps://doi.o g/10.14254/2071- 789X.2018/11-3/5 Pe al, J., Ma é, A., & Ma co, M. (2017). Applica ion o Da a Mining echniques o iden i y ele an Key Pe o mance Indica o s. Compu e S anda ds & In e aces, 50, 55–64. h ps://doi.o g/10.1016/j.csi.2016.09.009 Pe uzzini, M., G andi, F., & Pelliccia i, M. (2017). Benchma king o Tools o Use Expe ience Analysis in Indus y 4.0. P ocedia Manu ac u ing, 11, 806–813. h ps://doi. o g/10.1016/j.p om g.2017.07.182 P iceWa e houseCoope s. (2007). Guide o key pe o mance indica o s – Communica ing he measu es ha ma e . 2007. h ps://www. academia.edu/10347249/Guide_ o_key_ pe o mance_indica o s_Communica ing_ he_ measu es_ ha _ma e _connec ed hinking_ pwc Rajnoha, R., Lesníko á, P., & K ajčík, V. (2017). In luence o business pe o mance measu emen sys ems and co po a e sus ainabili y concep o o e al business pe o mance: “Sa e he plane and keep you pe o mance”. E&M Economics and Managemen , 20(1), 111–128. h ps://doi. o g/10.15240/ ul/001/2017-1-008 Rayns o d, N. (2000). KPI Repo o The Minis e o Cons uc ion by he KPI Wo king G oup. KPI Wo king G oup. h ps://asse s. publishing.se ice.go .uk/go e nmen /uploads/ sys em/uploads/a achmen _da a/ ile/16323/ ile16441.pd Robbins, G., Tu ley, G., & McNena, S. (2016). Benchma king he inancial pe o mance o local councils in I eland. Adminis a ion, 64(1), 1–27. h ps://doi.o g/10.1515/admin-2016-0009 So o ou, C., Poli ou, D., Kallige is, A., & Topouzidou, S. (2001). D3-KPI Manual Pa I – Gene al Me hodology. IST-2000-28760. The Minis y o Indus y and T ade o he Czech Republic. (2018a). Pano ama o he Manu ac u ing Indus y o he Czech Republic 2018. h ps://www.mpo.cz/asse s/en/indus y/ manu ac u ing-indus y/pano ama-o - he- manu ac u ing-indus y/2019/10/pano ama_aj_ web.pd The Minis y o Indus y and T ade o he Czech Republic. (2018b). Pano ama zp aco a elského p ůmyslu ČR 2018 [Pano ama o he Manu ac u ing Indus y o he Czech Republic 2018] (1s ed., Vol. 22). P ague: The Minis y o Indus y and T ade o he Czech Republic. Tu ley, G., Robbins, G., & McNena, S. (2015). A F amewo k o Measu e he Financial Pe o mance o Local Go e nmen s. Local Go e nmen S udies, 41(3), 401–420. h ps:// doi.o g/10.1080/03003930.2014.991865 Vim o á, H. (2015). Financial Analysis Tools, om T adi ional Indica o s h ough Con empo a y Ins umen s o Complex Pe o mance Measu emen and Managemen Sys ems in he Czech Business P ac ice. P ocedia Economics and Finance, 25, 166–175. h ps://doi.o g/10.1016/S2212- 5671(15)00725-X Woe d, F. V. D., & B ink, T. . d. (2004). Feasibili y o a Responsi e Business Sco eca d: A pilo s udy. Jou nal o Business E hics, 55(2), 173–186. h ps://doi.o g/10.1007/s10551-004- 1900-3 Za a-Gómez, J. L., López-He nández, A. M., & He nández-Bas ida, A. (2009). E alua ing inancial pe o mance in local go e nmen : Maximizing he benchma king alue. In e na ional Re iew o Adminis a i e Sciences, 75(1), 151–167. h ps://doi. o g/10.1177/0020852308099510 Zhu, L., Johnsson, C., Mej ik, J., Va isco, M., & Schi aldi, M. (2017). Key pe o mance indica o s o manu ac u ing ope a ions managemen in he p ocess indus y. In 2017 IEEE In e na ional Con e ence on Indus ial Enginee ing and Enginee ing Managemen (pp. 969–973), Singapo e. h ps://doi.o g/10.1109/ IEEM.2017.8290036 134 2021, XXIV, 1 Business Adminis a ion and Managemen Zhu, L., Johnsson, C., Va isco, M., & Schi aldi, M. M. (2018). Key pe o mance indica o s o manu ac u ing ope a ions managemen – gap analysis be ween p ocess indus ial needs and ISO 22400 s anda d. P ocedia Manu ac u ing, 25, 82–88. h ps://doi. o g/10.1016/j.p om g.2018.06.060 Zizla sky, O. (2016). Inno a ion pe o mance measu emen : Resea ch in o Czech business p ac ice. Economic Resea ch – Ekonomska Is aži anja, 29(1), 816–838. h ps://doi.o g/10. 1080/1331677X.2016.1235983