Problem Solving and Budget Allocation of SMEs: Application of NCA Approach

Abstract

In order to achieve a specific result, a firm’s problem-solving activities can be thought of as a process that combines physical and cognitive actions. Its internal organization determines how information inputs are distributed among different task units and, as a result, how the cognitive workload is distributed. We tested a case study related to Iranian small and medium enterprises (SMEs). We used NCA analysis as a creative and state-of-the-art method with the help of R software to evaluate data. According to the findings, six prerequisites must be met in order to achieve a 50% level of efficient performance: innovation at a minimum of 22.7%, CSR at a minimum of 30.4%, IT investment at a minimum of 56.7%, SMM at a minimum of 38.3%, product differentiation at a minimum of 11.7%, and CRM at a minimum of 38.3%.

Keywords

• problem solving
• resource allocation
• SMEs
• NCA approach