Knowledge Creation on Costs in the Context of Economic Environment Changes – Perspective of SMEs

Abstract

The increasingly challenging geopolitical situation and the growing frequency of various unpredictable crisis threats make the future uncertain and unstable. On the one hand, the sharp rise in raw material prices and labor costs, supply chain issues, pressures to implement sustainable development principles and non-financial reporting, and the transition to a circular economy model is increasing cost awareness and, consequently, the demand for more detailed cost data. On the other hand, the rapid development of technology and digitization, along with the evolution of Industry 5.0, means that business managers increasingly recognize knowledge as an indispensable element of business management. Knowledge management is an excellent tool for streamlining processes, which each company constructs based on its goals, needs, and capabilities, essential for effective planning and proper organizational functioning. Therefore, enterprises are compelled to continuously self-improve and seek new management methods, including cost management. This article raises a research question concerning how cost knowledge is created in SMEs in the context of changes occurring in the economic environment. The article aims to analyze the use of cost knowledge in managerial decision-making in medium-sized enterprises operating in the Polish SME market. The research methods used to achieve this goal include participant observation, critical analysis, and synthesis. The empirical research was conducted in the form of surveys carried out using CATI/CAWI methods among 400 randomly selected medium-sized enterprises operating in Poland, along with personal interviews. The research results suggest managers should focus on acquiring broader knowledge about incurred costs. Many surveyed enterprises still use traditional cost accounting solutions, providing data necessary solely for reporting purposes. The potential and tools offered by cost accounting are used to a limited extent. This indicates a need to continue and expand the discussion on the usefulness of detailed knowledge about incurred and forecasted costs in decision-making processes. The research findings presented in the article are intended for both researchers and practitioners. The article concludes with practical recommendations for enterprises and future research tasks. It is a continuation of the author's research on the role of cost accounting in managing SMEs in Poland.