A Study on the Effects of Management Consulting on SMEs’ Performances

The purpose of this study is to empirically analyze the effects of management consulting on the performance of SMEs. We hypothesized regarding the interaction between management consulting and performance. For indisputable outcomes, we distinguished between companies that received consulting services and those that did not. The results showed that on the demand side, client support is positively related to the management performance. Likewise, on the supply side, consultant professionalism and service quality positively affected the overall management performance. Additional analysis was conducted to compare the 3-year financial data of the consulting, where the operating income rate of 40 companies that received consulting services was 4.50%, 51% higher than the operating income rate (2.97%) of general 120 SMEs that did not receive the service. First, this study implies that it is important to continuously sustain client support. Second, the consultant needs to keep appropriate tools and methodologies for enhancing service quality and professionalism. Third, since performance is affected by the capacity of individuals, organizations, and other external factors, consulting services should be presented in a long-term oriented perspective rather than a short-term perspective to increase business growth and profitability.