1. Introduction
Europe is trying to move away from gas and nuclear energy, but the Polish economy is still a coal-based one. Polish coal is expensive, which results from high administrative and mining costs. Coal deposits in mines are at a very deep level, which hinders mining and increases its costs compared to foreign mines. The policy of Poland should be aimed at limiting the production of energy from coal. However, once again the plans have not been implemented, which resulted in an increase in coal energy production in 2018. Today, mines face another problem: coal is expensive and does not sell well, so it is in arrears in mines where it is stored. Yet mines continue mining, as the downtime can reduce remunerations and cause strikes.
In addition, the Polish government—under the pressure from mining trade unions—decided that some state-owned companies from the energy sector would buy more expensive coal from Polish mines. As a result, cheaper coal from Australia or Russia will not be purchased by the Polish energy sector. The problem is to restore profitability to its own mines and the price of CO
2 emission allowances. CO
2 emissions are a big problem in Poland, which is further compounded by ineffective waste management. When creating energy policy of the state, one should remember that sustainable waste management can reduce CO
2 emissions [
1,
2]. The years 2018–2019 caused a strong increase in the prices of CO
2 emission allowances. This is bad news for the Polish energy sector, as its foundation is energy from coal. High prices of CO
2 emission allowances result in a decline in the price of electricity, which in turn, will affect not only individual customers, but above all, Polish enterprises and industry, especially the energy-intensive one. In addition, the energy-consuming industry very often emits significant amounts of CO
2 in steelworks, thus becoming a victim of the costs associated with its emission allowances. The Polish energy sector is facing serious challenges. From year-to-year high demand for energy and an increase in the share of coal in energy production is a strategy that must be abandoned. The share of renewable sources should be promoted and increased at all levels, or in the case of large enterprises, small or micro ones—as well as retail customers [
3,
4,
5]. Though in 2018, the share of renewable sources in final energy consumption increased in Poland, it is still far from the assumptions of the European Union policy. Renewable energy sources (RES) are enjoying an increasing interest, both on the global scale and n the European Union (EU-28) [
6,
7,
8,
9,
10]. Research conducted around the world clearly indicates that renewable energy sources (RES) may reduce the European Union (EU)’s dependence on foreign energy supplies and are primarily intended to combat climate change [
11]. In addition, the International Energy Agency emphasized the importance of promoting clean energy worldwide, pointing out that the development of this industry had the positive impact on the creation of jobs [
12].
The map (
Figure 1) presents the share of renewable sources in electricity production in 2018 in selected European countries. Norway is the absolute leader, as the level of electricity produced from renewable sources exceeds total consumption. As one can see, in Poland—as in other countries of Central and Eastern Europe—this indicator is rather low.
The structure of obtaining energy from renewable sources in Poland is primarily connected to the geographical conditions characteristic for Poland and the resources that can be managed. Energy obtained from renewable sources in Poland comes predominantly from solid biofuels, wind energy and liquid biofuels. The details are presented in
Table 1.
Thus, it is clear that in Poland that there is an increase in the production of energy from renewable sources. The growth of SMEs in the trade of equipment and systems for obtaining energy from renewable sources has the significant impact on this growth. Very often these companies—especially small ones—are strongly connected with the construction industry. This industry, in turn, is a leader in Poland when it comes to company failures and bankruptcies [
14]. Often, the financial problems of the main investor cause payment bottlenecks, of which SMEs are generally the “victims” [
15,
16,
17]. It is also caused by the fact that in these units the length of the cash conversion cycle (CCC) is low. They are unable to find an adequate level of net working capital that would ensure their business continuity. There are many different financial management strategies that can improve the financial security of enterprises. One of the popular solutions used around the world and in virtually every sector are multi-entity organizations, referred to as GPOs [
14]. For small and medium enterprises in Poland operating in a new sector such as renewable energy, acting together within industry purchasing groups seems to be a very good solution allowing them to function in the event of payment bottlenecks or other disasters. Therefore, the aim of the article is to find an answer to the research question: Is it financially more secure for renewable energy companies to operate within purchasing groups than for companies operating alone in the sector?
Poland is currently a country where the share of renewable energy in the total energy consumption structure is decreasing. In the years 2014–2017, the production of electricity from renewable energy sources was gradually increasing, and in 2018 there was a decrease compared to the year: 2015 by 4.7%, 2016 by 5.2%, 2017 by 10.4%. In 2019, this trend did not change. The negative trend of the decrease in the share of renewable energy in total energy consumption causes certain difficulties in the functioning of current enterprises related to the renewable energy industry, as well as in the creation of new ones. This makes scientists in Poland take actions aimed at improving the security of functioning of renewable energy enterprises. This article is part of the current of this research.
4. Results
Based on our analyses, it can be concluded that in the purchasing group compared to independent companies, we have a significantly higher level of profitability (median 4.10% in the purchasing group vs. 1.25% among independent companies), significantly higher liquidity (2.86 vs. 1.35) and a longer cycle (83 vs. 46 days). All these differences were highly reliable, the
p value determined using the Mann–Whitney test was below 0.001. There were no significant differences in the level of effectiveness, although the difference was close to statistically significant (
p = 0.0669). The details are presented in
Table 2.
The charts (
Figure 2) show the values of positional statistics and the exact distribution of the values of current financial liquidity ratio and ROS (return on sales) in the compared groups.
Thus, it can be seen that the indicators and results presented in
Table 2 and
Figure 2 are clearly more favorable in enterprises operating in GPOs.
The share of inventories and receivables from customers in both groups of enterprises was compared in an analogous way. There are no grounds to establish differences in the level of these two indicators between independent enterprises and GPOs affiliated enterprises. The values of positional measures (means and medians) are almost identical in both groups, and the lack of statistically significant differences was verified using the Mann–Whitney test (
p values definitely exceed 0.05). The details are presented in
Table 3.
Another research goal was to verify which of the factors—inventory turnover, receivables from customers or payables to suppliers influence the results of current assets management efficiency (operating cycle). For this purpose, Spearman’s rank correlation coefficients between efficiency and the three indicators mentioned above were determined. The analysis was carried out separately for both groups of companies, presenting charts in a summary table (
Table 4) and selected results were presented on scatter charts (
Figure 3). As can be seen, in the GPO group all “rotations” are correlated with efficiency, except that the receivables turnover is most strongly (
R = 0.85 among GPO companies and
R = 0.72 among independent companies). No statistically significant correlation exists between the efficiency and rotation of liabilities in the GPO group (
R = 0.28). Due to the specific nature of the efficiency measure (operating cycle length), one can conclude from the analysis that the extension of rotation cycles (especially receivables and inventory) is associated with an increase in the operating cycle length, i.e., a decrease in efficiency.
Below there are presented the selected relationships in the form of scatter diagrams (
Figure 3).
The correlations between the profitability level of companies from both groups and selected indicators—effectiveness, share of receivables and inventories and credit position were also examined. It is interesting that statistically significant correlations occur only in the GPO group (
Table 5). Profitability is positively influenced by having a larger share of receivables (
R = 0.40) and credit position (
R = 0.50) and negatively a larger share of inventories (
R = −0.61). There is no relationship between profitability and efficiency. The reason for the lack of correlation in the group of independent companies may be the fact that the level of profitability in this group is low and very even, so it is difficult to find factors that differentiate it.
The selected relationships are presented in the form of scatter diagrams (
Figure 4).
The next step was to examine the rates of rotation of receivables from customers, stocks and liabilities to suppliers. They belong to the group of indicators of effectiveness of company management. They provide information on how well a company is managed, but most importantly they provide much important information on the financial security of companies, especially those belonging to SMEs.
Table 6 presents the results of the indicators of receivables from customers, inventories and payables to suppliers in days.
Based on the calculations presented in
Table 6, no statistically significant differences in the length of the receivable turnover were found, while for the other two indicators, significantly higher values were observed in the group of independent companies. The average duration of the liabilities turnover in independent companies was by more than 50 days (113.4 vs. 63.7), and inventories by more than 10 days (81.3 vs. 70.5) longer than in companies associated in GPO.
These results indicate more efficient inventory management in the group of companies operating in the GPO, which has the large impact on the financial security of the companies. A large share of inventories in the structure of current assets adversely affects liquidity. Overdrawing of inventories in warehouses causes an increase in costs, which also negatively affects the profitability of units.
When analyzing the results from
Table 6, it can be seen that the companies operating in the GPO try to quickly settle their liabilities to suppliers. This is a clear indication of their strength. To a large extent, this is due to the fact that the central unit, when negotiating with the producer, often obtains the possibility to receive an additional discount for an early payment. It often takes advantage of this, which results in a relatively low rate of rotation of liabilities in days. In the case of companies operating on their own, such opportunities rarely occur. When analyzing table and liquidity ratios, it can be seen that these companies have problems with settling their liabilities on time.
Figure 5 presents positional statistics for liabilities and inventory turnover ratio in the compared groups.
The aim of the next stage of data analysis was to determine whether the turnover of liabilities, receivables and inventories affects the company’s liquidity and whether this influence depends on whether it operates independently or in GPO. The earlier analyses showed that the liquidity was significantly higher among companies with GPO.
In order to determine the nature of the impact of the length of financial turnovers and membership in GPOs on the level of financial liquidity, a regression model was constructed. The dependent variable in this model was financial liquidity, while independent variables: length of receivables, liabilities, inventories turnovers and a dichotomous factor—GPO affiliation. Additionally, interactions between GPO membership and the length of turnovers of receivables, liabilities and inventories were taken into account.
The model describes the variability of financial liquidity in the studied group of companies to a fairly good degree (the determination coefficient R2 is about 65%). Statistically significant factors are GPO membership, liability turnover, inventory turnover. The turnover of receivables does not affect the companies’ liquidity. The interaction between GPO membership and the turnover of liabilities is also statistically significant. Based on the value of model coefficients (B), the type of relationship between individual factors and the level of liquidity can be specified:
GPO companies have, on average, 3.510 more liquidity than stand-alone companies with the same receivables, liabilities and inventory turnover
the extension of the liability turnover by one day, results in a 0.033 decrease in liquidity
the significance of the interaction between the GPO membership and the liability turnover allows to conclude that the relationship between the liability turnover and liquidity is greater in this group (adjusted coefficient −0.052) than in the group of stand-alone companies (adjusted coefficient −0.014)
the extension of the inventory turnover by one day translates into an increase in liquidity by 0.019.
Based on the value of the standardized regression factor (
β), it is possible to assess the strength of the influence of individual factors on the level of liquidity. When comparing the absolute values of the
β coefficient, it can be concluded that the interaction of the liability level with the company’s GPO membership and the fact of being a GPO member is crucial (
Table 7).
6. Discussion and Conclusions
In the literature, one can find much information where the authors confirm that acting within purchasing groups allows reducing a number of costs, increasing profitability, improving financial liquidity [
76,
77,
78,
79].
The literature indicates that so far the most common purchasing groups were organized in the medical sector around the world and in the construction industry.
The analysis concerns SMEs operating in the renewable energy sector, which is developing in Poland. At the same time, Poland is a country where the political decisions of the government over the last few years have resulted in a significant reduction of the possibilities of renewable energy development. The development of renewable energy in Poland was quite dynamic in the years 2012–2016. However, since 2017 it has been severely hampered by unfavorable legal regulations, which have significantly limited investments in the renewable energy market. The dynamics of renewable energy development in Poland is presented in
Figure 6.
These measures have also resulted in a decrease in the profitability of the current renewable energy companies, especially those from the small and medium-sized enterprise sector. At the end of 2020, the European Union set Poland a target of 15% share of renewable energy consumption. This target will not be reached by Poland. A real salvation from the high penalties that the European Union may impose on Poland for not meeting this target are investments undertaken by micro producers and renewable energy enterprises in the SME sector. The minimal increase of renewable energy capacity in Poland in 2019 is due to the development of photovoltaic systems supported by European Union aid. Geothermal energy has also potential opportunities [
80]. The research shows that currently Poland is among the weakest EU countries in the share of renewable energy consumption [
81,
82,
83]. Focusing the development of renewable energy in Poland on micro-producers provides new opportunities for the development of SMEs operating in the renewable energy sector.
The aim of the article—and at the same time the research question—was whether the operation of renewable energy enterprises within purchasing groups is financially safer in relation to enterprises operating independently in this industry. The research confirms the results of research conducted so far in the medical sector and construction industry and at the same time indicates that renewable energy companies can also improve their profitability and thus the possibility of a safe continuation of their operations by extending the business model of operation to inter-company cooperation within purchasing groups. The statistical analysis and their graphic presentation present the significant impact on the safety and profitability of renewable energy entities in the form of purchasing groups.
On the basis of the conducted research, the conclusions can be drawn:
Renewable energy companies operating in groups obtain higher liquidity, a cash conversion cycle (CCC) and profitability;
The operating cycle should also be assessed positively, as the average performance and median results in the entities operating in groups are lower than those of stand-alone companies. In a situation where enterprises operating in groups have obtained higher liquidity, the results of the operating cycle should be lower than those of stand-alone entities;
Renewable energy companies operating in purchasing groups are better at managing their stocks than those operating independently. The main reason for this is the use of the central warehouse by renewable energy companies operating in purchasing groups. The research shows that the share of inventories in current assets is lower in enterprises operating in purchasing groups;
The studies also show that acting in a purchasing group, by exploiting economies of scale, allows renewable energy companies to negotiate favorable repayment terms with suppliers. Shorter cycles of liabilities rotation in companies operating in purchasing groups prove higher financial liquidity. It also means greater financial security for renewable energy enterprises operating in purchasing groups than enterprises operating independently;
The research has also shown that the profitability of renewable energy enterprises is significantly influenced by a larger share of receivables in the asset structure and the level of credit position in relation to enterprises operating independently. Better financial condition of enterprises operating in purchasing groups allows extending the cycle of receivables rotation, which is an important motivator encouraging customers to increase purchases in these enterprises. These actions also increase the profitability of conducting business activity by renewable energy enterprises operating in purchasing groups in relation to those enterprises which operate independently.
In the future, a larger proportion of companies operating in the renewable energy sector should be covered by this study. The demand for renewable energy will continue to grow, which should be seen as an incentive for further research. Although the world’s energy demands have decreased significantly in the early 2020 period, this trend is unlikely to continue in the long term. This uncertainty is linked to the pandemic and the speed at which the world economy is recovering from before the outbreak. However, it must be recognized that the share of renewable energy consumption in the energy consumption structure will continue increasing. Poland is in a specific period of its operation, which may, although should not, have the impact on research results. For this reason, this type of research should be extended in the future to other European Union countries as well.
Due to their nature, the results of these studies can probably be implemented in any country. There is much evidence—both in theory and in practice—that cooperation promotes synergies [
68]. The prerequisite for the implementation of renewable energy purchasing groups in a given country is a similar share of renewable energy in total energy. A similar share as Poland has several European Union countries. The share (%) in selected countries is presented in
Figure 7.
Due to similar market and entrepreneurial developments, this would be possible especially in Central and Eastern European countries. However, additional studies are needed to confirm this statement.