nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2015‒03‒27
forty-one papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Developing Asian Innovation Scoreboard: Measuring National Innovation Capacity for Underdeveoped Countries By Joseph Kang
  2. Conceptualizing and Developing Alignment Model between Business Strategy and Knowledge Management Strategy By Yue-Yang Chen; Hui-Ling Huang
  3. Time Lens perspective for Assembly Type Manufactures By Yoshiyuki Nakura
  4. The impact of Human Capital Management on the Innovativeness of research Center: The Case of Scientific Research Centers in Algeria By Samah SOULEH
  5. Contribution of R&D services to added economic value in Estonia By Aaro Hazak; Raul Ruubel
  6. Revisitation to R&D market failure with spillover effects: A real option game approach By Gihyun Kwak; Jeongdong Lee
  7. Making business green and green into business By Pekka Tervonen; Harri Haapasalo
  8. Prioritizing strategic business units in the face of innovation performance: Combining fuzzy AHP and BSC By Behrooz Noori
  9. The Cluster Initiatives By Katarína Kramárová; Margaréta Nadányiová; Eva Kicova
  11. Knowledge Sharing Capability and Organizational Performance: A Theoretical Perspective By Anchalee Kokanuch; Khwanruedee Tuntrabundit
  13. Effect of R&D on firms’ growth: discrepancy between sales growth and employment expansion By Donghyuk Choi; Joseph Kang; Chiyong Kim
  14. Technology, regulations, business strategy and business performance on indonesian telecommunication industry By Bambang Budiono
  15. Examining the Liaison between Marketing Communication and Open Innovation, in the Scope of the Hungarian Innovation Clusters By István Kovács
  16. Interfirm cooperation and uncertainty: a study in the ICT Industry By Monika Golonka
  17. Clusters and SMEs: An opportunity to be taken: Algerian Experience By Cherroun Reguia
  18. The influence of corporate board on forming firm-specific assets: Evidence from Japan By Takahiro Nishi
  19. The use of quantitative methods in managing the process of creation a competitive advantage in the industrial region By Joanna Nowakowska-Grunt; Beata Skowron-Grabowska; Anna Wiśniewska-Sałek; Robert Sałek
  20. HRM Intensity, Corporate Entrepreneurship and Organisational Learning Capability in SMEs: What is the Relationship? By Lai Wan Hooi
  21. Exploring the role of Social Media Systems on Knowledge Management for SMEs By Jiachen Hou
  22. Organizational Cultures, Knowledge Management, Organizational Effectiveness: The Relationship and Conceptual Framework By Hamdia Mudor
  23. Knowledge of the Organization and the Effectiveness of Decisions in the Strategic Dimension By Piotr KuraÅ›; Tomasz Lis; Piotr Tomski
  24. Innovation policy, national innovation systems and economic performance: In search of a useful theoretical framework By Jan Fagerberg
  26. Implications for the Development of Local Economies and SMEs in Japan: Perspective from a field survey conducted on Germany, the EU's strongest economy (Japanese) By IWAMOTO Koichi
  27. Balanced Scorecard Application on Tourism Business By Fatma Kubra Celiloglu; Mehmet Sagir
  28. Appearance of entrepreneurial values and strategic orientations in the basic values* By Éva Málovics; Gergely Farkas; Beáta Vajda
  30. Financial constraints and modes of market exit in Slovenian manufacturing and service firms By Nina Ponikvar; Katja Zajc Kejžar; Darja Peljhan
  31. The Moderating Role of Alliance Scope in Solving Partner Differences and Dilemma of Cooperative Form Choice By Chiung-Hui Tseng
  32. Strategic Planning and Contribution of SWOT Analysis in Lodging Enterprises: A Conceptual Approach By Mehmet Sagir; Ilker Turkeri
  33. Trends of Korean technology convergence research: the network analysis focusing on the patent co-classification in Korea and US By Yong-gook Bae; Young-Hyun Jin
  35. Organisational routines may not be effective for the emerging market firms By Rifat Kamasak; Meltem Yavuz
  36. The Role and Impact of Education on Workplace Challenges and Performance: a Romanian Perspective By Serban-Oprescu Anca-Teodora; Stefania-Cristina Curea
  37. The impact of Internet technology on the Romanian banks performance By Lavinia Mihaela Gutu
  38. Economic regionalism and FDI inflows in the ASEAN region By Katalin Völgyi
  39. Top Management Teams group structure and group dynamics as determinants of companies performance. Evidence from Poland By Małgorzata Marchewka
  40. Education as a key factor for the development of social entrepreneurship By Eva Pongrácz
  41. Competitiveness of the Polish Economy against the Background of Other European Union Member States. Selected issues By Iwona Pawlas

  1. By: Joseph Kang (Korea Institute of Science and Technology Evaluation and Planning)
    Abstract: The importance of innovation has been highlighted for the past decades. A number of studies regarding economic growth and innovation have emphasized R&D activities and innovation capacity for one nation’s economic growth. Accordingly, major advanced countries established policies by conducting a comprehensive evaluation on the quantitative and qualitative capacity of their S&T innovation. Various approaches and index systems, such as OECD Science, Technology and Industry (STI) Scoreboard for OECD countries, Nordic Innovation Monitor (NIM) for Northern European countries, Composite S&T Innovation Index (COSTII) for South Korea, among others, are used to evaluate the innovation capacity of a country or a region. Despite the Asian region has many issues to address in order to achieve sustained economic growth, enhanced S&T competitiveness, and improved technological innovation, there has not been a good regional-level evaluation for Asia. Because major international innovation evaluation frameworks are centered on the advanced countries in Europe and North America, they cannot accurately reflect the characteristics of Asian countries (of course, underdeveloped countries), which are on the different economic development stage and have different innovation capacity. The research is to develop an indicator system that reflects the characteristics of Asia, which is named Asian Innovation Scoreboard (AIS). Generally, most of Asian countries are underdeveloped. Therefore, its application could be applied to developing indicator systems that measure innovation capacity of underdeveloped countries. We defined the concept of an innovation scoreboard in consideration of Asian characteristics, developed a preliminary innovation indicator system. And then, we applied the Analytic Network Process (ANP) methodology to examine factors related to the model and indicator system. Finally, we evaluated our indicator system by applying a framework that is developed to evaluate an indicator system by Jung (2013). AIS consist of 43 indicators that represent overall area of innovation capacity.
    Keywords: Asian Innovation Scoreboard, Innovation Capacity, Innovation Indicator, Evaluation, Innovation Policy
    JEL: O32 O38 O00
    Date: 2014–10
  2. By: Yue-Yang Chen (Department of Business Administration, I-Shou University); Hui-Ling Huang (Department of Business Administration, Chang Jung Christian University)
    Abstract: Since knowledge has been regarded as one of the important resources for firms to compete in today’s competitive environment, knowledge management (KM) are so crucial for achieving superior performance. In this vein the strategy of knowledge is likely to be a critical issue of strategic choice for the firm. Evidences showed that the implementation of KM strategy can cultivate organizational dynamic capabilities to improve knowledge quality and quantity, as well as for consolidating the value and practicability of knowledge. Thus, according to the previous research on KM field, this study tries to construct and develop a KM fit model. We contend that the alignment effect will contribution to knowledge management performance.
    Keywords: Knowledge management strategy, Business strategy, Knowledge management performance
    JEL: D83 M10
    Date: 2014–06
  3. By: Yoshiyuki Nakura (Chuo university)
    Abstract: The purpose of this study is time perspective for assembly type manufacturing industry to affect the competitive conditions, which are the constraints of time and a distributed work activity, for every business involved in the value chain. The Internet as a communication media became the industrial infrastructure that supports business activities. Business environment for enterprise activity varies substantially in a short time, became diverse business operation and unique management strategy would be feasible. It has become a difficult to adapt to the changing competitive environment. As a result, between organizations require a positive attitude for communication. A innovation is the way to solve problems. However the goal of innovation is not only to develop new products but also to create various intangible management resources, which are knowledge of the market, and technical know how. Stimulation of this innovation is induced by feedback of information. That is, companies located downstream of manufacturing process as a user, have a knowledge of problem solving, it is likely contributes to stimulate innovation. Information sensitivity for innovation, that is the speed of information processing efficiency and selection of information are the organizational capability.
    Keywords: Time perspective, competitive environment, innovation, information sensitivity
    Date: 2014–06
  4. By: Samah SOULEH (University of Biskra -Algeria)
    Abstract: Nowadays, we are moving towards a knowledge economy where the competitiveness of firms is mainly based on their capacity of innovation, and on the management of their intellectual capital. Moreover, it is widely accepted that firm’s innovation capabilities are more closely linked to their intellectual capital than to their fixed assets. The importance of intellectual capital for innovation has attracted researchers interested in determining its elements and the process by which enhances the innovative capabilities and performance of firms (Carmen Cabello-Medina et al, 2011).There is a multi-faceted description of intellectual capital as proposed by intellectual capital theorists. A study by Sveiby (1987), for example, proposed that knowledge-based assets could be found in three places: the competencies of organization members, its internal structure; such as: patents, models, computer and administrative assets, and external structure such as brands, reputation and relationships with customers (Rosmah et al, 2008). As a general perception, intellectual capital has three components: human capital, structural capital and relational capital (Suciu, 2000).The human capital has been emphasized as one of the key success factors of a company. It can be assumed that most successful companies have organized or at least they should have organized their management of the human capital systematically. The management of human capital can be put into practice by applying competence management and knowledge management practices. Numerous studies of competence and knowledge management have been carried out but the practices of this area are still not very well known (Hannula et al, 2003). Moreover, Subramaniam and Youndt (2005) found that the combination of human and social capital positively affected firms’ innovative capabilities (T.T. Selvarajan et al, 2007). This research aims at examining the impact of human capital management on the innovativeness of Scientific Research Centers through competencies and knowledge management approach. The study was applied to the case of Scientific Research Centers in Algeria; such as: (CREAD, CRSTRA, CDTA, CDER, CERIST, CRBt, CRAPC, CSC, CRSTDLA, and CRASC). The data of the study was collected through interviews and a questionnaire during 2011-2013, and it was analyzed using SPSS 18.0 to determine the interaction between the various factors. The findings broadly support the hypothesis and suggest a number of insights about future studies.
    Keywords: Human Capital Management, Knowledge Management , Competencies Management , innovativeness, Scientific Research Centers in Algeria.
    JEL: O15 M10 O15
    Date: 2014–05
  5. By: Aaro Hazak (Tallinn University of Technology); Raul Ruubel (Tallinn University of Technology)
    Abstract: The role and intensity of knowledge within an economy remains a key success factor for long-term economic growth, increased productivity, competitiveness and socio-economic sustainability. These challenges are particularly important for emerging economies that are yet to catch up frontier knowledge economies. This paper seeks to understand the contribution that R&D services have through added economic value to the GDP in Estonia. Based on the most recent supply and use matrices on the data from year 2009, prepared under the input-output framework of Estonian national accounts, we identify to which extent do the R&D services used in the Estonian economy originate from domestic industries and imports, and how the supplies of R&D services are allocated between intermediate and final uses, including exports. As an output of that analysis we identify the direct contribution of R&D services to added economic value in the Estonian economy to be 0.5% and their primary indirect contribution to be 0.4%. Further indirect effects however exist which need to be quantified under our following studies. Vast majority (93%) of the R&D services used in the Estonian economy appear to be of local origin, generated primarily by companies specialising in R&D services. Export capacity of Estonian R&D services appears to be very limited, contributing 0.2% of Estonian total exports. Overall, we identify that a significant progress is yet to be made to catch up with knowledge frontier countries.
    Keywords: R&D services, GDP, supply and use tables, input-output modelling
    JEL: L80 C67
    Date: 2014–07
  6. By: Gihyun Kwak (Technology, Mangament, Economics and Policy Programme, Seoul National University); Jeongdong Lee (Technology, Mangament, Economics and Policy Programme, Seoul National University)
    Abstract: One of the main topics regarding R&D investment in economics is “R&D market failureâ€. This is imputed that knowledge, which is the primary output of R&D, has spillover effects due to its public-good-like properties. It cause incomplete appropriability of innovating firm and will lead the underprovision of R&D investment in the economy which hinders the process of economic growth as a result. To explain and find solutions for R&D market failure, spillover effects generated in R&D should be thoroughly analyzed. Following earlier literatures on R&D spillovers, we consider two dimensions of spillovers in R&D simultaneously. First one is related to input-side knowledge spillover and second one is related to output-side knowledge spillover. The former implies that information about research activities at one firm may trickles out and influences the research activities of other firms. They are different in affecting incentives to invest in R&D. To consider both spillover effects concurrently, we take real option game approach which can be used to analyze situations with combined strategic interactions among players and uncertain environment. As a benchmark, we first derive an optimal R&D investment rule of a monopolist. Next, we derive an optimal R&D invest rule of a duopolist. To compare both of them, we can find how incomplete appropriaiblity problem of R&D investment is affected by two dimensions of spillover effects. Further, we can derive policy implications such as private R&D investment is stimulated if input-side or output-side spillovers could be mitigated.
    Keywords: R&D market failure, Knowledge spillovers, Real options game
    Date: 2014–10
  7. By: Pekka Tervonen (University of Oulu); Harri Haapasalo (University of Oulu)
    Abstract: Oulu Innovation Alliance (OIA) is a example of triple-Helix consortium. It integrates top know-how from printed intelligence, wellbeing technology, cleantech and 3D internet and brings together research institutions, businesses and public sector organizations. OIA generates cutting-edge global business from research, development and innovation projects and ventures. The essential mission of the Centre for Environment and Energy (CEE) is to be strongly involved in branding Oulu as an eco-innovative city with green economy. Our focus is on air, water, energy and efficiency of resources with measurement technology as a cross-sectional theme. Our vision is to be the number one partner in eco-innovative solutions. Our strategy is to develop a knowledge hub that brings together the fields of environment and energy, thus, creating efficient connections between top experts and research, development and innovation projects (R&D&I projects); and co-operation networks and investors. To achieve our goal, the CEE uses a transparent network of connections where the top research of a chosen field and the business expertise in Oulu can find each other both nationally and internationally. This creates a lasting foundation for co-operation between research and business. Our operational philosophy is based on research programmes and networking which allows for swift and proactive co-operation between research communities and businesses. Through co-operation and joint projects we can develop new expertise and create new business for the world market. The aim of this paper is to describe the theoretical foundation and operative model for our centre of expertise – CEE.
    Keywords: Innovations, environment, energy, cleantech
    JEL: O32
    Date: 2014–10
  8. By: Behrooz Noori (Department of Industrial Engineering, West Tehran Branch, Islamic Azad University, Tehran, Iran)
    Abstract: Large corporations may be composed of multiple strategic business units (SBUs), each of which is responsible for its own profitability. Innovation performance management of SBUs boosts corporation business results. In the present work, SBU ranking based on innovation performance was addressed. The contribution of the proposed model was threefold: (1) it proposed a fuzzy analytic hierarchy process (AHP) for SBU ranking with triangular fuzzy numbers; (2) it provided a comprehensive and systematic framework that combined balanced scorecard (BSC) and fuzzy AHP; and (3) it explored practical application and illustrated the efficacy of the procedures and algorithms. It used a real-world case study in a large steel manufacturing company to present the applicability of the system. Finding SBU priorities would help the corporations to develop strategies and policies to manage and improve SBU performance.
    Keywords: strategic business unit, innovation performance, SBU performance, balanced scorecard, fuzzy analytic hierarchy process, steel sector
    JEL: C44 L25 L21
    Date: 2014–10
  9. By: Katarína Kramárová (University of Zilina in Zilina, Faculty of operation and economics of transport and communications, Department of economics); Margaréta Nadányiová (University of Zilina in Zilina, Faculty of operation and economics of transport and communications, Department of economics); Eva Kicova (University of Zilina in Zilina, Faculty of operation and economics of transport and communications, Department of economics)
    Abstract: The development of the national economy of any country is (besides others) highly addicted to the economic success of its business entities. However, due to the process of trade globalization and market liberalization, the business environment has become more competitive that requires companies to build up own competitiveness not only in the domestic, but as well in the international measure. If we take into account the fact that approximately 99% of Slovak businesses are formed by small and medium enterprises (SMEs), next that our economy has character of opened one (in the meaning of export and import transaction), to compete with rival multinational companies is a question of their daily survival. The way how to support the development and competitiveness of such kind companies (that the practice has proved as well), consequently the regional and national economic development, the concept of business clusters is considered. “Business clusters are a striking and common feature in today´s economy, nonetheless it is not exactly a new phenomenon – it has been the object of attention from a wide variety of social scientists†(Kuah, 2002, p. 207), economists and practitioners for much of this century. Currently, in broader sense of word, we may talk about the clustering of different economic activities – about the close cooperation between cluster members (constituents) such as different kinds of entrepreneurs of different size and business history, universities, independent research institutions, trade associations, and government and its institutions. The role of business clusters has become increasingly important for the Slovak economy, too.The presented paper deals with the concept of business clusters. Briefly, at first its theoretical aspects are discussed (mainly from the point of view of its ability to support building competitive advantages for businesses and regional/national economy). Then we focus on brief presentation of the Slovak cluster policy and official cluster initiatives in Slovakia.
    Keywords: cluster, cluster initiatives, cluster policy, competitiveness, cooperation, globalization, innovations, regional development
    JEL: F43 R11
    Date: 2014–12
  10. By: Francesco Bogliacino
    Abstract: In this article we discuss how to summarize the persistent and large heterogeneity in innovative behaviour and economic performance. A Revision of the Pavitt (1984) taxonomy - covering manufacturing and services, as well as ICT activities – is proposed as a key tool for identifying common characteristics and diversities in patterns. An extensive analysis of Innovation Survey data, on sources, objectives, inputs and outcomes of innovation, allows us to test alternative industry groupings, leading to an extensive assessment of a Revised Pavitt Taxonomy that is able to capture major structural differences in the relationship between innovation and performance. As industries' classifications has changed from NACE Rev.1 to NACE Rev.2 in 2008, a Revised Pavitt taxonomy is also provided for the new industries.
    Keywords: Innovation, Innovation Surveys, Pavitt Taxonomy.
    JEL: O30 O33
    Date: 2015–03–16
  11. By: Anchalee Kokanuch (Khon Kaen University); Khwanruedee Tuntrabundit (Khon Kaen University)
    Abstract: Knowledge sharing aspect can be described by which organizational employees exchange, collaboratively generate their knowledge, and integrate it into organizational knowledge. To date, studies on antecedents for knowledge sharing capability and knowledge sharing success are rare, and little research concerning the role of knowledge sharing capability in organizational performances has been conducted. This paper, therefore, focuses on three areas of knowledge sharing capability: dimensions of knowledge sharing capability, the antecedents of knowledge sharing in an organizational context, and their consequences that were built upon the review of previous empirical studies. According to the existing literature, integrated organizational structure, organizational climate, motivational work design, and organizational culture play roles on knowledge sharing. Three dimensions of knowledge sharing capability (i.e., knowledge sharing readiness, richness interchanging knowledge, and continuous knowledge integration) are accordingly developed for this study. In this study, knowledge sharing outcomes are analyzed by knowledge sharing success and organizational performances. This conceptual framework can be used to foster the effectiveness of knowledge sharing at the organizational level.
    Keywords: Knowledge sharing capability, knowledge sharing success, organizational performances
    JEL: D21
    Date: 2014–06
  12. By: Francesco Bogliacino
    Abstract: The “virtuous circle” between innovative inputs, outputs and economic performance is investigated in this article with a three equation model highlighting feedback loops and simultaneous relations. An empirical test is carried out considering innovative expenditure, innovative turnover and economic results in a sample of Italian manufacturing firms which are ‘serial innovators’. We use data for the period 2000-2008 from a rich panel of Italian firms over 50 employees drawn from ISTAT, the National Institute of Statistics, including data from three waves of Community Innovation Surveys. The model we use extends the one developed at the industry level by Bogliacino and Pianta (2013a, 2013b), confirming previous findings. For the – rather limited – core of Italian persistent innovators, results show the complex links at play, the lags in the effects of innovative efforts, and the feedbacks between economic success and the ability to sustain innovation expenditure.
    Keywords: Innovation, economic performance, three equation model, Italian firms
    JEL: L6 L8 O31 O33 O52
    Date: 2015–03–16
  13. By: Donghyuk Choi (KISTEP); Joseph Kang (KISTEP); Chiyong Kim (KISTEP)
    Abstract: In this paper, we analyze the effect of firms’ R&D investment on sales growth and employment expansion. We attempt to shed light on the R&D investment effect by comparing the difference of R&D influence on these two growth dimensions. The estimation results of the panel fixed-effect model show that the previous year’s R&D investment has a significant and positive association with the current year’s sales growth but does not result in significant employment expansion. We also conduct a two-digit industry-level analysis based on the Korean Standard Industrial Classification (KSIC), using a quantile regression model, to examine how the discrepancy between sales growth and employment expansion differs between industries. Among various manufacturing industries, high-tech industries such as electronics are characterized by large discrepancies. Based on the estimation results, we discuss industrial policies for sustainable growth when a nation such as South Korea follows a high-growth strategy by increasing the rate of R&D investment.
    Keywords: R&D, firm growth, sustainable growth
    JEL: L25 O43
    Date: 2014–07
  14. By: Bambang Budiono (Telkom university, pt. telkom indonesia)
    Abstract: Telecommunication industries in indonesia have currently entered a phase which people's awareness of knowledge on the information technology-based products and services increases. some of the phenomena that occur in the industries are : (i) the technology develops rapidly, (ii) the telecommunication regulations are frequently overdue in anticipating the user needs and business requirements, (iii) the income of the executants,signed by the average revenue per user (arpu), tends to decline hence the profit per customer decreases; (iv) the strategy implementation by the company or business unit in these industries are relatively the same. these conditions require the industry players to determine the proper steps in anticipating the current competition. therefore, this research will explore the correlation among the variables of technology , regulation , business strategy , and the business unit performancein order to formulate the correlation among the four variablesthe research is aimed to produce a study concerning the correlation among technology,regulation,business strategyy,and unit business performancein the telecommunication industries in indonesia. the research used descriptive and verification by conducting a survey to 34 samples with the units of analysis covering the business units in the four largest telecommunication operators in Indonesia. data were obtained from the results of observation, questionnaires and interviews, and partial least square (pls) was used for analysis and hypothesis testingthe results of this study show that there is an impactof technology on business unit performance through the regulation and business strategy. the impact of technology may happen through the regulatory and business strategies. at the same time, the impact of technology on both business strategy and business unit performance directly is extremely low, and so is the impact of the regulation on the performance of the business. the impactof regulation on the performance of the business unit will be significant if it is through the business strategy
    Keywords: Technology, Regulation, Business Strategy, Business Performance
    JEL: M20
    Date: 2014–05
  15. By: István Kovács (Budapest University of Technology and Economics, Department of Management and Corporate Economics)
    Abstract: In the last decade, a new phenomena has appeared in the scope of innovation, deriving from the exaggerated perception of the forming and optimizing effects of the community groups coming exist outside of the company which have an essential role to boost up its competitiveness in the future. Thus many companies have realized that sharing their innovations infers better position in the market.It indeed contributed to the widespread of this concept. Nonetheless this phenomena – non episodically – brings additional advantages for the company, such as exploitation of the own market with enhanced research capacity or building in originally not existed ideas to the current capital (Chesbrough, 2003).On the other hand, open innovation can be described as the flow of direct exploitation of knowledge for the sake of accelerating internal innovation along with expanding markets to its external applicability. On the market this philosophy appeared firstly with the open source software’s (West and Gallagher, 2004).In this manner, open innovation is a paradigm that assumes internal and external ideas are inseparably applied together when a company tends to develop technology, toolkit and communication. This business model is about to utilize even internally and externally created ideas to create values, simultaneously indicates internal movements to exploit a certain (created) value. As a result, open innovation brings significant advantages to the companies which become capable to obtain intellectual power from outside their boundaries (Gassmann, Enkel and Chesbrough, 2010).In Hungary, the idea of open innovation is widely supported by the innovation clusters (currently 23 are operating in Hungary). The target population of my research was made up of the accredited innovation clusters. The duration of data registration took place between July 2011 and May 2013, during which period a total of 21 innovation clusters earned the title accredited cluster. In my assessment I managed to contact 18 accredited innovation clusters, which is 85.71% of the entire target population (access rate). The result and practical significance of my study shows that innovation clusters are relevant organisational forms during the examination of open innovation. Because from networks they secure wider platform for cooperation; help the integrity of knowledge through collective projects and create trustful atmoshpere between the members using different communication technologies and practices.
    Keywords: innovation, open innovation, communication, clusters
    JEL: O32 M31
    Date: 2014–10
  16. By: Monika Golonka (Kozminski University)
    Abstract: In this empirical study, I take the perspective of the firm in order to explore and understand forming and configuring interfirm cooperation, applying a firm’s alliance portfolio approach. The majority of studies have found interfirm cooperation to be crucial for acquiring resources, increasing firms’ performance, and building competitive advantages, especially in the most globalized industries, knowledge- and technology-intensive and characterized by a high level of uncertainty. Many studies have explored the impact of alliance portfolio configuration on firms’ characteristics. However, little attention has been focused thus far on phenomena of alliance portfolio forming or its impact on portfolio configuration. In order to fill this gap, I applied a mixed method approach, including a multi-site study, and analyzed the phenomena of alliance portfolio forming in 26 ICT firms.The results indicate that, in the same institutional environment, firms conduct various cooperation strategies and create different alliance portfolios. The major reason for this is the different approaches to uncertainty and trust. The results show that initial trust is a crucial factor influencing firms’ ability to take advantage of uncertainty. Moreover, a higher ability to take advantage of uncertainty—namely, trusting instead of applying calculative uncertainty reduction mechanisms in forming interfirm relationships—is a major factor distinguishing the hyper-growth firms from the remaining ordinary analyzed firms. The results contribute to the understanding of approaches to uncertainty and types of trust in forming firms’ alliance portfolios as well as understanding factors—other than institutional ones—behind firms’ cooperation strategies.
    Keywords: Uncertainty, Interfirm Cooperation, Alliance Portfolio Forming, Trust, ICT Industry
    JEL: P13 M10 L24
    Date: 2014–07
  17. By: Cherroun Reguia (University)
    Abstract: Companies face a strong competitiveness that characterizes the economic environment; however, the shape of this competitiveness has been changed due to many factors to shift from pure competitiveness, where each company works in isolation for its own benefits, to a new sort of competitiveness under a kind of cooperation between many companies and other economic actors, sharing local resources, using similar technologies, abecause they need to be near from the required financial and human resources, as well as the innovation resources, for obtaining the raw materials in high quality and low prices, meanwhile to find near markets to distribute their outputs. This can be only if they work in a region that contains all that through clustering and networking. These linkages and alliances may be between big companies from both private and public sector, as well as small businesses that have been extended worldwide in an accelerated pace. This new type of companies “SMEs†with their specific characteristics need, such kind of cooperation to face the strong competitiveness and to benefit from the external economies, then to maintain a significant market part. In this context Algerian authorities work to implement effecient strategies to encourage clusters in the interest of SMEs in many fields.This paper is divided into three parts; the first one aims to give a theoretical base about the notion of “clustersâ€, the advantages of clusters, types of clusters, and the second part is about SMEs and how can they get benefits from clustering. The last part discusses the Algerian experience in adopting clusters strategies.
    Keywords: Clusters, SME's, Networks.
    Date: 2014–05
  18. By: Takahiro Nishi (Meiji University)
    Abstract: In this study, I have examined the relationship between the corporate governance structure and corporate strategy. While many research works have successfully revealed coherence between board structure and environmental elements, a few studies eliminate the effect of corporate governance on corporate strategy and strategic choice. Previous studies around corporate governance and strategy have focused mainly on the influence of shareholders on corporate diversification and R&D policy, as well as the ownership structure and board’s risk attitude on strategic choice. However, previous studies failed to reveal the effect of corporate governance on accumulating distinctive capabilities that would be the source of competitive advantage. The rent appropriation perspective is applied in this study to consider the effect of corporate governance on accumulating firm-specific assets. The rent appropriation perspective advocated by Coff (2010) gives hints on considering this problem. Dynamic capabilities orchestrate and reconfigure the existing resources into new markets and coordinate appropriate distribution of resources into production factors. The consideration and discretion of the corporate board can lead to changing the allocation of these distinctive resources and accumulate distinctive capabilities. In other words, the configuration of corporate governance would discipline and stimulate innovation in the corporation. Corporate governance would be appropriate when this configuration fits for environmental demand. I have considered the strategic implications of corporate governance by studying recent corporate governance reforms in Japanese electronics corporations that have struggled in sluggish performance for many years. Using quantitative methods, this study has examined the interaction effects of ownership structure and growth opportunities on R&D investment mediated by the corporate board. It also explores the influence of the corporate board on accumulating firm-specific assets by employing firm-specific assets as variables. In this study, I have successfully revealed the mediating role of the corporate board in allocating corporate rent to stakeholders, which creates distinctive capability. Further, this study has found that coherent patterns among board governance structure and ownership characteristics and product architecture do exist.
    Keywords: Corporate Governance, Board of Director, Strategy, Firm-specific assets
    JEL: M10 D23 M16
    Date: 2014–10
  19. By: Joanna Nowakowska-Grunt (Czestochowa University of Technology); Beata Skowron-Grabowska (Czestochowa University of Technology); Anna Wiśniewska-Sałek (Czestochowa University of Technology); Robert Sałek (Czestochowa University of Technology)
    Abstract: Building the region which will be characterized by high industrialism and competitiveness requires an examination of its production capabilities. It is important to know the close environment, which will determine the suppliers and the society. This will allow to learn about the culture and preferences of the local community in terms of education and practical skills. Close environment is also approximately industrial businesses, its characteristics indicate both a glut and a shortage of organizations and businesses in terms of local government institutions as well as financial or service e.g. in the field of logistics services, improving the industry functioning. Such knowledge enables for building a strong local and regional industry.The most suitable methods used for this type of activity are quantitative methods. This article will describe the practical use of index method as a way to explore the potential of the region. Acquiring information in this area, allows for creation a strong economy industrially oriented, for the purpose of stabilizing its competitive position considered in national and global way.
    Keywords: management, quantitative methods, region
    JEL: C00 C49 R11
    Date: 2014–10
  20. By: Lai Wan Hooi (The University of Nottingham Malaysia Campus)
    Abstract: The general purpose of this proposed study is to analyse the effect of HRM practices on corporate entrepreneurship (CE) and organisational learning capability (OLC) in the SMEs in Malaysia. HRM practices in this study will encompass training and development, performance appraisal, incentive and compensation, teamworking, and recruitment and selection. With the exception of teamworking, all the other domains match the four HRM functions proposed by Fombrun et al. (1984) and four of the six HRM domains proposed by Way (2002). Specifically, the main aim of the study will be to examine the effect of each component of HRM on the three dimensions of CE (innovation, corporate venturing, and strategic renewal) as well as the effect on four dimensions of OLC (managerial commitment, systems perspective, openness and experimentation, and knowledge transfer). By setting out to validate the effect of HRM practices on CE and OLC in SMEs, this study will make a significant contribution to HRM literature by empirically examining the significance of each HRM component on each dimension of CE and OLC. This is in response to call for studies to relate selected HRM practices to individual CE dimensions (Schmelter et al., 2010). Furthermore, I seek to contribute to the literature by identifying the significance of each HRM component on each dimension of OLC.
    Keywords: HRM Intensity, Corporate Entrepreneurship, Organisational Learning Capability, SMEs, Malaysia
    JEL: L26
    Date: 2014–10
  21. By: Jiachen Hou (University of Strathclyde)
    Abstract: The popularity of social networking tools have significantly contributed to the change in the business models, there has been explosive growth in the number of use of social media tools among enterprises. With the rise of using web tools, the management of knowledge become crucial for enterprises as they understand effectively managing collective intellect can help firms to quickly response to the changeable market. The significance of SMEs to the global economy is obvious. However, current researches show that many SMEs are not taking advantage of the developing knowledge economy and move towards the e-business era. While it is generally accepted that there are much challenges faced by SMEs in utilising web tools when comparing with large sized enterprises, it is clear that very little work has been done to gain understand of using social media for knowledge management purpose. To address this gap, this research investigates the adoption of social media tools for managing knowledge among SMEs. There are two objectives: first, to explore the use of social media among SMEs, and second, to define in detail how social media is being put into practice and contributing towards knowledge management.
    Keywords: Social Media, SMEs, Knowledge Management
    JEL: M15 M19
    Date: 2014–10
  22. By: Hamdia Mudor (Prince of Songkla University)
    Abstract: One of the major challenges an organization faces is to manage its knowledge asset, the use of knowledge is seen as basis for organizational effectiveness. This study investigates the conceptual framework of organizational culture has been significant affected knowledge management, and also examine the relationship of both variables with organizational effectiveness. The results indicate that organizational cultures are positively associated with knowledge management as well as organizational effectiveness. Furthermore, knowledge management is positively related to organizational effectiveness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
    Keywords: Organizational Cultures, Knowledge Management, Organizational Effectiveness
    Date: 2014–05
  23. By: Piotr KuraÅ› (Czestochowa University of Technology); Tomasz Lis (Czestochowa University of Technology); Piotr Tomski (Czestochowa University of Technology)
    Abstract: Knowledge, being an intangible resource of the enterprise, plays a very important role in the competitive fight on the dynamically changing market. It is the basic element of decisions taken at every level of management. It simultaneously affects their effectiveness. Possibly full and appropriately applied knowledge increases the probability of achieving the intended effects. Simultaneously, it reduces the risk of failure of the activities taken on their basis. Decisions, referring to poorly predictable future, have direct impact on the position of the enterprise. Therefore, it is necessary to identify the desirable characteristics of knowledge and the conditions of its practical use, which are of the key importance in the context of optimization of effectiveness of decisions in the strategic aspect.
    Keywords: knowledge, strategy, decisions
    Date: 2014–10
  24. By: Jan Fagerberg (Aalborg University, University of Oslo and University of Lund)
    Abstract: The term Òinnovation policyÓ started to penetrate the policy discourse a few decades ago and it may be time to take stock of what is learnt and consider what the challenges for the theory and practice in this area are. This paper contributes to this process by focusing on the extent to which we have a theoretical framework that is sufficiently helpful. The first section introduces the issue. Section 2 discusses theoretical frameworks of relevance for innovation policies and considers the relationship between their underlying assumptions and available evidence from innovation-surveys. Based on recent advances in innovation-systems theory, section 4 presents a synthetic framework for the analysis of innovation policy. Finally, lessons and challenges for future work in this area are considered. Empirical evidence from the Nordic area is introduced at various points to illustrate the relevance of the arguments brought up during the discussion.
    Date: 2015–03
  25. By: Małorzata Kucharczyk (Kozminski University); Iwona Cieślak (Kozminski University)
    Abstract: The role of management accounting in improving the efficiency of business entities management has been described in literature repeatedly. The positive side associated with its use has long been known and the creation of new tools of management accounting only strengthens it. However, so far the management accounting has been used primarily in large enterprises. Numerous examples showing possibilities of its practical application, its advantages and benefits of using it are cases based on experience gained in large business entities. Does it mean that management accounting cannot be applied in small and medium-sized enterprises?The article takes the issue of application of management accounting in small and medium-sized enterprises. The assumptions of management accounting in relation to the specific needs of small and medium-sized enterprises will be discussed. The experience in terms of the applicability of accounting in small and medium-sized enterprises will be analysed. The review of the issues being faced by the managers in small and medium-sized enterprises concerning the application of management accounting tools will be conducted. Challenges for people professionally engaged in management accounting will be intimated. This article is debatable. It is a review of the literature. It complies the result of work concerning the application of management accounting in small and medium enterprises coming form various research centres and other centres professionally dealing with accounting. It also refers to the issue of supporting managers in small and medium-sized enterprises in application of management accounting tools. Its aim is to seek answers to the question whether the outsourcing of accounting in small and medium enterprises creates the possibility to popularize the management accounting. This article is also a reason to consider undertaking further works, the effect of which should be growing knowledge about management accounting among managers/owners of small and medium-sized enterprises as well as the development of abilities of the practical application of management accounting tools in small and medium enterprises. Such work will thus contribute to the improvement of effectiveness of the enterprises’ operation. This is especially important in the economy of the European Union. According to data contained in the ANNUAL REPORT ON EUROPEAN SMEs 2012/2013 in 2012 small and medium-sized enterprises were the place of employment of about 86,8 million of people and the development of over 57% share in gross value added generated by the private, non-financial economy in Europe.
    Keywords: management accouting, small and medium - size enterprises, accounting tools
    JEL: M49
    Date: 2014–10
  26. By: IWAMOTO Koichi
    Abstract: The Japanese government's Abenomics policy has been beneficial mainly for some large companies thus far, and policies that also can spread the benefits to local areas and small and medium-sized enterprises (SMEs) are needed. It is regretful that no such model exists in Japan, thus I conducted a field survey on Germany to look at its successful models of developing the local economies and SMEs. Germany shares similarities with Japan, including manufacturing as its main industry and an aging and decreasing population (The fertility rate in Germany in 2012 was 1.38 and is lower than that of Japan in 2013, 1.43). Germany was once called the "sick man in Europe," but now it has the strongest economy, having succeeded in economic revival, and is now known as "the only winner in the EU." Economic development output was spread widely to the people in Germany and other nations: the Gini coefficient is 0.293 in Germany and 0.336 in Japan (OECD statistics, 2012). The aim of my field survey is for Germany's policies to be introduced to Japan, which may help Japan regain its strong industrial competitiveness.This paper provides the implications for the resolution of mid-long term and structural issues of Japan's local economies and SMEs from the viewpoint of a field survey conducted in Germany.
    Date: 2015–03
  27. By: Fatma Kubra Celiloglu (SELCUK UNIVERSITY); Mehmet Sagir (SELCUK UNIVERSITY)
    Abstract: The survival of businesses in today's information age, is bound and adapt to the competitive conditions, internal and external environment. In this case, business sectors should take serious steps about performance management in order to achieve success. It is becoming necessity to measure of performance which is a concept that allows comparision and to identify themselves with the past or with the other business sectors.Growing diversification of activities in the tourism sector, is creating new jobs and revenue. Globalization in a world of tourism businesses, the competition is increasing and it has become the inevitable on the result of this increased competition means many years to survive and profit seeking to tourism enterprises, strategic management, marketing, public relations and performance management care.Balanced Scorecard, which is a performance evaluation method has become the system management tool in tourism business.Tourism businesses are contributing to four dimensions such as financial size, customer size, the inner workings of the process and with dimensions of learning and development management practices. This study will be focused on tourism businesses and applications of balanced scorecard and results to be obtained on contributing to the tourism business
    Keywords: Tourism, Tourism Business, Balanced Scorecard, Performance management
    JEL: M00 M10 M19
    Date: 2014–10
  28. By: Éva Málovics (University of Szeged); Gergely Farkas (University of Szeged); Beáta Vajda (University of Szeged)
    Abstract: According to Schwartz, behaviour is oriented by values through motivations. In our opinion, these values in case of the entrepreneurial behaviour are expressed as entrepreneurial values and factors of strategic orientations in the specific literature. Entrepreneurial orientation includes the dimensions of risk taking, innovativeness and pro-activeness. Learning orientation summarizes the factors of common vision, a commitment to business and the ability to accept bottom-up initiatives in a well-defined approach. We study these orientations because our goal is to describe the value structure of an innovative entrepreneurial behaviour what is desirable in a science park. At first, we investigated the difference between the values of Hungarian citizens and Hungarian entrepreneurs. After that, we assessed whether there is a difference of values among entrepreneurs who have different levels of entrepreneurial or learning orientation. Our results suggest that Hungarian entrepreneurs differ from other citizens in several dimensions of fundamental values, and they also differ in having different strategic orientations.
    Keywords: values, entrepreneurial orientation, innovativeness, learning orientation
    JEL: L26
    Date: 2014–10
  29. By: Mehmet Nuri SALUR (Necmettin Erbakan University Faculty of Social and Humanities Sciences)
    Abstract: Small and Medium-Sized Enterprises (SMEs) concept is a concept used in almost all countries. Concept stated size; economy, industrialization level, market size, industry and the varied used production methods between, depending on countries. Today, all the major companies, many risky ventures, innovation and patents are behind the small medium sized enterprises. These functions play an important role in the economy, they have a relatively weak structure and low possibilities when combined with supporting small medium sized enterprises in all economies is an issue that still preserves the validity and in this context, various programs are being implemented in many countries. In this context, the creation of securities exchanges catering to small medium sized enterprises and encourage small medium sized enterprises to benefit from these capital markets is of great importance. In cases where the current financing methods are insufficient initial public offerings as an alternative source of financing of small medium sized enterprises, not only financial but also organizational aspects of the chronic shortage has the potential to eliminate. On public offerings small medium sized enterprises by strengthening their institutional structures to ensure the transition to corporate governance as well as corporate governance principles that have internalized the biggest obstacle to growth rates that will overcome the problem of access to finance. As a result of the public offerings, small medium sized enterprises are more resistant to crises Whilst the closure of the company through the front of a stable socio-economic development will contribute significantly. In our study, all this digression in the direction of some of the EU and other developed/developing countries small medium sized enterprises in exchange for the implementation of Turkey's small medium sized enterprises Stock Exchange application is discussed and examined and small medium sized enterprises ring-opening of the financial performance of the positive effect that has been found.
    Keywords: SMEs, Stock Exchange, Public Offering
    JEL: D51 D51 D51
    Date: 2014–06
  30. By: Nina Ponikvar (University of Ljubljana, Faculty of Economics); Katja Zajc Kejžar (University of Ljubljana, Faculty of Economics); Darja Peljhan (University of Ljubljana, Faculty of Economics)
    Abstract: The recent financial and economic crisis has brought back the attention to studying the characteristics of surviving firms and those exiting the market. Among these characteristics the access to finance has received large attention, since the economic crisis decreased the availability of finance and increased its costs. Further, literature from industrial organization, entrepreneurship and strategic management all show that factors behind different types of firm exit decisions, such as bankruptcy, voluntary liquidation, mergers and acquisitions (M&A) differ. Our paper studies factors that influence the firm’s decision to exit the market by explicitly considering alternative firm exit modes. Our competing risk models are estimated with a standard multinomial logit model and the alternative multinomial probit model on the population of Slovenian firms in 2006-2012. We distinguish between (1) court driven exit as a result of bankruptcy or forced liquidation; (2) voluntary liquidation, (3) disappearances from the dataset as a result of mergers and acquisitions, and (4) termination based on a resolution/decision of the registration agency or according to the law. We argue that decision over whether to close down a business or to sell out to another company is influenced by financial constraints, firm specific characteristics (size, age, productivity, capital intensity), and industry factors. The paper tests whether different facets of financial constraints and other firm and industry level characteristics hold different degrees of relevance for alternative routes of the firm operations termination. In measuring financial constraints as antecedent to an exit event, we propose the exploratory factor analysis and derive to three dimensions of the financial constraint measure, i.e. liquidity, operational-efficiency factor, and profitability factor and in this way contribute to the financial constraints literature. We contribute to the firm exit literature by showing that court-driven exit, voluntary liquidation and M&A follow diverse exit routes driven by different firm level and industry characteristics. We find that the main difference between bankrupt and liquidated firms is that the choice of exiting through voluntary liquidation is characterized by economic distress while firms choosing to exit by bankruptcy are firms in financial and economic distress. Economically distressed firms have bad prospects because of low or negative profitability and little opportunity for improvement. The main characteristic of financially distressed firms is high leverage level causing problems in repaying debts. Firms that decided to exit by M&A usually have profitability problems, but are not financially distressed.
    Keywords: firm exit, financial constraints, bankruptcy, liquidation, merger and acquisition (M&A)
    JEL: G32 L25 C23
    Date: 2014–07
  31. By: Chiung-Hui Tseng (National Cheng Kung University)
    Abstract: In the past decade, forming alliances has become a popular strategy among firms, and substantial attention has been paid to the selection of a suitable governance form, in particular equity versus non-equity mode. Such a strategic choice is important in that an alliance teams up multiple firms that are divergent, to some extent, in upstream resource endowment and/or downstream market coverage. To bridge inter-partner differences and facilitate cooperation, it becomes necessary to select an appropriate governance structure to organize the collaborative activities. Indeed, studies based on transaction cost economics have provided a guideline that an equity alliance should be formed if the partnership is exposed to greater risks of opportunism and contractual hazards, which are primarily shaped by the degree of asset specificity, observability, and appropriability. Despite adherence to such a tenet, prior studies have seemed to prescribe conflicting cooperative strategies in governing the inter-organizational differences. As previous research noted that alliance scope also plays a crucial role in influencing the probability of partners’ opportunism, it is essential to take into account the contingency of alliance scope in the quandary of the partner discrepancy-governance choice relationship. In determining a pertinent collaborative form, this study seeks to remedy prior oversight by considering concurrently ‘how disparate partnering firms are from each other’ and ‘how vast the domain of collective activities is performed’.
    Keywords: strategic alliance; governance choice; interfirm difference; alliance scope
    Date: 2014–07
  32. By: Mehmet Sagir (SELCUK UNIVERSITY); Ilker Turkeri (ATATURK UNIVERSITY)
    Abstract: In post modern business administration, businesses’ planning its own activities and managing resources according to this, is not enough any more. This situation changes with the effect of globalisation and directs businesses to be strategic.Nowadays in which the importance of strategic management and strategic planning is becoming and important issue for businesses, the control of internal and external environment and management of these provide the advantage of competition. When viewed from this frame, Lodging Enterprises which is a part of tourism sector should be able to plan and applicate a set of activities which creates strategic movement and competition advantage.Lodging Enterprises should firstly make strategic planning for strategic management applications. To make strategic planning, internal and external environment analysis which is SWOT analysis should be practiced. In this study, with some criterias which Lodging Enterprises should take in to account and have already taken into account and also with role in strategic planning results which gained, Lodging Enterprises’ competition strength will be searched/ presented.
    Keywords: Strategic Management, Strategic planning, SWOT Analysis, Lodging Enterprises
    JEL: M10 M19 M00
    Date: 2014–10
  33. By: Yong-gook Bae (Korea Institute of S&T Evaluation and Planning); Young-Hyun Jin (Korea Institute of S&T Evaluation and Planning)
    Abstract: The technological convergence, or the technological fusion, has become more important to create new technologies as well as new industries. As increasing of importance, we reviewed the IPC co-classification and citation information of the United States and Korean patents in 2009, 2010 and 2011. Network analysis methods and indexes including as a degree centrality and a betweenness centrality are used to analyze the characteristics of the technological convergence trends.Various networks were created based upon IPC co-classification and citation information in each country and year. In addition, IPC citation was utilized information between the patents which has different IPCs. Also, in the case of Korean patents, networks were created and analyzed to find the characteristics according to the types of institution such as university, public institution and business entity. Through the analysis, it was found that the trends and the uniqueness of the convergence researches. Those results shows the differences between two countries, the differences and changes between degree centrality and betweenness centrality, the differences between co-classification and citation. Also, it was found that the change according to each years from 2009 to 2011.
    Keywords: patent, convergence, technology, SNA
    JEL: D85 O32 O33
    Date: 2014–12
  34. By: Claudia van der Vorst (Universtity of Applied Science Kufstein, Tirol, Austria and Doctoral Student of the University of Riga, Latvia)
    Abstract: In the big global markets, the business requirements for small and medium-sized companies (SME) are changing rapidly. With the fast international growth of even very small companies, their need for a professional IT and ERP system support is higher than ever. A study of the Center for Enterprise Research of the University of Potsdam analysed 1300 SME companies and stated that about 70% of the companies are planning to invest in an ERP System implementation or are in the middle of implementation. A trend towards a decline of the significance of an ERP System specifically for SME is not noticeable (cf. Gronau, 2012). There are significant trends where SME companies and ERP providers will have to work on the next 5-10 years. Firstly, due to the high internationalization specifically of German SME companies, the ERP provider needs to invest in very specific industry solutions which can be integrated. In addition, the core functionality and processes have to improve even more. Secondly, technology and IT architecture are gaining importance. Finally, ERP has to provide mobile solutions in the years to come. The study claims that the current need is under 50% but increasing. Similar to cloud computing where currently the companies are still hesitant on the one hand, but dependent on the technological details, more and more companies are interested in new solutions (cf. Gronau, 2013).On the bases of the experience with business Case Studies, a Questionnaire has been developed and executed with over 60 business experts. All experts had years of experience in the field of ERP selection and implementation in the German and Austrian market. The main hypothesis that there is a relation between the satisfaction with an ERP system and the execution of the selection process could be confirmed along a set of criteria like budget constraints and time pressure. In summary; there is hardly a structured selection process and satisfaction with the ERP system is not measured but all involved people have an opinion based on “gut feelâ€.
    Keywords: Critical Success Factors (CSF), Enterprise Resource Planning (ERP), Small and Mid-size Enti-ties (SME), Decision Making, Selection.
    JEL: O39 M15
    Date: 2014–05
  35. By: Rifat Kamasak (Yeditepe University, Faculty of Commerce); Meltem Yavuz (Istanbul University; School of Transportation and Logistics)
    Abstract: Understanding the internal dynamics of an organisation’s routines makes it possible to learn more about the organisation, observe the operation of power dynamics, and foresee the potential conflicts that are likely to emerge (Pentland & Feldman, 2005). Eisenhardt and Martin (2000, p. 1106) identify routines as “complex and analytic processes that extensively rely on existing knowledge, linear execution, and repetition to produce predictable outcomes at different organisational levelsâ€. Routines facilitate the learning in the organisations about “what the firm does and how it does†through being transmitted to firm’s culture and employees (Zollo & Winter, 2002). Although organisational routine literature based on the research that was mostly conducted in developed countries suggests a strong association between routinisation and firm performance and sustained competitive advantage, this may not always be true especially for the emerging market firms. Emerging market firms operate in a business environment where rapid economic growth, political instability, investor heterogeneity (as a result of offering different information sets to different investors), high level of uncertainty, financial volatility and risk, less transparency and legal frameworks allowing opportunism, corruption and rent shifting dominate the whole market (Hoskisson et al., 2000; Nowak-Lehmann et al., 2007). Hence, strategic flexibility which “allows firms to respond quickly to dynamic and unstable environmental changes by committing resources to new courses of action, and recognise and act promptly when it is time to halt or reverse existing resource commitments†(Liu et al., 2013, p. 82) is particularly important for the firms operating in emerging markets. Therefore, repetitive and stable routines may not address the context and environment-specific problems of the firms and high strategic flexibility requirement of emerging market firms may discharge routinisation for their strategic operations.As a support to this argument, a recent research (Kamasak, 2013) that was conducted on a multi-industry sample of 176 Turkish firms revealed some noteworthy results. In the study, whilst no relationship between organisational routines and organisational performance was found business processes were significantly associated with performance. In fact, this finding is consistent with the high strategic flexibility requirements of the Turkish firms. Therefore, the suggestion about the ineffectiveness of organisational routines for emerging market firms may be explained within the context of high strategic flexibility requirements of them as a consequence of the country-specific hyperchanging social, economic, and political environments that were highly observed in most emerging markets.
    Keywords: Organisational routines, strategic flexibility, firm performance, emerging market firms
    JEL: M10
    Date: 2014–06
  36. By: Serban-Oprescu Anca-Teodora (Bucharest University of Economic Studies); Stefania-Cristina Curea (Bucharest University of Economic Studies)
    Abstract: „This paper was co-financed from the European Social Fund, through the Sectorial Operational Programme Human Resources Development 2007-2013, project number POSDRU/159/1.5/S/138907 "Excellence in scientific interdisciplinary research, doctoral and postdoctoral, in the economic, social and medical fields -EXCELIS", coordinator The Bucharest University of Economic Studiesâ€. This paper provides a review of theoretical studies linking university education and developed sense of adaptability and performance in a business oriented career. The study starts with a review of field literature connecting education to career development and work insertion, details the role of education on developing workplace abilities and aptitudes and contextualizes theory into an empirical study that uses exploratory interviews with business people and students from Romania in order to highlight how education interferes and impacts workplace requirements and performance standards in the present Romanian job market.
    Keywords: education, university schooling, workplace performance, selection
    JEL: A00 I20 I21
    Date: 2014–12
  37. By: Lavinia Mihaela Gutu (Bucharest University of Economic Studies)
    Abstract: In the last decades the Internet technology era has developed increasingly more and currently it spans the whole business world. Nowadays no manager can conceive the existence of a successful business without its existence in the online environment. Therefore, more and more companies have moved a part of their activities on the Internet in recent years. This fact helps them to become more popular and to attract more customers. So, for the business world, it is well-known that a respectable company should have a website. Banks are also involved in this process. The information technology and communication revolution has affected the financial services, too. The majority of banks have websites today. Here they communicate with the public and carry out certain activities with clients so that they no longer have to go to the bank. But how does the Internet influence the performance of a bank? Since it is about a revolution in this field, it is expected that banks’ performance to increase. The presence of a bank on the Internet through a website, the Internet banking and any other activities undertaken by the bank in the online environment such as online advertising should improve its financial results. Even if the bank spends more resources in this regard, it is expected that more customers to be attracted and that operations made by banks’ employees to be replaced with this kind of technology. This paper examines this issue in the case of Romanian banking industry starting with 2005. How has the Internet technology affect the performance of a bank in terms of ROE? Have the banks benefit from this kind of technology revolution or the costs of these service affects their results since the users of this technology is lower than the developed countries?
    Keywords: Electornic banking, banks' performance, Internet banking
    JEL: G21 G29 G30
    Date: 2014–10
  38. By: Katalin Völgyi (Institute of World Economics, Centre for Regional and Economic Studies, Hungarian Academy of Sciences)
    Abstract: The creation of free trade areas and the implementation of other forms of liberalization covering two or more countries to support the effective functioning and expansion of global value chains is not a new phenomena. Since the second half of the 1980s, the rapid expansion of global value chains due to the emerging North-South production sharing have been facilitated by the growing number of regional economic initiatives. In this study, the ASEAN’s regional economic initiatives/agreements are examined to assess the role of economic regionalism in the attraction of FDI and the spread of production networks.The economic cooperation of the ASEAN countries can be divided into two periods. Between 1976 and 1987, the ASEAN’s regional cooperation was aimed at achieving import substituting industrialization. Since the late 1980s, the regional initiatives and agreements of the ASEAN countries have been embedded in an export-oriented, FDI-dependent strategy. The shift in the regional economic cooperation from import substitution to export-oriented and FDI-based strategy was tiggered by the emerging market-led integration in the region. In the second half of the 1980s, efficiency-seeking FDI started to increase in Southeast Asia. Northeast Asian, American and European transnational corporations have created production networks in electronics, automotive and textile/garment industries in the ASEAN region.In the last two decades, the main aim of ASEAN’s regional agreements and intiatives was to transform the region into a single market and production base which is attractive for foreign direct invetments and where production networks can work efficiently. The birth and/or the acceleration of liberalization efforts of several regional initiatives/agreements (e.g. AFTA, AFAS, AICO, AIA) can be linked to the period of 1997-2003, when due to the Asian financial crisis, FDI inflows into the ASEAN region decreased and later stagnated. In 2003, ASEAN agreed on the creation of ASEAN Economic Community by 2015 which is based on former regional initiatives and agreements. The efforts for accelerating regional integration contributed to the fact that ASEAN managed to increase its share in global FDI inflows in the last decade. In 2012, FDI inflows into ASEAN reached a record level. Nowadays, ASEAN countries can draw together nearly as much FDIs as China does.
    Keywords: ASEAN, single market, production networks, foreign direct investments
    JEL: F15 F21
    Date: 2014–10
  39. By: Małgorzata Marchewka (Cracow University of Economics)
    Abstract: In traditional approach, company performance is related to Top Management Team (TMT) group characteristics, such as board size and composition, board tenure, age, experience, education, and competences. Initially, TMT characteristics were considered to have crucial significance for group effectiveness and organization performance. However, there is no consensus as to what extend and which TMT demographic features lead to which outcomes. The conclusion reached after numerous studies suggests that the relation between company performance, TMT effectiveness and TMT characteristics is indirect and more complex.As studies based on TMT characteristics fail to explain company performance, the role of group dynamic is becoming more and more significant in analyzing board’s functioning. Dynamic models based on group processes, such as cognitive conflict, ability to use knowledge and skills, and effort norms, indirectly link group characteristics with company performance. According to the concept of group dynamics, team may be described by its static, i.e. structural, characteristics, as well as by group processes such as process of becoming a group member, acquiring and development of group norms, group cohesion, and group effectiveness. TMT effectiveness is understood as boards’ ability to perform their roles: strategic and operational role, control role, and service role. TMT effectiveness, directly depending on group processes and indirectly on boards’ structure, affects company performance. The aim of the article is to analyze the relations between TMT structural and dynamic characteristics, and their impact on companies performance, basing on the research conducted in Poland among 291 domestic companies listed on the main market of Warsaw Stock Exchange from 2010 to 2013. The project was funded by the National Science Centre (Poland) allocated on the basis of the decision number UMO-2011/01/N/HS4/02166.
    Keywords: Top Management Team, supervisory board, management board, effectiveness, group dynamics, group processes, company performance, Top Management Team structure, Poland
    Date: 2014–10
  40. By: Eva Pongrácz (University of Economics in Bratislava, Faculty of National Economy, Department of Social Development and Labor)
    Abstract: The social economy is an innovative model of economic and social development; its tools support the inclusion of socially disadvantaged people while they simultaneously create jobs. Social entrepreneurship is a new area of business activity, which favours social objectives before profit. In the European education systems, the social economy is still undervalued and it has not enough attention, so in order to develop its concept is desirable to place an emphasis on education not only experts, but also the general public in formal and next education system. This paper focuses on some areas of the promotion of social entrepreneurship in the European area and highlights the need of education about the social economy as a determinant of the development of this sector.
    Keywords: social economy, social entrepreneurship, social enterprise, education, Initiative of social entrepreneurship, qualified social entrepreneurship funds, Strasbourg Declaration
    JEL: J08 A20 J24
    Date: 2014–10
  41. By: Iwona Pawlas (University of Economics in Katowice)
    Abstract: Poland joined the European Union in 2004. Accession to the EU resulted in considerable economic, social and political advantages. It also stimulated competitive development of the Polish economy. An attempt was made in the paper to determine Poland's competitive position against the background of other EU member economies. Competitiveness of Polish goods both on the world market and on Single European Market was studied. Investment attractiveness of Poland and the significance of the inflow of foreign capital for its development were analyzed. Low level of innovativeness was considered one of major barriers for achieving a higher level of competitiveness. The results of Author's own research were compared with the findings of World Economic Forum, Geneva and Institute for Management Development, Lausanne.
    Keywords: competitiveness, Poland, European Union
    JEL: F00 F15
    Date: 2014–06

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