nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2015‒05‒16
twenty-two papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  2. Innovation in small and medium enterprises in the United Arab Emirates By Schilirò, Daniele
  3. Human capabilities and spatial innovation: an empirical analysis at the European level By CHRISTINA KAKDERI; DIMITRA KONSTANTINIDOU
  4. Potential drivers of innovation in the MSMEs in hospitality industry in Istria By Robert Ribarić
  5. Value creation and capturing: the case of the Hungarian agri-food SMEs By Toth, Jozsef
  6. Formation and development of the knowledge economy as a precondition for the country's competitiveness. By Andriy Karakuts; Valeriya Podunay
  7. R&D and productivity in OECD firms and industries: A hierarchical meta-regression analysis By Ugur, Mehmet; Solomon, Edna; Guidi, Francesco; Trushin, Eshref
  8. International Technology Diffusion of Joint and Cross-border Patents By Chia-Lin Chang; Michael McAleer; Ju-Ting Tang
  9. The Role of Knowledge and Innovation Systems in Supporting Farm’s Strategies in GI Areas By De Rosa, Marcello; Bartoli, Luca; Chiappini, Silvia
  10. Assessing European competitiveness : The new CompNet micro-based database By Lopez-Garcia, P. ; di Mauro, F. ; the CompNet Task Force
  11. Solar energy entrepreneurship and regional investment attractiveness By Nikolaos Apostolopoulos
  12. Instruments Supporting Innovativeness of Polish Enterprises By Piotr Kura; Ma Kura
  13. Competitiveness of the European economy By Landesmann, Michael; Leitner, Sandra; Stehrer, Robert
  14. Making Sense of the Elusive Paradigm of Entrepreneurship By David, Audretsch; Donald, Kuratko; Albert, Link
  15. Value as a principal dimension in business model By Marlena Grabowska
  16. Indian Manufacturing Sector: Competitiveness at Stake By Sapovadia, Vrajlal
  17. Inside the Virtuous Cycle between Productivity, Profitability, Investment and Corporate Growth: An Anatomy of China Industrialization By X. Yu; G. Dosi; M. Grazzi; J. Lei
  18. From professionals to entrepreneurs: HR practices as an enabler for fostering corporate entrepreneurship in professional service firms By Kühn, Christopher J.; Eymann, Torsten; Urbach, Nils
  19. Importance of value determinants in management and development of strategies in enterprises in Poland By Bogus Zió
  21. Innovations: a Key Driver for Sustainable Development in Bulgaria By Julia Dobreva
  22. Sustainable competitiveness of destination and resident's attitude towards tourism By Ksenija Vodeb

  1. By: Maldonado, Mauricio (University of Chile); Noronha Vaz, Teresa (University of Algarve)
    Abstract: Studies of local knowledge spillovers have often focused on empirical evidence for core regions, and been related largely to manufacturing, neglecting behavior in less innovative economic sectors in peripheral regions. Tourism in the Algarve region is the main engine of its regional economy. Although frequently considered as a low-moderate innovative sector, competitive tourism firms are becoming increasingly Knowledge Intensive, which may create positive advantages for regional growth. This may improve conditions for the creation and diffusion of knowledge, with cooperative and collaborative interaction contributing to the consolidation of a regional innovation system (RIS). The goal of this study is to provide preliminary evidence of the main sources and vehicles of regional knowledge spillovers affecting tourism firms in the Algarve, generally considered to be a peripheral region. The main sources of knowledge used by micro and small tourism firms (MSTF) are human resources and formal and informal networks. This study detected specific features of a regional innovation platform which, eventually, may give way to a RIS.
    Keywords: Tourism; Innovation; Knowledge Spillover; Knowledge Intensive Services; Regional Innovation System; Algarve Region
    JEL: P25
    Date: 2015–05–08
  2. By: Schilirò, Daniele
    Abstract: This paper focuses on innovation as the main driver of the competitiveness and market success of small and medium enterprises in the United Arab Emirates. The study overviews the still limited literature dedicated to innovation in SMEs in the UAE. It also analyzes the innovation model of small and medium enterprises in the UAE, and focuses particularly on Dubai’s SMEs. The paper highlights the need to strengthen the entrepreneurial culture and promote the development of innovative SMEs with high value added in the UAE. The general purpose of this study is to contribute to the business and innovation literature on SMEs in the context of an emerging economy, namely the United Arab Emirates.
    Keywords: Innovation; SMEs; Firm Strategy; Business Model; UAE’s Economy
    JEL: L0 L53 M21 O31
    Date: 2015–05
    Abstract: The role of human capital for innovation and economic development is widely acknowledged. Yet, though the connection of knowledge and capabilities to innovation has been recognized as early as the theory of Schumpeter (1934), it was the endogenous growth models which emphasized this link and underlined the importance of human capital, due to its effects both on the level of productivity and on the creation of externalities in the form of knowledge spillovers (Romer, 1990). At the same time, along with the growing importance that was given to space and regional economics, different aspects of human capital have come to prominence and were connected to the development, concentration and diffusion of knowledge in space. Knowledge, skills and capabilities, components embedded in human beings, as well as the social networking and the employment mobility, constitute basic components for regional competitiveness in theories of regional innovation that have emerged and expressed with concepts such as the ‘learning region’ (Morgan, 1997; Florida, 1995), ‘innovative milieu’ (Crevoisier, 2001), ‘industrial districts’ (Becatinni, 1992), ‘regional innovation systems’ (Cooke et al., 1997) and ‘intelligent cities/districts’ (Komninos, 2002, 2008, 2014). The paper reviews the literature and describes four basic dimensions of innovation for spatial development (in-house innovation, knowledge spillovers and innovation networks, open innovation, spatial and collective intelligence) which underline the importance of different aspects of human capabilities. Based on a simple methodology similar to the UNDP’s Human Development Index, this paper calculates a measure of regional development in the EU regions giving emphasis to the aspects of human capabilities that contribute to innovation. Conclusions are drawn by comparing the results of this composite indicator with GDP-based development indexes as well as the innovation scoreboard.
    Keywords: human capital, human capabilities, innovation, spatial development
  4. By: Robert Ribarić (Technological center, Buzet, Buzet, Croatia)
    Abstract: Purpose – The importance of innovation in the micro, small and medium-sized enterprises (MSMEs), despite today’s turbulent business environment, continues to be undervalued. Tourism and hospitality industry are among the most important economic drivers worldwide but still approaches to hospitality industry innovation are in an early phase of research development. Because of their ability of providing differentiated products and services, innovative hotels and rural vacation houses are more successful than their non-innovative competitors. Therefore, hospitality industry should develop new innovative offer. To date, potential drivers of innovation in the MSMEs in Istria destination have not been systematically investigated and have not considered the needs of MSMEs. This paper is aimed to span this gap. Design/methodology/approach – By integrating cognition from up to date conducted researches as well as adding some new potential drivers, the author proposed set of 16 potential drivers of innovation in the MSMEs in hospitality industry, which is believed to be more suitable. A quantitative survey was carried out in Istria MSMEs. Findings – The research results show five main groups of potential drivers of innovation in the MSMe in hospitality industry and the best rated in Istria hospitality industry such as owners/management and employee engagement; and information technology. Potential drivers within the group of innovation network should be improved by owners/managers. It is essential to emphasize more activity and connections between the academic community and entrepreneurs, as well as between stakeholders and entrepreneurs in tourist destination. Originality – This study is the first to provide potential drivers of innovation in MSMEs in hospitality industry in Istria. It gives information which should help owners/managers in developing new tourist product. In addition to practical implications, the study has academic contributions to the existing literature of innovation activities in hospitality industry which is presently an under-researched area. Keywords potential drivers of innovation, innovation activities, contribution of external factor, MSMEs, hospitality industry, Istria destination
    Keywords: camping tourism, trends, management, innovation, competitiveness
    JEL: L83
  5. By: Toth, Jozsef
    Abstract: Value creation is the result of the continuous innovation activity of the entrepreneur, which is carried out mainly in form of open innovation among the agri-food SMEs. However value creation is not the ultimate goal of the enterprises. They are more interested in increased appropriation of the created value. Although the value creation (innovation) is very well explored and cultivated area of research, there are some voids in the field of agriculture and food industry: the behavioural aspect of open innovation is very rare. The value capturing is even much less studied, therefor our research approach is largely explorative one. Data are drawn from a survey carried out in Hungary among the agri-food SMEs in 2014. We use Structural Equation Modelling as well as ordered probit and semi-non parametric ordered probit models for analysing the data. Our results show that there is positive relationship between the knowledge sharing with chain partners and the innovativeness. We could explore that size of the firm, absorptive capacity and openness to foreign trade ambiguously affects value capturing. However trust in chain partners, reciprocity in knowledge sharing with chain partners and willingness to cooperate with buyers positively influence the appropriation of the created value.
    Keywords: value creation, value capturing, agri-food SMEs, structural modelling, behavioural economics, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, International Development,
    Date: 2015–04
  6. By: Andriy Karakuts (Donetsk National University); Valeriya Podunay (Donetsk National University)
    Abstract: The paper considers the interdependence between the formation of the country's economy based on knowledge, its competitiveness and pace of economic development. Shows the ranking of countries in the Global Competitiveness Index and the indices that characterize the knowledge economy. On the basis of a comparative analysis concluded that the country's competitiveness level depends on scientific and technological development, and the states leading the global innovation space were singled out. With the help of comparative analysis of positioning on the index of the knowledge economy and knowledge index makes it possible to distinguish knowledge exporting countries and knowledge importing countries. A cluster analysis made it possible to establish that the orientation of the economy more towards the production and export of knowledge leads to the acceleration of economic growth and competitiveness, and to identify the tendency of increasing of the share of exporting knowledge countries. This paper uses a methodology of World Economic Forum for assessing the country's competitiveness index, the World Bank methodology expertise of knowledge economy and other methodologies to assess the level of innovation development of economy of the world.
    Keywords: competitiveness, economic development, knowledge economy, innovation, research and technological development.
    JEL: O33 A14 R11
  7. By: Ugur, Mehmet; Solomon, Edna; Guidi, Francesco; Trushin, Eshref
    Abstract: Effects of R&D investment on frim/industry productivity have been investigated widely thanks to pioneering contributions by Zvi Griliches and others in late 1970s and early 1980s. We aim to establish where the balance of the evidence lies and what factors may explain the variation in the research findings. Using 1,258 estimates from 65 primary studies and hierarchical meta-regression models, we report that the average elasticity and rate-of-return estimates are both positive, but smaller than those reported in prior narrative reviews and meta-analysis studies. We discuss the likely sources of upward bias in prior reviews, investigate the sources of heterogeneity in the evidence base, and discuss the implications for future research. Overall, this study contributes to existing knowledge by placing the elasticity and rate-of-return estimates under a critical spot light and providing empirically-verifiable explanations for the variation in the evidence base.
    Keywords: R&D,knowledge capital,productivity,meta-analysis
    JEL: D24 O30 O32 C49
    Date: 2015
  8. By: Chia-Lin Chang (National Chung Hsing University, Taiwan); Michael McAleer (National Tsing Hua University, Taiwan; Erasmus University Rotterdam, the Netherlands; Complutense University of Madrid, Spain); Ju-Ting Tang (National Chung Hsing University, Taiwan)
    Abstract: With the advent of globalization, economic and financial interactions among countries have become widespread. Given technological advancements, the factors of production can no longer be considered to be just labor and capital. In the pursuit of economic growth, every country has sensibly invested in international cooperation, learning, innovation, technology diffusion and knowledge. In this paper, we use a panel data set of 40 countries from 1981 to 2008 and a negative binomial model, using a novel set of cross-border patents and joint patents as proxy variables for technology diffusion, in order to investigate such diffusion. The empirical results suggest that, if it is desired to shift from foreign to domestic technology, it is necessary to increase expenditure on R&D for business enterprises and higher education, exports and technology. If the focus is on increasing bilateral technology diffusion, it is necessary to increase expenditure on R&D for higher education and technology.
    Keywords: International Technology Diffusion; Exports; Imports; Joint Patent; Cross-border Patent; R&D; Negative Binomial Panel Data
    JEL: F14 F21 O30 O57
  9. By: De Rosa, Marcello; Bartoli, Luca; Chiappini, Silvia
    Abstract: The paper deals with the support system of geographical indications (GIs): more precisely, it aims at investigating the territorial dynamics of the rural knowledge, by analysing the role of agricultur al extension systems (AES) as tool to support farm’s management and innovation in GI areas. By putting forward a milieu innovateur approach, we intend to verify eventual differences between GI and not GI farms in knowledge transfer and innovation adoption. Interaction and learning logics at the basis of this approach confirm differences even though with some exception based on territorial characteristics and models of AES governance.
    Keywords: Agricultural Extension, Innovative Milieus, GI, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety,
    Date: 2015–04
  10. By: Lopez-Garcia, P. ; di Mauro, F. ; the CompNet Task Force (Research Department, NBB)
    Abstract: Drawing from confidential firm-level balance sheets for 17 European countries (13 Euro-Area), the paper documents the newly expanded database of cross-country comparable competitivenessrelated indicators built by the Competitiveness Research Network (CompNet). The new database provides information on the distribution of labour productivity, TFP, ULC or size of firms in detailed 2-digit industries but also within broad macro-sectors or considering the full economy. Most importantly, the expanded database includes detailed information on critical determinants of competitiveness such as the financial position of the firm, its exporting intensity, employment creation or price-cost margins. Both the distribution of all those variables, within each industry, but also their joint analysis with the productivity of the firm provides critical insights to both policymakers and researchers regarding aggregate trends dynamics. The current database comprises 17 EU countries, with information for 56 industries, including both manufacturing and services, over the period 1995-2012. The paper aims at analysing the structure and characteristics of this novel database, pointing out a number of results that are relevant to study productivity developments and its drivers. For instance, by using covariances between productivity and employment the paper shows that the drop in employment which occurred during the recent crisis appears to have had “cleansing effects” on EU economies, as it seems to have accelerated resource reallocation towards the most productive firms, particularly in economies under stress. Lastly, this paper will be complemented by four forthcoming papers, each providing an in-depth description and methodological overview of each of the main groups of CompNet indicators (financial, trade-related, product and labour market).
    Keywords: cross country analysis, firm-level data, competitiveness, productivity and size distribution, total factor productivity, allocative efficiency.
    JEL: L11 L25 D24 O4 O57
    Date: 2015–04
  11. By: Nikolaos Apostolopoulos (University of Peloponnese)
    Abstract: The present research deals with the effect of regional, macroeconomic, environmental end energy indicators on regional competitiveness of entrepreneurship in the solar energy sector. The work focuses on renewable energy production as it consists, to some extent, the core of sustainable development. By applying the AHP method, it is aimed to determine the significance of some criteria in relation to regional competitiveness of solar energy enterprises. Ten criteria are set to prioritize the 13 Greek regions. Quantitative and qualitative data will be combined in the present analysis so as to determine and prioritize the Greek regions with respect to the goal of regional competitiveness. The AHP method will be applied so as to delineate investments in the solar energy sector by incorporating regional factors in decisionmaking. Regions vary in terms of competitiveness in the solar energy sector; hence, decision makers and business managers should take into account regional factors.
    Keywords: entrepreneurship; solar energy; regional; AHP method
  12. By: Piotr Kura (Czestochowa University of Technology); Ma Kura (Czestochowa University of Technology)
    Abstract: Competitive advantage of the enterprise may come from different sources. Undoubtedly, the important factors determining it must include the information potential of the enterprise. The company, providing an innovative, distinctive product, uses, so called, bonus for newness. This allows to achieve better competitive position and higher revenue, at least by the time of the achievement of skills and experience enabling the provision of a similar product by competitors. Polish government administration is interested in an increase of innovative potential of Polish enterprises. A higher innovative potential should amount to higher competitiveness of the whole Polish economy. The major part of the paper includes the characteristics of the instruments which Polish government administration have prepared to support innovativeness of Polish enterprises. They have been characterized in the three major groups. The first one includes direct instruments which must be understood as the support given directly to entrepreneurs, another one includes the institutions supporting entrepreneurs and the last one refers to the instruments supporting business environment institutions.
    Keywords: innovativeness, competitiveness, strategy, enterprise, SME
    JEL: O32
  13. By: Landesmann, Michael; Leitner, Sandra; Stehrer, Robert
    Abstract: This paper examines developments in market share, export structure and revealed comparative advantage within the EU and in comparison with other regions of the world. It pays special attention to shifts in specialisation and export structure with regard to manufacturing and services, lower and higher technology industries and business services. Data are taken from the World Input-Output Database (WIOD), which provides information on international production process linkages and allows calculation of measures of "trade in value added".
    Date: 2015
  14. By: David, Audretsch (Indiana University); Donald, Kuratko (Indiana University); Albert, Link (University of North Carolina at Greensboro, Department of Economics)
    Abstract: The term “entrepreneurship” apparently means different things to different people including scholars and thought leaders. Because entrepreneurship is multifaceted, it is studied from many different perspectives, yet, that has fostered a multitude of definitions. Even the scholarly literature (where normally the deepest understanding would be found) is rife with disparities and even contradictions about what is and is not entrepreneurship. Some have suggested a narrower and more defined focus on entrepreneurship where only bona fide entrepreneurship research theories would explain entrepreneurial phenomena. We believe that constricting the field may the wrong approach. Our purpose then is to try and make sense of the disparate meanings and views of entrepreneurship prevalent in both the scholarly literature as well as among thought leaders in business and policy. We reconcile the seemingly chaotic and contradictory literature by proposing a coherent approach to structure the disparate ways that entrepreneurship is used and referred to in the scholarly literature. We examine three coherent strands of the entrepreneurship literature and identify an emerging eclectic view of entrepreneurship, which combines several of the views prevalent in the main approaches discussed.
    Keywords: Entrepreneurship; conceptual; behavioral; performance; eclectic
    JEL: L25 L26 L29
    Date: 2015–04–06
  15. By: Marlena Grabowska (Czestochowa University of Technology)
    Abstract: The aim of the study is to present the concept of value creation as a principal dimension in a business model of the enterprise. The problem of creating value has been attracting interest among theorists and practitioners of management. These problems are of interdisciplinary character. Generation of value depends on numerous variables in the enterprises and the factors that remain outside the influence of the entity. Suitable configuration of resources used by the enterprise allows for building competitive advantage which is conducive to creating value. Ability to define and redefine business models depends on key competencies which are conducive to building enterprise's value. Architecture of business model can be considered as a system of connections and cause-and-effect correlations between individual components of this model configured in order to implement the assumptions adopted by the enterprise. Therefore, it is essential for building competitiveness to ensure proper conditions that are conducive to supplying the value for stakeholders. The most of definitions that have described the problems of business model in the related literature points to value as a central category of long-term decision processes in the enterprise. Consequently, it can be indicated that the concept of business models is inherent in the problems of management of enterprises value. It should be emphasized that strategy of the increase in value and the respective concept of building business model represent the essential source of achievement of success through contemporary enterprises which are at risk of unpredictable behaviour from the market environment. Turbulent environment substantially changes market conditions of enterprise's operation. The relations between stakeholders are changing. This concerns in particular relationships with customers. In order to maintain competitive ability of the enterprise, they have to regularly adjust their offer to customer need, thus verifying the value they supply. This translates into the necessity of verification of business models used previously in the enterprise.
    Keywords: business model, value creation
  16. By: Sapovadia, Vrajlal
    Abstract: India’s series of economic reforms since 1991 have accelerated economic growth but not productivity. India’s productivity remained low compared to global but peers as well. High productivity is good for business, consumers and economy. Higher the productivity, higher the profit, lower the price. Productivity in manufacturing sector in the last two decades remains stagnant, but nobody sincerely has bothered to measure and improve. India’s various global indices, ranking and score relevant to measure productivity, including manufacturing productivity remains poor. India is ranked 71 on Global Competitive Index (GCI), while Management Score is 2.60 against 3.38 of China. India trails on most of the global indexes. This paper investigate reasons for low competitiveness and productivity of Indian manufacturing sector around 12 pillars determined by GCI.
    Keywords: Indian manufacturing sector, competitiveness, productivity
    JEL: A19
    Date: 2015–05–07
  17. By: X. Yu; G. Dosi; M. Grazzi; J. Lei
    Abstract: This article explores the dynamics of market selection by investigating of the relationships linking productivity, profitability, investment and growth, based on China's manufacturing firm-level dataset over the period 1998-2007. First, we find that productivity variations, rather than relative levels, are the dominant productivity-related determinant of firm growth, and account for 15%-20% of the variance in firms' growth rates. The direct relation between profitability and firm growth is much weaker as it contributes for less than 5% to explain the different patterns of firm growth. On the other hand, the profitability-growth relationship is mediated via investment. Firm's contemporaneous and lagged profitabilities display positive and significant effect on the probability to report an investment spike, and, in turn, investment activity is related to higher firm growth.
    JEL: D22 L10 L20 L60 O30
    Date: 2015–04
  18. By: Kühn, Christopher J.; Eymann, Torsten; Urbach, Nils
    Abstract: Professional Service Firms (PSFs) such as accounting, consulting, law, engineering or advertising firms increasingly face changing attitudes and fluctuation among young high potentials that question traditional career and human resource (HR) concepts. In this context, it seems vital to foster a spirit of corporate entrepreneurship in PSFs to create an attractive environment that satisfies the autonomy-striving professionals. Our research is based on a multiple case study design that investigates how corporate entrepreneurship in the fields of elite accounting/consulting and law firms can be enabled by HR practices. Specifically, we analyse how contemporary PSFs manage to identify, select, build, reward, keep and let go of entrepreneurial professionals. Our findings imply that there are still open issues in the identification, selection and reward practices, while promising approaches for training and retention exist and the low risk perception by professionals provides fertile grounds for entrepreneurial behaviour to prosper. Based on these findings, we present HR-related recommendations for fostering corporate entrepreneurship in PSFs and highlight some promising avenues for future research.
    Keywords: Professional Service Firms,Corporate Entrepreneurship,Entrepreneurial Orientation,HRM
    Date: 2015
  19. By: Bogus Zió (Politechnika Cz)
    Abstract: The paper presents results of a survey conducted in enterprises in Poland in 2012. 346 enterprises from Poland, including 143 micro, 104 small, 51 medium-sized and 48 large enterprises, participated in it. Enterprises providing services (over 2/3 of all the participants in the survey) dominated in the group of the enterprises surveyed. The other enterprises, representing 29.1% of the population surveyed, confirmed that the basic area of their economic activity belonged to the production sector. The enterprises surveyed varied in terms of the form of ownership, but the selected group of respondents was dominated by private enterprises, which accounted for over 91.9% of the overall number of the participants of the survey. The origin of capital in the enterprises surveyed was decidedly Polish (86%). 59.4% of the enterprises surveyed defined their economic and financial situation as good, 26.4% - as very good, and only 3.2% - as very bad. The survey results have shown that the value of an enterprise was mot often identified with the sum of the fixed assets and intangible assets, and more rarely (49.5% of all the companies surveyed) – with the sum of predicted future discounted cash flow (14.5%). 42.4% in total, including 66.7% of large and 27.8% of microenterprises, had a formalised strategy and systematically used it, but only in 8.6% of the enterprises surveyed all operations were subordinate to the strategy. Enterprises regarded customers and markets as the most important source of growth in the enterprise’s value. They also indicated satisfying customers as the type of current operations with the strongest impact on the growth in the enterprise’s value, while in the case of large companies, these were operations and processes creating value for the customer. The efficiency of functioning of organisational units was ranked lowest in this respect. In terms of investment directions, the development of fixed assets and increasing production capacity were ranked highest, whereas training courses and improving the staff’s competences were ranked lowest. Revenue from sale and processes implemented in an enterprise were the factors that had the strongest impact on an enterprise’s value, whereas the least important in this respect was capital cost. The factor that was regarded as the biggest threat to the value growth was competition, and in the case of large companies – macroenvironment and economic situation.
    Keywords: strategic management, value based management,
  20. By: Elona Garo (University of Tirna); Vasilika Kume (Tirana University); Suada Basho (Tirana University)
    Abstract: Entrepreneurship is affecting economic growth worldwide. In a time of economical crises the creation of new ventures would be an ideal solution. Understanding entrepreneurship's importance and positive contribution to the economy of a country, it is significant studies to be undertaken in order to boost the development of entrepreneurship. Thus, in focus must be factors that alter students' behavior and their career decision to become entrepreneurs. Many highlight that role model consist to be among the most important factors that alter entrepreneurial intention.This study aims to analyze the family role in the decision of students to follow entrepreneurial career path and the influence it has on the intent of the Albanian youth entrepreneurs. The purpose is to assess the role of the family in determining the preference of students to become entrepreneurs. To observe this relation we have studied the case of 434 Albanian students majored in business across the country. The findings suggest that students who have been exposed to entrepreneurial role of families show high intention to become entrepreneurs compared with those who lack this role model. A positive correlation between students exposed to entrepreneurial model within the family and their entrepreneurial intent exists. As a result many suggestions for the education system and policy makers in Albania are proposed.Suggestions drive the attention to education. They reinforce that education can expose students to entrepreneurial role models. It has a very important impact not only to provide students with the skills and knowledge needed for entrepreneurship but also to create confidence and implement new business models. The challenge of education system is that it can influence entrepreneurial intent to young students. As for in terms of role models where such a model is missing in the family, education can provide it successfully.
    Keywords: Entrepreneurship, young entrepreneurs, role model, family, Albanian students, education.
    JEL: M20 A00 I25
  21. By: Julia Dobreva (University for Finance, Business and Entrepreneurship (VUZF))
    Abstract: This paper aims at highlighting the role of innovations for achieving sustainable development in Bulgaria. It identifies the need for innovative mechanisms in transition economies as a measure against the post effects of an unstable political system and the recent financial crisis. The analysis provides an overview of the Bulgarian economy over the last 20 years - the dropdown of industrial production, the difficulties in setting up and managing SMEs, and the general decline in the country’s economic activity. Furthermore, the paper explores the development impacts which will be achieved through the introduction of innovations in production facilities as well as in service management. The environmental and social implications are considered in terms of defining the major outcomes of implementing green business practices in Bulgaria. A comparison is made with the sustainable development levels in some EU countries to serve as a basis for identifying and further elaborating the main political and economic targets for Bulgaria in the short and the long term.
    Keywords: innovations, post-crisis, SMEs, sustainability, sustainable development
    JEL: O13 O31 O44
  22. By: Ksenija Vodeb (Faculty of Tourism Studies – Turistica, University of Primorska)
    Abstract: Purpose – The paper seeks to explain the multidimensional image of sustainability and competitiveness tying them together due to the fact that relationship between them is reciprocally supportive. A more interdisciplinary approach to the concept is needed focusing on interaction between sustainability and competitiveness. Applicability of the concept without proper understanding is not possible, although it must be integrated in tourism planning process. Developing final set of measures and indicators and ensuring high level of community participation would be necessary. Design – The design of the paper is descriptive and it represents an overview of studies from the research field of sustainability, competitiveness, resident attitude and tourism planning. Methodology – The analysis and synthesis, comparative and compilation as well as descriptive method were used. Findings – The paper finds that there are high level of interaction and causality between sustainability and competitiveness. To translate conceptual ideas into practical tool and develop a final set of measures reasonable to the task, place and time is to be done in order to gain high level of participation between major stakeholders at the destination. Originality – In initial stage of destination development it should be determine the appropriate level of community involvement to strengthen the sense of community which directly reinforces destination identity and its competitiveness. Establishing participatory development measures at the destination is needed in order to enhance the quality of tourist experience.
    Keywords: sustainable competitiveness, social sustainability, resident attitude, tourism planning
    JEL: L83

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