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Business Ethics in CEE: Analysis of Research Results

Author(s): Włodzimierz Sroka,Richárd Szántó / Language(s): English Publication Year: 0

Purpose: It is widely acknowledged that if a company wants to be perceived as a reliable business partner and a respected member of the business sector, it should demonstrate a high level of institutionalisation of business ethics principles and practices, and it must practice outstanding ethical behaviour. This is exceptionally true in some controversial industries. The purpose of our study is to identify the scale and scope of the use of these principles and practices in two Central European countries, i.e. Poland and Hungary.Design/methodology/approach: In this study survey methodology was applied. The sample included a group of 48 companies operating in the pharmaceutical, tobacco and alcohol industries (25 Hungarian and 23 Polish ones). Our survey mainly focused on the degree of institutionalisation of business ethics (such as the presence of a code of conduct, an employee appointed to deal with ethical issues, ethical training, and so on), the perceived ethical behaviour of the firms, and their relationship with their key stakeholders.Findings: Our study confirmed that business ethics is regarded as a significant factor, however the scale of this phenomenon varies, across both sectors and countries. The level of institutionalisation is somewhat higher at Hungarian firms, while preventing and handling corruption cases are more at the forefront of Polish companies. Yet, although it seems that stakeholders from Polish firms have greater ethical expectations, we did not observe significant differences between perceived ethical behaviour in the two countries.Research/practical implications: Though the vast majority of the companies observed understand the need for ethical behaviour in business, the apparent unwillingness of respondents to participate in the study was observed. The results achieved may therefore be distorted to some extent. Regular studies, organised e.g. every 5-10 years in the sectors surveyed, would obtain stimulating data showing in which direction the companies from these sectors evolve. Additionally, further studies should be carried out with the participation of representatives of the enterprises surveyed (personal interviews).Originality/value: The originality of the paper is the result of the presentation of unique quantitative research related to business ethics in sensitive sectors of the economy in two Central European countries. Sectors such as pharma, tobacco and alcohol are often accused of manufacturing questionable products or applying industrywide malpractices; therefore, observing their ethical principles and practices certainly provides significant fresh insights in this field.

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Necessity Driven Entrepreneurs. Does Unemployment and Precarious Employment Lead to Increasing Entrepreneurial Intentions Among Young People in Spain?

Author(s): Mihaela Vancea,Mireia Utzet / Language(s): English Publication Year: 0

Purpose: The article explores the relationship between unemployment and precarious employment, and young people’s entrepreneurship in Spain. We focus on the effects of employment conditions (employed with permanent contract; employed with precarious contract; unemployed; and inactive) and employment experience (had ever been unemployed for more than six months; and has had a paid job for more than one year) on young people’s intentions to start their own business or become self-employed. The role of socio-demographic factors, perceived self-efficacy, perceived desirability and risk taking are also analysed. Methodology: The analyses are based on a cross-sectional representative sample, corresponding to the year 2016, of Spanish working young individuals aged 18 to 35 years (n=1678). Differences between individuals having or not entrepreneurial intentions were calculated for the overall sample and according to employment situation and employment experience variables. We used multivariate logistic regression models to assess the variables that predicted the entrepreneurial intentions and to test whether precarious working conditions are pushing factors towards increasing entrepreneurship. All analyses were stratified by gender.Findings: The results show that besides behavioural attitudinal factors that seem to particularly influence the entrepreneurial intentions of Spanish young people, having a precarious contract or being unemployed for more than six months cannot be regarded as necessity-driven factors for increasing intentions toward entrepreneurship. Research/practical implications: Spain is one of the European countries with more self-employment in young people, especially since the onset of the economic crisis. The high unemployment rates and the increasing exposure of young people to precarious working conditions and temporary jobs may explain this increase in self-employment. Future research should explore what policy measures motivate young people’s entrepreneurship in Spain and under what conditions this becomes an effective alternative to unemployment and precarious employment. Originality: Entrepreneurship and entrepreneurial intentions have received a great attention from both policy actors and scholars during the last decades, mainly due to increasing unemployment among young people in most European countries. Positive perceptions of entrepreneurship and opportunity-driven factors have been particularly explored to account for higher entrepreneurship rates. Nevertheless, little is known about the necessity-driven entrepreneurs, meaning those individuals willing to become self-employed under unfavourable employment or economic circumstances.

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New Business Model Innovations and Collaborations to Support the Circular Economy

Author(s): Vesela Veleva,Gavin Bodkin / Language(s): English Publication Year: 0

Purpose: This paper will discuss the role of small entrepreneurial companies and business to business (B2B) collaborations to advance the circular economy (CE). The authors will share insights from a U.S.-based research project that examined the drivers, barriers and opportunities for advancing waste repurposing and product reuse/remanufacturing. Many large companies fail to incorporate CE principles into their business strategy due to costs, logistical hurdles and lack of mandates. This presents an opportunity for entrepreneurial companies with innovative business models to fill the gap and provide critical links for corporations in reverse supply chains while creating new business opportunities with social benefits. Design/methodology/approach: The research is based on empirical study of six large corporations with zero waste goals and six entrepreneurs focused on product reuse/remanufacturing or waste repurposing. Some of the participating companies include Dell Technologies, Raytheon, Waste Management, First Solar, Circular Blu, and Seeding Labs. Data was collected through in-depth, semi-structured interviews with senior managers or founders. The study employs a theoretical model for developing a life cycle management strategy proposed by Sanchez et. al. (2004) and the circular business canvas model (Levandowski, 2016), wherein the authors analyze the emerging drivers, current barriers and future opportunities for business to advance the CE.Findings: The study found that despite the lack of federal regulations in the U.S. a growing number of companies are forming partnerships to reduce waste and advance product reuse or remanufacturing. Key drivers for such trends include customer demands, corporate sustainability commitments and state-level mandates. Technology also plays a critical role in reducing transaction costs and supporting social-marketing strategies and partnerships. Research/practical implications: The study contributes to the research on the relationship between entrepreneurial innovation and the development of CE principles within corporate supply chains, a field that is still in its infant stage (Heshmati, 2015). The study offers valuable lessons for entrepreneurs interested in developing viable business models around product reuse, remanufacturing or waste repurposing. Future research should consider comparing B2B collaborations in the U.S. and Europe to analyze the similarities and differences in business strategies for advancing the CE. Originality/value: This paper provides insights into a field that is still greatly underdeveloped – the role of environmental entrepreneurs entering a new market space based on collaborations with large corporations to advance product reuse/remanufacturing or waste repurposing that promote the circular economy.

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Knowledge-generation Strategies in the Real Sector of the Economy: Russian Case

Author(s): Maxim Vlasov,Svetlana Panikarova / Language(s): English Publication Year: 0

Purpose: The main purpose of the study is to identify and to characterize the strategies of knowledge generation in the real sector of the Russian economy. Within the framework of the research, authors answered the following questions: 1) Which factors define the choice of knowledge increase strategy? 2) Which types of knowledge increase strategies are mainly used by Russian manufacturing companies? 3) How does the knowledge increase strategy influence company performance? Design/methodology/approach: The methodology of a research included several stages. At the first stage the 120 enterprises has been conducted by means of the database of the Russian enterprises «Fira Pro». At the second stage, the 7 focus group interviews (in which about 4 experts participated) have been hold with heads of the enterprises, which are selected for a research. The third stage has included a 17 series of the structured interviews with R&D directors of the innovative enterprises.Findings: Firstly, authors offered the company knowledge strategic management model for activating of knowledge generation in the economy. Secondly, authors offered the typologies of increase knowledge strategies included four types of strategies: borrowed knowledge strategy; copied knowledge strategy; knowledge imitation strategy; knowledge generation strategy.Research/practical implications: In article authors proved that the optimum structure of costs of different types of knowledge has prime value for the effective innovative development of the enterprises, especially in difficult economic conditions. Strategic management of knowledge gives the greatest effect in the achievement of competitiveness if this management relies on the basic strategy of the enterprise, and considers its purposes and the directions of growth. Originality/value: The research expanded methodological tools of the knowledge economics theory. Authors offered the knowledge increase strategies and their main characteristics, which will be useful for companies planning the innovative development.

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Inventory Management Using Artificial Neural Networks in a Concrete Case

Author(s): Marek Vochozka / Language(s): English Publication Year: 0

Purpose: A company creates an inventory in order to be able to continuously produce and fully meet the demand for its products. It thus covers the time and quantity discrepancy between articles of the supplier-buyer chain, and if applicable, between the different phases of production. But the very existence of inventories equals financial costs for their acquisition and maintenance, as well as economic costs stemming from the fact that the funds bound to inventories cannot be used more effectively by the company. Therefore, inventory management searches for the best volume of reserves that generates the lowest possible cost while being able to satisfy customer demand. There are currently a number of methods of inventory management (e.g. ABC), which are more or less effective. Neural networks also appear to be one of the methods of optimizing company inventory. They are useful for the prediction of time series. The aim of this article is to verify the possibility of using neural networks for inventory management using an example of a particular company.Design/methodology/approach: The data file contains the time series of a particular company's inventory covering the period of the last two years. Data are fitted to a curve that deviates the least from the actual data and that can also predict the future development of the state of inventories. The differences between reality and the obtained regression curve are measured by the method of least squares. To obtain the regression curve, neural networks were used, specifically, 10000 multilayer perceptron networks were generated. The best five were selected using the least squares method. These subsequently underwent a factual test of reliability and the most appropriate curve for the given company was determined.Findings: A neural structure that describes the development of company inventory very accurately was obtained, and it is therefore apparent that it also has the ability to predict the development of company inventory in the future. The acquired perceptron network was subjected to factual analysis and arguments for and against its use in practice were given.Research/practical implications: On the basis of the neural structure, the business can predict not only the future state of inventory, but also its movement in time. By doing so it will be able to reflect not only the needs of production and producer demand, but also fluctuations in the supply of inventories. It will be able to determine the optimal safety inventory, and if applicable, the optimal technological inventory, and obviously also the appropriate delivery cycles of inventories. The procedure for obtaining the neural structure is also applicable to other businesses.Originality/value: The additional value of the article can be seen in the use of neural structures in inventory management, and therefore in achieving a higher degree of accuracy of the obtained results.

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Modeling the Future Development of Top Company Indicator EVA Equity Using Indicator Breakdown and Sensitivity Analysis on an Example of a Specific Company

Author(s): Jaromír Vrbka / Language(s): English Publication Year: 0

Purpose: Economic value added focused on equity (i.e. EVA Equity) measures the rate of the evaluation of equity while respecting risk. EVA Equity also reflects the degree of value creation for shareholders. EVA can be used to calculate the value of a company. The indicator is thus designed to have its specific planned value became the main target of the company. This paper aims to break down EVA Equity and to subsequently determine the way individual variables making up the indicator are managed.Design/methodology/approach: The data set contains the financial statements of Budvar, n. p. company. It is an enterprise, which deals with beer production. The analyzed period is from year 2011 to 2015. Further on, external data of the Czech National Bank are used. The set of variables influencing the creation of EVA Equity is determined by the breakdown of EVA Equity. Using sensitivity analysis, the significance of individual variables is defined and the range of significance of individual variables for the company and its management is determined accordingly.Findings: The breakdown of a top indicator -EVA Equity- was conducted. Next, the individual variables involved in the calculation of EVA Equity were identified, which can immediately affect the company and its management. According to methodology and based on the obtained results, a sensitivity analysis was performed and it was determined which variables are more valuable for the company and which have less importance.Research/practical implications: The practical outcome are quantities that the company, in order to be successful, needs to monitor, plan, manage and control the execution of. These variables are reflected in the tactical and operational plans of the company and every manager knows which way to influence them and, conversely, which ways they influence the success or failure of a business.Originality/value: The value of the paper can be seen in the application of EVA into everyday plans of the company through variables that shape the EVA Equity indicator.

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„The Key Is We“ – Refining Co-creation Indicators to Assess Innovation Processes

Author(s): Christina Weber,Klaus Sailer / Language(s): English Publication Year: 0

Purpose: Our research purpose is to test and improve an indicator instrument for real-time assessment of collaborative and dynamic innovation processes. The paper presents an indicator tool derived from successful long-term collaborative innovation across organisational and international borders, and reports initial tests to validate five performance indicators for flexible innovation teams in short term collaboration. The aim is to test and develop a tool of five indicators as dynamic network patterns that enables to discern successful from underperforming co-creation processes, at early stages.Design/methodology/approach: Detection and description of the patterns indicators in various data on innovation processes - from expert interviews to focus groups, and from print media, videos and online communication by startups - need further specification. In a small focus group exercise with 20 different experts collaborating in temporary, flexible innovation teams, the five dynamic network patterns were (a) tested for the short term collaboration context, and (b) related to new attributes and statements. Findings: The focus group exercise helped to validate and refine the specification of the five dynamic network patterns as indicators of successful co-creation processes. The findings (a) confirm the validity of the indicators for agile innovation teams, (b) increase evidence of some of the indicators especially for short term collaboration, (c) serve as pre-test for wide-ranging studies that improve the indicators further for start-ups, at incubators and accelerators. Research/practical implications: The refined indicator instrument aims at real-time assessment of start-ups in incubators, and co-creation in any settings, based on the indication of emerging DINs in successful collaborative innovation processes. The method has a high relevance for further evaluation research on dynamic innovation processes and collaborative entrepreneurship. Its practical implication is an assessment blueprint (and training instrument) for innovation teams in co-creation processes.Originality/value: This paper refines a new research instrument of high relevance and value for collaborative innovation processes in and across societal sectors.

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Barriers to Green Products Purchase – from Polish Consumer Perspective

Author(s): Lucyna Witek / Language(s): English Publication Year: 0

Purpose: The green market is growing rapidly, especially in developed countries. While in Poland the consumption of green products is not growing as fast as experts of this market predict. In this context, in the paper the results of studies that examine the attitudes of consumers towards green products and identify barriers to their purchase are analyzed. This research examines the propensity of consumers to buy environmentally friendly products by means of socio-demographic indices.Design/methodology/approach: For the purpose, the direct survey method and Focus Group Interview (FGI) have been applied. The survey was conducted between 1 December 2015 to 31 January 2016 using the direct survey method. The sample covered 390 adult consumers living in south - eastern and southern Poland. Four sessions of 1,5 hours each were conducted between May and June 2015. Each group consisted of 6 people.Findings: These studies lead to the conclusion that Polish connote positively the care about environment and ecological products. The primary motivation for green consumption is health. Environmental protection plays a supporting role. The barrier to the development of green consumption is the general and fragmented consumer knowledge of green products, their labeling, certification and control. This affects distrust and their skepticism to green claims. Under these conditions consumers do not want to accept higher product prices. In addition, weaknesses in the marketing chain make green products invisible to consumers. In the Polish market products prosumption and purchases of non-certified goods from the trusted source are gaining importance.Research/practical implications: This study provides a valuable contribution to addressing the needs of producers and sellers in the market for green products. The results of the research can help managers identify important information about the process of making purchase decisions by consumers towards environmentally-friendly products. An aid in the development of marketing communication strategy and the improvement of existing marketing strategies.Originality/value: A theoretical contribution of this study is to enrich the analysis of consumer behavior in the market for green products in the context of a developing country by identifying barriers to their purchase and a better understanding of the predictors of consumer behavior on the market for green products.

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Open Innovation Intermediaries – Current Roles and Benefits

Author(s): Marián Zajko / Language(s): English Publication Year: 0

Purpose: The paper aims at clarifying the changes in the role and benefits of selected prominent US. and European open innovation intermediaries in technology market in the period 2010-2016.Design/methodology/ approach: The changes in the role and benefits of selected open innovation intermediaries in time are analysed by their key characteristics using the case study design and the secondary data from websites and related publications on twenty intermediaries out of several hundred in the market. Findings: The total number of open innovation intermediaries has grown during the past decade to several hundreds. The analysis of selected prominent US. and European intermediaries confirms strenthening European competition, global focus, continuing business growth with broadening of portfolio of services, and building strategic partnerships and communities around online platforms.Research/practical implications: The primary aim is to fill up the gap in the research and publications on open innovation practices, especially on open innovation intermediaries and their benefits for companies. The secondary aim is to increase the interest in benefits of open innovation practices and related innovation intermediary services among the Slovak companies and give incentives to the Slovak government bodies to integrate measures on open innovation support in the national innovation policies.Originality/value: The findings and conclusions in the paper may be used as an impulse for government bodies and innovation agencies in Slovakia to expand the current innovation policies for promotion of open innovation methods and models. This can foster innovations in SMEs with insufficient R&D capacities mitigating their innovation risk at the same time.

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Long Tail Theory Validity On Secondary Cultural Goods Market

Author(s): Martin Zelený,Jan Hanzlík / Language(s): English Publication Year: 0

Purpose: The following study is focused on the application of the long tail theory by Chris Anderson on the secondary market of cultural goods. The aim of the research was to investigate whether the original theory is completely valid on secondary cultural goods market or whether there are differences between Anderson’s results, which were based on literature and music sales data collected from primary market online retailers like Amazon, iTunes, etc., and analogous research based on data from secondary market.Design/methodology/approach: Our data set consists of past auctions data collected from the online marketplace eBay, specifically from British eBay UK and German eBay DE. We followed the original methodology to find out the differences. The research was complemented by the correlation analysis of prices, sales and overall popularity as well as by examination of the historical prices progress.Findings: The application of the original methodology on the data from the secondary market resulted in similar tail shape, which basically confirmed the validity of the theory, however with significantly larger head part and other differences. Further examination revealed the fact that it is not the niche products, but rather the “mainstream” products that dominate the final sales. The correlation analysis of sales and prices also revealed strong non-linear dependence between price and quantity of sold items. Examination of the past price progress of selected group of items confirmed that slowly rising, but still limited supply creates a concretely defined market part that provides both investment and entrepreneurship opportunities.Research/practical implications: The paper provides implications for further research of the secondary cultural goods market. As for practical implications, the paper defines a concrete part of the secondary market that provides both investment and entrepreneurship opportunities. Originality/value: This paper fulfils the need to study how the differences between primary and secondary market affects demand, consumer behaviour and subsequently final sales structure.

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Trends in the Area of Responsibility and Justice in the Activities of Enterprises: Implications for The V4 Countries

Author(s): Wojciech Zysk / Language(s): English Publication Year: 0

In the era of globalization, internationalization of enterprises, liberalization of international trade and the increasing division of the world into countries of the rich North and the poor South, the ideas of responsibility and justice in business operations are permanently present. The objectives of this study are as follows: the characteristics of the role of transnational corporations in raising the level of the stratification of society in the rich North and the poor South and an attempt to develop recommendations for the V4 countries as for the development of corporate social responsibility, responsible investment and fair trade.Design/methodology/approach: Empirical analysis was conducted on the data collected from The Fortune Global 500 List 2016, Report on US Sustainable, Responsible and Impact Investing Trends, Fairtrade International Annual Reports, EUROSIF and other sources. Time series analyzes were made to fulfil research aim. The descriptive method was used to develop recommendations for the V4 countries.Findings: This paper presents global and European trends and developments in described area, and lessons learned for the V4 countries. The study covers the period 2004 - 2015, which will allow to analyze the phenomena, both before and during the economic crisis. Research/practical implications: Developing social responsibility, responsible investment and promoting the fair-trade movement in Poland, the Czech Republic, Hungary and Slovakia can contribute to the initiation of changes to the rules governing the world today and starting a new era in fairer trade on the international level. Originality/value: The proposal to increase cooperation of the V4 countries in the area of the three described processes in order to fight against illegal labor migration which is increasingly taking place in the European Union.

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Behavior Dimensions: An Organizational Study

Author(s): Zafar Ansari Yalman / Language(s): English Publication Year: 0

Purpose: As the IT sector is flourishing in Pakistan with new entrants entering the market, the study focuses onthe impact of personal selling, customer relationship management and product quality on consumer behavior inthis sector. The results from the current study will provide a guideline for IT firms to get better growth, have anadvantage through better customer relationship and have value in their product, so that they can retain and increasecustomer loyalty. It identifies and argues that if certain behavioural tendencies are organizationally encouraged,they can play a significant role in bringing creative transformation to an organization.Design/methodology/approach: The present study has attempted to produce results and findings that will in turnanswer questions regarding the effectiveness of variables known as personal selling, product quality and customerrelationship management in the context of online shoping experience in Pakistan. The statistical part of analysisis based on descriptive statistic, correlation and regression analysis of the online shoppers including universitystudents in Rawalpindi and Islamabad. The data was collected from a sample size of 250 respondents out of 270in January 2017. Convenience sampling technique was used for data collection.Findings: Results indicate that customer perceived value, customer satisfaction and switching cost are majorfactors which can highly affect the customer loyalty in the nascent online Pakistani market.Research/practical implications: The present study offers a reality check to local IT companies of sophisticatedcustomer base despite the online business being in its very early stage. It gives them a framework of how toeffectuate their organizational effectiveness.Originality/value: This paper makes an attempt to reason why technology matters for linking behaviour andcreativity together to create new ways of doing business.

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Agile product development and user experience at Allegro—a response to the growing market of demands and customer needs

Author(s): Alina Magowska,Piotr Szatybełko / Language(s): English Publication Year: 0

Since 1999, Allegro has been encouraging Poles to shop online, offering them the widest offer, prices and convenient solutions. So far, almost 23 million accounts have been registered. Every day customers buy over 1.2 million products on Allegro, of which over 90% are new items under guarantee, sold at a fixed price, and recently also with an insurance pack. Of 28 million Internet users in Poland, over 20 million are Allegro users (CSR Allegro, 2017), who open over 3 billion pages per month. Allegro provides customers with the most diverse offer and the highest quality. Allegro is agile, and puts the customer in the centre of its activities. This paper aims to shed light on Allegro’s actions so as to help understand what the success of the service is all about.

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SOMETHING out of nothing: The case study of Stary Browar (Old Brewery) in Poznan, Poland

Author(s): Anna Matysek-Jędrych / Language(s): English Publication Year: 0

The author presents the case study of Stary Browar (Old Brewery) in Poznan revitalisation carried out by Grażyna Kulczyk company in 1998-2003.

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A note on data-driven B2B pricing transformations in emerging markets

Author(s): Jacek Wallusch / Language(s): English Publication Year: 0

The aim of this chapter is to describe how pricing transformation is performed, and how data science can support this process. I focus on some generic problems particular to emerging markets—how pricing is affected by market structure, macroeconomic instability, persistent inflation or foreign exchange rate fluctuations. I also identify sales and profitability growth opportunities driven by pricing.

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Технологичният трансфер – основен фактор за ускореното интернационализиране на фирмата

Author(s): Oleg Lozanov / Language(s): Bulgarian Publication Year: 0

A typical trait of the modern economy is the constant product and technology development which is a result of the intense research and development process. The technology factor has even higher significance for the economic growth and its role in this regard is becoming more important. New technologies, knowledge and managerial experience are key competences in each company, they are major factor for its competitive development.

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Пазарът на сливания и придобивания в логистичния сектор в България

Author(s): Maria Vodenicharova / Language(s): Bulgarian Publication Year: 0

The main purpose of this report is to review the mergers and the acquisitions in the Bulgarian logistics sector for the past two years which would be base for determining trends in the sector. Mergers and acquisitions are relatively new phenomena in the Bulgarian logistics. Traditionally the mergers and acquisitions market in Bulgaria is driven by international investors’ interests. According to 2019 data, Bulgaria sees rise in mergers and acquisitions with deals reaching USD927 billion on a country level. The logistics industry is developing at increasing pace and with record rise in the business through outsourcing which makes the sector even more appealing to the foreign investors.

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Маркетингови рискове в условия на интернационализация

Author(s): Georgi Kozuharov / Language(s): Bulgarian Publication Year: 0

Markets worldwide are becoming even more integrated and reach beyond the national borders on macroeconomic, competitive and market level. Organizations across industries and in different sizes are diligently trying to develop its strategy on a global basis. As a result, there is a growing interest in researching this process with its all key characteristics. As new markets are being discovered and utilized, it is essentially important one to realize, recognize and familiarize themselves with the new potential marketing risks.

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Ролята на екологичната устойчивост в маркетинга и маркетинговите стратегии при налагането на нов продукт

Author(s): Daniela Mihneva / Language(s): Bulgarian Publication Year: 0

In the early 1970s, environmental issues emerged as a new paradigm in marketing and marketing strategy. Over the next decade, social issues have come to and stand out with environmental sustainability. Reassessment of the issues resulted in evolution of green or environmental issues in marketing strategy and now the sustainability in marketing strategy has become the focus of attention of the researchers. Over time, various marketing issues and strategies emerge and companies always try to use different marketing strategies to gain a competitive advantage in the market. Today, sustainability is an area that is being explored by companies as an opportunity for growth and development.

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Електромобилите – потребителски възприятия и нагласи на два европейски пазара – България и Германия

Author(s): Daniela Mihneva / Language(s): Bulgarian Publication Year: 0

According to the European Commission the road transport causes one fifth of the EU‘s total emissions of carbon dioxide (CO2), which are especially high in cities. A suggested solution to this situation is the introduction of electric vehicles (EV). However, evidence from European countries shows that, without any governmental support, the sales of EVs are low in comparison to other vehicles. A study conducted among Bulgarian and German managers in both European markets, Germany and Bulgaria, shows that car purchasers in are aware of the difference between pure electric and hybrid vehicles (HEVs), the characteristics and benefits of these cars for a long-term plan. As most car purchasers buy on the second-hand market in Bulgaria, the potential for sales of EVs and HEVs still seems limited. The study confirmed that consumers have a generally positive opinion about EVs. However, they expect that the purchase of EVs should be subsidized.

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