Business Cooperation of Ukrainian Enterprises: Interpretation of Historical Factors, Characteristics of Relations and Operating Conditions

Author(s): Nataliya Struk / Language(s): English Issue: 1/2017

The main purpose of this article is to analyse scientific approaches to the investigation of the business cooperation of Ukrainian enterprises for defining its historical aspects of interpretation, rules and characteristics of cooperation; the specific nature of business entities relations; economic freedom of these relations; conditions of their operation, as well as aspects of creation and economic development of business cooperation in the economic and legal policy conditions in Ukraine. On the basis of authors proposals there are determined the strategy and tactics of Ukrainian business cooperation. This is the research article.

A comparative analysis of the determinants of behaviours of Polish and German consumers aged 55+ in the innovative food market

Author(s): Romuald Zabrocki / Language(s): English Issue: 1/2017

The aim of the paper was a comparative analysis of behaviours of Polish and German consumers aged 55+ on the market of innovative food. The survey was carried out among 428 responds from the Pomeranian voivodship and the land of Brema. It was shown that social and cultural differences, despite the positive attitude of both populations towards innovative food, diversify their market behaviours. German respondents declare greater knowledge with regard to innovative products, faster and more often decide to purchase such products then the surveyed Poles. Additionally, they are characterised by a lower level of neophobia. For the Germans surveyed innovative food is a permanent and important element of every day meals, whereas Polish people eat such food occasionally. While buying innovative food German consumers are governed mainly by its influence on health and how convenient it is to use, whereas the Polish respondents take into account its price. The level of adaptation of the innovative food market to the needs of the consumers aged 55+ is regarded by Polish seniors as satisfactory or low, whereas the Germans considered it to be good and very good. Disproportions found in the survey, which concern the position of Polish and German seniors on the market of innovative food should be a signal to verify the product and marketing strategy of Polish producers in order to adapt their offer more accurately to the economic possibilities and limitations of this group of buyers in the country. Further marginalisation of this market segment, at the threshold of silver economy development, seems a serious mistake.

Rola audytu wewnętrznego we wdrażaniu innowacji w sektorze publicznym

Author(s): Cezary Szydłowski / Language(s): Polish Issue: 1/2016

The aim of this article is to present the role of internal audit in the implementa-tion of innovations in public organizations. Internal audit activity in public entities contribute to the implementation of new procedures and organizational solutions. Moreover, the internal audit have influence of implemented innovative solutions in the organization. The author in the publication shows the importance task of internal audit for the development of innovation in the public sector

Analysis of Factors of Disruptions/Interruptions in Upstream Supply Chain and their Influence on Vulnerability

Author(s): Aleksandra Anđelković,Nada Barac,Marija Radosavljević / Language(s): English Issue: 2/2017

In the modern business environment risk management has become a key assistant to enterprise management. Considering that, supply chain management, as part of enterprise management, cannot ignore the risks and the need for implementation of an adequate risk management strategy. Supply chain, as well as inter-organizational network, is the source of competitive advantage. However, inadequate risk management within a supply chain can lead to interruptions of the chain and to the lack of results at the level of the whole supply chain, as well as at the level of individual partners. Upstream supply chain represents the part of supply chain from suppliers to producer. The objective of this paper is to analyse how and to what extent the structure and the number of partners in this part of the supply chain influence (increase or decrease) supply chain vulnerability. The authors analyse the factors which most commonly affect to upstream supply chain and threaten its functioning. By analysing the supply chains from different area, the authors suggest that the size of the supplier's base can be treated as the resistance factor, but also as a factor of vulnerability.

Workforce Motivation as a Factor of Productivity

Author(s): Milica Žarevac Bošković / Language(s): English Issue: 2/2017

This paper aims to point to the possibility of increasing the productivity of companies without increasing their operating costs. Most of the identified incentive factors that affect productivity require a certain increase in costs for the company. However, concerning employee motivation, certain exemptions from the “rules” were found: productivity growth inevitably precedes the increase in costs. The complexity regarding the motivation of the workforce is explained by a simple fact: the motivation of the workforce is directly linked to a human - thus far the most complex being created, who creates, consumes, feels, yearns and suffers ... Only an (economic) organism composed of healthy, satiated cells (happy, motivated workers) can be healthy and productive, and, as such, sustainable over the long term period. Results of the research suggest that the company’s management, by introducing the “SM” model presented in this paper and by conducting a simple analysis of the employees’ satisfaction with the income level could determine, in accordance with their capabilities, the optimal way to increase the motivation of the employees without necessarily increasing the operating costs and, implicitly, increase productivity, which is the main contribution of this work, both from the scientific and practical point of view.

Market Size as a Determinant of the Foreign Direct Investment Inflows in the Western Balkans Countries

Author(s): Marija Petrović-Ranđelović,Vesna Janković Milić,Ivana Kostadinović / Language(s): English Issue: 2/2017

Numerous empirical studies confirm that market size is one of the key determinants of foreign direct investment inflows, particularly market-oriented projects of foreign direct investment. Basically, the dominant view is that a larger market of the host country attracts a greater quantum of foreign direct investment. This paper examines the influence of market size, as well as the impact of market growth, trade openness, and population size on the foreign direct investment inflows into the six countries of the Western Balkans region in the period 2007-2015. Multiple regression analysis was applied in examining the impact of these variables on foreign direct investment inflows. The obtained results show that market size, market growth and population size had a significant positive impact, while trade openness had a negative impact on foreign direct investment inflows in the observed countries. Thus, the main findings of this research confirm that market size is an important determinant of the foreign direct investment inflows in the Western Balkans countries.

THE CIRCULAR ECONOMY - A PATHWAY TO SUSTAINABLE FUTURE

Author(s): Aneta Vasiljevic-Shikaleska,Biljana Gjozinska,Martin Stojanovikj / Language(s): English Issue: 17/2017

The circular economy is an attractive, smart and innovative concept, promising the efficient use and reuse of resources and a strong business case. It is a sustainable development strategy that is being proposed to tackle the problems of environmental degradation and weaken the dependence of economy on natural resources and environment. Through embedding the 3R principles of materials use Reduce, Reuse and Recycling into production and consumption process, the Circular Economy aims at greater resource productivity, higher energy savings and lower greenhouse gasses emission. Several different approaches that encourage the transition to a circular economy exist. Among them, the approaches to closing material loops and use the product as a service system in a circular economy are developing most intensively and till now many innovative business systems and models proved effective in delivering resource efficiencies, both, within the manufacturing process and at the end of product life. The transformation is a complete systematic change comprising of innovation in technological and organizational terms too. By helping to decouple economic growth from resource use the transformation to circular economy offers a prospect of sustainable growth that will last. The majority of reported initiatives on the circular economy is targeted at waste and secondary raw materials, whereas only few countries have explicitly commented that Circular Economy requires going beyond increasing recycling rates and a higher use of the secondary raw materials by utilization of different innovative approaches that have to be combined and implemented across the whole supply chain.

HOW INVESTMENT BANKING INFLUENCED THE APPEARANCE OF THE WORLD ECONOMIC CRISES - THE CASES OF LEHMAN BROTHERS AND GOLDMAN SACHS

Author(s): Tome Nenovski,Evica Delova Jolevska,Simona Trpovska / Language(s): English Issue: 17/2017

The purpose of this research is to enable one to understand whether and how investment banks became one of the major influencing factors for the appearance of of the 2008 world financial and economic crises. Due to the lack of control and supervision, during the last two decades the investment banks exercised enormous freedom and were profit oriented taking highly risky trades and investments. The inability of the regulatory bodies to follow the actions of many multinational corporations clearly illustrates a weakness into the legal system as well as the rules and regulations applicable to the companies from the financial sector. The poor work of the rating agencies and regulatory bodies gave almost unlimited freedom to investment banks. The root of that is the amendment of the U.S. Glass - Steagall act (1999) which allowed intermingling of investment and commercial activities, the holes in the international standards and the introduction of two new products on the market: securitization and derivative trading. The investment banks started acquiring other businesses and became holdings. They engaged themselves in very risky trades, investments and transactions and were not able to repay its short term obligations. The trading with derivatives expanded the crises worldwide. The crises took massive measures and drew the entire world economy into financial crises and the biggest recession in the history.

Creative Cash Flow Reporting

Author(s): Aleksandra Arsenijević,Tadija Đukić / Language(s): English Issue: 2/2017

Financial statements should realistically show financial position, performance, and cash flows of a company. Creative financial reporting represents a deliberate manipulation of information in financial statements in order to create misperceptions on company operations. Creative financial statements are primarily intended for investors, in order to encourage them to purchase company shares and thus increase its market value. Creativity in compiling cash flow statements lies in presentation of operating activities as investing and financing activities, and vice versa.

Analysing the Role of Framework Conditions Influencing International Entrepreneurial Opportunity Identification Process

Author(s): Yonni Angel Cuero Acosta,Richard Adu-Gyamfi,Moor Un Nabi,Utz Dornberger / Language(s): English Issue: 3/2017

Objective:The objective of this paper is to determine and analyse the framework conditions that influence the entrepreneurial opportunity identification and action in the international market context.Research Design & Methods: Scholars from the International Business and International Entrepreneurship (IE) research fields agree that the process of internationalisation is triggered by opportunity identification. The extant literature is reviewed by assessing the framework conditions that domestic and international markets offer for entrepreneurial actions. An analytical juxtaposition of the influential factors is conducted in the light of various stages of the opportunity identification process by examining − at each stage − possible effects of domestic and international market context.Findings:This paper brings into the IE discussion a conceptual matrix of various elements and factors − external conditions – which influence the creation of nexus by entrepreneurs to the markets.Implications & Recommendations:The conceptual matrix offers new insights for theoretical development and arguments for designing empirical research in terms of external conditions. It is expected to provoke more theoretical and practical questions from scholars within the IE field.Contribution & Value Added:The originality of this work lies in proposing a comprehensive framework to understand how context interacts with the entrepreneurial opportunity identification process.

Antecedents of Accelerated Internationalisation of Polish and Czech Small and Medium-Sized Enterprises

Author(s): Izabela Kowalik,Lidia Danik,Peter Král,Hana Řezanková / Language(s): English Issue: 3/2017

Objective: The study goal was the investigation of relationships between accelerated internationalisation descriptors and antecedent firm- and entrepreneur-related factors in Polish and Czech SMEs.Research Design & Methods: In order to compare Polish and Czech companies, the data collected in two independent studies were used. The study of 233 Polish companies was conducted with the use of CATI method in 2014; 108 Czech companies were surveyed in 2013/2014 with the use of CAWI method. In both samples half of the surveyed SME-exporters were conforming to the accelerated internationalisation criteria.Findings: In both samples the “global vision” elements and company internationalisation scale and speed were interrelated. In the Polish companies this relationship was moderated by company size. There was the lack of strong positive relationships between innovativeness and internationalisation speed and scale in both samples.Implications & Recommendations:The managerial mindset has a decisive role for accelerated internationalisation in both Czech and Polish SMEs. The innovativeness of offering is not indispensable for fast foreign expansion. Larger companies may expand abroad faster if they have internationally oriented managers.Contribution & Value Added:This work addresses a research gap concerning idiosyncrasies of internationalisation antecedents in Polish and Czech enterprises. As the results show, there is no common internationalisation pattern for Polish and Czech SMEs.

The Role of Strategic Partnerships in the Internationalisation of Small Born Global Firms

Author(s): Paweł Capik,Andreas Brockerhoff / Language(s): English Issue: 3/2017

Objective: The article discusses motives driving the internationalisation of small born global firms and explores the role strategic partnerships play in the process. It argues that born globals are forced into international markets soon after their foundation due to limited domestic market capacity. Furthermore, they attempt to prevent competition on international markets and secure first mover advantages.Research Design & Methods: Based on primary data gathered in the course of interviews with founders and senior managers of British born globals operating in different industry sectors, the article offers new insights into the role of partnerships during early stages of internationalisation.Findings: The article reveals that beside serendipitous opportunities, the motivation and opportunity recognition of the founder/manager play a vital role in firms’ early internationalisation. Strategic partnerships appear to help born globals in overcoming resource constraints and their liability of newness and smallness. Also other factors, such as increasing brand recognition and the enhancement of the firm’s credibility motivate born globals to engage in strategic partnerships from an early stage.Implications & Recommendations: The research results lead to a conclusion that strategic partnerships are suitable only for a particular period of time, which begins shortly after the firm’s inception and ends when the born global firm becomes more established.Contribution & Value Added: The article provides novel understanding of the role of strategic partnerships play in the early internationalisation of born globals. Furthermore, it adds new insights into the evolution of such partnerships.

Determinants of Controlling in Foreign Subsidiaries of MNEs: On the Explanatory Potential of the Institutional Perspective

Author(s): Cezary Kochalski,Magdalena Łuczak-Trąpczyńska / Language(s): English Issue: 3/2017

Objective: The main aim of this paper is to identify gaps in extant literature on controlling in MNEs, in particular factors affecting related managerial decisions. Secondly, the relevance of the institutional perspective will be examined for its potential to explain the design of controlling in foreign subsidiaries.Research Design & Methods: The dimensions of international controlling are discussed. Further, the institutional approach is examined for its applicability to advance the understanding of the determinants of shaping controlling systems in foreign subsidiaries of MNEs.Findings: Institutional aspects can have a significant impact on the functioning of MNEs in relation to their controlling systems. Informal institutions can influence the formation of the controlling system in the relations between the subsidiaries of the MNE, whereby also institutions within the MNE itself should be taken into account.Implications & Recommendations: Conducting in-depth qualitative research will allow for a set of recommendations that are relevant to managers responsible for an effective implementation of management control systems.Contribution & Value Added: The relevance of the controlling system in parent-subsidiary relationships has not received significant attention in existing studies in the discipline of international controlling.

SME Roles in Modular Value Chains: Perspectives for Growth and Innovativeness

Author(s): Marta Gancarczyk,Jacek Gancarczyk,Joanna Bohatkiewicz / Language(s): English Issue: 3/2017

Objective: The aim of the paper is to present modular value chains (MVCs) as a technological and organisational phenomenon that affects industrial organisation and innovation, and to identify the characteristics and types of SME positions (roles) in modular value chains that are associated with innovation development and growth.Research Design & Methods: The study employs two methods, which are literature review and a multiple-case study approach based on two SMEs in the IT industry of which one acts as an independent innovator generating proprietary solutions and the other one is a supplier of production capacity in the area of lower to medium value-adding solutions.Findings: SME roles in modular value chains range from lowest-tire subcontractors in captive or market-based governance to major roles typical of large players in modular governance, e.g., quasi-lead firms and quasi-contract manufacturers. The latter two roles are associated with innovation and high growth.Implications & Recommendations: The recommendations as to the role of public policy and geographical context are provided regarding how to facilitate SMEs’ integration into MVCs with a focus on innovativeness and expansion. The question for further research is whether the roles identified in the case studies can be treated as SME-specific models of participation in modular value chains, or are they only development stages of growth SMEs towards the roles of large firms – leader firms and contract manufacturers (system integrators).Contribution & Value Added: The paper contributes by identifying the roles that SMEs can play in modular value chains and by identifying governance arrangements that SMEs apply to accomplish innovation and high growth.

From Knowledge to Innovation and Back: Empirical Testing of Knowledge-Intensive Industries in Serbia

Author(s): Nikola Radovanović,Veljko Dmitrović,Nevenka Žarkić Joksimović / Language(s): English Issue: 3/2017

Objective: In the technology and knowledge intensive industries, innovation and knowledge use are key elements for competitiveness. Organisations are oriented towards increasing their potential for exploiting innovation and developing knowledge base internally through various techniques employed. This research aims at analysing the relationship between the dynamics of knowledge use and innovation efforts of organisations.Research Design & Methods: The methodology included quantitative and qualitative research method based on a survey, while the data of this research were analysed with the application of descriptive statistical method (variance).Findings: The results of the study suggest that realised innovation correlates with the use of knowledge in organisations and that an increase in research and development activities, as well as in patented and non-patented products or services will likely lead to an increase in the volume of internal knowledge use by employees.Implications & Recommendations: The results of this research can be useful for researchers and practitioners in technology and knowledge intensive industries. The findings can be used as a basis for adjusting organisational policies towards developing competitiveness based on the enhancement of the use of existing knowledge and by developing innovation strength.Contribution & Value Added: This paper is a valuable contribution to research fields of organisational management, innovation management, knowledge management, absorptive capacity, and especially innovation management.

How Can Blockchain Technology Disrupt Existing Business Models?

Author(s): Witold Nowiński,Miklós Kozma / Language(s): English Issue: 3/2017

Objective: The main purpose of the paper is to show that blockchain technology may disrupt the existing business models and to explore how this may occur.Research Design & Methods: This is a theory development paper which relies on a literature review and desk re-search. The discussion of the reviewed sources leads to the formulation of three re-search propositions.Findings: The paper provides a short overview of key literature on business models and business model innovation, indicating, among others, that new technologies may be one of the drivers of business model innovation. This study also provides an overview of blockchain technology and a range of its business applications showing how it can disrupt business models. It is shown that blockchain technology may affect many dimensions of business models. We propose that there are three crucial ways in which blockchain technology can affect and disrupt business models: by authenticating traded goods, via disintermediation and via lowering transaction costs.Implications & Recommendations: This study shows that blockchain technology may affect diverse dimensions of business models in diverse industries. It is recommended that mangers should follow developments in this field in order to prepare for possible disruptions in their industries.Contribution & Value Added: This study provides an analysis of the possible impact of blockchain technology on business model innovation. Blockchain technology is gaining momentum with more and more diverse applications, as well as increasing numbers of actors involved in its applications. This paper contributes to our understanding of the possible applications of blockchain technology to businesses, and in particular to its impact on business models.

Role of Experience in Customer Self-Congruity to Maintaining Loyalty: A Study on Fashion Store

Author(s): Angga Pandu Wijaya / Language(s): English Issue: 3/2017

Objective: This study aims to understand the interrelationship between customer experience, self-congruity, and customer loyalty in the fashion industry. Previous studies have examined the direct effect of self-congruity on loyalty without taking into account the factor of customers’ shopping experience, which may moderate customers’ impression of a fashion.Research Design & Methods: This study employed questionnaires distributed to 100 respondents. Collected data was processed using PLS-SEM. The target respondents were between 18-30 years old. Individuals in that age band have dynamic dressing styles, so interesting to study. In the present study, the data from the respondents was processed in order to determine the inner model, the outer model, and hypothesis testing.Findings: The results of this study suggest that customer experience plays a significant role in moderating the effect of self-congruity on customer loyalty. This means that even though customers feel comfortable with a store’s image, however if they have bad experience, such experience may cause these customers not to be loyal.Implications & Recommendations: Research reveals that consumers are very concerned towards their experience when shopping. Stores should provide service that can make their customers feel comfortable and pleased.Contribution & Value Added: This study provides new insights into attempts to maintain customer loyalty. Several research was studied on self-congruity and loyalty, yet this is the first study that depict how experience moderating self-congruity towards loyalty.

FİRMA BÜYÜKLÜĞÜNÜN 6331 SAYILI İŞ SAĞLIĞI VE GÜVENLİĞİ KANUNU KAPSAMINDA BİREYSEL VE ÖRGÜTSEL SONUÇLAR ÜZERİNDEKİ ETKİSİ: İMALAT FİRMALARI ÜZERİNDE BİR ARAŞTIRMA

Author(s): Metin Bayram,Abdullah Hulusi Kökçam,Hüseyin İskender / Language(s): Turkish Issue: 2/2017

Aim: The aim of this study is to demonstrate the effect of firm size on the individual and organizational outcomes of our manufacturing firms, in other words the economic power of firms, in the scope of the Occupational Health and Safety (OHS) Law No. 6331. Method: Survey method was used as data collection tool. Data were collected in February and May of 2017 from 209 manufacturing companies in small, medium and large scale with different NACE codes from Turkey. The data were analyzed in computer environment using descriptive and inferential statistical methods. Findings: It has been found that the firms participating in the research have made compliance expenditures to the OHS Law to fully fulfill the obligations of the OHS Law. Large-scale companies with high financial strength have been found to allocate more resources to OHS than small and medium-scale firms with low financial strength. Medium-scale firms were found to allocate more resources for OHS than small-scale firms. Similarly, it has been found that full fulfillment of OHS law obligations leads to individual and organizational outcomes positively on large and mediumscale firms. The compliance costs made by firms to fulfill OHS law obligations and the resulting organizational outcomes showed a statistically significant difference depending on firm size. In individual outcomes, it was found that firm size did not show any statistically significant difference. Results: In this study, it has been shown that large and medium-scaled enterprises, which have more financial strength compared to small-scale firms, allocate more resources for OHS, which in turn results in greater improvement in individual and organizational outcomes.

ULUSLARARASILAŞMA MODELLERİNİN TÜRK FİRMALARININ ULUSLARARASILAŞMA EĞİLİMLERİNİ AÇIKLAMA GÜCÜ ÜZERİNE BİR İNCELEME

Author(s): Ali Taş,Esin Cevrioğlu,Bayram Bolel / Language(s): Turkish Issue: 2/2017

Aim: This study is conducted to find the answers of the questions, can be mentioned Turkish Firms the existence of a common tendency for internationalization? and which of the internationalization models, are more likely to explain this tendency. Method: Within the framework of these research questions interviews were conducted with 8 internationalized Turkish firms. The analysis of the data collected by the interviews is done with the help of MAXQDA program. Findings: In this framework, the findings show that Turkish firms have got common tendency about both the motives of internationalization and implementation of decisions on internationalization. Results: In addition to that it is implied that the argument power of the network approach from the internationalization models is too high to explain the tendency of the Turkish firms to internationalize.

BUSINESS SECTION

Author(s): Author Not Specified / Language(s): English Issue: 1/1971