Showing papers by "University of Ljubljana, Faculty of Economics published in 2013"

Customer-Based Brand Equity for a Destination

Abstract: The paper introduces the concept of customer-based brand equity and applies it to a tourism destination brand. The theoretically proposed and empirically verified model complements previous research findings on a tourism destination’s evaluation from the customer’s perspective. In addition to numerous studies which have stressed the important role of a destination’s image, the results of our study imply that a destination’s image plays a vital role in a tourist’s destination evaluation but it is not the only brand dimension that should be considered. For a more complete evaluation, the dimensions of tourism destination awareness, quality and loyalty should also be taken into consideration.

Tourism Destination Brand Identity: The Case of Slovenia

Abstract: This paper explores the concept of tourism destination brand identity from the supply-side perspective, in contrast to those studies which have focused on the demand-driven, tourists’ perceived tourism destination brand image. Both researchers and practitioners have concluded that an analysis of the branding concept from both the identity and perceived-image perspective is essential and should be intertwined, where appropriate. However, this study argues that investigations of tourism destination branding have primarily been conducted from a perceived-image perspective. Therefore, the dearth of studies offering an insight into the supply-side perspective may lead to an unbalanced view, misunderstandings and oversights concerning the possibilities and limitations of tourism destination branding. It introduces a theoretical framework designed to analyse tourism destination identity, particularly for the case study of Slovenia.

Supporting Performance Management with Business Process Management and Business Intelligence: A Case Analysis of Integration and Orchestration

Abstract: The case(s) demonstrates the importance of business process management (BPM) and business intelligence systems (BIS) in achieving better firm performance. It has been well documented in the literature that research on the effectively usage and combination of knowledge from BPM and BIS in turbulent service environments is limited. In response, we conduct an exploratory comparative case study of four firms in banking and telecommunication industries that have implemented BPM initiative and BIS solution. Our results firstly highlight that actual results of applying BPM and BIS differ greatly from the results that were originally planned. Secondly, we find that BIS initiatives are usually driven by improving marketing and sales, while BPM initiatives are driven by improving business processes. Thirdly, we identify that there is a lack of strong commitment to using both systems for supporting performance management.

Banks and Information Technology: Marketability vs. Relationships

Abstract: This paper evaluates the impact of information technology (IT) on the operations of banks and the structure of the banking industry, including implications for stability. On the one hand, banks can focus on relationship banking and use IT developments to tailor services to individual needs and build enhanced, albeit modified, relationships with customers. On the other hand, IT better allows banks to exploit scale and scope economies, most evident in transaction banking. Another manifestation of IT is via financial innovations that have enhanced marketability. Stability enters the picture because increased marketability facilitates opportunistic behavior. Together with enhanced herding behavior and changes in industry structure, this could undermine stability and augment systemic risk, calling for a regulatory overhaul.

A Respecified Fama French Three-Factor Model for the New European Union Member States

Abstract: This study uses factor models to explain stock market returns in the Eastern European (EE) countries that joined the European Union (EU) in 2004. In line with other studies, we find that the market value of equity component in the Fama French (1993) three-factor model performs poorly when applied to our emerging markets dataset. We propose a significant amendment to the standard three-factor model by replacing the market value of equity factor with a term that proxies for accounting manipulation. We show that our three-factor model is able to explain returns in the EE EU nations significantly better than the Fama French (1993) three-factor model, hereby offering an alternative model for use in the numerous markets in which previous studies have found little correlation between market value of equity and equity returns.

Resource-Based Approach to Internationalization of SMEs: Differences in Resource Bundles between Internationalized and Non-Internationalized Companies

Abstract: The resource-based approach is a new promising theoretical framework that is applied to the internationalisation of SMEs. Derived from strategic management it provides value-added theoretical propositions about the uniqueness of certain resources that have turned out to be critical for the internationalisation process of SMEs. This paper examines the differences in resource bundles (organisational, financial, and human and social) between internationalised and non-internationalised Slovenian SMEs. The findings are also controlled for the control variables of firm size and age from which valuable propositions and implications are derived for the entrepreneur and those policy-makers who want to increase the number of internationalised SMEs.

The Influence of Previous Visitation on Customer's Evaluation of a Tourism Destination

Abstract: The paper investigates the customer's perspective on a tourism destination brand through four proposed dimensions: awareness, image, quality and loyalty dimension. In addition to brand's dimensions evaluation, the influence of previous visitation on each proposed dimension is presented. The evaluation of tourism destination brand Slovenia in the minds of German respondents serves as an investigated example. In addition to evaluation for each investigated dimensions’ variables for destination Slovenia perceived by German respondents, the study confirms also the influence of previous visitation on brand evaluation. In the investigated example, previous visitation is recognized as the improvement factor in Slovenia's evaluation in the minds of German respondents.

Income Redistribution through Taxes and Social Benefits: The Case of Slovenia and Croatia

Abstract: Summary: The article analyses the redistributive effect attained by personal income tax, social security contributions and social benefits in Slovenia and Croatia. The redistributive effect is decomposed first to reveal progressivity and horizontal inequity effects, and further to show contributions of different tax and benefit instruments. Even though both countries started from the same socioeconomic background two decades ago, the current results reveal divergence that is a consequence of diverse development during this period. The results indicate that Croatia experienced significantly higher pre-fiscal income inequality and lower redistributive effect than Slovenia. Horizontal inequity effects, though, were higher in Slovenia than in Croatia. In both countries, the meanstested social benefits exerted an over-proportionate influence on the vertical effect, suggesting a strong impact of the welfare state on income position of their residents, but also induced a large amount of horizontal inequity. In Slovenia, the non-means-tested benefits slightly increased income inequality.

Global supply chains at work in Central and Eastern European Countries: Impact of FDI on export restructuring and productivity growth

Abstract: This paper empirically accounts for the importance of the 'global supply chains' concept for export restructuring and productivity growth in Central and Eastern European Countries (CEECs) in the period 1995-2007. Using industry-level data and accounting for technology intensity, we show that FDI has significantly contributed to export restructuring in the CEECs. The effects of FDI are, however, heterogenous across countries. While more advanced core CEECs succeeded in boosting exports in higher-end technology industries, non-core CEECs stuck with export specialization in lower-end technology industries. This suggests that where FDI flows have been directed is of key importance. Our results show that export restructuring and economic specialization brought about by FDI during the last two decades in the CEECs might matter a lot for their potential for long-run productivity growth. Industries of higher-end technology intensity have experienced substantially higher productivity growth and so have countries more successful in attracting FDI to these industries.

The Image as a Possible Source of Competitive Advantage of the Destination – The Case of Slovenia

Abstract: The paper points out the image of a destination as a possible source of competitive advantage of the destination. A review of the literature is included showing the rising importance of the image of a destination. Slovenia’s image as a tourist destination perceived by foreign tourist experts is analysed. Interesting mountains and lakes, beautiful natural attractions and interesting and friendly people were identified as the most typical attributes of Slovenia’s image from the foreign tourist experts’ point of view. The significant differences in Slovenia’s image between those experts familiar with Slovenia compared to those experts who are only just aware of Slovenia are presented. The research shows that familiarity with Slovenia increases a tourist expert’s image of Slovenia, especially the perceptual/cognitive component. According to the results of discriminant analysis, the discriminant attributes of Slovenia’s image for each group are emphasised. Slovenia’s appealing food and modern health resorts were the discriminant attributes for the group of tourist experts that is familiar with Slovenia, while traditional events were the distinguish attribute for the group of experts that is only just aware of Slovenia. Suggestions as organising familiarisation tours that include tour operators, travel agents and travel writers seemed to be a proper way of boosting Slovenia’s image compared to other competitive tourist destinations.

Extending the Tourism Destination Image Concept into Customer-Based Brand Equity for a Tourism Destination

Abstract: This paper explores the demand-side perspective on tourism destination phenomenon and investigates whether more comprehensive measure for its evaluation could be applied to the destination brand. Unlike many previous studies dealing mostly with a tourism destination image concept, the approach employed in this paper proposes a more comprehensive measure of destination image and includes the dimensions of tourism destination awareness, quality, and loyalty. The theoretically proposed model was empirically verified for two competitive European tourism destinations (Slovenia and Austria) from the perspective of two culturally heterogeneous tourist markets (Germans and Croatians). The results imply that the traditionally investigated image concept represents the most important dimension in a destination’s evaluation. However, for a more comprehensive evaluation the dimensions of tourism destination awareness, quality and loyalty should be added. Drawing on the results, the paper also offers some implications for tourism organizations in developing and implementing destination marketing strategies in foreign markets.

The Customer’s Perspective on the Tourism Destination Brand: A Structural Equation Modeling Study

Abstract: This study uses a structural equation modeling technique to verify a theoretically proposed model of a customer’s evaluation of a tourism destination brand. We therefore employed a measure of the customer-based brand equity of a tourism destination and tested it on the case of Austria from the perspectives of German and Croatian tourists. The proposed model consists of four main dimensions: tourism destination awareness, its image and perceived quality as well as the loyalty dimension. To verify and confirm the relationships between the proposed dimensions, a second-order confirmatory factor analysis was performed. The findings indicate that all dimensions are interrelated and important for the customer’s evaluation of a tourism destination. However, image represents the strongest dimension in our proposed model.

Country Brand I Feel Slovenia: First Response from Locals

Abstract: The paper analyses the concept of country branding. The focus is placed on influential stakeholders who should participate in brand development and implementation. Specifically, the extremely important role of local inhabitants is stressed. The paper focuses on the country branding in Slovenia and investigates the residents' first response to the new brand I feel Slovenia, which was implemented in 2007. The research was conducted half a year after the new brand was born. The results imply that the brand has great potential to become successful, since it is generally well recognised and perceived by its largest internal stakeholder group – local inhabitants.

Forecasting Mortality for Small Populations by Mixing Mortality Data

Abstract: In this paper we address the problem of projecting mortality when data are severely affected by random fluctuations, due in particular to a small sample size, or when data are scanty. Such situations may emerge when dealing with small populations, such as small countries (possibly previously part of a larger country), a specific geographic area of a (large) country, a life annuity portfolio or a pension fund, or when the investigation is restricted to the oldest ages. The critical issues arising from the volatility of data due to the small sample size (especially at the highest ages) may be made worse by missing records; this is the case, for example, of a small country previously part of a larger country, or a specific geographic area of a country, given that in some periods mortality data could have been collected just at an aggregate level. We suggest to 'replicate' the mortality of the small population by mixing appropriately the mortality data obtained from other populations. We design a two-step procedure. First, we obtain the average mortality of 'neighboring' populations. Three alternative approaches are tested for the assessment of the average mortality; conversely, the identification and the weight of the neighboring populations are obtained through (standard) optimization techniques. Then, following a sort of credibility approach, we mix the original mortality data of the small population with the average mortality of the neighboring populations. In principle, the approach described in the paper could be adopted for any population, whatever is its size, aiming at improving mortality projections through information collected from other groups. Through backtesting, we show that the procedure we suggest is convenient for small populations, but not necessarily for large populations, nor for populations not showing noticeable erratic effects in data. This finding can be explained as follows: while the replication of the original data implies the increase of the size of the sample, it also involves a smoothing of data, with a possible loss of specific information relating to the group referred to. In the case of small populations showing major erratic movements in mortality data, the advantages gained from the larger sample size overcome the disadvantages of the smoothing effect.

Clarifying the Concept of Customer-Based Brand Equity for a Tourism Destination

Abstract: The paper introduces the concept of customer-based brand equity for a tourism destination and thereby completes previous tourism destination studies which have exclusively investigated the destination image concept. Since no other authors have combined the four proposed dimensions (awareness, image, quality and loyalty) to evaluate a destination, the key purpose of the qualitative research was to clarify the customer-based brand equity concept that will be the subject of descriptive and causal research. The study instrument was originally prepared to analyze Slovenia as a tourism destination. In-depth interviews with potential tourists were employed in our qualitative research which served as a pre-step in further measurement instrument preparations.

Developing Brand Identity for Slovenia with Opinion Leaders

Abstract: Purpose: The purpose of the paper is to present the first systematic approach toward brand development in country Slovenia. The approach was of a holistic nature as relevant areas (i.e. economy, tourism, culture, science, sport) and related key stakeholders that affect and co-create the Slovenia brand had been determined in advance and invited to participate in building Slovenia's identity. Design/Methodology/Approach: Specifically, the paper presents the results of creating the identity of the I feel Slovenia brand from the viewpoint of 30 Slovenian opinion leaders. We invited experts to express their opinions through a Delphi method, which was repeated in two iterations. The results of both iterations are presented in the paper. Their opinions represented the first step of the process in developing identity elements of the Slovenia brand. Practical Implications: The development of brand identity with opinion leaders represents the first, but very important step towards a systematic process in developing the country brand of Slovenia.Findings: According to opinion leaders, the key idea of brand identity should be related to Slovenian nature, which should also be reasonably incorporated in other brand identity elements. Originality/Value: The brand building process was executed on a real example of the country of Slovenia, which has never been a strong country brand. The paper could serve as a case study for other countries in Central and Eastern Europe, which have not worked seriously on their country brands until now.

Disruptive Technologies: A Business Model Perspective on Cloud Computing

Abstract: A viable business model is crucial for the successful commercialization of disruptive technologies. The cloud computing industry provides an ideal example for exploring how various elements of a business model contribute to a product's success (or failure). We examine how Amazon.com, Salesforce.com and Siebel responded to the disruptive power of the cloud computing technology. Our findings suggest disruptive technology per se is not the reason for the collapse of large corporations, but rather the failure to adapt or create new business models to incorporate novel technology. Our findings have direct implications for strategic managers and entrepreneurs seeking to leverage disruptive technologies through the right business model.

Social change, institutional pressures and knowledge creation: A bibliometric analysis

Abstract: Contemporary academic environment can be characterized by an overwhelming trend toward enhancing research productivity and knowledge creation. The purpose of this study is to examine the impact of radical social change and subsequent institutional pressures on internationally relevant knowledge creation. The setting examined is business and economics science in Eastern Europe. Using a case study of Slovenian business schools and deploying a bibliometric analysis we find that research productivity is increasing significantly. We note however dilemmas pertaining to the content and quality of knowledge created. Further, we find that international research cooperation has positive quality effects. From a theoretical perspective, we argue that radical social change was not mirrored by such change in normative institutions, whereas recent changes in regulatory institutions seem to have a substantial positive effect on research performance.

Bright Past, Shady Future? Past and Potential Future Export Performance of CEE Countries in a Comparative Perspective

Abstract: In this paper we examine the reasons behind the remarkable export performance of transition economies in the last two decades. Following Redding and Venables (2004, 2004a) and Fugazza (2004), we decompose export performance into the gains due to the advantageous access to foreign markets and export gains on the side of the internal supply capacity. We find that size of the economy, inward FDI penetration, most notably in the manufacturing sector, export unit values, denoting the structural changes of CEECs’ exports, and the quality of institutions and infrastructure had significant positive impact on exporting country’s supply capacity, while productivity had a negative impact. The latter is mostly due to unfavourable trends in ULC since the accession. Unlike in EU-15 and BRIC countries, the internal supply capacity is becoming decreasingly important as base of CEECs export performance. At the same time, trends in cost competitiveness are worsening relative to competing countries, while benefits of EU accession have been mostly exploited. This may compromise the CEECs’ future export growth.

Slovenia as a Tourism Destination: Differences in Image Evaluations Perceived by Tourism Representatives from Closer and More Distant Markets

Abstract: The paper explores the complex nature of the destination image concept and investigates the image of Slovenia as a tourism destination perceived by the tourism representatives. Specifically it investigates the differences in proposed components of Slovenia’s image perceptions between respondents from closer and more distant markets. Although the overall Slovenia’s image does not differentiate between investigated groups of respondents, significant differences appear in perceptual/cognitive and affective image attributes. Drawn from the results the author suggested some practical implications for Slovenia’s destination marketing strategies on foreign markets. The author argues, that destination managers and marketers should consider the important role of the destination image, but that at the same time also bear in mind the destination identity, as the concept created by the brand owner. Consequently, destination marketing strategies should aim to achieve an image transfer that is based on a destination’s identity.

A Green Tourism Barometer in the Time of Economic Crisis - The Concept and Case of Slovenia

Abstract: This paper, first, defines responsible versus sustainable tourism and, second, develops a tool to measure a destination’s transition toward more sustainable and responsible tourism. The proposed conceptual measurement model is based on Frey's classification of environmental social stages and presents destination stages from i) ignorance regarding sustainability, ii) to awareness, iii) to sustainability-based strategic thinking and iv) responsibility. The model is tested on the case of the Slovenian accommodation sector. The results are analysed and discussed considering the impact of a great financial and economic crisis (GFEC). The proposed model (the green barometer) proved to be a useful tool in the case of Slovene tourism. The model showed that Slovene tourism has not finished its transition into a sustainable and responsible tourism destination. The stakeholders in Slovene tourism re well-aware of environmental problems and their impacts on business, but more action towards the implementation of sustainability, as well as more efforts in tourism strategy development, planning and responsibility, will be needed. However, and despite the economic crises that started in Slovenia in 2009, the sustainability of Slovene tourism has improved during the 2009-2012 period. At the destination level, economic factors appear to be of less concern for the destination public stakeholders compared to the industry level. However, the GFEC might have forced the tourism stakeholders to redesign their business model and intensify efforts in terms of their product quality and differentiation and to choose a more sustainable development path.

Write-Offs and Profitability in Private Firms: Disentangling the Impact of Tax-MinimisationIncentives

Abstract: Private firms are likely to use the financial reporting process more for other objectives, such as tax savings, than for communicating performance. However, observing firms choosing accounting policies for tax-minimisation purposes is not straightforward due to (i) tax and non-tax costs of reporting lower income (ii) accounting policies that result in lower reported income and no tax savings but generate non-tax benefits (iii) preparers’ multiple incentives and (iv) econometric issues. We observe a large sample of 20,505 private firms writing off assets in two separate regimes, one that generates tax savings and one that does not. Firms significantly decrease, but continue to use, write-offs after the adverse change in tax treatment of write-offs. The exogenous tax change should not affect other reporting incentives. This allows us to disentangle the tax-minimisation incentive from other (unobservable) incentives, including debt contracting, dividends and employee relations that contribute to the observed anomalous positive relationship between write-offs and profitability. We show that for private firms (i) obtaining tax savings is important overall (ii) non-tax costs and benefits are probably also important and (iii) earnings informativeness for future cash flows increases after the adverse tax legislation change.

Social Media as Enabler of Crowdsourcing

Abstract: Purpose — The purpose of this study is to investigate how social media features enable crowdsourcing and to gain rich understanding of mechanisms that lead from online community design practices to success in crowdsourcing initiatives. Methodology/approach — Inductive qualitative methods were used for investigating the case of crowdsourcing-based microstock business model. Twenty-three in-depth interviews with stock photography industry insiders were combined with netnography data and documents. Findings — Two mechanisms influencing participants’ motivation and peer-to-peer learning were identified. Both extrinsic and intrinsic motivations are important for participants’ engagement. Research limitations/implications — Findings of this inductive effort should be replicated in other industry settings and used to develop testable propositions of antecedents and outcomes of crowdsourcing implementations. Practical implications — Companies embarking on crowdsourcing initiatives can enhance participants’ motivations through social media and enable learning through online communities. Managers must understand who participates in the crowd and what their motivation is.

Evaluating Slovenia’s Image as a Tourism Destination: Self-Analysis Process Towards Building a Destination Brand

Abstract: The paper points out the importance of evaluating the image of a destination. The author clearly emphasises the role of identity in management branding and treats the process of image evaluation as a self-analysis process leading towards building a strong destination brand. This process is even more important for young countries like Slovenia. Slovenia’s general image as seen by tourist experts is evaluated, especially the perceptual/cognitive component. Possible image factors are presented and reasonable suggestions for marketing actions in line with new trends on the demand side are offered. The emphasis is on the active component, involving different types of activities offered to foreign tourists in the mountain areas and the participation of Slovenian people in living and sharing the destination brand.

Risk Averse Insiders with Specific Objective Function and Capital Structure Choice in European Emerging Economies

Abstract: I provide new insights in capital structure choice in European emerging economies by extending the logic beyond the scope of modern capital structure theory, which is based on the assumption that firms are governed by shareholders and follow the goal of maximizing their wealth. I empirically investigate capital structure choice in these countries assuming an alternative corporate governance paradigm that puts risk averse insiders with specific objective function in the firm’s governance structures. I found that firms that are owned by insiders operate with significantly lower leverage, as well as that the probability that a firm uses debt at all drops if insiders are the largest shareholders.