Showing papers in "Baltic Journal of Management in 2007"

Determinants of capital structure of banks in Ghana: an empirical approach

Abstract: Purpose – The purpose of this paper is to investigate the dynamics involved in the determination of capital structure of banks in Ghana.Design/methodology/approach – The study employs panel regression model in examining the capital structure of banks in Ghana.Findings – The results of this study show that profitability, corporate tax, growth, asset structure and bank size influence banks' financing or capital structure decision. The significant finding of this study is that, more than 87 per cent of the banks' assets are financed by debts and out of this, short‐term debts appear to constitute more than three quarters of the capital of the banks. This highlights the importance of short‐term debts over long‐term debts in Ghanaian banks' financing.Originality/value – The main value of this paper is identification of factors that determine capital structure of banks in Ghana.

Individual correlates of organizational commitment and intention to leave the organization

Abstract: Purpose – The goals of the present study are three‐fold. First of all, the paper aims to test the three‐component model (emotional, continuance and normative components) of organizational commitment in the Lithuanian population. The second goal is to analyze the relationships among individual factors (age, gender, personality traits) and organizational commitment. Finally, the paper aims to test the hypothesis if there was a relationship between organizational commitment and intention to leave the organization in the Lithuanian sample.Design/methodology/approach – The participants of the study were 105 employees working in various Lithuanian organizations (41 men and 64 women). The average age was 34.9 (SD = 11.6). The subjects completed the questionnaire that included responses to three‐dimensional measure of organizational commitment, self‐reported measure of temperament, as well as questions about demographic information. Following Meyer et al., intention to leave the organization was assessed with thr...

The internationalization of family SME

Abstract: Purpose – Owing to its specificities, the family small and medium enterprise (SME) shows a particular behavior as for the creation, development, sharing, protection and transmission of knowledge. The purpose of this paper is to study the specificities of the processes of knowledge creation and development in family firms. Design/methodology/approach – Through a questionnaire, hypotheses of the model were tested. The study is based on 118 firms belonging to various industries. After evaluating the reliability and validity of the items through exploratory and confirmatory factor analysis, the model was tested through structural equation modeling (LISREL). Findings – The model retained induces the following conclusions. Internationalization knowledge positively influences internationalization degree of the firm. The conservatism of family SME does not directly influence the level of internationalization knowledge. The influence of conservatism on internationalization knowledge is exerted only through the decisional dimension of independence orientation. The independence orientation of family SME, then with its two dimensions simultaneously (decisional and resource independence), does not significantly influence internationalization knowledge. Contrary to decisional independence which influences indirectly the degree of internationalization (through the intermediation of internationalization knowledge), resource independence influences directly the dependant variable. The mediation of internationalization knowledge is thus not totally proven. Social networking positively influences the amount of internationalization knowledge. Research limitations/implications – A major weakness is the absence of a synchronic approach as the dependent and independent variables are measured at the same moment. A more longitudinal approach would be valuable to analyze the causal relationships between the independent variables and internationalization knowledge and internationalization degree. A second limitation is that the characteristics of the sample may limit the generalizability of the results.

Exploring the impact of shared leadership on management team member job outcomes

Abstract: Purpose – The purpose of this study is to explore the extent to which working in a management team in which leadership functions are shared impacts the role clarity, job overload, stress and job satisfaction of team members. It also aims to explore the moderating influence of organizational encouragement for team work.Design/methodology/approach – The study uses data obtained from 200 top management team members working in Christian church organizations in the USA. Structural equation modeling was used to examine the relationship of shared leadership with the role conflict, role ambiguity, job stress, and job satisfaction of the management team members. These relationships were also evaluated for team members in organizations with both higher and lower levels of encouragement for team work.Findings – A model in which role conflict and ambiguity mediate the relationship between shared leadership and job stress and job satisfaction provides the best fit with the data. Shared leadership within a management t...

Entrepreneurs' coping with challenging role expectations

Abstract: Purpose - The purpose of this study is to analyze entrepreneurs' coping strategies used to face stakeholders' expectations. Design/methodology/approach - The paper draws from the general management ...

Leadership in different kinds of regional development networks

Abstract: Purpose – The aim of the study was to assess the effectiveness of network leadership in meeting the requirements for regional development networks imposed by the network society.Design/methodology/approach – A new framework of three different archetypes of regional development networks was devised. The characteristics of the different networks and the requirements they set for network leadership were assessed as a case study in the Lahti Region, Finland. A special panel of experts of three highly experienced network leaders was organized as part of the present study. Their task was to assess the differences concerning network leadership in different regional development networks. The session was conducted in the (niin sanottu means it was not an inspiration) Inspiration Center in the Lahti Region. Inspiration Center is a platform for brainstorming and stimulation, designed especially to arrive at ideas and form opinions through teamwork. The method used was a half‐structured group discussion, planned espe...

Modeling relationship quality in the parcel delivery services market

Abstract: Purpose – The aim of this study is to develop a structural model and test it in the parcel delivery services business‐to‐business market in order to identify how services quality influences relationship quality and to determine the interactions between constructs of relationship quality.Design/methodology/approach – A structural model was developed using frameworks suggested by Gwinner et al., Hennig‐Thurau et al. and Bingguang et al. Online survey research was employed to survey the respondents. Structural equation modeling was employed to estimate structural model and test hypotheses.Findings – The research demonstrated that services quality does not have direct influence on commitment, but impacts it indirectly through various relational benefits. The results imply that services quality is not enough for commitment‐based loyalty to develop. Relational benefits are essential. The results demonstrated that special treatment benefits, social benefits and confidence benefits are intricately related and hav...

Improving motivation among health care workers in private health care organizations

Abstract: Purpose – The study aims to explore the experiences of nursing personnel in private health care organizations in Lithuania, in terms of their work motivation and satisfaction, promotion and quitting the job, interpersonal interaction at work and to identify areas for sustainable improvement to the health care services they provide.Design/methodology/approach – The research problem includes the following questions. What is the attitude of nursing personnel to the existing elements of motivation in private health care organizations? What organizational tools should be developed in order to improve the motivation of nursing personnel? The sample consists of 237 registered nurses practitioners and 30 nurses' managers working in private health care sector. Methods: data selection: questioning survey; data analysis: descriptive statistics, correlation and factor analysis (using SPSS for Windows 12.0). The research instrument involves 99 closed‐ended items divided into 11 evaluation blocks; Cronbach α of every p...

The impact of ownership concentration, and identity on company performance in the US and in Central and Eastern Europe

Abstract: Purpose – The purpose of this paper is to assess the relationship between ownership structure and company performance of public companies. The central tenet of the analysis is that separation of ownership and control has an adverse effect on the value of the firm, as information asymmetry between owners and managers is exploited by management.Design/methodology/approach – A cross sectional regression is conducted using data on 669 companies, which were members of the S&P 500, BUX (Hungary), WIG (Poland), SBI (Slovenia), PX (Czech) indexes in the third quarter of 2005. Owners with at least 5 percent share ownership are collected from Reuters and Business and Company Resource Center databases.Findings – Results for CEE companies are in line with that of Earle et al. and also support Zwiebel's “space creation” concept. The negative effect of multiple shareholdings is due to collective action problems instead of alternative explanations such as manager repression. Companies in the CEE region have rather conce...

Product adaptation in processes of internationalization

Abstract: Purpose – One of the key decisions in becoming international is the standardization versus adaptation of the products for foreign markets Previous research has mostly seen these alternatives as polarized opposites, even if it seems that the practitioners must nearly always adopt a certain level of adaptation that is nevertheless clearly less than full adaptation The aim of the paper is to connect the amount and types of changes required to the cultural distanceDesign/methodology/approach – A survey was offered to 33 companies producing 107 Slovak food products being exported successfully; the amount of changes required for different markets were calculated and classified for each product Supporting interviews to 15 companies were conductedFindings – The results suggest that markets culturally more distant require a greater number of changes than the culturally more similar target countries The increase is clear especially in amount of packaging size and style changes for the foreign market Converse

Valuation of private companies by Estonian private equity and venture capitalists

Abstract: Purpose – The paper aims to investigate the views of Estonian private equity and venture capitalists about the valuation of high‐growth companies and compare these with theoretical recommendations found in corporate finance and venture capital literature.Design/methodology/approach – The analysis was carried out by using the case study methodology. Structured interviews were conducted in order to present the material for analysis. The dominant model of the case study analysis is exploratory, using an explanation‐building and pattern‐matching technique.Findings – Main findings of the empirical study show that Estonian private equity and venture capitalists make the valuation somewhat differently compared to Western European and American ones. Some findings do not confirm the suggestions made by scientists.Research limitations/implications – Some of the required data were considered to be a business secret. The research could be extended to a broader sample.Practical implications – The findings can be used ...

International competitiveness and organizational change drivers anticipated by Estonian managers in the context of European integration

Abstract: Purpose – The purpose of this paper is to explore the way Estonian enterprises adapt strategically to European union membership. The research question is: what are the main patterns of internationally competitive business development and related organizational change and learning drivers for managers in a transitional country in the European integration process?Design/methodology/approach – This explorative research combines a questionnaire survey and follow‐up interviews of managers from 87 enterprises in food processing, transportation and logistics, wood and furniture, information technology, mechanical engineering, textiles and professional services. The timing of the survey and follow‐up interviews brings longitudinal features to the research design.Findings – The paper offers insights into managerial visions of future competitive advantage and links to changes induced by European integration. Respondents most often pointed out flexibility and competent staff as the key element of their competitivene...

IS projects and implementation

Abstract: Purpose – The purpose of this paper is to participate in the discussion related to why IS projects, both in Western and in Eastern European countries, e.g. Poland, often fail. One major reason is claimed to be poor implementation, and the article asks whether the stakeholders involved overlook the challenge of and the need for knowledge in change management (CM) when implementing complex IT systems.Design/methodology/approach – The research is based on observations of what is reflected in the CM, the project management (PM) and the IS literature. A basic assumption for the approach is that what PM and IS textbooks focus on strongly influences the views and practice of practitioners. A content analysis method was applied to examine empirically 22 textbooks to evaluate whether the IT/PM literature emphasizes relevant essential recommendations developed in the CM literature for handling changes. A mini‐case was used to illustrate how implementation is done in practice.Findings – The research reveals that in ...

Entrepreneurial internationalisation: a case study of Libra company

Abstract: Purpose – This paper aims to contribute to the understanding of internationalisation processes in transition economies, and to make an attempt to conceptualise a new model of entrepreneurial internationalisation.Design/methodology/approach – A theoretical model of entrepreneurial internationalisation is developed, which is then tested in a case analysis of a Lithuanian company. The paper draws on Uppsala internationalisation theory, network theory and theories of international entrepreneurship.Findings – Analysis shows that knowledge, to be a tool for decision making in the internationalisation process, is used to create beliefs or “images” of markets. Second, it is argued that incomplete, fragmented, and even contradictory knowledge results in a system of assumptions about international environment. Under the conditions of a highly turbulent business environment, risk and uncertainty could be handled once they are interpreted by creating a set of beliefs. These beliefs serve as a basis for international ...

Under what conditions do subsidiaries learn

Abstract: Purpose – The main purpose of this paper is to evaluate literature on subsidiary learning, and to trace the main logics and conventional opinions in international business. A secondary purpose is to evaluate the fit, suitability and applicability to this topic.Design/methodology/approach – A literature review on subsidiary learning and knowledge transfer in International Business and Economic Geography was conducted following an explorative design. Through a survey of articles on subsidiary learning sources, barriers, and the required mechanisms were identified. Some underlying theoretical contributions were also surveyed to better capture core constructs.Findings – Motivation, knowledge, absorptive capacity, and role of the subsidiary influence on learning, and the more embedded the subsidiary the better for performance. Furthermore, more advanced economies are expected to create more valuable knowledge, and knowledge flows therefore from advanced to transition economies. The more value‐chain activities ...

Attitudes toward society, organisations, and work in the electronics industry in Finno‐Ugrian countries

Abstract: Purpose – The purpose of this paper is to investigate employees' attitudes toward society, organisations and work in electronic industry of the three Finno‐Ugrian countries from an institutionalist perspective.Design/methodology/approach – Survey was done in two plants of the electronics industry in Estonia, Hungary and Finland. The survey was conducted in two plants of the electronics industry in Estonia, Hungary and Finland, respectively: one produces telecommunications equipment and the other electrical goods for household use. Data from the three countries were compared by means of the ANOVA‐test. The factors influencing job satisfaction and organisational commitment were identified by using linear regression analysis.Findings – The results of an empirical study in the three Finno‐Ugrian countries, Estonia, Finland and Hungary, indicate significant differences, as well as similarities, in attitudes toward society, organisations and work in electronic industry of the three Finno‐Ugrian countries. It is...

Action research as culture change tool

Abstract: Purpose – To report experiences of changing cultures in three Lithuanian schools by means of action research.Design/methodology/approach – This took the form of action research in the schools. Culture change measured by a culture survey (developed by Harrison and Stokes) in the beginning and towards the end of the three‐year change project.Findings – The cultures of the primary and vocational schools have clearly changed towards the general total quality management culture traits of achievement and individual problem solving during our project. The culture of the secondary school has not changed similarly. A possible explanation for this may lie in the very strong power orientation of this third school; in our discussions, some teachers state that some are forcefully against change out of fear of losing their power position. However, even here the power orientation has weakened and the respondents generally are in preference of an achievement culture.Research limitations/implications – Only three case sch...

Evaluating performance of Nordic and Baltic stock exchanges

Abstract: Purpose – The purpose of this paper is to evaluate and compare performances of three Nordic (Sweden, Denmark, Finland) and three Baltic (Lithuania, Latvia, Estonia) exchanges.Design/methodology/approach – Portfolio performance is estimated using two different approaches: traditional measures – Sharpe, Sortino and Treynor ratios; and alternative measures – reward to value‐at‐risk and reward to expected tail loss (RETL).Findings – The findings highlight the differences and similarities in Nordic and Baltic stock exchanges and their performance trends after creation of common marketplace OMX. Returns of Baltic, like Nordic, exchanges are normally distributed. During the period of 2000‐2006, Baltic exchanges outperformed Nordic exchanges.Research limitations/implications – The research is limited to six stock exchanges that are members of common marketplace OMX. Proposed alternative performance measures did not diverge from traditional approaches, because, apparently, Baltic exchanges offer normally distribut...

Polish financial reporting principles in transition

Abstract: Purpose – The purpose of this paper is to deal with the evolution of Polish financial reporting principles in its historical context, this providing the reader with basic understanding of what has been influencing the shape of Polish accounting rules and how they evolved from the communist times until the accession of Poland to the European Union. This in turn should help in understanding the way in which Polish corporate governance system has evolved.Design/methodology/approach – The approach taken is a general review and analysis of the issues surrounding Polish accounting rules transition.Findings – Throughout the transition period Polish financial reporting principles managed to successfully convert from socialistic to financial‐market oriented thus providing both financial managers and investors with a powerful governance tool.Practical implications – Full understanding of the development of modern financial reporting principles, especially in the transition/emerging economies, is not possible withou...

The need of validation and recognition of learning outcomes acquired non-formally and informally: A comparative study

Abstract: Purpose – This paper aims to examine and summarize the findings of a comparative survey carried out to assess how learning outcomes acquired non‐formally or informally are validated and recognized. Owing to limitations of the study, this paper just seeks to consider the challenges that higher education faces, and the new possibilities that might emerge.Design/methodology/approach – The methodology of the study includes critical and systemic analysis of references, also quantitative and qualitative research, which was completed as a three‐stage survey. The following methods were used: analysis of recent legal and political educational documents, structured interviews of experts, and a questionnaire comprising open and closed type questions.Findings – The EU is committed to the principles of transferable learning but, until the principles and processes of recognition and validation of learning are integrated within national policy, this is unlikely to happen in any meaningful way. The current situation of a...