Showing papers in "Euromed Journal of Business in 2011"

Building brand equity with environmental communication: an empirical investigation in France

Abstract: Purpose – Using Keller's brand equity framework, the purpose of this paper is to investigate the impact of the firm's environmental communication on brand equity, and specifically its impact on brand image, through the strength and favourability of brand environmental associations.Design/methodology/approach – A between‐subjects experimental design tests the hypotheses with a generalisable sample of 165 French consumers.Findings – Environmental communication positively influences the strength and favourability of brand environmental associations, therefore improving brand equity. Two moderators reinforce the impact of environmental communication on brand equity through the strength of brand environmental associations: the perceived congruence between the brand and the cause, and the perceived credibility of the claim.Practical implications – In the context of greater consumer pressure regarding business ethics, managers should favour environmental arguments in their corporate communication to improve bran...

Cultural factors affecting consumer behaviour: a new perception model

Abstract: Purpose – The purpose of this paper is to study consumers' perception regarding Calabrian local products and the role of Magna Graecia culture in their buying behaviour, in order to identify a new model which can deliver concrete results for the area as regards marketing strategies and territorial communication, thereby influencing in a positive way the regional development. In fact, many products and artefacts reflect the finds in the region from the ancient Greek era which ran from the eighth century BC to the first century AD (called “Magna Graecia”). Despite this considerable patrimony, Calabria has still not fully exploited its potential.Design/methodology/approach – The research conducted has been developed by using two different approaches: the first qualitative, the second quantitative. In particular, the qualitative method (in depth interviews with marketing experts) has been used initially to find important considerations which constituted the base for the subsequent quantitative research (focused...

The factors influencing consumers’ behaviour on wine consumption in the Turkish wine market

Abstract: Purpose – The purpose of this study is to analyse the factors influencing wine consumption in Turkey. Since a wine consumption culture is a recent development in Turkey, there is a need to examine consumer factors that affect wine consumption to better understand consumers’ buying processes.Design/methodology/approach – This study presents the findings of a field study conducted in Izmir which has the highest alcohol consumption per capita in Turkey. A sample of 431 wine consumers is used to identify the factors influencing consumers’ behaviour on wine consumption.Findings – The wine market has been blooming in Turkey in recent years. Wine consumption is influenced by cultural, demographic, consumer attitudes, consumption habits as well as other different factors. A number of socio‐economic and demographic consumer characteristics indicate that these factors influence wine consumption and consumers’ preferences. The study offers important insights into the characteristics of wine consumption and the targe...

Is there new evidence to show that product and international diversification influence SMEs' performance?

Abstract: Purpose – The purpose of this paper is to examine the joint effect of product and international diversification strategies on the performance of small and medium enterprises (SMEs) in Spain.Design/methodology/approach – The authors rely on a panel data of small and medium Spanish manufacturing enterprises over the period 1993‐2006, collected from the Spanish Survey of Business Strategies.Findings – The evidence reveals the existence of a negative relationship between geographic expansion and profitability. Likewise, the adoption of both product and international diversification is not associated with higher performance.Research limitations/implications – A promising avenue for future research is the analysis of firms located in different countries (for example, emerging economies), or the study of this issue considering factors such as the ownership structure (family firms, the role of the state and banks, etc.).Practical implications – The authors' analysis underlines the fact that the distinctive partic...

Internet financial reporting in Turkey

Abstract: Purpose – This paper aims to investigate internet financial reporting following major regulatory changes in Turkey. Although these regulations only cover publicly listed firms, large unlisted firms also use the internet to disseminate financial information.Design/methodology/approach – The study surveys the top 500 Turkish industrial firms on the “Istanbul Chamber of Industry 500” (ICI500) to determine whether the regulatory changes led to significant changes in their financial reporting on the internet.Findings – The percentage of firms providing financial disclosures on the internet doubled from 2003 to 2010. However, problems remain, including the extremely low level of voluntary disclosures (six percent of firms) and the failure of listed firms to provide information other than mandatory disclosures such as financial summaries and ratios. The study finds increases in voluntary disclosures of share price performance and management reports, providing support for the signaling theory.Originality/value – ...

Voluntary web‐based disclosures by Moroccan and Tunisian companies

Abstract: Purpose – Company disclosures on the web are a useful tool to promote the efficiency of financial markets. Moreover, they can be a source of strategic financial communication. The objective of the study reported in this paper is to make an inventory of the information published on the web sites of companies listed in the Moroccan and Tunisian stock exchanges, and to compare the practices of those companies with those of their European counterparts. The study also seeks to identify the determinants of these disclosures.Design/methodology/approach – The study develops a composite scale to measure the quality of web site disclosures. This scale is used to score the web sites of the top 91 companies listed on the Casablanca and Tunis stock exchanges in 2007. The quality of those web sites is compared with the quality of some web sites of European companies. A number of hypotheses relating to the determinants of web site quality are then tested using linear modeling techniques.Findings – Two thirds of the firm...

The relationship between pay contingency and types of perceived support

Abstract: Purpose – This study aimed to test how the effects of types of support on employees’ performance and commitment were moderated by structure of pay, namely by the degree to which pay was contingent on level of performance. The constructs of Perceived Organizational Support (POS) and Perceived Supervisor Support (PSS) were decomposed into two types, according to whether the support was directed at doing the task or at the welfare of the person. The study proceeded to examine how each type influenced performance and commitment under different pay structures.Methodology – The survey was conducted in Israel. A self‐report questionnaire was administered to a sample of managers and professionals. The questionnaire consisted of new scales for person‐focused and task‐focused support along with measures of performance, commitment and structure of pay. The main interaction predictions were tested with regression analyses.Findings – Pay contingency interacted with task‐focused POS and with person‐focused PSS in affec...

Forecasting corporate bankruptcy: empirical evidence on Italian data

Abstract: Purpose – The aim of the paper is to investigate several aspects of bankruptcy prediction within both theoretical and empirical frameworks. In particular, it has focused on the comparison of different techniques used to forecast failure through a balanced sample of companies within a geographical area (the Campania region) located in the south of Italy.Methodology – Business failure has been one of the most investigated topics within corporate finance and the empirical approach to bankruptcy prediction has recently gained further attention from financial institutions. The aim of corporate failure prediction is to have a methodological approach which discriminates firms with a high probability of future failure from those which are considered to be healthy. Starting from the seminal paper of Altman (1968), many other significant contributions have been subsequently made to this field (Ravi Kumar and Ravi, 2007). This paper's approach is to compare different statistical techniques based on the analysis of f...

Assessing the consumer's choice of purchase channel in the tourism sector: Evidence from Spain

Abstract: Purpose – The purpose of this paper is to analyse the most important economic factors that determine choice of distribution channel when booking a tourism service. The theoretical framework applied to meet this objective is agency theory, as it provides insight into the effects arising from problems such as information asymmetries and opportunism.Design/methodology/approach – The analysis of a sample composed of 805 tourists who made their reservation through either the internet or traditional channels has provided interesting conclusions, allowing different hypotheses to be contrasted using a structural equation analysis.Findings – This study has shown how the main source of uncertainty in the stages leading up to the choice of purchase channel is due to a lack of trust towards the internet. In this regard, the signals emitted by firms in order to mitigate information asymmetries contribute to generating trust towards the selected firm; however, they neither reduce the risk differential existing between ...

Connecting the Mediterranean system of innovation : a functional perspective

Abstract: PurposeThe purpose of this paper is to provide a first exploratory overview of the Mediterranean system of innovation and present the results of interactive work with 25 innovation delegates from n ...

Bank branch‐level DEA to assess overall efficiency

Abstract: Purpose – The purpose of the research presented in this paper is to provide a new approach related to the definition of variables in disaggregating branch expenses and income for evaluating the overall technical efficiency of bank branches by means of data envelopment analysis (DEA).Design/methodology/approach – By applying an input minimization DEA model to a sample of bank branches of a large commercial bank in Greece, this study identifies pure technical and scale inefficiencies, efficiency and size relationship and returns to scale patterns. Moreover, it explores target setting strategies for inefficient branches.Findings – Results indicate that branch size has an important influence on efficiency and that superior insights can be obtained by pure technical efficiency (PTE) and scale efficiency (SE), as constituent components of global technical efficiency (TE) than the information obtained from the analysis based on selected key performance indicators (KPIs) used by the bank under study.Research limi...

Promotional channels of FMCG firms and tourism: A standardisation/adaptation perspective

Abstract: Purpose – The purpose of this paper is to shed more light on the influence of a tourism‐oriented environment on the promotional channel strategies of fast‐moving consumer goods (FMCG) firms.Design/methodology/approach – The study utilises an exploratory, qualitative research design among 14 case studies of FMCG firms operating in the tourism‐oriented environment of Greece.Findings – Findings show that most firms utilise adapted promotional channels due to the influence of structural characteristics of the tourism industry and tourists' modes of behavior.Research limitations/implications – The outcomes of this qualitative study are limited to the context that is investigated and thus, future researchers are encouraged to investigate similar contexts with the goal of generalising findings.Practical implications – Findings suggest that firms ought to appreciate the contextual idiosyncrasies of Euro‐Mediterranean countries (as a result of international tourism) and thus, tailor their programs to these idiosyn...

Bank bailouts: lessons to learn when patience is a virtue

Abstract: Purpose – Most recent bank bailouts, from a financial and economic perspective, turn political. This paper seeks to frame ten effective implications/lessons of the most recent bank bailouts of 2007‐2009 in the Western economy model when analyzing actual shareholders' value retrenchment or growth opportunities.Design/methodology/approach – The paper uses a literature review and a re‐conceptualized framework of event study methodology, secondary data analysis of qualitative and quantitative information.Findings – Recent bank bailouts relate to: global bailout interconnections, economic downturn and liquidity boost, abnormal returns, efficiency recovery, evasion of social costs, new opportunities for M&A, new risk management applications, opportunistic investors and eventually patience. Most important, findings recommend shareholders to grasp opportunities for bargains from bailout banks as well as to harvest their existing investments. At the same time, economic education and control become another importan...

Test of a service profit chain model in the Greek banking sector

Abstract: Purpose – This exploratory research seeks to examine the relationship between employee commitment and financial performance in the Greek retail banking sector.Design/methodology/approach – A total of 331 questionnaires were completed by bank employees. Data were analyzed via confirmatory factor analysis, reliability analysis, correlation and mediation analysis.Findings – Contrary to expectations, both employee attitudes (affective commitment) and perceptions (morale climate) were unrelated to business financial performance.Research limitations/implications – Because of the chosen research approach, results may lack generalizability. Therefore, researchers are encouraged to test the reported findings further.Practical implications – Current findings might enhance understanding of the relationship between affective organizational commitment and financial performance in Greek retail banking.Originality/value – The paper extends the existing service profit chain research, offering insights into employee commi...

Manipulating an IRB model: considerations about the Basel II framework

Abstract: Purpose – The purpose of this paper is to contribute to the debate on the current economic crisis and to highlight the importance of the counter‐party credit risk, which was surprisingly neglected by the Basel Committee on Banking Supervision in its proposed enhancements to the Basel II framework. The paper supports the proposition that there is an incentive for synergy between bank management, corporate management and auditors as long as all these parties' remuneration schemes are based on the same principles.Design/methodology/approach – In this paper an advanced IRB corporate credit‐rating system is constructed in accordance with the Basel II framework and the current literature. The impact of common creative accounting and banking practices on the manipulation of that system is explored.Findings – The paper shows how creative accounting and banking practices can be used in manipulating an advanced IRB corporate credit‐rating system, and thus presenting a high‐risk corporation as a highly attractive (l...

The role of portfolio diversification in the hotel industry: Evidence from the Italian market

Abstract: Purpose – The purpose of this paper is to study whether geographic and sector diversification allow for a significant reduction in the risk exposure of a portfolio of hotel investments in one of the major tourist markets, the Italian market.Design/methodology/approach – This paper evaluates the benefits related to a Markowitz diversification approach for the construction of a specialised portfolio in the hotel real estate market. The portfolio analysis considers the degree of efficiency of each portfolio, the type of diversification adopted by a more efficient portfolio, the persistence of results over time and the impact of diversification constraints.Findings – The results demonstrate that, while standard geographic and sector diversification allow for good results, the more efficient portfolios are more concentrated. The trade‐off is worse if some concentration constraints are established, but the portfolios identified are characterised by higher performance persistence.Research limitations/implication...

Assessing and measuring sales culture within commercial banks in Jordan

Abstract: Purpose – This study aims to assess and measure the sales culture within the commercial banks in Jordan, and to provide top management of these banks with the database which may be required for improving the banks' selling effectiveness.Design/methodology/approach – The study has been conducted on a convenience sample of 1,000 employees selected from those of all the commercial banks operating in Jordan. Sales culture was measured by using the Sales Culture Index (SCI), consisting of 65 statements. The data required for this study were collected by a self‐structured questionnaire.Findings – The findings of the study indicate that the overall employees' perception of sales culture in the surveyed banks is moderate. However, the sales culture in the non‐Jordanian banks was stronger than that in the Jordanian banks.Research limitations/implications – As is the case in any study, some limitations relevant to this study cannot be abandoned. For instance, the findings of this study are based on self‐report perc...

Informational intermediation: a tool to assess SMEs’ ability to access financing

Abstract: Purpose – This paper aims to highlight a typology of small firms which, beyond the criteria of size or industrial field, makes it possible to distinguish the quality of firms according to their internal organisation and the type of market on which they act with the objective of reducing the capital gap and credit rationing.Design/methodology/approach – Based on a global approach using qualitative and quantitative data.Findings – Still at the experimental stage, this method of assessing the ability of small firms to access financing from their various external partners could, if widely used, offer a means of increasing the transparency of small businesses and thereby enhancing their positioning and their chances of survival.Research limitations/implications – The research is at an early stage and needs to be validated empirically.Originality/value – While this paper describes a method of assessing an economic policy intended to benefit SMEs in France, its main purpose is to show how such a tool can help to...

Financial market governance and the Euro‐Mediterranean Partnership

Abstract: – In recent years, Mediterranean Partner countries (MPCs) have been ambitious about reforming their banking and financial systems. Former state‐owned banks have been privatised, and restrictions for international capital flows have been lowered to accelerate investment activities and spur regional economic growth. The purpose of this paper is to evaluate these latest developments against the backdrop of the state‐of‐the‐art literature and derive implications for a reformed institutional setting for sound financial market governance in the Mediterranean region., – Building on recent empirical literature on the relationship between financial development, financial governance, and economic growth, this paper empirically assesses the validity of the so‐called finance‐growth nexus for Mediterranean Partner countries., – The findings indicate that the current institutional set‐up renders an efficient allocation of savings impossible, and thus represents a strong binding constraint on economic growth. In this regard, it is found that adverse financial governance practices have substantially contributed to this outcome., – This paper argues for upgrading domestic regulatory frameworks before continuing a sequential integration and liberalisation process., – It is thought that this attempt is unique in explicitly formulating a comprehensive role for the Euro‐Mediterranean Partnership (EMP) in assisting MPCs on financial governance issues. In this respect, it identifies prevailing incentive schemes for regional actors and opportunities for the EU to actively support the implementation of a reform agenda for financial institutions in the EMP framework.

SWFs and the global economy: the impact of the Gulf oil producers

Abstract: Purpose – The purpose of this paper is to analyze the role of sovereign wealth funds (SWFs) in sustaining global economies. The subject of SWFs has increasingly garnered the concerns of policymakers, market players and scholars for two main reasons: First, these funds represent the largest concentration of capital that the world has ever known, with the Arabian Gulf SWFs becoming increasingly important global players, especially during the most recent financial crises. Second, there is the dominant role of national governments in the management of these colossal funds. This paper assesses the contrasting perspectives on SWFs and analyzes the role they can play in sustaining the global economy by engaging in foreign direct investment.Design/methodology/approach – Both descriptive analysis and comparative analysis are used.Findings – SWFs are large and tend to be long‐term investors and have characteristics that are compatible with foreign direct investment (FDI). There is a role for them in sustaining the ...