Showing papers in "Managing global transitions in 2010"

Development, validity and reliability of perceived service quality in retail banking and its relationship with perceived value and customer satisfaction

Abstract: Microfinance is often hailed both as a tool for fighting poverty and as a tool for post-conflict reconciliation. This paper explores the use of microfinance in post-civil war Bosnia and Herzegovina, assessing its results in terms of both goals. As it combined high unemployment with a highly educated population in an institutionally open context, Bosnia and Herzegovina provides a crucial test of the effect of microfinance. If unambiguous signs of success cannot be found in a case with such favorable conditions, this would raise serious questions about the potential benefits of microfinance. The paper draws together evidence from a series of independent reviews of microfinance in Bosnia and Herzegovina, to assess its impact in terms of economic performance, the economic system, social welfare and post-conflict integration. Based on this case study, microfinance appears a better tool for dealing with poverty than with social integration or institution building.

Board Structure and Corporate Performance

Abstract: This paper attempts to analyze the impact of board structure attributes on their accounting and stock market performance. Our analyses are built on an emerging market, Turkey for the period between 1995 and 2006. We conduct our analyses through binary logistic methodology. Our findings show that, while board ownership does not have any impact on the accounting performance, it has a fairly positive influence on the stock market performance of firms during the crisis period. Similarly, the situation when the CEO of a firm is also the chairman of the board is not found to have any impact on the corporate performance of firms, although its negative impact is present during the crisis period. Moreover, board independence is found to not to have an effect on accounting performance, yet the stock market perceives board independence positively, both in general and in the crisis periods. Finally, board size has a positive impact , both on the accounting and on the stock market performance of firms, yet the impact on the corporate performance reverts to adverse during the crisis period.

Metropolitan Cities under Transition: The Example of Hamburg/Germany

Abstract: In the intermediate and long run, energy prices and hence transportation costs are expected to increase significantly. According to the reasoning of the New Economic Geography this will strengthen the spreading forces and thus affect the economic landscape. Other influencing factors on the regional distribution of economic activity include the general trends of demographic and structural change. In industrialized countries, the former induces an overall reduction of population and labor force, whereas the latter implies an ongoing shift to the tertiary sector and increased specialization. Basically, cities provide better conditions to cope with these challenges than do rural regions. Since the general trends affect all economic spaces similarly, especially cityspecific factors have to be considered in order to derive the impact of rising energy costs on future urban development. With respect to Hamburg, regional peculiarities include the overall importance of the harbor as well as the existing composition of the industry and the service sector. The analysis highlights that rising energy and transportation costs will open up a range of opportunities for the metropolitan region.

Small Firms in a Small Country: Managerial Factors, Internationalization and Performance of Slovenian SMEs

Abstract: International activities of small and medium enterprises (SMEs) constitute an important research area. To understand this phenomenon, researchers employ different theoretical perspectives. Among them, the resource-based theory has been given much attention. In this study three managerial factors: managerial attitude toward internationalization, internationalization knowledge and international experience, are seen as examples of the firm’s intangible assets. The objectives of this study are twofold. First, it aims to examine the significance of the mentioned managerial resources for smes’ internationalization. Second, it verifies the relationship between the level of the firm’s internationalization and performance. The study is based on a sample of highly-internationalized Slovenian companies. According to the findings, managerial attitudes towards internationalization and internationalization knowledge are significantly related to the level of SME internationalization. The statistical analysis also provides support for the relationship between the level of the firm’s internationalization and performance.

Application of bootstrap methods in investigation of size of the Granger causality test for integrated VAR systems

Abstract: This paper examines the size performance of Toda-Yamamoto test for Granger causality in case of trivariate integrated-cointegrated VAR systems and relatively small sample size. The standard asymptotic distribution theory and the residual-based bootstrap approach are applied. A variety of types of distribution of error term is considered. The impact of misspecification of initial parameters as well as the influence of increase of sample size and number of bootstrap replications on size performance of Toda-Yamamoto test statistics is also examined. The results of conducted simulation study confirm that standard asymptotic distribution theory may often cause significant over-rejection. Application of bootstrap methods usually leads to improvement of size performance of Toda-Yamamoto test. However, in some cases considered bootstrap method also leads to serious size distortion and performs worse than the traditional approach based on distribution.

The Impact of Firm Size on Dividend Behaviour: A Study With Reference to Corporate Firms across Industries in India

Abstract: The objective of this paper is to examine the association between the Corporate Leverage (CL) and the Dividend Policy (DP) of firms across industries in India in respect of Size of Corporate Firms. The investigation is conducted on a panel sample of 73 firms across industries [Cement, Chemical and Fertilizer, it, Oil and Gas, Pharmaceutical, Shipping, and Textiles], which listed their shares in National Stock Exchange (NSE) in India for the period 1996–2007. The impacts of Capital Structure (CS) variables (leverage) on DP measures – dividend payout (Net dividend paid/net income) in the presence of some basic fundamental variables are considered to be the determinants of DP, using the Multiple Regression Technique (OLS method). The results of the cross-sectional ols Model for the selected sample firms under various sectors show that there is a significant effect of selected independent variables. Therefore, this study proves that the DP of Small Size, Medium Size, Large Size, and Overall Corporate Firms across industries in India is dependent on the level of debt in CS.

Assessing microfinance: The Bosnia and Herzegovina case

Abstract: Microfinance is often hailed both as a tool for fighting poverty and as a tool for post-conflict reconciliation. This paper explores the use of microfinance in post-civil war Bosnia and Herzegovina, assessing its results in terms of both goals. As it combined high unemployment with a highly educated population in an institutionally open context, Bosnia and Herzegovina provides a crucial test of the effect of microfinance. If unambiguous signs of success cannot be found in a case with such favorable conditions, this would raise serious questions about the potential benefits of microfinance. The paper draws together evidence from a series of independent reviews of microfinance in Bosnia and Herzegovina, to assess its impact in terms of economic performance, the economic system, social welfare and post-conflict integration. Based on this case study, microfinance appears a better tool for dealing with poverty than with social integration or institution building.

Valuation of Slovene publicly traded companies with a valuation model based on expected earnings and growth opportunities

Abstract: The article sheds light on valuating Slovene publicly traded companies. The research aim is to solve the problems about company valuation in an emerging market, such as the Slovene market certainly is. The critical point is how to evaluate the variables to put in the valuation model. The chosen methodology deals with these problems, and minimizes the analyst’s subjective judgment and the bias the analyst puts into the valuation. Twenty Slovene publicly traded companies are valuated with a valuation model based on expected earnings and growth opportunities. The research provides the assessment and the usefulness of valuation with the model and the conclusions from the valuation results.

Evolving role and nature of workplace leaders and diversity: A theoretical and empirical approach

Abstract: Blumer (1962) regarded the ‘many possibilities of uncertainty as inherent to the process of joint action.’ Joint action reflects the efforts of participants to work out the line of action in light of what they observe each other doing. Leadership appears to be approached from two fundamental perspectives: an organisational perspective (the influence that is exercised to change the direction of the organisation), and an individual task perspective (the influence that is directed at changing the work behaviour of an individual). In this article, it is suggested that the symbolic interaction of perspective integrates the two fundamental perspectives in that both perspectives require meaningful, reflexive integration and meaning, group membership, organisational role and experience. The evolving role of leaders to attract, retain and connect with a diverse workforce in a changing environment gives rise to interactive leadership competency requirements. This article suggests that managing diversity requires business leaders to adopt an approach to diversity management that is sensitive not only to race and ethnic differences, but also to the background and values of all individuals at work. The empirical study was done and four hundred and forty (440) leadership styles were measured in eleven (11) organisations. The study used the Hall and Hawker (1988) inventory leadership styles and a diversity questionnaire to measure diversity management experience.

The Service University

Abstract: The traditional western research university’s academic freedom is increasingly challenged by external economical interests. This has consequences for what has been regarded as a key quality dimension of a university. The balance between institutional autonomy, academic freedom and accountability to external stakeholders is claimed to be changing in disfavour of the academic freedom kept up by the professoriate. From its stakeholders the institution is expected to serve politicians, state bureaucracy and market in a qualitatively different way from before, primarily from economic motives. Is academic freedom at all possible in an institution predominantly financed by producing services to meet economic criteria? A likely answer would be no, and another tentative, answer could be that yes, it is possible, due to the strong academic legacy imbedded in western academics’ identity - and to the global communicative room of free actions made possible by the new information technology.

Understanding ISO’s 9001 Benefits and Research through an Operations Strategy Framework

Abstract: Despite the success that the ISO 9001 standard has achieved it has been extensively criticized and empirical studies have shown controversial results about its impact on performance. Our conceptual study was motivated by the mentioned dilemma about ISO 9001 effectiveness, and the controversy that this dilemma raises in literature on the one hand and on the other by almost exponential growth of certifications among companies world-wide. It is our opinion that in order to understand results related to ISO 9001 implementation we need to take a step back from empirical research and instead try to analyze iso conceptually by taking into account also the results of empirical studies implemented in the past. The purpose of the paper is to clarify the purpose of implementation of ISO 9001 and, in relation to this purpose, to analyze different possible benefits resulting from its implementation. In order to achieve this purpose our goal is to analyze the criticism of the old ISO 9001:1994 by using a specific framework of the operations strategy theory. The paper emphasises that in accordance with its conformance purpose, ISO 9001 is successful in building conformance capability and that by using ISO 9001 practices companies can also benefit in relation to production economics through improved process efficiency and to other competitive capabilities. It also emphasises that empirical results expected from ISO 9001 implementation are strategy contingent and therefore this should be taken into account in designing empirical studies about iso’s benefits.

Change Management in Adult Educational Organizations: A Slovenian Case Study

Abstract: Successful implementing andmanaging of change is urgently necessary for each adult educational organization. During the process, leading of the staff is becoming a key condition and the most significant factor. Beside certain personal traits of the leader, change management demands also certain leadership knowledges, skills, versatilities and behaviour which may even border on changing the organizational culture. The paper finds the significance of certain values and of organizational climate and above all the significance of leadership style which a leader will adjust to the staff and to the circumstances. The author presents a multiple qualitative case study of managing change in three adult educational organizations. The paper finds that factors of successful leading of change exist which represent an adequate approach to leading the staff during the introduction of changes in educational organizations. Its originality/value is in providing information on the important relationship between culture, leadership styles and leader’s behaviour as preconditions for successful implementing and managing of strategic change.

Government Debt and the Long-Term Interest Rate: Application of an Extended Open-Economy Loanable Funds Model to Poland

Abstract: This paper examines the behavior of the long-term interest rate in Poland based on a sample during 2001.Q1–2009.Q1. Both the demand for and supply of loanable funds are considered. Extending the openeconomy loanable funds model, this paper finds thatmore government debt as a percent of gdp leads to a higher long-term interest rate in Poland and that a higher real Treasury bill rate, more percent change in real GDP, a higher expected inflation rate, a higher world long-term interest rate, and depreciation of the zloty would increase the long-term interest rate in Poland. In the standard open-economy loanable funds model including the net capital inflow, the coefficient of the net capital inflow is positive and insignificant at the 10% level. Hence, the incorporation of the world interest rate and the nominal effective exchange rate in the model may better capture the behavior of the long-term interest rate in Poland.

Human capital constraints in South Africa: a firm–level analysis

Abstract: This paper examines human capital constraints in the South African economy, and the austerity of these constraints on firms in the country The two key human capital constraints explored in this article are the inadequately educated workforce and labour market distortions Regression analysis was applied to examine determinants of increased labour productivity in manufacturing firms Education and labour market distortions were found to have a varying influence on output per worker Principal Component Analysis (pca) of the explanatory variables achieved similar results This study found that the highest percentage of the total variance is explained by latent variables that incorporate education, training, compensation, region and Sector Education Training Authority (seta) support and effectiveness

The Relationship between the Quality of the Idea and the Strategic Potential of a New Venture: A Longitudinal Study of Five Irish Campus Companies

Abstract: This paper explores the relationship between the quality of the idea and the strategic potential of five high potential UCD campus companies over a seven-year period. Based on previous research, a framework and model was created and employed as a base for company analysis and comparisons. The findings of this longitudinal study support the existence of a dynamic relationship between the quality of idea and the strategic potential, of new ventures. Over time, constant changing and exploitation of the quality of the idea by the entrepreneur to create systematic differentiation resulted in dramatic changes to the strategic potential of the business.

Achieving Increased Value for Customers Through Mutual Understanding Between Business and Information System Communities

Abstract: Business strategy and information systems (IS) alignment is a longstanding issue in IS management. Information technology IT innovation, regulated by a deep understanding of value creation for customers, allows for profound changes in how companies operate and how economic exchanges are structured. To be able to achieve superior performance, companies must build business models that incorporate the competitive features found in their IT. Realizing such innovation requires a common language between people from business and IT departments. This article discusses essential elements of the continuous IT innovation process, including generating ideas, developing concepts, and realizing concepts for IT innovation. System projects jointly implemented by business departments and it departments proved to be more successful, because only this approach ensured full consideration of what is important from a company-wide perspective.

Quo Vadis, Slovenia? Between Framework Conditions and Internal Capabilities

Abstract: We consider the new EU member states as semi-peripheral countries standing at the development crossroads. We emphasize the sociocultural factors of development, present a model for bringing together several cultural and social influences, and test its validity by applying a fuzzy-set methodology, a rather novel approach in social sciences. We augment our analysis of internal socio-cultural factors by considering the likely changes in the external framework conditions. Focusing on demography, technology, and global economic and political structures, we outline possible scenarios for European development that will certainly affect the chances of individual countries. As our contribution, we discuss the interplay between such framework conditions and internal development capabilities and draw some implication for the case of Slovenia.

Iranian Angle to Non-Audit Services: Some Empirical Evidence

Abstract: The purpose of this paper is to show different Iranian accountants’ as well shareholders’ ideas on Non-audit services and their effects on audit independence in Iran. In other words, in this paper the authors have attempted to deal with this question: does providing non-audit services by an Iranian auditor impair audit independence? And in order to gather usable data a suitable questionnaire was designed and developed. The results of this study show that the participants strongly believe that non-audit services may impair audit independence. It is interesting to note that, although the auditors offer to clients non-audit services, they believe that offering such services leads to audit independence being questionable. Further, the result reveals that literate participants moderately agree that NAS has a negative effect on audit independence, however illiterate participants strongly agree that NAS has a negative affect on audit independence. This paper is the first paper which includes two groups of participants: the first group is auditors in general, or we can call them academiciana with pretensions to having auditing literacy and the second group is non- academician, including stakeholders who may not have auditing literacy skills. This may useful for future studies regarding the non-audit service and its effect on audit independence.

Influences of implementing the learning organisation on companies` financial and non-financial performances

Abstract: The learning organisation (LO) concept as one of the numerous management tools available has been significantly gaining in popularity around the globe. Yet few models have been implemented to assess the lo’s influences on companies’ non-financial and financial performances. Therefore, at the usp Institute a Learning Organisation Assessing Model (LOAM) was developed and implemented over a period of five years. The empirical research presented in this article reveals positive non-financial and financial effects on the performances of companies with a more developed LO concept according to the LOAM. Research findings reveal the critical success factors in the implementation of the LO and provide tangible advice to management in helping them to achieve the best results possible when applying the LO concept.

Application of Bootstrap Methods in Investigation of Size of the Granger Causality Test for Integrated VAR Systems

Abstract: This paper examines the size performance of the Toda-Yamamoto test for Granger causality in the case of trivariate integrated and cointegrated VAR systems. The standard asymptotic distribution theory and the residual-based bootstrap approach are applied. A variety of types of distribution of error term is considered. The impact of misspecification of initial parameters as well as the influence of an increase in sample size and number of bootstrap replications on size performance of Toda-Yamamoto test statistics is also examined. The results of the conducted simulation study confirm that standard asymptotic distribution theory may often cause significant over-rejection. Application of bootstrap methods usually leads to improvement of size performance of the Toda-Yamamoto test. However, in some cases the considered bootstrap method also leads to serious size distortion and performs worse than the traditional approach based on ÷2 distribution.

Evolving Role and Nature of Workplace Leaders and Diversity: A Theoretical and Empirical Approach

Abstract: This paper describes the development of the organisational gap model for hotel management. It descries a management measurement instrument that helps to assess the 3 organizational service gaps that are preconditions for delivering service quality (the positioning gap, specification gap and evaluation gap). The described theoretical model was constructed based upon the four organisational gaps of the Parasuraman et al. service quality model, then redefined and reassessed. Data were gathered on the sample of 500 questionnaires from the Slovenian hotel industry and analysed with exploratory factor analysis and structural equation modelling. The results can be useful guidelines for hotel management on how to improve the service delivery process.