Showing papers in "The Engineering Economics in 2018"

selection of carpenter manufacturer using fuzzy EDAS method

Abstract: Making a decision in everyday life always comes with uncertainty and responsibility. To reduce the risk to a minumum and in order to make a right decision a person can use methods of multicriteria analysis in combination in fuzzy logic. A married couple, representing decision makers in this case study, have purchased an apartment and it needs to be completely refurbished including outside carpentry. Aim of this study is to select the most suitable manufacturer of PVC carpentry for apartment refurbishing. A total pool of 14 quantitative and qualitative criteria is used as a base for selection of the most suitable of seven available manufacturers. For this case study we will use one of newer methods of multicriteria analysis of fuzzy Evaluation Based on Distance from Average Solution (fuzzy EDAS) method. Having reached the results, an analysis of sensitivity has been conducted showing stability of results where manufacturer number 4 represents an optimal solution in 13 experimental sets out of 14 total.DOI: http://dx.doi.org/10.5755/j01.ee.29.3.16818

The Impact of Enterprise Risk Management on Firm Value: Empirical Evidence from Romanian Non-financial Firms

Abstract: Enterprise risk management (ERM) represents a significant change in the way firms manage risks. In the last years an increasing number of non-financial firms from emerging economies started to implement a holistic framework for risk management. The aim of the paper is to investigate the effects of ERM implementation on the firm value in different economic environments. Using a sample of Romanian listed firms for the pre-crisis period (2001-2007), we found that ERM adoption is associated with higher firm values, indicated by a Tobin’s Q premium of roughly 46.5%. We also found a positive and statistically significant relationship between size, leverage, on one hand, and firm value, on the other hand. Extending our sample over the financial crisis period (2001-2011), we found that ERM does not affect firm value in any significant manner. Our results lend support for the recent pressure on firms to adopt more integrated and comprehensive risk management systems.DOI: http://dx.doi.org/10.5755/j01.ee.29.2.16426

The mediating role of firm innovativeness in the relationship between knowledge sharing and customer satisfaction in SMEs

Abstract: Customer satisfaction, innovativeness and knowledge sharing have fundamental meaning for contemporary managers and draw the attention of both researchers and practitioners. However, the relationships between these constructs are less than evident in prior empirical research focused on small and medium-sized enterprises (SMEs). To fulfil the research gap, this study integrates separate research streams and empirically tests the relationships between these constructs in Polish SMEs. Based on the sample of 120 firms and using PLS-PM technique, it was found that knowledge sharing and firm innovativeness are significant and positively related to customer satisfaction. Knowledge sharing and a firm’s innovativeness predict 29.9% of the variability of customer satisfaction indicators. Moreover, firm innovativeness partially mediates the relationships between knowledge sharing and customer satisfaction. This finding supports suggestion that effective knowledge sharing improves a firm’s ability to introduce new or improved products and services, which in turn increase customer satisfaction. Results of this study provide empirical evidence for the importance of knowledge sharing for firm innovativeness and customer satisfaction. The focus on SMEs in a single country, subjective nature of the data and cross-sectional design of the research are the main limitations of this study.DOI: http://dx.doi.org/10.5755/j01.ee.29.1.19027

Can We Determine Debt To Equity Levels In Non-Profit Organisations? Answer Based On Polish Case

Abstract: Capital structure is an indicator that testifies about the level of financial risk. Nonprofit organisations are an essential part of general social policy in the Polish economy. They realise important aims in healthcare, education and many other socially important areas. Considering efficiency of nonprofit entities should be remembered that from the donor perspective, is important the way the managing team uses resources of the nonprofit organisation and if it is used most effectively. The nonprofit organisation efficiency should be considered in the context of the risk. The one from the most important way to be out of business is the debt to equity relation. In paper are considered relations between debt and efficiency. That relation is also illustrated for Polish nonprofit entities data. Proposal of the paper includes model, which helps to find the optimal level of debt for Polish nonprofit organisations conditions. Novelty of that model is based on full costs of debt financing nonprofit entities in the context of donors expectations, which in Polish social and economic environment means that costs that are not directly linked with realisation of main aim of the social entity, cannot be higher hat 10% of collected money sources. DOI: http://dx.doi.org/10.5755/j01.ee.29.5.19666

Gender differences in financial behaviours

Abstract: The assessment of the impact of gender on financial decision-making was based on a representative survey ‘Social Diagnosis 2015’ conducted on a sample of over 34 thousand Polish citizens. When realising the research objective, a logistic regression model was applied – both with and without interaction effects. The study has shown that the financial behaviours of men and women differ significantly. Men more frequently use the products and services available on the financial market such as, for instance, a debit card, or invest funds in shares or bonds. They are also more willing to take risks. However, as has been shown in the study, gender is not the only important variable influencing financial decisions. Equally important are age, social and professional status, education, or place of residence. This indicates that analysing behaviours on the financial market based solely on one variable may not be appropriate.DOI: http://dx.doi.org/10.5755/j01.ee.29.1.16400

The Impact Made on Project Portfolio Optimisation by the Selection of Various Risk Measures

Abstract: In this study, the effect of selecting an appropriate risk measure and the impact of this choice on the efficient frontier of the organization’s project portfolio, has been studied. Proper choice of firm’s project portfolio has a great impact on organizational success. Each portfolio manager selects the best projects with different criteria, and consistent with firm’s strategic objectives. We have selected the best projects of the organization, using Markowitz efficient frontier method. The choice of proper measures is influential in making this decision and can change the organization’s portfolio. For doing this, the standard deviation is applied and the relevant optimization have been done. Then, in order to differentiate favorable and unfavorable opportunities, semi-standard deviation has also been applied. Afterwards, Value at Risk and Expected Shortfall are applied as the appropriate risk measures, to have a better estimate of the tail risks. With all of these risk measures the best possible projects were selected. Managers should select the appropriate risk measures according to their objectives, estimation of their projects’ distribution, and characteristic of the projects. In this research, the best measures consistent with construction projects and the effect of changes in these measures have been studied.DOI: http://dx.doi.org/10.5755/j01.ee.29.2.17405

The Effect of Higher Education on Entrepreneurial Activities and Starting Up Successful Businesses

Abstract: The paper deals with the potential relationship between higher education and entrepreneurial activities. Universities and other higher education institutions could be seen as boosting entrepreneurship in the region. University graduates could be more often involved in starting up a new business and the university itself could commercialize their innovations by creating academic spin-off companies. The paper aims to examine whether university graduates are better placed for establishing a successful business compared to less educated people. Based on the data for 40 EU and non-EU countries, retrieved from a Eurobarometer survey, we conducted probit and IV probit regressions. These have tested the assumed relationship between higher education and entrepreneurial activities. Our results strongly suggest that higher education can often be very beneficial for starting up a new business and this seems to be one of the factors determining the success of new business. Furthermore, those respondents who attended courses related to entrepreneurship appear to be more active in starting-up a business and this seems to be also positively correlated with the company's future success. Interestingly, university graduates from Brazil, Portugal and India in particular, tend to appreciate the role that their universities have played in acquiring the skills to enable them to run a business. DOI: http://dx.doi.org/10.5755/j01.ee.29.2.19069

Communicating CSR in High Profile Industries: Case Study of Czech Chemical Industry

Abstract: The paper deals with the issue of web communication of Corporate Social Responsibility (CSR) activities by companies of high profile industries, specifically by the chemical industry enterprises operating in the Czech Republic. Based on the content analysis of the websites of companies in the Association of Chemical Industry of the Czech Republic, employing 60 percent of workers and generating more than 70 percent of the production of this industry, it analyzes and evaluates the level of CSR communication of these companies in economic, social, environmental, ethical and philanthropic areas. The study shows that the level of communication of CSR activities of chemical companies in the Czech Republic is low and corresponds to the low level of CSR communication in this country. Chemical industry companies mostly communicate activities falling within the sphere of economic and environmental responsibility, completely neglecting activities of ethical responsibility. In all areas of CSR, large corporations communicate a larger range of activities than small and medium enterprises, with no significant difference in communication between national and foreign companies. Thus, it is necessary to adopt the set of measures proposed in the paper, both at the governmental level and at the level of individual enterprises.DOI: http://dx.doi.org/10.5755/j01.ee.29.4.19199

Flexible Work Arrangements from Generation and Gender Perspectives: Evidence from Lithuania

Abstract: The demand for employee-oriented and individualized work arrangements and practices those permit temporal and spatial flexibility in work processes and help to fit changing personal needs and environmental conditions is constantly increasing. A growing number of private companies and public organizations are adopting flexible work arrangements to help employees balance their work–family demands and companies cope with variations in demand, reduce expenses, and be more attractive for employees. Employees representing different age and sex groups have different expectations and priorities towards work, and, likely, they evaluate and respond to flexible work practices also differently. The paper investigates how different genders and generations evaluate and respond to flexibility at work. Empirical research was conducted in Lithuania. Data were collected from a sample of 316 employees (195 women and 121 men). Research revealed a high expression of flexible work arrangements in Lithuanian organizations. Flexible work schedule and flexible work load are dominating in the organizations. Representatives of generations B and Y are most satisfied in the forms of flexible work arrangements applied in their organizations. Hypothesis that women tend to work flexibly more than men was proved partially during the research. Hypothesis that work flexibility in aspect of time and load is more attractive to respondents than flexibility in aspect of working place was totally proved.DOI: http://dx.doi.org/10.5755/j01.ee.29.1.19247

The Effect of Customer Equity Drivers on Word-of-Mouth Behavior with Mediating Role of Customer Loyalty and Purchase Intention

Abstract: The uncertain stand in terms of product and service quality invites customers to get the advantage of other customers’ experiences in order to make a purchase decision. It has been discussed that word-of-mouth (WOM) influences consumer purchase behavior and it could create a robust tie like relatives and could also tie as close friends, acquaintances, and strangers. This paper intends to define the concepts of WOM and customer equity and study the terminology of current purchase intention, customer loyalty and correlates to consumer decision making. The data was collected utilizing self-administrated questionnaires. The results are obtained using Smart PLS 2.0, then using bootstrap algorithm the t-statistics are analyzed. The results indicate that customer equity drivers increase the customer loyalty and consequently ends in WOM by the customers. Despite the literature which has investigated the influence of customer equity drivers on the loyalty and purchase intention of the customers, this study contributes the analysis of drivers on WOM. Also, it reveals that if a firm invests on the customer equity drivers, the result will be loyalty and accordingly, the easiest way of advertisement that would be WOM. This study only focuses on a unique industry that can impact the generalizability of the contexts. Also, it relates only to the positive WOM effects. Future studies could strengthen the literature by taking in negative WOM with a broader population.DOI: http://dx.doi.org/10.5755/j01.ee.29.2.17718

The Assessment of Public-Private Partnership’s Possibilities to Optimize Investments in Public Infrastructure

Abstract: This paper deals with an issue of how to evaluate the possibilities provided by the public-private partnership (PPP) to optimize investments in public infrastructure. Literature analysis discloses this process being complex in nature, since it includes a variety of factors needed to be assessed as well as many aspects needed to be considered. Value for money (VfM) assessment is acknowledged as as a main decision-supporting tool to assess whether to implement investment project (IP) as the PPP. However, due to its multifaceted and somewhat controversial nature, this process is challenging and demanding, while results can be very different depending on the approach and assumptions applied, which, in turn, also causes critism and conflict over very PPP. To get reliable results, the rational public sector‘s comparator (PSC) model and the financially viable and affordable PPP model have to be constructed as well as it is required rational comparative tools. However, these aspects are analyzed only fragmentary. There is a lack of studies characterized by systemic and integrated approach to VfM assessment, which, in turn, also determines a lack of solutions, which could allow promoters to complexly solve the issues related to satisfaction of the above-mentioned requirements. To fill the gap, the model of evaluating the possibilities provided by the PPP to optimize investments in public infrastructure has been created. It consists of five stages: 1) preparation of the initial IP; 2) selection of IP for assessment of PPP; 3) PPP structuring and feasibility analysis; 4) VfM assessment of actual bids, and; 5) VfM monitoring, which includes ex-ante, actual and ex-post assessment. The model is tested in the hypothetical case study, where its suitability to solve the issues related to assessment of PPP’s possibilities to optimize investment in public infrastructure in the case of both economic-based and social-based PPPs has been demonstrated.DOI: http://dx.doi.org/10.5755/j01.ee.29.1.19101

Quantitative Assessment of the Dynamics of the Economic Development of Socioeconomic Systems Based on the MDD Method

Abstract: An inherent characteristic of socioeconomic systems (SES) is their development, which is a prerequisite for their existence. Analysing the development, as well as comparing the subjects at a variety of levels (companies, countries, regions, etc.) for other purposes requires the development process to be measured in a quantitative manner. The development process is characterised by its dynamics, which in turn may be measured using two indicators: the intensity of the development; and its consistency over the reference period. The former measurement is represented as a ratio between the development values at the begining of the period and those at the end, while the consistency of the SES economic development will be demonstrated as a ratio of the length of the reference period to the sum of the lengths of the trajectories representing the development over individual time periods. The calculations of the economic development of number of countries carried out through this research have confirmed that the proposed methodology has been named, with certain qualifications, the MDDSS (Measuring of the Dynamic of the Development of a Socioeconomic System).DOI: http://dx.doi.org/10.5755/j01.ee.29.3.20444

The Relationship between Pro-Innovation Factors and the Performance of the European Union Member States and their Regions

Abstract: The strategic priority of the European Union is research, development and innovation, as has been explicitly stated by its representatives since 2000. However, the reality of supporting research and development, innovation and overall economic performance at the threshold of the Fourth Industrial Revolution is different. Europe is significantly losing its global share in wealth creation. Therefore, the objective of the article is to identify relationships between the economic performance and the pro-innovation factors, which represents intensity of research and development at the level of national economy of the EU Member States. At their regional level, NUTS 2, the economic performance is compared with the pro-innovation factors, which are represented on the one hand as the proportion of employed persons with higher education or persons working in the field of science and technology, and on the other hand as the proportion of persons employed in the high-tech sector. Research has shown that the contribution of R&D spending to economic performance is not invariant, that there is probably a certain degree of saturation for which the increase in these expenditures is associated with lower increases in economic performance in the country. The results of the regional analysis can be used to infer the higher importance of persons employed in research and university-educated workers for the country's economic performance compared to the share of those employed in the high-tech sector.DOI: http://dx.doi.org/10.5755/j01.ee.29.4.19703

Evaluation Of Investment Alternatives Using Present Worth Analysis With Simplified Neutrosophic Sets

Abstract: Engineering economics is the method of evaluating and choosing the best alternative among many alternatives according to specified economic criteria. Investment analysis is a branch of engineering economics focuses on choosing the most profitable investment option for a company. Because of the insufficient data in investment analysis, decision makers use fuzzy logic in order to make evaluation easier. This paper develops simplified neutrosophic present worth analysis methodology in order to overcome difficulties in defining membership function. The numerical example illustrates the applications of the developed formula. The result of developed methodology is compared with classical present worth analysis and intuitionistic present worth analysis. The comparison results indicate that investment evaluation problem can be tackled by using the proposed methodology effectively.DOI: http://dx.doi.org/10.5755/j01.ee.29.3.19392

Measuring Regional Resilience to Economic Shocks by Index

Abstract: The article deals with the analysis of theoretical and practical aspects of measuring regional resilience to economic shocks. While the concept of regional resilience to economic shocks is still at the developent stage and the method of measuring regional resilience, which is grounded methodologically and is generally accepted, is still missing, the article presents a unique approach of the authors to the concept of regional resilience to economic shocks, including elaboration of the definition of regional resilience to economic shocks, identification of the regional resilience determining capacities in the Resilio model, specification of their quantitative and qualitative characteristics and introduction of the regional resilience to economic shocks index (Resindicis). A rapid development of globalization processes poses new challenges to the instruments of economic analysis and strategic planning. Different techniques can be used for obtaining the required information on building the regional resilience-enhancing strategies. Each of them has its own advantages and disadvantages. In order to find out the strengths and weaknesses of measuring resilience by Resilio, the newly developed index was empirically tested referring to the data of 10 Lithuanian districts in the period of 2006-2015. The assessment results, as well as the advantages and disadvantages of using Resilio are presented in the article. The newly developed Resindicis, introduced in the article, represents one of the ambitions for having a convenient tool which can be used for economic analysis, strategic planning and justification of solutions aimed at enhancing regional resilience DOI: http://dx.doi.org/10.5755/j01.ee.29.4.18731

Exploratory study of Social CRM use in SMEs

Abstract: Social customer relationship management (social CRM) can enhance performance of the enterprise through effective communication with customers and management of customer information. Whilst several studies have examined social CRM use from perspective of large enterprises, relatively few have examined its use by micro, small and medium sized enterprises (SMEs) which due to unique characteristics differ from large enterprises. The main objective of this paper is to provide a practical perspective on social CRM use in SMEs. This study applies a qualitative research approach by conducting six semi-structured interviews. To determine the antecedents of the intensity of social CRM, the dimensions of the intensity of social CRM use, as well as its impact on customer relationship performance, a content analysis has been utilized. The findings reveal that social CRM use is complex; therefore, we propose a two-dimensional conceptualization of the intensity of social CRM use. Furthermore, this study identifies antecedents, which appears to influence the intensity of social CRM use, including relative advantages, compatibility, top management support, organizational culture, technology readiness and external pressure. This study also implies that more intensive use of social CRM appears to improve customer relationship performance. Considering the findings, the recommendations for future research are provided. DOI: http://dx.doi.org/10.5755/j01.ee.29.4.20246

Investors’ fear and stock returns: Evidence from National Stock Exchange of India

Abstract: This study examines the asymmetric inter-temporal relationship between India volatility index (NVIX) and stock market returns (Nifty S&P 50, 100, 200 and 500) in the Indian securities markets. The work is based on the daily prices of volatility index and stock indices for the period ranging from 2009–2015. Our results suggest a strong negative correlation between daily change in the NVIX and stock returns. This relation is more prominent when NVIX is higher and more volatile. The results show that there is an asymmetry among India NVIX and the stock returns and the magnitude of asymmetry is not identical. Due to this asymmetry NVIX is more of a gauge of investors’ fear, and portfolio insurance price than investor positive sentiment. The impact of changes in the stock returns on India NVIX is more when there are negative returns as compared to positive returns. These results have potential implications for the portfolio diversification, volatility traders and options trading-timing in the equity markets. DOI: http://dx.doi.org/10.5755/j01.ee.29.1.14966

Panel Data Analysis of Public and Private Debt and House Price Influence on GDP in the European Union Countries

Abstract: The panel data analysis of the influence of change in real public debt, real private debt, and deflated house prices on the GDP in selected European countries is performed. Least squares and autoregressive AR(p) model was used with cross-section and period both fixed by dummy variables. The research has confirmed strong negative influence of public debt with zero, one and two year’s lags as an independent variable on the GDP as the dependent variable. This is not surprising having in mind limited functionality of the European central bank as a lender of the last resort for the countries of the monetary union, that is, for the most of the analysed countries. This finding also confirms the necessity of the transformation of the European Monetary Union to the European Financial Union. Private debt has definite positive influence on the GDP as the dependent variable. It was confirmed by measuring this influence with zero, one and two and three years lags, but this positive influence was 2-3 times lower than the negative influence of public debt on the GDP. House prices unlagged have similar absolute value of positive influence on the GDP coefficient as the absolute value of the negative influence of lagged public debt, according to the regression coefficients received. However, house prices, leading by 2 years, have negative influence on the GDP, but this influence is almost 5 times weaker than the negative influence of unlagged public debt.DOI: http://dx.doi.org/10.5755/j01.ee.29.2.20000

Intuitionistic Fuzzy Real-Options Theory and its Application to Solar Energy Investment Projects

Abstract: Conventional methods used in project evaluation have a static nature, which cause decision makers to examine investment projects within a narrow scope. As an alternative, real-options theory allows decision makers to use the concepts of uncertainty and managerial flexibility, which classical methods do not deal with, in valuing investment projects. Carlsson and Fuller’s fuzzy real-options theory has been a solution for situations where cash flow and cost variables used in the model cannot be expressed by using classical numbers but by using fuzzy numbers. The idea of using intuitionistic fuzzy numbers in real options theory can expand the narrow scope more effectively than the idea of ​​using classical real-options theory, thereby providing an opportunity to evaluate investment projects from a wider perspective. In this study, intuitionistic fuzzy real-option valuation model has been developed and applied to the evaluation of solar energy investment projects. Studies have shown that solar energy investments that do not seem profitable today in Turkey can perform profitably in the future. Moreover, the historical volatility model differs from the expected valuable models, whereas the optimum investment year between the models formed by the uncertainty inductions from the expected values ​​exhibit minimal difference.DOI: http://dx.doi.org/10.5755/j01.ee.29.2.19206

Cultural Implications for the Shadow Economy

Abstract: The purpose of this paper is to discern the correlation among dimensions of national culture and the shadow economy. Correlation analysis and Hofstede’s categorized national culture dimensions were used. Correlation analysis revealed a correlation between the shadow economy and the following: the dimensions of national cultural power distance, uncertainty avoidance, and individualism vs collectivism. There is a slight correlation between the shadow economy and masculinity vs femininity. This is a novel empirical analysis of the shadow economy existing among the dimensions of national culture. The unexpected findings of high correlation between some national cultural dimensions suggests the need for more research in this area. DOI: http://dx.doi.org/10.5755/j01.ee.29.1.18069

How Strategic Priorities Are Reflected in Features of Strategic Performance Measurement System

Abstract: Strategic Performance Measurement Systems (SPMSs) are designed to present integrated information, which together with other controls in Management Control Systems (MCSs) helps managers to implement strategy properly and thus outperform the company’s competitors. A wide range of potential factors impacting the design and use of SPMS and MCS has been studied by proponents of the contingency theory since the 1980s who soon found strategy to be one of the most dominant contingencies. But recent reviews of contingency theory provide mixed, sometimes even conflicting evidence, partly because of inconsistent definitions of MCS and SPMS, partly because of exploring contingencies in isolation from other context factors and components. This article addresses both of these challenges. Firstly, it introduces four distinctive features of SPMS and complements them with often neglected “Beliefs” and “Boundaries” controls from the influential MCS framework “Levers of Control” devised by Simons (1995). Secondly, the resulting MCS concept is tested by PLS-SEM whether or not it is influenced by contingency factors of size, industry and especially by two opposing Porter’s generic strategic priorities – differentiation and/or cost-leadership (low prices). Surprisingly, only the former is found to be positively connected to the features of SPMS, however, the link is not direct but mediated by improvements in Boundaries and Beliefs. So the study broadens current knowledge on antecedents of SPMSs, that are applied in the medium-sized and large companies. At the same time, the study urges managers trying to implement differentiation strategy not only to establish the SPMS with all analyzed features, but concurrently to promote values and other belief controls as well as to set organizational rules and boundaries. In other words, the implementation of differentiation strategy has to be accompanied by establishment of the MCS incl. Beliefs and Boundaries, not just SPMS. Contrary to this implication, in case of low-price strategy, the detailed analysis proves that Belief and Boundary components of MCS are not very important tools for achieving cost-leadership. DOI: http://dx.doi.org/10.5755/j01.ee.29.5.17463

The Effect of Intellectual Property Rights Protection on the International Competitiveness of the Pharmaceutical Manufacturing Industry in China

Abstract: Research on the relationship between intellectual property rights (IPR) protection and economic growth and innovation has been often explored. However, there is an absence of research dealing with the the relationship between IPR protection and the international competitiveness of high-tech industry, especially pharmaceutical manufacturing industry. This study aims to examine the impact of the strength of IPR protection on the international competitiveness of China’s pharmaceutical manufacturing industry, by using time series data from 1995 to 2014. Modified Ginarte-Park (GP) index is used to measure the strength of IPR protection and revealed comparative advantage (RCA) index is utilized to measure the international competitiveness of China's pharmaceutical manufacturing industry. Multivariate time series model and OLS estimation are employed to examine the relationship between IPR protection and RCA index. The result shows that strict IPR protection does not enhance the international competitiveness of China’s pharmaceutical manufacturing industry. The finding suggests that it is more appropriate to adopt a more relaxed IPR protection system for pharmaceutical manufacturing industry in China. DOI: http://dx.doi.org/10.5755/j01.ee.29.1.16878

Do companies manipulate CSR information to retain legitimacy

Abstract: Corporations’ involvement in activities that are socially responsible, with respect for workers' rights and ethically principled, brings tangible benefits to the enterprise. These CSR benefits include an increase in stakeholders’ assessment of the corporation with a boost in perceived trustworthiness. Companies, however, may treat sustainability reports as a tool to legitimize their actions. This particularly concerns companies from controversial industries. In order to achieve the desired results from CSR activities, companies disclose only selected information to customers, employees and/or owners. We used t-test to verify the hypothesis that companies remove and add the same number of CSR measures in subsequent reports and that corporations from controversial industries change disclosed information to higher extent than companies from other industries. We stated, that companies replace one measure with the new one to keep the impression of the same level of disclosure and to maintain or increase the level of legitimacy. Research of 116 CSR reports from 8 Post-Communist European Countries for two consecutive reporting periods showed that companies change the number and type of disclosed measures and they don’t explain reasons of the changes made in the reports, which may indicate a desire to green the organization by presenting only positive information. However, this hypothesis did not confirm that there is a significant difference in changes of CSR measures revealed between companies from controversial and non-controversial industries. The paper fills a research gap in the research on the reliability of CSR disclosure. It concentrates on the motives and the range of measures unveiled in the sustainability reports to legitimize a company’s activity. Keywords: measures, corporate social responsibility, Global Reporting Initiative, stakeholders, controversial industriesDOI: http://dx.doi.org/10.5755/j01.ee.29.3.18946

Spain trade in view of some migratory and economic considerations

Abstract: The importance of trade and migration flows has become crucial in a time of long and global crisis. This paper analyzes how migration and other significant and novel economic considerations explain international trade. The methodology consists a panel data’ analysis of trade processes measured by export from Spain and import to Spain in 90 countries from 1998 to 2015 regarding immigration and other economic variables. The results show that immigration facilitates international trade of sending and receiving countries. Likewise, the results provide an indirect evidence that labor productivity is relevant for international trade and it also supports the existence a “Say’s Law of Immigration. In addition, the paper shows how labor-intensive countries favor the exports from Spain, and by contrast, capital-intensive countries facilitate the imports from Spain. Finally, the results add empirical evidence about how the lack of technology infrastructure act as a non-tariff trade barrier, meanwhile the membership to EU reduce trade costs, encouraging exports and imports for any country.DOI: http://dx.doi.org/10.5755/j01.ee.29.1.19387

The Concept and Measurement of Creating Excess Value in Listed Companies

Abstract: The basic topic of considerations in this article is an assessment of the creation of value for owners – in an expected and sufficient manner. It indicates that the adopted approach is based on the concept of Expectations Based Management (EBM). The author discusses the manner of developing measures for the needs of the EBM concept and assessing their usefulness in the conditions of the capital market in Poland. In particular, the article focuses on the manner of extending the area of the perception of market value added by introducing the concept of excess value. In the dimension of theoretical and methodological considerations, the author refers to the relations between value added creation measures (economic and market value added) and a company’s market value (market capitalisation). The utilitarian dimension is related to the results of research of creating value by publicly traded companies. The analysis comprises 20 listed companies (the sectors: energy, chemical industry, fuel and raw materials), whose shares are listed on the Warsaw Stock Exchange. These are the main creators and destroyers of value added. The test period covered the years 2008–2013. The article proves three research hypotheses, and the general conclusion is that excess market value added provides a more reliable description of capital market changes (companies market capitalisation) as classic market value added, taking into account owners (shareholders) expectations.DOI: http://dx.doi.org/10.5755/j01.ee.29.4.13207

Differences in Employee Motivation in Selected Countries of CEE (Slovakia, Lithuania and the Czech Republic)

Abstract: Slovakia’s, Lithuania‘s and Czech’s entry into the European Union resulted in their labour market integration in Europe. Factors influencing job satisfaction or employee motivation are identical on the markets of new members of the EU. Satisfaction at work is one of the most rigorous determinants of employee motivation. Sampling unit consisted of 2,369 respondents from Slovakia, 270 respondents from the Czech Republic and 183 respondents from Lithuania. Sampling units were tested using one-way analysis of variance, Fisher F-test. We find out that motivation needs of individual countries are not identical despite 10 years of EU membership. There are significant differences in motivation needs of employees in individual countries. The most exacting needs are those of the respondents in Lithuania and the less exacting ones are those of the respondents in Slovakia. Variety in opinions is also fundamentally different in individual countries. The highest variety is in Slovakia and the lowest one in Lithuania. Atmosphere in the workplace, supervisor’s approach, basic salary, good work team, job security, fair appraisal system are the most important motivation factors in all studied countries. However, the order of importance varies in individual countries. Defining the level of satisfaction in individual countries is the result of the research. DOI: http://dx.doi.org/10.5755/j01.ee.29.5.13953

The importance of the services brand in predicting loyalty and word of mouth

Abstract: This research is related to brand perception and its implications for the management of sports services. The aim of this study is to analyse the influence of perceived brand quality on credibility and attitudes towards this perceived quality from the point of view of users, as well as whether that relationship could trigger increased loyalty and recommendations. The survey was conducted in a public sports service located in Valencia, Spain, and its results have confirmed the influence of perceived quality on credibility but not on attitudes. On the other hand, the effects of credibility and attitudes on loyalty have been significant because of the influence of credibility on recommendations and attitudes. Conversely, attitudes have not had a direct influence on word of mouth (WOM). DOI: http://dx.doi.org/10.5755/j01.ee.29.4.17694

Mediating Effects of Career Stage on Job-Related Characteristics - Job Satisfaction Relationship

Abstract: Despite the fact that job satisfaction has occupied the attention of many authors for decades, this is still fruitful area to investigate because there are still many important questions that require answers. One of these questions is whether the career stages, in which employees currently are, influence which job related characteristics have dominate influence on their job satisfaction. These question arises from the fact that each career stage bring to employees specific concerns, challenges, expectations and needs regarding the job. Our assumption was that career stages have mediating effect on job related characteristic - job satisfaction relationship. In order to test this assumption, primary research was conducted in organizations in Serbia. The sample included 813 employees. For checking the initial assumptions, descriptive statistics and multivariate analysis of variance were applied. The research methodology also included theoretical analysis of the concept of job satisfaction and career stages in process of career development. Results of the study showed that career stages have mediating influence on job related characteristics - job satisfaction to a large extent, except when it is about pay and contingent rewards which have significant influence on job satisfaction for the employees in all career stages. These results could be explained by unfavorable economical conditions in Serbia such as low standard of living and law salaries which put this aspects of work environment in the focus of every employee nevertheless of career stage in which he/she is.DOI: http://dx.doi.org/10.5755/j01.ee.29.2.18637

Assessment Of Electric Vehicles Promotion Measures At The National And Local Administrative Levels

Abstract: The transport sector is one of the major emitters of greenhouse gases and other pollutants. Transition from usage of fossil fuels to usage of renewable energy resources calls for a comprehensive package of national and local actions. Although electric vehicles can significantly contribute to energy consumption efficiency, reduction of carbon dioxide emissions and independence from petroleum imports, electric vehicle market development in some countries remains comparatively slow. Electric vehicles are more expensive in comparison to traditional vehicles, countries lack necessary infrastructures, consumers may need additional information about the benefits of eco-friendly cars, etc. The above-mentioned and other weighty reasons force national and local authorities to think about implementation of financial and non-financial electric vehicle promotion measures. The experience of other countries and cities is extremely valuable as it helps to form the trends and exploit the benefits of the best practice. The purpose of this article is to analyse global electric vehicle promotion measures applied at national and local administrative levels.DOI: http://dx.doi.org/10.5755/j01.ee.29.4.19960

Measurement of Impact of Selected Industrial Engineering Practices on Companies’ Economic Performance

Abstract: Industrial engineering represents a significant tool how to eliminate waste in both manufacturing and other areas of the enterprise. This helps reduce costs, increase production capacities and other characteristics, which can lead to better competitiveness and production performance. Focusing on the implementation of methods that have a significant impact on these indicators should be part of the choice of industrial engineering methods at all. Finding industrial engineering methods that have significant impact on overall business performance is the main purpose of this paper. Another objective was to determine whether the impact of industrial engineering methods applies to all industries in the Czech Republic or whether it applies only to selected industries. The data needed to achieve the objectives was obtained through an online questionnaire survey, the survey focused on a wide range of manufacturing companies (N=235) from different industries, different sizes and ages in the Czech Republic. For comparing the overall business performance among individual respondents, a basic ROE indicator was selected. To measure this indicator from the impact of the tax, investment and credit policy, a modified ROE indicator (calculated first with EBITDA and then with EBIT) was used. The results show that the use of industrial engineering methods in manufacturing plants in the Czech Republic is limited to a few selected methods. Similarly, only a few industrial engineering methods are typically used in high performance firms and can therefore be said to be involved in increasing performance. Presented research also shows that this influence of methods does not apply to individual industrial engineering methods globally in all the sectors studied, but only in some of them. DOI: http://dx.doi.org/10.5755/j01.ee.29.2.19871