Showing papers in "Verslas: Teorija Ir Praktika in 2016"

The impact of employee empowerment on employee satisfaction and service quality: empirical evidence from financial enterprizes in Bangladesh

Abstract: Organizations face immense challenges in improving their performance and productivity in the present changing and competitive business world. Experts view employee empowerment as an effective tool that fosters organizational performance, employee satisfaction and service quality. The present study intends to identify the influence of employee empowerment on employee satisfaction and service quality, and the impact of employee satisfaction on service quality. Fourteen dimensions and 52 item statements of employee empowerment, service quality and employee satisfaction have been adopted from previous studies to undertake this study. Data have been gathered following a quantitative survey conducted among a diverse group of employees (N = 240) working in 20 different financial institutions including private banks, leasing and insurance companies in Bangladesh. Several statistical techniques consisting of descriptive analysis, Pearson correlations and regression analysis have been applied using SPSS software to analyze collected data. The results of the statistical analysis reveal that employee satisfaction and service quality significantly depend on employee empowerment, and satisfied employees provide better quality service. The findings of this research have explicit implications for both the employees and the organizations. This study suggests that by empowering employees, an organization can increase the level of employee satisfaction that in consequence upturns service quality.

Workplace stress: Implications for organizational performance in a Nigerian public University

Abstract: This study investigated the implications of workplace stress on organizational performance in a Nigerian Public University. The survey method was deployed in sampling one hundred and seventy (170) staff members of the University. The Structural Equation Modelling was adopted using AMOS to establish fitness. Results of the analyses indicate that role congruence, equity, recognition, and distance, have significant influence on organizational performance. This makes it imperative for organizations to invest necessary resources in developing strategies and interventions to reduce workplace stress. If this is achieved, there will be endless opportunities in terms of increased performance and overall sustainability.

Impact of corporate social responsibility intensity on corporate reputation and financial performance of Indian firms

Abstract: The rising importance of CSR over the last few decades has stirred the interest of academia and corporate on the subject. CSR attracted attention in the Indian context with the implementation of the Companies Bill, 2013, which mandated firms to invest 2 per cent of their net profits in social activities. The linkages between CSR and profitability using factors such as corporate reputation, competition intensity, and advertising have been tested in the developed countries. These linkages have sparsely been tested in emerging economies such as India, which motivated me to conduct this study. Neville et al. (2005) proposed a theoretical model integrating stakeholders, and internal and external factors influencing the CSR-FP relationship. This study modified and used Neville's et al. (2005) model to test the proposed linkage in the Indian context. Structural Equation Modeling revealed a significant relationship between CSR Intensity and corporate reputation; significant role of social initiative and corporate strategy fit in enhancing the corporate reputation of a firm; and a significant role of advertising and promotion in enhancing corporate reputation. Other variables such as competitive intensity, supplier power, customer power and employee power were found to have no significant role on the proposed relationships. Keywords CSR intensity corporate reputation firm performance stakeholder JEL Classification M14 Introduction Liberalization and globalization, presence of MNCs in Asian markets, rising consumer expectations from businesses, and emergence of pressure groups have augmented the cause of CSR in the Asian sub-continent. Responding to social pressure is important for a firm as it can directly affect its market value by pushing away investors from the firm or indirectly by harming the reputation or brand equity of the firm. Firms may be encouraged to perform socially responsible activities to ward off negative attention from NGOs (Baron 2009). Moreover, Indian consumers have become increasingly aware of the wider social role of business in the society (Mishra and Suar 2010). Consequently, Indian companies have started focusing on CSR activities to build trust amongst their significant stakeholders (Mishra and Suar 2010; Carroll and Shabana 2010). CSR is instrumental for a firm to gain public appreciation; to make up for perceived wrong doings of an industry; and/or manage their reputation. The Companies Bill, 2013, India, which aimed at bringing the management of the corporate sector in line with global norms, directed companies to invest in social and ethical causes. Given this statutory requirement, companies need to invest in CSR activities that have an impact on firm performance and ensure that the CSR expenditure undertaken on their part is beneficial to them in the long run. This study accordingly addresses the CSR-FP link in the Indian context. Neville et al. (2005: 1190) proposed a theoretical model integrating stakeholders, internal factors (Reputation Management Capability; Social Initiative and Corporate Strategy Fit) and external factors (Stakeholder Power; Competitive Intensity) that affect the link between CSR and FP. The model also envisaged the moderating role of stakeholders in the CSR-FP relationship. This study intended to test the validity of the model in the Indian context. The postulates provided by Neville et al. (2005) consider stakeholders in its entirety which is an erroneous approach. Given the presence of several different groups of stakeholders (Freeman 1984: 25) with their varying significance to a firm, they need to be analyzed separately. Previous research (Rose and Thomsen 2004) identified employees, customers and suppliers as major stakeholders who are likely to significantly influence the performance of a firm, due to their ability to control critical resources of the firm. Therefore, this study endeavors to analyze Neville's model in the Indian context focusing on customers, suppliers and employees, who significantly affect the performance a firm. …

Corruption and Stock Market Development: New Evidence from GCC Countries

Abstract: The theoretical relationship between corruption and stock market development has been debated quite extensively in the literature, yet the evidence on the impact of corruption on stock market development remains contradictory and ambiguous. This paper investigates the impact of corruption, as measured by Corruption Perception Index (CPI) published by Transparency International, on stock market development focusing exclusively on Gulf Cooperation Council (GCC) countries with its special characteristics of combining richness with relatively high level of corruption. Results from an estimation of alternative regression models on a panel of six GCC countries over the period 2003–2011, through which CPI is legitimately comparable, confirms a positive impact of corruption on stock market development, where the latter is measured by market capitalization. This is consistent with the view that corruption greases the wheels of economy by expediting transactions and allowing private firms to overcome governmentally imposed inefficiencies.

Negative equity companies in Europe: theory and evidence

Abstract: Businesses in technical bankruptcy are part of the European context, many of them in such financial distress that they have lost all their equity and a very high percentage of them have even incurred negative equity. There is a very little literature analysing these companies; moreover, they are considered as out of the ordinary because they do not fit into conventional theories of business, and are removed from most samples. They are largely neglected. The research questions posed here are a step towards remedying this: "What are the scale and the economic impact of negative equity companies in terms of risk transference?", "Does this problem differ from one European country to another?", "Is it an effect of the crisis?". Using the Bureau Van Dijk's Amadeus database, we find that nearly 20% of companies have negative equity. Such companies handle more than one billion Euros, i.e. nearly 10% of European GDP. So the results suggest that negative equity companies have a high weight in Europe and, based on the country cluster studied, it seems that neither culture nor geographical area is determinant in explaining their distribution across countries. Nor is the crisis a determinant in explaining their existence, so the problem is not cyclical but structural. These findings have potentially important implications in encouraging European decision makers to factor such companies into their policies and to include them in economic models. Keywords moral hazard negative equity stakeholders Amadeus zombies crisis JEL Classification G33, M29 Introduction The world's leading economies are striving to become more competitive so that they can all get onto the path of sustainable growth and into a new economic cycle. A competitive economy needs a competitive fabric of business, and it is precisely in this aspect that the main weakness of many countries may lie. There are companies whose future viability is uncertain and whose ability to compete is highly limited. These companies may transfer risks, and thus losses should they go under, to others with which they maintain trading and other links. They have in fact been described as "zombie companies" (Ahearne and Shinada 2005; Caballero et al. 2008). The most extreme type of zombie company comprises negative equity companies which continue to trade in spite of having lost all their equity (see Mohrman and Stuerke 2014 for an example). The risk posed by these extremely leveraged companies lines not so much in the risk of their going bankrupt but rather in the potential economic impact of all their risks being transferred to other companies. Despite the fact that negative equity companies are part of the national context in European countries, scholars of international finance have paid scant attention to them (Luo et al. 2015; Retolaza et al. 2016). The research questions posed here are a step towards remedying this: "What are the scale and the economic impact of negative equity companies in terms of risk transference?" "Does this problem differ from one European country to another?" "Is it an effect of the crisis?". 1. Research question and structure To answer these questions our study uses the Bureau Van Dijk's Amadeus database to analyze the situation in the European Union in 2012 and the Amadeus Top 250,000 database to test for a country effect and a crisis effect and to analyse the trend over the 4-year period from 2009 to 2012. Earlier studies have also used these data and the quality of the information in Amadeus has been checked for accounting data (e.g. Faccio et al. 2011). We focus on European countries because reporting requirements and practices mean that rich data are available for a large fraction, in terms of euro value, of the universe of equity. The aim of this study is to add to the established literature by looking at extremely leveraged companies, with negative equity understood as the worst capital structure of companies in terms of guarantees of meeting the obligations acquired with their stakeholders. …

Technology Mapping – Proposal of a Method of Technology Analysis in Foresight Studies

Abstract: The purpose of the article was to exhibit the technology mapping method as one of the methods which may be used in foresight research. Foresight studies was described in the context of technology as well as technology analysis. The main part of the article is the presentation of an original proposal of a technology mapping method enabling to diagnose the current state of technology. The execution of the method should allow to maximise the resources of knowledge on specific technologies. A list of technological knowledge base elements which might emerge as a result of the process was also described.

Social Responsibility and Commitment in Management Institutes: Mediation by Engagement

Abstract: Due to its major influence on individual’s performance, engagement is increasingly becoming popular among practitioners. While its influence on performance has been well established, research on the influence of variables related to organizations on engagement is still in its nascent stage. Therefore, this study examines the mediating role of employee engagement in the corporate social responsibility (CSR) – organizational commitment relationship. Multiple regression results using responses from 150 academics working in Indian management institutes predominantly owned by business groups partially support the relationships hypothesized. The findings may encourage Indian management institutes owned by business groups to consider CSR in teaching and research as serious investment areas in order to have a more engaged and committed workforce.

Antecedents of organisational creativity: a multi-level approach

Abstract: The purpose of this literature review is to provide a better understanding of the antecedents of organisational creativity with a multi-level approach. Organisational creativity is a sum total of the creativity accounted for by the individual employees of the organisation, the cumulative creativity of a team or group and creativity arising out of different structural components of an organisation. Some of the antecedents identified from the literature include personality, intrinsic motivation, group cohesion, social inhibition, cognitive interference, leader member exchange, organisational culture and climate, amongst others at individual, group and organisational level. Based on the literature review, suggestions for future research and research propositions have been proposed.

Intellectual Capital and Profitability: A Firm Value Approach in the European Companies

Abstract: Intangibles are, at a knowledge-based economy, the most important resources, driving companies towards systematic and sometimes unexpected returns. This paper follows a positivist approach and aims to investigate the association between the degree of intangibility, value of firms and their profitability. Based on the 500 largest European companies, rated by Financial Times, the most relevant insights emerge from the association between firms’ knowledge intensity level and its degree of profitability. These insights consolidate the evidences that immaterial resources act as drivers of future benefits and are embodied on firms’ profitability ratios.

Model of Market Orientation of High-Tech Firms in Germany: Validation Study

Abstract: The aim of this validation study was to verify a four-factor model of market orientation on a sample of German high-tech companies in the manufacturing industry. A modified version of the measuring scale (MMOS), composed of twelve items, was used for measurement. The target group consisted of business and marketing managers (N = 374) who recorded their answers on a seven-point Likert scale. The main methods used to achieve the objectives were exploratory and confirmatory factor analyses. Having verified the psychometric properties of the instrument, I proceeded to confirm the hypothesis of a four-factor solution model. Reliability and validity of the measuring instrument was also examined, which allowed a confirmation of the second hypothesis. The research may serve as the evidence of the instrument suitability for measuring market orientation in European cultural conditions. To obtain results from other sectors, the author recommends further research replication using the MMOS instrument.

Corruption effect on foreign direct investments in European Union countries

Abstract: The authors of the article analyze the effect of corruption on foreign direct investments in most corrupt European Union countries. Corruption in the context of the analysis is understood as an act where government officials enter into an agreement with a foreign investors against the interest of society. It takes place when illegal payments for government are made. Such payments acts as an additional tax on investments in foreign country, thus decreasing attractiveness of investment for foreign investors. There are various types of corruption, but most common classification include grand corruption, petty corruption and public sector corruption. However, this article focuses on the effect of grand corruption, because it directly affects FDI inflows in particular country. Results of the research made by the authors shows that corruption has adverse effect on FDI inflows, however particular corrupt actions may postively effect FDI inflows. In order to determine corruption effect on FDI in corrupt EU countries statistical analysis of 2000-2014 period has been implemented and conceptual model of effect on FDI created. Santrauka Straipsnyje autoriai nagrineja korupcijos itaka tiesioginems uzsienio investicijoms labiausiai korumpuotose Europos Sajungos salyse. Sio tyrimo kontekste korupcija apibreziama kaip jvykis, kai valdininkas pasiekia susitarima su uzsienio investuotoju prioriteta suteikdamas savo asmeniniams, bet ne visuomenes interesams. Korupcija vyksta, kai atliekami nelegalus mokejimai valdininkui uz paslauga. Jie uzsienio investuotojams reiskia papildomus kastus ir tai mazina salies patraukluma uzsienio investicijoms. Mokslineje literaturoje korupcija skaidoma i ivairius tipus, taciau dazniausiai tiriama didzioji korupcija, smulkioji korupcija bei viesojo sektoriaus korupcija. Siame straipsnyje analizuojamas didziosios korupcijos daromas poveikis, nes ji tiesiogiai veikia tiesiogines uzsienio investicijas. Autoriu atliktas tyrimas parode, kad korupcija daro neigiama poveiki TUI lygiui salyje, taciau tam tikri korupciniai veiksniai gali ir paskatinti TUI. Siekiant ivertinti koki poveiki korupcija daro tiesioginems uzsienio investicijoms Europos Sajungos salyse buvo atlikta 2000-2014 metu periodo statistine analize ir sukurtas korupcijos poveikio TUI konceptualus modelis. Keywords foreign direct investment corruption grand corruption corrupt countries European Union Reiksminiai zodziai tiesiogines uzsienio investicijos korupcija didzioji korupcija korumpuotos salys Europos Sajunga JEL Classification D73, F21, F23, H54 Introduction In the 1990s new European Union member states signed bilateral agreements, which liberalized 85% of trade between the two blocks and therefore since the mid-1990s, the number of foreign firms and the stock of foreign direct investment (FDI) have risen sharply in the new Member States (European Union Communication from the Commission to the Council 2006). Multiple researches have been conducted by scholars and scientists, as this growth led to analysis of foreign direct investment determinants. It is seen that multiple indicators can cause fluctuations of foreign direct investments. However, only recently corruption has been introduced as one of the focal determinants of FDI inflows. It may not only directly influence changes of FDI, but may also affect economic growth, unemployment (Vojtovic and Krajnakova 2013) or other economic variables, which subsequently may lower the inflows of FDI. Though, in the context of this article, direct effect of corruption on FDI is being analysed, rather than corruption effect on multiple economic indicators. The problem and novelty of the study. From the beginning of political economy science, corruption has been seen as a major issue and multiple scientists have analysed it in their researches. Multiple articles exist about corruption effect on economic growth, distortion of free market or other economic factors. …

Valuing start-ups – selected approaches and their modification based on external factors

Abstract: The recent methods of start-up valuation seek to compensate for the lack of data necessary for a standard company valuation with additional information on the person of the entrepreneur and business project. None of the existing approaches, however, takes into consideration information about the environment in which the venture capitalists conduct their investments. Therefore, the aim of this paper is to develop an approach considering factors of the investee companies' environment. Such a modification will allow a more accurate estimate of the value of the projects investigated. The nature of this study is explorative. It relies on secondary data that was collected using interviews and semi-structured questionnaires in previous empirical studies. During the course of the modelling process, information on the quality of the investee companies' environment expressed is incorporated into the established start-up project valuations. Our original proposal consists of the modification of the [beta] coefficient calculation for a given type of projects. An essential part of this modification is also a proposal for the extension of the project scoring characteristics to include expert estimates and, in the case of regression analysis, the inclusion of explanatory variables expressing the suitability of the environment for venture capital investments. Keywords venture capital business angels start-ups valuation model beta coefficient external determinants macroeconomic determinants JEL Classification G11, G23, G24 Introduction The use of conventional valuation methods for business projects at an early stage of development (start-ups), which are often the target of venture capital and business angel activities, is rife with difficulties; at the same time, however, valuation is of utmost importance if a start-up is looking to raise money for its further development. Valuation methods are usually divided into three basic groups, i.e. valuation methods that rely on cash flows, comparable transactions, and analysis of assets (Kumar 2015). The difficulty of using these approaches in the valuation of start-ups lies mainly in the fact that start-ups can provide only very little information about their history (Miloud et al. 2012). This may be due to a lack of accounting data (short history, i.e. the company has neither profits nor revenues), the lack of market data (there are no comparable companies or no direct competitors) or the fact that most of the company's assets are intangible. The existing methods of start-up valuation seek to compensate for the lack of information necessary for a standard company valuation with additional information on the person of the entrepreneur and business project. None of the existing approaches, however, takes into consideration information about the environment in which the venture capitalists are to make their investments, i.e. external factors influencing entrepreneurial success are not reflected in these models. The model, proposed in this article, presents a modification of the existing valuation models of start-ups by considering factors of the investee companies' environment. Such a modification will allow a more accurate estimate of the value of the projects investigated. The novelty of this study is to focus on the analysis of external factors that influence the valuation of investee companies in the start-up stage. No previous paper has, to our knowledge, dealt with the issue of appropriate methodologies reflecting these factors. 1. Theoretical background New start-up firms face typically a lack of external financing. A large number of academic studies examining investment criteria and projects' valuation approaches emerged in the last two decades. Nofsinger and Wang (2011) studied the determinants of the initial start-up financing in 27 countries and conclude that "institutional investors rely on the experience of entrepreneurs in managing start-ups and the quality of investor protection to reduce moral hazard". …

Graduate skills requirements for effective performance in the banking sector

Abstract: This paper aimed to explore the graduate skills requirements in the banking sector. Indepth interviews were carried out with twenty-five managers in ten companies in the banking industry in Turkey. The results show that 40 percent of managers thought universities do not provide their graduates with the skills necessary to be successful in their jobs. Soft skills (i.e. communication, interpersonal relationship, and teamwork skills) are particularly sought after, and managers would also like to see more training in analytical thinking skills. Researchers are recommended to study the subject in different counties using quantitative methods. Based on results, bank executives are advised to communicate and collaborate with educators to make sure their needs are known and met. This paper filled the gap in research on the skills the banking sector needs in new graduates.

The benefits of corporate social responsibility introduction in small and medium-sized enterprises: a systematic review of the literature

Abstract: Corporate social responsibility is considered as an important part of entrepreneur's strategic behaviour. Its purpose is not only to achieve and maintain the good economic results, but at the same time also effort to do well to the environmental and social impact of business on the society. The systematic review of the literature was used to compare attitude of domestic and foreign SMEs and to identify the benefits of CSR implementation in business practice. The research findings point to the fact that the Czech SMEs do not realize enough the benefits of CSR introduction for their business. Keywords corporate social responsibility sustainable development small and medium-sized enterprises JEL Classification M14, O13 Introduction Corporate social responsibility (CSR) is a fairly broad term that includes a variety of activities, which can be divided into specific areas. As the founder of the CSR concept, which first appeared in the 1950s, is considered (Bowen 1953), which stressed the idea that large companies are a kind of power centres whose decisions and activities affect people's lives in different ways. According to (Bowen 1953), therefore, seems to be reasonable the expectation that managers of these companies should assume some kind of responsibility on the matter. According to (Carroll 1979) CSR access of the business entity includes economic, legal, ethical and voluntary expectations, which the society has to the organization at the moment. The CSR can be viewed according to (Jenkins 2009) in terms how entrepreneurs manage their business processes in order to achieve the overall positive impact on the society. Evropska komise (2001) defines CSR as the voluntary integration of social and environmental concerns "companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis". According to Kotler and Lee (2005) can be CSR characterized as an entrepreneur's commitment adopted in order to improve the well-being of society through discretionary business practices and the benefits of enterprise resource. It can be a form of voluntary entrepreneur's commitment to behave ethically, to contribute to social development and efforts to constantly improvement of the society's quality life from many diverse aspects. Business Leaders Forum (2012: 2) defines corporate social responsibility as "a voluntary commitment of companies to behave responsibly in the context of its operation to the environment and the society in which they operate". CSR is in accordance with (Evropska komise 2015) about continuous improvement and should be seen as part of the modern model of business excellence, in particular for SMEs. Also the members of the so-called Big Four are engaged in the issue of CSR. PwC (2015) stresses that they would like to be a part of the global conversation and movement towards responsible business practices and they support creation of the positive change in the world. PwC therefore focuses on four key areas, where they see the possibility to make relevant and significant contributions. These areas include: Responsible business, Diversity and inclusion, Community engagement, and Environmental stewardship. KPMG Czech Republic (2015) stress that the CSR is a part of they corporate culture and values of the company, and therefore tries to act ethically and transparently, and to minimize the impact of its business on the environment. EY (2015) points to the fact that the role of business is changing. A combination of factors envolving the relationship between development and emerging economies, global institutions and nation states and public and private sectors must according to EY (2015) leads a greater understanding of the connection and interdipendecny between business and society. According to Lepoutre and Heene (2006) during the last few decades, business entities, regardless on their size or sector have confirm the increasing pressure on fulfilling CSR imperatives and principles. …

An Empirical Competence-capability Model of Supply Chain Innovation

Abstract: Supply chain innovation has become the new pre-requisite for the survival of firms in developing capabilities and strategies for sustaining their operations and performance in the market. This study investigates the influence of supply and demand competence on supply chain innovation and its influence on a firm’s operational and relational performance. While the former competence refers to production and supply management related activities, the latter refers to distribution and demand management related activities. The current investigation further explores how well supply chain management processes are internally executed by the firm’s employees i.e. process compliance is observed as an enabler (moderator) on the relationship between supply chain competences and supply chain innovation. Further the model also explores the moderating influence of environmental uncertainty on the linkage between supply chain innovation and firm performance. The model is empirically validated based on perceptual data collected from 166 supply chain professionals through web based survey. Implications for both managers as well as practitioners are also provided.

Personnel Selection Using Fuzzy Axiomatic Design Principles

Abstract: Overall competency of the working personnel is often observed to ultimately affect the productivity of an organization. The globalised competitive atmosphere coupled with technological improvements demands for efficient and specialized manpower for the industrial operations. A set of typical technological skills and attitudes is thus demanded for every job profile. Most often, these skills and attitudes are expressed imprecisely and hence, necessitating the support of fuzzy sets for their effective understanding and further processing. In this paper, a method based on fuzzy axiomatic design principles is applied for solving the personnel selection problems. Selecting a middle management staff of a service department for a large scale organization is demonstrated here as a real life example. Five shortlisted candidates are assessed with respect to a set of 18 evaluation criteria, and the selection committee with experts from the related fields also realizes the outcome of the adopted approach to be quite appropriate, befitting and in agreement with their expectations.

Pre–Emption Right of Shareholders to Purchase Shares for Sale in Private Limited Liability Companies: The Problematic Legal Remedies

Abstract: This article analyses the problems that can arise when implementing the rights of shareholders in private limited liability companies to purchase the shares of another shareholder being for sale in priority to others and the possible legal remedies for violated rights. According to the practice of the Lithuanian Supreme Court, the rights of the buyer cannot be assigned to a private limited liability company shareholder whose pre-emption right to purchase the shares being for sale has been breached. However, in this article it is being argued that perhaps in certain exceptional cases, in order to create fair business practice and ensure a “tangible” result for the plaintiff in relation to the judgment, the court could (should) take advantage of the freedom to maneuver and, by implementing justice, change the method of restitution (pertaining to the subject) – assign the shares to the plaintiff (an aggrieved shareholder) simultaneously creating an obligation on the same person to settle properly with the last owner of the disputed shares.

Adoption of an Activity Based Costing Model in an Indian Steel Plant

Abstract: In the age of relentless global competition, constantly improving technology and better information systems, managers are often compelled to devise new strategies to maintain sustained competitive advantage while adopting new business management approaches. So, in this paper, an activity based costing (ABC) model is proposed for a raw material handling section of an Indian steel plant. The results obtained from ABC model application in the said department facilitates quantification of the unit cost of each process, analysis of various activities in order to identify inefficiency, setting-up of better budget allocation, initiation of cost minimization procedure and establishment of an efficient resource requirement plan. Moreover, the cost information derived from ABC model is compared with that extracted from the traditional costing system to demonstrate that ABC model can significantly minimize the product cost distortion resulting from unsystematic allocation of overhead costs. This paper also discusses the practical implication of the implemented ABC model with respect to its critical role in effective resource control, improved strategic and operational decision making, and aid in continuous improvement through internal cost minimization in the department.

Establishing a set of macroeconomic factors explaining variation over time of performance in business sectors

Abstract: With increasing competitiveness of companies and business sectors in the domestic markets of Lithuania, economic units are frequently confronted with the lack of methods for more detailed analysis of external factors explaining the variation over time of corporate financial indicators. The analysis or forecasting of financial indicators is usually linked with the development of a stock market or undertaken to estimate the probability of bankruptcy. However, there is a lack of studies aimed at identifying links between macroeconomic factors and financial performance indicators and explaining their variation over time. To serve that purpose, the factors of the macroeconomic environment that are most significant for certain economic activities have been identified and analysed to enable explaining the variation over time patterns of corporate financial indicators. The analysis covers economic performance, i.e. financial performance indicators and their links with macroeconomic factors, in 89 business sectors of Lithuania at a three-digit level of NACE 2 ed. The findings of the research indicate that the unemployment level in the country, the volume of export and import and the GDP are the most important macroeconomic factors that can be used to forecast different profitability, financial leverage, liquidity and other financial performance indicators of individual business sectors or companies. The research has not unfolded any significant differences between business sectors therefore the above factors are considered generic macroeconomic factors enabling to explain financial performance indicators of the 89 business sectors. Hence, special attention has to be paid to identifying and analysing specific factors and assessing the causal link. When established, the set of such factors provides a framework for building of a model to forecast business sector financial indicators.

Connatural Management Approach to Preparation and Development of Individuals in the Business Environment

Abstract: Article develops modern trends in management, using knowledge of cognitive and behavioural sciences. It presents the concept of subtle skills and a connatural management approach. It presents the results of research on the relationship between stress, mental condition and the level of critical thinking, problem solving and decision making. To achieve these goals we have used results of a psycho-diagnostic research which all participants of managerial training X-tream Management were subjected to.

Survey and Explain the role of Sensemaking in Successful Strategy Implementation in Iran’s Automotive Companies

Abstract: There is not a dominant model that could explain key factors of sensemaking of strategy implementation and interactions between them. The purpose of this study is designing and explaining the role of sensemaking in successful strategy implementation along with a combination of factors which influence implementation sensemaking. This study surveyed the factors influencing sensemaking of successful strategy implementation in top Iran’s automotive companies. This is a qualitative research that uses grounded theory to obtain insight about the role of sensemaking in successful implementation through in-depth interviews with 22 individuals (Managers, Assistant Directors and Academic Professors) and used gathered data to design a model of sensemaking in successful strategy implementation. Based on open and axial coding, 21 effective variables were conceptualized and classified in seven major categories then final model was designed. This theory explains factors that affect the sensemaking of successful strategy implementation and how these factors interact with each other. Sensemaking in Successful implementation of strategies depends on Sensemaking Context, Key Executers, Discourse Context, Intervening Conditions and Collective Sensemaking. Sensemaking Context cause sensemaking and sensegiving of key executers and key executers itself along with Discourse Context and Intervening Conditions lead to collective sensemaking. The consequence of model is sensemaking of successful strategy implementation that consists of maintaining and recording the meaning and its strengthening, collective effort, continuous strategy implementation and operational excellence of the organization.

Financial Convergence Analysis: Implication for Insurance and Pension Markets

Abstract: The proposed paper is one of a set of articles dedicated to the new phenomenon in the global and national financial markets – financial convergence – and is focused on theoretical issues. The hypothesis of the article is to argue whether the financial convergence determines the directions of financial market (namely, insurance and pension sectors) development. Adequately the goal of this paper is to analyze the existence of convergence processes in the insurance and pension markets. Methods of systematic and logical analysis are used. In the first part authors give brief history of the convergence phenomenon research. Then the paper analyses influence of financial convergence on insurance and pension markets, manifested in the following effects: mix of financial institutions functions; distribution channels advantages, increase of insurance and pension funds companies’ competitiveness; governance models convergence. The major results of the study are: demographic shifts in different developed and emerging markets countries caused the need to reform the social security systems and public pension schemes and refocus them to the market-based financial convergence model; pension funds, acting as institutional investors, are the leading players in the contemporary global financial market; competition at the financial market causes the expansion of a number of services offered by various organizations: banks, insurance companies, pension funds and so on, which offer a wide range of services not directly related to their core businesses; the mixing of financial institutions functions from the insurance, pension and banking sectors, increased competition for customers at the national and global financial market.

Persistence of Earnings and Prediction of Future Cash Flows: The Role of Timely Recognition of Bad News

Abstract: Timely recognition of losses and expenses compared to revenues and increased values precipitates future expenses to match with current revenues. Thus, timely recognition of losses acts to reduce the persistence of earnings. However, it is expected that a more timely recognition of negative cash flows, as bad news, increase the power of earnings for predicting future cash flows. This study investigates the effects of the timely recognition of bad news (loss) versus the good news on the decrease of the persistence of earnings, and the effect of negative cash flows on forecasting future cash flows. In this study, two pooling type models and a panel type model have been used to estimate the persistence of earnings and cash flows. Seventy eight firms that were listed in the Tehran Stock Exchange during the period 2003–2010 were duly reviewed. The results of this research proved that the timely recognition of loss does not affect the persistence and the power of earnings for the purpose of forecasting future cash flows. The findings imply that conservatism does not distort persistence of earnings.

Psychological Factors of Innovativeness among Nomadic Micro-Entrepreneurs for Achieving Business Growth

Abstract: The objective of this paper is to explore the psychological factors of innovativeness that drives nomadic micro entrepreneurs’ (MEs) in enhancing their business growth in Malaysia. Nomadic micro entrepreneurs refer to those who regularly change the location of their business. To meet the research objective, the current study carried out in-depth interviews among the Nomadic MEs operating their business in Northern region, Malaysia. Twenty Nomadic MEs were interviewed on voluntary basis. Thematic analysis was conducted to identify the recurring themes that delineate psychological factors that may influence innovativeness. Interestingly, the findings revealed that the innovativeness of Nomadic MEs is influenced by four psychological characteristics namely sense of curiosity, interest, risk taking, and risk avoidance. The contribution of this study lies in the identification of four substantial psychological factors that act as a foundation for innovativeness among nomadic micro entrepreneurs’ (MEs) in enhancing their business growth.

Product Reliability and Warranty Period as a Cost-Forming Factors

Abstract: The relevance of this study is determined by the fact that, in modern conditions, the manufacturers of high-tech products offer long-term warranty service for their products aiming at receiving the consumer. In turn, the frequency of warranty service depends on the probability of trouble-free operation of the product in a certain time interval. However, increasing the uptime of the products and increase the warranty period results in increased costs. Therefore, the purpose of this study is to develop a model that allows determining the impact of the following factors on the product cost: the reliability of the manufactured products and the term of their warranty. To achieve the goal of the research there has been determined the content of warranty service, has been introduced the integrated indicator of quality warranty services, and has been shown the level of products reliability as a dependence from the costs of their manufacturing and warranty service. The novelty of this study is estimation of the manufacturer's cost depending on the way of providing the warranty service, either by repair, or by complete replacement of the failed product. The research results provide competitive advantages to manufacturers of high-tech products since it enables to find the efficient period and intensity of the warranty service. Keywords cost structure warranty servicing warranty period reliability level probability of failure of the product unit cost JEL Classification M21 Introduction Every company is fighting for the consumer under the circumstances of modern market economy. To attract and retain consumers of their products, companies develop and offer a huge range of additional features that make the produced product more attractive. These features include favorable terms and conditions of payment, flexible system of discounts for customers, as well as a system of products warranty. The consequence of technical progress is the production of increasingly high-tech devices and mechanisms there are various requirements towards the level of their reliability. Consumers need assurance that the product will perform satisfactorily over the useful life of the product. There are many different aspects to warranty and these have been studied by researchers from many different disciplines. The higher the reliability requirements towards the product are, the higher the quality of warranty service is. In their turn, these aspects affect the manufacturer's costs. The warranty servicing costs vary from 2-10% of the sale price depending on the product and the manufacturer. As a result, warranty and product reliability are very important in the context of new product development (Deniaud et al. 2016). Reliability of a product conveys the concept of dependability, successful operation or performance and the absence of failures. It is an external property of great interest to both manufacturer and consumer. Unreliability (or lack of reliability) conveys the opposite. A more technical definition is the following: * The reliability of a product (system) is the probability that the product (system) will perform its intended function for a specified time period when operating under normal (or stated) environmental conditions (Blischke and Murthy 2000). * The reliability of a product gets determined by the decisions made during the pre-production stages (Front-end, Design, Development) and the production stage of the product life cycle (Murthy and Djamaludin 2002). Both warranty and reliability have received a lot of attention over the last fifty years (Murthi 2008). The area of warranty has been studied by researchers from many different areas such as economic, engineering, statistics and more. A number of techniques have been used as a method in solving warranty problem. In past few years, there has been an increased used of statistical methods instead of soft computing methods in warranty related applications. …

Efficiency of Energy Consumption as a Base for Sustainable Energy Sector

Abstract: Lithuania, as many other EU countries, encounters key challenges in three energy sector fields: energy independence, energy sector competitiveness and sustainable energy sector development. Such situation is determined by historical and political conditions, as well as by limited internal energy resources. In such context an importance of energy consumption efficiency pursuing country energy sector sustainability is highlighted. By implementing the long-term goals and tasks a country may seek to increase the efficiency of energy production, distribution and consumption, as well as to increase energy production from renewable and waste energy sources. The main objective of the paper is to analyze the efficiency of energy consumption, the factors influencing energy sector competitiveness and sustainability, and to assess the development soundness of the use of renewable energy sources in Lithuania. The paper discusses the main EU legal documents and their provisions regulating energy sector, analyze energy production and consumption efficiency data in Lithuania and reveal the economic effect of the use of renewable energy sources in Lithuania.

Corporate Restructuring as a Risk Treatment Method

Abstract: The article is aimed at the development of risk treatment methods. The author considers different risk treatment methods and proposes corporate restructuring as one of the methods. Corporate restructuring has not been seen yet as the method of risk treatment in risk management literature but the practice of its implementation in response to risk effects is obvious. The author describes risk parameters and different risk treatment methods which can be applied and point out corporate restructuring as one of them. The features of corporate restructuring as a risk treatment method are identified. The author proposes the algorithm of risk treatment on the basis of corporate restructuring and it can be looked as part of risk management of the company.

Exchange rate forecasting with information flow approach

Abstract: The purpose of this article is to assess exchange rate forecasting possibilities with an information flow approach model. In the model the three types of information flows are distinguished: fundamental analysis information flow through particular macroeconomic determinants, microstructure approach information flow through dealer clients’ positioning data, technical analysis information flow through technical indicators. By using regression analysis it is shown that the composed model can forecast the exchange rate, the most significant information flows are distinguished. The results lead to further development of the information flow approach as a tool to forecast exchange rate fluctuations.

Innovation in Accounting Tasks: Empirical Study in Two Professional Groups

Abstract: The aim of this study is to contribute to the knowledge on innovation in accounting tasks, from the point of view of two professional groups. Its goals are: evaluating the importance given by the professionals to accounting tasks; identifying whether there is convergence between the two professional groups, regarding the importance of the tasks; examining whether there is an association between the professionals’ individual characteristics and the importance they attach to the tasks. Two professional groups were surveyed: 105 financial officers of the top 500 Portuguese companies; and 412 Chartered Accountants. The results obtained allowed us to conclude that the respondents attach more importance to the traditional tasks, linked to the concept of a monetary-oriented accountant, and less importance to the more innovative tasks, related to business strategy; there is no convergence between the two professional groups in terms of the importance of the accountants’ participation in the strategic tasks. Regarding the association between individual characteristics and the level of importance assigned to the accounting tasks, we found an influence of the following characteristics: gender; academic degree of the professionals; and the institution where that degree was obtained.

The Conflict between Strategic Method Application and Theoretical Knowledge in Small and Medium Sized Companies: The Case of the Czech Republic

Abstract: The purpose of the paper and presented research is to discover the potential conflict between often used managerial methods and the recommended methods for small businesses to find the gap between theory and practice in order to support cooperation between entrepreneurs and the university in the area of management education. The survey was conducted as a two phase project, in the first phase with 529 SMEs and with 214 SMEs in the second phase in the Czech Republic in 2012–2013 within the own research project. The main findings, presented in this paper focus on the conflict between practical knowledge, used in small businesses, when only 48.2% of companies in the first phase and 54.21% in the second phase used some of the methods commonly taught at university level such as controlling, benchmarking or TQM.