WSEAS Transactions on Business and Economics

Print ISSN: 1109-9526
E-ISSN: 2224-2899

Volume 11, 2014

Notice: As of 2014 and for the forthcoming years, the publication frequency/periodicity of WSEAS Journals is adapted to the 'continuously updated' model. What this means is that instead of being separated into issues, new papers will be added on a continuous basis, allowing a more regular flow and shorter publication times. The papers will appear in reverse order, therefore the most recent one will be on top.

Volume 11, 2014

Title of the Paper: Application of Database Technology to Improve the Efficiency of Inventory Management for Small Businesses

Authors: Oksana Y. Iliashenko, Svetlana V. Shirokova

Abstract: Full, accurate and evident information about stocks is a key factor of successful inventory management process. Effective inventory management should include a comprehensive solution, based on mathematical methods and control of current balances and software. Such solution for small businesses should be effective and should not be too expensive. The paper shows an approach to using database technology for solution of inventory management problems of small businesses with both single-product and multi-product inventory models.

Keywords: Inventory management tools, support decision-making, OLAP tools, economic order quantity model, single-product inventory model, multi-product inventory model, SQL-instructions.

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #76, pp. 810-818

Title of the Paper: Models of Corporate Governance Applied to Businesses in the Iberian Peninsula Stock Markets

Authors: Ana Sardinha, Humberto Ribeiro, Raquel Alves

Abstract: This paper proposes to analyse models of corporate governance applied to businesses listed in the stock markets of the Iberian Peninsula, namely the ones of Lisbon and Madrid. The corporate governance subject is becoming increasingly important for businesses as it is difficult to manage the interests of every economic agents related to an organization. The corporate governance is characterized by a system in which organizations are managed and controlled with the objective to promote efficiency and competitiveness of businesses. This study is intended to examine the following issue: what are the determinants that may influence the choice of corporate governance models adopted by listed businesses within the Iberian Peninsula? To establish the determinants of the choice of model were selected nine variables that have differentiating characteristic between the models of corporate governance used by corporations in Portugal and Spain. Testing nine possible determinants, the sample employed consists of several businesses listed on the Iberian stock indexes PSI-20 and IBEX-35, over the years 2009 to 2011. The data was obtained through analysis of single annual and consolidated accounts from annual reports, including corporate governance reports. The statistical analysis was carried using the logistic regression model. The variables found to significantly influence the choice of corporate governance model in our study were: the sector of activity and firm size, contributing therefore to the justification of the choice of models of corporate governance adopted by Iberian businesses.

Keywords: Corporate governance models, PSI-20, IBEX-35, Portugal, Spain, logistic regression model.

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #75, pp. 801-809

Title of the Paper: Concession and Lease or Sale? A Model for the Enhancement of Public Properties in Disuse or Underutilized

Authors: Francesco Tajani, Pierluigi Morano

Abstract: Although in many European countries the enhancement of public properties constitutes a theme of primary importance in the current economic situation, almost never Public Administrations have appropriate skills to rationally evaluate the best modality of valorization. This paper develops and test an evaluation model to support decisions of Public Administrations involved in the identification of the best modality of enhancement (concession and lease or sale) of public properties in disuse and/or underutilized. The model can be applied to any type of public property, but this research is focused on religious cultural buildings in disuse, common in Italy both in big cities and in smaller towns. The assumption underlying the model is that, since the properties considered are complex buildings, generally characterized by large dimensions, the form of bilateral monopoly market is always verified. The application of the model to three concrete cases, concerning religious buildings in disuse located in different areas of Southern Italy, shows that the model is a tool of simple use, exportable in any territorial context. The paper must be attributed in equal parts to the authors.

Keywords: Valorization, religious buildings, public properties, sale, concession and lease, bilateral monopoly, market value.

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #74, pp. 787-800

Title of the Paper: Ranking of Housing Market Sustainability in Selected European Countries

Authors: Tiina Nuuter, Irene Lill, Laura Tupenaite

Abstract: The aim of this paper is to compare housing markets of selected European countries: the Baltic States, Spain and industrialized European countries with special reference to Estonia. The ranking of selected countries is based on concerns about the excessive home ownership which evidently is not consistent with economic development and acts as a barrier to increasing the quality and volume of the housing stock. An integrated analysis of housing market sustainability was performed using Multiple Criteria Decision Making Method (MCDM). A Decision Support System for Housing Sustainability Assessment (DSS-HS) was developed. The analysis of the ranking and assessment results allows recommendations to be made for improving the indicators in order to increase housing market sustainability. The case study presents an example of practical application to three Estonian counties.

Keywords: COPRAS method, home ownership, MCDM, sustainability of housing market.

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #73, pp. 778-786

Title of the Paper: Correlation Analysis and Model of the Regional Economic Resilience

Authors: Ondrej Svoboda, Tereza Klementova

Abstract: Some regions can be described as more or less resilient to the economic recession from the position of resilient theory perspective. The aim of this paper is to suggest model involving determinants explaining the resilience and thus contributes to the understanding of this concept and to effective decisions about appropriate instruments of regional policy. A group of indicators that could be useful as determinants of regional economic resilience was suggested. The analytic part of this work is created upon the NUTS 2 regional data sets and reflects the impacts of the 2008 economic crises. The main methodological attitude is processed by the correlation analysis and decision tree. The designed model is discussed with regards on operational programs in the terms of the EU’s Cohesion Policy. The results of the analyses confirm that Human Capital, Regional Economic Performance, Innovation and R&D Activity, Labor Market and Economic Structure of Region are very important determinants.

Keywords: Regional resilience, economic resilience of regions, employment, regional policy, regional development, decision tree method.

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #72, pp. 765-777

Title of the Paper: Improving the Efficiency of Projects of Industrial Cluster Innovative Development Based on Enterprise Architecture Model

Authors: Igor V. Ilin, Aleksei B. Anisiforov

Abstract: Analysis of the impact of architecture model of cluster management on the strategy of its innovative and investment development, ongoing innovation activities, the growth of innovative capacity and effectiveness of development projects due to the appearance of architectural synergy.

Keywords: Industrial cluster architecture, business architecture, IT architecture, cluster development projects, architectural model of development, effectiveness of development projects, architectural synergy

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #71, pp. 757-764

Title of the Paper: Valuation of the Target Company in the Process of the Mergers and Acquisitions using Discounted Cash Flow Method

Authors: Jaroslav Sedláček, Petr Valouch

Abstract: Mergers and acquisitions are a used and respected alternative to a company’s organic growth and they are a significant channel of capital redistribution. The actual process of company combinations is performed in more possible forms and it is affected by a number of factors of local, regional, national and global character, which may not lead to a successful end. It is an investment that does not occur in a company’s life very often. The process can be divided into three stages: preparation and plan; implementation; and integration. The key factor of the first stage is the establishment of the value of the target company as a basis for successful negotiations. The implementation stage is a stage of analyses. At the third stage the acquiring business manages the demanded changes in the acquired business. The aims of this paper are to analyse valuation methods and outline the procedure for using the discounted cash flow method adapted to the conditions of the Czech M&A market. Especially risk factors and their reflection in the valuation method are considered.

Keywords: Mergers and acquisitions; planning; implementation; integration; due diligence; target firm; methods of valuation; discounted cash flow method

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #70, pp. 747-756

Title of the Paper: Transformation of the Capital Market Stability Model under the Influence of the Financial Globalization

Authors: Rustam R. Akhmetov

Abstract: In the course of economic globalization a process of formation of the united financial market has evolved. The united market means a gradual merge of financial risks and increase of volumes and unpredictability of aggregate risk in the result of synergetic effect contained in the nature of financial market as of a nonlinear dynamical system. The article examines the factors of financial globalization that have had the author's opinion the greatest influence on the stability of financial markets in recent decades. On the basis of this analysis, we made an effort to set the parameters of the model the stability of the financial market in the form of a nonlinear stochastic differential equation. Basing on non-stability of a global financial market and under influence of globalization factors it was concluded that it is necessary to check the hypotheses on formation of a financial cycle apart from general business cycle.

Keywords: Financial globalization, securitization, derivatives, market stability, nonlinear dynamical systems

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #69, pp. 737-746

Title of the Paper: The Potential of Transitive Economies’ Growth Based on Innovative Strategy

Authors: Olga Korableva, Victoria Litun

Abstract: Estimating the potential of transitive economies it is essential to understand not only what the perspectives are but as well which strategy to follow to get the most considerable results. This paper proposes a strategy which can help countries like China, Russia etc. The purpose of this article is to present the way for further development that is based on the powerful tool for growth and sustainability – innovations. The aim is achieved through comprehensive analysis of the current state, strength and weaknesses of transitive economies. The work must be attributed equally to the two authors.

Keywords: competitiveness, economic growth, innovations, transitive economies, blue ocean strategy

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #68, pp. 725-736

Title of the Paper: Employees Perceptions about Knowledge Sharing Impacts on Organizational Practices

Authors: Maria José Sousa

Abstract: This article main objective is to identify the organizations processes which facilitate knowledge sharing, application and impacts on organizational practices. The research question for this study was: what are the impacts of the knowledge sharing processes on organizational practices? The research was qualitative and also quantitative. The qualitative approach involved semi structured group interviews with the goal to identify forms of knowledge sharing and collaboration among co-workers and also from document analysis on organizational evidences: reports, procedure sheets and manuals and also from observation grids filled during factory visits. These techniques were used to better understand the context and the processes they used to share knowledge within one organization from the heat water sector. The quantitative methodology was applied through a questionnaire filled in by workers from several sectors and departments of the organization. The study reveals as main findings the main forms used for knowledge sharing: suggestion boxes, several types of workshops and several transversal projects of improvement, quality and maintenance; and the main impacts of knowledge sharing in the organizational practices of Alpha organization.

Keywords: knowledge, organizations, organizational practices, sharing processes, case study, employees perceptions

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #67, pp. 718-724

Title of the Paper: Dominance Among Financial Markets

Authors: Sergio Ortobelli Lozza, Tomas Tichy, Filomena Petronio

Abstract: In this paper, we deal and evaluate the comparison problem among different financial markets using risk/variability measures consistent with investors’ preferences. First, we recall a recent classification of multivariate stochastic orderings consistent with preferences and we properly define the selection problem among different financial markets. Secondly, we propose an empirical financial application where multivariate stochastic orderings consistent with the non-satiable and risk averse investors’ preferences are applied to compare and evaluate the possible dominance among the most developed market in the world (the US stock market) and two European markets (the German stock market and the UK stock market). In this context, we propose an ex-ante and an ex-post evaluation of the dominance among country stock markets. Moreover, in both cases we evaluate the dominance, considering the “oldest” and “youngest” firms of selected countries over previous decade.

Keywords: Multivariate preferences, Stochastic Dominance, Financial Market comparison

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #66, pp. 707-717

Title of the Paper: Productivity and Profitability of the Czech Agricultural Sector After the Economic Crisis

Authors: Ondřej Machek, Jindřich Špička

Abstract: In light of the recent economic crisis, a particular emphasis has been placed on the measurement of productivity and performance of agricultural sectors worldwide. This article deals with the assessment of the performance of the Czech agricultural sector using three measures: multifactor productivity, economic value added, and financial performance. The authors also compared the development of the values of these indicators with the overall economic growth of the Czech economy. No significant relationship between the development of the agriculture and economy has been found. This finding is in agreement with the idea that agricultural growth does not necessarily move in the same direction as the GDP growth. The authors also observed a sharp drop of performance in 2008/2009 which has been due to the economic crisis which has hit all Czech, but also foreign industries and sectors. However, in recent years, the performance of the Czech agricultural sector has been increasing which suggest that the sector is recovering from the economic crisis.

Keywords: Total factor productivity, economic value added, financial performance, agriculture, Czech Republic

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #65, pp. 700-706

Title of the Paper: Ethnocentrism, Patriotism and Animosity Impact on Freedom of Competition and Business Activity

Authors: Sofia Anastasiadou, Lazaros Anastasiadis, Kaliopi Kalabouka, Giannoyla Florou

Abstract: The study seeks to analyses ethnocentric factors impact on the freedom of competition and business activity. Xenophobia, morality and rationality patriotism and nationalism, economic and war animosity influence one way or another, Greek students’ opinions towards freedom of competition in the era of a vast fiscal crisis in Greece.

Keywords: Implicative statistical analysis, freedom of competition low, consumer, ethnocentrism, patriotism, nationalism

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #64, pp. 692-699

Title of the Paper: Companies in Liquidation - A Model for the Assessment of the Value of Used Machinery

Authors: Benedetto Manganelli, Pierluigi Morano, Francesco Tajani

Abstract: The current economic crisis is creating serious global effects on the real economy, especially in terms of solvency and economic stability of many companies, forced to interrupt their activities and to initiate bankruptcy proceedings. In this case, the assessment of the value of the industrial machinery that can be reused is a problem that often arises. In the literature different approaches to estimate plant and industrial machinery are illustrated. Each method includes several specification and, in practice, only in exceptional cases, there are consistent data for comparison. The major problem consists in the identification and the valuation of the level of depreciation which intervenes in the definition of the value of used industrial machinery. In the present work an algorithm to determine in a rational manner the depreciation of used industrial machinery has developed. The procedure has its theoretical basis in the analysis of formal deductions of the value of new machinery. The model defined in this research considers the factors that contribute to decrease the original value of the machinery. Empirical formulas have been developed to estimate the market value of used industrial machinery on the basis of quantitative and qualitative analysis of depreciation functions. The interpretation and schematization of the results have led to the definition of value-time curves for the three main depreciation factors (age, income decay, obsolescence). The result is a flexible model for the evaluation of different types of machinery and a simply procedure, with a reduced number of variables to be taken into consideration. The paper must be attributed in equal parts to the three authors.

Keywords: Estimation model, value of used industrial machinery, depreciation factors, companies in liquidation

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #63, pp. 683-691

Title of the Paper: The Economic Development Evaluation of Czech Enterprises Financed by Venture Capital

Authors: Jaroslava Rajchlová, Anna Fedorová, Veronika Svatošová

Abstract: This paper presents results of an empirical study focused on the economic development of enterprises financed by venture capital. Each enterprise was analyzed with the help of several indicators including the volume of assets, sales, employee performance, ROE and ROA. Conclusions about the economic development are based on the thorough analysis of the changing observed indicators in each business. The overall economic development of selected enterprises in the observed time period was found to be positive.

Keywords: venture capital, economic development, sales, employee performance, return on equity, return on assets, netto fixed assets

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #62, pp. 675-682

Title of the Paper: The Impact of Global Trends at the Level of Macro Environment Dimensions on The Transformation of Travel Intermediaries: Case Of The Republic of Croatia

Authors: Iris Mihajlović

Abstract: In the first part of the paper the recent findings of numerous scholars from the domain of tourism were analyzed with emphazise on the impact of new technologies on business operations in tourism industry, pointing out its advantages and the role of innovative tools in the placement of products (packages) of travel intermediaries. Also, special attention is given to customization options the business subjects of tourist offer in the competitive market conditions which are aimed at innovations in the domain of contents and modes of product placement in tourism. The results obtained by empirical research on the impact of technological innovation and market changes to changes in tourism and the further transformation of the business-aimed specialization of travel agencies, which was conducted on a sample of 200 travel agencies operating in Croatia, indicate that the highlighted macro variables are very significant or significant to the the specialization of their business. Taking into account complementary role of new technologies in the business of travel intermediaries as a source of competitiveness in the dynamic market conditions, the results show that managers from the sample understand the significance of technology relevant to the performance and the continuity of business. Prominent macro variables are the key link in making decisions about the direction of specialization ogf travel agencies. The market and the technology have the powerful impact on specialization, particularly considering the increased competition that affects all business entities, including travel agencies.

Keywords: global trends, environment, ICT, transformation, specialization, travel intermediaries

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #61, pp. 663-674

Title of the Paper: Wavelet - Pair Copula Construction Inference for Financial Contagion

Authors: Marcelo Brutti Righi, Paulo Sergio Ceretta

Abstract: In this paper we propose a Wavelet - Pair Copula Construction approach for contagion identification. The method consists in filtering past marginal dependence, performing multiscale decomposition in marginal residuals, and estimating a Pair Copula Construction for each frequency scale of interest. We carry out these steps with daily data from U.S., German, Brazilian and Hong Kong MSCI indices. The procedure is realized for non-crisis and crisis (sub-prime and Eurozone) periods. We find results that indicate a rising in association for most relationships, representing presence of contagion effect during Sub-prime and Eurozone crises.

Keywords: Risk Analysis, Contagion, Wavelets, Pair Copula Construction, financial markets, dependence

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #60, pp. 648-662

Title of the Paper: Crisis Management Modeling

Authors: Marie Mikušová

Abstract: The goal of this paper is to present the elements of the issues of crisis management modeling. Knowledge of these elements is essential for the creating models of crisis management. At the beginning it is paid the attention to the ideas of theory of chaos that have been applied to crisis management. It also points to the need for the concept of the organization as a system. Furthermore, it dealt with the presentation and comparison of different concepts of crisis. There is emphasized the multiply approach to the crisis. The entities of the crisis are presented. The following barriers and limits in creating generally applicable (fits-all) models of crisis management mean a challenge not only for researchers but at the same time they make the creation of crisis management system in practice more difficult.

Keywords: Crisis, limit, management, model, system

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #59, pp. 635-647

Title of the Paper: The Business Model for the Sharing Economy between SMEs

Authors: Hyung Rim Choi, Min Je Cho, Kangbae Lee, Soon Goo Hong, Chae Ryeon Woo

Abstract: Because of the global economic recession, SMEs that are less competitive compared to conglomerates are facing difficulties in securing labor force, capital, and technology. As an alternative to address those difficulties, research is being conducted to introduce the “sharing economy,” in which activities that share, exchange, and lease resources in B2B transactions are carried out. However, the business model necessary for SMEs to actually introduce and utilize the sharing economy does not exist, which leads to other difficulties in introducing the B2B sharing economy. This research has presented the business model for the sharing economy that is necessary in the introduction and operation of the said economy among SMEs. In order to design the business model for the B2B sharing economy, this research has drawn the components needed to design the business model through a preceding study on existing business models. Based on this and the preceding study, this research has presented the business model, which can be introduced to the sharing economy among SMEs. In addition, following the presentation of the business model, the research has conducted a case study to confirm that the business model can explain the sharing economy.

Keywords: Sharing Economy, Business Model, Component, B2B, SMEs, Case Study

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #58, pp. 625-634

Title of the Paper: Public Procurement in the Field of Public Administration in the Czech Republic, Selected Aspects

Authors: Radek Jurčík

Abstract: This paper is dealing with the analyses of transparency of public procurement in the field of public administration in the Czech Republic and factors influencing transaction costs and transparency. It is analyses influence o administrative burden and transaction cost on transparency of public contracts. The study is providing towards to the Czech Republic which the one of member state of the European Union. This study and problems with transparency and transaction costs have been demonstrated on the analyses of legal environment and the practice and on sample of contracts awarded by public administration bodies. The public procurement is efficiency when is the balance between transparency (level of competition) and the transaction costs. In this article we concern with some factors of transparency of administrative procedures. According some point of views, there is traditional dominance of formal analysis of tender procedure. It is also an important economic (material) aspects of public procurement.

Keywords: Public procurement, factors of transparency, new European procurement directives, Anova model, public expenditure

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #57, pp. 615-624

Title of the Paper: Demand Forecasting in Food Retail: A Comparison between the Holt-Winters and ARIMA Models

Authors: Claudimar Pereira Da Veiga, Cássia Rita Pereira Da Veiga, Anderson Catapan, Ubiratã Tortato, Wesley Vieira Da Silva

Abstract: For business operations in retail companies which work with food products with short life cycle and perishables, the accuracy of forecast is of crucial importance because of the volatile demand pattern, influenced by an environment of rapid and dynamic response. In several studies in the literature, the choice of the most suitable forecasting model remains a central concern. In this context, this article aims to compare the performances between ARIMA and Holt-Winters (HW) models for the prediction of a time series formed by a group of perishable dairy products. As performance measures, metric analysis of the Mean Absolute Percentage Error (MAPE) and the Theil inequality index (U-Theil) were used. In this study, the HW model obtained better results regarding the performance metrics, having a better adjustment and capturing the linear behavior of the series.

Keywords: demand forecasting, ARIMA, Holt-Winters, food products

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #56, pp. 608-614

Title of the Paper: The Profit and Loss Account and the DuPont Analysis – Study Models of Performance in Companies Listed on BSE

Authors: Hada Teodor, Avram Teodora Maria

Abstract: This paper presents aspects of the study of financial performance determined for 64 companies listed on BSE on the basis of the profit or loss Account and on the DuPont model. The aim is to provide a framework for studying the performance by two complementary methods: the calculation of rates of return and the DuPont analysis, achieving also a case study sample of companies selected. In the introduction of the study there are presented items relating to the objective, research methodology and the innovations, while literature is being reviewed. In the case study we presented the method for determining the rate of financial, economic and commercial return, then, by applying the DuPont analysis, companies were ranked and the Pearson's correlation coefficient was determined for the study of factors that influence the profitability of the DuPont model. Deepening the study of factors that influence the financial performance of the model by calculating the Pearson correlation coefficient demonstrates, for the companies analyzed, a strong link between company size and profitability on the one hand and between equity finance and profitability, on the other hand, one thing positive and at the same time incentive for investors.

Keywords: profit and loss account, performance, financial return, economic return, return on sale, Bucharest Stock Exchange, the DuPont model

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #55, pp. 592-607

Title of the Paper: Angresano Criteria as One of the Evaluation Possibilities of the Economic Level: Case of the North Africa Countries

Authors: Ingrid Majerova

Abstract: North Africa is a very interesting region, not only from a historical or political point of view, but also in terms of economics. There are seven economies in this area: Algeria, Egypt, Libya, Morocco, Sudan, South Sudan and Tunisia. These countries are linked not only by a common religion (with the exception of South Sudan), and common history as well, the question is if the common link is economic level as well. This article deals with the comparison of the economic level of the six North African countries on the basis of macroeconomic indicators set by James Angresano, in the years 2007 to 2011. Given the scale of Angresano criteria, only some of states in this region were selected; South Sudan was excluded from the comparison, since it was only founded in 2011. The aim of the article is based on above criteria by comparison to determine whether the economic level of the economies is fundamentally different or not. Hypothesis about the level of economic diversity was formulated, which was confirmed on the basis of the examined criteria. In addition to the comparative method, the article also used the methods of description and analysis.

Keywords: Angresano criteria, economic level, economic growth, economic stability, income distribution, trade balance, quality of life

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #54, pp. 582-591

Title of the Paper: The Assessment of the Effectiveness of Reforms in Various Countries by the Integral Index of Reforms and Prosperity

Authors: Samson Davoyan, Ashot Davoyan, Tatevik Sahakyan

Abstract: The governments of different countries developed programs to implement reforms and try to surmount challenges related to them, but those countries implement the programs with different comparative efficiency. We suppose that the results of those reforms are expressed in various indexes by different international and non-government organizations. On the purpose for our research we consider more important the following indexes, as their integrity will represent the features of the social-economic development of each country. From this point of view, during the last decades there have been various indexes developed by different international organizations and non-government corporations (The Bertelsmann Stiftung’s Transformation Index, Global Peace Index, Global Innovation index, KOF Index of Globalization, Human Development Index, The Corruption Perception Index), which are used to assess the institutions of different fields. Based on the new methodology, suggested by us, we have tried to create more integral index based on the following indexes, which trend will give an opportunity to assess the comparative efficiency of various reforms for different countries (35 developing countries and countries in transition and 20 developed countries).

Keywords: Innovation, peace, global, reforms, competitiveness, freedom, prosperity, democracy, corruption, globalization

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #53, pp. 571-581

Title of the Paper: Advanced Study of Project Ownership Challenges in Research Organisation

Authors: Matti Kutila, Maria Jokela, Serena Fruttaldo, Roberto Montanari, Nereo Pallaro

Abstract: This study focuses on discussing and analysing the results of the project steering group maturity review executed at VTT in 2012 and 2013. The first survey was conducted for 50 projects whose complexity level varied between medium and high. One of the major outcomes of the study is the definition and role of the project owner in multi-national projects co-funded by more than one organization. These types of projects typically include a large consortium in which project manager needs to be competent to lead both internal and external people. The results of this study promote the development of communications between line organization and project managers, which is also valid when managing the consortiums including external partners. The second study was performed by interviewing 3 project managers, Chief Financial Officer, 2 line managers and project procedure developer at VTT. The results were benchmarked against 7 other organisations in Europe. One major outcome of the study was that VTT should pay more attention on project life-cycle planning. In overall, theanalysed methodologies arewell competitive with the counter organisations. The results of the review lead us to consider ways to develop and try out new project management practices on the DESERVE-Artemis project. The project has a multi-national feature, including 25 European automotive manufacturers and their suppliers and research organisations working together. One example is the method of mentoring young talents in a project management career with close collaboration between the steering group representative of VTT and the young project manager. In this article, the role of the project owner as a supervisor and mentor of a project manager has been examined.

Keywords: project manager, consortium, project owner, communication, management, steering group, DESERVE, ADAS

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #52, pp. 562-570

Title of the Paper: Dual versus Triple Sourcing: Decision-Making under the Risk of Supply Disruption

Authors: Hoda Davarzani, Andreas Norrman

Abstract: This paper studies three different strategies of sourcing. The whole process of this research including the problem definition is exactly based on a real case condition. This paper model sourcing process of required parts and material for a product which is manufactured under the license of Peugeot Company, the mother manufacturer in France. Based on the agreement between Peugeot and the manufacturer in Iran, all the parts should be supplied from a certified suppliers of the mother company. This paper investigates a single product setting in which a firm can source from multiple suppliers. One supplier has unreliable capacity but it is the first choice of supply because of being in partnership with Peugeot and the opportunity for future cooperation, while other suppliers are reliable but with lower product quality and not in direct relation with Peugeot. The addressed context, in which a case study has been made, is disruption due to sanctions which cause failure in the sourcing from the unreliable supplier. The main focus of current work is on defining the share of each supplier, and finding suitable sourcing policy (single, dual or triple sourcing) to apply for different probabilities of disruption. The paper is concludes in sensitivity analysis of different parameters such as set-up cost, and reveals their impact on final suggested strategy of sourcing.

Keywords: Supply Chain Disruption, Dual-Sourcing, Triple-Sourcing, Supply Disruption, Sanctions, Real Case Modeling

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #51, pp. 550-561

Title of the Paper: The Effects of Technopoles and Science Parks on Regional Economies in Italy

Authors: Massimiliano Ferrara, Roberto Mavilia

Abstract: The increasing interest of EU towards specific structures devoted to stimulate innovation as technopoles (TP) and science parks (SP) obliges to investigate their role in the overall economic context. The paper examines how performances and characteristics of technopoles and science park affect various aspects of Italian regional economies at NUTS 2 level. Our main aim is to assess the importance of TP and SP in stimulating growth through innovation, as well as entrepreneurship in the area they are established. First, we test the strength of the relationship between poles activities and the performance of firms located in the same region. Second, we investigate whether the presence and number of poles have an impact on both incentives to entrepreneurship and survival rates within their respective region. Finally, we shift our focus to each specific structure in order to test how their characteristics affect market performance of associated firms. Each of the three parts include also an aggregation of results by macro-area. It is important to note how empirical research is mostly descriptive, notwithstanding we are able to deliver a few useful insights that might be relevant to public decision makers.

Keywords: Technopoles, Science Parks, Growth, Patents, Entropy

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #50, pp. 537-549

Title of the Paper: Influence of Economic Development Paradigm on Enterprise Performance Measurement and Management System

Authors: Veronika Burešová, Lilia Dvořáková

Abstract: There is no enterprise management area which has not changed thanks to global economy development. Also the enterprise financial management is no different case. Still more intensive attention of academic and business sector is devoted to enterprise performance measurement and management. Performance measurement and management in accordance with strategic decisions – decisions about goals, strategies in an enterprise together with enterprise value creation and management is considered to be a key factor for the stakeholders which determines the competitiveness level of an enterprise in a long-term period. The target of this paper is to present the results obtained by qualitative research which was focused on mapping, identification, analysis and generalization of key changes in economic development paradigm and their reflection in financial management – specifically in enterprise performance measurement and management. The current shape and future development directions of concepts, methods and tools for enterprise performance measurement and management are discussed in worldwide context. The most significant advantages and benefits are taken into account and compared to the weaknesses and limitations of the most often used ones. The paper summarizes the results of a partial research within the project SGS-2013-40 „Paradigm of Development in the 21st Century and its Impact on the Behaviour of Economic Entities“.

Keywords: Balanced Scorecard, Economic Development Paradigm, Enterprise Performance, European Foundation For Quality Management, Financial Management, Value Based Management

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #49, pp. 525-536

Title of the Paper: Volatility Forecast Combination of Brazilian Selic Interest Rate and Exchange Rate by Means of Principal Component Analysis

Authors: Lizandra Salau Da Rocha, Adriano Mendonça Souza, Roselaine Ruviaro Zaninni, Meire Mezzomo

Abstract: Using volatility models for macroeconomic variables can provide more efficient results than models which estimate the average of the process. In this context, the purpose of this research was to evaluate the efficiency of individual models and combination models in forecasting the Brazilian SELIC interest rate and exchange rate between January, 1974 and June, 2012 and from January, 1980 to May, 2012, respectively. The analysis of the series confirmed the presence of volatility in those periods, where Brazil’s economic scenario, marked by both internal and external crises, was decisive for such variance. For this purpose, joint modeling was used for the average (ARIMA) and variance (ARCH, GARCH, EGARCH, TARCH) of the process. The results showed that, in general, the performance measures considered (MAPE, MSE, and U-THEIL) are better for forecast combinations. In addition, forecast combinations by PCA using different kinds of weighting were not conclusive for the kinds of weighting used. This shows that when forecast combination by the PCA method is performed, the best alternative is to use more than one type of PCA in order to obtain the best results.

Keywords: Time Series, Volatility Models, Selic Interest Rate, Exchange Rate, Forecast Combination, Pca Method

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #48, pp. 514-524

Title of the Paper: A Consideration of the Factors Influencing Tourism Development in Relation to Biodiversity Conservation

Authors: Maurizio Lanfranchi, Carlo Giannetto, Angela De Pascale

Abstract: We can define the territorial heritage as a product that shaped its identify in the mixing of environmental, building and anthropogenic components. Nowadays, the traditional theories of development, based on an unlimited economic growth consider “territory” in more and more reducing terms. If on the one side it has produced a fast growth, on the long term it has caused environmental and social degradation. Tourism can represent an essential component in the creation of competitive advantage of a specific area, mostly in its sustainable dimension. Nevertheless, in an economic analysis of tourism based on natural resources, its distinctive feature is that natural resources are an input of productive process, enter tourist utility function and produce a trade-off between the quantity of the resource used for tourism and the quality of its supply. The importance of this relationship results above all respects the optimal use of resource, in particular when the tourist preferences are characterized by “aversion to crowding”. Evaluating tourisms we can see that a tourism based on natural resources is considered a snob-good, so that the quality of a tourist site decreases by crowding of natural resources. In this perspective, this study tries to focus on how the quality of resources is inversely proportional to its degree of crowding and, consequently, as in the tourism sector there is an economic incentive to conservation.

Keywords: Rural tourism, sustainable tourism, aversion to crowding, conservation of resources, Mediterranean islands, rural development

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #47, pp. 508-513

Title of the Paper: Comparing Regions´ Ranking by MCDM Methods: The Case of Visegrad Countries

Authors: Eva Poledníková

Abstract: The paper solves the problem of an alternative access to quantitative evaluating of differences in the level of socio-economic development of regions in Visegrad Four countries (V4). The aim of the paper is to define the position of NUTS 2 regions in the period 2000-2010 by utilizing methods of Analytic Hierarchy Process (AHP), Simple Additive Weighting (SAW) and Technique for Order Preferences by Similarity to an Ideal Solution (TOPSIS). The sense of applying the methods will be setting the rank and mutual positions of NUTS 2 regions reflecting their socioeconomic development reached for the year 2000, 2005, 2010 based on selected regional data (criterion). The AHP, SAW and TOPSIS are concrete multicriteria decision-making methods (MCDM) which use the hierarchy of elements and ranking the alternatives according to utility and distance functions. Based on the application of methods we can gain detailed view on the regional development of regions by way of quantitative multidimensional characteristics which can lead to more precise evaluation of the socioeconomic disparities among NUTS 2 regions.

Keywords: AHP, Cohesion policy, Multicriteria decision-making methods, Pairwise comparison, Regional disparities, SAW, TOPSIS, Visegrad Four

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #46, pp. 496-507

Title of the Paper: Fixed Assets-Infrastructure and Financial Health in Hospitality Industry: A Chaotic Effect in Emerging Markets

Authors: Fernando Juárez

Abstract: The influence of property, plant and equipment (Fixed Assets) and the quality of infrastructure on return was analyzed in the hospitality industry in emerging markets. The analysis unit was Colombia, a member of the CIVETS emerging market group. Financial healthwas determined by the relationships among return on fixed assets ratio,fixed assets net worth and fixed assets turnover ratios. Besides, the degree of accomplishment of the government plans to improve the quality of infrastructure was considered an indicator of an adequate infrastructure. Transformation by Hénon map equations were applied to data and a recurrence plot, phase space and recurrence quantification analysis were obtained. It was determined the influence of fixed assets net worth and turnoveron the return on fixed assets, and then, the influence of infrastructures on return on fixed assets. A non-linear, non-monotonic relationship existedamongreturn on fixed assets, fixed assets net worth and fixed assets turnover ratios, making investment decision difficult. An adequate development of infrastructure tended to relax the parameters of recurrence, slightly promoting a more steady development of the firms.

Keywords: Hospitality industry, fixed assets, infrastructure, financial health, recurrence, chaos, emerging markets

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #45, pp. 488-495

Title of the Paper: Factors Associated with Intention to Use Online Surveying

Authors: Dino Pavlić, Mario Jadrić, Maja Ćukušić

Abstract: Researchers face a number of challenges while provisioning for successful research related to technological and methodological aspects of online surveying tools. In this paper we consider factors that can influence and lead to successful use of online surveys. In order to determine the extent at which these factors are associated with the intention of using online surveys, the research model was tested. Data was collected by using online survey tool from 45 business organizations that use online research as part of their regular marketing activities, as well as 322 undergraduate students enrolled in business related courses that use online survey tools for preparation of their final papers. In line with the relevant findings related to key influencers, regression analysis reveals that subjective norms and perceived usefulness are related to intention to use online surveying for both groups of respondents.

Keywords: Online Survey, Web, Students, Business Organisations, Subjective Norms, Perceived Usefulness

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #44, pp. 477-487

Title of the Paper: An Application of Real Option Analysis for the Assessment of Operative Flexibility in the Urban Redevelopment

Authors: Pierluigi Morano, Francesco Tajani, Benedetto Manganelli

Abstract: The high variability of market prices and the uncertainty that, even in restrained timeframes, is characterizing the general economic situation, have led real estate operators to a prudent attitude, who tend to postpone or at least stagger the start of the initiatives on hold of more stable conditions. In this context it is appropriate to use evaluation tools enable to enhance the investment capacity to be adapted to possible changes of the conditions initially hypothesized. In the present research Real Options Analysis (ROA) is applied to the evaluation of an investment in urban redevelopment of a former industrial complex. The result obtained shows the efficacy of the instrument. Assuming that the entrepreneur considers affordable the implementation of the initiative if the outcome of the discounted cash flow analysis is at least equal to a threshold value calculated as a percentage of revenues, the application of ROA returns an extended NPV that meets this constraint, whereas the use of traditional NPV suggest to abandon the project idea. The binomial approach used also allows to accurately monitor the project's development, correlating it to the evolution of the market. The work must be attributed in equal parts to the authors.

Keywords: real options, binomial model, urban redevelopment, risk analysis, financial feasibility

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #43, pp. 465-476

Title of the Paper: Key Input Factors for Discounted Cash Flow Valuations

Authors: Eva Kramná

Abstract: Business valuation becomes requisite not only because of the recent trend of mergers and acquisitions but of course regarding to identification of economic value creation sources. This paper examines weighted average cost of capital and terminal growth rate as the key input factors that is needed for discounted cash flow valuation and can alter the valuation results considerably. A practical example of this implication is given using sensitivity analysis. A special emphasize is being put on the overview of methods that are used by appraiser´s in nowadays Czech practice to calculate the equity cost. The following part of analysis is focused on investigation of the inherence of the fundamental assumptions that led appraisers to determination of terminal growth rate, the rate that influence the business value considerably.

Keywords: Business Valuation, Cost Of Capital, Discounted Cash Flow, Sensitivity Analysis, Terminal Growth Rate, Equity

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #42, pp. 454-464

Title of the Paper: Mapping of Environmental Degradation in Regions and States of Brazil

Authors: Nelson Guilherme Machado Pinto, Daniel Arruda Coronel, Bruno Pereira Conte

Abstract: The objective of this study is to measure the environmental degradation in states and regions of Brazil in order to map this phenomenon throughout the country from the construction of a Degradation Index (ID). Data were calculated for 137 Brazilian mesoregions. Thus, it was calculated the ID average for the 26 states and the Federal District and for the five regions that comprise the Brazilian territory. The Degradation Index in the country was approximately 57%, which shows that more than half of the country is degraded. The North and Midwest regions are the most degraded in the country. The results support the premise that regions with higher levels of poverty are more degraded, which is the case of the Northern Region. In addition, another hypothesis that environmental degradation is under direct influence of agricultural activities is also confirmed in the Midwest Region.

Keywords: Environmental Degradation, Degradation Index, Brazilian states, Agricultural, Poverty, Agroecology

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #41, pp. 442-453

Title of the Paper: The Impact of Different Styles of ‘Personal Knowledge Management’ and ‘Leadership’ on ‘Organisational Performance’: A Case of Healthcare Industry in Thailand

Authors: Vissanu Zumitzavan

Abstract: Today’s business requires top management to be capable of competing successfully in the context of globalisation, which provides not only opportunities but challenges. Different styles of personal knowledge management and leadership contribute to an organisation’s ability to survive. However, there is insufficient research into top management’s approach to conveying and confirming learning in small and medium enterprises,particularly the hospitality industry. This study scrutinises the relationship between top management’s personal knowledge management and leadership styles and sustaining learning in the organisation, and consequently increasing organisational performance. Hospitals in Thailand are taken as a case study. A quantitative research method was applied. Pilot studies ensure reliability and validity. Questionnaires,covering demographics, number of employees, personal knowledge management, leadership styles and organisational performance, were used to collect data, and different statistical methods were used to analyse it. 1,000 questionnaires were distributed to the top management of hospitals in Thailand, with a return of 539, a response rate of 53.90%. The findings indicate that personal knowledge management and leadership styles are associated with organisational performance. In addition, results show that the association between personal knowledge management and organisational performance is mediated by the leadership style.

Keywords: Human Resource Management, Knowledge Management, Leadership Styles, Organisational Development, Organisational Performance, Personal Development, Personal Knowledge Management

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #40, pp. 430-441

Title of the Paper: Process Capability Indices for Non-Normal Data

Authors: Martin Kovářík, Libor Sarga

Abstract: When probability distribution of a process characteristic is non-normal, Cp and Cpk indices calculated using conventional methods often lead to erroneous interpretation of process capability. Various methods have been proposed for surrogate process capability indices (PCIs) under non-normality but few literature sources offer their comprehensive evaluation and comparison, in particular whether they adequately capture process capability under mild and severe departures from normality, and what is the best method to compute true capability under each of these circumstances. We overview 9 methods as to their performance when handling PCI non-normality. The comparison is carried out by simulating log-normal and data and the results presented using box plots. We show performance to be dependent on the ability to capture tail behavior of the underlying distribution.

Keywords: Process, Capability, Index, Distribution, Method, Transformation, Asymmetric

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #39, pp. 419-429

Title of the Paper: Monetary Policy and the Chaotic Structure of Net Cash Flow from Investment-Operating and Liquidity

Authors: Fernando Juárez, Fernando Mesa, Yolima Farfán

Abstract: Monetary policy seeks to promote economic expansions or contractions by managing interest rates or money supply. The impact of these mechanisms on businesses depends on their ability to make predictions about the development of the market and the performance and profitability of their projects. Also, interest rates impact their ability to raise funds for operations, forcing them to make changes in liabilities, operations, investments and liquidity. However, many factors affect the investments, operations and liquidity of companies and it may be that economic expansion does not result in a gradual increase in the operation or investment of companies. The unpredictable evolution of the economy leads companies to adopt conservative strategies to avoid short-term indebtedness. Monetary policy should take into account the chaotic relationship existing between the assets of companies, investments, operations and liquidity; decreasing interest rates or increasing the money supply act upon a complex structure of financial relationships in companies, resulting in high unpredictability.

Keywords: Chaos, Monetary Policy, Net Cash Flow From Investment, Net Cash Flow From Operating, Working Capital

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #38, pp. 405-418

Title of the Paper: Time-Varying Behavior of Long-Run among Stock Markets in Western Europe

Authors: Paulo Sergio Ceretta, Marcelo Brutti Righi, Alexandre Silva Da Costa, Fernanda Maria Muller, Janaina Ottonelli

Abstract: This paper aims to investigate the potential time-varying behavior of long-run stock market relationship in Western Europe Markets (DAX, FTSE100 and CAC40). To do this we apply the Engle-Granger methodology with and no structural breaks. It is shown that indices from these three markets are cointegrated and the change in long-term relationship between them is more unstable for DAX/FTSE100. Also we identified that there is an opposite relationship in long-term changes in these markets, i.e., when the relationship between DAX/CAC40 weakens the relationship between DAX/FTSE100 intensifies.

Keywords: Cointegration, Stock Markets, Structural Breaks, Engle-Granger, Long-Rum, Crisis

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #37, pp. 398-404

Title of the Paper: A Hybrid Fuzzy AHP-DEA Approach for Assessing University Performance

Authors: Quang Hung Do, Jeng-Fung Chen

Abstract: In recent years, with the expansion of existing institutions as well as the establishment of new ones, higher education institutions have suffered the problem of declining available resources. Each university must assess the performance of its critical business units to measure effectiveness and efficiency. The purpose of this study is to assess university performance. In this study, we apply the fuzzy analytic hierarchy process (Fuzzy AHP) and the Data Envelopment Analysis (DEA) model with an assurance region (AR) for measuring the efficiency scores of universities. In the first phase, the fuzzy AHP is employed to get the weights of output indicators. The derived weight ranges are then used for the AR to allow weights varying within a region determined by lower bounds and upper bounds. In the second phase, the DEA with AR approach measures the performance of Vietnamese universities to illustrate the approach. The framework may be a useful tool by which institution managers may improve their performance levels and effectively allocate resources.

Keywords: Data envelopment analysis, Higher education, Fuzzy theory, Analytic hierarchy process, Higher education institutions, Performance assessment, Vietnamese institutions

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #36, pp. 386-397

Title of the Paper: Factors of Business Growth: A Decomposition of Sales Growth into Multiple Factors

Authors: Ondřej Machek, Martin Machek

Abstract: The growth is an important stage of lifecycle for all for-profit organizations.The sources of business growth have been subject to a considerable academic attention. At the same time, growth of sales is a normal aspect of the phenomenal growth of a company.In this paper, we extend a previously created model of business growth which has been based on the analysis of two terms: the average bill and the frequency of visits, and their impact on the overall sales growth. We identified fourkey factors affecting growth of sales over time: labor productivity (sales-per-worker), labor intensity (workers-per-assets), capital intensity (assets-per-customer) and frequency of visits (customers per time unit).Since these factors are in a multiplicative form, we also proposeda logarithmic decomposition of business growth into a sum of partial factors in order to examine the contribution of the individual factors to the total sales growth.We also illustrated the use of the model on a case study of a company operating in the field of electricity sales in the Czech Republic. The model is straightforward and suitable for management of small and medium sized companies and can be used in the education of entrepreneurs as well.

Keywords: Business Growth Factors, Average Bill, Frequency of Visits

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #35, pp. 380-385

Title of the Paper: Risks Assessment in Real Estate Investments in Times of Global Crisis

Authors: Chiara D’Alpaos, Rubina Canesi

Abstract: Aim of the paper is to provide a novel valuation model to address risk and uncertainty in property investment decisions. When the future is uncertain and investments are durable and illiquid, the decision to invest at a certain point in time and the correct assessment of risks are key issues. In times of global financial crisis, investors need to know how to measure risks and identify the relationship between risks borne and risk premiums demanded. Increases in idiosyncratic and systematic risk lead developers to abandon/delay investments because de facto they feel not confident in projects riskiness and market values assessed by professionals. Risks evaluation is often left to the sensitivity and discretion of valuers. Rigorous risk assessment measures, based on mathematical algorithms, are here presented. We provide an operational framework to address risk and uncertainty by an integrated approach that can be easily understood by third parties and applied to different property types. The algorithms here proposed allow investors to evaluate risks and opportunities taking into consideration all the different phases of property investment projects and related risks. Investors, with different time patterns of income and desired consumption, will be therefore enabled to determine the risks they can tolerate, the return they need and its timing.

Keywords: Real Estate Investments, Uncertainty, Risks Assessment

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #34, pp. 369-379

Title of the Paper: The Impact of Different Styles of ‘Learning’ and Categorisations of ‘Organisational Strategies’ on ‘Organisational Performance’: A Case Of University Industry in Thailand

Authors: Vissanu Zumitzavan, Tudsuda Imsuwan

Abstract: In anticipation of the ASEAN Economic Community (AEC) in 2015, individual members must prepare for the changing environment through economic development, at the same time reducing the differences amongst them. In particular, universities play a vital role in transferring and distributing knowledge to organisational members. Thailand is one of the AEC members, and this study scrutinises the relationship between top management’s learning styles, organisational strategies and organisational performance. Universities in Thailand are taken as a case study. A quantitative research method was applied. Pilot studies tested reliability and validity. Questionnaires were used to collect data, and different statistical methods were used for analysis. Survey questionnaires were sent to all 198 universities in the country, and a total of 135 completed questionnaires received, amounting to the impressive response rate of 68.18 per cent. The questionnaires, distributed to the top management of the universities. The findings indicate that learning styles and organisational strategies are associated with organisational performance. In addition, results show that the association between learning styles and organisational performance is mediated by the organisational strategies.

Keywords: Learning Styles, Organisational Development, Organisational Performance, Organisational Strategies, Personal Development, Strategic Management

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #33, pp. 359-368

Title of the Paper: Modelling of Maastricht Convergence Criteria Influence on Economic Growth: An Empirical Study of Visegrad Group Countries

Authors: Kateřina Dvoroková, Martin Hodula

Abstract: Since creation of the Euro Area the fulfillment of the Maastricht criteria is the exhaustively defined condition for the adoption of the euro. It is now largely accepted that the Maastricht norms reinforced by revised Stability and Growth Pact, Fiscal Compact, Six-pack, Euro Plus Pact have imposed serious macroeconomic constrains on economic performance by not taking into account specific problems of particular countries. In 2008, most of the European Union member states experienced significant growth deceleration and this systemic crisis has certainly affected the convergence process. Thus this paper aims to evaluate the Maastricht criteria influence on real convergence and to show how recent crisis affected the real convergence process in Visegrad Group countries to the Euro Area average economic level.The model is calculated using panel regression method with multiplicative dummy variables and the model parameters are estimated by GLS estimator. From this analysis and using panel data estimation techniques, it is possible to detect any significant influence of the Maastricht convergence criteria on real convergence.

Keywords: Economic convergence, Crisis, Euro Area, GLS estimator, Panel data analysis, Visegrad Group

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #32, pp. 350-358

Title of the Paper: The Effect of VAT on Productivity in China-Based on the SFA Model Test

Authors: Jiang Yan Feng

Abstract: This paper adopts trans-log production function based on the SFA model, empirically test how the change of the proportion of the value added tax impacts on each part of China’s productivity. The results show: that, in tax structure, if the proportion of the value added tax is higher, the more conducive to the improvement of production efficiency. But it is not good for the technical efficiency and scale efficiency. This means the effects of value added tax on productivity is complex in china. We suggest, in the design of the VAT system, we should pay more attention to its influence on productivity. For example, implement value added tax subsidy for technology research and development (R&D).Focus on the adjustment effect of value added tax on the specialized division of labor.

Keywords: The proportion of the value added tax, Production efficiency, Technical efficiency, Scale efficiency

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #31, pp. 339-349

Title of the Paper: Securitization and Monetary Transmission Mechanism: Evidence from Italy (1999-2009)

Authors: Milena Lopreite

Abstract: This paper investigates credit supply endogeneity in the Italian environment from 1999 to 2009. The study aims to shed more light on the relationship between securitization and the Italian monetary transmission mechanism during the two most recent financial crashes: the dot-com bubble burst (1998-1999) and the sub-prime mortgage crisis (2008-2009). Recently many works are focused on how securitization affects the relationship between credit channel and monetary policy. Altunbas et al. (2009) conclude that banks’ securitization increases loans supply insulating banking system from negative shocks of monetary policy. The empirical results show that securitization increases credit supply endogeneity reducing the effect of monetary policy on the Italian banking system.

Keywords: Banking Behavior, Monetary Transmission Mechanism, Securitization, Credit Supply Endogeneity, Economic Cycle

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #30, pp. 328-338

Title of the Paper: An Improvement the Accuracy of Grey Forecasting Model for Cargo Throughput in International Commercial Ports of Kaohsiung

Authors: Chia-Nan Wang, Van-Thanh Phan

Abstract: Based on the grey theory, grey prediction models, which are GM (1, 1), have been adopted to predict the cargo throughput and modified GM (1, 1) using Fourier series called “FRMGM (1, 1)” for improving the accuracy of forecast model. A forecasting the cargo throughput in the international commercial port of Kaohsiung from 2013-2015 has also been conducted based on the previous data to serve as a reference for port manager in making development plans and construction as well as orienting development in the future. All data source is collected from the Ministry of Transportation and Communication of Taiwan. Through simulation results, this study showed that both of two models are suitable but the FRMGM (1, 1) is the excellent model in forecast with average accuracy of predict is 100%. Hence, the FRMGM (1, 1) model is strongly suggested for forecast the cargo throughput in the port of Kaohsiung.

Keywords: Cargo throughput, grey forecasting model, international commercial ports, Kaohsiung

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #29, pp. 322-327

Title of the Paper: Sigma Versus Beta-Convergence in EU28 in Financial Crisis and Post-Crisis Period

Authors: Kateřina Dvoroková

Abstract: This paper focuses on evaluation of the impact of the global financial crisis on the process of real convergence within the EU28 economies. The beta-convergence approach is verified by the use of cross-sectional linear regression analysis. The sigma-convergence is tested by standard deviation of real GDP per capita. The aim is to verify the hypothesis that the beta- and sigma-convergence (β- and σ-convergence) approaches for the study of real convergence lead to different conclusions in the period 2001-2012.

Keywords: sigma-convergence, beta-convergence, cross-sectional analysis, EU, financial crisis

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #28, pp. 314-321

Title of the Paper: Stock Market Performance and Modern Portfolio Theory: Case on Malaysian Stock Market and Asian Indices

Authors: Noor Azlinna Azizan, Shahryar Sorooshian

Abstract: Stocks market performance measurement has long been regarded as the most interesting part in investment. Many new methods emerge every year but most of these are rooted from Modern Portfolio theory by Harry Markowitz. In this research paper, we have used the efficient frontier from modern portfolio theory to determine the best stocks performance in KLCI index from 2006-2010. The data is compared to Sharpe performance measurement and we’ve discussed on how the best performers under efficient frontier do not agree with the result of best performers under Sharpe performance measurement. We have extended our study to look into Asian Indices include Japan, India and Hong Kong while setting the US market as our benchmark by using risk and return, together with coefficient of variance to rank the indices. We have also argued on the highest risky index. To complete the study, we’ve also used Johansen co-integration test to envisage the Asian indices market direction and economy influence. We have also discovered that most of the Asia markets co-integrate and follow Japanese market (N225) rather than the US market (S&P500).

Keywords: Stock Market, Malaysia, Asia, Case Study, Index, Japanese Market, Portfolio Theory

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #27, pp. 303-313

Title of the Paper: Pricing and Service Decisions in a Dual-Channel Supply Chain with Manufacturer’s Direct Channel Service and Retail Service

Authors: Lisha Wang, Jing Zhao

Abstract: This paper studies pricing decisions and service decisions of a product in a dual-channel (i.e., the tradi- tional retail channel and direct online channel) supply chain consisting of one manufacturer and one retailer. We consider two types of channel pricing decisions (i.e., consistent pricing and inconsistent pricing) in the scenari- o which the manufacturer holds more bargaining power than the retailer and thus as the Stackelberg leader. By applying a game-theoretical approach, corresponding analytic equilibrium solutions are obtained. At last, we use numerical examples to compare the analytical results and illustrate the impacts of the degree of customer loyalty to the retail channel on the manufacturer and the retailer’s optimal prices, optimal service levels, maximal demands and maximal profits.

Keywords: Dual-Channel, Direct Channel Service, Retail Service, Consistent Pricing, Inconsistent Pricing, Pricing And Service Decision

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #26, pp. 293-302

Title of the Paper: Positioning of Czech Accountants towards IFRS Implementation

Authors: Marie Paseková, Zuzana Crhová, Jiří Strouhal, Hana Řezanková

Abstract: The paper aims to ascertain the level of harmonization of accounting in small and medium enterprises in the Czech Republic and the impacts arising from the harmonization process. On the basis of the conducted survey, companies show a reserved interest in reporting according to IFRS. As a decisive reason for adopting IFRSs as a reporting framework for a company the adoption shall brought out some gains. Only minority of companies considers the greatest advantage for using IFRS in the comparability of financial statements, strengthening the credibility of financial statements and strengthening the prestige of the business.

Keywords: International Financial Reporting Standards, Financial Statements, Small and Medium-sized Enterprises, Financial Reporting, Harmonization, Czech Republic

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #25, pp. 283-292

Title of the Paper: The Impact of Different Styles of ‘Leadership’ and Levels of ‘Organisational Innovation’ on ‘Organisational Performance’: A Case of Hospitality Industry in Thailand

Authors: Vissanu Zumitzavan, Sarinthree Udchachone

Abstract: In the rapidly changing business environment, organisations call for managers capable of adopting innovative knowledge to participate in the digital era. In this research, a total of 419 completed questionnaires were received from managers of hotels in Thailand,exploring the relationship between the demographics of respondents, leadership styles, organisational innovation, and organisational performance. The findings indicate that leadership styles and organisational innovation are associated with organisational performance. In addition, results show that the association between leadership styles and organisational performance is mediated by the organisational innovation. Recommendations for future research and implementation are also discussed.

Keywords: Human Resource Management, Leadership Styles, Organisational Innovation,Organisational Learning, Organisational Performance, Personal Development

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #24, pp. 272-282

Title of the Paper: Challenges Leading to Projects Struggle in IT Project Management Office

Authors: Hanadi Salamah, Loay Alnaji

Abstract: The purpose of this study is to identify the challenging factors leading to projects struggle within the PMO of an IT and software development organization. These challenges have a potential negative impact on projects execution and management leading to higher likelihood of projects failure. The project challenges along with recommendation on how to address and overcome them are provided. Change of scope, conflict between project and departmental tasks, resource contention, lack of resources-utilization-tracking system, and shortage of resources were found to be the top challenges leading to the struggle of projects within an IT and software development Project Management Office.

Keywords: Project Management Office, Project Management, PMO, PM Challenges, IT PMO Failure, Agile PM

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #23, pp. 262-271

Title of the Paper: Game Theory as a Tool of Crisis Management in a Company

Authors: Jan Fuka, Josef Volek, Ilona Obršálová

Abstract: Terrorism - phenomena that is classified as one of the most serious threat of today. Research and development of counter-terrorism strategies have become a part of international and national organizations and private company policy. Czech Republic is a region that would not be threatened by international terrorism, but extremism and terrorism is considered as significant security threat by Czech authorities. At the national and international level, the issue of extremism and terrorism is increasingly studied using game theory. Authors argue that it is not possible to examine various conflict participants, without consideration of their reaction and interaction. Game Theory is a tool that allows to analyze individual decisions, so it is increasingly being used in development of security strategies. This work deals with the Czech extremist and terrorist scene and possible terrorist attack on a regional company. Based on available information obtained by analyzing domestic extremism and terrorism, and a description of the chosen company there was designed model of security scenarios and rules, which can be used as a support tool for decision-making. The scenarios were then tested with a suitable part of Game Theory.

Keywords: Terrorism, Game Theory, Management, Crisis, Prisoner´s Dilemma, Security, Scenario, Rules

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #22, pp. 250-261

Title of the Paper: A Hierarchical Bayesian Model in Evaluating Apps Downloading Frequency

Authors: Nai-Hua Chen, Yi-Ting Hwang

Abstract: Several purchase models are developed to understand customer dynamic purchasing behavior. The negative binomial distribution (NBD) contains two characteristics which are Poisson purchasing and gamma heterogeneity is shown as a robust method in product purchase frequency. An approach is to develop individual-level estimation by MCMC Bayesian NBD model. Since the smart phone launch to publish, various types of apps are developed and try to approach users. The app can work successfully only when they meet customers’ requirements. An empirical exam is to estimate effects that influence download frequency for different type of apps. Three app types, game, social communication and photo editor, are examined. The proposed model can capture app download frequency successfully. The game downloaders are more focus on social and hedonic. The social communication downloaders emphasis on informativeness and price. The photo editor downloaders concern on informativeness and social characteristics. Results can provide valuable designing strategies for companies.

Keywords: Negative Binomial Distribution (NBD), MCMC, Hierarchical Bayesian Model, App

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #21, pp. 242-249

Title of the Paper: The Significance of Insolvency Statistics and the Regression Analysis Thereof – The Example of the Czech Republic

Authors: Luboš Smrčka, Jaroslav Schönfeld, Markéta Arltová, Jan Plaček


Abstract: The study concerns the problem of statistical data and the regression analyses thereof, primarily on the example of the Czech Republic, which, for the purposes of the models used, has been supplemented by data concerning groups of developed countries. The authors proceed from the assumption that information on the efficiency of insolvency processes is important for understanding the functioning of the entire economic system of a given region, insofar as the efficiency of these processes are known to entrepreneurial subjects and therefore becomes a part of their decision-making processes. Therefore, it is especially decisions concerning risks that are influenced, which leads to this efficiency becoming a part of prices and other fundamental market circumstances. Then, on the basis of international comparisons, mathematical models (regression analysis) examine the mutual dependency between yields from insolvency proceedings, costs of these proceedings and duration of proceedings. A critique of source data then leads to the expression of a need for high-quality national statistics, and the possibilities of gaining such information is demonstrated on the example of the Czech Republic.

Keywords: Collection of receivables, creditor, debtor, insolvency, statistics, regression analysis WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #20, pp. 227-241

Title of the Paper: House Prices and Rents. The Italian Experience

Authors: Benedetto Manganelli, Pierluigi Morano, Francesco Tajani

Abstract: The sale and lease real estate markets have cyclical developments which are often dissimilar in the short term and then take coincident trends in longer horizons. The imbalance in the relationship between prices and income is normally used by economists to determine any "housing bubbles". However, the structural limitations require caution in the use of the ratio between prices and rents as an indicator of an over - or under - evaluation in the real estate market. The present work has investigated the relationships between selling and rental prices in the Italian housing market, trying to define the actual cause-effect relationships in quantitative terms too. It was used a multivariate autoregressive (VAR) model to interpret the mutual influences between the two sectors and the macroeconomic fundamentals . The results show that housing prices can influence rents, but not the opposite. The Italian housing demand, even the one for investment , does not consider rent as a proxy for the corresponding dividend. The work must be attributed equally to the three authors.

Keywords: VAR analysis, selling prices, rental prices, Italian housing market

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #19, pp.219-226

Title of the Paper: Empirical Analysis of the Nature of Competition in a Laundry-Cleaning Additive Market

Authors: Marzia Freo, Giorgio Tassinari

Abstract: This study examines the nature of competition between the two leading brands of a national small size market by estimating short- and long-term competitive reactions via a Structural VAR (SVAR) model. The primary findings indicate how the two competitors react, which marketing instruments are used, and when competitive reactions affect cross- and own-sales. The empirical results suggest that competitive reactions are either simple or complex, whether through advertising or through promotions, but the reactions exhibit dynamic patterns that are quite symmetric across brands. The results further suggest that the follower weakly reacts to a leader’s assault and that the nature of competition in this market deviates from symmetric behaviours toward a dominant-fringe pattern in which the leader firm is retaliatory, and the follower is accommodating or passive.

Keywords: SVAR model, nature of competition, competitive reactions, market response, small market, impulse response functions

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #18, pp.209-218

Title of the Paper: Risk Assessment in Estimating the Capitalization Rate

Authors: Benedetto Manganelli, Pierluigi Morano, Francesco Tajani

Abstract: In estimating the market value of a property by income approach, the determination of the capitalization rate is ordinarily conducted through analogical process. The procedure is based on the identification of price-earnings ratio of similar investments. The analogy refers to the risk and the duration of the investment. However, in all cases there still remains a rate of uncertainty that significantly affects the final estimation of the property. This paper proposes a methodology which removes any uncertainty when evaluating the cap-rate. The aim is achieved through the combination of the formal logic of the Ellwood’s model and the Real Options Analysis. The algorithm developed has been applied to a sample relative to 57 Italian cities, considering annual prices from 1967 to 2012. The results highlight the validity of the model and the easiness of use. The work must be attributed equally to the three authors.

Keywords: Ellwood, Real Options, cap-rate, risk, real estate, investment

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #17, pp.199-208

Title of the Paper: A New Risk History: The Eastern Europe Case

Authors: Josep Maria Cardona, Jordi Andreu, Sebastian Cano

Abstract: Eastern European Emerging Markets (EEEM’s) have been superficially analysed in the literature. In this paper, the authors use a T-GARCH and E-GARCH approach to model volatility in eleven EEEM’s, being one of the most comprehensive analysis in terms of number of markets. Data includes daily returns from 2004 to 2011. Main findings show higher unconditional volatility in EEEM’s than in developed markets, but risk premium is statistically negative or non significant in this markets. Almost all markets show an important and significant leverage effect, contrary to previous results in the literature. According to the news impact and decay parameters, volatility is more difficult to predict in EEEM’s than in developed markets. Greece, Hungary, Poland and Turkey seem to be the maturest EEEM’s markets. Finally, no significant differences are found among countries inside and outside European Union.

Keywords: Eastern European Markets, EU, Integration, European markets, volatility dynamics, GARCH

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #16, pp.188-198

Title of the Paper: Credit Risk Assessment and the Information Content of Financial Ratios: A Multi-Country Perspective

Authors: João O. Soares, Joaquim P. Pina

Abstract: This paper revisits the problem of building a multicriteria additive value model for credit risk assessment, with a particular focus on quantitative criteria. The analysis deals with the information content of financial ratios collected from the European BACH-ESD database, covering aggregate firm data for seven countries – Austria, Belgium, France, Germany, Italy, Portugal and Spain – fifteen sectors and three size classes. A cross-sectional study is conducted employing non-parametric testing in order to look for similarities in the data, according to the multiple dimensions of the sample. Profitability, liquidity and leverage ratios exhibit different patterns of variation across countries, sectors and sizes, but the profitability indicators seem to have the greatest discriminating power, implying more specific benchmarks for credit risk assessment. It is also found that size and sector breakdowns are mostly relevant, while the country factor is somewhat less, for performance benchmarking. Moreover, the fact that the financial indicators show negligible differences across firms in many cases conveys a compelling argument for the accrued value, and central role, of qualitative information –market and management – in the decision making process, notably using a MCDA model.

Keywords: Multicriteria assignment, risk assessment, credit scoring, banking, financial ratios, cross-section evidence

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #15, pp.175-187

Title of the Paper: Knowledge Management System in SMEs within Stable Enterprise Networks

Authors: Luca Cagnazzo, Lorenzo Tiacci, Vanessa Rossi

Abstract: Companies need to respond to ever-changing and increasing customer demands in order to maintain a stable market position. In this scenario, collaboration among companies is one of the most promising strategies for enhancing global competitiveness. New business models as well as new theories about governance, operations, strategies and management have been in the process of being developed in last years for these emerging Enterprise Networks. To achieve effective cooperation within a collaborative environment, the development of a Knowledge Management System is nowadays essential, since the facing up with the actual knowledge-based market. This paper provides a structured methodology to establish a Knowledge Management System in a Small and Medium Enterprise that actively contributes in a stable and long term strategy enterprise network through an Action Research approach. The Action Research (AR) is conducted in a medium company, named Si.Ca.RT, belonging to an Italian network of 21 enterprises

Keywords: SME, Knowledge Management, Enterprise Network, Performance Measurement

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #14, pp.155-174

Title of the Paper: Prevention of Crises Based on the Creation and Usage of Simulation Models

Authors: Petr Šnapka, Marie Mikušová

Abstract: The article focused on the issues of crisis prevention solution with the help of the simulation model and the use of production functions. The aim is the explaining of simulation model which presents management system adequated to crisis prevention requirements (early warning system). Presented simulation model and the utilization of production functions are relating to coal mining but it can be used in other sectors, too. Starting points as the functional characteristics and structure of elements linkage and behavior, i.e. characteristics which determine the dynamics of coal mining process are characterized. Simulation model is structured as functional blocks and their linkages with regard to organizational and temporal hierarchy of their actions. Then production function characteristics and their utilization in a dynamic simulation are presented. In conclusion, the article emphasizes direct relationship of the simulation model and preventive crisis intervention. The creation of presented simulation model is based on theoretical findings of regulation, knowledge of a dynamic behavior, hierarchical systems and optimization.

Keywords: block, coal mining, crisis prevention, dynamic simulation, model, production function

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #13, pp.141-154

Title of the Paper: Social Relations and Voice Behavior: The Mediating Role of Psychological Safety

Authors: Jen-Wei Cheng, Shu-Ching Chang, Jyh-Huei Kuo, Kuo-Ming Lu

Abstract: Over the years much research has been devoted to understanding how employee’s voice behavior may be promoted. Existing studies, however, have not yet fully examined the voice behavior process, because they have not taken the mediating role of cognitive and mental processes into adequate consideration. In order to fill this gap, this study develops and tests a theoretical model which focuses on psychological safety as a mediating mechanism between social relations and voice. Data were collected from 652 employees from the largest express transportation company in Taiwan. Structural equation modeling analysis was used to test the study’s hypotheses. Empirical results showed that psychological safety did mediate the relationship between voice behavior and workers’ perceived relationships with supervisors and co-workers. Practical management and research implications are discussed and future research directions are suggested.

Keywords: perceived relationship with supervisor, perceived relationship with co-workers, psychological safety, voice behavior

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #12, pp.130-140

Title of the Paper: Brazilian’s Manufacturing Sectors: Empirical Results from Panel Data and Fixed Effects’ Models

Authors: Hugo Ferreira Braga Tadeu, Jersone Tasso Moreira Silva

Abstract: This article examines the determinants of private investment in Brazil from sectorial industry data for the period of 1996 to 2010. The series of gross fixed capital formation, commonly used in empirical studies of aggregate investment, eliminates irregular adjustments of individual production units due to the aggregation process. Using the industry’s sectorial data it is possible to avoid smoothing in this aggregate series and it may help to understand aggregated investment’s dynamics. The results reveal the importance of the available funds volume for investment with the complementarity between public and private investment. The results also indicate that the real high interest rates prevailing in the market did not affect the private sector’s investment negatively during the considered period. The investment financing alternative from own resources and subsidized credit, seems to have been more important. As expected, the economic instability adversely affected private investment during this period.

Keywords: manufacturing sector, public investments, private investments, Panel data, fixed effects, capital formation

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #11, pp.117-129

Title of the Paper: Library User Behavior Analysis – Use in Economics and Management

Authors: P. Hájek, J. Stejskal

Abstract: This paper develops a method of bibliomining, including the characteristics of the various stages of the process. Furthermore, the whole process is applied to research conducted in 2012 in the largest public library in the Czech Republic – the Municipal Library of Prague. The results are interpreted and a proposal for continuation of research is also included.

Keywords: bibliomining, cluster analysis, economics, library user behavior, management, public library

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #10, pp.107-116

Title of the Paper: Business Intelligence Adoption: A Case Study in the Retail Chain

Authors: Cecília Olexová

Abstract: Business Intelligence (BI) tools are adopted by more and more companies in the current environment that requires companies to operate as efficiently as possible. The paper investigates a BI adoption in a retail chain. Based on qualitative research methods, it analyses the Business Intelligence life cycle; it evaluates factors impacting the adoption from the Diffusion of Innovations perspective. One of the findings is that requirements engineering is critical, and even small issues have a tendency to cause big problems. This links to the sentiment among managers, often worrying that IT projects will run over-budget and/or over-time. Finally, the presented research identifies benefits that are considered to be the most important by the retail chain managers. An important finding is that managers consider improved decision-making to be the most significant benefit.

Keywords: Business intelligence, adoption, diffusion of innovations theory, system life cycle, benefits, retail chain, speed of adoption

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #9, pp.95-106

Title of the Paper: Join an Internship Course or not? Evaluation from the Perspective of College Students in Taiwan

Authors: Yi-Hui Chiang

Abstract: Even as Taiwan’s higher education is growing, graduation from college or university is not a guarantee for employment. Therefore, more and more schools are establishing relationships with enterprises to offer internship opportunities to students. These days senior college students are asked (as a matter of course) whether they are going to choose an internship course or not. What is the key determinant? Do the incentives provided by the enterprise and school work? The aim of the paper is to propose a Multiple-Criteria-Decision-Making (MCDM) evaluation model on the internship decision from the college students’ view in Taiwan. According to the result, the weight ranking is: (1) Enterprise factors; (2) Financial factors; (3) School factors and (4) Nonfinancial factors. Among the 20 criteria, the top three as ranked by the respondents are “the enterprises provide salary”; “approving the internship report equal to special topic report” and “the provided internship work that fits me”. The results indicate that the incentives provided by the enterprise and school do matter. Such an MCDM model serves as a decision-making mechanism for the schools, students and enterprises.

Keywords: internship, Analytic Hierarchy Process (AHP), college students, Multiple-Criteria-Decision-Making (MCDM)

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #8, pp.86-94

Title of the Paper: Perception of Citizens of the Benefits of Public Services – MLP Case

Authors: K. Matatkova, P. Kotatkova Stranska, S. Pichova

Abstract: Public services are an important part of every economy. Because the providing of this type of services is financed from public budgets, it is important to evaluate the benefits which may flow from them to the society. Evaluation of benefits is quite difficult, because it needs the huge empirical survey which is made among the consumers of the services, who are asked for their individual benefit from the services. This paper presents the results of empirical survey which has been realized during the year 2012 among public services consumers which are provided by the Municipal Library of Prague. The contribution of the paper consists on determining the exact value of benefit from the public library services providing to their users.

Keywords: effectiveness, public services, public libraries, benefit, evaluation, public libraries, public finance

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #7, pp.78-85

Title of the Paper: Qualitative Analysis in A Predator-Prey Model with Sigmoidal Type Functional Response

Authors: Changjin Xu, Peiluan Li

Abstract: In this paper, a cyclic predator-prey system with Sigmoidal type functional response is considered. The stability of the positive equilibrium and existence of Hopf bifurcation is studied by analyzing the distribution of the roots of associated characteristic equation. It is shown that the positive equilibrium is locally asymptotically stable when the time delay is small enough, while change of stability of the positive equilibrium will cause a bifurcating periodic solution as the time delay passes through a sequence of critical values. An explicit formula for determining the stability and the direction of the Hopf bifurcation periodic solutions bifurcating from Hopf bifurcations is derived, using the normal form theory and center manifold argument. Finally, numerical simulations supporting the theoretical results are carried out.

Keywords: Predator-prey system, Stability, Hopf bifurcation, Sigmoidal type functional response, Time delay

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #6, pp.65-77

Title of the Paper: Enhancing Order-Picking Efficiency through Data Mining and Assignment Approaches

Authors: Yi-Fei Chuang, Shui-Hui Chia, Jehn-Yih Wong

Abstract: Using data mining techniques, this study attempts to explore how a proper layout zoning following class-based storage enhances order picking efficiency over randomized storage. Association web statistics and association rule mining examines the relative intensity levels among various product categories. These findings serve as the layout for zoning of the storage area of company, a pharmaceutical industry master distributor. A class-based assignment policy is then proposed. Finally, by transforming accumulated orders into Pallet-Case-Broken case (PCB) data and adopting batch picking, this study compares random assignment policy with zoning and class-based assignment policy. The results conclude that zoning and class-based assignment policy decreases travel distances by 24% and improves picking times by 21%.

Keywords: order picking, storage assignment, data mining, association rule, layout zoning, class-based assignment

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #5, pp.52-64

Title of the Paper: The Analysis of the Influence of Changes of Legal Standards on Enterprise in the Sector of Small Medical Organisations

Authors: Jana Janoušková, Marian Nikorjak

Abstract: The enterprise in health care is influenced significantly by the state, its interventions into the enterprise environment primarily with the form of legal standards. Their stability and accuracy are very significant factor. The influence of this factor is changeable in time depending on political decisions and the quality of their transformation on legal standards. The article presents primary research of the influence on the stability of incomes of small medical organisations, price regulation by the state and simultaneously the influence on demand for services in economic consultancy in health care sector. The research reacts on the failure of legislature in the field of market with the obligation of price establishing. On the basis of the results of questionnaire processing with the method of mathematics statistics of dispersion analysis it was confirmed that it is not difference in incomes of medical organisations in the period with different obligation of price establishing. But simultaneously it was confirmed significant influence of decrease of the demand for services in the field of price establishing. In the context of supposed changes towards higher participation of patients which also brings necessary participation of medical organisation management, this research appears to be needed and current.

Keywords: enterprise, health care, analysis, law, regulation, price, obligatory procedure, demand, services, dentistry

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #4, pp.42-51

Title of the Paper: A Decomposition Analysis for Labour Demand: Evidence from Malaysian Manufacturing Sector

Authors: Poo Bee Tin

Abstract: Malaysia experienced four major phases of industrialization, with import substitution or export orientation dominating each phases alternatively. Manufacturing sector is important in Malaysia’s industrial development, inducing rapid growth, technology expansion and upgrading labor skill. High growth rates and high technology expansion in these sector resulted in a substantial increase in demand for labor. Indeed, currently the economy is continuously experiencing further structural adjustments in output and employment as the degree of integration with world markets increases and changes in technology deepen. By using three Malaysian input-output tables; 1978, 1991 and 2000 input-output tables - the present study employs the popular model namely the Structural Decomposition Analysis (SDA). The result also shows that changes in the final demand structure were the major source of labor growth, dominating by domestic demand during 1978-1991 and by export demand during 1991- 2000.

Keywords: manufacturing, decomposition, labor, input-output, growth and Malaysia

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #3, pp.32-41

Title of the Paper: Identifying the Characteristics of the Supply Chain Processes in Developing Country: A Manufacturing Industry Perspective

Authors: Fasika Bete Georgise, Klaus-Dieter Thoben, Marcus Seifert

Abstract: Lack of appropriate tools to model, evaluate and improve the supply chain is considered as one of the initiatives to major challenges to promote improvement among the firms in developing countries. The basic constituent of such models is the business processes. Firms in developing countries are lagging behind the recent trends of practices and researches. For continuous and sustainable improvement program that involves the entire supply chain including developing countries, it is necessary to have a well designed supply chain models that also consider the firms of the developing countries. The existing successful process-oriented models are highly dependent on the current business practices of the companies of the developed world. For both the new development and adapting of the successful models require the understanding of the characteristics of the existing supply chain processes and practices in the firms in a developing countries. The aim of this article is to identify the main characteristics of the current supply chain processes of the firms of the developing country based on the SCOR model business processes: Plan, Source, Make, Deliver and Return. The research methodology includes the literature review, questionnaire survey and semi-structured interview. The research data was collected from the Ethiopian manufacturing industries practices. Finally, the research findings reveal the characteristics of the supply chain processes. The identified processes characteristics could be used for the future model adaptation works.

Keywords: Business process, SCOR model, developing countries, supply chain

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #2, pp.12-31

Title of the Paper: Investment in Today’s Turbulent Markets

Authors: Libena Kantnerova, Stanislav Kucera

Abstract: Investment can increase your wealth. However, not everyone knows the inherent risks involved in investing or how to strike a correct balance between risk taking and making a profit. There are two ways in which to achieve the target - either to ask professionals or consultants for their choice of what they believe to be the best investment alternative(s) or to determine our own strategies in selecting our own risk level and attempt to find our own best investment alternatives. This paper will briefly describe some possibilities for how prospective investments with the knowledge of mutual funds can be made; some basic methods for how to analyse such information, and how to create the right strategy given the investor’s risk and return goals. This paper will present an alternative option, without the need to ask or pay for professional recommendations.

Keywords: Investment, mutual funds, risk, stock, bond, market, own strategy, profit

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #1, pp.1-11


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