Several researchers suggest that value-based pricing (VBP) is one of the most profitable pricing methods for companies competing in today’s business environment. Interestingly, the implementation rates of VBP are, however, rather low. Numerous barriers to the implementation of value-based pricing have been found by researchers already. Although, a theoretical model for determining whether value-based pricing may be a suitable pricing method for a business is yet to be found in the literature. This study aims to introduce a theoretical model to aid pricing executives in their pricing method selection. For this purpose, 20 semi-structured in-depth expert interviews with German pricing experts were conducted as part of qualitative data analysis. The experts were selected using a purposive selection method. Pricing experts were asked to describe the most important factors for determining whether a company may implement value-based pricing. We identified two main factors as being necessities for using VBP. The first factor named by the authors was the brand advantage (BA), and the second factor was represented by the delivered product benefits (DB) as perceived by the customer. Based on these two factors, a two-dimensional, quadrant-based theoretical model was developed and was named the VBP Determination Matrix. The matrix now evaluates a company’s position within the matrix based on the factors BA and DB. It leads to direct calls-to-action for properly choosing the most suitable pricing method. This study's theoretical contribution was the development of a so far non-existing two-dimensional model for the determination of the suitability of value-based pricing. Business practitioners are now provided with an easy-to-use and highly applicable model to determine the initial suitability of implementing VBP. Senior management is given direct calls-to-action, whether an investment to implement VBP shall be made and whether to allocate resources. Implications for Central European audience: The VBP Determination Matrix is a highly applicable model recommended especially for business practitioners in pricing, marketing and management. Central European companies are recommended to utilise the model to benefit from its strategic recommendations to properly select the most suitable pricing method for profit maximisation and competitiveness optimisation.
{"title":"THE VALUE-BASED PRICING DETERMINATION MATRIX FOR PRICING METHOD SELECTION","authors":"F. Steinbrenner, J. Turčínková","doi":"10.18267/J.CEBR.267","DOIUrl":"https://doi.org/10.18267/J.CEBR.267","url":null,"abstract":"Several researchers suggest that value-based pricing (VBP) is one of the most profitable pricing methods for companies competing in today’s business environment. Interestingly, the implementation rates of VBP are, however, rather low. Numerous barriers to the implementation of value-based pricing have been found by researchers already. Although, a theoretical model for determining whether value-based pricing may be a suitable pricing method for a business is yet to be found in the literature. This study aims to introduce a theoretical model to aid pricing executives in their pricing method selection. For this purpose, 20 semi-structured in-depth expert interviews with German pricing experts were conducted as part of qualitative data analysis. The experts were selected using a purposive selection method. Pricing experts were asked to describe the most important factors for determining whether a company may implement value-based pricing. We identified two main factors as being necessities for using VBP. The first factor named by the authors was the brand advantage (BA), and the second factor was represented by the delivered product benefits (DB) as perceived by the customer. Based on these two factors, a two-dimensional, quadrant-based theoretical model was developed and was named the VBP Determination Matrix. The matrix now evaluates a company’s position within the matrix based on the factors BA and DB. It leads to direct calls-to-action for properly choosing the most suitable pricing method. This study's theoretical contribution was the development of a so far non-existing two-dimensional model for the determination of the suitability of value-based pricing. Business practitioners are now provided with an easy-to-use and highly applicable model to determine the initial suitability of implementing VBP. Senior management is given direct calls-to-action, whether an investment to implement VBP shall be made and whether to allocate resources. Implications for Central European audience: The VBP Determination Matrix is a highly applicable model recommended especially for business practitioners in pricing, marketing and management. Central European companies are recommended to utilise the model to benefit from its strategic recommendations to properly select the most suitable pricing method for profit maximisation and competitiveness optimisation.","PeriodicalId":37276,"journal":{"name":"Central European Business Review","volume":" ","pages":""},"PeriodicalIF":1.3,"publicationDate":"2021-02-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44752047","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
COBIT is a process-oriented IT governance framework. In 2019 version, the framework offers a significantly redesigned approach to prioritize processes and set process target capability levels. The design phase is very important to achieve governance system in future. Although there are several design factors defined in the design phase of COBIT 2019, these factors do not assess process suitability and value for the governance system. Thus, connections and continuity among processes are not taken into consideration enough. Therefore, the aim of the article is to suggest another design factor based on the interrelationships of processes in the COBIT framework represented by its information flows. The nature of the proposed innovation is described, and the analysis of process information flows and items is performed. The article also publishes several inconsistencies in COBIT 2019 documentation that have been identified in the process of research. The application of process information flows and items analysis has been illustrated in two case studies. We have identified new information that can be relevant to decision making in the design phase and discussed their importance for planned governance system. The results could help to improve the quality of the design phase by providing additional information about the context of the processes designed to ensure the governance system. Implications for Central European audience: The implications for senior managers in the Central European region will be beneficial. Optimization and effective use of information technologies is a prerequisite for achieving long-term competitiveness. COBIT is a best practice framework, and its implementation in companies is largely based on the specifics of each organization. Therefore, it is important to pay close attention to the implementation phase of the application of COBIT. Framework application positively supports the holistic approach to management, resource optimization, management based on responsibility and measurability. Today, these attributes of the organization's management are emphasized not only in Central Europe but in developed countries in general.
{"title":"Analysis of Processes Information Flows and Items as Additional Design Factor in Cobit Framework","authors":"P. Rozehnal, V. Novák","doi":"10.18267/J.CEBR.264","DOIUrl":"https://doi.org/10.18267/J.CEBR.264","url":null,"abstract":"COBIT is a process-oriented IT governance framework. In 2019 version, the framework offers a significantly redesigned approach to prioritize processes and set process target capability levels. The design phase is very important to achieve governance system in future. Although there are several design factors defined in the design phase of COBIT 2019, these factors do not assess process suitability and value for the governance system. Thus, connections and continuity among processes are not taken into consideration enough. Therefore, the aim of the article is to suggest another design factor based on the interrelationships of processes in the COBIT framework represented by its information flows. The nature of the proposed innovation is described, and the analysis of process information flows and items is performed. The article also publishes several inconsistencies in COBIT 2019 documentation that have been identified in the process of research. The application of process information flows and items analysis has been illustrated in two case studies. We have identified new information that can be relevant to decision making in the design phase and discussed their importance for planned governance system. The results could help to improve the quality of the design phase by providing additional information about the context of the processes designed to ensure the governance system. Implications for Central European audience: The implications for senior managers in the Central European region will be beneficial. Optimization and effective use of information technologies is a prerequisite for achieving long-term competitiveness. COBIT is a best practice framework, and its implementation in companies is largely based on the specifics of each organization. Therefore, it is important to pay close attention to the implementation phase of the application of COBIT. Framework application positively supports the holistic approach to management, resource optimization, management based on responsibility and measurability. Today, these attributes of the organization's management are emphasized not only in Central Europe but in developed countries in general.","PeriodicalId":37276,"journal":{"name":"Central European Business Review","volume":" ","pages":""},"PeriodicalIF":1.3,"publicationDate":"2021-02-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42326690","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
D. Doanh, T. Bernat, N. T. Hieu, Nguyen Bich Ngoc, Nguyen Thi Phuong Linh
Empirical studies exploring particular mechanisms that the country’s institutional profile, such as regulatory and normative dimension are internalised into scientists’ cognitive process of commercialising their research results, are rather sparse. This study aims to develop a conceptual framework in which integrated the lens of institutional theory and theory of planned behaviour to empirically test and discover the effects of regulatory and normative supports on scientists’ intention to commercialise an invention. A survey was conducted at institutions and universities using stratified random sampling from 255 scientists during the period of 2 months from May to July 2020. A structural equation modelling was employed to estimate the paths and correlations. Results revealed that although regulatory support was not found to have the direct role in shaping intention to commercialise the invention, it had more influences and significances in the increase of attitude towards entrepreneurship, subjective norms, perceived behavioural control. Also, attitude towards entrepreneurship and perceived behavioural control were found to be full mediators in the linkage between regulatory support and intention to commercialise the invention, but subjective norms were not. Besides, normative support, although it was not related to subjective norms, it had direct influences on attitude toward invention commercialisation, perceived behaviour control, and intention to commercialise the invention. Thus, attitude toward invention commercialisation, perceived behaviour control was figured out to play the partially mediating role in the relationship between normative support and intention to commercialise invention among scientists. This research shows that new institutions that address younger generations and concentrate on enhancing entrepreneurial qualities are crucial to foster commercialisation in emerging economies. Also, by representing outstanding issues, our research encourages further debate and research activities. Implications for Central European audience: Even though the research results are related to academic entrepreneurship in Vietnam, the findings of this study can advocate that to promote academic entrepreneurship in emerging economies, enhancing both regulatory and normative supports are really necessary. In addition to theoretical contributions, this study also has several practical implications for researchers and policymakers in Central Europe.
{"title":"Academic Entrepreneurship: An Empirical Research of Invention Commercialisation","authors":"D. Doanh, T. Bernat, N. T. Hieu, Nguyen Bich Ngoc, Nguyen Thi Phuong Linh","doi":"10.18267/J.CEBR.265","DOIUrl":"https://doi.org/10.18267/J.CEBR.265","url":null,"abstract":"Empirical studies exploring particular mechanisms that the country’s institutional profile, such as regulatory and normative dimension are internalised into scientists’ cognitive process of commercialising their research results, are rather sparse. This study aims to develop a conceptual framework in which integrated the lens of institutional theory and theory of planned behaviour to empirically test and discover the effects of regulatory and normative supports on scientists’ intention to commercialise an invention. A survey was conducted at institutions and universities using stratified random sampling from 255 scientists during the period of 2 months from May to July 2020. A structural equation modelling was employed to estimate the paths and correlations. Results revealed that although regulatory support was not found to have the direct role in shaping intention to commercialise the invention, it had more influences and significances in the increase of attitude towards entrepreneurship, subjective norms, perceived behavioural control. Also, attitude towards entrepreneurship and perceived behavioural control were found to be full mediators in the linkage between regulatory support and intention to commercialise the invention, but subjective norms were not. Besides, normative support, although it was not related to subjective norms, it had direct influences on attitude toward invention commercialisation, perceived behaviour control, and intention to commercialise the invention. Thus, attitude toward invention commercialisation, perceived behaviour control was figured out to play the partially mediating role in the relationship between normative support and intention to commercialise invention among scientists. This research shows that new institutions that address younger generations and concentrate on enhancing entrepreneurial qualities are crucial to foster commercialisation in emerging economies. Also, by representing outstanding issues, our research encourages further debate and research activities. Implications for Central European audience: Even though the research results are related to academic entrepreneurship in Vietnam, the findings of this study can advocate that to promote academic entrepreneurship in emerging economies, enhancing both regulatory and normative supports are really necessary. In addition to theoretical contributions, this study also has several practical implications for researchers and policymakers in Central Europe.","PeriodicalId":37276,"journal":{"name":"Central European Business Review","volume":" ","pages":""},"PeriodicalIF":1.3,"publicationDate":"2021-02-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45289237","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The factors determining the success of crowdfunding projects is one of the central issues for crowdfunding researchers. Quantitative approaches recognise the number of funds targeted as an important control variable. However, little is known about the impact of the funding goal on other factors that impact crowdfunding success. We hypothesise that the effect of crowdfunding success factors varies contingent on the funding goal level. A dataset of 338 crowdfunding projects from the largest German crowdfunding platform StartNext in the years 2015 to 2016 is analysed by conducting regression analyses controlling for varying funding goal sizes. We use the dependent variables success, the degree of success and the number of project supporters and control whether the effect of independent variables such as comments, updates and social media depend on different funding goals. Our study indicates that the impact of the investigated success factors, in fact, strongly depends on the funding goal levels of crowdfunding projects. By grouping projects into clusters of varying funding goals, we find that the impact of individual success factors changes and that the funding goal plays a moderating role for factors impacting project success. Implications for Central European audience: Many crowdfunding studies focus on the most popular US-based platforms like Kickstarter or Indiegogo. We examined projects on the largest German reward-based crowdfunding platform StartNext. These results help both researchers and future entrepreneurs in Europe to better understand supporter behaviour. We suggest that future entrepreneurs should be aware that factors influencing the success of a crowdfunding project strongly depend on the set funding goal, which should be adequately considered in future crowdfunding research.
{"title":"Re-Examining Crowdfunding Success: How the Crowdfunding Goal Moderates the Relationship of Success Factors and Crowdfunding Performance","authors":"Felix Pinkow, Philipp Emmerich","doi":"10.18267/J.CEBR.263","DOIUrl":"https://doi.org/10.18267/J.CEBR.263","url":null,"abstract":"The factors determining the success of crowdfunding projects is one of the central issues for crowdfunding researchers. Quantitative approaches recognise the number of funds targeted as an important control variable. However, little is known about the impact of the funding goal on other factors that impact crowdfunding success. We hypothesise that the effect of crowdfunding success factors varies contingent on the funding goal level. A dataset of 338 crowdfunding projects from the largest German crowdfunding platform StartNext in the years 2015 to 2016 is analysed by conducting regression analyses controlling for varying funding goal sizes. We use the dependent variables success, the degree of success and the number of project supporters and control whether the effect of independent variables such as comments, updates and social media depend on different funding goals. Our study indicates that the impact of the investigated success factors, in fact, strongly depends on the funding goal levels of crowdfunding projects. By grouping projects into clusters of varying funding goals, we find that the impact of individual success factors changes and that the funding goal plays a moderating role for factors impacting project success. Implications for Central European audience: Many crowdfunding studies focus on the most popular US-based platforms like Kickstarter or Indiegogo. We examined projects on the largest German reward-based crowdfunding platform StartNext. These results help both researchers and future entrepreneurs in Europe to better understand supporter behaviour. We suggest that future entrepreneurs should be aware that factors influencing the success of a crowdfunding project strongly depend on the set funding goal, which should be adequately considered in future crowdfunding research.","PeriodicalId":37276,"journal":{"name":"Central European Business Review","volume":" ","pages":""},"PeriodicalIF":1.3,"publicationDate":"2021-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45757963","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The article deals with China’s outward direct investment (ODI) in Europe. The ODI has been on the rise and is unique in the sense that its development is much faster than of any other developing country. We investigate the determinants of Chinese ODI in ten countries of the Central and Eastern Europe in the time span of 2005 and 2018. Using panel data analysis, the regression model incorporates both traditional macroeconomic variables as well as selected institutional variables, trying to test which of those work best at explaining the Chinese investment activity in the countries of interest. The quality of the institutional framework is represented by EBRD indicators, which seem to be more suitable for transition economies. Findings generally suggest that Chinese multinational enterprises do not access Central and Eastern European countries primarily for market-seeking reasons. However, the fact of being a member of the EU helps Chinese ODI, since the membership is used as a sort of “backdoor” to the large European markets. Still, Chinese ODI are less likely associated with a sound institutional environment of a host country, as opposite appears to be true. These findings, therefore, support the hypothesis that access to the single EU market and R&D spending are more important determinants of the Chinese ODI than almost any other factors. Implications for Central European audience: The article explores the main drivers of Chinese foreign direct investment in the CEE region, while it employs the most relevant theoretical framework, including several recently developed theories. The quantitative analysis then thoroughly explores weight and sign of selected drivers using recent data and questions some of the conventionally accepted surmises about motivations of Chinese investment activity in the CEE region. This is an important topic given the ongoing debates about China’s influence in the region as well as about intensity and general value added of its investment activity.
{"title":"Determinants of Chinese Foreign Direct Investment in Central and Eastern Europe","authors":"Barbora Abu Dayeh, M. Janíčko","doi":"10.18267/J.CEBR.254","DOIUrl":"https://doi.org/10.18267/J.CEBR.254","url":null,"abstract":"The article deals with China’s outward direct investment (ODI) in Europe. The ODI has been on the rise and is unique in the sense that its development is much faster than of any other developing country. We investigate the determinants of Chinese ODI in ten countries of the Central and Eastern Europe in the time span of 2005 and 2018. Using panel data analysis, the regression model incorporates both traditional macroeconomic variables as well as selected institutional variables, trying to test which of those work best at explaining the Chinese investment activity in the countries of interest. The quality of the institutional framework is represented by EBRD indicators, which seem to be more suitable for transition economies. Findings generally suggest that Chinese multinational enterprises do not access Central and Eastern European countries primarily for market-seeking reasons. However, the fact of being a member of the EU helps Chinese ODI, since the membership is used as a sort of “backdoor” to the large European markets. Still, Chinese ODI are less likely associated with a sound institutional environment of a host country, as opposite appears to be true. These findings, therefore, support the hypothesis that access to the single EU market and R&D spending are more important determinants of the Chinese ODI than almost any other factors. Implications for Central European audience: The article explores the main drivers of Chinese foreign direct investment in the CEE region, while it employs the most relevant theoretical framework, including several recently developed theories. The quantitative analysis then thoroughly explores weight and sign of selected drivers using recent data and questions some of the conventionally accepted surmises about motivations of Chinese investment activity in the CEE region. This is an important topic given the ongoing debates about China’s influence in the region as well as about intensity and general value added of its investment activity.","PeriodicalId":37276,"journal":{"name":"Central European Business Review","volume":" ","pages":""},"PeriodicalIF":1.3,"publicationDate":"2021-01-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43307639","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The article aims to evaluate the level of the analytical part of CRM in SMEs in Czechia and its impact on increasing the companies’ profitability. In the empirical part, primary quantitative research was carried out. The subject of quantitative research was selected for analytical activities. The object of the research was SMEs in the Moravian-Silesian Region. The questionnaire survey was attended by 1 067 respondents. To evaluate the level of the utilisation of selected analytical activities, the PDCA method (Deming cycle), which is used to evaluate process quality, was modified. The choice of this method was inspired by the Anglo-Australian approach to the evaluation of relationship marketing based on quality management. The starting point for the application of the PDCA method was the mode. This article provides a different perspective on CRM level assessment. A research question addressed the level of analytical activities performed. This approach highlighted the highest level in the evaluation of sales, customer satisfaction analysis, and customer segmentation, which are basic marketing activities. CRM cannot work without these activities. The lowest level was reflected in customer churn prediction and in setting up a method of measuring customer loyalty. Building long-term relationships are the main CRM goal, which should contribute to improving the economic results of companies. Therefore, five hypotheses were formulated, expressing the relationship between the level of selected analytical activities and increasing profitability of the companies. The hypotheses were verified by regression analysis. All analytical activities had an impact on the profitability of companies.
{"title":"Using the Analytical Part of Crm in Small and Medium-Sized Enterprises in the Czech Republic","authors":"Adéla Langerová, H. Starzyczná, Š. Zapletalová","doi":"10.18267/J.CEBR.262","DOIUrl":"https://doi.org/10.18267/J.CEBR.262","url":null,"abstract":"The article aims to evaluate the level of the analytical part of CRM in SMEs in Czechia and its impact on increasing the companies’ profitability. In the empirical part, primary quantitative research was carried out. The subject of quantitative research was selected for analytical activities. The object of the research was SMEs in the Moravian-Silesian Region. The questionnaire survey was attended by 1 067 respondents. To evaluate the level of the utilisation of selected analytical activities, the PDCA method (Deming cycle), which is used to evaluate process quality, was modified. The choice of this method was inspired by the Anglo-Australian approach to the evaluation of relationship marketing based on quality management. The starting point for the application of the PDCA method was the mode. This article provides a different perspective on CRM level assessment. A research question addressed the level of analytical activities performed. This approach highlighted the highest level in the evaluation of sales, customer satisfaction analysis, and customer segmentation, which are basic marketing activities. CRM cannot work without these activities. The lowest level was reflected in customer churn prediction and in setting up a method of measuring customer loyalty. Building long-term relationships are the main CRM goal, which should contribute to improving the economic results of companies. Therefore, five hypotheses were formulated, expressing the relationship between the level of selected analytical activities and increasing profitability of the companies. The hypotheses were verified by regression analysis. All analytical activities had an impact on the profitability of companies.","PeriodicalId":37276,"journal":{"name":"Central European Business Review","volume":" ","pages":""},"PeriodicalIF":1.3,"publicationDate":"2021-01-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43091541","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Foreign Direct Investments (FDI) has been considered an important source of economic growth and technological development in transition economies. The previous empirical literature has shown that FDI promote economic growth via complementary effects on domestic investments, increases in productivity and overall economic efficiency, giving rise to an increasing interest in understanding the key determinants of FDI. Apart from traditional FDI determinants, favourable tax policy has been considered an important factor influencing MNCs’ location decisions. The goal of this paper is to investigate the impact of corporate income tax on FDI in the context of less advanced transition economies and to analyse whether the tax effect is conditional on the level of economic development. A small number of studies exist analysing the importance of tax policy regime in attracting FDI covering SouthEast European countries. In this study, we rely on panel gravity econometric framework and examine the impact of tax policy on FDI using bilateral FDI flows between 8 home and 8 South East Europe host countries in the period 2000–2018. We estimate the regression using Prais-Winsten correlated panels corrected standard errors PSCE method to obtain robust estimates of individual effects in the presence of heteroscedasticity and serial correlation. The seven SEE host countries included in the sample are considered of similar economic structures and institutional transformation, which seems important in analysing tax policy effectiveness and minimising biases associated with econometric modelling of FDI determinants. Finally, we study this relationship in an integrated framework considering traditional gravity forces as well as a number of additional FDI determinants, including institutional factors. We show that, although tax policy seems an important determinant of FDI, its effects seem to be conditional on the level of technological development. Given these findings, reducing corporate income tax may be considered an effective tool in promoting FDI, which seems to be of particular importance for less developed transition economies. The results are robust to different model specifications and consideration of endogeneity. Implications for Central European audience: The direct implications of this research for business policymakers in CEE include the need to revise and optimise the levels of corporate income tax and incorporate this specific policy instrument in FDI strategies. In particular, the results of this research indicate that tax cuts have been more effective in attracting FDI in countries that are at a lower level of technological sophistication. The managers could seek
{"title":"How Effective Is Tax Policy In Attracting Foreign Direct Investments In Transition Countries?","authors":"Sabina Silajdzic, Eldin Mehic","doi":"10.18267/j.cebr.274","DOIUrl":"https://doi.org/10.18267/j.cebr.274","url":null,"abstract":"Foreign Direct Investments (FDI) has been considered an important source of economic growth and technological development in transition economies. The previous empirical literature has shown that FDI promote economic growth via complementary effects on domestic investments, increases in productivity and overall economic efficiency, giving rise to an increasing interest in understanding the key determinants of FDI. Apart from traditional FDI determinants, favourable tax policy has been considered an important factor influencing MNCs’ location decisions. The goal of this paper is to investigate the impact of corporate income tax on FDI in the context of less advanced transition economies and to analyse whether the tax effect is conditional on the level of economic development. A small number of studies exist analysing the importance of tax policy regime in attracting FDI covering SouthEast European countries. In this study, we rely on panel gravity econometric framework and examine the impact of tax policy on FDI using bilateral FDI flows between 8 home and 8 South East Europe host countries in the period 2000–2018. We estimate the regression using Prais-Winsten correlated panels corrected standard errors PSCE method to obtain robust estimates of individual effects in the presence of heteroscedasticity and serial correlation. The seven SEE host countries included in the sample are considered of similar economic structures and institutional transformation, which seems important in analysing tax policy effectiveness and minimising biases associated with econometric modelling of FDI determinants. Finally, we study this relationship in an integrated framework considering traditional gravity forces as well as a number of additional FDI determinants, including institutional factors. We show that, although tax policy seems an important determinant of FDI, its effects seem to be conditional on the level of technological development. Given these findings, reducing corporate income tax may be considered an effective tool in promoting FDI, which seems to be of particular importance for less developed transition economies. The results are robust to different model specifications and consideration of endogeneity. Implications for Central European audience: The direct implications of this research for business policymakers in CEE include the need to revise and optimise the levels of corporate income tax and incorporate this specific policy instrument in FDI strategies. In particular, the results of this research indicate that tax cuts have been more effective in attracting FDI in countries that are at a lower level of technological sophistication. The managers could seek","PeriodicalId":37276,"journal":{"name":"Central European Business Review","volume":"1 1","pages":""},"PeriodicalIF":1.3,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67799596","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In this article, we focus on ethnocentrism applying to the theory of consumer behaviour while a relatively new concept of consumer ethnocentrism was created, which is under-studied in Slovakia. A patriotism indicates a second research issue. However, this concept is used in purchase and marketing conditions rarely. Based on these facts, we decided to contribute to a set of knowledge with new findings and broaden a knowledge base. This work’s main aim is to research consumer ethnocentrism and patriotism impact on evaluation and preference of domestic products. The primary quantitative survey supports this study. The fundamental part of our survey is 628 respondents. We created partial goals which produce a foundation for the phrasing of survey questions and hypotheses. These were tested by a one-way ANOVA test. We used a model of linear regressive analysis for pinpointing direction and frequency effect. Results suggest a strong link between consumer ethnocentrism and patriotism. Based on these results, consumer ethnocentrism and patriotism can be marked as factors that positively influence a preference and evaluation of domestic products. But both concepts show themselves in different frequency in different product categories. Based on the results, we can state that it is necessary to explore both concepts when speaking of product categories. Results can be used in different fields (sociology, psychology and marketing) while representing a benefit for a theory and practice. Implications for Central European audience: A knowledge used in different marketing campaigns supporting a domestic purchase can be established from the trade and marketing perspective. Noteworthy is also a discovery that the influence of concepts is not visible equally in each product categories. Results can be used by the Slovak republic government and domestic producers who are interested in an increase of competitiveness of domestic products. But also, it is for foreign producers who have an interest in expansion on the Slovak market.
{"title":"The Impact of Consumer Ethnocentrism and the Patriotism on Judgement for Selected Domestic Products: The Case of Slovakia","authors":"Marián Čvirik","doi":"10.18267/j.cebr.245","DOIUrl":"https://doi.org/10.18267/j.cebr.245","url":null,"abstract":"In this article, we focus on ethnocentrism applying to the theory of consumer behaviour while a relatively new concept of consumer ethnocentrism was created, which is under-studied in Slovakia. A patriotism indicates a second research issue. However, this concept is used in purchase and marketing conditions rarely. Based on these facts, we decided to contribute to a set of knowledge with new findings and broaden a knowledge base. This work’s main aim is to research consumer ethnocentrism and patriotism impact on evaluation and preference of domestic products. The primary quantitative survey supports this study. The fundamental part of our survey is 628 respondents. We created partial goals which produce a foundation for the phrasing of survey questions and hypotheses. These were tested by a one-way ANOVA test. We used a model of linear regressive analysis for pinpointing direction and frequency effect. Results suggest a strong link between consumer ethnocentrism and patriotism. Based on these results, consumer ethnocentrism and patriotism can be marked as factors that positively influence a preference and evaluation of domestic products. But both concepts show themselves in different frequency in different product categories. Based on the results, we can state that it is necessary to explore both concepts when speaking of product categories. Results can be used in different fields (sociology, psychology and marketing) while representing a benefit for a theory and practice. Implications for Central European audience: A knowledge used in different marketing campaigns supporting a domestic purchase can be established from the trade and marketing perspective. Noteworthy is also a discovery that the influence of concepts is not visible equally in each product categories. Results can be used by the Slovak republic government and domestic producers who are interested in an increase of competitiveness of domestic products. But also, it is for foreign producers who have an interest in expansion on the Slovak market.","PeriodicalId":37276,"journal":{"name":"Central European Business Review","volume":"1 1","pages":""},"PeriodicalIF":1.3,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67798923","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Vida Skudiene, Ieva Autytė-Kvedaravičienė, Ugne Gabrielaityte
This paper aims to examine how knowledge management is associated with perceived organisational innovativeness in global companies operating in Central European country and what role in this relationship is played by organisational environment stimulants – organisational trust, leadership support, training and access to resources, and information and communication technology (ICT). This empirical study used a quantitative approach with the data gathered by questionnaire from global companies functioning in IT service (94) and in money transfer service (109). The findings revealed that knowledge management is significantly associated with perceived organisational innovativeness in the global organisations’ context. Organisational environment stimulants (organisational trust, leadership support, training and access to resources, ICT) were confirmed to have a moderate positive association with perceived organisational innovativeness and mediated the relationship between knowledge management and perceived organisational innovativeness. The findings provide additional insights into the existing research on global companies’ knowledge management and suggest that global organisations aiming to foster their innovativeness through knowledge management should focus on the development of learning capability and orientation at the organisational level, as well as reconsider their level of organisational trust and leadership support perceived by employees. This research contributes to the literature by examining the relationship between knowledge management and perceived organisational innovativeness and looking into organisational environment stimulants’ role in this link in a specific global organisations’ context. Implications for Central European audience: when more and more global IT or financial service providers are looking for options to expand their business across the international borders, Central European countries like Lithuania become an attractive destination. The recommendations derived from the results indicate that leadership in global organisations should strive to create a sense of benevolence and aim to maintain integrity between communication and behaviour, particularly focusing on organisational trust development. Global business organisations’ managers must be able to communicate values and norms in a clear and transparent manner as well as ensure that organisational policies are governed
{"title":"Knowledge Management and Perceived Organisational Innovativeness in Global Organisations","authors":"Vida Skudiene, Ieva Autytė-Kvedaravičienė, Ugne Gabrielaityte","doi":"10.18267/j.cebr.260","DOIUrl":"https://doi.org/10.18267/j.cebr.260","url":null,"abstract":"This paper aims to examine how knowledge management is associated with perceived organisational innovativeness in global companies operating in Central European country and what role in this relationship is played by organisational environment stimulants – organisational trust, leadership support, training and access to resources, and information and communication technology (ICT). This empirical study used a quantitative approach with the data gathered by questionnaire from global companies functioning in IT service (94) and in money transfer service (109). The findings revealed that knowledge management is significantly associated with perceived organisational innovativeness in the global organisations’ context. Organisational environment stimulants (organisational trust, leadership support, training and access to resources, ICT) were confirmed to have a moderate positive association with perceived organisational innovativeness and mediated the relationship between knowledge management and perceived organisational innovativeness. The findings provide additional insights into the existing research on global companies’ knowledge management and suggest that global organisations aiming to foster their innovativeness through knowledge management should focus on the development of learning capability and orientation at the organisational level, as well as reconsider their level of organisational trust and leadership support perceived by employees. This research contributes to the literature by examining the relationship between knowledge management and perceived organisational innovativeness and looking into organisational environment stimulants’ role in this link in a specific global organisations’ context. Implications for Central European audience: when more and more global IT or financial service providers are looking for options to expand their business across the international borders, Central European countries like Lithuania become an attractive destination. The recommendations derived from the results indicate that leadership in global organisations should strive to create a sense of benevolence and aim to maintain integrity between communication and behaviour, particularly focusing on organisational trust development. Global business organisations’ managers must be able to communicate values and norms in a clear and transparent manner as well as ensure that organisational policies are governed","PeriodicalId":37276,"journal":{"name":"Central European Business Review","volume":" ","pages":""},"PeriodicalIF":1.3,"publicationDate":"2020-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43419268","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
There is empirical evidence that business commitment to the Corporate Social Responsibility (CSR) principles has a direct positive impact on customer loyalty, employees’ performance, and, as a result, on the company’s value. The goal of the current paper is to evaluate the perceived importance of the company’s CSR-related practices from the viewpoint of employees. One hundred nineteen representatives of Latvian companies were surveyed, using the authors’ developed questionnaire consisted of 35 statements. Survey data was processed applying the frequency analysis and the logistic regression method. Most of the respondents (84%) perceive the company’s commitment to CSR principles as necessary. The base on the frequency analysis results, the most important CSR elements from the viewpoint of Latvian employees are paid leaves, consumer interests, and salary. Logistic regression yielded the elements, which contribute the most to the positive perception of CSR: ‘flexible work’, ‘support staff relaxation’ and ‘claims submission system’ within the group’ staff matters’. The measurement scale was tested for reliability and, based on Cronbach alpha results, was accepted as appropriate for use in a cross-country survey. Implications for Central European audience: Despite the high interest in CSR-related issues in academia, the number of published works in Baltic countries is limited. In this particular study, the authors tried to identify — what exactly affects employees’ positive attitude to CSR commitment — the company’s participation in charity programmes or its environmental responsibility, for example? This survey contributed to the theoretical knowledge base about CSR perception among the staff of Latvian companies. In turn, the future survey is planned to be extended, involving respondents from Central and Eastern European countries. This, in turn, will allow making conclusions about the differences in attitude to CSR practices expressed by employees from different countries.
{"title":"Corporate Social Responsibility Perceived by Employees: Latvian Survey Results","authors":"J. Titko, Viktorija Skvarciany, T. Tambovceva","doi":"10.18267/j.cebr.258","DOIUrl":"https://doi.org/10.18267/j.cebr.258","url":null,"abstract":"There is empirical evidence that business commitment to the Corporate Social Responsibility (CSR) principles has a direct positive impact on customer loyalty, employees’ performance, and, as a result, on the company’s value. The goal of the current paper is to evaluate the perceived importance of the company’s CSR-related practices from the viewpoint of employees. One hundred nineteen representatives of Latvian companies were surveyed, using the authors’ developed questionnaire consisted of 35 statements. Survey data was processed applying the frequency analysis and the logistic regression method. Most of the respondents (84%) perceive the company’s commitment to CSR principles as necessary. The base on the frequency analysis results, the most important CSR elements from the viewpoint of Latvian employees are paid leaves, consumer interests, and salary. Logistic regression yielded the elements, which contribute the most to the positive perception of CSR: ‘flexible work’, ‘support staff relaxation’ and ‘claims submission system’ within the group’ staff matters’. The measurement scale was tested for reliability and, based on Cronbach alpha results, was accepted as appropriate for use in a cross-country survey. Implications for Central European audience: Despite the high interest in CSR-related issues in academia, the number of published works in Baltic countries is limited. In this particular study, the authors tried to identify — what exactly affects employees’ positive attitude to CSR commitment — the company’s participation in charity programmes or its environmental responsibility, for example? This survey contributed to the theoretical knowledge base about CSR perception among the staff of Latvian companies. In turn, the future survey is planned to be extended, involving respondents from Central and Eastern European countries. This, in turn, will allow making conclusions about the differences in attitude to CSR practices expressed by employees from different countries.","PeriodicalId":37276,"journal":{"name":"Central European Business Review","volume":"1 1","pages":""},"PeriodicalIF":1.3,"publicationDate":"2020-12-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42257813","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：