Macroeconomic Determinants of the Non-performing Placements and Off-balance Sheet Liabilities of Croatian Banks
Manuel Benazić
Juraj Dobrila University of Pula, Faculty of Economics and Tourism “Dr. Mijo Mirković”, Preradovića 1/1, 52 100 Pula, Croatia
Dajana Radin
Juraj Dobrila University of Pula, Faculty of Economics and Tourism “Dr. Mijo Mirković”, Preradovića 1/1, 52 100 Pula, Croatia
Abstract
Background/Purpose: The non-performing placements and off-balance sheet liabilities are often considered key factors that lead to banking crises. Economic and financial crises increase the level of the non-performing placements and off-balance sheet liabilities which can cause significant losses for banks. Effective management and regulatory/ supervisory institutions such central banks should be able to recognize and quantify these effects. Therefore, the purpose of this study is to empirically determine the existence and the quantitative impact of main Croatian macroeconomic variables on the non-performing placements and off-balance sheet liabilities of Croatian banks in the long and short-run. Methodology: For this purpose the bounds testing (ARDL) approach for cointegration is applied. The ARDL model is performed in two steps. The first step starts with conducting the bounds test for cointegration. In the second step, when cointegration is found, the long-run relationship and the associated error correction model are estimated. Results: The results indicate the existence of stable cointegration relationship between the variables i.e. in the long-run, an increase in real GDP reduces the level of the non-performing placements and off-balance sheet liabilities of Croatian banks wherein an increase in prices, unemployment, interest rate and the depreciation of the Croatian kuna exchange rate increases their level. On the other hand, in the short-run the results are rather mixed. Conclusion: To avoid crises, effective bank management and regulatory/supervisory institutions should be able to recognize and quantify these effects. This is a necessary precondition for implementation of an adequate prudential and monetary policy measures for reducing the level of the non-performing placements and off-balance sheet liabilities.
Background/Purpose: Though Mobile Wallets have the potential to entirely substitute their physical predecessor, many Mobile Wallets narrow their operations to one particular feature. This might be because of strategic business-model design choices to position themselves strategically as intermediates between users and business partners (third parties) in more delimited markets. Thus, Mobile Wallet Applications (MWAs) often represent platforms in narrow two-sided market structures. Design/Methodology/Approach: The paper focuses on the economics of such platforms by the means of a business model analysis. It examines how business partners are integrated in four MWAs’ strategies: Key Ring, FidMe, Apple Passbook and Qustomer. Results: The paper shows that MWAs strive to incorporate not only a large quantity of partners but also such with a high brand value (quality of partners) in their organization design. These partners shape their service design since none of the platforms offer products or services themselves. Hence, MWAs are dependent on the third parties’ capacity and willingness to fulfill engagements and meet the customer demands. Conclusion: MWAs – though concerned with the inclusion and management of loyalty points and schemes – do not leverage the possibility to generate revenue via third parties’ loyalty points. Theoretically, MWAs could reward or redeem loyalty points themselves.
Analysis of Online Marketing Management in Czech Republic
Zdenek Smutny
Department of Systems Analysis, Faculty of Informatics and Statistics, University of Economics, Prague
Abstract
Background/Purpose: Doing business over the Internet has become increasingly competitive for many companies. The aim of this study is to analyse the current state of utilizing online tools, approaches of Czech companies to the management of online marketing activities and to identify weaknesses and opportunities of these activities. Methodology/Approach: The paper presents empirical research that uses two different approaches in investigation: (1) descriptive quantitative research of current state, based on examination of websites of a sample of 4,584 Czech companies and (2) questionnaire survey among 161 Czech companies which do business via the Internet. Results: There is a large gap that currently exist between the use of social media and its connection to marketing activities. The competitive level of the use of social media in the Czech Republic is still low compared to the USA companies. The online marketing management (OMM) of the majority of companies rely on individual assessment and do not use any metrics or management methodologies. One of the main problems of OMM is the ever increasing number of tools used in marketing activities as well as low possibility of a broader perspective on the success of cross channel marketing activities. Conclusion: In the future, it is expected that a large number of Czech companies will increasingly use online tools as social media for their marketing activities. In the context of this development they cannot rely only on individual assessment to manage these activities as they do currently, but they will have to use comprehensive tools or methodologies. Based on this, we can conclude that Czech companies still have enough opportunities for a better use of online tools for marketing purposes.
Organizational Ambidexterity, Exploration, Exploitation and Firms Innovation Performance
Mladenka Popadić
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija, Croatia
Matej Černe
University of Ljubljana, Faculty of Economics, Slovenia
Ines Milohnić
University of Rijeka, Faculty of Tourism and Hospitality Management Opatija, Croatia
Abstract
Background/Purpose: The construct of organizational ambidexterity (OA) has attracted the growing attention in management research. Previous empirical research has investigated the effect of organisational ambidexterity on performance from various perspectives. This study aims to resolve the contradictory previous research findings on the relationship between organisational ambidexterity and innovation performance. We unpack this construct with combined dimension of ambidexterity, which relates to a combination of high levels of both exploration and exploitation (introduction of products or services that were new to the market and new to the firm). Methodology: We frame our ambidexterity hypothesis in terms of firm’s innovation orientation. The hypothesis is tested by using Community Innovation Survey (CIS) 2006 micro data at the organizational level in twelve countries. To operationalize an ambidexterity and firms innovation outcome, we used self-reported measures of innovativeness. Results: To test our hypothesis, we developed a set of models and tested them with multiple hierarchical linear regression analyses. The results indicate that exploration and exploitation are positively related to firm’s innovation performances which supports our assumption that both are complementary. Furthermore, we find that above and over their independent effects, through combining them into a single construct of organizational ambidexterity, this variable remains negatively and significantly related to innovation performance. Conclusion: These results provides the managers with an idea of when managing trade-offs between exploration and exploitation would be more favorable versus detrimental. For firms with lower organizational ambidexterity, the relationship between exploration-exploitation and the firm’s innovation performance is a more positive one.
Quality Evaluation Information Support in Higher Education
Tatjana Kovač
Faculty of Commercial and Business Sciences, Lava 7, 3000 Celje
Abstract
Background/Purpose: The objective of this research was to develop a proposal of the evaluation information support in higher education that encompasses the Quality Assessor’s and Quality Analyst’s work support. Furthermore, the proposal also includes the fields evaluated in the processes of external evaluation of the higher education institutes by the Slovenian National Agency for Quality Assurance in Higher Education (hereinafter referred to as »NAKVIS«). Methodology: The method called the “Multi-Attribute Utility Theory” (hereinafter referred to as “MAUT”) and MS Excel were used for the work support of the Quality Assessors, while the expert modelling in the Decision Expert programme (hereinafter referred to as “Dexi programme”) was used for the work support of the Quality Analysts. Results: The identified criteria allow a uniform evaluation, regardless of the Assessor. The MS Excel template with automatic calculation was made as the technical support for an evaluator and the expert model in Dexi programme was designed for a Quality Analyst. Conclusion: The model of the Higher Education Institute quality evaluation, as presented in this article, can provide a comprehensive and transparent consideration of quality at the Faculty, and, in particular, facilitate the evaluation process due to its information and technical support.
Commercialization Methods of a New Product/service in ICT Industry: Case of a Science and Technology Park
Alireza Aslani
Faculty of New Sciences and Technology, University of Tehran, Tehran, Iran
Hossein Eftekhari
Faculty of New Sciences and Technology, University of Tehran, Tehran, Iran
Mahdi Hamidi
Faculty of New Sciences and Technology, University of Tehran, Tehran, Iran
Bahareh Nabavi
Faculty of New Sciences and Technology, University of Tehran, Tehran, Iran
Abstract
Background/Purpose: Commercialization is a step toward new products/services development. Due to high rate of product/service failure in ICT industry, the purpose of this paper is to study and evaluate commercialization methods implemented by companies that operate within ICT industry at the Science and Technology Park of University of Tehran. Design/Methodology/Approach: The methodology of this study is of field research type. After examining commercialization methods presented in the literature and confirming methods found by the discipline elite, structured interviews were conducted addressed managers and experts of ICT companies. Results: Three methods of “joint research contracts”, “exhibitions” and “spin-offs” are among the most common commercialization methods used by companies. Conclusion: Due to uncertainties that exist in ICT industry, companies should consider different strategies in order to develop successful products and services. Finally, specific policies are determined to implement each commercialization method in knowledge-based companies.
