A significant level of uniqueness and variability of the carried out tasks compel the management of contemporary organizations to continuously search for methods and concepts allowing to increase flexibility in adapting their organizations to ongoing changes. One of such concepts oriented at increasing the levels of flexibility of an organization is strategy, which up to the end of the last century was used mainly in organizations driven by financial results. Yet the analysis of the phenomena taking place in both the closer and more removed environment of the local administration allows us to observe that these entities, operating under public scrutiny and political pressure, have to face up to increasingly complex requirements regarding the reduction of time spent on the realization of tasks in hand having limited financial resources at their disposal and ensuring the high quality of the services rendered which is possible, among others, due to locating their activities in strategic space. However it should be noted that in order to obtain results expected from the strategy, it is necessary to adjust the level of its advancement to both external and internal conditions, which in turn demands evaluating its strategic maturity. The aim of this article is to present the authors’ proposal of a model for evaluation of strategic maturity of the local government, based on the assumptions of the good governance concept. On the basis of the analysed subject literature, the authors addressed the essence of the concept of good governance, pointed out the role of maturity models in the process of improving an organization and discussed the importance of strategy in the local administration. The demonstrated need for conducting evaluation of the levels of maturity in the strategy of local government, as well as the advisability of including in the process of evaluation the main assumptions of the good governance concept raised in this study, provided the basis for the proposed model of evaluating strategic maturity of the local government.
Purpose: Acknowledging the key role of knowledge transfer as the primarily mechanism, through which firms replicate organizational routines, this paper addresses the role of reverse knowledge flows in routine replication programs and attempts identifying a set of mechanisms that could facilitate these knowledge flows. Furthermore, the article aims to provide a proposal for a structured approach to reverse knowledge flow management that would combine in the same framework (1) the deployment of routines in new contexts and (2) the collection, transformation, and redeployment of local knowledge.
Methodology: The applied methodology follows the interpretative research approach. It draws from a longitudinal study of a seven-year-long replication program, during which an ERP template has been deployed in twenty-five manufacturing sites and five regional offices of a leading multinational FMCG company. The main research method was participant observation complemented with interviews, project documentation, and e-mail communication analysis.
Findings: The paper shows that, in the course of multiple replications, the replicated template becomes subject to several adjustments in order to fit new requirements, eliminate observed shortcomings, and adopt learnings from previous deployment sites. The article further demonstrates that keeping such template enhancement process effective requires deliberate management of reverse knowledge flows, which maturity should grow in parallel to the scope of the program and number of replications. This means that reverse knowledge flows must increasingly base on well-established processes with assigned resources, clear responsibilities, and socio-material mechanisms. This is a prerequisite for the subsequent deployments and retrofits of an enriched template to become the key vehicle for the diffusion of local learnings on a company-wide scale.
Originality: This paper contributes to the literature on organizational routines by addressing the role of reverse knowledge flows in routine replication processes, proposing a structured approach to reverse knowledge flow management in routine replication programs, and presenting a maturity model for a reverse knowledge flow management system.
The aim of this article is to present the results of a study on the convergence of financial accounting and management accounting in companies operating in Poland against the background of international solutions. The survey, carried out in 2017, was used to collect data. Based on the questionnaire returned by 40 companies, it was found that the level of convergence of financial accounting and management accounting in Polish enterprises is moderate. The number of worldwide studies on the convergence of accounting is very limited, and in Poland they are quite unique. For this reason, the study presented in this article is relevant both for science and the practice of accounting.
Accounting it’s an important component of the economic information system. E. Horomnea believes that through specific means and procedures, accounting provides: clarifications of the past and the present of the economic entities, pertinent analyzes that are directed to the market; provides guidance on the strategic future; provides motivations and solutions for the decisions made. This article will analyze the evolution of managerial accounting from traditional costing to the new guidelines, when the issue of creating added value and managing third parties needs represents the future of any information system. After 1987 there are continuous changes and concerns, not only at Romanian level but at world wide scale.
This paper investigates the basic risk and incentives relationship in franchising companies. The results of past research reflect volatile influence of risk and incentives. An in-depth analysis of this relationship was conducted using case study approach, including 12 international franchise firms of two types. Our study included retail and service franchising. Findings from this research confirm basic agency theory predictions. The risk-incentives relationship is negatively correlated in retail franchise companies, due to lower royalties in the sector. Service franchise companies do not follow the same concept, due to their adaptability of franchise system to local markets. We believe service franchise systems might be responsible for volatility. However, both types of companies nurture and develop strategies based on experience and intuition. Findings of the research offer important insights in understanding the nature of franchisor’s risk perception, as the basic underlying mechanism to the risk and incentives relationship.
The privatisation of state-owned companies is still on the agenda of many governments worldwide. One often stated goal in the privatisation process is the increase of efficiency of the company.
The question is which factors do lead to an increase in efficiency and performance of a privatised company. Where are the fundamental differences between public and private companies in this respect? One goal of this paper is also to determine if other or additional variables influence the efficiency of privatised companies in transitional countries - in contrast to developed economies. Based on the research literature, a model was developed that displays all major forces and effects in the privatisation process. Two case studies of telecommunications companies in Germany and Romania are utilised to verify the model. It is expected that privatisation will lead to an increase of efficiency, but that the main thrust derives from competition. Regulation and organisational change will typically also increase the efficiency of the company. The variables “laws and policies” and “economic condition” are of special importance for privatisations in transition economies.
Purpose: The aim of this study is to review the effects of psychological capital on employees’ burn-out in the work environment. This research is paired with Self-Efficacy Theory, which emphasizes that the results of efforts and performances are the most significant sources of self-efficacy.
Methodology: Data collected from 416 Turkish workers employed at public institutions in Turkey were included in the analyses to identify the effects of psychological capital on burnout by using two different types of scales (burnout and psychological capital scales) into a single questionnaire form with Likert-type response scale. Beside the Reliability Analysis, different statistical valuation methods –such as regression and correlation analyses– have also been used.
Findings: The results of analyses conducted on the sample of 416 Turkish workers reveal that statistically significant relationships appear between self-efficacy and depersonalization, hope and low personal accomplishment, optimism and emotional exhaustion, optimism and depersonalization. Optimism is negatively related to emotional exhaustion and depersonalization while positively and insignificantly related to low personal accomplishment. Both self-efficacy and optimism are significantly effective in explaining depersonalization. Hope positively and significantly contributes to explain the low personal accomplishment level of employees. On the other hand, optimism negatively and significantly contributes to emotional exhaustion.
Implications: As found in the results of this research, optimism will decrease emotional exhaustion. Resilient people can more easily adapt to changes in life. Organizations may focus not only on improving organizational structure but also foregrounding workers’ positive personality traits and healthy psychological capital systems.
Value: This research which emphasizes the effects of psychological capital on burnout levels of employees is as valuable as others in relevant literature with different research results which are more valuable than the other.
The aim of this study is to explore how the effects of components belonging to the concept of strategic management system influence outstanding achievement and success in the processing industry in Hungary as well as the sustainability success component within that. In order to do that, the study defines the factors having an influence. Thereafter, it explains the successful operation of companies with the help of factors emerging via path analysis using regression models. It uses the balanced scorecard as a tool for success criteria describing success. This is a non-market aspect that has an impact on the whole system, making it of crucial importance. Via the exploration of effects, it can be shown the deliberate use of those factors that generate outstanding results and success from the point of view of sustainability, and thus internal development, customer appreciation, and financial success. By taking the results of the research into consideration, it will also be revealed that success factors in the processing industry in Hungary have the most direct and the largest impact on outstanding sustainability performance.
This work justifies the “Igba-odibo” (Traditional Business School) concept as a business strategy for achieving success in business which is measured through business/opportunity utilization, customer relationship/business networking and capital acquisition for business. It gives the in-depth symbolic interpretation and application of the dependent and independent variables used. The paper extends its discussion on the significance of these business strategies as practised among Igbo entrepreneurs and on how they equip Igbo entrepreneurs to immensely contribute their quotas in the area of developing entrepreneurship in Nigeria in particular and the globe in general. Research questions were formulated to investigate the relationship between business strategy and success. Related literature was reviewed. The study population covers the household equipment line of Main Market Onitsha in Anambra State, Nigeria, which has shop capacities of over five hundred, which were used to assume the population of the study – out of the 300 questionnaires administered to the directors of the business or the Masters/Mistresses, who were the business owners during the study, 180 were returned, 73 were invalid, so the researcher was left with 107 valid questionnaires to work with. The data collected were tested using frequency tables, percentages, Pearson Product-Moment correlation analysis, and regression analysis. The result shows that there is a strong positive relationship between the two variables. The researcher recommends that the government should encourage and strongly support these entrepreneurs by providing loans and adequate infrastructure that aids business.
Purpose: The paper examines auditors’ experiences with corporate governance (CG) in general and audit committees (ACs) in particular in the setting of a Polish two-tier board system and a capital market characterized by high ownership concentration, which therefore extends the research on CG practices of an economy beyond the well-researched Anglo-American model.
Methodology: This study adopts a qualitative research approach by using interview data from fifteen interviews with auditors working with large publicly-listed companies in Poland to examine the relationships among auditors, Audit Committees, and CG.
Findings: The auditors indicate that the CG environment has changed. However, the institutionalization of an AC in Poland generally is the subject of coercive isomorphic pressures, which lead to its decoupling and transition toward a ritualistic role. Moreover, auditors report only some reliance on CG information in the planning phase and none in the field-testing or review phases.
Originality: The findings differ from those of prior studies conducted predominantly in the USA and the UK, in which auditors reported far greater reliance on CG in all phases of the audit process. The two possible reasons for this difference in findings could be the different development stages between capital markets and different CG systems.