pag. 34	A Cross-Cultural View of Strategic Competency: The Perspective of SME Entrepreneurs Author: Noor Hazlina AHMAD, Hasliza Abdul HALIM
	Abstract The present study attempts to understand the prevalence of strategic competency among entrepreneurs in small and medium sized enterprises (SMEs) in Australia and Malaysia. A sample of 20 SME entrepreneurs from Australia and Malaysia participated in this study. A series of interviews were conducted to probe into the behaviours that delineate strategic competency among these entrepreneurs. The results showed that SME entrepreneurs in both countries highlighted the importance of strategic competency in managing and running their ventures despite some minor variations in terms of the practices across country. This study provides entrepreneurs with knowledge about the way they should operate their business and encourages them to be conscious of the importance of strategic competency in managing their business and increasing the odds of success. The study also shows that entrepreneurs are capable of minimising the negative impact of business environment if they are willing to equip themselves with strategic competency. JEL Classification: M13, M14, M19, N35 Keywords: Entrepreneurs, Culture, Strategic, Malaysia, Australia

 

pag. 46	Financial Distress in Small and Medium Enterprises (SMEs) of Bangladesh: Determinants and Remedial Measures Authors: Mohammad Saleh JAHUR, S. M. Nasrul QUADIR
	Abstract Financial distress in SMEs is a common phenomenon across the world, which has been a subject matter of academicians, professionals and government. Although SMEs are contributing to the economy in the form of employment, supply of products and services by using indigenous technologies, social entrepreneurship, income generating activities etc. SMEs are found most vulnerable to the macro-economic as well as internal management crises. Consequently, they fall into financial distress. In view of this, the present study has been undertaken aiming at identifying the causes of financial distress in SMEs of Bangladesh. The study has employed both financial and statistical techniques for analyzing the data collected for the study. The study has identified some potential problem areas related to financial distress such as rate adequacy, sales trends, indebtedness, management capability, financial planning, etc. The study has also identified some most important causes of financial distress such as fund management & resource crunch, poor accounting system, poor financial control, poor productivity and profitability and management succession. The study has finally come out some strategic and policy related measures for both viable and financially distressed SMEs for preventing them from the exposition to financial and operating risk. JEL Classification: L20, L26, L53, M10    Keywords: Financial Distress, Accounting System, Fund Crunch, and Productivity.

 

pag. 62	Reflections on the Competitiveness of Small and Medium Enterprises in Romania Author: Ludmila (RAILEAN) PĂUNESCU
	Abstract The issue of competitiveness has become a hot topic at each actor of the economy from the economic regions to that of any organization. For these reasons, the owner or manager is interested in taking action on the development of small and medium sector, and thus, increase its competitiveness. Given the set, in this paper, we propose to determine and to highlight details of the actions undertaken or planned by government and local authorities to support the creation, development and strengthening of SME's, as a reflection of the recognition of the important role they play in the process of development. JEL Classification: M10, L11, L21 Keywords: competitiveness, the difficulties SME's, courses of action, development, measures

 

pag. 70	Knowledge Based Economy Assessment in Romania Author: Ion Sebastian CEPTUREANU, Eduard Gabriel CEPTUREANU, Alina TUDORACHE, Fillip ZGUBEA
	Abstract Knowledge and ability to create it, access and use effectively, has long been both an instrument of innovation and competition and a key economic and social development. However, a series of dramatic changes in recent years have increased the importance of knowledge for generating competitive advantage. Ability to process and use information globally and instantly increased exponentially in recent years due to a combination of scientific progress in computing and distributed computing, exacerbation of competition, innovation in all its forms and cuts of operating costs in global communication networks. As barriers to access knowledge regarding a process, product or market are gradually decreasing (distance, geographical features, and costs), knowledge and skills are becoming increasingly a key to competitiveness, both locally and globally. This paper, based on a survey of 551 Romanian companies, address a sensitive issue of both business and academic fields - perception of knowledge based economy in Romanian companies. Its conclusion can guide decision makers in Romania to develop an integrated approach to foster knowledge based economy in our country. JEL Classification:  D83, O32 Keywords: knowledge based economy, Romanian companies, awareness of KE, transition to KE

 

pag. 88	The Effects of Application of Lean Concept in Retail Author: Radojko LUKIC
	Abstract Lean principles and techniques can be successfully applied in the retail sector. In the retail sector, lean approach improves operational flows. Lean retail encourages manufacturers to produce standard products in accordance with the created (placed) orders from retailers pursuant to the demand of their consumers. Characteristics of the retail market are: strong competition, shorter product life cycle, longer product development time and high sensitivity of demand. In order to be more competitive and profitable today's retailers operate strategically oriented to lower prices and gain exemption from holding unnecessary stocks. Lean retail is an example of best practices of successful operational strategies which management need to accept - to maximize the operating efficiency of the retail process. JEL Classification: D40, L11, L25, L81, M30, M40, M41 Keywords: Toyota production system, the transformation of retail operations, waste, consumption, distribution, agile supply, efficient consumer response.

 

pag. 99	A Theoretical Bayesian Game Model for the Vendor-Retailer Relation Authors: Emil CRIŞAN, Ilie PARPUCEA
	Abstract We consider an equilibrated supply chain with two equal partners, a vendor and a retailer (also called newsboy type products supply chain). The actions of each partner are driven by profit. Given the fact that at supply chain level are specific external influences which affect the costs and concordant the profit, we use a game theoretic model for the situation, considering costs and demand. At theoretical level, symmetric and asymmetric information patterns are considered for this situation. There are at every supply chain's level situations when external factors (such as inflation, raw-material rate) influence the situation of each partner even if the information is well shared within the chain. The model we propose considers both the external factors and asymmetric information within a supply chain. JEL Classification: M19 Keywords: game theory, supply chain management, symmetric information, asymmetric information

 

pag. 108	Economic Performance of Organic Farming in Romania and European Union Author:  Florentina CONSTANTIN
	Abstract This study aims to offer an overview of the current status of organic farming in Romania and European Union. Items related to organic farming are approached, namely: conceptual framework, principles, national and community legislative and regulatory framework, sustaining policy of organic farming, as well as the comparative analysis of organic farming sector in Romania and other states of the European Union. JEL Classification: Q15, Q18 Keywords: organic farming, environment protection, health, Good Agriculture and Environment Conditions

 

pag. 120	The Optimization of the Local Public Policies' Development Process Through Modeling and Simulation Authors: Minodora URSĂCESCU , Cleopatra ŞENDROIU, Ioan RADU
	Abstract The local public policies development in Romania represents an empirically realized measure, the strategic management practices in this domain not being based on a scientific instrument capable to anticipate and evaluate the results of implementing a local public policy in a logic of needs-policies-effects type. Beginning from this motivation, the purpose of the paper resides in the reconceptualization of the public policies process on functioning principles of the dynamic systems with inverse connection, by means of mathematical modeling and techniques simulation. Therefore, the research is oriented in the direction of developing an optimization method for the local public policies development process, using as instruments the mathematical modeling and the techniques simulation. The research's main results are on the one side constituted by generating a new process concept of the local public policies, and on the other side by proposing the conceptual model of a complex software product which will permit the parameterized modeling in a virtual environment of these policies development process. The informatic product's finality resides in modeling and simulating each local public policy type, taking into account the respective policy's characteristics, but also the value of their appliance environment parameters in a certain moment. JEL Classification: H83 Keywords: dynamic systems with inverse connection, expert simulator of local public policies, expert system, knowledge base, working memory.

  

pag. 129	Challenges in Implementing FP7 Projects in the Public Institutions Author: Viorel VULTURESCU, Nicoleta DUMITRACHE, Daniela VASILE, Constanţa-Nicoleta BODEA
	Abstract National Authority for Scientific Research (ANCS) and Executive Unit for Higher Education, Research and Development and Innovation Funding (UEFISCDI) participate to several projects funded under the Framework Programmes, since 1998. The staff from each the two organisations participating in projects are merely the same, typically from ''international cooperation'' departments. In each of the two organisations, dedicated teams were set and a distinct specialization emerged. In this respect, dedicated procedures and good practices in project management were developed. Even the Framework Programs had different structures and the focused was different (e.g. knowledge creation, EU problem solving, scientific support for policies and programs, etc.), the funding instruments (projects) were not radically different from a Framework Program to another, so the staff could gain experience in managing this type of projects. Experience and expertise gained during this long period of time led to definition of a general framework within the two institutions and setting up of a general guideline for participation to this type of projects. The main dimensions of this framework are: project team organization, project management process, managing results and risk, organisational framework, good practices, factors which ensure success in project implementation. The paper presents a specific framework for FP 7 project implementation and how this framework is applied by both organisations, a set of rules and procedures that should be followed by any organisation, in particular governmental ones, participating in FP 7 projects and a set of good practices developed by ANCS and UEFISCDI. JEL Classification: H00, H79, O22 Keywords: projects, scientific research, project management, 7th Framework programme, European Union.

 

pag. 142	The Impact of Public R&D Funding on Open Innovation Author: Pekka SALMI
	Abstract While the effects of public R&D funding on innovation inputs, outputs and strategies of firms have been studied extensively, little is known about the impact public R&D funding may have on open innovation practices. We made several hypotheses about different effects of public subsidies from the open innovation point of view and then tested these hypotheses with data that comes from a survey on innovation practices in China, Finland and Spain. More specifically, the prevalence of open innovation in a country was hypothesized to be related to the level of public R&D funding. The results show that Chinese firms make external technology/IP acquisitions more often, as well as engage more frequently in selling of intellectual assets, than their Spanish (and Finnish) counterparts. The results also show that Chinese firms are less likely to make new collaboration agreements after participating in publicly funded R&D projects. The findings therefore generally support the idea that a lower level of available public R&D funding facilitates the adoption of open innovation practices in firms. JEL Classification:  H25, O32, O34, O38 Keywords: intellectual assets, open innovation, public subsidies, R&D collaboration.

 

pag. 164	On Innovation: A Theoretical Approach on the Challenges of Utilities Marketing Authors:  Florina PiNZARU
	Abstract One of the markets not long ago closed and completely regulated is now in the growing process of liberalization and deregulation: it is the utilities market we refer to (water, sewege, gas, electricity, waste collection). The deregulation of a market is usually followed by the appearance of competition expression conditions and, unassailably, the occurrence of specific marketing strategies. This paper investigates the specific of utilities marketing as it develops now, an bourgeoning domain, although with a rather discreet presence in this field's theoretical analysis studies. Exploratory research on the analysis type products, promotional offers and communication of this market's players shows an effervescent players practice, but also a continuous innovation necessary in a market where consumers are unfamiliar with bein persuaded by commercial means. JEL Classification: M21, M31, L90 Keywords: utilities, energy, business-to-business, business-to-consumer, innovation

 

pag. 173	An Empirical Investigation of External Debt - Military Expenditure Nexus in Bangladesh Authors: Khalid ZAMAN, Qazi Shujaat MAHMOOD, Muhammad Mushtaq KHAN, Awais RASHID, Mehboob AHMAD
	Abstract The objective of this paper is to empirically investigate a two-way statistical relationship between the real external debt and real military expenditure in the context of Bangladesh. A time series co-integration and Granger causality tests have been employed from 1980 - 2009 for analysis. The empirical results support the bi-directional causality between the external debt and economic growth, while unidirectional causality runs from military spending to external debt. JEL Classification: H00, C1, C2 Keywords: Bangladesh, Cointegration, Granger causality, Real Arms import, Real External debt, Real Military expenditure.

 

pag. 189	Taylor Principle Supplements the Fisher Effect: Empirical Investigation under the US Context Authors: Mohammed Saiful ISLAM, Mohammad Hasmat ALI
	Abstract This paper reviews the short- and long-run dynamics of interest rate and inflation of the United States. Basing upon quarterly as well as monthly data over the period 1957 to 2010, we find evidence that interest rate behaviour of the Federal Reserve is consistent with the Taylor principle in short run and with the Fisher hypothesis in long run. Entire sample justifies the existence of a long run cointegrating relationship between federal funds rate and inflation characterised as the Fisher effect. When data are split into different subsamples, the cointegrating relationship disappears. Interest rate dynamics of pre-1980 and post-2001 neither track Fisher hypothesis nor Taylor principle, rather represent substantial discretion. JEL Classification: E43, E52, E59 Keywords: Fisher Effect, Monetary Policy, Taylor Principle

 

pag. 204	The Impact of Tourism Sector Development in the Albanian Economy Author: Alba KRUJA
	Abstract Today tourism is viewed as one of the largest and dynamically developing sectors of external economic activities in the world. The development of tourism sector is associated with considerable volumes of foreign currency inflows, new employment opportunities, infrastructure development, and new management experiences. All of these together positively contribute to the social and economic development of the countries. Beside these there are also other effects of tourism which will be considered in this paper. The aim of the research is to examine the impact of tourism sector development on the country economy. The methods of research are: analysis and synthesis of the scientific literature discussing the positive and negative impacts of tourism sector on the social and economic development of the countries; the systematic statistical data analysis of the direct contribution of the sector on the GDP and employment of Albania as a country in its infancy of development, compared to other European countries in maturity. The statistical data used in this research is provided by INSTAT (Albanian Institute of Statistics), AKT (National Tourism Agency) and TSA (Tourism Satellite Account), a methodology quantified by the UN Statistics Division for the statistical data provided for the direct contribution of Travel & Tourism. JEL Classification: L8 Keywords: Albania, Economic Development, Tourism Sector.

 

pag. 219	Analysis of Foreign Direct Investment Determinants at the Level of a County in Romania Author: Răzvan Cătălin DOBREA, Elena ŞERBAN
	Abstract The attraction of the foreign direct investment (FDI) represents a major challenge both at macroeconomic level from the perspective of the central public authorities and at the microeconomic one from the point of view of all entities involved in this process. While the FDI attraction problem is widely debated in the specialty literature at macro level, at micro level the representative solutions and models are still being searched for. The main objective of the realized research was the identification and analysis of some FDI attractively variables, on the example of a county in Romania. Based on the obtained results we proposed the development of a model, available both for the potential investors and for other regions with lower performances in order to improve the situation. JEL Classification: O16, R53, M21 Keywords: foreign direct investment, county, determinants, Romania

 

pag. 227	Knowledge Transfer in Virtual Communities Authors:  Chiva Marilena PAPUC
	Abstract Increasing development of information and communications technology, continuously transform how the world transmit, receive and manage information. Knowledge transfer switch from classic source - passive receiver to a more complex model, where each receiver can become a new source that regenerates and is thought to enhance the information received by adding its own added value and further resending it to an enhanced group of new receivers, often bigger than initial group. A current study performed jointly by State University of Milan and Facebook revealed that the degree of separation between any two people fell through six levels (as Stanley Milgram's theory, 1960) to less than four between Facebook users, shows that new patterns of social communication tend to transform humanity from a sum of individuals in a common consciousness, able to act in the common interest of humanity. JEL Classification: O33, A14 Keywords:  cKnowledge Transfer, Social Communication, Open Source, Creative Commons.

  

pag. 240	The Digital Divide in Romania - A Statistical Analysis Authors: Daniela BORISOV, Elena ŞERBAN
	Abstract The digital divide is a subject of major importance in the current economic circumstances in which Information and Communication Technologies (ICT) are seen as a significant determinant of increasing the domestic competitiveness and contribute to better life quality. Latest international reports regarding various aspects of ICT usage in modern society reveal a decrease of overall digital disparity towards the average trends of the worldwide ITC's sector - this relates to latest advances of mobile and computer penetration rates, both for personal use and for households/ business. In Romania, the low starting point in the development of economy and society in the ICT direction was, in some extent, compensated by the rapid annual growth of the last decade. Even with these dynamic developments, the statistical data still indicate poor positions in European Union hierarchy; in this respect, the prospects of a rapid recovery of the low performance of the Romanian ICT endowment and usage and the issue continue to be regarded as a challenge for progress in economic and societal terms. The paper presents several methods for assessing the current state of ICT related aspects in terms of Internet usage based on the latest data provided by international databases. The current position of Romanian economy is judged according to several economy using statistical methods based on variability measurements: the descriptive statistics indicators, static measures of disparities and distance metrics. JEL Classification: O33, A14 Keywords:  digital divide, statistical indicators, Romania