Introduction of soft budget constraint as an analyzing tool into public management. The case of the Hungarian public administration reform

Public management reforms are usually underpinned by arguments that they will make the public administration system more effective and efficient. In practice, however, it is very hard to determine whether a given reform will improve the efficiency and effectiveness of the public administration system in the long run. Here, I shall examine how the concept of the soft budget constraint (SBC) introduced by János Kornai (Kornai 1979, 1986; Kornai, Maskin & Roland 2003) can be applied to this problem. In the following, I shall describe the Hungarian public administration reforms implemented by the Orbán government from 2010 onward and analyze its reforms, focusing on which measures harden and which ones soften the budget constraint of the actors of the Hungarian public administration system. In the literature of economics, there is some evidence-based knowledge on how to harden/soften the budget constraint, which improves/reduces the effectiveness and hence the efficiency of the given system. By using the concept of SBC, I also hope to shed some light on the rationale behind the Hungarian government’s introduction of such a contradictory reform package. Previously, the concept of SBC was utilized narrowly in public management studies, mostly in the field of fiscal federalism. My goal is to apply the concept to a broader area of public management studies. My conclusion is that the concept of SBC can significantly contribute to public management studies by deepening our knowledge on the reasons behind the success and failure of public administration reforms.

A vállalkozói hajlandóság vizsgálata a női hallgatók körében Magyarországon (Research of entrepreneurial intentions of the Hungarian female students)

Köztudott, hogy a nők lényeges szerepet töltenek be a gazdasági életben, ezért fontos megvizsgálni azt, hogy melyek az ösztönző és az akadályozó tényezők a vállalkozásindításuk során. Egy 2011-es nemzetközi kutatás többek között a magyar női hallgatók vállalkozói hajlandóságát befolyásoló tényezőket vizsgálta. A kutatás többek között a motivációs tényezőkre, a személyiségjegyekre, valamint a korlátozó tényezőkre irányult. A vizsgálat eredményei azt igazolták, hogy a női vállalkozói létet nemcsak a pénzügyi indítékok vezérelték, hanem a belső tényezők is. Elsősorban az egyéni tényezők jelentették az akadályokat számukra, a szervezeti-környezeti korlátok szerepe kisebb jelentőséggel bírt. A vizsgálat eredményei többnyire a szakirodalmi adatokat igazolták. _____ It is widely known, that women play an important role in the economy, which makes the determination of motives and obstacles during business start-ups inevitable. Hungarian female students were surveyed during an international study in 2011 to determine the factors of entrepreneurial intentions. The survey included among other factors the motives for self‐employment, the personal characteristics and the barriers they faced. Results revealed that primary motivations for females during business start-ups were not only monetary motives, but also intrinsic factors. Problems faced by Hungarian female students were mainly individual; the organizationalenvironmental ones had lower importance. Results on motives and barriers were mostly consistent with the authors’ literature findings.

Investigating the effect of geographical distances and cultural proximity on the Hungarian wine trade

Wine is a very special product from an economic, cultural, and sociological point of view. Wine culture and wine trade play an important role in Hungary. The effect of cultural and geographical proximity on international trade has already been proven in the international trade literature. The size of bilateral trade flows between any two countries can be approximated by the gravity theory of trade. The gravity model provides empirical evidence of the relationship between the size of the economies, the distances between them, and their trade. This paper seeks to analyse the effect of cultural and geographical proximity on Hungary’s bilateral wine trade between 2000 and 2012, employing the gravity equation. The analysis is based on data from the World Bank WITS, WDI, as well as CEPII, and WTO databases. I apply OLS, Random Effects, Poisson, Pseudo-Poisson-Maximum-Likelihood and Heckman two stage estimators to calculate the gravity regression. The results show that in the case of Hungary, cultural similarity and trade liberalisation have a positive impact, while geographical distance, landlockedness, and contiguity have a negative impact on Hungarian wine exports.

Business relationships and relationships with stakeholders – Perception of Hungarian executives.

Relationships are crucial concepts in numerous management theoretical frameworks. Both stakeholder theory and IMP’s business network approach put business and non-business relations in the forefront. However, the two theories – stakeholder and business network – are seldom discussed together, and stakeholder theory rarely appears in the IMP literature. In this paper although we want to focus on supply chain relations we strive to conduct our analysis within a more general framework of stakeholder theory. In our research we observed and analyzed the mutual expectations related to various stakeholder groups – business partners (suppliers and buyers) among them.

Content and drivers of performance management in agency-type organizations of the hungarian public administration

The improving performance of public administration and the reform of public financing system have been on agenda in Hungary for many years, in accordance with the international trends. However, governments have not expected and supported creating of a performance-oriented public administration in a comprehensive and explicit way. Nevertheless, there are bottom-up initiatives at organizational level, which target performance-oriented organizational function. The research focuses on organizations of central public administration where the successful application of performance management methods is most likely based on the international literature. These are the so called agency-type organizations, which are in Hungary called autonomous state-administration organizations independent of the Government (e.g. Hungarian Competition Authority), government bureaus (e.g. Hungarian Central Statistical Office), and central offices subordinated to the government (either the cabinet or a ministry) (e.g. Hungarian Meteorological Service). The studied agencies are legally independent organizations with managerial autonomy based on public law. The purpose of this study is to get an overview on organizational level performance management tools applied by Hungarian agencies, and to reveal the reasons and drivers of the application of these tools. The empirical research is based on a mixed methods approach which combines both quantitative methods and qualitative procedures. The first – quantitative – phase of the author’s research was content analysis of homepages of the studied organizations. As a results she got information about all agencies and their practice related to some performance management tools. The second – qualitative – phase was based on semi-structured face-to-face interviews with some senior managers of agencies. The author selected the interviewees based on the results of the first phase, the relatively strong performance orientation was an important selection criteria.

The Butler wears Prada. A Hungarian case-study based on the analysis of the uniform and hotel industry from the point of sustainability

What is the connection between the hotel and fashion industry? The authors aim to answer this question approaching from different aspects. It can be stated that both of these industries are harmful for the environment from the point of sustainability. On the other hand there is a common solution from the viewpoint of sustainability: the uniforms and the primary materials, which are used during the production, such as the man-made and natural fibres. In our research the authors introduce the main problems which are related to the fashion industry, especially focusing on producing fibres from the viewpoint of sustainability. We introduce the solution for the fashion industry based on the literature and also present the emerging problems and solutions of the hotel industry based on the best practices. As a part of it, we are introducing the best practices from the hotel industry, where environmentally friendly uniforms are used. Finally, as a primary research part of our paper, we interpret the results of a Hungarian case-study.