Explaining the off-the-books enterprise culture of Ukraine:reluctant or willing entrepreneurship?

In recent years, there has been a growing realisation that beyond the realm of legitimate entrepreneurship is a large, hidden enterprise culture composed of entrepreneurs conducting some or all of their trade off-the-books. Until now, however, few have evaluated how many entrepreneurs start-up their ventures trading off-the-books and why they do so. Reporting face-to-face interviews conducted in Ukraine during 2005-2006 with 331 entrepreneurs, the finding is not only that the vast majority (90%) operate partially or wholly off-the-books, but also that they are not all driven by necessity, as a last resort and as a survival strategy into entrepreneurship. Revealing how many are willing rather than reluctant entrepreneurs; and that even those who were initially reluctant and ventured into it out of necessity, became more willing entrepreneurs over time as their business became established - the paper concludes by discussing the implications of these findings for both further research and public policy. © 2010 Wiley Periodicals, Inc.

Információs paradoxon a vállalkozások hitelezésében nem fizető vevő esetén (An innovation paradox in enterprise financing where buyers fail to pay)

Cikkünkben a vállalkozók külső finanszírozásának modelljét terjesztjük ki arra az - irodalom által eddig nem tárgyalt - esetre, amikor a vállalkozónak van nem fizető vevője. Szerződéselméleti megközelítésünkben a vállalkozó hitelképességére vonatkozó információ aszimmetrikus a tranzakcióban részt vevő felek között, s ez morális kockázatnak ad teret. Megfigyelhető, hogy ilyenkor a pontosan fizető vevők számára is hitelszűke lép fel. A vállalkozó és a finanszírozó közötti optimális szerződés nem fizető vevő hatására további hitelszűkösséget generál. Két esetet vizsgálunk: az egyikben a vállalkozó információs előnyben van a vevő nemfizetésére vonatkozóan, a másikban nincs ilyen előny. A két modellváltozat alapján információs paradoxon jellemzi a kialakuló finanszírozási helyzetet: a vállalkozó kisebb összegű hitelhez jut az említett információs előnye esetén, mint amikor közte és a finanszírozó között szimmetrikus az információ. A modell azt a - magyar kis- és középvállalkozóknál látott - jelenséget írja le, amikor nem transzparens a szállító-vevő viszonya, és a finanszírozó bank e miatt az információs hátrány miatt kevesebb hitelt nyújt kis- és középvállalati ügyfeleinek. _____ The model of external financing of the firm is extended here to cases where there may be defaults on account receivables. Information asymmetry between entrepreneur and lender on a firm's creditworthiness leads to moral hazard and credit rationing, even in the absence of default risk. The authors show an optimal debt contract that formulates the situation, and focus on two cases: where the entrepreneur has an information advantage on defaults on receivables, and where the information is symmetric. A comparison of these cases revealed a paradoxical knowledge issue in external financing: a better informed entrepreneur may be able to afford a smaller financing ability. The model describes a frequent phenomenon in small businesses, when the relationship between buyer and seller lacks transparency, and lenders offer lower amount of lending to small and medium-sized enterprises.

A multinacionális vállalatok szerepe a hazai klaszterekben (Roles of multinational enterprises in the Hungarian clusters)

A cikk azt a kérdést vizsgálja, hogy milyen szerepet töltenek be a multinacionális vállalatok leányvállalatai a hazai klaszterekben, milyen a kapcsolatuk a klasztertag kis- és középvállalatokkal többek között a közös innovációban, a tudásközvetítésben, a klaszterek reputációjának növelésében. A felderítő kutatás a témát a hazai klaszterfejlesztési program, a Pólus Program által életre hívott három, úgynevezett akkreditált klaszter menedzsereivel, a klasztertag multinacionális vállalatok (MNV-k) hazai leányvállalatainak képviselőivel és a klasztertag KKV-k vezetőivel készült interjúk alapján mutatja be. A téma relevanciáját a program által potenciálisan indukált együttműködési folyamatok adják, mivel a klaszterfejlesztési pályázati konstrukciók úgy lettek kialakítva, hogy a klasztertag KKV-knak érdemes legyen nagyvállalatot is bevonniuk a közös innovációs és kutatás-fejlesztési projektekbe. A kutatási eredmények alapján az MNV leányvállalatainak leginkább a globális trendek és standardok klaszterbeli elterjesztésében van meghatározó szerepük, illetve a KKV-k és leányvállalatok közötti üzleti kapcsolatok alakításában kiemelt szerepe van a klasztermenedzsment szervezet tevékenységének. / === / The paper focuses on the topic which deals with the role of subsidiaries of multinational companies (MNC’s) in Hungarian industrial clusters in the fields of common innovation, knowledge transfer, and increasing the cluster’s reputation. The findings of the paper are based on an explorative research. Interviews were made with cluster managers, representatives of MNC’s subsidiaries, leaders of small and medium size (SME’s) enterprises operating in three accredited clusters created by the Hungarian cluster development program, the Pole Program. The relevance of the topic is given by the Program, which has induced potential cooperation between MNC’s subsidiaries and domestic SME’s in cluster environment in a way so the members of the cluster – SME’s and subsidiaries – were driven to cooperate in common innovation and R+D projects. The author’s research results suggest that MNC’s subsidiaries in Hungarian clusters seem to play a key role in the dissemination of global industrial trends and standards between the cluster members. The national cluster management organization can also play a decisive role in shaping business relationship between MNC’s and SME’s.

Internationalisation (Transnationalisation) of the Enterprise Sector

As part of a wider research program we analysed the theoretical framework and the recent developments of the process of internationalisation (transnationalisation) of the small- and mediumsized enterprises generally in the European Union and with a specific view on Hungary and Spain. We tried to highlight the trends and barriers of internationalisation. We carried out document analyses, interviews, analyses of statistical databases and an own data collection with online survey.

A multinacionális vállalatok szerepe a hazai klaszterekben = The role of multinational companies in Hungarian clusters

A cikk azt a kérdést vizsgálja, hogy milyen szerepet töltenek be a multinacionális vállalatok leányvállalatai a hazai klaszterekben, milyen a kapcsolatuk a klasztertag kis- és középvállalatokkal többek között a közös innovációban, a tudásközvetítésben, a klaszterek reputációjának növelésében. A felderítő kutatás a témát a hazai klaszterfejlesztési program, a Pólus Program által életre hívott három, úgynevezett akkreditált klaszter menedzsereivel, a klasztertag multinacionális vállalatok (MNV-k) hazai leányvállalatainak képviselőivel és a klasztertag KKV-k vezetőivel készült interjúk alapján mutatja be. A téma relevanciáját a program által potenciálisan indukált együttműködési folyamatok adják, mivel a klaszterfejlesztési pályázati konstrukciók úgy lettek kialakítva, hogy a klasztertag KKV-knak érdemes legyen nagyvállalatot is bevonniuk a közös innovációs és kutatás-fejlesztési projektekbe. A kutatási eredmények alapján az MNV leányvállalatainak leginkább a globális trendek és standardok klaszterbeli elterjesztésében van meghatározó szerepük, illetve a KKV-k és leányvállalatok közötti üzleti kapcsolatok alakításában kiemelt szerepe van a klasztermenedzsment-szervezet tevékenységének. ----- Abstract: The paper focuses on the topic which deals with the role of subsidiaries of multinational companies (MNC’s) in Hungarian industrial clusters in the fields of common innovation, knowledge transfer, and increasing the cluster’s reputation. The findings of the paper are based on an explorative research. Interviews were made with cluster managers, representatives of MNC’s subsidiaries, leaders of small and medium size (SME’s) enterprises operating in three accredited clusters created by the Hungarian cluster development program, the Pole Program. The relevance of the topic is given by the Program, which has induced potential cooperation between MNC’s subsidiaries and domestic SME’s in cluster environment in a way so the members of the cluster – SME’s and subsidiaries – were driven to cooperate in common innovation and R+D projects. Our research results suggest that MNC’s subsidiaries in Hungarian clusters seem to play a key role in the dissemination of global industrial trends and standards between the cluster members. The national cluster management organization can also play a decisive role in shaping business relationship between MNC’s and SME’s.

Formalizált rugalmasság – a kettős képesség kialakulása egy középvállalatban (Formalized adaptability: the development of ambidexterity in a medium-sized enterprise)

Az empirikus kutatás azokra a kérdésekre keresi a választ, hogy a hazai innovatív, növekedésorientált kis- és középvállalkozásokat milyen tényezők támogatják és segítik abban, hogy egyszerre legyenek képesek kiválóan teljesíteni jelenlegi piacaikon, miközben radikális innovációikon keresztül biztosítják a szervezet hosszú távú növekedési pályáját. A kutatás kvalitatív, feltáró, egyéni interjúkra épülő esettanulmányos módszertan keretein belül 14 vezetői interjúra, helyszíni megfigyelésre és széles körű dokumentumelemzésre épül. Az eredmények alapján a kettős képességű szervezetek teljesítményét egy hat, egymással összefüggésben lévő elemből álló modell határozza meg, melynek részei a felsővezetői decentralizáció, menedzsmentkontroll, vezetői szerepek és identitás, feladat- és hatáskörök, motivációs rendszer és a menedzsmenttudás színvonala. _______ The empirical research seeks the answer to the question what kind of factors support and help the innovative, growth-oriented Hungarian SMEs to both have the ability to operate at an excellent level in their current markets and to ensure the long-term growth path of the organization through radical innovations. The research applies qualitative, interview-based methodology. The dataset consists of 14 interviews with managers from different organizational level of the examined company, on-site observation and document-analysis. The main contribution of the article is a model that includes the influential structural and contextual factors of organizational ambidexterity, which are decentralization, management controlling, leader roles and identity, functions and authorities, motivation system and level of management knowledge.

Az „iránymutató vízió” szerepe a regionális fejlesztésekben, egy hazai agráripari vállalkozás tapasztalatai (The role of „guiding vision“ on regional developments and experiences of a domestic agro-industrial enterprise)

A szerző tanulmányában külföldi és hazai példák alapján a fenntartható gazdaság kialakítására hoz példákat. Bemutat egy osztrák energiarégiót és egy magyar biodízelgyártó vállalkozást. Mindegyik esetre jellemző, hogy olyan társadalmi-gazdasági környezetet kell teremteni, hogy minden stakeholder a win-win megoldásban legyen érdekelt. _____ Agricultural land ownership and the desirable scale of operation have been the subjects of a plethora of studies. Mainstream research, however, has a tendency not to take the human factor into consideration. The unpredictability of economic policies, uncertainties about EU subsidies, the optimal scale of operation and industry- specific characteristics all constitute a far more exciting and reasonable research topic for the majority. According to literature, social support for the efforts and the existence of a clear “guiding vision” have a crucial role in the success of rural development strategies. Concerning the development of a region or village, it is important to determine whether there exists a leading personality, an example-setting entrepreneur or entrepreneurial group that can act as a fundamental driving force or an initiator in reforming the rural way of life; one that could help preserve positive rural values while nurturing economically successful enterprises. Experience has shown that success can only be built upon partnership and mutual cooperation.

Átalakuló emberierőforrás-menedzsment a multinacionális vállalatok magyarországi leányvállalatainál 2008–2009 (Changing HR-practices of the Hungarian subsidiaries of multinational enterprises, 2008-2009)

A Pécsi Tudományegyetem Közgazdaságtudományi Karán sok éve folyó HR-kutatás legújabb eredménye ez a beszámoló, amely 74 Magyarországon is működő multinacionális vállalat helyi leányvállalatának HR-gyakorlatát vizsgálja. Az adatfelvétel (többségében helyszíni interjú) ideje 2010. április-november. Így a megállapítások már a válságból való kilábalás időszakára is vonatkoznak: mit és hogyan tettek a HR-szervezetek, valamint a vonalbeli vezetők a HR-munka hatékonyságának növelésére. A felállított 5, ezzel kapcsolatos hipotézist a szerzők vizsgálataik alapján részben igazolni tudták. A fő megállapítás: a nemzetközi vállalatok – minimális létszámcsökkentéssel – kitartottak Magyarország mellett, megerősítették a helyi leányvállalatoknál folyó HR-munkát. A kutatás nemzetközi keretekben jelenleg is folytatódik: 6 országban készülnek tanulmányok a helyi hasonló vállalati körre, a magyarországiéval azonos HR-vizsgálati szempontok alapján. _________ This article is the result of the several year long HR-research conducted at the Faculty of Business and Management of the University of Pécs, and it analyzes the HR-practices of the Hungarian subsidiaries of 74 multinational enterprises. Data collection (mostly interviews at the subsidiaries) took place during the period of April-November 2010. Hence, the findings also relate to the period of the recovery from the recession: what and how the HR-units/ and line managers did to increase the efficiency of the HR work. The 5 hypotheses in relation with this, could partially be verified by the research of the authors of this paper. The main finding is that the multinational enterprises – with a slight decrease of headcount – stood beside Hungary and strengthened the HR-activities at their subsidiaries. Research is still being continued internationally: studies are being prepared in 6 countries on similar groups of local companies, by using the same HR-research aspects as those used in Hungary.

The direct investments in Latin America and the Caribbean in the 1990s of multinational enterprises headquartered in Spain

This thesis explains why multinational enterprises (MNEs) headquartered in Spain made significant investments in Latin America in the 1990s. Two independent variables are considered: structural reforms in Latin America, and liberalization in Spain. The first independent variable concerns the ways in which Latin American governments adopted a series of reforms that made their economies attractive to foreign investors. The second variable explains how the prospects of liberalization and foreign competition led Spanish firms to invest abroad in order to expand their businesses. The study will also show the competitive advantage of Spanish MNEs, vis-a-vis other foreign and local competitors in Latin America. This thesis takes an international political economy approach. The core of the thesis shows the development of Spanish direct investment in Latin America and the Caribbean in the 1990s. The theoretical perspectives on MNEs are provided by theory of the firm, industrial organizations theory and alliance theory. ^

Engineering access control for distributed enterprise applications

Access control (AC) is a necessary defense against a large variety of security attacks on the resources of distributed enterprise applications. However, to be effective, AC in some application domains has to be fine-grain, support the use of application-specific factors in authorization decisions, as well as consistently and reliably enforce organization-wide authorization policies across enterprise applications. Because the existing middleware technologies do not provide a complete solution, application developers resort to embedding AC functionality in application systems. This coupling of AC functionality with application logic causes significant problems including tremendously difficult, costly and error prone development, integration, and overall ownership of application software. The way AC for application systems is engineered needs to be changed. ^ In this dissertation, we propose an architectural approach for engineering AC mechanisms to address the above problems. First, we develop a framework for implementing the role-based access control (RBAC) model using AC mechanisms provided by CORBA Security. For those application domains where the granularity of CORBA controls and the expressiveness of RBAC model suffice, our framework addresses the stated problem. ^ In the second and main part of our approach, we propose an architecture for an authorization service, RAD, to address the problem of controlling access to distributed application resources, when the granularity and support for complex policies by middleware AC mechanisms are inadequate. Applying this architecture, we developed a CORBA-based application authorization service (CAAS). Using CAAS, we studied the main properties of the architecture and showed how they can be substantiated by employing CORBA and Java technologies. Our approach enables a wide-ranging solution for controlling the resources of distributed enterprise applications. ^

The advantage of Spanish multinational enterprises in Latin America

Multinational enterprises (MNEs) from Spain made large foreign direct investments (FDIs) in Latin America between 1990 and 2002, making Spain the second largest direct investor in this region since 1998, behind the United States. This dissertation explains the reasons that led Spanish firms to make these FDIs, as well as their operations in Latin America. Seven Spanish MNEs were included in this study, BBVA and SCH (banking), Telefónica (telecommunications), Endesa, Iberdrola and Unión Fenosa (public utilities), and Repsol-YPF (oil and natural gas). Quantitative and qualitative data were used. Data were collected from the firms' annual reports, from their archives and from personal interviews with senior executives, as well as from academic and specialized publications. ^ Results indicate that the large Spanish FDIs in Latin America were highly concentrated in a few firms from five sectors. The FDIs of these firms alone accounted for 70 percent of total Spanish FDI in Latin America in this period. The reasons for these investments were firm-specific and sector specific. A series of institutional conditions existed in Spain between the 1970s and the 1990s that allowed the employees of the firms to develop the knowledge and devise strategies to adjust to that set of conditions. First, the policies of the Spanish state favored the creation of large firms in these sectors, operating under conditions of monopoly sometimes. Secondly, the consumers put pressure on the firms to provide better and cheaper products as the Spanish economy grew and modernized. Thirdly, the employees of the firms had to adjust their services and products to the demands of the consumers and to the constraints of the state and the market. They adjusted the internal organization of the firm to be able to produce the goods and services that the market demanded. Externally, they also adopted patterns of interaction with outside agents and institutions. This patterned behavior was the “corporate culture” of each firm and the “normative framework” in which their employees operated. When the managers of the firms perceived that there were similar conditions in Latin America, they decided to operate there as well by making FDIs. ^

The impact of information technology on organizations: A study of enterprise resource planning system influences on job design and organizational culture

The primary purpose of this research is to study the linkage between perceived job design characteristics and information system environment characteristics before and after the replacement of a legacy information system with a new type of information system (referred to as an Enterprise Resource Planning or ERP system). A public state University implementing an academic version of an ERP system was selected for the study. Three survey instruments were used to examine the perception of the information system, the job characteristics, and the organizational culture before and after the system implementation. The research participants included two large departments resulting in a sample of 130 workers. Research questions were analyzed using multivariate procedures including factor analysis, path analysis, step-wise regression, and matched pair analysis. ^ Results indicated that the ERP system has introduced new elements into the working environment that has changed the perception of how the job design characteristics and organization culture dimensions are viewed by the workers. The understanding of how the perceived system characteristics align with an individual's perceived job design characteristics is supported by each of the system characteristics significantly correlated in the proposed direction. The stronger support of this relationship becomes visible in the causal flow of the effects seen in the path diagram and in the step-wise regression. The perceived job design characteristics aligning with dimensions of organizational culture are not as strong as the literature suggests. Although there are significant correlations between the job and culture variables, only one relationship can be seen in the causal flow. ^ This research has demonstrated that system characteristics of ERP do contribute to the perception of change in an organization and do support organizational culture behaviors and job characteristics. ^

Framework for enterprise systems engineering

This research aimed at developing a research framework for the emerging field of enterprise systems engineering (ESE). The framework consists of an ESE definition, an ESE classification scheme, and an ESE process. This study views an enterprise as a system that creates value for its customers. Thus, developing the framework made use of system theory and IDEF methodologies. This study defined ESE as an engineering discipline that develops and applies systems theory and engineering techniques to specification, analysis, design, and implementation of an enterprise for its life cycle. The proposed ESE classification scheme breaks down an enterprise system into four elements. They are work, resources, decision, and information. Each enterprise element is specified with four system facets: strategy, competency, capacity, and structure. Each element-facet combination is subject to the engineering process of specification, analysis, design, and implementation, to achieve its pre-specified performance with respect to cost, time, quality, and benefit to the enterprise. This framework is intended for identifying research voids in the ESE discipline. It also helps to apply engineering and systems tools to this emerging field. It harnesses the relationships among various enterprise aspects and bridges the gap between engineering and management practices in an enterprise. The proposed ESE process is generic. It consists of a hierarchy of engineering activities presented in an IDEF0 model. Each activity is defined with its input, output, constraints, and mechanisms. The output of an ESE effort can be a partial or whole enterprise system design for its physical, managerial, and/or informational layers. The proposed ESE process is applicable to a new enterprise system design or an engineering change in an existing system. The long-term goal of this study aims at development of a scientific foundation for ESE research and development.

Why and how multinational corporations influence the trade negotiation process in Latin America

This thesis examines two research questions: (1) Why do Multinational Enterprises (MNEs) try to influence trade negotiations in the Latin American context? and (2) How do MNEs influence the trade negotiation process in Latin America? The results show that the MNE's main reasons for participation are: (1) to gain market access and, specifically, to reduce tariff and non-tariff barriers; (2) to create a beneficial regulatory environment for the MNE; and (3) to set the rules of the game by influencing the business environment in which its industry or its specific company is required to operate. The main approaches reported by the interviewees as to how MNEs participate are: (1) the MNE directly lobbies domestic government officials, principally the United States Trade Representative office; (2) a business, trade or industry association lobbies domestic government officials on the MNE's behalf; and (3) the MNE lobbies Congress.