Special Conference Issue 2012

HRM in Transition in Croatian Subsidiaries of MNCs in Line with Central And Eastern European Survey
Anton Florijan Barisic
József Poór

Abstract: The Central and Eastern European International Research Team (hereafter CEEIRT) – composed of researchers from universities from the Central and Eastern European Region has developed a model of human resource management practices in the subsidiaries of multinational corporations in CEE Region. This model was used to explore and describe the changes of key HR variables in the light of different fi rm specifi c factors. The model was equally applied across the SEE Region and in research have been included 12 countries and 286 subsidiaries of foreign owned companies. Based on this model, an interview and on-line survey of top level HR executives at 10 subsidiaries of large multinational companies in Croatia and at 276 executives in other CEE countries was completed. The paper describes how these practices and roles have developed in response to the sweeping economic changes within the region and points out the expectations of practitioners for the future. According to the model applied, the research has covered the most important organizational and economic characteristics of the MNC subsidiaries in Croatia, key indicators of the HR function, the most important HR characteristics of the period examined, knowledge management in the fi eld of HR including main directions, methods and characteristics of knowledge flows, and finally, the future of HR describing the most significant changes from a HR point of view occurring in the next period.

Keywords: human resource management, multinational companies, local subsidiaries, Central and Eastern Europe, Croatia, financial and economic crisis
JEL Classification: F23, J24, M12, M50, O15


Current economic crisis in Serbia is not only a consequence of the last global economic
Dragan Djuričin
Iva Vuksanović

Abstract: Current economic crisis in Serbia is not only a consequence of the last global economic crisis, but also a consequence of pre-crisis structural instabilities and uncompleted transition, both geopolitical and economic. Actually, ever since the transition in Serbia officially started in 1990, the country has never left the crisis. Namely, the output gap is still significant, both transitional (GDP in 2011 is around 30% lower than GDP in the last pre-transition 1989 year) and factual (Serbia lives far beyond its transitional peers and its potential). The fact that macroeconomic policies did not manage to fix these problems forces us to question weather the orthodox policy framework followed by Serbia’s macroeconomists gave best possible results. This paper analyses the infl uence of macroeconomic policies on performance and competitiveness of Serbia’s economy. The accent will be on monetary policy with respect to its role during transition and subsequent policies considering prime rate, FX rate and infl ation, as well as other impediments and functional distortions faced and borne by the economy. The paper shows that continuing policy of gradual inflation
and real FX rate appreciation constantly erodes competitiveness of Serbia’s enterprises and their profi tability. Additionally, it provides recommendations for overcoming current situation in the light of double-dip crisis in Europe.

Keywords: Serbia, competitiveness, real FX rate, industrial policies, energy sector
JEL Classification: L52, E52, E62, E40

 
On the Value System as a Precondition for Sustainability: An Overview of Preliminary Survey Results for Slovenia
Tjaša Redek
Irena Ograjenšek
Črt Kostevc
Uroš Godnov

Abstract: The Brundtland report (1987) defi ned sustainable development as a form of development which “meets the needs of the present without compromising the ability of future generations to meet their own needs’’. Given that the concept of sustainable development closely links the desire for the development of a harmonious society aimed at higher welfare, social cohesion and environmental protection, it requires a shift in values of the society; a shift towards more aware, compashionate, better human. This further requires a shift in consumption and production patterns. We examine the readiness of Slovenian population to support the implementation of more sustainable patterns by examining their values system. The survey based analyis stems from the theoretical concept of happiness, a stream of economics, beginning in the 1970s with the Easterlin paradox. In the article we effectively demonstrate that Slovenian population is in many aspects very traditional. Given that the value system of the general public drives the politicians, this can act as a strong driver towards or against implementation of changes that would support sustainability.

Keywords: values, happiness determinants, sustainable development, ecology
JEL Classification: E01, E3, O11


How Much is the Choice of Capital Structure Important for Bank Profitability in Croatia?
Ana Kundid

Abstract: Whether the capital structure design may be a source of a comparative advantage in the business of banking has been rarely empirically answered due to researchers’ focus on the complications related to the bank capital regulation in the last two decades. In the paper, the capital structure and profi tability nexus is being explored using the data from the Croatian banking sector in the period from 2003 to 2008. A panel data analysis was employed for the 28 commercial banks. The main assumption that heterogeneity in the capital structure of banks in the Republic of Croatia explains differences in their profi tability is confi rmed. It has been found that banks with a higher equity fi nancing and insured deposits have a higher return on assets. At the same time a higher level of the capital adequacy implies a lower profitability. Some inconsistencies of the research results and theoretical framework could be explained by introduction of the marginal obligatory reserve. At last, a necessity of managing the funding structure with a purpose of improving the bank profi tability is pointed out.

Keywords: Capital structure, commercial banks, profi tability, Croatia
JEL Classification: G21; G32


Impact of Macroeconomic Shocks on Real Output Fluctuations in Croatia
Nataša Erjavec
Boris Cota
Saša Jakšić

Abstract: The paper investigates the sources of real output variability in Croatia by assessing the impact of macroeconomic structural shocks on fl uctuations in real output. The analysis is based on a structural vector autoregressive model (SVAR) where structural shocks (demand, supply and nominal) are identified using Blanchard-Quah long run restriction technique. The findings of the empirical analysis point out the dominant role of supply shocks in explaining real output fluctuations. In the same time the results reveal negligible effects of nominal and demand shocks on the variability of real output. To get a better insight in the dynamics of real output in the aftermath of the structural shocks we also analyse the impulse response functions. The results show that a positive supply shock leads to a permanent increase in real output. A nominal shock decreases the real output marginally although the effect is only temporary and fades out quickly. Surprisingly, the effect of a demand shock is insignifi cant both in the short run and in the long run.

Keywords: real output, structural vector autoregression, variance decomposition, impulse response function, macroeconomic shocks
JEL Classification: C32, E52


Performance Measurement Model – Developing and Testing a Measurement Model Based on the Simplifi ed Balanced Scorecard Method
Muamer Bezdrob
Mirha Bičo Ćar

Abstract: The purpose of this research is to design and test a performance measurement model that is based on the balanced scorecard method, which would be simple enough to be easily implemented and used by a large number of companies. Along with a thorough literature review,
all necessary hypotheses that make up a basis for theoretical model were formulated. Consequently, the corresponding model was specifi ed. For the purpose of model testing we used the data from companies’ balance reports. The fi nal dataset includes 363 companies from the F B&H. Research results show that the fi nancial activities the companies undertake have a direct and positive effect on the business processes and an indirect and positive effect on the business performance. In addition, well-run business processes have a direct and positive effect on the business performance. The main implication of this research is that the designed model could facilitate the process of performance measurement. Our results show that, if appropriately processed, the data contained in the obligatory companies’ documents provide a balanced picture of company’s performance. This research contributes to the body of knowledge related to the performance measurement methods by designing measurement scales and types that could be used in future research.

Keywords: Performance measurement, Balanced Scorecard, Model, SEM
JEL Classification: L250