organizacja i zarządzanie

Transcription

ORGANIZACJA
I ZARZĄDZANIE
KWARTALNIK NAUKOWY
Nr 2(18)
WYDAWNICTWO POLITECHNIKI ŚLĄSKIEJ
GLIWICE 2012
Rada Naukowa
Przewodnicząca Rady Naukowej
Dr hab. Agata STACHOWICZ-STANUSCH, prof. Pol. Śl., Politechnika Śląska
Członkowie
Prof. dr hab. inż. Mariusz BRATNICKI, Uniwersytet Ekonomiczny w Katowicach
Professor Hans Krause HANSEN, Copenhagen Business School, Dania
Professor Matthias KLEINHAMPEL, IAE Business School, Buenos Aires, Argentyna
Prof. dr hab. inż. Maria NOWICKA-SKOWRON, Politechnika Częstochowska
Professor Nikos PASSAS, Northeastern University, Boston, USA
Dr hab. Agnieszka SITKO-LUTEK, prof. UMCS, Uniwersytet Marii Curie-Skłodowskiej w Lublinie
Professor Marco TAVANTI, DePaul University, Chicago, USA
Professor Charles WANKEL, St. John’s University, New York, USA
Komitet Redakcyjny
Redaktor Naczelny – prof. dr hab. inż. Andrzej KARBOWNIK
Zastępca Redaktora Naczelnego – dr hab. Agata STACHOWICZ-STANUSCH, prof. Pol. Śl.
Sekretarz Redakcji – mgr inż. Aneta ALEKSANDER
Redaktor wydawniczy – mgr Andrzej SMOGULSKI
Redaktor językowy (język polski) – mgr Roma ŁOŚ
Redaktor językowy (język angielski) – Denis POITRAS
Redaktor statystyczny – dr Anna MĘCZYŃSKA
Redaktorzy tematyczni
Prof. dr hab. inż. Józef BENDKOWSKI
Prof. dr hab. inż. Lech BUKOWSKI
Prof. dr hab. inż. Małgorzata GABLETA
Prof. dr hab. inż. Grażyna GIERSZEWSKA
Prof. dr hab. inż. Jerzy LEWANDOWSKI
Prof. dr hab. Krystyna LISIECKA
Prof. dr hab. Arkadiusz POTOCKI
Prof. dr hab. inż. Jan STACHOWICZ
http://www.polsl.pl/Wydzialy/ROZ/Strony/Kwartalnik_Naukowy.aspx
email: [email protected]
ISSN 1899-6116
Wersją pierwotną Kwartalnika Naukowego „Organizacja i Zarządzanie” jest wersja papierowa
SPIS TREŚCI
Słowo wstępne .................................................................................................................... 5
1.
Anna RAKOWSKA, Beata HYSA – Jakość informacji i kompetencje
menedżerskie a podejmowanie decyzji przez kadrę kierowniczą w administracji
samorządowej ............................................................................................................... 7
2.
Liliana HAWRYSZ, Katarzyna HYS – Skutki implementacji narzędzi
zarządzania jakością w sektorze publicznym ............................................................... 23
3.
Katarzyna KROT – Znaczenie zaufania do członków społeczności internetowej
na przykładzie portali budowlano-wnętrzarskich ………………………..................... 35
4.
Dagmara LEWICKA – Wpływ zaufania wertykalnego na proinnowacyjne postawy
pracowników …............................................................................................................. 53
5.
Eulalia SKAWIŃSKA, Romuald ZALEWSKI – Stan i perspektywy rozwoju
jednostek infrastruktury transferu technologii w Wielkopolsce ……………………... 69
6.
Małgorzata GAJOWIAK – Znaczenie instytucji nieformalnych
w zrównoważonym rozwoju ......................................................................................... 81
7.
Radosław MĄCIK, Monika NALEWAJEK, Bartosz JÓŹWIK – Wpływ
poziomu internacjonalizacji na wykorzystanie technologii informacyjnych
i telekomunikacyjnych w komunikacji i działaniach marketingowych przez
przedsiębiorstwa z woj. lubelskiego ……………………………………..................... 99
8.
Agnieszka LESZCZYŃSKA, Tomasz ŻUREK – Ocena zrównoważonego
rozwoju organizacji z wykorzystaniem wnioskowania rozmytego ………………...... 117
9.
Agnieszka BARUK, Anna IWANICKA, Tomasz GRUSZECKI – Zarządzanie
wiedzą klienta jako katalizator sukcesu na rynku niszowym ………………………... 139
10. Łukasz WIECHETEK – Koncepcja czasowego progu rentowności wdrożenia
systemu informatycznego w małych i średnich przedsiębiorstwach ……………………. 161
CONTENTS
Foreword ............................................................................................................................. 5
1.
Anna RAKOWSKA, Beata HYSA – Quality of information and managerial
competencies in decision making by management personnel in local government
offices ........................................................................................................................... 7
2.
Liliana HAWRYSZ, Katarzyna HYS – The results of the implementation
of quality management tools in the public sector ......................................................... 23
3.
Katarzyna KROT – The significance of trust among users of social networking
websites – study on construction and interior design portals ………………………... 35
4.
Dagmara LEWICKA – The impact of vertical trust on the pro-innovation attitude
of employees …............................................................................................................. 53
5.
Eulalia SKAWIŃSKA, Romuald ZALEWSKI – Status and prospects
for development of infrastructure for technology transfer in the province
of Greater Poland …………………………………………………………………….. 69
6.
Małgorzata GAJOWIAK – The role of informal institutions in sustainable
economy ........................................................................................................................ 81
7.
Radosław MĄCIK, Monika NALEWAJEK, Bartosz JÓŹWIK – Influence
of the level of internationalization on ICT usage in communication and marketing
activities by enterprises in the Lublin region ……………………………………....... 99
8.
Agnieszka LESZCZYŃSKA, Tomasz ŻUREK – Organizations’ sustainable
development assessment by fuzzy logic ……………………………………………... 117
9.
Agnieszka BARUK, Anna IWANICKA, Tomasz GRUSZECKI – Customer
knowledge management as a catalyst for success in a niche market ………………… 139
10. Łukasz WIECHETEK – Conception of a time break even point in information
systems implementation in small and medium-sized enterprises ……………………….. 161
FOREWORD
It gives me great pleasure to present you the Special Issue of Organization and
Management Quarterly. It is devoted to the fourth Technology, Innovation and Industrial
Management Conference. This year’s meeting was held in Lublin under the patron of
the Management Institute – Maria Curie Sklodowska University, Kasetsart University in
Bangkok and Organization and Management Polish Committee of Science and focused on
“Building Competencies, Synergy and Competitiveness for the future”.
All the presented papers pertain to technology as well as integration and synergy of
human capital and organizational cultures underlined so that possible adaptations, learning,
and improvement of research, practical examples, and excellent practices can be made.
From this issue we aim to provide a scientific forum for the advancement of knowledge
for the phenomenon of synergy in business and society. The current business environment is
getting more competitive as well as becoming more global. Synergy seems to be the key
success determinant of contemporary enterprises as well as the prerequisite for creativity and
human cooperation, although it has not been widely examined in business literature yet.
We acquire the synergetic effect if the result of particular elements of cooperation is greater
then the sum of the causal entities, referred to as individuals, teams, organizations, processes,
societies, etc, but also occurs when the transfer of ideas, experience and knowledge take
place.
We hope you will enjoy this special issue and we wish that the research papers can raise
the research knowledge synergy level for either academia, professors and doctoral students as
well as for practitioners.
Dear reader, author, and editorial board member! Let me use this opportunity to express
my gratefulness and appreciation for your contribution to the Journal. Your work, either by
contributing articles, reviewing them or working as a board member, has shaped and framed
the journal.
Dr hab. Agnieszka SITKO-LUTEK, Prof. UMCS
Anna RAKOWSKA
Uniwersytet im. Marii Curie-Skłodowskiej w Lublinie
Wydział Ekonomiczny
Instytut Zarządzania
Beata HYSA
Politechnika Śląska
Wydział Organizacji i Zarządzania
Instytut Ekonomii i Informatyki
QUALITY OF INFORMATION AND MANAGERIAL
COMPETENCIES IN DECISION MAKING BY MANAGEMENT
PERSONNEL IN LOCAL GOVERNMENT OFFICES
Summary. The article presents and discusses issues related to the quality
of information and managerial competencies’ in decision-making. We claim that there
is a need for employing a new managerial (and not only administrative or political)
paradigm in managing local government administration institutions. In the study part
we have posed the following questions: What significance does the quality
of information have in the decision-making process as well as what competencies
should the managers in local government administration have to make appropriate
decisions? The study surveys 208 managers from 75 local government
administrations. The article ends in with a brief summary and conclusion.
Keywords:
Management
decisions,
quality
information,
administration,
New
Public
JAKOŚĆ INFORMACJI I KOMPETENCJE MENEDŻERSKIE
A PODEJMOWANIE DECYZJI PRZEZ KADRĘ KIEROWNICZĄ
W ADMINISTRACJI SAMORZĄDOWEJ
Streszczenie. W artykule zaprezentowano zagadnienie jakości informacji oraz
kompetencji menedżerskich w aspekcie podejmowania decyzji w administracji
samorządowej. Wskazano na potrzebę zastosowania nowego, menedżerskiego, a nie
tylko administracyjno-politycznego paradygmatu w zarządzaniu w urzędach
A. Rakowska, B. Hysa
8
administracji samorządowej. Omówiono wpływ ilości i jakości informacji oraz
kompetencji na podejmowanie decyzji. W części badawczej postawiono pytania:
Jakie znaczenie ma jakość informacji oraz system informacyjny w podejmowaniu
decyzji, oraz jakie kompetencje powinni mieć kierownicy administracji
samorządowej, aby podejmować właściwe decyzje? Badaniem objęto 208
kierowników z 75 urzędów administracji samorządowej Górnego Śląska. Całość
podsumowano wnioskami.
Słowa kluczowe: jakość informacji, kompetencje menedżerskie, podejmowanie
decyzji, administracja samorządowa
1. Introduction
Decisions made by managers constitute a key component of the managerial work in any
organization. However, if the managers are to make good decisions, they need to be equipped
with suitably developed competencies, and they also need to have access to information
which meets specific quality requirements. Although in certain situations, when access to
information is difficult or the problem is non-structural, and it is possible to overcome
problems creatively, it must be remembered that in local government administration the
majority of decisions must be made on the basis of the available knowledge and current
regulations. This issue is vital as the decision-making process has a serious impact on
a substantial number of citizens. As different studies have shown the quality of decisionmaking in Polish local government institutions leaves much to be desired.1 Although there are
numerous studies researching the work of managers and managerial decisions, it is more
difficult to find studies pertaining to managers in local government administration. At the
same time, due to political changes and the growing popularity of the New Public
Management idea, it seems plausible to scrutinize these issues. The aim of this article is to
make a synthesized presentation of the conclusions from relevant literature and the results of
our own studies conducted among the managerial personnel in the institutions of local
government administration.
2. Managerial approach in local government administration
With the political and system changes in Poland as well as the re-establishment of
the local government, there has also been a change in the role of public administration.
Quality of information and managerial competencies…
9
Delegating to these local government units the tasks, powers and obligations from the area of
public administration has enforced the change of organizational structures and their methods
of functioning. In turn, membership in the European Union has imposed on self-governments
a certain operational mode in the area of dealing with the effects of crisis, technological
development or environment protection. At the same time, the ever growing and more
sophisticated expectations from society towards the local government constantly create the
necessity to manage the public finances in a moderate way. Thus, there are new challenges
looming ahead for local governments and the need for constant development on their part.
In the world literature pertaining to the subject of functioning of the public
administration, both in traditional management as well as in New Public Management, the
managerial approach (not only legal or political) is being emphasized significantly.2 In the
traditional approach competencies seem to be the focal point,3 as well as efficiency and in the
new approach, besides competencies, the importance of managerial roles – goal orientation
and more a flexible and pro-market approach is emphasized.4 Both concepts clearly indicate
that managers have a very important role to play in local government administration. They
need to have appropriate knowledge, skills and competencies allowing them to efficiently
fulfill these roles and make the right decisions.
2.1. Competencies
The term competencies has been defined in various ways and it is difficult to classify it.
It results from the fact that this issue is interdisciplinary and appears in Sociology,
Psychology,
Pedagogy,
Economics,
Law
and
Management.
Therefore,
there
is
a methodological confusion, which sometimes leads to contradictory opinions (even
arguments) among scientists as to the ways of explaining this term and the methods of
investigation and mastering the managerial competencies.5 Frequently, authors quote
the terms of skills,6 abilities7 or qualifications8 as synonymous to competencies. Among
1
Urbaniak B., Bohdziewicz P.: Zdiagnozowanie potencjału administracji samorządowej, ocena potrzeb
szkoleniowych kadr urzędów administracji samorządowej oraz przygotowanie profili kompetencyjnych kadr
urzędów administracji samorządowej. ASM Centrum Badan i Analiz Rynku, Kutno 2009, s. 98-176.
2
Supernat J.: Administracja publiczna w świetle koncepcji New Public Management, [w:] Administracja
publiczna. Studia Krajowe i Międzynarodowe, WSAP, Białystok 2003.
3
Weber M.: Gospodarka i społeczeństwo: zarys socjologii rozumiejącej. PWN, Warszawa 2002, s. 164 2002.
4
Catlaw T., Chapman J.: What’s New about the New Public Management, A comment Stephen Page’s. “Public
Administration Review”, 2007.
5
Rakowska A.: Kompetencje menadżerskie kadry kierowniczej we współczesnych organizacjach. UMCS,
Lublin 2007, s. 47.
6
Thierry D., Sauret C.: Zatrudnienie i kompetencje w przedsiębiorstwie w procesie zmian. Poltex, Warszawa
1994, s. 6.
7
Bratnicki M.: Kompetencje przedsiębiorstwa, od określenia kompetencji do zbudowania strategii. Placet,
Warszawa 2000.
10
numerous definitions of competencies it has been assumed that they are: skills, knowledge,
attitudes and personal qualities, which lead to achieving positive results at work. They are
additionally boosted by personal predispositions, general life and professional experience as
well as suitable attitude and behavior.
In relevant literature on the subject there are a lot of studies on managerial competencies,9
but only a few of them pertain to the competencies of the managerial personnel of public
administration.10 Although local government administration uses tools borrowed from the
private sector, which include managing of the finances (efficiency), using benchmarking
solutions,11 outsourcing solutions,12 reeingineering solutions,13 quality management14 (Total
Quality Management), appropriate goal orientation and monitoring of the results, and modern
human resources management15 (empowerment), different studies suggest (not very
numerous so far) that there are certain discrepancies between the competencies of managers
in business organizations and those working in local government institutions.16
2.2. Barriers and decision-making conditions in local government administration
In order to meet the growing needs of the residents, local governments with their budget
limitations, are forced to make more and more difficult decisions. It is thus important to have
the necessary information, competencies and knowledge that underlie the decision-making
processes. However, these underlying factors differ from the ones operating in business
8
Chełpa S.: Kwalifikacje kadr kierowniczych przedsiębiorstw przemysłowych. Kierunki i dynamika zmian.
AE, Wrocław 2003, s. 18.
9
Listwan T.: Zarządzanie kadrami. C.H. Beck, Warszawa 2010; Chełpa S.: op.cit.; Rakowska A.: op.cit.; Penc J.:
Role i umiejętności menadżerskie. Difin, Warszawa 2005; Rakowska A., Sitko-Lutek A.: Doskonalenie
kompetencji menadżerskich. PWN, Warszawa 2000.
10
Walkowiak R.: Model kompetencji menadżerów organizacji samorządowych. Wyd. Uniwersytetu
Warmińsko-Mazurskiego w Olsztynie, Olsztyn 2004.
11
Rogala P.: Zastosowanie benchmarkingu w administracji publicznej. Doświadczenia urzędu miejskiego
w Gliwicach. „Problemy Jakości”, nr 5, 2005.
12
Oleński J.: Nowoczesna infrastruktura informacyjna podstawą taniego i przyjaznego państwa polskiego.
Program reformy infrastruktury informacyjnej państwa i strategii informatyzacji sektora publicznego.
MSWiA, Warszawa 2005, (accessed: 2011-08-150) www.mswia.gov.pl/download.php?s=1&id=2419.
13
Wolniak R., Słapa S.: Procesy reorganizacji w administracji publicznej na przykładzie Wydziału FinansowoKsięgowego Wydziału Edukacji UM w Rybniku, cz. 1 – prezentacja procesu restrukturyzacji w badanej
instytucji. Zeszyty Naukowe Politechniki Śląskiej, s. Organizacja i Zarządzanie, z. 31, Gliwice 2005, s. 71.
14
Lisiecka K., Papaj T.: System zarządzania jakością w urzędach terytorialnej administracji publicznej.
„Problemy Jakości”, nr 10, 2006, s. 39-40; Furterer S., Elshennawy A.K.: Implementaion of TQM and lean
SIx Sigma tools in local government: a framework and a case study. “Total Quality Management & business
Excellence”, No. 16, Vol. 10, 2005, p. 1179-1191; Rago W.V.: Adapting Total Quality Management to
government: Another point of view. “Public Administration Review”, No. 54, Vol. 1, 1996.
15
Kappelaman L., Prybutok V.: Empowerment Motivation, Training and TQM Program Implementation
Success. “Total Quality Management”, No. 3, Vol. 37, 2001, p. 15; Tulgan B.: Empowerment Myth.
“Leadership Excellence”, No. 4, Vol. 24, 2007; Bugdol M.: Zarządzanie jakością w urzędach administracji
publicznej. Difin, Warszawa 2008.
16
Walkowiak R.: op.cit.
11
organizations. The difference stems from its public character (political responsibility) and
legal character (regulations). Nevertheless, both business and public sector managers
encounter both subjective barriers (related to the personal qualities of the decision-making
people) and objective factors (resulting from the conditions in which a given entity
functions). The objective barriers are foremost: organizational, legal (crucial in
administration), economic, cultural, resource-related, technological, and informational. It is
the legal barriers that create a situation where decisions made by mangers can be divided into
two categories: administrative and managerial. Administrative decisions stem from the legal
regulations imposed by the law. On the other hand, managerial decisions are related to
personnel management (motivating, assessing, control over subordinates), managing shifts or
organizing current work in a given unit.
3. Role of quantity and quality of information in the decision-making
process
In order to make decisions it is essential to have suitable information. Omnipresence of
the Internet and access to modern communication technologies in the local government
administration increases the ease and speed of accessing information but the problem lies
with both the quantity and quality of this information.
3.1. Quantity of information
Decision makers cannot make correct decisions without sufficient information load.
On the other hand, they are often inundated with bulks of useless data, which may lead them
to overlook information which is vital for them. Organizations may have more data but at
the same time less information,17 because problems arise with data selection and processing
information. Data overload slows down the decision-making process and in extreme cases it
may inhibit the appropriate functioning of the organization altogether. On the other hand, it is
known that increasing the amount and quality of information leads to increasing the quality
of the decision-making process. Due to the limitations on the effective usage of information,
there is a certain level which, when reached, leads to the decrease of the decision-making
quality. The dependence between the amount of information and decision quality is inversely
proportional.18 Users of information systems who are not able to process and analyze all the
data and information may make their decisions on the basis of incomplete information or too
17
Drucker P.: Zarządzanie w XXI wieku. Muza, Warszawa 2000, s. 140.
12
late to make good use of it. The issue of abundance of information and informational
overload is mentioned in numerous publications.19 Apart from having a sufficient amount of
information it is necessary for decision makers to have good quality of information.
3.2. Quality of information
The quality of information can be viewed both subjectively – from the side of information
users as well as objectively, resulting from the functions which the information is supposed
to perform. The majority of the definitions of the quality of information used in the relevant
literature are based on exemplifying those features that information is supposed to have.20
There is not, however, a homogenous catalogue of features which specifies the attributes of
good quality information.
Based on the reports and analyses regarding the functioning of local government
administration, the quality of the decisions made is not satisfactory.21 Thus, there is a need to
conduct studies in this area since topics relating to the quality of information in public
administration entities do not come up too often.22 This topic is usually discussed when doing
information infrastructure analysis,23 or is limited to studying particular applications.24 There
is a lack, however, of studies or attempts at generalizations, which would account for
the issues of quality of information with regard to the decisions made in local government
administrations.
The literature overview has formed the basis for the following conclusion: there is
a growing interest in the role of managers in local government institutions, yet at the same
time there is a scarcity of studies regarding their competencies, and in particular
competencies related to decision-making (skills, knowledge, personality, decision-making
style), which can be regarded as critical for achieving good results. Other underlying factors
(such as the quality of information) also need to be considered for study. Thus, the following
18
Marcinkowska M.: Wykorzystanie informacji controllingu – spojrzenie behawioralne. „Przegląd
Organizacji”, Nr 1, 2010.
19
Lesca H., Lesca E.: Gestion de l’information. Litec, Paris 1995; Melgoza P., Mennel P.A.: Information
overload. “Collection Building”, Vol. 21, Issue 1, 2002, p. 32-42.
20
Abdallah H.M.: A quality assurance model for an information system development life cycle. “International
Journal of Quality & Reliability Management”, Vol. 13, Issue 7, 1996; English L.: The Essentials of
Information Quality Management. “DM Review Magazine”, September, 2002, p. 70-78; Knight S., Burn J.:
Developing a Framework for Assessing Information Quality on the World Wide Web. “Informing Science
Journal”, Vol. 8, 2005, p. 160-169.
21
Urbaniak B., Bohdziewicz P.: op.cit., Raport końcowy opracowany na zlecenie MSWiA w ramach projektu
pt. „Badanie ewaluacyjne wsparcia udzielonego administracji samorządowej w ramach Działania 5.2”. ASM
Centrum Badań i Analiz Rynku Sp. z o.o., Kutno 2010, s. 83.
22
Gryncewicz W.: Doskonalenie jakości informacji w jednostkach administracji skarbowej. Podejście
indologiczne. Praca doktorska, AE, Wrocław 2007.
23
Oleński J.: Infrastruktura informacyjna państwa w globalnej gospodarce. WNE UW, Warszawa 2006.
24
Chmielarz W.: Ocena serwisów internetowych urzędów miejskich przy pomocy metody konwersji. SHG,
Warszawa 2010; Dziuba T.: Metody ekonomiki sektora informacyjnego. Difin, Warszawa 2007.
13
study questions have been posed: what is the significance of quality of information and
the information system itself in the decision-making process? What competencies should
managers from the local government institutions have in order to make the right decisions?
What factors, apart from competencies, influence the process of their decision making?
Do the decisions made by local government managers require possessing specific
competencies other than in the case of the classical manager?
4. Study Results
In order to find the answer to the aforementioned questions, a study among middle
management personnel of local government institutions in the Silesian Province
(Voivodeship) has been conducted. 208 respondents participated in the research: rural
commune governments (gminas) – (8%), urban town governments – (20%) and county
governments (urban and rural poviats) – (72%). Women constituted the majority of
the respondents (61%, whilst 39% were men). Half of the respondents (50,5%) were people
between 46 and 60 years old. A third were between 36 and 45 years old (32,2%). As for work
experience, about half of the respondents (52,9%) had between 2 and 10 years of managerial
experience and a thirds (32,3 %) between 11 and 25 years. Every tenth manager (11%) had
been in the management for over 26 years.
Non-parametric tests of significance have been employed in the analysis. These tests do
not require a standard distribution of measurable indicators. We have used: The
Independence Test x2, U Mann-Whitney Test, Kruskal – Wallis H Test, Sign Test, and the
Wilcoxon Test. For the purposes of correlation analysis the following coefficients have been
employed:
Q-Kendall’s, C-Pearson’s, and Spearman’s rank R correlation. The calculations were
performed using the Statistics (version 10) software programme.
4.1. Information system and the quality of information
As mentioned before, it has been assumed for the purposes of the study that
the managerial personnel in the local government institutions make two types of decisions:
administrative ones, which stem from its administrative and public nature and managerial
ones, where they have more flexibility i.e. related to managing employees (motivating,
evaluating, controlling subordinates), introducing changes pertaining to certain areas of
functioning of the organization, as well as managing current tasks in a unit.
14
One of the significant elements in the decision-making process is the information channel
and the tools supporting data processing which the personnel working in the administrations
in this study use for the formal circulation of the information. One half of the managers claim
that they devote the majority of the daily workload to managerial decisions as defined here,
i.e. connected to managerial roles. As can be expected we have observed a correlation
between the circulation of information and the types of the decisions made. Along with the
growth of formal circulation in processing information, we also observe the growth in
the share of administrative decisions in relation to the overall share of decision making.
ie. decision making for administrative purposes is becoming more significant. (significance
level p = 0,000, correlation r = 0,32).
Moreover, 69% of managers conceded that there are standstills or breaks in
the information processing. The most commonly mentioned reasons for breaks were the
necessity to obtain additional information and verifying information with other units. This is
probably due to the necessity of cooperation between different organizational units while
making administrative decisions. For example, obtaining permission to build a house depends
on the previous arrangements and requirements in many areas. Another reason could be bad
organization of work or a poorly specified organizational structure.
Work overload is another factor causing standstills in processing information according
to respondents. Especially in the rural communes (gminas) where over 40% of the managerial
personnel pointed it out as a frequent reason for standstills in processing information.
This has probably a lot to do with the greater variety and broader scope of tasks imposed on
the managers from the units in rural communes (gminas).
Apart from information system efficiency, an important element in the decision-making
process is the quality of information. The people in the study were requested to specify what
significance each feature has when making decisions. The results have been presented in
ascending order: timeliness of the information (average – 3,83), explicitness (average – 3,74),
completeness (average – 3,70), credibility (3,68), reliability (3,65), precision (3,56),
punctuality (3,55), accessibility (3,5), security (3,37). The smallest priority was attributed to
the usefulness of information (average – 3,34). This ordering pertains to the total results
obtained in the process. However, it can be observed that depending on the type of decisions
made by the managerial personnel, there are differences as to the quality requirements of
information. When making administrative decisions, precision and completeness of
information turned out to be important factors. This is probably related to the necessity to
receive documents where completeness and precision of information are necessary conditions
for the appropriate circulation and thus help avoid delays in the administrative process.
On the other hand, when making managerial decisions (for instance evaluating subordinates)
more emphasis is laid on reliability and explicitness than on completeness and precision.
15
In local government institutions there are many rules, regulations or procedures which
have and impact on the collection of information for the decisions made. Unfortunately, this
gathering or collection of information are of average quality. This answer was given by
the respondents most frequently when asked about the quality of documents. These problems
may stem from the lack of explicit regulations and as a consequence are difficult to interpret.
The respondents put great emphasis on the explicitness of information. The greatest number
of responses pointing to the good quality of documents received was in the area of internal
collections i.e. resolutions, ordinances, office orders. On the other hand, the greatest number
of negative grades were given to the procedures of the Quality Management System or the
Environmental Management System.
In the study we have identified factors, which, according to the respondents are important
for appropriate decision making. They were asked to assess the role of each of the ten factors
(presented below in table 1) that are deemed essential elements of the administrative and
managerial decision making process.
Table 1
Factors underlying the decision-making process
1
2
3
4
5
6
7
8
9
10
Factors which are relevant for appropriate decision making in offices
Additional financial means to develop competencies and knowledge of the officials
Regular training courses on using modern information technologies
A change in the organizational structure, which will facilitate circulation/reaching the necessary
information/knowledge
Greater open-mindedness of officials for new developments and constant training and improving
A clearly specified system of motivation, assessment, rewards and remunerations of officials
Quick access to the current legal regulations, bills, resolutions, procedures etc.
Better cooperation with external institutions, authorities
Access to good practice database, solutions from other offices (e.g. on the base of benchamrking)
Making use of the analytical tools (data warehouses, decision support systems)
Better system of selection and recruitment of the new officials
Source: Author’s own study.
The most frequently mentioned factor which underlies appropriate decision making in
the administrative decision group was quick access to the current legal regulations, bills,
regulation procedures (72%). In second place was the need to cooperate more efficiently with
external institutions and authorities (56%). On the other hand, in the managerial decisions
group the most frequently mentioned factors were: a clearly specified system of motivation,
assessment, rewards and remunerations of officials (57%). By comparing individual factors
(figure 1 below) in various decision-making groups we can observe the biggest difference
when it comes to the choice of the fifth factor (clearly specified system of motivation,
assessment, rewards and remunerations of officials) and the seventh (better cooperation with
external institutions, authorities).
16
It can testify to the fact that one of the weak sides of the public institutions is managing
human resources, but foremost it pertains to the motivational areas, assessment, trainings and
the development of employees.
180
Factors conditioning the decision making process
160
140
120
100
80
60
40
20
0
1
2
3
4
5
administrative decisions
6
7
8
managerial decisions
9
10
Fig. 1. Factors underlying the decision making process
Rys. 1. Czynniki warunkujące podejmowanie decyzji
Source: Author’s own study based on research analysis.
The manager also specified what problems they have to face when making efficient
decisions. The most significant barriers were: too little time to analyze certain issues (24%),
lack/shortage of the good quality information (15%) as well as fossilized procedures and too
much bureaucracy (12,8%). It is surprising though that a lot of respondents did not comment
on the issue of insufficient skills to make difficult decisions (24,16%), i.e. every fourth
manager cannot or does not want to assess herself or himself.
4.2. Decision-making competencies
The success in the decision-making process is heavily dependent on the decision-making
potential of the manager i.e. her or his personality, knowledge, experience, ability to organize
her or his work, leadership style, competences as well as attitude and motivation. Thus,
the managers assessed twenty four elements of decision-making competences which included
knowledge, skills, attitudes, personality traits as: essential, of average importance or nonessential in decision making. The competencies are ascribed a rank where a higher number
signifies a higher given priority (table 2).
17
Table 2
Decision-making competencies
Competencies
K1 – Specialist Knowledge
K2 – Considerable management knowledge
K6 – Strict observance of procedures, rules and legal norms
K20 – Self-improvement, willingness to improve qualifications and acquire knowledge
K4 – Significant work experience
K7 – Ability to resolve conflicts
K8 – Ability to predict and analyse facts
K13 – Ability to delegate powers
K14 – Ease in creating appropriate culture and friendly atmosphere among co-workers
K22 – Resistance to stress
K15 – Ability to motivate others
K18 – Ability to lead a group, leadership
K5 – Making use of modern information and communication technology
K12 – High level of professional ethics (integrity, justice)
K21 – Strong personal motivation
K11 – Involvement in the work and realisation of goals of an organisation
K17 – Ability to solve problems conceptually and creatively
K9 – Courage and ability to make decisions quickly
K23 – Sensitivity and empathy
K24 – Self-confidence
K19 – Ability to communicate and work in groups
K16 – Ability to use intuition in the decision making process
K3 – Knowledge of foreign languages
K10 – Propensity to risk taking
Ranks
24
23
21,5
21,5
19
19
19
16
16
16
14
13
11
11
11
9
8
6
6
6
4
3
2
1
As can be observed, apart from specialist knowledge, a priority (second rank) area that
has been pointed to was management knowledge and then closely followed by
the development of other competencies (note that these competencies pertain to
the administrative aspects of work). These higher ranking priorities may imply that
managerial attitude to management is growing. The propensity to risk taking is most often
selected as unnecessary (or of average importance), knowledge of foreign languages or using
intuition in the decision making process, is certainly caused by the way these organizations
function. However, the low importance ascribed to communication and teamwork has to be
assessed critically.
It has also been noted that sex of the respondents differentiates the results in
competencies such as: propensity to risk taking (p = 0,022416) and in the ability to
communicate and work in a team. Women are less likely to take risks but exhibit greater
ability to communicate and work in a team.
It has also been noted that there is a significant dependency between the age of a manager
and the following competencies: vast knowledge in management (p = 0,023861), significant
job experience (p = 0,007522), propensity to risk-taking (p = 0,032767), high level of work
18
ethics (integrity, justice) (p = 0,015649), conceptual skills, and the ability to deal creatively
with problems (p = 0,013041). The managers in the age group between 46 and 60 year old
more willingly make decisions in risky conditions. It is probably connected to greater
management knowledge and experience.
25% of all the managers pointed to conceptual skills and creative problem solving, where
a big part of this group is composed of managers between 46 and 60 years old (46%) and
managers between 35-45 (36%).
5. Conclusion
In the study part, the following questions were posed: what significance does the quality
of information, as well as the information system, have on the decision-making process and
what competences should the managers of local government institutions have to make
the right decisions. The studies have shown that the decision-making needs of the
respondents are not fully met due to the quality of information. One of the problems is also
the waiting time for essential information as well ambiguity of the regulations and task
overload
(fast pace of work), especially in smaller offices. Work overload has been mentioned as the
most frequent reason for standstills in processing information. It is especially true for units in
small rural communes (gminas) where managers complain about work overload (40% of all
choices).
In the studied organizations we have not observed a shortage of information problems,
but on the contrary, its abundance. Every fourth respondent avoided answering questions
pertaining to making difficult decisions.
In the studies that we have conducted among the managerial personnel of the local
government institutions, the most frequently chosen competencies of an ideal manager were
the ones related to the specificity of their jobs. They, most of all, pertained to expert
knowledge, strict observance of procedures, regulations and legal norms and also knowledge
on management. On the other hand, lower marks were given to competencies such as: ability
to solve problems in a conceptual and creative way, the ability to make use of intuition in
the decision making process and the involvement in work and attaining goals of an
organization. This latter point, however, could be explained by the character of the two
aforementioned problems.
The presented results can testify to the fact that a weaker point of the offices is managing
human resources, and this refers to areas such as motivation, evaluation, training courses and
workers’ development. However, the managers exhibit high motivation to increase their
19
skills, to improve themselves and acquire knowledge. Unfortunately, there are unfavourable
circumstances for the improvements to take place.
Decision making in local government institutions is still heavily influenced by
administrative and political priorities, but more and more frequently a need for a managerial
approach can be observed.
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Liliana HAWRYSZ
Politechnika Opolska
Wydział Ekonomii i Zarządzania
Katedra Organizacji i Zarządzania Przedsiębiorstwem
Katarzyna HYS
Politechnika Opolska
Wydział Inżynierii Produkcji i Logistyki
Instytut Innowacyjności Procesów i Produktów
THE RESULTS OF THE IMPLEMENTATION OF QUALITY
MANAGEMENT TOOLS IN THE PUBLIC SECTOR
Summary. The purpose of the article is to show the state of progress of quality
management in the administrative offices in Poland and to provide an indication of
the implementation effects of the most popular ISO and CAF quality management
tools. The empirical material was gathered thanks to participation of the article
authors in the implementation of the CAF model in the subject of the government
administration, and in cooperation with the IBC Group research, carried out in 2008
and 2009. The results obtained show the immaturity of managers, who do not
understand that the burden of responsibility for the building of quality management
systems lies on them. The lack of understanding and full commitment in the concept
of quality makes the employees, engaged in many activities at the same time, treat
the implementation and later the self-assessment, according to the CAF method,
as one of many responsibilities. The consequence of such an attitude may be
superficiality of actions taken. Although quality management has been present in
the units of the public administration for many years, a great part of activities is left
hanging in the air and is not associated with a coherent vision of quality.
Keywords: quality, quality management, public sector, ISO, CAF
SKUTKI IMPLEMENTACJI NARZĘDZI ZARZĄDZANIA JAKOŚCIĄ
W SEKTORZE PUBLICZNYM
Streszczenie. Celem artykułu jest pokazanie stanu zaawansowania zarządzania
jakością w urzędach administracji w Polsce oraz wskazanie efektów implementacji
L. Hawrysz, K. Hys
24
najpopularniejszych narzędzi zarządzania jakością ISO oraz CAF. Materiał
empiryczny został zgromadzony dzięki uczestnictwu autorek artykułu
w implementacji modelu CAF w podmiocie administracji rządowej, oraz badaniom
firmy IBC Group zrealizowanym w latach 2008 i 2009. Uzyskane w ten sposób
wyniki pokazują niedojrzałość kadry zarządzającej, która nie rozumie, iż ciężar
odpowiedzialności za budowanie systemów zarządzania jakością spoczywa właśnie
na nich. Brak zrozumienia i pełnego zaangażowanie w idę jakości powoduje,
iż pracownicy zaangażowani w wiele działań jednocześnie traktują implementację,
a później samoocenę wg metody CAF jako jeden z wielu obowiązków. Konsekwencją
takiego podejścia może być powierzchowność podejmowanych działań. Mimo, iż
zarządzanie jakością jest obecne w jednostkach administracji publicznej od wielu lat,
znaczna część działań zawieszona jest w próżni i nie wiąże się ze spójną wizją
jakości.
Słowa kluczowe: jakość, zarządzanie jakością, sektor publiczny, ISO, CAF
1. Introduction
The changes, that have taken place very intensively in economic and social life over
the last few years, have also affected public sector organizations. One of the consequences
was the fashion to apply new management concepts, with particular emphasis on those based
on quality. While today's prospects of running a business in the private sector marked by
globalization, increasing competition, rapidly changing customers' expectations and
a shortened product life cycle have resulted in treating quality as a an absolute priority, the
situation in the public sector is shaped inversely.1 Although in both sectors, some similarities
can be observed between customers’ expectations and an emphasis on eliminating waste,
a determination to attain perfection in these two areas is different. Similarly, the way of
understanding the quality is different. Generally, the condition of quality management in
the public sector is quite weak, especially because of the understanding of quality as a formal
correctness of implemented actions.2 The reason for such poor condition is believed to be
the lack of executives’ commitment in building a new culture oriented to effectiveness,
efficiency and flexibility of actions. As shown by the British experience in implementing
various models of quality management, an implementation process must be conscious and
deliberate, and its pillar must be involved managers in a new organizational culture,
formulated in the mission of the organization, showing the staff the need for care about the
quality of services.
1
2
Appleby A., Clark A.: Quality management in local government, the same as in the private sector but
different. “Leadership & Organization”, No. 18, 2001, p. 29.
Skierniewski T.: Diagnoza modelu zarządzania jakością w administracji rządowej. Raport początkowy.
Warszawa 2008.
The results of the implementation…
25
This article has been devoted to deliberations on the state of progress of quality
management in public administration offices in Poland, with particular reference to ISO 9001
tools and the CAF method. The authors' own observations are interspersed with a picture
obtained by IBC Group.
An analysis of European trends in the improvement of management allows to single out
a sequence of pro-quality actions, starting with the ISO 9000 standard, through the EFQM
Excellence Model, ending with a total quality management TQM. The content of the article
was constructed similarly but without the last element of this system.
2. Step one: ISO
In progress of the study carried out by the IBC Group in 2008, reaching 2300 offices
throughout Poland3, it turned out that 84% of them do not conduct a conscious policy of
quality management. From among the 16% of examined offices, which declared having
a defined quality policy, for 79% of them the quality issues are elements of strategy. The
most popular tool was ISO 9001:2000, its possession was declared by 61% of offices, half of
which implemented this tool by themselves. From the data published in 2009 by the
European Union Monitor resulted, that 17% of municipalities had at that time received an
ISO 9001 certificate. The study of the MIA carried out in the first half of 2009 among local
government administration offices shows, that this is about 20,3%.4 Thus, the estimated
popularity of ISO 9001:2000 tool in Polish offices in 2009, oscillates between 16% – 20.3%,
which means that at the most optimistic assumption is that every fifth office in Poland is
certified, while in 2010, more than 60% of the Canadian offices could boast of quality
standards compliance, and 90% of the institutions of local government in the UK had ISO.5
3
The answer was obtained from 720 offices.
Wysocki S.: Diagnoza jakości polskiej administracji. „Gazeta Samorządu i Administracji”, Nr 3, 2011,
s. 35-37.
5
Dominik I.: A po co to ISO? Newsweek.pl, 22 Marzec 2010.
4
L. Hawrysz, K. Hys
26
55
50
45
40
35
30
25
20
15
10
5
0
1997
1998
2000
2001
2002
2003
2004
2005
2006
2007
2008
Fig. 1. Number of certificates obtained by governmental entities in subsequent years
Rys. 1. Liczba certyfikatów uzyskanych przez organy administracji rządowej w kolejnych
latach
Source: Skierniewski T.: Diagnosis of the quality management model in government
administration. The initial report. Warsaw 2008, p. 75.
At the end of 2010 the interest in certification systems for public organizations with ISO
9001 and the System of Counteracting Corruption Risks rapidly increased. The reason of this
interest was, among other things, the fact that the implementation of Quality Management
System consistent with the requirements of PN EN ISO 9001:2009 together with
requirements of the system of counteracting corruption risks was placed in December 2010 as
a parliamentary amendment in the Government's bill on the rationalization of employment in
national budget units and some units of the public finances sector. This project provided that
the units which implement these systems will not be forced to reduce the employment for the
period 2011-20136.
Quality management systems are meeting with a common criticism. They are accused of
being too costly, excessive formalism, reducing the flexibility of activities, contributing to an
organizational mess. However, reasons of those imperfections should not be sought in the
system itself but only in its incorrect implementation. Incorrect, that is implemented without
previous preparation of executives, who then would have taken upon themselves an
obligation to build a team involved in the idea of quality.
6
Glazer T.: Polska w strukturze certyfikowanych systemów zarządzania. SPZK – Przeciwdziałanie
Zagrożeniom Korupcyjnym, [w:] Dobre Praktyki Doskonalenia Zarządzania, Przeciwdziałanie Zagrożeniom
Korupcyjnym, materiały z konferencji, która odbyła się 29-06-2011 pod honorowym patronatem
wicepremiera, Ministra Gospodarki RP Waldemara Pawlaka, s. 9-10.
27
ISO is the most common tool of quality management used in public administration in
Poland, nevertheless it is accused of focusing primarily on the industrial sector. Its mission is
to improve the level of quality awareness and not, as some representatives of top
management claim, ensuring high quality. Its popularity in the public sector is explained,
among other things, by a clear significant message that it brings to the recipient, considering
its universality in industry and services. Not without meaning is the fact that when the
"fashion for quality" entered the public sector units, i.e. in 1999, ISO was the only significant
and well-known quality management system, while other systems were only in their early
stages.7
As the CAF model is a kind of combination of assumptions resulting from the concept of
total quality management (TQM), and the model of the European Foundation for Quality
Management (EFQM), in the hereby article it will be treated as a second step of public
organizations towards quality.
3. Step two: CAF
Located in the second place, with regards to popularity in Poland, the CAF model was
popularized by large systemic projects. In October 2006 a pilot programme began:
the implementation of the CAF method in chosen ministries and central offices –
improvement of administrative capacity in selected central government organizations.
20 central offices took part in the project, including: The Ministries of Finance, Agriculture
and Rural Development, Economy, Labour and Social Policy, Regional Development,
Justice, Foreign Affairs, Health, the Office of Electronic Communications, Chief Sanitary
Inspectorate, Office of Railway Transport, Agricultural and Food Quality Inspection, Central
Statistical Office, Public Procurement Office, General Veterinary Inspectorate, Polish
Financial Supervision Authority, National Atomic Energy Agency, Chief Inspectorate of
Environmental Protection, Ministry of Interior and Administration, and the Central Office of
Measures.8 In the years 2008-2009 in the Department of Civil Service and the National
Personnel Resources, which was a beneficiary in the Chancellery of the Prime Minister,
a project entitled Improvement of the Management Capacity in Government Administration
Offices was implemented, within the frameworks of the submeasure 5.1.1. It is a project with
a budget of more than 7,86 million PLN (i.e. about 1,9 million euro), of which 85% is
financed by the European Social Fund under the Human Capital Operational Programme.9
7
Skierniewski T.: op.cit.
Kowalczyk A.: ISO to już za mało. „Fakty” (magazyn gospodarczy), Nr 4 (40), 2009.
9
www.dsc.kprm.gov.pl/aktualnosci.php?id=9&look=129, 14.09.2009.
8
L. Hawrysz, K. Hys
28
It included 70 units of the public sector.10 Units of local government also received support
within the frameworks of systemic projects. One of them was implemented from 1 May 2009 to
31 December 2011, and it aimed at preparing local government units to use the Common
Assessment Framework. 303 units of the local government took part in it (80 in the first edition
of the project and 223 in the second). On the 29th of December, 2011 the contest entitled
Improvement of the Management in Units Based on the Results of the Common Assessment
Framework (CAF) was announced, within the framework of the Human Capital Operational
Programme 2007-2013, submeasure 5.2.1 Management Modernization in Local Government11.
One of the criteria of the contest was taking part in previous “preparatory” projects.
From 1-07-2010 to 31-10-2011 a project of 2.3 million PLN was implemented (i.e. about
562 thousand euro) entitled "Plan-Do-Check-Act", addressed to six offices of local
government administration of the Pomorskie and Kujawsko-Pomorskie provinces, aimed at
the change of quality of the currently used management model through the implementation of
the CAF method.
In total, for the measures planned or implemented within Priority V, Good Governance
for the years 2007-2013, 50 million PLN were provided (i.e. more than 12 million euro).
79
89
80
70
60
50
42
40
35
09-2009
3
05-2011
5 4
4
podkarpackie
3
8
małopolskie
2
49
świętokrzyskie
10
śląskie
mazowieckie
10
łódzkie
611
3
kujawsko-pomorskie
wielkopolskie
pomorskie
zachodniopomorskie
9
3
0
21 22
16 16 13
10
15
16
opolskie
12 11
11 7 11
11 7
6
6
7
3
lubuskie
3
11
podlaskie
10
17
lubelskie
20
15
warmińsko- mazurskie
20
26
27 27
dolnośląskie
30
04-2012
Fig. 2. Characteristics of the CAF layout in particular provinces
10
11
http://caf.com.pl/index.php?p=91, 14.09.2009.
http://ip2.mac.gov.pl/portal/ip2/552/3892/Projekt_dokumentacji_konkursowej_dla_konkursu_otwartego_nr_1
POKL5212011_Doskonal.html, 12.01.2012.
29
Rys. 2. Charakterystyka układu CAF w poszczególnych województwach
Source: own work based on www.eipa.eu and www.caf.com.pl.
4. What’s next?
The ISO tool has been treated in this article as a starting point for organizations in
the effective handling of quality management tools, while the CAF model, which is a very
useful tool, but only if it is applied deliberately and consistently, throughout its existence.
Simplifying, the ISO provides the basis for a reorientation of the organization and redirecting
it to client's needs, but above all the implementation and continuous improvement
of the quality management system is the cause of improving the level of quality awareness.
This does not mean, however, that a necessary condition for the implementation of the CAF
model is the implementation of a Quality Management System consistent with
the requirements of PN EN ISO 9001:2009. However, it allows for a deeper understanding
of quality among managers and employees.
Effective implementation of the CAF model, should proceed in a planned process
of several years, preceded by an assessment of the work method and results by the office
workers themselves. Only a complete cycle of diagnosis, supported by the implementation
of improvement activities causes that the use of the CAF gives practical benefits. Offices
using the CAF approach for years emphasize, that it is necessary to carry out several cycles
of evaluation and improvement to really be able to show that there has been significant
improvement of the management and results.12 Most frequently, it is considered that
the implementation and maintenance of pro-quality solutions (either ISO, or CAF, or EFQM
or others) is connected with an appropriate level of employee involvement, development
of knowledge about the quality, or maintenance of a sufficient level of motivation, but our
experience shows that the main burden of responsibility for the bulk of carried out activities
promoting quality in the organization, lies on the management team. Managers in the public
sector do not fully understand the obligations arising from their role. They focus on building
external relationships and neglect inspiring employees and creating a positive climate in
the organization. They devote little attention to uniting employees around the strategic
challenges facing the office. This negligence results in a decrease of employees’ involvement
in quality idea. According to E. Deming, managers are responsible for 60-70% of the causes
of poor work.13 Therefore, the implementation of any of the tools (methods, systems)
of quality management should be preceded by building support among the managers, so that
12
Buchacz T., Wysocki S.: Zarządzanie jakością w administracji – europejskie wzorce, polskie doświadczenia.
„Służba Cywilna”, Nr 5, 2002/2003, s. 38.
13
Bełcik A.: Interwiew with Professor Krzysztof Opolski, Monitor Unii Europejskiej, 3 March 2009.
L. Hawrysz, K. Hys
30
in consequence of actions taken later by them, a culture of quality will be established in an
organization, concentrated around individual and collective beliefs of the duty of people for
good quality work and the need of improving what can be improved. Characterised by high
effectiveness and efficiency, achieved thanks to the commitment of both workers (all levels),
as well as clients in the process of improving the individual. Workers, who adhere to
the credo of quality do not need to be controlled, their behaviour is controlled by the values
that they adhere to.
A good example illustrating the validity of the above-mentioned postulates, would be
the Inland Revenue Office Cumbernauld from the United Kingdom (AOC), which began
the process of implementation quality policies in 1985. The process of changes began with
the redesign of the management system in the office. The attention was put on the gradual
shift from an autocratic style of management and the introduction of targets concerning
the client’s service to the scope of functions on part of all employees. Next, all the managers
attended permanent trainings on the TQM issues. In 1990 a working group responsible for
the quality improvement plan was established, responsible for the quality improvement plan.
Its key task was to focus on the client, to establish measures for quality improvement and
the development of employees' skills. In 1994 a decision was made to make the first selfassessment by the EFQM model. Prepared in this way an organization was awarded in 1998,
as the UK's first public sector organization with the European Quality Award.14 This
undeniable achievement was possible thanks to the conscious and deliberated process
of implementation, the pillars of which were involved managers and a new organizational
culture – culture of quality.15
That is why it is necessary to change the way of understanding the essence of quality by
the public administration units, which have so far been analysed mainly from the internal
perspective, without considering the needs and expectations of clients.
Actions that have been and are taken by the public sector units are extremely important
from the point of view of quality management improvement in this sector, and thus de facto
from the point of view of the recipients of quality management. Our observations indicate,
however, that the weak link of these actions appear to be managers of these units. Definitely
a weak point of offices is the lack of ability to appreciate the initiative, hard work, good ideas
of employees. Moreover, initiative of employees is not only not appreciated, but even
undesirable. The sources of these weak points should probably be looked for in the wrong
management style of managers of the lowest and middle level, who are usually specialists in
their field who get promoted to management, but without the ability of staff management.
Therefore, many public sector organizations have a huge problem with internal
14
15
Buchacz T., Wysocki S.: op.cit.
Zbiegień-Maciąg L.: Kultura w organizacji. Identyfikacja kultur znanych firm. PWN, Warszawa 1999.
31
communication, which reveals the full force on the line: middle level managers and the lower
level managers. Managers are not aware that the burden of responsibility for the building
of quality management systems lies on them.
The lack of understanding and full
commitment in the quality idea makes the employees, engaged in many activities in the same
time, treat the implementation and later the self-assessment according to the CAF method, as
one
of many responsibilities. It’s not necessary to look far to see the effects. Even now, after two
self-assessments which some public sector organizations have underwent, it appears that
because they have not reviewed all of their processes, optimization, which is carried out in
them, is local, so decisions taken are good only from the point of view of part of the process.
Preparation of process implementation and improvement of management systems in
public sector organizations is spontaneous and chaotic. They lack a consistent definition
of quality and lack in organizational culture, pertaining not only to quality but changes in
general. The decision to build a quality management system should be a strategic decision
of the whole organization, in which managers should take an active part. However, practice
shows a lack of understanding and commitment in favour of quality and the expectation
of immediate results. From the point of view of quality it is not important which path will be
chosen by the office. The use of ISO, the CAF method, departmental standards, or other ideas
on quality may lead to the construction of a coherent and effective management system,
providing that it is not a goal in itself. Therefore, executives who do not coordinate, do not
monitor and do not show the commitment to the implementation of corrective and preventive
actions, contribute to the waste of public money by wasting time, energy and enthusiasm
of employees who are conducting these activities.16
In Polish reality (but not only in Poland), it turns out that the awareness of the need for
quality itself, existing in the organization, is not sufficient because it does not lead to
a change of employees’ behaviour. Moreover, articulated characteristics of public
organizations – including the emphasis on compliance with procedures, rules and regulations,
and achieving goals – form a mixture of a bureaucratic and authoritarian climate, which is
characterized by strong pressure of power and an attitude to carry out tasks.17 While from the
point of view of quality a desirable would be innovative, characterizing with the influences
and position of employees dependent on their professional qualifications. Therefore, besides
creating the foundations for a quality culture, managers are expected to consciously manage
the process of its creation. In public sector organizations it is necessary to develop leadership
attitudes in the scope of responsibility for the building of quality management systems,
16
Kozera I.: Diagnoza modelu zarządzania jakością w administracji rządowej. Kapitał intelektualny jako
determinanta realizacji polityki jakości w urzędach administracji rządowej, 2009.
17
Kożusznik B.: Zachowanie człowieka w organizacji. PWE, Warszawa 2007.
L. Hawrysz, K. Hys
32
improving quality and personnel management.18 The state of progress of quality management
in public sector organizations in Poland can be regarded as a fledgling, not only because
of the number of organizations that have implemented any of the tools (systems, methods),
but mainly because of the chaos of these implementations. Its consequence is the bipolarity
of attitudes of employees and executives, characterized by, on one hand, with the quality
of timeliness, the ability to work in teams, meeting clients’ expectations, etc., and on the
other hand, the lack of ideas for self-esteem of quality and factors on the basis of which it can
be evaluated. Among the units that have implemented a quality management tools there are
too many who have simply reduced the concept of quality to the formal fulfilling of
requirements to meet a set of standards.
A great part of the activities aimed at quality improvement in the administration is hanged
in the air and is not connected with a coherent quality policy. Activities carried out in an nonintegrated way become competitive in relation to each other. The problem of quality
management in administration is not a consequence of applying inappropriate, to the needs
of the sector, quality models (Such opinions appeared among employees of examined
offices). It results from the wrong understanding of the models’ assumptions and lack
of effective implementation aimed at changing attitudes and awareness at various levels
of management, starting with the highest.
”The project was financed from the National Science Centre sources, granted by
the decision number DEC-2011/01/B/HS4/04796”
Bibliography
Books
1. Kożusznik B.: Zachowanie człowieka w organizacji. PWE, Warszawa 2007.
2.
Zbiegień-Maciąg L.: Kultura w organizacji. Identyfikacja kultur znanych firm. PWN,
Warszawa 1999.
Jurnals
3. Appleby A., Clark A.: Quality management in local government, the same as in
the private sector but different. “Leadership & Organization”, No. 18, 2001.
4.
Buchacz T., Wysocki S.: Zarządzanie jakością w administracji – europejskie wzorce,
polskie doświadczenia. „Służba Cywilna”, Nr 5, 2002/2003.
18
Kozera I.: op.cit.
5.
33
Wysocki S.: Diagnoza jakości polskiej administracji. „Gazeta Samorządu i Administracji”,
Nr 3, 2011.
Conference procedings
6. Glazer T.: Polska w strukturze certyfikowanych systemów zarządzania. SPZK –
Przeciwdziałanie Zagrożeniom Korupcyjnym, [w:] Dobre Praktyki Doskonalenia
Zarządzania, Przeciwdziałanie Zagrożeniom Korupcyjnym, materiały z konferencji,
która odbyła się 29.06.2011 r. pod honorowym patronatem wicepremiera, Ministra
Gospodarki RP Waldemara Pawlaka.
Reports
7. Kozera I.: Diagnoza modelu zarządzania jakością w administracji rządowej. Kapitał
intelektualny jako determinanta realizacji polityki jakości w urzędach administracji
rządowej. Raport końcowy. Warszawa 2009.
8.
Skierniewski T.: Diagnoza modelu zarządzania jakością w administracji rządowej.
Raport początkowy. Warszawa 2008.
Newspaper articles
9.
Bełcik A.: Interwiew with Professor Krzysztof Opolski, Monitor Unii Europejskiej,
3 March 2009.
10. Dominik I.: A po co to ISO? Newsweek.pl, 22 March 2010.
11. Kowalczyk A.: ISO to już za mało. „Fakty” (magazyn gospodarczy), Nr 4 (40), 2009.
12. Interwiew with Buchacz T., http://www.dzierzoniow.pl/ff_news/code/newstab/one_news
_form?ktab=&f_kat=18&n_id=news2011-03-01-090912242&searchterm=caf.
Katarzyna KROT
Bialystok University of Technology
Management Department
THE SIGNIFICANCE OF TRUST AMONG USERS OF SOCIAL
NETWORKING WEBSITES – STUDY ON CONSTRUCTION
AND INTERIOR DESIGN PORTALS
Summary.
Purpose: Trust in e-business is a key factor because of impersonal contact,
dependence on IT systems and the need to disclose important information. Trust can
influence behaviour by motivating the audience to read the message, but also
encourages Internet users to assess their usefulness. Therefore, the aim of the survey
was to assess the significance of trust in the other website users for building general
trust in online portals, as exemplified by construction and interior design portals.
Methodology: The study was carried out in the form of an online survey sent to
individuals by e-mail.
Findings: The study revealed that most of the respondents exhibited a fairly
passive approach, treating the portals as a source of information about trends in
architecture, interior design or building and house decoration companies. There is
a strong correlation between the total trust in the construction and interior design
portal in general and trust between its fellow users. This trust manifested itself most
strongly as confidence in the honesty of online community members, as well as
confidence in the skills and knowledge of people who recommend products or share
their opinions on the portal.
Originality: Most of the studies conducted so far have concerned online shops in
the context of IT systems use of third-parties and privacy protection,1 the company’s
goodwill, the quality of websites and their influence on the decisions whether to
participate in e-commerce or not.2 The present study aims to assess the level of trust
among the users of social networking portals, contributing to these with their
recommendations, reviews or opinions.
Keywords: online trust, virtual community, social network, Poland
1
Pavlou P.A.: Consumer acceptance of electronic commerce – integrating trust and risk with the technology
acceptance model. “International Journal of Electronic Commerce”, No. 3, Vol. 7, 2003, p. 69-103.
2
McKnight D.H., Choudhury V., Kacmar C.: The impact of initial consumer trust on intentions to transact with
a web site: a trust building model. “Strategic Information Systems”, No. 3/4, Vol. 11, 2002, p. 297-323.
K. Krot
36
ZNACZENIE ZAUFANIA DO CZŁONKÓW SPOŁECZNOŚCI
INTERNETOWEJ NA PRZYKŁADZIE PORTALI BUDOWLANOWNĘTRZARSKICH
Streszczenie. Zaufanie w e-biznesie jest kluczowym czynnikiem wpływającym na
wielkość sprzedaży i sukces firm prowadzących taką działalność. Bezosobowy
kontakt, konieczność posługiwania się systemami informatycznymi oraz konieczność
ujawniania istotnych danych sprawiają, że klienci czują się w środowisku
internetowym wyjątkowo niepewnie. Warto więc zastanowić się, jakie czynniki mogą
budować zaufanie użytkowników do portali internetowych. W związku z tym celem
badania było określenie znaczenia zaufania do użytkowników portali w budowaniu
ogólnego zaufania do tych portali na przykładzie portali o profilu budowlanownętrzarskim. Respondenci deklarują raczej umiarkowane zaufanie do portali
budowlano-wnętrzarskich, co jest związane z ograniczonym zaufaniem do ich
użytkowników. Okazało się bowiem, że istnieje silna zależność pomiędzy zaufaniem
do portali a zaufaniem do osób tworzących społeczność tych portali.
Słowa kluczowe: zaufanie online, społeczność internetowa, Polska
1. Introduction
Despite growing interest in the problems of trust in the sphere of human relations in
business management or in the knowledge-based economy, new areas are continually being
added for further research. One such area is trust in new technologies and activity
of companies in the online environment.
Trust in e-business is a key factor in the sales and success of companies engaged in these
activities. Impersonal contact, dependence on IT systems and the need to disclose important
information, make customers feel extremely uncertain in the online environment. It is worth
considering what factors can build user confidence in Web portals. It seems that one of them
is trust in other portal users. Therefore, the aim was to demonstrate the importance of trust
towards other online community members and to determine the level of trust in interior
design portals and trust in users of these websites, as exemplified by construction and interior
design portals.
2. Definition of trust
Increasing choice and increased difficulties in making a rational decision heighten
the importance of trust. Trust becomes a clue to help evaluate and choose among potential
The significance of trust…
37
opportunities.3 These options may include personal choices, products, service providers, but
also building relationships. As Morgan4 states, trust and engagement are the essential
elements of creating relations. Trust is the decision to rely on another party under a condition
of risk.5
First of all, trust development is one of the main conditions of effective cooperation
among people, groups and organizations, and consequently common objectives can be
achieved.6 Thanks to cooperation based on trust, it is possible to stimulate creativity, generate
innovative solutions, but also effectively implement these innovations. In fact, trust
reinforces one of the basic conditions for innovation – knowledge acquisition and knowledge
dissemination processes.7
Trust can be defined as the willingness to increase the resources invested in another party,
based on positive expectations resulting from past positive mutual interactions. It is the belief
that neither of the parties will ever act to the partner’s detriment, taking advantage of their
weaknesses.8 Trust results from positive notions being a consequence of current mutual
interactions.9 Trust means expectation and faith that the partner will act to our mutual benefit.
It occurs as a result of perceiving the other as a reliable partner in the relationship.
On the other hand, trust is connected with uncertainty about the partner's motives,
intentions and actions.10 As pointed out by Grudzewski et at., trust is the belief on which unit
A in a particular case agrees to depend on individual B (a person, object, organization)
having a sense of relative safety, even though negative consequences are possible.11
Inspiration
of trust is promoted by a consensus in respect of one's values, both in individual and
corporate dimensions. This unanimity makes it possible to somewhat predict the attitude and
3
Sztompka P.: Zaufanie. Fundament społeczeństwa. Wydawnictwo Znak, Kraków 2007.
Morgan R.M.: Relationship Marketing and Marketing Strategy, [in:] Parvatiyar A., Sheth J.N.: Handbook
of Relationship Marketing. London, New Delhi: Sage Publications, Inc. Thousand Oaks 2000.
5
Currall S.C., Epstein M.J.: The Fragility of Organizational Trust: Lessons From the Rise and Fall of Enron.
“Organizational Dynamics”, Vol. 32 (2), 2003, p. 193-206.
6
Ashleigh M.J., Nandhakumar J.: Trust and technologies: Implications for organizational work practices.
“Decision Support Systems”, No. 2, Vol. 43, 2007, p. 607-617; Rousseau D.M., Sitkin B.B., Burt R.S.,
Camerer C.: No so different after all: a cross-disciplinary view of trust. “The Academy of Management
Review”, Vol. 23 (3), 1998, p. 393-404.
7
Loon Hoe S.: Is interpersonal trust a necessary condition for organizational learning? “Journal
of Organisational Transformation and Social Change”, Vol. 4 (2), 2007, p. 149-156; Sveiby K.E., Simons R.:
Collaborative Climate and Effectiveness of Knowledge Work: An Empirical Study. “Journal of Knowledge
Management”, Vol. 6 (5), 2002, p. 420-433.
8
Morgan R.M., Hunt S.D.: The commitment-trust theory of relationship marketing. “Journal of Marketing”,
Vol. 58, 1994, p. 20-38
9
Brockner J., Siegel P.A., Daly J.P., Tyler T., Martin Ch.: When Trust Matters: The Moderating Effect
of Outcome Favorability. “Administrative Science Quarterly”, Vol. 42, 1997, p. 558-583.
10
Gilson L.: Trust and the development of health care as a social institution. “Social Science & Medicine”,
Vol. 56, 2003, p. 1453-1568.
4
K. Krot
38
behaviour of the participants in a relationship, and it also allows for effective communication.
Moreover, trust has the ability to inhibit opportunistic behaviour.12
3. Trust in the online environment
Trust in e-business is a key factor in the sales and success of companies engaged in these
activities. Impersonal contact, dependence on IT systems, and the need to disclose important
information, make customers feel extremely uncertain in the online environment. Moreover,
these uncertainties are heightened because many online retail transactions represent
consumers' first-time interactions with retailers.13
Internet users need trust in order to reduce uncertainty, but also to facilitate their decision
making process. Moreover, when end-users trust the parties they are dealing with, they are
more willing to cooperate with them and believe that they will receive long-term benefits if
they maintain that relationship.14 Thus, trust is an essential motivator for participation in
the online community.15 First of all, it encourages Internet users to stay on the pages longer,
reading articles and posts, and encourages them to take part in activities such as knowledge
sharing, referral sites and services, co-creation of products, etc.16 The results of Hu et al.17
also indicate that trust can influence behaviour by motivating visitors to read the message,
but also encourages Internet users to assess their usefulness. If the end-users know that a
message is sent by a company they trust, they might feel that the message is relevant to their
interests and therefore be more willing to take the time to read it.
End-users are usually more willing to work with a party they trust than a party with
whom they have not developed any kind of a trust relationship, especially in an environment
they are unfamiliar with or unable to control. All these uncertainties might increase the risks
present in using online services and reduce the end-users’ intention to participate in e-
11
Grudzewski W.M., Hejduk I.K., Sankowska A., Wańtuchowicz M.: Zarządzanie zaufaniem w przedsiębiorstwie. Wydawnictwo Oficyna, Kraków 2009.
12
Hampden-Turner Ch., Trompenaars A.: Siedem kultur kapitalizmu. Oficyna Ekonomiczna, Kraków 2000.
13
Grabner-Krauter S., Kaluscha E.A.: Empirical research in on-line trust: a review and critical assessment.
“International Journal of Human-Computer Studies”, Vol. 58, 2003, p. 783-812.
14
Morgan R.M., Hunt S.D.: The commitment-trust theory of relationship marketing. “Journal of Marketing”,
Vol. 58, 1994, p. 20-38
15
16
Pavlou P.A.: Consumer acceptance of electronic commerce – integrating trust and risk with the technology
acceptance model. “International Journal of Electronic Commerce”, No. 3, Vol. 7, 2003, p. 69-103.
17
Hu X., Lin Z., Zhang H.: Myth or reality: effect of trust-promoting seals in electronic market, [in:] Petrovic
O., Posch R., Marhold F. (eds.): Trust in Network Economy. Idea Group, Hershey, PA, 2003, p. 143-50.
39
commerce.18 The lack of consumer trust in online retail firms and the Internet in general is
considered as one of the most important factors limiting the full potential of e-business.19
Therefore, it is essential to understand the factors that can help companies build initial
trust and then maintain and enrich this trust.20 Dwyer believes that trust is important;
he shows that people are more willing to share information on Facebook than on Myspace,
due to greater trust in Facebook.
Trust is usually built based on previous experience. However, regarding Internet
shopping, many authors emphasise the differences between first-time online buyers and
shoppers who have previously purchased online. Therefore, the importance of building
confidence of customers who are new to online transactions is underlined.21 This initial trust
is formed on the basis of assessment of the characteristics of a website or store, their
perceived reputation, and institutional trust in online environment.22 Moreover, it is also
stimulated by signals transmitted by the company, including those about, for example,
the size of the company, compliance with privacy policies and safety rules, or site usability.23
According to McKnight et al.24 perception of these values implicates the appearance of trust,
or a tendency to use the site or purchase making. But it seems that these factors are important
not only for novice Internet users but also beginners in Internet services and industries that
build their social capital online.
The literature identifies two groups of factors which affect the formation of initial trust.
The first comprises cognitive factors, including: word-of-mouth or online opinions regarding
the reputation and quality of products offered by a company. Reputation clues include:
reliability, credibility, knowledge and expertise; whereas among quality guidelines are:
information about the site’s appearance and the way it works.25 Of particular significance
within this group is the protection of personal data, and how these data are used. Companies
18
Pavlou P.A.: op.cit.; Salo J., Karjaluoto H.: A conceptual model of trust in the online environment. “Online
Information Review”, No. 5, Vol. 31, 2007, p. 604-621.
19
Kim E., Tadisina S.: A model of customers’ trust in e-businesses: micro-level inter-party trust formation.
“The Journal of Computer Information Systems”, No. 1, Vol. 48, 2007, p. 88-104.
20
Salo J., Karjaluoto H.: op.cit.
21
Grabner-Krauter S., Kaluscha E.A.: Empirical research in on-line trust: a review and critical assessment.
“International Journal of Human-Computer Studies”, Vol. 58, 2003, p. 783-812; Kim E., Tadisina S.: A
model of customers’ trust in e-businesses: micro-level inter-party trust formation. “The Journal of Computer
Information Systems”, No. 1, Vol. 48, 2007, p. 88-104.
22
23
Grabner-Krauter S., Kaluscha E.A.: op.cit.
24
McKnight D.H., Choudhury V., Kacmar C.: op.cit.
25
Gefen D., Karahanna E., Straub D.: Trust and TAM in online shopping: an integrated model. “MIS
Quarterly”, No. 1, Vol. 27, 2003, p. 51-90; McKnight D.H., Choudhury V., Kacmar C.: op.cit.; Eastlick
M.A., Lotz S.: Cognitive and institutional predictors of initial trust toward an online retailer. “International
Journal of Retail & Distribution Management”, No. 4, Vol. 39, 2011, p. 234-255.
K. Krot
40
which publish terms for the collection and use of personal information about its customers
and enable user control of personal data, seem more credible.26
The second group of factors is known as institutional factors, arising from a variety
of previous general experience in the online environment. These factors are not associated
with a particular company, but they are the result of personal stereotypes and patterns
of thought adopted on the Internet.27 In addition, a universal factor influencing the level
of trust in various conditions, including the online environment, is the end-users' own general
trust (dispositional trust).28
In sum, trust encourages Internet users to cooperate with the company, to increase
interaction with the company (writing opinions, suggesting innovative solutions and
co-products, such as a portal, through participation in forums) and to take over some
functions of promotion (recommending the company among potential customers). Most
studies, however, focus on the study of trust in online stores or other companies doing
e-business, but trust in social networking sites is much less frequently studied.
The success of these portals does not only depend on the ability to inspire initial trust, but
above all, mutual trust between users (trust in other Internet users), since they are the ones
who publish articles, post messages, or recommend products on social networking sites.
The degree of trust determines the strength of relationships both offline and online. It is this
aspect of trust which the present study focuses on.
Trust
in
social
networking
is
a
multidimensional
phenomenon.
Frequently,
29
the dimensions of trust are competence, honesty and benevolence. In the context of virtual
communities, competence refers to the skills of the community members regarding a mutual
interest.30 In turn, honesty is the belief that the second party will keep their word, fulfil their
promises and be sincere.31 Finally, benevolence reflects the belief that one of the parties is
interested in the well-being of the other. In the context of virtual communities, benevolence
26
Salo J., Karjaluoto H.: op.cit.
McKnight D.H., Choudhury V., Kacmar C.: op.cit.; Eastlick M.A., Lotz S.: op.cit.
28
McKnight D.H., Chervany N.L.: What trust means in e-commerce customer relationships: an interdisciplinary
conceptual typology. “International Journal of Electronic Commerce”, No. 2, Vol. 6, 2002, p. 35-59.
29
Ellonen R., Blomqvist K., Puumalainen K.: The role of trust in organizational innovativeness. “European
Journal of Innovation Management”, No. 2, Vol. 11, 2008, p. 160-181; Grunig J.E., Hon L.: Guidelines for
Measuring Relationships in Public Relations. The Institute for Public Relations Commission on PR
Measurement and Evaluation, University of Florida, 1999, www.instituteforpr.com; Dietz G., Den Hartog
D.N.: Measuring trust inside organizations. “Personnel Review”, No. 5, Vol. 35, 2006, p. 557-588; Gutierrez
S.S.M., Cillan J.G., Izquierdo C.C.: The consumer’s relational commitment: main dimensions and
antecedents. “Journal of Retailing and Consumer Services”, Vol. 11, 2004, p. 351-367; Blois K.: Trust in
business relationships: an evaluation of its status. “Journal of Management Studies”, No. 2, Vol. 36, 1999, p.
197-215.
30
Ridings C.M., Gefen D., Arinze B.: Some antecedents and effects of trust in virtual communities. “Journal
of Strategic Information Systems”, Vol. 11, 2002, p. 271-295.
31
Doney P., Cannon J.: An examination of the nature of trust in the buyer-seller relationship. “Journal
of Marketing”, No. 2, Vol. 61, 1997, p. 35-51.
27
41
refers to the expectation that community members will have the intention and the desire to
help, support and care for the other members of the virtual community.32 Thus, honesty and
benevolence help to guarantee that other community members will not carry out
opportunistic behaviours in the virtual community.33
4. Social networks in Poland
The prevailing view is that social media are used to build engagement and dialogue with
consumers. Social networking can be of two kinds. The first group of portals are managed by
one company or brand for customer communication. Two-way, regular and individualized
communication can build long-term relationships between the parties, draw large-scale
activities much closer to their customers, build trust, loyalty, and commitment to the
company as well as to creating a positive image of it. The second group consists of portals
that gather users interested in specific issues, and companies representing the industry, such
as: tourism, construction, medical, etc. or portals like Facebook, or Nasza-Klasa.
Social media is becoming more popular among users and potential new businesses that
plan to create more sites. This trend is illustrated by the information contained on the PARP
(Polish Entrepreneurship Development Agency) website, which through its POIG programme
(Innovative Economy Operational Programme) co-finances a number of projects as described
on its website (www.poig.parp.gov.pl).
The authors of Social Media Report 2010 have attempted to estimate the market value
of social networks in Poland. Total income of the eleven biggest services in 2008 totalling
approximately 83,2 million PLN, a year later increased to 125,9 million PLN. In 2010
the market reached a total turnover of 144,1 million PLN (www.socialpress.pl). It should be
stipulated that the authors only considered income generated by the largest portals in their
estimates, leaving out income from many smaller companies as well as that generated by up
and coming businesses. Thus, these amounts are far too low and do not fully reflect
the potential of this market. Nevertheless, these data indicate the increasing attractiveness
of the social networks resulting from its dynamic growth.
Attractiveness of the social networking market is also due to the activity of Poles in these
sites. GlobalWebIndex prepared a map of the world of social media, where countries with
the greatest number of people using social media are listed. It turns out that with a number
of 12,03 million active social networks members, Poland is one of the leading countries in
32
33
Ridings C.M., Gefen D., Arinze B.: op.cit.
Casalo L.V., Flavian C., Guinalıu M.: Fundaments of trust management in the development of virtual
communities. “Management Research News”, No. 5, Vol. 31, 2008, p. 324-338.
K. Krot
42
Europe. Naturally, ahead of Poland are: Russia (26 million), The United Kingdom
(19,2 million), Germany (18,8), France (15,9) and Italy (12,6; www.socialpress.pl). Poland is
also at the forefront of social media penetration among active Internet users with a ratio of
57%. This is above the global average which is about 51%, and is also above the percentage
rates for the United States, Canada, Australia and Western Europe. The Philippines and
Indonesia (about 76%) and Malaysia (68%; www.socialpress.pl) exhibit the highest levels
of penetration.
If an Internet user finds a web community and participates in discussions in the forums or
participates in chats, and writes blogs and logs in to social networking sites, as based on the
Net Track survey results, one can estimate the number of such people to be around
11,6 million. That is 58% of Internet users in Poland (www.socialpress.pl). This is confirmed
by CBOS (Public Opinion Research Center in Poland) test results, according to which almost
one third of all adult Poles (32%, or nearly two thirds of Internet users) joined a social
networking site, such as Nasza-Klasa, Facebook, GoldenLine.
5. Methodology
Assessment of social networks consists of two complementary dimensions. The first is
the community, the people, forming a group, discussing, commenting, and having various
interactions. The second aspect of this is platform, the place where the community operates,
including (among others): page layout, functionality, usability of the portal, technological
advancement and privacy policy. The basic assumption of the survey conducted for the
purpose of this article was that trust in construction and interior design portals is largely
determined by the reliability of those websites’ active users. The research shows that
relationships with other people that use the same social networking strongly influence
the perception and credibility of public advice and information shared. Internet users
appreciate the opportunity to discuss openly and freely exchange opinions. Almost as
important, is the quality and credibility of the comments. At the same time, information that
Internet users recognize as the most reliable is that which has been posted by their friends.
Therefore, the aim of the survey was to assess the significance of trust in the other
website users for building general trust in online portals, as exemplified by construction and
interior design portals (figure 1).
43
Initial trust
Cognitive factors: opinions
about reputation;
characteristics of web pages
Trust in online community
members
Trust in
construction
and interior
design portals
Institutional trust
Fig. 1. The model of the research
Rys. 1. Model badań
Expenses related to the construction or even redecoration of a house are so important in
the household budget that decisions about purchasing products and services require
considerable effort and time. Moreover, these decisions are associated with relatively high
risk and uncertainty. Consequently, the majority of people making such decisions are looking
for information both among friends, as well as among online resources. Unfortunately,
the problem of trustworthiness of the information contained therein arises. Therefore, for
the purpose of the study, the authors decided to measure confidence in the construction and
interior design portal.
The Internet is an extremely dynamic environment. Not only are social networking sites
evolving, but also, as research shows, the attitude of users to the materials contained therein
is changing. According to a report prepared by GlobalWebIndex , users of portals begin to
focus on the distribution of different materials, and drop out of their creation. This comes
from
the fact that Internet users have increasing trust in authorities and experts. As a result,
throughout the world in 2011, as compared to 2009, there was a nearly 50% increase in
confidence in the people/experts who recommend the product in social networks
(www.socialpress.pl).
On the other hand, as stated in the Edelman “Trust Barometer” report, 2011 was another
period of declining trust in the recommendations received from so-called “people like me”,
with whom we have contact every day in social media. In just two years, the level of trust
dropped 4 percent – from 47% in 2009 to 43% in 2011. This decrease took place while trust
K. Krot
44
in the experts, with whom we have the opportunity to come into contact through social
media, increased (www.socialpress.pl).
The study was carried out in the form of an online survey consisting of a questionnaire
sent to individuals by e-mail. People who, two years prior to the survey, had had a house/flat
built, refurbished or redecorated and who had used interior design websites for that purpose,
were invited to participate in the study. Respondents, in the vast majority of cases, were
people who were either familiar with the author of the study or who were recommended and
whose names were often well known to the author. The establishment of requirements for
the participants of the study and the chosen sampling method (intentional selection) ensured
reliability of obtained answers. Because of the diverse preferences of the respondents and
the variety of social networking portals available, no specific website of this kind had been
suggested in the survey. Rather, the aim was to examine the level of respondents’ trust to
the activity in the online environment, including the recommendations and reviews posted on
the portals.
Apart from the trust scale, the questionnaire contained questions to evaluate respondents'
attitude to Internet use and 5 personal data questions. Particular questions consisted of
several statements, each followed by a five-point Likert scale.
The study involved 57 people. The small sample size results from the difficulty in
reaching the respondents due to: the number of housing completions, the percentage
of Internet users and a tendency to use interior design portals. Therefore, the study is rather
distinctive and explains the test problem, which also served to verify the research tool.
The average age of the respondents was 35. This is a rather specific target group, which
has relatively little free time due to a strong commitment to their careers and family life.
It is also the segment of people who most often purchase real estate and are particularly
interested in facilitating the furnishing of their apartments or houses. Approximately half
of the respondents spend nearly 3 hours a day at the computer using the Internet, while 20%
spend up to 8 hours. During this time, as much as 76% of respondents spent about half an
hour using social networks, and the remaining 24% spent up to 3 hours. The characteristic
of this group of respondents, which distinguishes it from other demographic groups, is
the purpose of using the Internet. As many as 59% of respondents said that they use the
Internet primarily for business purposes, which is consistent with the results of research
conducted by the Interdisciplinary Centre for Mathematical and Computational Modelling.
The authors of this study indicate that better-educated people and people aged 25 to 64 spend
more time using the Internet in an instrumental or work-related way. In addition, almost 44%
of respondents were looking for entertainment on the Internet, and 26% said they use
the Internet for education.
45
6. Findings
The respondents were not keen online shoppers. Although 73% of respondents stated that
they tend to trust companies offering Internet sales, none of them expressed this opinion in
a decisive manner.
They were even less enthusiastic about the level of privacy and personal data protection
on the Internet. Only 20% of respondents believe that they can trust in compliancy of privacy
policies described on social networking websites (again, no answers of “definitely trust”).
At the same time, as many as 50% have an ambivalent attitude toward this issue.
The respondents had limited trust in Internet portals, even though their confidence in
online directories – construction and interior design portals – was slightly higher than in
the case of social networking websites. Nearly half the respondents stated having trust
towards construction and interior design portals while only 35,3% of respondents expressed
trust in the other social networking sites (summed responses “agree” or “strongly agree”).
It is worth noting that there was a relationship between time spent on the network and
the level of trust. The more time respondents spent browsing on Internet pages, the higher
the level of trust declared (p = 0,01).
The level of trust was researched in two ways. First, respondents were surveyed by using
the Likert scale consisting of particular items. Items used were in accordance with three
dimensions of trust towards portals users: competence (3 items), honesty (3 items) and
benevolence (5 items). The items were based on a literature review or earlier research34 and
modified by the author and adapted to the specific field in question. Table 2 shows the results
of Cronbach’s alpha for all dimensions of trust in users. The alpha coefficients portray
satisfactory results, with Cronbach’s alpha ranging between 0,60 and 0,82. Next,
the respondents once again presented their general attitude to other users of portals and to
construction and interior design portals in general, but this time by answering one question.
Table 1
Cronbach’s alpha for dimensions of trust
Competence
Honesty
Benevolence
Cronbach’s alpha
0.82
0.60
0.67
Source: Author.
34
Ibidem; Yu-Hui C. Barnes S.: Initial trust and online buyer behavior. “Industrial Management & Data
Systems”, No. 1, Vol. 107, 2007, p. 21-36.
K. Krot
46
Respondents declared the highest level of trust in the benevolence of portal users and
expressed the belief that the community created the desire to join in their activities in the
common interest of its members (mean 3,6). Slightly below, is certain trust in the competence
of the members of the community (mean 3,54). The lowest level of trust respondents declared
having, was in relation to the integrity of other users (mean 3,49).
The answers received by using particular scales were summed up. In order to determine
the relationship between various dimensions of trust between the members and the general
trust in the construction and interior design portal, the correlation coefficient was calculated
(table 2).
Table 2
Effect of the dimensions of trust on trust in construction and interior design portal
Trust in portal users
Competence
Honesty
Benevolence
Correlation coefficients are significant with p < 0,05000
Trust in construction and interior design portal
0.81
0.76
0.89
0.72
Source: Author.
The main assumption about the relationship between trust in members of community and
trust in portals in general has been confirmed. There is a strong statistical correlation between
the trust in other portal users and the general trust in portals (0,81). Of all the dimensions
of trust, the most crucial are the integrity of its users (0,89) and their competence (0,76),
while benevolence is slightly less important (0,72).
The study also revealed that most respondents exhibited a fairly passive approach,
treating the portals they used merely as a source of information on trends in architecture,
interior design or building and house decoration companies.
Respondents treat Internet portals primarily as a source of information about companies
in the field of construction and interior design (mean 4,29), and trends in construction and
interior design (mean 4,05). Confidence in construction and interior design portals is also
expressed by trust in the skills and knowledge of other users of these sites. First of all,
the respondents were convinced about the suitability of reviews by active users of these
portals (mean 3,74). In addition, respondents had had relatively high trust in the information
the research portals provided about companies in the field of construction and interior design
(mean 3,73). However, the strongest belief in the competence of the website users expressed,
was the belief that they should actively shape the portal, sharing their knowledge (mean
4,15).
47
Although they considered the information contained on the portals to be reliable and
somewhat affirmed trust in them, it had absolutely no impact on their market behaviour.
The vast majority said they did not use the services of a repair crew or a construction
company under the influence of people recommending them via the portal (mean 1,68).
Similarly, few people took into account other members’ opinions regarding building
materials, or were going to make purchases influenced by those opinions (mean 2,91).
The following table shows the results of the Spearman rank correlation (R) used to verify
which statements evaluated were most closely associated with the overall mean in particular
areas (table 3). The higher the correlation coefficient the greater the impact of individual
answers on the overall index. It should be noted that almost all coefficients were statistically
significant. That means that almost all tested aspects affect the overall level of trust in
the area.
Table 3
Factors affecting trust in construction and interior design portals
Spearman
correlation
coefficient
1. I often use information concerning field of construction and interior design published in
the Internet.
0,54
2. Information given by other Internet users on construction teams and other construction and
interior design firms are a very important source of knowledge to me.
0,60
3. Construction and interior design portals users have a vast knowledge in the field.
0,43
4. Social networks members of construction and interior design portals give useful information
to other users.
0,46
5. I asked construction/renovation crew to work for me because they were recommended by
other portal/forum users.
0,54
6. Generally, most of construction and interior design site users do not post false opinions.
0,51
7. I generally trust skills and experience of other users of construction and interior design
portals concerning the field at hand.
0,61
Source: Author.
According to the results, it turned out that the biggest factors leading to on trust in
construction and interior design sites are:
− confidence in the ability of the users of construction and interior design portals on
the subject at hand,
− belief in the value of information provided by other Internet users about renovation
and construction crews and others in the industry of construction and interior design;
− being influenced by other online forum users’ opinion when choosing the services of
a construction company;
K. Krot
48
− tendency to be guided by information about the companies from the construction and
interior design field;
− belief that most users of construction and interior design portals give honest opinions.
7. Conclusion
Most of the studies conducted so far have concerned online shops in the context
of information systems,35 use of third-parties and privacy protection,36 the company’s
goodwill, the quality of websites and their influence on decisions whether to participate in
e-commerce or not.37 The present study aims to assess the level of trust among the users
of social networking portals who contribute to these portals with their recommendations,
reviews or opinions.
The study shows that in addition to cognitive and institutional factors, a strong
relationship exists between the total trust in construction and interior design portals and
the trust between its users. This trust was manifested most strongly as confidence in
the honesty of online community members, and in the skills and knowledge of people who
recommend products or share their opinions on the portals. Benevolence, i.e. acting in
the interest and to the benefit of others, proved to be slightly less important. Interestingly,
the two most important dimensions of trust, competence and honesty, are the lowest rated,
which means that the respondents have reservations about the reliability and expertise
of members of the Internet community.
At the same time, the study revealed that the participants were not particularly active
users of the portal; their activity was confined to following, or publishing the latest news on
trends in construction and interior design, on the website. Perhaps this low activity is due to
the limited confidence in the construction and interior design portals. Furthermore,
a substantial proportion of the respondents studied stated that they used the Internet primarily
for professional purposes. This indicates the specific character of Internet users aged 30 and
over. They learned to use the Internet as adults and so treat it as a tool rather than a source
of entertainment. Thus, their activity as members is rather limited to viewing the information
contained therein, which consequently means that they have little opportunity to build
stronger ties based on trust.
35
Lee M.K.O., Turban E.: A trust model for consumer internet shopping. “International Journal of Electronic
Commerce”, No. 1, Vol. 6, 2001, p. 75-91.
36
Pavlou P.A.: op.cit.
37
McKnight D.H., Choudhury V., Kacmar C.: op.cit.
49
Although the presented findings highlight the problem of trust in construction and interior
design sites, due to the small sample size, they should be regarded as preliminary to further
research into the problem.
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15. Gutierrez S.S.M., Cillan J.G., Izquierdo C.C.: The consumer’s relational commitment:
main dimensions and antecedents. “Journal of Retailing and Consumer Services”,
Vol. 11, 2004.
16. Hampden-Turner
Ch.,
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communities. “Journal of Strategic Information Systems”, Vol. 11, 2002.
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Dagmara LEWICKA
AGH University of Science and Technology
Faculty of Management
THE IMPACT OF VERTICAL TRUST ON THE PRO-INNOVATION
ATTITUDE OF EMPLOYEES
Summary. The aim of the study was to determine the impact of vertical trust on
the proinnovation attitude of employees. Huge interest in trust in interpersonal
relations and relations between organizations, even at the macro level, underlines
the significance of this phenomenon in the modern world. This article presents
the results based on a group of 262 respondents. It was assumed that a higher level
of trust in the relations with superiors stimulate pro-innovation attitudes in
knowledge-based enterprises. The results obtained confirm the argument set out.
Keywords: organisational trust, vertical trust, innovative culture, innovative
attitudes
WPŁYW ZAUFANIA WERTYKALNEGO NA PROINNOWACYJNE
POSTAWY PRACOWNIKÓW
Streszczenie. Celem artykułu jest zidentyfikowanie wpływu zaufania
wertykalnego na proinnowacyjne postawy pracowników. Duże zainteresowanie
zaufaniem zarówno w relacjach interpersonalnych, relacjach pomiędzy organizacjami,
jak i w skali makro podkreśla jego znaczenia we współczesnym świecie. Artykuł
prezentuje rezultaty badań na podstawie 262 respondentów. Założono, że im wyższy
poziom zaufania w relacjach przełożony – podwładny, tym bardziej stymulująco
działa na postawy proinnowacyjne podwładnych. Uzyskane rezultaty potwierdziły
założoną tezę.
Słowa kluczowe: zaufanie organizacyjne,
innowacyjna, postawy proinnowacyjne
zaufanie
wertykalne,
kultura
D. Lewicka
54
1. Introduction
Trust is the foundation of all business relationships. When there is a necessity to take an
action, despite uncertainty and risk, trust becomes the key strategy of handling the
uncertainty and impossibility of controlling the future. Trust means a belief in particular
actions or properties of a subject being trusted, “a bet on uncertain future actions of other
people”.1
The notion of trust is defined in the context of many disciplines, such as: economics,
organization and management theory, sociology, political sciences, and psychology. It is
a multidimensional construct which involves interpersonal trust,2 trust between organizations,
the so-called interorganizational trust3 political trust,4 social trust,5 and intra-organizational
trust between co-workers – the so-called horizontal trust,6 and trust between supervisors and
subordinates – the so-called vertical trust7 as well as trust in organizations.8
According to the definition of Zaheer et al.,9 trust is an expectation that a partner is
a reliable person who fulfills obligations in a predictable way and acts honestly in the face
of various situations. Similarly, Whitener et al.10 emphasize the aspects of expectation and
confidence that a partner will act in common interest; which is connected with a certain level
of dependence and risk concerning this behavior. As Tzafrir and Eitam-Meilik11 claim, trust
is willingness to invest one’s efforts in relations with others which results from positive
1
Sztompka P.: Zaufanie. Fundament społeczeństwa. Znak Publishing House, Krakow 2007, p. 69.
Gomez C., Rosen B.: The leader-member exchange as a link between managerial trust and employee
empowerment. „Group and Organization Management”, March, Vol. 26 (1), 2001, p. 53-69.
3
Joseph E.E., Winston B.E.: A correlation of servant leadership, leader trust, and organizational trust. „Leadership &
Organization Development Journal”, Vol. 26, Issue 1, 2005, p. 6-22.
4
Hetherington K.: Expressions of Identity: Space, Performance, Politics. Sage Publications by Kevin
Hetherington, 1998.
5
Oxendine A., Borgida E., Sullivan J.L., Jeckson M.S.: The importance of trust and Community in Developing and
Maintaining a community Electronic Network. „The International Journal of Human-Computer Studies”, Vol. 58,
2003, p. 671-696.
6
Holton J.A.: Building trust and collaboration in a virtual team. „Team Performance Management”, Vol. 7, Issue
3/4, 2001, p. 36-47. Dirks T.K., Ferrin D.L.: Trust in leadership: meta-analytic findings and implications for
research and practice. „Journal of Applied Psychology”, Vol. 87, 2002, p. 611-628.
7
Dirks T.K., Ferrin D.L.: Trust in leadership: meta-analytic findings and implications for research and practice.
„Journal of Applied Psychology”, Vol. 87, 2002, p. 611-628.
8
Shockley-Zalabak P., Ellis K., Winograd G.: Organizational trust: what it means, why it matters. “Organization
Development Journal”, No. 18 (4), 2000, p. 35-48.
9
Zaheer A., McEvily B., Perrone V.: Does trust matter? Exploring the effects of interorganizational and
interpersonal trust on performance. „Organization Science”, No. 9 (2), 1998, p. 141-159.
10
Whitener E.M., Brodt S.E., Korsgaard M.A., Werner J.M.: Managers as initiators of trust: an exchange
relationship framework for understanding managerial trustworthy behavior. „Academy of Management Review”,
Vol. 23 (3), 1998, p. 513-530.
11
Tzafrir S.S., Eitam-Meilik M.: The impact of downsizing on trust and employee practices in high tech firms:
A longitudinal analysis. „Journal of High Technology Management Research”, Vol. 16, 2005, p. 193-207.
2
The impact of vertical trust…
55
expectations being a consequence of previous mutual interactions. Meyer at al.12 highlight
the aspect of voluntary dependence which underlies trust. The same is claimed by
Grudzewski et al.13 who show that trust is a conviction on the basis of which unit A agrees to
be dependent on unit B (person, object, organization) in a given situation and has a sense
of relative security, even though negative consequences are possible. In literature, trust is
encapsulated as: a set of specific expectations towards a partner, agreement to be in a relation
of interdependence or dependence, a bridge between past and future experiences, a dynamic
and temporary value which is developing or may be lost. Trust is closely connected with
a wider context of social capital. Putnam14 emphasizes that trust is its basic
component and defines social capital as “such features of society as trust, norms and links
which may increase efficiency of a society by means of facilitating coordinated activities”.
The significance of trust for success of organizations is essential, both from the internal and
external perspectives of the organizations. At present “organizations are not built on power,
but on trust”.15 The company's standing mainly consists of immaterial elements based on trust
(reputation, goodwill), the so-called credibility or trust capital.16 The growth in
the significance of trust in business relations is connected with a wider access to information
concerning products and services, a bigger possibility of choice, and faster and cheaper
communication with rival companies. Due to its properties, trust may create a constant
competitive advantage in organizations based on knowledge. The atmosphere of trust is
an additional value and a key factor in information flow and knowledge management,17
allows for controlling hidden knowledge which cannot be controlled by formal mechanisms
because of its uniqueness and small codification. It also stimulates the processes
of knowledge-sharing18 as well as processes of learning through triggering social relations
that are informal communication channels. Research has confirmed19 a statistically
significant correlation between trust and organizational innovation. Moreover, the research
shows that managers who show big trust in their employees, at the same time invest in them
12
Mayer R.C., Davis J.H., Schoorman D.: An integrative model of organizational trust. „Academy of Management
Review”, Vol. 20, 1995, p.709-734.
13
Grudzewski W.M., Hejduk I.K., Sankowska A., Wańtuchowicz M.: Zarządzanie zaufaniem w przedsiębiorstwie.
Oficyna Publishing House, Krakow 2009.
14
Putnam R., Bowling A.: The Collapse and Revival of American Community. Simon & Schuster, New York 2000,
p. 258.
15
Drucker P.F.: Managin Oneself. „Harvard Business Review”, No. 3, 1999, p. 65.
16
McElroy M.W.: Social Innovation Capital. „Journal of Intellectual Capital”, Vol. 3 (1), 2002, p. 30-39.
17
Wang R., Rubenstein-Montano B.: The Value of Trust in Knowledge Sharing in Knowledge Management:
Current Issues and Challenges. Coakes E. (ed.), IGI Publishing, Hershey 2003, p. 116-130.
18
Loon Hoe S.: Is interpersonal trust a necessary condition for organisational learning? „Journal of Organisational
Transformation and Social Change”, Vol. 4 (2), 2007, p. 149-156.
19
Herting S.R.: A curvilinear model of trust and innovation with implications for China’s transition. „Chinese Public
Administration Review”, No 1 (2/4), 2002, p. 291-306.
D. Lewicka
56
more willingly, encourage them to develop and promote them as well as involve employees
more often into the process of management.20
Trust-based cooperation makes it possible to trigger creativity, generate innovative
solutions but also successfully implement innovations.21 Moreover, trust reduces
transactional costs as long-term business partners do not need to control each other or sign
detailed contracts any more. It has a particular impact on reducing the ex-post transactional
costs, that is, the costs of monitoring and enforcement. Trust of clients, employees or
suppliers lowers the costs of winning them over.
2. The purpose and method of the research
The main objective of the research was to find out whether and how trust on the part
of supervisors influences the proinnovative attitudes of employees. The objective required
empirical examination in the form of a survey among workers employed in knowledge-based
enterprises. The respondents were asked to answer five groups of questions including
demographic ones. Three of them referred to the level of trust in: the whole organisation,
supervisors and co-workers. Each kind of trust was examined using a scale prepared on
the basis of a Trust Assessment Scale verified by Wichita State University and Tzafrir and
Dolan’s trust scale.22 Each scale has been adjusted to Polish conditions and included
the following dimensions: ability, benevolence, and integrity. It could also be reasonably
suggested that studies applying the same theoretical approach should share at least common
conceptualisation and components of trust, although measurement may differ according to
the context (i.e., industry, vertical or horizontal relationship type). All items are fashioned in
a five-point Likert format, with a combination of positively and negatively worded questions.
259 people participated in the research, 63% of which were women and 37% men.
The most numerous group – 41% – comprised people aged between 25-35, 31% were people
aged 36-45, and 18% were respondents over 45 years. As regards education, most informants
(55%) completed higher education, 39% – secondary education and only 5% – lower than
secondary. Most respondents worked in the Lower Silesia Province (Dolnoslaskie
Voivodship) (49%) whereas 32% – in the Lesser Poland Province (Malopolskie Voivodship).
61% of respondents lived in municipalities with a population of up to 50 thousand residents,
20
Tzafrir S.S., Eitam-Meilik M.: op.cit.
Paliszkiewicz, J.: Orientacja na zaufanie w przedsiębiorstwach”. www.ptzp.org.pl/files/ konferencje/kzz/artyk_
pdf_2011/082.pdf, 2001.
22
Tzafrir S.S., Gur A.B.A.: HRM Practices and Perceived Service Quality: The Role of Trust as a Mediator.
“Research and Practice in Human Resource Management”, Vol. 15 (2), 2007, p. 1-20.
21
57
cities with a population between 50 and 500 thousand were inhabited by 25% of respondents,
and the remaining ones lived in big cities with 500 thousand residents or more. The majority
of those surveyed had employment contracts for an indefinite period of time, while 355 for
a definite time. Others had contracts of a different type, e.g. temporary work, part-time work
or probationary employment contracts. A large majority of those questioned were employed
in the services and industrial sectors, 54% and 45%, respectively. Most of the participating
employees had seniority below 3 years (42%), seniority of 9-13 years was declared by 18%
of respondents, whereas the remaining ones had seniority above 14 years. In the vast majority
of cases, the companies in which the respondents are employed are in the private sector
(87%), other are public sector or self-government administration companies. As much as
50% of the enterprises which took part in the research have been present on the market for
over
15 years. 19% of the enterprises examined are small entities, 20% – entities which employ
50-200 people, 28% – entities with 201-500 workers, and 33% – companies with more than
500 employees. The business entities which participated in the research were selected in such
a way as to show sector diversity and diversity by size and length of operation on the market.
The following statistical methods were applied in the research: Chi-Square Test
of Independence, Mann-Whitney’s U test, Kruskal-Wallis’s multiple (both-sided) comparison
test.
3. Empirical research results
The level of trust in individual dimensions was researched in two ways. At first,
the respondents participated in a scale-based test. The scale measured general trust in three
dimensions and comprised of 14 to 24 statements. Next the respondents again determined
their own general attitude within the area of a given dimension of trust, this time by means
of only one question. It turns out that the respondents rated highest the trust in the supervisorsubordinate relation, vertical trust (mean: 3,78) as well as in relations between workers,
horizontal trust (mean: 3,76). Institutional trust was graded lowest (mean: 3,46).
D. Lewicka
58
3.1. Vertical trust
The tables below present Spearman’s rank correlation analysis results (R)23 that verify
which of the assessed statements are most connected with the total mean in individual areas.
The higher the correlation coefficient is, the greater impact an individual question has on
the general coefficient. It needs to be noted though that almost all coefficients were very high
and statistically important. It means that almost all studied aspects have an influence on
the general level of trust in the given area.
Table 1
Table of statements which determine trust in supervisor-subordinate relation
Statements concerning vertical trust
R
t(N-2)
1. In my organization, there is an atmosphere of true mutual trust between employees
and managers.
2. My boss is a competent and skilled team manager.
0,72
16,4
0,74
17,7
3. I think that my supervisor takes good decisions.
0,79
20,7
4. If I had a problem with anything concerning my work, I could safely talk to my
supervisors about my fears.
5. My supervisor is a moral authority for me.
0,73
17,1
0,75
18,3
6. I think that my boss is fair about employees.
0,80
21,3
7. My boss has well-developed interpersonal skills.
0,77
19,1
8. My boss openly talks with me about matters which are important for me.
0,70
15,8
9. My boss in interested in my needs and problems, if they arise.
0,77
19,0
10. Generally speaking, my boss keeps his/her word.
0,71
16,0
11. Everyday business meetings with my boss are a pleasant experience.
0,79
19,3
Trust of employees in their managers is influenced by such factors as the sense of fair
rewarding, belief about manager’s competences and manager’s interest in employee’s
problems. The results show that apart from the above-mentioned interpersonal and relational
trust, there are also other types of trust that matter in the supervisor-subordinate relation;
these are:
23
Spearman’s rank correlation – a rank correlation which takes values from an interval [-1, 1]. The higher
value of the correlation, the greater dependence there is between variables. If the value is close to 0, then
there is no dependence between the variables. In some cases, the correlation coefficient is interpreted; so if
the correlation coefficient is:
− smaller than 0,2, there is practically no relationship between variables,
− 0,2 – 0,4 – explicit dependence, but low,
− 0,4 – 0,7 – moderate dependence,
− 0,7 – 0,9 – significant dependence,
− above 0,9 – very high dependence.
59
− trust based on norms, values24 and a conviction that a confidant who has greater
power observes social obligations,
− competence trust related to a tendency to keep one’s word,25
− trust based on knowledge which develops thanks to previous interactions and
guarantees communication combined with an exchange of needs, preferences and
opinions,26
− trust based on passion27 conditioned by reciprocated emotional bonds.
The questions referring to vertical trust were grouped together and the areas which
provided for concise information were selected. These were:
− generalized trust in management – a conviction that supervisors can be trusted as they
act in good interests of employees,
− fulfilling the obligation of managers to provide information to employees,
− professional competence,
− interpersonal competence,
− mutual relations (whether a supervisor is liked),
− loyalty towards a supervisor.
It turns out that within the scope of the area concerned, the respondents assessed their
loyalty towards supervisors highest (mean: 4,29). It seems though that the high result may be
partially dependent on their desire (quite often a subconscious one) of having a positive and
high level of self-assessment. The area of professional competence of supervisors (3,88) was
assessed considerably lower; while the following areas obtained the highest ratings:
generalized trust in management (3,79), interpersonal competence (3,73), fulfilling
the information obligation towards employees (3,68), and mutual relations (3,67).
The analysis of statistical dependences within the area of factors concerned shows that,
statistically, men more often declare higher generalized trust in management (p = 0,0042) and
they like their supervisors more (p = 0,0042). Statistically, the information obligations are
significantly lower assessed by staff employed under employment contracts (both for
a definite and indefinite period) than staff employed under other types of contracts (which do
not bind employees with a company so much). It seems to be an effect of higher expectations
24
Lane C., Bachmann R.: Trust Within and Between Organizations: Conceptual Issues and and Empirical
Applications, [in:] Lane C. (ed.): Theories and Issues in the Study of Trust. Oxford University Press, Oxford 2000,
p. 1-30.
25
Sako M. Does trust Improve Business Performance?, [in:] Kramer R.M. (ed.): Organizational Trust. Oxford
University Press, Oxford 2006, p.267-292.
26
Lewicki R.J., Bunker B.B.: Developing and maintaining trust in work relationships, [in:] Kramer R.M., Tyler
T.R. (ed.): Trust in organizations: Frontiers of theory and research. Sage Publications, Thousand Oaks, CA,
1996, p.114-139.
27
McAllister D.J.: Affect- and cognition-based trust as foundations for interpersonal cooperation in organizations.
„Academy of Management Journal”, No. 38 (1), 1995, p. 24-59.
D. Lewicka
60
of employees strongly bound with a company who are probably more engaged in comparison
to those whose contracts do not bind them with the company to such an extent (p = 0,0464).
The generalized trust in management is rated higher by employees from the agricultural as
well as service and commercial sectors, and it is lower by staff from the industrial sector
(0,0013). The supervisor’s competence is assessed highest in the service and commercial
sector, slightly lower – in the industrial sector, and lowest – in the agricultural sector
(p = 0,0020). Interpersonal competence is rated highest by employees from the agricultural
sector, and lowest – from the industrial sector (p = 0,0397). Similarly, workers from
the service and commercial as well as agricultural sectors more often declare that they like
their supervisors than employees from the industrial sector. The length of operation of
a company has an impact on all the aspects of trust in supervisors. It transpires that it is
highest in companies with up to 5-year experience in operation and then it decreases but
reveals an upward tendency in the case of companies which are on the market for more than
15 years. Could it result from a crisis of trust between the 5th and 15th year of operation
of a company? Unfortunately, the results do not provide the answer. Still, it needs further
research. It also appears that the smaller a company is, the greater trust is placed in it.
Trust decreases along with the increasing size of a company. This regularity concerns
the generalized trust in management (p = 0,0000), interpersonal trust (p = 0,0000) and
the declaration of sympathy towards supervisors (p = 0,0014).
3.2. Innovative climate
Innovation of enterprises is connected with a specific corporate culture. It is assigned
a series of formal and structural features such as: hierarchy, degree of formality, procedures,
specific behaviour of organisation members, which reflect their convictions, values, attitudes,
and impressions concerning corporate reality. The elements of an innovative corporate
culture mainly involve: transparent communication concerning the value of innovation,
rewarding and supporting innovation, free access to knowledge and sharing knowledge, free
information circulation, team work, freedom of action and trust in employees, all which
trigger involvement and participation, as well as organisational support for innovative
activities.
It was assumed that an innovative climate is a prerequisite for shaping proinnovative
attitudes. An innovative climate is a sort of external layer of the corporate culture which is
clearly perceived by employees as it influences their behaviour and decisions. The climate
61
of trust is considered by some authors as one of the dimensions of organizational climate28
that clearly affects the behavior of members of the organization.
This research presents a relatively low grading or scores given to the innovative climate –
mean: 3,47. The next step involved answering the question of which statements influenced
the result most profoundly, that is, which of them showed whether the innovative climate was
present in a company or not. Table 2 below presents the results obtained.
Table 2
Factors which strongly influence a conviction that the innovative climate is present
in a company
Statements concerning the innovative culture
R
t(N-2)
My company has consistent developmental goals of innovative enterprises which are
known to employees.
Innovations are a key value in my company.
0,72
15,6
0,70
14,7
In my company, the resources are transferred to innovative activities as required.
0,74
16,5
My company transforms ideas into profitable enterprises.
0,72
15,7
My company provides free access to information and knowledge.
0,73
16,2
The working environment is optimal for cooperation also between departments.
0,78
19,1
In my company, all employees can propose their ideas.
0,73
16,3
I am encouraged to take challenges if they may be profitable, in my opinion.
0,73
16,2
People employed in my company are believed to act in the interests of the company and
are under the minimum control of supervisors.
My company appreciates new ideas.
0,69
14,6
0,74
16,7
My company expects creativity in thinking and acting in an inventive and original way.
0,70
14,9
Our managers help us to overcome obstacles encountered when implementing
innovations.
In my company, a manager is a mentor.
0,72
15,6
0,71
15,4
Managers from my company have features of a leader supporting innovation.
0,73
16,0
If employees want to look for innovative solutions, managers support them in doing so.
0,72
15,5
My company has consistent developmental goals of innovative enterprises which are
known to employees.
0,72
15,6
It appears that the strongest influence on a conviction that there is an innovative climate
in the company is connected with a conviction that there are good conditions for cooperation
between departments and the organisation of work is flexible enough to support innovation
by proper work organisation. Also, the impact of motivation is important, which leads to:
accepting new ideas, encouraging taking new challenges, providing conditions for suggesting
ideas, access to knowledge and support from supervisors. The significant influence
of supervisors’ trust in subordinates is worth attention since it is a precondition for challenge-
28
Spitzer D.R.: Transforming Performance Measurement: Rethinking the way we measure and drive organizational
success. AMACOM, New York 2007.
D. Lewicka
62
taking as well as taking moderate risk in the fundamental interest of the company. It can be
said then that the description agrees with the description of an innovative enterprise found in
literature.
The next analysis grouped statements concerning particular aspects of the innovative
climate as shown before. The factors that influence it are as follows:
− access to knowledge (mean: 3,34),
− proinnovative work organisation (mean 3,44),
− consent to risk-taking (mean: 3,14),
− emphasis on client orientation (mean: 3,34),
− emphasis on long-term (strategic) thinking (mean: 2,98),
− team work (mean: 3,54),
− motivation for innovation (mean: 3,53),
− supporting innovation by managers (mean 3,37),
− innovative climate (mean: 3,14).
In the next step, it was verified whether there were statistically important dependences
between particular areas and demographics. It turns out that women tend to grade
the following areas lower than men: client orientation, motivation for innovation and
the innovative climate (p = 0,0464). It may mean that women need (especially in these
aspects) more explicit incentives and signals than men. It also appears that the youngest
employees, up to 25 years old, as well as those between 25 and 35 years of age value access
to knowledge higher than older staff members (p = 0,0238). The higher the education
the informants had, the higher the analysed factors were rated; they involved: access to
knowledge (p = 0,0158), proinnovative work organisation (p = 0,0158), and client orientation
(0,0331).
Employees working in the service and commercial as well as industrial sectors are more
likely to accept risk in comparison to employees from the agricultural sector, and they also
more highly regard team work and managers' actions aimed at supporting innovation.
Whereas client orientation is rated higher in the agricultural as well as service and
commercial sectors than in the industrial one.
Interestingly, the longer time of operation on the market, the lower the following aspects
under research are evaluated: access to knowledge, proinnovative work organisation, client
orientation, team work, motivation for innovation, and manager’s actions supporting
innovation. Business entities which have been on the market for less than 5 years are rated
highest. Moreover, workers in companies which employ up to 200 people evaluate
the innovative climate higher than workers from enterprises with over 200 employees.
The smaller a company is, the higher the following actions are valued: motivating for
63
innovation, client orientation and access to knowledge. Also, employees of companies with
up to 49 people are more inclined to admit that their supervisors support innovation.
The bigger a company is, the weaker a conviction of the informants that work organisation in
a given business entity supports innovation.
3.3. Relations between vertical trust and the innovative culture
The aim of the next step of the research was to determine relations between the aspects
of vertical trust and the aspects of the innovative climate. The results obtained are presented
below.
Table 3
Spearman’s rank correlation: areas of vertical trust vs. innovation areas
Trust in management & Motivation for innovation
Trust in management & Manager who supports innovation
Information & Access to knowledge
Information & Motivation for innovation
Supervisor’s competence & Team work
Supervisor’s competence & Motivation for innovation
Interpersonal competence & Proinnovative work organisation
Interpersonal competence & Team work
Interpersonal competence & Motivation for innovation
Interpersonal competence & Manager who supports innovation
Liking & Motivation for innovation
Liking & Manager who supports innovation
R Spearman
0,69
0,62
0,60
0,59
0,51
0,55
0,63
0,61
0,74
0,60
0,62
0,57
t(N-2)
0,0000
0,0000
0,0000
0,0000
0,0000
0,0000
0,0000
0,0000
0,0000
0,0000
0,0000
0,0000
The results of the analysis prove that significant relations exist but they are of various
intensity when it comes to vertical trust and the innovative climate. As shown on the table 3,
it appears that trust in management greatly influences such aspects as the two following:
motivation for innovation and a conviction that a supervisor supports innovative activities.
Similarly, access to information is related to access to knowledge as well as influences
the level of motivation to take up innovative challenges.
Managerial or supervisors’ competence, such as, effective team management and taking
right decisions have an influence on the assessment of team work conditions in the process
of developing innovative solutions and motivation for innovation.
The interpersonal competence of a supervisor influences as many as four areas:
motivation for innovation (showing a significant dependence of R = 0,73), team work,
proinnovative work organisation, and a conviction that a supervisor supports innovation.
Positive relations with a supervisor (liking supervisors) are related to the level
of motivation for innovation and a conviction that a supervisor supports innovation.
D. Lewicka
64
Therefore, it is not surprising that most factors do not support a conviction (or the
dependence is very weak) that people in an enterprise think and act in strategic terms. While
it may be surprising that these factors only slightly (explicit but low dependence) influence
a tendency to take risk; interpersonal competence of a supervisor has the strongest influence
(R = 0,40). Thus it might be concluded that keeping promises, fair assessment, showing
interest in needs and problems, as well as speaking openly about problems are factors which
build up the basis for risk taking.
All the aspects of vertical trust have an impact on the level of motivation for innovation
that employees observe. Is this (vertical trust) the aspect which has a most profound influence
on creating an innovative climate? It seems that receiving support of various types from
a supervisor is the second most important factor in the process of creating innovation.
Furthermore, in order to confirm the dependences, another analysis was conducted using
the Anova Kruskal-Wallis test. An answer to a question concerning the level of trust in
a supervisor was compared with specific aspects of the innovative climate. In all cases there
is a statistically significant dependence p < α (p = 0,00000). The higher the relations with
supervisors are rated, the higher specific parameters of the innovative climate are evaluated.
The research allows to formulate a statement that the innovative climate (culture) which
supports proinnovative attitudes is mostly influenced by trust in supervisors (Sperman rank
correlation R = 0,74). The higher level of vertical trust causes higher grading of innovative
culture (figure 1)
5,0
4,5
Level of innovative culture
4,0
3,5
3,0
2,5
2,0
1,5
1,0
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
Level of vertical trust
Level of innovative culture
Me
Outliers
Fig. 1. Relations between vertical trust and an innovative culture
Rys. 1. Związki pomiędzy zaufaniem wertykalnym a innowacyjną kulturą
5,0
5,5
65
This has been also supported by research of other authors.29 Employee-manager relations
are the main area of change in enterprises that are going to improve their competitiveness by
the increase in innovativeness.
4. Conclusions
The article attempts to analyse the sources of competitiveness of the enterprises based on
knowledge. Strong and medium-sized level of trust can be a source of competitive
advantage.30 Trust seems to be a critical success factor on most accounts inside and outside
the organization. As indicated by Aburdene,31 trust and honesty, translate directly into
revenue, profit and prosperity.
The results obtained confirm that a relation between vertical trust and the innovative
culture (climate) does exist in an enterprise. The research results suggest that supervisor’s
actions play a significant role in motivating others to take innovative actions and support
them. Managers are seen as creators of changes in companies and the most important role
models. Their main task is to build up a creative climate within an organisation. In the case
of supporting innovation by supervisors it is not only a management style that is essential but
also their personal features such as, creativity, tolerating uncertainty and cognitive passion.
One of the features of effective managers is the so-called “openness to innovation”.
Moreover, the results show that vertical trust is connected with a conviction that
a supervisor is fair and honest towards subordinates, makes right decisions, is a likeable
person and has well developed interpersonal skills. Vertical trust is highest in companies
which are relatively new on the market – up to 5 years – and in small companies. The level
of trust decays with the company’s size. What is more, it can also be stated that men are more
likely to trust their supervisors in some aspects than women. Additionally, employees from
the industrial sector rate different aspects of trust in supervisors lower than those employees
working in other sectors.
The most essential factors which influence a conviction that there is an innovative culture
(climate) in a company is a conviction that there are good conditions for cooperation between
departments, and that the organisation of work is flexible enough to support innovation
by proper work organisation. Many authors emphasise the significance of cooperation in
29
Zhang A.Y., Tsui A.S., Song L.J., Li Ch., Jia L.: How do I trust thee? The employee-organization relationship,
supervisory support, and middle manager trust in the organization. „Human Resource Management”, No. 47 (1),
2008, p. 111-132; Tzafrir S.S., Eitam-Meilik M.: op.cit.
30
Ciancutti A., Steding T.: Built on trust: Gaining competitive advantage in any organization. Contemporary Books,
Chicago 2001.
31
Aburdene P.: Megatrends 2010: The Rise of Conscious Capitalism Charlottesville: Hampton Roads.
D. Lewicka
66
the sense of sharing information and providing support when fulfilling tasks.32 Competition
and conflict are also mentioned as factors which trigger innovation.33 However, it is hard to
imagine an innovative company where every department strives to pursue their own narrow
interests. Cooperation and trust are conditions for free knowledge sharing, which is known to
influence innovations since they are created as a result of solving real problems of various
types. The innovative adhocratic (the opposite of a bureaucratic) culture identified and
described by Quinn and Cameron, is characterized by a fast adjustment to changing
conditions and flexibility, emphasis on non-stereotypical solutions, and it assumes flexible
work organisation and putting all efforts to innovative activities. There is also a tendency for
workers to perceive a stronger climate for developing innovation if the company is smaller or
has been operating on the market for a shorter period, compared to that of larger business
entities with longer experience.
The results achieved are not strictly representative of the area under research in statistical
terms, but they allow for a general diagnosis and to find out what tendencies there are in
the area researched. The conclusions drawn from the collected statistical materials may
constitute a basis for more comprehensive research. A possible direction of such research is
to determine the correlation between vertical trust, involvement and innovation achievements
of employees, as well as the relation between style of leadership and vertical trust. The
results may also provide guidelines on how to build trust in business, and directions for
managerial skills development.
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Eulalia SKAWIŃSKA
Poznań University of Technology
Faculty of Engineering Management
Department of Economic Science
Romuald I. ZALEWSKI
Poznań University of Economics
Faculty of Commodity Science
Department of Natural Methods in Quality Management
STATUS AND PROSPECTS FOR DEVELOPMENT
OF INFRASTRUCTURE FOR TECHNOLOGY TRANSFER
IN THE PROVINCE OF GREATER POLAND
Summary. This paper deals with the assessment of performance of
the infrastructure of Technology Transfer Units (TTUs) through the implementation
of the statutory goals. It also takes a look at the impact on the development of
innovativeness of companies located in scientific and technological parks and
the anticipated development barriers and challenges faced by these units. The aim of
this study is to examine the role of entities of technology transfer infrastructure in
developing innovativeness. The study was performed among units belonging to TTUs
in Greater Poland:
1. Based on the data analysis the following conclusions have been formulated.
2. There is a strong relationship between the importance of the goals defined in
the statutes of TTUs and the degree (importance) of their execution.
In the realization of TTUs’ objectives, most important are the goals that constitute
the first stage of creating the potential for innovation. These goals pertain to raising
the quality of human capital, development of cooperation, entrepreneurship and
creating an environment for conducting business activities. The actual transfer of
innovation move to lower ranks of priority, as shown by the obtained replies.
On the basis of the studies it can be generally concluded that the state of
development of infrastructure of technology transfer in Poland today and in the future
(which is in a certain way a manifestation of enterprises’ innovative capacity, and is
also a testing measure indicating the level of cooperation between firms in different
sectors within the sphere of science and R&D) is weak and remains endangered.
Keywords: Technology transfer institutions, innovation gap, statutory objectives,
barriers, challenges
E. Skawińska, R.I. Zalewski
70
STAN I PERSPEKTYWY ROZWOJU JEDNOSTEK INFRASTRUKTURY
TRANSFERU TECHNOLOGII W WIELKOPOLSCE
Streszczenie. W pracy podjęto problem oceny funkcjonowania jednostek
infrastruktury transferu technologii poprzez realizację celów statutowych, wpływu na
rozwój innowacyjności firm ulokowanych w parkach oraz przewidywania barier
rozwojowych i wyzwań stojących przed tymi jednostkami. Celem pracy jest zbadanie
roli podmiotów infrastruktury transferu technologii w rozwoju innowacyjności.
Badania wykonano wśród jednostek należących do JTT w Wielkopolsce.
Na podstawie analizy danych sformułowano następujące wnioski:
1. Istnieje duży związek między wagą celów określanych w statutach JTT
i stopniem (wagą) ich wykonania.
2. Większe jednak znaczenie w realizacji mają cele stanowiące pierwszy etap
tworzenia potencjału innowacyjności. Są one związane z podnoszeniem
jakości kapitału ludzkiego, rozwoju współpracy, przedsiębiorczości
i stwarzaniem warunków prowadzenia działalności gospodarczej. Transfer
innowacyjności schodzi, w świetle wypowiedzi respondentów, na drugi plan.
Na podstawie referowanych badań można w sposób uogólniony sformułować
wniosek, że stan rozwoju jednostek infrastruktury technologii w Polsce, obecnie
i w przyszłości, będący pewną formą przejawiania się zdolności innowacyjnej
przedsiębiorstw i miarą testującą, sygnalizującą poziom współpracy między firmami
różnych sektorów ze sferą nauki i B&R jest niewielki i zagrożony.
Słowa kluczowe: instytucje transferu technologii, luka innowacyjności, cele
statutowe, bariery, wyzwania
1. Introduction
The infrastructure of technology transfer includes the social infrastructre of knowledge
co-creation and the technical infrastructure which increases access to information and its
transparency. Generally it can be concluded that the infrastructure’s formation involves the
development of a knowledge environment,1 which is impossible without the co-operation of
entities within this environment.
The notion of non-cooperation of enterprises, scientific institutions and research and
development in Poland does not require justification, because it is sufficiently documented in
literature.2. This fact explains to some extent the existing gap between Polish innovativeness
compared to many EU member states. Therefore, attempts are being made to revive and
intensify this cooperation by means of formal institutions such as internships for scientists,
1
2
Prahalad C.K., Ramaswamy V.: Przyszłość konkurencji. PWE, Warszawa 2005, ch. 10, 11.
Skawińska E., Cyrson E., Zalewski R.: Konkurencyjność przedsiębiorstw. Wydawnictwo Politechniki
Poznańskiej, Poznań 2011.
Status and prospects for development …
71
creation of scientific-industrial consortia, joint implementation of projects, etc. The activity
of technology transfer infrastructure units (TTUs) remains a little-known area which
constitutes an important opportunity in this respect. These include centers of excellence,
business incubators, science parks, technology parks, etc. There has been an attempt to raise
awareness of the following: problems related to the TTUs’ performance through the
implementation
of
a structure of statutory objectives; the impact on the development of innovative companies
located in the parks; and development barriers and challenges faced by these units.3 It has
been assumed that the state of functioning and development of TTUs in Poland constitutes
a pointer ahead, piloting innovative changes in the economy.4
The aim of this study is to examine the role of actors in technology transfer in
infrastructure development and innovation using the interview method. The study was
performed among units belonging to TTUs in Greater Poland. The analysis of the results of
this research is essential to improving the management of innovation of the Polish economy.
2. Characteristics of the studied population
In 2011 an interview was conducted directly among the representatives of the units
belonging to the infrastructure for technology transfer (TTU) in Greater Poland. From 59
active units only 15 agreed to participate in the interview. The sample included: a sciencetechnology park (1), a center of excellence (1), incubators (3), technology incubators (2) and
other entities (8), including foundations (NOT associations), clubs of rationalization
techniques, regional development agencies and chambers of industry and commerce.
The interviews were conducted using a prepared questionnaire. The first group of questions
deals with the statutory and achieved goals and was followed by a self-evaluation. The next
set of questions was related to barriers which may appear in future. The last set of question
deals with expected challenges in the future. The results of the study, which was conducted in
June 2011, are presented below.
Among the studied TTU populations only five revealed the number of companies within
their unit. Two of them only reported the total number of firms, being 12 and 50. The other
three units were composed of: 4, 3 and 3 high-tech companies; 16, 1 and 7 medium
technology companies (differing greatly in number); and 20, 18 and 10 overall in operation.
The questionnaire consisted of three main parts in addition to specifications, i.e.
3
4
Kowalak B.: Benchmarking of technological parks in Poland. Report for 2010.
Ośrodki innowacji w Polsce. Katalog instytucji wsparcia innowacyjnego biznesu. PARP, Warszawa 2011;
Matusiak K.B., Guliński J. (red.): Rekomendacje zmian w polskim systemie transferu technologii
i komercjalizacji wiedzy. PARP, Warszawa 2011.
72
Part 1: characteristics of the statutory objectives and the structure of their implementation;
Part 2: the evaluation of results, namely the effects of actions; and Part 3: the ex ante
evaluation of barriers to development and the most pressing development challenges.
The number of years of operation of the entities (units) vary significantly. In general,
these are organizations which have been in existence from a few to several years, which can
represent the extent of the units’ structural and economic stability. This is indicated by the
structure of their funding in 2011. 56% of funding were from their own sources, yet three
entities were fully funded from their own sources (100% self-funded). The EU funds
constitute the second place (26%), while the third is occupied by university funds (6,675%).
State budget funding accounted for only 4,27% and the representatives of TTUs also pointed
to other sources of funding for these units at 7%.
On this basis it is possible to draw conclusions about the high activity and effectiveness
of external funding in the financing of the objectives pursued by TTUs since EU funds were
present in 10 of the surveyed enterprises as a source of financing.
3. Statutory objectives and their implementation in TTUs
It is important to analyze the structure of these objectives and the degree of their
implementation. Table 1 presents the main statutory objectives (S) and realized activities (R)
of the surveyed units' responses indicating their rank. Respondents had a possibility to
specify multiple objectives among the 22 listed in the questionnaire. For that reason some
objectives get identical ranks.
Table 1
Ranking of statutory goals (S) and realized (R) activities of TTUs
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Objectives of activity
technology transfer and commercialization,
providing favorable conditions for the development of innovative companies
creating business opportunities
provision of technical infrastructure
provision of office infrastructure
creation of new jobs
development and commercialization of new products
focus on the common area of production (creating clusters)
assistance in the protection of intellectual, industrial, patent property
advice on business development
technical and scientific advice
assistance in access to specialized laboratories
technological audit
assistance in the research of market trends
facilitating access to patent databases
S
8
4
3
9
8
6
11
12
9
2
10
11
8
11
9
R
8
5
4
10
8
7
13
10
9
1
11
12
7
11
9
73
con. tab. 1
16
17
18
19
20
21
22
23
training, conferences
search for any income-generating activity
taking part in competitions for grants
deepening of the cooperation: business-science and R & D - environment
stimulation of economic development in the region
facilitating contacts with financial institutions
strengthening of a company’s image
other
1
10
5
5
4
7
11
13
2
10
3
5
6
8
7
13
Source: results of direct interviews conducted in 2011.
From the data contained therein it is possible to conclude that training and conferences
(93,3%) occupy the first place among these goals. Advisory services in business development
ranked second (86,7%), and the third place was reserved for creating business opportunities
(73,3%). The fourth position in this ranking was taken by two goals – 66% each:
− providing favorable conditions for the development of innovative companies and
− stimulation of economic development in the region.
The fifth place on the list deals with such goals as cooperation within the business
environment and entrepreneurship. 9 units declared this point of equal importance. This point
refers to competing for EU grants tied with deepening the cooperation of businesses with
R & D and scientific institutions.
It is important to note that TTUs in Poland operate according to the paradigm of
sustainable development similar to manufacturing companies, service, etc. Therefore,
not only economic but also social and environmental goals are important5. Therefore, job
creation is on the sixth place among the other statutory goals of the surveyed units, which is
complementary to the next goal: to facilitate business contacts with financial institutions.
All of the statutory objectives get generally divided into hard ones (technicaladministrative) and soft ones (analytical advice, assistance and facilities). It should be noted
that the latter (soft) objectives dominate in terms of quantity and are associated with the
transfer of technology. One can, for example, mention the transfer and commercialization of
technology, the help in protecting intellectual, industrial and patent property, assistance in
access to specialized laboratories and facilitating access to patent databases. However, they
are positioned farther in the ranking structure of the goals (8th, 9th, 11th place respectively).
In addition, only two companies indicated the goal of creating a technological cluster and
3 companies pointed to the development and commercialization of new products and
assistance in market research. These are the objectives related to small and medium sized
companies, among many others mentioned above, but directly related to increasing their
competitiveness through an active marketing approach and by reducing costs.
5
The Constitution of the Republic of Poland. 1997, pos. 1/art. 5.
74
Let us look, therefore, at the achievement of these goals. Which of them plays a major
role in the functioning of TTUs? The first place in the ranking is occupied by consulting in
the development of entrepreneurship. At this point it is necessary to recall the opinion of
J.A. Schumpeter6 who believed that the concept of entrepreneurship is broader than that of
innovation. In this respect it is necessary to positively assess the fact that this goal is being
achieved in connection with the need to increase creativity and skills to implement
innovations, including any activities that increase the competitiveness of companies.
Training and conferences ranked second, while taking part in competitions for grants
ranked third, and in the fourth place was the creation of business opportunities. The fifth
position was occupied by the goal of deepening the cooperation of enterprises with science
and R & D institutions and to provide favorable conditions for the development of innovative
companies. Hence, some “soft” goals have gained priority in the implementation over “hard”
goals occupying the 8th and 10th place in the subjective assessment of respondents.
The goals directly related to innovation, among those 22 analyzed, occupy farther ranking
positions in this assessment (e.g. question 1 – pos. 8, question 9 pos. 9, question 12 pos. 12,
question 15 pos. 9). Goals indirectly related to innovation ranked higher (e.g., goal 2 and 19
pos. 5). Based on this analysis the following conclusions have been formulated below.
There is a strong relationship between the importance of the goals defined in the statutes
of TTUs and the degree (importance) of their execution.
In the realization of TTUs’ objectives, most important are the goals that constitute
the first stage of creating the potential for innovation. These goals pertain to raising
the quality of human capital, development of cooperation, entrepreneurship and creating
an environment for conducting business activities. The actual transfer of innovation move to
lower ranks of priority, as shown by the obtained replies.
In the next block of questions the respondents were asked to make a self-assessment of
the TTU they represented. In terms the effects units have on the companies they represent,
there were 5 questions directly related to innovativeness (questions 3-7) and two of a socioeconomic character (questions 1 and 2). The data presented in table 2 confirms the results of
the goal assessment included in the table. 1. It turns out that only half of the participants
responded positively to these questions. Thus, the following conclusion arises. Infrastructure
units of technology transfer focus more on the goals of their own operation (raising funds,
providing potential) than the effective activation of their region through innovative growth of
companies using their services. Perhaps this is related to the need to overcome the currently
existing developmental barriers of these institutions and those anticipated in the near future.
6
Schumpeter J.A.: The Theory of Economic Development. Harvard University Press, Cambridge, MA, 1934.
75
Table 2
Evaluation of the results of TTU’s activity for companies
No.
1
2
3
4
5
6
7
Description
Have companies operating in parks developed employment?
Have companies operating in parks developed production?
Have the companies inside the parks increased the number of new products?
Have the companies inside the parks received patents, trademarks, etc.?
Do companies inside the parks effectively adapt new technologies?
Do companies inside the parks purchase licenses?
Do companies inside the parks participate in international and national
research projects?
YES
6
6
7
5
6
4
3
NO
1
1
0
2
1
3
4
Source: own study based on direct interviews in 2011.
4. Future development barriers and challenges for TTUs in the eyes
of their representatives
Traditionally, in accordance with the methodology of management sciences, barriers to
development are divided into endogenous and exogenous. Similarly, in this analysis table 3
lists the ten most significant barriers that were identified by respondents. Five areas can be
distinguished among them. These are: financial barriers as external determinants (question 2),
internal determinants of entrepreneurship and pro-innovation cooperation (questions 1, 5,
6, 8), human capital skills (questions 3, 4, 9, 10, 11, 12, 13, 14, 15, 16) and the efficiency of
implementation by the units (7). The largest number of respondents (11) sees difficulty in
obtaining funds for development. Only two respondents see difficulty in inadequate housing
conditions and a technological basis for the conduct of major innovative projects. This means
that these areas have already been developed to an optimal level. However, it is interesting
that access to specialists dealing with the protection of intellectual and industrial property
isn’t perceived as a barrier.
Let us remember that, by nature, the activities of the analyzed entities require
entrepreneurial management. However, their results are also dependent on the environment.
The identified areas of risk are therefore puzzling, since they deal, in addition to financial
aspects, with the attributes of human and social capital of companies and thus deal with
the internal innovation potential of TTUs. These are the pro-innovative attitudes and
behaviors of companies and science sector and R & D sector. The following barriers are
essential elements that are so important and needed in cooperation: the lack of trust – the lack
of leadership – the lack of entrepreneurship to focus on and support SME activity – the lack
of skills (professionals to analyze the market inventions, innovations and valuation of
intellectual property protection). Therefore, it is necessary to further intensify
the implementation of statutory tasks of TTUs in this field.
76
Table 3
Barriers to development of technology transfer units predicted by respondents
No.
1
2
3
4
Description
low efficiency in attracting high-technology companies
problems with financing the growth (EU structural funds, public funds, etc.)
insufficient level of pro-innovation attitudes and behavior among enterprises
insufficient level of pro-innovation attitudes and behaviors among the representatives of
science and R & D sectors
5
distrust regarding the cooperative activities and to organize joint business ventures
6
distrust between the representatives of science and business
7
small number of technological implementations by research institutes and research units
8
insufficient infrastructure base for conducting large innovative projects
9
insufficient technological base for conducting large innovative projects
10
lack of one's own study and research facilities
11
too low level of social capital of employees
12
the lack of business core (strategic investor) the character who could concentrate
13
activities of other enterprises around its own
14
the lack of specialists who could perform a professional market analysis of inventions
15
the lack of specialists to evaluate the market value of innovation
16
the lack of specialists to build a marketing strategy
17
the lack of specialists for the protection of intellectual, industrial property etc.
18
Other
* Number of responses to individual questions
L*
6
11
9
8
9
8
10
2
2
4
4
6
2
5
6
3
1
2
The last issue examined in this study is related to challenges. In light of the obtained
responses, it can be concluded that they are perceived most subjectively by the respondents.
The participants were presented with 7 anticipated challenges facing the development of
TTUs and were asked to rank them from 1, the most important to 8, the least important.
Due to a large dispersion of ratings, their interpretation involved a combined scale assuming
a total assessment of 1 and 2 as very important (VI), 3 and 4 as a important (I), 5 and 6 as
sufficiently important (SI) and 7 and 8 as not important (NI).
Table 4
Characteristics of the level of importance regarding developmental challenges of TTUs
Description of the challenges
Number of answers
2 (I)
3 (SI)
4 (NI)
5
1
1
3
Lack
N/A
5
3
2
3
1
6
2
4
5
2
2
2
1
2
4
5
2
1
3
5
5
3
2
2
1
7
1 (VI)
effectively organized funds for further development of
statutory activity
developing ways to attract a potential technological
leader
improvement of co-operation with the scientific
community in the implementation activity
7. stimulation of innovative needs among entrepreneurs
paradigm shift in state policy regarding the long-term
development strategy
Innovation policy funding, guaranteed by EU funds
77
con. tab. 4
6. involvement of municipalities in attracting strategic
investors whose location in parks would allow the
organization of innovative development centers
3
0
2
3
7
Based on the data contained in table 4, it can be stated that the challenge related to funds
(effectively organized funds for further development of statutory activity), is assessed to be
the most important challenge since it has the largest number of units in category VI – very
important. Also the guarantees of the financing innovation policy by EU funds are
significantly important as a challenge according to three respondents and important for two
more. The development of ways to attract potential technological leaders was also deemed by
five entities as “very important” or “important”, and by 3 entities at the level of “sufficiently
important”. A total of 11 positive indications (indicated by VI, I and SI) were obtained for
the challenges of improving cooperation with the scientific community in terms of
implementation activity, however, the ranks of “important” and “sufficiently important”
dominate. It is still worth paying attention to the challenge regarding the stimulation of
innovative needs of entrepreneurs. 9 positive indications occurred here, among those
surveyed, at the assessment level from 1 to 6. Approximately half of the respondents said that
state policy is a major challenge and should be changed in the long term development
strategy of an innovation-driven economy. But only 5 entities pointed to the involvement of
local governments in attracting strategic investors as a challenge to the development of
innovation. This may suggest that local governments are partners in local communities in
terms
of
the development of innovation.
5. Conclusion
Nowadays, regardless of the represented view on the processes of globalization,
technological innovation in the fields of information, communication and organization
(especially in the organization of production) is considered an irreversible process.7
Therefore, awareness of the importance, and types, of innovation should be accompanied by
effective management. This has been especially important during the global crisis, which has
lead to a search for a new paradigm in economic theory.8 Multidimensional competitive
7
8
Skawińska E., Cyrson E., Zalewski R.: Konkurencyjność przedsiębiorstw. Wydawnictwo Politechniki
Poznańskiej, Poznań 2011, s. 46.
Wojtyna A.: Współczesna ekonomia – kontynuacja czy poszukiwanie nowego paradygmatu, [in:] Fiedor B.,
Hockuba Z. (red.): Nauki ekonomiczne wobec wyzwań współczesności. PTE, 2009, s. 43-47.
78
challenges on an international scale (taking into account multiculturalism) keep growing,
which engenders various kinds of innovations. It poses greater demands on the R & D sector
and on technology transfer institutions in terms of changing their functional abilities. They
should be able to perform multiple roles in the creation of value, and they should also be
flexible when taking into account local diversity and be efficient in building and using
strategic capital.9
During the process of transformation of the Polish economy many areas and causal
factors of strategic capital development have been neglected. These include for example
social capital and innovative entrepreneurship and education. The degree of the
innovativeness of enterprises is an indicator of “adaptation of industry to the new economic
system and its opening to the global economy”.10 In an era based on the information and
communications paradigm, sources of innovation keep changing. There are causal
relationships
between
the sphere of communication of information about innovations and the economy’s level of
innovativeness. Based on this study, it can be concluded that the state of development of
infrastructure of technology transfer in Poland today and in the future (which is in a certain
way a manifestation of enterprises’ innovative capacity, and is also a testing measure
indicating the level of cooperation between firms in different sectors within the sphere of
science and R & D) is in danger. The problem is not just with money but also about strategic
capital including social infrastructure. It is also worth noting that the degree of
de-industrialization in Poland in favor of services is slow compared to developed countries.11
Many authorities point to the traditional character of industry.12 The expected softening of its
structure known as servicization is taking place very slowly. The results of the study
indirectly confirm this view. The goals pursued by TTUs are not very oriented towards
marketing, organizational, logistical, innovations etc. This is because of the economy’s lack
of demand for this kind of innovation. Overall, the results obtained from TTU respondents
are not optimistic for overcoming the innovation gap in our country, especially taking into
consideration the assumed economic slowdown. Reduced revenues of business entities will
result in further reduction of incremental innovations. It can also be definitely concluded that
the importance of infrastructure for technology transfer in the development of innovativeness
in Poland is small and endangered in the near future.
9
Prahalad C.K., Ramaswamy V.: op.cit., p. 148-152.
Stryjakiewicz T.: Adaptacja przestrzenna przemysłu w Polsce w warunkach transformacji. UAM, Poznań
1999, s. 121.
11
CSO Statistical Yearbook, 2011.
12
Lis S., Klimczyk P.: Analiza zmian struktury produkcji przemysłowej w gospodarce polskiej w latach 19962005, [in:] Kotowicz-Jawor J. (ed.): GOW. Wyzwanie dla Polski. Warszawa 2009, s. 445-462; Grudzewski
W.M., Hejduk I.K., Sankowska A., Wańtuchowicz M.: Sustainability w biznesie, czyli przedsiębiorstw
przyszłości. Poltext, Warszawa 2010, s. 317.
10
79
Acknowledgements: The publication was financially supported by the National Centre
for Research and Development (project NR11-0026-10).
Bibliography
1.
Grudzewski W.M., Hejduk I.K., Sankowska A., Wańtuchowicz M.: Sustainability
w biznesie, czyli przedsiębiorstw przyszłości. Poltext, Warszawa 2010.
2.
The Constitution of the Republic of Poland. 1997, pos. 1/art. 5.
3.
Kowalak B.: Benchmarking of technological parks in Poland. Report for 2010.
4.
Lis S., Klimczyk P.: Analiza zmian struktury produkcji przemysłowej w gospodarce
polskiej w latach 1996-2005, [in:] Kotowicz-Jawor J. (ed.): GOW. Wyzwanie dla Polski.
Warszawa 2009.
5.
Ośrodki innowacji w Polsce. Katalog instytucji wsparcia innowacyjnego biznesu. PARP,
Warszawa 2011.
6.
Prahalad C.K., Ramaswamy V.: Przyszłość konkurencji. PWE, Warszawa 2005.
7.
Matusiak K.B., Guliński J. (red.): Rekomendacje zmian w polskim systemie transferu
technologii i komercjalizacji wiedzy. PARP, Warszawa 2011.
8.
Schumpeter J.A.: The Theory of Economic Development. Harvard University Press,
Cambridge, MA, 1934.
9.
Skawińska E.: Instytucjonalne warunki współpracy między nauką i przemysłem dla
wzrostu innowacyjności w Polsce. „Marketing i Rynek”, Grudzień 2010.
10. Skawińska E., Cyrson E., Zalewski R.: Konkurencyjność przedsiębiorstw. Wydawnictwo
Politechniki Poznańskiej, Poznań 2011.
11. Stryjakiewicz T.: Adaptacja przestrzenna przemysłu w Polsce w warunkach
transformacji. UAM, Poznań 1999.
12. Wojtyna A.: Współczesna ekonomia – kontynuacja czy poszukiwanie nowego
paradygmatu, [in:] Fiedor B., Hockuba Z. (red.): Nauki ekonomiczne wobec wyzwań
współczesności. PTE, 2009.
Małgorzata GAJOWIAK
Politechnika Poznańska
Wydział Inżynierii Zarządzania
Katedra Nauk Ekonomicznych
THE ROLE OF INFORMAL INSTITUTIONS IN SUSTAINABLE
ECONOMY
Summary. The aim of the article is to present the role of informal institutions in
a Sustainable Economy. It should be emphasized that the occurrence of random and
behavioral uncertainty, resulting from the unreliability of the market, prevents
resources to be optimally allocated. Those factors disturb stable economic
development and contribute to a lack of coherence. The law, contract agreements and
the economic rationality are a necessity, but not a sufficient condition for securing
economic and social order. Hence, they should be complemented with social capital,
which, being an informal institution, is perceived as the main factor making market
transactions possible.
Keywords: informal institutions, formal institutions, social capital, trust,
sustainable economy, social-economic development
ZNACZENIE INSTYTUCJI NIEFORMALNYCH
W ZRÓWNOWAŻONYM ROZWOJU
Streszczenie. Celem artykułu jest zaprezentowanie roli instytucji nieformalnych
dla możliwości zrównoważonego rozwoju. Należy podkreślić, iż pojawiająca się
niepewność behawioralna wynikająca z niedoskonałości mechanizmu rynkowego
uniemożliwia optymalną alokację. Stan taki utrudnia osiągnięcie warunków typowych
dla zrównoważonego rozwoju. Prawo, umowa czy ekonomiczna racjonalność są
konieczne, ale nie są warunkiem wystarczającym dla zapewnienia długotrwałego
rozwoju. Z tego też powodu powinny być uzupełnione o kapitał społeczny, który
obecnie jest postrzegany za główny czynnik umożliwiający zawieranie transakcji
rynkowych.
Słowa kluczowe: instytucje nieformalne, instytucje formalne, kapitał społeczny,
zaufanie, zrównoważony rozwój, rozwój społeczno-gospodarczy
M. Gajowiak
82
1. Introduction
Considerations about the proper development of institutions in the process of economic
growth have become, in recent years and particularly in nowadays’ global economic crisis,
a dominant area of research. Those considerations don’t only apply to formal institutions.
Though, of course, their role is not to be underestimated, as recalled G.W. Kołodko referring
to the history of the Polish road to the market economy. As he stated, “both the collapse in
the early 90’s and great transitional depression that followed, proved conclusively that onesided orientation towards liberalization (of prices, trade, entry and exit of economic entities)
and privatization, neglecting the importance of building the institution for the smooth
functioning and development of market economy, cost all of us [...] a lot”.1 Now – if it
applies to economists or politicians – no one disputes the role of institutions. A word of
objection or denial of their importance cannot be even heard from the supporters of the
neoliberal approach, who believe in almost perfect "invisible hand of a market", which – in
their opinion – is a sufficient instrument to ensure market balance and simultaneously
eliminates
all
the problems and shortcomings of the market. Let us only recall that the institutions were
previously treated by them as “black boxes”.
The issue is that the economic crisis also highlighted that in the sphere of management
are equally important, formal and informal, often even intangible institutions. Building,
developing and modifying those informal ones, although laborious, because of the long-term
process, is also necessary with respect to sustainable development, whereby the concept is
a response to the negative consequences of the internationalization and globalization process.
This concept aims at balancing economic, ecological and social priorities, balancing material
and financial capital with social capital, which is an informal institution on a global, national,
regional and at a local level.
Therefore, the purpose of this article is to indicate the role of institutions, including in
particular the “informal rules of the game” as in the case of social capital in sustainable
social-economic growth in Poland. Although there is no doubt that formal institutions play
a significant role in this process (e.g. property rights, contract enforcement mechanisms and
organizations responsible for market transactions). Without building and enforcing basic
resources inherent in social relations, it is not possible to accumulate other forms of capital
and reap benefits from them by all the participants of social and economic life. Moreover,
as aptly observes W.M. Orłowski, the quality of the institutional environment is one of
1
Kołodko G.W.: Instytucje i polityka a wzrost gospodarczy. „Ekonomista”, No. 5, 2004, s. 609-634.
The role of informal institutions…
83
the major determinants responsible for the development chances of countries from Central
and Eastern Europe.2
2. Institutions – historical outline, definition and types
The institutional stream of thought that has developed since the late nineteenth century,
in opposition to schools focusing on the classical paradigm, drew close attention to
the importance of institutions in the sphere of management and the need for interdisciplinary
research.3 Representatives of this school of thought saw the need to integrate economics with
other social sciences, because – in their opinion – one should not artificially isolate
the economic phenomena from social ones. Economic sciences should also benefit from the
rich achievements of sociology, psychology, organization and management theory, political
science or even law. For the first time this approach was presented in the work of T. Veblen
called “The theory of enterprise” published in 1904. Institutionalists were convinced that
the basic mistake of classics and their later followers is suspending a human being in
a vacuum and analyzing only atomistic homo oeconomicus model (so called economic man).
They were convinced that a human being is guided by limited rationality and in this way it
behaves like homo sociologicus (social man), who takes into account not only economic
matters, but also habits, emotions or values. As rightly perceives J. Wiśniewski, “[...] going
beyond the category of homo oeconomicus is tantamount to accepting the thesis that
the economic criteria of rationality are inadequate, so they do not fully reflect the rationality
of man acting in economic field”.4 The social unit has a complex nature and is rooted in
a specific environment that determines its behavior. One should not forget that a human being
is dichotomous, full of contradictions, “and the dichotomy of rational and non-rational,
ceremonial human behavior is revealed by the inductive analysis of the economy.”
In addition, the researcher states that a man is a complicated subject of analysis, because it
does not work like a counting machine, which processes data in order to optimize choices and
actions. Action can also be caused by non-economic factors whereby uncertainty and mistrust
can lead to a limitation of action or even its abandonment, and thus causing substantial
transaction costs to be incurred. For this reason, T. Veblen hoped in institutions which are
2
3
4
Orłowski W.M.: W pogoni za straconym czasem. Wzrost gospodarczy w Europie Środkowo-Wschodniej
1950-2030. PWE, Warszawa 2010, s. 213.
Sobiech-Grabka K.G.: Współczesne szkoły myślenia ekonomicznego w makroekonomii, [in:] Skawińska E.,
Sobiech-Grabka K.G., Nawrot K.A.: Makroekonomia. Teoretyczne i praktyczne aspekty gospodarki
rynkowej. PWE, Warszawa 2010, s. 41-42.
Wiśniewski J.: Homo oeconomicus i ograniczenia jego racjonalności. Acta Universitatis Nicolai Copernici,
No. 295, Toruń 1995, s. 8.
M. Gajowiak
84
identified with traditions, norms and customs and which are appointed for life, in order to
facilitate the functioning of various social groups.5
After a period of popularity in the early decades of the twentieth century institutionalism
was regarded as a dying stream of economic thought. To revive interest in this field,
researchers like J.K. Galbraith and G. Myrald6 made contributions to research after World
War II. Those neoinstitutionalists were convinced that economics is a science of morale and
it cannot ignore the evaluation process. The proposal for a synthesis of neoclassical
economics and institutionalism gave rise to New Institutional Economics (NIE), in which one
can distinguish the following theories: 1) property rights, 2) transaction costs, 3) agency.7
The figure below presents the schools which in their deliberations divide into the following
categories of institutions.
Institutional economic streams
Institutionalism/
Neoinstitutionalism
Public Choice
Theory
Agency
Theory
New
Institutional
Economy
Property
Rights
Theory
New
Economic
History
Transactional
Costs Theory
Fig. 1. Institutional schools of thought
Rys. 1. Szkoły nurtu instytucjonalnego
Source: Sobiech K., Woźniak B.: Ekonomia instytucjonalna, [in:] Ratajczak M. (ed.):
Współczesne teorie ekonomiczne. Wydawnictwo Akademii Ekonomicznej
w Poznaniu, Poznań 2005, s. 133-34.
5
Veblen T.: The Place of Science in Modern Civilisation and Other Essays, New York 1919.
Sobiech-Grabka, op. cit., s. 41-42.
7
Sobiech K., Woźniak B.: Ekonomia instytucjonalna, [in:] Ratajczak M. (ed.): Współczesne teorie ekonomiczne.
Wydawnictwo Akademii Ekonomicznej w Poznaniu, Poznań 2005, s. 133-34.
6
85
Although the institutional stream has failed to create a compact theory, its merit is
a “revival of discussion on the fundamental issues of economics: its subject, the relation
between economy and society or the importance of institutions in the processes of
management. Institutionalism also created the basis for the integration of social sciences in
relation to economic processes”.8
It should also be noted that during the development of this stream, its representatives
proposed various definitions of the institution. Today, however, most researchers refer to this
presented by D. North (NIE representative). In his meaning institutions are “constraints that
shape the political, economic and social interactions. They contain both informal constraints
– sanctions, taboos, customs, traditions or rules of conduct – the formal rules – constitution,
law, property rights”.9 This definition highlights that both formal and informal institutions are
a kind of constraints that govern the economic, social and political relations. The following
table presents the basic division of the institutions.
Table 1
Types of institutions
Formal rules
Informal rules
political (judicial) rules
economic rules that define property rights
contracts
conventions
norms of behavior
self-liberate codes of behavior
Source: North D.C.: The Process of Economic Change, UNU/WIDER, March 1997, p. 7.
It should be also noted here that formal institutions are the subject of conscious and
rational change, mainly because of a legislative nature due to the relatively easy way in
which they can be identified and explored - the formal rules or systems of rules control
behaviors or restrict them. In turn, these informal rules are recognized by the community and
form a part of cultural heritage. As D. Kuder adds, “the criterion of division into these two
categories – formal and informal institutions – is a record of rules: if institutions are saved
and written, their goal is to facilitate transactions between individuals; unsaved, they extend
the boundaries of transactions in that they increase or modify scope of application of formal
rules. Formal institutions have a much greater variability than informal ones. It should be
emphasized, that there must be a correspondence between the formal and informal
institutions in the economy, since its absence leads to corruption, insecurity and serious
disturbances in sustainability”.10
8
Ibidem.
North D.C.: Economic Performance Through Time. “American Economic Review”, No. 84, 1994, p. 359-368.
10
Kuder D.: Instytucje wspierające wzrost gospodarczy w wymiarze teoretycznym, [in:] Kopycińska D. (ed.):
Polityka ekonomiczna państwa we współczesnych systemach gospodarczych. Wydawnictwo Print Group,
Szczecin 2008, s. 55-64.
9
M. Gajowiak
86
3. Social capital as informal institution
It is worth noticing that on the basis of the above division of institutions one may say that
the resource of such values like trust, credibility or loyalty inherent in social relations,
commonly identified with the social capital is permanently inscribed in the institutional
mainstream. There is no doubt that social capital can be identified with informal norms which
control the behavior of actors. In addition, social capital plays a role of a binder, which
connects institutions in such a way that together form a functional whole. Social capital is
a common good. In fact it reduces the uncertainty inherent in all economic transactions.
One may recall here that New Institutional Economics assumes that “good” institutions are
those which form a structure of incentives to reduce the uncertainty in the economic sphere
and support market, thereby reducing transaction costs, generating better economic results.11
It is undoubtedly certain that without social capital, the reproduction of interactions leads to
incurring additional transaction costs, so continued investments are required to coordinate
the independent decisions of participants in the exchange market. With social capital in place,
costs that are saved can be allocated for investment purposes. Due to this, social capital gets
its connotation with economics. The influence of social capital on the level of transactional
costs is shown in the flow chart below.
It should also be noted that social capital is not usually included in the set of assumptions
of the homo oeconomicus model. Indeed, this model ignores transaction costs. This means
that the classical concept of the invisible hand as a tool to maximize social welfare should be
complemented by the existence of social capital. So the assumption of a perfectly operating
market mechanism taken by the classics, which always leads to balance, is insufficient to
regulate collective action. One may say here that caring for self-interest – which is one of
the basic assumption of homo oeconomicus model – is not a sufficient condition for
the coordination of individuals’ social action. James Coleman points out that “only under
conditions of far-reaching consensus an action arises spontaneously from individual person’s
purposes. In any other situation, spontaneous activity does not occur, because at least one
person wants something else”.12 Moreover, if a man is not sure of his partner’s behavior,
he will avoid working with others even if he expects benefits from it.13
11
Ibidem.
Coleman J.S.: Podstawy decyzji zbiorowych, [in:] Kempy M., Szmatka J.: Współczesne teorie wymiany
społecznej. PWN, Warszawa 1992, s. 345.
13
Ibidem.
12
87
Supply
Demand
Rest of supply that nobody wants
The existence of transacional costs
result in the need to build institutions
Transactional costs effect
- cost of security of transactions,
using adds, collecting information
Positive effect (+):
decreasing
transactional costs
The bigger transactional
costs, the bigger need to
create effective
institutions and
organizations
Negative effect (-):
increasing transactional costs
(+
(-)
Formal rules
Government and
organizations
Existing rules
Informal rules
(created when formal
ones are not fully
described)
Fig. 2. The impact of institutions on the level of transaction costs
Rys. 2. Wpływ instytucji na poziom kosztów transakcyjnych
Source: Horodecka A.: Instytucjonalizm i podejście instytucjonalne do polityki gospodarczej.
„Polityka Gospodarcza”, nr 5-6, 2002, s. 132.
Having imperfect knowledge about the market where the conditions are different from
those based in an idealized model of perfect competition, as well as maintaining a potential
partner or competitor, determines the decisions of individuals. Uncertainty of “other side”
action may limit the scope of cooperation or provoke a worse choice of solutions. Therefore,
M. Gajowiak
88
to cooperate in the absence of certainty is only possible when one will gain trust, a key
resource of social capital. As it is noted by P. Dasgupta, “trust [...] is the correct prediction of
the activities of other people that have an impact on the operation of the unit in a situation
when the choice of action must be made before it will be possible to observe the actions of
others”.14 In a situation where we need to take action despite the uncertainties and risks
occurring, trust comes at the forefront. This value becomes the elementary strategy of coping
with uncertainty and inability to control the future. It can be regarded as a simplifying
strategy that allows individuals to adapt to a complex social environment, and thus benefits
from
a wider pool of possibilities.15 Trust is necessary, when we are dealing with ignorance –
whether in the field of technical expertise, or the thoughts and intentions of others. Though
ignorance in fact always opens the door to skepticism, or at least caution, which may restrict
farming activities in the sphere of management. As rightly concludes A. Giddens, trust is
“a device by which we cope with the freedom of others, but the first condition for
the existence of trust is not a lack of power, but the lack of full information”.16 Therefore,
one can say that social capital, including trust, determine the scope and manner of operation
of the market and is a prerequisite for the occurrence of market exchange. As an informal
institution it is at the same time a kind of regulator of social relations that determines human
behavior, both at the level of individual and group activity, undertaken in economic, social or
cultural life. This informal institution is one of the main factors of creation, operation and
improvement of social order.17
4. Social capital resources in Poland
Nowadays, economists have no doubt that the greatest opportunities for development are
in those countries where investors may freely use property rights, monetary and fiscal
policies are rooted in permanent institutions and economic incentives are associated with
social objectives.18 As M.G. Woźniak stated, the durability and stability of the institutions of
a country depends on its investment attractiveness.19 However, considering the impact of
institutions on the economic growth one cannot omit those of an informal nature. Thus,
14
Dasgupta P.: Trust as a commodity, [in:] Gambetta D.G. (ed.): Trust: Making and Breaking Cooperative
Relations. Basil Blackwell, New York 1988, p. 51.
15
Earle T.C., Cvetkovich G.T.: Social trust: Toward a cosmopolitan society. Praeger, Westport 1995, p. 38.
16
Giddens A.: Konsekwencje nowoczesności. Wydawnictwo Uniwersytetu Jagiellońskiego, Kraków 2008, s. 6.
17
Przybysz J., Sauś J.: Kapitał społeczny. Szkice socjologiczno-ekonomiczne. Wydawnictwo Politechniki
Poznańskiej, Poznań 2004, s. 18.
18
Kuder D.: op.cit., s. 55-64.
19
Woźniak M.G.: Instytucjonalne uwarunkowania spójności społeczno-ekonomiczne, [in:] Kopycińska D.
(ed.): Polityka ekonomiczna państwa we współczesnych systemach gospodarczych. Wydawnictwo Print
Group, Szczecin 2008. s. 40-54.
89
studies made for example by S. Knack and P. Keefer, F. Fukuyama or R. Putnam shows
the role of social capital on social-economic development. These studies proved a positive
and significant relationship between such variables as trust, social norms and economic
growth. Moreover, D. Kuder adds that informal institutions positively and significantly affect
the quality of formal institutions.20 The following table presents the pro-efficiency role of
social capital on the economic sphere, social sphere and also on the spheres of health care,
education and politics.
Table 2
The benefits of social capital
1. Economic sphere
a) ensures economic growth
b) enables the creation of strong and consistent organizations
in the private sector
c) increases the possibility of adaptation to the new organizational
2. Social sphere and health
care
3. Sphere of education
4. Sphere of politics
and technical conditions
reduces transaction costs
reduces the problem of “free riders”
contributes to the growth of living standards of people and households
allows to find work
affects the growth of well-being, decreases stress levels and reduces
the incidence of depression
a) provides better results in science
d)
e)
f)
g)
a)
a) promotes democratic social order
b) allows efficient self-organization of groups
c) provides more efficient institutions
Source: own work based on: Theiss M.: Relatives – Friends – Citizens. Social Capital
and local social policy. Wydawnictwo A. Marshall, Torun 2007, p. 76-101.
Due to such vital importance of social capital in all aspects of life, the unequivocal
opinion of researchers that its level is too low in Poland, and may negatively affect both
the physical condition and health of individuals, innovativeness and competitiveness,
and consequently also affect the level of prosperity in the country, and therefore sustainable
development. As an example of a bad situation may be such indictors as: low voter turnout,
the lack of knowledge on political issues, the low participation in social organizations and in
public meetings which aim to benefit the common good, a low level of trust among people,
increased crime or too little interactivity between participants in social networks.21 As
pointed out by J. Hausner, “our growth is suffering from a lack of social capital”.22 In turn –
as noted by E. Skawińska – the low level of social capital results in incomplete utilization of
20
21
Kuder D.: op.cit., s. 55-64.
Skawińska E.: Rola kapitału ludzkiego i kapitału społecznego we wzroście konkurencyjności, [in:]
Skawińska E., Cyrson E., Zalewski R.I.: Konkurencyjność przedsiębiorstw. Wydawnictwo Politechniki
Poznańskiej, Poznań 2011, s.119-131.
90
M. Gajowiak
sources of population activity and the opportunities arising from international integration and
globalization.23 Moreover, a negative consequences of the low level of social capital in
Poland, among others, is the low propensity to save which is the result of a lack of trust in
the stable development of the nation or high consumption compared to income, which
reflects low intellectual aspirations. Therefore – according to authors of the governmental
report “Poland 2030. Development Challenges” – an increase of social capital and the change
of its form is one of the main challenges facing Poland in the next 20 years. These authors
also add that a special kind of social capital, so called development capital (or capital of
competitiveness)24 needs to be created in order to address such challenges. Such capital may
play a key role in the Polish competitive fight in the global world of knowledge and
innovation.
In Poland, the cyclic measurement of social capital are made by the authors of the study
“Social Diagnosis” who identify it with the social network governed by moral standards or
customs (and not or not only by the formal rules of law), which binds the entity with society
in a manner that enables it to interact with others for creating a common good. In that study,
such indicators of social capital are taken into account: interpersonal trust, a voluntary
membership in an organization and performing in any function in it, organizing, participating
and speaking during public meetings, volunteering for the local community, participation in
elections and a positive attitude to democracy. Summary data for these dimensions are
presented in the table below.
Table 3
Values of chosen spheres of social capital in Poland in 2011
Indicator of social capital
1. Generalized trust
2. Voluntary membership in a organization
3. Active membership in an organization
4. Non-compulsory participation in public meetings
5. Speaking at public meetings
6. Organizing public meetings
7. Voluntary work for the local community
8. Participation in elections (local election in 2010)
9. Positive attitude to democracy
Percentage of respondents
13,4%
14,8%
4,8%
22,9%
10%
5%
15,6%
68,3%
(47,3% due to Public Election Committee)
26,8%
Source: Czapiński J., Panek T (eds.): Diagnoza Społeczna 2011. Warunki i jakość życia
Polaków. Rada Monitoringu Społecznego, Warszawa 2011.
22
Hausner J.: Za dużo kapitalizmu, za mało … kapitału społecznego, [in:] Gołata K. (ed.): Bohaterowie polskiej
transformacji. Wydawnictwo WAB, Warszawa 2009.
23
Skawińska. E.: op.cit., s. 119-131.
24
Boni M. (ed.): Polska 2030. Wyzwania rozwojowe. Kancelaria Prezesa Rady Ministrów, Warszawa 2008,
s. 344.
91
In addition, sources of negative social capital in Poland, and hence indicating the
weakness of the informal institutional environment, are given by the following indicators: the
number of divorces, the existence of the “green zone”, corruption, the number of organized
criminal groups, or the scale of economic crime. Some of them are presented in the table
below.
Table 4
Chosen examples of negative social capital
1.
2.
Indicator
Grey Zone ∗
Corruption∗∗
3.
Number of organized criminal
groups ∗∗∗
4.
Economic crime (number of crimes
detected)
Position / level / amount
25% of GDP (EU average is 15% of GDP)
41st place among 178 countries in 2010 (according to the CPI)
49th place among 178 countries in 2009 (as above)
547 according to the Central Bureau of Investigation in 2010
501 according to the Central Bureau of Investigation in 2009
• 166 970 in 2010, about 0,9% more than in 2009 ∗∗∗∗
• 30% of Polish companies in 2010 were victims of at least
one economic crime. ∗∗∗∗∗
Source: own work based on: ∗ Oszustwo – nasz sport narodowy. Fiskus nabiera się na
banalne sztuczki. „Gazeta Wyborcza”, 8 stycznia 2010; ∗∗ Raport w sprawie korupcji
na świecie, Transparency International; *** Raport „Sprawozdanie z działalności
CBŚ KGP za 2010 r.”, www.cbs.policja.pl; **** Raport „Przestępstwa wszczęte,
przestępstwa stwierdzone i wykrywalność w latach 1999-2010. Komenda Główna
Policji, www.statystyki.policja.pl.
In almost each dimension analyzed by the authors of “Social Diagnosis” Poles turn out to
be extremely poor in social capital resources, which – as noted by E. Skawińska – affects the
poor economic competitiveness and innovativeness in light of the IMD and WEF rankings.25
In turn, it becomes important to identify the causative factors, responsible for atrophy of
social capital. In Poland there is still a lack of deep studies on that matter. For this reason,
an attempt is made in this article to identify the causative factors responsible for the low level
of social capital resources:
1) The “great tear” associated with the transition from the industrial age to
the information society. This phenomenon is accompanied by the erosion of social
conditions: such as an increase in crime or the collapse of law and order. Therefore,
one may observe the weakening of family ties, a decrease in the number of marriages
and births, a dramatic increase in the number of divorces, single households, and
children born out of wedlock. One may also observe a deep crisis of trust in social
institutions. This process is accompanied by a whole series of liberation movements,
which are aimed at freeing the individual from the constraints imposed by traditional
social norms and moral principles.
2) The socialist system and the homo sovieticus union;
M. Gajowiak
92
3) Polish radical transformation and the associated changes in management, hierarchy of
values, the appearance of the molecular model, transformation’s trauma, income
disparities and irregularities in the privatization procedures;
4) Constant dysfunctionality of justice;
5) Deterioration of standards, customs and law in the sphere of public life;
6) Short horizon for future activities, which is a consequence of political uncertainty;
7) Intense culture of distrust, which is based on the belief that the intentions of
the government or the institutions are determined by self-interest, resulting in low
respect for both standards, the legal system and the institutions themselves.26
The socialist system which prevailed in Poland until 1990, and the transformation process
which followed, have largely contributed to the decline of social capital. Formal institutions
can be quickly modified. Unfortunately, it is harder to do that with those of an informal
nature. Eulalia Skawińska notes that the transformation of social mentality is much slower
than the change in the material or formal institutions.27 Moreover, as M.G. Woźniak adds,
the “crucial role in the process of transformation of post socialist economies and its effects in
the real sphere is believed to be in attributable inherited informal institutions that determine
the readiness of transfer institutions. Paternalistic expectations, mediocrity of work, lack of
respect for good work organization and for the law, and the demanding attitudes and other
stereotypes of thinking and acting inherited from the centrally planned economy cannot be
removed quickly by changing the external standards. Also, external standards of a liberal
state will not universally and immediately trigger the ethos of labor, entrepreneurship, respect
to contracts or liability”.28 Therefore one of the main challenges facing Poland, apart from
reforming the formal institutions, is to reconstruct the informal institutional environment.
I agree with those researchers who suggests that “high social costs of institutional change in
the post-socialist economy cannot be an argument for its abandonment. An alternative would
be the institutional incoherence resulting in time in “wild capitalism”, where the power is
conversed to the property and […] there are no chances to build civil society”.29
25
Gracia E.: Kryzys argentyński w świetle nauki społecznej Kościoła. „Społeczeństwo”, No. 2, 2002;
Kochanowski J.: Rozpad i odbudowa kapitału społecznego. Referat na Konferencji 25 listopada 2002 r.
„Kapitalistyczna gospodarka rynkowa a tzw. sprawiedliwość społeczna”. Zeszyty Towarzystwa Ekonomistów
Polskich. Zeszyt 7, styczeń 2003; Herbst M.: Kapitał ludzki i kapitał społeczny a rozwój regionalny. Centrum
Europejskich Studiów Regionalnych i Lokalnych UW. Wydawnictwo Naukowe Scholar, Warszawa 2007.
27
28
Woźniak M.G.: op.cit., p. 40-54.
29
Ibidem.
26
93
5. How to stimulate social capital? A new approach
In view of the dramatically low level of social capital in Poland, numerous attempts have
been made to build and develop its basic resources. These activities have had different
impacts with effects varying in scale. At the national level one cannot omit the Strategy
“Poland 2030. Development Challenges”. This governmental document contains many
recommendations which, if used in practice, may contribute to an increase of social capital’s
in Poland. In this Report much attention is paid to such factors as the educational system,
civil society, and local government or culture, which all can significantly contribute to
the generation of social capital and change unfavorable rankings for Poland. Its major
recommendations include those which can stimulate the development of civil society and
force its cooperation with local government. It seems to be important, therefore, to create
laws governing activities of the civil society and the long-term strategy for its support, as
well as enhancing the role of social and civic consultations. In addition, the decentralization
of
the decision-making process for financing national and local activities and providing support
of governmental agencies to local governments can build a basis for the development of
social capital resources. According to the authors of this strategy it is also important to
redefine the role of public media, so that they become a source of standards for reliable
information, public debate and high culture. Public media are also able to promote attitudes
and values consistent with the needs of social capital improvement. It is also necessary to
create a comprehensive strategy for the development of culture identified with a resource
responsible for country’s development. Allowing mass access to cultural heritage of
the country may also contribute to build proper attitudes in a society. Another element which
is becoming increasingly important in building social capital is the development of
the creative sector as well as promoting individual and grassroots creativity.30
There is no doubt that the recommendations contained in the Strategy aim to improve
the common good of the whole society, but implementing them at the national level is a long
and expensive process. Unfortunately, although the ambitions of politicians are high, without
the involvement of individuals’ willful desire to change the current social and economic
situation in Poland, which has been dominated by distrust, especially towards the government
and politicians, these recommendations won’t result in positive changes. Moreover, highflown ideas, often in the form of campaign slogans, will not find acceptance among society
and will destroy the remnants of public trust. One should also not forget the role of a family
in the process of creating social capital. Therefore it can’t be denied that an appropriate social
30
Polska 2030. Wyzwania rozwojowe, op.cit., p. 344.
M. Gajowiak
94
policy which aims not only to promote the formation of families, but also to facilitate
the effort of raising children (as for example the creation of nurseries, kindergartens, schools,
financial aid, but not only for families living at the poverty line) can positively stimulate
public trust.
It should also be added here that many opinions have recently appeared representing
a better way to stimulate activity of human beings and build what is covered by the term of
social capital by promoting activity of population from the bottom-up approach. Attempts to
create and develop social capital requires knowledge about the specific local context.
At the local level one can easier adapt to the expectations and needs of the population in
the best way. As P. Poławski concludes, “the existence of a generalized norm of reciprocity
at
the level of large populations is questionable, if at all, one can talk about it, but rather in
small collectivities in which relationships are based on “face to face” contact”.31
Examples illustrating the attempts of building local communities, where the relations lead
to the construction of basic resources of social capital, and which aim is to contribute to
the public good are not lacking in Poland. Bottom-up projects have taken shape under such
programs as “Leader” and “Act locally”. They are particularly visible in rural areas and also
in those areas where public farms were situated before the transformation process began and
where the socialist system, in a particular way, used to realize its purpose of atomizing
human beings. The basic aim of these bottom-up projects is to mobilize and revitalize rural
communities by incorporating social and economic partners in planning and implementing
local initiatives. Locality allows a better identification of existing problems, and to more
adequately see the possibilities of their solution. These programs combine human, natural,
cultural, historical resources, knowledge and skills of the representatives of three sectors:
public, private and societal to achieve the common good. Bottom-up community involvement
consolidates and strengthens the consistency of decisions and promotes taking responsibility
for the project’s implementation and consequently contributes to the growth of social capital.
It teaches its participants how to be an active citizen. These programmes can also sponsor
innovation, creativity and entrepreneurship.
6. Final remarks
In conclusion, it should be noted that the currently observed phenomenon of widening
income disparities between countries does not result solely from the uneven accumulation of
physical and financial capital or various macroeconomic and structural policy undertaken in
95
response to external shocks. What is emerging is an opinion that the uneven development of
countries is influenced by the quality of institutions, but not only by those of a formal nature.
Important here is also the quality of these informal and often intangible institutions, such as
social capital, for example. As aptly concludes B. Będziak, “in the face of the depletion of
cheap resources and easy opportunities to achieve economic growth, socio-economic
development, and thus development in all aspects of life in highly developed societies will
not be possible without the strengthening of ties and trust in society. Although called the next
stage of evolution, civil society, information society, and knowledge-based economy, any
form requires cooperation, relationships, information flow and – which stems from the
previous items – trust”.32 Therefore, the authors of the government's report “Poland 2030.
Development Challenges” point that to strengthen social capital, understood as a capital of
development, it is important to consolidate post materialistic attitudes that emphasize selffulfillment, life satisfaction and quality of life, together with such elements as environmental
interest, human rights, participation in public life, and the emancipation of social minorities.
The low importance attached to post materialistic values (e.g. freedom of expression) may
interfere with the development of innovation and creativity, which are now key factors in
the development process33. Moreover, the growth of fundamental social capital can also be
seen in the improvement of macroeconomic policy, improvement of the legal, administrative
and financial environment. Imperfect law and poor quality of formal institutions awakens
distrust, uncertainty and the reluctance of the population, which in turn weakens its activity.
It is also important not to forget about small groups of people that act locally. This bottom-up
approach can in a much better, faster and cheaper way build relations based on trust, loyalty
and reliability. The importance of these values is unquestionable and after a few years it will
be worth taking on deeper studies on their role in social capital improvement in Poland.
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gospodarczych. Wydawnictwo Print Group, Szczecin 2008.
Radosław MĄCIK
Monika NALEWAJEK
Maria Curie-Skłodowska University in Lublin
Faculty of Economics
Bartosz JÓŹWIK
The John Paul II Catholic University of Lublin
Faculty of Social Sciences
Department of International Economic Relations
INFLUENCE OF THE LEVEL OF INTERNATIONALIZATION
ON ICT USAGE IN COMMUNICATION AND MARKETING
ACTIVITIES BY ENTERPRISES IN THE LUBLIN REGION
Summary. ICT usage for communication and marketing activities plays
an important role in facilitating the internationalization of firms, and is a source of
competitive advantage in comparison to firms less advanced in ICT deployment.
The main goal of this paper is to explore the relationship between the use of ICT in
the aforementioned fields by firms in Lublin Province, and the perceived competitive
advantage on international and domestic markets. The paper focuses on two path
models of influence of such activities on perceived competitive advantage, estimated
using a survey of 1680 firms. Generally the higher the level of internationalization,
the greater the usage of internet communications and e-marketing activities.
Keywords: Internationalization, ICT usage, marketing, Lublin region, Poland
WPŁYW POZIOMU INTERNACJONALIZACJI NA WYKORZYSTANIE
TECHNOLOGII INFORMACYJNYCH I TELEKOMUNIKACYJNYCH
W KOMUNIKACJI I DZIAŁANIACH MARKETINGOWYCH PRZEZ
PRZEDSIĘBIORSTWA Z WOJ. LUBELSKIEGO
Streszczenie. Wykorzystanie technologii informacyjnych i komunikacyjnych
w komunikacji i innych działaniach marketingowych sprzyja internacjonalizacji
przedsiębiorstw, będąc wciąż jednym ze źródeł przewagi konkurencyjnej względem
R. Mącik, B. Jóźwik, M. Nalewajek
100
firm mniej zaawansowanych we wdrożeniu ICT. Głównym celem artykułu jest
eksploracja powiązań pomiędzy wykorzystaniem ICT we wspomnianej dziedzinie
przez przedsiębiorstwa zlokalizowane w woj. lubelskim a postrzeganym poziomem
konkurencyjności na rynkach zagranicznych i krajowych. Główna część artykułu
opisuje dwa modele ścieżkowe wspomnianych zależności estymowane z próby 1680
przedsiębiorstw. Dodatkowo na poziomie opisu statystycznego potwierdzono, że im
wyższy poziom internacjonalizacji, tym większa intensywność wykorzystania
komunikacji internetowej oraz działań e-marketingowych.
Słowa kluczowe: internacjonalizacja, wykorzystanie ICT, marketing, woj.
lubelskie, Polska
1. Introduction
The internationalization of firms can facilitate broader and more intensive usage of ICT.
On the other hand, communication and marketing activities over the internet may help to
internationalize firms’ operations by making it easier to gather market information, as well as
to communicate with clients and/or distributors.
The main goal of this paper is to explore to what extent ICT usage influences
the internationalization level of firms located in one of the least developed and peripheral
regions of European Union: Lublin Province (or Lublin Voivodeship). Descriptive analysis of
data as well as structural equation modeling is used to provide an answer to this research
question.
2. Internationalization of Firms in the Uppsala Model
From a historical point of view, the interest in effects of international trade on a national
level, as well as which goods would be traded internationally, starts with the classical works
of Ohlin,1 Smith,2 and, later on, Ricardo.3 The influence of foreign direct investment (FDI) –
focusing at the firm level – and FDI flow between countries was studied by Dunning.4
International expansion of the enterprise leading to multinational corporations has been
1
Ohlin B.: Interregional and International Trade. Harvard University Press, Cambridge, MA, 1933.
Smith A.: An Inquiry into the Nature and Causes of the Wealth of Nations. A Penn State Electronic Classics
Series Publication. The Pennsylvania State University, http://i-ahrens.de/schule/bvw/Wealth-Nations.pdf,
23.03.2012.
3
Ricardo D.: Principles of Political Economy and Taxation. Prometheus Books, New York 1996.
4
Dunning J.H.: American Investment in British Manufacturing Industry. Allen and Unwin, London 1958.
2
Influence of the level of internationalization…
101
theorized in different ways by people such as Hymer,5 Caves,6 Knickerbocker,7 as well as
Buckley and Casson8 and Hennart.9
One of the most popular and more contemporary approaches to internationalization is
the Uppsala model, created by the researchers from the Uppsala University.10 The Uppsala
model describes the internationalization of a firm as a process of experiential learning,
leading to an evolutionary development of operations on foreign market(s). According to this
model, firms conducting international expansion can be characterized by three circumstances:
the expansion is preceded by success in the domestic market and is a consequence of many
discrete decisions; the expansion usually starts from the geographically closest markets and
then includes more distant ones;11 entering into foreign markets, most firms start with export
activities and only after some time decide to take more demanding actions. From these
assumptions, authors of the Uppsala model put forward the thesis that the process of
internationalization is sequential, phased, consecutive, and evolutionary.
The Uppsala model in its base form, identifies four phases of the internationalization
process: occasional export (irregular export activity), export via independent brokers/dealers
(agents), establishment of a trading subsidiary (branch) and establishment of a manufacturing
subsidiary (branch).12 Each phase requires different resources and knowledge about markets
for international expansion. Larger engagement of resources requires more comprehensive
knowledge about the market. Generally, to make an expansion one needs two types of
knowledge: general or universal knowledge, which can be transferred from one country to
another and can be one of the conditions of geographical diversification, and specific
knowledge concerning the particular market, which can only be gained through experience in
activity in this market.
Seeing that some firms internationalize first “internally” or “passively”, through contact
with foreign firms, gaining knowledge and/or other resources before they are ready to enter
international markets, Wiedersheim-Paul proposed including pre-export activity as a “zero5
Hymer S.H.: The International Operations of National Firms: A Study of Direct Foreign Investment. MIT
Press, Cambridge, MA, 1976.
6
Caves R.E.: Multinational Enterprise and Economic Analysis, 3rd Ed, Cambridge University Press,
Cambridge 2007.
7
Knickerbocker F.T.: Oligopolistic Reaction and Multinational Enterprise. Harvard University Press,
Cambridge, MA, 1973.
8
Buckley P.J., Casson M.C.,: The Future of the Multinational Enterprise. Macmillan, New York 1976.
9
Hennart J.F.: A Theory of Multinational Enterprise. The University of Michigan Press, Ann Arbor, MI, 1982.
10
Johanson J., Wiedersheim-Paul F.: The Internationalization of the Firm – Four Swedish Cases. “Journal of
Management Studies”, Vol. 12, 1975, p. 305-322; Johanson J., Vahlne J.E.: The Internationalization process
of the firm – a model of knowledge development and increasing foreign market commitments. “Journal of
International Business Studies”, Vol. 8, No. 1, 1977, p. 23-31.
11
Johanson J., Vahlne J.E.: Management of Foreign Market Entry. “Scandinavian International Business
Review”, Vol. 1, No. 3, 1992, p. 9-27.
12
Gorynia M., Jankowska B.: Teorie internacjonalizacji. „Gospodarka Narodowa”, Vol. 2011, No. 4, 2007,
s. 21-44.
102
phase” of internationalization, also called “domestic internationalization”. This approach has
been differentiated into three sub-steps: lack of will for exporting, weak will to start
exporting, and strong will to do this.
The Uppsala approach supplemented by the Wiedersheim-Paul extension, has been
chosen by the authors to measure the level (stage) of internationalization, suitable for SMEs
and other firms lacking in significant knowledge resources, which is common for Lublin
Province.
It is important to note that in some situations, the internationalization process may be
implemented in a way that differs from the sequence described in the Uppsala model,13
for instance when:
− the firm has huge resources (especially financial) and the consequences of possible
failure would be relatively insignificant for the firm’s outcome;
− conditions in the particular market are very stable and specific knowledge can be
gained in ways other than by experience in activity in this market;
− the firm already has experience in activity in the market with very similar conditions
to those in the targeted market, the market that is to be entered into;
− the firm decides against establishing a manufacturing subsidiary (branch) because of
the small size of the market.
3. ICT and Firms’ Internationalization
Since the early 1990s, ICT usage has been recommended to provide a strategic
competitive advantage on international markets,14 and facilitate globalization.15
Many companies have expanded their international presence and international trading
capabilities through the use of ICT. It is suggested that any form of internationalization –
whether export, licensing or foreign direct investment decisions – involve acquiring
information about foreign markets, assessing and understanding consumer needs in different
cultures, evaluating alternative entry strategies, and coordinating activities across all
elements of the value chain and across markets.16 Wide use of the Internet expands the
geographic market, bringing many more companies into competition with one another than
13
Ibidem, s. 24.
Jarvenpaa S.L., Ives B.: Organizing for global competition: The fit of information technology. “Decision
Sciences”, Vol. 24, No. 3, 1993, p. 547-580.
15
Palvia P.C.: Developing a model of the global and strategic impact of information technology. “Information
and Management”, Vol. 32, 1997, p. 229-244.
16
De la Torre J., Moxton R.W.: Introduction to the symposium e-commerce and global business: The impact of
the information and communication technology revolution on the conduct of international business. “Journal
of Internationalization Business Studies”, Vol. 32, No. 4, 2001, p. 617-639.
14
are,
103
at
the time, perceived as competitors.17 The Internet also enables potential customers and
organizations to communicate easily and cheaply, according to a many-to-many
communication model, which includes all types of communication, from one-way, one-toone communication, to mass exchanges between all parties, and everything in-between, in
different modes – starting from “one to one” up to “many to many”.18 In effect, a firm can use
the Internet as a tool for advertising, booking orders, promoting its identity, and
communicating with their customers all over the world.19 Web marketing usage can, to some
extent, decrease differences between large and small firms.20
Use of the Internet reduces the uncertainty of doing business in foreign markets and thus
can accelerate the internationalization process. On the other hand, there is also the danger of
information overload and over-confidence affecting decision making.21 Lack of knowledge,
in itself, is a factor of deterrence for entering into the global market. ICT have facilitated
these activities by reducing costs and making information available. Traditionally, the main
sources of initial contact for many firms were costly trade shows. Now they usually establish
contact via web pages and search engines.22 ICT seems to be an especially important source
of international market information and a tool in overcoming communication barriers.
The amount and availability of information can increase the likelihood that management will
consider internationalization a promising strategy for firm growth. Information from
the Internet also allows for the cross-validation of market information and thereby reduces
the risks involved with market entry when the firm does not possess experiential market
knowledge.23 The Internet enables firms to identify new market opportunities leading to
business expansion, even for SMEs. Due to access to information about markets, a firm finds
itself in a better position to meet the segment needs of specific clients and to tailor its
products and services to conform to its needs. Similarly, the Internet reduces the entry
17
Porter M.E.: The strategic potential of the Internet, [in:] Galliers R.D., Leidner D.E., Baker B. (eds.):
Strategic information management. Elsevier Science, Oxford 2003, p. 376-403
18
Hoffman D.L., Novak T.P.: A New Marketing Paradigm for Electronic Commerce. Working paper,
http://elabresearch.ucr.edu/blog/uploads/papers/A New Marketing Paradigm for Electronic Commerce
[Hoffman, Novak – Oct 1996].pdf.
19
Bicak K.: International knowledge transfer management: Concepts and solutions for facilitating knowledge
transfer processes in multilingual and multicultural business environment. Shaker, Herzogenrath 2005.
20
Samii M.: Globalization and IT, [in:] Samii M., Karush G. (eds.): International business and information
technology. Routledge, New York 2004, p. 18.
21
Petersen B., Pederson T., Sharma D.D.: The role of knowledge in firms’ internationalisation process,
[in:] Havila V., Forsgren M., Hakansson H. (eds.): Critical perspectives on internationalization. Pergamon,
Amsterdam 2003, p. 36-55.
22
Samii M.: op.cit.
23
Aspelund A., Moen Ø.: Internationalization of small high-tech firms: The role of information technology.
“Journal of Euromarketing”, Vol. 13, No. 2/3, 2004, p. 85-105.
104
barriers to international markets, which in turn encourages the firm’s international expansion
and minimizes the importance of the local market.24
4. Internationalization of Firms in Lublin Province
Lublin Province is one of the least developed regions in the European Union. In 2007,
Lublin was ranked 261st among all the EU regions, attaining a per capita GDP of about 9200
EUR. The average value of the regional per capita GDP in the EU was then close to 24000
EUR, which exceeded by more than 2,6 times the value of the per capita GDP of Lublin
Province. Other EU regions with similar a level of per capita GDP were are: the Romanian
Sud-Muntenia region, Subcarpathian Province (Poland’s poorest province), and
the Hungarian Észak-Alföld region. These are the regions located along the eastern border of
the EU, where the inefficient agricultural sector still represents a large portion of their GDP.
The low GDP levels of the eastern part of the EU are also, undoubtedly, derivatives of
peripherality and low transport accessibility of these regions.25
Recent research has identified that, because of the regional market’s low absorption rate,
a good development strategy for firms operating there, is to internationalize the business, i.e.
by expanding into foreign markets, whether it be the EU market or eastern markets. Export
activity towards Germany (21,2%), Ukraine (10,3%), France (7,4%), Italy (7,3%) and
Netherlands (5,6%) represented the most significant export value in 2008. The authors of the
report pointed out a substantial growth of export to the Czech Republic, Slovakia, Hungary
and Bulgaria. From 1999-2008, the value of export to these countries respectively increased
by 520%, 960%, 720% and 880%.26
Nevertheless, the level of internationalization of business remains relatively low, which is
caused by the low value and the small number of foreign direct investments in Lublin
Province. In the recent years, investors in this region, have mainly come from Italy,
the United States, Germany, Luxembourg, South Korea and Switzerland.27 This, in turn, is
caused by the low investment attractiveness of the region. In the latest ranking from 2010,
created by the Institute for Market Economy conducting research on the investment
24
Nieto M.J., Fernández Z.: The role of information technology in corporate strategy of small and medium
enterprises. “Journal of International Entrepreneurship”, Vol. 3, 2006, p. 251-262.
25
Jóźwik B., Sagan M., Zalewa P., Gorbaniuk O.: Europejska polityka spójności w perspektywie budżetowej
2007-2013. Przykład województwa lubelskiego. Wydawnictwo KUL, Lublin 2011, s. 18.
26
Gawlikowska-Hueckel K., Umiński S.: Handel zagraniczny województwa lubelskiego, [in:] Ciżkowicz P.,
Opala P. (eds.): Uwarunkowania krajowej i międzynarodowej konkurencyjności województwa lubelskiego.
Wydawnictwo Ernst & Young, Warszawa 2011, s. 166-168.
27
Opala P., Osieka B.: Atrakcyjność inwestycyjna województwa lubelskiego, [w:] Ciżkowicz P., Opala P.
(red.): Uwarunkowania krajowej i międzynarodowej konkurencyjności województwa lubelskiego.
Wydawnictwo Ernst & Young, Warszawa 2011, s. 109-136.
105
attractiveness of Polish regions and subregions since 1993, Lublin Province was placed 15th
(second to last) in the country. Symptomatically, the last five positions in this classification
were held by Poland’s eastern regions.28
Another important barrier to the internationalization of Lublin Province firms’ business
activities, is their low competitiveness due to, i.e., expensive modern technology transfer.
A 2009 survey revealed that the firms usually use free or public sources of technology
transfer (publications, Internet, free of charge conferences) and the main source of
technology and knowledge transfer is the Internet (indicated by 72,3% of respondents). Only
the industrial sector benefited, somewhat to a large extent, from knowledge transfer and
innovations from universities, parallel implementing ideas and projects arising from its own
research and development.29
5. Hypotheses
This study is focused on exploring how using the internationalization level or stage of
internationalization (in terms of extended Uppsala internationalization model) influences ICT
usage for communication and e-marketing activities, leading to improvement of a firm’s
international competitiveness.
Therefore, for this study, two sets of hypotheses have been formulated, based on literature
review (one set for each model). The hypotheses set for the more general model 1 are as
follows:
H1:
H2:
H3:
ICT usage in marketing and communication (both domestically and internationally)
is positively connected to international competitiveness.
Archived internationalization stage is positively connected to international
competitiveness.
Implementation of innovations influences positively international competitiveness
H3a: Implementation of innovations is positively connected with ICT usage in
marketing and communication.
H3b: Implementation of innovations is positively connected with archived
internationalization stage.
Detailed structure of proposed model 2 enables to set additional, and more detailed,
hypotheses, supplementing the general view described in hypotheses 1 to 3, as follows:
28
Nowicki M. (red.): Atrakcyjność inwestycyjna województw i podregionów Polski 2011. Instytut Badań nad
Gospodarką Rynkową, Gdańsk 2011.
29
Sagan M., Gorbaniuk O., Zalewa P., Jóźwik B.: Transfer technologii i wiedzy do przedsiębiorstw
województwa lubelskiego. “Gospodarka Narodowa”, Vol. 2011, No. 4, 2011, s. 85-98.
106
H1a: e-Marketing activity on international markets is positively connected to international
competitiveness
H1b: e-Marketing activity on domestic market is negatively connected to international
competitiveness
H1c: Internet communication activity positively influences e-Marketing activity on
international markets.
H1d: Internet communication activity positively influences e-Marketing activity on
domestic market.
H1e: e-Marketing activity on domestic market influences positively e-Marketing activity on
international markets.
H2a: International activity positively influences international competitiveness
H2b: International activity positively influences e-Marketing activity on international
markets.
H2c: International activity positively influences Internet communication activity.
H2d: International activity positively influences implementation of innovations.
H2e: Foreign capital share is positively connected to International competitiveness.
H2f: Foreign capital share is positively connected to Internet communication activity.
H2g: Foreign capital share is positively connected to International activity.
H3c: Implementation of innovations positively influences Internet communication activity.
H3d: Implementation of innovations positively influences e-Marketing activity (directly and
indirectly).
6. Sample and measures
Analyzed data were collected during field research of firms from Lublin Province for
a project called,‘Research and analysis of demand for jobs in the context of supporting
the export potential of the Lublin Province’ contracted to the Ernst and Young Business
Advisory and PBS DGA consortium by Lublin Province and funded by Lublin Province’s
Operational Programme for the 2007 – 2013 funding period. The first and second authors
served as methodological advisers for the Lublin Province Marshal’s (local government)
Office in Lublin as methodological advisers on this project.
Data were collected using Computer Assisted Personal Interviews (CAPI). Field research
ended on December 2011. The topic of ICT usage is one of several parts of a long interview,
which lasts, on average, about 45 minutes. In the project report, this topic is not reasonably
elaborated, so there was a need to further explore the data.
107
The total sample size was 1680 firms divided into 3 groups: 761 exporters (all exporters
from the region, which were identifiable and hadn’t refused to answer), 809 firms with
identifiable export potential, and 110 firms not interested in exporting (as a reference group).
Among the variables controlled in these samples, were size of enterprise, from large to small
(micro firms are included only in exporter group); and sector of main activity of the firm.
These 3 groups are compared in this paper.
The survey used in CAPI was a long questionnaire consisting of about 130 questions.
Questions regarding internationalization stage (in terms of the extended Uppsala model), ICT
usage for communication and (e)marketing activities as well as innovation implementation
were only a part of the questionnaire.
Since some of questions in this group have been scaled nominally to multiple choice
questions, there were aggregate variables introduced, measuring, for instance, declared usage
of selected e-marketing tools by counting the number of “selected” or “mentioned” answers
from the original questions. Other measures were measured on interval scales (e.g. perceived
competitiveness, share of export sales etc.). For non-exporters, zero response values were
substituted when it was necessary. Table 1 includes a description of the variables used in
the estimated path models.
Table 1
Description of variables used in model
Label
INT_ACT
Name
International activity
FCAP
INT_E
Foreign capital share
e-Marketing activity on international
markets
e-Marketing activity on domestic market
Internet communication activity
Self-reported competitiveness
Share of export in total sales
Number of countries exported to
Innovation activity
INT_I
INT_COM
COMPET
EXP_SAL
EXP_CO
INNOV
Description
Aggregate (number and highest stage
of international activity)
Percentage
Aggregate (from 8 activities)
5-point scale
Percentage
Number of countries
Source: own elaboration.
7. Results
7.1. Internet usage for communication and marketing activities: description
Exporters, potential exporters, and firms not interested in exporting differ in ICT usage on
a general level as well as for using particular technologies and e-Marketing tools. Table 1
presents a general comparison of these groups in terms of frequency of firms using ICT in
108
their activities (it should be noted that about 96% of enterprises located in Lublin Province
have access to the Internet).
A more detailed look at the internationalization level reveals even more differences.
Generally the higher the level of internationalization, the higher the usage of Internet
communication and e-marketing activities. Exporters, in particular, are more aware of
the importance of various e-marketing activities, and perceive them as more efficient
compared to other groups analyzed.
Table 2
Main Internet usage indicators for analyzed groups of firms
Indicator
Exporters
(n = 761)
Firms declaring business usage
of the Internet
Firms possessing website
Firms possessing corporate blog
Firms using e-mail
Firms using internet communicators (text,
voice video)
Firms possessing own forum on the
Internet
Firms engaged in social media
Groups [%]
Potential
Not interested
exporters
in exporting
(n = 809)
(n = 110)
Chi-square test
Chisquare
p
statistic
60,7
58,1
45,5
21,6
0,000
39,8
5,0
44,7
31,1
4,0
35,8
30,0
4,5
30,9
14,6
0,99
16,4
0,001
0,601
0,000
17,5
5,7
6,4
58,0
0,000
3,5
1,6
1,8
6,3
0,043
4,7
3,1
1,8
4,1
0,126
Source: own elaboration of CAPI data.
7.2. Model 1
To assess the influence of internet usage for communication and selected electronic
marketing
activities
on
international
competitiveness,
a
path
model
including
internationalization stage and innovativeness has been devised and tested (figure 1).
The model has three unobserved (latent) variables: International competitiveness
(INT_COMP), Internationalization stage (INT_STAGE), and ICT usage in marketing and
communication (ICT_USE). The first one is a dependent variable explained by the two
others, including the moderating effect of innovation implementation on both explanatory
variables, as was hypothesized in H1 to H3.
109
Note: all path coefficients are significant at p < 0,001
Fig. 1. Structure of Model 1
Rys. 1. Struktura modelu 1
The results suggest that ICT usage in marketing and communication (both on domestic
and international markets) significantly improves international competitiveness, thus
hypothesis H1 is supported. According to the descriptors of this latent variable, e-Marketing
plays a key role in the domestic market; firms learn and test e-Marketing activities on
the domestic market first, and then apply proven tools and strategies on international markets
(see model 2).
It is important to note that the archived internationalization stage has a very strong
positive effect on international competitiveness (in terms of the extended Uppsala model,
including the influence of foreign capital investment), supporting hypothesis H2 as well.
110
As was expected, the implementation of innovations is positively affected by ICT usage
in marketing and communication (supporting H3a) and with the archived internationalization
stage (supporting H3b). The moderating effect of innovativeness is more pronounced in ICT
usage in marketing and communication, than on internationalization level.
According to international competitiveness descriptors, 2 variables play a key role: selfreported competitiveness, and share of export in total sales. The number of countries to which
a firm is exporting, is more loosely connected with international competitiveness.
7.3. Model 2
As model 1 is very general, a more detailed model 2 has been devised, allowing to
explore in greater detail interconnections between descriptors of ICT usage for
communication
and
e-Marketing activities and descriptors of internationalization stage.
Greater international activity has a positive direct (supporting H2a) and indirect effect on
international competitiveness. More intense activity in international markets positively
influences the implementation of innovations (H2d supported), and rather weakly, but
statistically significant, the extent of internet communication as well as e-Marketing activity
on external markets (supporting H2b and H2c respectively).
Greater foreign capital share also positively influences international competitiveness
(hence supporting H2e), and international activity (supporting H2g). Surprisingly, the path
between foreign capital share and internet communication activity has a statistically
significant negative sign of the standardized regression coefficient, contrary to what was
hypothesized (H2f rejected), this can be explained by a less intensive need to communicate
over the internet externally, when some decisions are made on an international level by
a parent company having a substantial share of capital.
In model 2 the implementation of innovations positively influences the extent of internet
communication (supporting H3c) and directly influences e-Marketing activities on
the domestic market (supporting H3d).
Intensity of internet communication positively influences e-Marketing activities: heavily
on domestic markets (supporting H1d) and rather weakly on international markets
(supporting H1c). Seeing that many firms employ e-Marketing tools on the domestic market
first, this activity strongly influences e-Marketing activities on international markets, as firms
are learn and test e-Marketing tools and strategies on the domestic market first, and then
apply proven tools and strategies internationally.
111
Note: all path coefficients are significant at p < 0,001, except denoted a – p < 0,01 and b – p < 0,05
Fig. 2. Structure of Model 2
Rys. 2. Struktura modelu 2
The influence of domestic e-Marketing activities on international competitiveness is
negative – as hypothesized under H1b – as it increases domestic competitiveness, but the
path between international e-Marketing activities and international competitiveness has the
highest standardized regression coefficient of all the dependent variables directly connected
with international competitiveness – the influence is very strong (it supports H1a).
112
7.4. Models’ fit
Table 3 contains fit measures for the estimated models. Model 1 explains international
competitiveness quite well in terms of the explained variance – allowing to explain about
55% of the variance of this construct. Also in terms of fit measures the model is at least
acceptable: GFI, AGFI and NFI fit indices are indicating a good fit, Chi-square/df ratio and
p of Chi-square do not meet standard because of the large sample usage, also the RMSEA
value is slightly too large, exceeding 0,05 but being below 0,07.
Table 3
Estimated model fit measures
Variance
explained
Measures
of fit
Measures
International competitiveness (INT_COMP)
Internationalization stage (INT_STAGE)
ICT usage in marketing and communication (ICT_USE)
International activity (INT_ACT)
Innovation activity (INNOV)
e-Marketing activity for external markets (INT_E)
e-Marketing activity for internal markets (INT_I)
Internet communication activity (INT_COM)
Chi-square/df (below 2 or 3 is better)a
p (not significant better)b
GFI (above 0,9 is a good fit)
AGFI (above 0,8 is a good fit)
NFI (above 0,9 is a good fit)
RMSEA (0,05 or less is better)
Model 1
0,549
0,028
0,075
N/A
N/A
N/A
N/A
N/A
10,049
0,000
0,959
0,923
0,919
0,061
Model 2
0,354
N/A
N/A
0,071
0,025
0,460
0,444
0,081
4,122
0,000
0,986
0,968
0,974
0,036
Notes:
a
as suggested by Carmines and McIver (1981, p. 80) or Byrne (1989, p. 55).
b
for larger samples it is often unreasonable to have a significant p value (Jöreskog, 1969, p. 200).
The more detailed model 2 is better in terms of fit – its RMSEA value is in a preferable
range, below 0,05, and the Chi-square/df ratio is also better comparing the guidelines. Other
measures of fit also indicate an improvement over model 1.
8. Conclusion
This study, supports the hypothesis that international activities of a firm promote ICT
usage in marketing and communication, and that this usage improves a firm’s international
competitiveness. Also, the implementation of innovations has a positive (indirect) effect on
this dependent variable (Model 1).
The strongest standardized regression coefficients show a main “way” of this influence in
Model 2: the more a firm’s activities are international, and the more innovations are
113
implemented, the more intensive is its internet communication. Intensive internet
communication promotes a wider usage of e-Marketing tools, first on domestic market, next
widening to international markets with experience gained from first attempts. International
e-Marketing usage influences international competitiveness strongly, and the second variable
with strong influence is the share of foreign capital in the firm’s total capital.
This suggests some practical implications of the paper. First these results provide
direction for promoting e-marketing tools usage, in industrial policy making, as a way to
improve firms’ international and domestic competitiveness. This seems to be important for
SMEs.
A relatively low ICT/e-Marketing usage level in Lublin Province and the connection
between its exporting capabilities lead to suggest that public help programs, including
sharing knowledge, providing training programs and promoting ICT connected investments is
a way to improve exporting capabilities.
The main limitation of the study is that only one (less developed) region was investigated,
yet on the other hand, the sample size of firms was large. It would be interesting to replicate
the results creating a comparative study of different regions in terms of geographical location
and general economic development.
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Agnieszka LESZCZYŃSKA
UMCS
Wydział Ekonomiczny
Instytut Zarządzania
Tomasz ŻUREK
UMCS
Wydział Matematyki, Fizyki i Informatyki
ORGANIZATIONS’ SUSTAINABLE DEVELOPMENT
ASSESSMENT BY FUZZY LOGIC
Summary. The paper presents a method of organizations’ sustainability
assessment with the use of fuzzy logic whereby economic, environmental, and social
components are fundamental to the model. Each of the inputs is treated individually,
and the application of fuzzy logic helps provide an overall measure. The proposed
model can be used to evaluate an organization’s sustainable development level, and to
compare organizations in a specific sector.
Purpose: The paper presents a method of organizations’ sustainability assessment
with the use of fuzzy logic. The proposed model enables the evaluation of
an individual organization’s sustainable development level, but also draws
comparisons between organizations in a specific sector.
Design/methodology/approach: In this paper a multistage fuzzy reasoning model
is presented to assess an organization’s sustainability. The model is based on
3 fundamental components: economic, environmental and social. Each of the inputs is
treated individually and then combined with the aid of fuzzy logic to provide
an overall measure.
Findings: The verification of the method shows that it can be easily applied.
The main advantages of the method used here is the intuitive understandability of
the process of reasoning, its results interpretation, and in its objectivity. The
flexibility of the method allows for a change of the number of indicators, the use of
selected indicators, the use of indicators expressed in different units of measurement,
as well as introducing weights to their assessment.
Originality/value: According to our knowledge a similar method doesn’t exist.
A well-developed system of macroeconomic evaluation cannot be easily applied to
the goals of companies. In addition, the majority of the existing proposed methods to
assess sustainable development is inadequate to evaluate that of organizations’.
The proposed method in this paper is essentially important for the practice of
A. Leszczyńska, T. Żurek
118
management of organizations. It enables the evaluation of an individual
organization’s sustainable development level, but also compares organizations within
a specific sector. The results it provides may become a reference for repair plans,
ecological programs and used in the process of strategic decision-making.
Keywords: Sustainable development, fuzzy logic
OCENA ZRÓWNOWAŻONEGO ROZWOJU ORGANIZACJI
Z WYKORZYSTANIEM WNIOSKOWANIA ROZMYTEGO
Streszczenie. W artykule przedstawiono metodę oceny poziomu
zrównoważonego rozwoju organizacji z wykorzystaniem wnioskowania rozmytego.
Podstawę metody stanowi ocena aspektów środowiskowych, społecznych i
ekonomicznych. Proponowane rozwiązanie umożliwia ocenę poszczególnych
organizacji, jak też dokonywanie porównań pomiędzy nimi. Elastyczność metody
pozwala na zmianę liczby wskaźników, wykorzystywanie wybranych parametrów
oraz wprowadzenie wag.
Słowa kluczowe: rozwój zrównoważony, wnioskowanie rozmyte
1. Introduction
According to the concept of sustainable development, a company is sustainable if its
practices contribute positively to the welfare of a society and have as small an environmental
impact as possible. The assessment of a degree of sustainable development is the key
condition of management in this area allowing for the creation of a sustainable development
program for a company as well as an evaluation of a company in this respect. A high value
for the overall sustainability means that companies understand their social role and accept
the principles of transparency and accountability. Some measures or, at least, indicators of
sustainability exist, but their effectiveness cannot be assessed. A well developed system of
macroeconomic evaluation cannot be easily applied to the goals of companies. On the other
hand, company-oriented evaluation systems are either qualitative or do not allow for direct
comparisons. With the Rio +10 summit in Johannesburg in the summer 2002, a preliminary
evaluation of the achievements of business in moving towards a more sustainable
development path seemed to be both necessary and appropriate. At the same time,
the majority of the proposed methods of assessing sustainable development is inadequate to
evaluate that level objectively.
Organizations’ sustainable development…
119
The paper presents a multistage fuzzy reasoning model to assess an organization’s
sustainability. The model comprises of 3 fundamental components: economic, environmental,
and social. Each of the inputs is treated individually and the application of fuzzy logic helps
provide an overall measure. The following two basic features justify the use of fuzzy logic
reasoning: (a) fuzzy logic has the capacity to deal with complex and polymorphous concepts,
which are not amenable to a straight forward quantification and contain ambiguities.
In addition, reasoning with such ambiguous concepts may not be clear and obvious, but
rather fuzzy; (b) fuzzy logic provides mathematical tools to handle ambiguous concepts and
reasoning. For these reasons, the use of the natural language and linguistic values based on
the fuzzy logic method seems more suitable to assess sustainability.
The authors do not intend to propose a new set of indicators to assess sustainability-related
performance of an organization, but merely suggest a different mechanism to use the indicators
already described in literature. The proposed model can be used to evaluate an organization’s
sustainable development level, and to compare organizations in a specific sector.
The structure of this paper is as follows. Sections 2 and 3 outline the theoretical
background behind the concept of sustainability at the macro- and micro-economic levels,
and the problems of corporate sustainability assessment; the next part discusses the
possibility to apply fuzzy logic to evaluate sustainable development. The paper focuses
mainly
on
the method for assessing sustainability performance in organizations. The last part provides
verification of the method proposed.
2. Defining Sustainability
Although the essence of the concept of sustainable development is clear enough, the exact
interpretation and definition of sustainable development have caused heated discussions.
Difficulties related to its definition show that sustainable development is a complex and
multidimensional issue, combining efficiency, equity and intergenerational equity based on
economic, social, and environmental aspects. This paper adopts the definition included in
the Brundtland Report, which seems to capture the idea of sustainable development best.
The study postulates that sustainable development is the kind of development that satisfies
the current needs without endangering the future generations to satisfy their own.
This definition is the most frequently cited one and seems to be more exhaustive than others.1
Five years after the publication of the Brundtland Report the United Nations Conference for
1
Ciegis R., Simanskiene L.: The concept of sustainable economic development and indicators assessment.
“Management theory and studies for rural business and infrastructure development”, No. 21 (2), 2010,
http://baitas.lzuu.lt/~mazylis/julram/21/34.pdf.
120
Environment and Development globally accepted the vision of sustainable development.
As a general concept, sustainable development encompasses three fundamental interrelated
and complementary approaches: economic, environmental, and social. Economic
sustainability is fundamental to financial success. In the long run, for instance,
an organization simply cannot survive if its expenditure exceeds the income it generates.
Social sustainability embodies the humanitarian context and relates to issues of poverty,
income inequality, disease, education, and access to clean water. Environmental
sustainability refers to the impact on the quality and quantity of natural resources, and
improved management of pollution and emissions.2
Sustainability development is interpreted from the point of view of three characteristics:
balance, durability, and self-support. Those characteristics are strongly correlated with each
other and, in turn, refer to three aspects:
− structural – refers to the necessity of maintaining correct proportions of
the development structure, of balancing the need to develop and the need to protect
the environment,
− temporal (the quality of durability),
− creating resources and stimuli for further development (the quality of self-support).3
3. Corporate Sustainability
The WCED definition as well as the influences from the strategy and management
literature have led to a variety of definitions of organization-related sustainability. These
definitions vary as to the degree to which they classify corporate sustainability as either
ecological concern4 or as social responsibility of an organization.5 They also broaden
the concept of corporate sustainability to integrate corporate economic activities with
organizational concern about environment. This study assumes that corporate sustainability
can be defined as adopting business strategies and activities that meet the needs of
the enterprises and its stakeholders today while protecting, sustaining, and enhancing
2
Townsend C.R.: Ecological applications: Towards a sustainable world. Blackwell, Oxford 2008.
Borys T.: Agenda 21 w regionie sudeckim (Agenda 21 in sudecki region). “Gospodarka w Sudetach”, Vol. 5,
No. 3, 1997.
4
Shrivastava P.: The role of corporations in achieving ecological sustainability. “Academy of Management
Review”, Vol. 20, No. 4, 2005, p. 936-960.
5
Carroll A.B.: Corporate Social Responsibility: Evolution of a definitional construct. “Business and Society
Review”, Vol. 38, No. 3, 1999, p. 268-295.
3
121
the human and natural resources needed in the future. Sustainability development enriches
the older CSR concepts by providing a broader normative anchor and a guiding agenda.6
The study also includes the concept of eco-efficiency – a win-win situation created by
integrating economy and ecology through the efficient use of natural resources.7 Thus,
corporate sustainability entails incorporation of the objectives of sustainable development,
i.e. social equity, economic efficiency and environmental performance into a company’s
operational practices. Sustainability assumes abandoning a narrow version of the classical
economic theory and developing corporate strategies which include goals that go beyond just
maximizing shareholders’ interests.8 Attention is directed to the demands of a wider group of
stakeholders,
since
the
firm’s
success
depends
on
stakeholders’
satisfaction.9
The relationships between organizations, society and the environment are complex and
characterized by the dialectic between the responsibility of an organization to maximize
returns to its shareholders and the benefits to a broader range of stakeholders, including
the environment. By embedding sustainability across an organization’s functions, one can
address some of the negative impacts of economic growth. The principal problem in this
context is how to translate the general principles of sustainable development into business
practice. From a pragmatic point of view, corporate sustainability should start with the three
dimensions rather than with the traditional ethical categories such as justice.10 The shift
towards sustainability can be understood in business as an issue-driven heuristic multicriteria approach.11 For example, economic capital consists of financial capital, tangible
capital, and intangible capital. Ecological capital includes the subtypes of natural resources
and services provided by the ecosystem. Social capital refers to security, social cohesion, and
human rights. Given the scope of the notion of capital itself, implementing sustainability
development into business practices requires a system approach whereby corporate
sustainability is not considered as a mere “add on”, but is systematically integrated into all
business activities. It is necessary to include environmental and social aspects in
the company’s reporting procedures or to measure sustainability performance and to evaluate
progress in that area. If sustainability is an appropriate philosophy for addressing social and
6
Van Marrewijk M.: Corporate sustainability and sustainable development, [in:] Allouche J. (ed.): Concepts,
Accountability and Reporting. Palgrave Macmillan, Basingstoke 2006, p. 73-98.
7
Kleine A., von Hauff M.: Sustainability-Driven Implementation of Corporate Social Responsibility:
Application of the Integrative Sustainability Triangle. “Journal of Business Ethics”, No. 85, 2009, p. 517-533.
8
Lopez M.W., Garcia A., Rodriquez L.: Sustainable development and corporate performance: a study based on
the Dow Jones Sustainability Index. “Journal of Business Ethics”, No. 75, 2007, p. 285-300.
9
Buchholtz R.A., Rosenthal S.B.: Toward a contemporary conceptual framework for stakeholder theory.
“Journal of Business Ethics”, Vol. 58, No. 1, p. 137-148.
10
Kleine A., von Hauff M.: op.cit.
11
Schaltegger S., Burritt R.: Corporate sustainability, [in:] Folmer H., Tietenberg T. (eds.): The international
yearbook of environmental and resource economics – a survey of current issues. Edward Elgar, Cheltenham
2005, p. 185-222.
122
environmental issues, we need some method or a set of measurements to monitor the steps
taken with a view to reaching this goal. Such metrics will allow all stakeholders to effectively
evaluate progress towards sustainable development.12
4. Assessing Corporate Sustainability
The techniques to measure social impact have continuously been developed for the last
25 years, i.e. since the concept of this form of accounting has come into existence.13
However, the opportunity to discuss that businesses, through their actions, affect their
external environment and that they should take this environment into account often exceeded
the opportunity to make practical suggestions for measuring such an impact. At the same
time, alongside the technical implementation of social and environmental accounting,
a philosophical basis for such an assessment was developing. Nowadays, many companies
recognize and monitor sustainability performance using indicators that provide information
on how the company contributes to sustainable growth. The development of sustainability
performance measurement is driven by interests of various regulatory data requirements,
demands from various pressure group for detailed information, the internal environmentrelated decisions and the requirements of financial institutions.14
Measuring corporate sustainability grew out of environmental accounting and
environmental reporting. A prerequisite to understanding sustainable development is
the construction of green accounts and sustainability indicators. Referring to the mainstays of
the concept, the assessment of sustainable development covers performance in
the environmental, social and economic areas. The environmental results can be defined by
means of a company’s physical performance with regard to environmental aspects.
An environmental aspect is defined here as an element of an organization’s activities and/or
products that interact with the environment. Economic results refer to short-term profitability
operationalized in terms of the generally accepted financial performance indicators. With
regard to social performance, the measurement debate focuses on the human rights, health
and safety at work, and diversity of workers.
12
Husey D.M., Kirsop P.L., Meissen R.E.: Global Reporting Initiative Guidelines: an evaluation of sustainable
development metrics for industry. “Environmental Quality Management”, Autumn, 2001, p. 1-19.
13
Aras G., Crowther D.: Corporate Sustainability Reporting: a study of disingenuity? “Journal of Business
Ethics”, No. 87, 2009, p. 279-288.
14
Kinderyte L.: Analysis and Comparison of Methodologies for Corporate Sustainability Assessment.
Environmental Research. “Engineering and Management”, Vol. 4, No. 46, 2008, p. 66-75.
123
Numerous sustainability indicators have been suggested so far. For example, the Center
for Waste Reduction Technologies of AIChE15 and the Institution of Chemical Engineers16
published a set of their indicators. Veleva and Ellenbecker17 discussed the indicators of
sustainability production, suggesting a methodology of core and supplemental indicators for
measuring progress of companies towards sustainable development. Figge and Hahn18
proposed an integrated measure of sustainability based on a monetary assessment of how
much the change of social and environmental performance of a company between two
periods has contributed to making the national economy more sustainable. Azapagic19
developed
a framework for sustainability indicators for performance assessment of mining and minerals
industry, which is compatible with the general indicators proposed by GRI. Krajnc and
Glavic20 collected and developed a standardized set of sustainability indicators for
companies. The above-mentioned frameworks suggest using numerous sustainability
indicators, which are generally measured in largely diverse units. While it is important to
assess sustainability with several indicators, it may sometimes be difficult to make business
decisions and comparisons among companies based on a large number of performance
measurements.21
In recent years international research has focused on the development of composite indices
mostly for cross-national comparisons of economic, societal, environmental and sustainable
progress of nations. Despite the indicators already developed, no efficient method for
integrated sustainability assessment at the company level is available. In addition, Veleva,
Ellenbecker indicate that:22
− the development of the majority of indicator frameworks is still underway. Such
indicators continue to be the subject of discussions, tests and refinement;
− use of materials and environmental protection are best covered in all review
frameworks. Social issues, workers and products receive least attention in existing
indicator frameworks;
15
AIChE. Center for Waste Reduction Technologies, Focus Area Sustainability Metrics, www.aiche.org/cwrt/
pdfBaselineMetrics,pdf, 2004.
16
IChemE. Sustainable Development Progress Metrics Recommended for use in the Process Industries,
www.ichme.org/sustainability/metrics.pdf, 2002.
17
Veleva V., Ellenbecker M.: Indicators of sustainable production framework and methodology. “Journal of
Cleaner Production”, No. 9, 2001, p. 519-549.
18
Figge F., Hahn T.: Sustainable Value Added – Measuring Corporate Contributions to Sustainability Beyond
Eco-Efficiency. “Ecological Economics”, No. 48, 2004, p. 173-187.
19
Azapagic A.: Systems approach to corporate sustainability. “Trans IChemE”, No. 81, part B, 2003.
20
Krajnc D., Glavic P.: Indicators of sustainable production. “Clean Technol. Environ. Policy”, No. 3-4, 2003,
p. 279-288.
21
Krajnc D., Glavic P.: How to compare companies on relevant dimensions of sustainability. “Ecological
Economics”, Vol. 55, No. 4, 2005, p. 551-563.
22
Veleva V., Ellenbecker M.: op.cit.
124
− most indicator frameworks attempt to address key global issues, yet these are
typically environmental;
− most frameworks attempt to address economic performance, but they invariably use
traditional
economic
indicators
that
cannot
possibly
adequately
measure
sustainability.
5. Preliminary Principles of the Method
The following method, basing on the previous studies, assumes that sustainable
development covers ecological, economic, and social areas. Therefore:
where:
SD – sustainable development level of an organization,
Econ – result for the economic sphere,
Ecol – result for the ecological sphere,
Soc – result for the social sphere,
a, b, and c – coefficients.
The a, b, c values represent the relative significance of each sphere in the assessment of
the overall SD level. The equal weight of these coefficients was assumed, which follows
from the very essence of sustainable development. Thus, in further considerations, the values
of these coefficients were left out.
The three basic areas are determined by several components (indicators), whose number,
depending on the method of assessment or the method of SD reporting, varies from a few to
a few dozen. Following the rules and guidelines of GRI, the present paper adopts
the indicators proposed in this method. During the procedure, all basic indicators pass
through a filter that normalizes their values [0, 1]. The normalized value is:
,
a)
b)
c)
,
min ≤ x ≤ a
a≤x≤b
,
b ≤ x ≤ max
A graphic representation is below (figure 1).
125
y
min
a
b
max
Fig. 1. Normalization of the basic indicator x
Rys. 1. Normalizacja wskaźnika x
The graphic values for the normalization process are presented in table 1.
Table 1
Indicator
Dust pollution emissions
Gas pollution emissions
Total energy
consumption
Number of protected
species exposed to risk
by a company’s activity
Total water consumption
Total amount of
discharged sewage
Min or b
Max or a
Ecological sphere
Average for a sector
Value obtained by
[kg/t]
a company burdensome
to the environment or
the worst value obtained
by a company from this
region [kg/t]
Value obtained by
[kg/t]
region [kg/t]
Value obtained by
[MWh/t]
region [MWh/t]
0
Non-limited
[m3/t]
[m3/t]
Value obtained by
region [m3/t]
Value obtained by
region [m3/t]
Interpretation
x ≤ b→ SD = 1
x > max → SD = 0
x ≤ b → SD = 1
x > max → SD = 0
x ≤ b → SD = 1
x > max → SD = 0
x = 0 → SD = 1
x > 0 → SD = 0
x ≤ b → SD = 1
x > max → SD = 0
x ≤ b → SD = 1
x > max → SD = 0
126
con. tab. 1
Produced waste
[kg/t]
Percentage of waste
recycled
Expenditure on fixed
assets related to
environmental protection
Number of
environmental fines
50%
Value obtained by
region [kg/t]
90%
[thousand
PLN/company]
0
Average for industry
+ 20% [thousand
PLN/company]
Non-limited
Sales revenue
State financial support
Total liabilities
Fixed investment
Investment
Taxes
Economic sphere
[million PLN/company]
+ 20% [million
PLN/company]
0
1,8% of added value in
a sector23 for a company
0
[million]
+ 20% [million
PLN/company]
+ 20% [million
PLN/company]
0%
35%
Social sphere
Maximum gross salary in
a sector [PLN]
x ≤ b → SD = 1
x > max → SD = 0
x ≤ 50% → SD = 0
X > 90% → SD = 1
x ≤ min → SD = 0
x > a → SD = 1
x = 0 → SD = 1
X > 0 → SD = 0
x < min → SD = 0
x ≥ a → SD = 1
x ≥ max → SD = 0
x = 0 and x > max → SD
=0
x < min → SD = 0
x ≥ a → SD = 1
x < min → SD = 0
x ≥ a → SD = 1
x = 0% and x ≥ 35% →
SD = 0
x є (0, 35) → SD = 1
Employees’ gross
monthly salary
Number of days of an
employee’s absence from
work
Occupational accidents
Average salary in
a sector [PLN]
0
x ≤ min → SD = 0
x ≥ max → SD = 0
x = 0 → SD = 1
x ≥ max → SD = 0
0%
Proportion of
employees-trade union
members
Number of women
employed in
management positions
Contribution to the
development of local
communities
0%
15% of all employees
10%
50%
x < 10% → SD = 0
x > 50% → SD = 0
0,1% of average sales
revenue for a company
[in million]
0,26% of average sales
revenue for a company
[in million]
x < min and x > max →
SD = 0
x ≥ max → SD = 0
x = 0 → SD = 1
x = 0 → SD = 0
x > max → SD = 0
The values obtained for individual spheres are the sum of the normalized values of
indicators and respective weight coefficients. For example, the calculations for the ecological
sphere are as follows:
127
Ecol = a1 dusts + a2 gases + a3 water consumption + a4 sewage + a5 electric energy + a6
number of endangered species + a7 waste + a8 recycling + a9 environmental protection
expenditure + a10 number of fines
Ecol = a1 · D + a2 · G + a3 · W + a4 · S + a5 · E + a6 · N + a7 · Ws + a8 · R + a9 · P + a10 · F
where:
D – dust pollution emission, G – gas pollution emission, E – total energy consumption,
W – total water consumption, S – sewage, N – number of endangered species, Ws – total
waste, R – recycling, P – environmental protection expenditure, F – number of fines.
Weights associated with coefficients a1, a2, …, an, may differ depending on the sector or
on the significance of a given component to the company. They are determined by the Delphi
method, AHP, and ranking lists. The authors assume that the sum of the coefficients a1 – an
amounts to 1, while their values are equal (for example, for the ecological sphere they are:
a = 1/10 = 0,1). The values for the economic, ecological and social spheres, calculated in this
way, successively undergo fuzzification.
6. Fuzzy Reasoning
The method described above allows for the estimation of the overall value for each of
the three spheres of an organization’s activity (economic, social, and environmental). Their
influence on the overall sustainability assessment can be described with “if… then…” rules.
For example: “if economy is strong and social development is medium, and environmental
development is medium, then sustainable development is average”. In order to use such rules
to assess the overall final sustainability value, a method should be developed to transform
numerical values into linguistic evaluation, to perform the process of reasoning, and to
transform the conclusion into a specific numerical value of a sustainability indicator.
The advantage of such a solution would be its intuitiveness and the clarity of rules, while
the disadvantage would consist in the complexity of translation between quantitative and
qualitative values. One of the most interesting tools employed for such tasks is fuzzy logic.
Fuzzy logic stems from the fuzzy set theory developed by L. Zadeh.24 This theory is based on
23
Warbiński M.: Pomoc państwa dla przedsiębiorstw w ramach UE [State support for enterprizes in EU],
www.rcie.lodz.pl/info/dokumenty/03_przewodnik/16_msp/bp11.pdf.
24
Zadeh L.: Fuzzy Set. “Information and Control”, Vol. 8, No. 3, 1965, p. 338-353; Zadeh L.: Outline of a new
approach to the analysis of complex systems and decision process. IEEE on Systems, Man and Cybernetics,
128
the assumption that the membership of elements in a set may be partial, i.e. an element either
belongs or does not belong to a set, but it may also belong to a set to a certain degree.
The degree of membership is usually defined as μ and it is a number from the interval <0;1>
(where 0 indicates that an element does not belong to a set, while 1 indicates that an element
belongs to a set). Fuzzy sets are excellent tools to represent the so-called linguistic variables
or concepts without clearly defined boundaries. Therefore, they may be useful to represent
the evaluation of a company’s activity and its overall sustainability assessment. The fuzzy set
theory became the basis for fuzzy logic and for the operations corresponding to, among
others, the sum operation (called s-norms), the product operation (called t-norms), or
implication known from classical logic and set theory. Also, the inference rules, among
others the modus ponens rule, were adapted to the principles of fuzzy logic.
The process of fuzzy reasoning used in this paper includes several stages:
1. determination of linguistic variables, their values (states) and membership functions;
2. determination of rules;
3. fuzzification or transforming numerical values of individual indicators into fuzzy
values of linguistic variables;
4. inference:
− calculation of the degree of premise fulfillment in individual rules,
− calculation of the degree of rule fulfillment (implication operators),
− calculation of the conclusion membership function (in inferences involving
several rules, the max-min rule is used);
5. defuzzification or transforming fuzzy values of the linguistic variables used to
evaluate sustainability into specific numerical values of sustainability indicators.
The first step in the implementation of fuzzy reasoning is the determination of decision
variables and of their values as well as the establishment of the inference rules. Since three
initial indicators are necessary to assess sustainability, there will be three linguistic variables
to describe them. Each of them has three values: strong, medium, and weak. The membership
functions for each of these values are trapezoid functions (fig. 2).
SMC-3, 1973, p. 28-44; Zadeh L.: The concept of linguistic variable and its application to approximate
reasoning – I, II. “Information Sciences”, No. 8, 1975, p. 199-249, 301-357.
129
Fig. 2. Membership functions of fuzzy values of the linguistic variable of “economic
development”
Rys. 2. Wartości lingwistycznej zmiennej „Rozwój ekonomiczny”
As all the three indicators are normalized, the shape of the membership functions for
individual values (states) is the same for all the linguistic variables.
The values of the linguistic assessment of sustainable development were divided into five
categories (very bad, bad, medium, good, and very good). After defuzzification the result is
given as an abstract value of the indicator form the interval <1-100> (fig. 3).
Fig. 3. Membership functions of fuzzy values of the linguistic variable of “sustainability”
Rys. 3. Wartości lingwistycznej zmiennej „Poziom zrównoważonego rozwoju”
130
The rules in the list below (table 2) represent the influence of individual indicators on
the overall assessment of sustainability. Abbreviations: S – strong, M – medium, W – weak,
VB – very bad, B – bad, A – average, G – good, VG – very good).
Table 2
Influence of individual indicators on the overall assessment of sustainability
Environment
S
S
S
S
S
S
S
S
S
M
M
M
M
M
M
M
M
M
M
W
W
W
W
W
W
W
W
W
Social
S
S
S
M
W
M
M
W
W
S
M
M
M
S
S
W
W
S
W
S
M
W
M
M
W
W
S
S
Economic
S
M
W
S
S
M
W
W
M
S
S
W
M
M
W
S
M
W
W
S
S
S
M
W
M
W
M
W
Sustainability
VG
G
A
G
A
A
B
VB
B
VG
A
B
A
G
A
B
B
A
VB
G
A
B
B
B
B
VB
A
B
Fuzzification consists in the transformation of crisp values of indicators into fuzzy values
of linguistic variables. For instance, if the value of economic development is E = 0,25, then
economic development is weak, E = weak, with the membership coefficient μE=weak = 0,75,
and E = medium, with the membership coefficient μE=medium = 0,25 (see fig. 1). Other
indicators are transformed into fuzzy linguistic values in the same way.
Since the logical product (conjunction ’and’) and implication were used in the rules, it is
necessary to determine the functions to represent them. In the proposed method, the ‘and’
functor is expressed as the logical product of three fuzzy sets defined on three different
universa. The simplest and most frequently used formula is applied here:
131
μX1∩X2∩X3(a1,a2,a3) = min[μX1(a1),μX2(a2),μX3(a3)]
where:
X1 – is the linguistic value expressing the level of economic development assessment;
X2 – is the linguistic value expressing the level of environmental development assessment;
X3 – is the linguistic value expressing the level of social development assessment;
a1, a2, a3 – are the values of the assessment of economic, environmental and social
development;
μX1(a1) – is the degree of membership of the value a1 to the set X1;
μX1∩X2∩X3(a1,a2,a3) are the degrees of membership of the values a1, a2 i a3 to the set that is
the logical product of the sets X1, X2 and X3.
The implication used was the Mamdani fuzzy implication:25
μX→W(x,y) = min[μX(x),μW(y)]
The degree of membership of the aggregate conclusion for several rules is determined
with the max-min rule:
μsust(y) = maxi [min(μXi(x), μWi(y))]
where:
μsust(y) – is the degree of membership of the final conclusion,
μXi(x) – is the degree of membership of i rule requirements,
μWi(y) – is the degree of membership of i rule conclusion.
Generally, the reasoning is based on the classical mechanism described, among others,
in Lachwa26 and in Zimmerman.27 A similar application and almost identical mechanism of
reasoning was used in Liu.28 Defuzzification or the transformation of a fuzzy conclusion into
a determined value of the sustainability indicator, was performed with the Center of Gravity
function.
25
Zimmermann H.: Fuzzy set theory and its applications. Kluwer Academic Publishers, Boston 2001.
Lachwa A.: Fuzzy world of sets, numbers, relations, rules and decisions, Akademicka Oficyna Wydawnicza
Exit, Warszawa 2001.
27
Zimmermann H.: op.cit.
28
Liu F.R.K.: Evaluating Environmental Sustainability: An Integration of Multiple-Criteria Decision-Making
and Fuzzy Logic. “Environ Manage”, No. 39, 2007, p. 721-736.
26
132
7. Verification of the Method
The proposed method was verified by applying it to a company operating in the paper
industry. The assessed organization is located in central EU. The company produces cellulose
pulp, paper, and cardboard. Its main source of emissions is the sodium boiler, although
the company meets the nominal BAT requirements for an integrated manufacturer.
The company’s production in 2010 reached 8,927 tons, which does not significantly differ
from the average production of an organization in this industry. The assessment of
a sustainable development level was performed based on data from 2010. We obtained
statistical data on results from the paper industry and from the so-called companies
burdensome to the environment. Table 3 lists the numerical values of individual indicators.
Table 3
Limit values and results obtained by the company
Indicator
Dust pollution emissions
Gas pollution emissions
Total energy consumption
Number of protected species
exposed to risk by the company’s
activity
Total water consumption
Total amount of discharged
sewage
Produced waste
Percentage of waste recycled
Expenditure on fixed assets related
to environmental protection
Number of environmental fines
Sales revenue
State financial support
Total liabilities
Fixed investment
Investment
Taxes
Employees’ gross monthly salary
Number of days of an employee’s
absence from work
Occupational accidents
Proportion of employees-trade
union members
Number of women employed in
management positions
Contribution to the development
of local communities
Min
Max
Ecological sphere
0,36
1,39
0,49
0,58
0,61
1,2
0
Value obtained by
the company
Normalized
value
0,4
0,55
1,1
0
0,96
0,33
0,16
1
18,1
16,1
59,9
52,2
33
47
0,64
0,14
23
50
35,1
60
90
42,1
42
65
22
0,48
0,37
0
0
1
28,2
0,017
8,8
1
3,0
19
0,4
1
2900
1
0
Economic sphere
28,1
33,7
No data
0
10,6
No data
2,8
3,3
0
19
Social sphere
2782,93
4652,7
No data
0
0
1,7
15
1
4
0,41
0,6
10
50
16
0,15
0,028
0,073
0,01
0
133
On the basis of the above data, the following evaluation of the spheres was obtained:
− ecological 0,508,
− economic 0,604, and
− social 0,432.
The next stage of the method is fuzzification of the numerical indicators – ie. those
indicators obtained above in the assessment of the companies’ different spheres – by
transforming them into fuzzy values of linguistic variables.
The economic sphere was assessed as medium with the membership coefficient
at μ = 0,98, and as strong with the membership coefficient at μ = 0,02 (figure 4).
Fig. 4. Fuzzification of the economic sphere assessment indicator of the analyzed company
Rys. 4. Proces fuzyfikacji wyników ekonomicznych analizowanego przedsiębiorstwa
Social sphere is medium standing at μ = 1,0 (fig. 5).
134
Fig. 5. Fuzzification of the social sphere assessment indicator of the analyzed company
Rys. 5. Proces fuzyfikacji wyników społecznych analizowanego przedsiębiorstwa
Ecological sphere was assessed as medium standing at μ = 1,0 (fig. 6).
Fig. 6. Fuzzification of the ecological sphere assessment indicator of the analyzed company
Rys. 6. Proces fuzyfikacji wyników środowiskowych analizowanego przedsiębiorstwa
135
In the reasoning process we applied the following two rules:
1. If the assessment of the economic sphere is medium, the assessment of the social
sphere is medium, and the assessment of the ecological sphere is medium, then
the overall sustainability assessment is average.
2. If the assessment of the economic sphere is strong, the assessment of the social sphere
is medium, and the assessment of the ecological sphere is medium, then the overall
sustainability assessment is average.
The conclusion of both rules is the average assessment of sustainability, and therefore the
result of reasoning is a fuzzy set based on the membership function of the value ‘average’ of
the linguistic variable ‘sustainability’; it has the following form (fig. 7).
Fig. 7. The reasoning result
Rys. 7. Wyniki wnioskowania
The next step is defuzzification, transformation of the initial fuzzy set into a specific
numerical value. To achieve this, the Center of Gravity function was used. The final
sustainability value after defuzzification and normalization to the interval <0;1> is 0,50.
8. Conclusion
Fuzzy logic provides a useful framework for assessing and managing organizational
sustainability. Relative to the non-stochastic method, it 1) accounts for errors in measuring
136
indicators or weights, and 2) addresses uncertainty regarding the relationship between
the attributes and levels of sustainability. The application of fuzzy sets and reasoning to
sustainability assessment makes it possible to apply simple and intuitively understandable
“if… then…” rules in processing a number of indicators operating on various universa,
simultaneously obtaining a specific numerical sustainability assessment at the output.
The main advantages of the method used here are intuitive understandability of the process of
reasoning and result interpretation, objectivity and high customizability. For example, to
change the influence of individual indicators on the overall evaluation, it is sufficient to
slightly change the membership functions of the respective linguistic variables without
changing the very mechanism of reasoning.
Flexibility of the method allows for a change of the number of indicators, the use of
selected indicators, the use of indicators expressed in different units of measurement, as well
as introducing weights to their assessment (although in the “original” version of the method,
weights were not included). Unfortunately, those advantages are achieved at the cost of high
complexity of calculations related to fuzzification, reasoning and defuzzification of the value
of indicators. An important feature is the non-linear influence of the changes in the values of
individual indicators on the overall sustainability assessment. Generally, the sensitivity of
the overall sustainability assessment to changes in initial values of indicators is strongly
dependent on the number of states of linguistic variables and on the shape of their
membership function.
The proposed method is essentially important for the practice of management of
organizations. It may be used to assess the level of sustainable development of
an organization only on the basis of its economic, ecological, and social results. It does not
require in-depth knowledge of causal relationships within sectors or on the market.
The results it provides may become a reference for repair plans, ecological programs, and in
the process of strategic decision-making. At the same time, due to the annual updating of
the limit values, the results reflect dynamic changes occurring in the company and in
the industry in which it operates. Contrary to other methods, our proposal makes use of
the limit value parameters which are external to the organization. As a result, the method has
a high level of objectivity and can therefore be used in comparing different organizations.
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Agnieszka BARUK
Technical University of Lodz
Anna IWANICKA
Tomasz GRUSZECKI
University of Life Sciences in Lublin
CUSTOMER KNOWLEDGE MANAGEMENT AS A CATALYST
FOR SUCCESS IN A NICHE MARKET
Summary.
Purpose
The main cognitive objective of this article is to define the concept of customer
knowledge management and knowledge management about customers. Furthermore,
the aim is to determine the role of customer knowledge management and knowledge
management about customers of companies who are in a niche market. However,
the main empirical aim is to define and analyse individual customers' knowledge on
selected food products and to identify and analyse their expectations regarding
the availability of this knowledge. The aim is also to develop a model of customer
knowledge management whose implementation would increase the chances of
a company to achieve success in the market.
Design/methodology/approach
In order to achieve the cognitive aim, the critical-cognitive method was used to
study literature in management, marketing, psychology and sociology. However, to
achieve the practical aim, the following methods were used: a primary survey
conducted among the respondents representing the final buyers (for primary data),
statistical analysis (including structural analysis and factor analysis) providing
interpretation of results, and comparative analysis to compare the theoretical
assumptions with the facts existing on the niche market. The geographical scope of
the primary studies covered the entire territory of Poland and the time period was over
the year 2011. The study involved over 2,000 respondents from all 16 provinces
(in proportion to their population). Finally, 1969 survey questionnaires were used for
the analysis.
140
A. Baruk, A. Iwanicka, T. Gruszecki
Findings
Among the main conclusions there are the following:
− respondents' information expectations were not met by the sellers, resulting in
a low level of knowledge about the analysed niche products;
− the consequence of negligence in meeting the information expectations of
customers provides virtually no chance to prepare and implement a program of
customer knowledge management, let alone customer knowledge
management.
Originality/value
The originality of the article is attributed to the choice of customer knowledge
management issues, which were shown for the first time to companies operating in
the niche market, which in this study is the market for lamb and lamb food products.
The empirical value is also apparent from the analysis of the results of the primary
research which covered the entire country for the first time. What is also valuable is
the creation of a customer knowledge management model that could be implemented
not only on this market, but also on other markets of other consumer goods, including
niche markets.
Keywords: customer knowledge management, niche market
ZARZĄDZANIE WIEDZĄ KLIENTA JAKO KATALIZATOR SUKCESU
NA RYNKU NISZOWYM
Streszczenie.
Cele
Głównym celem poznawczym artykułu jest zdefiniowanie koncepcji zarządzania
wiedzą klienta i zarządzania wiedzą o kliencie oraz określenie roli zarządzania
wiedzą klienta i zarządzania wiedzą o kliencie w działalności rynkowej
przedsiębiorstwa funkcjonującego na rynku o charakterze niszowym. Natomiast
głównym celem empirycznym jest zidentyfikowanie i analiza poziomu wiedzy
odbiorców indy-widualnych dotyczącej wybranych produktów spożywczych oraz
zidentyfikowanie
i analiza ich oczekiwań związanych z dostępnością tej wiedzy, jak również
opracowanie modelu zarządzania wiedzą klientów, którego implementacja
zwiększyłaby szanse przedsiębiorstwa na osiągnięcie sukcesu rynkowego.
Metody/podejście
Do realizacji celu poznawczego została wykorzystana metoda analizy krytycznopoznawczej literatury przedmiotu z zakresu zarządzania, marketingu, psychologii
i socjologii. Natomiast do realizacji celu praktycznego były wykorzystane następujące
metody badawcze: pierwotne badania ankietowe przeprowadzone wśród
respondentów reprezentujących nabywców finalnych służące zebraniu danych
pierwotnych, analiza statystyczna (w tym analiza strukturalna, analiza czynnikowa)
służąca interpretacji uzyskanych wyników, analiza porównawcza służąca porównaniu
Customer knowledge management…
141
założeń teoretycznych ze stanem faktycznym istniejącym na rynku niszowym. Zakres
geograficzny badań pierwotnych obejmował obszar całej Polski, a zakres czasowy
2011 rok. Badaniami objęto ponad 2000 respondentów ze wszystkich 16 województw
(proporcjonalnie do liczby ich mieszkańców), z czego ostatecznie do analizy
wykorzystano 1969 kwestionariuszy ankiety.
Wnioski
Wśród podstawowych wniosków można wymienić:
− oczekiwania informacyjne respondentów nie były spełniane przez oferentów,
czego konsekwencją był niski poziom wiedzy badanych na temat
analizowanych produktów o charakterze niszowym;
− respondenci byli świadomi dysponowania za małymi zasobami
informacyjnymi, wykazując jednocześnie relatywnie dużą otwartość na
przyswajanie znacznie większej ilości informacji, których otrzymanie jest
warunkiem koniecznym wygenerowania niezbędnej wiedzy;
− oferenci popełniają zatem wyraźne błędy, dopuszczając do wystąpienia luki
wiedzy wśród klientów;
− następstwem zaniedbań w zakresie spełniania informacyjnych oczekiwań
odbiorców jest praktyczny brak możliwości przygotowania i implementacji
programu zarządzania wiedzą o klientach, a tym bardziej zarządzania wiedzą
klientów;
− jednym z podstawowych warunków do przeprowadzenia tych działań jest
bowiem identyfikowanie oczekiwań nabywców i aktywne ich zaspokajanie,
zgodnie z założeniami orientacji marketingowej.
Wartość poznawcza/oryginalność
O oryginalności artykułu decyduje wybór problematyki zarządzania wiedzą
klienta, która po raz pierwszy została ukazana w odniesieniu do przedsiębiorstw
funkcjonujących na rynku niszowym, jakim jest rynek jagnięciny w Polsce. Wartość
merytoryczna artykułu wynika także z analizy rezultatów badań pierwotnych, którymi
w odniesieniu do wspomnianego rynku po raz pierwszy objęto całą Polskę oraz
stworzenie modelu zarządzania wiedzą klienta, który może zostać poddany
implementacji nie tylko na tym rynku, ale także na innych rynkach innych dóbr
konsumpcyjnych, w tym niszowych.
Słowa kluczowe: zarządzanie wiedzą klienta, rynek niszowy
1. Introduction
One of the basic assumptions of every marketing concept is to meet the expectations of
buyers (this also includes employees1 in a better way than the competitors do. All
1
Baruk A.: The Means of Reducing The Divergence Between The Subimages of A Firm As An Employer.
“Economics & Competition Policy”, No. 7, 2007, p. 105-112; Baruk A.: The role of an employer’s image in
142
orientations belonging to the marketing orientation, ranging from classical orientation to
holistic orientation, are based on this assumption.2
This requires some identification of the expectations of consumers and their regular
monitoring as well as a flexible response to changes of these expectations. Knowing
the expectations of buyers does not allow for the use of their knowledge (it is worth noting
that some authors distinguished several categories of knowledge: knowledge for customers,
knowledge on customers and knowledge from customers.3 This division is the basis of
separation of customer knowledge management and customer knowledge). Identifying
customers' expectations makes it possible to gather information on the buyers, which may be
knowledge about customers. Its proper use requires the adoption of customer perspective by
a company and understanding customer's emotions and some reasons for feeling satisfied.4
However, operating on the present day market poses much bigger requirements for
sellers. To effectively address the market, knowledge on buyers is no longer sufficient.
The aim is to acquire and use buyers' knowledge which can be influenced by the concept of
customer knowledge management. It should be emphasized that the implementation of
customer knowledge management is not only to acquire and use customers' knowledge, but
one of its key effects is to turn passive recipients of knowledge into equal partners, which is
highlighted by a number of authors.5 In practice, of course, it is much harder to gain
customers' knowledge than to acquire some knowledge about them, even though this is still
a serious problem for many companies not recognizing the importance of marketing or not
realizing it.
It is necessary to remember that gaining access to customer's knowledge requires certain
conditions from the seller, for example ensuring that buyers trust the seller. The
psychological and emotional distance between the customer and the seller prevents the
emergence of mutual openness, without which the customers will not want to share their
2
3
4
5
activities of contemporary enterprises, [w:] Bizon-Górecka J. (red.): Ryzyko. Zarządzanie ryzykiem
w przedsiębiorstwie. Wydawnictwo TNOiK, Bydgoszcz 2010, s. 9-21.
Grundey D.: The marketing philosophy and challenges for the new millennium. “Scientific Bulletin –
Economic Sciences”, Vol. 9, No. 15, 2010, p. 169-180; Baruk A.: Lojalność emocjonalna podstawą
długookresowej współpracy oferentów z nabywcami finalnymi. “Handel Wewnętrzny”, No. 1, 2011, p. 2634.
Garcia-Murillo M., Annabi H.: Customer knowledge management, “Journal of the Operational Research
Society”, Vol. 53, 2002, p. 875-884; Gebert H., Geib M., Kolbe L., Brenner W.: Knowledge-enable customer
relationship management: integrating customer relationship management and knowledge management
concepts. “Journal of Knowledge Management”, Vol. 7, No. 5, 2003, p. 107-123.
Barnes J.G.: Build Your Customer Strategy: A Guide to Creating Profitable Customer Relationships. John
Wiley and Sons, New York 2006.
Gibbert M., Leibold M., Probst G.: Five styles of customer knowledge management, and how smart
companies use them to create value. “European Management Journal”, Vol. 20, No. 5, 2002, p. 459-469;
Chen T.F., Huang H.F.: An integrated CKVC model to building customer knowledge management synergy
and impact on business performance, [in:] International Conference on Economics, Trade and Development.
IPEDR, IACSIT Press, Singapore 2011, p. 78-82.
143
knowledge with other market participants, including the sellers. Nevertheless, we should not
forget that acquisition of customers' knowledge is not sufficient to effectively meet their
expectations.
This knowledge must be properly used in the common objectives of buyers and sellers.
However, this can be made possible thanks to the previously mentioned implementation of
customer knowledge management. The starting point for the implementation of this concept
is to have and use the current knowledge about the customers and customer knowledge
management (T.H. Davenport, among others, follows the approach to knowledge about
customers as a starting point for creating a mutually beneficial relationship.6 Only then we
can make a successful attempt to establish a partnership based on mutual trust which is
beneficial for both parties. Building a genuine partnership with buyers is almost impossible
without the implementation of knowledge management, which affects the effective
management of mutual relations.7 Thanks to the cooperation between buyers and sellers, it is
possible to create new knowledge based on some knowledge which each partner already has.8
At the same time, the buyers begin to fulfil the role of the so-called knowledge partners.9
The effective management of both customer's knowledge and knowledge on customers
plays an important role when it comes to niche markets, such as the lamb market in Poland.
At this point, it is still difficult to have access to information from or on final buyers who also
know very little about lamb products. They do not know its basic characteristics and do not
realize the benefits that could be gained by buying lamb meat and lamb products.
Consequently, the lamb sellers (including restaurant owners) have a big challenge in
developing comprehensive activities in the education of potential customers. Meeting such
a challenge would create a community of loyal customers. The shaping of their knowledge
and the creation of market awareness by the sellers would positively contribute to building
and consolidating mutual ties based on openness and positive emotions. However, this
requires sellers' openness to learning and applying new solutions, which include
the previously mentioned concepts of management. Of course, developing and establishing
a system of management of knowledge on customers and the system of management of
customers' knowledge should be preceded by the development and creation of a marketing
information system (Polish: SIM), which then would be incorporated into two previously
6
Davenport T.H., Harris J.G., Kohli A.K.: How do they know their customers so well?. “Sloan Management
Review”, Vol. 42, No. 2, 2001, p. 63-73.
7
Madhoushi M., Saghari F., Madhoushi Z.: Survey of Customer Knowledge Management Impact on Customer
Relationship Management. “International Journal of Business and Social Science”, Vol. 2, No. 20, 2011,
p. 215-226.
8
Chen T.F., Huang H.F.: op.cit.
9
Chen T.F.: An Integrated Process – based Customer Knowledge Management Model. “Journal of Knowledge
Management Practise”, Vol. 12, No. 4, 2011.
144
mentioned systems. One of the key elements of the SIM is the final buyer and his
expectations.10
Therefore, the primary aim of this paper is to identify and analyze the level
of knowledge of individual customers for lamb and lamb products as well as the associated
expectations. In order to achieve this aim, an initial survey was carried out. It included
respondents representing the current and potential final buyers of lamb. The study was
carried out in 2011 throughout Poland and it was based on the survey method. After
eliminating questionnaires which had been completed wrong, 1969 survey questionnaires
were chosen for the analysis. When analyzing the results of the primary research, structural
and statistical methods were used, including factor analysis. In this article, factor analysis
was used to reduce the number of variables affecting the studied categories (causes of eating
and not eating lamb and lamb products) and to detect internal interdependence in the
relationships between these variables. Reducing the subset of input variables led to its
replacement
by
a new variable. The first step in creating a factorial model was building a correlation matrix
between original variables and its preliminary analysis whose results were important to
further procedures for the use of algorithms for identifying the hidden factors.
If the correlation coefficients between variables were low (<0,3), it was necessary to refrain
from further proceedings. However, if the original correlation matrix of variables was
suitable for the application of factor analysis, it was necessary to determine how to identify
the factors and choose a factorial model. To extract some factors, the principal component
method was used.11
To determine the number of common factors, (principal components) the Kaiser criterion
method was used. The method is based on the one given at the following link:
http://www.statsoft.pl/textbook/stfacan.html# index, allowing only those factors that have
eigenvalues12 greater than 1 to be considered for study. Each factor explains a certain level of
variability of the total system under consideration. Moreover, every factor has a associated
percentage of variance which can be interpreted as a measure to indicate the relative weight
of each factor. At this stage, a separate correlation matrix is created and it is called factor
loadings. They express the degree of saturation of a given variable with a factor and are, for
uncorrelated factors, correlation coefficients of the original variable with the individual
factors. The greater the correlation coefficient of the variable factor is, the more significant
10
Shaker T.I.: The role of marketing information system on decision making. “International Journal of Business
and Social Science”, Vol. 2, No. 3, 2011, p. 175-185.
11
Sokołowski A., Sagan A.: Przykłady stosowania analizy danych w marketingu i badaniu opinii publicznej.
www.statsoft.pl/czytelnia/marketing/adwmarketingu.html#wymiarowosci, 2 February 2012.
145
was the variable for a given factor. Next, the obtained factor loadings were subjected to
the rotation technique. The rotation of factors was carried out using the standardized varimax
method, which by maximizing the variance provides for transparency and facilitates
the interpretation of the results needed to explain the factor.13 The rotation does not change
the relative coordinates of point positions, but rotating the axis of reference ensures
the appropriate value of loadings. In the final stage of the analysis, the value of the loadings
were referenced to the factors and individual variables. This required the separation of
variables with the highest factorial loadings relative to the pathogens (approximately > 0,7)
and finding, through the analysis of variable names, their common reference to a deeper
dimension.
2. The level of respondents' knowledge on lamb
The lamb market in Poland is a niche market. Sale and consumption of the products are
formed at a very low level (participation in the overall consumption of lamb meat
in Poland is seven times smaller than for the European Union, which is 700 g per year per
capita. It is worth noting that in Germany, it is even at a higher level, as it is 1,1 kg per capita.
Of course, the low lamb consumption has a direct impact on a very limited level of its
purchases,14 due to various reasons. One of them is certainly the final buyers' limited
knowledge on these products and the benefits to be gained through their inclusion
in the diet. However, while a significant number of sellers still think it is easier to shape some
attitudes and behaviour of consumers who have little knowledge about the products offered,
in practice this is completely different. A definitely better situation for both parties is when
buyers have current and sufficient knowledge on the offer and its suppliers.
It is possible to say that sellers, to a large extent, are responsible for the level of market
awareness of customers and their knowledge. Only those who are aware of the laws
governing the market and their own market, as well as the properties of the products sent to
them, may be genuine partners for businesses, including producers and retailers taking part in
the development of the market offer in accordance with their expectations and interests.
Therefore, what the sellers should take into account are the strategic objectives of marketing
efforts, related to the education of the market, created for the final end use of their value,
12
All of the original variables have been standardized, which means that their variances were equal to unity.
The new variable should explain the maximum variance of the original variables. The variance of this new
variable explaining a certain amount of variability of the primary variables is called the eigenvalue.
13
Sokołowski A., Sagan A.: op.cit.
14
Klepacki B., Rokicki T.: Na zdrowie, www.farmer.pl/produkcja-zwierzeca/owce-i-kozy/na-zdrowie,334.html,
8 July 2011.
146
including products. This means giving special consideration to marketing attributes relating
to packaging the product and its branding.15
Educating buyers should be treated as an investment representing an initial step in
the process of managing customer knowledge without which, as already mentioned, is difficult
to talk about customer knowledge management. It is especially important in markets where
the life cycle is only just beginning (some authors even claim that Poland still does not exist on
the lamb market16 because it has been an undeveloped niche so far.) It is difficult to expect
customers to buy products which they know little or nothing about, or who have wrong
misconceptions due to stereotypes. This is true even when the products are characterized by
very advantageous health qualities. Buyers and consumers need to know about these beneficial
qualities and understand their meaning (distinguishing buyers and consumers as separate
categories is consciously done and deliberate because they reflect the different roles of
the public market, indicating whether a person buys a product, or uses it17 Only then they can
be effectively made to buy a particular product or a category of products.
Unfortunately, according to the analysis of the study’s results, the Polish know little
about lamb and lamb products, which makes it difficult to improve the development of the
lamb market in Poland. It also shows the mistake made by the sellers, and thus the need to
change their current approach. It turns out that some respondents do not even have basic
knowledge on lamb. Among the respondents, there was a certain percentage of people who
do not know which animal lamb comes from (table 1), but it was much more clearly visible in
the group of respondents being under 25. As many as 11% of them indicated an incorrect
response, believing that the lamb is a young cow (7% of responses) or goat (4% of
responses). Admittedly, the inclusion of the entire population indicates a higher level of
knowledge on this subject, but also among all respondents, regardless of their age, 4% were
not able to give the correct answer to the question about the biological origin of the lamb. On
this basis it can be stated that the sellers face a considerable challenge because the scope of
the educational campaign they should prepare and implement must be very large.
Table 1
Respondents’ knowledge on the biological origin of the lamb (%)
What animal does the lamb
come from?
Sheep
Chamois
15
Respondents in total
96
2
Answers (%)
Respondents under 25
89
4
Baruk A.: Jak skutecznie oddziaływać na odbiorców? Wybrane formy sprzedaży i wywierania wpływu na
nabywców. Dom Organizatora, Toruń 2006.
16
Klepacki B., Rokicki T.: op.cit.
17
Baruk A.: Jak skutecznie oddziaływać na odbiorców? Wybrane formy sprzedaży i wywierania wpływu na
nabywców. Dom Organizatora, Toruń 2006.
Cow
Mouflon
Pig
Fallow deer
147
1
1
0
0
7
0
0
0
Source: own study based on the results of the research.
As it is clear from the study, most respondents did not know the country of origin of lamb
ordered in a restaurant nor of that purchased in a store. However, a significant number of
respondents believed this knowledge to be important. Nearly nine tenths of respondents did
not know which country lamb served in restaurants originated from while the respondents
under 25 had no knowledge on this subject at all (table 2).
Table 2
Respondents’ knowledge on the geographical origin of the lamb (%)
The country of origin
Yes
No
11
89
Answers (%)
0
100
This reflects the presence of an evident gap of knowledge because 65% of all respondents
stated that the country of origin of lamb ordered in restaurants is at least important, while for
43% of people the importance of such knowledge was very high (table 3). Only for 7% of
respondents, the knowledge plays a minor role.
Table 3
The importance attached by all the respondents to knowledge of the geographical
origin of lamb ordered in restaurants (%)
The importance attached by the respondents
Very high
High
Little
Very little
Difficult to say
Answers (%)
43
22
14
7
14
The situation is slightly better when it comes to knowledge of country of origin of lamb
purchased in stores because 53% of all respondents did not know the country of origin
(table 4). However, among respondents under 25, once again nobody knew the correct
answer.
Table 4
Respondents’ knowledge on the geographical origin of lamb bought in shops (%)
The country of origin
Yes
No
47
53
Answers (%)
0
100
148
Perhaps a slightly higher level of knowledge on the country of origin of lamb purchased
in stores is due to the fact that this knowledge was more important for them than – for those
respondents who ordered lamb in restaurants. It turns out that, according to 73% of
respondents, it was at least important, and for 44% of them, its significance was very high
(table 5). Therefore, they could be much more active in the independent acquisition of this
knowledge, without waiting for an initiative on the part of sellers. We can also assume that
indicating respondents' own homes as places where they usually eat lamb (45% of all
responses, compared with 22% of responses where the consumption of lamb is usually in
restaurants) was not due to the fact that it was less expensive, but also because of
the knowledge of its origin.
Table 5
The importance attached by all the respondents to knowledge of the geographical
origin of lamb ordered in restaurants (%)
The importance attached by the respondents
Very high
High
Little
Very little
Difficult to say
Answers (%)
44
29
11
4
12
Furthermore, the respondents also had no knowledge of the characteristic properties of
lamb meat. Among those representing the age group up to 25 years of age, over ¼ of
respondents perceived lamb as having bad characteristics (table 6). As many as 28% of
respondents felt that lamb is hard to digest while 26% of people were convinced that it is
high-calorie. Nevertheless, most respondents knew the actual properties of this meat, but
a significant proportion of incorrect answers confirms the significant knowledge gaps
associated with lamb while pointing to negligence in this regard on the part of sellers who do
not seek to carry out efforts aimed at educating their customers, and do not implement
customer knowledge management. The confirmation of this conclusion is the results of
research on the expectations of respondents to the scope and sources of information coming
to them (they will be discussed later in this article), which also show that sellers do not use
customer knowledge management. To some extent this may explain the lack of
implementation
of
customer
knowledge
management
because,
the introduction, it requires some current knowledge of the buyers.
as
mentioned
in
149
Table 6
Knowledge of respondents under 25 on the properties of lamb (%).
Properties of lamb
Calories:
Low-calorie
High-calorie
Digestibility:
Light
Heavy
Answers (%)
74
26
72
28
3. The level of respondents' knowledge on lamb and their market
behaviour
Effective management of customer's knowledge and knowledge about customers on
a niche market, as in the case of Poland’s lamb market, requires the sellers to identify
the reasons why the buyers eat (or do not eat) lamb and lamb products. Therefore, there was
an initial survey attempting to identify the key factors that made respondents eat lamb meat
products. When it comes to some respondents who had never consumed them, it was asked
what the reason was. For this purpose, a statistical method of factor analysis was used. It can
reduce the number of variables which constitute the primary data obtained from surveys and
identify relationships between these variables.
Respondents declaring eating lamb and lamb products were presented with a set of causes
(factors) that had led them to do so and asked to give them specific ratings on a scale of 1 to 5
(1 – unimportant factor, 2 – factor of little importance, 3 – factor of average importance,
4 – important factor, 5 – key factor).
Factors influencing the willingness of respondents to eat lamb formed three areas
(principal components). Figure 1 presents the plot of eigenvalues for these variables while
table 7 presents the results of factor analysis in the form of the factor loadings and their
interpretation revealing the factors include the principal component.
150
Fig. 1. Eigenvalues of variables determining the causes of eating lamb and lamb products
among the respondents
Rys. 1. Wartości własne zmiennych określających przyczyny jedzenia baraniny i jej
produktów wśród respondentów
Table 7
Interpretation of principal components obtained for the group of variables determining
the causes of eating lamb and its products in the opinions of respondents
Principal
components
(Promotional
campaigns for
lamb)
(Diet)
(Nutritional
value of lamb)
Variables
¾
¾
¾
¾
¾
following the fashion
imitating famous people
willingness to stand out
among the others
willingness to add variety
to a diet
nutritional values
Loadings
value
- 0,754
- 0,722
- 0,784
Eigenvalue
Eigenvalues
of the
Eigenvalues
accumulated
principal
(%)
(%)
component
2,587836
32,35
32,34795
- 0, 925
1,896002
23,70
56,04797
0,891
1,201491
15,02
71,06661
As a result, three principal components were distinguished. They explain 71,06% of
the total variation, which means that there were three groups of factors affecting the desire to
eat lamb and lamb products by the respondents, and together these three main factors
accounted for 70% of the reasons for desiring lamb.
151
The first principal component explains 32,35% of the variation representing the area
containing the three factor loadings with a strong negative correlation, which are associated
with features such as: following the fashion, imitating famous people and a willingness to
stand out among the others. This means that the low level of lamb consumption among
the respondents is primarily due to the lack of fashion for consumption of such products,
and the desire to stand out in this respect from other people and the lack of action by
suppliers of promotional campaigns supported by well-known people. Lamb is not as popular
in Poland as pork, poultry or beef.
The second principal component represents a factorial loading of a very strong negative
correlation, related to the variable of willingness to vary the diet, but this component explains
23,70% of the total variation. The third principal component, which explains 15,02% of
the total variation, is associated with very high and positive factorial loading on
the nutritional value of lamb.
Additionally, we can conclude that the low level of consumption of lamb meat and its
products resulted from a lack of respondents willingness to vary their diets. The main feature
which made the respondents consume this kind of meat was a high awareness of
the nutritional value of lamb.
According to the results of factor analysis, we can also see a high positive value of
the factor loading associated with the taste of lamb dishes. The value of the factor loading
(0,690) did not exceed the typical value of qualifying for the factor analysis equal to or
greater than 0,7. This means that the flavour of lamb dishes were viewed positively by
respondents, but the predominant feature was the conviction of high nutritional value of meat.
Respondents who declared that they had never eaten lamb meat products before were also
presented with a set of causes (factors) that contributed to this situation and asked to give
them specific ratings on a scale of 1 to 5 (1 – unimportant factor, 2 – factor of little
importance, 3 – factor of average importance, 4 – important factor, 5 – key factor). These
factors, in this case, established four areas (principal components). Figure 2 presents the plot
of eigenvalues for these variables while Table 8 presents the results of factor analysis in
the form of the factor loadings and their interpretation revealing the factors that include
the principal component.
152
Fig. 2. Eigenvalues of variables determining the cause of not eating lamb and lamb products
by the respondents
Rys. 2. Wartości własne zmiennych określających przyczyny niejedzenia baraniny i jej
produktów wśród respondentów
Table 8
Interpretation of principal components obtained for the group of variables determining
the cause of not eating lamb and its products in the opinions of respondents.
Principal
components
Variables
¾
(Opinions
on lamb)
¾
¾
¾
(Knowledge
on lamb)
¾
¾
(Lamb
availability)
¾
Unfavourable opinions of friends
on the taste of lamb
Unfavourable opinions of papers
on the taste of lamb
Unfavourable opinion on the
internet on the taste of lamb
Lack of knowledge on lamb
availability
Lack of knowledge on
nutritional values
Limited availability of lamb in
shops
Limited availability of lamb in
restaurants
Loadings
value
Eigenvalue
Eigenvalues
of the Eigenvalues
accumulated
principal
(%)
(%)
component
0,851
0,917
3,001469
23,09
23,08822
2,391547
18,40
41,48473
1,605388
12,35
53,83387
0,914
0,808
0,874
0,834
0,750
153
The four principal components explained 64,07% of the total variation, which means that
there were four groups of factors affecting not eating lamb and lamb products by
the respondents while the fourth component did not include a factor for which the factorial
loading value would exceed the qualification value for the factor analysis equal to or greater
than 0,7. Therefore, this component was not taken into account in further considerations.
On the basis of interpretation of the factor analysis results for the first principal
component, it can be concluded that the primary reason affecting the reluctance to eat lamb
and its products among the respondents were uncomplimentary opinions on the taste of lamb
coming from friends and showing up in news reports or internet sources. This component
explains up to 23,08% of the total variability of the studied phenomenon.
The second and the third principal component, which respectively explain 18,40% and
12,35% of the total variability of the studied phenomenon, are associated with the
characteristics on respondents' knowledge about lamb and its availability. It turned out that
the respondents, as final buyers who had never eaten lamb, did not have sufficient knowledge
about its availability, both in shops and restaurants. The reason affecting the reluctance to
consume this kind of meat and meat products was also lack of knowledge of respondents
about the nutritional value of lamb, which confirms the previously formulated assumptions.
This is even more important because this factor, as it is apparent from the previous analyses,
was a key element in encouraging its consumption. Respondents' reluctance to eating lamb
and lamb products explained the existence of significant problems with making the purchase,
mainly because of the lack of availability of lamb meat in retail outlets.
4. Respondents' expectations related to building their knowledge
on lamb by the sellers
The study showed that the expectations of respondents regarding the number and scope of
information on lamb remained largely unfulfilled. Respondents also felt unsatisfied with
insufficient knowledge provided by the media, indicating that more information should be
transmitted to broaden knowledge on lamb. As it is shown in table 9, regardless of age of
respondents, according to the vast majority of them, the amount of information on lamb
provided by the sellers was too small. In total, 69% of the total respondents thought in this
way and so did 65% respondents under 25 years of age. Moreover, in this age group, there
was no person who thought the media covered enough information. However, among all
respondents there were only 2% of people expressing otherwise. In total, only one in ten
respondents indicated that the information on lamb is as at least satisfactory, and among
young respondents there was only a slightly greater proportion for the same opinion.
154
Admittedly, more than 1/5 of respondents (both respondents in total and respondents
under 25) could not clearly express an opinion on this subject, but based on the answers of
other respondents who indicated insufficient or definitely insufficient, it can be said that their
expectations regarding the amount of information they should receive from the sellers were
not met. This confirms the earlier conclusion of the clearly visible dysfunction in
communication between the sellers and their customers, which makes it practically
impossible to implement customer knowledge management.
Table 9
Respondents' opinions regarding the amount of information about lamb provided
by the sellers in the media (%)
Respondents’ opinions
Definitely sufficient
Sufficient
Difficult to say
Insufficient
Definitely insufficient
2
8
21
34
35
Answers (%)
0
13
22
37
28
Respondents' expectations regarding the scope of the information on lamb were much
larger in comparison with what was provided by the sellers. However, it is possible to notice
that some deficiency in this respect was mainly felt by the young. For this age group, two
subject areas were mentioned by more than a half of respondents. While for total
respondents, no single subject area was mentioned by more than 50% of respondents (table
10). Depending on the age of the respondents, we can also see a different structure of unmet
expectations about the scope of the information on lamb, although the representatives of the
two analyzed groups most often pointed to the need to increase the amount of information
about
the nutritional value of lamb (49% and 63% of responses). This indicates a greater awareness
of the respondents in this field. This is even more important because, as the factor analysis,
lack of knowledge about the nutritional value determined the lack of eating lamb.
A subject area that is relatively less important for both age groups is the country and
region of origin. It should be noted that in the case of people under 25 years, the country of
lamb origin (7%) is the smallest subject area. When it comes to respondents in total,
the region of lamb origin (4%) is the smallest subject area.
155
Table 10
Respondents' expectations regarding the scope of information on lamb provided
by the sellers in the media (%)
The scope of information
Taste
Availability on the market
Nutritional values
Preparation
Country of origin
Region of origin
Diet
Other
Answers (%)
Respondents
Respondents
in total
under 25
38
41
14
35
49
63
41
48
7
7
4
9
19
54
1
3
Place (Rank)
Respondents
Respondents
in total
under 25
3
4
5
5
1
1
2
3
6
7
7
6
4
2
8
8
Some clear differences are seen in relation to expectations relating to the dissemination of
information about the importance of lamb in the human diet. In the group of 25-year-olds,
lack the information in this area accounted for 54% of people (the second position among all
the analyzed subject areas) while among all respondents, this area was mentioned by almost
three times smaller proportion of people (19%), taking only the fourth place. A Large
difference also occurred in the case of information relating to the availability of lamb on
the market. In this subject area, expectations of information are twice as important for young
respondents in comparison with total respondents, although this area occupies the fifth place
(rank) for both groups.
5. Conclusion
Based on previous considerations, it can be stated that the information needs of
the respondents were not met by the sellers. The consequence was a low level of knowledge
of respondents about lamb. Of course, a positive point to note is that respondents were aware
of the few resources of information at their disposal while demonstrating openness to
the gaining large amounts of information, which is a necessary condition to obtaining
the necessary knowledge. It does not change the fact that sellers are committing clear
mistakes in accepting the gaps of knowledge among consumers rather than taking coherent
and comprehensive action to create this knowledge.
156
The open attitude of respondents to the acquisition of knowledge concerning the littleknown products would help the sellers realize the previously mentioned matters. However,
not making use and benefitting from this attitude demonstrates some negative attitude of
the sellers. In this way, the sellers are inconsistent with the orientations belonging to a group
of marketing orientation. A negative consequence of negligence in meeting the information
needs of recipients provides virtually no chance to prepare and implement management of
customer's knowledge and knowledge on customers as well. One of the basic conditions for
carrying out these actions is the identification of the expectations of buyers and satisfying
them, according to the sequence of actions in terms of the model presented in figure 3.
We can conclude that there is a great challenge for the sellers who could potentially fill
a niche on the market. Positive results would lead to generating new knowledge. Its use
would be beneficial for both parties, facilitating their partnership in creating a market offer
based on shared knowledge, thus allowing the seller to use their commercial success to lead
to further creation of new knowledge, which many authors define as the most important
resource of the twenty-first century.18
18
Drucker P.F.: Knowledge Worker Productivity – The Biggest Challenge. “California Management Review”,
Vol. 2, No. 41, 1999, p. 79-94.
Fig. 3. Model presentation of customer knowledge management in the context of building
knowledge partnership
Rys. 3. Przedstawienie modelu zarządzania wiedzą klienta w kontekście partnerstwa
budowania wiedzy
Source: own study.
The article was prepared as part of development research project N R12 0113 10.
157
158
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2 February 2012.
Łukasz WIECHETEK
Maria Curie-Sklodowska University
Faculty of Economics
Department of Management Information Systems
CONCEPTION OF A TIME BREAK EVEN POINT
IN INFORMATION SYSTEMS IMPLEMENTATION
IN SMALL AND MEDIUM-SIZED ENTERPRISES
Summary. This article examines information systems implementation and
the constant attempt to balance between: the budget, the scope and implementation
time. The author stresses the importance of the resource of time, as a key factor
affecting the profitability of IT investments in small and medium enterprises.
The purpose of this paper is an attempt to characterize the concept of a time
break-even point (TBEP) related to information systems implementation in small
and medium enterprises, and how to determine when the operation of the system will
return the invested capital; after which the IT project generate profits.
The author also makes an attempt to answer the question of whether and how the
duration of the system implementation affects the moment of reaching the break-even
point and what impact this has on the implementation process time on the level of
so-called time margin of information system exploitation safety (TMSES).
Keywords: time BEP, IT implementation, SME
KONCEPCJA CZASOWEGO PROGU RENTOWNOŚCI WDROŻENIA
SYSTEMU INFORMATYCZNEGO W MAŁYCH I ŚREDNICH
PRZEDSIĘBIORSTWACH
Streszczenie. Artykuł charakteryzuje wdrożenia systemów informatycznych, czyli
nieustanną próbę balansowania pomiędzy: wielkością budżetu, zakresem
realizowanych funkcjonalności oraz czasem poświęconym na realizację. Autor
podkreśla szczególne znaczenie zasobu czasu, jako kluczowego czynnika mającego
wpływ na rentowność inwestycji w IT w małych i średnich przedsiębiorstwach.
Celem niniejszego opracowania jest próba scharakteryzowania koncepcji
„czasowego” progu rentowności (TBEP) wdrożeń systemów informatycznych
Ł. Wiechetek
162
w małych i średnich przedsiębiorstwach, a więc sposobu określenia, po jakim czasie
eksploatacji systemu nastąpi zwrot poniesionych nakładów inwestycyjnych, a zatem
kiedy przedsięwzięcie informatyczne zacznie generować zyski.
Autor podejmuje także próbę odpowiedzi na pytanie, czy i w jaki sposób długość
czasu wdrożenia systemu informatycznego w przedsiębiorstwie wpływa na moment
osiągnięcia progu rentowności oraz jaki wpływ wywiera proces wdrożeniowy na
poziom tzw. czasowego wskaźnika bezpieczeństwa eksploatacji systemu
(TMSES).
Słowa kluczowe: czasowy próg rentowności, wdrożenie, system informatyczny,
MSP
1. Break-even analysis
Break-even analysis allows to evaluate the projects by the determination of a value or
quantity from which the project starts to be profitable. It allows to determine the level of revenue,
which covers the total costs (variable and fixed) related to the functioning of the company1. The
literature describes in detail the quantity and value of break-even.2,3 In accounting the break-even
point is the point (in terms of unit sales) at which the total revenue from the sale is equal to the
total cost. In other words, the value of fixed costs divided by the difference between the unit sale
price and unit variable cost (unit contribution margin) (formula 1).
BEP = FC /(uP - vC)
(1)
where:
BEP – break-even point (units of sale),
FC = fixed costs,
vC = variable costs per unit,
uP = sale price per unit.
Graphic shows the definition of a break-even was presented on figure 1.
In value terms, break-even means the value of sales that can cover the amount of fixed
and variable costs. The margin of safety represents the strength of the company. It enables
managers to know whether the company is over or below the break even point. This answers
the question of how large can be a reduction in sales to remain profitable. The smaller
the positive value of the safety margin, the greater the risk of profitability loss, and the
greater need for monitoring sales and cost volume.
1
Pomykalska B., Pomykalski P.: Analiza finansowa przedsiębiorstwa. PWN, Warszawa 2008, s. 114.
Ćwiąkała-Małys A., Nowak W.: The generalized sensibility analysis of the profit in a company which
produces n-assortments. „Operations Research & Decisions”, Issue 2, 2007. p. 9-10.
3
Szczypa P.: Rachunkowość zarządcza. Klucz do sukcesu. CeDeWu, Warszawa 2011, s. 115-118.
2
Conception of a time break even point…
163
Fig. 1. Graphical definition of break-even point and margin of safety
Rys. 1. Graficzna definicja progu rentowności i marginesu bezpieczeństwa
Source: own work.
2. The use of information systems in SME companies
Statistics4 show that the majority of Polish entrepreneurs declare using computers and the
internet, but the effectiveness of usage is at a rather low level. Internet usage is usually
reduced to sending e-mail or searching for information. The SME companies rarely use IT
technology in ordering processes, or in implementing specialized business management
systems.
The performed research5 shows that awareness of the benefits arising from the use of IT
tools in the Polish SME sector is much lower than in large corporations, but also much lower
than in Western or American representatives of the SME sector.
The use of information systems offers many measurable benefits, but is also associated
with a number of costs generated during the implementation and operation stage. The most
commonly used (by Polish small and medium businesses) IT tools are6: office suites,
accounting systems, sales and storage systems. A full list of the systems used by the Polish
SME sector members presents figure 2.
4
PARP: Kierunki inwestowania w nowoczesne technologie w przedsiębiorstwach MSP. PARP, Warszawa
2007, s. 8.
5
Chełpiński K.: Mali muszą iść drogą dużych. „Computerworld”, Vol. 18-19/893, 2010, s. 29.
6
PARP: op.cit., s. 44.
Ł. Wiechetek
164
Office suites
Accounting systems
Sales and warehouse systems
HR/Payroll Systems
Area
Production management systems
Micro
Data warehouses
Small
Medium
Workflow systems
Average
CRM systems
Graphics applications
E-commerce systems
ERP systems
Other
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Structure
Fig. 2. Types of computer software used by Polish SMEs
Rys. 2. Rodzaje oprogramowania informatycznego wykorzystywane przez polskie
przedsiębiorstwa sektora MSP
Source: own work based on PARP: Kierunki inwestowania w nowoczesne technologie
w przedsiębiorstwach MSP, PARP, Warszawa 2007, s. 44.
Small and medium enterprises increasingly invest in integrated tools that support
the management process and facilitate contacts with clients and subcontractors. System
implementation is a time-consuming process, on average, depending on the company size and
the scale of the project, which lasts from several months to several years7. Therefore it is
a risky process. Risk may result from various company needs, changes in legal requirements
or technical conditions. Risk may also be caused by problems related to clients or by
the company who is providing implementation services. The danger of modifications is
directly related to the implementation project duration. The main goal, therefore, seems to be
the earliest possible completion of the implementation. That will reduce costs associated with
the duration of the project such as salaries of project managers, but mostly, decrease the risk
of changes in implementation aims or changes of key system requirements. Rapid
deployment of the system also allows for earlier generation of additional revenue resulting
from
the system operation, and thus leads to an earlier return on investment.
7
Yourdon E.: Marsz ku klęsce. Poradnik dla projektanta systemów. WNT, Warszawa 2000, s. 19.
165
However, it is worth remembering that the faster realization of the implementation
process may reflect negatively on the functionality of the IT tool or the quality of
the introduced system.
3. IT system implementation
Implementation of the IT system is one of the most difficult tasks in the area of upgrading
the information system of the organization8. The implementation process can be defined as
the introduction of a system to an enterprise (or area of an enterprise), transferring a system
from the people who have designed and implemented it, to the people who will operate it9.
The IT system implementation procedure in small and medium-sized enterprises consists
of the following phases10:
− analysis,
− organizational arrangements for implementation,
− implementation design,
− the proper system implementation,
− start and system operation.
Significant is the fact that the duration of the IT implementation project is clearly
correlated with the size of the company and the size of the implementation team. The average
duration of the implementation project carried out in companies of different size is presented
in table 1.
Table 1
The time characteristics of IT implementation projects
No.
1.
2.
3.
4.
Company size
small
medium
large
corporation
Type of project
small size
medium size
large size
Giant
Duration
3-6 months
1-2 years
3-5 years
7-10 years
Team size
up to 10 people
20-30 people
100-300 people
1000-2000 people
Source: own work based on Yourdon E.: Marsz ku klęsce. Poradnik dla projektanta
systemów, WNT, Warszawa 2000, p. 19.
Thus, the costs associated with implementation of the IT system are generated long
before the actual start of implementation, and also after completion of the implementation
during
8
Kisielnicki J., Sroka H.: Systemy informacyjne biznesu. Informatyka dla zarządzania. Placet, Warszawa 2001,
s. 131.
9
Ibidem.
10
Flasiński M.: Zarządzanie projektami informatycznymi. PWN, Warszawa 2009, s. 35.
Ł. Wiechetek
166
the system operation stage. The same situation applies to the revenues (benefits) related to
the implementation procedure. Several advantages can be observed already during the preanalysis stage including: organization of documentation, business processes mapping,
elimination of redundant data. However, the greatest benefits are visible during the system
operation phase, after completion of the stability phase, for example:
− acceleration of information flow,
− automation of information processing,
− greater control over the company.
The main difference is the fact that the level of marginal costs (increase of total costs)
associated with the system implementation decreases with the progress of the implementation
work. The largest cost is usually preparing and designing the implementing process
(including the purchase of licenses, purchase of equipment, costs of external experts).
Revenues (benefits), however, minimal in the early stages, in most cases become visible in
the operation phase.
At the end of the implementation stage the designers and members of the implementation
team are replaced by end-users. The system is transferred from the people who have designed
and implemented it to the people who will operate it11. This process is important for
the organization. On one hand the system can be underdeveloped and does not meet
the requirements of the organization, where on the other hand the organization itself may not
be ready to adopt the system, which in turn can lead to multiple costs, or increase in
the reluctance of enterprise computerization. Implementation of the IT system also causes
significant changes in the structure and functioning of the company12.
Regarding the complexity of the IT implementation projects that consume large
amounts of resources, not only labor and capital, but also time and bearing in mind not only
the current requirements of the company, but their time variability and relatively short
lifetime of IT systems it becomes important to ask the following questions:
− How long can be the period of effective use of the implemented IT system in
the enterprise?
− At what time (during the operation phase) will the system reach the break-even time?
− Can an extension of the system implementation time affect the time of return on
investment?
− How much will the company earn (lose) using the implemented tool until
the withdrawal of the system?
11
12
Kisielnicki J., Sroka H.: op.cit., s. 133-134.
Lech P.: Zintegrowane systemy zarządzania ERP/ERP II. Wykorzystanie w biznesie, wdrażanie. Difin,
Warszawa 2003, s. 42-43.
167
In the above questions, the time resource plays an important role. On one hand, a longer
system implementation period can be the result of a more detailed analysis of business
requirements, more complete tests or more comprehensive training. On the other hand, longer
implementation time causes additional costs such as: project managers salary, extra trainings,
and opportunity costs associated with a delayed start of system.
4. An economic analysis of information systems
Economic benefits are one of the most important groups of criteria posed in front of
computer systems implemented in small and medium enterprises13. An economic analysis of
IT implementation projects allows for precise calculation of expenditure necessary to carry
out the IT implementation, the expected financial benefits, but also appropriate costs
distribution in time. Economic analysis of the IT system implementation process should focus
on assessing the benefits (costs) but also, due to the time span of projects, on an analysis of
risk related to the IT implementation projects.
4.1. The cost of system implementation and operation
Estimating the cost of an IT system implementation seems to be less complicated than the
calculation of the revenue generated during the implementation and operation phase.
Providers of IT implementation services often calculate typical costs by comparing
the current project with the already completed IT implementation projects of similar
functionality, size and specificity of operation14. Costs associated with implementation and
operation of the IT system are generated by both: the provider of implementation services,
and the company that wants to implement the IT tool15. Due to the time period (system life
cycle) the costs can be classified as follows16:
− the pre-implementation costs,
− costs of implementation,
− maintenance and development costs.
Selected categories of costs associated with enterprise information systems are shown on
figure 3.
13
Flasiński M.: op.cit., s. 143.
Ibidem.
15
Plumb I., Zamfir A.: Use of ict in SMEs management within the sector of services. „Annals of the University
of Oradea, Economic Science Series”, Vol. 17 Issue 4, 2008, p. 485-487.
16
Flasiński M.: op.cit., s. 144.
14
Ł. Wiechetek
168
Fig. 3. Categories of costs associated with enterprise information system
Rys. 3. Kategorie kosztów związanych z funkcjonowaniem systemu informatycznego
w przedsiębiorstwie
Source: own work based on Flasiński M.: Zarządzanie projektami informatycznymi, PWN,
Warszawa 2009, s. 144; Gunia G.: Wdrażanie zintegrowanych systemów
informatycznych, Wydawnictwo Fundacji Centrum Nowych Technologii, BielskoBiała 2009, s. 58-60.
The costs of system implementation, assuming a fixed range of functionality, can also be
divided into fixed, independent of the duration of implementation and operation process, and
variable costs closely related to the implementation time and system life cycle.
To determine the break-even time it is important to separate the costs related to
the system implementation and operation phase, its appropriate grouping into fixed and
variable costs, and the precise determination of their value.
Summary of fixed and variable costs related to the IT system implementation and
operation is presented in table 2.
169
Table 2
Fixed and variable costs related to the IT system implementation and operation
Fixed costs
Variable costs
No.
Specification
Phase
Specification
Phase
1.
salary of analysts and
consultants
- preparation of
implementation
salary of project
managers
- preparation of
implementation
- realization of
implementation
2.
business processes
reorganization
upgrading the system
- realization of
implementation
- operation
3.
system modification
current assistance and
support
- operation
system security
- preparation of
implementation
- realization of
implementation
- operation
- operation
- preparation of
implementation
- realization of
implementation
- realization of
implementation
4.
external services
- preparation of
implementation
- realization of
implementation
5.
infrastructure creation
- realization of
implementation
infrastructure
maintenance
hardware
- realization of
implementation
energy consumption
licenses
- realization of
implementation
consumables
trainings
- realization of
implementation
elimination of failures
or errors
6.
7.
8.
- realization of
implementation
- operation
- realization of
implementation
- operation
- realization of
implementation
- operation
Source: Flasiński M.: Zarządzanie projektami informatycznymi, PWN, Warszawa 2009,
s. 144; Gunia G.: Wdrażanie zintegrowanych systemów informatycznych,
Wydawnictwo Fundacji Centrum Nowych Technologii, Bielsko-Biała 2009,
s. 58-60.
Many of the above fixed costs can become variable (temporary fixed) due to the
extension of the duration of IT the implementation process. As an example we can describe
training costs. The duration of training, and thus the associated costs are generally defined in
the pre-implementation phase. The costs depends on, among other things, the functional
scope of the system, the number of users to be trained, the number of training groups, but
their value should not be related to the duration of implementation stage. However, in
the case of significant delays in implementation or postponement of starting the operation
phase, it may be necessary to repeat the part or the entire training cycle.
Ł. Wiechetek
170
4.2. The benefits of operating an IT system
From the economic point of view, the proposed difference between the total benefits
generated by the implemented IT system, and the cost of the implementation and operation
should be positive, otherwise the efforts to implement the enterprise IT system would be
irrational.
Estimating the overall benefits of using a computer system is an extremely difficult
undertaking.17 The overall set of benefits includes both indirect and direct benefits.
The benefits are generated in the implementation phase, as well as in the system operation
stage. Examples of benefits generated by the management support systems are:
− reducing the cost of maintenance and administration,
− better quality of data,
− faster reporting,
− the ability to control the availability of resources and products,
− better utilization of production capacity,
− coherent and homogeneous information,
− reduction of information system maintenance and related costs,
− greater focus on customers,
− better identification of customer needs,
− matching of products and services to customer needs,
− increase in quality of service,
− integration of the various departments of the company,
− sales processes improvement,
− reorganization and improvement of business processes,
− reduction of employment costs,
− reduction in inventory.
Managers of the companies separate the benefits derived from the use of a system and
benefits generated by reorganizing the company due to the implementation work. Therefore
the implementation of IT system generates a two-fold benefit. Initially, business processes
and organizational structure are being optimized during the phase of system implementation.
Then, after putting the system into use, the various business processes become standardized
and automated through the use of IT tools. Hence, the IT system implementation triggers
the synergistic effects that are derived from the interaction between the IT tool and
the company for which the implementation work is being performed. The real benefits arising
from the IT implementation lies, therefore, not only in technological and functional
17
Ibidem, s. 143.
171
capabilities of the implemented system, but mainly in the ability of a company to introduce
and implement a system, and combined this with the reorganization of the company.18
It can be observed that the main benefits of using an IT system are determined by
the finalization of the implementation process and the level of objectives achieved.
Secondary benefits arise from the level of efficiency of the implementation work, generating
short-term benefits. A sample list of benefits generated by the enterprise information system
is contained in table 3.
Table 3
List of benefits generated by the enterprise information system
Financial
1.
2.
Measurable
Benefit
Direct
No.
Y
Y/N
Y
Y
Y
Y/N
less consequence of errors
Y/N
Y /N
Y/N
quicker decision making process
N
Y
Y/N
5.
6.
matching more creative tasks
new way of work
N
N
N
N
N
N
7
better use of resources
Y/N
Y
Y/N
better decisions
N
Y /N
Y/N
faster response to deviations
N
Y
N
better knowledge about the customers
better comfort of work
N
N
N
N
N
N
12.
new products and services
N
Y
Y
13.
shorter delivery times for new
products
Y/N
Y
Y
new distribution channels
N
Y
Y
better quality of products and services
N
Y/N
Y/N
better support and service
optimization of business processes
N
Y/N
Y/N
Y/N
Y/N
Y/N
improving relationships with partners
N
Y/N
N
3.
4.
9.
10.
11.
15.
16.
17.
18.
18
Transformation
14.
Information
8.
Automation
reduction of employment
reduction of the process errors
Lech P.: op.cit., s. 139.
Measure
saved amount of wages
value of avoided losses
difference in the number of
errors, the difference in time of
error correction
time difference from the rise of
the problem to decision
indicator of productivity, cost of
released capital
savings generated by
the decisions in financial terms
time from the deviation to
the corrective action
profit from new products,
services (minus the loss resulting
from the resignation of the old)
difference in time from idea to
realization
profit from sales through new
channels
difference in the number of
defects, warranty repairs
claims costs
less rotation of partners,
the difference in the number of
incorrect deliveries
Ł. Wiechetek
172
con. tab. 3
20.
21.
Organization
19.
22.
24.
Prestige
23.
flattening of the organization
Y
Y
Y
savings of employment costs
better communication
greater level of knowledge of the
organization and employees
increase of employees comfort and
loyalty
publication in the professional
journals
modern and competent company
image
N
N
N
-
N
N
N
-
N
N
N
-
N
Y
N
quantity and the volume of
publications
N
N
N
-
Source: own work, based on Lech P.: Metodyka ekonomicznej oceny przedsięwzięć
informatycznych, Wydawnictwo Uniwersytetu Gdańskiego, Gdańsk 2007, s. 43-56.
The above table indicates that most of the benefits in terms of automation, transformation,
and the information flow from the use of IT systems, can be measured and quantified. Thus it
becomes possible to determine what income is generated through the use of IT tools during
both stages: implementation and operation of the system.
The benefits generated by the system can be considered as the savings achieved by
the enterprise that resulting from the introduction of a computer system. Some of the benefits
are noticed in the phase of preparation and realization of the implementation, but the main
benefits are seen during the system operation phase. Faster implementation of the system
allows for a longer time of use and therefore a higher level of benefits and profits for
the company.
5. The concept of the time break-even analysis in small and mediumsized enterprises
The concept of the time break-even analysis of information systems implementation is
based on the traditional break-even analysis, that allows to determine the amount (value) of
sales, from which the project becomes a profitable investment. The time break-even means
that the amount of time (duration of the implementation and operation stage), which has
elapsed from the beginning of an implementation project. This break-even period of time is
the time necessary to completely cover the costs of system implementation.
Studies conducted by the author and the analysis of the literature show that the time of
system implementation in a small or medium enterprise ranges from 3 months up to 2 years.19
19
Yourdon E.: op.cit., p. 19.
173
The computer system, as a result of: technological constraints, the dynamics of economic
development, changes in attitudes and customer requirements, can be effectively used in an
enterprise only for a strictly limited period of time. This period is determined by factors
related to:
− system: flexibility and scalability,
− user/operator: the dynamics of development, staff turnover, the organization of
business processes,
− attitude, strategy of system developer and the determinants generated by
the environment: changing laws, changing market requirements.
Therefore, it becomes necessary to try to design tools that enable to answer the following
questions:
− If capital expenditures spent on the implementation and operation of the IT system
will be recovered during the operation phase?
− At what time (during the operation phase) will the system reach the break-even time?
− Is the duration of the IT system implementation stage directly related to break-even
time and company risk?
In order to answer these questions it is necessary to the combine revenues and expenses
arising from the system implementation and operation with the time, when the expenses are
incurred, which is what formulates the concept of a time break-even point (TBEP). A graphic
illustration of the time break-even concept is shown on figure 4.
Fig. 4. Graphical concept of time break-even point and time margin of safety
Rys. 4. Graficzna definicja czasowego progu rentowności oraz czasowego wskaźnika
bezpieczeństwa eksploatacji systemu
Source: own work.
Ł. Wiechetek
174
The main assumptions of the concept of a time break-even:
− the life cycle of the enterprise IT system consists of two main phases:
the implementation phase and operation phase,
− revenues and costs associated with the IT system are generated both in
the implementation and operation phase,
− revenues and costs associated with the IT system exploitation depends on the duration
of the implementation and operation of the system,
− during the implementation phase, the costs associated with the IT system exceeds
the benefits,
− during the implementation stage the fixed costs are higher than in the operation phase,
− system life cycle comes to and end up in the operation phase when the income and
expenses generated by the system are equal.
Using the above assumptions, the formula for the time break-even (TBEP) is as follows
(formula 2):
TBEP = F(t) / (b(t) – v(t))
(2)
where:
TBEP – time break-even point,
F(t) = fixed costs,
⎧ F (t ) i − implementation stage
,
F (t ) = ⎨
⎩ F (t ) e − exp loitation stage
v(t) = variable costs of ICT usage per time unit,
⎧ v(t ) i − implementation stage
,
v(t ) = ⎨
⎩v(t ) e − exp loitation stage
b(t) = benefit of ICT usage per time unit,
⎧ b(t ) i − implementation stage
b(t ) = ⎨
.
⎩b(t ) e − exp loitation stage
Determination of a time break-even requires dividing the system life cycle into two
stages: the stage of implementation and operation. Subsequently, it is necessary to determine
the amount of fixed costs and variable costs associated with the system, and then assign
the costs to the stage of IT system life cycle.
Based on the analysis of the margin of safety (MS) resulting from the break-even point
analysis it can be stated that in the concept of a time break-even margin of safety, a time
margin of information system exploitation safety (TMSES) takes form, measuring
the sensitivity of the company to changes which shorten the average life cycle of the IT
175
system, e.g. by extended implementation time, technology changes, changing customer
requirements. This is the period of IT system operation that runs from the time break-even
point until the end of the average system life time. The formula for the time margin of
information system exploitation safety is as follows (formula 3):
TMSES= (ALT-TBEP)/ALT
(3)
where:
TMSES – time margin of information system exploitation safety,
TBEP – time break-even point,
ALT – average system life time.
The above formula indicates that the calculation of the TMSES level requires
a determination of the time break-even and assumption of the ALT index value. The ALT
index value, according to studies, literature and the results of research conducted by
the author, depends both on the IT system and company specific, but also on the conditions
related to the provider of implementation services and the level of current assistance and
support.
6. Conclusion
The article attempts to characterize the concept of time break-even of information
systems implementation in small and medium enterprises, as a tool that supports an economic
assessment of a company IT system. In the beginning of the paper the author presented
a break-even point and the characteristics of IT implementation projects in small and
medium-sized enterprises. By emphasizing the complexity of the IT implementing process,
the author indicated that the process requires a multifaceted analysis not only in financial
scope and functionality terms, but also from the time of return on investment point of view.
Conversion the concept of break-even point on the grounds of IT systems implementation
becomes the foundation for developing a time break-even point. The TBEP concept can be
used not only for the selection of an IT system and implementation services provider, but also
to control the course of the implementation process, which improves the safety of
information systems exploitation.
The area of time break-even of information systems implementation has not yet been
sufficiently explored, although it seems very important. The literature research, interviews
conducted by the author with managers of IT implementation projects indicate that:
− Quick return on IT investments, achieving time break-even, plays a crucial role.
Technical progress is particularly fast in the field of information technology and it is
Ł. Wiechetek
176
possible that before reaching the time break-even point it will be necessary to conduct
further implementation or even change the system.
− The rate of return on IT investment is also affected by the fast development of small
and medium-sized enterprises. This leads to substantial expansion or replacement of
the operated IT system.
− The benefits of the IT implementation project, especially in the organizational area,
are generated also before the system operation stage. However, at this stage
implementation costs significantly outweigh generated revenue.
− Small and medium enterprises should pay special attention to the duration of the IT
system implementation. The low value of time margin of information system
exploitation safety can lead to failure in time break-even point achievement (due to
a reduction of system lifetime as a result of: longer implementation time,
technological, legal, or functional changes). This can lead to problems with
the company functioning.
− The results of the time break-even analysis of IT systems implementation performed
by different companies, due to the differences in the range and budget, are hardly
comparable. However, the time break-even analysis can be applied as one of the tools
to choose the right IT system and implementation services provider.
Bibliography
1.
Ali A., Krapfel R., LaBahn D.: Product innovativeness and entry strategy: impact on
cycle time and break-even time. „Journal of Product Innovation Management”, Vol. 12,
1995, http://dx.doi.org/10.1111/1540-5885.t01-1-1210030.
2.
Chełpiński K.: Mali muszą iść drogą dużych. „Computerworld”, nr 18-19/893, 2010.
3.
Ćwiąkała-Małys A., Nowak W.: The generalized sensibility analysis of the profit in
a company which produces n-assortments. „Operations Research & Decisions”, Issue 2,
2007.
4.
Flasiński M.: Zarządzanie projektami informatycznymi. PWN, Warszawa 2009.
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Gunia G.: Wdrażanie zintegrowanych systemów informatycznych. Wydawnictwo
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Kisielnicki J., Sroka H.: Systemy informacyjne biznesu. Informatyka dla zarządzania.
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Lech
P.:
Metodyka
ekonomicznej
oceny
przedsięwzięć
informatycznych
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Gdańsk 2007.
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Lech P.: Zintegrowane systemy zarządzania ERP/ERP II. Wykorzystanie w biznesie,
wdrażanie. Difin, Warszawa 2003.
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Malanowska I., Koliński A.: Wykorzystanie narzędzi gospodarki elektronicznej
w działalności przedsiębiorstw z sektora MSP. „E-Mentor”, nr 2, 2009.
10. PARP: Kierunki inwestowania w nowoczesne technologie w przedsiębiorstwach MSP.
PARP, Warszawa 2007.
11. Pomykalska B., Pomykalski P.: Analiza finansowa przedsiębiorstwa. PWN, Warszawa
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12. Plumb I., Zamfir A.: Use of ict in SMEs management within the sector of services.
„Annals of the University of Oradea, Economic Science Series”, Vol. 17, Issue 4, 2008.
13. Śliwczyński B.: Controlling w zarządzaniu logistyką. Wyższa Szkoła Logistyki, Poznań
2007.
14. Szczypa P.: Rachunkowość zarządcza. Klucz do sukcesu. CeDeWu, Warszawa 2011.
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organizacja i zarządzanie

Transcription

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