Corruption as an Obstacle for Doing Business in the Western Balkans: A Business Sector Perspective

This paper investigates business people’s perceptions of corruption as an obstacle for doing business and their attitudes towards corruption. It is based on a survey conducted on the sample of over 1800 business owners and managers in the Western Balkans region. Using the original survey data collected in 2010 for seven countries – Albania, Bosnia and Herzegovina, Croatia, Kosovo, FYR Macedonia, Montenegro and Serbia – the paper explores business people’s views on the ways in which the business sector is dealing with corruption as well as on the perceived role of private and government agents in curbing corruption. The factor analysis produced three distinct factors: (1) Understanding corruption as “grease in the wheels”; (2) Individual action can contribute to the curbing of corruption; (3) Corruption is a government-related issue. The main research question was whether the respondents’ attitudes towards corruption are related to the following variables: country of origin, their own corruption experience, perceptions of corruption as an obstacle for doing business and the general corruption prevalence trends. The results of the analysis of variance show that the country of origin strongly determines business people’s attitudes on corruption. Respondents with corruption experience tend to justify corruption as “grease in the wheels” more than “clean” respondents. Business people who believe that corruption is on the rise or that it poses a big obstacle for their business put greater emphasis on the government dealing with the issue of corruption than on individual or private anti-corruption initiatives. The findings provide useful policy recommendations for countries in the Western Balkans region to design a more entrepreneurship-friendly environment.corruption, business sector, attitudes and perceptions, corruption experience, Western Balkans

DEVELOPMENT OF A SCALE FOR MEASURING CUSTOMER-BASED BRAND EQUITY

The purpose of the research reported here was to develop a scale for measuring customer-based brand equity. Keller’s framework of customer-based brand equity was used asa basis for developing a measurement scale, and thus four dimensions for measuring brand equity were used: brand awareness, and strength, favourability, and uniqueness of brand associations. Three studies were conducted in order to purify the initial set of items and to assess reliability, dimensionality, and the convergent, discriminant, and criterion validity of the developed scale. The results of the research provide evidence of the reliability, conceptualised dimensionality, and the convergent, discriminant, and criterion validity of the developed scale.Svrha je istraživanja bilo razvijanje ljestvice za mjerenje tržišne vrijednosti marke sa stanovišta potrošača. Kao osnova upotrijebljen je Kellerov model tržišne vrijednosti marke, pa su stoga za mjerenje tržišne vrijednosti marke upotrijebljene četiri dimenzije: poznatost marke i snaga, preferiranost i jedinstvenost asocijacija na marku. Provedena su tri istraživanja sa svrhom pročišćivanja početnoga skupa tvrdnji i procjenjivanja pouzdanosti, dimenzionalnosti i kovergentne, diskriminantne i kriterijske valjanosti razvijene mjerne ljestvice. Istraživanjem je dokazana pouzdanost, konceptualizirana dimenzionalnost i konvergentna, diskriminatna i kriterijska valjanost razvijene ljestvice

The Effects of Marketing Mix Elements on Brand Equity

The structural model of the effects of marketing mix elements on brand equity is defined in line with the existing theoretical findings. Research hypotheses are defined according to the identified structural model. In order to test the defined structural model and research hypotheses empirical research was conducted on the sample of undergraduate students of the Faculty of Economics and Business in Zagreb. Research results indicate that the structural model has an acceptable level of fit to the empirical data. The estimated structural coefficients and indirect effect coefficients indicate the direction and intensity of effects of each analysed element of marketing mix on brand equity. Finally, implications of research results for the theory and practice of brand management are analysed and discussed

DEVELOPMENT OF A SCALE FOR MEASURING CUSTOMER-BASED BRAND EQUITY

The purpose of the research reported here was to develop a scale for measuring customer-based brand equity. Keller’s framework of customer-based brand equity was used asa basis for developing a measurement scale, and thus four dimensions for measuring brand equity were used: brand awareness, and strength, favourability, and uniqueness of brand associations. Three studies were conducted in order to purify the initial set of items and to assess reliability, dimensionality, and the convergent, discriminant, and criterion validity of the developed scale. The results of the research provide evidence of the reliability, conceptualised dimensionality, and the convergent, discriminant, and criterion validity of the developed scale.Svrha je istraživanja bilo razvijanje ljestvice za mjerenje tržišne vrijednosti marke sa stanovišta potrošača. Kao osnova upotrijebljen je Kellerov model tržišne vrijednosti marke, pa su stoga za mjerenje tržišne vrijednosti marke upotrijebljene četiri dimenzije: poznatost marke i snaga, preferiranost i jedinstvenost asocijacija na marku. Provedena su tri istraživanja sa svrhom pročišćivanja početnoga skupa tvrdnji i procjenjivanja pouzdanosti, dimenzionalnosti i kovergentne, diskriminantne i kriterijske valjanosti razvijene mjerne ljestvice. Istraživanjem je dokazana pouzdanost, konceptualizirana dimenzionalnost i konvergentna, diskriminatna i kriterijska valjanost razvijene ljestvice

PRILAGODBA INSTRUMENTA ZA MJERENJE STILOVA ODLUČIVANJA O KUPNJI KONTEKSTU POSJETA LOKACIJAMA KULTURNE BAŠTINE

Purpose - The purpose of this study is to examine the applicability of the Consumer Decision-Making Style (CDMS) theoretical framework in the context of visiting cultural heritage sites and to adapt the original Consumer Style Inventory (CSI) measurement instrument accordingly. Since adapted measurement instruments should be tested for their psychometric properties before being applied in empirical studies, the aim of this paper is to test an original Consumer Style Inventory in an observed research context. Design/Methodology/Approach - The paper analyses the psychometric properties of the modified measurement scale by assessing its reliability, convergent and discriminant validity, and dimensionality. In accordance with previous recommendations in the literature, a shortened version of the original CSI was proposed. Data were collected from a sample of undergraduate and graduate students (n = 332). Exploratory and confirmatory factor analysis methods and Cronbach\u27s alpha coefficient were used in the study. Findings and implications - This empirical study found that the adapted measurement subscales (with the exception of the Impulsiveness subscale) had satisfactory psychometric properties. The adapted measurement subscales have acceptable levels of reliability, convergent validity, and discriminant validity, and each of the seven adapted subscales is unidimensional. The final measurement instrument consists of seven original CDMS dimensions and includes eighteen items, which facilitates the use of the adapted measurement scales in future empirical studies of heritage site visitation. The adapted measurement instrument could also be used in future professional market research projects conducted for practical marketing problems related to heritage site visitation. Limitations - The limitations of the research that could affect the generalizability of the research findings were discussed in terms of the sampling procedure and data collection method, as well as the cultural setting in which the research was conducted. In addition, the main implications of the adapted CSI measurement scale are explained. Originality - By confirming the satisfactory psychometric properties of the adapted CSI measurement instrument, this research study contributes to a more comprehensive understanding of consumers\u27 approach to heritage site selection, thus expanding existing theoretical knowledge about consumers\u27 decision-making styles in different research contexts.Svrha – Svrha ove istraživačke studije je ispitati primjenjivost teorijskog okvira Stilova odlučivanja potrošača o kupnji (CDMS – Consumer Decision-Making Styles) kontekstu posjećivanja lokacija kulturne baštine i u skladu s tim prilagoditi izvorni mjerni instrument. Budući da je prije njihove primjene u empirijskim istraživanjima potrebno utvrditi psihometrijska svojstva prilagođenih mjernih instrumenata, cilj je ovog rada testirati izvornu CSI (Consumer Style Inventory) ljestvicu za mjerenje stilova odlučivanja o kupnji u promatranom istraživačkom kontekstu. Dizajn/metodologija/pristup - U radu se analiziraju psihometrijska svojstva modificirane mjerne ljestvice procjenom njezine pouzdanosti, konvergentne i diskriminativne valjanosti te dimenzionalnosti. U skladu s prethodnim preporukama, predložena je skraćena verzija izvornog CSI mjernog instrumenta. Podaci su prikupljeni na uzorku studenata prijediplomskog i diplomskog studija (n = 332). U istraživanju su korištene metode eksplorativne i konfirmativne faktorske analize te Cronbachov alfa koeficijent. Nalazi i implikacije - Rezultati ove studije pokazuju da prilagođene mjerne ljestvice imaju odgovarajuću pouzdanost i valjanost, osim u slučaju ljestvice koja mjeri stil odlučivanja o kupnji pod nazivom Impulzivnost. Osim toga, svaka od sedam prilagođenih mjernih ljestvica je jednodimenzionalna. Prilagođeni mjerni instrument u konačnici se sastoji od sedam izvornih dimenzija stilova odlučivanja o kupnji i uključuje osamnaest tvrdnji, što olakšava korištenje prilagođenih mjernih ljestvica u budućim empirijskim istraživanjima ponašanja potrošača u odabiru lokacije kulturne baštine. Prilagođeni mjerni instrument također bi se mogao koristiti u budućim projektima istraživanja tržišta koji se provode u svrhu rješavanja praktičnih marketinških problema povezanih s potrošačevim odabirom i posjećivanjem lokacija kulturne baštine. Ograničenja - Ograničenja istraživanja koja bi mogla utjecati na poopćavanje nalaza istraživanja odnose se na problematiku primijenjenog uzorka i metode prikupljanja podataka, kao i kulturnog konteksta u kojem je istraživanje provedeno. Uz to, navedene su glavne implikacije prilagođene mjerne ljestvice. Originalnost - Potvrđujući zadovoljavajuća psihometrijska svojstva prilagođenog CSI mjernog instrumenta, ova istraživačka studija pridonosi sveobuhvatnijem razumijevanju potrošačevog pristupa odabiru lokacija kulturne baštine, čime se proširuju postojeća teorijska znanja o potrošačkim stilovima odlučivanja u različitim istraživačkim kontekstima

Ispitivanje korupcije u Hrvatskoj: povjerljivost ankete i povjerenje u institucije

In an attempt to explore the linkages between corruption surveys, underreporting corruption experiences and causes of reluctance to report corruption, this paper provides insight into solutions applied to mitigate the underreporting risks in surveying corruption experiences in Croatia. Based on the “Survey on use of public services and public integrity” conducted in Croatia in the summer of 2010, the issue of underreporting corruption is assessed here with a two-fold approach. The study first discusses the various aspects of the survey methodology applied, where the main concerns were the willingness of respondents to report corruption and their perceptions regarding risk of personal data misuse. Potential reluctance to admit involvement in corruption as a criminal act might be driven by a fear of subsequent surveillance or investigation. Further, we investigate the concerns expressed by respondents regarding the misuse of data, in particular with regard to protecting anonymity. The other issue arises from the direct survey results and refers to citizens’ attitudes and reasons for (not) reporting crime to official institutions. The analysis particularly focuses on reporting corruption experiences, both formally and informally. The results of the survey show a very high level of citizens’ opportunism and lack of public trust in institutions that might impede anti-corruption efforts in Croatia.Rad polazi od postojeće literature o anketama o korupciji, metodološkom problemu odbijanja odgovora o stvarnim iskustvima korupcije te o potencijalnim uzrocima neprijavljivanja korupcije. Studija opisuje konkretnu problematiku u anketnom ispitivanju korupcije i primijenjena rješenja kako bi se smanjio rizik davanja odgovora koji podcjenjuju stvarna korupcijska iskustva građana. Temeljem „Ankete o korištenju javnih usluga i poštenju u javnim službama“ provedenoj u Hrvatskoj u ljeto 2010. godine, u radu se problem neprijavljivanja korupcije razmatra s dva različita stajališta. Prvo se analizira spremnost anketiranih da potvrde svoje sudjelovanje u korupcijskom djelu, pri čemu odbijanje davanja odgovora može biti uzrokovano strahom od nadzora i praćenja ili kriminalističke istrage. U radu se ispituje i percipirani rizik zlouporabe osobnih podataka i mišljenje ispitanika o zaštiti anonimnosti. Drugo istraživačko pitanje izravno proizlazi iz rezultata ankete, a obrađuje stavove ispitanika i razloge neprijavljivanja kriminala službenim institucijama. Zasebno se analiziraju formalno i neformalno prijavljivanje slučajeva korupcije. Rezultati ankete pokazuju visoku razinu oportunizma građana i nedostatak povjerenja u institucije, što može predstavljati prepreku učinkovitoj provedbi antikorupcijske politike u Hrvatskoj

How corruption affects business results: The case of Croatia

The background of this paper is found in recent theories why corruption prevalence menaces the safety of business environment. In order to examine if exposure to corruption derogates business results of firms in Croatia we have tested the hypothesis that higher corruption perceptions of business leaders in small, medium and large firms in Croatia are associated with firms’ worse financial results. As a seminal research we measure corruption perceptions of business by employing unique data from three annual surveys conducted in more than one hundred firms in Croatia. The constructed index of corruption perceptions of business is used in the empirical analysis how higher corruption perceptions of firms in Croatia are affecting financial results in terms of total revenue per employee, net profit per employee and total sales per employee. The years of observation are 2002, 2003 and 2004. The extension of our research to three groups of small, medium and large firms in Croatia aims to separately examine the correlation between corruption perceptions indices and financial results for each group of firms. The preliminary results indicate that corruption is more affecting small firms in Croatia. Policy recommendations and lines of further research are discussed

Business, corruption and crime in Croatia ; the impact of bribery and other crime on private enterprise

Survey on business executives'/owners' experience of corruption and assessing corruption patterns by sector and business size would be a valuable source of data on corruption as an obstacle for doing business in our country. The results should serve to improve anti-corruption policy measures and incentive business climate in Croatia. Further use of data for advanced analysis and their international comparability would ensure the solid corruption statistics database and benchmarking indicators for the future. The target population surveyed in Croatia will be businesses from 4-6 main economic sectors and in three different business sizes, in terms of the number of employees. The net survey sample is 1500 repondents. Data will be collected by CATI or face-to-face CAPI assisted methods, depending on the results of the pilot survey. The fieldwork will be conducted by subcontracting market research agency. The main outputs of the project are: a database in the SPSS system, statistical tables per tabulation plan and survey report in English and Croatian. The report will be presented to the public and national stakeholders at the public launch event

TRADE PATTERNS IN CROATIA: K-MEANS CLUSTER ANALYSIS

This paper aims at contributing to a better understanding of trade patterns in Croatia. The work is oriented toward the role and contribution of individual product groups in total Croatian trade patterns. K-means cluster analysis is conducted with the RCA indicator, GL index and RUV indicator as variables and product groups at the three-digit level of the Standard International Trade Classification (SITC) as objects. Three different clusters of product groups are identified with statistically significant differences in values of analyzed variables. Implications of generated clusters of product groups are discussed. Product groups with the highest utility in international trade are identified for Croatia

How corruption affects business results: The case of Croatia

The background of this paper is found in recent theories why corruption prevalence menaces the safety of business environment. In order to examine if exposure to corruption derogates business results of firms in Croatia we have tested the hypothesis that higher corruption perceptions of business leaders in small, medium and large firms in Croatia are associated with firms’ worse financial results. As a seminal research we measure corruption perceptions of business by employing unique data from three annual surveys conducted in more than one hundred firms in Croatia. The constructed index of corruption perceptions of business is used in the empirical analysis how higher corruption perceptions of firms in Croatia are affecting financial results in terms of total revenue per employee, net profit per employee and total sales per employee. The years of observation are 2002, 2003 and 2004. The extension of our research to three groups of small, medium and large firms in Croatia aims to separately examine the correlation between corruption perceptions indices and financial results for each group of firms. The preliminary results indicate that corruption is more affecting small firms in Croatia. Policy recommendations and lines of further research are discussed