Emerald | EuroMed Journal of Business | Table of Contents

Cost of capital in SMEs – Theoretical considerations and practical implications of a case study

Fri, 26 Apr 2013 00:00:00 +0100

Abstract

Purpose - The aim of the paper is to discuss the applicability of value based management (VBM) concepts for SMEs and to identify obstacles for its implementation. Estimating cost of capital is central to all VBM concepts, it is hence intended to critically analyse approaches that allow estimating cost of capital for non-publicly traded firms.Design/methodology/approach - The paper is based on literature review and a case study approach. A case study on estimating the cost of capital has been conducted with a single manufacturing firm in Germany.Findings - VBM may provide useful management concepts for SMEs. Estimating the cost of capital has been found to be a critical element of implementing VBM concepts. Due to the absence of capital market data, cost of equity in SMEs has to be derived by means of alternative procedures. Results of a case study implicate that a combination of different methods may provide reasonable results in practice.Research limitations/implications - The applied research approach and the heterogeneity of the SME sector do not allow generalizing the results of this research.Originality/value - The paper addresses a major barrier for implementing VBM in SMEs. It proposes a combination of analogy and qualitative approaches for estimating the cost of equity in SMEs.

Evolutions in the Ecologically Conscious Consumer Behaviour in Greece

literatinetwork@emeraldinsight.com (Irene Tilikidou) — Fri, 26 Apr 2013 00:00:00 +0100

Abstract

Purpose - To examine simultaneously all types of Ecologically Conscious Consumer Behaviour (ECCB) during the current economic crisis in Greece and investigate some of the factors able to affect it. To reveal the distances between the results of this study and those of previous studies in the same geographical area. To present a detailed profile of the Ecologically Conscious Consumers’ (ECCs) market segment.Design/methodology/approach - An effort was made to examine simultaneously all types of ECCB, namely Pro-environmental Purchasing Behaviour, Recycling Behaviour, Pro-environmental Post-purchasing Behaviour and Pro-environmental (Non-purchasing) Activities. A set of demographic, attitudinal and personality variables were added in the investigation. The relevant research objectives were set and they were accomplished by a quantitative survey of a large enough - for the urban area of Thessaloniki - probability sample.Findings - All ECCB types were found to be positively related to consumers’ education, attitudes towards recycling and locus of control over politics; also, related negatively to environmental unconcern. Strong inter-relationships among all the ECCB types were revealed. Cluster analysis indicated that the ECCs segment counts for 16%, a size considerably smaller than a decade ago. Research limitations/implications - A remaining social desirability effect despite the effort to eliminate it. Limited understanding of the economic crisis’s consequences. Incomplete profile of ECCs.Practical implications - Managers of ecological products, managers in charge of recycling programmes and executives working with the ecological organizations should all be aware that they share the same target group, that of ECCs. They should study carefully the characteristics of ECCs and choose the most appropriate communication strategies.Originality/value - An effort to overcome the usual fragmentary examination of ecological behaviours. All types of ECCB were examined under an integrated theoretical framework and they were found to be inter-related. The first study to examine the impact of the economic crisis in Greece on pro-environmental behaviours.

Patients – Medical Unit Relationship Models in the Virtual Environment

literatinetwork@emeraldinsight.com (Justyna Matysiewicz, Slawomir Smyczek) — Fri, 26 Apr 2013 00:00:00 +0100

Abstract

Purpose - The purpose of this study is to identify and analyze factors influencing the mutual relationship between patients and medical units in the virtual environment. Since introduction of the Internet and other electronic tools for medical services provision is at the very initial stage, it is necessary to examine factors which condition engagement of patients and medical units in building bilateral relations in a new virtual environment and to develop relationship models on the health services market. Design/methodology/approach - The study presents findings of the field study conducted in Poland, being a representative market under transition. Surveys were conducted among patients and medical units by means of structured questionnaires. The identification of relationship factors was based on the approach used in consumer behavior models, where the method of the so-called summary of variables is left behind. Findings - According to research results, the most important factors affecting relationships between patients and medical units in the virtual environment include: the motivation, ability and market opportunity. With respect to patients, the most powerful factor is represented by the ability, whereas with respect to medical units by the market opportunity.Practical implications - Identified factors and developed models may be widely applied in practical operation of medical units, particularly in developing marketing programs for introduction of virtual service and communication tools, as well as in building patient loyalty programs. Originality/value - The following study is one of the first to have defined factors determining relationships on the virtual healthcare market and to have provided useful insights into the subject. Moreover, it constitutes a basis for future studies. The findings can greatly contribute to development of customer behavior and partnership marketing theories.

AUTOTELIC CAPABILITIES AND THEIR IMPACT ON TECHNOLOGICAL CAPABILITIES

Fri, 26 Apr 2013 00:00:00 +0100

Abstract

Purpose - This paper sheds light on the emerging concept of autotelic capabilities and their impact on operational capabilities and in particular technological capabilities. Design/methodology/approach - Autotelic capabilities and their dimensions are discussed since they constitute a novel framework for new venturing in knowledge-intensive, low-tech industries. Links among the dimensions of ACs and technological capabilities formation are explored focusing on production technologies. Findings - The suggested links among autotelic and technological capabilities highlight the need to go beyond individual-centered explanations of entrepreneurial activities towards the formation of integrated capabilities. They strengthen the assumption that autotelic capabilities exist as higher-order capabilities in low-tech but knowledge-intensive venturing, are very specific, can be managed, and endue new ventures with technological capabilities.Research limitations/implications - As it is only a theoretical approach, the hypotheses’ validity needs empirical evaluation and further theory building and development. Research could include the rest of operational capabilities, issues of causalities and the empirical exploration of the concept’s generalizability across a variety of contexts.Practical implications - Entrepreneurial and/or managerial teams should realize the importance of possessing and further cultivating ACs in recognizing technological patterns connecting seemingly unrelated pieces of science and technologies. Intentional and organized cultivation of ACs supports competitive new venture creation and sustainable development of both operational and dynamic capabilities. Originality/value - The paper forms a part of the pioneering autotelic capabilities perspective, developed by the authors, which offers an alternative approach to much conventional entrepreneurial thinking. It is an original contribution to relevant literature with both theoretical and practical value.

In the Shadow of Offshoring: Exploring the providers’ expectations

Fri, 26 Apr 2013 00:00:00 +0100

Abstract

Purpose - Although the literature on offshoring is vast, very scarce research has been made to understand the providers’ perspective of offshoring. The goal of this paper is to fill this gap, aiming to assess the expectations of providers when they started working with foreign firms and compare those expectations with their perceptions of reality. Design/methodology/approach - We conducted exploratory research based on grounded theory. A purposive theoretical sampling technique was used to select 7 Portuguese offshoring providers. Data collected was then coded and analysed. Findings - Three broad categories of expectations and perceptions emerged: business-, firm- and client-related. Creation of business and acquisition of skills were the most referred categories, both as expectations and as perceptions of reality, stated by all the interviewees. However, several expectations don’t match the providers’ perceptions, and some perceptions weren’t part of the providers’ initial expectations.Research limitations/implications - Not only is our study exploratory and conditioned by a small national sample, but we also didn’t explain the relationships between expectations and perceptions of reality, an issue that should be addressed in future research. Practical implications - The practical and social implications of our findings are wide: offshoring providers bring business and promote the acquisition of skills in the economy, so managers and governments should stimulate this business model. Originality/value - Our findings contribute to the offshoring literature, focusing on the still unnoticed dimension of the providers. Through the addition of categories of expectations to the few already found in the literature, and their comparison to the providers’ perceptions of reality, we conferred extra originality and value to our research.

Wireless Sensor Technology in Dementia Care: Caregiver Perceptions, Technology Take-up and Business Model Innovation

literatinetwork@emeraldinsight.com (Elizabeth R Delbreil, Gilbert Zvobgo) — Fri, 26 Apr 2013 00:00:00 +0100

Abstract

Purpose - This study empirically examines health professionals’ recognition of sensor technology as a means to enhance quality of life (QoL) of care recipients with dementia in Switzerland and France. In light of this research, we suggest potential vectors of development for wireless sensor technology (WSN) businesses working in gerontechnology. ICT for the aging is a high-potential, nascent market in which the technology-enabled solutions lack business models to make them readily available and easily-accepted (European Commission, 2010).Design/methodology/approach - To enhance the contribution of the study to both theory and practice, a mixed methodology combined qualitative and quantitative approaches. Similarly, the data collection techniques included interviews, a case study and an online questionnaire. Multiple regression analysis was used to analyse the quantitative data to examine the relationships between elements of WSN-adoption and QoL aspects.Findings - Positive respondent attitude towards gerontechnology as a means to enhance QoL leads us to consider possible value propositions and innovations at the centre of future business models, channel development and multidisciplinary collaboration that could overcome major social and political obstacles (Canton de Vaud, 2012; Somme and Saint-Jean, 2011).Originality/value - This study’s originality lies in its intention to survey professional caregiver perceptions in order to identify value creation potential.