SciPap, Volume 24, Issue 1 (2016)

Open Access Article SciPap-784
Triple Bottom Line Reporting Practices and Corporate Relationship With Host Communities in Nigeria (A Case Study of Niger Delta Region)
by Francis .N.p Udeh, Fidelis .O. Akporien

Abstract: This study seeks to examine Triple Bottom Line (TBL) reporting practices and corporate relationship with host communities in Nigeria. A survey research design was adopted for the study hence structured questionnaires were administered. The population of the study consists of members of host communities and management staff of companies in the Niger Delta region of Nigeria. Hypotheses stated were tested and analyzed through the use of correlation analysis and one-way analysis of variance (ANOVA) at 5% level of significance with the aid of statistical package for social sciences (SPSS) software (version 16.0). The study findings reveal that there is a significant difference between the level of awareness of host communities members and company management about TBL reports. The result also shows that there is an insignificant relationship between TBL reporting practice and corporate relationship with host communities. Based on the findings of this study, it was recommended amongst others that there is need to adequately localize sustainability reporting framework in line with international standard and that community organization need to imbibe culture of peaceful negotiation in their agitations to avoid negative consequences.
Keywords: Triple Bottom Line, Corporate Reporting, Niger Delta Region
JEL classification: M40, M41, M49

Open Access Article SciPap-785
Process Optimalisation With Effective Interconnection of Production System Models in Plant Simulation
by David Tuček, Ivo Novák

Abstract: This paper describes an object-oriented simulation approach for the design of a production system that is primarily focused on data exchange between system models of one manufacturer. Article deals with Plant Simulation software utilization for production systems modelling. The paper emphasizes the option of production process optimization and data exchange between models. Also the model can be utilized to predict the production sequence in a short period of time. There is also emphasized the global point of view to optimization of a system. The simulation issue is solved by fundamental construction of system models, which require data exchange. Furthermore the model functions for data exchange in Plant Simulation are programmed. The contribution that we described in this article is the introduction of the possibilities of simulation programs for production optimization.
Keywords: Process, Model, Optimization, Computer Simulation, Plant Simulation, Data Exchange
JEL classification: M10, M11, M15

Open Access Article SciPap-786
Immediate Termination of Employment by the Legal Representative of the Minor Employee
by Martin Smid

Abstract: The paper deals with the actual issue of the possibility of the immediate termination of employment by the legal representative of the minor employee. Since 2014, The employment of minor employee (who is younger than 16) can be immediately terminated by the decision of his legal representative (typically parent). Consent of the court is necessary to this termination according to Labour Code. The main aim of this paper is to analyse the main struggles of the new legal regulation from two main aspects: material law aspect and process law aspect. The main problems are found, described and criticized in the article. The analysis of the issue is based on the legal exegesis of the current legal rules active since 1st January 2014 in all related laws – Civil Code, Labour Code, Civil Procedure Code and Act on Special Procedures. Consequences of the principles of the autonomy of will are also mentioned in the article.
Keywords: Employment, Labour Law, Immediate Termination Of Employment, Labour Code, Civil Code
JEL classification: K31

Open Access Article SciPap-787
Using DEA for Regional Merging Zones Based on Geographic Models of the European Economy
by Michaela Staníčková, Lukáš Melecký

Abstract: For centuries, the “Blue Banana”, metropolitan axis running from London to Milan, has been Europe’s breeding place for innovation and growth. Recently, the “Sunbelt” from Milan to Valencia and the “Yellow Banana” from Paris to Warsaw have been identified as future European growth poles beside or even beyond the Blue Banana. Europe’s competitiveness depends on a multiplicity of actions that can optimise the potentials within its territory, especially regions. Nowadays, regions are increasingly becoming the drivers of the economy. All regions possess development opportunities – however, use these options enough and hence the competitiveness of European regions must be efficient enough. It is well-known that there are significant differences among the European Union regions which weaken its competitiveness. What are differences in territorial efficiencies with respect to the structure of Europe’s economic-geographical system? The paper is focused on using SBMT VRS DEA model for dividing NUTS 2 regions from geographic models of the European economy into efficient and inefficient ones. The main aim of the paper is to find the efficient frontier and identify optimal benchmark for inefficient regions as a strategy for enhancing their economic structure.
Keywords: Efficiency, Competitiveness, Geographic Model, NUTS 2 Region, Sbmt Vrs Dea Model, Super-Efficiency
JEL classification: R58, R13, R11, R15, O18, C61, C67

Open Access Article SciPap-788
The Structure of Municipal Council Committees of Local Governments of Hungary Before and After the Local Elections of 2014
by Mariann Marincsák, Gabor Kozma, János Pénzes

Abstract: The aim of the present paper is examine the committee structure of municipal councils of Hungarian settlements having a population over 5,000 before and after the local elections of 2014, and to analyse the presence of external experts in the work of the various committees. The most important findings can be summarized as follows: the average number of municipal council committees shows a strong correlation with the size of the settlements. The roles of the individual sectors as filled in the municipal council committees, and the changes to the same, are affected by amendments in the relevant laws and the subsequent governmental measures. The participation of external members in the municipal council committees is typical primarily in sectors that are less important and require mainly professional knowledge; at the same time, municipal councils strive to keep external members away from the work of committees discussing issues that are confidential or otherwise sensitive from the point of view of the local governments.
Keywords: Municipal Council Committees, Hungary, Size Of Settlements, Democratism, Local Election Of 2014
JEL classification: H75, H76, Z18

Open Access Article SciPap-789
Diversity of Capitalism in the European Post-Socialist Economies: The Balkan States at a Crossroads
by Michal Mádr, Luděk Kouba

Abstract: The main aim of the paper is to classify the types of capitalism in the Balkan states in the context of the European post-socialist countries and identify the principal strengths and weaknesses of institutional organization in these countries. The paper uses Amable’s approach, which is supplemented by the influence of the political environment. The paper identifies two different capitalist clusters in the Balkan area: market economies (Bulgaria, Croatia, Montenegro and Romania) and hybrid economies (Albania, Bosnia and Herzegovina, Macedonia and Serbia). The Balkan countries are compared with the other post-socialist economies, the EU-8 and post-soviet countries. Within the Balkan States, only Croatia and Montenegro are approaching the EU-8 economies, while on the other hand, Albania has some characteristic in common with the Caucasian republics. In general, the Balkan States achieve better results than the post-soviet states; however, there are some common weaknesses: low quality of the education system and inefficient financial system, and rigid labour market in Albania, Croatia and Romania and underdeveloped political system in Bosnia and Herzegovina.
Keywords: Balkan States, Diversity Of Capitalism, Institutional Complementarities, Post-Socialist Countries
JEL classification: P16, O52, O11

Open Access Article SciPap-790
Marketing Communication Effects on the Specific Segment of Czech Singles
by Martin Klepek, Kateřina Matušínská

Abstract: The purpose of this article is to present a research on Czech singles from the marketing communication point of view. Article determinates the theoretical concept of integrated marketing communication in the introductory section. Further the results of descriptive and exploratory analysis describes segment from marketing potential perspective. For the purpose of collecting data, the survey method was chosen with the use of online self-administrated questionnaire. The final sample consists of 309 respondents living voluntarily single. The data were analysed by SPSS software. Descriptive statistics showed high persuasive effect of recommendations, competition and sales and loyalty programs. Mobile advertising and promotional events had the lowest effect. Factor analysis disclosed two underlying factors. These factors explained structure in the data and showed important similarities with theoretical categorisation of communication mix.
Keywords: Factor Analysis, Consumer Behaviour, Communication Mix, Marketing Communication, Market Segmentation, Singles
JEL classification: M31

Open Access Article SciPap-791
Evaluating the Effect of IFRS Adoption on the Financial Position of Commercial Banks in Nigeria
by Edirin Jeroh, Edesiri Godsday Okoro

Abstract: This study is designed to evaluate the effect of the adoption of the International Financial Reporting Standards (IFRS) on the financial position of banks in Nigeria. In order to achieve this, we adopted a quantitative research design that primarily focused on the construction of quantitative data by obtaining the required information on Total Assets, Liabilities and Equities needed for the purpose of data analysis from the annual reports and accounts of three sampled banks in Nigeria. Analysis was based on periods before and after IFRS adoption and was done using the Ordinary Least Square technique. Findings from this study show among others that IFRS adoption significantly and positively affected the financial position of the sample banks in Nigeria. On the basis of our findings, we recommend that all organizations, as a matter of urgency, should be made by law to comply with the provisions of IFRS, and the continuous training and retraining of accountants, preparers of financial statements and all stakeholders must remain a re-occurring decimal generally in corporate entities, and in banks (in particular) in Nigeria.
Keywords: IFRS, Equity, Liability, Corporate Financial Reporting, IAS, Ngaap, Assets
JEL classification: M41, M49, G21

Open Access Article SciPap-792
Identification of Suitable Parameters of Research in the Czech Republic E-Commerce Environment
by Vít Janiš, Pavel Žufan

Abstract: The aim of this paper is to formulate recommendations for successful conduction of a questionnaire survey in field of the Czech e-commerce based on in-depth interviews performed with representatives of ten companies. The paper concludes that a questionnaire survey with estimated response rate of 15-30 % is feasible under certain conditions and outlines a specific procedure of how to achieve that. The key of successful conduction of a survey was identified to be winning the trust of respondents (e.g. auspices of a professional association in the field) and appropriate way of addressing respondents (via the professional network LinkedIn, email and phone). Due to unpopularity of questionnaires, personal interviews seem to lead to a higher response rate. Offering the final results of intended research can be an appropriate motivational element for respondents. Based on the previous research, the paper also identifies optimal time of invitation of respondents for participation in a survey (between 16:01 and 20:00 on Fridays). Appropriate formulation of questions and answer options is also important, as well as anonymousness of gathered data.
Keywords: Qualitative Research, E-Commerce, Strategic Management, Grounded Theory
JEL classification: B49, M19

Open Access Article SciPap-793
HIV / AIDS and Macroeconomical Performance: Empirical Evidence From Kenya
by Bernhard Ishioro

Abstract: This paper contributes to the investigation and exploration of the impacts of HIV/AIDS on the economic performance of Kenya. It evaluates the HIV/AIDS profile and socio-economic performance of the Kenyan economy before and during the epidemic era. The paper attempted a robust examination of the relationship between HIV/AIDS and major economic, education, demographic and health indicators in Kenya. The paper applied the step by step Wiener-Granger causality tests; and found that HIV/AIDS Granger-causes tuberculosis, life expectancy at birth, population growth, gross primary school enrolment and economic growth while urbanization, proportion of population under 15 years, rural population and gross primary school enrolment were identified as the determinants of the prevalence of HIV/AIDS in Kenya. The paper recommends a combined HIV mitigation surveillance approach and a post epidemic reconstruction of both human and social capital.
Keywords: Economic Growth, Hiv/Aids Epidemic, Kenya, Wiener-Granger Causality
JEL classification: J11, C18, O15

Open Access Article SciPap-794
Use of External Sources of Financing in the Construction Industry
by Irena Honková

Abstract: This article analyzes the use of external sources of financing in the construction industry. The article responds to the claim that managers of companies in the construction industry prefer bank loans and the fact that a large volume of bank loans failed to their default. The task of this article is to map the current business situation, and the use of external financing types. The survey method chosen was empirical inquiry. It was necessary to determine the size of a representative sample as the entire population was too large. The questionnaire survey revealed that the most frequently used sources of financing include unpaid invoices to suppliers and advances received from customers. Bank loans as initially preferred tool for external financing placed on the third place. Given that the two main sources of financing are short-term nature of resources there are concerns that companies financed with short-term funds also fixed assets and therefore so have solvency problems.
Keywords: Financing, External Sources, Construction Industry, Unpaid Invoices, Bank Loans
JEL classification: G00

Open Access Article SciPap-795
Human Resource Management in Small and Medium-Sized Enterprises in the Czech Republic
by Martina Fejfarová, Hana Urbancová

Abstract: Human resource management is a crucial factor that determines the success of small and medium-sized enterprises in the market and its competitiveness. Small and medium-sized enterprises in the Czech Republic form a significant group of employers in the Czech Republic since they employ two thirds of employees out of the total number of the work force and represent over 99% of the overall number of active business entities. The main objective of the article is to evaluate the level of human resource management in small and medium-sized enterprises in the Czech Republic. Partial objectives of the article are to define a human resource management profile of small and medium-sized enterprises in the Czech Republic and to test dependencies between selected qualitative features. The data (n = 499) was collected by means of a questionnaire technique. The results of the survey confirmed important human resource management internal factors (the size of the enterprise, the position of the HR manager in top management and the existence of the HR department) and helped to define the human resource management profile of small and medium-sized enterprises in the Czech Republic.
Keywords: Human Resource Management, The Czech Republic, Small And Medium-Sized Enterprises, Survey, Hrm Activities
JEL classification: J24, M12, O15

Open Access Article SciPap-796
Comparison of Czech and Estonian System(s) of Health and Sickness Insurance
by Jan Daler

Abstract: The paper deals with two systems - health and sickness insurance in two countries. In Czech Republic, where those systems are separated, and in Estonian Republic, where exists only health insurance, where belongs also benefits for temporary incapacity to work (the benefits falling under sickness insurance in Czech Republic). Most features of the systems are similar in both countries (such as solidarity, obligation of insurance, state guarantee), but there are also differences. The main one is that state pays for a small group of people in Estonian Republic, while state insured people cover more than half of the insured people in Czech Republic. Also one benefit is different in each country. People in Czech Republic receive compensatory benefit in pregnancy and maternity, in Estonian Republic adoptive parents receive the benefit called adoption benefit.
Keywords: Czech Republic, Health Insurance, Sickness Insurance, Features, Benefits For Temporary Incapacity To Work, Estonian Republic
JEL classification: H4, I1

Open Access Article SciPap-797
A Comparative Study of the Legal Liability of Executives in LLC in the Czech Republic and Some of Other EU Member States
by Eva Daniela Cvik, Radka Macgregor Pelikánová

Abstract: The limited liability company (LLC) appears to be among the most popular forms for business conduct for small and medium sized enterprises (SME) in the EU. Due to the extreme competitiveness and challenging global market, there is a strong external, as well as internal, pressure on the executives of LLCs from various angles. Their challenging situation is projected within the legal framework of the status and the function of executives, and in particular in the regime of their legal liability. It is highly instructive to compare the Czech regime to regimes in other EU member states while focussing on the liability issue. Interestingly, there is a big diversity in modes of addressing this liability and, consequently, the very same problem of the business judgment rule and the liability coverage is resolved in a different manner. Ultimately, the insurance approach v. professional advice approach shows how the shifting of the liability of executives of LLCs is done in various legal systems and testifies about underlying concepts and particularities of conducting business in EU member states.
Keywords: Limited Liability Company (Llc), Statutory Authority, Liability, Executive Service Agreement, Re-Codification
JEL classification: K22, M12

Open Access Article SciPap-798
The Manufacturing Industry in the Czech Republic: Indirect Support for Research and Development
by Nina Bočková, Tomáš Meluzín

Abstract: This paper describes the historical development of indirect support in the Czech Republic and analyses the available data from the period 2005–2013. The aim of the research is to demonstrate a dependence between the introduction of a new type of support for research and development and the increase in investment in companies’ own R&D in the manufacturing after 2005. The objects of the research are all domestic concerns engaged in business that reported the financing of their own research by means of the deductible item for R&D. The number of concerns in individual branches of the manufacturing industry differs markedly, for which reason more-detailed analysis of individual branches did not comprise part of the investigation into the subject of this research. We used regression analysis to monitor the development of R&D expenditure in the manufacturing industry. Exponential regression was best suited to the estimation of non-linear parameters. By analysing secondary data, we discovered that the introduction of the deductible item in 2005 is acting as support for increasing companies’ own investment in R&D. The tax incentive is a method of financing a company’s own R&D that is being used increasingly often.
Keywords: Research, Manufacturing Industry, Development, Tax Credit, Effectiveness
JEL classification: H32, L60, C20, O39

Open Access Article SciPap-799
From Customer Orientation to Social CRM. New Insights From Central Europe
by Pavel Bachmann, Kateřina Kantorová

Abstract: In the context of the gradual virtualization of social relationships, the traditional form of relationship management has begun to change. Original concept of customer relationship management (CRM) based rather on face-to-face and offline communication in the physical environment is converting into social CRM (SCRM), where the contact through social networks and relationships within online communities. Therefore, the paper aims to analyse SCRM in medium and large businesses based on the primary research. Research sample (N=81) includes medium and large enterprises operating in the Czech Republic. The findings showed that sampled firms perceived the digital marketing as slightly more important than the traditional type of marketing. More than nine-tenth of companies considered CRM to be a significant marketing tool for their own practice. Subsequently, SCRM was perceived as significant by approximately two-thirds of respondents. Czech enterprises practice rather investigation of external online communities and contributing to them than building their own internal online community. Finally, the social sites are in this process used rather for short-term communication with the customer than for the purpose of self-promotion or data mining. Furthermore, some differences were found in approach to digital marketing, CRM, and SCRM between consumer oriented and business oriented organizations.
Keywords: Czech Republic, Social Media, Business Intelligence, Customer Relationship Management, Social Crm
JEL classification: M15, M31, C8

Open Access Article SciPap-800
Development of Socioeconomic Disparities Across the EU 2004+ Countries
by Petra Applová

Abstract: The aim of this paper is to determine whether it is possible, in line with the purpose of the cohesion policy, to identify the elimination of disparities across the EU 2004+ countries and their cohesion regions, as measured by a relevant method of geographical analysis of disparities. The disparities were assessed, based on the indicator of gross domestic product per capita, both for each country as a whole and for individual cohesion regions. We have chosen the Theil index as the primary method of assessment, with the results then being checked using the Adjusted Geographic Concentration index (AGC). Both methods have consistently shown that, although there are disparities in the GDP per capita indicator among the countries and their cohesion regions, the disparities can be qualified as relatively low (with the exception of Hungary) based on the values gained using the two methods. Regarding the actual development of disparities, the Theil index identified a significant increase, especially after the crisis year of 2008, while the harmonized AGC index of production revealed, with regard to the different development of individual national indices (stagnation, decline and growth), that the development of discrepancies in wealth creation has not changed.
Keywords: Regional Disparities, Theil Index, Concentration Of Production, Adjusted Geographic Concentration Index (Agc)
JEL classification: R11, O57

Open Access Article SciPap-801
The Analysis of the Dependence of the Road Transport Infrastructure and Transport Performances in the Relation With GDP of the Czech Republic
by Barbora Antonová, Jan Chocholáč, Ivo Drahotský

Abstract: The economic performance of a country can be measured by various macroeconomic indicators. Gross domestic product (GDP) is considered as one of the most important and closely critical indicator of economic performance. GDP and its development in time are influenced by many factors. Transport infrastructure is one of the pillars of economic development. The paper deals with the relationship between the quality of the road transport infrastructure and transport performances in the Czech Republic and the economic development (measured by the key macroeconomic indicator, GDP growth rate). The attention is focused on the influence of the range of highway infrastructure and road transport performances in the Czech Republic on GDP. Statistical methods (the regression and correlation analysis) are used for examining the relation between these indicators.
Keywords: Gross Domestic Product, Economy Growth, Transport Infrastructure, Transport Performance, Road Freight Transport
JEL classification: H54