SciPap, Volume 25, Issue 2 (2017)

Open Access Article SciPap-859
Risk Analysis Using Extended SAFMEA Methodolody on Example of Incubated Companies
by Petr Cizek

Abstract: The paper examines the use of the Failure Modes and Effect Analysis (FMEA) methodology – in variant of statistical FMEA (SAFMEA) on the risk factors of incubated technological companies. Each risk factor were evaluated by mentors / management of chosen business incubators by using the Severity, Likelihood, Detection (conventional) and Influence of mentor (enhanced) parameters. The results are shown in different perspective – by using risk priority number (RPN) indexes, risk matrix and risk map. As the most significant risk factor was identified Funding issues - cash flow (followed by Customer acquisition issues and Funding issues – capital). However the results also show very high level of variance within the answers of the respondents. The paper also examines the impact of the enhanced nonconventional parameter (Influence of mentor) on the RPN index results where it was identified that some risk factors (such as Issues with business model) can be substantially reduced by the influence of the mentor / consultant.
Keywords: Risk Management, FMEA, Safmea, Incubated Companies, Business Incubator, Risk Analysis
JEL classification: M13, D81

Open Access Article SciPap-860
The Effect of m3 Monetary Aggregates and Bank Loans on the Economic Growth of Countries in the Eurozone, the USA and Japan
by Liběna Černohorská, Vojtěch Kula

Abstract: This paper examines the influence of selected indicators of the banking sector (M3 monetary aggregates and bank loans provided to the non-financial private sector) on economic growth (GDP) in the Eurozone, the USA and Japan. Cointegration of these selected indicators of the banking sector has been demonstrated in relation to the development of GDP using the Engle - Granger cointegration test. These tests were applied to selected statistical data from the years 2000 to 2015. The first was to determine the optimum delay using Akaike criteria for all-time series analysed. Then the presence of a unit root was analysed using the Dickey - Fuller test. Based on the test results, time series were excluded which appear to be stationary. If the conditions were met, testing then continued with the Engle - Granger test to detect cointegration relations, which would determine a relationship between selected variables. Based on these tests, it was found that at a significance level of 0.05, no cointegration relationship exists between any of the time series in the countries surveyed.
Keywords: Economic Growth, M3, Cointegration Test, Banking Sector, GDP
JEL classification: C32, E47, E51

Open Access Article SciPap-867
Who Reacts to Income Tax Rate Changes? the Relationship Between Income Taxes and the Motivation to Work: The Case of Azerbaijan
by Orkhan Nadirov, Bruce Dehning, Khatai Aliyev, Minura Iskandarova

Abstract: This research investigates the effects of income taxation on the motivation to work by employing a survey method for the Azerbaijan population. The two research questions of interest are, if subjects consider income taxes when deciding how many hours to work and how subjects would react to a hypothetical 5% income tax rate increase. Also examined are the responses to these questions between subjects with different socio-economic characteristics. Examining cross-sectional data of 326 respondents reveals that income taxes do not influence Azerbaijan labour market participants’ motivation to work, regardless of their socio-economic characteristics. Empirical results indicate that reactions to hypothetical income tax rate increases show that the strength of response differs significantly across gender, age, marital status, field of employment, and income level. However, there are no significant results for differences in gender and after-tax wages. Our study contributes to the labour supply literature with the theory that after an income tax is imposed, both the average price and the average utility of leisure is greater for high wage earners than low wage earners.
Keywords: Income Taxes, Motivation To Work, Survey Design, OLS Method, Azerbaijan
JEL classification: J22, H24

Open Access Article SciPap-866
Nongovernmental Nonprofit Organisations in Social Services: Theories Versus the Real Situation in the Czech Republic
by Jakub Pejcal, Jakub Dostál

Abstract: The national economy can be divided by theory into four segments - public sector, the nongovernmental non-profit sector, the nongovernmental for-profit sector, and the household sector. For a long time, the nongovernmental nonprofit sector has been considered to be a very active and important segment in the area of providing public services. In this paper, we outline the actual situation in the Czech Republic, the role and scope of Czech nongovernmental nonprofit organisations in the field of social services that is significant. On the basis of official statistics of the Ministry of Labour and Social Affairs of the Czech Republic (The Register of Social Service Providers) and other databases (Register of Economic Entities and Public Register), we show that almost two third of all social services (approximately 5,600 services) is provided by nongovernmental nonprofit providers (especially by Public beneficiary corporations, Churches and religious communities and Societies). The contribution also include detailed characteristics of these organizations (their legal form, the location of their seat, number of provided services, etc.). The findings and results of our research are then critically discussed with regard to relevant theories and results of previous studies.
Keywords: Public Services, Distribution Of National Economy, Nongovernmental Nonprofit Sector, Nongovernmental Nonprofit Organisations, Social Services
JEL classification: A13, L31

Open Access Article SciPap-873
Mystery E-Mail/Website Customer Service. a Case Study of Retail Companies
by Roman Kozel, Šárka Vilamová, Liliana Hawrysz, Katarzyna Hys

Abstract: This paper examines the customer service process in 5 retail companies using the method of mystery e-mail/website visits. The following study question was formulated in this article: Does the communication effectuated by the retail sector via e-mail and the content of their websites, fulfill customer expectations? The study was conducted in 60 car dealer centers of Škoda in Poland and the Czech Republic. The adjustment of the standards of customer service in such showrooms constitutes a vital issue in the ambit of a company’s functioning, both in the Polish and Czech markets. Perfecting customer service standards by applying communication through the Internet (e.g. the use of e-mails and company websites) for the entrepreneurs functioning in the contemporary market, constitutes a promise of adaptations of standards aimed at meeting customer expectations. It reflects the ability and proclivity to become involved even in extra-economic activities, which, in the long run, might contribute to better economic effects of companies.
Keywords: Competitiveness, Customer Service, Mystery E-Mail, Mystery Website Visits, Retail Companies
JEL classification: M31, O14, D81, D83

Open Access Article SciPap-863
Decomposition of Technical Efficiency of Selected City Libraries From the Czech Republic
by Iveta Vrabková

Abstract: The aim of this article is the determination of the gaps of efficiency of 33 city libraries using decomposition of technical efficiency to pure technical efficiency and scale efficiency. The first model estimates the technical efficiency of city libraries from the perspective of the traditional mix of inputs and outputs that are applied in the DEA models; the inputs are represented by the so-called production and technological resources, and the output is represented by the actual demand given by the number of customers. The second model estimates the technical efficiency of operating conditions of selected city libraries against the actual number of visitors, whilst it is based on the assumption that a city library shall have an appropriate space, optimal access in the form of operating time, and optimal number of places for studying. The results depend on the input or output orientation of models and on the expected returns to scale. As the key gaps of efficiency, the models marked – non-topical and large library collection, number of readers and visitors, and also unutilized spaces of city libraries.
Keywords: City Libraries, Dea Models, Pure Technical Efficiency, Scale Efficiency, Total Technical Efficiency
JEL classification: C67, H10

Open Access Article SciPap-874
A Study of Generation Z From the Communication Perspective of Universities
by Kateřina Kantorová, Hana Jonášová, Jan Panuš, Roman Lipka

Abstract: This paper deals with the examination of high school and college students’ preferences for choosing the university who were born in the period of mid 1990s. The goal of the paper is to conduct more detailed analysis of the most common means of communication from the perspective of potential and existing customers (in this case, students). We approach how members of this generation make decisions when they choose a university to study and what content of the information affects their final decisions. Research conducted for this article include at most 900 respondents from among high school students and first year university students. It is evident that students are affected more by information concerning their future than those that make life in the study. A big influence on the decisions of the university have information that students gained from their friends or family who the studied similar schools in the past. We found that within a generation Z the older generation does not have such an influence on their decisions. Our findings also show a degree of decision-making dynamics of two students subgroups comparison - students who doesn´t study the university and those who already are studying. The valuable information for business sphere about the way how examined groups of student gather information is presented in the paper. This information can significantly help to understand and better targeting that groups.
Keywords: Media, University, Questionnaire, Generation Z, Marketing
JEL classification: I23, M31

Open Access Article SciPap-875
Application of Corporate Controlling in the Czech Republic
by Michaela Jánská, Čeněk Celer, Marta Žambochová

Abstract: In order to secure corporate control continuity, the management utilises instruments of controlling that begin to be applied even in the environment of small and medium firms. The goal of the report is to find the reasons and the scope of controlling application in companies operating in the Czech Republic. In order to fulfil the objectives of the article, an analysis of expert literature and studies dealing with the issues in question has been performed. The data obtained during the electronic questionnaire investigation in the firms of the Czech Republic was used as primary data. The application of controlling in firms has been examined based on the number of employees in the company and their economic focus. For the presumption in question, hypotheses had been expressed where the statistical importance and correlation relationship have been examined. The results ascertain the growth of controlling in the enterprises and the lowering discrepancy between the application of controlling activities from the standpoint of the number of employees and economic focus. The article is concluded with a discussion of the ascertained results of the actual investigation complemented with the expert knowledge of other researchers.
Keywords: Controlling, Control Management, Application Of Controlling, Number Of Employees, Economic Sector, Economic Importance
JEL classification: M21

Open Access Article SciPap-865
Non-Financial Factors of Performance: The Case of Mechanical Engineering Companies in the Czech Republic
by Mária Režňáková, Michal Karas, Michala Strnadová

Abstract: Successful achievement of strategic goals requires an effective performance management system, i.e. determining the appropriate indicators measuring the rate of goal achievement. These indicators are known as key performance indicators or value drivers according to the principles of value-based management. Performance is monitored by both financial and non-financial indicators. In order to gain further insight into the topic, this paper presents the results of research identifying the non-financial factors that affect the performance of mechanical engineering enterprises in the Czech Republic. The data were obtained from a questionnaire survey of the enterprises’ senior management. The results of the survey were evaluated on the basis of response rate. The evaluation also included a comparison of the managers’ opinions and the performance of their enterprises – measured by return on equity. The results of the analyses show that the factors most detrimental to enterprise performance include the incompetence of responsible employees and the disregard of the customers’ requirements. Factors most frequently shown to increase the value of the enterprise are the product quality, product innovation and flexibility in meeting customers’ requirements.
Keywords: Performance Measurement, Value-Based Management, Value Drivers, Financial Ratios, Mechanical Engineering Enterprises
JEL classification: G30, G32

Open Access Article SciPap-879
Strengthening of Regional Tourism Development by Creating Tourism Clusters in the Cities of Ukraine
by Anastasiia Bezkhlibna, Svitlana Nykonenko

Abstract: In the article it is considered the topical issues of creation of tourist clusters in regions. Tendencies of the international tourism development demonstrates growth of employment in the economy. Functioning of tourist clusters as tourist centers is obviously possible only when there are functioning and harmonious cooperation of systems of tourist attractiveness, transport, service and quality service control, insurance system and support of tourists’ personal security, systems of tourist pointers and tourist infrastructure. There were chosen the following factors of a tourist cluster creation: geographical closeness, demand availability, formation of the general development strategy, hierarchical functional communications between participants. For the purpose of clarifying the relevance of creation of a regional tourist cluster, the estimation algorithm of the ability of its creation was proposed, and it consists of 8 stages. Each stage is detailed. The participants (subjects) of a potential cluster are systematized. SWOT analysis is proposed for determination of drawbacks and advantages of tourist clusters functioning. This will allow to improve work of a cluster participants.
Keywords: Regional Development, Tourism Perspectives, Partnership, Cooperation, Tourism Cluster
JEL classification: R58

Open Access Article SciPap-869
Measuring the Level of Leanness of Production - Use of Production Lead Time
by Michal Medonos, Marie Jurová

Abstract: To manage any company process, it is essential to measure its performance. Lean production as a process of a change in a production, which is one of the main company processes, is no exception. We see that the universal methodology of a practically applicable evaluation of the level of leanness of production is missing. Many authors use some form of qualitative methodology - especially in form of questionnaires. In this paper, we focus on an analysis of possible approach using a quantitative methodology. We take Little's Law formula describing direct correlation between lead time and work in process to use lead time as a main metric to evaluate leanness of production. Thanks to the formula, we know that the shorter the production time is, the less buffers are kept and the more effective and thus the “leaner” the material flow is. As a benchmark for ideal lean company, we use one piece flow representing the top level of lean production.
Keywords: Performance Measurement, Lean Manufacturing, Little's Law, Variability, Lead Time
JEL classification: M11

Open Access Article SciPap-864
Impact of Age of the Entrepreneur on the Export Financing. Case Study From Slovakia
by Monika Sobeková Majková, Aleksandr Ključnikov, Ján Solík

Abstract: SMEs are frequently experiencing problems with obtaining capital for the expansion and cross-border activities due to their specific characteristics. Smaller enterprises owned or managed by younger entrepreneurs belong to the most vulnerable segment. The aim of this paper is to bring the statistical evidence whether the age of an entrepreneur is a significant factor with the relevant impact on export activities financing in case of SMEs in Slovakia. The presented results are based on the research carried out among Slovak SMEs in 2016 in comparison with the data from the international survey called TwinEnterpreneurs Regional Study that was performed by the Young Entrepreneurs Association of Slovakia and Vienna Business Agency in 2013. Application of Pearson´s chi square statistical analysis of the results brings clear statistical evidence that while the age of the owner is not a significant factor in the export decision making process, it becomes a significant factor in case of the export financing.
Keywords: Smes, Export, Age, Young Entrepreneurs, Financing Export
JEL classification: G11, G32

Open Access Article SciPap-858
Tendencies of Improvement of Local Self-Government in Political Parties’ Programmes and Their Implementation
by Diana Šaparnienė, Iveta Reinholde

Abstract: Having performed literary analysis, the aspects of improvement of local self-government in the context of new public governance have been theoretically substantiated. Referring to theoretical insights, the provisions of programmes of the biggest political parties of the Republic of Lithuania related to local self-government have been analysed covering period from December 12, 2012 to March 31, 2014. In addition, the agendas and reports of the meetings of the Government of the Republic of Lithuania have been analysed in order to determine main tendencies of improvement of local self-government that receive biggest attention from the political parties in decision making process. The research has shown that improvement of local self-government in the programmes of political parties is oriented to 4 tendencies: 1) independence/autonomy; 2) strengthening of democracy and civil society; 3) improvement of governance; 4) quality of public sector services. In the agendas of the meetings of Government of the Republic of Lithuania mainly the issues related to efficiency, effectiveness, legitimacy of local self-government, strengthening of abilities of civil servants have been analysed.
Keywords: Local Self-Government, New Public Governance (Npg), Political Parties, Programmes Of Political Parties, Republic Of Lithuania (Lt)
JEL classification: L38

Open Access Article SciPap-878
Decision-Making of the Investment Portfolio Applying Intermarket Analysis
by Diana Cibulskienė, Martynas Brazauskas

Abstract: The paper deals with the application possibilities of the intermarket analysis for the investment portfolio formation. The aim of this paper is to analyze how to adapt various financial market relations in order to assess the attraction of the different asset classes and taking into account it to form the investment portfolio. In the paper three different investment portfolio construction strategies have been analyzed. The first investment portfolio is formed from the decreasing financial markets, the second - from the rising financial markets, and the third portfolio includes all the financial markets. The study results showed that investing in equal proportions into stocks, bonds and commodities is more effective solution than investing in the market or in the reverse market. Including the currency into the basic portfolio has reduced the risk, but due to the declined returns the efficiency also decreased. The study results showed that the ‘permanent portfolio’ formation of the three asset classes is sufficiently effective in order to reduce investment portfolio risk and to achieve a reasonable return.
Keywords: Intermarket Analysis, Financial Markets, Stocks, Bonds, Commodities, Currencies
JEL classification: G11, G15

Open Access Article SciPap-861
The Role of Cross-Border Cooperation Initiatives in Respect of Regional Development: Case Study of Euroregion Neisse
by Pavel Zdražil, Grażyna Kozuń-Cieślak

Abstract: The paper seeks to examine the importance of cross-border cooperation on regional development. It focuses on the euroregion Neisse since it fits some important assumptions that need to be matched to overcome limitations that are connected to examination of any cooperation initiatives. Its objective is to find whether regions of euroregion, Neisse, experience different development patterns in economic performance compared against the neighbouring regions in their country. We employed a two-step analysis of volumes, where the correlation analysis is extended by testing for Granger causality. To check the non-stationary issue, the analysis runs the ADF unit root test. The analysis found that the initiatives of the cross-border cooperation appear to be an important instrument of the European Union cohesion policy in the case of the euroregion, Neisse, but at the same time, are very ambiguous as well. In our case, even some significant relations have been identified in both correlation and causality sense; no provable promotion of economic performance has been measured. In summary, we may suggest that some linkages within the euroregion, Neisse, do exist, but we may ask whether their existence is unfavourable or whether their potential is or is not used in the best way possible.
Keywords: Regional Development, Granger Causality, Cross-Border Cooperation, Neisse, Euroregions, Economic Performance
JEL classification: O47, R11

Open Access Article SciPap-862
Barriers and Potential Challenges in the Development of Social Businesses in the Czech Republic
by Mirka Wildmannová

Abstract: Social entrepreneurship is characterised by a high degree of innovation and creativity. The topic of social entrepreneurship is currently often discussed and it is one of the trends of contemporary social economy in the CR. The Czech Republic is one of the countries that start discovering the benefits of social business, especially at the regional level. Experience from abroad clearly identifies the positive impacts of social entrepreneurship on the national economy. Social enterprises are one of the major stakeholders in the labour market employing socially disadvantaged people. This paper aims to identify the main barriers to the activities of social enterprises. To identify those barriers, use was made of a questionnaire survey in social businesses. Based on the results of the survey it was identified that the current main barriers include the non-existence of the social entrepreneurship act, insufficient definition of criteria for social enterprises and inadequate inter-departmental coordination. Potential future challenges appear to be legislative and systematic state financial support and preparation of the environment for social activities within the framework of regional cooperation including the establishment of social incubators.
Keywords: Public Administration, Social Policy, Social Economy, Social Enterprise, Social Cooperatives
JEL classification: L31, M14

Open Access Article SciPap-868
Selected Business Intelligence Methods for Decision-Making Support in a Finance Institution
by Filip Mezera, Jiří Křupka

Abstract: This article deals with decision-making support methods’ implementation in a medium size financial company with international operations. The objective of this article is to show the abilities of these methods to precise decision-making of management. At the beginning of this article there is briefly described the existing situation in this business sector in Central Europe. After that part Business Intelligence methods are described as well as the reasons while these methods have been introduced in small and medium enterprises. These methods are dependent on data, on acquisition of data and on validation of this data. Pre-processed data can be used for standard reporting. Utilization of this type of reporting is described on two examples in this article. These examples show dependences between exchange rate volatility and a specific period of the year. Then follows a demonstration of client classification - firstly on historical data from years 2010 to 2013 utilizing a cluster analysis. New clients have then been provisionally allocated to already designed groups thanks to the above-mentioned description of clusters. When the external environment changed, due to primarily the Czech National Bank interventions, it has been essential to design better classification methods for new clients. These methods are described in this article and results of these classification methods are compared.
Keywords: Decision-Making, Business Intelligence, Classification, Electronic Money Institution, Reporting
JEL classification: C15, D89, O16

Open Access Article SciPap-870
Implementation of the Civil Service Competency Model in Lithuania
by Laima Liukinevičienė

Abstract: The article presents summarized results of a survey of the New Civil Service Competency Model which has been implemented in the Republic of Lithuania since 2013. The survey focuses on the implementation process. The study was intended to determine the responsibilities of the state and municipal and other organizations while implementing the Model as well as the purposefulness of its development. The benefit of the Model implementation for the entire public administration system, on the one hand, and an individual institution, on the other, was granted by thorough analysis of relevant scientific literature including the investigation of proper national and institutional (municipal) documents. The purpose was to find out whether separate institutions must be involved in the Model implementation and what factual measures they had to be responsible for. The results of the survey showed that separate institutions were actively involved in the personnel recruitment and training processes through implementing the Civil Service Competency Model (hereinafter CSCM, the Model), and the organizations were undergoing structural changes aiming at HR management improvement. The following directions of the institutional process improvement were suggested by the study: to increase the wider perception of the Model opportunities; to activate its use and application in such processes as personnel planning, assessment and other.
Keywords: Modernization Of Public Administration, Civil Service, Development Of Human Resources, CSCM, Municipality Institutions
JEL classification: O15, H11

Open Access Article SciPap-871
The Role of E-Government in Mitigating Corruption
by Veronika Linhartová

Abstract: E-government cannot be a panacea for fighting corruption, but per a lot of studies, it should be considered as a tool for reducing corrupt behaviour of officials in the public sector. Easy access to information for all citizens using e-government can result in greater transparency, which limits the public official to accept or even demand a bribe. This paper analyses, role of e-Government in mitigating corruption in 117 countries, regardless of their geographic location, political regime, or economic development between years 2003 and 2014. It was found that the use of information technology and the development of e-government contribute to reducing the level of corruption in the country. Used correlation and regression analysis confirmed the possible reduction of corruption both for the most economically developed countries by 0,12% for one percent increase of the use of e-government, as well as by 0,14% of the least economically developed countries.
Keywords: Corruption, E-Government, Official´s Discretionary Power, Anti-Corruption Tool, Corruption Perception Index, E-Government Development Index
JEL classification: D73, E6, H41

Open Access Article SciPap-872
Quality Analysis of the Basic Register of Rights and Obligations
by Tomáš Lechner, Radka Lechnerová, Lenka Silvarová

Abstract: Basic registers of public administration have been fundamental part of the Czech eGovernment already for more than 4 years. Public authorities work with reference data recorded in the basic registers in rightful cases and in the scope pursuant to the legal regulations, whereas a list of these cases and relevant authorizations are filed in the Basic Register of Rights and Obligations in the form of agendas and agenda activity roles. The Register of Rights and Obligations should become a map for public authorities, their competencies and activities used to fulfil these lawful competencies, and it should be used for procedural optimization of public administration and as a background for performance allowance for state administration performance. This contribution deals with quality analysis of registration agenda in the Register of Rights and Obligations, high level of which is necessary for achieving set goals. The research is based on three different approaches: a statistical analysis of registered agenda code list, a case study of agenda changes concerning keeping a permanent list of voters and a survey of current use of agenda activity roles for two selected agendas. Synthesis of obtained results gives us a picture of quality of agenda registration and activities in the Register of Rights and Obligations.
Keywords: Egovernment, Basic Registers Of Public Administration, Register Of Rights And Obligations, Agendas, Activity Roles
JEL classification: C10, H11, H76, K23