Strategic Focus in Turkish SMEs: Emergent or Deliberate Strategies?

Strategic Focus in Turkish SMEs: Emergent or Deliberate Strategies?

THE PROCEEDINGS OF
9th INTERNATIONAL
STRATEGIC MANAGEMENT
CONFERENCE
New Directions in Sustainable Growth and Innovation
Strategies
June 27-29, 2013, Riga-Latvia
9th INTERNATIONAL STRATEGIC
MANAGEMENT CONFERENCE
New Directions in Sustainable Growth and Innovation Strategies
June 27-29, 2013
Riga, Latvia
Honorary Presidents
Orhan ŞAHİN (Ph.D.)
Marcis Auzinsh, (Ph.D.)
Nihat Küçüksavaş (Ph.D.)
Chairman
Erol EREN (Ph.D.)
Co-Chairs
Oya ERDİL (Ph.D.)
Ali AKDEMİR (Ph.D.)
Editor
Mehtap ÖZŞAHİN
ISBN
978-605-86554-0-9
Organizing Institutions
Gebze Institute of Technology
University of Latvia
Arel University
Printed in
Net K›rtasiye Tan. ve Matbaa San. Tic. Ltd. Sti.
Taksim Cad. Yo€urtçu Faik Sok. No: 3 Taksim Beyoglu/ISTANBUL
Tel: (0-212) 249 40 60 (Sertifika No. 13723)
Statements of facts or opinions appearing in Proceedings of the 9th International Strategic
Management Conference are solely those of the authors and do not imply endorsement by the
Organization Committee or publisher
TABLE OF CONTENTS
SUSTAINABILITY AND GROWTH
Economic And Environmental Evaluation Via An Integrated Method Based On LCA And MCDA (FABIO DE
FELICE, FABRIZIO CAMPAGIORNI, ANTONELLA PETRILLO)
3
A Look At The EU Countries’ Carbon Dioxide Emissions And Turkey’s Sustainable Industrial Growth (SUDI
APAK, ERHAN ATAY)
13
The Strategic Role Of Infant Mortality In The Process Of Economic Growth: An Application For High Income
OECD Countries (ENGIN ERDOĞAN, MELIHA ENER, FEYZA ARICA)
21
Strategies Of Albanian Economy To Meet Economic Policies Of EU (TERIDA MEHILLI, FJONA ZENELI)
31
An Overview Of GDP And Internet Banking Relations In The EU Versus China (ERHAN ATAY, SUDI APAK)
41
New Patterns In Corporate Sustainable Growth?( JOHN PARM. ULHOI, HENNING MADSEN)
51
Development Of International Freight Transit In Latvia (ALDIS BULIS, ROBERTS ŠKAPARS)
61
The Impact Of Romania’s Eu Accession On The Foreign Direct Investments Location - A Manufacturing Sector
Analysis – (DANCIU ANIELA RALUCA, STRAT VASILE ALECSANDRU)
67
A Management Strategy Within Sustainable City Marketing Context: Cittaslow (ERCAN BALDEMIR, FUNDA
KAYA, TEZCAN KAŞMER ŞAHIN)
77
Analysis Of Iraq’s Pre-Import Inspection, Testing & Certification Program: An A’wot Analysis (ÖZGÜR ÖZMEN,
AHMET DEMIR, RAMAZAN TURAN, MIRAY CELEPLI)
87
The Link Between Unemployment Rate And Real Output In Eurozone: A Panel Error Correction Approach
(BÜLENT DOĞRU)
95
The Effect of Schooling Enrolment Rates on Economic Sustainability (FULYA TAŞEL, E. BEYZA BAYARÇELIK)
105
Power Perception Of Developing Countries In Their Sustainable Growth And Innovation Strategies (AHMET
UÇAKTÜRK, FAIK ÇELIK, HARUN DEMIRKAYA, TÜLAY UÇAKTÜRK)
113
Strategic Brand Management Based On Sustainable-Oriented View: An Evaluation In Turkish Home Appliance
Industry (T. SABRI ERDIL)
123
Enhancing Business Sustainability: Improving Business Policy’s Methodology By Managerial Principles’
Development (ROSTISLAV KOPITOV)
135
Natural Environment As A Strategic Issue For Firms: Theoretical Perspectives (KURTULUŞ YILMAZ GENÇ)
145
Effects Of Green Manufacturing And Eco-Innovation On Sustainability Performance (BÜLENT SEZEN, SIBEL
YILDIZ ÇANKAYA)
159
ORGANIZATIONAL BEHAVIOR AND BUSINESS ETHICS
Daddy, What’s Next? The Effect Of Paternalist Leadership On Perceived Uncertainty in Organizations Which Had
Gone Through Merger Or Acquisition (FUNDA ÖZER, BİNALİ DOĞAN, CİHAN TINAZTEP)
171
The Role of Psychological Capital and Trust in Individual Performance and Job Satisfaction Relationship: A Test of
Multiple Mediation Model (M.GÖKHAN BITMIŞ, AZIZE ERGENELI)
181
A Study Of Motivational Factors Associated With Peer-To-Peer (P2P) File-Sharing (MEHPARE TOKAY ARGAN,
METİN ARGAN, ALPER OZER, HUSEYİN KOSE)
189
iii
An Exploratory Research On Strategic Planning In Public Institutions: Turkish Prime Ministry Disaster And
Emergency Management Presidency Case (EBRU CAYMAZ, FEHMI VOLKAN AKYON, FAHRI ERENEL)
199
Impact Of New Entry Strategic Technology On Frequency Words Analysis In Translation, Literature And InterCultural Communication (EDLIRA ÇERKEZI, QANI MUKA, EVIS ÇELO, ALBA DUMI)
205
An Investigation Of The Relationship Between Social Loafing And Organizational Citizenship Behaviour (HIMMET
KARADAL, MUHAMMET SAYGIN)
215
Perceived Managerial And Leadership Effectiveness Within Turkish Public Sector Hospitals (UĞUR YOZGAT,
SAFIYE ŞAHIN)
225
The Effect Of Organizational Culture On Organizational Image And Identity: Evidence From A Pharmaceutical
Company (DURSUN BINGÖL, İRGE ŞENER, EMIN ÇEVIK)
233
In The Strategic Sense, Evaluating Transactional And Relational Employee’s Expectations As A Reflection Of
Emotional Contract (SEYFI TOP)
243
Manager’s Roles And Profiles: Evidence From Bursa (NILÜFER RÜZGAR, MUSTAFA KURT)
253
A Research To Determine The Relationship Between Organizational Justice And Psychological Ownership Among
Non-Family Employees In A Family Business (CEREN GIDERLER ATALAY, DERYA ERGUN ÖZLER)
259
The Effects Of Individual Creativity And Organizational Climate On Innovativeness (HÜLYA
G.ÇEKMECELIOĞLU, AYŞE GÜNSEL)
269
The Moderating Role Of Locus Of Control On The Links Between Perceived Ethical Problem And Ethical Intentions
Of Marketing Managers In Turkey (VOLKAN ÖZBEK, ÜMIT ALNIAÇIK, M. EMIN AKKILIÇ, FATIH KOÇ)
277
Does Person-Organization Fit Moderate The Effects Of Affective Commitment And Job Satisfaction On Turnover
Intentions? (ESRA ALNIAÇIK, ÜMIT ALNIAÇIK, SERHAT ERAT, KÜLTIGIN AKÇİN)
285
Perceived Academic Code Of Ethics: A Research On Turkish Academics (MÜGE LEYLA YILDIZ, GÜLNUR İÇLİ,
A. ERCAN GEGEZ)
295
Business Ethics, Social Responsibility And Corporate Governance: Does Strategic Management Field Really Care
These Concepts? (EYÜP AYGÜN TAYŞIR, YENER PAZARCIK)
307
The Impact Of Corporate Social Responsibility, Service Quality And Customer- Company Identification On
Customers (ESRA ARIKAN, SEMA GÜNER)
317
The Relationship Between Organizational Silence And Organizational Citizenship Behaviour: A Survey Study In
The Province Of Erzurum, Turkey (ORHAN ÇINAR, FATIH KARCIOĞLU, ZIŞAN DUYGU ALIOĞULLARI)
329
Problem Solving Approach At Organizational Development Activities: A Research At Karabuk University
(ABDULLAH KARAKAYA, KASIM YILMAZ)
337
An Empirical Research On The Relationship Between Job Insecurity, Job Related Stress And Job Satisfaction In
Logistics Industry (MURAT YAŞLIOĞLU, ALI ÖZGÜR KARAGÜLLE, MUHTESEM BARAN)
349
Visionary or criminal: From profit through morality to socially sustainable entrepreneurship (NEIL E.
BÉCHERVAISE, COLIN G. BENJAMIN)
355
Professionalism as reputation capital: The moral imperative in the global financial crisis (JILLIAN DE ARAUGO,
RICHARD BEAL)
365
The Effects of Leadership and Market Orientation on Organizational Commitment (MEHTAP ÖZŞAHİN, CEMAL
ZEHİR, A.ZAFER ACAR)
375
MARKETING AND BRANDING STRATEGIES
Impact Of Intercultural Competence On Service Reliability And Customer Satisfaction In The Grocery Retailing
(ALI IHTIYAR FAUZIAH SH. AHMAD, MAS BAMBANG BAROTO)
iv
389
Charges On Parking In Shopping Malls: Evidence From Turkey (SERKAN DILEK, SEYFİ TOP)
399
Literature Review On Selection Criteria Of Store Location Based On Performance Measures (GÜLDEN TURHAN,
MEHMET AKALIN, CEMAL ZEHIR)
405
The Effects Of Self-Concept Connection, Partner Quality And Trust On Commitment In The Elderly Segment
(RECEP BAKI DENIZ, UĞUR YOZGAT)
415
Linking Strategic And Market Orientations To Organizational Performance: The Role Of Innovation In Private
Healthcare Organizations (GÜLTEKIN ALTUNTAŞ, FATIH SEMERCIÖZ, HANIFE EREGEZ)
423
Which dimensions affect private shopping e-customer loyalty?( BERIL DURMUŞ, YEŞIM ULUSU, ŞAKIR ERDEM)
431
The Effect Of Mobile Service Quality Dimensions On Customer Satisfaction (ALPER ÖZER, MEHPARE TOKAY
ARGAN, METIN ARGAN)
437
The Impact Of Social Capital On Managerial Reputation (ERDEM KIRKBESOGLU)
449
Analyzing The Brand Equity Of Turkish Airlines Services: Comparing The Japanese And Turkish Perspectives
(AYPAR USLU, BERIL DURMUŞ, BERNA KOBAK)
455
Word Of Mouth, Brand Loyalty, Acculturation And The Turkish Ethnic Minority Group In Germany (AYPAR USLU,
BERIL DURMUŞ, SINA TAŞDEMIR)
463
The Effect Of Social Media On Personal Branding Efforts Of Top Level Executives (İLKAY KARADUMAN)
471
University Brand Equity Dimensions In An Emerging Market: Implications For Developing Sustainable University
Brands (TANSES GÜLSOY)
479
Young Consumers’ Attitudes Toward American Products (SELIM SAID EREN)
489
Creating Commitment, Trust And Satisfaction For A Brand: What Are The Role Of Switching Costs In Mobile
Phone Market? (AZIZE ŞAHİN, HAKAN KİTAPÇI, CEMAL ZEHİR)
497
An Emerging Consumer Experience: Emotional Branding (ALI EKBER AKGÜN, İPEK KOÇOĞLU, SALIH ZEKI
İMAMOĞLU)
505
Innovation Orientation, Market Orientation And E-Loyalty: Evidence From Turkish E-Commerce Customers
(HANDE SINEM ERGÜN, ZEYNEP KABADAYI KUŞCU)
511
Analytical Approach To Neuromarketing As A Business Strategy (ASELA A. BURGOS-CAMPER, JOSÉ G.
VARGAS-HERNANDEZ)
519
The effects of customer and entrepreneurial orientations on individual service performance in banking sector
(CEMAL ZEHIR, A.ZAFER ACAR, NURHAN ÖZGENEL, MEHTAP ÖZŞAHİN)
527
Factors Affecting Repurchase Intention to Shop at the Same Website (SELIM AREN, MEVLÜDIYE GÜZEL, EBRU
KABADAYI, LÜTFIHAK ALPKAN)
537
INNOVATION STRATEGIES AND KNOWLEDGE MANAGEMENT
System Dynamics Modelling Of A Knowledge Management Process: A Case Study In Turkish Airlines (SELIM
ZAIM, NIZAMETTIN BAYYURT, MEHVES TARIM, HALIL ZAIM, YUNUS GUC)
547
The Competitive Tension As A Moderator For Strategic Innovation (ERTAN GÜNDÜZ)
555
A Complex Approach To Evaluating The Innovation Strategy Of A Company To Determine Its Investment
Attractiveness(YURII А. ROLIK)
563
Features Of Innovative Applications In The Service Industry And Exploration Of Their Effect On Firm Efficiency
(İLGE KURT, NURGÜN KOMŞUOĞLU YILMAZ, İBRAHIM SARPER KARAKADILAR)
571
Strategic Flexibility, Environmental Dynamism, And Innovation Performance: An Empirical Study (AYŞE CİNGÖZ,
A. ASUMAN AKDOĞAN)
581
v
The Relationships Between Technological Investment, Firm Size, Firm Age And The Growth Rate Of Innovation
Performance (ORKUN YILDIZ, ÖZLEM ÇETINKAYA BOZKURT, ADNAN KALKAN, ALI AYCI)
587
Analysis Of The Behaviour Of Slovak Enterprises In The Context Of Low Innovation Performance (JANA VOLNÁ,
JÁN PAPULA)
597
A Model Proposal For Efficient Disaster Management: The Turkish Sample (EBRU CAYMAZ, FEHMI VOLKAN
AKYON, FAHRI ERENEL)
607
Exploring The Innovativeness And Market Orientation Through Mission And Vision Statements: The Case Of
Istanbul Stock Exchange Companies (AYKAN CANDEMIR, ALI ERHAN ZALLUHOĞLU)
615
The Role Of Innovation And Perceived Service Quality In Creating Customer Value: A Study On Employees Of A
Call Center Establishment (MUHSIN MURAT YAŞLIOĞLU, BURCU ÖZGE ÖZASLAN ÇALIŞKAN, ÖMER ŞAP)
625
Economic Evaluation Of The Film Industry In Terms Of Strategic Management Within The Scope Of The Creative
Innovative Industries: The Case Of Turkey (AHMET İNCEKARA, SEFER ŞENER, ELIF HAYKIR HOBIKOĞLU)
633
The Linkage Between Competitive Factors And Value Creation In Trade Centers (BURAK ÇAPRAZ, MEHMET
UFUK TUTAN)
643
The Contribution of Technological Change on EU’s Exports (ELISABETH T. PEREIRA, JOAO BENTO, JANIS
PRIEDE)
653
The Effect Of Service Orientation On Financial Performance: The Mediating Role Of Job Satisfaction And
Customer Satisfaction (SELIM SAID EREN, M.SULE EREN, GUNGOR HACIOGLU, NEVRIYE AYAS)
661
The Influence of Authentic Leadership on Creativity and Innovativeness (BÜŞRA MÜCELDILI, HALDUN TURAN,
OYA ERDIL)
669
HOSPITALITY MANAGEMENT
Analysis Of Antalya Tourism Cluster Perceived Performance With Structural Equation Model (PELIN ARSEZENOTAMIS, NEDIM YUZBASIOGLU)
679
The Relationship Between Employee Silence And Organizational Commitment In A Private Healthcare Company
(NEVIN DENIZ, ARAL NOYAN, ÖZNUR GÜLEN ERTOSUN)
687
Architectural Innovations Are Competitive Advantage For Hotels In Tourism Industry?: What Customers,
Managers And Employees Think About It?( HULUSI DOĞAN, OĞUZ NEBIOĞLU, OĞUZHAN AYDIN, İLKNUR
DOĞAN)
697
Decentralization In Health Services And Its Impacts: Swot Analysis Of Current Applications In Turkey (FADIME
ÇINAR, EROL EREN, HATUN MENDEŞ)
707
Innovative Approach To The Ethics In Health Care Organizations: Health Staff Perspective (FADIME ÇINAR,
EROL EREN)
713
Impacts Of Privatization Of Management Of Health Organizations On Public Health: Turkish Health Sector
Evaluation (FADIME ÇINAR, EROL EREN)
719
An innovative marketing information system: a management tool for South African tour operators (MARIUS
POTGIETER, JOHAN W DE JAGER, NEELS H VAN HEERDEN)
725
How Human Resource Operations Work In Higher Education Institutions?( HASAN ARSLAN, ALI AKDEMIR,
MEHMET DURDU KARSLI)
735
Innovation And Sustainable Growth Measurement In Hotel Industry: A Hierarchical Decision Making Model
(GIZEM GÜRELI GÖĞÜŞ, İBRAHIM SARPER KARAKADILAR, SINAN APAK)
743
Corporate Values On Strategic Planning Process: A Research About The Universities In Turkey (HIMMET
KARADAL, CEMILE ÇELIK, MUHAMMET SAYGIN)
753
vi
HUMAN RESOURCE STRATEGIES
Are Flexible Work Arrangements Attractive Enough For Knowledge-Intensive Businesses? (LUBICA BAJZIKOVA,
HELENA SAJGALIKOVA, EMIL WOJCAK, MICHAELA POLAKOVA)
763
The Impact Of HRM Capabilities On Innovation Mediated By Knowledge Management Capability (GÖNÜL KAYA
ÖZBAĞ, MURAT ESEN, DILEK ESEN)
775
An Application In Human Resources Management For Meeting Differentiation And Innovativeness Requirements Of
Business: Talent Management (SEFER GÜMÜŞ, SUDI APAK, HANDE GÜLNIHAL GÜMÜŞ, ZUHAL KURBAN)
785
Linking Competitive Rivalry To Internal Communication In Private Healthcare Organizations (GÜLTEKIN
ALTUNTAŞ, FATIH SEMERCIÖZ, ARAL NOYAN)
801
The Relationship Between Human Resource Management Practices And Organizational Commitment: A Field Study
(A. ASLAN ŞENDOĞDU, AYŞE KOCABACAK, ŞÜKRÜ GÜVEN)
811
Developing Core Competencies: Student Mobility Case (VILMANTĖ KUMPIKAITĖ, KĘSTUTIS DUOBA)
819
The Relationship Between Strategic Management, Institutionalization And Human Resource Management: A Survey
Study With Family Businesses Located In The Northeast Anatolia Sub Economic Region Of Turkey (ORHAN
ÇINAR, FATIH KARCIOĞLU)
827
Effects Of Talent Management On Organizational Trust: A Field Study (MEHMET ALTINOZ, DEMET
CAKIROGLU, SERDAR COP)
835
Social Media’s Role in Developing an Employees Sense of Belonging in the Work Place as an HRM Strategy (EROL
EREN, PELIN VARDARLIER)
843
Impacts Of Growth Strategies On Human Resources Policies (PELIN VARDARLIER, YALÇIN VURAL, ÖZGÜR
YILDIRIM, BURCU YILMAZTÜRK)
851
Using Job Resources And Job Demands In Predicting Burnout (MÜJDELEN YENER, ÖZGÜN COŞKUN)
859
FINANCE & BANKING
Approaches To Improving Asset Structure Management In Commercial Banks (SVETLANA SAKSONOVA)
869
Using Swot Analysis And Sem To Prioritize Strategies In Foreign Exchange Market In Iran (MOHAMMAD
SHARIATMADARI, AMIR HOMAYOUN SARFARAZ, PEGAH HEDAYAT, KIYAN VADOUDI)
877
Assessment And Analysis Strategies According To Space Matrix-Case Study: Petrochemical And Banking Industries
In Tehran Stock Exchange (TSE) (SAEED FALLAH TAFTI, ESMAEIL JALILI, LEILA YAHYAEIAN)
885
Organizational Learning On Coopetition Strategy: A Exploratory Research On A Turkish Private Banks Credit
Card Application (YUNUS DEMIREL, BURAK ARZOVA, KADIR ARDIÇ, TÜRKER BAŞ)
893
New Tendencies Of Management And Control Of Operational Risk In Financial Institutions (PJOTRS DOROGOVS,
IRINA SOLOVJOVA, ANDREJS ROMANOVS)
901
Ownership Effect On Bank’s Performance: Multi Criteria Decision Making Approaches On Foreign And Domestic
Turkish Banks (NIZAMETTIN BAYYURT)
909
SMALL BUSINESS STRATEGIES AND INTER-ORGANIZATIONAL
RELATIONS
Strategic Focus In Turkish SMEs: Emergent Or Deliberate Strategies? (ÖZLEM ÇETINKAYA BOZKURT, ADNAN
KALKAN)
919
Effects Of Support Programs On Corporate Strategies Of Small And Medium-Sized Enterprises (EBRU AYKAN,
SEMRA AKSOYLU, EBRU SÖNMEZ)
929
vii
Structuring Strategic Management With Ratio Analysis Method: A Case Study In The Transition To SME TFRS
Process (ALI HALICI, DENIZ UMUT ERHAN)
937
Evaluation Family Effects In The Context Of Power, Experience And Culture On The Business And Management In
The Family Firms (SEYFI TOP, ÖZLEM ATAN, ERCAN ÖGE)
945
A Research On The Problems Encountered In The Collaboration Between University And Industry (A. ASLAN
ŞENDOĞDU, AHMET DIKEN)
955
The Role Of Relationship-Specific Investments In Improving Performance: Multiple Mediating Effects Of
Opportunism And Cooperation (TUGBA GURCAYLILAR YENIDOGAN, SIBEL DUDEN, FULYA SARVAN)
963
Structural Effect Of Enterprises Open-Closed Innovation Models Tendencies In Product Output Process: A Study
On The Enterprises Located In The IMES Industrial Estate – Turkey Example (SEFER ŞENER, ELIF HAYKIR
HOBIKOĞLU)
973
STRATEGIC CHOICE, PERFORMANCE AND GOVERNANCE
The Relationship Between Diversification Strategy And Organizational Performance: A Research Intended For
Comparing Belgium And Turkey (İLKNUR TAŞTAN BOZ, İBRAHIM ANIL, İHSAN YIĞIT)
985
A research to determine the role of process of Turkey’s entry to European Union on the foreign direct investment
(İLHAN GÜLLÜ, NAZIFE ÖZGE KILIÇ, ÜNZILE KURT, FETTAH TURAN, HAMDI BAYRAM)
995
The Choice And Use Of Strategic Planning Tools And Techniques In Turkish SMEs According To Attitudes Of
Executives (ADNAN KALKAN, ÖZLEM ÇETINKAYA BOZKURT)
1003
Measuring And Evaluating Performance Within The Strategic Management Perspective: A Study On Performance
Measurement Of A Seafood Company (BURCUARACIOĞLU, ALI ERHANZALLUHOĞLU, CEMRE CANDEMIR)
1013
The Effects Of Management Information And ERP Systems On Strategic Knowledge Management And DecisionMaking (AHMET UÇAKTÜRK, MICHEL VILLARD)
1023
Evolution Of Management Controlling Framework: Literature Review (OLGA PAVLOVSKA, IRINA KUZMINAMERLINO)
1031
Management Of The Educational Environment: The Context In Which Strategic Decisions Are Made (YULIA
STUKALINA)
1039
Empirical Analysis Of Effects Of Country-Level Governance To Strength Of Investor Protection (CRISTINA BOŢAAVRAM)
1047
Linking Governance To Efficacy Of Corporate Boards: A Global Perspective (CRISTINA BOŢA-AVRAM)
1057
Strategy Formulating For Semi-Governmental Companies, Case Study: Railway Transportation In Qods Niroo
(AMIR HOMAYOUN SARFARAZ, MOHAMMAD SHARIATMADARI, PEGAH HEDAYAT, KIYAN VADOUDI)
1067
Relationship Between Balance Of Job Demands-Control And Shared Mission/Vision For Blue-Collar Employees
(IŞIK ÇIÇEK)
1079
Ambidexterity and Firm Productivity Performance: The Mediating Effect of Organizational Learning Capacity
(HAKAN KİTAPÇI, VURAL ÇELİK)
1091
The Influence Of Internal Corporate Governance On Bank Performance - An Empirical Analysis For Romania
(VASILE DEDU, GHEORGHE CHITAN)
1099
The Impact of ERP Systems and Supply Chain Management Practices on Firm Performance: Case of Turkish
Companies (HUSEYIN INCE, SALIH ZEKI IMAMOGLU, HALIT KESKIN, ALI E. AKGUN, MEHMET NACI EFE)
1107
Evaluating the Core Capabilities for Strategic Outsourcing Decisions at Aviation Maintenance Industry (ÖZGÜR
DEMİRTAŞ)
1115
Public Debt, Democracy And Transition (ALESSIO L. LOKAR LUBICA BAJZIKOVA)
1125
viii
ORGANIZING COMMITTEE
• Erol Eren (Chairman, Istanbul Arel University, Istanbul-Turkey)
• Oya Erdil (Co-Chair, Gebze Institute of Technology, Kocaeli-Turkey)
• Ali Akdemir (Co-Chair, Arel University, Istanbul-Turkey)
• J. Strickland III (The University of Alabama, Tuscaloosa, Alabama - USA)
• Asım Şen (Beykent University, Istanbul-Turkey)
• Asuman Akdoğan (Erciyes University, Kayseri-Turkey)
• Bella Butler (Curtin University, Perth, Western Australia)
• Cemal Zehir (Gebze Institute of Technology, Kocaeli-Turkey)
• Dababrata N.Chowdhury (University Campus Suffolk , Ipswich UK
• Dzineta Dimante (University of Latvia, Latvia)
• Edward A. Ward (St. Cloud State University, USA)
• Erdal Aydin (Canakkale Onsekiz Mart University, Canakkale-Turkey)
• Esin Sadıkoğlu (Gebze Institute of Technology, Kocaeli-Turkey)
• Irem Erdoğmuş (Marmara University, Istanbul-Turkey)
• Irge Sener (Cankaya University, Ankarar-Turkey)
• Jamaluddin H. Husain (Purdue University Calumet, USA)
• Janis Priede (University of Latvia,- Latvia)
• Lütfihak Alpkan (Gebze Institute of Technology, Kocaeli-Turkey)
• Mehtap Özşahin (Gebze Institute of Technology, Kocaeli-Turkey)
• Meral Elçi (Gebze Institute of Technology, Kocaeli-Turkey)
• Mümin Ertürk (Arel University, Istanbul-Turkey)
• Richard Lynch (Middlesex University, London, UK)
• Selim Zaim (Marmara University, Istanbul-Turkey)
• Sonja Petrovic-Lazarevic (Monash University, Australia
• Tanses Gülsoy (Beykent University, Istanbul-Turkey)
• Uğur Yozgat (Marmara University, Istanbul, Turkey)
• Zafer Acar (Okan University, Istanbul-Turkey)
• Zoltan Veres (Budapest Business School, Hungary)
ADVISORY BOARD & PEER-REVIEW COMMITTEE
• Asuman Akdoğan (Erciyes University, Kayseri-Turkey)
• J. Strickland III (The University of Alabama, Tuscaloosa, Alabama - USA)
• Zafer Acar (Okan University, İstanbul-Turkey)
• A.A. Bulgak (Concordia University-Canada)
• Aaron J. Shenhar (Stevens Institute of Technology-USA)
• Adem Öğüt (Selçuk University, Konya-Turkey)
• Adnan Çelik (Selçuk University,Konya-Turkey)
• Adnan Ceylan (Gebze Institute of Technology, Kocaeli-Turkey)
• Ahmet Kesik, Ph.D., Associate Professor (President of Strategy Development Unit, Ministry of
Finance, Republic of Turkey)
• Alain Crochet (University of Sorbonne Nouvelle , Paris- France)
• Alan Garcia Lira (Universidad Autonoma de Yucatan-Mexico)
• Alastair J. Wright (Stenden University-Netherlands)
• Alba Robert Dumi (“ Ismail Qemali" Vlora university, Albania)
• Albert Schram (Maastricht University-Netherlands)
• Alexander Egorshin (The Nizhny Novgorod Institute of Management and Business, Russia)
• Alexi Danchey ( Fatih University, Istanbul, Turkey)
• Ali Akdemir (Arel University, Istanbul-Turkey)
• Ali Ekber Akgün (Gebze Institute of Technology, Kocaeli-Turkey)
• Ali Halıcı (Baskent University, Ankara-Turkey)
• Alistair M Brown (Curtin University of Technology, Western Australia)
• Amar KJN Nayak (Xavier Institute of Management, Orrissa-India)
• Andrei Burenin (Irkutsk State University, Russia)
• Andrey Dashkov (Moscow State University, Russia)
• Antonio Minguez Vera (Universidad de Murcia, Spain)
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Anukrati Sharma (University of Kota, India)
Asım Erdilek (Case Western Reserve University-USA)
Asım Şen (St. John Fisher College, USA)
Atik Kulaklı (Beykent University, Turkey)
Atilla Dicle (Yeditepe University, İstanbul-Turkey)
Aurea Helena Puga Ribeiro (Fundacao Dom Cabral, Brazil)
Ayse Günsel (Kocaeli University, Kocaeli-Turkey)
Ayşen Hiç Gencer (Beykent University, Turkey)
Bahadır Akın (Selcuk University, Konya-Turkey)
Bahri Gökçebay (Kastamonu University-Turkey)
Bernd Martin (Duale Hochschule-Germany)
Beyza Kocapınar Bayarçelik (Yeditepe University, Turkey)
Bige Aşkun (Marmara University-Turkey)
Birol Bumin (Gazi University, Ankara-Turkey)
Borisas Melnikas (Vilnius Gediminas Technical University, Lithuania)
Branko Bucar (Pace University,USA)
Bülent Sezen (Gebze Institute of Technology, Kocaeli-Turkey)
Canan Çetin (Marmara University, Istanbul-Turkey)
Celso ClaudioHildebrand Grisi (University of Sao Paulo-Brazil)
Cemal Zehir (Gebze Institute of Technology, Kocaeli-Turkey)
Cengiz Yılmaz (Bogazici University, Istanbul-Turkey)
Cevat Gerni (Beykent University, İstanbul-Turkey)
Ceyhan Aldemir (Dokuz Eylül University, İzmir-Turkey)
Chien-Chung Nieh (Tamkang University, Taipei Country- Taiwan)
Con Korkofingas (Macquarie University,Sydney-Australia)
Dababrata N.Chowdhury (University Campus Suffolk , Ipswich UK)
Denizhan Kalkan (Yalova University, Turkey)
Dursun Bingöl (Atatürk University, Erzurum-Turkey)
Dzevad Sehic (Faculty of EconomicsUniversity of Sarajevo, Bosnia)
Dzineta Dimante (University of Latvia, Latvia)
Ebru Kabadayı (Gebze Institute of Technology, Kocaeli-Turkey)
Erdoğan Koç (Balıkesir University, Turkey)
Erika Sumilo (University of Latvia of Riga - Latvia)
Ekrem Tatoglu (Bahçeşehir University, Istanbul-Turkey)
Enver Özkalp (Anadolu University, Eskişehir-Turkey)
Erdal Aydın (Çanakkale Onsekiz Mart University, Turkey)
Erkan Kabak (Beykent University, Turkey)
Erkut Altındağ (Beykent University, Turkey)
Ernst Neuland (Institute for Business Innovation-South Africa)
Erol Eren (Istanbul Arel University, Istanbul-Turkey))
Esin Can (Yıldız Technical University, İstanbul-Turkey)
Esin Sadıkoglu (Gebze Institute of Technology, Kocaeli-Turkey)
Eyüp Aktepe (Gazi University, Ankara-Turkey)
Fahri Karakaya (University of Massachusetts, Dartmouth-USA)
Feyzullah Eroğlu (Pamukkale University,Denizli-Turkey)
Fuat Oktay (Turkish Airlines, Istanbul, Turkey )
Fulya Taşel (Maltepe University, Turkey)
Garry L. Adams (Auburn University, USA)
Gilbert Levine(Cornell University-USA)
Gökhan Özer (Gebze Institute of Technology, Kocaeli-Turkey)
Gönül Budak (Dokuz Eylul University, İzmir-Turkey)
Gülden Turhan (Marmara University, Turkey)
Gülruh Gürbüz (Marmara University, Istanbul-Turkey)
Gültekin Yıldız (Sakarya University, Sakarya-Turkey)
Güneş Zeytinoğlu (Anadolu University, Eskişehir-Turkey)
Guram Chikovani (Free University, Tbilisi-Georgia)
Güran Yahyaoğlu (Canakkale Onsekiz Mart University, Canakkale-Turkey)
Gürcan Papatya (Süleyman Demirel University, Isparta-Turkey)
Güven Alpay (Boğaziçi University, İstanbul-Turkey)
Güven Murat (Karaelmas University, Zonguldak-Turkey)
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Hakan Kitapçı (Gebze Institute of Technology, Kocaeli-Turkey)
Hakkı Eraslan (Düzce University, Turkey)
Halil Çivi (İnönü University, Malatya-Turkey)
Halil Zaim (Fatih University, Turkey)
Halim Kazan (Gebze Institute of Technology, Kocaeli-Turkey)
Halis Kalmış (Canakkale Onsekiz Mart University, Canakkale-Turkey)
Halit Keskin (Gebze Institute of Technology, Kocaeli-Turkey)
HA-Nguyen (Vietnam National University, Hanoi School of Business, Vietnam)
Hans Zwart (Stenden University-Netherlands)
Harun Demirkaya, (Kocaeli University, Kocaeli, Turkey)
Hasan İbicioğlu (Süleyman Demirel University, Isparta-Turkey)
Hayat Kabasakal (Boğaziçi University, İstanbul-Turkey
Hikmet Timur (Hacettepe University, Ankara-Turkey)
Hisao Fujimoto (Osaka University of Economics, Japon)
Howard Clayton (Auburn University, USA)1
Hüseyin İnce (Gebze Institute of Technology, Kocaeli-Turkey)
Hüseyin Kanıbir (Balıkesir University, Turkey)/em>
Hüseyin Özgen (Çukurova University-Turkey)
Ibrahim Anıl (Marmara University, Turkey)
Inan Özalp (Anadolu University, Eskişehir-Turkey)
Irina Kuzmina-Merlino (Transport and Telecommunication Institute, Latvia)
Jamaluddin H. Husain (Purdue University, USA)
Janis Priede (University of Latvia, Latvia)
Jiri Mezulanik (Silesian University, Opava-Czech Republic)
JoAnn D. Hawkins, Howard Community College, Columbia, Maryland, USA
Joann D. Howkins (Howard Community College- Colombia)
Johan Hough (Stellenbosch University, South Africa)
Julie Barker Lebo (Ball State University-USA)
Julie Barker Lebo,( Ball State University, Muncie, Indiana, US)
Jungwan Lee (Bang College of Business, Kazakhstan)
Kadir Varoğlu (Başkent University-Turkey)
Kamil Kozan (St. John Fisher College, USA)
Kathleen Marshall Park (Massachusetts Institute of Technology, USA)
Kenneth Holland (Ball State University-USA)
Kenneth Holland (Ball State University, Muncie, Indiana, USA )
Lars Ehrengren (Stockholm University, Sweden)
Ljiljana Maurovic (University of Rijeka, Croatia)
Lonnie Strickland (The University of Alabama, Tuscaloosa, Alabama - USA)
Lütfihak Alpkan (Gebze Institute of Technology, Kocaeli-Turkey)
M. K. Sharma (Himachal Pradesh University, Shimla-India)
M. Şükrü Akdoğan (Erciyes University-Turkey)
Mahir Nakip (Ahmet Yesevi University-Kazakhstan)
Mahmut Özdevecioğlu (Melikşah University, Kayseri-Turkey)
Mahmut Paksoy (İstanbul Kültür University-Turkey)
Maria Klimikova (University of Economics in Bratislava-Slovakia)
Mariana Dodourova (University Of Hertfordshire, UK)
Marius Ungerer (Stellenbosch University, South Africa)
Maris Purgailis (University of Latvia of Riga - Latvia)
Margarita Dunska (University of Latvia of Riga - Latvia)
Mehmet Barca (Sakarya University, Sakarya-Turkey)
Mehmet Demirel (TUBITAK-Turkey)
Mehmet Sahin (Anadolu University, Eskisehir-Turkey)
Mehmet Şahin (Canakkale Onsekiz Mart University, Turkey)
Mehmet Zor Kaya (Diyalog Avrasya, Chisinau, Republic of Moldova)
Metin UYAR (Trakya University, Turkey)
Muhammet Akdis (Ahmet Yesevi University-Kazakhstan)
Muhsin Halis (Gaziantep University, Gaziantep-Turkey)
Mümin Ertürk (Arel University, İstanbul-Turkey)
Münevver Çetin (Marmara University, İstanbul-Turkey)
Murat Kasimoglu (Canakkale Onsekiz Mart University, Turkey)
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xii
Murat Kayalar (Süleyman Demirel University, Isparta-Turkey)
Musa Pınar (Valparaiso University, Indiana-USA)
Mustafa Aykaç (Kırklareli University-Turkey)
Mustafa Köksal (Kocaeli University, Kocaeli-Turkey)
Müjdelen Yener (Marmara University, Turkey)
Nazan Yelkikalan (Canakkale Onsekiz Mart University, Canakkale-Turkey)
Necdet Timur (Anadolu University, Eskisehir-Turkey)
Neil Bechervaise (Divine Word University, Madang - Papua New Guinea)
Nevin Deniz (Marmara University, Turkey)
Nevzat Demir (Fıratpen-Turkey)
Nigar Demircan Çakar (Düzce University, Turkey)
Nihan Yıldırım (Istanbul Technical University, Turkey)
Nizamettin Bayyurt (Fatih University, Turkey)
Nurhan Papatya (Süleyman Demirel University, Isparta-Turkey)
Nurullah Genç (Kocaeli University, Kocaeli-Turkey)
Orhan Elmacı (Dumlupınar University, Kütahya-Turkey)
Oya Erdil (Gebze Institute of Technology, Kocaeli-Turkey)
Ömer Adil Atasoy (Osman Gazi University, Eskişehir-Turkey)
Ömer Torlak (Osman Gazi University, Eskişehir-Turkey)
Ömür Özmen (Dokuz Eylül University, İzmir-Turkey)
Özlem Özkanlı (Ankara University, Ankara-Turkey)
Patrick Bemelmans (Stenden University-Netherlands)
Paul Z. Jackson ( The Solutions Focus, St. Albans, UK)
Pauline Magee-Egan (St. John’s University, USA)
Peet Venter (University of South Africa, Pretoria-South Africa)
Pervez N. Ghauri (King’s College London-UK)
Radhi El-Mabuk (University of Northern Iowa-USA)
Recep Şener (Muğla University, Muğla-Turkey)
Refik Culpan (Pennsylvania State University, Harrisburg-USA)
Refika Bakoğlu (Marmara University, İstanbul-Turkey)
Reşit Özkanca (Melikşah University-Turkey)
Rezan Tatlıdil (Ege University, İzmir-Turkey)
Richard Alan Nelson (Manship School of Mass Communication-USA)
Richard Lynch (Middlesex University, London-UK)
Rıdvan Karalar (Anadolu University, Eskişehir-Turkey)
Riza Atiq Abdullah (Universiti Ke Bangsaan-Malaysia)
Roberts Skapars (University of Latvia, Latvia)
Sabahat Bayrak (Pamukkale University, Denizli-Turkey)
Sadi Can Saruhan (Marmara University, İstanbul-Turkey)
Sefer Şener (İstanbul University, Istanbul-Turkey)
Selahattin Sarı (Beykent University, İstanbul-Turkey)
Selen Doğan (Niğde University, Niğde-Turkey)
Selim Aren (Gebze Institute of Technology, Turkey)
Selim Eren (Çanakkale Onsekiz Mart University, Turkey)
Selim Özdemir (Qafqaz University, Baku, Azerbaijan)
Selim Zaim (Marmara University, Turkey)
Senem Besler (Anadolu University, Turkey)
Sima Nart (Sakarya University, Turkey)
Şerafettin Sevim (Dumlupınar University, Kütahya-Turkey)
Sergei Mordovin (International Management Institute St. Petersburg, Russia)
Sevinç Köse (Celal Bayar University, Manisa-Turkey)
Şevki Özgener (Nevşehir University, Nevşehir-Turkey)
Şule Eren (Çanakkale Onsekiz Mart University, Turkey)
Shamsul Nahar Abdullah (Northen University of Malaysia,AmanMalasia)
Sharan L. Oswald (Auburn University, USA)
Shaukat Ali (University of Wolverhampton, Shropsire-Great Britain)
Sonja Petrovich Lazarevic (Monash University, Victoria-Australia)
Stanislav Poloucek (Silesian University, Opava-Czech Republic)
Stasys Vaitkevicius (Mykolas Romeris Universty-Lithuania)
Subodh Bhat (San Francisco State University,San Francisco - USA)
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Sudi Apak (Beykent University, Turkey)
Süleyman Türkel (Çağ University, Mersin - Turkey)
T. Diana A. De Macedo- Soares (Pontifical Catholic University of Rio de Janeiro, Brazil)
Tanses Gülsoy (Beykent University, İstanbul-Turkey)
Tatiana A. Burenina (State University of Management, Russia)
Tijen Harcar (İzmir University of Economics, Turkey)
Tuğba Karabulut (Istabul Commerce University, Turkey)
Tuna Taner (Celal Bayar University, Manisa-Turkey)
Uğur Yozgat (Marmara University, İstanbul-Turkey)
Ülkü Dicle (Yeditepe University, İstanbul-Turkey)
Ümit Alnıaçık (Kocaeli University, Turkey)
Ute Stoltenberg (University of Luneburg-Germany)
Viesturs Pauls Karnups (University of Latvia of Riga - Latvia)
V. Dolyatovskiy (The Rostow State University, Russia)
Victor Gnevko (St. Petersburg Institute of Management and Economics, Russia)
Vojtech Malatek (Silesian University, Opava-Czech Republic)
Warren J. Keegen (Pace University, USA)
Xavier Richet (University of Sorbonne Nouvelle-Paris 3, France
Yasemin Arbak (Dokuz Eylül University, İzmir-Turkey)
Yener Pazarcık (Çanakkale Onsekiz Mart University, Çanakkale-Turkey)
Yonca Gürol (Yıldız Technical University, İstanbul-Turkey)
Yücel Acer (Canakkale Onsekiz Mart University, Canakkale-Turkey)
Zeyyat Hatipoglu (Dogus University, Istanbul-Turkey)
Zoltán Veres (Budapest Business School, Budapest, Hungary)
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xiv
PREFACE
Dear Colleagues,
Welcome to the 9th International Strategic Management Conference in Riga, Latvia. On
behalf of the organizing committee of our conference, we would like to express our great
appreciation and honor to all of you from all around the world for sharing your valuable
work with us.
We have organized this 9th conference with the academic collaboration of Gebze Institute of
Technology University of Latvia and Istanbul Arel University. We have also enjoyed this year
again the cooperation of Elsevier and Emerald Group which have also participated to this
organization. I would like to thank to those who have contributed to the preparation and
publication to the conference in a successful manner.
The 9th International Strategic Management Conference received a total 188 extended
abstracts from 25 different countries. After carefully screening, 134 full papers were accepted
for the Conference. Among accepted papers, 10 papers were selected to be published in
Journal of Global Strategic Management.
Papers have been generally sent by academicians from Europe, The Balkan States, The
Middle East, Australia, Russia and the USA. The countries providing papers are as follows;
Albania, Australia, Denmark, Finland, Germany, Iran, Iraq, Italy, Latvia, Lithuania,
Malaysia, Mexico, Papua New Guinea, Pakistan, Poland, Romania, Russia, Spain,
Switzerland, South Africa, Saudi Arabia, Slovakia, United Kingdom, USA, and Turkey.
Unfortunately, some participants have been unable to attend the conference due to visa
problems. This year, we have two valuable keynote speakers. One of the well-known
academician from Purdue University, Calumet, USA, Prof. Dr. Jamaluddin Husain will
address you “On Micro-finance as a New Strategies in Establishment of Small Sized
Enterprises”. Second Keynote Speaker, well-known Professional Juris Binde (Ph.D)
President of Latvijas Mobilais Telephons, Latvia, will address you “On Leadership and
Strategy in Dynamic Business Environment”.
Dear colleagues and guests; Ladies and Gentlemen, with my sincere wish, I would like once
again to welcome you and enjoy with 9th International Strategic Management Conference.
Erol EREN, Ph.D.
Chairman of the Conference
xv
xvi
PREFACE
We are honored to welcome you to the 9th International Strategic Management Conference in
Riga/Latvia. This year’s theme is “New Directions in Sustainable Growth and Innovation
Strategies”.
We convened here, coming from different parts of the world, to discuss and explore for
international competition and cooperative strategies in sustainable development. We are
going to debate on different approaches and models in strategic management, industry
analyses, ethical issues, innovation and many other issues, not only economic and technology
point of view, but also addressing mainly the problems and issues of sustainable development.
Academicians from different countries submitted original papers for conference presentation
and for publication in the Proceedings Book. All competitive papers were subject to a peer
review. The results of these efforts produced 134 empirical, conceptual, and methodological
papers involving all functional areas of strategic management with a specific focus on
sustainability in growth and innovation strategies. I would like to express our appreciation to
the reviewers for reviewing the papers that were submitted to this conference. We also thank
to all those who submitted their work to be considered for presentation at the Conference.
All of us here worked very hard to make this conference a success. The conference could not
have been held without the diligent work of Professor Erol Eren, Chairman of the Conference
who made great effort to perfect all arrangements. Special thanks to him for his leadership
and execution of 2013 Conference. I want to extend special appreciation to Mehtap Özşahin
for her hard work and commitment to the conference development.
We hope that you will benefit from the Conference and enjoy your stay in this great land,
Riga.
Oya Erdil, Ph.D
Co-Chair of the Conference
xvii
xviii
PREFACE
That we have held such an international event called 9th International Strategic Management
Conference for the 9th time is very meaningful for us. More and more countries as well as
companies, NGOs and local administration have been giving importance to strategic
management to have long-term perspective and tackle the problems they can face.
The main reason of this approach and tendency of strategic management is that we have been
experiencing a world-wide economical crisis, basically, since 2007. It has also become the
main steering force behind several global political crises. Since that date, in many countries,
economic crises were followed by political ones. Many leaders of many countries had to
resign after the economic crises. This situation indicates that politics and economics have
been deeply affecting one another for last five years. In addition, political and economic
crises have been not only global but also structural .
Since crises have been structural and global, and since the topic of strategic management has
been global, we need strong policies of innovation, in order to manage them effectively. By
the concept of global we mean countries and states, not for profits, are interested in strategic
management as well as for profit organizations. Crises and their managing policies based on
innovation require such an approach. In this context, and in the framework of strategic
management, in order to fight crises and implement strategic management successfully, an
evaluation including various and alternative innovation policies
can be revealed and
summarized as follows*:
There are three types of innovation, some of which are focused on crises and each poses
different levels of risk: The first one, the “empowering innovations” can transform products
that historically were so complicated and expensive that only the rich had access to them. The
Model T of Ford was one of those. The personal computer was one of those. The smart phone
is this again. These kinds of innovations also create new jobs. The second type, which is
called “sustaining innovations”, make existing good products even better. They don’t create
new jobs. The third, which is called “efficiency innovations”, help us make the same products
cheaper, and they reduce jobs in the economy.
Over the recent years, executives and investors have stopped investing in empowering
innovations, because they pay off in five to eight years, and instead, invest in efficiency
innovations, which pay off in one or two years. We are awash in cash, and yet we continue to
invest as if capital was scarce. And so we’re not investing in the kind of innovations that
would create growth. In order to avoid for us from the crises, we need to invest in
empowering innovations primarily.
Efficiency innovation is really a lot about our business model. We often call it the productivity
loop, and it’s really operating with lower expenses, more efficiency, lowering prices for
customers and as a result having more customers, which allows for more efficiency.
*
for more information: Time Magazine Jan 2013, (online),The TİME at Davos debate :The rewards of
mastering innovation risk…
xix
We think that some companies have had two versions of a lot of empowering or disruptive
innovation. One has been in the area of sustainability. Another area of empowering or
disruptive innovation would be the area of e-commerce, using technology today.
We’re on the cusp of what is a major uptrend in innovation. Even the world of academia has
been very obsessed with this phenomenon of frugal innovation coming out of Asia. Even Apple
is facing the rise of companies like Samsung that are doing more for less.
What is going to happen is that we’re going to see cutting-edge innovation is required. That is
why we are not going to be able to get to our aspirations and visions by doing more for less.
We have to be able to do pioneering, cutting-edge innovation. That is why, first priority for
countries as well as companies must be empowering innovation like mentioned above in order
to tackle chaos and any sort of crises and bring innovative products and services to markets
in a way crisis management and innovation policies are integrated in strategic management.
Not only crises but also strategic management has been global, like we mentioned before. In
this context, at the levels of organization, companies, local administration and state, strategic
management must be prepared together with crisis management and innovation policies. At
this point, the main mention we are trying to lay out is that crisis management and innovation
policies must be integrated in strategic management...
For these reasons, the 9th International Strategic Management Conference has been
important and significant to hold in this theme, in Latvia. I am sure the presentations of the
9th International Strategic Management Conference are going to give significant
contributions to the perspective we mentioned above. Before ending my words I would like to
thank to Chair of Conference Prof.Dr. Erol Eren , Co-chair Prof.Dr. Oya Erdil and Dr.
Mehtap Ozşahin, for working very hard and effectively for this event. I would like also to
thank to participants and presenters for joining our event and presenting presentations.
Ali Akdemir, Ph.D.
Co-Chair of the Conference
xx
9th International Strategic Management Conference
Strategic Focus in Turkish SMEs: Emergent or Deliberate
Strategies?
Özlem Çetinkaya Bozkurta , Adnan Kalkanb
a,b
Mehmet Akif Ersoy University, Burdur, 15300, Turkey
Abstract
Traditional deliberate strategies, based on cycles of stability and predictability, are no longer relevant for today's business
environments. Emergent strategies have been advocated as the solution. In this research we investigate and propose how
interweaving of the deliberate and emergent could be conceived and realized in terms of strategy, organizational structures,
firm size and firm age. The aim of this study is to examine the existing strategies of SMEs in Turkish to know if they adopt
more of unconscious actions or deliberately planned patterned behavior (PPB) which guides their actions.
Keywords: Small and medium-sized enterprises, Emergent strategy, Deliberate strategy, Organizational structures
© 2013 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of the 9th International
Strategic Management Conference
1. Introduction
Strategy was defined as “a pattern in a stream of decisions” (Mintzberg, 1978: 934). Porter (1996) defined
strategy as “the creation of a unique and valuable position, involving a different set of activities”. Stacey’s
(2000) looks at strategic management as “the process of actively participating in the conversations around
important emerging issues”. It has been over three decades since Henry Mintzberg (1978) first argued that
organizational strategy can be the result of both the intended and the emergent. His ground-breaking work
spawned a number of other models that further examined the strategy formulation process (Bourgeois and
Brodwin, 1984; Nonaka, 1988; Hart, 1992). Mintzberg and Waters (1985) explore the process by which
strategies form within organizations. They compare intended strategies (strategies that come from a planning
process) with realized strategies (what the organization actually did). They provide a framework to study the
difference between these two concepts through a continuum where at one end lies the completely planned
strategy and at the other end lies the completely emergent strategy. For Mintzberg and Waters (1985) the real
world strategies fall between the two poles of deliberate and emergent strategies. The main types of strategies
identified by Mintzberg and Waters (1985) to be applicable within various organizations are the planned
strategy, the entrepreneurial strategy, the ideological strategy, the umbrella strategy, the process strategy, the
unconnected strategy, the consensus strategy and the imposed strategy. To qualify each of these strategies as
either deliberate or emergent is dependent on various factors like the intention coming from either a single
entrepreneur or the top managers or from the consensus of all stakeholders, or even from the external
environment. This will clarify the control procedures for implementation of the strategy. In reality, many
organizations probably have a combination of the two. Fig. 1 illustrates the combination of the two approaches,
combined with some strategies that may be unrealized.
919
Figure 1: Deliberate and Emergent Strategies (Mintzberg, H. and Waters, J. A., 1985: 258)
According to Mintzberg and Waters (1985), there are five kinds of strategies in their model (figure 1):
Emergent strategy, intended strategy, deliberate strategy, realized strategy and unrealized strategy. Emergent
strategies can be seen as responses to unexpected opportunities and problems and are usually developed from the
locations at which business-level strategies are usually implemented, i.e. within business units and not at
corporate headquarters. The pure definition of emergence requires the absence of intentions. (Mcgee, Thomas &
Wilson 2005: 11).
According to Mintzberg & Waters (1985: 257-258) by comparing intended strategy with realized strategy, as
show in the figure below, allows people to distinguish deliberate strategy from emergent. According to the
authors, it is expectedly difficult that a strategy is altogether emergent, but it is necessary to determine a
completely emergent strategy when the environment has a direct effect on the organization and events are
mingled with each other (Mintzberg and Waters 1985: 258).
In one recent study of electrical utilities, Froelich and McLagan (2008) found empirical evidence to support
Mintzberg’s argument that not all intended strategies are realized. Kald (2003) examined the Nordic paper and
pulp industry and found that there is substantial congruence between an organization’s intended strategy and its
realized strategy. If that is the norm in other industries, then one can reasonably conclude that a firm’s intended
strategy has a real impact on an organization, including its performance. in a study of 354 small and mediumsized enterprises (SMEs) in the UK, researchers found that strategic intent directly influenced investment
decisions, which in turn was link to firm growth (Morash, 2001). And in a case study of a medical technology
company, Ice (2007) maintains that strategic intent played a central role in that firm’s performance. In a direct
test of Mintzberg’s model, Anderson and Nielsen (2009) found that among a sample of 180 firms there is a
complementary link between intended and emergent strategies and firm performance.
2. Literature Review And Hypotheses
2.1. Intended Strategy
The planned strategy consists of a statement of clear and articulated intentions, backed up by formal controls'.
In this type of strategy, management formulates a plan in as much detail as possible, which is then implemented.
However, one of the problems with a planned strategy is that it is found in an environment which is highly
volatile, and that, in fact, many strategies are based on the assumption of a stable environment. In reality, the
environment in which the firm operates is rapidly changing and external factors can impose strategies on an
organization. For example, government regulation and controls as in the case of the airline industry or
technological improvements as in the case of digital technology in the media industry (Love and Cooper, 2000:
211).
The planned strategy is clear intentions back by formal control. The leader is the centre of authority with their
intentions being very clear and precise and the goal is to transform the intention to collective action with
920
minimum distortion. Programs and systems are built in to the plan to ensure that no one acts in another way then
intended. For this type of strategic process to be effective the environment has to be extremely stable or the
organization has to be able to predict it with great accuracy. Intended strategies can be implemented as they have
been envisioned if three conditions are met. First, those in the organization must understand each important
detail in management’s intended strategy. Second, if the organization is to take collective action, the strategy
needs to make as much sense to each of the members in the organization as they view the world from their own
context, as it does to top management. Finally, the collective intentions must be realized with little unanticipated
influence from outside political, technological or market forces. Since it is difficult to find a situation where all
three of these conditions apply, it is rare that an intended strategy can be implemented without significant
alteration.
2.2. Deliberate Strategy
A deliberate strategy is a strategy that is carefully planned and controlled by the organization. The traditional
strategies are deliberate strategies. The reasons for this are that these strategies begin with an idea, a plan is then
developed, the plan is communicated, and some form of action(s) follows. The purpose of what can be
considered as a traditional strategy is to create and maintain a long term definable position that results in
competitive advantage within the market (Mintzberg and Waters, 1985; Eisenhardt and Brown, 1998). Deliberate
strategy is the approach of planning school whereas emergent strategy is of learning school. It is seen that there
are great number of studies on deliberate strategy in the basic premises of strategic planning whereas there are
limitations in those of emergent strategy (Özveren and Agras, 2010).
2.3. Emergent Strategy
In the last few years, the idea of emergent strategies and decisions has been rapidly spreading throughout the
business literature. An emergent strategy is essentially an “unplanned strategy,” this meaning a course of action
that is perceived by the organization as strategic only as it takes place or even afterwards (Mariotto, 2003).
Mintzberg (1984) pointed out that the realized strategy of an organization can strongly differ from the intended
strategy and the extent to which an intended strategy can be realized is closely related to the strategic processes
that exist within an organization. Emergent strategies are those strategies that have developed as part of a
“pattern in a stream of actions” and are divorced from any preconceived plan (Mintzberg, 1987; Hamel and
Prahalad, 2005). This strategy is the ability of the organization to be responsive to the environment in order to
maintain its competitive position. Emergent strategy is the cumulative effect of day-to-day prioritization
decisions made by middle managers, engineers, salespeople and financial staff - decisions that are made
“despite, or in the absence of, intentions”. In fact, managers typically do not frame these decisions as strategic at
all, at the time they are being made; they have a decidedly tactical character. Emergent strategies result from
managers’ daily response to problems or opportunities that were unforeseen by those engaged in the deliberate
strategy-making process, at the time they were doing their analysis and planning.
The deliberate and emergent strategies are both important in an organization because deliberate strategies
focus on direction and control to get desired things done while emergent strategies open up the notion of
strategic learning since it involves responding to an unfolding pattern of action (Mintzberg and Waters, 1985). A
pure deliberate strategy is when the organization proposes and then locks itself into a course of action toward a
future destination that it ultimately reaches. In contrast, the pure form of an emergent strategy lacks intention but
despite lack of intention there is “order and consistency over time” (Mintzberg and Walters, 1985).
2.4. Organizational Structures
An organizational structure exists for management and control purposes. It defines the work roles and
how activities are grouped together (Lasher, 2005). Many organizations are structured as a functional
organization that supports a deliberate approach. Bryan and Joyce (2007) argue that most organizations are
designed for a past industrial age where vertical integrated structures were designed for efficient operations.
These vertically integrated structures exhibit high levels of hierarchical authority and control and are more suited
to a stable environment. A virtual organization structure is an emerging organizational form where employees
interact with each other almost completely using telecommunication systems. A virtual organization structure
allows for high levels of connectivity both among the individuals members of the organization and with the
environment. It is an extremely flexible structure that allows an organization to be reactive and innovative.
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Organizational structure can be categorized by two continuums: formal vs. informal, and mechanistic
(bureaucratic) vs. organic (adaptive). Mechanistic structure is a structure characterized by high centralization,
high formalization, and complexity or specialization (Robbins, 1993). Mechanistic structure has the
characteristics of centralization, many rules, rigid division of labor, narrow spans of control, and formal
coordination. Organization structure is likely to impact whether strategy is planned or simply emerges in
organization (Mintzberg and Waters, 1985). Mintzberg and Waters (1985: 269) have called for an investigation
of the types of strategies [i.e. planned or emergent] realized as a function of the structure and context of
organizations. A firm’s strategy may be planned in advance, it may emerge over time, or it may have some
planned and some emergent elements. Mechanistic structures deliberately restrict managerial discretion and
strive to eradicate operational and strategic uncertainty wherever possible, which suggests that they will favor
the creation of planned strategies. Moreover, mechanistic structures emphasize control systems and processes
which are necessary to ensure that planned strategies are implemented as intended (Mintzberg, 1979).
Mechanistic structures, organic structures will logically favor the creation of emergent strategies. Organic
structures are not only likely to facilitate the creation of emergent strategies, they are likely to enhance the
probable effectiveness of these strategies.
3. Methodology
3.1. Research Goal
In this survey we aim to identify the relationship between emergent strategies, deliberate strategies,
organizational structures, firm size and firm age in Turkish SMEs in Antalya. To test the hypotheses, a field
survey using questionnaires will be conducted. The survey of this study will be conducted on middle and top
managers of firms operating in Antalya Organized Industrial Zone, Turkey. Firms were contacted via email or
phone and asked to participate in survey and were interviewed with face to face. Data obtained from
questionnaires will be analyzed through the SPSS 15 statistical program and four proposed relations will be
tested through correlation analyses.
H1: SMEs adopt more emergent strategies than deliberate strategies.
H2: Strategies are positively related to organizational structure.
H3: Strategies are positively related to firm size.
H4: Strategies are positively related to firm age.
3.2. Sample and Data Collection
In this study, SMEs operating in various sectors in Antalya were chosen as the research population. Randomly
selected 192 SMEs were taken as the sample of the research. The number of SMEs registered to Antalya
Organized Industrial Zone (AOSB) is 252 (population) in Antalya 2012. The rate of randomly selected sampling
is 76.2% (192 firms). Analysis has been carried out using data which were obtained from the SMEs in AOSB by
using a questionnaire form. In this study, respondents were asked to rate on seven-point Likert scales (1:
certainly disagree, ….., 7: certainly agree). The respondents were chosen from the top and mid-level managers in
SMEs. Questionnaires were subjected to respondents by interviewing face to face. Data obtained from those 192
questionnaires were analyzed through the SPSS 15 statistical program and the proposed relations were tested.
3.3. Analyses and Results
First the Descriptive Statistics test was applied to data in order to obtain descriptive information about SMEs.
The values obtained from the test are given in Table 1.
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Table 1. Descriptive Statistics for SMEs.
Subjects
Descriptions
Production
112 (58.3%)
11-50 employees
75 (39.1%)
1-7years
26 (13.5%)
Yes
176 (91.7%)
General Man.
41 (21.4%)
Nature of Firms
Firm Size
Duration of Activity
Existence of the Strategic Plan
Status for Managers
Service
29 (15.1%)
51-100 employees
82 (42.7%)
8-15 years
139 (72.4%)
No
16 (8.3%)
Finance Man.
33 (17.2%)
Trade
51 (26.6%)
101-150 employees
27 (14.1%)
16-23 years
24 (12.5%)
+250 employees
8 (4.2%)
+24 years
3 (1.6%)
Personnel Man.
55 (28.6%)
Marketing Man.
60 (31.3%)
Founder
3 (1.6%)
In this study, the emergent-to-deliberate strategy scale (Slevin and Covin: 1997) with a five item, 7-point
scale was used to measure the construct of strategy formation pattern. Moreover, the organization structure scale
with a seven item, 7-point scale was used to measure the mechanization of the firm structures. With regard to
this issue some hypotheses have been developed and the accuracy of these hypotheses was investigated.
According to Skewness and Kurtosis values for normality, it was determined that all the distributions
(Skewness=0 and Kurtosis=0) conformed to normal distribution (Table 6 and Table 10).
Kaiser--Meyer-Olkin (KMO) value is 0.736 and Sig. is 0.000. This KMO value is greater than 0.50.
Therefore, data set is suitable for factor analysis. The cumulative percent in rotation sums of squared loadings is
72.185. According to this result, the one factor resulted in factor analysis explained 72.185 percent of the total
variance. All communalities values are greater than 0.50.
Table 2. Total Variance Explained for Organizational Structures
Initial Eigenvalues
% of Variance
Cumulative %
Component
Total
1
4.331
72.185
72.185
2
.680
11.340
83.524
3
.366
6.107
89.631
4
.338
5.629
95.260
5
.215
3.576
98.836
6
.070
1.164
100.000
Extraction Sums of Squared Loadings
Total
% of Variance
Cumulative %
4.331
72.185
72.185
Extraction Method: Principal Component Analysis
Khandwalla’s (1976/1977) six, 7-point scale was used to measure the mechanization of the firms.
Table 3. Component Matrix in Factor Analysis for Organizational Structures
Variables
Q22
Component
.885
Q17
.873
Q18
.848
Q23
.845
Q16
.835
Q21
.809
Extraction Method: Principal Component Analysis. 1 component extracted.
The reliability coefficients for variables are given in Table 4.
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Table 4. Reliability Analysis
N of Items
6
Cronbach’s Alpha
.922
Strategies
4
.865
Firm Size
1
.722
Firm Age
1
.723
Variables
Organizational Structures
Alpha coefficients obtained were accepted because they were higher than 0.50, as defined by Bagozzi and Yi
(1988), and 0.70 as defined by Nunnally (1978), respectively.
Table 5. Frequencies for Organizational Structures
Variables
Mean
Q16
5.49
Q17
5.43
Q18
5.33
Q21
5.36
Q22
5.42
Q23
5.54
Std. Deviation
.773
.883
.782
.766
.726
.792
Variance
.597
.780
.611
.587
.527
.627
Skewness
.052
-.122
-.197
-.363
-.162
-.249
Kurtosis
.002
-.760
-.650
.447
-.346
.275
Organizational structure was categorized by two parts: mechanistic and organic. A six item, 7-point scale was
used to measure the mechanization of the firm structures. Higher scores on this scale indicate greater levels of
structural mechanization. According to results (Table 5), organizational structure of firms is defined as
mechanics.
Kaiser--Meyer-Olkin (KMO) value is 0.766 and Sig. is 0.000. This KMO value is greater than 0.50.
Therefore, data set is suitable for factor analysis. The cumulative percent in rotation sums of squared loadings is
56.791. According to this result, the one factor resulted in factor analysis explained 56.791 percent of the total
variance. All communalities values are greater than 0.50.
Table 6. Total Variance Explained for Strategies
Component
Total
Initial Eigenvalues
% of
Cumulative
Variance
%
Extraction Sums of Squared Loadings
% of
Cumulative
Variance
%
1
2.856
57.120
57.120
2.856
57.120
57.120
Rotation Sums of Squared Loadings
% of
Cumulative
Variance
%
2.840
56.791
56.791
2
1.152
23.039
80.159
1.152
23.039
80.159
1.168
3
.412
8.250
88.409
4
.323
6.459
94.868
5
.257
5.132
100.000
Total
Total
Extraction Method: Principal Component Analysis
Table 7. Rotated Component Matrix in Factor Analysis for Strategies
Variables
Q55
Component
.891
Q59
.870
Q56
.849
Q57
.753
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
Rotation converged in 3 iterations.
924
23.369
80.159
Table 8. Freguencies for Strategies
Variables
Mean
Q59
5.91
Q55
5.94
Q56
5.65
Q57
5.29
Std. Deviation
1.057
1.004
.897
.885
Variance
1.118
1.007
.804
.784
Skewness
-.762
-1.423
-.132
.033
Kurtosis
.017
3.444
-.536
.219
Strategy was also categorized by two continuums: deliberate and emergent. A four-item, 7-point scale was
used to measure the construct of strategy formation pattern. A low score on this scale indicates an emergent
strategy pattern, while a higher score indicates a deliberate strategy. According to results (Table 8), SMEs adopt
more deliberate strategies than emergent strategies.
The Pearson correlation was used to investigate the relationship between the organizational structure
(mechanics/organics), strategies (deliberate/emergent), firm size and firm age for SMEs. The values for Pearson
correlation coefficients are shown in Table 9. in the correlation table, one to one relationships between
independent variable and dependent variables are given.
Table 9. Correlation Values
Firm Size
1.000
Firm Age
Firm Size
Variables
Strategy
Firm Age
.566**
1.000
Strategies (Deliberate)
.307**
.062
1.000
Organizational Structures (Mechanics)
.157*
.166*
.116*
Org. Structure
1.000
Pearson Correlation and Significance
**. Correlation is significant at the 0.01 level (2-tailed)
*. Correlation is significant at the 0.05 level (2-tailed)
According to results, a positive relationship exists between deliberate strategies and mechanistic structures.
Moreover, there are positive relationships between organizational structure and firm age, firm size. These results
also show that smaller firms are more likely to have deliberate strategies.
The results regarding the hypotheses are shown in Table-10. Totally 4 hypotheses are ranked in the Table.
With regard to the results; Beta coefficiants (), Significance () and ACCEPTED/REJECTED (A/R) status are
also given in the Table. According to these results; only 1 hypothesis was accepted at significance level of 0.01
level.
Table 10. Correlation Values
No
1
Hypothesis
SMEs adopt more emergent strategies than deliberate strategies.
Sig.
-
A/R
R
2
Strategies are positively related to organizational structures.
.116*
A
3
Strategies are positively related to firm size.
.307**
A
4
Strategies are positively related to firm age.
.062
R
4. Conclusion
This survey, which is conducted on SMEs in Antalya, Turkey survived relations among the characteristics of
SMEs and the relationship between emergent strategies, deliberate strategies, organizational structures, firm size
and firm age. The most striking result to emerge from data is that SMEs adopt more deliberate strategies than
emergent strategies. In summary the first hypothesis H1 (SMEs adopt more emergent strategies than deliberate
strategies) and fourth hypothesis H4 (Strategies are positively related to firm age.) are rejected. The second
hypothesis, proposing the relationship between strategies and organizational structures accepted. The third
hypothesis, which concerns the existence of positive relationship between strategies and firm size, is accepted.
925
There is a positive relationship (.307**) between strategy (deliberate/emergent) and firm size. However, there
is no relationship between strategy and firm age. These results imply that smaller firms are more likely than
larger firms to have deliberate (planned) strategies.
The results suggest that organic structural attributes should be matched with emergent strategy-formation
processes, whereas mechanistic structural attributes should be matched with deliberate strategy-formation
processes. Organic structures provide the flexibility, communicativeness, and decision making speed an
organization needs to successfully modify its strategy as the situation dictates. Therefore, these structures
complement firms with emergent strategy patterns. Mechanistic structures, on the other hand, rely upon rules,
policies, and procedures to minimize the managerial and strategic uncertainty, as would be appropriate for firms
with deliberate strategy orientations.
According to Adobi (2005) the findings suggested that SMEs in Nigeria do not adopt more emergent
strategies than planned but, they react to issues and challenges as they occur rather than following a coordinated
or planned patterned behavior (PPB). This finding is not at variance with Westhead et al. (2002) claim that the
attitude of SMEs in the UK is reactive and not planned. According to Love and Cooper (2000), a planned
strategy would have had several advantages over the emergent strategies that the Post Office has adopted for IT.
They have found the strategies towards information management applied by the Post Offices were emergent
rather than deliberate. According to Wongsawan (2009) the results of research the finding revealed that a
positive effect exists between benign environments, mechanistic organizational structure and planned strategic
formation process. Slevin and Covin (1997) in his study of 112 manufacturers found a positive relationship
exists between planned strategies and sales growth among firms with mechanistic structures. On the other hand,
a positive relationship was found between emergent strategies and sales growth in firms having organic
structures.
However, this survey is conducted on SMEs in Antalya, Turkey; findings might not be transferable to all
SMEs in Turkey. Thus, it is recommended that further researches can be conducted on small-scale organizations
and, also in different cities and countries for the generalization of findings. This study provides an important
theoretical insight into the strategies (from deliberate to emergent) and organization structure (from mechanics to
organic) by SMEs, and presents empirical evidence to the strategies literature for Turkish SMEs in Antalya. In
addition, in this study a particular sector is not focused due to the relatively limited number of small and medium
sized enterprises in Antalya. In terms of future research, this study could be resumed using other types of
application of strategic activities such as those applied by Leitner (2007), Adobi (2012), Love and Cooper
(2000), Roger (1996) and Mintzberg and Waters (1985). Moreover, conducting the study among small and
medium-sized firms would further advance the research. For the future studies on this subject, it is suggested that
researchers should focus on the relationships between emergent strategies and firm performance.
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