Challenges of Contemporary Economics


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Volume 13 (2019) Volume 12 (2018) Volume 11 (2017) Volume 10 (2016) Volume 9 (2015) Volume 8 (2014) Volume 7 (2013) Volume 6 (2012) Volume 5 (2011) Volume 4 (2010) Volume 3 (2009) Volume 2 (2008) Volume 1 (2007)

Volume 4 Issue 3 (2010)

Reforming the European Scene original article

pp. 5-22 | First published in 3 October 2010 | DOI:

Joseph Ezra Bigio


An unbridled globalization based on a simple premise about earnings and profit maybe detrimental to the livelihood of many thousands of individuals. The greed and utterselfishness that result from the adherence to this sort of business practice are the twothings that generate more unemployment, misery and degradation than most othercharacteristics of the human species.These considerations present the challenge for Western societies and call for theimplementation of other principles, standards and procedures, such as cooperation,cohesion, development objectives and social responsibility. In the first part of the paperthis approach is tested in the case of the EU-US foreign exchange relationships. Thesecond part of the paper raises more general and fundamental issues. While adhering tothe Schumpeter-type innovation environment, it aims to introduce the social dimensionahead of the immediate competitiveness and, therefore, argues for the fundamental reformof the catechism of the capitalist manager. The EU, due to its advanced integration, isrelatively well-equipped to move towards the new economic system.  

Challenges and Threats of the Labor Market Based on Modern Social and Economic Changes. Selected Issues original article

pp. 23-38 | First published in 3 October 2010 | DOI:

Ewa Polak


During at least the last thirty years in the global labor market significant changes inthe preferred qualifications and skills, occupational structure, employment structure andincome structure as well as the related to this evolution of the socio-economic functionsof work can be seen. A specific polarization of the labor market takes place. The factorthat differentiates the situation of individual employees and people who seek work is notonly the level of education, its type and quality, but far particular predispositions,attitudes, skills and personal characteristics. The situation of an economically activepersons is not an autonomous phenomenon arising only from their qualifications,knowledge, determination and life strategy, but is increasing the result of a globalizationdistribution – first of all global competition and the rules governing it.

Sovereign Wealth Funds – the New Challenge for Corporate Governance original article

pp. 39-48 | First published in 3 October 2010 | DOI:

Dariusz Urban


The article discusses Sovereign Wealth Funds with reference do the process ofcorporate governance. In the first part the paper presents the rise, growth and currentinvestment activity of those funds. In the second section the author consider reasons forimplementation of corporate governance best practices. The last part of the papercompares Santiago Principles with OECD principles of corporate governance.

The Influence of the Interest Rate on the Level of Investment Activity in Poland after Receiving the Membership of the EU original article

pp. 49-60 | First published in 3 October 2010 | DOI:

Małgorzata Gawrycka, Anna Szymczak


Polish economy as a member of the EU structure is considered as more reliable andstable on the international arena. This membership also appears to provide the widerrange of possibilities of acquiring financial means from the European funds that constitutethe inseparable element of the new investments and further development.The purpose of the following study is to investigate the relation between the interestrate and the level of the investment activity in Poland after joining the European Union.

The Role of the Concept of Value Based Management in Limiting the Barriers of Small and Medium Enterprises’ Development original article

pp. 61-76 | First published in 3 October 2010 | DOI:

Bartłomiej Cegłowski


The functioning of small and medium sized enterprises is made difficult by the needto constantly overcome many barriers, which can be classified, among others, as internalor external barriers. In this article, the point of view is presented that the implementationof value based management can reduce some of them. Connected with the concept ofvalue based management is the necessity of planning and a concentration on cash flowmanagement and this should, among other things, result in the improved use of resourcesand easier access to extra capital irrespective of the size of the enterprise and the scaleof its activities.

SME -IT Innovations Management in the IT Sector (An Example Approach to Polish IT Market) original article

pp. 77-89 | First published in 3 October 2010 | DOI:

Zenon Biniek, Kazimierz Waćkowski, Michał Żebrowski


In the hereby article, problem of innovativeness of small and medium IT enterpriseshas been defined. Innovativeness of the IT branch has been described. Implementation ofsystematic approach to innovations management has been defined. Internet servicessupporting MSP-IT management has been presented. Innovativeness of IT companies hasbeen presented in the net-economy conditions. Main conditions for introducing newtechnologies in the IT branch have been described.

The Method for Assessing and Forecasting Value of Knowledge in SMEs – Research Results original article

pp. 91-106 | First published in 3 October 2010 | DOI:

Justyna Patalas-Maliszewska, Hannes Werthner


Decisions by SMEs regarding knowledge development are made at a strategic level (Haas-Edersheim, 2007). Related to knowledge management are approaches to "measure" knowledge, where literature distinguishes between qualitative and quantitative methods of valuating intellectual capital. Although there is a quite range of such methods to build an intellectual capital reporting system, none of them is really widely recognized.This work presents a method enabling assessing the effectiveness of investing in human resources, taking into consideration existing methods. The method presented is focusing on SMEs (taking into consideration their importance for, especially, regional development). It consists of four parts: an SME reference model, an indicator matrix to assess investments into knowledge, innovation indicators, and the GMDH algorithm for decision making. The method presented is exemplified by a case study including 10 companies.  

Research and Development Activity of Polish Enterprises. Selected Problems original article

pp. 107-117 | First published in 3 October 2010 | DOI:

Paweł Kupczak


Research and development activity is one of the most compound functions in the industry. The article presents an attempt of analysis R&D activity conducted by Polish enterprises. Author describes expenditure on the R&D in Poland – their structure, participation of foreign means, directions of activity and confronted amounts of the expenditure incurred by enterprises in Poland relating to world companies.

Increasing Shareholders Value through NPV-Negative Projects original article

pp. 119-130 | First published in 3 October 2010 | DOI:

Paweł Mielcarz, Paweł Paszczyk


The concept of Net Present Value (NPV) is a widely accepted tool for verification of financial rationality of planned investment projects. Projects with positive NPV increase a company's value. Similarly, those with negative NPV lead to a decline in the value of a business. This article attempts to answer the question: are projects with negative NPV always disadvantageous in terms of maximization of shareholder value and when should an NPV-negative project be considered justified?The authors discuss the issues of project valuation depending on different conditions. First, they briefly summarize the main idea of valuation - the aim of every company is to maximize shareholder value. Contemporary professional texts say that the way to achieve this goal is through projects that can generate a positive Net Present Value. When there are no such investments within reach, the company should pay dividends to its owners.The authors claim that some circumstances justify investments with a negative Net Present Value, as they still produce maximum possible shareholder value. The three model situations where this takes place are: (1) tax on dividends; (2) shareholders' perception of risk; and (3) temporary inefficiency of the markets.Taxes on dividends reduce cashflows for shareholders from distributed dividends. Therefore, they act exactly as an investment with a negative NPV. The authors conclude that this creates an opportunity to maximize shareholder value by comparing this loss with available alternate projects with negative NPV. If the loss of worth, caused by such taxes, is bigger that the negative NPV of possible investments it will be more rational to invest instead of paying dividends. And, according to the authors, a project with a negative NPV leads to maximized shareholder value.In the second situation, the authors point out that some projects may have negative fundamental (intrinsic) value when valuated by the market (diversified owners) because of their higher expected rate of return. In the same circumstances, an undiversified shareholder may have a different perception of the investment. It is highly possible that he would be ready to accept a lower rate of return in exchange for more safety for his capital. The authors conclude that negative fundamental value (based on the market situation) may be of importance for such shareholder as he prefers projects with lower risk and a lower rate of return.Temporary inefficiencies of the markets may produce a risk of bankruptcy or liquidity problems. The authors argue that NPV-negative projects may be a way to free additional cashflows, which will allow the financial restructuring of the company.  


Modelling in Accounting. Theoretical and Practical Dimensions original article

pp. 131-148 | First published in 3 October 2010 | DOI:

Teresa Szot-Gabryś


Accounting in the theoretical approach is a scientific discipline based on specificparadigms. In the practical aspect, accounting manifests itself through the introductionof a system for measurement of economic quantities which operates in a particularbusiness entity. A characteristic of accounting is its flexibility and ability of adaptationto information needs of information recipients.One of the main currents in the development of accounting theory and practice is tocover by economic measurements areas which have not been hitherto covered by anyaccounting system (it applies, for example, to small businesses, agricultural farms, humancapital), which requires the development of an appropriate theoretical and practicalmodel. The article illustrates the issue of modelling in accounting based on the exampleof an accounting model developed for small businesses, i.e. economic entities which arenot obliged by law to keep accounting records.


The Management Accounting Practices in Albania in the Context of Globalization original article

pp. 149-161 | First published in 3 October 2010 | DOI:

Manjola Naco, Hysen Cela, Petrit Dollani


The main aim of the paper is to provide relevant findings on the status of management accounting in Albanian Accounting Practices, based on the direct survey with selected companies and individuals (experts on the field). In our analysis we have used as a benchmark the IFAC statement on Management Accounting Concepts and its description of the evolution of management accounting. To achieve our objectives we prepared and provided to a large group of professional accountants (that mainly are dealing with bookkeeping and financial statement preparations) a structured questionnaire, containing several questions on the status of the practices applied in Albania on management accounting. This survey was carried out during the first half of 2009.Findings of this paper are based on the answers given by 300 respondents. These answers point out that management accounting practices in Albania tend not to be complex and sophisticated. Budgeting, product profitability and financial performance measurement remain the central pillars, while other, most contemporary, management accounting techniques are sporadically used. There is also little evidence of management accounting concerned directly with "value creation".  


Clustering Methods Application for Customer Segmentation to Manage Advertisement Campaign original article

pp. 163-185 | First published in 3 October 2010 | DOI:

Maciej Kutera, Mirosława Lasek


Clustering methods are recently so advanced elaborated algorithms for largecollection data analysis that they have been already included today to data miningmethods. Clustering methods are nowadays larger and larger group of methods, veryquickly evolving and having more and more various applications. In the article, ourresearch concerning usefulness of clustering methods in customer segmentation tomanage advertisement campaign is presented. We introduce results obtained by using four selected methods which have been chosen because their peculiarities suggested theirapplicability to our purposes. One of the analyzed method – k-means clustering withrandom selected initial cluster seeds gave very good results in customer segmentation tomanage advertisement campaign and these results were presented in details in the article.In contrast one of the methods (hierarchical average linkage) was found useless incustomer segmentation. Further investigations concerning benefits of clustering methodsin customer segmentation to manage advertisement campaign is worth continuing,particularly that finding solutions in this field can give measurable profits for marketingactivity.


Costs of Loyalty Programmes Implementation in Pharmacies original article

pp. 187-202 | First published in 3 October 2010 | DOI:

Maria Sierpińska, Agnieszka Woś


Receiving the customer is in today’s market realities top marketing companies. Thebuild a sustainable partnership relation between the seller and the buyer is decide onbusinesses, takings and profit potential. Increasingly, therefore, perpetuates the view thatcreate lasting relationships is an essential factor in improving the effectiveness ofmarketing activities conducted by modern businesses. The paper presents theimplementation costs of loyalty programmes in pharmacies. These costs are presentedbased on a study of one of the largest pharmacy loyalty programmes in Poland: “I carefor health”.


Shaping the Organizational Culture in Conditions of Increasing the Competitiveness of Enterprises original article

pp. 203-214 | First published in 3 October 2010 | DOI:

Joanna Rębisz


The organizational culture is one of key factors which can influence theorganizational success in building the long-lasting domination of an enterprise. Thearticle is an attempt to introduce and at the same time to present the understanding of theculture in terms of expected bearings which can explain why organizational individuals(or entire organizations) promote only the behaviors which are in accordance with the value and the mission of the enterprises. The author draws attention to the level ofexpectations and behavior, which is usually the result of team work. A lot of attention hasalso been paid to the phenomenon of crossing of two relations: organizational culturewith the function of leadership. The author has also discussed the role of a manager asa means of shaping and supporting an organization culture in conditions of increasingcompetition.