Budapest Business School
Management and Human Resources
The status of intellectual capital elements has a strong correlation with the level of the company’s corporate value. Traditional corporate valuation techniques take into account the affect of intellectual capital but do so in an indirect... more
The status of intellectual capital elements has a strong correlation with the level of the company’s corporate value. Traditional corporate valuation techniques take into account the affect of intellectual capital but do so in an indirect way.
How could we better utilize the information gained from intellectual capital analysis in corporate valuation? Could intellectual capital management become a fundamental part of value based management?
The paper intends to describe a possible way of utilizing intellectual capital related information (IC elements, capacity status, risks, contribution to value creation) in corporate valuation and value based management, therefore linking the ‘soft’ elements to hardcore financial figures.
In the paper, we overview the traditional approaches of corporate valuation and go through the recent techniques of intellectual capital analysis. Finally, we link the two areas and suggest an approach, which can enrich value based management.
Keywords: intellectual capital, intellectual asset, valuation, value based management, real option
How could we better utilize the information gained from intellectual capital analysis in corporate valuation? Could intellectual capital management become a fundamental part of value based management?
The paper intends to describe a possible way of utilizing intellectual capital related information (IC elements, capacity status, risks, contribution to value creation) in corporate valuation and value based management, therefore linking the ‘soft’ elements to hardcore financial figures.
In the paper, we overview the traditional approaches of corporate valuation and go through the recent techniques of intellectual capital analysis. Finally, we link the two areas and suggest an approach, which can enrich value based management.
Keywords: intellectual capital, intellectual asset, valuation, value based management, real option
With an ever-changing and developing technological environment, we are provided with various new opportunities in education. Using new methods is no longer considered to be a competitive advantage, as participants' expectations are also... more
With an ever-changing and developing technological environment, we are provided with various new opportunities in education. Using new methods is no longer considered to be a competitive advantage, as participants' expectations are also growing at the same time, but simulations are something that both educators and participants can benefit from. How can simulations be useful for educational programmes? As an interactive platform, simulations boost motivation for active participation, and the knowledge absorption level gets higher as participants learn by doing; therefore, users can more easily connect practice to theories and concepts. New approaches open new dimensions in the field of education. A wide variety of simulations are available for trainers and teachers in different focus areas. These allow us to use infinite variations of case studies, or even provide distant learning programs. Along with geographical location, language is also a barrier which has been broken down with the development of online tools. So how can a new technology make a difference in education? What are the hidden benefits compared to traditional learning methods? In this paper we present examples of how simulations can contribute to the learning process. To demonstrate the advantages of these platforms, we are going to show opportunities through a real life example, SimTeam, a web-based business simulation.
This study examines how the leaders' emotional intelligence influence the assessment of their performance (N=81). We compare the assessment of leaders in three relations and examine how some factors and facets of the leaders'... more
This study examines how the leaders' emotional intelligence influence the assessment of their performance (N=81). We compare the assessment of leaders in three relations and examine how some factors and facets of the leaders' Trait Emotional Intelligence influence their assessments in the different relations. Several studies have examined the leaders' emotional intelligence (EI), finding it significantly higher than non-leaders' EI (Komlosi & Gondor, 2011a; Siegling et al., 2014). It is relevant to find out how the leaders' EI influence their performance. Studies differently interpret the concepts of 'leader' and 'leader performance'. Leader performance is often used as a synonym for leader effectiveness in studies. In studies where leader effectiveness is a dependent variable, it is inevitable to measure leader performance. The methods of measuring performance, however, are not well defined. It seems that there as many types of performance assess...
An active debate is proceeding about it, EQ or the IQ makes the managers really successful. The researches appearing in the literature argue often for EQ, but the probative value of the examinations many times weak: the managerial... more
An active debate is proceeding about it, EQ or the IQ makes the managers really successful. The researches appearing in the literature argue often for EQ, but the probative value of the examinations many times weak: the managerial performance measurement came into existence comparative, the comparison of leaders working on different areas had changed a lot according to a suitable method. The article presents it Comparative Leadership Effectiveness Measuring questionnaire developed by the author, the tool that makes an attempt at the solution of the above problems and makes the comparative measurement of the leaders' performance possible. Outlines the research being aimed at the exploration of the contexts of Emotional Intelligence being built on this method and managerial performance while reports on the first own examination results
- by András Göndör
- •
Regardless of the size of an organization, collaboration has become a fundamental element with regard to engagement between the organization and internal and external stakeholders. With the rapid advance of communication technologies and... more
Regardless of the size of an organization, collaboration has become a fundamental element with regard to engagement between the organization and internal and external stakeholders. With the rapid advance of communication technologies and the free-flow of information, the concept of collaboration extends beyond physical locations and time zones in the form of globally connected virtual teams. This study considers how modern Web 2.0-based collaborative technologies (wikis) relate to higher decision quality and productivity, and identifies if these collaborative technologies are better suited to tasks requiring extensive asynchronous collaboration in an educational setting. Controlled experiments involving student teams that worked in technologically and demographically diverse groups showed that wiki technologies do not suit all kinds of tasks, and do not always increase productivity or the decision quality of team collaboration.
- by Richard Kasa and +3
- •
- Web 2.0, Wikis, Decision Making, Collaboration
The objective of the article is to examine the degree to which nationalculture and/or the business sector are influencing factors inorganization culture change. Furthermore, this paper aims to determinewhether the strengths of these... more
The objective of the article is to examine the degree to which nationalculture and/or the business sector are influencing factors inorganization culture change. Furthermore, this paper aims to determinewhether the strengths of these factors differ in two nationalcultures. The subsequent hypothesis was tested on a sampleof mainly Northern-Hungarian and Transylvanian Romanianorganizations to establish whether there was a basis for conductingfurther research. If our hypothesis is correct, significant culturechange is under way in the region.The study analyzes whether cultural changes took place differentlyin production, service and public organizations in the differenttransition economies.
Abstract. Using a combination of qualitative and quantitative methods, this study seeks to explore the diversity of culture amongst the staff of a business school in Hungary and then examine how this diversity may impact upon the... more
Abstract. Using a combination of qualitative and quantitative methods, this study
seeks to explore the diversity of culture amongst the staff of a business school in
Hungary and then examine how this diversity may impact upon the organisation’s
orientations towards three aspects of market orientation: interfunctional
cooperation; competition and the student orientation. The diversity of culture is found
through the identification of five subcultures. These subcultures exhibit signs of both
heterogeneity and homogeneity as two pairs of subcultures are divided not by
differences in values themselves but by the expressed strength of values. The empirical
findings indicate that each subculture varies in perception of the dominant cultures of
the organisation and its particular market orientation in relation to culture type.
Furthermore, some subcultures perceive themselves as enhancing, when this may not
be the case and others perceive themselves as counter cultures. The qualitative study
confirms that subcultures have both homogenous and heterogeneous aspects in
relation to other subcultures as well as the perceived dominant culture. This greater
complexity gives an extension to the existing perspectives taken on organisation
culture, although this would need to be confirmed with generalizable research.
Keywords: business school, subcultures, heterogeneity, homogeneity.
seeks to explore the diversity of culture amongst the staff of a business school in
Hungary and then examine how this diversity may impact upon the organisation’s
orientations towards three aspects of market orientation: interfunctional
cooperation; competition and the student orientation. The diversity of culture is found
through the identification of five subcultures. These subcultures exhibit signs of both
heterogeneity and homogeneity as two pairs of subcultures are divided not by
differences in values themselves but by the expressed strength of values. The empirical
findings indicate that each subculture varies in perception of the dominant cultures of
the organisation and its particular market orientation in relation to culture type.
Furthermore, some subcultures perceive themselves as enhancing, when this may not
be the case and others perceive themselves as counter cultures. The qualitative study
confirms that subcultures have both homogenous and heterogeneous aspects in
relation to other subcultures as well as the perceived dominant culture. This greater
complexity gives an extension to the existing perspectives taken on organisation
culture, although this would need to be confirmed with generalizable research.
Keywords: business school, subcultures, heterogeneity, homogeneity.
... The formal distribution of power is clearer than in the merger case (Gertsen et al., 1998 ... few investigations into organisational culture in European educational contexts, but very few of those have used the competing values... more
... The formal distribution of power is clearer than in the merger case (Gertsen et al., 1998 ... few investigations into organisational culture in European educational contexts, but very few of those have used the competing values framework, such as Cameron and Freeman (1991) and ...
- by Balázs Heidrich and +1
- •
With the rapid advance of communication technologies and the free-flow of information, the concept of collaboration extends beyond physical locations and time zones in the form of virtual teams that are globally connected. This study... more
With the rapid advance of communication technologies and the free-flow of information, the concept of collaboration extends beyond physical locations and time zones in the form of virtual teams that are globally connected. This study considers how modern Web 2.0 based collaborative technologies (wikis) relate knowledge creation and utilization in student groups and aims to find out if these collaborative technologies are better suited to tasks requiring extensive asynchronous collaboration in an educational setting. To perform controlled experiments a sample of student teams that have worked in technologically and demographically diverse groups was selected, from which we had 49 experimental and 48 control teams with 193 and 192 participants respectively. We found that wiki technologies do not suit all kinds of tasks and do not always increase knowledge creation, knowledge maintenance, problem solving and thus knowledge utilization in team collaboration.
- by Richard Kasa and +1
- •
- Wikis, Knowledge Management, Knowledge sharing
Purpose – Our empirical study examines the impact of shop floor (SF) culture (organizational culture perceived by workers) and SF subcultures assessed by the Competing Values Framework (CVF) on the perceived use of lean production (LP)... more
Purpose – Our empirical study examines the impact of shop floor (SF) culture (organizational
culture perceived by workers) and SF subcultures assessed by the Competing Values
Framework (CVF) on the perceived use of lean production (LP) practices.
Design/methodology/approach – We analyse questionnaires completed by workers at our
single case company undergoing a commonplace lean transformation. The survey items cover
both LP items and CVF statements. Our propositions are analysed applying cluster analysis and
regression.
Findings – At the case company, the multidimensionality of SF culture only partially exists,
and the perceived use of LP practices shows little connection to organizational culture. The
considerable differences between SF culture and SF subcultures on one hand and among SF
subcultures on the other hand indicate the existence of a special multidimensional SF culture.
Altogether, SF culture’s impact on LP is weak.
Practical implications – Managers should rethink the usual lean implementation pathways and
understand how values pervade SF culture and how culture types impact the perceived use of
LP practices at the SF. Managers could face a trade off: smoother lean transition by engaging
in SF subculture-specific transitions and reinforcing it or by developing a homogenous lean SF
culture.
Originality/value – To the best of our knowledge, this is the first empirical attempt to
understand the impact of SF culture on the perceived use of LP practices by adopting a validated
organizational culture measurement tool. Furthermore, our study provides insight into workers’
subcultures.
Keywords Organizational Culture, Shop Floor Culture, Lean Production, Competing Values
Framework, Organizational Subcultures
culture perceived by workers) and SF subcultures assessed by the Competing Values
Framework (CVF) on the perceived use of lean production (LP) practices.
Design/methodology/approach – We analyse questionnaires completed by workers at our
single case company undergoing a commonplace lean transformation. The survey items cover
both LP items and CVF statements. Our propositions are analysed applying cluster analysis and
regression.
Findings – At the case company, the multidimensionality of SF culture only partially exists,
and the perceived use of LP practices shows little connection to organizational culture. The
considerable differences between SF culture and SF subcultures on one hand and among SF
subcultures on the other hand indicate the existence of a special multidimensional SF culture.
Altogether, SF culture’s impact on LP is weak.
Practical implications – Managers should rethink the usual lean implementation pathways and
understand how values pervade SF culture and how culture types impact the perceived use of
LP practices at the SF. Managers could face a trade off: smoother lean transition by engaging
in SF subculture-specific transitions and reinforcing it or by developing a homogenous lean SF
culture.
Originality/value – To the best of our knowledge, this is the first empirical attempt to
understand the impact of SF culture on the perceived use of LP practices by adopting a validated
organizational culture measurement tool. Furthermore, our study provides insight into workers’
subcultures.
Keywords Organizational Culture, Shop Floor Culture, Lean Production, Competing Values
Framework, Organizational Subcultures
Family businesses are special in many respects. By examining their financial characteristics one can come to unique results. This paper explores the general characteristics of the financial behaviour of family businesses, presents the... more
Family businesses are special in many respects. By examining their financial characteristics one can come to unique results. This paper explores the general characteristics of the financial behaviour of family businesses, presents the main findings of the INSIST project’s company case studies concerning the financing issues and strategies, and intends to identify the financial characteristics of company succession. As the parallelism of the family and business dimensions characterize the whole existence of family businesses, it is also present in their financial affairs.
The financial decisions in family businesses (especially SMEs) are affected by the following factors:
the primary goal of business decisions is not exclusively profitability,
the simultaneous presence of family and business financial needs requires careful coordination,
preferential handling of family needs at the expense of business needs - though there is evidence of postponing family investments for the sake of business, too.
Family businesses, beyond their actual effectiveness, are guided by individual goals like securing living standards, ensuring workplaces for family members, stability of operation, preservation of the company's good reputation, and keeping the company's size at a level that the immediate family can control and manage. The INSIST project’s company case studies revealed some interesting traits of family business finances like the importance of financial support from the founder’s family at the establishement of the company, use of bootstrapping techniques, financial characteristics of succession, and the role of family members in financial management.
Keywords: Family Business, family business finances, succession, bootstrapping.
The financial decisions in family businesses (especially SMEs) are affected by the following factors:
the primary goal of business decisions is not exclusively profitability,
the simultaneous presence of family and business financial needs requires careful coordination,
preferential handling of family needs at the expense of business needs - though there is evidence of postponing family investments for the sake of business, too.
Family businesses, beyond their actual effectiveness, are guided by individual goals like securing living standards, ensuring workplaces for family members, stability of operation, preservation of the company's good reputation, and keeping the company's size at a level that the immediate family can control and manage. The INSIST project’s company case studies revealed some interesting traits of family business finances like the importance of financial support from the founder’s family at the establishement of the company, use of bootstrapping techniques, financial characteristics of succession, and the role of family members in financial management.
Keywords: Family Business, family business finances, succession, bootstrapping.
The most natural mode of family firm succession is the intergenerational ownership transfer. Statistical evidence, however, suggests that in most cases the succession process fails. There can be several reasons as a lot of personal,... more
The most natural mode of family firm succession is the intergenerational ownership transfer. Statistical
evidence, however, suggests that in most cases the succession process fails. There can be several reasons as
a lot of personal, emotional and structural factors can act as an inhibitor to succession. The effectiveness of
the implementation of any succession strategy is strongly dependent on the efficiency of intergenerational
knowledge transfer, which is related to the parties’ absorptive capacity and willingness to learn.
The paper is based on the experiences learned from the INSIST project. In the framework of the project
different aspects of family business succession have been investigated in three participating countries (Hungary,
Poland and the United Kingdom). The aim of the paper is to identify the patterns of management,
succession, knowledge transfer and learning in family businesses. Issues will be examined in detail such as
the succession strategies of companies investigated and the efforts family businesses and their managers
make in order to harmonize family goals (such as emotional stability, harmony, and reputation) with business-
related objectives (e.g. survival, growth or profitability).
Keywords: family business, succession, knowledge transfer, learning
evidence, however, suggests that in most cases the succession process fails. There can be several reasons as
a lot of personal, emotional and structural factors can act as an inhibitor to succession. The effectiveness of
the implementation of any succession strategy is strongly dependent on the efficiency of intergenerational
knowledge transfer, which is related to the parties’ absorptive capacity and willingness to learn.
The paper is based on the experiences learned from the INSIST project. In the framework of the project
different aspects of family business succession have been investigated in three participating countries (Hungary,
Poland and the United Kingdom). The aim of the paper is to identify the patterns of management,
succession, knowledge transfer and learning in family businesses. Issues will be examined in detail such as
the succession strategies of companies investigated and the efforts family businesses and their managers
make in order to harmonize family goals (such as emotional stability, harmony, and reputation) with business-
related objectives (e.g. survival, growth or profitability).
Keywords: family business, succession, knowledge transfer, learning
Half a century ago, management scholars drew a rather pessimistic picture of the future of the family business. They anticipated '... the hereditary principle to fade fast, because of the greater ability of professionally run public firms... more
Half a century ago, management scholars drew a rather pessimistic picture of the future of the family business. They anticipated '... the hereditary principle to fade fast, because of the greater ability of professionally run public firms to raise capital and attract top talent. In fact, family firms have held their ground and, in recent years have increased their presence among the global business' (The Economist, 2014, p. 2.). In-spite of this prognosis the FB is not only present but also improving its position in the global economy. According to the Fortune 500 company list, the share of FB increased from 15 % in 2005 to 19 % in 2014 in the global economy. In addition, the well-known consulting firm McKinsey predicts that 'in 2025, family companies from the emerging world will account for 37 per cent of all companies with annual revenues of more than USD 1 billion, up from 16 per cent in 2010.' 1 In the case of the European economy, FB represents 40 per cent of the Fortune 500. According to the latest Eurofound report (2015), within the small and medium sized (SME) sector, the FB sector creates more than four fifths (85 %) of the new jobs. Employment within the FB represents almost two thirds (60 %) of jobs or 60 million people on European level in the private sector. Within the next year, more than two thirds of FBs expect changes both in ownership and management in Europe More precisely, one fifth (22 %) of them plan to pass the ownership of the business to the next generation (NxG), almost one quarter (24 %) of them are planning to transfer management of FB to the next generation and more than one fifth (23 %) are thinking of appointing a non-family CEO but keeping family MAKÓ, Csaba – CSIZMADIA, Péter – HEIDRICH, Balázs SUCCESSION IN THE FAMILY BUSINESS: NEED TO TRANSFER THE 'SOCIO-EMOTIONAL WEALTH' (SEW) Rather often we have to confront with the pessimistic views on the future of the family business. Contrary to these prognosis, the FB is not only present but also improving its position in the global economy and playing a key role in the European economy too. They represent 60 % of employment and more than 60 million jobs in the private sector. Among many internal challenges of FB in the five years' time, the importance of the 'company succession' is increasing together with the renewing technology and 'attracting the right sills/ talents' (Global Family Survey, 2015). This article is focusing on the transfer of socioeconomic wealth (SEW) as a key intangible asset within the intergenerational changes in the FB. The paper outlines the various concepts (narrow vs. broad) of the SEW and special attention is paid to the risk prone [taken] and risk adverse entrepreneurial attitudes. In this relation, the authors made distinction between the 'opportunity' and 'necessity entrepreneurs'. Using empirical experiences based on multi-site company case studies in the three INSIST project countries, the various subsections are focusing on the transfer of the following key components of the SEW to the next generation: trust-based social-system, generic human values (i.e. openness, mutual respect, correctness, reliability, responsibility etc.) and 'practice based – embedded collective knowledge'. Key lesson of this analysis is the following: transferring physical assets in the succession process seems to us less important than the transfer of the intangible one embedded in the company's culture community. Further systematic national and international investigations – combining quantitative and qualitative research tools – are necessary to acquire more accurate picture on the impacts of transferring both intangible and tangible assets in the succession process in the FB.