THE MEDIATING EFFECT OF ENDOGENOUS CREATIVITY ON KNOWLEDGE EXPLOITATION AND FIRM PERFORMANCE IN AN EMERGING ECONOMY Karen Yuan Wang Paul Wang Renu Agarwal University of Technology, Sydney ABSTRACT The emerging economies are key factors in the future growth of world trade and the maintenance of global financial stability. Little is known about the way in which firms in emerging economies strategically manage the learning – creativity process to develop competitive advantage in both domestic and global markets. We extend the literature on learning and human capital by positing a model and examining 1) the mediating role of higherorder human capital in the relationship between learning facilitation and knowledge exploitation (KE); and 2) the mediating role of endogenous creativity in the KE – firm performance relationship. Qualitative method based on the sample in China’s firms was adopted and the results indicate that all the hypothesized relationships are supported. Keywords: Structural Equation Modeling, Organizational Human/Knowledge Capital, Endogenous Creativity Learning, Knowledge-Based View, INTRODUCTION Despite the turbulence of their fast-changing environments, firms in emerging economies such as China and India have emerged, grown and even dominated in some markets. However, research on how these latecomer firms strategically manage the learning – creativity process to develop competitive advantage in both domestic and global markets is limited (Bruton, Dess, & Janney, 2007; Lu, Tsang, & Peng, 2008). Recent advances in understanding exploitive learning for high firm performance have been informed by human capital theory, which places emphasis on the role of employees’ quality in firm learning and performance (Pueyo & Sanso, 2005). However, few studies have specifically explored how higher-order human capital (HOHC), defined as an employee’s capabilities, creativity with sufficient knowledge base, firm-specific experiences, and expertise is fostered, and the role it plays in emerging economies. In addition, although social capital has been linked to knowledge sharing (e.g., Nahapiet & Ghoshal, 1998; Rastogi, 2000; Tsai, 2001), there is no empirical study that specifically examines the facilitative role that unit social interactions and trust in peers play in the exploitation – endogenous creativity process, especially in the context of emerging economies (Bruton et al., 2007). Henceforth, to bridge these research gaps, our study seeks to understand how HOHC with specific learning facilitation and KE contribute to a firm’s endogenous creativity in emerging economies. Specifically, we develop a model and examine 1) the extent to which learning facilitation leads to the development of HOHC, which in turn effectively contributes to a firm’s KE; and 2) the endogenous creativity as a mediator of the KE – firm performance relationship. The nomological framework for this research study is presented in Figure 1. We choose Chinese firms as the research setting for our study because China is currently the largest emerging economy. FIGURE 1The Nomological Framework Internal and Dynamic Capability External Higher-order Building (Knowledge Firm Learning human Exploitation & Endogenous Performance Facilitation capital Creativity) 875 Our study attempts to make several contributions to the extant literature. First, by exploring the mediating effect of HOHC, we extend the learning literature concerning the role played by firm learning facilitation in increasing the context-specific capacities of employees that enable them to contribute to KE effectively. Second, our study extends creativity literature by establishing the importance of the relationships among learning facilitation, HOHC, KE, and endogenous creativity from an enhancement perspective (Bowman & Swart, 2007). Our latecomer catch-up model includes a set of antecedents, which reflect particular characteristics of creative social environments and processes for endogenous creativity in emerging economies. THEORETICAL BACKGROUND AND HYPOTHESES DEVELOPMENT Theoretical Background Drawn upon extant literature (Pueyo & Sanso, 2005; Youndt & Snell, 2004), high-order human capital (HOHC) in this study is defined as above. Grounded within extant literature, learning facilitation in this study refers to learning activities that aim to increase employees’ capacities to absorb and integrate up-front knowledge, including participation in industry-specific seminars and symposia, industrial community gatherings, interactions with stakeholders, and formal and informal programs of self-capacity development (Soosay, 2005). Following previous research, particularly that of March (1991) and Nonaka (1994), we refer to knowledge exploitation (KE) as a learning process that is made up of intertwined activities, including sharing and refining existing knowledge into new knowledge, and codifying and converting new knowledge for more effective applications (Tsai & Li, 2007). Previous studies propose (March, 1991; Miller et al., 2006) and empirically find (Atuahene-Gima & Murray, 2007) that an appropriate balance between exploration and exploitation is a crucial factor in a firm’s long-term development of competitive advantage. However, given the limit of higher-order resources, firms in emerging economies tend to choose exploitation to implement a low-cost competitive strategy in the first phase of catchup (Dixon et al., 2007; Li et al., 2010). Chinese firms in the automobile industry, for example, successfully competed with multinational companies through innovative architecture modification in the domestic market (Wang, 2008). Learning facilitation and HOHC. Both human capital theory (Grant, 1996) and competency-based learning theory (Jones et al., 2002) support the cross-level linkage between learning facilitation and individual HOHC. Employees must possess information and skills across a diverse and multi-faceted business to be able to contribute to the firm’s KE process. The learning facilitation activities improve the quality of human capital talent by encouraging employees 1) to establish deliberate associations between past actions, current personal experience, industrial applications, and future situations (Agarwal & Selen, 2009); 2) to search information in depth and breadth from internal and external sources for new products (Katila & Ahuja, 2002); 3) to develop competencies for double-loop learning (Argyris & Schon, 1978); and 4) to associate creation and amendment to routines (Agarwal & Selen, 2009). The articulation of these embedded experiences and intelligence will be translated into higher-order creative skills and dynamic capabilities (Zollo & Winter, 2002). Both internal and external learning facilitation activities also enhance employees’ industry-related vision and their critical thinking skills (García-Morales et al., 2007 HOHC and KE. The relationship between HOHC and KE is underpinned by the double-loop learning theory, which supports the individual’s ability to view and modify what they previously learnt in single-loop learning. Consequently, this ability to question and expand previous knowledge leads to individual knowledge exploration and exploitation as a second-order learning mechanism (Argyris & Schon, 1978). KE requires the abilities of summarizing, communicating, creating, and integrating ideas. Employees’ capabilities, to a large extent, determine whether the relevant experiences can be refined to generate new knowledge effectively in a double-loop learning process. Context-specific HOHC possesses sufficient and relevant knowledge to share, and also arms individuals with strong capabilities to extract and synthesize meaningful new knowledge from previous experiences (Hirst et al.,2009). We argue that context-genetic human capital (i.e., work for living) alone cannot account for effective KE and that the context-specific HOHC (i.e., work for self-actualization) plays a critical role in KE (Agarwal & Selen, 2009; Van de Ven, 2004). More recently, researchers have begun to pay attention to the relationships between 876 employees’ capacities and firm knowledge practices (Kjargaard & Kautz, 2008). The empirical evidence indicates that the failure of many knowledge management projects is accounted for by employees’ lacking sufficient relevant knowledge, making incorrect assumptions about what knowledge is required for the firm’s competitive advantage, or possessing limited abilities to convert knowledge shared from others into meaningful outcomes (Smith, McKeen, & Singh, 2006). It is clear that productive KE cannot take place without HOHC (Hirst et al., 2009). The firm’s capacity to recognize and enhance its employees’ aptitude for exploitation is vital to KE (Cohen & Levinthal, 1990). Based on the foregoing theoretical discussion, we hypothesize the following: Hypothesis 1a: Higher-order human capital mediates the relationship between internal organizational learning facilitation and knowledge exploitation in the latecomer firms in an emerging economy. Hypothesis 1b: Higher-order human capital mediates the relationship between external organizational learning facilitation and knowledge exploitation in the latecomer firms in an emerging economy. Mediating effect of endogenous creativity on KE and firm performance Creativity has been examined primarily at the individual level (Amabile, 1997) and at the group level (Maddux & Galinsky, 2009), but only limited research has investigated creativity at the organizational level (Agarwal & Selen, 2009; Phan et al., 2010). It has been studied from a variety of perspectives in extant literature, including cognitive decision-making, individual learning, and personality theories (Hirst et al., 2009). Our study attempts to fill the gap and draw upon the performance perspective to investigate the mediating effect of organizational endogenous creativity between KE and firm performance. The link between knowledge creation and its implementation has been largely ignored by previous studies in the learning literature (Mehta, 2007; Smith et al., 2006). Following a knowledge creativity-action-outcome model proposed by Smith et al. (2006), we analyze the action role of endogenous creativity in mediating KE and performance link. The direct effect of KE on firm performance. Informed by exploitation learning theory, previous studies have provided empirical evidence that firms can achieve higher performance (Miller et al., 2006), better competitive positions (Adenfelt & Lagerström, 2006), and higher endogenous innovation (Li et al., 2010), when employees 1) exploit their existing knowledge; 2) access and share past learning and experiences; and 3) re-assess and redesign past and current designs. In emerging economies, economies of scale in knowledge use and economies of scope in knowledge accumulation have a significant impact on the outcomes of business operation (Hitt, Ahlstrom, Dacin, Levitas, & Svobodina, 2004). Accordingly, Hitt and colleagues (2004) argue that firms in emerging economies will first cull their internal knowledge basis to respond quickly to fleeting opportunities. The effect of KE on as the mediator of endogenous creativity. According to the knowledge-based view, KE is an important source of endogenous creativity (Tsai & Li, 2007). Endogenous creativity involves creative processes arising from the inner articulation of a given knowledge convergence system. Although the boundaries of such a system are open to exogenous resources, the aspects of endogenous processes are mainly assimilated, based on existing experiences (Antonelli, 2009). The intentional and contextual resource provided by KE is necessary because it allows firms to dig deeper into the analysis of characteristics of the new applications. KE results in the combination of existing and newly acquired creative ideas. It enhances the capacity of units to make novel linkages between inside experiences and outside expectations (Dooley, 2005). The effect of endogenous creativity on firm performance. The rationale for the expected positive effect is that endogenous creativity results in product and service differentiation and process efficiency, which are important determinants of a firm’s performance (Tsai & Li, 2007). Endogenous creativity as a collective cognitive process discovers new patterns from familiar ideas, routines and mental models (Amabile, 1997; Phan et al., 2010). It thus leads to a firm’s higher performance based on production of novel and useful ideas concerning virtually all aspects of the formation and operation of an organization, including products, services, work processes, management methods and business models (Phan et al., 2010). Specifically, firms in emerging economies like China and India adopt various strategies of endogenous creativity for efficiency-effective driven performance (Dixon et al., 2007; Li & Kozhikode, 2008). By creating what customers want and need, successful firms in emerging economies, such as Chinese television 877 manufacturer TCL, appliance-maker Haier, and Chinese-language Internet search provider Baidu, build brands that appeal to consumers under a relatively low cost business model (Stafford, 1998). Summarizing all of the above, we hypothesize the following: Hypothesis 2: Endogenous creativity mediates the relationship between knowledge exploitation and firm performance in an emerging economy. METHOD Sample and Data Collection Data were collected using a highly structured and pretested questionnaire. As suggested by Hoskisson and colleagues (2000), collaboration with local researchers is a key means of obtaining reliable and valid data in an emerging economy, and face-to-face interviews are desirable because they increase response rates and generate more valid information. Through these efforts, we obtained a total of 186 completed surveys. Examining the demographics of the sampling frame, our sample was diverse with a broad representation of various industry types, 56.5% of the sample was from service industries including finance, electricity & transport, and the remaining 43.5% was from the manufacturing sector. Instrument Measures All the measures in the questionnaire were professionally translated with the recommended back-translation procedure (Brislin, 1970; Hoskisson et al., 2000) to ensure conceptual equivalence. The questionnaire was pretested on a convenience sample of Chinese managers. On the basis of the responses received, we revised a small number of questionnaire items to enhance clarity in expression. Unless specially indicated, we measured all the measurement items using a 5-point Likert scale (1 = “strongly disagree”, 5 = “strongly agree”). Research constructs were measured using existing instruments in the relevant literature. Due to space limitation, the detailed items of the eight measures shown in Table 1 are not presented in this paper. Although we focus on examining the relationships among the eight constructs, two control variables were included in our empirical analysis in order to provide a stronger test of our theoretical framework. The two control variables were firm size measured by the number of employees and firm history measured by the number of years that the firm is in operation. 878 TABLE 1 Means, Standard Deviations, and Intercorrelations of Constructs (n = 186) Construct ILF: Internal Learning Facilitation ELF: External Learning Facilitation HHC: High-Order Human Capital USI: Unit Social Interactions Alpha CR AVE HSV Mean StdDev 0.85 0.90 0.69 0.70 0.82 0.80 0.87 0.81 0.84 0.58 0.14 3.20 TIP: Trust in Peers KE: Knowledge Exploration EC: Endogenous Creativity FP: Firm Performance 0.91 0.94 0.74 0.36 3.32 0.87 0.90 0.50 0.31 3.53 0.90 0.93 0.72 0.40 0.87 0.90 0.65 0.34 ILF ELF HHC USI TIP KE 0.44 3.22 0.92 1.00 0.61 0.44 3.06 0.80 0.66 1.00 0.63 0.40 3.30 0.70 0.54 0.44 0.75 0.31 0.38 0.35 1.00 0.79 0.54 0.56 0.60 0.30 1.00 0.77 0.55 0.54 0.46 0.19 0.53 1.00 2.99 0.91 0.61 0.51 0.63 0.29 0.54 0.56 3.34 0.84 0.52 0.39 0.48 0.24 0.48 0.40 1.00 879 EC RESULTS Results of the Measurement Model Table 1 also presents the scale means, standard deviations, and inter-correlations of the eight constructs. In addition, the CR column in Table 1 refers to the construct reliability values, which are similar to the Cronbach alpha values and the same cut-off value of 0.7 can be used to evaluate the reliability of a multi-item measure. The AVE column refers to the average variance extracted and they can be used to assess convergent and discriminant validity of the measures (Hair et al., 2006). Specifically, convergent validity is established when AVE is larger than 0.50 and discriminant validity is established when AVE is larger than the highest shared variance (HSV), which is equal to the highest squared correlation between the construct and the other constructs. It can be seen from Table 1 that the eight measures used in this study had CR scores well above the cut-off value of 0.7, AVE scores of at least 0.5 and larger than their corresponding HSV scores. Therefore, these results suggest that all the eight measures exhibited acceptable psychometric properties. Results of the Structural Model Since the structural model involves two direct effects (H1a & H1b), three mediation effects (H1a, H1a, & H2), we need to use a structural equation modeling approach that takes measurement errors into account (Bagozzi et al., 1991; Hair et al., 2006). The path diagram for the main effects structural model. The two direct effects refer to the path from Internal Learning Facilitation (ILF) to KE (H1a) and the path from External Learning Facilitation (ELF) to KE (H1b). H1a pertains to the mediation effect of HOHC on the relationship between ILF and KE. Similarly, H1a relates to the mediation effect of HOHC on the relationship between ELF and KE The mediation effect of endogenous creativity (EC) on the relationship between KE and firm performance as hypothesized in H2 is depicted by the following two paths: from KE to EC and from EC to Firm Performance. TABLE 2 Estimates for the Hypothesized Paths in the Main Effects Structural Model Hypothesized Path Relevant Hypothesis Standardized Estimate T-Value Hypothesis Supported? (03) Internal Learning Facilitation HOHC H1a 0.4426 5.09 YES (04) External Learning Facilitation HOHC H1b 0.1455 2.15 YES (05) Higher-Order Human Capital Knowledge Exploitation (08) Knowledge Exploitation (09) Endogenous Creativity (10) Knowledge Exploitation Endogenous Creativity Firm Performance Firm Performance H1a & H1b 0.1217 2.03 YES H2 0.5590 10.11 YES H2 0.5178 7.55 YES H2 0.1154 1.41 YES DISCUSSION AND CONCLUSIONS Theoretical implications Our study makes a significant contribution on several fronts. We made a contribution to human capital literature by establishing the mediating effect of HOHC on the learning facilitation and KE link in an emerging economy. The findings indicate that internal and external learning activities positively increase HOHC which, in turn, effectively contributes to KE. To be engaged in KE processes, employees must possess context-specific creative capability to refine and apply knowledge, and improve routines. Competency-oriented and self awarenessoriented learning fit the low-cost, efficient strategy criteria, enabling latecomer firms to catch up with their counterparts in developed-countries (Li & Kozhikode, 2008; Li et al., 2010). Previous studies link human capital with organizational performance directly without integrating the contextual factors (e.g., Youndt & Snell, 2004). The findings of our study may explain why the significant mediating effect of human capital on organizational performance is not found in these previous studies, if KE and endogenous creativity are not included in the path analysis. This is a significant addition to the knowledge base of human capital literature. 880 Finally, the contribution of this study relates to the significant mediating effect of endogenous creativity, defined as an action role in the knowledge-action-outcome model, on the relationship between KE and firm performance in emerging economy firms. The findings explain an important aspect of the latecomer catch-up model and suggest that endogenous creativity is an effective strategy that firms in such economies can adopt, when operating with limited higher-order resources. Managerial Implications Given the limitations of no substantial experience in R&D, no core knowledge, and lack of adoption of new technology for initiating and keeping pace with innovation in developed countries, firms in China were reported to generate limited outcomes out of innovation projects, even though substantial financial resources were distributed to some firms (Cao et al., 2009). The findings of our study suggest that when adopting endogenous creativity as a competitive strategy, latecomer firms need to follow the learning-HOHC-endogenous creativity process in a structured manner with rationalized steps. First, they should initially invest and design the learning activities which guide employees to develop competencies in searching and accumulating the firm’s existing experiences and information. Second, they should consciously act on the new ideas generated by KE and make strategic efforts to turn them into tangible outcomes in the form of new improvements, new features of existing products, and new services. Limitations and Future Research While our study represents one of only a handful of empirical studies that explore and test the linkages among key variables of the latecomer catch-up model, a number of limitations of this study provide opportunities for further research. 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Emin KARAHAN (Ph.D.) Orhan AH N (Ph.D.) Sedat LAÇ NER (Ph.D.) Chairman Erol EREN (Ph.D.) Co-Chairs Ali AKDEM R (Ph.D.) Oya ERD L (Ph.D.) Typesetting Mehtap ÖZ AH N ISBN 978-605-60771-4-2 Organizing Institutions Beykent University Gebze Institute of Technology Canakkale Onsekiz Mart University Statements of facts or opinions appearing in Proceedings of the 7th International Strategic Management Conference are solely those of the authors and do not imply endorsement by the Organization Committee or publisher Baskı – Cilt: Net Kırtasiye Tan. ve Matbaa San. Tic. Ltd. ti. Taksim Cad. Yo urtçu Faik Sok. No: 3 Taksim-Beyo lu/ st. (Sertifika No: 13723) 0212 249 40 60 TABLE OF CONTENTS FIRM STRATEGIES OUT OF CRISIS Purple Ocean Strategy:How To Support Smes’ Recovery (GIORGIO GANDELLINI, DANIELA VENANZI) 3 Management Measures To Be Taken For The Enterprises In Difficulty During Times Of Global Crisis: An Empirical Study (MIKAIL EROL, SUDI APAK, METIN ATMACA, SEÇIL ÖZTÜRK) 19 Managerial Optimism To Overcome Economic Recession In The World (K. JAYARAMAN, DAING NASIR IBRAHIM, CH’NG LI GUAT) 33 Operating Turnaround Strategies During Crisis Periods: A Research On Manufacturing Firms (MEHMET TIKICI, RABIA ECE OMAY, NESLIHAN DERIN, EYDA NUR SEÇKIN, MEHMET CÜREO LU) 45 Applicable Vision, Mission And The Effects Of Strategic Management On Crisis Resolve (PINAR ALTIOK) 55 Stability Of The Firms In Turbulent Environment: Evidence From Turkey (MUSTAFA KURT, ONUR ÜNLÜ) 67 Returns Of Investment Tools In Recession Periods For Turkey (SEFER ENER, ESIN CUMHUR P R NÇC LER ) 77 Prevailing During The Periods Of Economical Crisis And Recession Through Business Model Innovation (AHMET UÇAKTÜRK, MUSTAFA BEKMEZC , TÜLAY UÇAKTÜRK) 91 Variables Perceived By Managers As Antecedents That Lead Firms To Environmental Management: An Empirical Research In The Turkish Construction Sector (ÇA LAR BEK RO LU, LÜTFIHAK ALPKAN, OYA ERD L) 101 A Study Of Superiority Of E-Trade Compared To Traditional Methods Of Commerce In Overcoming Crises: Case Study Of Kitapix.Com (ERDAL AYDIN, SEMIH KAVAKLIOGLU) 117 RECOVERY FROM THE GLOBAL RECESSION Fiscal Decentralization: A Local Solution To Recovery From Global Recession (EMMANUEL INNOCENTS EDOUN) 131 Global Investments And Strategies Of Recovery From The Recession (IVANA MILOSEV, ANA JOZA, LJUBICA MIJUSKOVIC, MIRJANA SUJIC, MILANA MILOSEV, SANDRA BRKANLIC) 139 The Global Governance Reform And The Role Of The G-20 In Recovery From The Global Crisis (GÖKHAN ÖZKAN) 149 The Impact Of The Global Financial Crisis On The Greek Economy And The Role Of Imf On Recovery (SEÇIL ENEL, EBRU TERAZI ) 157 Recovering From The Global Crisis: A Panel Study (ENGIN ERDO AN, MELIHA ENER, FEYZA ARICA) 167 Strategic Management Of Foreign Vassals In Iran Regarding World Recession Period (SAEED ROKOOEI, RAHELEH MIRALAMI, ALI MODARRESI, DARIOUSH POURSARRAJIAN) 173 Tourism Sector In Order To Recovering From The Recession: Comparison Analyses For Turkey (MEHMET SARII IK, DIDAR SARI, SELAHATTIN SARI, MUHSIN HALIS) 179 The Firms’ Survival And Competition Through Global Expansion: A Case Study From Food Industry In Fmcg Sector (YASEMIN ORAMAN, M.OMER AZABAGAOGLU, I. HAKKI INAN) 187 Pursuit For Strategic Foreign Trade Market (VOLKAN ÖNGEL, A.ALKAN ÇEL K, LYAS SÖZEN ) 197 Measuring The Technical Efficiency Of Telecomunication Sector Within Global Crisis: Comparison Of G8 Countries And Turkey (FURKAN DISKAYA, ENOL EMIR, NAZIFE ORHAN) 205 Economists That Have Contributed To Economics Policies In The World, Ottoman State And Republic Of Turkey(EROL EREN) 215 MARKETING STRATEGIES OUT OF CRISIS Analysis Of Customer Expectations After The Recession: Case Of Food Sector (OMER AZABAGAOGLU, YASEMIN ORAMAN) 227 A New Strategic Tool For Managing The Economic Recession: Creating Shareholder Value With Lateral Marketing (SABIHA KILIÇ, EMRE ÇA LAR, EREN GÜNGÖR, RFAN ÇA LAR) 235 E-Commerce As An Alternative Strategy In Recovery From The Recession (CÜNEYT KILIÇ, MESUT SAVRUL) 243 To Be Or Not To Be In Social Media Arena As The Most Cost-Efficient Marketing Strategy After The Global Recession (KAZIM K RT , FILIZ KARAHAN) 255 Marketing Strategies During Recession: A Literature Review And Proposed Guidelines(VOLKAN POLAT, AHMET TUNCAY NERGIS) 263 Recovery From Crisis For Turkish Firms: Synergistic Action Between Foreign Policy And Marketing Process(HUSEYIN A. KANIBIR, SIMA NART, REHA SAYDAN ) 273 The Effect Of Marketing Expenditures During Financial Crisis: The Case Of Turkey (AYKAN CANDEMIR, ALI ERHAN ZALLUHOGLU ) 293 Is It A Way Out Of Crises For White Meat Producers To Focus On Export Strategies During Crisis Times? (CÜNEYT AKAR, YENER PAZARCIK, YAVUZ TANSOY YILDIRIM) 301 STRATEGIC MARKETING Online Group Buying: What Is There For The Consumers?( REM EREN-ERDO MU , MESUT ÇIÇEK) 309 A Decision Support On Planning Retail Tenant Mix In Shopping Malls (SEBNEM BURNAZ, Y. ILKER TOPCU) 317 Fashion Phenomenon In Postmodern Marketing Applications And Effects On The Marketing Components(MUSTAFA AKSU, GÜZIDE ÖNCÜ E. PEKTA , MERVE ESEO LU) 325 An Application On The Social Networking Sites And Popularity On The User And Socialization (GÜZIDE ÖNCÜ ERO LU PEKTA , ZEYNEP ARSLAN, YELDA YÜKSELM , NAZLI DENIZ AKARÇAY) 339 Identifying The Factors Driving Market Selection In Latin America (VERÓNICA BAENA, JULIO CERVIÑO) 349 Influence Of Banks’ Corporate Reputation On Organizational Buyers Perceived Value (VESNA BABIC-HODOVIC, ELDIN MEHIC, MAJA ARSLANAGIC) 357 Measuring Customer Satisfaction In Turk Telekom Company Using Universal Structural Equation Modeling Technique (SELIM ZAIM, ALI TURKYILMAZ, HATICE AKDAG, OMER F. DEMIREL, MEHVES TARIM) 365 Attitudes Towards Mobile Advertising – A Research To Determine The Differences Between The Attitudes Of Youth And Adults (SEVTAP ÜNAL, AYSEL ERC , ERCAN KESER) 375 The Theory Of Cognitive Dissonance: A Marketing And Management Perspective (E. ESER TELCI, CEYDA MADEN, DENIZ KANTUR) 389 A Strategic Marketing Management Approach Of The Relationship Between Companies On B2B Field In Romania And Their Suppliers (C ESCU STEFAN CLAUDIU ) 397 A Study Examining Consumers’ Attitudes Towards Mobile Advertising Messages(NIYAZI GÜMÜ , FATIH GEÇT ) 407 Profiling Online Consumers According To Their Experiences With A Special Focus On Social Dimension (TA KIN DIRSEHAN, MELTEM ÇELIK) 417 STRATEGIC HUMAN RESOURCE MANAGEMENT Measuring Employee Expectations In A Strategic Human Resource Management Research: Job Satisfaction (YASEMIN ORAMAN, GOKHAN UNAKITAN, UFUK SELEN) 429 A Qualitative Study Of Coping Strategies In The Context Of Job Insecurity (MELIH ASTARLIOGLU, SECIL BAYRAKTAR KAZOZCU, RENIN VARNALI) 437 Employment Predictions In Secretarial Occupation (ALI HALICI, BURCU YILMAZ, MURAT KASIMO LU) 449 Role Of Strategic Flexibility In The Choice Of Turnaround Strategies: A Resource Based Approach (SEÇIL BAYRAKTAR KAZOZCU) 461 Importance Of Human Resources In Strategic Merging: Example Of Mergers Between Two Banks With Foreign Capital, Which Operate In Turkey (NURDAN ÇOLAKO LU, GÜL NIHAN GÜVEN YE LDA ) 475 An Application On The Impacts Of Human Resource Management In Technology Management Of The Companies(HARUN DEMIRKAYA, GÜROL ÖZCÜRE, NIMET ERYI IT) 487 An Investigation Of The Effects Of Technology Readiness On Technology Acceptance In E-HRM (NIHAT ERDOGMU , MURAT ESEN) 499 A Research On Sufficiency Of University Education About Satisfaction Of University Student’s Career Expectations(BURHANETTIN ZENG N, LÜTFI MUSTAFA EN, SEYIT AHMET SOLMAZ) 507 The Relationship Between Social Climate And Loneliness In The Workplace And Effects On Employee WellBeing(OYA ERDIL,ÖZNUR GÜLEN ERTOSUN) 515 ENTREPRENEURSHIP The Role Of Regimes To Generate A New Form Of Entrepreneurship: Central Asian Perspectives (OSKAR KAYASAN) 533 How Much Entrepreneurial Characteristics Matter In Strategic Decision-Making?( F. OBEN ÜRÜ, SEZER C. ÇALI KAN, ÖZLEM ATAN, MUSTAFA AKSU) 543 Entrepreneurial Orientation, Learning Orientation, And Innovation In Small And Medium Enterprises(KEVIN SHIHPING HUANG, YU-LIN WANG) 565 The Impact Of International Entrepreneurial Orientation On Strategic Adaptation (GULZHANAT TAYAUOVA) 571 The Impact Of Strategy And Organizational Factors On Corporate Entrepreneurship (JOHAN HOUGH, RETHA SCHEEPERS) 579 The Relationsip Between Entrepreneur’s Level Of Perceived Business-Related Fear And Business Performance (NEVIN DENIZ, LKNUR TA TAN BOZ, ÖZNUR GÜLEN ERTOSUN) 587 Is There Any Linkage Between Entrepreneur Typologies And Strategy Typologies?(MUSTAFA YILDIRIM, M. ABDÜLMETIN D NÇER, ESRA D L) 599 Corporate Entrepreneurshıp And Strategy Process: A Performance Based Research On Istanbul Market (ATA ÖZDEMIRCI) 607 Investigation Of The Effects Of Strategic Leadership On Strategic Change And Innovativeness Of Smes In A Perceived Environmental Uncertainty ( EBNEM ASLAN, AHMET DIKEN, ASLAN ENDO DU) 617 The Impact Of Strategic Planning Activities On Transylvanian Smes- An Empirical Research (OANA ADRIANA GIC , ADINA LETI IA NEGRU A) 629 The Need Of Effective Strategic Management During A Planned Change: An Example Of Bologna Change Process From A Turkish University (SEBNEM PENBEK, DENIZ ZAPTCIOGLU SALCAN, MERT GUNERERGIN) 635 Insights On Entrepreneurship Education In Public Universities In Turkey: Creating Entrepreneurs Or Not? (BIGE A KUN, NIHAN YILDIRIM) 645 EUROPEANIZATION & INTERNATIONALIZATION The Importance Of Competitiveness Measuring In The Light Of Serbia’s Accession To European Union (ANDREA KATIC, GORDANA ABRAMOV, SASA RALETIC, BOJANA JOKANOVIC) 659 Investigating The Recovery Strategies Of European Union From The Global Financial Crisis ( ÜKRÜ YURTSEVER) 669 The Impact Of Turkish Labour Migration On The Human Resources In The European Union (GÖNÜL O UZ) 677 Europeanization Of Labour Markets In New Member And Candidate States (SEFER ENER, BURCU KILINÇ SAVRUL) 693 Tacit Sources Of Competitive Advantages Of The Leading Chinese Companies Extracted From The Longitudinal Analysis Of Chinese Internationalization (MOHAMMAD SAKHAWAT H BHUIYAN) 703 Strategies Of International Growth In Enterprises And Strategic Alliances(SEFER GÜMÜ , SUDI APAK) 711 The Impact Of E-Commerce On International Trade And Employment (NURAY TERZI) 719 Balanced Scorecard Perspective On Change And Performance: A Study Of Selected Indian Companies (AYESHA FAROOQ, ZAREEN HUSSAIN) 727 Strategic Management For The Internationalization And Cooperative Markets(VÍCTOR MANUEL MARTÍN LÓPEZ, IGNACIO RUIZ GUERRA) 737 Information Technology’s Effect On Turkey’s Foreign Trade: An Investigation For The Last Decade (MURAT USTAO LU, BILGEHAN YILDIZ) 747 Problems Encountered By The Exporting Firms: An Application In The City Of Kayseri (M. ÜKRÜ AKDO AN, KURTULU KARAMUSTAFA, KENAN GÜLLÜ, KUMRU UYAR, LHAN GÜLLÜ) 757 Determining The Necessary Criteria For The EU Membership Using The Machine Learning Method: 2005 - 2010 Period Analysis (FURKAN DISKAYA, ENOL EMIR, NAZIFE ORHAN) 773 Myth Or Reality: Corporate Social Responsibility And Stakeholder Theory In Developing World (NAHEED SULTANA, OMER FAROOQ, MARIAM MUSHTAQ) 779 INNOVATION & KNOWLEDGE MANAGEMENT The Effects Of Science-Technology-Innovation On Competitiveness And Economic Growth (SEFER ENER, ERCAN SARIDO AN) 795 Kano Model Application In New Product Development And Customer Satisfaction: Adaptation Of Traditional Art Of Tile Making To Jewelries( BILSEN B LG L , AYSEL ERC , SEVTAP ÜNAL) 807 An Empirical Examination Of Performance And Image Outcome Expectations As Determinants Of Innovative Behaviour In The Workplace (AY E C NGÖZ, A. ASUMAN AKDO AN) 823 The Relationships Between Firm Size, Prospector Strategy, Architecture Of Information Technology And Firm Performance (ADNAN KALKAN, OYA ERD L, ÖZLEM ÇET NKAYA) 829 Enterprise Knowledge Management Model (EKMM) In Strategic Enterprise Resource Management (SERM)( ERCAN ÖZTEMEL, SEHER ARSLANKAYA, TÜLAY KORKUSUZPOLAT) 843 A Management Historian’s Perspective On Conceptualizing The Human Nature In A Knowledge Driven Economy (CONSTANTINE IMAFIDON TONGO) 851 Knowledge Management And Learning Capability To Enhance Organizational Innovativeness (AY E GÜNSEL ,EVANGELIA SIACHOU, A.ZAFER ACAR ) 867 The Mediating Effect Of Endogenous Creativity On Knowledge Exploitation And Firm Performance In An Emerging Economy (KAREN YUAN WANG, PAUL WANG, RENU AGARWAL) 875 The Effects Of Relationship Orientation Through Innovation Orientation On Firm Performance: An Empirical Study On Turkish Family-Owned Firms (ERKUT ALTINDA , CEMAL ZEH R, A.ZAFER ACAR) 883 The Significance Of Emotional Intelligence On The Innovative Work Behavior Of Managers As Strategic Decision-Makers (HASAN DINÇER, GÜL AH GENÇER, NAZIFE ORHAN, KEVSER AHINBA ) 893 Emotional Intelligence In Knowledge Intensive Work Groups: An Empirical Study (AY E GÜNSEL, MARIANA DUDUROVA,, AYÇA TÜKEL, SEVGI ÇEK Ç, ALI EKBER AKGÜN, HALIT KESKIN) 901 The Effects Of Organizational Climate On Team Innovativeness (ATIF AÇIKGÖZ, AY E GÜNSEL) 909 FINANCIAL MANAGEMENT Does Turkish Stock Market React To Public Announcements Of Major Capital Expenditures? (AY EGÜL ÖZBEBEK, SEDA CAN KL , YUSUF AYTÜRK) 919 Financial Risk Management In Renewable Energy Sector: Comparative Analysis Between The European Union And Turkey (SUDI APAK,ERHAN ATAY, GÜNGÖR TUNCER) 925 Cross-Border Bank Acquisitions And Banking Sector Performance: An Empirical Study Of Turkish Banking Sector (MERVE KILIÇ) 935 Country’s Strategy In Export Of Financial Services (MARIJA LINDEMANE) 947 A Fuzzy Weibull Model With Application In Stocks Optimization (EMILIA CAMPEAN, LIVIU MORAR, LUCIA BLAGA) 957 Relationship Between Volatility Index And Credit Default Swap Spread Of Turkey During Global Crisis (FATMA SEZER) 965 The Role Of Credit Default Swaps On Financial Market Stability (NURAY TERZI, KORKMAZ ULUÇAY) 973 Assessing Risk For Strategy Formulation In Steel Industry Through Real Option Analysis(FARRAH MERLINDA MUHARAM) 981 TOURISM MANAGEMENT Russia And The Russian Tourist In Finnish Tourism Strategies—The Case Of The Karelian Region (KATRI JAKOSUO) How To Manage Yacht Tourism In Turkey: Swot Analysis And Related Strategies(MEHMET SARII IK, OGUZ TURKAY, ORHAN AKOVA) 993 1003 The Effect Of Service Interaction Orientation On Customer Satisfaction And Behavioral Intention: The Moderating Effect Of Dining Frequency (RONG-DA LIANG) 1015 Antecedents Of Contractual Completeness: The Case Of Tour Operator-Hotel Allotment Contracts (TUGBA GURCAYLILARYENIDOGAN, ALP YENIDOGAN, JOSEF WINDSPERGER) 1023 Tourists’ Perception And Satisfaction Of Shopping In Alanya Region: A Comparative Analysis Of Different Nationalities (SÜLEYMAN BARUTÇU, HULUSI DO AN, ENGIN ÜNGÜREN) 1033 Strategic Analysis Of The External Environment And The Importance Of The Information: Research On Perceptions Of Hotel Managers(OGUZ TURKAY, SEYIT AHMET SOLMAZ, SERKAN SENGUL) 1043 Patient Care Costs In The State Training And Research Hospitals In Istanbul In Years 2000- 2007 (NUR EN AYDIN, REFIKA BAKO LU DEL ORMAN) 1051 Self Assessment As A Gate To Performance Improvement: A Study On Hospitality Management In Turkey (AYTU SÖZÜER) 1067 ORGANIZATIONAL LEARNING & ORGANIZATIONAL BEHAVIOR The Learning Organization Challenges Within The Smes Tourism Field Of Activity (DAN POPESCU, IULIA CHIVU, ALINA CIOCÂRLAN-CHITUCEA, DANIELA OANA POPESCU, C LIN GEORGEL) 1077 To Continue Prospecting: Performance Implications Of Combinative Capabilities And Explorative Learning (NOR LIZA ABDULLAH, ABDUL LATIF SALLEH) 1085 The Role Of Organizational Learning And Knowledge Transfer In Building Strategic Alliances: A Case Study (NURULLAH GENÇ, N. ÖYKÜ Y GÜN) 1101 The Effects Of Information Technology Supported Education On Strategic Decision Making: An Empirical Study (IKRAM DASTAN, MESUT Ç ÇEK, ABDULLAH NARALAN) 1109 Contingency Approach To Strategic Management: A Test Of The Mediating Effect Of Leader Member Exchange On The Relationship Between Psychological Empowerment And Job Satisfaction In 21st Century Workplace (M.GÖKHAN BITMI , AZIZE ERGENELI) 1117 Perceived Procedural Rationality And Political Behaviors In Strategic Decision Making Process And Organizational Commitment Triangle (MÜNEVVER ÇET N, DILEK PEK NCE) 1127 The Proactive Studies In Developing Corporate Strategies In Police Units: Due Diligence And Satisfaction Assessment (EMEL BAHAR, FERUDUN KAYA) 1135 Independent And Joint Effects Of Perceived Corporate Reputation, Affective Commitment And Job Satisfaction On Turnover Intentions (ÜMIT ALNIAÇIK, ER AN CI ERIM, KÜLTIGIN AKÇIN, ORKUN BAYRAM) 1145 Promoting Creativity Among Employees Of Mature Industries: The Effects Of Autonomy And Role Stress On Creative Behaviors And Job Performance (HÜLYA GÜNDÜZ ÇEKMECEL O LU, AY E GÜNSEL,) 1155 BRANDING STRATEGIES & STRATEGIC CASE STUDIES Store Brand Purchase Intention: Effects Of Risk, Quality, Familiarity And Store Brand Shelf Space ( NCI DURSUN, EBRU TÜMER KABADAYI, ALEV KOÇAK ALAN, BÜLENT SEZEN) 1163 International Branding Strategies Of Developing Countries: The Case Of Arçelik (TANSES GÜLSOY, ÖZLEM ÖZKANLI, RICHARD LYNCH) 1173 The Effects Of Brand Experiences, Trust And Satisfaction On Building Brand Loyalty; An Empirical Research On Global Brands (CEMAL ZEHIR, AZIZE AHIN, HAKAN KITAPÇI) 1187 Measuring Service Quality And A Comparative Analysis In The Passenger Carriage Of Airline Industry (T. SABRI ERDIL, O UZ YILDIZ) 1199 Peugeot Celebrates Its 200 Years Of Life-History, Strategies, Organization And Future Prospects Of The French Car Company. A Comparison With Fiat Auto (FRANCESCO SCALERA) 1207 Managerial Perceptions Of And Attitudes Towards Corporate Sustainability: The Case Of Turkey (OKTAY KOÇ, ÇA LA YAVUZ) 1219 Core Competences In Non- Governmental Organizations: A Case Study (SENEM BESLER, HAKAN SEZEREL) 1229 The Sustainable Company And Employee Participation As A Part Of The Solution To Triple Crisis In The European Union And Turkey: Example Of Omv Samsun Elektrik (GÜROL ÖZCÜRE, HARUN DEMIRKAYA, NIMET ERYI IT) 1241 The Effects Of Brand Communication And Service Quality In Building Brand Loyalty Through Brand Trust; The Empirical Research On Global Brands(CEMAL ZEHIR, AZIZE AHIN, HAKAN KITAPÇI, MEHTAP ÖZ AHIN) 1253 GOVERNANCE- INSTITUTIONALIZATION & CULTURE-CHANGE Governance In Short Term Cooperative Credit Institutions: A Study In Western India (V.M.RAO) 1267 Disclosure And Transparency In Corporate Governance Codes - Comparative Analysis With Prior Literature Findings ( TEF NESCU CRISTINA ALEXANDRINA) 1275 Do Corporate Governance “Actors”’ Features Affect Banks’ Value ? – Evidence From Romania ( TEF NESCU CRISTINA ALEXANDRINA) 1283 Strategic Reactions Of Organizations To Legal Environment: A Typology For Industries In The Process Of Institutionalization (ERDEM KIRKBESOGLU) 1293 Rights Issues And Their Impact On Dilutinf Minority Rights In Israel (YARON ZELEKHA) 1299 Drinking Water Treatment For Reducing Risks In Albanian Conditions (ALBA DUMI, GELINA MALIQI) 1309 Direct Investment In Modern Economy And The Role Played By Companies To That Effect (ISTRATE LUMINITA GABRIELA) 1317 Labour Force Training Enhances The Strategic Mechanism Of The Post-Saudilisation Plan: Evidence From Construction Industry (ABDULLAH AL-MAMI, PETER COOK, ATUL MISHRA, ANDY ANNAMALAI) 1323 BUSINESS ETHICS & SOCIAL RESPONSIBILITIES Going Green Of Mission And Vision Statements: Ethical, Social, And Environmental Concerns Across Organizations (U UR YOZGAT, NILGÜN KARATA ) 1337 The Impact Of Morality And Religiosity Of Employees On Their Hardworking Behavior (MERAL ELÇI, RGE ENER, LÜTFIHAK ALPKAN) 1345 Is Ethical Leadership And Strategic Leadership A Dilemma?: A Descriptive Survey (HASAN TUTAR, MEHMET ALTINOZ,DEMET CAKIROGLU) 1355 The Association Between Organizational Silence And Ethical Leadership Through Employee Performance (CEMAL ZEHIR, EBRU ERDOGAN) 1365 Corporate Social Responsibility: A Study Of Striking Corporate Social Responsibility Practices In Sport Management (BERRIN FILIZÖZ, MÜCAHIT FI NE) 1379 Csr As A Tool To Cope With Economic Crises: The Case Of TE (VILDAN DURMAZ, SAVA S. ATE , GÜRCAN DUMAN) 1389 Perception Of Managers As To The Ethical Responsibility And Competition Strategy:A Survey (HASAN TUTAR, MEHMET ALTINOZ, DEMET CAKIROGLU) 1397 Social Capital Influences On Business Groups’ Diversification Strategies(ELA OZKAN-CANBOLAT) 1405 LEADERSHIP & PERFORMANCE MANAGEMENT Key Success Factors In Implementing Strategy: Middle-Level Managers’ Perspectives (FIRDAUS ALAMSJAH) 1415 Actual And Ideal Leadership Behavior Shift Within The Last Five Years (E. SERRA YURTKORU, ASLI KÜÇÜKASLAN EKMEKÇI) 1421 The Effects Of Leadership Styles And Organizational Culture Over Firm Performance: Multi-National Companies In Istanbul (CEMAL ZEHIR, ÖZNUR GÜLEN ERTOSUN, SONGÜL ZEHIR, BÜ RA MÜCELDILLI) 1429 Overview Of Methodological Trends Of The Last Decade In Strategic Management Research (RAMAZAN UYGUN, EMEL ALTIN) 1441 Board Composition And Organizational Performance: Environmental Characteristics Matter ( RGE ENER, A.KADIR VARO LU, SELIM AREN) 1447 The Relation Between Diversification Strategy And Organizational Performance: A Research On Companies Registered To The stanbul Stock Exchange Market ( HSAN YIGIT, BRAHIM ANIL) 1459 The Relationship Between Reward Management System And Employee Performance With The Mediating Role Of Motivation: A Quantitative Study In Global Banks (PINAR GÜNGÖR) 1473 Strategic Leadership Styles And Organizational Financial Performance: A Qualitative Study On Private Hospitals (MITHAT KIYAK, TUBA BOZAYKUT, PINAR GÜNGÖR, ESRA AKTA ) 1483 A Performance Evaluation Of The Turkish Banking Sector After The Global Crisis Via Camels Ratios (HASAN DINÇER, GÜL AH GENÇER, NAZIFE ORHAN, KEVSER AHINBA ) 1491 Linking Leadership Style To Firm Performance: The Mediating Effect Of The Learning Orientation (MEHTAP ÖZ AHIN, CEMAL ZEHIR, A. ZAFER ACAR) 1503 The Effect Of Organizational Culture On Organizational Efficiency: The Moderating Role Of Organizational Environment And Ceo Values (ESRA AKTA , I IK ÇIÇEK, MITHAT KIYAK) 1517 STRATEGIC NETWORKING & STRATEGIC INTELLIGENCE Perceptions Of Network Effects: Positive Or Negative Externalities? (SEYFI TOP, SERKAN DILEK, NURDAN ÇOLAKO LU) 1533 Competition Between Networks (SEYFI TOP, SERKAN DILEK) 1541 Network Based Determinants Of Innovation Performance In Yacht Building Clusters (FULYA SARVAN, EREN DURMU , CAN DENIZ KÖKSAL, GÖZDE GÜL BA ER, ONUR DIRLIK, MURAT ATALAY, FULYA ALMAZ) 1549 Partnerships And Resource/Cost Sharing: Do Environmental Conditions Matter?( LEE LI, GONGMING QIAN) 1561 Strategic Operations Management: Investigating The Factors Impacting Communication Effectiveness (HASSAN 1573 JORFI, SAEID JORFI) Strategic Operations Management: The Problematic Of Competitive Intelligence: How To Evaluate& Develop Competitive Intelligence?( TANJU COLAKOGLU) 1581 Strategic Operations Management: Investigating The Factors Impacting It-Business Strategic Alignment (SAEID 1589 JORFI, HASSAN JORFI) Do Strategies Emerge?( GADAF REXHEPI,SADUDIN IBRAIM) 1595 SUPPLY CHAIN & QUALITY MANAGEMENT The Effect Of Supply Chain Integration On Information Sharing: Enhancing The Supply Chain Performance ( PEK KOÇO LU, SALIH ZEKI MAMO LU, HÜSEYIN NCE, HALIT KESKIN) 1601 Supply Chain Management, Supply Chain Flexibility And Business Performance (ARAWATI AGUS) 1617 Decision Support Tool On Analytic Network Process Approach For Supplier Selection (FABIO DE FELICE, ANTONELLA PETRILLO) 1629 Enhancing Production Performance And Customer Performance Through Total Quality Management (Tqm): Strategies For Competitive Advantage (ARAWATI AGUS, ZA’FARAN HASSAN) 1639 Measuring Service Quality Of Export Credit Agency In Turkey By Using Servqual(SIBEL DINÇ AYDEMIR, CEVAT GERNI) 1649 ORGANIZING COMMITTEE • • • • • • • • • • • • • • • • • • • • • • • • • Erol Eren (Chairman, Beykent University, Istanbul-Turkey) Oya Erdil (Co-Chair, Gebze Institute of Technology, Kocaeli-Turkey) Ali Akdemir (Co-Chair,Canakkale Onsekiz Mart University, Canakkale-Turkey) A. J. (Lonnie) Strickland (The University of Alabama, Tuscaloosa, Alabama - USA) Asım en (Beykent University, Istanbul-Turkey) Asuman Akdo an (Erciyes University, Kayseri-Turkey) Bella Butler (Curtin University, Perth, Western Australia) Cemal Zehir (Gebze Institute of Technology, Kocaeli-Turkey) Dababrata N.Chowdhury(Plymouth University, UK) Edward A. Ward (St. Cloud State University, USA) Erdal Aydin (Canakkale Onsekiz Mart University, Canakkale-Turkey) Esin Sadıko lu (Gebze Institute of Technology, Kocaeli-Turkey) Irem Erdo mu (Marmara University, Istanbul-Turkey) Irge Sener (Cankaya University, Ankarar-Turkey) Jamaluddin H. Husain (Purdue University Calumet, USA) Lütfihak Alpkan (Gebze Institute of Technology, Kocaeli-Turkey) Mehtap Öz ahin (Gebze Institute of Technology, Kocaeli-Turkey) Meral Elçi (Gebze Institute of Technology, Kocaeli-Turkey) Richard Lynch (Middlesex University, London, UK) Selim Zaim (Fatih University, Istanbul-Turkey) Sonja Petrovic-Lazarevic (Monash University, Australia) Tanses Gülsoy (Beykent University, Istanbul-Turkey) U ur Yozgat (Marmara University, Istanbul, Turkey) Zafer Acar (Okan University, Istanbul-Turkey) Zoltan Veres (Budapest Business School, Hungary) ADVISORY BOARD & PEER-REVIEW COMMITTEE • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Asuman Akdo an (Erciyes University, Turkey) A.. J.(Lonnie) Strickland (The University of Alabama, USA) A. Zafer Acar (Okan University, stanbul-Turkey) A.A. Bulgak (Concordia University-Canada) Aaron J. Shenhar (Stevens Institute of Technology-USA) Adem Ö üt (Selçuk University, Turkey) Adnan Çelik (Selçuk University, Turkey) Adnan Ceylan (Gebze Institute of Technology, Turkey) Ahmet Kesik, Ph.D., Associate Professor (President of Strategy Development Unit, Ministry of Finance, Republic of Turkey) Alain Crochet (University of Sorbonne Nouvelle , France) Alan Garcia Lira (Universidad Autonoma de Yucatan-Mexico) Alastair J. Wright (Stenden University-Netherlands) Albert Schram (Maastricht University-Netherlands) Alexander Egorshin (The Nizhny Novgorod Institute of Management and Business, Russia) Alexi Danchey ( Fatih University, Istanbul, Turkey) Ali Akdemir (Canakkale Onsekiz Mart University, Turkey) Ali Ekber Akgün (Gebze Institute of Technology, Turkey) Ali Halıcı (Baskent University, Ankara-Turkey) Alistair M Brown (Curtin University of Technology, Western Australia) Amar KJN Nayak (Xavier Institute of Management, India) Andrei Burenin (Irkutsk State University, Russia) Andrey Dashkov (Moscow State University, Russia) Asım Erdilek (Case Western Reserve University-USA) Asım en (St. John Fisher College, USA) Atik Kulaklı (Beykent University, Turkey) Atilla Dicle (Yeditepe University, stanbul-Turkey) Aurea Helena Puga Ribeiro (Fundacao Dom Cabral, Brazil) Ayse Günsel (Gebze Institute of Technology, Turkey) Ay en Hiç Gencer (Beykent University, Turkey) Ayten Akatay (Canakkale Onsekiz Mart University,Turkey) Bahadır Akın (Selcuk University, Turkey) Bahri Gökçebay (Kastamonu University-Turkey) Bernd Martin (Duale Hochschule-Germany) Beyza Kocapınar Bayarçelik (Yeditepe University, Turkey) Bige A kun (Marmara University-Turkey) Birol Bumin (Gazi University, Turkey) Borisas Melnikas (Vilnius Gediminas Technical University, Lithuania) Branko Bucar (Pace University,USA) Bülent Sezen (Gebze Institute of Technology, Turkey) Canan Çetin (Marmara University, Turkey) Celso ClaudioHildebrand Grisi (University of Sao Paulo-Brazil) Cemal Zehir (Gebze Institute of Technology, Turkey) Cengiz Yılmaz (Bogazici University, Turkey) Cevat Gerni (Gebze Institute of Technology, Turkey) Ceyhan Aldemir (Dokuz Eylül University, Turkey) Chien-Chung Nieh (Tamkang University, Taiwan) Con Korkofingas (Macquarie University,Sydney-Australia) Dababrata Chowdhury (Plymouth University, UK) Dursun Bingöl (Atatürk University, Turkey) Dzevad Sehic (Faculty of EconomicsUniversity of Sarajevo, Bosnia) • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Ebru Kabadayı (Gebze Institute of Technology, Turkey) Ekrem Tatoglu (Bahçe ehir University, Turkey) Enver Özkalp (Anadolu University, Turkey) Erdal Aydın (Çanakkale Onsekiz Mart University, Turkey) Ernst Neuland (Institute for Business Innovation-South Africa) Erol Eren (Beykent University, Istanbul-Turkey) Esin Can Mutlu(Yıldız Technical University, Turkey) Esin Sadıkoglu (Gebze Institute of Technology, Turkey) Eyüp Aktepe (Gazi University, Turkey) Fahri Karakaya (University of Massachusetts, Dartmouth-USA) Feyzullah Ero lu (Pamukkale University, Turkey) Fuat Oktay (Turkish Airlines, Istanbul, Turkey ) Garry L. Adams (Auburn University, USA) Gilbert Levine(Cornell University-USA) Gökhan Özer (Gebze Institute of Technology, Turkey) Gönül Budak (Dokuz Eylul University, Turkey) Gülruh Gürbüz (Marmara University, Turkey) Gültekin Yıldız (Sakarya University, Turkey) Güne Zeytino lu (Anadolu University, Turkey) Guram Chikovani (Free University, Tbilisi-Georgia) Güran Yahyao lu (Canakkale Onsekiz Mart University, Turkey) Gürcan Papatya (Süleyman Demirel University, Turkey) Güven Alpay (Bo aziçi University, Turkey) Güven Murat (Karaelmas University, Turkey) Hakan Kitapçı (Gebze Institute of Technology, Turkey) Halil Çivi ( nönü University, Malatya-Turkey) Halim Kazan (Gebze Institute of Technology, Turkey) Halis Kalmı (Canakkale Onsekiz Mart University, Turkey) Halit Keskin (Gebze Institute of Technology, Turkey) HA-Nguyen (Vietnam National University, Hanoi School of Business, Vietnam) Hans Zwart (Stenden University-Netherlands) Hasan bicio lu (Süleyman Demirel University, Turkey) Hayat Kabasakal (Bo aziçi University, Turkey) Hikmet Timur (Hacettepe University, Turkey) Hisao Fujimoto (Osaka University of Economics, Japon) Howard Clayton (Auburn University, USA)1 Hüseyin nce (Gebze Institute of Technology, Turkey) Hüseyin Kanıbir (Balıkesir University, Turkey) Hüseyin Özgen (Çukurova University-Turkey) Ibrahim Anıl (Marmara University, Turkey) Inan Özalp (Anadolu University, Turkey) rem Erdo mu (Marmara University, Turkey) rge ener (Çankaya University, Turkey) Jamaluddin H. Husain (Purdue University, USA) Jiri Mezulanik (Silesian University, Opava-Czech Republic) JoAnn D. Hawkins, Howard Community College, , 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, USA Jungwan Lee (Bang College of Business, Kazakhstan) Kadir Varo lu (Ba kent 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) Lütfihak Alpkan (Gebze Institute of Technology, Turkey) M. K. Sharma (Himachal Pradesh University, Shimla-India) M. ükrü Akdo an (Erciyes University-Turkey) Mahir Nakip (Ahmet Yesevi University-Kazakhstan) Mahmut Özdevecio lu (Erciyes University, Kayseri-Turkey) Mahmut Paksoy ( stanbul Kültür University-Turkey) Maria Klimikova (University of Economics in Bratislava-Slovakia) Mariana Dodourova (University Of Hertfordshire, UK) Marius Ungerer (Stellenbosch University, South Africa) Mehmet Barca (Sakarya University, Turkey) Mehmet Demirel (TUBITAK-Turkey) Mehmet Sahin (Anadolu University, Turkey) Mehmet ahin (Canakkale Onsekiz Mart University, Turkey) Mehmet Zor Kaya (Diyalog Avrasya, Chisinau, Republic of Moldova) Muhammet Akdis (Ahmet Yesevi University-Kazakhstan) Muhsin Halis (Manas University, Kyrgyzstan) Mümin Ertürk (Beykent University, Turkey) Münevver Çetin (Marmara University, Turkey) Murat Kasimoglu (Canakkale Onsekiz Mart University, Turkey) Murat Kayalar (Süleyman Demirel University, Turkey) Musa Pınar (Valparaiso University, Indiana-USA) Mustafa Aykaç (Kırklareli University-Turkey) Mustafa Köksal (Kocaeli University, Kocaeli-Turkey) Nazan Yelkikalan (Canakkale Onsekiz Mart University, Turkey) Necdet Timur (Anadolu University, Eskisehir-Turkey) Neil Bechervause (Swinburne University of Technology, Melbourne- Australia) Nevzat Demir (Fıratpen-Turkey) Nurhan Papatya (Süleyman Demirel University, Turkey) Nurullah Genç (Kocaeli University, Turkey) Orhan Elmacı (Dumlupınar University, Turkey) Oskar Kayasan (University of London, UK) Oya Erdil (Gebze Institute of Technology, Turkey) Ömer Adil Atasoy (Osman Gazi University, Turkey) Ömer Torlak (Osman Gazi University, Turkey) Ömür Özmen (Dokuz Eylül University, Turkey) Özlem Özkanlı (Ankara University, -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 ener (Mu la University, Turkey) Refik Culpan (Pennsylvania State University, Harrisburg-USA) Refika Bako lu (Marmara University, Turkey) Re it Özkanca (Melik ah University-Turkey) Rezan Tatlıdil (Ege University, Turkey) Richard Alan Nelson (Manship School of Mass Communication-USA) • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Richard Lynch (Middlesex University, London-UK) Rıdvan Karalar (Anadolu University, Turkey) Riza Atiq Abdullah (Universiti Ke Bangsaan-Malaysia) Sabahat Bayrak (Pamukkale University, Turkey) Sadi Can Saruhan (Marmara University, Turkey) Sefer ener (Canakkale Onsekiz Mart University, Turkey) Selahattin Sarı (Beykent University, Turkey) Selen Do an (Ni de University, Ni de-Turkey) Selim Özdemir (Qafqaz University, Baku, Azerbaijan) Selim Zaim (Fatih University, Turkey) erafettin Sevim (Dumlupınar University, Kütahya-Turkey) Sergei Mordovin (International Management Institute St. Petersburg, Russia) Sevinç Köse (Celal Bayar University, Turkey) evki Özgener (Nev ehir University, Turkey) Shamsul Nahar Abdullah (Northen University of Malaysia,AmanMalasia) Sharan L. Oswald (Auburn University, USA) Shaukat Ali (University of Wolverhampton, Shropsire-Great Britain) Sima Nart (Balıkesir University, Turkey) 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, USA) Sudi Apak (Beykent University, Turkey) Süleyman Türkel (Ça University, Turkey) T. Diana A. De Macedo- Soares (Pontifical Catholic University of Rio de Janeiro, Brazil) Tanses Gülsoy (Beykent University, Turkey) Tatiana A. Burenina (State University of Management, Russia) Tijen Harcar ( zmir University of Economics, Turkey) Tu ba Karabulut (Istabul Commerce University, Turkey) Tuna Taner (Celal Bayar University, Turkey) U ur Yozgat (Marmara University, Turkey) Ülkü Dicle (Yeditepe University, Turkey) Ute Stoltenberg (University of Luneburg-Germany) 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, Turkey) Yener Pazarcık (Canakkale Onsekiz Mart University, Turkey) Yonca Gürol (Yıldız Technical University, Turkey) Yücel Acer (Canakkale Onsekiz Mart University, Turkey) Zeyyat Hatipoglu (Dogus University, Istanbul-Turkey) Zoltán Veres (Budapest Business School, Budapest, Hungary) PREFACE Dear Colleagues and Guests, Welcome to the Seventh International Strategic Management Conference in Paris, France. On behalf of the organizing Committee, I would like to extend my heartfelt greetings to all of you and wish you a successful meeting that yields many productive academic collaborations and reinforces the already established ties, as with past meetings of our conference. The Seventh International Strategic Management Conference is organized with the academic and financials collaborations of Beykent University, Gebze Institute of Technology and Çanakkale Onsekiz Mart University of Turkey. This year we have also enjoyed the academic support of Emerald Group Publishing. As Conference Chairman, I deem it a great pleasure to extend my deep appreciation to my colleagues, Organizing Committee, Advisory Boards and Peer Review Committee and the distinguished Honorary Presidents of our Conference. This year’s conference has received a total 232 papers from 37 different countries. Some of these papers were submitted as full papers from the start. Unfortunately, some of the extend abstracts were not received as full papers by the deadline given for submission of full papers are included. These were selected after careful screening. I am happy to announce that in this year’s conference a much wider geography is represented than in the past. The number countries has increased considerably after the last two years and this indicates that we are reaching an ever wider audience of academicians and participants than before. These 37 countries are: Albania, Australia, Azerbaijan, Belgium, Bosnia and Herzegovina, Canada, China, Finland, France, Greece, Hungary, Indonesia, Iran, Israel, Italy, India, Malaysia, Mexico, Nepal, Kuwait, Kazakhstan, Kyrgyzstan, Latvia, Macedonia, Norway, Romania, Pakistan, Serbia, South Africa, Spain, Taiwan, Thailand, Tunisia, United Kingdom, United States of America, and Turkey. Also, some academicians have been unable to attend the conference due to visa problems which have caused us all much concern. This year our keynote speaker Oskar Kayasan will address you on Investigating Strategies of Recovery from the Recession. Dear Participants, on behalf of the Strategic Management Team, I would once again like to welcome you to the Seventh International Strategic Management Conference. Erol EREN, Ph.D. Chariman of the Conference Beykent University PREFACE We are pleased to welcome you to the 7th International Strategic Management Conference in Paris. It is a great pleasure and honor to participate in this joint meeting. This year, the theme is “Investigating Strategies of Recovery from the Recession” , an important topic around which competitive papers and special sessions are presented. Academicians from different countries submitted original papers for conference presentation and for publication in this edition of Proceedings Book. This year, we are proud to present over 160 papers that reflect scholarly contributions to the theme coming from authors representing 35 countries. All competitive papers have been subject to a peer review. 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. I would like to thank to the Rectors of Universities for their continuing cooperation. My special thanks go to Orhan Sahin, Rector of Gebze Institute of Technology for his valuable support and encouragement. Conference organizers, paper contributors, track chair persons, and paper reviewers have all worked extremely hard to develop a high quality conference program and proceedings book. We owe a special gratuity to Professor Erol Eren, Faculty Dean and Chairman of the Conference. He made great effort to organize and perfect all arrangements. Special thanks to him for his leadership and execution of 2011 Conference. I want to extend special appreciation to Mehtap Öz ahin for her hard work and commitment to the Conference development. We hope that you all will enjoy and benefit from the conference and enjoy your stay in this great city, Paris. Oya Erdil, Ph.D Co-Chair of the Conference Gebze Institute of Technology PREFACE That this conference is being organized seventh time is very meaningful. Because Strategic Management itself required sustainability. This perspective is required for the organization for this conference as well. We had organized its first one in Çanakkale-Turkey, now we are organizing the seventh one in Paris, France. This means conference has been both institutionalized and internationalized successfully. Variety of participants and ownership of presentations too confirms that the event has been internationalized. I think that, because of the success of the event, Prof. Dr. Erol Eren has deserved all kinds of praise. I also congratulate Prof. Dr. Erol Eren’s team friends including Res. Assist. Dr. Mehtap Öz ahin, Assist. Prof. Dr. Erdal Aydın, The Director of Public Relations Meral Aydın. I wish a successful conference. Ali Akdemir, Ph.D. Co-Chair of the Conference Çanakkale Onsekiz Mart University