Managing Global Transitions

Volume 4 · Number 1 · Spring 2006 · ISSN 1581-6311 (printed) 1854-6935 (online)

The Editor's Corner
Boštjan Antončič
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Technological Intensity and Patterns in Slovenian Merchandise Trade
Štefan Bojnec and Matjaž Novak

This paper analyses the technological intensity of industries classified by technology levels (low-technology, medium-low-technology, medium-high-technology and high-technology) and patterns in Slovenian merchandise trade developments between and within industries in the post-independence years since 1992. Merchandise trade flows by industries are rather homogeneous in the extent of a decline in the external trade integration measured by intra-industry trade indices and in the presence of relative trade advantages. More considerable differences are found in trade structures and trade quality using the ratio of export to import unit values. In exports we confirm the climbing-up technological development approach, including the jump-up in the medium-high-technology industries in the non-EU-15 markets. Medium-low- and medium-high-technology industries experienced greater price competitiveness in trade with the EU-15 countries. High-technology industries and to a lesser extent low-technology industries experienced a greater competitiveness in the EU-15 internal and external trade. These similarities and differences imply implications for industries with different technological intensity, which are associated with trade and policy shifts before and after the accession of Slovenia to the EU.

Key Words: merchandise trade, trade structures, intra-industry trade, comparative trade advantages, price competitiveness
JEL Classification: F02, F14, F15
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ICT Adoption Policy of Australian and Croatian SMEs
Hazbo Skoko, Branka Krivokapić-Skoko, Marinko Škare, Arnela Cerić

Many SMEs are currently adopting information and communication technology (ICT) and services based on it. However, there is little systematic research into how they are doing this and what are the organisational and environmental factors associated with this adoption. In this article, the authors build the model of ICT adoption in Australian and Croatian SMEs, founded on premises that SMEs are the main economic developing factor in all modern economies and that the adoption and the use of ICT represents the fundamental source of competitiveness and the basis for their survival on the world market. By applying Qualitative Comparative Analysis (QCA) and Boolean algebra, the authors developed a model of necessary and sufficient factors for ICT adoption by SMEs in Australia and Croatia.

Key Words: SMEs, ICT, adoption models, case studies, Qualitative Comparative Analysis (QCA), Boolean algebra
JEL Classification: O32, C80, M13
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Innovation and the Interrelatedness of Core Competencies: How Taiwan's Giant Bicycles broke into the US Bicycle Market
S. Phineas Upham

I argue that capabilities and barriers to entry are, in certain circumstances, interconnected in such a way that sacrificing one of them can lead to the subsequent vulnerability or erosion of another capability or barrier to entry. I illustrate this through a study of the US bicycle market in the 1980's in general, and Schwinn Corporation and Giant Manufacturing in particular, arguing that both the barriers to entry and the firm capabilities were interrelated. A specific set of decisions by Schwinn had broad and unanticipated effects that went beyond the capacity they explicitly relinquished. In this case manufacturing and distribution were tightly linked in such a way that without some form of tight link between them successful incremental innovation became difficult. Seemingly unrelated capabilities and strengths become mutually reinforcing or interconnected. Instead of being able to choose to add a single capability, or choose to discard one, companies may instead be choosing between sets, groups of interlinked, or patterned capabilities. A seemingly small change may require a major reorganization of other core capabilities that its ostensible status belies.

Key Words: international strategy, outsourcing, capabilities, barriers to entry
JEL Classification: F02, F14
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Economic Agents, Ethics and International Economic Organisations
Bruno S. Sergi

The last sixty years have seen international economic organisations maintain a position at the forefront of promoting economic growth and socioeconomic development. These organisations have not achieved as much against certain benchmarks, and several observers have accused them of being unqualified to meet the needs of the poor, and even found them guilty of something worse, such as famine and disease. Although these organisations have organisational behaviour and skills, many of their funded projects lack forcefulness to such an extent that they should only be answerable through achieving certain economic facts by way of ethics and morals. We design ethics and morals as two interconnected concepts, and the rationale that binds all economic agents to their respective obligations must be interpreted by effective courses of action dictated by economic realities.

Key Words: ethical and moral codes, international organisations, national agents, political economy
JEL Classification: A11, F02
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Internal Marketing and Schools: The Slovenian Case Study
Vinko Logaj and Anita Trnavčevič

Schools in Slovenia are expected to address and respond to the changing environment. Breaking through the rigidity of traditions is a complex process. Internal marketing can be used for doing this. It is a process that focuses on teachers and students in order to increase effectiveness and efficiency of schools and also the level of satisfaction of ‘school customers’. The purpose of this paper is to discuss the elements of internal marketing which are essential for teacher and customer satisfaction and to indicate opportunities for the implementation of internal marketing philosophy and related strategies in Slovenian schools. The paper provides a theoretical framework, an analysis of the Slovenian legal framework and the results of the case study conducted in a grammar school. Data were collected through a group interview, a questionnaire and individual in-depth interviews. The findings show that although the concept of internal marketing is unknown to the participants in the study, its philosophy and focus are present in the school.

Key Words: education, marketization, marketing, internal marketing, human resource management
JEL Classification: I2, I21, M31
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