economic crises and european union

International Conference on Economic and Social Studies 10 - 11 May, 2013

crisis

Sarajevo, Bosnia and Herzegovina

ECONOMIC CRISES AND EUROPEAN UNION s isi cr

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IBU Publications

International Conference on Economic and Social Studies 10 - 11 May, 2013 Sarajevo, Bosnia and Herzegovina

IBU Publication

ECONOMIC CRISES AND EUROPEAN UNION PUBLISHER: International Burch University IBU Publications

EDITED BY Ali GÖKSU Merdžana OBRALIC DTP&DESIGN: Irfan Hasic DTP AND PREPRESS: International Burch University, Sarajevo PRINTED BY: International Burch University Circulation: 400 copies Place of Publication: Sarajevo Copyright: International Burch University, 2013 International Burch University Publication No: 23 Reproduction of this Publication for Educational or other non-commercial purposes is authorized without prior permission from the copyright holder. Reproduction for resale or other commercial purposes prohibited without prior written permission of the copyright holder. Disclaimer: While every effort has been made to ensure the accuracy of the information, contained in this publication, Burch University will not assume liability for writing and any use made of the proceedings, and the presentation of the participating organizations concerning the legal status of any country, territory, or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries.

CIP - Katalogizacija u publikaciji Nacionalna i univerzitetska biblioteka Bosne i Hercegovine, Sarajevo 338.124.4:061.1EU(082) ECONOMIC crises and European Union / edited by Ali Göksu, Merdžana Obralić. - Sarajevo : International Burch University, 2013. - 1776 str. : graf. prikazi ; 30 cm Bibliografija i bilješke uz tekst ISBN 978-9958-834-23-3 Göksu, Ali Obralić, Merdžana COBISS.BH-ID 20597510

Econmic Crises and European Union

EDITED BY Ali GÖKSU Merdžana OBRALIĆ

IBU Publications

Sarajevo, 2013

1st International Conference on Economic and Social Studies 2013

Contents Electronic Government and Privacy Abdullah Ural ,Cihat Çetin .................................................................. Error! Bookmark not defined.

Economic Views of the EU Integration Process of Macedonia Agim Mamuti ...................................................................................... Error! Bookmark not defined.

Optimization Models Performances for Transportation Cost Minimization Fevzi Serkan Ozdemir .......................................................................... Error! Bookmark not defined.

A Case Study of Recycle Based Reverse Logistics Cost Minimization Fevzi Serkan Ozdemir .......................................................................... Error! Bookmark not defined.

How is Accounting Perceived in Cognitive Level? A Study Based On Metaphor Ahmet Gökgöz, ................................................................................... Error! Bookmark not defined.

Europe’s Energy Security and Caspian Oil and Natural Gas Ahmet Tolga Türker ............................................................................ Error! Bookmark not defined.

Branding B&H - Sarajevo as a Touristic Destination

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Alen Husukić, Ilgun ............................................................................. Error! Bookmark not defined.

Anti-dumping measures in European Trade Alexej Sato ........................................................................................... Error! Bookmark not defined.

Social Discourse in History Teaching: Case of Bosnia-Herzegovina Alma Jeftic ........................................................................................... Error! Bookmark not defined.

English Language as an Instrument of Globalization


Amela Lukač Zoranić, ......................................................................... Error! Bookmark not defined. 1764|


Effects of Openness of Leaders in Success of Organizations Amine Khadyr, .................................................................................... Error! Bookmark not defined.

Relationship between Energy Consumption and Economic Growth: The Case of Turkey Ayşe Çoban, ........................................................................................ Error! Bookmark not defined.

Managers' Power Distance in Bosnia and Herzegovina Azra Brankovic ..................................................................................... Error! Bookmark not defined.

Peculiarity of interpersonal communication Bahra Plojović ...................................................................................... Error! Bookmark not defined.

A Comparison of Decision Making Models and Electricity Energy Demand Forecasting for Turkey Bilal Şişman, ....................................................................................... Error! Bookmark not defined.

Global Crisis of 2008 and its Effects on an Emerging Economy of Turkey’s Growth Process

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defined.

Bilge Afşar, , ........................................................................................ Error! Bookmark not defined.

The Collateral of the Rising Public Diplomacy in Turkey: The Presidency of Religious Affairs and the Religious Diplomacy Burcu Sunar ......................................................................................... Error! Bookmark not defined.

Morality and Ethics of Accounting Cemal Elitaş, Çetin Yurt ............................................................................................................ Error! Bookmark not defined. The Dynamic Relationships between Stock Market Capitalization Rate and Interest Rate in Turkey Cengiz Toraman, .................................................................................. Error! Bookmark not defined.

The Effects of Capital Structure Decisions on Firm Performance: Evidence from Turkey | 1765


Cengiz Toraman, , ............................................................................... Error! Bookmark not defined. Event Marketing – A Powerfull Tool Case: Red Bull Šinomobil Event Damir Topalović .................................................................................. Error! Bookmark not defined. TheImplementation of MIS in Banks of Tuzla Canton Danel Trumic, ..................................................................................... Error! Bookmark not defined.

The Measurement of Brand Personality in the City Brand: a Case of Kayseri Emin Emirza, ....................................................................................... Error! Bookmark not defined. Examination of Factors that Influence the Job Satisfaction of Employees in Different Workplaces

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defined.

Emina Sadikovic, , .............................................................................. Error! Bookmark not defined.

Correlation of Change in Fundamental Indicators and Stock Price Movements on Sarajevo Stock Exchange Enis Dzanic ......................................................................................... Error! Bookmark not defined.

Thinking "I" And "The Company" Were the Same Ensar Mekic, ....................................................................................... Error! Bookmark not defined.

The Effects of Deepening Debt Crisis in the Member Countries of European Union on Turkish Economy Erdal Alancıoğlu, , .............................................................................. Error! Bookmark not defined.

ICT use in Small and Medium Enterprises for development in Vlora region Ermelinda Kordha, , , .......................................................................... Error! Bookmark not defined.

The Restructuring of Turkish Public Administration in the European Union Process: Accountability System Ertugrul Acarturk, ............................................................................... Error! Bookmark not defined. Improvement of Corporate Governance Practices of İstanbul Stock Exchange (ISE) Corporate Governance Index Companies Evren Dilek Sengur .............................................................................. Error! Bookmark not defined.

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Usability of the Concept of Local Democracy in Achieving Democratic Process at Local Level

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Fatih Kırışık ......................................................................................... Error! Bookmark not defined.

Correlation Effects of Family and School in Combating Resources and Drugs


Fatima Karišik ...................................................................................... Error! Bookmark not defined.

A Different Banking Methods and the Developing in the Turkish Finance Market-Turkish Participation Banking for 2007-2012 Error! Bookmark not defined. Ferhat Sayım ........................................................................................ Error! Bookmark not defined.

Evaluation of Sectorial Quantitative Data


Turkish Currency Funds ....................................................................... Error! Bookmark not defined. The Influence of Local Governments over the Transformation in Inspection Understanding of Turkey on Tutorship Inspection Error! Bookmark not defined. Feyzullah Unal ..................................................................................... Error! Bookmark not defined.

Evaluation of Roadmap of Turkey for Public Management in the Postmodern Era: Challenges and Prospects Hakan Altintas, ................................................................................... Error! Bookmark not defined.

Analyzing the Relationship between the Competencies and Wage Level: A Case Study in a Telecom Company Halil Zaim ........................................................................................... Error! Bookmark not defined.

Great Depression (1929) in Istanbul and a Turkish Style Contribution to the Solution of the Crisis: Sale Coupons Hamdi Genç, İdris Sarisoy ................................................................. Error! Bookmark not defined.1

Performance of companies Rošić Abas,Cero Ermin, Nedim Čelebić......................................................................................Error! Bookmark not defined.

Knowledge Management Processes in Thermal Hotels: An Application in Afyonkarahisar Province, Turkey | 1767


Ahmet Baytok, Hasan Huseyin Soybali, Ozcan Zorlu..................................................................508

Speed of Financial Integration before and after European Union Membership Aida Halilović, Uğur Ergün.......................................................................................................527

The Relatıonshıp Between short Sellıng And Stock Market Lıquıdıty: EVIDENCE Fromborsa İstanbul Ata H.Ali, Reis, Ş.Gül, Bugan M.Fatih ...................................................................................... 546

Forecasting EUR/TRY Exchange Rates with Artificial Neural Networks Ali Goksu, Olcay Erdogan ........................................................................................................ 555

A first step in answering the U.N.’s call for more research: The Sports For Peace Network Andrew Webb .......................................................................................................................... 574

How Organizational Culture Affects The Motivational Antecedents of Job Outcomes: A Conceptual Model Aziz Bakay ............................................................................................................................... 592

Strategies for Curbing Unemployment in Bosnia and Herzegovina: Lessons from Ireland and Netherlands Azra Bičo,Narela Bajram........................................................................................................... 607

The Social Constructivist Approach as an Instrument for Understanding the “Identity” Dimension of the EU Enlargement Process Burak Begum ........................................................................................................................... 621

Comparison of the Performance of Banks With Electre Method: The Case Of ISE Bilal Şişman,Mesut Doğan ........................................................................................................ 632

Social Appearance of Economic Crisis: Bilge Afşar, Ayşegül Sili ............................................................................................................ 646

Entrepreneurial Culture as a Prerequisite for the Formation of Innovation Driven Organization 1768|


Bojan Morić Milovanović ......................................................................................................... 657

Could burnout be a reason behind airlines accident?: An Emperical Research Study in Turkish Airlines Companies. Cengiz Mengenci, Senay Yürür ................................................................................................. 671

Consumers` Perception of Corporate Social Responsibility in Contemporary World – A Review Danijela Šarčević, Sanel Jakupović ........................................................................................... 678

Foreign Direct Investment in Bosnia and Herzegovina Dino Rahimić, Ugur Ergun ..................................................................................................... 687

A New Personal Expenditure Tax Proposal: The Prevention of Economic Crises Özgen Ferhat Başkan ............................................................................................................... 702

Is a Regional Agreement Among Balkan Countries Applicable? Gelengul Kocaslan ................................................................................................................... 719

An Economic Order Quantity Model for Defective Items under Permissible Delay in Payments and Shortage Harun Sulak, Abdullah Eroglu, Ali M. Avci, Mustafa Bayhan ..................................................... 729 Environmentally-Sensitive Hospitality Enterprises: A Case Study in a Green-Star Certified Hotel in Turkey Hasan Huseyin Soybali, Ahmet Baytok, Mustafa Hotamisli ........................................................ 745 Towards regional market of creative industries and “creativisation“ of Western Balkans economy* Hristina Mikić, Mirjana Rikalo ................................................................................................ 761

The Effects of European Debt Crisis on the Budget Deficits and Debt Stocks of Developing Countries Huseyin Guclu Cicek, Suleyman Dikmen ................................................................................. 783 Stock Selection Based on Discriminant Analysis: Case of Capital Market of Bosnia and Herzegovina Jasmina Okičić, Sonja Rametic Horvath, Baris Büyükdem ......................................................... 798 | 1769


Price Discrimination Approach on the Example of UniCredit Bank dd Mostar Error! Bookmark not defined. Nada Dreca ............................................................................................................................. 824 Effects of the Global Economic Crisis and Public Spending On Income Distribution in Bosnia and Herzegovina Naida Trkić-Izmirlija, Adnan Efendić ................................................... Error! Bookmark not defined. A Bond Market Model Based on Discrete Time/State Space Approximation of the Vasicek Model Nedim Gavranović ................................................................................................................... 867

Sovereign Credit Risk and Credit Default Swap Spread Reflections Neslihan Topbas ...................................................................................................................... 881

Does Turkey’s Stance on Iran’s Nuclear Program Reflect an Axis-Shift in Turkish Foreign Policy? Mai Lan Thang Nguyen ........................................................................................................... 906

Analyzing Macroeconomic Indicators of Economic Growth Using Panel Data Nihat Tas, Ali Hepsen, Emrah Onder ....................................................................................... 921

Innovation – the answer to the economic crisis Ognjen Ridić, Goran Ridić ....................................................................................................... 938

According To Baktashi References the Mutual Perceptions between Muslim Peoples and Other Balkan Peoples in Europe Omer Faruk Teber, Onder Bilgin .............................................................................................. 955

The Dynamics of Knowledge Society Transformation in Sustainable Economic Development Process Osman Nuri Demirel, Muhammed Karatas, M.Zihni Tunca ...................................................... 961 The Dynamics of Knowledge Society Transformation in Sustainable Economic Development Process 1770|


Ramazan Yanik,,Resat Karcioglu ............................................................ Error! Bookmark not defined.

Effects of Shift Working System on Employees' Family and Social Lives Recep Kacmaz,Celalettin Serinkan ......................................................... Error! Bookmark not defined.

The Effects of Cultural Differences and Politics on Tax Morale: The Case of Italy and Turkey Recep Tekeli............................................................................................................................ 995

Research for Mathematics Anxiety of Students Attending Social Programs in Community Colleges: Yalova Community College Sample Salih Yildiz ............................................................................................................................ 1013

Problems of the Turkish Political Parties and Turgut Ozal’s Party ANAP Feyzullah Ural,Selami Erdogan ............................................................................................... 1026

Fiscal Impacts of Privatization in Turkey Sinan Sarigoz,Fazli Yildiz, E. Nail Sagdic ............................................... Error! Bookmark not defined. Maastricht Treaty in the Shaping and Development of the Common Foreign and Security Policy Snezana Bardarova, Mimoza Serafimovska, Tanja Angelkova ................... Error! Bookmark not defined.

ICSID Arbitration and Turkey in Terms of the Subject and Parties Suleyman Dost ..................................................................................... Error! Bookmark not defined.

The relationship between affective commitment (AC) and organizational citizenship behavior (OCB): A study of public and private enterprises in Dinar district Veysel Agca,Hatrettin Ertan .................................................................. Error! Bookmark not defined.

Forecasting Car Demand With Different Methods Yasin Galip Gençer ............................................................................... Error! Bookmark not defined.

Effect of Advertising Activities on Foreign Visitors Purchasing Preferences:The Case of Istanbul | 1771


Yasin Ozaslan,Ercan Tutan ................................................................... Error! Bookmark not defined.

Development of Fisheries and Aquaculture in Albania Xhafa Sonila,Albana Kosovrasti ............................................................. Error! Bookmark not defined.

Point of View from the Perspective of an Accountant to Independent Auditing with the New Turkish Commercial Code Güler F. Ünal Uyar,Halit Gormez, Bulent Kinay ....................................... Error! Bookmark not defined.

The Effects of Organizational Structure on the Efficiency Managers Mirjana Nedović, Dino Božinović ......................................................... Error! Bookmark not defined.

Investment in Human Capital and Economic Growth and the Development of Basic Literacy as the Basic Units of Educational Effects (External aims of education) Hanifa Obralić, Tarik Obralić .............................................................. Error! Bookmark not defined.

Information System Implementation in Kakanj Coal Mine Haris Goralija, Meliha Handžić .............................................................................................. 1180

How to Overcome the Crisis in Relations between the European Union and Turkey Haydar Efe ............................................................................................................................ 1188

Application Efficiency of Experimental Program on Parental Instruction to Children Hazim Selimović, Zehra Selimović ........................................................ Error! Bookmark not defined.

Factors Influencing Buying Behavior on Daily Deal Sites in Turkey Hilal Asil, Hilal Ozcen ........................................................................................................... 1127

The Relationship between Energy Consumption and Economic Growth: Turkey Case Ibrahim Ornek ....................................................................................................................... 1234 1772|


Political Space Philosophies in the History of the Political Thoughts of the Western European Universalism and the European Union Idris Demirel, Huseyin Gul .................................................................................................... 1248

The Concept and Development of the Civil Dialogue at EU Level Indira Hasanović ................................................................................................................... 1256

Determination of Cultural Characteristics of Hunters for Hunting and Wildlife Management (The Case of Istanbul Province) Ismail Safak, Taner Okan, Erdem Hizal, Tamer Kececioglu, Caner Isik, Sedat Acar................... 1275

Globaland StatePolicy andModern FinancialCrisis Izet Ibreljic, Amra Nuhanovic ............................................................... Error! Bookmark not defined.

Institutional Reforms as Requirement for Efficiency and Functionality in the Governance of Bosnia and Herzegovina Kemal Balihodžić, Esad Oruč ................................................................................................. 1316

The Impact of Travel &Tourism Competitiveness Factors on Tourism Performance: The Case of Silk Road Countries Kemal Kantarci, Kazim Develioglu ......................................................................................... 1325

The Knowledge as the Main Determinant on the Employment and the Employees’ Profile Kenan Oren, Hasan Yuksel ..................................................................................................... 1333

Exploring the potential contribution of B&H diaspora to economic development of B&H Lejla Kamenjaš ...................................................................................................................... 1352

Significant Predictors of Employees’ Motivation and Employees’ Job Satisfaction Ljiljan Veselinovic,Zijada Rahimic ......................................................... Error! Bookmark not defined.

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Predictability of Financial Crisis in Developing Countries: Turkey, Argentina and Thailand M.Ali Avci, N. Oguzhan Altay ................................................................................................ 1386

Diversification Strategies of Business Groups in Bosnia and Herzegovina Muhammet Sait Dinc, Mustafa Kurt ....................................................................................... 1401

The importance of Balanced Scorecard in business operations Maida Djakovac ..................................................................................................................... 1413

The Effect of Mass Media on Individuals’ Political Choice as an Effective Means of Propaganda: A Case of Yalova Mehmet Gökhan Genel .......................................................................................................... 1424

The Efficiency of Investment in Education and Teacher Training and Professional Development Melida Župljanin ................................................................................................................... 1444

Key Motivational Drivers for Customer Engagement on Facebook Brand Fan Pages in Bosnia & Herzegovina Merima Bejtagić-Makić .......................................................................................................... 1455 The Relationship between Corporate Governance and Performance of Insurance Firms: Evidence from Turkey Mesut Dogan, Bilge Leyli Elitas, Ramazan Nacar ..................................................................... 1468

The Effects of CEO Turnover on Firm Performance in High-Tech vs. Low-Tech Firms: Evidence from Turkey Mesut Dogan, Veysel Agca ..................................................................................................... 1386

A Comparison and an Implementation of Time Driven Activity Based Costing and Activity Based Costing Methods in Private Schools Metin Yilmaz, Ali Coskun, Senay Yilmaz ................................................................................. 1490

Virtual Banking: An Overview Muhammet Ozcan, Murat Secemeli, Resat Karcioglu, M.Dursun Kaya ..................................... 1507 1774|


The Relationship Between the Content of Lifelong Education for Sustainable Development And Needs of the Educational Environment Muharem Dautović ................................................................................................................ 1513

Destination Marketing Organizations’ Social Media Usage: A Research on Balkan Countries Murat Bayram, Semih Arici .................................................................................................... 1522

The Importance of Export Market Diversification Strategy on the Overcoming Economic Crises: The Case of Turkey Mustafa, Gokturk, Tunay Bostan, Cemil Serhat Akin .............................................................. 1533

Machiavellianism in Relation to Ethical Leadership and a Practice


Mutafa Kemal Demirci, Gulten Eren Gumustekin, Nuray Mercan, Bayram Almur, Suleyman Tiryaki ............................................................................................................................................. 1386

The Relationship between Social Media and Human Development: An Analyze on Transition Economies Mustafa Malkoc Yasar ........................................................................... Error! Bookmark not defined.

Implementation of Transportation Problem by Using the Method of Meta-Heuristics Approach Muzafer Saračević, Šemsudin Plojović, Enis Ujkanović, Senad Bušatlić ..................................... 1578

Tourism Performance of Balkan Countries:Travel and Tourism Competitiveness Pillars as Determining Factors Kazim Develioglu .................................................................................................................. 1588 Stairways to hell (Historical interventionism as a truly roots of current global economic crisis) Bookmark not defined.

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The Impact of Infrastructure Investments on Regional Economic Performance: A Meta-Analysis Mehmet Akif Kara, Serkan Ada .............................................................................................. 1606

Business Ethics from the Point of View of Corporate Social Responsibility in Strategic Management | 1775


Mehmet Sadik Oncul, Berrin Filizoz, Banu Bolayir .................................................................. 1622

Exporting Opportunities Provided by E-Commerce for Small and Middle Sized Enterprises (SMEs) Meryem Kara, Ali Coskun ...................................................................................................... 1637

In the Process of Global Crisis the Importance of Tourism in Decreasing RegionalD differences: an Evaluation of Kastamonu Province in Turkey Serkan Dilet, Orhan Kandemir ............................................................................................... 1644

Rural Entrepreneurship in Bosnia and Herzegovina, challenges and opportunities Selma Delalić, Nermin Oruč ................................................................................................... 1666

Absolute poverty and Regional Disparities in Albania Sonila Xhafa .......................................................................................................................... 1686

External Trade Policy of BiH and Herzegovina: Effect on Unemployment Tarik Ćenanović .................................................................................................................... 1706

Capital Market in Bosnia and Herzegovina: Unused Potential as Alternative Source of Financing Tarik Kurbegović ................................................................................................................... 1722

Economic Crisis And Its Impacts On International Road Transportation Sector Between European Union And Turkey Aydin Ulviyye ........................................................................................................................ 1740

The Relation Between Self-Esteem in Decision Making, Decision Making Styles and Problem Solving Skills Yusuf Yilmaz, Sevcan Yildiz ................................................................................................... 1752

The Role of Person-Job Fit and Organizational Commitment on Emotional Labor: Evidence from Turkey Senay Yürür ,Cengiz Mengenci.................................................................................................1765

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Knowledge Management Processes in Thermal Hotels: An Application in Afyonkarahisar Province, Turkey

Assist. Prof. Dr. Ahmet BAYTOK Afyon Kocatepe University School of Tourism and Hotel Management, Turkey [email protected] Assist. Prof. Dr. Hasan Hüseyin SOYBALI Afyon Kocatepe University School of Tourism and Hotel Management, Turkey [email protected] Res. Assist. Ozcan ZORLU Afyon Kocatepe University School of Tourism and Hotel Management, Turkey [email protected]

Abstract As a result of globalization and intensive competition, knowledge and knowledge management (KM) has become the main factor that determine the market value of the enterprises or organizations. With its increasing importance knowledge has become an important component in creating competitive advantage and business capital has begun to be distinguished as physical capital and intellectual capital. As a basic resource of intellectual capital, organizations have to effectively and systematically manage this knowledge in order to survive and create sustainable competitive advantage in long term. In simple terms, KM refers to creation, adaptation, dissemination and usage of required knowledge within organization and among organisations through a well-planned process. Hence, KM express a certain process and this process consists of certain steps such as acquiring, creating, documenting, disseminating, sharing and use of knowledge. 508|


Especially in 1990s, with the increasing attention to KM processes, it has become one of the most debated management concepts and numerous studies conducted in the scope of this emerging concept. Contrary to its popularity in business management literature, it’s seen that number of studies on KM processes in hospitality industry is very limited. Thus, KM is a relatively new concept for hospitality management literature and much more detailed studies need to be conducted in order to understand the KM and KM processes in hospitality industry. In this context, this study aims to draw attention to KM in hotels by evaluating KM processes in thermal hotels. Within the scope of research the KM processes applied in thermal hotels has been determined through conducting questionnaire surveys. Percentage and frequency tables are used to present participants’ demographic characteristics and learn participants’ views about KM processes. Finally, discriminant analysis determines differences between participants’ views based on their demographic characteristics. As a result of the study, it’s found that thermal hotels highly apply KM processes. Knowledge creation is the most applied KM process. In addition, it’s found that informal communication should be encourage in order to improve knowledge sharing. Keywords: Knowledge Management, KM Processes Thermal Hotel, Afyonkarahisar, Turkey Introduction Rapid changes in business have made knowledge, which is the main determinant of transforming business techniques and technologies into a competitive tool, important. Since competitors cannot benchmark or copy possessed unique knowledge, this fact makes the knowledge significant (Tiwana, 2003: 72). Thus, today, knowledge and knowledge management (KM) is one of most heavily invested asset in business, and one of the most researched subjects in academic literature. KM that is seen necessary and important for companies in sustaining their existence and gaining competitive advantage (Martensson, 2000: 204; Schönström, 2005: 17; Sandhawalia and Dalcher, 2010: 313, Stapleton,2003: 97) has first coined by Dr. Karl Wiig to academic literature. KM described by American Productivity and Quality Center (APQC) as a systematic approach (integrating people, processes, technology, and content) to enable information and knowledge to be created and flow to the right people at the right time so that their work and decisions can add value to the mission of the organization (Leawitt, 2003). KM has also engendered many new concepts and categories in using knowledge to create value (Dalkir, 2005: xiii). Nowadays, all companies gather information by interacting with their business environment; transform this information to the knowledge and run by using this knowledge consonantly with their know-how, values, beliefs and internal rules (Davenport and Prusak, 2000: 52). This process also named as KM processes naturally exist in organization (Shi, 2010: 12), express a structured | 509


coordination to effective management of knowledge (Gold, Malhotra, Segars, 2001:187) and mainly related with how knowledge created and used in organization (Nonaka and Takeuchi, 1995: 59). When the KM literature reviewed, it’s seen that KM processes have categorized differently by many researchers such as Fink and Ploder (2011), Liebowitz (2001), Bouncken (2002), Bryant (2003) Alavi and Leidner (1999), Holsapple, Jones and Singh (2007) and etc. In consideration with these categorizations KM processes can be classified as knowledge acquisition, knowledge creation, knowledge sharing, knowledge storage and documentation and knowledge using. These processes will be explained in next section in detail. Contrary to its popularity in business management literature, it’s seen that number of studies on KM processes in hospitality industry is very limited. Thus, KM is a relatively new concept for hospitality management literature and much more detailed studies need to be conducted in order to understand the KM and KM processes in hospitality industry. In this context, this study aims to draw attention to KM in hotels by evaluating KM processes in thermal hotels. Within the scope of research the KM processes applied in thermal hotels has been determined through conducting questionnaire surveys. Percentage and frequency tables are used to present participants’ demographic characteristics and identify participants’ views about KM processes. Finally, discriminant analysis determines differences between participants’ views based on their demographic characteristics. KM Processes in Hospitality Enterprises Tourism industry as a knowledge intensive industry consists of complex and dynamic network structures (Baggio, 2006). Intangible, inseparable, perishable and heterogeneous characteristics of tourism product and its compound nature makes knowledge requirement important for tourism industry. Acquisition of knowledge instantly and using in production, consumption and operational activities are rarely important in other sectors as much as tourism industry (Poon, 1993). Knowledge plays vital role in tourism industry and without knowledge industry cannot fulfil its functions completely (O’Connor, 1999). Increasing and diversifying needs and expectations of tourism demand, increased competition and efficient use of resources makes knowledge important in tourism and knowledge sharing becomes core of tourism business (Pollack, 1995), Hospitality enterprises are mainly service producers. For the achievement of the final products, hospitality companies collaborate with a variety of service industries like travel agencies, tour operators, carriers, entertainment, shopping and etc. Thus hospitality industry have knowledgebased or knowledge intensive service processes (Kahle, 2002). Moreover the industry is knowledgeintensive as a result of the nature of the service product, where the service delivery occurs as a result of interaction between customers and employees and where it is required that employees are 510|


acknowledged about customers’ needs in order to achieve customer satisfaction (Kahle, 2002; Kotler, Bowen and Makens, 1999; cited by Hallin and Marnburg, 2007:3). In addition, knowledge management is important for hotel chains which have to deliver an overall quality standard in geographically distributed hotels (Medlik, 1990: 153; cited by Bouncken, 2002: 27). Possible application areas of knowledge management systems in hospitality and tourism are business planning (process of planning capacities, quality standards and prices of additional services), service operations (hotel facilities planning, event scheduling) quality improvement (e.g. managing customer complaints) and reaction on emerging cases (Gronau, 2002). And, possible knowledge sources can be contents of files on a server, intranet pages, directory of business relevant persons, email traffic that is guided to specialists for certain situations (e.g. for technical maintenance (Gronau, 2002). Bounken (2002: 30) classifies this knowledge exists in related sources, as taskspecific, task-related, transactive memory and guest –related knowledge for hotels. Hoteliers should have always sought used and valued knowledge like professionals in other business sectors. Thus knowledge exists in hospitality enterprises should be managed in scope of strategic manner with certain processes. Cooper (2006) classifies knowledge management processes in hotels as knowledge stocks and mapping, knowledge capturing, knowledge codifying, knowledge flow and knowledge transfer. And, Bouncken (2002) classify those processes as knowledge identification, acquisition and development of knowledge, knowledge accumulation, retrieval and distribution, and knowledge controlling. On the other hand these processes classified by authors are in accordance with general KM literature. Since, the authors classify KM processes as acquisition, creation, sharing, storage and documentation, and utilization of knowledge as mentioned before. Knowledge acquisition: Companies firstly try to identify needed knowledge that exists outside and inside of organization but could not catch, in the context of knowledge acquisition Shi, 2010: 12; Isa, Abdullah, Hamzah, ArsHad, 2008: 105, Bratianu, 2011: 6, Al-Busaidi, 2011: 402, Sun, 2010: 508). In this stage required knowledge generally have information characteristics. Companies capture required information in two ways; from inside and outside of the organization (Wiig, 1999: 2). First they capture knowledge exists in the organization by knowledge workers. Second they outsource or purchase required information exists outside of the organization (Bergeron, 2003: 95). Companies capture needed information by means of their customers, suppliers, competitors, relation with strategic alliances (Fink and Ploder, 2011: 52), books, software, academic publications, research reports and video conferences (Bratianu, 2011: 6). Besides companies utilize structured interviews, talk loud analysis, protocols, questionnaires, observations and simulations to capture needed information’s (Dalkir, 2005: 81). Bouncken (2002) states that in hospitality enterprises knowledge acquisition concentrates on external knowledge retrieval from customers, external experts, tourist offices etc. and often enhance the assimilation of previously unnoticed | 511


information. Author also emphasize that knowledge develops (capture) via service research, via service practice and via distribution and cooperation of knowledge among employees in hotels. Knowledge Creation: Knowledge creation is getting new and useful knowledge from the information that captured from the sources exist inside and outside of the organization. Nonaka and Takeuchi (1995: 59-73) address knowledge creation as socialization, externalization, combination and internalization process. According to them, implicit/tacit knowledge creation is a spiral process, starting at the individual level and moving up through expanding communities of interaction that crosses sectional, departmental, divisional and organizational boundaries (Nonaka and Takeuchi, 1995: 72). On the other hand, to use that knowledge usefully which is created in the organization, knowledge should be shared both before and after knowledge creation processes at individual and organizational level. Knowledge Sharing: Knowledge sharing can be described as transferring or disseminating of knowledge from a worker, group or organization to another (Lee, 2001: 324). Also, it can be described as interaction between explicit and implicit knowledge (Lee, Gillespie, Mann and Wearing: 2010: 474). In a broader perspective, knowledge sharing is the activities that involve gathering, absorbing, and/or transferring product and/or service information between organizations and customers, alliance partners, and/or employees (Chen and Barnes, 2006). To provide effective knowledge sharing in organizations; motivation and encouragement systems and an open organizational structure should be designed to support knowledge flow, technological support should be provided such as intranet, internet etc. (Cook and Cook, 2004: 314; Riege, 2005: 29), physical areas that enables informal communication such as talking rooms, water cooler/teapot and cafeteria areas should be designed and finally some activities that enable face to face communication should be organized such as panels (Davenport and Prusak, 2000: 89-95). Contrary to this fact, high personnel turnover and rotating staff limits knowledge sharing in hotels. Thus, hotels’ management should concentrate on transforming tacit knowledge to explicit knowledge. Knowledge Storage and Documentation: This process basically aims to make organizational knowledge accessible for everyone. Knowledge storage and documentation process identifies which knowledge will store in the organization (Hattendorf, 2002: 65), and includes codification and storing of knowledge captured from organization members and external sources (Alavi and Leidner, 1999). Knowledge Utilization: This process basically consists of carrying out activities to ensure that the knowledge is applied productively for its benefits (Fink and Ploder, 2011: 52). Organizational knowledge utilization can be categorized as knowledge using at micro and macro level. Management of knowledge in micro level is prior and essential in organizational knowledge 512|


utilization to increase organizational performance and profitability. On the other hand it’s intended to use of explicit knowledge disclosed by the organization to its environment as a part of marketing strategy or as a survival tool in a competitive market (Reychav and Weisberg, 2006: 225). In knowledge utilization processes, companies gain competitive advantage and create value by combining knowledge with products and services, applying it within new projects (Kasvi, Vartiainen and Hailikari, 2003: 572), and by using this knowledge in decision making, policy making, problem solving and developing new products to meet human/enterprise needs (Salo, 2009; Al-Busaidi, 2011: 403). Methodology In this descriptive study, it’s primarily aimed to determine whether thermal hotels use KM and the using degree of KM processes in the scope of strategic management. Other basic objective of the study is to assign, if KM processes in thermal hotels differentiate according to some demographic variables of middle and senior hotel managers. It’s also assumed that results of the survey will contribute to related literature and hotel managers or owners who wants to apply KM in his/her hotel in the context of strategic management to gain competitive advantage especially in the long term. A quantitative research method was preferred to collect required data in this study. Thus, questionnaire method which is one of the most preferred one among quantitative research methods was used. Survey questionnaire form basically consists two main sections. Some close-ended questions such as gender, age, department, and years of experience in the hotel were asked to hotel managers in the first section. 5 likert-scales consisting of 32 statements about KM processes took part in the second section of the questionnaire form. With these statements, it’s aimed to gather required data related to acquisition, creation, sharing, storage and documentation, and utilization of knowledge. KM process statements were adapted from Shi’s (2010) PhD dissertation on KM. Survey questionnaire form applied in seven 5 star hotels from 10 February to 25 March located in Afyonkarahisar in Turkey. And, 67 middle and senior managers were asked to fulfil questionnaire form vis-à-vis. Then, gathered data entered to statistical package programme PASW 18 and descriptive and discriminant tests were performed in order to get necessary results. Data Analyses For the purpose of the study, reliability analyses were performed in order to assign questionnaire data’s validity for the descriptive and discriminant analyses, at beginning of the data analyse phase. As shown in Table 1 Cronbach Alpha defining reliability coefficient was found 0.955 for the 32 statements of the questionnaire. Further, Cronbach Alpha coefficient was found over 0.70 in each | 513


sub-factors of the KM scale. Questionnaire scales where the Cronbach Alpha coefficient over 0.70 is often accepted as reliable in social sciences (Lehman et al. 2005). Thus, survey data collected via questionnaire in this study was accepted reliable for the descriptive and discriminant analyses. Table 10: Reliability Test Results

KM scale (32 statements) KM scale sub-factors a) Knowledge acquisition b) Knowledge creation c) Knowledge sharing d) Knowledge storage and documentation e) Knowledge utilization

Cronbach Alpha

n

0.955

32

0.853 0.834 0.702 0.907 0.871

6 5 7 7 7

Just after the reliability analyse, some demographic variables of middle and senior managers of the thermal hotels were analysed by descriptive analyses. As shown in table 2, a great majority of the participations’ are men (65.7%) and 39 participants are married (58.2%) while 41.8% of the population is single. More than half of 67 participations with 56.7% namely 38 managers are in 25 to 34 year of age group. Other major group in age distribution is 35 to 44 year of age group among all. According to results in Table 2, 34.3% participations have bachelor degree, while 21 participations (31.3%) have graduated from high school, and 15 participations (22.4) have associate’s degree. So, it can be said that a great majority of the middle and senior managers of thermal hotels in Afyonkarahisar are well educated with the 57,7%. Thus, we assumed most of the middle and senior thermal hotel managers are acknowledge about KM and they know how to use knowledge in accordance with a strategic perspective especially to gain competitive advantage in long term. Table 11: Results of Some Demographic Variables of the Participants Variable Gender

Age Group Marital 514|

Frequency (n)

Percentage (%)

Cumulative Percentage (%)

Male Female

44 23

65.7 34.3

65.7 100

24 and younger ages 25 to 34 ages 35 to 44 ages 45 to 54 ages Married

7 38 19 3 39

10.4 56.7 28.4 4.5 58.2

10.4 67.1 95.5 100 58.2

Sub-dimension


Status

Education

Single

28

41.8

100

Primary education High school graduated Associate's degree Bachelor degree Master/PhD degree

6 21 15 23 2

9.0 31.3 22.4 34.3 3.0

9.0 40.3 62.7 97.0 100

17 12 7 7 6 5 3 3 3 2 1 1 14

25.4 17.9 10.4 10.4 9.0 7.5 4.5 4.5 4.5 3.0 1.5 1.5 20,9

25.4 43.3 53.7 64.1 73.1 80.6 85.1 89.6 94.1 97.1 98.6 100 20.9

1-5 years 6-10 years

35 12

52,2 17,9

73.1 91.0

11 years and above Missing Value

5 1

7,5 1,5

98.5 100

67

100 %

Food and Beverage Front Office Housekeeping Spa-Wellness Accounting Sales Marketing Department Senior Management Public Relations Animation Technique Services Human Resources Missing Value Less than 1 year Year of experience in hotel

Total (N)

The descriptive analyse results indicates that 25.4% of participants are working at food and beverage departments of the thermal hotels. Also, another major group consists of front office department chiefs/managers with the percentage of 17.9. Departments of the participants ranked after front office ranked as Housekeeping (10.4%), Spa-Wellness (10.4%), Accounting (9.0%), Sales and Marketing (7.5%), Senior Management (4.5%), Public Relations (4.5%), Animation (4.5%), and others (4.5%) including technique service and human resources. Thus, KM utilization process results collected in the study are largely depend on F&B, Front Office, Housekeeping and Spa-Wellness department chiefs/managers’ answers. At last, results show that a great majority of the participants have been working in the hotel 1 to 5 years (52,2%, n: 35). Percentage of middle and senior managers working for the less than one year is 20.9 with 14 participants. Using Degree of KM processes | 515


In this section, using degree of KM processes in thermal hotels evaluated based on participants’ views with descriptive analyses. Mean, standard deviation and percentages methods were used to determine participants’ response rates to the statements. Firstly, participants’ views about knowledge acquisition process are presented in Table 3. Due to the all results of the statements above 3.00 (No idea) mean level, it can be assumed that thermal hotels realize all required transactions in the scope of knowledge acquisition process. Table 12: Descriptive Analyses Results of Knowledge Acquisition Process x̅ Our hotel frequently seeks new knowledge outside the organization. Our staff regularly gets new knowledge from external sources. Our hotel systematically analyses customer needs. Our hotel regularly captures knowledge of our competitors. Our hotel captures knowledge obtained from public research institutions including universities and etc. Our hotel regularly captures knowledge obtained from industrial associations, competitors, clients and suppliers..

4.15 3.88 4.21 4.04

s.s 0.94 9 0.93 0 0.94 6 0.97 6

1

2

%

%

1.5 --3.0 1.5

3

4

5

6

% % % % 10. 38. 41. 6.0 1.5 4 8 8 26. 35. 29. ---7.5 9 8 9 40. 44. 3.0 9.0 ---3 8 22. 31. 40. 4.5 ---4 3 3

3.62

1.06 4

1.5

13. 31. 26. 25. 1.5 4 3 9 4

4.19

0.82 1

1.5

1.5

11. 46. 38. ---9 3 8

x̅ : Mean, s.s: Standard Deviation, 1: Strongly Disagree, 2: Disagree, 3: No idea, 4: Agree, 5: Strongly Agree, 6: No answer (Missing value). In depth, according to Table 3 results indicates participants views about knowledge acquisition, customer needs systematically analyze (x̅ : 4.21 and s.s: 0.946) by thermal hotels at most. Also, capturing knowledge from industrial associations, competitors, clients and suppliers (x̅ : 4.19 and s.s: 0.821) is the second highest knowledge acquisition process among other acquisition activities. This activity followed by seeking new knowledge outside the organization (x̅ : 4.15 and s.s: 0.949). On the other hand, capturing knowledge obtained from public research institutions including universities and etc. is the least realized process relatively to others.

516|


In Table 4, participants’ views about knowledge creation process presented by using same descriptive methods mentioned before. In connection with the results it can be said that thermal hotels respondent to survey are effectively creates new knowledge by using different ways. Among them coming up with new ideas about hotel products and services (x̅ : 4.26 and s.s: 0.966) is the most applied method in knowledge creation process.

Table 13: Descriptive Analyses Results of Knowledge Creation Process x̅ Our hotel frequently comes up with new ideas about our products and/or services. Our hotel frequently comes up with new ideas about our working methods and processes. If a traditional method is not effective anymore, our hotel develops a new method. Our hotel develops new ideas and innovations in collaboration between different departments. Our hotel develops new ideas and innovations in collaboration with external partners such as suppliers and clients.

4.2 6

s.s 0.96 6

4.12 0.976

1

2

3

4

5

6

%

%

%

%

%

%

3.0 3.0 9.0

---

9.0

34. 49. 1.5 3 3

13. 31. 43. 3.0 4 3 3

3.94 1.127 4.5

10. 41. 35. 7.5 --4 8 8

3.82 1.066 4.5

7.5

16. 43. 26. 1.5 4 3 9

4.01 0.913 1.5

4.5

17. 43. 32. 9 3 8

---

x̅ : Mean, s.s: Standard Deviation, 1: Strongly Disagree, 2: Disagree, 3: No idea, 4: Agree, 5: Strongly Agree, 6: No answer (Missing value). Coming up with new ideas about our working methods and processes (x̅ : 4.12 and s.s: 0.976) is the second most applied transaction. Thus, we can assume that thermal hotels operating in Afyonkarahisar are considered developing new ideas important. Also, as seen in Table 4, thermal hotels develop new methods when a classic method is not effective (x̅ : 3.94 and s.s: 1.127) anymore and also thermal hotels develops new ideas in collaboration between departments (x̅ : | 517


3.82 and s.s: 1.066). But these two methods are relatively less applied among other in knowledge creation process. In the following stage of descriptive analyses related to KM processes, participants’ views about knowledge sharing process are presented in Table 5. Regarding to the results thermal hotels share the knowledge effectively, except for distributing knowledge in informal ways. Table 14: Descriptive Analyses Results of Knowledge Sharing Process x̅ In our hotel information and knowledge are actively shared within the departments. Different departments actively share information and knowledge among each other. Employees and managers exchange a lot of information and knowledge Our hotel shares a lot of knowledge and information with strategic partners. Our hotel shares knowledge with competitors (through industrial associations, directly, etc.). In our hotel, previously made solutions and documents are easily available. In our hotel, much knowledge is distributed in informal ways (in the corridors, break rooms, etc.).

s.s

1

2

3

4

5

6

%

%

%

%

%

%

3,94

1,14 9

3,88

1,12 4,5 9,0 14,9 37,3 34,3 --2

3,88

1,03 8

3,0

7,5 19,4 38,8 31,3 ---

3,82

,893

1,5

1,5 35,8 34,3 25,4 1,5

3,61

,936

3,0

3,0 40,3 31,3 17,9 4,5

4,03

1,02 3

4,5

1,5 16,4 37,3 35,8 4,5

2,42

1,41 6

37, 22,4 11,9 17,9 10,4 --3

4,5 9,0

13, 32, 38, 1,5 4 8 8

x̅ : Mean, s.s: Standard Deviation, 1: Strongly Disagree, 2: Disagree, 3: No idea, 4: Agree, 5: Strongly Agree, 6: No answer (Missing value). With respect to the results in Table 5, availability of previous solutions and documents (x̅ : 4.03 and s.s: 1.023) plays the most important part of knowledge sharing in thermal hotels. Sharing knowledge effectively within departments is the second most important way of knowledge sharing experiences (x̅ : 3.94 and s.s: 1.149) in respondent hotels. As mentioned before, the least applied 518|


way to share knowledge in thermal hotels among others is distribution of necessary knowledge in informal ways (x̅ : 2.42 and s.s: 1.416). This fact reflects two close-related and important situations in thermal hotels. First, thermal hotels generally use formal ways in communication and sharing knowledge. Second, by preferring formal ways especially in communication, thermal hotels play an inhibiting role in sharing knowledge. In Table 6, descriptive analyze results related to knowledge storage and documentation process presented. From the results, it can be seen that storage and documentation of knowledge takes an important phase for KM in thermal hotels. Thus, all statements regarding to storage and documentation have a mean level upper than 3.90. Regarding to each statement scores in Table 6, informing hotel staff about changes in procedures, instructions and regulations (x̅ : 4.09 and s.s: 1.011) is the most applied method in knowledge storage and documentation. This method followed by refining, organizing and storing of collected data (x̅ : 4.05 and s.s: 0.999), and updating information sources, manuals and databases (x̅ : 3.99 and s.s: 0.929). Also, regarding to the results thermal hotels give an importance to possess core business processes and services (x̅ : 3.98 and s.s: 1.088), documenting in writing (x̅ : 3.98 and s.s: 0.969) and documenting of important experiences (x̅ : 3.96 and s.s: 0.991). Table 15: Descriptive Analyses Results of Knowledge Storage and Documentation Process x̅ Our hotel does a lot of work to refine, organize and store the knowledge collected. The information sources, manuals and databases at our hotel's disposal are up-to-date. Hotel staff is systematically informed of changes in procedures, instructions and regulations. Our hotel has much information in the form of documents, databases. Our hotel possesses many core business processes and services. We are used to documenting in writing the things that are learnt in

s.s

1

2

3

4

5

6

%

%

%

%

%

%

1.5 7.5

14. 35. 38. 1.5 9 8 8

4.05

.999

3.99

.929 1.5 4.5 20.9 40.3 32.8

4.09

1.01 1

1.5 10.4 6.0 41.8 40.3

3.94

.919

1.5

6.0 17.9 46.3 28.4

3.98

.969

---

10. 14.9 38.8 34.3 1.5 4

3.98

1.08 8

3.0 10.4 9.0 38.8 37.3 1.5

| 519


practice. We make sure that the most important experiences gained are documented.

3.96

.991

1.5

6.0 23.9 32.8 35.8

x̅ : Mean, s.s: Standard Deviation, 1: Strongly Disagree, 2: Disagree, 3: No idea, 4: Agree, 5: Strongly Agree, 6: No answer (Missing value). At final stage of descriptive analyses about KM process, knowledge utilization degree in thermal hotels evaluated by participants’ views. The results shown in Table 7 reflect that thermal hotel use knowledge in supplying rapidly changing customer needs (x̅ : 4.32 and s.s: 0.880). When we consider the achievement of a hotel establishment basically depends on satisfying customer, using knowledge through providing better services becomes more and more important. Thus, we can clearly state that thermal hotels in Afyonkarahisar are aware of the importance of KM. Table 16: Descriptive Analyses Results of Knowledge Utilization Process x̅ Our hotel uses existing know-how in a creative manner for new applications. Our hotel is able to use the employees' knowledge in various business activities. Our hotel responds to changes in our customers' needs. Our hotel achieved major process improvements as a result of analyzing and applying knowledge from external parties. Different departments of our hotel frequently apply knowledge that was shared by other departments. Many new ideas that our hotel develops are brought into reality. Our hotel’s databases and documented knowledge are frequently used by employees. 520|

s.s

1

2

3

4

5

6

%

%

%

%

%

%

1.5

6. 0

22. 37. 31. 1.5 4 3 3

3.92

.966

3.72

1.04 3.0 2

13.4 13.4 49.3 20.9 ---

4.32

.880 1.5

3. 0

9.0 34.3 50.7 1.5

3.96

1. 134

4.5

7. 5

16.4 31.3 40.3 ---

3.75

1.14 6.0 6

7. 5

22.4 34.3 29.9 ---

3.70

1.11 6.0 5

9. 0

17.9 43.3 23.9 ---

3.70

1.24 7.5 3

10. 19.4 29.9 32.8 --4


x̅ : Mean, s.s: Standard Deviation, 1: Strongly Disagree, 2: Disagree, 3: No idea, 4: Agree, 5: Strongly Agree, 6: No answer (Missing value). Regarding Table 7, achieving major process developments by gathering and analyzing knowledge from external parties (x̅ : 3.96 and s.s: 1.134) is the second highest way in knowledge utilization. Other important using areas of knowledge in thermal hotels are developing new applications via know-how (x̅ : 3.92 and s.s: 0.966), application of shared knowledge in different departments (x̅ : 3.75 and s.s: 1.146), using employees’ knowledge in business activities (x̅ : 3.72 and s.s: 1.042). If we summarize the descriptive results about KM, thermal hotels operating in Afyonkarahisar give an importance to KM, and as a result of this point of view KM processes highly applying in these hotels. When we consider sub-processes in KM processes, knowledge creation (x̅ : 4.03) is the most applied sub-process among others. Knowledge acquisition (x̅ : 4.02) and knowledge storage and documentation (x̅ : 4.00), knowledge using (x̅ : 3.85) and knowledge sharing (x̅ : 3.65) subprocesses follows knowledge creation sub-process. Thus, it can be assumed that in thermal hotels, KM is an essential part of providing service quality, gaining competitive advantage in the scope of strategic management. Discriminant Analyses of KM Processes At this last phase of data analyses, to determine whether KM processes differentiate regarding to thermal hotels and some demographic variables of participants. In this context, firstly a KruskalWallis H test performed in order to determine whether KM process differs according to respondent hotels contributed survey. Kruskal-Wallis H test results presented in Table 8 indicates that KM processes differ in the context of thermal hotels (p