Business and Management Practices in Greece: A Comparative Context

338 Pages·2011·1.63 MB·English

by  Rea Prouska, Maria Kapsali (eds.)

Business and Management Practices in Greece
Business and Management
Practices in Greece
A Comparative Context
Edited by
Rea Prouska
and
Maria Kapsali
Palgrave
macmillan
Selection and editorial matter © Rea Prouska and Maria Kapsali 2011
Individual chapters © contributors 2011
Softcover reprint of the hardcover 1st edition 2011 978-0-230-24585-3
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First published 2011 by
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ISBN 978-1-349-31907-7 ISBN 978-0-230-30653-0 (eBook)
DOI 10.1057/9780230306530
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10 9 8 7 6 5 4 3 2 1
20 19 18 17 16 15 14 13 12 11
Contents
List of Tables and Figures x
List of Abbreviations xii
Acknowledgements xvi
Notes on the Contributors xvii
Introduction xxi
PART I THE GREEK BUSINESS SYSTEM
1 Politics 3
Political and Economic Developments through a
Historical Perspective
Maria Kapsali and Joseph Butler
Overview 3
Modern Greece from 1830 to 1900 5
Modern Greece from 1900 to 1950 8
Modern Greece between 1950 and 2010 and the roots
of the debt crisis 13
Summary 21
2 Economics 26
Productivity Performance, Determinants and
Future Prospects
Ioannis Bournakis
Overview 26
A conceptual definition of productivity 27
The Greek economy 1995–2005 29
The de-industrialization process in Greece and
manufacturing productivity 30
Does Greece’s productivity equal levels in
the rest of the EU? 34
The sources of labour productivity growth 37
An econometric model for the sources of
labour productivity 40
Technology catch-up and productivity growth 42
Summary 44
Appendix 2.1 47
v
vi Contents
3 Finance 49
Banking and Investment
Athanasios Kouloridas
Overview 49
The economic outlook and the financial sector 49
Financial regulation: the banking sector 53
Financial regulation: investment services 59
Prospects – the way forward 62
4 Development 66
The Role of the Public Sector and Firms in Economic
Development
Kyriakos Hatzaras
Overview 66
The economic role of the state in the periphery
of Europe 69
The empirical reality 76
Regional programming implementation in
Greece, 1994–2002 78
National programming implementation in
Greece, 2000–06 84
Summary 88
5 Innovation 96
The National Innovation System
Maria Kapsali
The Triple Helix model – a tool for analysis of
national innovation systems 96
The structure and performance of the Greek
National Innovation System 99
Innovation policy and politics within the system 102
Summary 107
6 Law 112
Company Law, Tax and Employment Law
Eirini Kokkori, Ageliki Katsiyianni and Nektarios Polychroniou
Overview 112
Company law 113
Tax law 122
Employment law 128
Summary 136
Contents vii
PART II MANAGEMENT PRACTICES IN GREEK FIRMS
7 Strategic Management 141
Efthimios Poulis
Overview 141
Micro-external environment 142
Internal environment 144
Competitive strategies 145
Corporate strategies 150
Summary 152
8 International Business 155
Konstantinos Poulis
Overview 155
International business in Greece: the outward
activity of Greek firms 157
Structural weaknesses of the Greek economy
and their effect on IB 158
The geographical and product scope of Greek firms abroad 159
Greek multinationals 161
Doing business in Greece – the foreign multinational
perspective 165
Summary 167
9 Human Resource Management 170
Rea Prouska
Overview 170
Historical overview 171
Supply and demand in the Greek labour market 172
The HR department and HR managers 173
HR practices 174
Outsourcing HR activities 179
e-HR 180
Critical HRM issues 181
Summary 182
10 Marketing 186
Panagiotis Ballas
Overview 186
The marketing environment in Greece 186
Challenges faced by marketing agencies in Greece 191
E-marketing and mobile marketing 195
Corporate Social Responsibility 198
Summary 200
viii Contents
11 Sales 203
Ioannis Gedeon
Overview 203
The sales force 204
Customer relationship management 206
E-advertising and e-sales 207
Comparison of sales practices in a local and a
multinational firm 210
Summary 212
12 Total Quality Management 214
Alexandros Psychogios
Overview 214
The nature of the Greek management system 215
The quality movement in Greece 218
Aspects of TQM in the private sector 219
Aspects of TQM in the public sector 221
Driving TQM application: barriers and facilitators 222
Summary 231
13 Accounting and Auditing Practices 236
Constantinos Caramanis and Emmanouil Dedoulis
Overview 236
A brief account of the politico-economic history
of modern Greece 237
Origins and development of accounting and
auditing up to the 1970s: a conservative,
state-oriented mentality 238
The ‘Europeanization’ era: 1980 to date 241
Accounting and auditing following the adoption
of IFRSs: the view of financial executives and auditors 247
Summary 250
PART III CONCLUSION: SUMMARY, COMPARISON AND
SUGGESTIONS
14 The Business System and Management Practices in Greece 259
Rea Prouska and Maria Kapsali
Overview 259
Systemic factors in the Greek business system 262
Management practices in Greek firms 265
The bigger picture 269
Contents ix
15 Systems and Practices: Peripheral Countries Compared
with the UK 272
Rea Prouska and Maria Kapsali
Overview 272
State, institutions and infrastructures in the peripheral
and UK business systems 272
A comparison of finance, market, firm and labour figures
in the peripheral countries’ and UK business systems 283
Challenges faced by SMEs in the EU 287
Management practices in the peripheral countries
and the UK 290
Summary 297
16 S uggestion for Further Research on the Business
System and Practices in Greece 300
Rea Prouska and Maria Kapsali
Strategic management 300
International business 301
Human Resource Management 301
Total Quality Management 302
Marketing and sales 302
Accounting and auditing 303
Comparative research 303
Index 305
List of Tables and Figures
Tables
2.1 E mployment and output shares of various sectors
1970 and 2005 30
2.2 A verage labour productivity growth 1970–2005 33
2.3 R elative labour productivity of Greece and Germany
1970–2005 35
2.4 R egression results for the convergence hypothesis
in Greece 37
2.5 D eterminants of labour productivity 1987–99 41
2.6 D eterminants of labour productivity 1987–99 with
higher-order lags of exports and imports 43
2.7 T echnology catch-up and labour productivity growth 45
4.1 ROP Central Macedonia SAEP expenditure 80
4.2 ROP Central Macedonia SANA expenditure 81
4.3 ROP Central Macedonia SAE expenditure 82
4.4 ROP Epirus SANA expenditure 83
4.5 ROP Epirus SAE expenditure 83
4.6 I nformation Society programme beneficiaries,
December 2005 85
4.7 CSFIII Competitiveness programme beneficiaries 87
6.1 Legal form of Greek commercial enterprises 113
10.1 Top advertising revenue earners 2009 192
12.1 E ffects of ‘soft’ and ‘hard’ aspects of TQM
on the nature of managers’ work 225
12.2 E ffects of ‘soft’ and ‘hard’ aspects of TQM
on organizational performance and process 228
13.1 The Greek audit market by numbers in 2009 246
15.1 M ain indicators of the non-financial business
economy 2006 284
x