challenges of enterpreneurship, management and corporate finance after

531 Pages·2016·5.77 MB·English

SCfSD ’16 Book of Proceedings Vol. 2

UNIVERSITETI NDËRKOMBËTAR I STRUGËS

Book of Proceedings
International University of Struga

Volume 2

ISBN 978-608-4573-22-7

DOI 10.21520/C.3-2-2016

Nr.3 / Korrik, 2016
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SCfSD ’16 Book of Proceedings Vol. 2

ORGANIZING COMMITTEE:
Aleksander Biberaj - Rector of International University of Struga
Anastas Angjeli - Rector of Mediterranean university of Albania
Mevlud Dudić- Rector of International University of Novi Pazar
Hilmi Ibar - Trakya University
Sabahudin Komoni- University of Pristina
Shyqeri Kabashi- Business University College
Ligor Nikolla- University of Tirana
Vehbi Ramaj- International University of Struga
COORDINATORS:
Armen Kadriu- International University of Struga
Guximtar Rushani- International University of Struga
Biljana Ciglovska – International University of Struga
Senada Laçka– International University of Struga
Florida Veljanoska – International University of Struga
Jeton Shaqiri – International University of Struga
Blerti Dauti – International University of Struga
Majlinda Axhiu – International University of Struga
Nazmije Merko – International University of Struga

CONFERENCE SECRETARIAT
Marinela Shkurta– International University of Struga
Abidin Trena– International University of Struga
E-mail: [email protected]

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SCfSD ’16 Book of Proceedings Vol. 2

THE EFFECT OF CULTURE ON FIRM’S CSR ENGAGEMENT .................................................................. 6
INVESTMENTS IN THE REPUBLIC OF KOSOVO ...................................................................................... 19
HOW LEADERSHIP CONFLICTUAL BEHAVIOR AFFECTS PARTNERSHIP FROM THE
PROSPECTIVE OF DECISION MAKING ...................................................................................................... 35
ENVITONMENTAL MANAGEMENT AND STANDARDS FOR STORAGE OF MINERALS IN KOSOVO
............................................................................................................................................................................ 42
NJË VËSHTRIM TEORIK I TRANZICIONIT SI KONKURENCË INSTITUCIONALE ............................ 51
KONCESIONET DHE KONTRATAT KONCESIONARE NË SISTEMIN JURIDIK TË REPUBLIKËN E
KOSOVËS .......................................................................................................................................................... 59
MORTGAGE LOAN CONSUMERS AND THE PROTECTION FRAMEWORK IN ALBANIA ................. 71
VËSHTRIM PËR MËNYRAT E SIGURIMIT TË PASURISË NGA VLERA E VOGËL NË VLERË MË TË
MADHE .............................................................................................................................................................. 82
AGRCULTURAL TRADE REGULATION IN THE INTERNATIONAL TRADING SYSTEM ................... 90
INVESTIMET E HUAJA DIREKTE GJATË KRIZËS FINANCIARE GLOBALE .................................... 103
MENXHIMI I PËRFORMANCËS NË NVM-TË KOSOVARE ..................................................................... 116
STARTING A BUSINESS: COMPARATIVE ANALYSIS BETWEEN THE REPUBLIC OF ALBANIA AND THE REPUBLIC OF
ROMANIA .......................................................................................................................................................... 130
UDHËHEQJA, PERSONALITETI I UDHËHEQËSIT, VETITË DHE AFTËSITË E UDHËHEQËSIT POTENCIAË SI DHE
AUTORITETI I TIJ ................................................................................................................................................ 143
RREGULLAT DHE DISPOZITAT E BAZEL III NË PËRPUTHJE ME KREDITIMIN E NVM-VE NË
EUROZONË DHE NË VENDE TË TJERA .................................................................................................... 153
REFORMS, REGULATION AND COMPETITION IN THE ELECTRICITY PRODUCTION IN ALBANIA
.......................................................................................................................................................................... 166
ЕФЕКТИТЕ ОД ЦЕФТА-2006 ВРЗ ЕКОНОМИЈАТА НА РЕПУБЛИКА МАКЕДОНИЈА ................... 176
MARKETINGU NDËRKOMBËTAR I VERËRAVE NË KONTEKSTIN E MSA-SË NË MES TË KE-SË &
KOSOVËS ........................................................................................................................................................ 191
MANAGEMENT OF SATISFACTION AND CONSUMER BEHAVIOR IN COMMERCIAL BANKS IN
MUNICIPALITY OF VUSHTRRI .................................................................................................................. 205
DIVERSIFICATION OF FUNDING AS A SOLUTION TO FINANCIAL SUSTAINABILITY IN A NON-
FOR-PROFIT ORGANIZATION ................................................................................................................... 214
ЗГОЛЕМУВАЊЕ НА КАПАЦИТЕТИТЕ НА ПРЕТПРИЕМАЧИТЕ ВО ФУНКЦИЈА НА
ОСТВАРУВАЊЕ НА ПОГОЛЕМ РАСТ И РАЗВОЈ НА БИЗНИСОТ ..................................................... 220
SPECIFIKAT E SJELLJES SË KONSUMATORËVE NË TREGUN PËR KONSUM PERSONAL ........... 234
VENDIMARRJA NË NDËMARRJET AFARISTE ........................................................................................ 252
THE APPLICATION OF E-COMMERCE IN THE DEVELOPMENT OF TOURISM ENTERPRISES IN
STRUGA,OHRID AND BITOLA .................................................................................................................... 260
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SCfSD ’16 Book of Proceedings Vol. 2

FISCAL DECENTRALIZATION – PREFERENCE OR STAGNATION IN LOCAL SELF-GOVERNMENT
IN MACEDONIA ............................................................................................................................................. 270
NJOHJE ME MODELET E MBAJTJES SË REZERVAVE NË NDËRMARRJE DHE ZBATIM PRAKTIK
I TYRE ............................................................................................................................................................. 278
FORMAT E ORGANIZATËS AFARISTE NË KOSOVË DHE RREGULLAT E DETYRIMEVE
TATIMORE PËR SECILEN ORGANIZAT ................................................................................................... 284
SISTEMET E INFORMACIONIT NË MENAXHIMIN E NDËRMARRJEVE TELEKOMUNIKUESE ... 295
THE ROLE OF INTERNET MARKETING AND THE EFFECT ON ENTERPRISE DEVELOPMENT .. 308
THE IMPACT OF MARKETING IN DEVELOPING OF SMALL AND MEDIUM ENTERPISES OF
MARKET ECONOMY IN KOSOVO ............................................................................................................. 328
MODELET E MENAXHIMIT TË BURIMEVE NJERËZORE NË NDËRMARRJET PUBLIKE DHE
PRIVATE TË QYTETIT TË SKENDERAJT ................................................................................................. 344
THE NOTION OF CORPORATE SECURITY IN THE SCIENTIFIC LITERATURE ............................... 349
CHALLENGES OF ENTERPRENEURSHIP, MANAGEMENT AND CORPORATE FINANCE AFTER
THE GLOBAL FINANCIAL CRISIS FROM THE PERSPECTIVE OF POST-ECONOMIC CRISIS OF
1930 ................................................................................................................................................................... 362
MARKETINGU DHE ZHVILLIMI EKONOMIK NË NDËRRMARJET E VOGLA DHE TË MESME NË
KOSOVË .......................................................................................................................................................... 370
LIGJI I ZBATUESHËM MBI INSTITUTIN E TRASHËGIMISË REFERUAR RREGULLORES (EU) NR
650/2012 ............................................................................................................................................................ 381
PROVA E KUNDËRT NË PROCESIN PENAL ............................................................................................. 395
EUROPIAN INTEGRATION PROCESS AND THE JUDICIARY: THE ALBANIAN JUDGE ROLE ...... 408
TRAFIKIMI NJERËZOR DHE KRIMI I ORGANIZUAR ........................................................................... 415
KRIMI I ORGANIZUAR DHE TRAFIKIMI I PERSONAVE NË BALLKANIN PERËNDIMOR ............. 427
NEVOJA DHE PRITSHMËRITË PËR REFORMËN NË DREJTËSI NË SHQIPËRI ................................ 438
LIRIA DHE BARAZIA NË BALLKANIN PERËNDIMOR .......................................................................... 448
РАЗВОЈ НА ДЕЛОВНОТО ПРАВО ............................................................................................................. 458
REFORMAT NË PROCEDURËN PENALE NË REPUBLIKËN E MAQEDONISË DREJT
STANDARDEVE EVROPIANE ...................................................................................................................... 472
СЕМЕЈНОТО ПРАВО КАКО ДЕЛ ОД ПРАВНИОТ СИСТЕМ НА ЕДНА ДРЖАВА ........................... 486
TRAFIKIMI ME NJERËZ NË TERRITORIN E GJYKATËS THEMELORE TË MITROVICËS -
2010-2014 .......................................................................................................................................................... 502
TERRORIZMI, DISA PËRKUFIZIME, LLOJET DHE MASAT LIGJORE QË DUHEN MARRË PËR PARANDALIMIN DHE
LUFTËN NDAJ TIJ ................................................................................................................................................ 516

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SCfSD ’16 Book of Proceedings Vol. 2

ECONOMY

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THE EFFECT OF CULTURE ON FIRM’S CSR ENGAGEMENT
Rigersa KONOMI
Mediterranean University of Albania
E_mail: [email protected]
Sonila NIKOLLA
Mediterranean University of Albania
E_mail: [email protected]
ABSTRACT
This paper presents the relationship between the organizational culture and CSR. To test
the hypotheses, we employ regression with the sample firms collected from the top 1,500
companies of the MSCI’s Intangible Value Assessment (IVA) program, DJSI and Compustat
Global Vantage databases. Cultural dimensions are frequently found to have effects on CSR
when using different samples and measurements of CSR. This research suggests that all of
Hofstede’s four cultural dimensions can predict firm’s CSR activity. It explore antecedents of
CSR, most of them emphasize the impacts of formal institutions, such as law, on CSR and pay
little attention to informal institutions, such as culture. We contrast different views on how
political institutions can function on corporations’ tradeoff between shareholder rights and
stakeholder rights, which is the main underlying mechanism for them to influence CSR. Our
empirical evidence suggests that political institutions, democratic rules and constraints to
political executives are not preconditions for CSR and sustainability, and sometimes even hinder
CSR implementation. Our results are shown after controlling for, culture, firm-level financial
performance and constraints, and different indices of political institution.
Keywords: Corporate social responsibility, organizational culture, corporate sustainability.

INTRODUCTION
Growing social and environmental issues like global warming are the underlying factor of
growing importance of corporate social responsibility both in academic literature as well as in
business world.
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There are empirical evidence that corporate social responsibility can contribute to social
progress and stakeholder wealth. But what forces drive companies to behave as good citizens in
the society is still under debate.
This research poses some conceptual issues. One key issue is what we are actually
measuring. Various studies have attempted to model and measure CSR from only one
perspective, such as employee satisfaction, environmental protection (Konar & Cohen, 2001),
corporate philanthropy (Seifert, Morris, & Bartkus, 2004), and consumer satisfaction (Servaes &
Tamayo, 2013; Larkin, 2013). CSR is a multidimensional concept, as it captures various
stakeholders’ interests. In this sense, the most comprehensive concept of CSR is defined as and
measured by a firm’s engagement and compliance in environmental, social, and governance
(ESG) issues. It addresses concerns for the environment (such as climate change, hazardous
waste, nuclear energy, etc.), society (social diversity, human rights, consumer protection,
consumer consciousness, etc.), and corporate governance (including management/board
structures and representation, employee relations, executive compensation, anti-corruption
measures, etc). Friedman (1970), and most recently Chen, Hong and Shue (2012), have shown
that CSR is a activity that does not contribute to aggregate social welfare and sustainability. In
this paper, we quantify this CSR sustainability relationship by showing that comprehensive firm-
level CSR scores are significantly correlated with country-level sustainability ratings in many
dimensions. Some papers have studied the profit motives for CSR can explain why stakeholders
require that corporations engage in socially responsible behavior and thereby be willing to
sacrifice profit for a good cause. The most profitable are firms the most able are to afford the
expenses of adopting a CSR policy.
In answering our research question, we structure the rest of the paper as follows. In the
next section we briefly review key literature that has investigated and highlight those relate to
our research question, and develop our hypotheses building on these literatures. We then
introduce the methodology of this study, and then report the empirical results and finally we will
draw a conclusion based on our finding and sketch avenues for future research.

LITERATURE REVIEW
Many research on corporate social responsibility have shown that it is strongly influenced
by the cultural and socio-economic environments in which firms operate (Carroll, 1979, 1991;
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Matten & Moon, 2008). Studies in relate CSR practices to a country’s national business system ,
such as political institutions, market competition, and cultural orientation (Campbell, 2007;
Ioannou & Serafeim, 2012).
In particular, the research has considered CSR as a culturally embedded organizational behavior,
and empirically tested cultural influences on CSR using the renowned Hofstede cultural
dimensions as well as survey-based cultural data such as GLOBE’s national cultural dimensions
and the World Value Survey.
While these analyses have shown important differences between cultures in CSR
practices, they
also yield conflicting findings. Cultural dimensions are found to have effects on CSR when using
different samples and measurements of CSR. For example, power distance an important
Hofstede cultural dimension is found to have both negative ( Ioannou & Serafeim, 2012) and
positive (Wang, & Vitell, 2012) relations with CSR engagement. Theoretically, the findings in
the literature likely reflect the obscurity of the underlying mechanisms by which national cultural
variation affects CSR (Matten & Moon 2008).
Institutional theory has found that business organizations are embedded in broader
social structures, which attempt significant influence on their strategies and governance
(DiMaggio and Powell, 1983). National institutional contexts have been shown to shape the
cognition and motives of managers, shareholders, and other key stakeholders, which further
shapes the way corporations are governed and managed ( Jackson & Deeg, 2008). Drawing on
these insights, the global CSR literature suggests that the social responsibilities of corporations
reflect the historically determined institutions that shape durable and embedded national business
systems (Carroll, 1979, 1991; Matten & Moon, 2008). A common denominator across these
studies is that national cultures have an important effect on organizations’ CSR practices this
happen as cultures uniformly affect different aspects of organization behavior compared with
more context-specific regulations and rules. These empirical studies on cultural dimensions rely
on the renowned Hofstede cultural dimensions: power distance, individualism, masculinity vs.
femininity, uncertainty avoidance, and long-term orientation (Hofstede, 1980; Hofstede &
Hofstede, 2005).
Regarding Hofstede’s power distance dimension, Ringov & Zollo (2007), and Ioannou &
Serafeim (2012) find a negative relationship with CSR, which they attribute to business leaders’
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use of power for the pursuit of personal benefit, whereas Wang, & Vitell (2012) find a positive
relationship, which they attribute to societies’ unlikeliness to tolerate questionable environment-
related business practice due to already strict environmental regulations. For individualism,
while Ioannou & Serafeim (2012) find a positive relationship,Waldman et al. (2006), Ho et al.
(2012) and Parboteeach et al. (2012) find a negative relationship, and Ringov & Zollo (2007)
find no significant relationship. For masculinity, a positive relation is found in Ho et al. (2012)
but the opposite is found in Ringov & Zollo (2007). While uncertainty avoidance is found to be a
positive predictor of CSR in Ho et al. (2012) but a negative one in Parboteeah et al. (2012).
Social and environmental issues like are the underlying factor of growing importance of
corporate social responsibility both in academic literature as well as in business world. CEOs all
over the world declared sustainability as an very important factor for their organizations success.
In the field of management, most of literature on CSR examines the influence of CSR on firms’
financial performance and vice versa, while there is only a problem of studies that focus on
exploring the antecedents of CSR. Among of these studies, the determinants of CSR can be
national-level factors such as laws, societal culture.
The current paper compares the findings of Ringov & Zollo, (2007) and Ho et al., (2011)
by employing a different methodology to shed some lights on the new directions of the impact of
national culture on firm’s CSR for the future studies. Whereas some papers have studied the
profit motives for CSR (Hong, Kubik and Scheinkman, 2011, Chen, Hong and Shue, 2012),
others concentrate on the question as to how delegated philanthropy and the stakeholder theory
(Tirole, 2001; Benabou. Stakeholders require that corporations engage in socially responsible
behavior and thereby be willing to sacrifice profit for a good cause. The most profitable firms are
most able to afford the expenses of adopting a CSR policy. While some evidence is found for
both the theoretical arguments underlying a causal relationship cannot be identified or is
statistically insignificant (Margolis, Elfenbein and Walsh, 2007). Some recent studies go one
step further to investigate the governance determinants of CSR (Barnea and Rubin (2010 and
Lopez-Ithurriage & Lopez de Foronda (2009)). However, these are mostly single-country
analyses and not really analyze the factors but rather another set of endogenous firm-level
variables. Ioannou & Serafeim (2012) investigated the association between national institutions
and the score on the CSR index. While opponents to CSR claim to be outside the shareholders
interest and that the only social responsibility a firm has is to maximize profit for its owners
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