Minimising radiofrequency radiation exposure of - RTU IEVF

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56TH INTERNATIONAL
RIGA TECHNICAL UNIVERSITY
CONFERENCE
“SCIENTIFIC CONFERENCE ON ECONOMICS
AND ENTREPRENEURSHIP SCEE’2015”
PROCEEDINGS
RIGA – 2015
Editor-in-Chief
Prof. Remigijs Počs, Riga Technical University, Latvia
Managing Editor
Prof. Dr. Tatjana Tambovceva, Riga Technical University, Latvia
International Editorial Board
Prof. Elina Gaile-Sarkane, Riga Technical University, Latvia
Prof. Ineta Geipele, Riga Technical University, Latvia
Prof. Natalja Lace, Riga Technical University, Latvia
Prof., Dr. Inga Lapina, Riga Technical University, Latvia
Prof. Hana Loštakova, University of Pardubice, Czech Republic
Dr. David J.Pollard, Leeds Metropolian University, United Kingdom
Prof. Olha Prokopenko, Sumy State University, Ukraine
Prof. Tatjana Volkova, BA School of Business and Finance, Latvia
Technical Editor
Maksims Smirnovs, Riga Technical University, Latvia
ISBN: 978-9934-8275-3-2
ISSN: 2256-0866
Authors are responsible for the correctness of the publications.
All rights are reserved. No part of this publication may be reproduced, stored, transmitted or disseminated in
any form or by any means without prior written permission from Riga Technical University represented by
RTU Faculty of Engineering Economics and Management to whom all requests to reproduce copyright
material should be directed in writing.
© Riga Technical University, 2015
CONTENTS
SECTION
“National Economy and Entrepreneurship”
SUBSECTION
“Business Engineering, Economics, Finance and Management”
PROACTIVE PERSONNEL AND THE ABILITY OF DECISION-MAKING UNDER CONDITIONS OF
RISK
D. Aleksandrova, I. Voronova ......................................................................................................................... 12
NON-FINANCIAL ENTERPRISES IN KAZAKHSTAN: SCORING ASSESSMENT AND PREDICTION
OF THE INSOLVENCY RISK
S. Amangeldy, I. Voronova .............................................................................................................................. 14
RETURN ON SHAREHOLDERS’ EQUITY OF BALTIC PENSION FUND MANAGEMENT
COMPANIES
I. Arefjevs.......................................................................................................................................................... 16
OPPORTUNITIES FOR THE USE OF BUSINESS DATA ANALYSIS TECHNOLOGIES
S. Balina, R. Zuka, J. Krasts ............................................................................................................................ 18
TOURISM NETWORKS IN LATVIA: PURPOSES AND COVERAGE
K. Bērziņa ........................................................................................................................................................ 20
COMPETITIVENESS OF SMALL OPEN EUROPEAN ECONOMIES UNDER GLOBAL IMBALANCE
T. Boikova ......................................................................................................................................................... 22
THE RELEVANCE OF CROSS-BORDER CONTAGION RISK TRANSMISSION IN THE CENTRAL
AND EASTERN EUROPEAN COUNTRIES
V. Deltuvaitė .................................................................................................................................................... 24
THEORETICAL ASPECTS OF CROSS-BORDER CONTAGION RISK: RISK DEFINITION,
TRANSMISSION CHANNELS AND SYSTEMATIC EVENTS (SHOCKS)
V. Deltuvaitė .................................................................................................................................................... 28
MAIN PROBLEMS OF INCREASING THE LEVEL OF INNOVATION IN LATVIAN COMPANIES
A. Deniņš ......................................................................................................................................................... 33
AIRBALTIC CASE BASED ANALYSIS OF POTENTIAL FOR IMPROVING EMPLOYEE
ENGAGEMENT LEVELS IN LATVIA THROUGH GAMIFICATION
D. Ergle ............................................................................................................................................................ 35
THE IMPACT OF STAKEHOLDERS IN HUMAN RESOURCE TRAINING PROJECTS
I. Eriņa, E. Gaile-Sarkane ............................................................................................................................... 38
RESEARCH AND DEVELOPMENT EXPENDITURES AND ECONOMIC GROWTH IN EU: PANEL
DATA ANALYSIS
R. Freimane, S. Balina .................................................................................................................................... 44
THE DEVELOPMENT FEATURES OF STATE-OWNED ENTERPRISES: THE CASE OF LATVIA
D. Gasūne, A. Deniņš ...................................................................................................................................... 46
ORGANIZATIONAL INNOVATIONS IN CRISIS MANAGEMENT OF PROJECT-BASED
ENTERPRISES
E. Glodziński, S. Marciniak ............................................................................................................................. 48
TRENDS OF SOCIAL AND ECONOMIC DEVELOPMENT OF COUNTIES MUNICIPALITIES IN
KURZEME PLANNING REGION
S. Ivanova ........................................................................................................................................................ 50
THE ROLE OF MANAGEMENT OF SATELLITE TOWNS IN PROMOTING WELL-BEING FOR
CITIZENS: CASE OF LATVIA
I. Jēkabsone, B. Sloka ...................................................................................................................................... 52
ESTIMATION OF EU STATE’S INNOVATION ACTIVITY USING BENCHMARKING
V. Jurēnoks, V. Jansons ................................................................................................................................... 54
WHERE TO INVEST? A POST-CRISIS CASE OF LATVIA
J. Kuznecovs, A. Safonovs ............................................................................................................................... 56
FLEXIBILITY OF WORKING TIME AT THE ENTERPRISES OF BELARUS
N. Makouskaya ................................................................................................................................................ 60
CURRENT CHALLENGES OF LATVIAN ICT, GLOBAL BEST PRACTICES TO DRIVE
INNOVATION AND ICT DEVELOPMENT AND POTENTIAL RECOMMENDATION FOR LATVIAN
ICT MORE RAPID GROWTH BY UTILIZING INNOVATION AND R&D
S. Meijere, T. Tambovceva .............................................................................................................................. 63
THE TRIAD OF MANAGEMENT DECISIONS FOR A SMALL AND MEDIUM ENTERPRISE
M. Millers ........................................................................................................................................................ 65
FORECASTS OF THE BUSINESS CYCLE DYNAMICS AS A CORRECTIVE FACTOR WITHIN THE
CONTEXT OF INVESTMENT PORTFOLIO EFFICIENCY MAXIMISATION
J. Nazarova, I. Dovladbekova ......................................................................................................................... 67
THE DEVELOPMENT MANAGERS’ COMPETENCY IN EMPLOYMENT PEOPLE WITH
DISABILITY
Z. Oborenko, M. Živitere ................................................................................................................................. 69
DEVELOPMENT OF STATE OWNED ENTERPRISES OF TRANSPORT INDUSTRY IN LATVIA
M. Plūmiņš, D. Ščeulovs .................................................................................................................................. 71
APPLYING OF ANALYTIC HIERARCHY PROCESS FOR FIRE RISK INSURANCE PREMIUM
ASSESSMENT
J. Pushkina, V. Jansons, K. Didenko ............................................................................................................... 73
FINANCIAL MANAGEMENT AS A TOOL FOR ACHIEVING STABLE FIRM GROWTH
S. Saksonova, S. Savina ................................................................................................................................... 75
FINANCIAL SECURITY IN THE BALTIC STATES
N. Semjonova ................................................................................................................................................... 77
ECONOMIC INTEGRATION AS A MARKET FAILURE REMEDY: THE ISSUE OF
MONOPOLISATION
D. Skoruks, M. Šenfelde ................................................................................................................................... 79
ASSESSMENT OF OPERATIONAL RISK BASED ON COPULA APPROACH
D. Stepchenko, I. Voronova ............................................................................................................................. 81
MUNICIPAL WASTE REDUCTION OPPORTUNITIES IN GETLINI ECO LANDFILL
M. Stradere, K. Didenko, V. Jansons ............................................................................................................... 83
PROJECT RISK REGISTER ANALYSIS BASED ON THE PROJECT MANAGEMENT TERM “RISK”
DEFINITION THEORETICAL ANALYSIS
J. Uzulans ........................................................................................................................................................ 85
SUBSECTION
“Competitiveness of Latvian Enterprises in Foreign Markets (EKOSOC-LV 5.2.1)”
THE ROLE OF DIFFERENT SOURCES OF INFORMATION ON ATTITUDE TOWARDS GMO
I. Aleksejeva, B. Sloka, I. Kantāne ................................................................................................................... 88
THEORETICAL JUSTIFICATION OF THE MODEL OF EVALUATION OF RENEWABLE ENERGY
SOURCES INTEGRATION ON FOSSIL FUEL ENERGY SOURCES OPERATION EFFICIENCY
M. Balodis, R. Počs, V. Skribans, P. Ivanova .................................................................................................. 90
CHARACTERISATION OF COMPETITIVENESS FACTORS IN HEALTHCARE INDUSTRY IN
LATVIA
D. Behmane, A. Villerusa, U. Berkis , A. Kokareviča ..................................................................................... 92
TTIP IN HEALTHCARE INDUSTRIES: TRANSFORMATION OF INTERNAL INTO EXTERNAL
COMPETITIVENESS
U. Berķis, A. Villeruša, A. Kokarēviča, D. Behmane ...................................................................................... 94
ROLE OF SOCIAL PARTNERS FOR WORK-BASED LEARNING: RESULTS OF SURVEYS
I. Buligina, B. Sloka, I. Kantāne, A. Līce ......................................................................................................... 96
IDENTIFICATION OF THE MAIN CHALLENGES OF RAIL INFRASTRUCTURE
COMPETITIVENESS
J. Hudenko, R. Počs ......................................................................................................................................... 98
BALTIC STATES AIRPORT BRANDING: CONTENT ANALYSIS OF VISION STATEMENTS
K. Ijevleva, S. Paramonovs ............................................................................................................................ 100
CLIENT RELATIONSHIPS AND COMPETITIVENESS OF ADVERTISING AGENCY. THE CASE OF
LATVIAN ADVERTISING AGENCIES
L. Ozoliņa, E. Sumilo ..................................................................................................................................... 102
COMPETITIVENESS EVALUATION INDICATORS IN THE LATVIAN MACROECONOMIC MODEL
V. Ozoliņa, R. Počs ........................................................................................................................................ 104
GLOBAL COMPETITION: VISION FOR A2A TICKETING IN AVIATION INDUSTRY WITHIN RIGA
AIRPORT DEVELOPMENT CONTEXT
S. Paramonovs ............................................................................................................................................... 106
LATVIA’S TRANSIT CORRIDOR COMPETITIVENESS EVALUATION
P. Patlins ....................................................................................................................................................... 108
ROLE OF INTERNET MARKETING FOR EXPORT PROMOTION (RESULTS OF RECENT LATVIA'S
COMPANY SURVEY)
B. Sloka, I. Kantāne, R. Vidruska .................................................................................................................. 110
CRISIS IN RUSSIAN OUTBOUND TOURISM AND ITS IMPACT ON TOURISM IN LATVIA
A. van der Steina ............................................................................................................................................ 112
SUBSECTION
“Innovation and Quality Technologies”
DEVELOPMENT OF INNOVATION DRIVEN CULTURE AT HIGHER EDUCATION INSTITUTION:
ISPEHE PROJECT RESULTS
M. Dubickis, D. Ščeulovs, I. Lapiņa .............................................................................................................. 116
COMPANY EXPECTATIONS ABOUT THE RESULTS FROM THE INTELLECTUAL CAPITAL
INVESTMENTS: CASE OF LATVIA
O. Lentjushenkova ......................................................................................................................................... 118
WEB-BASED IDEA MANAGEMENT SYSTEMS: POTENTIAL APPLICATION FIELD AND THE
SITUATION IN LATVIA
E. Miķelsone, E.Lielā ..................................................................................................................................... 120
IMPACT OF THE FORM OF STATE GOVERNANCE ON QUALITY ASSURANCE
INFRASTRUCTURE
J. Miķelsons .................................................................................................................................................... 123
SUBSECTION
“International Business, Logistics, Customs and Taxes”
ECONOMIC FACTORS INFLUENCING ATTRACTIVENESS OF MARITIME EDUCATION IN
LATVIA
R. Gailitis ....................................................................................................................................................... 126
SOCIAL INSURANCE PROBLEMATIC ASPECTS FOR SELF-EMPLOYED PERSONS IN LATVIA
I. Leibus, M. Lazdina ...................................................................................................................................... 128
TAX IMPACT ON HOUSEHOLD INCOMES
M. Pavlova ..................................................................................................................................................... 130
SUBSECTION
“National Research Program EKOSOC-LV: ‹‹The Development of Innovation and
Entrepreneurship in Latvia in Compliance with the Smart Specialization Strategy›› &
‹‹Involvement of the Society in Social Innovation for Providing Sustainable
Development of Latvia››”
THE ANALYTIC HIERARCHY PROCESS AS A TOOL TO PROMOTE YOUTH EMPLOYMENT AND
SUSTAINABILITY IN LATVIA
L. Grinevica, B. Rivza, P. Rivža .................................................................................................................... 132
SUSTAINABLE INNOVATIONS IN THE PROMOTION OF HOME PRODUCED PRODUCTS IN THE
MARKET
M. Pelše, S. Zēverte-Rivža, Z. Rone ............................................................................................................... 133
THEORETICAL OLD-AGE PENSION BENEFITS AND REPLACEMENT RATES IN THE BALTIC
STATES: A RETROSPECTIVE SIMULATION
O. Rajevska .................................................................................................................................................... 135
DEVELOPMENT OF THE ENTREPRENEURIAL COMPETENCE IN LATVIA IN THE EU GOALS
CONTEXT
A. Šenberga .................................................................................................................................................... 137
INNOVATIVE METHODS OF TEACHING AND LEARNING FOR PROMOTING
ENTREPRENEURIAL COMPETENCES
A. Sorokina .................................................................................................................................................... 140
SUBSECTION
“Safety of Technogenic Environment”
MINIMISING RADIOFREQUENCY RADIATION EXPOSURE OF SMART PHONES AND TABLETS USING AN OFF-LINE READER INSTEAD OF WIRELESS BROWSING FOR MOBILE LEARNING
M. Ahonen, T. Koppel .................................................................................................................................... 144
ERGONOMICS IN BUSINESS – APPROACH FOR ORGANISATION EFFICIENCY IMPROVEMENT
H. Kalkis, Z. Roja, S. Babris, I. Rezepina ...................................................................................................... 146
MICROWAVE REFLECTION PROPERTIES OF BUILDING MATERIALS IN THE WORKING
ENVIRONMENT
T. Koppel, H. Haldre ..................................................................................................................................... 148
SHIELDING INBOUND MICROWAVE ELECTROMAGNETIC RADIATION
T. Koppel, H. Haldre ..................................................................................................................................... 151
INCREASING NATURAL DAYLIGHT LEVELS IN ATRIUM TYPE BUILDING
T. Koppel, P. Tint ......................................................................................................................................... 154
THE NEW OCCUPATIONAL ELECTROMAGNETIC FIELDS' DIRECTIVE 2013/35/EU COMPARED
TO THE EXISTING ESTONIAN NATIONAL LEGISLATION
T. Koppel, I. Vilcane ...................................................................................................................................... 156
IMPLEMENTATION OF PREVENTIVE MEASURES FOR THE FIRE PROTECTION
STRENGTHENING
J. Malahova, J. Ķiršs, J. Ieviņš, V. Urbāne ................................................................................................... 159
VOLUNTARY SAFETY MANAGEMENT SYSTEM IN MANUFACTURING INDUSTRY – TO WHAT
EXTENT DOES OHSAS 18001 CERTIFICATION HELP?
Õ. Paas, K. Reinhold, P. Tint ........................................................................................................................ 161
PROBLEMS AND SOLUTIONS OF AUTO LADDERS AND CARTOWERS USAGE FOR
FULFILLMENT OF STATE FIRE AND RESCUE SERVICE TASKS
A. Politika, J. Malahova, I.Vilcāne, V.Jemeļjanovs ...................................................................................... 163
DEVELOPMENT OF BUILDING CONSTRUCTION’S DEFORMATION CONTROL SYSTEM
A. Skudra, V. Garancis, D. Atstaja, A. Valdemars ........................................................................................ 165
NORMATIVE ACT REGULATION OF TRAINING FOR PERSONNEL CONNECTED WITH
OPERATION OF DANGEROUS MACHINERY AND ITS IMPROVEMENT
E. Upeniece, J. Bērziņš .................................................................................................................................. 167
DEVELOPMENT OF GUIDELINES FOR OPERATORS WORKING WITH DANGEROUS
MACHINERY PROFICIENCY ASSESSMENT OF ELIGIBILITY FOR THE JOB
E. Upeniece, J. Bērziņš ................................................................................................................................. 170
SECTION
“Scientific Problems of Engineering Economics of
Construction, Real Estate Management, Regions and
Territories Development”
SUBSECTION
“Peculiarities of Engineering Economics in Construction, Real Estate and Land
Management”
EUROPEAN STUDIES ON LAND VALUE CAPTURE OF “UNEARNED INCREMENTS”
A. Auziņš ........................................................................................................................................................ 174
MANAGEMENT OF ENVIRONMENTAL COSTS IN THE PROJECT: THE EXPERIENCE OF RUSSIA
AND MONGOLIA
N. Davaakhuu, E. Alnykina, I. Gengut .......................................................................................................... 176
THE DEVELOPMENT OF HOUSING SECTOR AND RESIDENTIAL REAL PROPERTY MARKET
AFTER ECONOMIC RECESSION IN LATVIA
S. Geipele, A. Auziņš ...................................................................................................................................... 177
ENERGY CONSERVATION PROGRAMS IN RUSSIA
Y.V. Gerasimenko .......................................................................................................................................... 180
THE CORRELATION BETWEEN CORROSION AND THE MARKET VALUE IN THE EVALUATION
PROCESS OF SPECIAL CONSTRUCTIONS ASSETS – PIPELINE TRANSPORTATION SYSTEMS
C. Gheorghe .................................................................................................................................................. 182
THE IMPACT OF SPECIAL ECONOMIC ZONES ON THE ECONOMIC SITUATION OF THE WIDER
REGION
I. Gulbis, S. Geipele ....................................................................................................................................... 184
LAND USE ANALYSIS IN LATVIA IN A CONTEXT OF THE SUSTAINABLE DEVELOPMENT
L. Kauškale, I. Geipele .................................................................................................................................. 186
THE ANALYSIS OF REAL ESTATE MARKET AND ECONOMIC FLUCTUATIONS IN LATVIA AND
ITS INFLUENCE ON REAL ESTATE ENTREPRENEURSHIP
L. Kauškale, I. Geipele .................................................................................................................................. 188
PROBLEMS OF IMPLEMENTATION OF INFORMATION TECHNOLOGY IN THE HOUSING
SECTOR IN RUSSIA
S.A. Kirsanov, E.N. Safonov .......................................................................................................................... 190
IMPLEMENTATION OF ENERGY-SAVING INNOVATIONS AS THE MAIN DIRECTION OF
DEVELOPMENT OF THE BUILDING MATERIALS INDUSTRY
O.V. Kuzina ................................................................................................................................................... 193
IMPROVING THE ASSESSMENT OF THE ENVIRONMENTAL INDICATORS OF INVESTMENT
PROJECTS BASED ON THE PUBLIC-PRIVATE PARTNERSHIP
T.N. Malakhova, K.P. Kolotyrin, V. Yakunin ................................................................................................ 195
DEVELOPMENT OF DIVIDED OWNERSHIP RIGHTS IN LATVIA
R. Muskate, T. Tambovceva ........................................................................................................................... 197
EMPLOYMENT PROBLEMS AND PROSPECTS IN THE RUSSIAN "GREEN" BUILDING SECTOR
E. Pirozhenko ................................................................................................................................................ 199
RESIDENTIAL BUILDING MANAGEMENT SYSTEM FEATURES AND UNDERLYING FACTORS
I. Puķīte, I. Geipele ........................................................................................................................................ 201
TERRITORIAL LOCATION IMPACT ON BUILDINGS RECOVERY VALUE
N. Rauza, T. Tambovceva .............................................................................................................................. 203
CHALLENGES AND OPTIMIZATION STRATEGY FOR FEED-IN TARIFFS OF RENEWABLE
ENERGY IN CIS COUNTRIES
O. Saidmamatov, S. Salaev, B. Eshchanov .................................................................................................... 205
SIGNS OF DEGRADATION OF THE HOUSING FUND IN LATVIA
A. Sideļska, .................................................................................................................................................... 207
CIVIL BUILDING MANAGEMENT PROBLEMS AND SOLUTIONS FOR ENSURING THE
SUSTAINABLE DEVELOPMENT OF LATVIA
A. Smerdevs, T. Tambovceva ......................................................................................................................... 210
SUSTAINABLE CONSTRUCTION INVESTMENT IN THE CONSTRUCTION SECTOR: MODEL OF
LATVIA
I. Stamure, I. Geipele ..................................................................................................................................... 212
KPI IN CONSTRUCTION INDUSTRY
A. Švaikovs, K. Fedotova ............................................................................................................................... 214
FUNCTIONAL RELATIONSHIP BETWEEN HOUSING AVAILABILITY AND CREDITWORTHINESS
OF HOUSEHOLDS
J. Vanags ....................................................................................................................................................... 216
FIXED TERM RESIDENCE PERMITS: THE IMPACT ON THE REAL ESTATE MARKET AND THE
NATIONAL ECONOMY
J. Vanags, D. Usenieks .................................................................................................................................. 218
REAL ESTATE DUE DILIGENCE PROCESS IN INTERNATIONAL REAL ESTATE TRANSACTIONS
IN LATVIA
J. Viesturs, A. Auziņš, ................................................................................................................................... 220
SUBSECTION
“Urban and Regional Development”
INTRODUCTION OF ACTION RESEARCH INTO PUBLIC SECTOR HUMAN RESOURCE POLICY
PLANNING AND IMPLEMENTATION IN LATVIA
I. Baltiņa, M. Šenfelde ................................................................................................................................... 223
MODEL OF THE FACTORS INFLUENCING COMPETITIVENESS OF THE LATVIAN FISHERIES
SECTOR’S CLUSTER
I. Biukšāne ..................................................................................................................................................... 226
INFLUENCE OF THE EU STRUCTURAL INSTRUMENTS ON THE REGIONAL DEVELOPMENT:
CASE OF BULGARIA
I. Ivanov ......................................................................................................................................................... 227
THE IMPORTANCE OF THE SUSTAINABLE DEVELOPMENT OF THE NEIGHBOURHOOD OF THE
CITY OF RIGA
I. Pavlova, T. Survilo, U. Kamols .................................................................................................................. 229
NETWORKS IN REGION TECHNOLOGY TRANSFER SYSTEM DEVELOPMENT
O. Prokopenko, V. Omelyanenko ................................................................................................................... 232
POVERTY MITIGATION OPTIONS IN CITIES
I. Sila, U. Kamols, L.Kamola ......................................................................................................................... 234
POLICY FOR THE "GREEN" ECONOMY DEVELOPMENT IN RUSSIA: MAIN TRENDS
M. Terešina, E. Morozova, M. Onishenko ..................................................................................................... 235
ISSN: 2256-0866
SCEE`2015 PROCEEDINGS
ISBN: 978-9934-8275-3-2
SECTION
“NATIONAL ECONOMY AND
ENTREPRENEURSHIP”
SUBSECTION
“BUSINESS ENGINEERING, ECONOMICS, FINANCE
AND MANAGEMENT“
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Proactive Personnel and the Ability of Decision-Making under Conditions of
Risk
Diana Aleksandrova1, Irina Voronova2
1
2
Riga Technical University, Latvia, diana.aleksandrova@rtu.lv
Riga Technical University, Latvia, irina.voronova@rtu.lv
Abstract
The research is focused on determination of preparedness of young specialists with and without
experience for decision-making process. Authors directly connect the level of employee productivity with
logical, qualitative and effective decision-making process. Having a systematic approach for assessing
helps to analyze how proactive and how good are personnel decision-making. Does company‘s
employees have appropriate skills and understanding of decision-making process, does their steps are
objective and thought-out. Decision-making is an integral part of the management process and one of the
fundamental principles of business continuity and sustainable development of the company. Authors have
used the «MindTool» quiz for assessing employees’ current decision-making skills. As a result, the
students without work experience haven't fully matured in decision-making yet, but students with
experience, on the contrary, have a good understanding of the basics, but not enough proactive. To
identify skills of proactivness that are not enough developed, helps company to realize the weaknesses of
defective business continuity concept.
Keywords: Proactive management, proactive personnel
Introduction
To implement proactive management in a company, the most common methods for today are BRP
(business process reengineering), KPI (key performance indexes), BSC (balanced score card), budgeting,
modelling on the IDEF0, IDEF3, SADT, UML standards base, and many other approaches and techniques.
To ensure sustainable business development it is important to realize a process of personnel management: to
identify the key employees, to assess the risk of dismissal, to keep employees motivated, engaged and
improve their proactivity.
The concept of proactivity includes two components: activity and responsibility. A proactive person
aspires to become a subject, not the object of action. The result of content analysis shows that he has an
ability to intervene into management processes, to foresee what could happen with acceptable certainty and
to use appropriate actions and means to avoid risks before they occur. Proactive people’s behavior depends
only on their own decisions, they are responsible for everything that happens to them, and their actions are
the result of conscious choice, based on their own top values, not dictated by the emotions, circumstances or
society.
The aim of this work is an research «Proactive personnel and the ability of decision-making under
conditions of risk». The subject of this work is proactive personnel, that is an integral part of contemporary
enterprise. The object is to represent the abilities of proactive people and the need for proactive employees
(workforce) for decision making in preventing risky situations.
The traditional techniques of proactive personnel evaluation include tests, questionnaires, scaling
(essay appraisal method, graphic rating scale, straight ranking method), comparative methods (paired
comparison, method of classification), critical incidents methods, etc. The aim of this research was to
determine how proactive the youth are in decision-making and is there a difference among the employed and
unemployed students. The object of the research is proactive personnel and the presence or lack of
proactivity skills. The object of the research is proactive personnel and presence or lack of proactivity skills.
The subject of the research - ability of decision-making process under conditions of risk.
Methodology of Research
Proactive people are endowed with skills that allow to anticipate what the future will be, and to react
accordingly before it actually happens. That is very important in business world, where every bad decision
has an impact on business continuity. Strategic errors such as Overreliance on intuition, Emphasis on Speed,
Underestimating Risks Until It’s Too Late are the most common errors in decision-making that contribute to
the collapse.
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To avoid making bad decisions and help to identify persons, there is a need for systematic approach to
identify the level of person‘s confidence making decisions. One of the possibilities is using a “MindTool”
quiz, that is rather simple, but objective, because is based on six essential steps in the decision-making
process: Establishing a positive decision-making environment, Generating potential solutions, Evaluating the
solutions, Deciding, Checking the decision, Communicating and implementing. Authors think that
generating potential solutions and evaluating the solutions are the most important steps in decision-making
process.
Authors, using “MindTool” quiz in February 2015 had interviewed 38 students of 2 different groups:
one student group with work experience of 2 years at least, and other group with no work experience (see
Table 1).
Table 1. The results of decision-making process assessment of respondents
Conclusions
Most of the respondents scored the number of points corresponding to the 1 group of grade (from 18 to
42) which means, that their decision-making are not fully matured. They are not objective enough, and rely
too much on luck, instinct or timing to make reliable decisions. As it is seen from the table above, the score
of men in experienced group match to the 2 group of grade (43-66). This means a good understanding of the
basics, but lack of multivariate analysis of the best alternative under conditions of risk. As a result, all
respondents need to improve decision-making process and become more proactive. Authors have not
identified the level of proactivity between experienced and inexperienced respondents. The average score
activity of proactivity is 67% of the maximum score. The results shows, that respondents are not ready for
decision-making process, especially if it is multivariable or under conditions of risk.
References
MindTools. How Good is Your Decision-Making? http://www.mindtools.com/pages/article/ newTED_79.htm
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ISBN: 978-9934-8275-3-2
Non-financial Enterprises in Kazakhstan: Scoring Assessment and Prediction of
the Insolvency Risk
Sabina Amangeldy1, Irina Voronova2
1
Riga Technical University, Latvia, Sabina.Amangeldy@gmail.com
2
Riga Technical University, Latvia, Irina.Voronova@rtu.lv
Abstract
Article describes financial state of Kazakhstan non-financial enterprises and possibility for the
application of foreign insolvency risk assessment techniques and methods. Furthermore, article covers
scientific findings of academic researchers from different countries on the questions related to the
insolvency risks and its prediction. Statistical data on liquidated and rehabilitated companies in the
country is presented. Paper describes the insolvency risk forecasting accuracy on the practical application
of five different bankruptcy risk assessment models on 30 Kazakhstan non-financial enterprises and
covers results of this analysis.
Keywords: economic analysis, insolvency, bankruptcy, financial risk
Introduction
Bankruptcy and insolvency questions are very important economic and financial issues. Foreign and
domestic economic practice uses various methods and mathematical models for the evaluation of the
bankruptcy probability. Nowadays, countries with developed market economy recognize the need for the
governmental regulation of enterprises’ bankruptcy procedures in order to support and maintain the
development of the industrial and financial sectors of the economy. The object of the study is the scoring
assessment and prediction of the insolvency risk, therefore the subject – non-financial enterprises in
Kazakhstan. The goal of this thesis is the development of theoretical and methodological framework for the
most effective insolvency risk assessment for non-financial organization in conditions of Kazakhstan’s
economy. In order to achieve stated goal following tasks should be fulfilled:
1.
Analyse the effect of the current financial and economic situation of Kazakhstan on insolvency
of local companies.
2.
Introduce an analysis on bankruptcy statistics and rehabilitation processes for insolvent
companies in Kazakhstan.
3.
Apply three different classes of bankruptcy prediction models in practice on the example of
Kazakhstan enterprises
Following hypothesis to be proved in the course of this study:
H1: Insufficient values of liquidity coefficients are the signals for the mangers to start insolvency
investigation process; H2: Insolvency risk assessment models introduced by foreign investigators have to be
checked and verified to be used or the enterprises’ insolvency risk assessment.
Study consists from three major parts. Firstly, current economic situation in Kazakhstanis described
and main terms and regulations related to economical and legal aspects of the bankruptcy procedures are
discussed and analysed. Furthermore, it contains statistical information on liquidated and rehabilitated
companies in the course of insolvency procedures. Next section deals with evaluation of economic factors
influence on the companies’ insolvency and covers scientific investigations of foreign and national authors
into the insolvency assessment questions. Last section describes the practical application of five different
bankruptcy risk assessment models on 30 Kazakhstan non-financial enterprises and covers results of this
analysis. In the end, conclusions and recommendations are introduced.
Findings/Results
In the course of the study insolvency risk assessment was performed on the example of 30 Kazakhstan
enterprises which are publicly traded on the Kazakhstan Stock Exchange (KASE). Five different insolvency
risk assessment models were tested on the possibility of application under the conditions of Kazakhstan’s
economy. It should be noted that the use of such models requires great caution: they do not fully suited to
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assess the risk of bankruptcy of Kazakhstan domestic economic entities due to the differences in the methods
of reflection of inflationary factors, differences in the assessment of the capital structure as well as due to
differences in legislation and information base.
Enterprise
Table 1. Fragment of insolvency assessment models calculations
Real state of
the firm
Model
Z
Z'
Z''
Oo
Dd
1.48
1.21
0.18
0.30
-0.60
-0.81
1.00
1.00
26.24
0.00
F
Assessment result
P_Z
P_Z'
P_Z''
P_ Oo
P_Dd
B
B
B
N
B
B
B
B
B
N
B
B
<…>
0.29
-1.30 1.00
8.97
N
N
B
B
B
B
29 0.02
1.38
1.00 65.21
N
N
B
N
B
N
30 7.90 -1.37
Note: Constructed by authors based on the results of the findings
Z – original Altman Z-Score, Z’ – Altman Z- Score for China, Z’’ – Altman Z-Score for Japan, Oo – Ohlson OScore, Dd – David Durand;
B – bankrupt, N – non-bankrupt.
1
2
Among five applied models Ohlson O-Score is the only model that is completely inapplicable in
Kazakhstan. The reason for that is different balances sheet structure and value of weighted coefficients. What
is about Altman Z-Score models it can be said that this model have to be adjusted for Kazakhstan, as well as
David Durand method. As it was concluded by many researches all countries require its own assessment
models. Results of the investigation prove that all models should be adapted to the specific conditions of
each countries’ financial and economic standards and norms for the most accurate and effective application.
Conclusions
The main conclusions of this thesis can be summarized as follows:
Inability to assess bankruptcy risks can be dangerous for companies and for whole industries in
general. Efficient and wisely managed bankruptcy institution government can regulate amount of
debts, perform successful rehabilitation procedures when it is needed and create new effective
companies on the place of liquidated.
2.
Majority of the insolvency decisions are based on the legislative acts and issues, while social and
economic aspects of the enterprises insolvency are usually ignored or paid a little attention.
3.
The most challenging thing for the Kazakhstan’s companies is the long run forecasts and
prognoses due to the insufficient experience in comparison to western countries.
4.
Conducted investigation proves both hypotheses.
5.
Efficient assessment model should meet international methodological standards and
requirements of financial reporting, moreover specific features of the industry and economy will
be taken into account in order to perform more deep and full analysis.
1.
References
Altman, E. Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. The Journal of Finance,
1968. 23(4): 589-609
Altman, E.I., Zhang, L., Yen, J. Corporate Financial Distress Diagnosis in China. New York University: Salomon
Center Working Paper, 2007
Durand, D. Risk Elements in Consumer Installment Financing. National Bureau of Economic Research, 1941
Gurau. G. A Model of Bankruptcy Prediction: Calibration of Atman's Z-score for Japan. Bachelor Thesis, 2013
Kazakhstan Stock Exchange (KASE) [Online]. [Accessed on April 30th, 2015]. Available from: < http://www.kase.kz/>
Ohlson, J. Financial ratios and the probabilistic prediction of bankruptcy. Journal of Accounting Research, 1980. 18(1):
109-131.
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Return on Shareholders’ Equity of Baltic Pension Fund Management
Companies
Ilja Arefjevs1
1
BA School of Business and Finance, Latvia, ilja.arefjevs@inbox.lv
Abstract
The research is focused around return on shareholders’ equity of Baltic pension fund management
companies from the perspective of competitiveness of small and medium companies with no or low
exposure to non-pension fund management business compared to other companies in the marketplace.
The research period covers post crisis years from 2009 to 2014. The research outcome is reasoning why
small and medium pension fund management companies are capable of generating competitive return on
equity to its shareholders compared to the one of companies with bigger assets under management and
bigger share of non-pension fund management income.
Keywords: Pension fund management, return on equity, cluster analysis.
Introduction
Return on equity (ROE) is one of pivotal financial efficiency indicators. Stakeholder theory asserts
that managers should make decisions that take into account the interests of all the firm’s stakeholders. This
will include shareholders, employees, suppliers, customers, local communities, the government and
environment (Pike, Neale, 2009). Both too low and too high return on equity can lead to market distortions,
which will cause adverse effects. The goal of this research is to assess whether small and medium pension
fund management companies are capable of generating competitive return on equity compared to the one of
companies with bigger assets under management and bigger share of non-pension fund management income.
ROE is calculated as pre-tax profit divided by average equity of the pension fund management
companies. Average equity is calculated as a sum of equity value in the beginning of the year and end of the
year divided by two. Pre-tax profit is profit after all expenses are deducted and before corporate income tax.
Pre-tax return on equity was calculated for all twenty pension fund management companies operating in
Estonia, Latvia and Lithuania in years 2009 through 2014.
A regression analysis was run to examine whether companies with bigger assets under management
and bigger share of non-pension fund income generate higher ROE. Because of the independent variable
assets under management is expressed in millions of euro, assets under management figures were normalised
for each year of the research by using the formula:
xNorm =
(X−xMin )
(xMax −xMin )
(1)
where X stands for actual variable, xMin is the least variable, xMax is the largest variable and xNorm
is a normalized variable. The regression equations are expressed in the following manner:
𝑅𝑅𝑅𝑅𝑅𝑅 = β1 ∗ NormAuM + β2 ∗ ShareNonPensInc + α (2)
𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁𝑁 = β1 ∗ NormAuM + β2 ∗ ShareNonPensInc + α (3)
where ROE is a figure for actual return on equity, NormROE is a figure for normalized return on
equity obtained by using the formula 1, NormAuM is a figure of normalised assets under management,
ShareNonPensInc is a share of non-pension fund revenue and α stands for intercept. Furthermore, pension
fund management companies are assigned clusters by using the single linkage method (Lee, 2015) in
accordance with volume of their assets under management and share of non-pension fund management
income. These cluster analysis criteria are chosen to segregate companies, which have pension fund
management business as their core activity and which are not big, from companies, which are big market
players or have other investment management activities.
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Findings
The regression analysis revealed that there is no correlation between both actual ROE and normalized
ROE and normalized assets under management and share of non-pension fund management income.
Findings are summarized in the Table 1.
Table 1. Statistics summary
Actual
0.03
0.05
118
Adjusted R-squared
Significance
Observations
Normalized
0.00
0.37
118
Significance of the model assuming actual ROE is strong enough to support an argument that
companies with bigger assets under management and or higher share of non-pension fund management
income do not generate higher ROE. As a result of the cluster analysis, five clusters and outliers were
identified. Clusters, which constitute special scientific interest are number one, two and four. The first cluster
represents small to medium pension fund management companies (i.e. assets do not exceed EUR 400 mio)
with none to low share of non-pension fund management income (i.e. typically 0-15%). The second one are
big companies (i.e. assets range EUR 400-930 mio) with none to low non-pension fund management income
(i.e. up to 9%). Number four are big companies (i.e. assets range EUR 500-950 mio) with moderate exposure
to non-pension fund business (i.e. 14-34%). Furthermore, top quartile of companies with the highest ROE is
selected and companies are presented at the cluster level in the Figure 1.
100%
Outliers
80%
5
60%
4
40%
3
2
20%
1
0%
2014
2013
2012
2011
2010
2009
Figure 1. Top quartile of ROE cluster members
Small and medium companies from the first cluster (ROE max= 67.8%) proved to be represented in
the top quartile along with big companies from the fourth cluster (ROE max= 94.8%). The second cluster
companies are also represented in five years out of six (ROE max= 74.3%). Appearance of the third cluster
in 2009 can be considered to be occasional.
Conclusions
The regression analysis revealed that pension fund management companies with bigger assets under
management and bigger share of non-pension fund management income do not generate higher ROE.
Findings of the ROE analysis from the cluster perspective demonstrated that top quartile of ROE consists of
small to medium pension fund management companies with none to low share of non-pension fund
management income and big companies with none to low non-pension fund management income as well as
ones with moderate exposure to non-pension fund business. Thus, there is evidence obtained that small and
medium pension fund management companies are capable of generating competitive return on equity to its
shareholders compared to the one of companies with bigger assets under management and bigger share of
non-pension fund management income.
References
Lee, G. (2015). Hierarchical Clustering Using One-Class Support Vector Machines. Symmetry 2015, 7, 1164-1175.
Pike, R., Neale, B. (2009).Corporate Finance and Investment Decisions & Strategies (6th edition). Essex: Pearson
Education Limited. 14 p.
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Opportunities for the Use of Business Data Analysis Technologies
Signe Balina1, Rita Zuka2, Juris Krasts3
1
University of Latvia, Latvia, signe.baluna@lu.lv
2
University of Latvia, Latvia, rita.zuka@lu.lv
3
University of Latvia, Latvia, juris.krasts@lu.lv
Abstract
The paper analyzes the business data analysis technologies, provides their classification and considers
relevant terminology. The feasibility of using of business data analysis technologies handling with big
data sources is overviewed. The paper shows the results of examination of the online big data sources
analytics technologies, data mining and predictive modeling technologies and their trends.
Keywords: Business Intelligence, Business Analytics, Analytics Platforms, Online Analytical
Processing, Data Mining, Predictive Modelling.
Introduction
The accumulated data volume is steadily growing in enterprises and organizations. Enormous amounts
of data have been created that have different data types and part of the data is stored in a poorly structured
format that does not meet traditional database relational models, such as journals, history lists, videos, text
documents. The data is stored in different data sources (relational databases, non-relational databases NoSQL databases, spreadsheets, text documents etc.). The goal of this paper is to consider the usage and
tendencies of the business data analytics technology, terminology and the proposed business data analysis
tools.
The business data analysis technologies have been developed for the accumulated data analysis, which
are rapidly developing. More recently, business analysis has used the structured data, and task of an analyst
(or a business user) was to get the answers to pre-formulated questions and later make the corresponding
report. Nowadays, the job of an analyst or a business user is an interactive process involving the search for
hidden relationships and patterns in the data. It is a process where the raw data are transformed into useful
information. For business data users’ in order to access their large volumes of data the special software
packages or applications are needed, which search for the relationships between the data, and that ensures
more well-grounded decision-making.
The range of business data analysis tools is very wide, and recently the Business Intelligence (BI) and
Analytics Platforms (AP) market is experiencing significant changes. The requirements for BI tools are being
changed. Business users are increasingly demanding tools with an interactive user interface, which provides
data analysis without any special knowledge of information technology requirements (Gartner Group, 2015).
Lately in both the scientific literature and web publications in connection with the business data
analysis technology different terms are used: Business Intelligence (BI), Business Analytics (BA), Analytics
Platforms (AP), Online Analytical Processing (OLAP), Data Mining, Advanced Analytics, Visual Data
Discovery and Big Data (BD).
The research on the usage and tendencies of the business data analytics technology and its terminology
is performed by means of scientific literature study and by practical applying of BI software and
applications.
The starting point was the first generation of BI applications which ensured the selection of data from
relational databases. The next BI application development stage made it possible to use Data Mining
technologies and Predictive Modelling methods. The second generation BI systems also were used with
focus on the Internet and cloud computing technologies (Myers, 2015).
Results
During the analysis various data analysis technologies were investigated and used in practice as well
as classified according to their aims. As a result is was evident that the Online Analytical Processing (OLAP)
technology provides data selection, transformation and storage in multidimensional databases (Al-Aqrabi et.
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Al., 2014). The associative data analysis technology based on the use of random-access memory at first was
implemented on QlikView platform (Bitterer et. Al., 2015). The Data Mining technology, which provides the
search for the hidden regularities in large volumes of data, gives possibility to analyse data which correspond
to the different measurement scales.
Meanwhile the Text Mining technology performs the semantic text analysis, solves the problem of
navigation in large text arrays, searches for the relationship between the main text concepts as well as
searches for information that is expressed in a natural language. By means of the Predictive Modelling the
calculation of models based on the analysis of large amounts of data was used in order to predict a variety of
processes (including business processes) (Gandomi & Haider, 2014). The Advanced Analytics as a set of
analytical methods was used in forecasting including predictive analytics, simulation, optimization, graph
analysis, complex event processing, and neural networks. (Gartner Group, 2015).
The traditional BI platforms’ development companies are trying to comply with new trends and
develop simplified BI tools for interactive data analysis that often uses in-memory technology. The main BI
software developers provides different tools for simplified data analysis. For example, Microsoft proposes
PowerPivot and Data Mining suitable to integrate Microsoft Office Excel software into applications, SAP
has developed SAP BusinessObjects Explorer, and IBM offers IBM Cognos Express. Recently open source
BI solutions have been or are being developed (Bitterer et. al., 2015).
Conclusions
The first generation of BI applications ensured the selection of data from relational databases and data
transformation, creating the multidimensional databases (OLAP cubes and QlikView analytic cloud), data
presentation and visualization tools, as well as offered integration tools with corporate information systems.
The next BI application development stage makes it possible to use Data Mining technologies and Predictive
Modelling methods.
The second generation BI systems are focused on the Internet and cloud computing technologies.
Innovation continues to develop in areas that provide more intuitive and rapid BI system implementation for
the use in data sources of large amounts.
References
Gartner Group, (2015). Magic Quadrant for Business Intelligence and Analytics Platforms. Retrieved from:
http://www.gartner.com/technology/reprints.do?id=1-2ACLP1P&ct=150220&st=sb
HussainAl-Aqrabi, LuLiu, RichardHill, NickAntonopoulos, (2014). Cloud BI: Future of business intelligence in the
Cloud, Journal of Computer and System Sciences. Retrieved from: http://www.sciencedirect.com/
Andreas Bitterer, Carsten Bange, Christian Fuchs, Patrick Keller, Larissa Seidler, (2015). Enterprise-Wide BI Platform
Deployments.
BARC
Business
Intelligence
Score
2015
report.
Retrieved
from:
http://global.qlik.com/uk/explore/resources/analyst-reports/barc-score-for-bi?ga-link=promo
Amir Gandomi, Murtaza Haider (2014), Beyond the hype: Big data concepts, methods, and analytics, International
Journal of Information Management. Retrieved from: http://www.sciencedirect.com/
Gartner IT Glossary (2015). Retrieved from: http://www.gartner.com/it-glossary/advanced-analytics/
John Myers, (January 2015). Analytics in the Cloud. Enterprise Management Associates, End-User Research Report.
Retrieved
from:
http://www.enterprisemanagement.com/research/asset.php/2964/Analytics-in-the-CloudResearch-Summary-for-MicroStrategy
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Tourism Networks in Latvia: Purposes and Coverage
Kristīne Bērziņa
University of Latvia, Latvia, Kristine.Berzina@lu.lv
Abstract
21st century can be characterised as cooperation, network and alliance period in enterprise and
organisation interactions. Still there is always a question who cooperates with whom? Is the particular
cooperation network purpose to exchange the knowledge, joining of resource or just another type of
competition? A tourism industry analysis comprises purpose, sectorial and coverage study of tourism
industry associations and similar organisation groups in Latvia. Conclusions and suggestions are drawn
for overall tourism industry as system improvement and tourism organisation cooperation logical spreadout management.
Keywords: networking, cooperation, cooperation networks, tourism.
Introduction
At a time of increasing environmental turbulence and operational complexity for organisations
additional interest in collaboration in tourism has arisen. Researchers of tourism industry are identifying
problems, which have appeared in this industry for last ten years - short term planning in tourism, necessity
of systematic and integrated events, still their consequences can be solved using collaboration between
organisations in tourism industry using private and public-private partnerships. A key reason for the growing
interest in collaboration in tourism is the belief that organisations and destinations may be able to gain
competitive advantage by bringing together and sharing their combined knowledge, expertise, capital and
other resources. Widespread adoption of collaborative working will be critical to the future of the tourism
industry: firms and organisations will increasingly need to work together. Researchers of tourism industry
are recommending networking, in this way helping enterprises to expand systematic perception of industry
beyond. With the accelerating pace of technological innovation and the ever hastening trend towards
globalisation, traditional adversarial relationships among tourism organisations are increasingly being swept
away and replaced by enduring collaborative arrangements. The rapidly developing technological
environment set additional need for cooperation in order to keep pace with the latest developments and from
other hand technological innovations set a basis for the new facilitated possibilities for cooperation networks.
As research methodology for the main in Latvia tourism network list is used tourism expert evaluation.
Purpose and coverage analyses is based on the information gathering from the secondary data from tourism
networks of Latvia. Use of social networks for representativeness is evaluated gathering tourism network
activities in web, twitter, Facebook, LinkedIn, YouTube, Flickr, vimeo, draugiem.lv.
Findings/Results
Findings show the differences in tourism network purposes based on typology, purposes and coverage
from sectoral and geographical perspectives.
Conclusions
Tourism network analyses allow drawing conclusions related to geographical coverage and
professional network representativeness gaps and improvement possibilities.
References
Axelsson B., Easton G. (1994) Industrial networks. a new view of reality, Routledge, UK, p. 1-69. p
Bowles S., Gintis H. (2002) The origins of human cooperation, Retrieved from www-unix.oit.umass.edu
Bramwell B., Lane B. (2000) Tourism collaboration and partnerships. Politic, practice and sustainability, Channel view
publications, UK, 343.p.
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ISBN: 978-9934-8275-3-2
Child J., Faulkner D. (1998) Strategies of co-operation. Managing alliances, networks, and joint ventures, Oxford
University Press, USA, 371 p.
Corsaro D., Ramos C., Henneberg S.C., Naude P. (2011) Actor network pictures and networking activities in business
networks: An experimental study, Industrial Marketing Management Journal Volume 40, p. 919–932
Cravens D.W., Piercy N.F. (1994) Relationship marketing and cooperative networks in service organizations,
International Journal of Service Industry Management, Volume 5, Number 5 , 1994, p. 39-53
Easton, G. (1992) Industrial networks: A new view of reality. London: Routledge, p.3-27
Eggers F., Kraus S., Covin J.G. (2014) Travelling into unexplored territory: Radical innovativeness and the role
of networking, customers, and technologically turbulent environments, Industrial Marketing Management Journal
Volume 43 p. 1385–1393
Ford D., Gadde L/E., Hakansson H., Snehota I.(2003) Managing business relationships, Wiley, UK , 215 p.
Ford D., Mouzas S. (2013) The theory and practice of business networking, Industrial Marketing Management Journal,
Volume 42 p.433–442
Fyall A., Garrod B. (2005) Tourism marketing. A collaborative approach, Channel view publications, UK, p. 141
Hakasson H., Johanson J. (1999) Model of industrial networks”, Routledge, UK, p. 1-69, p.29-36
Henneberg, S., Mouzas, S., Naudé, P. (2006). Network pictures: Concepts and representations. European Journal of
Marketing, Volume 40(3/4), p.408–429.
Hingley, M. K. (2005). Power to all our friends? Living with imbalance in supplier–retailer relationships? Industrial
Marketing Management Journal, Volume 34(8), p. 848–858.
Leek, S., & Mason, K. (2009). Network pictures: Building an holistic representation of a dyadic business-to-business
relationship. Industrial Marketing Management Journal, Volume 38(6), p. 599–607.
Mattsson, L. -G. (1986). Indirect relationships in industrial networks: A conceptual analysis of their significance, 3rd
Annual IMP Conference. France: Lyon.
Morrison A., Lynch P., Johns N., (2004) International tourism networks, International Journal of Contemporary
Hospitality Management Volume 16 Number 3, p. 197-202
O'Donnell, A., Gilmore, A., Cummins, D., & Carson, D. (2001). The network construct in entrepreneurship research: A
review and critique. Management Decision Journal, Volume 39(9), p.749–760.
OECD (2008) SMEs and Global Value Chains: Case Studies Findings, in Enhancing the Role of SMEs in Global Value
Chains, OECD Publishing, p.53-71
Purchase, S., Lowe, S., & Ellis, N. (2010) From “taking” network pictures to “making” network pictures: A new
metaphorical manifesto for industrial marketing research, Journal of Organizational Change Management,
Volume 23(5), p. 595–615
Ramos, C., & Ford, I. D. (2010). Network pictures as a research device: Developing a tool to capture actors' perceptions
in organizational networks. Industrial Marketing Management Journal, Volume 40(3), 447–464.
Richerson P.J., R.T. Boyd, J. Hienrich, Cultural Evolution of Human Cooperation”, p. 374., Retrieved from
www.des.ucdavis.edu/faculty/richerson
Ridley M. (1998) The Origins of Virtue : Human Instincts and the Evolution of Cooperation, Penguin, 304 p.
Singh B. (2005) Collaborative advantage in volatile business environments, Western reserve university, 36 p.
Thornton S.C., Henneberg S.C., Naude P. (2013) Understanding types of organizational networking behaviors in the
UK manufacturing sector, Industrial Marketing Management Journal, Volume 42 , p. 1154–1166
Tikkanen H. (1997) Networking Approach to the Industrial Business”, Turku, Kirjapaino Grafia Oy, p. 57-58
Vante E., Taylor M. (2000) The Networked firm in a global world. Small firms in new environments, p. 8-9
WTTO (2003) Cooperation and partnerships in tourism: a global perspective, Spain, p.148
Уоллес, Р. Л. (2005) Стратегические альансы в бизнесе. Москва: Добрая книга, 284 с.
Hostelling Latvija www.hostellinglatvia.com
Kurzeme Tourism Association www.kurzeme.lv
Latgale Region Tourism Association Ezerzeme www.visitlatgale.com
Latvian Camping Association www.camping.lv
Latvian resorts association www.healthtravellatvia.lv
Latvian Rural Tourism Association Lauku Ceļotājs www.celotajs.lv
Latvian Medical Export Association www.medexport.lv
Latvian Museum Association www.muzeji.lv/
Association of Latvian Castles, Palaces and Manors www.pilis.lv
Association of Latvian Professional Guides www.lpgatravel.lv/
Latvian Association of Tourism Agents (ALTA) www.alta.net.lv
Association of Latvian Tourism Information Organisations LATTŪRINFO www.latturinfo.lv
Latvian Association of Hotels and Restaurants www.lvra.lv
LIVE Rīga Office www.liveriga.com
Vidzeme Tourism Association www.vidzeme.com
Zemgale Tourism Association www.travelzemgale.lv
Sigulda Region Tourism Society www.entergauja.com/
Sustainable Tourism Cluster of Latvia www.tourismcluster.lv/
Latvia Tourism State development Agency www.tava.gov.lv
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Competitiveness of Small Open European Economies under Global Imbalance
Tatyana Boikova
Baltic International Academy, Latvia, tatjana.boikova@bsa.edu.lv
Abstract
The achievement of long-term economic growth of EU Member States will require increasing total
factor productivity, investing in knowledge-based and sustainable development that can lead to enhancing
competitiveness of the European economies. Transition to the innovation-driven model of development
especially in small open European economies is more linked to the search for efficient tools of
macroeconomic adjustment and strong strategies that affect the strengthening businesses investment
activity. This paper analyses the relationship between the incentive for investment and innovation
diffusion, competitiveness level and the economy’s rate of growth. The empirical analysis focuses on
revealing challenges facing small open European economies (case of the Baltic States) in innovation
performance and explores what macroeconomic adjustment is necessary for creation of new knowledge
and effective aggregate demand for innovations.
Keywords: investment, productivity, sustainability, growth, competitiveness.
Introduction
In terms of a global competition the investment on formation, accumulation and commercialisation of
knowledge, R&D intensity, innovative technologies in the industries and the management, allowing
receiving super-profit, became new criterion of the international leadership. However, the strong
international competition as the factor of rising efficiency of economic development should not turn into
destructive force especially for models of sustainable growth. The globalisation as an inevitable process has
not generated a path for the world economy development yet. The G20 countries stimulated their economies
by monetary policy of 'quantitative easing' and expansionary fiscal policy which has led to a 'debt overhang'
and created problems for global recovery. Moreover, the neo-liberal model of globalisation has impacted
strengthening the risks of imbalances. With deepening of the globalisation processes which are asymmetric,
the gap in the levels of income per capita between the "poor" and "rich" countries is not decreased. The risk
of imbalance is caused by the uneven distribution of benefits arising from globalisation when there are the
unilateral advantages. Without large investment in human capital and industrial development, economies of
the poor countries get into poverty "vicious cycle".
Under the conditions of a global imbalance and increasing openness of national economies the
international economic relations more and more will depend on trends in dynamics of the European
economy. Taking into account the key objectives of the EU Research and Innovation programme Horizon
2020, the European economy needs innovative and inclusive growth model based on strengthening industrial
leadership in innovations. From the point of view of long-run development and effect of a synergy, the basis
of sustainable innovative growth of the European economy should be provided not by resource factors, but
by transmission of knowledge, foreign direct investment in the science-intensive industries, and diffusion of
new technologies especially in small European economies.
Non-coordination of fiscal and monetary policy at supranational level in the EU, significant distinctions
in economic growth quality complicate governance by the European economy. With the increasing needs in
loans and enlargement of the international market segments small economies of New European countries
have no investment possibilities to use comparative advantages by participating in the global innovation
process. Then the question is natural, what is effect of innovation activity on economic growth and
competitiveness of these countries and where are opportunities for sustainable economic growth? Moreover,
whether such economies can develop owing to using internal resources and how can increase the national
income per capita growth rate?
It is necessary to note that the measurement of the effect of innovation performance on
competitiveness of national economies and sustainability of economic growth still remains a complex
research problem, which has to include the estimation of the effective investment demand for innovations,
impact of innovation diffusion on total factor productivity changes, the producer choice, business cycle
dynamics, and openness of economy. Most of studies towards European economies are focused on research
and comparison of European growth models (Bohle and Greskovits, 2007, Hein, 2013, Stockhammer et al.,
2015), macroeconomic imbalances within the EU (Ederer and Reschenhofer, 2013), current account
imbalances in the EMU (Dodig and Herr, 2015), EU enlargement, for example, structural changes of trade
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in the enlarged EU (Curran and Zignago, 2012). Meanwhile, the relationship between innovation diffusion,
competitiveness and economic growth more specifically for small European economies is not explored in
many studies.
This research is aimed at revealing challenges in transition to innovation-driven model of
development, evaluating the impact of innovation diffusion on competitiveness level and economic growth,
and determining effective macroeconomic adjustment for enhancing innovation activity in small open
European economies (case of the Baltic States).
The methodology of research is based on decomposition of the global competitiveness index, the
Europe 2020 competitiveness index for the Baltic States and conducting the empirical analysis of the impact
of country’s innovation performance on the sustainable competitiveness and global competitiveness indexes,
index of openness and economic growth rates. This empirical analysis adds to comparison of European
growth models that provides comprehensive approach to choice of strategies of macroeconomic adjustment
increasing capacity of entrepreneurship to innovation and promoting balanced economic growth.
Findings/Results
The empirical analysis of innovation performance trends of the Baltic States has revealed considerable
disparities on the one hand between these countries and at the same time a large gap with Old small
European Economies on such indicators as gross domestic expenditure on R&D, public R&D expenditure,
business expenditure on R&D, innovation expenditure as a percentage of turnover in manufacturing, high
technology venture capital investment, employment in knowledge-intensive service sectors and hightechnology manufacturing sectors, high-tech exports. As consequence, one can observe the dispersion in
competitiveness indexes and substantial differences in growth potential of economies.
Conclusions
To enhance innovation capacity and competitiveness of the Baltic States economies the
macroeconomic adjustment has to encourage the R&D investment, financing engineering, allocation of
resources for supporting a full innovation cycle in science-intensive industries and creating innovation
demand as the initial condition for the sustained economic growth. Taking into consideration a smaller effect
of fiscal policy than monetary policy in an open economy, it is necessary to keep specificity of monetary
adjustment of the national economies. The strategy of endogenous economic growth should be guided to
increasing the internal saving, gross private domestic investment and gradual reduction of dependence on the
short-term foreign capital.
References
Bohle, D. & Greskovits, B. (2007). The State, Internationalization, and Capitalist Diversity in Eastern Europe. Journal
of Competition and Change, 11 (2), 89-115.
Curran, L. & Zignago, S. (2012). EU Enlargement and the Evolution of European Production Networks. Research in
International Business and Finance, 26 (2), 240-257.
Dodig, N. & Herr, H. (2015). EU Policies Addressing Current Account Imbalances in the EMU: an Assessment of
Official Policy Responses. Panoeconomicus, 62 (2), (Special Issue), 193-216.
Ederer, S. & Reschenhofer, P. (2013). Macroeconomic Imbalances in the EU. Welfare, Wealth, Work for Europe,
Working Paper No. 42.
European Commission (2010a). Europe 2020: A Strategy for Smart, Sustainable and Inclusive Growth. Brussels: EC.
European Commission (2013b). Annual Growth Survey 2014. Brussels: EC.
Hein, E. (2013). The Crisis of Finance-Dominated Capitalism in the Euro Area, Deficiencies in the Economic Policy
Architecture, and Deflationary Stagnation Policies. Journal of Post Keynesian Economics, 36(2), 325-354.
Stockhammer, E. & Wildauer, R. (2015). Debt-Driven Growth? Wealth, Distribution and Demand in OECD Countries,
Economics Discussion Papers 2015-2, Kingston University London.
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The Relevance of Cross-Border Contagion Risk Transmission in the Central and
Eastern European Countries
Vilma Deltuvaitė
Kaunas University of Technology, Lithuania, vilma.deltuvaite@ktu.lt
Abstract
Despite the driving forces and potential benefits, financial globalization can carry important risks such
as cross-border contagion risk. Financial globalization can lead to financial crises in countries with weak
fundamentals as the economies become subject to the reaction of domestic and foreign investors,
however, globalization can also lead to crises in countries with sound fundamentals. Small open
economies are exposed to contagion via different channels such as real links, financial links, or capital
market imperfections such as herding behaviour or panics. The aim of the research – to assess the
relevance of cross-border contagion risk transmission in the CEECs’. The empirical results of this study
show that the degree of economic openness is very high in all CEECs’ (except Croatia, Poland, and
Romania) and CEECs’ are among the world’s most open economies. This imply that CEECs’ are very
vulnerable to the external shocks that can be transmitted through real channel. The financial systems of
the CEECs’ are mostly bank-based and dominated by foreign-owned banks with relatively. These
empirical results suggest that CEECs’ are exposed to external shocks in the financial systems of
neighbouring countries. Although some CEECs’ could be vulnerable to FDI outflows there is substantial
empirical evidence that such investment are resilient during financial crises.
Keywords: cross-border contagion risk, economic and financial integration, financial and economic
openness, globalization, CEECs’
Introduction
The recent wave of financial globalization has intensified global linkages through cross-border
financial flows. According to Halac et al. (2006), the main potential benefit of financial globalization for
developing countries is the development of their financial system that can be promoted through two main
channels. First, due to the increasing financial globalization new sources of capital and more capital become
available in developing countries allowing to better smooth consumption and deepening financial markets.
Second, financial globalization can improve financial infrastructure in developing countries which can
mitigate information asymmetries and thus reduce problems of adverse selection and moral hazard. Despite
the driving forces and potential benefits, financial globalization can carry important risks such as crossborder contagion risk. Financial globalization can lead to financial crises in countries with weak
fundamentals as the economies become subject to the reaction of domestic and foreign investors, however,
globalization can also lead to crises in countries with sound fundamentals. According to Halac et al. (2006),
Mendoza & Quadrini (2010), imperfections in international financial markets and external factors that
determine financial flows make small open economies (e.g. the Central and Eastern European countries
(CEECs’)) more prone to external shocks. Furthermore, developing countries that integrate into world
financial markets become more exposed to cross-border contagion risk. Moreover, small open economies are
exposed to contagion via different channels such as real links, financial links, or capital market imperfections
such as herding behaviour or panics.
The aim of the research – to assess the relevance of cross-border contagion risk transmission in the
Central and Eastern European countries (CEECs’). The object of the research – the financial and economic
openness of the CEECs’. Research methods: the systemic, logical and comparative analysis of the scientific
literature, and analysis of statistical data.
Dornbusch et al. (2000), Hernandez & Valdes (2001), Pritsker (2001), Forbes & Rigobon (2002), Bae
et al. (2003), Caramazza et al. (2004), Bekaert et al. (2005), Corsetti et. al. (2005), Halac et al. (2006),
Anoruo et al (2007), Fazio (2007), Tressel (2010), Degryse et al. (2010), Rose & Spiegel (2010, 2012),
Beirne & Gieck (2012), etc.), and international financial institutions’ (World Bank, International Monetary
Fund) experts distinguish the following cross-border contagion risk transmission channels: real channel,
financial channel, financial markets channel and political channel. Real cross-border contagion risk
transmission channel is the fundamental economic relationship among economies, whereas, financial links
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that exist when two economies are connected through the international financial system create financial
cross-border contagion risk transmission channel. However, even if real or financial links do not exist
between two countries, herding behaviour by international investors or panic in international financial
markets can result cross-border contagion risk (financial markets channel). The World Bank’s experts also
distinguish political cross-border contagion risk transmission channel that exists due the political
relationships among countries.
This empirical study focuses on assessment of the financial and economic openness of the CEECs’ in
order to determine the main cross-border contagion risk transmission channels that are relevant for this group
of countries (11 CEECs’: Bulgaria (BGR), Czech Republic (CZE), Estonia (EST), Croatia (HRV), Hungary
(HUN), Latvia (LVA), Lithuania (LTU), Poland (POL), Romania (ROM), Slovakia (SVK), and Slovenia
(SVN)). The financial and economic openness of the CEECs’ have been assessed using the following
relative ratios: 1) the degree of economic openness (sum of imports and exports of goods and services
divided to gross domestic product (GDP)); 2) the degree of financial openness (inward foreign direct
investment (FDI) stock divided to GDP; outward FDI stock divided to GDP; foreign bank assets divided to
total bank assets; a number of foreign banks divided to total number of banks). Statistical data have been
obtained from United Nations Conference on Trade and Development databases and World Bank Global
Financial Development database.
Findings/Results
The empirical results of this study show that the degree of economic (trade) openness is very high in
all CEECs’ (except Croatia, Poland, and Romania) and CEECs’ are among the world’s most open economies
((Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Slovakia, and Slovenia were in the world’s
most open economies TOP-30 in 2014) (Fig. 1). Small economies like CEECs’ specialize in producing few
goods and services in order to attain optimal scale and be competitive. Due the small size of their domestic
markets small countries must export those goods and services in exchange for the imports of the goods and
services those are not produced in these countries. The empirical results of this study show that CEECs’ are
very vulnerable to the external shocks that can be transmitted through real channel.
The financial systems of the CEECs’ are bank-based and dominated by foreign-owned commercial
banks with relatively (Fig. 1). In most of CEECs’ foreign banks dominate in terms of assets and number of
participants (except Slovenia). The results of this study also show that there is regional integration of
CEECs’ banking systems, i.e. foreign banks operating in CEECs’ are mostly from neighbouring countries,
e.g. Scandinavian banks operate in the Baltic countries, Austrian and German banks – in Czech Republic,
etc. These empirical results suggest that CEECs’ are exposed to external shocks in the financial systems of
neighbouring countries and decisions of parent banks shareholders.
200
100
180
150
173
167
163
80
146
91
71
91
82
92
86
85
79
67
60
92
88
87
70
136
Percent
Percent
92
159
118
100
99
81
67
69
68
66
64
62
43
40
35
25
50
20
0
0
EST LTU HRV SVK CZE ROM BGR POL LVA HUN SVN
Foreign bank assets among total bank assets Foreign banks among total banks
SVK HUN EST LTU CZE SVN BGR LVA HRV POL ROM
Figure 1. The economic openness of the CEECs’ in 2014 (on the left side) and the openness of the banking
systems in the CEECs’ in 2009 (on the right side)
Source: [United Nations Conference on Trade and Development, World Bank]
The empirical results of this study show that Bulgaria, Estonia, and Hungary had attracted more FDI
comparing to other CEECs’ while Lithuania and Slovenia suffer from lack of this form private capital flows
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(Fig. 2). These empirical results suggest that financial openness of CEECs’ in terms of FDI differs. However,
some empirical studies confirm the resilience of FDI during financial crises. Loungani & Razin (2001) argue
that FDI has proved to be resilient during financial crises, e.g. FDI was remarkably stable in East Asian
countries during the global financial crises of 1997-1998 while other forms of private capital flows were
subject to large reversals during the same period (Dadush et al. (2000), Lipsey (2001)).
100
100
40
88
86
31
80
30
69
27
61
40
56
51
49
Percent
Percent
60
45
37
20
17
33
11
10
11
8
20
6
5
4
4
1
0
0
HUN EST SVN CZE POL HRV LTU LVA SVK BGR ROM
BGR EST HUN CZE SVK HRV LVA POL ROM LTU SVN
Figure 2. Inward (on the left side) and outward (on the right side) FDI stock in CEECs’ in 2013
Source: [United Nations Conference on Trade and Development]
Although some CEECs’ could be vulnerable to FDI outflows there is substantial empirical evidence
that such investment are resilient during financial crises.
Conclusions
The degree of economic openness is very high in all CEECs’ (except Croatia, Poland, and Romania)
and CEECs’ are among the world’s most open economies. This imply that CEECs’ are very vulnerable to the
external shocks that can be transmitted through real channel. The financial systems of the CEECs’ are mostly
bank-based and dominated by foreign-owned commercial banks with relatively. These empirical results
suggest that CEECs’ are exposed to external shocks in the financial systems of neighbouring countries and
decisions of parent banks shareholders. The empirical results of this study show that Bulgaria, Estonia, and
Hungary had attracted more FDI comparing to other CEECs’ while Lithuania and Slovenia suffer from lack
of this form private capital flows and financial openness of CEECs’ in terms of FDI differs. Although some
CEECs’ could be vulnerable to FDI outflows there is substantial empirical evidence that such investment are
resilient during financial crises.
References
Anoruo, E., Ramchander, S., & Thiewes, H. (2007). Crisis, Contagion and Cross-Border Effects: Evidence from the
Latin American Closed-End Fund Market. Global Finance Journal, 2007, 17, 403-418.
Bae, K, Karolyi, A., & Stulz, R. (2003). A New Approach to Measuring Financial Contagion. Review of Financial
Studies, 2003, 16 (3), 717-763.
Beirne, J., & Gieck, J. (2012). Interdependence and Contagion in Global Asset Markets. European Central Bank
Working Paper No. 1480.
Bekaert, G., Ehrmann, M., Fratzscher, M., & Mehl, A. (2011). Global Crises and Equity Market Contagion. ECB
Working Paper Series No. 1381.
Bekaert, G., Harvey, C.R., & Ng, A. (2005). Market Integration and Contagion. The Journal of Business, 2005, 78(1),
39-70.
Caramazza, F., Ricci, L., & Salgado, R. (2004). International Financial Contagion in Currency Crises. Journal of
International Money and Finance, 2004, 23, 51-70.
Corsetti, G., Pericoli, M., & Sbracia, M. (2005). Some Contagion, Some Interdependence: More Pitfalls in Tests of
Financial Contagion. Journal of International Money and Finance, 2005, 24(8), 1177-1199.
Dadush, U., Dasgupta, D., & Ratha, D. (2000). The Role of Short-Term Debt in Recent Crises. Finance &
Development, 37, 54-57.
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Degryse, H., Elahi, M.A., & Penas, M.F. (2010). Cross-Border Exposures and Financial Contagion. International
Review of Finance, 2010, 10, 209-240.
Dornbusch, R., Park, Y.C., & Claessens, S. (2000). Contagion: Understanding How It Spreads. The World Bank
Research Observer, 2000, 15 (2), 177-197.
Fazio, G. (2007). Extreme Interdependence and Extreme Contagion between Emerging Markets. Journal of
International Money and Finance, 2007, 26, 1261-1291.
Forbes, K., & Rigobon, R. (2002). No Contagion, Only Interdependence: Measuring Stock Market Co-Movements.
Journal of Finance, 2002, 57 (5), 2223-2261.
Halac, M., Schmukler, S., & Zoido-Lobaton, P. (2006). Financial Globalization, Crises, and Contagion. In International
Macroeconomics: Recent Developments, Amalia Morales (Ed.), p. 207-225, Nova Science Publishers.
Hernandez, L.F., & Valdes, R.O. (2001). What Drives Contagion: Trade, Neighborhood, or Financial Links?
International Review of Financial Analysis, 2001, 10(3), 203-218.
Lipsey, R.E. (2001). Foreign Direct Investors in Three Financial Crises. NBER Working Paper No. 8084.
Loungani, P., & Razin, A. (2001). How Beneficial Is Foreign Direct Investment for Developing Countries? Finance &
Development, 2001, 38 (2).
Mendoza, E.G., & Quadrini, V. (2010). Financial Globalization, Financial Crises and Contagion. Journal of Monetary
Economics, 2010, 57(1), 24-39.
Pritsker, M. (2001). The Channels for Financial Contagion. In International Financial Contagion edited by S. Claessens
and K. J. Forbes. Springer, 2001, 67-95.
Rose, A.K., & Spiegel, M.M. (2010). Cross-Country Causes and Consequences of the 2008 Crisis: International
Linkages and American Exposure. Pacific Economic Review, 2010, 15(3), 340-363.
Rose, A.K., & Spiegel, M.M. (2012). Cross-Country Causes and Consequences of the 2008 Crisis: Early Warning.
Japan and the World Economy, 2012, 24, 1-16.
Tressel, T. (2010). Financial Contagion through Bank Deleveraging: Stylized Facts and Simulations Applied to the
Financial Crisis. IMF Working Paper No. WP/10/236, 2010, 1-38.
Acknowledgement
This research was funded by a grant (No. MIP-016/2015) from the Research Council of Lithuania.
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Theoretical Aspects of Cross-Border Contagion Risk: Risk Definition,
Transmission Channels and Systemic Events (Shocks)
Vilma Deltuvaitė
Kaunas University of Technology, Lithuania, vilma.deltuvaite@ktu.lt
Abstract
Most policymakers and government officials prefer the broader definition of contagion that captures
the vulnerability of one country to events that occur in other countries regardless the causes of contagion
and the type of linkages existing between countries. However, there is no theoretical or empirical
definition on which scientists agree. Most scientists agree that when two economies are located in
separate geographic regions and have no direct real or financial linkages, the propagation of a systemic
event (shock) from one country to another is contagion. However, there is some disagreement on whether
the term contagion applies to the transmission of a systemic event (shock) between two countries that are
closely related through real or financial linkages during tranquil periods as well as turmoil periods while
spread of a systemic event during a turmoil is just a continuation of the same cross-border linkages that
exists during more tranquil periods. Therefore, the purpose of this paper – to summarize different
concepts of contagion and distinguish the main types of contagion, to identify the main contagion
transmission channels and systemic events that cause the propagation of contagion. The analysis of the
scientific literature allows to distinguish two types of cross-border contagion risk. First, cross-border
contagion risk – a risk occurrence in one country caused by a shock in another country when these
countries have direct linkages. Second, cross-border contagion risk – a risk occurrence in one country
caused by a shock in another country when no direct linkages exists between these countries. The main
transmission channels of cross-border contagion risk are: real channel, financial channel, and financial
markets channel. The most common systemic events (shocks) that cause the occurrence of cross-border
contagion risk are: GDP shock, exchange/interest rate shock, price deviation (equity, real estate, and
credit), fiscal shock, foreign currency depreciation, changes in terms of trade and commodity prices.
Keywords: cross-border contagion risk, risk transmission channels, systemic events
Introduction
The scientific literature provides many definitions of contagion, however, there is no theoretical or
empirical definition on which scientists agree. Most economists agree that when two economies are located
in separate geographic regions and have no direct real or financial linkages, the propagation of a systemic
event (shock) from one country to another is contagion. However, there is some disagreement on whether the
term contagion applies to the transmission of a systemic event (shock) between two countries that are closely
related through real or financial linkages during tranquil periods as well as turmoil periods while spread of a
systemic event during a turmoil is just a continuation of the same cross-border linkages that exists during
more tranquil periods. Claessens & Forbes (2004) note that most policymakers and government officials
prefer the broader definition of contagion that captures the vulnerability of one country to events that occur
in other countries regardless the causes of contagion and the type of linkages existing between countries.
Therefore, the purpose of this paper – to summarize different concepts of contagion and distinguish the main
types of contagion, to identify the main contagion transmission channels and systemic events that cause the
propagation of contagion.
While the type of this article is theoretical the following research had been used: the systemic, logical
and comparative analysis of the scientific literature.
Findings/Results
There are many definitions of contagion in the scientific literature, however, there is no theoretical or
empirical definition on which scientists agree. Pritsker (2001), Halac et al. (2006) distinguish narrow
definition of contagion: “a shock in one market or country that is transmitted to another market or country,
but is not related to fundamentals” as well a broad definition of contagion: “contagion occurs when a shock
to one or a group of markets, countries, or institutions spread to other markets, or countries, or institutions”.
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Forbes & Rigobon (2001), Claessens & Forbes (2004), Li (2009), De Castro Miranda et al. (2012)
distinguish two definitions of contagion. They argue that when two economies are located in separate
geographic regions, have very different structures, and have virtually no direct linkages through channels
such as trade, the propagation of a shock from one to another is contagion. While a significant increase in
cross-market linkages after a shock to an individual country is shift-contagion. Pericoli & Sbracia (2003)
summarized different definitions of contagion which are commonly used in the literature: (1) contagion is a
significant increase in the probability of a crisis in one country, conditional on a crisis occurring in another
country; (2) contagion occurs when volatility of asset prices spills over from the crisis country to other
countries; (3) contagion occurs when cross-country co-movements of asset prices cannot be explained by
fundamentals; (4) contagion is a significant increase in co-movements of prices and quantities across
markets, conditional on a crisis occurring in one market or group of markets; and (5) (shift-) contagion
occurs when the transmission channel intensifies or, more generally, changes after a shock in one market. In
summary, the following main definitions of cross-border contagion risk can be distinguished (see Fig. 1).
Cross-border contagion risk is defined as a risk that a shock will spill out from one country to
another when two economies are located in separate geographic regions and have no direct
linkages (trade, financial, etc.)
Pritsker (2001), Bunda et al. (2009), Bekaert et al. (2011), World Bank (2013)
Cross-border contagion risk is defined as a risk that enthusiasm for stocks in one
market brings about enthusiasm for stocks in other markets, regardless of the
evolution of market fundamentals
Karolyi & Stulz (1996), Bekaert et al. (2005)
Cross-border contagion risk is defined as a situation when the occurence of a
crisis in one country increases the probability of a crisis in other country
Eichengreen & Rose (1999), Kaminsky & Reinhart (1999), Khalid & Kawai (2003),
Claessens & Forbes (2004), Halac et al. (2006), Gravelle et al. (2006), Ribeiro & Hotta (2013)
Cross-border contagion risk is defined as a significant increase in cross-market
linkages after a shock to an individual country (or group of countries)
Dornbusch et al. (2000), Forbes & Rigobon (2001), Khan & Park (2009), Li (2009),
Gómez-Puig & Sosvilla-Rivero (2011), De Castro Miranda et al. (2012), WB (2013)
Cross-border contagion risk is defined as significant increases in cross-market comovements
Forbes & Rigobon (2002), Chiang et al. (2007)
Cross-border contagion risk is defined as a risk that a shock will spill out from one country to
another when two economies are located in the same geographic region, with many similarities
in terms of market structure, and with strong direct linkages through trade and finance
Pritsker (2001), Hernandez & Valdes (2001), Rose & Spiegel (2010)
Figure 1. The main general concepts of cross-border contagion risk
[Source: compiled by author, according to the sources mentioned in the figure]
Some scientists (Pritsker (2001), Kaminsky & Reinhart (2003), Bekaert et al. (2011), OECD (2012))
distinguish different types of cross-border contagion risk, for example, Pritsker (2001) differentiates rational
from irrational contagion, OECD (2012) – direct from indirect contagion, while Bekaert et al. (2011) –
global from domestic contagion. In summary, the following types of cross-border contagion risk are
recommended to use (see Fig. 2).
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Type II
Cross-border contagion
risk – a risk occurrence in
one country caused by a
shock in another country
when no direct linkages
exists between these
countries
Type I
Cross-border contagion
risk – a risk occurrence in
one country caused by a
shock in another country
when these countries have
direct linkages
Cross-border
contagion risk
Figure 2. The types of cross-border contagion risk
[Source: compiled by author]
Halac et al. (2006), Tressel (2010), Rose & Spiegel (2010, 2012) and international financial
institutions’ (World Bank, International Monetary Fund) experts distinguish the following cross-border
contagion risk transmission channels: real channel, financial channel, financial markets channel and political
channel. Real cross-border contagion risk transmission channel is the fundamental economic relationship
among economies, whereas, financial links that exist when two economies are connected through the
international financial system create financial cross-border contagion risk transmission channel. However,
even if real or financial links do not exist between two countries, herding behaviour by international
investors or panic in international financial markets can result cross-border contagion risk (financial markets
channel). The World Bank’s experts also distinguish political cross-border contagion risk transmission
channel that exists due the political relationships among countries. Forbes & Rigobon (2001), Li (2009)
distinguish two groups of channels in the international transmission of shocks: crisis-contingent and noncrisis-contingent channels. Crisis-contingent channels imply that transmission mechanisms change during a
crisis (contagion exists), and non-crisis-contingent channels imply that transmission mechanisms do not
change during both stable (contagion does not exist) and crisis periods. If cross-market linkages do not
change significantly during financial crises, then shocks are transmitted through non-crisis-contingent
channels (trade and financial sector linkages). Even if there is evidence of contagion, there are different
channels of transmission through which countries can be linked (see Fig. 3).
The main transmission channels of cross-border
contagion risk
Real channel
Financial channel
Financial markets
channel
Figure 3. The main transmission channels of cross-border contagion risk
Analysing the cross-border contagion risk, it is also important to distinguish different systemic events
that cause the occurrence of cross-border contagion risk. Systemic events are composed by two elements: (1)
the shock, which can be idiosyncratic, sector wide, regional, or systemic; and (2) the propagation (or
contagion) mechanism, which describes how the shock can propagate from one country or market to the
other. Pritsker (2001) states that there are three possibilities of how a shock can appear to spread between
countries: 1) a coincidence – two countries both get hit with independent shocks at the same time; 2) a
common global shock – both countries were exposed to the same global shock; 3) a contagion between two
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countries. Table 1 summarizes different types of systemic events (shocks) that cause the occurrence of crossborder contagion risk.
Table 1. Systemic events (shocks) that cause the occurrence of cross-border contagion risk
Author (year)
Pritsker (2001)
Pericoli & Sbracia (2003)
Cerutti et al. (2012)
Rebucci et al. (2012)
Blancher et al. (2013)
Systemic events (shocks)
There are two types of shocks that can be transmitted among economic units and
economies. The first type is intermediary-specific shocks. This is a shock that hits a
bank or non-bank financial market participant, but which is specific in its origin to that
bank or financial market participant. Intermediary-specific shocks should be viewed as
idiosyncratic to that intermediary. The second type of shocks is real shocks. A real
shock is a shock to the real sector of the economy. Real shocks include but are not
limited to “innovations” in technology, or a flow of information on the performance of
real or financial assets.
Changes in terms of trade and commodity prices are well-known examples of global
fundamental shocks affecting financial and exchange rate markets worldwide.
Scientists distinguish the risks originating from the asset side (e.g. credit, country, and
market risk) and the liability side (e.g. funding risk) of banks’ balance sheets, as well
as risks which arise from the interaction between the two sides (e.g. liquidity and/or
currency mismatches) as systemic events.
GDP shock
GDP shock (domestic/foreign), exchange/interest rate shock, price deviation (equity,
real estate, credit), fiscal shock, foreign currency depreciation
Dornbusch et al. (2000) argue that the causes of contagion can be divided into two categories. The first
category emphasizes spillovers that result from the normal interdependence among market economies. This
interdependence means that shocks, whether of a global or local nature, can be transmitted across countries
because of their real and financial linkages. The second category involves a financial crisis that is not linked
to observed changes in macroeconomic or other fundamentals but is solely the result of the behaviour of
investors or other financial agents. Under this definition, contagion arises when a co-movement occurs, even
when there are no global shocks and interdependence and fundamentals are not factors. A crisis in one
country may, for example, lead investors to withdraw their investments from many markets without taking
account of differences in economic fundamentals. This type of contagion is often said to be caused by
“irrational” phenomena, such as financial panics, herd behaviour, loss of confidence, and increased risk
aversion.
Conclusions
The analysis of the scientific literature allows to distinguish two types of cross-border contagion risk.
First, cross-border contagion risk – a risk occurrence in one country caused by a shock in another country
when these countries have direct linkages. Second, cross-border contagion risk – a risk occurrence in one
country caused by a shock in another country when no direct linkages exists between these countries. The
main transmission channels of cross-border contagion risk are: real channel, financial channel, and financial
markets channel. The most common systemic events (shocks) that cause the occurrence of cross-border
contagion risk are: GDP shock (domestic/foreign), exchange/interest rate shock, price deviation (equity, real
estate, and credit), fiscal shock, foreign currency depreciation, changes in terms of trade and commodity
prices.
References
Bekaert, G., Ehrmann, M., Fratzscher, M., & Mehl, A. (2011). Global Crises and Equity Market Contagion. ECB
Working Paper Series No. 1381.
Bekaert, G., Harvey, C.R., & Ng, A. (2005). Market Integration and Contagion. The Journal of Business, 2005, 78(1),
39-70.
Blancher, N., Mitra, S., Morsy, H., Otani, A., Severo, T., & Valderrama, L. (2013). Systemic Risk Monitoring
(“SysMo”) Toolkit – A User Guide. IMF Working Paper No. WP/13/168.
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Cerutti, E., Claessens, S., & McGuire, P. (2012). Systemic Risks in Global Banking: What Can Available Data Tell Us
and What More Data Are Needed? BIS Working Papers No 376, 1-26.
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organized by RBWC, DNB and WEF in Amsterdam on November 18-19.
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Markets. Central Bank of Brazil, Research Department, Working Papers Series 293.
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Contagion, Claessens, S., Forbes, K. (Ed), Kluwer Academic Publishers, Boston.
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Journal of Finance, 2002, 57 (5), 2223-2261.
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Dynamic Approach. IREA Working Papers 201116, University of Barcelona, Research Institute of Applied
Economics.
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Using a Multivariate VAR Model. Journal of Asian Economics, 14, 2003, 131-156.
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Acknowledgement
This research was funded by a grant (No. MIP-016/2015) from the Research Council of Lithuania.
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Main Problems of Increasing the Level of Innovation in Latvian Companies
Andris Deniņš
University of Latvia, Latvia, andris.denins@lu.lv
Abstract
Today innovation performance is a crucial determinant of competitiveness of companies and national
progress of countries. Innovation is a leading factor for increasing the efficiency of production in any
company. But despite the importance of innovation, many countries, including Latvia, are facing
difficulties in strengthening performance in this area. Indeed many countries have seen very little
improvement in innovation performance within last decade despite the new opportunities offered by
globalization, huge amount of results of completed scientific research and new technologies, especially
the information and communication technologies
The article presents results of the research. The main goal of the research was to conduct a
comprehensive evaluation of the level of innovation in Latvian companies. The author of the research
analysis the main reasons and economic aspects based on which companies have to be interested in
innovation.. The results of research discover close relationship between efficiency of production and
innovation, the main problems and obstacles of increasing the level of innovation facing the Latvian
companies as well.
Keywords: innovation, efficiency of production, competitiveness.
Introduction
Innovation policy development and its implementation are playing an increasing role in any company.
This policy covers a wide range of business and economic activity subjects (enterprises, scientific
institutions, consumers) and institutions (legal, legislative, financial and social). All these economic activity
subjects and institutions must actively cooperate in the production process sharing and making use of the
сompetitive advantages of companies. Innovation activity in a small economy such as the Latvian is the key
national economy’s development tool. The world's economically developed countries’ experience obviously
proves it. These are the countries where in recent years approximately 75% of the gross domestic product
growth is provided by implementation of wide range of innovation.
Unfortunately, the process of innovation implementation in Latvian companies is going very slowly.
By the index of innovation, Latvia presently is standing at the last positions through all the European Union
countries. That was the reason for providing the research with the goal- to set up the main problems of
increasing the level of innovation in Latvian companies
Qualitative and quantitative research methods were applied in the research – interviews and
questionaires of experts and top managers of Latvian companies, financial analysis of companies, as well as,
analysis of statistical data.
Findings/Results
The research was provided in three stages:
1. Research of motivation of Latvian entrepreneurs for implementation innovation in companies.
2. Setting the quantitative impact of innovation to financial achievements of companies.
3. Identification of main problems for increasing the level of innovation in Latvian companies.
The results of research show a small motivation of entrepreneurs in implementation of innovation in
their companies. Only 36% of entrepreneurs are interested in innovation.
Exist a close relationship between the level of innovation and efficiency of companies operation.
As bigger is the company, as tighter is this relationship.
The main problems and obstacles in the process of increasing the level of innovation of Latvian
companies were discovered:
1. No institutional approach to innovation.
2. Lack of knowledge of innovation for top managers and owners of companies.
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3. Shortage of finance for implementation of innovative technological and organizational
solutions in companies.
4. Slow commercialization of research results.
5. Weak cooperation between researchers and business community.
Conclusions
There are certain economic aspects which defined the necessity of companies to be innovative. First of
all, the competitiveness of companies very much depends on the level of innovation.
A close relationship between the level of innovation and efficiency of companies operation exists.
The Latvian companies are facing with the problems of implementation the innovation.
Current approach to innovation in Latvian companies is not capable of enhancing economic growth.
References
Adams, R, Bessant,J., Phelps, R. Innovation Management Measurement: review of International
Journal of
Management Reviews,Vol.8, No.1, p. 21-47, 2006.
.Burgelman R., Christensen C., Wheewright S. Strategic Management of Technology and
Innovatrion/ 5th
edition. – New York: Mc Graw- Hill, 2008.
Prajago,D.I., Ahmed P.K.. Relationship between innovation stimulus, innovation capacity and innovation performance,
R@D management, Vol.36, No.5, p. 499-515, 2006.
Tidd, J., Bessant, J. Managing Innovation, 4th edition, Chichester: Wiley, 2009.
Tushman,M.L., Anderson, P. Managing Strategic innovation and change, A collection of readings, Oxford University
Prerss, 2004.
Vuoda, O., Hameri, A.P. Mutually Benefiting Joint Innovation Process Between Industry and Big-Science,
Technovation, Vol. 26, p. 3-12, 2006.
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AirBaltic Case Based Analysis of Potential for Improving Employee
Engagement Levels in Latvia through Gamification
Daiga Ergle
University of Latvia, Latvia, daiga.ergle@airbaltic.lv
Abstract
In the past few years, gamification has emerged as a trend within the business and marketing sectors,
and has recently grabbed the attention of academics, educators and practitioners (Seaborn & Fels, 2015).
At this moment some of the most common applications of gamification are in the areas of employee
performance, innovation management, education, personal development and customer engagement
(2015).
According to a survey of Harvard business review (2013) engagement is by companies seen as a
factor most likely to bring success. This places engagement as a top 3 business priority for companies. Of
all factors that can drive success, reduce costs and increase revenue and growth, engagement is seen as a
key factor with a percentage of 71%.
In 2014 airBaltic Corporation introduced a gamified electronic platform with a purpose to increase its
employee engagement. Article looks into approach organization has been using, analyzes results,
advantages and drawbacks it has experienced, but mainly draws recommendations for the organization in
order to improve impact on employee engagement through gamification.
Keywords: Employee Engagement, Gamification, Human Resource Management
Introduction
In 2014 airBaltic Corporation introduced a gamified electronic platform, called Forecaster, with a
purpose to increase its employee engagement. Scope of the study was to look into approach organization has
been using, analyze results of implementing Forecaster, advantages and drawbacks organization has
experienced, but mainly to draw recommendations for the organization in order to improve impact on
employee engagement through gamification. Aim of this study was to draw learnings for other organizations
in Latvia that are concerned with improving their Employee Engagement levels.
Research was mainly done within the organization analyzing documents, survey reports and
procedures available internally, as well as interviewing employees and managers. Next to quantitative data
available from Employee surveys qualitative data was used to get a deeper understanding about the current
situation concerning employee engagement and Forecaster at airBaltic. Interviews were carried out with
those employees who were behind Forecaster, with the regular users of the game, as well as with non-users
to understand the reasons.
Theoretical background served the purpose to choose applicable definition of gamification and
employee engagement. It was a necessary step as gamification and employee engagement are constructs that
are being used with different definitions. Theoretical research also allowed to differentiate engagement with
the game from engagement with the company. Theoretical research helped to create conceptual framework,
which provided structure for further data collection within organization through deep dive interviews.
Theory provides for a deeper understanding of gamification and how employees can be engaged in
using Forecaster or other gamified electronic tool according to theory. Based on the theory, synthesis of a
conceptual framework is described with a step by step plan for designing a game like Forecaster.
Findings/Results
As a result of the research, Author develops the 8 steps model that is part of conceptual framework. It
is a model derived from different authors who have written about gamification. All authors highlighted
different steps which are important when creating gamification in an organizational setting. The first four
steps in the model, and also step 7, are derived from Deterding (Gamification: designing for motivation,
2012). In this article he explains some crucial steps that are used by consultants when designing
gamification. Aparicio (Analysis and application of gamification, 2012) confirms the first 3 steps that
Deterding proposes in his research. Step 5 and 6 are also derived from Aparicio et. Al. (2012). Step 8 which
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is the last step is about continually monitoring and improving the game itself. This last step is derived from
Robson et al. (2015), who mentioned importance of ongoing monitoring and adjustment of gamification
methods.
This 8 steps model is as follows:
1. Identify the overall business goal top management want to reach;
2. Identify the main objective of gamification: know the entity you want to gamify in order to reach
business goal
3. Identify the users: what’s in it for them, what motivates them to engage, what is their interest? Know
the stakeholders.
4. Identify context/culture in which the game will be used
5. Designing game and game mechanics: selecting game elements that engage user while accomplishing
the business objectives
6. Create a measurement plan to determine effectiveness and ROI
7. Implementation and communication plan
8. Constant monitoring effectiveness and added value of game: Keep adjusingt and improving the
gamification experience
Above model is useful and applicable for any organization looking into possibility to increase their
employee engagement levels through gamification at work.
Conclusions
Although Forecaster can have a significant impact and increase engagement this does not mean that it
is going to solve all engagement weaknesses. Therefore it is recommended to investigate other solutions that
address other causes for low engagement. Forecaster can potentially be a highly valuable tool in increasing
engagement. However Forecaster in its current form needs to be changed in order to have more impact on
employee engagement. Learnings from airBaltic experience are helpful for other organizations that look for
solutions to increase their Employee Engagement.
References
airBaltic Intranet. (2015, 5 13). about airBaltic. Retrieved from Intra.Airbaltic.com.
Aparicio, A., Vela, F., Sánchez, J., & Montes, J. (2012). Analysis and application of gamification. Elche, Alicante,
Spain.
Badgeville. (2015). Game Mechanics. Retrieved from Badgeville.com: https://badgeville.com/products/gamification
Bartle, R. (1996, August 28). HEARTS, CLUBS, DIAMONDS, SPADES: PLAYERS WHO SUIT MUDS . Colchester,
Essex, United Kingdom.
Bunchball.
(2015,
June
1).
Nitro
Gamification
Platform.
Retrieved
from
Bunchball.com:
http://www.bunchball.com/products/nitro
Cook, W. (2013). 5 reasons you can't ignore gamification. Newton: Inward Strategic Consulting.
Czikszentmihalyi, M. (1990). The psychology of optimal experience. New York: Harpen & Row.
Deterding, S. (2011). Situated motivational affordances of game elements: a conceptual model. Vancouver, Canada:
CHI 2011.
Deterding, S. (2012). Gamification: designing for motivation. Interactions, 14-17.
Deterding, S., Dixon, D., Khalad, R., & Nacke, L. (2011, September 28-30). From game design elements to
gamefulness: defining Gamification. Mindtrek.
Dixon, D. (2011). Player types and gamification. Vancouver: CHI.
Fogg, B. (2009). A behavior model for persuasive design. California: Persuasive Technology Lab, Stanford University.
Ghani, J., & Deshpande, S. (1994). Tasks characteristics and the experience of optimal flow in human-computer
interaction. The journal of psychology , 381-391.
Hamari, J., & Koivisto, J. (2013). Social motivations to use gamification: an empirical study of gamifying exercise.
Proceedings of the 21st European Conference on information systems. Utrecht.
Han, T., Chiang, H., & Chang, C. (2010). Employee participation in decision making, psychological ownership and
knowledge sharing: mediating role of organizational commitment in Taiwanese high-tech organizations. The
International Journal of Human Resource Management, 2218–2233, Vol. 21, No. 12.
Harvard business school analytical review. (2013). The impact of employee engagment on performance. London:
Harvard business review publisher.
Higgins, A. (2014, July 16). 3 Examples of gamification in the workplace. Retrieved from Concur.com:
https://www.concur.com/blog/en-us/3-examples-of-gamification-in-the-workplace
Huatari, K., & Hamari, J. (2012). Defining gamification – a service marketing perspective. Presented at MindTrek'12.
(pp. 17-22). Proceedings of the 16 the International Academic Mind Trek Conference.
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Institute of Employment Studies. (2004). Report Summary: The drivers of employee engagement. Retrieved July 7,
Robson, K., Plangger, K., Kietzmann, J., McCarthy, I., & Pitt, L. (2015). Is it al a game? Understanding the principles
of gamification. Elsevier.
Seaborn, K., & Fels, D. (2015). Gamification in theory and action: Asurvey. International Journal of Human-Computer
Studies, Vol. 74, P. 14-31.
Shayon, S. (2013b, June 13). Gamification with new aviation empire game. Retrieved from Brandchannel.com:
http://brandchannel.com/2013/06/13/klm-readies-full-on-social-gamification-with-new-aviation-empire-game/
Speckund. (2015). Gartner Hype Cycle of Emerging Technologies, Hypes und Trends für 2014 / 2015. Retrieved May
8, 2015, from speckund.ch: http://speckund.ch/2/gartner-hype-cycle-emerging-technologies-2014-2015/
TNS. (2015). airbaltic corporation TRI*M Employee Commitment Survey. Riga: TNS.
Werback, K. (2014). (Re)Defining Gamification: A Process Approach. Persuasive Technology: Lecture Notes in
Computer Science, pp 266-272.
Xu, Y. (2011). Literature review on web application gamification and analytics. Honolulu: Collaborative Software
Development Lab, University of Hawai.
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The impact of Stakeholders in Human Resource Training Projects
Inga Eriņa 1, Elīna Gaile-Sarkane 2
1
2
Riga Technical University, Latvia, inga.erina@rtu.lv
Riga Technical University, Latvia, elina.gaile-sarkane@rtu.lv
Abstract
The purpose of the paper is to create the evaluation model of stakeholders’ importance in human
resource training projects. To attain the papers purpose the literature review, content analysis, expert
survey and qualitative synthesis are used. The main results of study reveal that training participants
mostly consider the training projects’ appropriateness to own professional and personal interest. While
managers and training providers highly value the application of new knowledge, skills and attitudes
derived from training projects. Therefore, in order to generate stakeholders’ interest to human resource
training projects and to ensure the projects’ usefulness, the individual benefits of training and the
possibilities of learning application should be analysed and communicated for relevant stakeholder group.
In view of the fact that human resource training projects are primarily focused on improvement of
organisational performance, the congruence of training participants’ and their managers’ expectations
about such projects is significant.
Keywords: Stakeholder; Human resource; Training, Project; Evaluation
Introduction
Nowadays, the innovative approaches to human resource training should be applied to ensure
organisation with knowledgeable and skilful human resources. The fast “ageing” of knowledge and skills
make reasonable the development of short-term training as projects that are worked out for specific training
needs. To provide maximal benefits the training projects must incorporate interests of main stakeholders
groups.
The stakeholder theory, elaborated by Freeman (1984), has growing interest in various areas of
management. In project management literature, stakeholder research is viewed as complex and difficult, but
there are clear understandings that stakeholders have a key role in project implementation and performance
indicators.
In project management theory, the stakeholders are analysed in the context of innovation (e.g. Elias,
Cavana & Jackson, 2002), construction project management (e.g. Olander, 2007), information and
communication technology (e.g. Bailur, 2006) etc. However, there are a few studies devoted to the
application of stakeholder approach in management of human resource training projects. The theme of
stakeholder approach to training as such is popular in human resource development, but in the most of
studies, conducted in this area, the stakeholders are analysed in the context of training viewed as formative or
standardised process (e.g. Michalski & Cousins, 2000) or in the context of the certain model of training
evaluation (e.g. Nickols, 2005). Therefore, this paper is focused on exploration of stakeholders’ interests or
requirements in the different phases of the training project lifecycle, based on the theory of the project
lifecycle and the human resource training stages, and on the different, well-known models of training
evaluation.
The theoretical background of human resource training projects for stakeholders
In human resource management literature, human resource training is defined as the application of
formal processes to impart knowledge and help employee to acquire the skills necessary for them to perform
their jobs satisfactorily (e.g. Armstrong, 2009). The term “formal” in this and similar definitions of training
emphasizes the training that follows some designed form, contrary to informal training that does not have a
consistent form. The effective human resource training should be systematic, therefore some authors stress
that training is the systematic process by which employee learning is promoting (e.g. Latham, 1988).
There are some differences between human resource training process, system and project. A training
process produces results through work being done in the process, while a training system produces results
through the interaction of processes (Hoyle, 2009). Training process is uniform and regular, but training
project is more innovative, unique, with clear beginning and end states (Lidow, 2014). Therefore, training
projects are managed in distinctive way than standardised training in organisations.
To analyse the stakeholders’ importance in human resource training projects, Weiss’s and Wysocki’s
(1992) theory of project phase and Armstrong’s (2009) list of human resource training stages are linked up.
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Thus, a number of training stages as Establishing of learning needs, Defining of learning objectives,
Deciding on content, methods of delivery and on the location and facilities required, the budget and who
delivers the programme, Preparing information on the event relate to Project Planning phase. The stage of
Delivering the learning corresponds to Project Execution phase, and the stage of Evaluating the learning
corresponds to Project Monitoring and Control phase. Only phases of Project Initiation and Project Closure
have not analogic stages of human resource training what is conformable to meaning of project.
Since stakeholders involved in human resource training project consider various aspects of such
training opportunity, the models of training evaluation are screened out. After analysing of reviews on
training evaluation theme (e.g. Scofield, 2010; Zinovieff, 2008), the thirteen models were chosen for further
exploration to identify essential criteria of training evaluation to different groups of stakeholders.
In despite of analysed models’ conceptual (mainly between so-called “goal-oriented” and “systemoriented” evaluation models) and terminological differences, the similarities between models’ proposed
criteria were summarised. To summarise these similarities, the content analysis method was used, by which
the specific criteria of models were aggregated into thematic groups. As a result, the nine criteria groups are
highlight (see Fig. 1). The “Context” comprises aspects of training project referred to target group, training
necessity and training goals accordance with training needs of target group. The “Input” relates to such
aspects as required resources, number of trainees, project uniqueness, and appropriateness of training
content, form and methods to training goal. The “Process” consists of training project’s aspects characterised
the feedback, adjustment and attendance. The “Reaction” comprises aspects of trainees’ satisfaction with the
organisation of training and with the training in overall. The “Learning” includes aspects of direct results
from training, i.e. acquired knowledge, developed skills and changed attitudes. The “Application” refers to
aspects described the application of training results in workplace, organizational support for such application,
and changes in trainees’ behaviour. The “Effect” consist of aspects expressed the changes in trainees’
professionalism level in general, in theirs work indicators as productivity, quality etc. and theirs job
satisfaction and motivation. The “Efficiency” includes aspects related to changes in financial and economic
indicators of organization. The last criteria group, “Societal impact”, consists of training aspects
characterised the social and economic impact of training on large social groups.
The identified criteria groups and specific criteria within these groups represent the more
comprehensive list of potentially significant aspects of training for different stakeholder groups. This list
enables training project managers to take into account the broader scope of stakeholders’ interests or
requirements that could facilitate the usefulness of project.
Figure 1. Aggregation of training evaluation criteria derived from training evaluation models
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In accordance with functional role of stakeholders in human resource training projects, there are such
stakeholder groups as trainers, participants, participant’s managers, finance managers, executive directors,
and personnel specialists (Allan, 2008). For detailed analysis of stakeholders’ importance in human resource
training projects the three stakeholder groups were selected – potential participants of training project
(participants), managers of potential participants (managers), and training specialists (providers).
To verify the importance of the criteria of human resource training projects for chosen group of
stakeholders the expert method was applied. The three expert groups were formed representing three
stakeholders’ groups using the opportunity sampling method. Initially each expert group comprise 10
experts, but because of unsatisfactory agreement level of experts was found from preliminary data analysis
the expert groups size was reduced. The experts stated different opinion from majority were eliminated.
Table 1 shows characteristics of expert groups.
All experts were contacted by face-to-face or e-mail and asked to fill questionnaire, respectively, to
rank a) training evaluation criteria group and b) specific criterion within criteria groups. The untied ranking
scale was exploited. Experts were offered to rank each of the scale’s item in order of importance, from the
“1” most important item through the “m” least important item.
Table 1. Characteristics of expert groups
Number (n)
Occupation
Years of experience in current
occupation
manager
specialist
less than 1
Participants
6
0
6
1
Managers
6
6
0
0
Providers
9
2
7
0
1-2
3-5
6 - 10
more than 10
0
3
1
1
0
3
2
1
2
5
2
0
To ensure data reliability the Kendall’s coefficient of concordance (W) and Chi-Square were
calculated for each questionnaire’s scale separately for each expert group, and to identify the importance of
criteria group or criterion the Moda (Mo) was detected. The interpretation of expert survey results is formed
on the data that show statistical significance.
Findings/Results
Table 2 demonstrates that there are average level of agreement among experts in majority of
questionnaire’s scales. It might be explained partly by the small size of expert groups and the request to rank
criteria towards training in general, without specifying training details. Nevertheless, there are certain
tendencies observed. The training participants have consensus on Context of training, while managers and
training providers – on Effect and Societal impact of training; managers have a similar views on importance
of learning results’ Application as well.
Table 2. Agreement level among experts
Participants
Managers
All
criteria
groups
Context
Input
Process
Reaction
Learning
Application
Effect
Societal
impact
Kendall’s
W
0,764*
0,778
0,448
0,361
0,444
0,000
0,361
0,028
0,000
ChiSquare
(df)
36,67(8)
9,33(2)
13,43(5)
4,33(2)
2,67(1)
0,00(2)
4,33(2)
0,33(2)
0,00(1)
Asymp.
Sig.
0,000**
0,009
0,020
0,115
0,102
1,000
0,115
0,846
1,000
Kendall’s
W
0,374
0,444
0,606
0,694
0,444
0,361
0,861
1,000
1,000
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ChiSquare
(df)
17,96(8)
5,33(2)
18,19(5)
8,33(2)
2,67(1)
4,33(2)
10,33(2)
12,0(2)
6,00(1)
Asymp.
Sig.
0,022
0,069
0,003
0,016
0,102
0,115
0,006
0,002
0,014
Kendall’s
W
0,761
0,160
0,571
0,333
0,012
0,444
0,481
0,753
1,000
ChiSquare
(df)
54,82(8)
2,89(2)
25,70(5)
6,00(2)
0,11 (1)
8,00(2)
8,67(2)
13,56(2)
9,00(1)
Asymp.
Sig.
0,000
0,236
0,000
0,050
0,739
0,018
0,013
0,001
0,003
*- figures in Bold indicate higher level of agreement
**- figures in Italic indicate that related level of agreement is statistically significant
Based on the results of expert survey the model of stakeholders’ importance in human resource
training projects is developed (see Fig. 2). The importance of projects’ criteria groups is presented for
participants and providers, but not for managers because relevant expert group did not demonstrate
sufficient level of agreement in order to draw strong conclusions.
The expert survey results reveal that the Context and the Input of training projects have higher
importance for training participants, while training providers value higher the Learning and the Application.
As least important criteria group participants assessed the Societal impact, and providers – the Reaction.
Managers have not strong agreement on priorities of criteria groups, but it should be noticed that rank “1”
was most given to the Application (n=3; mean rank = 3, that is most higher value in managers’ estimations)
and rank “9” to the Process (n=3).
Figure 2. Model of stakeholders’ importance in human resource training projects (1 = most important; 9 =
least important)
Looking through opinions of participants it could be detected that the most important criterion of
training projects within the Context is the eligibility of training goal to participants’ professional or personal
needs. Consequently, the importance of training necessity and the target group is assessed as second and
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third criterion. As for the Input, where participants have average level of agreement, there is a tendency to
value more the appropriateness of training content to training goal, the project uniqueness and the required
resources (financial, time etc.). The least important criterion in this criteria group is the size of training
group.
For training providers, in despite of their consensus on high importance of the Learning and
Application, there is some disagreement concerning significance of specific criteria. However, in both
criteria group is relative consonance about the most important criterion. Respectively, this is the level of
developed skills and the application of training results in workplace”.
Having rather low level of agreement on priorities of training projects’ criteria groups, managers share
the opinion that the most significant in the Application is the application of training results in workplace. The
second is the changes in trainees’ behaviour, and third is the organizational support. In other criteria groups
received lower estimation as the Effect (Mo = 6; mean rank = 3,5), the Societal impact” (Mo = 5; mean rank
= 5,7) and the Process (Mo = 9; mean rank = 7,5) there is consensus on following matters:
• the changes in trainees’ work indicators are most important than the changes in social indicators
(employee turnover, cohesion, reputation of organisation etc.) and the trainees’ benefits derived from
training;
• the economic benefits of human resource training projects for society are more important than the
social benefits;
• the trainees’ attendance is most important factor than the possibility to adjust training process and to
receive or give feedback in accordance with managers’ wishes.
It is worthy to notice that, within criteria group “Effect”, managers and providers have similar
viewpoint on importance of the changes in trainees’ work indicators, but providers value higher the trainees’
benefits than the changes in social indicators of organisations. As for the Societal impact of training project,
providers, unlike managers, consider as more important the social benefits.
Conclusions
The study results approve that training participants, providers and managers value differently the
various aspects of training projects. For participants the projects’ accordance with own professional and
personal interests is most important. Providers and managers highly evaluate the application of acquired
knowledge, developed skills and changed attitudes in workplace that might be viewed as positive factor for
successful cooperation.
From theoretical standpoint, the highlighted criteria of training project evaluation can contribute to
further development of the stakeholder value theories. To gain the more complete insight into the importance
of stakeholders in the different phases of the training project lifecycle, it remains for further research to
investigate the larger sample of stakeholder groups, analysed in this study, and other possible stakeholder
groups such as personnel specialists, inner and external sponsors of training, consumers. Because the
stakeholders’ priorities may differ for specific types of training, it is rationally to explore in future studies the
stakeholders’ preferences in the context of the certain type of training.
From practical consideration, the proposed model can be used by human resource professionals to
develop or choose the human resource training project in accordance with stakeholder approach in
organisation management
References
Allan, L. (2008). From training to enhanced workplace performance. Retrived from www.businessperform.com
Armstrong. M. (2009). Armstrong’s handbook of human resource management practice (11th ed.). London: Kogan
Page.
Bailur, S. (2006). Using stakeholder theory to analyse tele-centre projects. Information Technologies & International
Development, 3, 61-80.
Brinkerhoff, R. O. (1998). Clarifying and directing impact evaluation. In S. M. Brown & C. J. Seidner (Eds.),
Evaluating corporate training: Models and issues (pp. 141-166). Springer Netherlands.
Bushnell, D. S. (1990). Input, process, output: A model for evaluating training. Training and Development journal, 44,
41-43.
Donovan, P., & Townsend, J. (2004). Training evaluation pocketbook. Management Pocketbooks.
Elias, A. A., Cavana, R. Y., & Jackson, L. S. (2002). Stakeholder analysis for R&D project management. R&D
Management, 32, 301–310. doi: 10.1111/1467-9310.00262
Fitz-Enz, J. (1994). Yes... You can weigh training's value. Training, 31, 54-58.
Freeman, R. E.(1984). Strategic management: A stakeholder approach. Boston, MA: Pitman.
Guskey, T. R. (2000). Evaluating professional development. Thousand Oaks, CA: Corwin.
Hamblin, A. C. (1974). Evaluation and control of training. Industrial Training International, 9, 154-6.
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Hoyle, D. (2009). Systems and processes – is there a difference? Retrived from www.thecqi.org
Kaufman, R., & Keller, J. M. (1994). Levels of evaluation: beyond Kirkpatrick. Human Resource Development
Quarterly, 5, 371-380.
Kirkpatrick, D. L. (1987). Evaluation of training. In R. L. Craig (Eds.), Training and development handbook (pp.
301−319). New York: McGraw-Hill.
Kraiger, K. (2002). Decision-based evaluation. In K. Kraiger (Eds.), Creating, implementing, and maintaining effective
training and development: State-of-the-art lessons for practice (pp. 331–375). San Francisco, CA: Jossey-Bass.
Latham, G. P. (1988). Human resource training and development. Annual Review of Psychology, 39, 545−582.
Lidow, D. (2014). Start-up leadership: How savvy entrepreneurs turn their ideas into successful enterprises. San
Francisco, CA: Jossey-Bass.
Michalski, G. V., & Cousins, J. B. (2000). Differences in stakeholder perceptions about training evaluation: a concept
mapping/pattern matching investigation. Evaluation and Program Planning, 23, 211-230.
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Research and Development Expenditures and Economic Growth in EU:
a Panel Data Analysis
Rita Freimane1, Signe Balina2
1
2
University of Latvia, Latvia, rita.freimane@lu.lv
University of Latvia, Latvia, signe.balina@lu.lv
Abstract
The main purpose of the paper is to investigate the empirical relationship between research and
development (R&D) expenditures and economic growth in European Union member states during 20012013. The paper also analyses whether the impact of R&D investments on economic growth differs
between old and new EU members.
The empirical analysis is based on panel data model estimation. The sample was made from a statelevel panel data (EU countries) for time period 2001-2013. The model was built like a standard growth
equation model corresponding to the production function that adds R&D among other types of the capital.
For almost all various robustness checks performed (several sub-periods, dummies for crisis, subpanels, various control variables) results imply significant R&D coefficient. There is a difference in
estimates for old and new EU member states, for chosen period of analysis the convergence is observable,
but still significant between these two groups.
Keywords: Research and development expenditures, economic growth, panel data analysis.
Introduction
Theoretically, for achieving a long term economic growth the amount of investments in research and
development (R&D) is highly important. R&D plays major role in innovation, raising productivity and
increasing economic growth. (Romer, 1994) Therefore, theoretically R&D expenditures have a positive and
persistent effect on growth. However, empirically there are problems in effect’s measuring due to direct and
indirect effects of different types of R&D. That is the reason for numerous empirical studies, which differ
greatly in terms of aggregated level (companies, industries or countries), sources of data (time periods,
countries) and measurements of key variables (stocks, flows or differences). Therefore the results of these
studies are not directly comparable, however in general empirical results confirm theoretical assumptions.
The aim of the present paper is to investigate the role of research and development expenditures for
the economic growth of all EU countries and compare the results in two sub-groups: old and new member
states with application of panel data econometric modelling.
Numerous studies also deals with panel data analysis in R&D and growth relationship evaluation.
Results varies for different panels, time periods, variables and econometric methods. Useful literature review
about aggregate level effects of R&D was done by Svensson (2008). He compared results for developed and
developing countries. Main finding was that there is no link between R&D and growth in poor countries, but
significantly positive effect is observable in developed countries.
Silaghi et.al. (2014) analysed business and private R&D expenditures in Central and Eastern European
Countries (CEECs). A dynamic panel estimation results showed a statistically significant impact of business
R&D on economic growth in new EU member states. Public R&D was found to be with neutral effect: does
not stimulate growth, but also does not crowd out private R&D.
To our knowledge there are not panel data studies for all EU countries where dynamic panel results
(short run and long run effect estimates) are obtained.
To estimate the effect of R&D on the economic growth for EU countries, the panel study is applied.
The sample was made from a state level panel data for EU countries for time period 2001-2013. Time period
was selected according to data availability. The dynamic panel was estimated using Generalized Methods of
Moments (GMM), based on a production function approach. R&D was added among other types of capital in
a standard growth equation (see Goel and Ram, 1994).
Following Caselli et.al. (1996) recommendations, the first-differenced GMM estimator for the
empirical growth model was used. The short-term estimates reflect immediate changes in economic growth
due to a temporary increase in explanatory variable with assumption that other factors do not change. The
long-run coefficients were deduced from error correction form.
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For robustness of results, several specifications of the model are compared. First, results were
compared for different sub-periods. Different dummy variables were employed to test significance for
differences between these sub-periods. Special interest was paid to recent crisis period. Second, as panel of
EU countries make heterogeneous panel, results were compared between subpanels. Robustness of results
was checked also with running specifications with 3, 4 and 5 years moving averages.
Findings/Results
The results obtained in this research are consistent with theoretical and empirical findings done in
previous researches. Our results showed positive, statistically significant relationship between R&D
expenditures and GDP per capita in almost all specifications. Long run effects are higher than short run ones.
Estimates varied for different specifications. Results depend on countries’ development level.
Conclusions
Empirical analysis confirmed statistically significant impact of R&D expenditures on economic
growth in EU countries.
As descriptive statistics showed high heterogeneity within EU countries, in further analysis it should
be important to consider more factors that influence R&D effectiveness – such as institutional framework,
type of R&Ds, sectors of performance, quality of human capital etc.
References
Silaghi,M., Alexa, D., Jude, C., Litan, C.(2014). Do business and public sector research and development expenditures
contribute to economic growth in Central and Eastern Europe Countries? A dynamic panel estimation. Economic
Modelling, 2010, 108-119
Romer, P. (1994) The Origins of Endogenous Growth. Journal of Economic Perspectives, Vol.1, 3-22.
Goel, R.K., Ram. R. (1994) Research and development expenditures and economic growth: a cross – country study.
Economic Development and Cultural Change, Vol.42-2, 403-411.
Casseli, F., Esquivel, G., Lefort, F. (1996) Reopening the convergence debate: a new look at cross country growth
empirics. Journal of Economic Growth, Vol. 1. 363-389.
Svensson, R. (2008) Growth through Research and development – what does the research literature say? VINNOVA
REPORT 2008:19, 72 p.
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The Development Features of State-Owned Enterprises: the Case of Latvia
Dzintra Gasūne1, Andris Deniņš2
1
University of Latvia, Latvia, dzintra.gasune@inbox.lv
2
University of Latvia, Latvia, andris.denins@lu.lv
Abstract
This document presents results of research on the participation as state as an owner in enterprises.
Specifically, the research covers enterprises owned by the Latvian state during different periods of time,
reasons for their formation, their operational volume, for example, number of employees, and state capital
investments in them. Furthermore, the authors of the research analyse the main reasons and economic
aspects based on which state-owned enterprises were formed during the respective time period in Latvia,
and what problems and risks are identified in their leadership and management. A slight insight is also
given into enterprise privatization processes.
Keywords: state-owned enterprise, state-owned enterprise formation, state-owned enterprise
management
Introduction
Existence of state-owned enterprises has a relatively long history; states go through various stages both intensively forming enterprises, and privatizing them later. Moreover, each state during the respective
time period has significant goals and needs due to which it is necessary to form state-owned enterprises
because the owner of each enterprise sets outs its specific tasks and functions. In order to gain a better
understanding of the development of state-owned enterprises, the authors of the research set out the research
goal - to analyse the development of Latvian state-owned enterprises, reasons for their formation and to
assess their operational volumes during several time periods. The research covers the time period of 1920s1940s and the time after Latvia re-gained its independence.
Opinions on formation of state-owned enterprises and their operational results are relatively extensive,
for example, scientist Alesi (1983) stated that private enterprises comparatively more often implement
innovations for reducing costs, diversifying production than those owned by the state which indicates that the
operation of private enterprises will be more efficient, therefore other aspects for state forming enterprises
must be considered.
As indicated in the researches (Radygin, Simachev, and Entov, 2015), in some cases, the market is one
of intensive competition, and it achieves optimal results through competitive interaction between state and
private companies. In other cases, companies owned by the central government or by local authorities take
advantage of their privileges, exploit their monopoly position, and place technical-organizational,
administrative, and other barriers in the way of access to a particular branch of the economy.
A statement made by Bailey (2010) saying that just as the regulatory movement of the 1930s reflected
the view that market failure was pervasive, so the deregulation movement of the late 1970s and early 1980s
reflected the view that economic regulation of prices and entry was a government failure, generating
misallocations and inefficiencies - confirms that opinions change over time Also, the Latvian government
has admitted that involvement of public persons in business creates market distortion risk. The main
economically justified reason for a public person to take part in capital enterprises is to eliminate market
imperfections, thus, increasing public welfare.
Quantitative research methods were applied in the research - summarization and analysis of scientific
literature, normative acts and historical sources, as well as quantitative methods - analysis of statistical data.
Findings/Results
The Latvian state fully or partially owns a significant number of capital enterprises that have a big
influence in the nation economics of the state, i.e., according to financial data, 18.2% of the Latvian gross
domestic product at the end of 2012. Post May 2015 the state had 100% ownership in 66 capital enterprises,
the state had decisive influence in 5 capital enterprises, and in 46 capital enterprises the state had a
participation level of 50% or less. In total, the state directly participates in 117 capital enterprises (Ministry
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of Economics, 2015). These enterprises remained in state ownership or were newly-formed after end of
privatization. However, the situation is changing and it has been acknowledged that after a certain period of
time it is necessary to reassess state participation in capital enterprises and its compliance with the principles
of public person business operations.
Having analysed the summarized information, table 1 shows the possible reasons for forming state owned enterprises that also represent the respective economic situation in the re viewed period of time.
Table 1. Reasons for forming state-owned enterprises
•
•
•
•
•
Period of 1920s-1940s
enterprises taken over front he former
Russian government or German
occupation forces;
enterprises
formed
due
to
considerations of national economics,
and the purpose of these enterprises is
to serve public and state goals in
general;
enterprises formed for fiscal purposes;
enterprises formed due to lack of
private initiative;
enterprises formed for carrying out
narrower - special tasks
•
•
•
•
•
•
2015
if the market is not able to ensure
public interest implementation in the
relevant field;
in an industry where there is a natural
monopoly;
in a strategically relevant industry;
in a new industry;
in an industry where its infrastructure
development requires large capital
investment;
in an industry where in conformity
with the public interest it is necessary
to ensure higher quality standards
Both in the 20th and 21st century gaining profit were not the main argument for state as the owner in
forming enterprises. The reasons are hidden in the economic situation, for example, spirits monopoly, as well
as in the social aspect, for example, enterprises that operate in the branch of hospitals or culture where it is
impossible for a private owner to gain sufficient revenue for the development and operation of the enterprise.
Conclusions
The state as an owner must make decisions regarding extending, narrowing or retaining ownership
rights in enterprises with the consideration of the respective economic development period. Such decisions
must be justified and weighed out in order for the state to implement business activities in any branch. There
have been various periods in Latvia during which the state has even defined monopoly in individual business
branches, as well as carried out privatization of big enterprises for handing them over to private owners.
References
Alessi, L. De. (1983). Property Rights, Transaction Costs, and X-Efficiency: An Essay in Economic Theory. The
American Economic Review, 73(1), 64–81.
Aizsilnieks, A. (1968). History of Latvian Economic, 1914-1945. Daugava, Stockholm. Author. Retrieved from
http://gramatas.lndb.lv/periodika2-viewer/view/index-dev.html#issue:/g_001_0302015606|issueType:B
Bailey, E. (2010). Air-transportation deregulation. Better living through economics, Harvard University Press,
Cambridge, MA, 188–202.
Ministry of Economics of the Republic of Latvia. (2015). Report on the Economic Development of Latvia (ISSN 14074095). Riga, DC: Author. Retrieved from https://em.gov.lv/files/tautsaimniecibas_attistiba/zin/2015_jun_lv.pdf
Latvian Chamber of Commerce and Industry (1938). Materials of 1st Congress. Riga. 1 Author. Retrieved
fromhttp://gramatas.lndb.lv/periodika2-viewer/view/indexdev.html#panel:pp|issue:/g_001_0309093962|article:DIVL27|issueType:B
Radygin, A., Simachev, Y., & Entov, R. (2015). The state-owned company: “State failure” or “market failure”?.
Russian Journal of Economics, 1(1), 55–80.
State
Administration
Structure
Law.
(2015)
Retrieved
September
2,
2015,
from
http://likumi.lv/doc.php?id=63545&search=on
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Organizational Innovations in Crisis Management of Project-Based Enterprises
Eryk Głodziński1, Stanisław Marciniak2
Institute of Production Systems Organization, Warsaw University of Technology, Poland
1
e.glodzinski@wip.pw.edu.pl 2iosp@wip.pw.edu.pl
Abstract
Organizational innovations and crisis management have a lot in common. Crisis may come in many
various forms. It can be a result of economic slowdown or recession influencing industry, therefore some
of its organizations. However, firm disaster can be the result of wrong management decisions or
unexpected events. Each form of crisis has its own causes which influence the company in a number of
ways. The main objectives of the paper are to describe the nature of crisis management in project-based
enterprises and define the scope and role of organizational innovations in it. The conducted research
shows that the organizational innovations are the crucial elements of crisis response strategies. Applying
organizational innovations, the entity can gain short-term benefits because they aim at improving the
flexibility and adaptability of the company and the supervision of the running projects.
Keywords: organizational innovations, project-based enterprise, crisis management
Introduction
The main objectives of the paper are to describe the nature of crisis management in project-based
enterprises and characterize the scope and role of organizational innovations in it. The research subjects are
the entities that execute various projects for external client. It is the core business of the companies, main
part of operation activity. The examples of project-based organisations are: IT enterprises, construction
companies, shipyards, custom-made machinery manufacturers etc. The project-based entities have their own
peculiarities. They need particular approaches regarding organizational framework and supporting
management tools.
The studies of project-based organizations have been conducted by a number of researchers
(Söderlund, 2008, 41), however, there is a gap connected with the role of innovations in crisis management.
The issue is important because we can observe the increase of uncertainty in the environment. The
fluctuation of the economy becomes unpredictable and influences the organization in various ways causing
development or deterioration.
The assumption of the paper is the statement that the organizational innovations are the crucial
elements of crisis response strategies of project-based organizations and should be designed and
implemented at least since the crisis hit the entity.
In order to verify the presented assumption and gain the paper objectives the research was conducted
in following steps.
First, the influence of business cycle on the economic position of project-based companies (thereof
sustainability) and the fluctuation of innovation expenses (investments) in various types of entities were
analysed. The presented conclusions have been drawn on the basis of statistical analysis of correlation
between economic cycle and investment expenses that were conducted for Polish economy in years 20002014 (Marciniak et. al., 2015, 31-40), literature review, and indirect observation of research subjects since
2008.
Next, selected research findings in management literature connected with crisis management in
general and project-based enterprises were described and confronted with business practice. The analysis of
main determinants and means was conducted using the project-as-practice and traditional approach.
The results of literature review and findings from previous steps of the research were compared with
the selected examples (case studies) of crisis response strategies of project-based enterprises. The analysis of
crisis response strategies was conducted among construction companies (general contractors) operating in
Poland in years 2008-2014. In the study, own direct observation and information from management board
reports of research subjects was applied. Research sample was selected from well known in Poland general
contractors listed at the Warsaw Stock Exchange due to availability of the data and information.
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Findings/Results
The conducted macro analysis of changes in GDP and investment expenses (Marciniak et. al., 2015)
shown the positive correlation between them. Decline in GDP influences decrease of company investments.
Project-based companies, that are executors of investments or providers of advertisements and consulting
services, are affected by the above mentioned changes in a different scope and time, depending on
organization type.
Some project-based enterprises (e.g construction or machinery manufacturers) experience the
economic crisis partly with some delays but mostly with double force (more than non-project organisations).
The above mentioned time-lags are connected mainly with long duration of PLC (Project Life Cycle) that
dominate in object investments. Lack of new investments influences predominantly the company backlog for
next years and decreases the amount of turnover in the future. In such conditions managers have to prepare
the company for worse time by introducing crisis management (Mallak, Kurstedt, 1997, 14-21), thereof
design and implement organizational innovations.
The macroeconomic analysis of changes in GDP and innovation expenses in Poland, conducted
between 2008 and 2014, shown the slowdown of economy and construction industry (Głodziński, 2015). A
lot of enterprises cancelled, reduced, or postponed the object investment. The number of company
bankruptcies increased significantly. In the above mentioned conditions the entities applied crisis
management concept that consisted of operational and strategic actions, mainly connected with
organizational innovations. The operational ones improved the economic situation of the organization in
short-period of time. They had to protect against farther company deterioration (transition to next crisis
stages). Strategic actions implemented the changes that ensure sustainability in new environment in a longperiod of time.
Conclusions
The study confirmed that organizational innovations play a vital role in crisis management of projectbased organizations. In order to avoid further company deterioration the managers should implement
recovery actions that can generate fast feedback. It can be done by implementing the changes in daily work
of the employee through innovations in company procedures, working methods, and further evaluation of
organization culture and framework.
The study showed that the project-based organizations may be affected by economic crisis much
deeper than other types of entities. Project –based organizations archive profits from new investments which
are very often canceled, reduced or postponed by customers. By doing these the customers want to increase
short-term efficiency. As a result, project-based organizations can be affected.
The study pointed that, in crisis management, supported project team services (departments of:
controlling, risk management, technics etc.) are very important. In first stages of company crisis more
attention should be focused on: acquisition stage (responsibility of tender departments), supervision of
project execution (responsibility of risk management and controlling departments), and more efficient
cooperation with the client (the need of improvement in contract administration).
References
Głodziński, E. (2015). How did the project-based companies defend against impact of economic crisis? The case studies
of general contractors in Poland, Proceedings of 6th Conference on Construction and Project Management,
Singapore.
Mallack, L. A. & Kurstedt, H. A. (1997) Planning for crises in project management. Project Management Journal, 28
(2), 14-21
Marciniak, S., Wiszniewski, W. & Głodziński, E. (2015) Zarządzanie innowacjami a cykle gospodarcze. Wyzwania,
relacja, metody, Warsaw: Publishing House of Warsaw University of Technology.
Söderlund, J. (2008) Competence Dynamics and Learning Processes in Project-Based Firms: Shifting, Adapting and
Lavering. International Journal of Innovation Management, 12 (1), 41-67.
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Trends of Social and Economic Development of Counties Municipalities in
Kurzeme Planning Region
Svetlana Ivanova1
Riga Technical University, Latvia, Svetlana.Ivanova_1@rtu.lv
Abstract
Sustainable development of country is very closely linked to development of the regions, and directly
dependent on it. On the one hand, there can be positive synergy between regions in terms of social and
economic development. On the other hand, negative trends in one region can result in undesirable
processes in other regions. And, of course, there can be also competition between regions (e.g. for state
budget funding, private investment, human resources etc.). In Latvia, two levels of regions can be stated –
planning regions and municipalities (of cities and counties). Aim of the research – to assess the main
trends of social and economic development of counties municipalities in Kurzeme planning region. For
research, method of comparison, method of ranking and correlation analysis was made. For analysis,
information from Central Statistical Bureau of Latvia about counties in Kurzeme planning region was
used.
Keywords: socio-economic development, county municipality, gross wage, Kurzeme planning region.
Introduction
To ensure sustainable and balanced social and economic development of country, well-considered and
successful development of regions is critically important. Competitiveness of regions or counties, thus, can
be characterized likewise as competitiveness of country. Four attributes are: factor conditions, demand
conditions, related and supporting industries and firm strategy, structure and rivalry. (Porter, 1990) Also,
mutual interaction of regions or counties must be taken into account – it can be with positive or negative
result (i.e. synergy or competition).
For Latvia and its regions, there are many challenges for development, as there are negative or
unwanted trends in such very important indicators as number of population, structure of GDP, quality of life
and others. (National Development Plan of Latvia for 2014-2020) To some of regions and counties in Latvia,
these problems are especially topical. On the other hand, there are different approaches to evaluate
relationship between population change and sustainable development (Marsiglio, 2011), so demographic
situation in Latvia and regions cannot be seen as unambiguously poor, without thorough analysis.
Nevertheless, if we assume that there is positive correlation between number of inhabitants and economic
growth, reduction of population number is an unfavorable trend for sustainable development. Furthermore,
there are also changes in the age structure of population that can be essential threat to possibilities of
economic growth of region. (Kalniņa-Lukaševica, 2011)
Even if there are positive trends in social and economic situation, results must be interpreted carefully.
Main participants of economic development are inhabitants. If the results of growth benefits only small part
of population, it cannot be called as development. (Barānova, 2004)
To assess social and economic development trends in counties municipalities, several indicators was
used: number of population, population density, migration, demographic burden, gross wages and salaries,
number of enterprises. For analysis, comparison method was used – data of counties was compared with
average level of Kurzeme region and average indicator of Latvia. Also, method of ranking was used to
evaluate differences in situation of small, medium and big counties. By using correlation analysis, hypothesis
about interaction between social and economic situation was verified.
Findings/Results
Accordingly to the Catalog of state and local government positions, in Kurzeme planning region are 3
big, 6 medium and 9 small county municipalities. Counties are different – by population number, population
density, migration indicators, demographic burden, gross wages and salaries, number of enterprises.
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Average monthly gross wages and
salaries, EUR
Small municipalities
Medium municipalities
Big municipalities
Figure 1. Average monthly gross wages and salaries in Kurzeme planning region’s counties during period
2009 – 2014, EUR
According to figure, size of county can be considered as the factor that influences population income.
But this can be seen also contrary – number of population in county depends on the prosperity of population.
There is also correlation between changes in population number and population income.
Conclusions
Kurzeme planning region, in context of Latvia, is average development level region. If compared to
other planning regions, Kurzeme region is 3rd best (such indicators as household income, unemployment
level, GDP per capita and other was used). If compared to average indicators of Latvia, situation in Kurzeme
region is worse. As can be seen from analysis, indicators that characterizes Kurzeme region, are formed from
very different situation of counties municipalities.
Differences in population income is correlated to (or influences) decrease of population number in
counties. On the other hand, decrease of population number contribute to decrease of economic activity in
county and so – to decrease of wages. In long term perspective, these processes reinforce each other and
thereby creates very topical problem in Kurzeme region and Latvia – empty and inactive countryside.
References
Barānova D. Ekonomikas attīstības paātrināšanas iespējas Latvijā// Latvijas Universitātes raksti 671. sējums
Ekonomika, 2004. gads, III, 16. – 25. lpp.
Cross – Sectoral Coordination Centre. National Development Plan of Latvia for 2014-2020.
http://www.pkc.gov.lv/images/NAP2020%20dokumenti/NDP2020_English_Final__.pdf
Kalniņa-Lukaševica Z. How to respond to demographic and economic challenges in shrinking regions? Case study of
Latgale region// Human Resources: The Main Factor of Regional Development , 2011, Issue 5, p. 146 – 156
Marsiglio S. On the relationship between population change and sustainable development// Research in economics,
Volume 65, Issue 4, December 2011, p. 353-364
Porter M. E. The competitive advantage of nations// Harvard Business Review, March-April 1990, p. 71 – 91
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The Role of Management of Satellite Towns in Promoting Well-being for
Citizens: Case of Latvia
Inga Jēkabsone1, Biruta Sloka2
1
University of Latvia, Latvia, jekabsone_inga@inbox.lv
2
University of Latvia, Latvia, biruta.sloka@lu.lv
Abstract
The aim of the paper is to substantiate the importance of management of satellite towns in promoting
well-being for citizens in Latvia. To achieve the aim, such qualitative and quantitative methods of
research as comparing, grouping, graphical analysis, focus group methods would be used. The main
results and findings of the paper: the identification of Latvian satellite towns; the qualitative and
quantitative analysis of them; the provision of principles for the management of satellite towns.
Keywords: well-being, satellite towns, citizens’ involvement.
Introduction
Tracing back to the middle of 18th century, Industrial Revolution had brought unprecedented
economic growth and urbanization development. However, conflicts of urban spatial structure became
increasingly acute and urban diseases were widespread after Industrial Revolution. In this context, some
pioneers who had idea of reforms had begun their attempt of building “ideal city” with “Satellite Cities”
(Mengyi, 2011).
The concept of “Satellite Cities” was introduced by Graham Romeyn Taylor in 1915. At that time,
factories were proposing to move to satellite cities which should be built in suburbs of big cities to relieve
excessive concentration of metropolis downtown (Taylor, 1915). In the 1924 Amsterdam International City
Planning Conference, the issue of planning the metropolis was the central topic of debate. In the Conference,
a model of the core city ringed by a green belt and surrounded by satellite towns linked by a radial and loop
rail system was highly influential (Wang & Lu, 2006).
Satellite towns, is a kind of small or media-sized settlement located around a large metropolis. It is
physically separated from the main urban area, but economically they are an integral part of a large urban
body (Golany, 1976; Kasarda, 1985). Some elements of satellite towns have been identified by many
scholars as follows: Firstly, the distance of a satellite town from a major urban area differs due to availability
of land, accessibility, transportation network etc., but the distance should be close enough to justify both a
rapid commuting distance and the open space needed to separate the town settlements. Also, it should be far
enough to give a physical identity to the satellite town. Secondly, satellite towns should be totally economic
dependent on the neighbouring urban centre where the majority of satellite town residents find their jobs
(Feng et al., 2008). Thirdly, an independent local government should present and run the town to gives it
identity so that it is different from normal urban suburb (Golany, 1976).
In case of Latvia, the municipalities of Riga agglomeration like Olaine, Salaspils, Sigulda, Ogre etc.
could be considered as the satellite towns, because of the intensive pull migration and connections with
capital city. The impact area of Rīga is shown in Fig.1.
As significant number of citizens lives in these towns, it is important to ensure well-being of the
citizens taking into account particularities like pull migration, use of specific services, low local patriotism
and week communication between municipality and society. In this case there should be revised the
management system of the municipality which is aimed to improvement of the dialogue between local
authorities and citizens.
The aim of the paper is to substantiate the importance of management of satellite towns in promoting
the well-being for citizens in Latvia.
The main tasks of the paper:
• to provide the definition and description of satellite town in Latvia;
• to analyse the different indicators of Latvian satellite towns;
• to describe the management practice of Latvian satellite town in context of promoting well-being for
citizens;
• to present the results of research conducted in satellite town (Salaspils) on improvement the
management of the municipality in context of promoting well-being through citizens involvement.
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Figure 1. The impact area of Rīga (State Regional Development Agency, 2010)
To achieve the aim the qualitative and quantitative methods of research like comparing, grouping,
graphical analysis, scientific literature studies, several stages of focus group discussions, statistical data
analysis, SPIRAL methodology would be used.
Findings/Results
During the research, the satellite towns of Latvia were defined based on different criteria. Further, the
qualitative and quantitative analysis was conducted to compare the objective well-being in these cities. In
addition, on a basis of research on subjective well-being indicators conducted in one of the satellite towns of
Latvia (Salaspils) the management principles would be formulated aiming to improve the well-being of
satellite town citizens.
Conclusions
The role of the management of satellite towns in promoting the well-being has been increasing due to
increasing number of citizens who prefer to live there instead of the centre of agglomeration. In addition,
local authorities have autonomous functions, intensive informative links and wide range of available
economic and social instruments to substantially affect the well-being level of society. In this process the
dialogue with citizens, as well as the involvement of them in decision making process is crucial.
References
Feng, J., Zhou, Y., & Wu, F. (2008). New trends of suburbanization in Beijing since 1990: from government-led to
market-oriented. Regional Studies, 42(01), 83-99.
Golany, G. (1976). New-town planning : principles and practice. New York: Wiley.
Kasarda, J. (1985). Urban change and minority opportunities: The new urban reality (pp. 33-67). Washigton DC:
Brookings Institution.
Mengyi, C. (2011). From Satellite Towns to New Towns, Evolution and Transformation of Urban Spatial Structure in
Chinese Metropolises. Dissertation, the University of Hong Kong, 85 p. Retrieved from
http://hub.hku.hk/bitstream/10722/144204/3/FullText.pdf?accept=1
State Regional Development Agency. (2010). The description of municipalities by characteristics influencing
development. Retrieved from http://www.vraa.gov.lv/uploads/petnieciba/RAL-2009-6-7.pdf
Taylor, G. R. (1915). Satellite Cities: A Study of Industrial Suburbs. New York and London: D. Appleton and
Company.
Wang, Y., & Lu, L. (2006). From satellite towns to new towns, development and transformation of Beijing urban spatial
structure (in Chinese). Beijing Planning Review, 5, 19-22.
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Estimation of EU State’s Innovation Activity Using Benchmarking
Vitālijs Jurēnoks1, Vladimirs Jansons2
1
Riga Technical University, Latvia, vitalijs.jurenoks@rtu.lv
2
Riga Technical University, Latvia, vladjans@latnet.lv
Abstract
Development of innovation activity is a determinative factor of economic development of any state.
In each country the strategic plan of innovative development of economy is carried out. The high-tech
component has become a crucial source of competitiveness and value added in practically all the branches
of national economy. Enterprises focusing on high technologies and application of high technologies in
industries can develop only in an innovations-friendly economic environment supporting innovative
efforts, i.e., in a country that is consistently implementing a national policy for developing innovations
and having an effectively operating national innovations system. Innovation plays a role in the
international competitiveness of nations. Benchmarking is an effective method for comparison of activity
of technological, production or social and economic system with practice of others the most successful
systems. The analysis of methods and results of activity of the compared systems is made on uniform
indicators characterizing methods of management of the compared systems and results of their activity.
Keywords: innovation activity, state economic development, benchmarking.
Introduction
Benchmarking is a tool for improving your business process, to measuring your own performance for
each variable and comparing the results, to determine the gap between your firm and the best-in-class
examples and to implement programs and actions for achieving the best result. The paper deals with the
process of estimation of EU State’s innovation activity using benchmarking. The objective of benchmarking
is to understand and evaluate the current position of innovation activity EU states in relation to "best
practice" and to identify areas and means of performance improvement. Innovative activity of the European
Union states is measured through SII (Summary Innovative Index) and BI (Benchmarking Index).
Measurement framework of the Innovation Union Scoreboard is shown in the Table 1.
Table 1. Measurement framework of the Innovation Union Scoreboard
Groups of
innovation
indicators
BI
Enablers, (A)
Firm activities, (B)
Output, (C)
Subgroups in the group
Human resources
Open, excellent,
attractive research systems
Finance and support
Firm investments
Linkages & entrepreneurship
Intellectual assets
Innovators
Economic effect
Number of indicators
in the subgroup
3
3
2
2
3
4
3
5
The aim of investigation consists in analysing and comparing the changes which happened in
development of innovative activity in Europe Union and Latvia for the period till 2015.
The process of investigation of economic systems using benchmarking method should be based on an
explicit set of categories or an organizing framework that links vision and goals to indicators and assessment
criteria. It is important to link investigation goals to movements of a small number of indicators. Single
indicators can rarely be linked to any specific sustainability goal. Linking the use of deterministic and
qualitative modelling approaches is a useful means for projecting indicators and important interdependences
between factors. Indicators modelling work is most suited to identifying main linkages and implications on
large systems. Greater focus is required on modelling frameworks that can use incomplete data sets or
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qualitative information. The scheme of benchmarking process is shown in the Figure 1. Types of
benchmarking are shown in the Figure 2.
Performance or
Competitive
Benchmarking
Benchmarking Process
Performance or
Competitive
Benchmarking
Benchmarking Index
Performance or
Competitive
Benchmarking
Types of Benchmarking
Performance or
Competitive
Benchmarking
Strategic
Benchmarking
Performance or
Competitive
Benchmarking
Figure 1. The scheme of benchmarking process Figure 2. Types of benchmarking
For benchmarking realization calculation we denoted the free main sets of innovation indicators by
letters A (Enablers), B (Firm activities) and C (Outputs). Indicators of benchmarking in every set A, B and C
are xij(A), yij(B) and zij(C). Denote the leader innovation indicators as xij(A, leader), yij(B, leader) and zij(C, leader). Now
we can compare our indicators with the leader indicators using traditional comparing method and receive
benchmarking index (BI) (see Eq. 1).
=
BI
∑∑ w(
ij
A)
xij( ) − xij(
A
A, leader )
+ wij(
B)
yij( ) − yij(
B
B , leader )
+ wij(
B)
zij( ) − zij(
B
B , leader )
(1)
where wij(A), wij(B), wij(C)
weight coefficients for every indicators group. Weight coefficients are
appointed by the expert commission which before it is checked for competence. We can also evaluate index
BI independently for group A, B and C and get information about possible improvement of indicators in
every group.
Conclusions
Benchmarking using at research of the estimation of EU State’s innovation activity as a complex
social and economic system, allows to compare values of the parameters (indexes) describing activity of
studied systems. Tendencies of change of parameters (indexes) of one system can be accepted by the best as
an example for development of other systems. Research of tendencies of change of parameters (indexes) of
development of the best representative in certain cluster, allows to develop and realize the program of the
actions directed on perfection of functioning of investigated social and economic system, and also constantly
to analyze the processes occurring in investigated system, comparing the given changes with the changes
occurring in reference system. Besides there is an opportunity of research of influence of social (qualitative)
parameters (indexes) on change of complex parameters of economic activities social and economic systems,
in particular on character of change of EU state’s GDP.
References
Jurenoks, V., Didenko, K., Jansons, V., 2009, Innovation Modeling Methods Using for Investigation of Behaviour of
Real Socio-Economical Systems. XI International Scientific Conference “Management and Sustainable
Development” Yundola, Bulgaria, 4-8.
Jurenoks, V., Jansons, V., 2006, Innovation Process Development in Latvia. The 14-th International Scientific
Conference Enterprise management: Diagnostics. Strategy, Efficiency, Yundola, Bulgaria, 339 - 344.
Ziņojums par Latvijas Tautsaimniecības attīstību Ministry of Economics, jūnijs 2015, Republic of Latvia. Riga, 162.
European Innovation Scoreboard 2015. Printed in Belgium, http://ec.europa.eu/growth/industry/innovation/factsfigures/scoreboards/files/ius-2015_en.pdf
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Where to Invest? A Post-Crisis Case of Latvia
Jurijs Kuzņecovs, Aleksandrs Safonovs2
1,2
BA School of Business and Finance, Latvia, yk95yk95@gmail.com
Abstract
Considering the importance of investments in the post-crisis economy of a developing state, this paper
endeavours to identify the most promising industries and companies that can attract domestic and foreign
investors to support Latvian economy. To succeed with this task, this study observes financial ratios of
the most successful 39 companies among 101 highly-profitable enterprises that operate in Latvia. In total,
it covers the performance of the 13 major industries during 2011-2013. The observed financial statistics
includes the next variables: the net profit, net profit margin, average assets value, ROA, turnover, ROE,
equity capital, and EBITDA. It is presumed that financial ratios can be fully comprehended only while
being viewed together with the major macroeconomic factors of the state. The findings reveal that
'Municipal Services' industry is the most attractive in terms of investments. It complies with the social
issues of high poverty level and polarization that limits the growth the industries that provide goods and
services for an average citizen. At the same time, the cheapening of oil creates further favorable
conditions for 'Municipal Services' as well as provides better possibilities for businesses from other
industries.
Keywords: investments, post-crisis, Latvian economy, ratios, financial statistics, municipal services.
Introduction
As it is known, after the collapse of the Soviet Union Latvia was enjoying the fast economic growth.
To a great extent, the success was stipulated by the geopolitical factors. In particular, Latvia benefited from
productive relations with Russia and at the same time, was supported by the EU, which it joined in 2004.
Despite the overall tendency economic growth, Latvia faced a number of challenges. Firstly, during the postindependence period the domestic economy of this state was negatively affected when total cumulative
output declined for 50% (Vanags et al., 1999). As a result, it prevented Latvia from becoming a member of
the group of countries that experienced “high contractions” (Mundell, 1997). The next three years displayed
the positive tendency. Entering 1995 Latvia was expected to demonstrate the first (after the postindependence period) positive Gross Domestic Product index (GDP), but the collapse of Banka Baltija in
1995 overturned the positive tendency (Lace, 2004). Thereafter, Latvia has both positive and negative
economic trends, but in general, the country's economy continued to grow creating a promising financial
environment. Unfortunately, in 2008, along with other countries, Latvia faced the global economic crisis.
As a result, the EU has been experiencing the negative GDP growth inclusively up to 2013. In these
circumstances, Latvia suffered from domestic financial crisis because its economy was greatly depended on
the offshore financial structures and investments, whereas, due to global economic crisis, the capital inflow
was stopped. Striving to prevent the deterioration of the economic situation Latvia conducted improvements
in banking and financial operations. As a result, political and financial atmosphere in the state became more
favorable for multinational corporations, foreign investors and banks. Undoubtedly, it became a positive
tendency for running businesses in this state since the level of uncertainty was considerably decreased
(Pilinko & Romancenco, 2014).
This premise is proven with the corresponding data. Consider the case, "GDP increased by almost 90
percent from 2000Q1 to 2007Q4, followed by a decrease of 25 percent from 2007Q4 to 2009Q3 and then a
recovery, as of 2013Q2, of 18 percent" (Blanchard, Griffiths & Gruss, 2013, p. 326). As the statistics reveals,
today, the economy of Latvia is on its way to recovery. It goes without saying that this peculiarity is
expected to induce significant capital inflow in the near future. The following fact supports the previous
statement: in 2015 the Ripplewood Company from USA together with a group of twelve international
investors bought one of the main banks in Latvia - Citadele Bank, paying 74.7 million EUR for their shares.
The new shareholders also have increased the Bank’s equity capital investing 10 million EUR in the Bank.
American investments in Latvia’s financial system improved security, balanced foreign investments, and
sent positive indications to other potential investors (Citadele, 2015). Furthermore, the importance of foreign
investments can hardly be overestimated; therefore, Latvian domestic businesses should consider the
transparency of the financial ratios that display good perspectives for enhancing one's income as vital.
In this regard, it is appropriate to hypothesize that the Latvian macroeconomic factors are positively
related with the financial ratios of domestic businesses. That is why, studying the appropriate statistics one is
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capable to comprehend the general financial climate of the country, its weaknesses, strengths, and
perspectives. Together these arguments can help taking the right decision regarding investing in the economy
of Latvia. Therefore, this study is aimed at identifying such financial ratios as EBITDA, the net profit, net
profit margin, turnover, average assets value, and equity capital. In addition, the purpose of this research is to
detect return of assets (ROA) and return of equity (ROE) for 2011-2013 of the leading companies that
conduct business in this Baltic state. Further, it is appropriate to align the obtained statistics with the recent
trends in geopolitical and social aspects of the contemporary Latvians life. This approach is used to track the
connection between these variables and, in accordance with the findings, determine the appropriateness of
foreign investments in the particular industries and/or businesses of this country.
The sample is the most successful companies (according to 2013 EBITDA data) that conduct business
in Latvia. Among the 101 leading firms, the three best companies within each industry (13 in total) are
chosen for identifying their financial ratios (Prudentia/Nasdaq, 2014). The findings are compared within
industry, and between various Latvian industries. Moreover, the findings are linked to the above-discussed
macroeconomic factors. This approach is supposed to provide a better outlook on the feasibility of future
investments in the economy of this state.
Findings/Results
Turnover Ratio. The level of turnover is the highest in 'Trading: Industrial Goods Industry' and is
1217 million euro. Within this industry the best results demonstrate Uralchemtrading. The lowest ratio of
turnover for 2011-2013 years is detected in 'Other Commercial Services' sector, which is 6,7 million euro.
This result displays Ald Automotive Company. In overall, positive tendency in the turnover growth is
noticed in 28 companies among the 39 observed. The fastest growth of turnover is seen in Storent that
belongs to 'Other Commercial Services' (the turnover grew twice from 2011 to 2013: from 9 to 19 million).
Besides, good tendency also show 'Municipal Industry' and 'Trading Industries': energy resources, consumer
goods, and industrial goods.
Net Profit. The biggest net profit is generated in the 'Municipal Services'. In particularly, within this
industry, the largest net profit displays Latvenergo (937,0 million euro). Similarly, the lowest net profit is
identified in the 'Transport, Transit and Logistics Industry': business operation of Ventspils Nafta in 2013
showed the loss of 61, 2 million euro. Apart from that, considerable negative results are fixed in Plesko Real
Estate (-5,7 million). In contrast, the fastest growth of net profit is observed in Rigas Siltums that belong to
'Municipal Services' (from 8 in 2011 to 501 million in 2013).
Average Assets Value. The biggest average assets value belong to the 'Municipal Services',
particularly, Latvenergo possess 3224,4 million euro. Naturally, this company displays the highest average
assets value ratio within the 'Municipal Services'. The lowest ratio is fixated in Storent: 10, 8 million euro in
2011. Nevertheless, it is necessary to admit that up to 2013 the value grew as much as twice and reached 22,
9 million euro. In addition, fast increase of assets value displays Lattelecom ('IT and Telecommunication
Services'), Elko Grupa ('Trading: Consumer Goods'), and Plesko Real Estate ('Real Estate').
Equity Capital. As it can be expected from the above-revealed statistics, the maximum equity capital
is recorded in Latvenergo (2047, 7 million euro for 2012). It is appropriate to mention that it insignificantly
decreased in 2013 (fell to 2042,4 million). Among other companies with considerable equity capital there are
Ventspils Nafta ('Transport, Transit and Logistics'), and Latvijas Gaze ('Municipal Services'), --the average
level is 561, 2 and 569, 2 million euro respectively. In contrast, the lowest equity capital is fixed in Storent:
2,4 million euro ('Other Commercial Services').
Net Profit Margin. The largest net profit margin (79, 69%) displays Rigas Siltums ('Municipal
Services'). Apart from that, high rates are recorded in Delta Property ('Real Estate')-- 38, 89%, Latvenergo34, 40%, and Olympic Casino Latvia ('Consumer Services')--34, 06%. The negative net profit growth is
fixed in Plesko Real Estate, --minus 3, 24% (the average result for the period of 2011-2013). Nonetheless, it
is necessity to point out the rapid and abrupt deterioration of the situation for this company. Specifically, its
net profit margin fell from 20, 31% in 2011 to -29, 38% in 2013.
Return on Assets. The greatest percentage of ROA displays Rigas Siltums ('Municipal Services')-105, 55%. Other companies with high ROA level are Olympic Casino Latvia ('Consumer Services')--60,
34%, Mikrotikls ('Incured Industry: Industrial Goods')- 42, 89%, and Joker Ltd ('Consumer Services') --31,
38%. In contrast, the negative return of investment is reported in Latvijas Dzelzcels ('Transport, Transit and
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Logistics'), - minus 3,02%; and in Plesko Real Estate --minus 1,07%. Apart from these two companies, other
37 analyzed business demonstrate positive percentage of ROA.
Return on Equity. The highest ROE that amounts 146, 21% is fixed in Rigas Siltums ('Municipal
Services'). Furthermore, considerable ROE also display Mikrotikls ('Incured Industry: Industrial Goods')--43,
82%, Rimi Latvia ('Trading: Consumer Goods')--36, 26%, Nordtorf ('Natural Resources Extraction')-32,
54%, and Alfor ('Consumer Services') --30, 53%. At the same time, a significant negative ROE demonstrates
Plesko Real Estate: 10, 72% in average for three years; the tendency towards deterioration is clear visible: in
2013 the company's ROE was minus 42,54%.
EBITDA. The ratio of EBITDA is the highest for Latvenergo ('Municipal Services') --249, 1 million
euro in 2013. Besides, this measurement is also high for Latvijas Valsts Mezi ('Natural Resources
Extraction')--95, 8 and Latvijas Dzelzcels ('Transport, Transit and Logistics')-- 78, 8 million euro. The
smallest level of EBITDA is 3,6 million, which is recorded in business performance of Pindstrup Latvia
('Natural Resources Extraction'). Considering the revealed findings, one can rightfully conclude that the most
promising industries are 'Municipal Services', 'Trading: Industrial Goods', 'Incured Industry: Industrial
Goods', and 'IT and Telecomunication Services'. Furthermore, pointing out concrete businesses, it is
necessary to emphasize that the companies Rigas Siltums and Latvenergo (both belong to 'Municipal
Services' industry) are the most attractive for investors in terms of their financial health.
This data is in consistence with the social situation in Latvia that has a high at-risk-of-poverty-level
and social inequity since limited customer solvency inhibits the development the spheres of consumption. In
contrast, 'Municipal Services', to a great extend, addresses the needs of the multinational corporations that
conduct businesses in Latvia. Therefore, this industry has good customer demand with the adequate paying
capacity. Linking this peculiarity to the latest tendency of oil prices fluctuations, it is relevant to suggest that
the Latvian 'Municipal Services' will become even more profitable in 2016-2018 years. Consequently, this
industry in general and the highlighted firms are worth investing.
Detecting the limitations, it is appropriate to state that this study is based on the statistics for 20112013. Considering the rapid changes in the modern global economic trends, it may not fully represent the
current Latvia's business environment. Besides, the financial ratios of the most prosperous companies may
differ from the average situation with the Latvian business. In other words, the sample consists of the large
businesses, whereas, the financial health of small enterprises is not identified. Consequently, defining the
future directions, one should consider obtaining fresh data for 2015 year while studying and comparing the
financial ratios of large, medium, and small businesses.
Conclusions
The findings reveal that 'Municipal Services' industry is the most attractive in terms of investments. It
complies with the social issues of high poverty level and polarization that limits the growth the industries
that provide goods and services for an average citizen. At the same time, the cheapening of oil creates further
favorable conditions for 'Municipal Services' as well as provides better possibilities for businesses from other
industries.
References
Arline, K. (2015). What is EBITDA? Business News Daily, Retrieved from http://www.businessnewsdaily.com/4461ebitda-formula-definition.html
Blanchard, O, Griffiths, M & Gruss, B. (2013). Boom, bust, recovery: forensics of the Latvia Ccrisis. Brookings Papers
on Economic Activity, pp. 325-388.
Central Statistical Bureau of Latvia. (2014). Unemployment rate declines. Retrieved from
http://www.csb.gov.lv/en/notikumi/unemployment-rate-declines-40813.html
Citadele. (2015). Sale of Citadele Shares Completed. Retrieved from http://west.citadele.lv/en/mediaroom/news/index.php?id426=35805
Delen, D, Kuzey, C & Uyar, A. (2013). 'Measuring firm performance using financial ratios: a decision tree approach.
Expert Systems with Applications, vol. 40, pp. 3970-3983.
Drake, P. n. d., Financial ration analysis, p. 1-14.
Embassy of the Republic of Latvia in the United Kingdom of Great Britain and Northern Ireland. (2014). Latvia
business forum 2013 "The growth is back. What’s next for Latvia?" will take place on 24 October', Retrieved
from
http://www.mfa.gov.lv/en/london/380-visas-vestniecibas/great-britain/gb-news/13231-latvia-businessforum-2013-the-growth-is-back-what-s-next-for-latvia-will-take-place-on-24-october
Financial Ratios Explanation. (2006). ICAP GROUP S.A., pp. 1-15.
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Gasior, K & Lelkes, O. (2013). 'Poverty, inequality, and the social impact of the financial crisis in Latvia. The World
Bank, pp. 1-44.
Hilmarsson, H. (2013). Post Crisis "success" stories? Economic outcomes and social progress in Iceland and Latvia.
OPSSE, Riga/BICEPS Occasional Papers, no. 9, pp. 1-13.
International Monetary Fund, (2014). 'Republic of Latvia - concluding statement of the 2014 article IV mission',
Retrieved from http://www.imf.org/external/np/ms/2014/031014.htm
Lase, I. (2004). Crisis Management in Traditional Society: The Latvian Experience.
Mundell. (1997). The great contractions in transition economies” in Blejer and Skreb Macroeconomics Stabilization in
Transition Economies, Cambridge University Press.
Prudentia/Nasdaq.
(2014).
Latvia's
most
valuable
enterprises.
Retrieved
from
http://www.top101.lv/en/about/methodology
Ministry of Finance Republic of Latvia. (2015). Latvia's Stability Programme for 2015-2018. p. 1-82.
Pilinko, V. & Romancenco, A. (2014). A macro-financial model for credit risk stress testing: the case of Latvia.
bachelor thesis, pp. 1-37.
Poznanski, J, Sadownik, B. & Gannitsos, I. (2013). Financial ration analysis. p. 1-13.
Vanags, A. & Strupiss, A. (1999). Corporate Governance in Latvia, hosted by The Government of Lithuania, OECD
Zions Business Resource Center n. d., How to analyze your business using financial ratios, p. 1-23.
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Flexibility of Working Time at The Enterprises of Belarus
Nataliya Makovskaya
Mogilev state University by A. Kuleshov, Belarus, maknata@mail.ru
Abstract
We examine compulsory reduced working time (CRWT) in five Belarusian factories, to assess its
impact on employment relationships. Local use of CRWT increased between 2001 and 2012, and took a
form more inimical to worker interests, thereby differing from official macro statistics. Managers
expressed discontent at being pushed by state policy to use CRWT, but used it as a disciplinary tool.
Workers perceived worsening work relationships and threats of collective response were in evidence.
Keywords: working time, enterprises, short-time work, employment relationships.
Introduction
This article examines the incidence, operation and consequences of ‘administrative leave’ and shorttime work in a group of Belarusian enterprises in the Twenty First Century. We jointly designate both
practices ‘compulsory reduced working time’ (CRWT), distinguishing between them where necessary. The
subject is important because it bears on the questions of how ‘patient’ (Beissinger and Sasse, 2013) workers
in the region are in the face of worsening conditions and considerable repression. It also helps understanding
of the social settlement in this important economy on the ‘transitional periphery’ (Wood and Demirbag,
2012; Bedo et al, 2011). Societies on the ‘transitional periphery’ (Belarus, Ukraine, Moldova, the countries
of the Caucasus and the Central Asian republics) are characterised by the apparent continued importance of
‘soviet institutional and cultural legacies’ their geographic position on the edge of neighbouring major
economies, their historic subordination to large powers, rapacious elites, and weak democratic traditions
(Wood and Demirbag, 2012). They contrast with the ex-soviet countries now in the European Union, which
have evolved in more democratic directions. On the transitional periphery, élites have captured state
apparatuses, suppressing opposition. They have re-regulated employment relations by weakening
employees’ positions and trade unions, suppressing previous trends to increased collective voice.
We use short-time working and administrative leave as routes into our broader issues for two main
reasons. First, their impact and incidence across time indicates how far the official ideology of a ‘social
economy’ may be considered plausible or sustainable. Second, income stability is a central concern to
managers and employees and therefore crucial to how they view the wider social settlement. Both short-time
working and administrative leave are forms of CRWT with serious implications for workers’ earnings,
household economies and for employees’ willingness to invest in themselves and their current employers.
Short-time working and ‘administrative leave’ are different forms of CRWT, both of which have a legal
basis explained in detail below. Short-time working is extensively regulated by the Labour Code providing
the worker with legal grounds to dispute it in court, potentially limiting management prerogative. The role of
trade unionism –which has a well-established legal watchdog role-- is therefore relevant even when account
is taken of the judiciary’s questionable independence (Kryvoi, 2006).
The enterprises selected for detailed study are four large quasi-privatised and one large state-owned
enterprise located in the Mogilev region: a major chemical fibre manufacturer, two textile and two machinebuilding plants specialising in agricultural and construction machinery. All are controlled by government
through ministries or conglomerates (kontserns). Quasi-privatised enterprises are state-owned, since the
government is their largest shareholder (retaining up to 99 percent of shares). These plants are major
employers in the region, with 15,546 employees in 2012 and are representative of large-scale national
industry.
Some enterprise-level information collected for the study derives from monthly, quarterly and annual
panel data on labour for 2001-2012. Other data on personnel we examined included average monthly wages
(per enterprise), and evidence on CRWT incidence. We were also able to conduct five semi-structured
interviews (Cresswell, 2008) with labour planning managers and non-managerial employees, and a short
survey of non-managerial workers in order to assess the impact of CRWT on employees.
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Results / Conclusion
There is a mismatch between enterprise and macro level results for CRWT. At micro level, the data
collected from our five enterprises for the period 2001-2012 shows increased use of administrative leave, but
the opposite trend is reported in official statistics for the national labour market. According to the latter data,
employer-initiated administrative leave had virtually ceased to exist as a management practice by 2012.
Short time (in the form of shorter working days) was used by enterprises only down to 2006; the data
demonstrate a rapidly decreasing trend in the use of this practice. We therefore see no evidence of its use in
enterprise statistics after that point. Simultaneously, at micro level, the data demonstrate a steadily increasing
trend in the overall amount of time worked across the period 2001-12.
The reason no evidence for the use of short-time working was obtained for macro level is simply
because these data are not collected at country level. Thus the difference between the two levels of statistics
potentially arises from simple sample bias. However, the alternative possibility is that the inclusion of data
from small and medium-sized enterprises in the national statistics dilutes the apparent incidence of
administrative leave since small companies make very little use of it (Carraher and Carraher, 2006).
Thus, macro-data on CRWT suggests that enterprises are reducing such practices, which is consistent
with the image of a socially-oriented, worker-protecting economic model. However, the micro-level data
show a different picture. The micro-level statistics suggest that the legal structuring of employer preferences
towards the less equitable form of CRWT, i.e. administrative leave, became material from 2006 onwards.
From that point, the more equitable short-time working disappeared in practice. A second inequitable
element arises from the use of administrative leave. Partial pay is a possibility, particularly for ‘core’
personnel. A standard practice when putting both core and peripheral workers on administrative leave is to
put the latter on unpaid leave to save funds which are then redistributed to provide partial pay for core
personnel. We report further on this below.
This evolved towards exclusive use of administrative leave from 2006 in the enterprises studied, in a
trend that ran contrary to that which may be identified in official statistics at national aggregate level. Since
the end of the observation period, we have been informed that its use increased still further in 2013. The
statistics and management responses to our questions made it clear that it has become an established part of
enterprises’ labour management routine. It is used as a way of adjusting labour costs to demand without
challenging government ideas of socially-responsible labour policy, and as a disciplinary tool to remove
certain workers. Increased use of administrative leave undoubtedly had a considerable negative effect on
workers’ earnings and by extension household budgets.
Our second question was how this strategy was perceived by managers and workers. Both groups
expressed dissatisfaction with CRWT use and we speculate that the two may be mutually reinforcing;
discontent with the technique clearly has different roots for the two groups, but there is also a degree of
overlap between the two groups’ perceptions. For senior managers, it was a blunt tool for achieving control
within state-imposed restraints while for more junior managers it brought opprobrium from workers. Among
the latter, it evoked a number of reactions including a worsening of internal relations between workers and
management and between groups of workers who were differentially impacted.
Our final question concerned workers’ perceptions of employment and unions. Widespread feelings of
dissatisfaction with management and work were expressed by respondents to our questionnaire and in
interviews. Uneven downward communication by managers in different plants was complained of,
accompanied by frustration at the lack of voice possibilities and indeed considerable fear in expressing
negative views for fear of victimisation. Survey results showed a more or less universal lack of confidence in
unions but interviews also evoked anger at their behaviour indicating that workers still expected unions to do
something for them in a bargaining direction rather than in social or associative senses. Thus, the removal of
union independence has not also removed workers’ expectation that unions should listen to worker problems
and make some efforts to bargain for them.
Two findings have significant implications for the study of Belarussian society and constitute the first
aspect of our contribution. First, the gap between official portrayals of the situation at national level and the
reality at least in the workplaces studied here is considerable; the findings of the large number of studies
based on these statistics are therefore questionable. Second, and directly linked to the first point, it appears
that even before the financial crisis there was a deterioration in the social settlement.
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References
Bedo, Z., Demirbag, M., Wood, G., (2011) ‘Introducing governance and employment relations in Eastern and Central
Europe’ Employment Relations 33 (4): 309-315.
Beissinger, M., Sasse, G. (2013), ‘An end to ‘patience’? The great recession and economic protest in Eastern Europe’
(downloaded from princeton.edu 12 July, 2014).
Carraher, S.M. and Carraher, S.C. (2006) ‘SMEs in Eastern Europe: a 30 month study in Belarus, Poland and Ukraine’,
International Journal of Entrepreneurship, Vol.10, pp.97-108.
Croucher, R. (2004): ‘The Impact of Trade Union Education. Experience from three countries in Eastern Europe’, 2004,
European Journal of Industrial Relations 10 (1): 90-109.
Gaiduk, K. et al (2005) Labour market in Belarus: general summary, CASE Working Paper No.313. (pdf), Available at
http://www.case-research.eu/upload/publikacja_plik/9438818_sa313r.pdf, [Accessed on 28.02.2014]
Kryvoi, Y. (2006) ‘Discrimination and security of employment in a post-Soviet context’, International Journal of
Comparative Labour Law and Industrial Relations, Vol. 22, No.1, pp.5-17.
Makouskaya, N. V. (2006) ‘Vnutrennie rynki truda belorusskih predpriyatii’ (Internal labour markets of Belarusian
enterprises), Belorusskii Ekonomicheskii Jurnal, No.3, pp.92-104.
Makouskaya, N.V. (2008) ‘Formirovanie dohodov rabotnikov na vnutrennih rynkah truda belorusskih predpriyatii’
(Formation of workers’ incomes at Belarusian enterprises), Beloruskii Ekonomicheskii Jurnal, No. 1, pp.80-92.
Minfin (2014) Government debt at 1 March 2014. Ministry of Finance of the Republic of Belarus press-release (online),
Available at http://www.minfin.gov.by/public_debt/pressreleases/bd64ec770d7288b6.html, [Accessed on
4.04.2014]
Morrison,C., Croucher,R., Cretu,O. (2012): ‘Legacies, conflict and ‘path dependence’ in the Former Soviet Union’
British Journal of Industrial Relations 50 (2): 329-351.
National Statistical Committee of the Republic of Belarus (2013) Annual Statistical Collection of the Republic of
Belarus, 2013. (online) Available at www.belstat.gov.by/bgd/public_compilation/index_105/, [Accessed on
15.02.2015]
Vankevich, A. (2010) Gibkost’ rynka truda: edinstvo makro- i mikropodhodov (Labour market flexibility: the unity of
macro- and micro approaches). Vitebsk: VSTU.
Danilovich, H. and Croucher, R. (2011) ‘Labour management in Belarus: transcendent retroregression’, Journal of
Communist Studies and Transition Politics, Vol.27, No.2, pp.241-262.
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Current Challenges of Latvian ICT, Global Best Practices to Drive Innovation
and ICT Development and Potential Recommendation for Latvian ICT More
Rapid Growth by Utilizing Innovation and R&D
Sanita Meijere1, Tatjana Tambovceva2
1
2
Riga Technical University, Latvia, smeijere@hotmail.com
Riga Technical University, Latvia, tatjana.tambovceva@rtu.lv
Abstract
The aim of the study is to analyze current situation and challenges experienced by Latvian
Information Communication Technology (ICT) industry and propose recommendation based on
applicable global practices for further ICT industry growth. The scope is limited to IT solutions and
application development, excluding telecommunications and infrastructure. Literature reviewed are
World Economic Forum materials, surveys on global ICT development, International business 3RD
edition by O. Shenkar, Y. Luo and Tailan Chi and materials prepared by Latvian Investment and
Development Agency. Most widely used is information gathered from focus groups interviews and
analyses of Central Statistical Bureau data. The main conclusions of the study is that despite several very
positive success cases, Latvian ICT industry lacks government strategic attention that would facilitate
faster growth of the industry and its export competitiveness.
Keywords: ICT, R&D, innovation, growth, export
Introduction
World Economic Forum recognizes ICT industry as important factor of economic growth globally
(The Global Information Technology Report 2013, 2013). As well European Union (EU) emphasizes ICT
industry’s importance in EU planning documents - Europe 2020 Strategy (EUROPE 2020: A strategy for
smart, sustainable and iclusive growth. , 2010). Majority of world`s countries ICT is less than 10% of GDP
but nevertheless 90% of public and private sectors are dependent on ICT services and products. ICT solution
implementation at least triples annual productivity growth rate. (Atkinson, 2015) Latvian ICT sector stands
for 3.7% of GDP and 7% of taxes administrated by Tax Administration. Companies’ number operating in
ICT industry increased 60% from 2010 to 2013 in Latvia, turnover in the same period increased 50% and
employment increased 36% (total employed 23 577 in 2013). (ICT sector statistics, 2013) Latvian ICT sector
export increases year over year at least 16%. (IKT nozares eksperti: Latvijas prezidentūra ES jāizmanto, lai
izceltu nozares panākumus, 2014) This shows that industry has a potential, its significance continuously
grows and ICT industry could become leading employer and exporter in Latvia if the current challenges are
properly addressed. For Latvia ICT industry is particularly important as it does not depend on natural
resources (which Latvia is not rich in) and insufficient local market as technological development allows the
products and services to be delivered immediately to any part of the globe. The main issues are relatively low
Latvian ICT competitiveness in export markets, insufficient amount of highly skilled professionals and lack
of resources for R&D. (Focus Group, 2015)
The research is based on literature review learning about the importance of the ICT industry`s role in
facilitating overall countries` economic growth and competitive advantage. Current situation and its potential
of Latvian ICT industry is assessed based on statistical data provided by Central Statistical Bureau and
Latvian Investment and Development Agency. Global picture is gained by analysing data from ICT
Development Index survey. An important source for assessing current Latvian ICT industry`s challenges and
development vision is Focus Group`s interviews. Focus Group consists of 2 Latvian ICT associations
(Latvian Information and Communication Technology Association and Latvian IT Cluster), TechHub Riga
and largest industry players: Accenture Latvia Branch, DPA, Exigen Services Latvia, Lattelecom, Latvian
State Radio and Television Center (LVRTC) and Tilde. 6 onsite interviews were conducted, 1 telephone
interview and 2 email questionnaire`s based interviews. Focus Group is a valuable source of providing
information on how other countries acted to increase ICT industry`s competitiveness. For the purpose of
learning about successful case studies globally on ICT industry development websites of Chilicon Valley and
Estonian ICT association are used.
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Findings/Results
US is the country with fastest ICT growth and new ICT solutions` / products` development. The key
success factor – traditionally successful universities scientists’ cooperation with industry –
commercialization of new products / services / solutions. (O. Shenkar, 2015) Other important factors –
market size, highly qualified labour pool not only in ICT but as well in supporting services like marketing
and financial management. Besides that US is rich in capital and venture capital funds are very developed.
Estonia is globally known of its ICT industry due to being primary export industry and well supported
by government officials helping to create global awareness of Estonian ICT achievements. Estonia managed
to start cooperation with Silicon Valley and attract venture capital funds ten times more that Latvian
companies. In ICT Development index Estonia is ranking: 21 compared to Latvia ranking only: 33.
(Measuring the Information Society Report, 2014)
Country support for ICT development is insured as well in Chili where year 2010 a Start-up commune
Chilicon Valley was started now being the largest start-up community globally.
Latvian ICT has experienced several successful start-ups - smart address book Cobook, infographs, e
book sales platform Fastr Books, gaming platforms. Successful TechHub London 1st foreign branch TechHub Riga, facilitates start-ups` growth by providing co-working space, community, ICT industry related
events and valuable contacts. (Information and Communication Technology Industry in Latvia, 2013)
Latvian ICT market is very limited, the largest customer is government which means that solutions are
customized and cannot be replicated within a country in majority of cases. 90% is coding services for global
companies’ branches in Latvia for their international customers. ICT graduates are best suitable for such
coding services, but this does not create high added value. ICT education lacks interdisciplinary programs
and development of soft skills required by the industry. RTU ICT programs are rated highest among
employers. (Skolu un studiju TOPs, 2014) The amount of ICT workforce is insufficient to create base for
sustainable ICT industry growth. (Informatīvais ziņojums par darba trigus vidēja un ilgtermiņa prognozēm,
2014) Supporting services professionals, e.g. marketing lack global vision and ability to pack and promote
products abroad.
Conclusions
Education is key to successful ICT industry growth therefore stakeholders should promote interest to
choose IT as further education after school. Foreign students should be attracted and motivated to stay after
graduation.
EU funding particularly Horizon 2020 is the main resource to solve the lack of international
cooperation, exchange of knowledge and commercialization of research.
Government should involve more in Latvian ICT industry awareness creation abroad thus increasing
foreign markets` trust which is critical factor for venture capital funds` interest to invest in Latvian ICT
facilitating R&D and innovations.
References
Atkinson, R. (2015, August 10). How ICT can drive growth in emerging economies. Washington, US: ITIF.
EUROPE 2020: A strategy for smart, sustainable and iclusive growth. . (2010). Brussels: European Commission.
Focus Group. (2015, July - August). Riga, Latvia.
ICT sector statistics. (2013). Riga: Central Statistical Bureau of Latvia.
IKT nozares eksperti: Latvijas prezidentūra ES jāizmanto, lai izceltu nozares panākumus. (2014, June 17). Riga, Latvia:
focus.lv.
Information and Communication Technology Industry in Latvia. (2013). Riga, Latvia: LIAA.
Informatīvais ziņojums par darba trigus vidēja un ilgtermiņa prognozēm. (2014). Riga, Latvia: Ministry of Economics.
Measuring the Information Society Report. (2014). Geneva, Switzerland: International Telecommunication Union.
O. Shenkar, Y. L. (2015). International Business 3rd edition. New York, US: Routledge.
Skolu un studiju TOPs. (2014). www.prakse.lv.
The Global Information Technology Report 2013. (2013). Geneva: World Economic Forum and INSEAD.
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The Triad of Management Decisions for a Small and Medium Enterprise
Maris Millers
Riga Technical University, Latvia, maris.millers@mmstudija.lv
Abstract
Small and medium-sized enterprises (SMEs) represent 90% of all businesses in the EU. One of typical
characteristics for SME is that company founders and owners keep active role in company management
acting as the CEO, board member or active directors. As result, personality and skills of owner have a
significant impact on operating model and ultimate success of enterprise.
Traditional management theories, to be implemented successfully, requires from management to have
deep understanding of theory and tools, and ability to allocate significant time and effort for developing
and improving management system. However, time is a scares resource, especially in a SME.
The Triad of Management Decisions, developed by author on basis of analysis of management
theories and practical cases, suggests a simple framework, relevant for a SME, with a set of guidelines on
how to start building management system for a lasting success.
Triade consists of: decision about strategy – selecting business model, defining target market and
setting goals, decisions about configuration – setting up process, operations and organisation; and
decision on implementation – planning, financing and controlling.
Keywords: Small and medium enterprise, Management system, Owner-manager.
Introduction
Small and Medium Enterprises (SMEs) form a large part of private sector both in developed and in
developing countries. In European Union Small and medium-sized enterprises (SMEs) represent 90% of all
businesses.
Management aspects of SMEs have been a subject of multiple research and studies over past years.
However, owners-managers of small or medium sized companies still experience struggle in managing and
developing their companies. Traditional management tools and approaches often are not used within SMEs
due to their excessive complexity. Personality traits and preferences of owner-manager also have significant
impact on selection and development of management system for company.
The Triad of Management Decisions, developed by author on basis of analysis of management
theories and practical cases, suggests a simple framework, relevant for a SME, with a set of guidelines on
how to start building management system for a lasting success.
Qualitative research, Interviews, Methodological triangulation.
Findings/Results
According to EU recommendations there are two main factors determining whether a company is an
SME - number of employees (Less than 250 employees for a medium company and 10-50 employees for a
small company) and either turnover (less than 50M EUR and less than 10M EUR respectively) or balance
sheet total (<43M EUR/ <10M EUR). Micro companies, according to the EU recommendations, are those
with the less than 10 employees, turnover and/or balance sheet total less than 2M EUR.
In addition to EU recommendations, in this research an SME was considered a company with a
founder/owner working in the company management.
There are multiple research conducted on management aspects of SMEs. However, many ownersmanagers of small or medium sized companies still struggle with managing and developing their companies.
Their decisions and choices are impacted by personality traits and subjective preferences.
Owner-manager personal values have significant impact on business strategies, and enterprise
performance (Kotey, B.; Meredith, G. G., 1997)). Adizes (2009) defines the phase when owner has not been
able to adapt management system and structure in accordance to company development as a “Founder trap”.
Interviews with business owners also proves mental and habitual obstacles for making management
decisions.
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Traditional management tools and approaches often are not used within SMEs due to their excessive
complexity.
Triad of management decisions developed by author suggests dividing management decisions in
enterprise in three logical parts. This creates simple to understand and easy to act framework for a
entrepreneur, whose background often lies in specific industry, product or competence, not a management.
First block includes traditional strategic issues – setting goals for a business, defining target market,
selecting business model. From perspective of the owner, these issues are highly related to his/her personal
values, ambitions and temper. Therefore, this block is highly affected by subjective factors of founderowner-manager. In a one word, the first block of Triad can be described by question “Why?”
Second block of Triad contains configuration questions – defining relevant organisation, establishing
processes production. These questions can be impacted by owner’s subjective preferences, however there is
much more influences of rational, market and environment driven factors. Relevant question for this block ir
“How?”
Third block of Triad is about implementation and control – what needs to be done, what resources are
needed, who will be in charge and how we make sure that all tasks are performed in desired quality and state.
This is the “What?” block of the Triad. Owner management style, resource availability, change intensity and
risk tolerance are very subjective factors having implication on third block of Triad.
There shall be relevant tools and frameworks selected for all the elements and questions in Triad to
create a single and integrated management system. For a SME it is important that these tools are simple and
easily applicable, yet effective. Business Modelling Canvas (Ostervalder A., Pigneur Y., 2010) is one of
tools demonstrating combination of simplicity and effectiveness.
Ideally, management system for an SME shall be simple, effective and adaptable to both business
factors and owner-manager personality.
Conclusions
The research summarized in this article is one of the first steps of the more extensive research on
owner-manager impact factors on SME development and appropriateness of management system. Three
blocks of the Triad of Management decisions for a Small and Medium Enterprise combines external factors
of business management and development with the personality preferences of Owner-manager of the SME.
Further research shall more analyse practices and case studies exploring drivers and critical factors
influencing both personalities and business.
References
Adizes, I. (1999). Managing Corporate Lifecycles. (Revised edition). Prentice Hall Press. 460 p.
Kotey, B.; Meredith, G. G. (1997). Relationships among owner/manager personal values, business strategies, and
enterprise performance Journal of Small Business Management 35.2 (Apr 1997): 37-64.
Millers M. (2009). Stratēģija nelielam uzņēmumam – vai neiespējamā misija? Biznesa psiholoģija, Nr. 18/2009. Riga,
p. 22-25.
Ostervalder A., Pigneur Y. (2010). Business Model Generation: A Handbook for Visionaries, Game Changers, and
Challengers. Wiley. 288 p.
Wang, C. , Walker, E. A., & Redmond, J. L. (2007). Explaining the lack of strategic planning in SMEs: The importance
of owner motivation. International Journal of Organisational Behaviour, 12(1), 1-16.
SBA faktu lapa 2013, Latvija/ http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performancereview/files/countries-sheets/2013/latvia_lv.pdf
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Forecasts of the Business Cycle Dynamics as a Corrective Factor within the
Context of Investment Portfolio Efficiency Maximisation
Jekaterina Nazarova1, Inna Dovladbekova2
1
Riga Technical University, Latvia, Catherine.Nazarova@gmail.com
2
Riga Technical University, Latvia, Inna.Dovladbekova@rtu.lv
Abstract
The research „ Forecasts of the Business Cycle Dynamics as a Corrective Factor within the Context of
Investment Portfolio Efficiency Maximisation„ describes methods which enable efficiency improvements
of investment portfolio structuring and conjuncture determination as well as prediction of its future value.
The newly designed forecasting and decision-making model, previous described in several authentic
published researches, such as „Investment planning in a context of business cycle volatility”, was
supplemented with correction factor - business cycle dynamics forecasts. The efficiency of the model was
tested in terms of practical experimentation and the results of the improved model were compared with
previously obtain corresponding values in order to verify the defined research hypothesis. The main
problematique solved in the current research may defined as efficient decision making and stock
monetarisation, investment environment and portfolio structure analysis and evaluation.
Keywords: technical analysis, fundamental analysis, stock analysis, decision-making models,
forecasting models, investment portfolio, business cycle forecast.
Introduction
Stock markets provide significant opportunities for financial resource allocation, redistribution and
accumulation, thus making it an attractive option of capital placing, despite the risk involved, which are
caused by unpredictable stock quote fluctuations and generally high development volatility. Fundamental
analysis provides an opportunity to evaluate and forecast security price dynamics, caused by objective
heterogeneous factor influence, such as macroeconomic environment conditions, restructuring of national
economy sectors or the intrinsic value of stocks. The founding fathers of the fundamental analysis are David
Dodd and Benjamin Graham, who were first to describe principles of the mentioned methodology in their
research “Stock Analysis”, published in early 1934. Despite the lengthy timeframe of the relevant method
development, it is still quite popular among investors, who prefer long – term liability maturing and
empirical multifactorial assessment, thus allowing fundamental analysis to stand out among its more
tactically orientated counterparts. On the contrary, technical analysis, provides an opportunity to assess and
forecast security price dynamics caused by subjective, sometimes logically inexplicable reasons, such as
mood and expectations of the market participants. The founder of Technical analysis was Charles Dow, who
was first to describe the method of forecasting stock price fluctuations by using historical data and its’
graphical interpretation. Charles Dow described his method in a “Wall Street Journal” article in the
beginning of the 19th century. Even though this method is seemingly geriatric, it nevertheless remains
crucially topical and becomes progressively popular with each subsequent generation of investors.
Previously conducted research “Investment planning in a context of business cycle volatility” verifies that
the above described methods deliver significantly more accurate results in case of harmonised simultaneous
implementation and proves the efficiency benefits of further enhancing of capabilities of the unified
forecasting and decision-making, which had incorporated both of the previously described methodologies
into a single quantitative framework of econometric productivity. The latter statement consequentially leads
to the main research goal of the current paper, defined as the furthered efficiency maximisation of the
developed forecasting method by improving the previously developed model with harmonised incorporation
of additional corrective coefficients into its core structure.
The main idea of the current research is that methodological combination of both fundamental and
technical analysis forecasting and analysis methodologies outperforms the method of their parallel or
independent usage, especially when supplemented with relevant corrective factors, which help to adjust the
forecasting results to the specifically volatile market situation. It does not focus merely on the combination
of instruments and its’ result comparison in a process of decision-making, rather setting the priority as
related to the creation of a single combined stochastic model, which will bind together several forecasting
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instruments and techniques in order to get a positive synergetic effect such as a unified and precise price
forecast serving as an output of the model. The purpose of the current research is the experimental research
of some forecasting techniques related to fundamental, technical analysis and the analysis of the market
through the prism of volatile business cycle phase determination in order to create the most optimally –
efficient analysis and forecasting algorithm and to create a stock quote forecasting combined stochastic
model achieving a positive synergetic effect by simultaneous usage of different approaches. The creation of
such a methodology will lead to the minimization of the risk and forecasting error, easement of the decisionmaking process, minimization of the role of subjectivity in a decision-making process, more versatile
analysis, more precise forecast, more effective investment portfolio structure and maximization of income.
Findings/Results
Generalizing the results of the conducted experiment it should be mentioned that “Johnson &
Johnson” USA enterprise forecasted future price is 71,46 USD, “Hoffmann La Roche” Swiss enterprise
forecasted future price is 172,59 USD, “Grindex” Latvian enterprise forecasted future price is 6,71 USD.
After the implementation of the investment portfolio structures’ calculation table it is offered use a “bullish”
strategy regarding all the stocks (unlike it was when classical model was implemented – advising to sell
GRD stocks) to create an investment portfolio which will include 47% “Johnson & Johnson” USA enterprise
stocks, 5% “Grindex” Latvian enterprise stocks, 48% “Hoffmann La Roche” Swiss enterprise stocks. If
trader would have used only results of separate classical models then his income would be 96570,33 USD.
Using the newly developed analysis, forecasting and decision-making methods and taking into account the
real price dynamics – investors income will be 107016,32 USD. Comparing the results it can be seen that the
newly created methodology is much more efficient and delivers more accurate results. But still, by
implementing a newly added to the described model corrective factor can help to minimise the risk of
forecasting error by average 8.7%, which will definitely be followed by bigger profit and more accurate
accomplishment of the set performance goals.
Conclusions
Summarizing the conducted research as well as the acquired qualitative and quantitative analysis
results, the following conclusions can be made:
1. The proposed research hypothesis had been positively verified during the conduction of the current
research;
2. The conducted analysis confirmed the relevance and correctness of the forecasted dynamics of the
selected stock quotes;
3. The proposed analytical algorithm had been proven efficient in terms of practical implementation with
the goal of achieving a higher precision forecast, thus optimising and easing the investment decisionmaking process;
4. The newly implemented corrective factors, namely, business cycle forecasted dynamics may play a
crucial role in clarification of the model generated forecast and minimisation of the corresponding
forecasting error.
References
Cumov D. (2005) Asset Allocation Based on Shortfall Risk. Technischen Universitat Chemnitz. 340.
Grindeks (2013) Enterprise homepage. http://www.grindeks.lv/lv
Hoffmann – La Roche (2013) ) Enterprise homepage. http://www.roche.com/index.htm#/browse/all
Johnson & Johnson (2013) Enterprise homepage. http://www.jnj.com/connect/
Markowitz H. (1952) Portfolio Selection. The Journal of Finance. 91. 7 –77.
NASDAQ. (2012) Stock exchange. http://www.nasdaq.com/
The World Bank. (2012) Database. http://www.worldbank.org/
Kann.M.N. (2005) Technical Analysis. 275.
Larry Williams (2012) The Way to Success and Big. http://tvoidengy.ru/library/vilams_biography.html
BeInTrend. (2012) Bankruptcy Forecasting Altman’s’ Model. http://www.beintrend.ru/z-score-altman
Naiman E. (2009) Trader Encyclopaedia. 455.
Swiss Stock Exchange (2012) http://www.six-swiss-exchange.com/index_fr.html
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The Development Managers' Competency in Employment People with Disability
Zaiga Oborenko1, Marga Živitere2
1
Information Systems Management Institute, Latvia, zaiga.oborenko@yahoo.com
2
Information Systems Management Institute, Latvia, marga.zivitere@isma.lv
Abstract
The aim of this paper is to identify the possibilities to improve managers' competence of employment
disabled people. The problem is that only 40% of them are employed in EU. One of the more important
barriers, exactly in Latvia, is the employers’ inadequate competencies in employment disabled people.
The study is based on survey and expert interviewing of employers, as well as on the best practices and
the secondary study resources. The first main result is that there are many ways towards in the directions
of the improvements of managers’ competencies in employment disabled persons in future. Towards
enabling practice: to work out and adapt the special disability management module.
Keywords: Barrier-free workplace, Competencies in employment, Disabled people, Latvia.
Introduction
The authors of the article are concerned with how developing disability management in the workplace
could open the possibilities for work for people with disability and can be matched with the opportunities of
increasing the employment rate according to the European Disability Strategy (2010–2020) objectives [4].
As the problem is that people with disabilities for represent around one-sixth of the EU’s overall workingage population, but their employment rate is comparatively low. Disabled people are almost twice as likely
to be inactive as non-disabled people. In 2012 46.3 per cent of disabled people are in employment compared
to 76.2 per cent of non-disabled people [2, 3 un 4].
As stated by several research projects in Latvia, there are no common statistical data on the
employment of people with disabilities. According to the State Employment Agency of Latvia registers, the
number of people with disabilities in Latvia is about 5% of populations, only 2% of them have found
employment as of the year of 2014 [5].
People with disabilities still face numerous barriers throughout the EU and the Latvia. It does not
correspond to the European Employment Strategy objectives of reducing unemployment, raising the
employment rate, and fighting against social exclusion [3]. Within this context, the authors of this paper is
focused on the demand (employers/managers) sides of the new paradigm in the employment of workers with
disabilities.
Methodology and Research
Within this context, the authors analyze the literature recounting the perceptions and experiences of
the employers/managers on the employment disabled people. The research method used was qualitative,
reflecting the aim to capture individual in depth accounts of personal experiences, and this was achieved
through 15 semi structured interviews with HR managers and employers on issues related to the situation
integration of people with disability into the workforce, providing background for the needs on an evaluation
of the use managers’ competencies in employment disabled people and identify the areas of improvements
in further, according to the European Disability Strategy 2010-2020 to achieve the EU’s growth targets [2].
The theoretical and practical basic
Much has been written about the barriers faced by disabled people in their attempts to access the
labour market (Barnes and Sheldon, 2010 [1]; Waldschmidt, 2009 [8]). The topic - the barriers-free
workplace has been given rather limited research attention in the Latvia so far (Korņiljevs, Ļubkina, 2011
[6]; Živitere un Člaidze, 2011 [7]). For all that, when the time comes to recruit, hire and promote, people
with disabilities are often overlooked. Every employer looks for to hire qualified people, and want to draw
them from the largest possible “pool” of candidates. What are the views of the use of managers'
competencies in employment disabled people? – The managers have doubts about hiring people with
disability, their incapacity for work. The main conserns are:
• Concerns with regard to social interaction (Will people fit my team? Will they able to deal with
customers? Will customers have negative reactions? Will other staff members have negative
reactions?).
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• Concerns with regard to carrying out the professional activity and costs (Will people do less for their
pay? Will they slow down the process? Will they do their job properly? Will their work be of quality?).
• Concerns with health and safety aspects (Will they be less safe? Will there be more work accidents?
Does it mean higher absenteeism?)
• Concerns with problems linked to loss working capacity (need for technical aids and adjustments in the
work place etc.).
Most managers required support to overcome their worries and possible problems. The main help for
employers would to come from vocational training and rehabilitation centre or from job coaches who follow
up and support workers with disabilities [5].
Findings
•
•
•
•
The authors came to the findings mentioned below.
On the demand sides at the present moment exists the new paradigm compare with the past system as a
heritage from the Soviet Union in the employment of workers with disabilities in Latvia.
The content of new paradigm: specific controlling the cost of disability in business and industry and its
ultimate impact on employee productivity is not a simple task; complex and conflicting relationships
exist between employer goals, resources and expectations; the needs and self-interests of workers, the
services available in the community, and productive employment and etc.
In general Latvian companies play a passive role in recruiting disabled people. The managers’
interviews show a considerable number of problems in economic, legal and social sectors, which
influence a recruitment and employment of disabled people. There are the companies, where is
accumulate positive good practices on the changes in an evaluation of the use managers’ competencies
in employment disabled people.
In the conclusion, we discuss where further research is needed to address remaining employment
inequities for people with disabilities.
Conclusions
During the carrying out of the research it was found out that the evaluation of a contribution of the
updating of the knowledge and competencies of employers and managers in the workplace are important
nowadays in Latvia. The survey shows a considerable number of changes in the development managers'
competencies in eemployment people with disability. The summarising of the good practice of developing a
disability management in the work place in the European countries and particularly in Latvia uncover
success, problems and difficulties and shows that there are many ways towards in the directions of the
improvements in future. .
References
Barnes, C. and Sheldon, A. (2010). Disability, Politics and Poverty in a Majority World Context, Disability & Society,
Vol. 25, No. 7, 2010, pp.771-782.
Disability facts and figures ability facts and figures: Office for Disability Issues - Disability ... In:
odi.dwp.gov.uk/disability-statistics.../disability-facts-and-figure...
European Commission (2010a). Europe 2020: A strategy for smart, sustainable and inclusive growth. Communication
from the Commission, Brussels, 3.3.2010 COM (2010) 2020 final. Retrieved January 27, 2011, In: http://eurlex.europa.eu
European Commission (2010b). European disability strategy 2010-2020: A renewed commitment to a barrier-free
Europe. Communication from the Commission to the European Parliament, the Council, the European Economic
and Social Committee and the Committee of the Regions, Brussels, 15.11.2010 COM (2010) 636 final. Retrieved
January 27, 2011, from http://eur-lex.europa.eu
Ministry of Welfare (2009). State Employment Agency of Latvia. Available in http://www.lm.gov.lv/text/151
Korņiljevs, I., Ļubkina, V. (2011). Situation Analysis of Persons with Disabilities in Latvia. In: SOCIETY,
INTEGRATION, EDUCATION. Proceedings of International Scientific Conference May 27th-28th, 2011. Vol. II.
Rezekne, 2011. p. 497-506.
Živitere, M., Člaidze, V. (2011). Legal Environment, National Strategies and Policies for Employment of People with
Disabilities. In International Conference Current Issues in Management of Business and Society Development –
2011. CONFERENCE PROCEEDINGS Riga, May 5-7, 2011. (pp. 871-879). Riga, University of Latvia
Waldschmidt, A. Disability Policy of the European Union: The Supranational Level, ALTER - European Journal of
Disability Research / Revue Européenne de Recherche sur le Handicap, Vol. 3, No. 1, 2009, pp.8-23.
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Development of State Owned Enterprises of Transport Industry in Latvia
Māris Plūmiņš1, Deniss Ščeulovs2
1
Riga Technical University, Latvia, mplumins@yahoo.com
Riga Technical University, Latvia, deniss.sceulovs@rtu.lv
2
Abstract
The transport infrastructure and State owned enterprises (SOEs) controlling these areas are very
significant influencers of competitiveness of transport industry, and indirectly determining the business
environment in related sectors as well. All transport related state’s strategies and policies in Latvia are
developed, controlled and overviewed by the Ministry of Transport, eleven companies are engaged in
commercial/non commercial activities ,and evaluated whether the liberalization of certain activities would
provide efficiency among SOEs in transport industry of Latvia.
Authors summarize the key data and company profiles providing insight for state control and
interests in particular areas where private companies potentially could compete , improve quality, reduce
costs and positively impact business environment in the given market conditions and states strategies.
There is limited and contradictory debate in what extent Latvian state should involve in business
activities, and how to balance the multiple interests and targets of business, society and politics.
Research in the area is based on the scientific papers, official documents of World Bank and OECD
(Organization of Economic Cooperation and Development), company websites and annual reports.
Keywords: state owned enterprises (SOEs), transport industry, entrepreneurship, business,
competitiveness;
Introduction
Although large SOEs, mostly national champions in their respective sectors, retain their state
affiliation and are thus subject to government influence, private entrepreneurial firms are increasingly
operating in a free-market environment (Tan, 2002), reflecting many advantages of private ownership over
state control (Perotti et al., 1999).
There are numerous reasons for establishing or retaining public enterprises. Jones and Mason (1982)
categorized as follows: ideological predilection, acquisition or consolidation of political or economic power,
historical heritage and inertia, and pragmatic response to economic problems. As the main regulator of the
economy, the state is not only the source of formal institutions (North, 1990), but is also a significant factor
in many economies (Hou & Moore, 2011; Okhmatovskiy, 2010). In many countries, the state has an
ownership stake in numerous firms (Aharoni, 2000; La Porta, Lopez-de-Silanes, & Shleifer, 1999). There is
broad consensus among economists that shifting from public to private ownership tends to increase
efficiency and profitability, especially in areas where competitive pressure can be strong (Meggison and
Netter, 2001). The main purpose of this article was to identify the main factors and principles why Latvian
state engages in entrepreneurship and maintains control of the assets in transport SOEs. Scope of this
research is limited to analysis of services provided by Latvian SOEs in transport industries since transport
comprises the significant share of national GDP.
According to Baltic Institute of Corporate Governance, 2012.“ states involvement in commercial
activities is not welcomed, because states objective cannot be to gain profit from commercial activities,
additionally states involvement in business activities creates market distortion risks.”
SOEs in competition with private sector businesses, or in areas where private sector businesses could
potentially compete is impacting business environment. The experience of OECD countries illustrates that in
these competitive or potentially competitive markets, several possible sources of competitive distortions can
arise because of advantages some public sector businesses have due to their government ownership.
Exploratory research, synthesis and categorizing are main scientific methods used during the writing
of this article. The literature research was conducted to discover the SOE specific issues: governance,
performance, political and business environment in SOE dominated industries.
Research of main practice differences and preconditions of SOEs, which are typical to state controlled
industries. From more than 140 Latvian SOEs were selected 11 operating in transport industry under
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supervision of Ministry of Transport, short company profiles summarized collection of primary and
secondary data, definitions, concepts and their evolutions.
Analysis of main services provided, and possibility of substitution by private companies in case of
liberalization efforts enhanced by OECD and IMF recommendations.
The basic idea behind the SOEs service analysis, was to distinguish between commercial / and non
commercial activities, as well core functions of SOEs and auxiliary functions not typical to the strategic
SOE, what should be kept under state ownership, or at least control.
Findings/Results
SOE are containing large part of OECD countries GDP, and the main industries are natural resources,
infrastructure, utilities, transportation, and telecommunications.
SOEs are under constant public pressure for transparency and performance, market distortions and
influence on business environment in the industry, also increase competition increases the quality and
reduces costs according to research in the area, although there is not a consensus among researchers about
SOE performance, effectiveness in comparison with POE under the same circumstances (market, product,
regulatory framework, governance).
There are 11 SOEs in Latvian transport industry, according to Ministry of Transport information. As it
is mentioned in OECD and other resources, SOE annual reports and strategy –objective-performance
documents are very rarely publicly available, although in general they are owned by the citizens.
Most common SOE services are analyzed, according to the literature review; there is very limited
research in this area: SOE service market analysis, especially construction, maintenance, security –
efficiency, strategic development, possible internationalization in other markets etc.
Conclusions on SOE services and their evaluation could provide ground for further research in area of
SOE sustainability and competitiveness issues in transport industry.
References
Aharoni, Y.1981. Performance evaluation of state-owned enterprises: A process perspective. Management Science, 27:
1340-1347.
Aharoni, Y. 2000. The performance of state-owned enterprises. In P. A. Toninelli (Ed.).The rise and fall of state-owned
enterprise in the Western world: 49–72. Cambridge: Cambridge University Press.
Baltic Institute of Corporate Governance, 2012”Governance of State owned enterprises in Baltic states”
Boycko, M. Shleifer, A. and Vishny, R.W. (1996). “A Theory of Privatization “Economic Journal, 106, 435, 309-319.
Boycko, M., Shleifer, A., & Vishny, R. 1997.” Privatizing Russia.” Cambridge: MIT Press
Boardman, A. and Vining, A. (1989). Òwnership of Performance in Competitive Environments: A Comparison of the
Performance of Private, Mixed and State-Owned Enterprises´. Journal of Law and Economics, 32, 1, 1-33.
Christiansen, H. (2011), “The Size and Composition of the SOE Sector in OECD Countries”, OECD Corporate
Governance Working Papers, No. 5, OECD Publishing
Goldeng, E., Grunfeld, L. A., & Benito, G. R. G. 2008. The performance differential between private and state owned
enterprises: The roles of ownership, management and market structure. Journal of Management Studies, 45:
1244–73.
IMF Country Report No. 15/110, Republic of Latvia 2015 Article IV Consultation––staff report; informational annex
and press release
Lawson, C. 1994.”The theory of state-owned enterprises in market economies”. Journal of Economic Surveys,
8: 283–309.
La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. 1999.” Corporate ownership around the world.” Journal of Finance,
54: 471–517.
Megginson, M. and Netter, J. (2001). `From State to Market: A Survey of Empirical Studies on Privatization´. Journal
of Economic Literature, 39, 2, 321-389.
Okhmatovskiy, I. 2010. Performance implications of ties to the government and SOEs: A political embeddedness
perspective. Journal of Management Studies 47: 1020-1047
Hou, W., & Moore, G. 2011. Player and referee roles held jointly: The effect of state ownership on China ’regulatory
enforcement against fraud. Journal of Business Ethics, 95: 317-335.
North, D. C. 1990. Institutions, institutional change, and economic performance New York: Norton.
Shleifer, A., & Vishny, R. W. 1994. Politicians and firms. Quarterly Journal of Economic, 109: 995–1025
OECD Guidelines of the Corporate Governance of State-Owned Enterprises 2005;
OECD Review of the Corporate Governance of State-Owned Enterprises Latvia, 2015
Wengenroth, U. 2000. The rise and fall of state-owned enterprise in Germany. In P.M. Toninelli (Ed.). The rise and fall
of state-owned enterprise in the Western world: 103–127. Cambridge: Cambridge University Press
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Applying of Analytic Hierarchy Process for Fire Risk Insurance Premium
Assessment
J. Pushkina1, V. Jansons2, K. Didenko3
1
Riga Technical University, Latvia, puskina@inbox.lv
Riga Technical University, Latvia, vladimirs.jansons@rtu.lv
3
Riga Technical University, Latvia, konstantins.didenko@rtu.lv
2
Abstract
The most part of the existing actuarial methods of insurance premium calculation don't pay enough
attention to problems of individual risk assessment of object insured and to problems of insurance premium
extra charge assessment depending on individual risk. According to the international practice of insurance,
assessment of insurance premium extra charge is rather a function of underwriters, than actuaries. There are
no standard underwriting techniques, and each underwriter carries out assessment based on the personal
experience, therefore the authors consider to apply multi-criteria analysis methods and analytic hierarchy
process in order to adjust a net premium calculated by actuarial methods.
Keywords: individual risk, insurance premium, risk factors, underwriting.
Introduction
The structure of insurance premium (P) consists of two parts: net premium (Prisks+Papdr) and
components of cost and profit (C+V) (see Eq. 1):
P = Prisks + Papdr + C + V
(1)
The task of net premium is to form insurance fund from which insurance indemnities are carried out.
Components of cost and profit is used for a covering of variable and fixed expenses (C) and earning of profit
(V) for insurance company.Net premium also consists of two components: the main net premium, or risk
premium (Prisks) and risk extra charge (Papdr).
Net premium is calculated on the basis of unprofitability of the insured sum, or claims experience (i.e.
average value which is equal to the relation of total sum of insurance payments to total sum insured sum of
insurance objects). The second part of net premium is risk extra charge, which is used to consider adverse
fluctuations of an indicator of unprofitability, that is a deviation from the average loss ratio depending on
individual level of risk of each object insured. The risk of each object of insurance is reflected in its
individual characteristics and properties (V. Jansons, J. Pushkina, V, Jurenoks, K. Didenko, 2014).
Differentiation of insurance premium rates is realized firstly, at the stage of risk premium rates
calculation, and secondly, at the stage of risk extra charge calculation, namely:
1) at the stage of risk premium(Prisks) rates calculation - by formation of rates classes for objects of
insurance, that is division of set of all objects of insurance into homogeneous groups, depending on
loss experience
2) at the stage of risk extra charge (Papdr ) – by increasing or reduction the main net rates depending on
specific features of object of insurance.
Various known actuarial methods are applied for risk premium calculation. But there aren’t universal
methods for risk extra charge calculation , and authors suggest to apply Analytic Hierarchy Process.
The aim of this paper is to highlight expediency of using of Analytic Hierarchy Process for priority of
risk factors determination and insurance premium’s risk extra charge calculation in fire insurance.The object
of this research is insurance premium, but the subject of the research is the study of probability of the use of
Analytic Hierarchy Process for risk assessment and risk extra charge calculation depending on risk factors.
The following algorithm for risk extra charge calculation at fire risk’s insurance is offered by authors:
1st stage. Identification of main groups of the factors influencing of fire risk on object insured. In the
previous researches authors allocated three main groups of factors – group A (existence of technical means
of fire-prevention protection on object), group B (building characteristic) and group C (fire-prevention
management on object) (J. Pushkina, V. Jansons, K. Didenko, 2014).
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2nd stage. Identification of subfactors within each group. The authors considered factors' identification
on the example of group A. Factors fA,i, which have significant influence (positive or negative) on fire risk
level on object, were revealed by experts.
3rd stage. Calculation of group A factors priority vector PVA and total priority vectors WA,i using Saati
method (Saaty, Thomas L., Luis G. Vargas, 2013).
4ер stage. Calculation of risk extra charge Papdr for adjustment the main risk premium Prisks depending on
individual level of risk of object insured. If necessary, the calculated value Papdr can be modified by insurance
company underwriter who takes into account non-formalized risk factors (for example, reputation of the
client, specific location of object etc) (see Eq. 2).
n
Papdr
(WA,1sign( f1 ) + ... + WA, n sign( f n ))s Prisk (∑ WA, i sign( fi ))s
Prisk=
(2)
i =1
where i – number of risk factors;
fA,i – i risk factor of group A;
WA,i - total priority vector of i risk factor of group A;
sign(…) – influence of a factor (positive or negative) on fire risk level on object;
σ - correcting coefficient which can be defined by the underwriter (in practice of insurance, this
coefficient value usually is within 1 ≤ σ ≤ 2).
Authors apply the method of calculation of risk extra charge on the example of concrete object of
insurance. It is assumed that object of insurance is a stone building. As a result of audit of fire risks the risk
factors characterizing existence of technical means of fire protection were defined (in our example it is
factors of group A, i = 1,2,…,14, factor codes A1-A14). Results of audit are generalized in the table 1 (short
version).
Table 1. Audit of existence of technical means of fire-prevention protection on object insured
Factor
code
1
A1
…
A14
Description of factor
2
The building is equipped with an
automatic fire extinguishing system
…
The free entrance of the fire fighting
equipment to hydrants is provided
Factor’s
existence
Factors priority
vector PVA
Influence of a
factor ( sign)
3
4
5
Total
priority
vector WA,i
6
No
0,151
+
0,0558
...
...
...
...
Yes
0,006
-
- 0,0021

0,0491
Conclusions
Calculation and application of differentiated risk extra charge to insurance premium is important in order:
to stimulate insurer's economic interest in fire risk level decreasing on object insured; to increase
competitiveness of fire insurance products; to create the unified system of fire risk assessment for building
insurance; to develop a bonus-malus system for fire risk insurance; to make decision about the selection of
optimal system of raising and usage insurance funds at the state, municipal or corporate level.
References
Saaty, Thomas L., Luis G. Vargas (2013). Decision Making with the Analytic Network process. Springer
Science+Business media, New York. ISBN: 978-1-4614-7278-0
Pushkina, J., Jansons, V., Didenko, K. (2014). Applying of multi-criteria analysis methods for fire risk assessment.//
55rd International Scientific Conference on Economics and Entrepreneurship (SCEE’2014). - Latvia, RTU.
Jansons, V., Pushkina, J., Jurenoks, V,, Didenko. K. (2013). Modeling of fire insurance process using Monte-Carlo
method.// XV International scientific conference on Management and sustainable development. - Bulgaria:
University of forestry.
Jansons, V., Pushkina, J., Jurenoks, V., Didenko, (2014). K.Insurance premium assessment using statistical methods.//
XVI International scientific conference on Management and sustainable development. - Bulgaria: University of
forestry.
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Financial Management as a Tool for Achieving Stable Firm Growth
Svetlana Saksonova1, Svetlana Savina2
1
University of Latvia, Latvia, sksonova.svetlana@gmail.com
Higher School of Social Technologies, Latvia, svetlana.j.savina@gmail.com
2
Abstract
The purpose of this study is to show that drawbacks in firms’ financial management lead to the
inability of firms to ensure sustainable growth of their value.
This problem is relevant for firms in all countries. The main objectives of this paper are: to analyze
dynamics of value of the largest Latvian firms, to determine the drivers of these dynamics and, to
establish the main problems slowing the growth of firm value, which are related to the drawbacks in
financial management, and to provide suggestions for solving these problems.
This study analyzes financial management processes and identifies several key problems in financial
management.
Keywords: financial management, firm value, method of discounted cash flow
Introduction
The essence of firm financial management is that it has to be aimed at increasing the market value of
the firm and its shares. In other words all actions by the firm, analytical methods and management tools have
to be directed towards a one single goal – to help the company increase its value, making the managerial
decision-making process grounded in key considerations of firm value. Financial management of the firm is
based on its economic relationships to the external business environment, market processes, counterparties,
potential investors, as well as business owners. Innovative financial management of the firm, based on a
systemic approach and comprehensive utilization of modern financial instruments and technologies, is the
most potent tool capable of increasing firm value in the short-term as well as the long-term.
The purpose of this study is to show that drawbacks in firms’ financial management lead to the
inability of firms to ensure sustainable growth of their value.
The aim of this study is to show that financial management of the firm, when viewed as a system, is
actually an innovative approach to firm management. In practice firm management is almost never
conducted with a systemic approach in mind, and drawbacks in financial management processes lead to the
inability of the firms to ensure a sustainable increase in value, although turnover and asset size of the firm
may be rising.
This problem is relevant for firms in all countries. The main objectives of this paper are:
• to analyze dynamics of value of the largest Latvian firms,
• to determine the drivers of these dynamics and, finally,
• to establish the main problems slowing the growth of firm value, which are related to the
drawbacks in financial management, and to provide suggestions for solving these problems.
In order to discover problems in ensuring increase in firm value, in this research the authors study the
changes in firm value of the largest Latvian firms 201 during the period from 1998 until 2014. This research
uses the approach to firm valuation that is based upon current and future income. This approach provides for
the use of the method of discounted cash flow (henceforth referred to as DCF). DCF method is widely used
in practice and reviewed in scientific literature in the sphere of capital investment planning and firm market
value assessment. This valuation method has the potential to be one of the most precise ones, as different
rates can be used as a discount rate, including the weighted average cost of capital (hereinafter referred to as
WACC). By choosing the discount rate equal to the price of firm equity, the analyst effectively assumes that
the best alternative project is the ongoing economic activity of the firm. DCF analysis first has been
conceptually offered by I. Fisher (Fisher, 1930) and John B. Williams (Williams, 2012). Further these
methods were developed in the works by T. Copeland, T. Koller, J. Murrin, J. Hirshleifer and A. Damodaran.
(Copeland et al, 2000, Hirshleifer, 1958, 1970, Damodaran, 2012). The DCF method and the analysis of
results is done in stages (Gordon, 2013). The forecast of cash flow includes identification of its duration and
type, as well as the assessment of factors determining the cash flow. Accounting of the potential risk
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associated with this cash flow can be done using the following methods: risk-free equivalent method
(Robichek & Mayers, 1966) or the method of risk-adjusted discount rate (Houng-Yhi Chen, 1967). Each of
these methods has its own advantages and deficiencies; however, theoretically both methods should ensure
obtaining similar results. Though the DCF method is only a measuring tool, it allows to evaluate and
compare firm market value at different time periods. The resulting firm value forms the basis for making
financial decisions. In applying this method, the analyst has to take into consideration interest payments, cost
of equity, debt-to-equity ratio, WACC, earnings before interest, taxes, depreciation and amortization. The
above indicators essentially describe the system that is managed by the process of financial management.
They represent the objects of financial management. Therefore, the decrease in the aggregate index of firm
value calculated with the DCF method reflects the problems of financial management of the firm, as in this
case the main goal of financial management is not achieved. In determining firm value, the current WACC of
the firms is calculated. In the analysis the authors consider the firm value as net present value of free cash
flow, selected discount rate is equal to the firm’s WACC.
Findings/Suggestions
•
•
•
•
•
•
•
•
The authors believe that there are the following main deficiencies in the financial management:
Budget of the firms is constructed without consideration of strategic goals;
There are contradictions between functional approach of firm management and business logic, as
organizational structure of the firm based upon functional approach is focused on subordination
hierarchy and does not pay due attention to the hierarchy regulating responsibility for the end result;
The accounting system does not meet the requirements of budgeting and cost value estimation; data
for the analysis are received with a delay;
Insufficient, limited use of methods and tools of financial management;
Fragmentary nature of activities aimed at the reduction of financial risks;
Insufficient interaction of individual methods and tools of financial management;
Intuitive approach dominates in making financial and investment decisions, which to a large extent is
based upon the experience of firm management and not on the systemic approach;
In order to achieve this, this research suggests some innovations to firm managers and owners.
References
Amoako K.O. et al. (2013). Cash Budgetan Imperative Element of Effective Financial Management. Canadian Social
Science, Vol. 9, No. 5, pp. 188-191.
Chen K.C., Jassim A. (2013). Pedagogical-Cum-Analytical Tool for Teaching Business Valuation. Journal of Financial
Management and Analysis, 26(2):2013:69-83. Craig School of Business, California State University pp. 69-83.
Copeland T., Koller T., Murrin J. (2000).Valuation: Measuring and Managing the Value of Companies. (3rd ed.)John
Wiley & Sons, Inc.,USA.
Damodaran A. (2012).Investment Valuation: Tools and Techniques for Determining the Value of Any Asset.(3rd ed.)
John Wiley & Sons, Inc.,Published simultaneously in Canada.
Fisher I. (1930).The Theory of Interest. MacMillan & Co,New York, USA.
Gordon M. J. (2013).The Investment, Financing, and Valuation of Corporation. Martino Fine Books, USA.
Hirshleifer J. (1958). On the Theory of Optimal Investment Decision. Journal of Political Economy, August. Vol. 66,
No. 4, pp 329-352.
Hitchner J.R. (2011).Financial Valuation: Applications and Models. (3rd ed.) Wiley Finance.John Wiley & Sons,
Inc.,USA.
Houng-Yhi Chen. (1967). Valuation under Uncertainty. Journal of Financial and Quantitative Analysis. Sept., pp 313326.
Robichek A.A., Mayers S.C. (1966). Conceptual Problems in the Use of Risk- Adjusted Discount Rates. Journal of
Finance , Nr.4. Dec., pp 727-730.
Rupeika-Apoga R. (2014), Financing in SMEs: Case of the Baltic States, Procedia - Social and Behavioral Sciences 150
(2014), pp 116 – 125
Saksonova S. (2004). Uzņēmuma darbības plānošanas paņēmieni. Izglītības soļi. Latvia, pp 5-10.
Savina S. (2014). Process-oriented financial management system for multi-business companies aimed at achieving
strategic goals. RISEBA, Rīga, Latvia.
Williams J.B. (2012).The Theory of Investment Value. BN publishing, USA. Page. 650 p.
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Financial Security in the Baltic States
Nadežda Semjonova
Riga Technical University, Latvia, nadezda.semjonova@rtu.lv
Abstract
The present paper apply recently developed consolidated indicator of the state financial security to the
situation in Baltic States. The indicator summarise number of economic and financial parameters:
Government debt to GDP ratio; Debt service costs to collected taxes ratio; Budget deficit to GDP ratio;
Inflation rate; Long-term interest rate of the government bonds; External to total government debt ratio;
Debt to population ratio; Money stock to GDP ratio. The resulting indicator demonstrates reasonable
correlation with sovereign Fitch rating for Baltic States as a whole.
Keywords: financial security; government debt, sovereign rating.
Introduction
A problem of the state financial system instability becomes the issue of primary concern due to recent
world financial crisis, demonstrating urgent need for the instruments to evaluate the state financial stability
in the aspect of the government debt policy and management. Recent events posed some doubts on the
ability of worldwide acknowledged international credit ratings to predict potential government debt crises.
Author has developed the consolidated indicator for the evaluation of the state financial security. This
indicator was applied to the Latvian situation in 2000 – 2012 (Semjonova, 2014). Results demonstrated good
correlation between developed indicator and evaluations made by the international credit rating agencies.
The question whether this correlation remains in force for other countries still persists. In the scope of
the present paper, author considered Baltic countries as being similar in geographical, demographic, political
and economical conditions.
Data on Lithuania, Latvia and Estonia over the period of 2000 – 2012 were extracted from the Eurostat
database (Eurostat, 2013). The indicator of the financial security was evaluated using following criteria: 1)
Government debt to GDP ratio; 2) Interest (government debt service costs) to Collected taxes ratio; 3)
Government budget deficit to GDP ratio; 4) Inflation rate; 5) Long-term interest rate of the government
bonds; 6) External government debt to Total government debt ratio; 7) Government debt to Population ratio;
8) Money stock (M2) to GDP ratio. Selected criteria was used to compose consolidated financial safety
indicator in a form of
7
X =∑
i =1
Fi
R
⋅ m i + 8 ⋅ m8 → min ,
Ri
F8
(1)
where Fi – real indicator value, Ri – recommended indicator value, μi – indicator weight, that is normalised
by Σμi = 1 (Semjonova, 2014).
The X indicator was calculated using the weights, obtained from three different expert pools. The
indicator values were compared to Fitch sovereign ratings (Fitch, 2012), assigned to during period under
study. In order to perform the quantitative analysis, original Fitch rating was substituted by numerical
equivalent in a manner that value 0 corresponds to the lowest rating, but value 9.67 – to the highest rating.
Findings/Results
Figure 1 demonstrates the comparison of calculated X-indicators of Baltic States and Sweden with the
corresponding Fitch rating equivalent. There is moderate correlation between X indicator and Fitch rating for
the all Baltic States together, although detailed analysis shows no correlation for Estonia.
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1.8
1.6
1.4
X value
1.2
Lithuania
1.0
0.8
Latvia
0.6
Estonia
0.4
0.2
0.0
6
7
8
9
"Fitch" agency rating
Figure 1. Correlation between consolidated indicator and Fitch rating
In a time series, consolidated indicator increased during 2008 – 2009 recession for all Baltic States,
but for Estonia it was the smallest because of low increment of the government debt during crisis.
Conclusions
1. In a context of three Baltic States, evaluations of the financial security of separate countries are well
aligned with each other and correlates with Fitch sovereign rating
2. Further validation of the indicator required comparison with other rating agencies and broader selection
of countries.
References
Eurostat (2013). Data base Government Deficit and Debt. Retrived Seprember 02, 2013, from
http://www.eurostat.ec.europa.eu/.
Fitch - Complete Sovereign Rating History (2012). Retrieved December 05, 2014, from
http://www.fitchratings.com/gws/en/sector/overview/sovereigns.
Semjonova, N. (2014) Evaluation of the Latvian Financial Security: Aspects of Government Debt Policy. Safety of
Technogenic Environment. Vol.6, 2014, pp.36-42.
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Economic integration as a market failure remedy: the issue of monopolisation
Dmitrijs Skoruks1, Maija Šenfelde2
1
Riga Technical University, Latvia, Dmitry.Skoruk@gmail.com
2
Riga Technical University, Latvia, Maija.Senfelde@rtu.lv
Abstract
The research “Economic integration as a market failure remedy: the issue of monopolisation” gives
wide description of monopolization process’s nature, foundation source, development procedure and
actuality in the field of modern entrepreneurship, as well as evaluates its stimulated social losses and
retrievable benefits. The main question of the aforementioned research is definition and quantitative
analysis of monopolization process’s effects in the context of the Latvian industries as composing
element of a small open economy, directly subject to the influence of the globalization process, while
constructing an empirical model of the researched dilemma with the use of international historical
experience of monopoly formations standings. The current research uses a vast variety of monopolization
evaluation ratios and their econometrical updates on companies that are involved in the study procedure
in order to detect and numerically measure their market monopolizing potential, based on the
implemented price policies.
Keywords: monopolization process, econometrical modelling, monopolization level analysis,
monopoly market power, market consolidation trends.
Introduction
The goal of the current research, taking into consideration modern day economic challenges and above
described tendencies, is to, with the use of analytical, comparatively – economical, coherently – logical and
economic index analysis methodologies, conduct a full – scale study on the nature of monopolization
process, detect its appearance sources, define the caused effect in modern economic systems, as well as
analyse and evaluate the main monopolization influence factors that shape conduction of the process
according to various industries market conjecture specifics.
The hypothesis of the current research is as follows: modern day small open economies undergo a
natural, consequentially – economic based and supported by internal competition, process of market
consolidation, which leads to acceleration of individual monopoly power concentration in specified niches,
especially seen in industries that are restricted from the effects of import due to their functioning specifics.
The current researches scientific study is defined as five structural industries of Latvian national
economy, their market conjectures and specifics of competition conduction, as well as revealed
monopolization trends and its development algorithm. A special focus of attention will be given to the
mobile communication market as a system, naturally secured from macro – external competition such as
import and international equity infiltration due to the regional specifics of providing telecommunication
services.
The object of the current research is the Latvian Republic mobile communication market as well as
four other industries of the Latvian national economy along with involved companies, their supplied
services, pricing systems, management strategies, related additional products, empirical demand, supply and
client loyalty in the specified market and the above given factor cluster influence on the process of
monopolization within the framework of the evaluated industry.
The main goals of the current research are:
1. Defining the existence substantiations, causes and consequences of monopolization process;
2. Construct an empirical quantitative model that would allow to evaluate and conduct scientific study of
monopolization process combining the main existing methodologies with innovative causally –
coherent approach;
3. Conduct a study of the process of monopolization, its structured development and composition
algorithm with the use of the developed model;
4. Conduct a complex quantitatively – qualitative analysis of Latvian national economy’s industries with
the use of the developed model;
5. Conduct a verification test of the current research hypothesis with the use of the developed model,
consequentially confirming of neglecting its rationality and applicability.
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The following assessment methods had been used in order to conduct the current study: monographic
analysis, secondary statistical data analysis, graphic analysis, econometrical modelling, mathematical criteria
analysis, quantitative regression analysis, qualitative resulting interval range analysis and data grouping
method.
Findings/Results
The developed complex model of monopolization process evaluation had proven itself as a precise,
econometrical tool of market research conduction, able to leverage any statistical out scale data burst with
the carefully selected weight system, leading to a multi – functional, economically sustainable and
scientifically correct model of market data analysis. The level of monopolization in the mobile
communication, multi – purpose retail trade markets and banking sector had quantitatively measured and,
respectfully, qualitatively defined as medium – high and relatively – high, while the brewing industry and
pharmacy market are, respectfully, medium – low and relative – low, indicating that the industries, open to
import infiltration, have approximately two times lower combined monopolization evaluative coefficient
then those markets that are localized and enclosed from influence of external competition and globalization.
Conclusions
Summarizing the conducted research layout, acquired quantitative analysis result and their profound
qualitative evaluation, the following conclusions can be made:
1. The conducted research testifies and confirms the thesis on national economy structural crisis
stimulation of monopolization process within those industries that are undergoing a recession;
2. The conducted research had proven the much higher level of analytical precision of methods that
operate with market share data, rather the just the number of supplier, functioning in the defined
market, evaluating industry monopolization process development;
3. Positive consequences of monopolization can be seen in the forms of technological innovation,
completely new goods, introduced to the market or low cost producing organisation as the so called
“mass production effect”;
4. The hypothesis of the current research has been positively confirmed and deemed correct: indeed,
modern day small open economies undergo a natural, consequentially – economic based and supported
by internal competition, market consolidation, which leads to acceleration of individual monopoly
power concentration in specified niches, especially seen in industries that are restricted from the
effects of import due to their functioning specifics, the mentioned paradigm most efficiently mitigated
by full integration into the international trading system, hence, globalization had been proves to be an
economically justified and natural remedy for internal monopolization of modern markets.
5. The conducted research has proven the industries with low levels of involvement in international trade
and struggling trans-border economic integration generally host a higher internal monopolisation
potential that those with sufficient external competitive involvement due to non – elastic total natural
market capacity and inability of the demand amount to operatively relocate between the relevant
solvent consumption clusters.
References
Chamberlin, E. H. (2010). On the Origin of Oligopoly: Reediting .Cambridge University Press, 329, 113-149.
Coase, R. (2012). Durability and Monopoly .Journal of Law and Economics, 249, 47-111.
Fisher, I. (2012).The Nature of Capital and Income. Macmillan, 335, 173-198.
Judit K. (2012). Competition law and consumer protection. Kluwer Law International, 409, 307-312.
Keynes, J. (2011). The General Theory of Money, Interest and Employment. Macmillan, 407, 289-315.
Nešpors, V. (2012) Mikroekonomikas teorijas pamati. RTU izdevniecība. 253, 71-75.
Robinson, J. (2012). The Economics of Imperfect Competition: 1969 – 2012 Anthology Edition. Macmillan, 439, 189211.
Šenfelde, M. (2009). Makroekonomika: 3. izdevums. RTU Izdevniecība, 243, 51-53.
Tarbell, I. (2012). The History of Standart Oil Company. Macmillan, 416, 119-131.
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Assessment of Operational Risk Based on Copula Approach
Darja Stepchenko1, Irina Voronova2
1
Riga Technical University, Latvia, daria.stepchenko@gmail.com
2
Riga Technical University, Latvia, irina.voronova@rtu.lv
Abstract
Solvency II Directive requirements should establish common risk management principles for every
insurance company in the European Union. Basically, the requirements of the Solvency II Directive are
not just about capital of an insurance company but about risk assessment through the implementation and
enhancement of risk measurement and risk management. The research is performed in order to assess the
capital to cover possible losses due to the occurrence of the operational risk sub-risks. In order to evaluate
the operational risk the authors interconnect risk management and risk measurement. Operational risk is
one of the core risks of every insurance company under the Solvency II framework and can be defined as
the financial losses occurred due to incorrectly defined systems or processes; failures in IT system, human
mistakes or other external processes. In the performed research we propose to model operational risk by
skew t-copula and estimated tail dependence in each situation for modelling distributions with heavier tail
area.
Keywords: operational risk, risk management, risk measurement, skew t-copula.
Introduction
The requirements of the Solvency II Directive set many challenges to the Baltic insurance company
since requires not only enormous financial and human resources but also a change in the management mind
and decision-making process in a company. All in all, the Solvency II regime requires implementing,
improving and putting the risk culture into the heart of insurance company’s business processes.
Moreover, the new requirements of the Solvency II Directive, which will come in force from 1st
January 2016, set a lot of challenges to every insurance company in the European Union member states in
relation to the establishment of more sensitive and sophisticated risk coverage in order to ensure solvency
and the safety of policyholders. Based on the requirements of the Solvency II Directive, the insurance
companies should hold the appropriate amount of reserves that could ensure safety of policyholders and
beneficiaries. The target of this research is to study the improvement possibilities of the operational risk
assessment under the Solvency II regime. The object of this paper is assessment of operational risk and the
subject is operational risk. Operational risk is the a change in value caused by the fact that actual losses,
incurred from inadequate or failed internal processes, people and systems, or from external events, including
legal risk but excluding strategic and reputational risks
During the research, the authors interconnect risk management and risk measurement principles in
order to assess the operational risk considering core principles of the Solvency II framework.
The authors propose a new approach for the operational risk assessment to ensure proper capital in
order to cover this particular risk in an insurance company. The proposed algorithm is based on risk
measurement and risk management and is presented in Figure 1.
Due to the nature of operational risk that is less depended on macroeconomical cycles it can be
modelled by skew t-copula and estimated tail dependence in each situation for modelling distributions with
heavier tail area. The main idea of the proposed approach is to prove the possibility of identification of VaR
(Value at Risk) for the operational risk portfolio using a simulation technique. Because of the correlation
among different sub-risks of operational risk, their VaR (portfolio) has to be smaller than simply added
corresponding VaR of each sub-risk. The fact is that VaR is a quintile of a distribution and used as a (noncoherent) risk measure [1]. The proposed approach is based on the historical data that is recorded data in
relation to the sub-risks of operational risk from the annual loss database. In reality, the proposed model is
possible to use for any number of risks.
In order to prove the practical usage of the algorithm, the case study has been performed. The case
study on the assessment of the operational risk is based on a particular Baltic non-life insurance company.
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Identification of main risk
Identification of sub-risks of operational risk
Establishment of loss database
Statistics of events: losses and frequency
Recognition of corresponding distribution for losses of each identified sub-risk of
operational risk
Identification of correlation between identified sub-risks of operational risk
Modelling of capital to cover each identified sub-risk of operational risk with skew tcopula
Risk measurement
Establishment of risk catologue
Risk management
Assessment of operational risk
Assessment of capital to cover the total operational risk
Figure 1. The algorithm of capital measurement to cover the operational risk (created by the authors)
The simulation model based on the presented above algorithm is based on [2] and [3]. The case study
has shown that skew t-copula can be used to estimate VaR of portfolio of different operational risks and
finally calculate estimates of tail dependence for risks.
Findings/Results
Furthermore, the performed case study has proved that because of the correlation among different subrisks of operational risk, their VaR of portfolio is smaller than a simply added corresponding VaR of each
sub-risk. Moreover, the suggested approach of the capital measurement to cover the operational risk will
enable every insurance company to control and properly assess the capital required for the operational risk in
line with the requirements of the Solvency II Directive and to establish a more sophisticated and sensitive
risk assessment in future.
Conclusions
There are discovered several valuable advantages of skew t-copula usage in operational risk
measurement: copula has a very simple and clear simulation rules; by choosing degrees of freedom is
possible to find appropriate skewness of copula for simulation; another advantage of simulation is the
possibility to calculate average measure of necessary characteristic; further tail dependence can be evaluated
between risks. During the case study, it has been proved that because of the correlation among different subrisks of the operational risk, their VaR (portfolio) is smaller than a simply added corresponding VaR of each
sub-risk that allows keeping optimal volume of capital to cover the possible losses due to occurrence of the
operational risk. Because VaR is not coherent risk measure the VaR for simulated portfolio will always be
less than sum of VaR of different risks. Thus, the proposed method would not allow over-reserving and
putting gap capital to other needs of an insurance company.
References
Comité Européen des Assurances (CEA) and the Groupe Consultatif Actuariel Européen (Groupe Consultatif),
Solvency II Glossary. 2007.
Kollo T., Pettere G., Parameter Estimation and Application of the Multivariate Skew t-Copula. Copula Theory and Its
Applications. Proceedings of the Workshop Held in Warsaw, 25-26 September 2009, Springer, 2010. 289-298 p.
Pettere G., Kollo T., Risk Modeling for Future Cash Flow Using Skew t-Copula. Communications in Statistics Theory
and methods, 2011. 2919-2925 p.
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Municipal Waste Reduction Opportunities in Getlini ECO Landfill
M.Stradere1, K.Didenko2, V.Jansons3
1
Mechanics and Technology College of Olaine, Latvia, mstradere@inbox.lv
2
Riga Technical University, Latvia, Konstantins.Didenko@rtu.lv
3
Riga Technical University, Latvia, vladjans@latvet.lv
Abstract
The article reflects municipal waste reduction opportunities in municipal waste landfill site Getliņi
EKO. The strategy of the European Union establishes reduction of waste disposal as mandatory rule for
all Member States. In Latvia about 81% of municipal waste is produced in the region of Riga and Pieriga
and buried in Getliņi EKO municipal waste disposal landfill. The landfill regularly collects data about
quantity and composition of waste. These data used in calculations for assessing the possibility of
reducing disposal waste amount. The best of the calculated alternative gives possibility to minimize the
total quantity of waste till 47.6% by sorting as well as approximetly 170038 tons of recycling raw
materials per year.
Keywords: municipal waste, Getliņi EKO landfill, sorting, recycling
Introduction
Waste management in the European Community (EC) launched in 1989. EU waste management
provides waste reduction, re-use, recycling, disposal and monitoring. Municipal waste may dispose only if
they cannot be re-used, recycled or burned. EU directives in the field of waste management shall make
arrangements for qualitative waste recycling and waste collection system. By 2015 the EU Member States
must establish a system of waste collection including paper, metal, plastic and glass [1], while by 2020 must
be initiated at least 50% of the household paper, metal, plastic and glass waste reuse and recycling. Several
EU Member States, including Latvia, in 1995, more than 80% of municipal domestic waste dumps in
landfills. 2016 the amount of biodegradable waste is planned to be reduced by 65% in comparing with 1995.
The largest amount of municipal waste in Latvia come to Getliņi EKO where planned to dispose
12000000 t or 81.2% of all waste. Consequently, the greatest attention should be paid to reduce the quantity
of waste disposed in landfills. Recently in Latvia initiated and implemented a number of waste sorting
projects. In October, 2015 will start municipal and commercial waste sorting station construction in Salaspils
district Acone. Station capacity will be 100,000 t per year, including 33,000 t valid for processing materials
and approximately 20,000 tons per year of waste fuel material [4].
In Getliņi EKO municipal waste is used for biogas and further for heat and electricity production. To
schedule the energy production capacity, Getliņi EKO performs data collection of the waste amount entering
the landfill. During the 2007-2013 average landfilled waste is 324499 t, disposed in Getliņi EKO. From
2009 to 2013 the amount of waste has not changed dramatically. It points to the tendency of not restricting
the quantity of municipal waste and domestic waste sorting is definetly not sufficient.
Because at the 2016 amount of biodegradable waste is planned to be reduced by 65% compare to
1995, the Getliņi EKO must introduce waste sorting prior to waste disposal. For this purpose two alternatives
are calculated on the basis of the Getliņi EKO data on waste quantities and composition. The first alternative
is scheduled to remove the glass, plastic, metal, pet bottles, tetrapacks and construction waste. Be disposed of
in a landfill just food waste, paper, cardboard, garden waste, textile, leather, hazardous waste, municipal
waste and small fraction waste. The second alternative provides separate paper, cardboard, garden waste,
textile, glass, plastic, metal, pet bottles, tetrapacks and construction waste. Be disposed of in a landfill just
food waste, leather wastes, hazardous household wastes and small fraction waste.
Findings/Results
First alternative gives possibility to recycle 29.5% of total waste, while the quantity of waste for
disposal is 70.5%, which is not a sufficient indicator of the EU requirements. Although on average end up in
the recycling of waste sorted 95727 t per year. The second alternative looks at the possibility of municipal
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waste sorting even more significant reducing of the Getliņi EKO waste disposal. In this case Getliņi EKO
waste landfilled reduction through recycling waste sorting can be used on 52.4%, gaining an average 170038
tons of recycling raw materials per year.
Conclusions
In recent years, many municipal waste management regions created separate collection of waste, glass
packaging deposit system and perform other activities, still experiencing lag of many EU Member States
(Germany, Switzerland, Denmark) municipal waste management.
The first alternative Getliņi EKO waste landfilled reduction through recycling waste sorting can be
used for 29.5%, a moderate 95727 t recycling raw materials per year. The second alternative Getliņi EKO
waste landfilled reduction through recycling waste sorting can be used on 52.4%, gaining an average 170038
tons of recycling raw materials per year.
References
Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and repealing
certain
Directives,
Retrieved
from
http://eurex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32008L0098:LV:NOT
Screening of Waste Management Performance of EU Member States. European Commission.2012.Brussells, Retrieved
from http://ec.europa.eu/environment/waste/studies/pdf/Screening_report.pdf
Ltd. “Estonian, Latvian & Lithuanian Environment” (2014) Ltd. “Eco Baltia Vide” municipal and commercial waste
sorting enterprise in Salaspils district Acone property “Lauciena” EIA brief report, Riga, Page 31. Retrieved
from http://www.environment.lv/upload/content/kopsavilkums_uz_sabiedrisko_apspriesanu.pdf
Ltd. GEO Konsultants (2012) Getliņi, MWL „Getliņi” The imported volume and composition of the waste assessment,
Page 8. Retrieved from http://www.getlini.lv/docs/Pielikums_Nr_1_Pie_Teh_Specifikacijam.pdf
Getliņi EKO unpublished waste collection data 2007-2013
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Project Risk Register Analysis Based on the Project Management Term „Risk“
Definition Theoretical Analysis
Juris Uzulans
University of Latvia, Latvia, jouris@latnet.lv
Abstract
The aim of the current research is to examine real project risk registers to find correlations between
the project management theory, especially project risk management, and practical results of real project
risk management – the risk registers publicly available in the Internet.
In the research the author has analysed the compliance between the project risk management theory
which is described in “Aid Delivery Methods. Volume I Project Cycle Management Guidelines” and
“Caltrans Project Risk Management Handbook, Threats and Opportunities, Second Edition, Revision 0”
and the project risk registers.
In the previous research’s the author concluded that after analysing just 30 risk registers significant
differences could be found between the risk register described in the theory and risk registers of real
projects. Term “risk” theoretical analysis give information for deep risk registers publicly available in the
Internet analysis.
Keywords: project, risk, definition analysis, risk register.
Introduction
Project management is a new science characterized by dynamic development. The first editions of the
most popular project management guidelines – A Guide to the Project Body of Knowledge or Tasmanian
Government Project Management Guidelines were launched in 1996. The latest version of A Guide to the
Project Body of Knowledge – the fifth one – was issued in 2013. The latest – 7th version of the Tasmanian
Government Project Management Guidelines came out in 2011.
Although a new edition was issued in average every three years, the author considers that none of
them contains references to research results; it can be assumed that the manuals represent theoretical
reflection on the authors’ experience. However, the development of a science is impossible without research
and research-based conclusions and recommendations.
The research comprised analysis of 30 risk registers. The selection of the registers was made in
November, 2013 with the Google search engine by requesting “project risk register” and the first 10 web
pages with the search results were examined. Taking into account that the aim of the research was not to find
regularities in the risk registers, no assessment was made concerning the general set of risk registers and the
kind of the selection. The author believes that 30 risk registers constitute a sufficient number for comparing
the selected registers with the term “risk” defined in “Aid Delivery Methods. Volume I Project Cycle
Management Guidelines” and “Caltrans Project Risk Management Handbook, Threats and Opportunities,
Second Edition, Revision 0”.
The terms used in the term “risk” definition analysis was used for to create two theoretical risk register
for comparison with 30 real risk registers. Qualitative research methods are used.
Findings/Results
All registers are designed as a table with columns about the project risks. In several registers at the
beginning of the table or in a separate table there is additional information, for example, about the project,
explanation about the register completion or about the column values. The supplementary information was
not used in the research.
In the previous research the risk registers were described and it was concluded that by analysing just
30 risk registers significant differences can be found between the risk register described in A Guide to the
Project Management Body of Knowledge and real risk registers. Same differences it was found between two
theoretical risk register and 30 real risk registers.
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Conclusions
The terms which have been used in two term “risk” definitions has different meanings depending of
the branch of science. Therefore, it can not determine the truth of the theoretical risk registry.
The effectiveness of project risk management and the risk register as one of the components of
effective risk management could be one of the criteria of the risk register accuracy. However, the theory of
project management effectiveness has neither been fully designed. The research on risk registers could
promote and facilitate the research on the effectiveness of project management.
References
A Guide to the Project Management Body of Knowledge. (PMBOK® Guide) – Fifth Edition, Project Management
Institute, 2013, p. 589.
Aid Delivery Methods. Volume I Project Cycle Management Guidelines, EuropeAid Cooperation Office, 2004, p.158.
Caltrans Project Risk Management Handbook, Threats and Opportunities, Second Edition, Revision 0. Office of
Statewide Project Management Improvement (OSPMI), 2007, p. 65.
Uzulans, Juris. Project Risk Management Documentation Evaluation Methods / Project management development –
practice and perspectives : Third International Scientific Conference on Project Management in the Baltic
Countries, 10-11 April, 2014, Riga, University of Latvia : conference proceedings / University of Latvia. Faculty
of Economics and Management, Riga: University of Latvia, 2014. ISBN 9789984494708. P.291-299.
Uzulans, Juris. Project Risk Register Analysis And Practical Conclusions / Project management development – practice
and perspectives : Fourth International Scientific Conference on Project Management in the Baltic Countries, 1617 April, 2015, Riga, University of Latvia : conference proceedings / University of Latvia. Faculty of Economics
and Management, Riga: University of Latvia, 2015. ISBN 9789984459851. P.414-421.
Internet links for 30 risk registers.
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SUBSECTION
“COMPETITIVENESS OF LATVIAN ENTERPRISES IN
FOREIGN MARKETS (EKOSOC-LV 5.2.1) “
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The Role of Different Sources of Information on Attitude towards GMO
Inese Aleksejeva1, Biruta Sloka2, Ināra Kantāne3
1
University of Latvia, Latvia aleksejeva.inese@gmail.com
2
University of Latvia, Latvia biruta.sloka@lu.lv
3
University of Latvia, The University College of Economics and Culture, Latvia, inara.kantane@lu.lv
Abstract
GMO are used in many countries to prolong the period of use of different products, to add some
qualities for food and feed. GMO in everyday use is accepted in different countries, but not in European
Union. For Latvia exports of food it could be interesting as in many cases period of use of different
products is limiting export opportunities. The current paper analyses the public survey in Latvia results on
different information sources about GMO. The research results have shown that public in Latvia as most
trustful sources of information on GMO in average have evaluated for scientific publications, but lowest
average evaluations were given for relatives and friends. Average evaluations were rather high although
all evaluation scale (1-10) was covered by respondents.
Keywords: attitude towards GMO, public opinion, competitiveness, public survey
Introduction
In many countries worldwide public attitude towards GMO is studied as the public opinion in many
cases is very important for acceptance of policy directions towards production and consumption of GMO.
Regular monitoring is conducted in the countries of the European Union; experts on GMO issues share
opinions and results of scientific findings on GMO – on advantages and disadvantages of GMO use
(Aleksejeva, 2014). There are going on discussions world-wide and by specialists in different fields on how
much people and informed or disinformed about GMO (Twardowski & Malyska, 2015), (Perez-Torrado, et
al, 2015), on public attitude towards GMO (Blancke, et al, 2015), on influence on environment (Wickson,
2014), on GMO revolution in agriculture (Rotolo, et al, 2015) and many other aspects. The goal of this paper
is to analyse role of different sources on information on attitude towards GMO in Latvia and compare with
results in other countries.
For methodology of research it was made scientific publications analyses, survey of Latvia’s
inhabitants from September 2014 until June 2015, data for sampling frame were obtained from Central
Statistical Bureau of Republic of Latvia, to get representative survey results the database of respondents was
purchased from telemarketing company, for selection of units going to be included in the sample it was
applied systematic sampling - every twentieth inhabitant was approached by phone call and invited to
answer on survey questionnaire questions, for those respondents who did not answer the questionnaire
questions within two weeks a reminder was made (three reminders were applied for respondents who have
not answered the survey questions). Response rate was 23%. For data analysis of survey results were used
the descriptive statistical analysis – indicators of central tendency or location (arithmetic mean, mode,
median) and indicators of variability (range, standard deviation, standard error of mean), cross – tabulations,
non-parametric statistical tests (Kruskal-Wallis test, Mann-Whitney test, Kolmogorov-Smirnov test),
correlation analysis.
Findings/Results
The public survey (with 1184 respondents in all regions in Latvia) results have indicated that public
trust for sources of information on issues related to GMO in general were very different, but average
evaluations for all analysed sources of information (friends and relatives, books, informative events and
seminars, internet, newspapers and journals, radio, TV, scientific publications) were rather high and no one
source of information related to GMO had average evaluations (neither arithmetic mean, neither mode,
neither median) less than 5 in the 1-10 point scale as it is indicated in Table 1.
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Table 1. Evaluations of trust for sources of information about GMO
Friends
and
relatives
Books
Informative
events and
seminars
Internet
Newspapers
and journals
Radio
TV
Scientific
publications
Valid
874
882
868
936
894
874
900
926
Missing
310
302
316
248
290
310
284
258
Mean
5,17
6,90
6,78
5,94
5,74
5,77
5,82
8,22
Std. Error of Mean
0,080
0,070
0,070
0,062
0,068
0,069
0,074
0,059
N
Median
5
7
7
6
6
6
6
9
Mode
5
7 and 8
8
5
5
5
5
9
Standard Deviation
2,370
2,066
2,072
1,892
2,020
2,043
2,226
1,785
Variance
5,619
4,267
4,294
3,581
4,081
4,173
4,955
3,187
Range
9
9
9
9
9
9
9
9
Minimum
1
1
1
1
1
1
1
1
Maximum
10
10
10
10
10
10
10
10
Source: Author’s calculations based on Inese Aleksejeva conducted inhabitants of Latvia survey in 2014 and 2015 (n=1184),
evaluation scale 1 – 10, where 1 – do not trust; 10 – fully trust
The results of the Latvia’s inhabitants survey indicate that the most trustful source on information
about GMO are scientific publications with average mean evaluation of 8,22 with mode 9 and median 9
although all evaluation scale was covered, the lowest evaluated source of information was friends and
relatives with average mean evaluation of 5,17 with mode 5 and median 5 although all evaluation scale was
covered, the biggest variability of evaluations was for source “friends and relatives”.
Conclusions
Scientific discussions with different points of view are going on in different fields of research and
results are very widely analysed in scientific publications world-wide.
Trust on information sources related to GMO issues were evaluated rather high with the highest
evaluations for scientific publications and with the lowest evaluations for relatives and friends as source of
information related to GMO.
References
Aleksejeva, I. (2-014). EU Experts Attitude towards Use of GMO in Food and Feed and other Industries. Procedia,
Social and Behavioral Sciences, 110, 494-501.
Blancke, S., van Breusegem, F., de Jaeger, G., Braeckman, J., van Montagu, M. (2015). Fatal Attraction: the Intuitive
Appeal of GMO Opposition. Trends in Plant Science, 20(7), 414-418.
Perez-Torrado, R., Querol, A., Guillamon, J.M. (2015). Genetic Improvement of non-GMO wine yeasys: Strategies,
Advantages and Safety. Food Science and Technology, 45, 1-11.
Rotolo, cc., Francis, C., Cravioto, R.M., Viglia, S., Pereyra, A., Ulgiati, S. (2015). Time to Re-think the GMO
Revolution in Agriculture. Ecological Informatics, 25, 35-49.
Twardowski, T., Malyska, A. (2015). Uniformed and Disinformed Society and the GMO Market. Trends in
Biotechnology, 33(1), 1-3.
Wickson, F. (2014). Environmental Protection Goals, Policy & Publics in the European Regulation of GMO’s.
Econogical Economics, 108, 269-273.
The paper was supported by the National Research Program 5.2. EKOSOC-LV
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Theoretical Justification of the Model of Evaluation of Renewable Energy
Sources Integration on Fossil Fuel Energy Sources Operation Efficiency
Māris Balodis1, Remigijs Počs2, Valērijs Skribans 3, Polina Ivanova4
1
Riga Technical University, Latvia, maris.balodis@latvenergo.lv
2
Riga Technical University, Latvia, remigijs.pocs@rtu.lv
3
Riga Technical University, Latvia, valerijs.skribans@rtu.lv
4
Riga Technical University, Latvia, polina.ivanova@latvenergo.lv
Abstract
This document provides the information about the opportunities of situation evaluation. There are two
methods for situation evaluation: complex approach and analysis of situation. In details the complex
approach is going to be studied. According to complex approach situation is evaluated using theoretical
model. This document provides the main points about situation evaluation methods, explanation of
evaluation methods choice and aspects about theoretical model creation.
Keywords: complex approach, situation analysis, systemdynamics, theoretical model
Introduction
Energy problems are common worldwide, but it has own character in each country [1]. The current
situation in Latvia can be described in such way [2]: competition increase between energy production
companies; changeable situation in fuel and electricity market; new market regulation mechanisms; increase
of energy efficiency demand and penetration of renewable energy sources (RES) in energy production
process. So there is a big competition in energy sector in Latvia. So it is necessary correctly evaluate
situation and its influence on the investigated object to stay competitive. According to evaluated results
appropriate actions should be taken.
The situation can be evaluated using complex approach or situation analysis. The situation analysis
means orientation to the certain problem, which concerns only investigated object. Using the complex
approach the situation is evaluated in system and investigated object is a part of this system. Man creates
system according to situation and desired results. Situation is modelled using the appropriate software.
Systemdynamics is approach, which deal with complex system. Systemdynamics investigate how some
facts and variables influence investigated object using mathematical relationships [3, 4]. In this research
authors use systemdynamics approach to create the theoretical model to evaluate the integration of RES on
the investigated object.
As investigated object AS Latvenergo Riga CHP-1 and Riga CHP-2 plants were chosen. Both CHP
plants are up to date power plants, which operate under competitive conditions. For example, before 2008
Latvenergo CHP plants were the main energy source, which produced thermal energy on the right bank of
Riga district heating system. After 2008 the situation has changed, because new fossil fuel energy sources
appeared. So competition for load distribution has increased [3]. Moreover, it is forecasted that in near future
the level of competition will increase more due to increase of RES use. Authors want to evaluate the RES
influence on AS Latvenergo Riga CHP-1 and CHP-2 power plants in large scale, so complex approach is
chosen.
Firstly, the theoretical model should be created, which can be used to evaluate RES integration and its
influence on fossil fuel energy sources operation efficiency. Secondly, the structure of theoretical model
should be developed (Fig. 1). It means that structure’s elements (blocks, sub-blocks, variables, connections,
causal relationships, etc.) should be identified. Thirdly, according to the theoretical model and its structure
the systemdynamics model should be developed. Figure 2 shows the example of systemdynamics model. It is
a systemdynamics sub-model of sub-block “Small CHP plants”.
To show difference between both methods – complex approach and situation analysis – it is planned
to reflect the examples of second approach (situation analysis), too.
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Figure 1. The structure of theoretical model
Figure 2. The example of systemdynamics sub-model
Findings
The model creation is the most challenging step in complex approach - all elements and connections
of model structure should be observed. That is why cooperation of experts and academics from different
scientific fields is necessary. Moreover modelled situation should be evaluated from different point of view:
energy sector, economic sector, legislation, etc.
Conclusions
The choice of complex approach or situation analysis is depend on results, which are planned to
obtain. Complex approach evaluates situation globally (in system). Situation analysis focuses on certain
situation and object.
References
Skribans V. Latvijas energosektora sistēmdinamikas prognozēšanas modeļa izstrāde. Enerģētika un elektrotehnika.
Nr.26, 2010.
Žīgurs A., Kunickis M., Balodis M., Linkevics, O., Stuklis I., Ivanova P. Evaluation of Exhaust Gas Condensing
Economizer Installation at Riga CHP Plants. No: Proceedings of REHVA Annual Conference 2015, Latvija,
Rīga, 6.-9. maijs, 2015. Rīga: RTU PRESS, 2015, 149.-154.lpp.
Skribans, V. Jauna produkta ievešanas tirgū modelēšana, izmantojot sistēmdinamikas metodi. Tautsaimniecība – teorija
un prakse. Nr.17, 2008, 99.-105.lpp.
Hollmann M., Voss J., Modeling of Decentralized energy supply structures with „System Dynamics”, Amsterdam:
IEEE, 2005, 6 p.
Kuņickis, M., Balodis, M., Sarma, U., Cers, A. Efficient Utilisation of Cogeneration and Fuel Diversification. No:
International Symposium, Dedicated to the 150 Anniversary of the Faculty of Transport and Mechanical
Engineering: Scientific Program and Book af Abstracts, Latvija, Riga, 16.-20. oktobris, 2014. Riga: RTU, 2014,
35.-36.lpp.
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Characterisation of competitiveness factors in healthcare industry in Latvia
Daiga Behmane1, Anita Villerusa, Uldis Berkis , Anita Kokareviča
1
Riga Stradins University, Latvia, Daiga.Behmane@rsu.lv
Abstract
The concept of competitiveness has originated in the theory of microeconomics but in last years it is
has come upfront for the comparison of national economies at macroeconomic level. Competitiveness of
health system at macro level can be described according to OECD definition. The aim of the study is to
find out factors that influence competitiveness of health systems in general and to elaborate a framework
for further competitiveness analysis of health care system in Latvia. Literature sources related to different
aspects of competitiveness in health care were reviewed. The study provides analysis of interlinked
factors influencing the competitiveness of the health system at different levels and focuses on the
competitiveness of health system in external markets. Internal factors influencing competitiveness of a
national health system are: health care market size and strength, including resources and capital
available, ease of market entry and exit, the range of medical services and the threat of substitute,
information on prices and quality of services and providers, efficiency of government regulation and
bureaucracy level of public administration.
Keywords: Health system, components of competitiveness, nature of market factors and government
regulation in health care
Introduction
The concept of competitiveness has originated in the theory of microeconomics but in last years it is
has come upfront for the comparison of national economies at macroeconomic level. Recent high level
political documents as Europe 2020 highlight the importance of national and regional competitiveness as a
means for the development of the European economy.
Assuming that health care system is a part of national economy, competitiveness of health system at
macro level can be described as (adapted from OECD definition of competitiveness): measure of health
system’s advantage or disadvantage in providing it’s services in international markets [1]. In other words,
health system is competitive if it produces the same quality health services, but at lower price in a setting
attractive for international customers.
The World Economic Forum (WEF) defines competitiveness as the set of institutions, policies and
factors that determine the level of productivity of the country [2]. Competitiveness of the health system is
influenced by individual components, such as: nature of health services, market and provider size and
power, behavior of economic agents, etc.
International competition has been assumed as a facilitator for defining policies and activities
enhancing performance at national level.
Nevertheless that the application of the concept of competitiveness in health care is emerging there is
not a common and undistinguished methodology to deal with.
The aim of the study is to find out factors that influence competitiveness of health systems in general
and to elaborate a framework for further competitiveness analysis of health care system in Latvia.
A literature review was performed. Literature sources related to different aspects of competitiveness
in health care were reviewed. Various approaches and definitions of competitiveness and its dimensions in
health care were analyzed. Different interlinked factors influencing competition in health system at macro
and micro levels as well as the role of governmental and international regulation were examined.
Findings/Results
Over last decades European health systems have been built more on common values such as solidarity,
universal access and equity and much less on efficiency or competitiveness. Growing needs and demand,
population ageing, resource scarcity and economic pressures facilitate development of different approaches
to facilitate efficiency gains and value for money approach in health systems. It is evident that the value of
competition lies in the extent to which it allows to achieve health policy goals [3] and competition generally
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should eliminate inefficiencies yielding to high production costs transferred to patients through high health
service and delivery costs.
The study provides analysis of interlinked factors influencing the competitiveness of the health system
at different levels and focuses on the competitiveness of health system in external markets.
Internal factors of the national health system contribute to define competitive advantages or
weaknesses, Porter’s five forces framework can be applied for the competitiveness analysis of a firm and
national health care industry level. Internal factors influencing competitiveness of a national health system
are: health care market size and strength , including resources and capital available, ease of market entry
and exit, the range of medical services and the threat of substitute, information on prices and quality of
services and providers, efficiency of government regulation and bureaucracy level of public administration.
Regulatory framework and institutions, clear rules for market entry and exit, access to information and
the overall capacity of governmental agencies in fulfilling their tasks are substantial to ensure efficiency in
health care system.
On the other, health care industry is affected by the EU and international regulation of competition,
evolving concept of patients’ rights, patient mobility, cross-border health care, ICT development and others.
External factors may drive new forms of competition leading to new opportunities or threats.
Conclusions
The framework based on factor analysis of competitiveness reveals the complex issue of
competitiveness of health system in Latvia. The study outlines that of particular interest among other factors
should be prices and quality, which are subject of different types of regulation and interlinked with other
important factors such as human resources, health technologies and service provision in the health system.
External factors influencing national health system is a subject of less research and has an emerging role in
the increasing international context of health systems and should be a part of the further analysis framework.
References
Organization For Economic Co-Operation Development. Competitiveness. 2013. [2013-12-15]. Available from:
http://stats.oecd.org/glossary/detail.asp?ID=399
The Global Competitiveness Report 2014-2015. Available from:
http://www.weforum.org/reports/globalcompetitiveness-report-2014-2015
Expert Panel on Effective ways of Investing in Health (EXPN), Report on Investigating policy options regarding
competition
among
providers
of
health
care
services
in
EU.
Available
from:
http://ec.europa.eu/health/expert_panel/opinions/docs/008_competition_healthcare_providers_en.pdf
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TTIP in Healthcare Industries: Transformation of Internal into External
Competitiveness
Uldis Berķis1, Anita Villeruša, Anita Kokarēviča, Daiga Behmane
1
Riga Stradins University, Latvia, Uldis.Berkis@rsu.lv
Abstract
Healthcare sector in Latvia has been comparatively well protected from external market pressures. As
the TTIP includes healthcare as one of main transformational sectors, external competition will increase
selective pressure in yet shielded public sector. Institutional analysis of open procurement instead of
guaranteed quota system, together with comparative sectorial and international studies, provides insight
into possible trajectories of sectorial development. Free trade agreements are a powerful instrument for
transformation of external competitiveness criteria into selective means in the national economy.
Keywords: Healthcare sector, external competitiveness.
Introduction
The Transatlantic Trade and Investment Partnership is the forthcoming largest development in the
World trade. While the trade part is concerned with certification and standardisation, the investment
activities are negotiated in a non-transparent process, there is very few disclosed information on the progress.
Healthcare industries are the largest discussion object regarding a massive opening of previous quasiclosed economy branches. Protectionism of healthcare is reality on both sides of Atlantic. While Europe is
more focused on control of healthcare providers, in the USA the health insurance market has very specific
properties. It must be noted that related domains research has never been, and according to the resolution of
the European Parliament of July 8, 2015 the education is envisaged not to be a subject to TTIP.
Institutional analysis of the current market structure clearly identifies observational points arising from
market opening. They are – open procurement instead of market share guarantees to public health care
providers; higher comparability of professional qualifications and full cost calculations of them; increase of
purchaser power in the market; investment valuation in the public sector; wage setting mechanism reflecting
full costs: this will be a very challenging issue in Latvia with a high share of retired persons continuing to
work and thus deviating from full cost model and distorting wage structure.
Comparative economic analysis uses facts from earlier market openings; however, there are very few
examples of massive former public sector transformations. The “overall health service performance”
comparisons according to the WHO methodology insufficiently take in account investment decisions by
various actors. Earlier opening like in NAFTA services markets did not explicitly mention healthcare, but
subordinated it to general services. [1]
Findings/Results
The EU countries are at very different stages on their path towards opening the healthcare markets.
The cross-border healthcare provision directive 2011/24/EU introduces some elements of competition, in a
very limited scope of coverage. The directive cannot fully unfold its power also because of striking income
disparities in the EU, orders of magnitude higher than in the USA. Therefore it must be assumed that the
internal market of the EU is very imperfect in the advent of TTIP.
In the poorer EU countries massive rationing of healthcare is taking place. In Latvia a system of
quotas determines the supply of public services. While the general practitioners are determining the demand
for services, and the patients are free to choose the provider, the real accomplishment of economic
transaction occurs only in case if there is a quota allocated on the supply side. Needless to say, the system of
quotas is very hardly compatible with any form of FTAs. The solution can be elimination of the system of
quotas, however, this cannot be funded by the public sector, or alternatively, quota provision to any provider
upon their request, which in fact promotes further fragmentation of the services pool and worsens investment
sustainability.
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Less discussed problem regards the labor in healthcare sector. In a sector highly protected by a
qualification system, in country like Latvia there can be substantial upward pressure on wages. While TTIP
does not affect free movement of labour, nevertheless, upward pressure on wages can develop under the
conditions of limited worker supply. [2]
Conclusions
Important argument in favour of TTIP is the improvement and larger volume of services provided by
Latvian origin providers to clients abroad. This will depend on critical measures to improve the external
competitiveness of health care, of investment nature, and means to inform the prospective clients. This can
be impetus of development of new provision networks amplifying the IT and mobile technology capabilities.
Better digitalisation on the side of USA companies can be their substantial advantage. Exemption of
healthcare from large-scale state investment aid schemes due to TTIP will be a very substantial challenge for
Latvian companies active in the provision of services related to their investment sources and decisions.
References
Caulfield T.A., Von Tigerstrom B. Health Care Reform and the Law in Canada: Meeting the Challenge. University of
Alberta Press, 2002.
Scherer C. The Transatlantic Trade and Investment Partnership (TTIP): Implications for Labor (Labor and
Globalization). Hampp, 2014.
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Role of Social Partners for Work-Based Learning: Results of Surveys
Ilze Buligina1, Biruta Sloka2, Ināra Kantāne3, Anita Līce4
University of Latvia, Jāzeps Vītols Latvian Academy of Music, Latvia, Ilze.Buligina@gmail.com
2
3
University of Latvia, University College of Economics and Culture, Latvia, inara.kantane@lu.lv
4
University of Latvia, Latvia, Anita.Lice@gmail.com
1
Abstract
Introduction of work-based learning in Latvia has required changes in decision making of different
stake holders to make the best possible choice. Experience in many developed counties have shown that
work-based learning (WBL) have several advantages and requires good cooperation among the policy
makers, public administrators, employers, educators and social partners. Current paper analyses
experience of scientific research in this field as well as uses empirical results of two surveys: survey of
social partners and survey of employers. For most of the evaluations of respondents on different aspects
analysed in the surveys evaluation scale 1-10 was applied to get detailed attitude of respondents and be
able to make deeper statistical analysis of survey results. The data of both surveys are analysed by
descriptive analysis, cross-tabulations and multivariate analysis – factor analysis. The results have
indicated that for most important aspects of introduction and realisation of WBL views of employers and
social partners are alike, but more deeper analysis have to be followed to prepare suggestions for the most
efficient approach of WBL.
Keywords: vocational education and training, work-based learning, social partners
Introduction
A range of countries (Germany, Austria, Switzerland, the Netherlans, etc) have been successfully
addressing the issue of qualified labour force development by implementing work-based learning (WBL)
approaches or apprenticeship schemes in vocational education and training (VET). Social partners, especially
employers, are indispensable actors and counterpart in this respect. In Latvia the introduction of WBL in
minor scale started in 2013, with the aim of piloting various approaches to inform the policy decisions by the
VET public administration at national level. As the recent amendments of 2015 to the VET Law stipulate
WBL as a form in the implementation of a VET program, the public administrations are currently faced with
a task to develop specific legal framework for implementing WBL at system level. As the employers are
major stakeholders in the implementation of WBL, the conceptual approaches underlying the legal
framework, among other issues, need to be informed by the opinions and interests of the employers. To this
end, the authors carried out a survey (2014-2015) among employers to find out their opinions, i.a., on the
relevance of certain centralised activities to promote the introduction of WBL in Latvia.
The present paper provides an in-depth analysis of this particular aspect, as the interest and motivation
of employers as key stakeholders is a factor determining the overall success of the process. In the light of a
recent research based information note to the Cabinet of Ministers prepared by the Ministry of Economy of
Latvia on the potential fiscal impact of various approaches in the involvement of employers in WBL, the
analysis presented in this paper contribute to improved strategic decisions by public administrations in
Latvia. The research results show that the employers are attributing almost equally high relevance to all of
the proposed support activities. As these measures are under the responsibility of different public
administrations in Latvia (Ministry of Education and Science, Ministry of Economics, Ministry of Welfare,
Ministry of Finance and other), this leads to conclude that education and training processes are undergoing a
gradual shift of focus and the overall paradigm, including multiple public stakeholder responsibility.
Especially since the employers have given the highest relevance (8,9 mean in a 1- 10 point scale) to the
proposed measure “Coordinated activities by public administration institutions in addressing training and
employment issues”. As in Latvia the education and training issues traditionally have been solely under the
supervision of the Ministry of Education and Science, a need becomes apparent for a new research informed
strategic approach for multiple stakeholder involvement in the implementation of VET and WBL for the
training of a qualified work-force.
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Scientific publications analyses, survey of experts involved in vocational education organisation, for
data analysis of survey results were used descriptive statistical analysis – indicators of central tendency or
location (arithmetic mean, mode, median) and indicators of variability (range, standard deviation, standard
error of mean), as well as multivariate statistical analysis: factor analysis.
Findings/Results
Theoretical background
New approaches in vocational education, like work based learning has made requirements for new
training/teaching method’s development (Leonard & Talbot, 2009). Needs for academic research in
application of work – based learning has required for new research methods development (Costley, et al,
2010) and new adjustments of traditional research methods (Walsh, 2011) and new approaches for realisation
(Workman, 2007) and challenges in future (Billett, 2001).
Empirical Research Results
Results of factor analysis on social partners evaluations on statement “What centralised activities do
you consider as relevant for a successful introduction of WBL in Latvia?” indicates that as result of factor
analysis were identified two complex factors F1 and F2, where complex factor F1 we named as state
organisational and financial support and complex factor F2 we named as information and education
provision factor.
Entrepreneurs and sectors expert’s evaluations on statement “What centralised activities do you
consider as relevant for a successful introduction of WBL in Latvia?” for several evaluation statements have
covered the full evaluation scale, but in general evaluations were very high: arithmetic means were between
7 and 9, but mode were 10 except for evaluation on “information campaigns in mass media”.
Results of factor analysis on entrepreneurs and sectors expert’s evaluations on statement “What
centralised activities do you consider as relevant for a successful introduction of WBL in Latvia?” indicates
that as result of factor analysis were identified two complex factors F1 and F2, where complex factor F1 we
named as state organisational and financial support and complex factor F2 we named as information and
education provision factor.
Conclusions
In the situation of fast technology development and increasing requirements for labour force there are
new approaches in competitive labour force preparation where more and more significant influence has work
based learning.
Social partners have significant influence for organisation of work-based learning for preparation of
competitive labour force which is highly appreciated by employers and by sector experts.
Results of factor analysis on entrepreneurs and sectors expert’s evaluations on statement “What
centralised activities do you consider as relevant for a successful introduction of WBL in Latvia?” indicates
that as result of factor analysis were identified two complex factors: F1 - organisational and financial support
and complex factor F2 - information and education provision factor.
References
Billett, S. (2004). Workplace Participatory Practices. Conceptualizing Workplaces as Learning Environments. Journal
of Workplace Learning, 16(6), 312-324.
Costley, C., Elliott, G., & Gibbs, P. (2010). Doing Work-based Research: Approaches to Enquiry for InsiderResearchers, London, Sage.
Walsh, A. (2011). Beyond a Naturally Occurring Ethnography: the Work-Based Researcher. Higher Education, Skills
and Work-Based Learning, 1(1), 38-51
Workman, B. (2007). Casing the Joint: Exploration by Insider-Researchers Preparing for Work-Based Projects. Journal
of Workplace Learning, 19(3), 146-160.
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Identification of the Main Challenges of Rail Infrastructure Competitiveness
Justina Hudenko1, Remigijs Počs2
1
Riga Technical University, Latvia, justina.hudenko@gmail.com
2
Abstract
This paper presents the analysis of main challenges affecting competitiveness of the Latvian rail
infrastructure - the lack of data about demand conditions; evaluation of externalities; non-compliance of
the beneficiaries and founders of the rail infrastructure. The research is based on hypothetical-deductive
procedures and the system object oriented analysis of highly cited relevant literature. It was concluded
that competitiveness of the rail infrastructure, is hampered by its existing design. The evaluation of the
rail infrastructure competitiveness shall be expanded to the evaluation of externalities’ effects and needs
of consumers’ market.
Keywords: Public-use railway infrastructure, competitiveness.
Introduction
The following features of the rail infrastructure economy were stated in the previous studies (Hudenko
& Pocs, 2013; Hudenko & Pocs, 2014, Hudenko & Pocs, 2015; Hudenko, 2013):
1. There is a lack both of available statistics and of managerial data about factors that influence main
cargo flows from CIS countries. The rail infrastructure manager has a natural monopoly position in
logistic chain and there is a poor collaboration among the participants of logistic chains;
2. It is not possible to adapt the rail infrastructure capacity to short-run demand of transported product
markets quickly due to rigidity of production factors of rail infrastructure. This does not match current
changes in production and logistic strategies, which are switching to the ‘just in time’ method. The
modernization of processes in the rail infrastructure asks for heavy and long-run capital investments;
3. Rail transport is forced to compete with other transport modes that are responsible for traffic
congestion, extra fuel consumption, higher accident level and air pollution. Nevertheless, it is too
complicated to connect beneficiaries of the rail transport externalities to a concrete government level
(municipal, state or EU) in order to adjust competition using taxes or subsidies. This is one of the
reasons why non-commercial externalities of rail transport are not covered by external funds.
This study is aimed at analysis of the impact of the stated features on rail service export
competitiveness according to the objectives of the National Research Program 5.2. EKOSOC - LV.
The research is based on hypothetical-deductive procedures and the system object oriented analysis of
highly cited relevant literature. During the research process, distinctive features of Baltic state railways were
established and literature reviews on relevant cases of different countries were collected.
The conclusions were based both on the interpretation of the cumulative study results and on the
assessment of the existing situation in Latvian railways.
Findings/Results
The majority of the rail shipment in Latvia is carried out from neighbouring countries to the Latvian
sea ports. The consumer prices of goods transported are mostly quoted by stock exchange. The rigidity of
charges and capacity of infrastructure decrease the elasticity of supply chain – when the price on stock
exchange is high, the increased transportation volume is limited by infrastructure capacity, but when the
price is low, the transportation is unfavourable due to conformable charge.
The existing rail network in Latvia was built in order to provide intensive transportation of raw
materials from mining places in CIS countries and to provide transportation of habitance within the former
USSR territory. Shifting of borders, urbanization and development of Northern seaports have changed the
expected loading level. As a result, some of lines are non-uniformly overloaded, but some are underutilized.
A commercial undertaking of infrastructure management without state funding (with exception of EU
funds) results in year-by-year maintenance and development decisions. It is specific for rail that unperformed
maintenance or renewal works accumulate additional costs in future. This situation as well as forced
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provision of externalities rise exploitation costs of rail, whereas the most cost effective way is to plan rail
maintenance on life-cycle (20-30 years) basis. The historical lack of investments resulted in the highest
average track access charges in Europe (IRG_Rail, 2014).
Conclusions
It was concluded that competitiveness of the rail infrastructure is hampered by its existing design. The
evaluation of the rail infrastructure competitiveness shall be expanded to the evaluation of externalities’
effects and needs of final consumers’ market. These will give a certain probability to the drawn calculations.
The obtained results should be considered in national transport development plans and state budget planning.
References
IRG_Rail. (2014). 2nd IRG-Rail Annual Market Monitoring Report, available: www.irg-rail.eu
Hudenko, J., Počs, R. (2015). The Discrepancy between the Service Export Incomes of Rail and Sea Transport among
Baltic States Transit Corridors. Proceedings of the 19th World Multi-Conference on Systemics, Cybernetics and
Informatics (WMSCI 2015), United States of America, Orlando.
Hudenko, J., Počs, R. (2014). The Effects of Internal Failures and External Regulations on State Funding of the PublicUse Rail Infrastructure. International Scientific Conference „Economics and Management – 2014" (ICEM2014): Conference Proceedings, Latvia, Riga.
Hudenko, J. (2013). Actual Problems of Public-Use Railway Infrastructure Development Modeling. Procedia - Social
and Behavioral Sciences, 2014, pp.216-218.
Hudenko, J., Počs, R. (2013). The Microeconomics of the Latvian Railway. 54th International Scientific Conference on
Economics and Enterneurship (SCEE'2013): Proceedings, Latvija, Rīga.
The National Research Program 5.2 EKOSOC - LV supported this study.
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Baltic States Airport branding: Content Analysis of Vision Statements
Ksenija Ijevleva1, Sergejs Paramonovs2
1
2
University of Latvia, Latvia, kijevleva@inbox.lv
University of Latvia, Latvia, sergeypar@yahoo.com
Abstract
Aviation industry is very conservative due to existing safety regulations, available technology and
stereotypes in societies. Because of that, advanced marketing within the industry is primarily targeting
geographical locations or specific businesses within the premises, but not the airports themselves. If one
is taking flight to Riga from Barcelona, then marketing specialists would promote the destination, the city
of Riga, more than the airport itself. Airports are comprehended as service providers only. This pilot
study is about testing the newly developing marketing niche – branding of airports. This becomes
possible due to private entrepreneurship is overtaking the old fashioned government run airfield
businesses and turn those into much more dynamic enterprises, where branding becomes added value
generating mean. With the proper branding, an airport may turn losses into multimillion profits, like
Schiphol Amsterdam Airport in the Netherlands did. On the other hand, Baltic States airports are stately
run. The challenge is to create understanding that branding of the national airports would generate strong
income and, in return, create a very positive image of the state.
Keywords: airport marketing; airport branding; Riga airport development; The Baltic States.
Introduction
The goal of this paper is to analyze and compare brands of three Baltic States airports – Riga, Vilnius
and Tallinn. Hypothesis is that not only location, but branding may create additional competitive advantage.
By some reason, increase in passengers’ turnover at Riga International Airport is less than the one at Vilnius
airport for the previous two years. As well, Tallinn was nominated and won a prize for being the best
European Airport in 2014. There is a question raised, by what reason the two described situations are taking
place? The authors claim that lack of branding is pulling the Riga back at the given time. It is to note that
actually none of three airports effectively branding itself. The better business increase numbers at Vilnius
rather come from discount pricing policy. On contrary, better positioning and the service award at Tallinn are
due to lack of passenger traffic – it is easier to provide better service to a few passengers. Riga turns the most
of passengers and is running close to over its capacity. There is an urgent need to introduce branding to the
airports, and doing so prepare strategic changes. One of the greatest examples of the airport’s brandingrebranding comes from Berlin Tempelhof.
There several methods were applied to investigate the matter. Primary methods were content and
analysis of scientific publications. Subject is airports and an object is airport’s vision statements. To
undertake the analysis of the vision statements of three Baltic States airports, there were official websites and
Year Books reviewed. If the statements were not found, dedicated to attracting investors websites reviewed
or administrations directly contacted. Although, the airports are different in size and are not equal in terms of
geographical location (Riga has an advantage), those are commonly compared and openly contend one
another. What is common among three – operating characteristics and governance model (Castro &
Lohmann, 2014).
Findings/Results
Study findings spin around employed, but never named so branding strategies as reflected in vision
and mission statements of the airports. However, accordingly to Tse (2009), the branding strategies must
include the following elements: (1) selection of food and beverage providers; (2) selection of retail stores; (3)
pricing strategies; (4) architectural design and layout; (5) airport artwork; (6) services, entertainment and
amenities; (7) service staff; and (8) logos and slogans. It was found that none of the airports is actually using
terms “branding” or “branding strategy.” Those rare elements, though, could be found in the visionary,
missionary and strategic goals statements. For example, only Riga has a new architectural vision of form and
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art style. None of the airports is using variety, but clearly defined pricing strategies, which would reflect in
specific types of onsite retailers and eateries.
Conclusions
The main conclusion of the given pilot study is that there is no systematic branding strategy used by
any of three airports in the Baltic States. There is relatedness between the airport having a stronger vision
statement and its performance (passengers turned). Here the Riga comes with the strongest of three vision
statements and more passengers turned. Though, growing international and global competition will not leave
much room to apply old operational schemas and expect stronger results. Due to a lack of local passengers’
traffic for steady business development, the Baltic States airports are regionally and internationally compete
with well established airdromes in the Nordics, Poland, Germany, or even Russia and Ukraine. The proper
branding would not only better outline the development and positioning against the competitors, but make
managing the enterprise task somewhat easier. Further research is needed to study visions from directly
competing airports in the Baltics, as well the best examples from around the world.
References
Tse, I. A. (2009). An empirical study of airport branding at selected Canadian international airports. Canada: (MBA),
University of Calgary, 313 p.
Castro, R., Lohmann, G. (2014). Airport branding: Content analysis of vision statements. Research in Transportation
Business & Management, 10, 4–14.
The paper was supported by the National Research Program 5.2. EKOSOC-LV.
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Client Relationships and Competitiveness of Advertising Agency. the Case of
Latvian Advertising Agencies
Laila Ozolina1, Erika Sumilo2
1
University of Latvia, Latvia, ozolina2013@gmail.com
2
University of Latvia, erika.sumilo@lu.lv
Abstract
The purpose of this research is to perform analysis of client relationships and competitiveness of
advertising agencies. Understanding relationships may help to develop long-lasting relationships and
competitiveness. The characteristics that describe relationships between advertising agencies and their
clients in this research were chosen based on network levels theory. The analytic part of the paper
explored if these constructs could apply to Latvian advertising agency-client relationships.
Keywords: advertising agencies, competitiveness, client relationships.
Introduction
Companies cannot choose not to have relationships. All kind relationships with clients are often
interconnected with each other. Despite the big amount of material that has been published about
relationships between companies, this topic still continues to be an area of interest for many researchers.
The focus of this research is the advertising agencies. The characterization of a business relationship is
an important issue for both - advertising agencies and clients in their attempts to be competitive. In order to
manage the relationships, advertising agencies and clients need to have an understanding of the current
business relationships.
In order to map the main issues in the relationships between agencies and clients, the introductory
interviews were conducted in October - December 2014.
Findings/Results
Results showed that agencies satisfaction level could be considered good, taking into consideration
that there are always clients who are more cooperative than others. Clients level of satisfaction is more
surprising, since clients have freedom to choose among several agencies in order to ensure themselves a
satisfying and good relationship. The recommendation for clients would be therefore to review their
relationship with agencies, focus on the areas that are problematic and develop a relationship that is
satisfying to both partners.
Conclusions
The summary of results can be only viewed as opinions of some agencies and the implications made
based on results should be taken as starting point for further discussion and research. The research gives an
insight into the relationships and some guidelines on how to develop long-term agency-client relationship.
Further analysis with a larger sample would help to validate the results obtained.
References
Ford, D. (1980) The Development of Buyer-Seller Relationships in Industrial Markets. European Journal of Marketing,
No. 14, 5/6, pp. 339-352.
Hunter, K. (2006) Partners Over the Long Run: How to Build an Advertiser-Agency Relationship With Staying Power.
The Advertiser.
N. G. Nwokah & F. E. Ondukwu. (2009) Competitive intelligence and marketing effectiveness in corporate
organizations in Nigeria. Vol.1(1), pp.010-022, April 2009. [Online]
Available at:
http://www.academicjournals.org/journal/AJMM/article-abstract/375A60C1836 [Accessed 10 July 2015].
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Moore, J.W. & Middleton, D. & Haggard, P. & Fletcher, P.C. 2012. Exploring implicit and explicit aspects of sense of
agency. Consciousness and Cognition. Vol. 21 Iss: 4, pp.1748–1753.
Latvijas reklāmas asociācija. [Online] Available at: http://www.lra.lv/files/varia/Mediju_reklamas_tirgus_dati2013.pdf
[Accessed 10 July 2015].
Richard Pinder and Camilla Honey. How to improve client-agency relations: whose responsibility is it? Market Leader.
2010, pp. 16-17 WARC. [Online] Available at: [Accessed 16 July 2015].
Wilson R.T. & Amine L.S. (2009). Resource endowments, market positioning, and competition in transitional
economies: Global and local advertising agencies in Hungary. International Marketing Review, Vol. 26 pp. 62–
89.
TNS
Latvia
market
research
company
[Online]
Available
at:
http://www.tns.lv/?lang=lv&fullarticle=true&category=showuid&id=4118 [Accessed 03 July 2015].
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Competitiveness Evaluation Indicators in the Latvian Macroeconomic Model
Velga Ozoliņa1, Remigijs Počs2
1
2
Riga Technical University, Latvia, velga.ozolina@rtu.lv
Abstract
This article deals with the evaluation of competitiveness by industries. As a result of the studies of
literature and available data, a list of competitiveness indicators is determined and analysed with the
perspective of macroeconomic modelling, including the export specialization, the export dependency, the
ratio of value added per unit of output, per employee, per unit spent on labour, productivity and unit
labour costs. In case of competitiveness studies by industries input-output econometric models are
appropriate tools, if adequately specified. Analysis of competitiveness industries shows that high-tech
industries are high-value added industries and thus worth focusing on more thoroughly. Medium-hightech industries seem less developed than medium-low-tech industries in Latvia, thus further studies of
factors influencing their development are needed.
Keywords: competitiveness, macroeconomic model, industries.
Introduction
Competitiveness is very important for any company, industry or country, especially in a small open
country like Latvia. Therefore it is important to understand, how the competitiveness can be analysed and
afterwards improved. The aim of the study is to distinguish, which competitiveness indicators can be
incorporated in the Latvian Macroeconomic Model to evaluate competitiveness by industries.
Competitiveness can be analysed in different aspects and in different levels, which leads to vast
diversity of competitiveness studies (Hirstu-Varsakelis et.al, 2011 and Bellak et.al, 2009 are just a couple of
examples). In 2006, Sirikrai and Tang have summarized the thoughts of several authors and concluded that
competitiveness has to be analysed from different aspects and using different theories because of its
complexity. Several authors (like Chico et.al, 2014 and Esteban, 2000) have analysed the interrelations
among competitiveness in different levels – how competitiveness of industries is related to the
competitiveness of regions.
Some of the competitiveness indicators, which can be used to analyse competitiveness by industries,
are presented in the research of Ito and Shimizu (2015), Auziņa-Emsiņa and Ozoliņa (2013), Ozcelik and
Taymaz (2004) and others. These include gross labour productivity, ratio of the value added to compensation
of employees, ratio of the value added to unit spent on labour, labour input coefficient, ratio of the value
added to output, export dependency, the speed of the structural change towards the higher value added, unit
labour costs, foreign direct investment, R&D expenditures, capital productivity and export specialization.
Evangelista et.al, (2015) also stresses the importance of inter-industry linkages, which can be captured
within the appropriately specified macroeconomic model. Thus input-output econometric model like
INFORUM type model is one of the best options for the analysis and forecasts of competitiveness in industry
level.
The main source of the data for this study is the database of the Central Statistical Bureau (CSB) of the
Republic of Latvia. In order to show the main trends in disaggregated data, the study focuses more on the
high-technology industries (21 and 26), medium-high-technology industries (20 and 27 to 30), medium-lowtechnology industries (19, 22 to 25 and 33) and knowledge-intensive services (KIS) (50, 51, 58 to 66, 69 to
75, 78, 80 and 84 to 93), if the necessary data are available. The sample of the analysis is mainly 2008-2014,
if all the data are available.
Considering the possibilities to include different competitiveness indicators in the macroeconomic
model, as well as taking into account data availability, several indicators are calculated and analysed in this
research. Export specialisation indicator shows the export structure and can hint on potential export leaders
in the future. Export dependency ratio shows the fraction exports in output by industries and thus the
dependency of a certain industry on the activities abroad. Ratio of the value added to output is used to
distinguish, which industries are higher-value added industries. Real labour productivity is calculated as the
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ratio of real output to the number of employees (in full-time equivalent). Similarly the value added to the
number of employees (in full-time equivalent) is calculated to analyse the labour productivity trends. Ratio
of the value added to the unit spent on labour is used to analyse the impact of a particular industry on the
whole economy. Unit labour costs (per full-time equivalent employee) are used to analyse trends in one
element of cost competitiveness – labour costs.
Results
Analysis shows that export is one of the main driving forces of the Latvian economy and thus it is
important to develop it further. Export specialization indicator shows that trade and manufacturing are the
main exporting industries in Latvia. Moreover, export goods and services are mostly related to the low-tech
industries and less knowledge-intensive services. Latvian economy has become more export dependent
during the crisis with trade (the value of the ratio is 80.1 in 2014) and manufacturing (48.7) as leaders in this
aspect. Agriculture (9.1) and transportation and storage (5.9) industries are also comparatively export
dependant. The values of the value added to output are higher than the average (0.43) in most of the service
industries, but these values are relatively stable. Real labour productivity has increased in most industries
from 2008 to 2010, but afterwards productivity has mostly stabilized. Value added per employee is
considerably higher in high-tech industries compared with the medium-high- and medium-low-tech
industries and knowledge-intensive services. It is interesting to note that the value added per employee is
higher in medium-low-tech industries compared with the medium-high-tech industries. Similarly the value
added per unit spent on labour is higher in high-tech industries, but here the difference is not as significant as
in case of the value added per employee. This is related to the cost levels in industries – unit labour costs in
high-tech industries are again significantly higher than in other analysed groups of industries.
Conclusions
There are many competitiveness indicators, some of which can be used also in industry level, but data
availability issues do not allow to incorporate all of them in the model. Inter-industry linkages are important
in competitiveness studies by industries, therefore input-output econometric models are appropriate
instruments for competitiveness analysis.
High-tech industries are high-value added industries in Latvia, however also labour costs are higher in
these industries. Medium-low-tech industries are more developed then the medium-high-tech industries
indicating on the potential of development also in medium-high-tech industries. Thus requirements for such
development have to be analysed in more detail.
References
Auziņa-Emsiņa A. & Ozoliņa V. (2013) Export, Industrial Productivity and International Competitiveness: A Case of
Latvia. Economics and Business. Vol.24, 2013, 14-20. doi:10.7250/eb.2013.002
Bellak C., Leibrecht M. & Damijan J. P. (2009) Infrastructure Endowment and Corporate Income Taxes as
Determinants of Foreign Direct Investment in Central and Eastern European Countries The World Economy,
2009, 267-290. doi: 10.1111/j.1467-9701.2008.01144.x
Chico, J.R., Sánchez, A.R.P. & García, M.J. (2014) Analysis of the competitiveness of Spanish agri-food exports at a
regional level facing the current crisis [Análisis de la competitividad de las exportaciones agroalimentarias
españolas a nivel regional ante la crisis actual] Revista de Estudios Regionales Issue 101, 1 September 2014, 7199.
Esteban J. (2000) Regional convergence in Europe and the industry mix: A shift-share analysis. Regional Science and
Urban Economics Volume 30, Issue 3, May 2000, 353-364
Evangelista R., Lucchese M. & Meliciani V. (2015) Business services and the export performances of manufacturing
industries. Journal of Evolutionary Economics, 7 March 2015, 23
Hristu-Varsakelis D., Karagianni S. & Saraidaris A. (2011) Equilibrium conditions in corporate tax competition and
Foreign Direct Investment flows. Economic Modelling, 2011, 13–21
Ito K. & Shimizu J. (2015) Industry-Level competitiveness, productivity and effective exchange rates in East Asia.
Asian Economic Journal Volume 29, Issue 2, 1 June 2015, 181-214
Ozcelik E. & Taymaz E. (2004) Does innovativeness matter for international competitiveness in developing countries?
The case of Turkish manufacturing industries. Research Policy, 2004, 409–424
Sirikrai S. B & Tang J. C.S. (2006) Industrial competitiveness analysis: Using the analytic hierarchy process Journal of
High Technology Management Research, 2006, 71–83
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Global Competition: Vision for A2A Ticketing in Aviation Industry
Within Riga Airport Development Context
Sergejs Paramonovs1
1
University of Latvia, Latvia, sergeypar@yahoo.com
Abstract
Before 1999, easyJet was a small privately owned airline company, where an owner hated Internet per
se. However, that was the first air carrier to start selling tickets online. It has taken easyJet straight to the
leading position in Europe (official web-site of easyJet). After 15 years, we rarely find a person still
buying tickets through a booking office at the airport. Paradox of the given research is that airports have a
chance to regain and profit from this function, and doing so reclaim negotiation power against airlines and
other businesses expected to be included into a new business model. Vision for a new product in aviation
industry – A2A ticketing – would reshape an existing model of providing services for passengers.
Keywords: A2A ticketing; 3 axes model; social responsibility; underserved passengers; passenger
traffic planning.
Introduction
The goal of this paper is to partly test newly elaborating ticketing and passenger servicing model,
where airports will sell, but passengers buy their tickets from an address to an address, not from an airport to
an airport. It will become possible to introduce a new variable – time spent from an address to an address.
Presently, no one counts it for a travelling passenger (Castro, Lohmann, 2014) (Pitchforth, Wu, Fookes, &
Mengersen, 2015). Hypothesis of the research is that A2A ticketing will decrease total time spent by
passengers for their complete travel.
There several methods were and will be applied to investigate the matter. Principal methods were
content and analysis of scientific publications. Then, expert in-depth structured interview was used to give a
study focused direction. Ranking made a process of evaluation of the interview results manageable, easy to
interpret and useful for analysing the matter.
Findings/Results
Study findings are built around three axes - service, economic and social responsibility. Improving
service of passengers – time spent by passengers for booking and travel between geographical locations (not
airports), better scheduling and new services introduction – is the first axis. The second is economic benefits
from that introduction – better planning and volume of passengers’ traffic, new services introduced, as well
as increased employment and GDP indexes. The third axis reflects on social importance serving disabled,
elderly and other underserved passengers. Improvements within the three-axes model will show the Baltics
as modern, efficient and better societies, which is benefiting from the best available knowledge and
technologies and creating new life opportunities for those in need and underserved.
Conclusions
The main conclusion of the given pilot study is that there is ground to conduct further research with a
purpose of finding a statistically significant difference between times spent for present and A2A traveling.
The hypothesis would claim a passenger on average spending less time to reach his/her destination with A2A
ticketing. Another finding of the study has revealed a gap in servicing disabled, elderly, underage and
remotely residing passengers. The new groups of passengers would generate additional income within the
industry and beyond the one. Though, it is clear that business travellers would strongly and foremost profit
from A2A ticketing. The extension of this research may target calculating estimated profits from reshaping
the industry, while introducing A2A globally.
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References
Castro, R. & Lohmann, G. (2014). Airport branding: Content analysis of vision statements. Research in Transportation
Business & Management, 10, 4–14.
Pitchforth, J., Wu, P., Fookes, C. & Mengersen, K. (2015). Processing passengers efficiently: An analysis of airport
processing times for international passengers. Journal of Air Transport Management, 49, 35–45.
Official web-site of easyJet. easyJet congratulates BA on reaching a tiny fraction of its own online sales
http://corporate.easyjet.com/latest-news-archive/news-year-2002/12-07-02-en.aspx?sc_lang=en
Retrieved
20.08.2015.
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Latvia’s Transit Corridor Competitiveness Evaluation
Pavels Patlins1
1
Riga Technical University, Latvia, pavels.patlins@rtu.lv
Abstract
The paper deals with cargo transit corridor evaluation through Latvia. The author investigated current
problems of transit in the ports of Latvia as well as road transport development problems. The aim of the
paper is to analyse current situation in the field of cargo transit through Latvia and work out particular
recommendations how to improve transit corridor competitiveness. Statics information, investigation
projects about transit, information from ministries of Latvia used to complete the paper. It is extremely
important to develop infrastructure of the sea ports, use new technologies of cargo transport loading /
unloading processes in the sea-ports of Latvia, as well as to improve quality of service there and reduce
cargo and orders processing time. It is necessary to work out a lot elements of infrastructure to improve
road transport transit corridor too.
Keywords: Transport, transit corridor, competitiveness improvement, sea ports, road transport.
Introduction
Cargo transportations through territory of Latvia (transit) connecting the North-South and West-East
directions are very important for the economy of Latvia. On the one hand, it provides big cargo flows for
Latvia, improving Latvia’s transit and logistics competitiveness into Baltic countries. On the other hand, it
develops Latvia’s status and image in the EU countries, like important strategical partner country. Transit
cargo service provides approximately one half of the Latvia’s service export. So, it is very significant to
improve the competitiveness of the Latvia’s transit branch, develop cargo processing services as well as
expand transit cargo additional value and provide new services in the field of logistics and transit.
Analyzing road transport cargo branch in Latvia, may conclude that it also connected with transit
development (1.tab).
Table 1. Road transport cargo transportation volume 2012.-2014.g. (thousand tons)
Together
Domestic transportation
International transportation
..export transportation
..import transportation
..into other countries
Own demand transportation
Outsourcing transportation
2012
52621
43057
9564
4134
2235
3195
15820
36801
2013
60609
50484
10125
4166
2453
3506
17912
42697
2014
62239
50565
11674
4250
2710
4714
17894
44345
Road transport cargo volume is 62,2 million tons in 2014; growing per 11 million tons in comparison
with 2013. Despite of the fact the economic situation is ton stable, it is possible to develop road transport
cargo and transit development now.
The biggest volume of Latvia’s transit starts or finishes in the ports of Latvia. Riga and Ventspils ports
provides more than 90% of the total cargo, processed into ports of the country. The main types of cargo of
Latvia’s ports are: coal and container cargo (Riga port) and oil production (Ventspils port). Both sea ports
rent their territories to provide companies, which are responsible for particular cargo processing operation in
the total transit or logistics process. Often these companies may not renew infrastructure of the port in time,
as a result losing quality of port operations’ service and increasing its duration.
Ports of Latvia have a lot of competitors, which serve transit cargo in Lithuania, Estonia, Finland and
Russia.
In spite of the poor infrastructure and technologies in the port of Riga, the volume of cargo, processed
in the port still increase (see Figure 1.).
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Figure 1. Processed cargo volume in the sea port of Riga, 2004-2014, thousand tons
Actually, Riga sea port is universal port, which provides customers almost all types of port services
today.
The author of paper used statistics analysis, mathematical methods, graphic visualisation methods, as
well as investigated current situation in the field of transit, communicated with forwarders, stevedoring
companies and other transit businesses representative persons to evaluate the competitiveness of Latvia’s
transit corridor.
Findings/Results
Transit corridor infrastructure in Latvia is poor today. There are a lot of problems with element of
transit corridor infrastructure like special places for rest (cargo vehicles drivers), cargo processing equipment
in the sea ports, information exchange system and quality of roads.
Conclusions
It is necessary to improve the competitiveness of transit corridor in Latvia due to very keen and hard
competition with neighbouring countries ports. Needed investments to improve cargo processing
infrastructure in the sea ports and road transport.
Participants of the transit corridor of Latvia have to provide full assortment of the logistics service to
foreign partners to improve the competiveness of Latvia’s transit corridor.
Transit and logistics business companies have to improve quality of all types service to be competitive
into the transit field of Baltic states.
References
Characteristics of road transport of Latvia. http://www.sam.gov.lv/satmin/content/?cat=89
Road transport state department. www.atd.lv;
White book. http://europa.eu/documentation/official-docs/white-papers/index_lv.htm
Road transport ques near borders of Latvia. https://vid.gov.lv/default.aspx?tabid=9&id=5784&hl=1
Statistics department of Latvia. www.csb.gov.lv
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Role of Internet Marketing for Export Promotion (Results of Recent Latvia's
Company Survey)
Biruta Sloka1, Ināra Kantāne2, Renāte Vidruska3
1
2
University of Latvia, University College of Economics and Culture, Latvia, inara.kantane@lu.lv
3
University of Latvia, Latvia, renate.vidruska@gmail.com
Abstract
Recent technology development from one side and hard competition for markets from other side has
requested new academic research on new marketing approaches including internet marketing application.
For current paper were used recent theoretical findings on internet marketing applications and was used
company survey conducted in November 2014 till May 2015 results*. The research results showed that
there still is a place for new and innovative approaches of internet marketing application for increase of
company competitiveness in foreign markets.
Keywords: internet marketing, export promotion, company survey
Introduction
New technologies development rise applications of new methods and approaches in marketing and
especially on internet marketing. Academic research results have pointed out on details for successful
application of internet marketing in different branches of industry (Panau, et al, 2015) and evaluation of
marketing channels (Watson IV, et al, 2015), researchers have published literature review on mobile
marketing showing its value for consumers and retailers (Ström, et al, 2014). In 2014 in Latvia about 7% of
the companies, with the number of employees 10 and more, selling online in 2014, average selling online in
European Union countries was about 15% (Eurostat, 2015).
Scientific publications analyses, survey of companies in Latvia conducted in November, 2014 till May
2015, data for sampling frame were obtained by company data base LURSOFT, to get representative survey
results the systematic sample was applied, every company was approached by phone call and invited to
answer on questionnaire questions, for those companies who have not responded within two weeks it was
made reminder (three reminders were applied), response rate was 12%, for data analysis of survey results
were used descriptive statistical analysis – indicators of central tendency or location (arithmetic mean, mode,
median) and indicators of variability (range, standard deviation, standard error of mean), cross – tabulations,
non-parametric statistical tests (Kruskal-Wallis test, Mann-Whitney test, Kolmogorov-Smirnov test).
Findings/Results
The research results have shown that about 66.7% of exporting companies in Latvia consider that
Internet marketing is an important tool. Internet marketing was a big influence on the
brand/product/company popularisation and sales quantities increase; about 35.8% of companies managers
believed that internet marketing significantly reduce marketing costs. At the same time the use of internet
marketing possibilities companies evaluated as insufficient.
Conclusions
Internet marketing is becoming more and more important world-wide and lot of academic research has
been devoted on better use of internet marketing and apply new approaches. Not all companies in Latvia use
their potential on internet marketing on recent technology possibilities and 66.7% of exporting companies in
Latvia consider that internet marketing is an important tool for company competitiveness and 35.8% of
companies managers believed that internet marketing significantly reduce marketing costs.
Research confirmed that many companies still have big challenges for new innovative method
application for company competitiveness in foreign markets and one of the applicable tools could be use of
internet marketing.
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References
Eurostat (2015). Enterprises selling via internet and/or networks other than internet. Retrieved Aug. 25, 2015, from
http://ec.europa.eu/eurostat/data/database?node_code=isoc_ec_eseln2.
Panou, K., Kapros, S., Plydoropoulou, A. (2015). How Service Bundling Can Increase the Competitiveness of Low
Market Share Transportation Services. Research in Transportation Economics, 49, 22-35.
Ström, R., Venbdel, M., Bredican, J. (2014). Mobile Marketing: A Literature Review and its Value for Consumers and
Retailers. Journal of Retailing and Consumer Services, 21, 1001-1012.
Watson IV, G.F., Worm, S., Palmatier, R.W., Ganesan, S. (2015). The Evaluation of Marketing Channels: Trends and
Research Directions. Journal of Retailing, in press, available in SCIENCE DIRECT,
*Authors express thanks Swedbank, IMarketing company and Chamber of Trade and Commerce of Republic of Latvia
for support of the research.
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Crisis in Russian Outbound Tourism and its Impact on Tourism in Latvia
Aija van der Steina1
1
University of Latvia, Latvia, aija.vdsteina@lu.lv
Abstract
This paper analyses how the crisis in Russian outbound tourism has affected inbound travel to Latvia
and how the tourism industry has reacted to the decreasing tourist numbers. The single case study
approach is used in this study. Tourism statistics were used to analyse the changes in tourist numbers,
tourist expenditure and hotel occupancy rates. Qualitative analyses were chosen in order to gain insights
into main tourism stakeholders` reaction to changes in demand. In-depth interviews were conducted with
tourism stakeholder representatives from National Tourism Organization (NTO), Destination
marketing/management organizations (DMO), professional associations and tourism companies.
The results of this study show that despite the decrease in Russian tourist numbers and expenditure in
most of the tourist segments, destinations and the tourism industry overall are adapting and performing
very well because of growth in other source markets, organized events at the national level and
appropriate destination and company management.
Keywords: tourism, crisis, impact
Introduction
The Russian market has been one of the high priority tourist markets for Latvia for the last ten years,
experiencing a growth in overnight traveller numbers and expenditure since 2009. In 2013 the number of
Russian tourists reached 332.6 thousand and the market share in Latvian inbound tourism reached 21.7% in
terms of overnight travellers and 25% in terms of expenditure in Latvia (CSB, 2014). The importance of the
Russian market in Latvia was driven by growing tourist numbers, growing expenditure and attractiveness of
the Russian tourist segment. Russian tourists have been described by tourism industry members as high
spending, interested in heritage and culture, spa and wellness, shopping, and traveling all year round.
Historical connections between the countries were a good base for MICE tourism development as big
Russian TV events were organised in Jurmala and broadcasted all over the former Soviet Republics.
Due to geopolitical/ political and economic/ financial issues in Russia in 2014 Russian outbound
tourist numbers decreased by 4% for holiday tourists, by 10% for business and by 15% for other tourist
segments. In the first quarter of 2015 the drop in tourist numbers reached 40% for holidays, 17% for
business tourists and 33% for other segments (Rosstat, 2015). The decreasing income of people, unattractive
exchange rates of the RUB, subsidies and promotion for domestic travel, prohibition to travel abroad for
particular groups and “new developed” domestic destinations as Sochi are the main factors that influenced
Russian outbound tourism negatively. As the growth of international tourist numbers over decades had been
high, periods with growth in tourist numbers of less than 2% were described as crisis for the industry
(Papatheodorou et al, 2010; Hall 2010; UNWTO, 2006).
The first impact of Russian outbound crisis on incoming tourist numbers in Latvia was recognized in
May 2014 with a 5.2 % decrease in numbers of Russian tourists staying in hotels and other similar
establishments (CSB, 2015). In December 2014 the decrease was already 34.5 %.
Ritchie and Crouch (2003, 7p.) in their book “The Competitive Destination: A Sustainable Tourism
Perspective” note “… the emerging socioeconomic climate forces destinations to consider redefining
competitiveness as the ability to respond effectively to crisis situations”. To respond effectively to crisis it is
important is to understand what happens in different industry sectors.
This paper attempts to analyse how the Russian crisis has affected inbound travel to Latvia and how
the tourism industry reacted to decreasing numbers of tourists and revenues.
Literature review
Since 1980s there is a large volume of published studies describing crisis events in tourism, crisis
impact on the tourism system, response to crisis and preparedness of the tourism industry, crisis management
and recovery strategies. The majority of research in tourism on crises concentrate on economic and financial
crises, e.g. Western Europe and North America in the early 1980s, Asia in the late 1990s and global crisis
2008 – 2010.
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Crisis in tourism can be understood in various contexts: 1) difficulties that tourists face in travelling
(Rittichainuwat et al, 2014) or 2) the problems faced by businesses (Martin –Consuegra et al, 2008; Ritchie,
2004; Pappas, 2014) or 3) crisis events` impact on tourism destinations (Sausmarez, 2007; Boukas and
Ziakas, 2014; Perles - Ribes et al, 2013) or 4) impact on a global scale (Smeral, 2009; Sheldon and Dwyer,
2010; Papatheodorou et al, 2010).
Crises in international tourism are usually interrelated with other crisis events in economics and
finance, politics and energy (Hall, 2010). Crises and disasters have transformational connotations with each
such event having potential positive as well as negative outcomes (Faulkner, 2001).
Because of the complexity of the tourism industry, the system oriented approach to examining the
impact of crisis using industry and subindustry level across the affected area (destination) is needed to view
the impact and effects of the various parts across the system (Ritchie, 2013).
A single case study approach was used in this study. Case study is based on secondary and primary
data. Tourism statistics of Latvian Central Statistical Bureau and Federal State Statistic Service of Russian
Federation (Rosstat) were used to analyse the changes in tourist numbers, tourist expenditure and hotel
occupancy rates. Qualitative analyses were chosen in order to gain insights into main tourism stakeholders`
reaction to changes in demand of the Russian tourist segment. In-depth interviews were conducted with 13
tourism stakeholder representatives from National Tourism Organization, DMOs of Riga and Jurmala,
professional associations of hotel and tour-operator sector and tourism companies. Different semi-structured
interviews were used for destination and industry sector/company representatives.
Findings/Results
The first impact of Russian outbound crisis on incoming tourist numbers in Latvia were recognized in
May 2014 with a 5.2 % decrease in numbers of Russian tourists staying in hotels and other similar
establishments (CSB, 2015). In December 2014 the decrease was already 34.5%. Fig.1 shows the percentage
change in numbers of Russian tourists in hotels and other similar establishments in 2014 and 2015 compared
to the same months of the previous year.
40.0 27.4
20.0
0.0
15.0 11.8
I
II
-20.0
-40.0
-60.0
-32.6
-43.6
III
-1.2
IV
13.1
V
-11.1
-29.4
-42.1 -39.0
VI
VII VIII IX
X
XI
-9.8
-10.8
-14.6
-19.9
-20.7
-37.9
2013/2014
2014/2015
XII
-38.9
Figure 1. Change (%) in numbers of Russian tourists in hotels and HSE compared to same month of
previous year (Source: CSB data on special request, 2015)
The changes in numbers of Russian overnight travelers, tourist expenditures and market share have
been analyzed in the study. The full paper of this study provides an in-depth analysis of the results.
A system oriented approach at the industry and sub industry level was used to analyse the data in the
study in order to understand the impact of the crisis and response needed. The results of interviews show
that in all cases (destinations, industry sectors, tourist companies) the crisis in Russian tourist market has a
negative impact on particular destinations, tourist industry sectors and tourism companies. As one
representative of Jurmala Municipality`s Tourism Department commented: “For Jurmala and the tourism
industry this crisis means the end of “very easy” times in this target market”.
The most negative impact was identified in the MICE segment which was one of the most important
segments for most tourism companies working with the Russian market.
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Companies reduced the negative impact of decreasing tourist numbers and revenues by trading – down
the offer, cutting costs for the Russian market, searching for new target markets and by being active in other
target markets. The most common response of destinations to falling demand were the cancelation of
marketing activities in the Russian market, more active marketing in other high priority markets such as
Nordic Countries, Germany, Netherlands and other neighbouring countries and adaptation to the changing
tourist behaviour from Russia. A common view amongst interviewees was that the crisis has an impact on
Russian tourist travel behavior. More individual travel, self - organized trips, price sensitive trips, choice of
cheaper tourism products are changes experienced by destinations and the tourism industry. The NTO
representative responsible for the Russian market said: “Russian tourists are and will be an attractive market
for Latvia. In the future we will need to work on more specialised product offers and there will be long –term
changes in tourist behavior”.
Conclusions
This study analyses the impact and response to Russian outbound tourism changes during the crisis.
Instability in Russia triggered by economic and political factors is still present and therefore there will be
more challenges for tourism in Latvia in the future.
Despite decreasing Russian tourist numbers and expenditure in most of the tourist segments,
destinations and the tourism industry overall are adapting and performing very well because of growth in
other source markets, organized events at the national level and appropriate destination and company
management.
In the future there will be long- term changes in Russian tourist behaviour triggered by this crisis.
More individual travel, self - organized trips, price sensitivity and demand for cheaper tourism products are
changes the tourism industry will experience and it means new product offers and marketing communication
channels have to be developed for the Russian market.
Further research should be undertaken to investigate the Russian visit friends and relatives segment
and its development in times of crisis.
References
CSB (2014). Annual tourism statistics from data base of Central Statistical Bureau of Latvia. Retrieved from
http://www.csb.gov.lv/en/dati/statistics-database-30501.html
CSB (2015). Tourism Statistics on special request from Central Statistical Bureau of Latvia
Hall, C.M. (2010). Crisis Events in Tourism: subject of crisis in tourism. Current Issues in Tourism, 13 (5), 401-417.
Papatheodorou, A., Rossello, J., Xiao, H. (2010). Global Economic Crisis and Tourism: Consequences and
Perspectives. Journal of Travel Research, 49 (1), 39-45.
Pappas, N. (2014). Marketing Hospitality Industry in an Era of Crisis. Tourism Planning and Development, DOI:
10.10.80/21568316.2014.979226.
Perles-Ribes, J., F., A.B.Ramon-Rodriguez, A. Rubia-Serrano and L.Moreno-Izquierdo (2013). Economic Crisis and
Tourism Competitiveness I Spain: permanents effects or transitory Shocks? Currents Issues in Tourism, DOI:
10.1080/13683500.2013.849666
Ritchie, J.R. and G.I. Crouch (2003). The Competitive Destination: a sustainable tourism perspective.
Oxfordshire/Cambridge: Cabi Publishing. 272 p.
Rittichainuwat, B.N., G. Chakraborty and S. Rattanaphinanchai (2014). Tourist` Motivations to Travel during Finacial
Crisis. Journal of Quality Assurance in Hospitality &Tourism, 15 (1), 100-113.
Rosstat (2015). Annual tourism statistics of Russia. Количество граждан Российской Федерации, выехавших за
рубеж. Retrieved from http://www.russiatourism.ru/content/8/section/82/detail/3768/
de Sausmarez, N. (2007). The Potential for Tourism in Post –Crisis Recovery: Lessons from Malaysia`s Experience of
the Asian Financial Crisis. Asia Pacific Business Review, 13:2, 277-299.
Sheldon, P. and L. Dwyer (2010). The Global Financial Crisis and Tourism: Perspectives of the Academy. Journal of
Travel Research, 49 (1), 3-4.
Smeral, E. (2009) The Impact of the Financial and Economic Crisis on European Tourism. Journal of Travel Research,
48 (1), 3-13.
UNWTO. (2006). The Impact of Rising Oil Prices on International Tourism. (Special Report No. 26) Madrid, Spain.
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SUBSECTION
“INNOVATION AND QUALITY TECHNOLOGIES“
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Development of Innovation Driven Culture at Higher Education Institution:
ISPEHE Project Results
Mikus Dubickis1, Deniss Ščeulovs2, Inga Lapiņa3
1
2
Riga Technical University, Latvia, mikus.dubickis@rtu.lv
Riga Technical University, Latvia, deniss.sceulovs@rtu.lv
3
Riga Technical University, Latvia, inga.lapina@rtu.lv
Abstract
The aim of the paper is to present results of needs assessment analysis that is carried out as the first
outcome of Innovative Strategic Partnership for European Higher Education (ISPEHE) project. ISPEHE
is a project funded by the European Commission under the Programme Erasmus+ Key Action 2:
Cooperation for innovation and exchange of good practices. It aims at providing a foundation for spurring
innovative and sustainable learning practices at Higher Education Institutions (HEIs) and long-term
collaboration between HEI’s and enterprises.
The one of the innovative components of ISPEHE project is Strategic Integration of Learning Models
(SILM). The main purpose of the SILM, as first innovative project component, is to establish joint
contemporary educational practices and produce a long-term strategic learning model based on the
existing curricula adopted and successfully implemented in each partnering institution.
Keywords: ISPEHE project, SILM analysis, innovation driven culture, higher education.
Introduction
Innovative Strategic Partnership for European Higher Education (ISPEHE) is a project funded by the
European Commission under the Programme Erasmus+ Key Action 2: Cooperation for innovation and
exchange of good practices. The one of the innovative components of ISPEHE project is Strategic
Integration of Learning Models (SILM).
The main purpose of the SILM, as first innovative project component, is to establish joint contemporary
educational practices and produce a long-term strategic learning model based on the existing curricula
adopted and successfully implemented in each partnering institution.
The Needs assessment analysis is the first element in preparing SILM. The objectives of analysis are
aligned with the specific objectives of SILM, and support their accomplishment:
• Identify the actual situation in each of the partnering HEIs;
• Provide assistance for making decisions related to establishing optimal learning models and best
practices;
• Obtaining a participatory approach from relevant stakeholders in constructing SILM.
Two types of questionnaires (for students and teachers) were prepared by the teams from all partnering
institutions in order to establish a joint contemporary educational practice and produce a long-term strategic
learning model based on the existing curricula in each partnering institution. The questionnaire for SILM
Needs Assessment Analysis was conducted on first, second and third year undergraduate students and
teaching staff in the field of business and management. The purpose of the survey was to collect information
about: a) The teaching-learning practices applied in partnering institutions; b) Which common teaching and
assessment methods are used and which one are specific, unique and more creative in all 5 partnering
institutions; and c) What is the opinion of both, students and teaching staff, about such methods?
For determining the sample size, the Finite Population Correction (FPC) factor for systematic random
samples when the standard deviation is not known was used for both populations. In total 376 students and
59 teachers were surveyed. The data obtained from the Survey was processed using descriptive statistical
analysis and was presented graphically.
Findings/Results
Most important teaching methods to achieve specific knowledge and skills within the course are case
studies and special practically oriented exercises. The view of teachers differs about Problem based learning
(PBL), which is also deemed important for knowledge acquiring. While students agree that seminars are an
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effective way to study the subject area. Both students and teachers concur that distance learning is the least
important teaching method to build knowledge and skills.
Types of teaching methods used in the classroom like student presentations, rounds and buzz groups
stated by both students, as well as teachers. The most unused teaching technique according to students is
role-play, while teachers state that this method is snowballing. The most used teaching methods outside the
lecture room stated by students and teachers are team work, group discussion and independent projects. The
least used method is field trip according to students and writing media articles according to teachers.
The learning process met almost every student expectations (90%). This is confirmed by the answers
provided, where the most used teaching methods and techniques are also deemed the most important by the
students and motivate them to study the subject. Areas that can be improved to get higher interest of students
are: implementation of techniques to acquire human resource management skills, visits to successful
companies and greater number of case studies.
Areas for improvement in order to get optimal use of teaching methods in the course from student and
teacher perspective are the ability to apply knowledge in practice and work in a team. This is in conjunction
with the statements, where working in small groups are used on a weekly basis, and the theoretical
knowledge is complimented with the practical skills of the business community. Both students and teachers
agree that the curriculum shouldn’t focus on improving the ability to communicate with non-experts.
Students believe that ability to apply knowledge in practical situations, talking in front of class,
defending the arguments and searching for new solutions would improve their competence. Teachers believe
that more case studies, PBL, use of teaching assistants, double diamond method, inquiry based learning, and
creative techniques (e.g. role-play) would improve the quality of study and knowledge of students.
Conclusions
According to the results of the SILM Needs Assessment Analysis, the first recommendation is to
involve students in practical analysis of business cases or problems/scenario based business simulations. In
conjunction with the recommendation of students and teachers, round tables and debates can be further
included, besides of working in groups/teams. Study process can be further enhanced with the greater
number of company visits and visiting lectures from representatives/experts of the business community.
Team building is another aspect that is relevant to develop social and communication skills. This can
be achieved through organizing field trips, at least once in the semester for each study year. Teachers and
students should be involved in the entire process, including planning activities that will be carried out during
field trip and assignments to be done pre- and post- field trip. Students developing certain HR management
skills while working in groups and this can be enhanced by the introduction of older students in the lecturing
process (mentoring/consulting).
One of the main problems stated by students is difficulty of completing tasks in the outlined time
frame. The capacity of students for time management can be further increased by organizing workshops in
this area.
The main idea regards students` evaluation is to involve the students in the assessment process.
Student involvement in forming the grade can be implemented on the basis of 360 degree method.
Acknowledgment
This Research has been developed within the project “Innovative Strategic Partnership for European
Higher Education” (ISPEHE) funded by the European Commission, under the Programme Erasmus+.
References
Innovative Strategic Partnership for European Higher Education (ISPEHE) (2015). Retrieved from http://ispehe.org
Newbold, P., Carlson, W. & Thorne, B. (2007). Statistics for Business and Economics (6th ed.). Prentice Hall.
Levine, D. M., Krehbiel, T. C., Berenson, M. L. (2006). Business Statistics: A First Course. Prentice Hall.
Bartlett, J. E., Kotrlik, J. W., & Higins, C. C. (2001). Organizational Research: Determining Appropriate Sample size in
Survey Research, Information Technology, Learning, and Performance Journal, 19(1), 43-50.
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Company Expectations about the Results from the Intellectual Capital
Investments: Case of Latvia
Oksana Lentjushenkova
Riga Technical University, Latvia, oksana.alberta@gmail.com
Abstract
Many scientific researches describe different results from the intellectual capital investments. Most of
them disclose positive effects on enterprise performance. But most of them analyse company’s financial
performance and the intellectual capital investments’ influence on it.
The author describes expected results from the intellectual capital investments as financial and nonfinancial performance highlights thirteen possible results. The questionnaire was used as a tool for survey.
The respondents were 203 companies from Latvia, which were random selected from four professional
associations. Survey results were processed using factor analysis in the SPSS environment.
The survey show, that most expected results are financial: profit and market share enlargement. But
some non-financial results are expected as well, such as clients’ satisfaction, increase of employee
qualification and loyalty.
Keywords: intellectual capital investments, results, financial and non-financial performance.
Introduction
The amount of intellectual capital investments in Latvia is not high. It depends on different factors,
such as availability of funds and financial support from state, understanding of the concept of intellectual
capital and intellectual capital investments, rate of return from the investments, investments’ influence on
company’s performance (Lentjushenkova&Lapina, 2015). Making decision about investments companies
take into account, many aspects and one of the most important aspects is a possible return from the
investments, or expected results from the investments. Most companies invest, if they see clear determined
results and most expected results are related to the financial side of company activities, for example, increase
of profit. But the intellectual capital investments’ influence on company’s performance is very different.
Conducted scientific researches’ in different countries show contradictory results. For example, some
researchers conducted in Russia (Garanina, 2008) and Australia (Clarke et al., 2011) show that intellectual
capital investments’ influence on company’s financial performance is neutral or negative and investments in
physical capital are more effective for the company. At the same time similar researches in Asia disclose
positive effects from the investments (Wang&Chang, 2005; Chan et al., 2005; Bontis et al., 2000). Most of
researchers study intellectual capital investments on financial performance. The author distinguishes two
results from the intellectual capital investments: financial (profit, market share enlargement, productivity,
cost reduction in the future, company’s value) and non-financial (image and reputation improvement,
cooperation development, employee’s loyalty and qualification, customer loyalty and satisfaction).
The aim of the paper is to determine the company’s expected results from intellectual capital
investments in Latvia. For aim achieving the following tasks are determined:
1) To develop research tool and test it;
2) To select respondents and send the questionnaire;
3) To determine most important results;
4) To group expected results from the investments.
The research was made at company level and as a result the author determines and groups expected
results from the company’s intellectual capital investments.
The following qualitative and quantitative research methods were used: literature review, logical and
comparative analysis, deductive method to interpret general information, the statistical method to group
information and to analyze different regularities (factor analysis), the empirical method to obtain information
by conducting a survey, and induction method to interpret and generalize the survey results. The
questionnaire results were analyzed, using software SPSS for factor analysis
The questionnaire was used as a tool for a survey. To evaluate each statement about factors
influencing investments in intellectual capital, respondents were offered to use 4-point Lykert type scale. The
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opportunities for evaluation were: 1 – very important, 2 – average importance, 3 – relatively important, 4 not important. The respondents were random selected from four associations: Business Efficiency
Association, Latvian Society for Quality, Employers’ Confederation of Latvia (LDDK) Vidzeme branch.
The necessary number of respondents is calculated according to general practice. The representative
number of respondents is 196, but total number of respondents is 203.
Findings/Results
The survey results show that most expected results from the intellectual capital investments are the
increase of profit, customer satisfaction and market share enlargement, but least expected are cooperation
development and improvement. The author compares the importance of these results by region, where the
company operates: Riga and non-Riga. There are no significant differences in expected results for
companies in Riga and non-Riga. Only two results are different: reputation improvement and costs reduction
in the future. Reputation improvement is most important for companies from Riga, but cost reduction is most
important for companies from non-Riga.
Using factor analysis, the author groups all results in four groups, two of them are related to company
financial performance and two are related to company’s non-financial performance.
Conclusions
Companies expect different results from the investments: financial and non- financial. However, most
of the respondents’ expectations are financial results, such as profit, market share enlargement, increase of
productivity and profitability, increase of company value. The factor analysis results show that some nonfinancial results or benefits are strongly connected with financial benefits. For example, customer
satisfaction is incorporated in one group with such expected results as increase of profit and market share
enlargement. It can be concluded, that companies understand mutual relationship between different benefits
and their influence on each other. Survey results partially approve author’s assumption about financial and
non-financial results’ interconnection too.
References
Bontis, N., Keow, W.C. & Richardson, S. (2000). Intellectual capital and business performance in Malaysian industries.
Journal of Intellectual Capital 1(1), 85-100.
Chan, M., Cheng, S. & Hwang, Y. (2005). An empirical investigation of the relationship between intellectual capital
and firms market value and financial performance. Journal of Intellectual Capital, 2, 159 – 176.
Clarke, M., Seng, D. & Whiting, R.H. (2011). Intellectual capital and firm performance in Australia. Journal of
Intellectual Capital, 12 (4), 505 – 530.
Garanina, T. (2008). Struktura intelektualnovo kapitala: voprosy ocenki empiricheskovo analiza. Vestnik Sanktpeterburjskovo universiteta [Vestnik of Saint Petersburg University], 1, 116 – 128.
Huang, C. &Wang, M. (2008). The effects of economic value added and intellectual capital on the market value of
firms: An empirical study. International Journal of Management, 25 (4), 722 – 731.
Lentjušenkova, O. & Lapiņa, I. (2015). Factors Influencing Investments in Intellectual Capital: Case of Latvia. The 19th
World Multi-Conference on Systemics, Cybernetics and Informatics, Proceedings, Vol.1, Orlando, Florida,
USA, 82 - 87.
Komnenic, B. & Pokrajcic, D. (2012). Intellectual capital and corporate performance of MNCs in Serbia. Journal of
Intellectual Capital, 13 (1), 106 – 119.
Lajili, K. & Zeghal, D. (2005). Labour Cost voluntary disclosures and firm equity values: is Human Capital information
value relevant? Journal of International Accounting, Auditing and Taxation, 14 (2), 121-138.
Lajili, K. & Zeghal, D. (2006). Market Performance Impacts of Human Capital Disclosures. Journal of Accounting and
Public Policy, 25 (2), 171-194.
Maditinos, D., Chatzoudes, D., Tsairidis, C. & Theriou, G. (2011). The impact of intellectual capital on firms' market
value and financial performance. Journal of Intellectual Capital, 12 (1), 132 – 151.
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Web-Based Idea Management Systems: Potential Application Field and the
Situation in Latvia
Elīna Miķelsone1, Elita Lielā2
1
BA School of Business and Finance, Latvia, elina.mikelsone@ba.lv
2
BA School of Business and Finance, Latvia, elita.liela@ba.lv
Abstract
Purpose: on the basis of the available offer in the market of web-based idea management systems
(IMS), their application tendencies and strategic development document analysis, make conclusions and
suggestions on web-based IMS application and web-based IMS perspective in Latvia.
The main research methods: the data analysis of 40 web-based IMS and 40 application cases,
overview of two main Latvian web-based IMS producers, the interviews with experts and the survey of
1111 respondents. The results of the research show that the use of web-based IMS allows an organization
to solve wide variety of professional challenges and develop variety of idea management networks, which
creates opportunities not only to get ideas, but also gives other benefits. Web-based IMS are not widely
used in Latvia. According research, there is a perspective to apply web-based IMS in many fields and
sectors, but the most appropriate for government and local authorities, organizations and enterprises.
Keywords: Idea management, Idea management systems, Web-based idea management systems,
Innovation, Innovation management
Introduction
Web-based IMS is innovative solution development tool that comprises systematic process- idea
generation, idea evaluation, idea development in virtual environment, which helps to turn the best ideas into
real innovations. In Latvia, in comparison with other countries, the internet technologies and the
opportunities they provide are not used to a full extend which is shown by Global innovation index.
Although in grand total Latvia takes the 33th place, in figure related to the application of internet technology
opportunities to create innovation, Latvia occupies only the 76th place, but in figure connected with the
integration of internet technologies in company’s activities (creating, for example, virtual orders) - the 70th
(INSEAD, 2014). So it is important not only to overview the web-based IMS and their application
tendencies, but also to make recommendations on potential application.
Research aim: on the basis of the available offer in the market of web-based IMS, their application
tendencies and strategic development document analysis, make conclusions and suggestions on web-based
IMS application and web-based IMS perspective in Latvia. Research tasks: (1) theoretical material and
literature review about idea management and related concepts, (2) strategic development document of Latvia
analysis, (3) the data analysis of 40 web-based IMS, (4) 40 web-based IMS application case study analysis,
(5) development of web-based IMS potential application field depiction, (6) overview of two main Latvian
web-based IMS producers, (7) the interviews with experts, (8) the survey of 1111 respondents, (9) an
overview of web-based IMS application and it’s influencing factors and potentialities in Latvia.
There are many researches (for example, Deichmann, 2012; Zejnilovic, Oliveria and Veloso, 2012;
Bothos, Apostolou and Mentzas, 2012; Aagaard, 2012, 2013; Baez & Convertino, 2012; Poveda, Westerski
and Iglesias, 2012; Bassiti & Ajhoun, 2013; Perez, Larringa and Curry, 2013; Westerski, 2013; Miecznik,
2013; Bergendahl &Magnusson, 2014; Sadriev & Patrachenko, 2014, Narvaez & Gardoni, 2015 ) about idea
management systems and their efficiency which are developed in different countries and different spheres
and the results obtained give the possibility to use them while researching use and potentialities of webbased IMS. But it should be highlighted that comprehensive researches about commercial available webbased IMS are far fewer - authors own researches (Mikelsone & Liela, 2014, 2015) and research by Summa
(2004) in which data about 26 commercially available web-based IMS was collected, but the results of this
research is out of the date, because IT tools in the last decade have changed rapidly and the situation required
new researches. In previous researches authors have developed different researches about web-based IMS,
for example, exploring web-based IMS market by Porter 5 force model, developing web-based IMS basic
application model, revealing potential web-based IMS application enhancement opportunities in Latvia. In
Latvia these researches are the first and at the moment only about this subject and their results were used to
create this research as well to create deeper research about web-based IMS application possibilities and
situation in Latvia, additionally researching strategic development documents of Latvia and their statements
connected with web-based IMS.
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Authors in the research used two logical methods: (1) analysis of theoretical materials, scientific
literature and strategic development documents on web-based IMS and connected terms; (2) web-based IMS
application situation analysis in Latvia analysing data from two leading web-based IMS developers in
Latvia- Ltd. Ludere and Ltd. Staheholde.rs. So determine companies’ characteristics and application areas
where web-based IMS is applied more often. In the research used 4 empirical methods: (1) survey of 1111
people (chosen randomly) at working age (age 15 - 62) with work or internship experience in Latvia, the aim
of the survey was to reveal the main idea management habits in organizations and public opinion about
potential application of web-based IMS; (2) 3 semi-structured expert interviews; (3) analysis of 40
application cases - 20 in Latvia and 20 abroad, (4) comparison of 40 web-based IMS by 28 factors. Research
period: web-based IMS application situation in Latvia, research period-January 2011 -May 2014. Research
period of interviews - May- August 2014. Research period of survey- April- June 2014. Research period of
case studies – 2010- 2014.
Findings
Based on assessment of 40 web-based IMS, 40 web-based IMS application cases study analysis, webbased IMS application situation analysis in Latvia analysing data from two leading web-based IMS
developers in Latvia- Ltd. Ludere and Ltd. Staheholde.rs and theoretical, including analysis of strategical
development documents, aspects authors conclude that web-based IMS supply is extensive and varied, that
provides organizations with opportunity to find appropriate web-based IMS for their requirements. Research
results revels that successful web-based IMS applications are in every sector which proves its universal
nature. Research also proves that web-based IMS application coincides with aspects of strategic development
document of Latvia - participation, open innovation, user promoted innovation promotion and wide culture
of creativity. The created web-based IMS application field depiction show that the use of web-based IMS
allows an organization to solve a wide variety of professional challenges and develop a variety of idea
management networks, which create opportunities not only to get ideas, but also offers other benefits
To determine the situation in idea management sphere and web-based IMS opportunities in Latvia,
survey of 1111 participants and interviews of experts have been undertaken. Research results reflect that
there is potential for web-based IMS application in Latvia, since both entrepreneurs and society are willing to
use them. According to research, there is a perspective to apply web-based IMS in many fields and all
sectors, but the most appropriate organizations to involve society in idea management with web-based IMS
in Latvia are government and local authorities, organizations and enterprises.
Authors have created description of 3 possible web-based IMS application variants or ways how to
manage this tool: (1) individual web-based IMS application, when one organization uses web-based IMS, (2)
simple cooperation web-based IMS application, when cooperated organizations form one sector or the same
type organizations, which activities are connected, for example, different organizations and institutions
cooperating and realize collective idea management; (3) complex cooperation web-based IMS application,
where one web-based IMS use different sector representatives, conducted synergy between sectors.
Authors conclude that, there are impedimental and conducive factors in individual, organization,
Latvia, global levels. Authors in the research have developed suggestions how to use conducive factors and
how to avoid impedimental factors. With these detailed suggestions and all influencing factors could get
acquainted contacting authors individually.
Conclusions
The results of the research show that the use of web-based IMS allows an organization to solve wide
variety of professional challenges and develop variety of idea management networks, which creates
opportunities not only to get ideas, but also gives other benefits. Web-based IMS are not widely used in
Latvia. According to research, there is a perspective to apply web-based IMS in many fields and sectors, but
the most appropriate organizations to involve society in idea management with web-based IMS in Latvia are
government and local authorities, organizations and enterprises. The most appropriate ways to use web-based
IMS is individual and in cooperation. Web-based IMS application coincides with aspects of strategic
development documents of Latvia - participation, user promoted innovation, open innovation practice and
wide culture of creativity.
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References
Aagaard, A. (2012). Idea Management in support of Pharmaceutical Front End of Innovation. International Journal of
Technology, Policy and Management, 12(4), 373-386.
Aagaard, A. (2013). A theoretical model of supporting open source front end innovation through idea management.
International Journal of Business Innovation and Research, 7(4), 446-465.
Baez, M. & Convertino, G. (2012). Innovation Cockpit: A Dashboard for Facilitators in Idea Management. The ACM
2012 Conference on Computer Supported Cooperative Work Companion, CSCW '12 Proceedings, I Volume,
Seattle, Washington, USA, 47-48.
Bassiti, L. & Ajhoun, R. (2013).’Toward an Innovation Management Framework: A Life-cycle Model with an Idea
Management focus. International Journal of Innovation, Management and Technology, 4(6), 551-559.
Bergendah, M. & Magnusson, M. (2014). Combining collaboration and competition: a key to improved idea
management. European Journal of International Management, 8(5), 528-547.
Bothos, E., Apostoulou, D. & Mentzas, G. (2012). Collective intelligence with web-based information aggregation
markets: The role of market facilitation in idea management. Experts Systems with Applications, 39(1), 13331345.
Deichmann, D. (2012). Idea Management: Perspectives from Leadership, Learning, and Network Theory (Doctoral
dissertation). Available from ERIM.
INSEAD
(2014).
The
Global
Innovation
Index
2013.
Retrieved
from
http://www.globalinnovationindex.org/content.aspx?page=gii-full-report-2013#pdfopener
Miecznik, B. (2013). Ideen Management. In Able, T. (Ed.), Suchfeldbestimmung und Ideenbewertung: Methoden und
Prozesse in den frühen Phasen des Innovations prozesses, London, England: Springer-Gabler, pp. 143-168.
Mikelsone, E. & Lielā. E. (2014). Virtual Idea Management Products: Use and Potentialities. Journal of Business
Management, 8(1), 63-73.
Mikelsone, E. & Lielā. E. (2015). Literature Review of Idea Management: Focuses and Gaps. Journal of Business
Management, 9(1), 107-121.
Naravaez, J.L.M. & Gardoni, M. (2015). Harnessing idea management in the process of technology transfer at Canadian
Space Agency. International Journal on Interactive Design and Manufacturing, 9(33), 1-11.
Perez, A., Larrinaga, F. & Curry, E. (2013). The Role of Linked Data and Semantic-Technologies for Sustainability
Idea Management. In Counsell, S. (Ed.), Software Engineering and Formal Methods (pp.306-213), Berlin,
Germany: Springer-Verlag.
Poveda, G., Westerski, A. & Iglesias, C. A. (2012). Application of Semantic Search in Idea Management Systems. 2012
Conference for Internet Technology Secured Transactions, Proceedings, I Volume, London, UK, 230-236.
Sandriev, A.R. & Pratchenko, O.V. (2014). Idea management in the system of innovative management. Mediterranean
Journal of Social Sciences, 5(12), 155-158.
Summa, A. (2004), ‘’Software tools to support innovation process- focus on idea management’’, Retrived from
Innovation
Management
Institute
of
Helsinki
University
of
Technology
Web
site:
www.imi.hut.fi/publications/download/248/
Westerski, A. (2013). Semantic Technologies in Idea Management Systems: A Model for Interoperability, Linking and
Filtering (Doctoral dissertation). Available from Universidad Politecnica de Madrid.
Zejnilovic, L., Oliveira, P. & Veloso, F. (2012). Employees as User Innovators: An Empirical Investigation of an Idea
Management System. SSRN Electronic Journal, 1(1), 1-38.
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Valsts pārvaldības formu ietekme uz kvalitātes nodrošināšanas infrastruktūru
Jānis Miķelsons
Rīgas Tehniskā universitāte, janis.mikelsons@rtu.lv
Atslēgas vārdi: akreditācija, atbilstības novērtēšana, metroloģija, standartizācija
Ievads
Nacionālās valdības izmanto tehniskos noteikumus, metroloģiju, standartus, atbilstības novērtēšanas
procedūras un akreditāciju, lai uzlabotu ražošanu, veselības aizsardzību, apkārtējo vidi, drošību un kvalitāti,
kā arī riska vadību un tirgus pilnveidi, kas rezultātā dod iespēju ilgstošai konkrētas valsts ekonomikas
attīstībai, kā arī ceļ tās iedzīvotāju labklājību un sekmē tirdzniecību. Standartizācijas, akreditācijas,
metroloģijas un atbilstības novērtēšanas institūciju kopumu dēvē par Kvalitātes nodrošināšanas
infrastruktūru, turpmāk tekstā – KNI (skat. 1.att.).
1.att. Kvalitātes nodrošināšanas infrastruktūra
Pētījuma objekts
Pēc autoru novērojumiem kreisi orientētas valdības un labēji orientētas valdības atšķirīgi cenšas
ietekmēt nacionālo kvalitātes nodrošināšanas infrastruktūru.
Labējo partiju valdības sadarbojas KNI institūcijām uz savstarpēji saistošu līguma pamata, savukārt
kreiso partiju valdības cenšas ietekmēt KNI sev izdevīgā virzienā ar likumdošanas aktu, pavēļu un rīkojumu
starpniecību ierobežojot to neatkarību (skat. 2.att.).
2.att. Kreiso un labējo vadību saistība ar KNI un sabiedrības vai biznesa interesēm
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Kādas partijas pieskaitīt pie labējām partijām, kādas pie kreisajām? Tā kā nepastāv stingri noteikti
kritēriji, autors piedāvā, kā kritēriju pieņemt tirgus regulācijas pakāpi katrā atsevišķā valstī. Autors cenšas
tirgus regulācijas pakāpi saistīt ar valsts pārvaldības formām (dikatatūru, demokrātiju un anarhiju) un
ekonomikas formu katrā valstī, nosakot ka diktatūrai ir raksturīga komandu ekonomika, demokrātijai – brīvā
tirgus ekonomika, anarhijai – karteļu ekonomika (autora ieteikts termins).
Galvenie rezultāti
Lai precīzāk definētu valdību kreiso vai labējo orientāciju tiek piedāvāts nosacīti pieņemts modelis,
kurā ar mehānikas likumu palīdzību inženierzinībās tiek skaidrota tirgus regulācijas pakāpe komandu
ekonomikas, brīvā tirgus ekonomikas un karteļu ekonomikas apstākļos
Secinājumi
Viens no būtiskiem tirgus regulācijas instrumentiem ir kvalitātes nodrošināšanas infrastruktūra.
Atkarībā no valdību attieksmes pret tirgus regulācijas pakāpi dažādu valdību attieksme pret valsts nacionālo
kvalitātes infrastruktūru ir atšķirīga. Valdības kas atrodas tuvāk tirgus regulācijas centram var efektīvāk
virzīt sabiedrību uz progresu, nekā galēji labās vai kreisās partijas.
Atsauces
Miķelsons, J. Atbilstības novērtēšanas institūciju akreditācijas nacionālās sistēmas izveide // RTU Zinātniskie raksti,
6.sērija, Rīga, 2004, 105.- 111. lpp.
Filoloģiska skaidrojošā vārdnīca “Latviešu valodas vārdnīca”, Rīga, “Avots”, 1987.g.
Regulation (EC) No 765/2008 The European Parliament and of The Concil of 9 July 2008
The Conformity Assessment Toolbox “Building trust” ISO, UNIDO, 2010
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SUBSECTION
“INTERNATIONAL BUSINESS, LOGISTICS,
CUSTOMS AND TAXES“
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Economic Factors Influencing Attractiveness of Maritime Education in Latvia
Roberts Gailitis
Maritime Administration of Latvia, Latvia, roberts.gailitis@lja.lv
Abstract
This paper presents results of research investigating attractiveness of maritime education and
economic factors influencing it. Due to regulated nature of seafaring profession, maritime education is
regulated by international standards and plays important role of seafarers supply process both at national
and international levels. Shortage of seafarers threatens maritime industry already for years, therefore
important aspect of sustainable maritime industry is stable flow of new seafarers from maritime education
institutions. To predict changes of available labour resource as production factor it is important to
understand how economic development of country influences attractiveness of maritime education and
motivates persons to choose it.
Keywords: maritime education, seafarers supply, shortage of seafarers.
Introduction
Labour is one of the production factors, therefore maritime industry cannot get along without seafarers
while unmanned ships still are only on horizon. Overall number of seafarers are considered to be about 1,371
million of seafarers holding STCW certificates. (BIMCO, 2015) To ensure sustainable pool of seafarers’
important aspect is maritime education system and its capacity to ensure sufficient number of new graduates
as specific education is one of the requirement to obtain seafarers and especially officers qualification.
Latvia can be perceived as seafarers’ supply country due to lack of ships owned by Latvian
companies. Approximately 95% of Latvian seafarers are working on ships under foreign flag. International
employment of seafarers constitutes to economy of Latvia through earned money on board they bring home.
This amount is assumed to be approximately 300 mill. Eur each year. Therefore aim of the article is to
improve the evidence base for academic discussions related to attractiveness of maritime education and
economic factors influencing it.
The human dimension of shipping receives little academic attention although it continues to confound
the industry. As the world fleet expands, recruitment and retention of seafarers has become a global problem,
compounded by the negative public image and the attraction of land based careers. (McLaughlin, 2015)
Waals in his research recognizes importance of maritime education system to provide stable number of
graduates to ensure stable size of available seafarers’ pool for country. (Waals, 2002) Attention from
European Policy side is aimed on attraction of youngsters to seafaring career. As one of the problems can be
perceived lack of officers, which can negatively influence growth possibilities of EU maritime industry.
(European Commision, 2007) Also IMO works in this direction aiming to attract youngsters to seafaring
profession and promoting importance of seafarers’ knowledge and experience for sustainable development
of maritime industry. (IMO, 2015). Policy activities underline the seafarers’ role as important production
factor for whole shipping industry. Glen suggests that there are links between economic development and
seafarer supply (Glen, 2008), where economic development influences the opportunity cost of seafaring
career, therefore relative lack of attractiveness of the seafaring career in the wealthier economies implies a
reduction in seafarer supply and also reduction of maritime education. Gekara in his article “Understanding
attrition in UK maritime education and training” discusses both internal and external retention factors
(Gekara, 2009). It can be seen that demand is globally driven as companies have option to employ seafarers
from various countries in the same time.
While most of the researches and analysis are based on discussions about causes and consequences of
decrease of number of seafarers only few of them are based on quantitative analysis. Therefore the research
was structured in following way:
1) Defining attractiveness of maritime education;
2) Analysing results of existing researches, which are focused on attractiveness of maritime education;
3) Regression analysis of admitted students in maritime education programmes;
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4) Conclusions regarding influence of economic factors in Latvia influencing attractiveness of maritime
education.
Data analysis involved use of following statistical methods:
1) Construction of confidence intervals to determine significance of differences between factors
mentioned in reports;
2) Comparing analysed sample parameters by using Fishers exact test, Chi square test;
3) Determination of correlation between quantitative indicators;
4) One factor analysis.
Findings
Maritime education can be regarded as vocational or professional education as graduates from such
programmes can pretend to seafaring qualifications. Maritime education is one of the educations, which is
internationally regulated as STCW convention sets international standards which should be taken into
account in settling up maritime education programme. Seafarers’ qualifications are internationally regulated
and STCW convention sets up international requirements for certification. Term “Attractiveness of maritime
education” therefore can be defined as “capacity of maritime education to encourage individuals to
deliberately choose maritime education, to offer quality qualification that open up career prospects, and to
persuade employers to recruit graduated from maritime education programmes”. Investigating results of
various researches, it can be concluded that attractiveness of maritime education is determined by integrated
set of factors, which can be linked both with demand and supply factors. While results based on
questionnaires shows that economic factors influences decision to become a seafarers, there is lack of
knowledge how significant is influence of economic factors to person’s decision.
Conclusions
Attractiveness of maritime education in Latvia can be related to the economic factors such as
unemployment level and growth of GDP. Determining the profile of Latvian seafarers, it can be concluded
that they are attracted by careers oportunities onboard and “prestige of proffesion”, which is broad term
therefore additional research is required to annalysed factors determining “prestige of proffesion” as different
persons can understand this factor differently and economic factors ashore such as unemployment, salary
level, Latvian supply of seafarers is influenced both demand and supply drivers for person’s motivation,
therefore further economic development will decrease supply of Latvian seafarers, if promoting activitiesof
maritime education will remain at the same level and supply drivers of maritime education will not be
influenced. Due to fact, that person’s motivation is determined by integrated set of factors rather by single
attraction factor therefore measures to attract more youngsters to choose maritime education should be
related to integrated set of activities.
References
BIMCO. (2015). Manpower Update 2010 - The Worldwide demand for and supply seafarers. Retrieved from
https://www.bimco.org/News/2010/11/~/media/About/Press/2010/Manpower_Study_handout_2010.ashx
European Commision. (2007). An Integrated Maritime Policy for the European Union. Brussels: European Commision.
Gekara, V. (2009). Understanding attrition in UK maritime education and training. Globalisation, Societies and
Education, 7(2), 217-232. doi:10.1080/14767720902908190
Glen, D. (2008). What do we know about the labour market for seafarers? Marine Policy, 845-855.
IMO.
(2015,
02
15).
Vision,
Principles
and
Goals.
Retrieved
from
http://www.imo.org:
http://www.imo.org/OurWork/HumanElement/VisionPrinciplesGoals/Pages/Default.aspx
McLaughlin, H. (2015). Seafarers in the spotlight. Maritime Policy & Management, 42(2), 92-95.
Waals, F. A. (2002). Forecast Model and Benchmarking of the Supply and Demand of Maritime Officers. International
Association of Maritime Economists Annual Conference. Panama: Panama City.
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Social Insurance Problematic Aspects for Self-Employed persons in Latvia
Inguna Leibus1, Maira Lazdina2
1
Latvia University of Agriculture, Latvia, inguna.leibus@llu.lv
2
Latvia University of Agriculture, Latvia, maira1@inbox.lv
Abstract
The paper describes the problematic aspects putting self-employed persons in an unequal position
regarding their social insurance compared to the social insurance available to employees. It analyses the
factors making a self-employed person unequal to an employee employed according to an employment
contract. There are some reasons for low activity of self-employed persons in social insurance sought,
along with some possibilities for improvement of the procedure of calculation and payment of social
insurance contributions of self-employed persons in order to facilitate to the desire and interest of the
population to get involved in the provision of their social guarantees.
Keywords: self-employed, social contributions, social insurance.
Introduction
Self-employment is one of several forms of economic activities ensuring physical persons with
possibility to perform economic activities legally. More than 10th part of the total employed persons in Latvia
has been registered at the State Revenue Service as performers of economic activities. The data by State
Revenue Service show that just the smallest part, i.e. incomplete 10%, of the registered performers of
economic activities are actually paying their social contributions; furthermore 85-90% of them are
calculating the payment from the minimum amount allowed. This means that self-employed persons in fact
do not care about their future social security and by reaching the pension able age or facing non-ability to
work under any other circumstance would not be able to receive their pension or state social insurance
allowances.
To improve the situation in social insurance contributions of self-employed persons, it is important to
acknowledge the reasons why they avoid or are not able to pay their social insurance contributions.
The aim of this research is to study what changes to the state social insurance of self-employed
persons are needed in order to facilitate to the interest of these persons in making social insurance
contributions.
The study uses the monographic method, descriptive statistical method and survey method.
Findings/Results
The study analyses the legislative framework of social insurance for self-employed persons in Latvia.
The basic principles of social insurance of self-employed persons in other European Union member states are
described, and the scope of social guarantees available to self-employed persons is analysed.
The statistical data analysis is used to establish the dynamics of self-employed persons in their entirety
and within some individual groups of self-employed persons, including the specific weight of such persons
of the total number in Latvia and the EU member states. The data on actual social insurance contributions
made by self-employed persons and the activity of the registered performers of economic activity in the
provision of their social guarantees were analysed.
Conclusions
The legislative framework governing the economic activity of natural persons is complicated and hard
to understand to a person with no prior training, but the terminology used is not uniform and does not
correspond with the public understanding and international practice. The social insurance system of selfemployed persons existing in Latvia is not available to persons with low income, but the social guarantees of
self-employed persons provided by law are not equal to those provided to the employees employed according
to employment contracts. It makes the social insurance system less attractive and does not encourage making
social insurance contributions. The survey results permit to draw a conclusion that the self-employed persons
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want to be socially insured, but the social insurance contributions to be made should be proportionate to the
person’s income. They must not reduce a person’s financial possibilities substantially.
The main recommendations arise from conclusions: the social insurance system of self-employed
persons should be improved in order to make it available to all self-employed persons regardless of their
income. It is necessary to conduct a comprehensive study to establish the reasons preventing self-employed
persons from joining the insurance system and the factors to facilitate to making social insurance
contributions.
References
Herslund L., Sorensen M.B. (2004) From employed to self-employed: An analysis of entrepreneurship in rural Latvia.
Journal of Baltic Studies, Vol.35(2), p. 126 – 148.
Kern V. (2013) Social protection for self-employed workers. Retrieved: http://epthinktank.eu/2013/07/10/socialprotection-for-self-employed-workers/ Access: 15.01.2015.
Santoro
C.
(2014)
EU
Parliament
Demands
Social
Protection for
Self-employed
Workers
Retrieved:http://www.adapt.it/englishbulletin/docs/santoro_7_marzo_2014.pdf. Access: 15.01.2015.
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Tax Impact on Household Incomes
Mariyana Krasimirova Pavlova
Tsenov Academy of Economics, Bulgaria, mpavlova@uni-svishtov.bg
Abstract
The household income is an important economic indicator because it determines the scale of the
household sector consumption and its delay in future in terms of saving and investing. Many factors
influence the magnitude of household income and one of these factors is taxation. Given the significance
of tax payments not only for household incomes, and through them – for the national economy, the object
of this report is the household income and in particular the impact of the taxation framework on it. The
aim of the report is to examine the monetary income of households in Bulgaria, tax expenses, as well as to
outline the possibilities for tax impact on household incomes.
Keywords: Key words: taxes, tax relief, incomes, households.
Introduction
The significance of households for national economy is determinated from:
• The households take a part of goods and services output;
• The households are consumers of goods and services;
• The households are also the biggest net savers for national economy.
In this point of view each household as socio-economic category or the sector of households
contributes economic growth in, at least, three aspects: via high labour productivity, extensive consumption
and high investment activity. So the amount of households’ income has important significance because it
determines demand of goods and services and ability of saving and investing. All of that defines the object of
this report to be household income and in particular the impact of the taxation framework on it. The aim of
the report is to examine the monetary income of households in Bulgaria, tax expenses, as well as to outline
the possibilities for tax impact on household incomes.
The methodology of research is based on dynamic, factor and structure analysis.
Findings/Results
Summarised data about monetary income and tax expenditures of Bulgarian households, extracted
from National statistical institute of Bulgaria database discloses interesting principles and tendencies
reported in main manuscript.
Conclusions
Lots of resources form households’ monetary income and in compliance with the law it must be
declared and fiscal liability – paid off. Given the significance of existing opportunities for legal tax reduction
in Bulgaria, to know the possibilities for tax impact on household incomes is prerequisite to effective
household finance management.
References
Аdamov, V., Theory of Finance, The “Education and Science” research library“, Book 100, Tsenov Academic Publishing House, 2015
Аdamov, V., Dimitrova, T. at al. Techniques of Taxation, 7. Revised and expanded edition. Tsenov Academic Publishing House, 2013,
The “Education and Science” research library, Book 60.
Dimitrova, Т., Personal finance, Tsenov Academic Publishing House, 2010.
Radulova, A., Personal finance in Bulgaria – theoretical aspects and empiric evidences, “Education and Science” research library“, Book
1, Tsenov Academic Publishing House, 2011.
Kapoor, J., Dlabay, Les R., Hughes, R. Personal Finance, McGraw-Hill Irwin, 2009.
Pavlova, M., Tax Policy of the Republic of Bulgaria for the Period 2007-2013, Економiчний вiсник Донбасу, 2014, бр. 4 (38),
Державний заклад „Луганський національний університет імені Тараса Шевченка”, 2014
Rosefsky, R. Personal Finance, Seventh Edition, John Wiley and Sons, Inc.,1999.
Legislation, personal taxes, Bulgaria.
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SUBSECTION
“NATIONAL RESEARCH PROGRAM EKOSOC-LV:
‹‹THE DEVELOPMENT OF INNOVATION AND
ENTREPRENEURSHIP IN LATVIA IN COMPLIANCE
WITH THE SMART SPECIALIZATION STRATEGY››
&
‹‹INVOLVEMENT OF THE SOCIETY IN SOCIAL
INNOVATION FOR PROVIDING SUSTAINABLE
DEVELOPMENT OF LATVIA›› “
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The Analytic Hierarchy Process as a Tool to Promote Youth Employment and
Sustainability in Latvia
Liva Grinevica1, Baiba Rivza2, Pēteris Rivža3
1
Latvia University of Agriculture, Latvia, Liva_g2@inbox.lv
Latvia University of Agriculture, Latvia, Baiba.Rivza@llu.lv
3
Latvia University of Agriculture, Latvia, Peteris.Rivza@llu.lv
2
Abstract
In foreign studies Latvia is positioned as a "depressive" region in the year 2030, which will have an
insufficient population of young people. Thus, Latvia as a country with a business-friendly environment
will not be able to be competitive in relation to other European countries and the flow of investment will
be at risk, as well as passed on other, more competitive and better developed regions in demographic
terms. Therefore, it is pertinent to analyze the trends in youth employment in Latvia and to work on
Latvia’s economic development. There is necessity to promote human involvement in the labour market
and to reduce their departure to foreign countries. It is important to draw attention to these challenges and
to find answers to the questions: Which of the youth employment-promoting scenarios can be realized in
Latvia’s regions in the near future? Which of the scenarios is the most appropriate for the development of
Latvia’s regions? Which of the scenarios are more focused on the interests of all parties involved? Which
scenario will ensure the country's economic development? Four possible scenarios for promoting youth
employment in the regions of Latvia were evaluated by experts.
Keywords: youth unemployment, sustainability, the Analytic Hierarchy Process (AHP).
Introduction
In order to identify the most appropriate development scenario to involve young people into the labour
market in the regions of Latvia, the Analytic Hierarchy Process (AHP) method established by American
scientist’s Thomas L. Saaty was used.
The aim of the research is to identify the causes of youth unemployment and to establish the best
scenario to reduce youth unemployment and to promote the sustainability of the regions of Latvia.
To achieve the aim, there are set the following tasks:
1. To evaluate the theoretical aspects from different authors to identify the main viewpoints and the
practical approach to the methodology of the Analytic Hierarchy process (AHP);
2. To make interviews with the experts from different sectors and young people to find out the best
scenario for reducing youth unemployment in the regions of Latvia.
The following materials and methods are used to achieve the aim and fulfil the tasks:
1. Theoretical framework of the research: the monographic and descriptive methods are used; the
research is also based on scientific discussion regarding different author conclusions on the Analytic
Hierarchy Process (AHP);
2. Research methodology: the methods of expert interviews, discussion of the results and findings are
used to achieve the aim.
The authors made the expert interviews to gather information on their opinion of the best scenario for
youth unemployment reduction opportunities. There were made interviews with an employer, young people,
a business analyst, an expert from the Investment and Development Agency of Latvia and a representative
from a municipality.
References
Saaty T. L. (2007) Time Dependent Decision-making; Dynamic Priorities in the AHP/ANP: Generalizing from Points
to Functions and from Real to Complex Variables. In: Mathematical and Computer Modelling, USA: Elsevier
Ltd., Vol. 46., Issues 7- 8, pp.860 – 891.
Saaty T. L., Peniwati K., Shang J. S. (2007) The Analytic Hierarchy Process and Human Resource Allocation: Half the
Story. In: Mathematical and Computer Modelling. USA: Elsevier Ltd., Vol. 46., Issues 7- 8, pp.1041 -1053.
The ESPON 2013 Programme (2008) Territorial Dynamics in Europe. Trends in Population Development. Territorial
Observation No.1., European Union, European Regional Development Fund, Belgium, pp.1-15.
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Sustainable Innovations in the Promotion of Home Produced Products in the
Market
Modrīte Pelše1, Sandija Zēverte-Rivža2, Zane Rone3
1
2
Latvia University of Agriculture, Latvia, modrite.pelse@llu.lv
Latvia University of Agriculture, Latvia, sandija.rivza@llu.lv
3
Latvia University of Agriculture, Latvia, z.rone@inbox.lv
Abstract
This paper aims to describe and analyse the innovations in the promotion of home-produced products
in the market in Latvia. To do this, the authors have carried out a survey of 50 home producers that makes
up a 4.5% of home producers and reviewed research studies about marketing strategies of small farmers
and home producers.
The obtained results reveal that the most important factor in the marketing of home-produced products
is the quality and taste of the products. It can be noticed that the market requires not a combination of
traditional and often cultural heritage technologies in the development of the product itself, but an open
mind and innovative approaches in the marketing and promotion of products in the market. The authors
also conclude mainly the products are sold directly to the end user and therefore the communication with
the client and mutual cooperation are highly significant.
Keywords: home produced, home producer, product promotion in the market.
Introduction
Home production is one of the forms of micro entrepreneurship and lately this and other forms of
small and locally oriented entrepreneurship are acknowledged for promoting self-employment and business
involvement of local communities. There are 1104 home producers registered in Latvia and in the period
from 2010 to 2014 the number of registered home producers has grown more than 1.5 times. A home
producer is defined as a person who has registered as a food manufacturer in home and small scale
manufacturing, processing or manufacturing products using locally sourced raw materials. As home
producers have to do several stages of product production and promotion themselves, there is a vast room for
innovation in product design, production technologies, marketing and branding of products, product
presentation and communicating with consumers. Home producers also use several market channels for
selling their production. Traditionally most of the production is sold in local markets and via direct sales to
customers, but there are several innovative examples of cooperating with local sales groups, producer
cooperatives, eco-stores etc. Recent years, home producers have successfully competed with large producers
in the food market by choosing a number of sales channels such as farmers’ markets, collective purchase and
direct purchase groups, community supporting agriculture initiatives, farm visits, local food supplies to
grocery stores etc. (Merrigan, 2012, Local and Regional.., s.a., Little et al., 2009).
In Latvia, home producers are registered with the Food and Veterinary Service (FVS); in the period
2010-2014 their number rose by 57%. There were 1104 registered home producers in 2014. In home
production in Latvia, the most popular activity is the processing of plant products, as the number of entities
registered for this activity increases every year, and at the end of 2014 there were 513 such home producers,
accounting for more than 40% of all the mentioned activities.
Materials and methods
The present research designed a questionnaire and found out the opinions of home producers regarding
presenting and promoting their products in the market. Authors have carried out a survey of 50 home
producers that makes a 4.5% of the target group of home producers. The respondents represented all the
regions of Latvia; 70% of them did their home production activities in rural areas, while 30% in urban areas.
Results and discussion
The obtained results suggest that mostly home producers sell their products via direct sales and, the
authors suppose a great role is played by the ways of presenting the products and informing about them and
by communication with consumers. To identify the ways of sales by home producers, the respondents gave
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replies to the question “Where do you sell your home-produced products?” The highest proportion of replies
– 72% – related to sales at local government-held fairs and delivery to customers on request. Specialty stores
and market places were outlets for 36% and 46% home producers, respectively. Of the surveyed home
producers, 48% sold their products on their farm or at their production place. Other ways of sales – the
Kalnciema street market in Riga, direct sales groups, via post, via the Internet, at small fairs and stores –
were used within various social events.
More than half (64%) of the surveyed home producers sold their homemade food products themselves,
and almost half or 24 of them retailed their products 1-2 days a week. The authors assume it was done on
weekends. Of the surveyed home producers, 16% sold their products 3-4 days a week, while only 8% of
them did that all week long. The authors wish to emphasise that a third of them sold their products even less
frequently, which might be explained by the fact large fairs or social events, in which home producers
wanted to participate, did not take place every week. The reason was also the fact that part of their products
was seasonal, for example, gingerbread and pickled vegetables, as such products were mainly purchased in
winter. According to the surveyed home producers, the most important factor in marketing home-produced
products was their quality and taste; it was stressed by 90% of the respondents. To ensure it, home producers
have to have good recipes and technologies, so that the quality and taste of their products do not change. This
factor is supplemented with an opportunity to taste the product, and consumers may be attracted in this way –
they taste the product and decide whether to buy the product. However, only 26% admitted that in marketing
products, it was important to indicate the place of production. The following unimportant factors in
marketing products were mentioned by the respondents: the price tag and it`s placement; sales at different
locations.
Conclusions and proposals
1. Home production is one of the ways of starting up one’s own business if an individual wants to
produce and sell food products, initially, in small quantities. However, at present in Latvia, there is no
single definition regarding what is home production, although already 1104 home producers had been
registered at the end of 2014, and their number grows from year to year, while the proportion of
unregistered home producers is still high.
2. Promoting products in the market is an important key element in marketing home-produced products,
and a great role is played by communication with consumers. Home producers have to be able to
arouse interest and desire in consumers for their products. For this reason, studying and assessing the
steps of consumer behaviour is important to be able to offer products and information about them in
the way consumers wish it.
3. Of the surveyed home producers, 72% marketed their products in their local community and delivered
them to customers upon request. The products were also marketed in specialty shops and sold directly
on the farm or production facility. Of the respondents, 68% had noted that it was necessary to promote
product awareness and provide sufficient information to the customers through the Internet and social
networks, thus acknowledging the necessity of innovation in communication with the customers.
Acknowledgements
The paper was supported by the National Research Program 5.2. “Economic Transformation, Smart
Growth, Governance and Legal Framework for the State and Society for Sustainable Development – a New
Approach to the Creation of a Sustainable Learning Community (EKOSOC-LV)
References
Merrigan K. (2012) Beyond Farmers Markets: Why Local Food Belongs on Grocery Shelves. Retrieved from:
http://www.theatlantic.com/national/archive/2012/09/beyond-farmers-markets-why-local-food-belongs-ongrocery-shelves/262064/
Local & Regional Food Systems (s.a.). Retrieved from: http://www.sustainabletable.org/254/local-regional-foodsystems
Little R., Maye D., Ilbery B.(2009) Collective purchase: moving local and organic foods beyond the niche market.
Environment and Planning A 2010, volume 42, pages 1797 ^ 1813. Retrieved from:
http://epn.sagepub.com/content/42/8/1797.full.pdf+html
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Theoretical Old-Age Pension Benefits and Replacement Rates in the Baltic
States: a Retrospective Simulation
Olga Rajevska1
1
University of Latvia, Latvia, olga.rajevska@lu.lv
Abstract
The author has performed a comparative analysis of old-age pensions and replacement rates in
Estonia, Latvia and Lithuania using a method of retrospective simulation run on a self-developed model
combining normative pension legislation (that was in force in December 2014) and historical statistical
data. The model base case is a person retiring after 40 years of service with average salary. Other model
cases include low-earners and high-earners, as well as voluntary participants of II pillar, and simulations
for modified notional capital valorisation formulae. The results for the three study countries are very
dissimilar that is caused by differences in the design of their pension systems.
The paper was supported by the National Research Program 5.2.6 EKOSOC-LV.
Keywords: public pensions, Baltic States, comparative analysis.
Introduction
As noted by Ebbinghaus and Neugschwender (2011), systematic cross-national analyses of pension
income inequality often face the problem of long time-lag between accumulating pension rights over an
entire working life and withdrawing pensions after retirement. There are two possible strategies to cope with
this time-lag between policy changes and its likely effect. The first is a prospective simulation - by applying
a detailed model of today’s rules to possible life-course trajectories in estimating future incomes, the result is
depending on multiple assumptions about future employment careers, demographic changes, future returns
on capital, and stability of pension rules. The second way is to link outcomes at a point in time with a
retrospective analysis of the preceding development, which is the common method adopted in most national
and comparative studies.
The author has chosen to apply a combination of both methods and to run a retrospective simulation:
to calculate theoretical benefits for a number of model cases for a certain point in the past. The aim was to
compare pensions a “typical” person retiring in December 2014 in Estonia, Latvia and Lithuania could have
been granted.
A generic case for simulation is a person a) with 40 uninterrupted years of service; b) retiring in the
end of 2014 at official pensionable age; c) having no dependents at the last year of employment; d) not
eligible for any extras for children or other bonuses and supplements; e) not participating in II pillar; f)
throughout whole career had average nationwide insured wage - baseline case (or, alternatively, was earning
50% / 75% / 125% / 200% / 250% of average insured wage).
1.
2.
3.
4.
5.
6.
Computation steps:
Calculation of gross pension benefit in accordance with the rules as were in force in December 2014 based on the normative pension legislation and statistical data.
Calculation of net pension benefit in accordance with the rules as were in force in December 2014 – in
accordance with the applicable taxation rules (Skačkauskienė & Tuncikiene 2014).
For more correct comparison amounts in euro are translated into purchasing power standards.
Computation of the replacement rate (net pension to net last salary, in per cents)
For Latvia only: computation of theoretical pension benefit of a II pillar participant depending on a
chosen pension plan (active, balanced, conservative) – based on historical average annual yields.
For Latvia only: computation of theoretical pension benefit should the notional pension capital
valorisation rules be modified as per newly amended law or as per Swedish / Polish / Italian NDC
rules (Axelsson et. al. 2013, OECD 2013).
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Findings/Results
The obtained figures are illustrated by the Figure 1 that clearly demonstrates very different patterns of
pension sizes in dependence to person’s wage during working life. Small coloured rhombi are marking the
levels of net average salaries in 2014, expressed in PPS. Despite of significantly lower salaries in Latvia, an
average wage earner would get practically the same pension in Latvia and Lithuania.
Figure 1. Theoretical pensions and replacement rates
Latvian case is an example of almost linear proportionality: twofold earnings would bring twofold
pension, the only shadow of progressivity is obtained through tax exempt. The difference in replacement rate
for low- and high-earner is less than 10 percentage points. On the opposite side is Estonia with a strongly
pronounced redistribution from rich to poor. Lithuania demonstrates an intermediate example of distribution,
being however much closer to Estonian pattern than to Latvian one. The difference in replacement rates for
low- and high-earners reaches 43 percentage points.
Conclusions
Pension systems in Estonia and Lithuania demonstrate more signs of a fair distribution of benefits and
risks. The design of Latvian pension system is de facto inducing the reverse redistribution: from poor to rich.
In countries where median salary is quite close to subsistence minimum, pension system should treat low
income groups with positive discrimination instead of negative one. The variations between the Baltic States
can be substantially explained by differences in pension system design elements.
Patterns generated by pension systems of the Baltic States differ from the results valid for OECD
countries (Aggarwal & Goodell 2013): lower average pensions and lower mutual social trust negatively
correlate with high pension progressivity.
References
Aggarwal, R., & Goodell, J.W. (2013). Political-economy of pension plans: Impact of institutions, gender, and culture.
Journal of Banking & Finance, 37 (6), 1860-1879.
Axelsson, R., Wadensjo, E. & Baroni, E. (2010). ASISP Annual National Report 2010. Pensions, Health and Long-term
Care. Sweden. Retrieved from http://socialprotection.eu/files_db/1145/asisp_ANR10_Sweden.pdf
Ebbinghaus, B., & Neugschwender, J. (2011). The Public-Private Pension Mix and Old Age Income Inequality in
Europe. In B. Ebbinghaus (Ed.), The Varieties of Pension Governance: Pension Privatization in Europe (pp.
384-423). Oxford, England: Oxford University Press.
OECD (2013). Pensions at a Glance 2013: OECD and G20 Indicators, OECD Publishing, Paris. Retrieved from
http://dx.doi.org/10.1787/pension_glance-2013-65-en
Skačkauskienė, I. & Tuncikiene, Z. (2014). Comparative evaluation of the labour income taxation in the Baltic States,
Procedia - Social and Behavioral Sciences, 110, 439-449.
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Uzņemējspējas attistība latvijā eiropas savienības mērķu kontekstā
Andra Šenberga
Ventspils augstskola, Izglītības kvalitātes valsts dienests, Latvija
Kopsavilkums
Mūsdienu aktualitātes (darba tirgus, tehnoloģijas, migrācija u.c.) būtiski ietekmē izglītības attīstību.
Eiropas Savienības (ES) aktivitātes iniciē vienotas pārmaiņas izglītībā, lai nodrošinātu izglītības
pārredzamību, atbilstību sabiedrības un darba tirgus vajadzībām. Izglītības pārvērtēšanas stratēģijā
noteikts, ka prioritāri ir jāapgūst pamatkopmpetences, tostarp uzņēmējspēja un pašiniciatīva. Reformas
jāīsteno labi izglītotiem, motivētiem un uzņēmējdarbības kategorijās domājošiem pasniedzējiem.
2014.gada 12.septembra Eiropas Padomes (EP) secinājumos par uzņēmējdarbības izglītību un apmācību
akcentēts, ka uzņēmējdarbība izglītībā un apmācībā var veicināt nodarbinātību, pašnodarbinātību un
aktīvu pilsoniskumu, kā arī uz āru vērstas elastīgas izglītības iestādes. Arī 2015.gada Eiropas Augstākās
izglītības telpas Boloņas politikas forumā tika izteikta apņemšanās veidot inovatīvu, iekļaujošu, digitāli
un uz darba tirgu orientētu augstāko izglītību, kas ne tikai atbilst darba tirgum, bet arī rada darba tirgu.
Publikācija sagatavota, lai identificētu uzņēmējdarbības kompetences apguves aktualitātes un ES
dokumentos sniegtos ieteikumu ieviešanu Latvijā.
Atslēgas vārdi: Uzņēmējdarbības izglītība; uzņēmējspējas; prakse.
Ievads
Mūsdienu aktualitātes (darba tirgus, tehnoloģijas, migrācija u.c.) būtiski ietekmē izglītības attīstību.
Eiropas Savienības (ES) aktivitātes iniciē pārmaiņas izglītībā, lai nodrošinātu to pārredzamību, atbilstību
sabiedrības un darba tirgus vajadzībām. Eiropas Komisijas (EK) 2010.gada paziņojumā „EIROPA 2020
Stratēģija gudrai, ilgtspējīgai un integrējošai izaugsmei” starp prioritātēm ir uzņēmējdarbība un izglītība.
2012.gadā EK publicēja Izglītības pārvērtēšanas stratēģiju, kurā ES dalībvalstis tiek aicinātas nekavējoties
nodrošināt, lai jaunieši iegūtu darba tirgū nepieciešamās prasmes un kompetences, izglītības procesā apgūtu
uzņēmējdarbības prasmes un pašiniciatīvu. Reformas jāīsteno labi izglītotiem, motivētiem un
uzņēmējdarbības kategorijās domājošiem pasniedzējiem.
2014.gada 12.septembra Eiropas Padomes (EP) secinājumos par uzņēmējdarbības izglītību un
apmācību akcentēts, ka uzņēmējdarbība izglītībā un apmācībā var veicināt nodarbinātību, pašnodarbinātību
un aktīvu pilsoniskumu, kā arī uz āru vērstas elastīgas izglītības iestādes. Papildus pamatprasmēm,
piemēram, rakstīt un rēķināt, uzņēmējdarbība prasa pakāpeniski attīstītas kompetences, sākot jau no agrīna
vecuma. Tās ir, piemēram, radošums un spēja uzņemties iniciatīvu; problēmu risināšana un kritiskā
domāšana; lēmumu pieņemšana un riska uzņemšanos; pielāgošanās spējas un neatlaidība; pašdisciplīna un
atbildības sajūta; vadība un komandas darbs; plānošanas un organizatoriskās spējas; sociālā, ekonomiskā un
kultūras konteksta izpratne; spēja pārliecināt un valodu prasmes. Minētās uzņēmējdarbības prasmes jāattīsta
visos izglītības līmeņos un cik ātri vien iespējams, caurvijot izglītības programmas tādā veidā, kas ļauj
nodrošināt to nepārtrauktu attīstību, lai tiktu sasniegti plānotie uzņēmējdarbības mācību rezultāti.
2015.gadā Eiropas Augstākās izglītības telpas ceturtajā Boloņas politikas forumā Erevānā izteikta
apņemšanās veidot inovatīvu, iekļaujošu, digitāli un uz darba tirgu orientētu augstāko izglītību, kas ne tikai
atbilst darba tirgum, bet arī rada darba tirgu.
Publikācija sagatavota valsts pētījumu programmas „Tautsaimniecības transformācija, gudra
izaugsme, pārvaldība un tiesiskais ietvars valsts un sabiedrības ilgtspējas attīstībai – jaunas pieejas
ilgtspējīgas zināšanu sabiedrības veidošanai (EKOSOC_LV)” projekta Nr.5.2.2. „Inovācijas un
uzņēmējdarbības attīstība Latvija atbilstoši viedās specializācijas stratēģijai” ietvaros, kur viens no
rezultātiem paredz inovāciju un uzņēmējdarbību veicinošu starpdisciplināro studiju formu izpēti, augstskolu
un biznesa efektīvas sadarbības nosacījumu izpēti inovācijas un uzņēmējdarbības attīstībai viedās
specializācijas kontekstā.
Pētījuma metodoloģija
Publikācijas sagatavošanā izmatotas kvalitatīvās metodes: pētījumu analīze; sistēmiska satura un
salīdzinošā analīze. ES un Latvijas politikas dokumentos un normatīvos aktos ietvertā regulējuma analīze
uzņēmējspējas izglītības pieejas aspektā.
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Rezultati –uzņēmējspējas jeb uznēmējdarbības kompetences jēdziena izpratne un ieteikumu
izpēte tās apguvei
EP secinājumos par uzņēmējdarbības izglītību termins "uzņēmējspēja" (angl. – entrepreneurship) tiek
lietots 2006. gada 18.decembra Eiropas Parlamenta un Padomes ieteikumu par pamatprasmēm mūžizglītībā
nozīmē (turpmāk – Ieteikums par pamatprasmēm mūžizglītībā), taču šajā dokumentā angļu valodas vārds
entrepreneurship latviešu valodā tulkots kā pašiniciatīva un uzņēmējdarbība un attiecas uz indivīda spējām
pārvērst idejas darbībā. Tā ietver radošu pieeju, inovāciju un riska uzņemšanos, kā arī spēju plānot un vadīt
projektus, lai sasniegtu mērķus. Tā atbalsta indivīdus ne tikai ikdienas dzīvē mājās un sabiedrībā, bet arī
darbavietā, palīdzot apzināties darba nozīmi un izmantot izdevības, un ir īpašu zināšanu un prasmju pamats,
kas nepieciešamas tiem, kas veicina vai nodarbojas ar sociālo darbību vai komercdarbību. Tam būtu jāietver
ētisko vērtību apzināšanās un jāveicina laba pārvaldība.
Savukārt, Eiropas Savienības terminu vārdnīcā termins uzņēmējdarbība skaidrots kā nodarbošanās,
darbs, profesija vai komerciāla darbība, lai gūtu peļņu vai nopelnītu iztiku. Darbība vai uzņēmums, kura
mērķis ir peļņas, labuma, priekšrocības vai iztikas līdzekļu gūšana. Termina definējums neaptver
nepieciešamo zināšanu, prasmju, spēju un attieksmes raksturojumu, t.i. uzņēmējdarbībai nepieciešamās
personas spējas un kompetenci.
Līdz ar to publikācijas autora skatījumā Ieteikumā par pamatprasmēm mūžizglītībā ir ietverts personas
spēju un kompetences raksturojums, kas nepieciešams uzņēmējdarbības īstenošanai, tādejādi lietvārda –
uzņēmējdarbība lietošana Ieteikuma par pamatprasmēm mūžizglītībā oficiālajā tulkojumā latviešu valodā
personas spēju, kompetences un attieksmju raksturošanas nolūkā būtu nomaināma ar īpašības vārdu
„uzņēmējspējas”.
Termina definēšanas uz izpratnes problemātika pētīta arī K.Oganisjanas promocijas darbā „Studentu
uzņēmības veicināšana studiju procesā”. Promocijas darba autore pētījumā vārdu "entrepreneurship", ja tas
izmantots procesa raksturošanai, latviešu valodā tulkoja kā "uzņēmējdarbība", bet, ja šo vārdu angļu valodā
izmanto cilvēka darbības raksturojumam, kā tā personiskās dotības un īpašības, arī kā rīcība uzņēmējdarbībā,
tad šo vārdu latviešu valoda tulko kā "uzņēmējspēja" (Oganisjana, 2010).
Gan no ES dokumentu konteksta, gan pētījumu atziņām izriet, ka uzņēmējspējas (uzņēmējdarbības
kompetence) attīstās zināšanu, prasmju un pieredzes apguves procesā. Savukārt Izglītības likuma 1.pantā
noteikts, ka izglītība ir sistematizētu zināšanu un prasmju apguves un attieksmju veidošanas process un tā
rezultāts. Izglītības rezultāts ir personas zināšanu, prasmju un attieksmju kopums (Izglītības likums, 1999.)
un uzņēmējspējas attīstāmas visos izglītības līmeņos no pirmsskolas izglītības, pamatizglītības, vidējās
izglītības līdz augstākajai izglītībai.
Saistībā ar uzņēmējdarbības veicināšanu, par uzņēmējspējas apguves iespējām izglītības procesā ir
pieejami gan vairāku pētījumu rezultāti, gan publikācijas. K.Oganisjana no 2011. – 2015.gadam veikusi
pētījumu „Pedagogu profesionālo kompetenču pilnveide darbam starpdisciplinārā vidē, lai tuvinātu mācības
reālajai videi un paaugstinātu skolēnu uzņēmību”. Pētījumā tika iesaistītas piecas Latvijas vispārējās
izglītības iestādes un tā mērķis saistīts ar skolēnu uzņēmības un uzņēmējspējas veicināšanu. Pētījuma
ietvaros sagatavoti uzņēmību un uzņēmējspēju veicinoši ieteikumi ieviešanai vispārizglītojošo skolu praksē,
tostarp, apvienot teoriju un praksi ar to tuvinot mācību procesu reālās dzīves situācijām, veicināt skolēnu
izpratni, kur un kā varēs pielietot mācībās iegūtās zināšanas reālā dzīve. Starpdisciplināro mācību ieviešanā
sākt ar mācību saturu saistītu reālās dzīves problēmu saskatīšanu un to, kādu jaunu labumu vai vērtību var
izveidot sev un sabiedrībai u.c. (Oganisjana, 2015).
Profesionālās augstākās izglītības studiju programmās un profesionālās izglītības programmās
atbilstoši konkrētas izglītības valsts standartam obligātā satura daļa ir prakse. Prakses organizācijai katrā
programmu veidā ir noteiktas atšķirīgas prasības, bet pastāv kopēji aspekti:
1) prakses norises juridiskais pamats ir prakses līgums par prakses vietas nodrošināšanu ar prakses vietu
vai augstskolas lēmums par prakses vietas nodrošināšanu augstskolā. Profesionālajā izglītībā noteikts,
ka līgums ir trīspusējs, starp izglītības iestādi, prakse vietu un izglītojamo vai tā likumisko pārstāvi;
2) uzsākot praksi ir jābūt iepriekš noteiktam prakses mērķim, uzdevumiem. Noslēdzot praksi, ir jābūt tās
izvērtējumam, kurā piedalās prakses vietas pārstāvji. Profesionālās izglītības regulējumā noteikts, ka
prakses vietas noteiktais prakses vadītājs apstiprina praktikanta ierakstus prakses dienasgrāmatā vai
prakses pārskatu un sagatavo praktikanta raksturojumu, kas pēc būtības arī ir praktikanta prakses
izvērtējums.
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2014.gada 10.marta Eiropas Padomes rekomendācija par mācību darba vietā kvalitātes nodrošināšanu
izteikts secinājums, ka Prakse darba vietā ir būtiskākais aspekts iekļuvei darba tirgū, ka arī vērsta uzmanība
uz to, ka vairums aptauju un pētījumu atklāj prakses darba vieta kvalitātes problēmas, īpaši, ja izglītības
iestāde tieši nav atbildīga par prakses saturu un īstenošanas nosacījumiem. Līdzīgus secinājumus var gūt no
Nozaru ekspertu padomju aptaujas 12 tautsaimniecības nozarēs.
EP ieteikumi uzņēmējdarbības izglītības īstenošanai sagatavoti, ņemot vērā dalībvalstu praksi un
institūciju autonomiju, gan par izglītības sistēmu atbildīgajām institūcijām (ministrijām u.c.), gan formālās,
gan neformālās izglītības īstenotajiem, t.sk., izglītības un apmācības iestādēm, augstskolām, satur gan
norādes uzņēmējdarbības izglītības veicināšanai, gan ierosinājumu par vienoto ES instrumentu izmantošanu
izglītības sniedzēju pašvērtējumam par sasniegto uzņēmējdarbības izglītībā, gan ieteikumus iesaistīties
vienotajos ES sadarbības tīklos un programmās gan institūciju, gan pedagogu līmenī.
References
European Commission, „Europe 2020”, a strategy for smart, sustainable and inclusive growth, [Online].
Aviable: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:2020:FIN:EN:PDF. [Accessed:
Aug 28, 2015]
European Commission „Rethinking Education:Investing in skills for better socio-economic outcomes”,
[Online].Aviable: http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52012DC0669&from=EN.
[Accessed: Aug 28, 2015]
European Parliament and of the Council Recommendations „Key competences for lifelong learning” [Online].
Aviable: http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32006H0962&from=EN
Council of the European Union, Council conclusions on entrepreneurship in education and training, [Online]. Aviable:
http://www.consilium.europa.eu/en/meetings/eycs/2014/12/12/ [Accessed: Aug 28, 2015]
Council of the European Union, Council recommendation on a Quality Framework for Traineeships [Online]. Aviable:
https://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/lsa/141424.pdf [Accessed: Aug 28, 2015]
„Glossary of European Union Terminology”. Translation and Terminology Centre,. Riga: Madris, 2004.
Oganisjana K. Interdisciplinary Teaching and Learning for Promoting Entrepreneurship. Riga: Universitu of Latvia,
2015, pp 12, 154-159.
Republic of Latvia. Cabinet Regulation No. 141 Adopted 20 March 2001 „Regulations regarding the State Standard for
First Level Professional Higher Education” http://likumi.lv/doc.php?id=6397 [Accessed: Aug 28, 2015]
The Parliament of the Republic of Latvia, Education Law [Online]. Aviable: http://likumi.lv/doc.php?id=50759
Ministru kabineta 2014.gada 26.augustā noteikumi Nr.512 „ Noteikumi par otrā līmeņa profesionālās augstākās
izglītības valsts standartu”, [Online, Latvian]. Available: http://likumi.lv/doc.php?id=268761 [Accessed: Aug
28, 2015]
Ministru kabineta 2012.gada 20.novembrī noteikumi Nr.785 „Mācību prakses organizācijas un izglītojamo
apdrošināšanas kārtība”, [Online, latvian]. Aviable: http://likumi.lv/doc.php?id=252862
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Innovative Methods of Teaching and Learning for Promoting Entrepreneurial
Competences
Alla Sorokina
Belarusian National Technical University, Belarus, allasorokina@mail.ru
Abstract
The article deals with the problem of promoting entrepreneurial competences. Different educational
methods associated with successful development of entrepreneurial competences are mentioned, but an
evident advantage of a practical application of a case-study method in teaching and learning for
promoting entrepreneurial competences is revealed.
Keywords: entrepreneurs, entrepreneurial competences, case-study method.
Introduction
By innovative educational methods for promoting entrepreneurial competences we understand a
combination of technologies and tools oriented on teaching and developing entrepreneurial competences.
These educational methods must optimize teaching process. It means to meet educational objectives with
minimum strength of teachers and students but with high quality of education and training and less time.
Innovative educational methods provide wide use of active and interactive forms of classes for
developing key and entrepreneurial competences of future entrepreneurs. They are discussions, computer
simulations, business and role games, psychological trainings, projects, teleconferences, analysis of business
situations or case-method, etc. Among all of them a case-method is very popular with teachers.
The essence of this method is presenting the main aspects of economic problem. After studying
analytical and statistic materials students get involved in the process of searching different decision-making
strategies of the suggested economic problem. All the actions done by students are driven by the desire to
participate in the activity and to improve their entrepreneurial competences.
Case-method gives opportunities to apply all theoretical knowledge of economic subjects, allows
students to get experience in solving real problems in the sphere of entrepreneurship, and improves
entrepreneurial competences. The activity of students in professional spheres is realized through case-method
in different forms: presentation, public speaking, business talk, discussion, interview, phone talk,
negotiations, meeting, business game, seminar, conference, and symposium. In real communication all these
forms are interconnected.
Vital competences of entrepreneurs to run business successfully
Entrepreneurial ccompetences range from personality traits and individual motivations to specific
professional knowledge and skills. There are a number of traits that create a strong basis for the developing
strong entrepreneurial competences and predict success in future business. They are passion, proactivity,
tenacity, new resources skill. Motivation usually stimulates entrepreneurs to develop their knowledge, skills
and abilities necessary to be involved in risk activities and to take responsibility for outcomes. To be
qualified as an entrepreneur a graduate must be competent to solve the following professional tasks: to direct
businesses and create new innovative projects, providing for sustainable development and success of the
company in long-term perspectives; to study and employ up-to-date methods of business management and
development; to work out and implement effective strategies for growth of company competitiveness; to
employ principles and methods of outsourcing and empowerment; to manage company personnel; to
analyze, control and regulate financial and economic situations in the company; to use modern information
technologies for realization of management function; to carry out marketing research and employ its results
for planning and organizing of production and service; to estimate quality and effectiveness of projects and
organize their implementation; to prepare management documents; to hold business meetings; to formulate
operative tasks of management and control their performance; to organize work based on science; to be able
for lifelong learning; to understand social significance of entrepreneurs’ activity.
Advantages of case-study method
There are a lot of educational opportunities of case-study method: acquisition of new knowledge and
development of general ideas; development of students’ self-critical and strategic thinking; the ability to
listen to and consider the alternative views, express their point of view; development of skills which are
necessary for the analysis of complex and unstructured problems; development of common sense,
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responsibility for the decision-making process, the ability to communicate; skills development activities and
their implementation; the ability to work in a team; the ability to find the most efficient solution to the
problem.
To reveal the successful application of case-study method and to diagnose the level of formed
competences of entrepreneurs we have employed methodic experiment, based on a definite scheme. Firstly,
students are involved in an actual business situation presenting the information about company’s product, its
place on the market, its competitors, financial situation, sales volumes, management, employees and other
factors affecting the company’s success. Secondly, students are expected to scrutinize and analyze the case
study and prepare to discuss strategies and tactics that the company should employ in the future. And finally,
demonstrate their professional competences. Testing and examination are just the tools for control and
estimation of developed entrepreneurial competences.
Results
grades
In Figures 1 and 2 you can see the results of the analysis of entrepreneurial competences of students
after using and not using the above recommendations. 20 students were tested, 10 students followed the
concept mentioned above and 10 students didn’t follow it. In figure 1 the results of the first group of students
are reflected, the data in figure 2 illustrate the results of the second group of students.
10
9
8
7
6
5
4
3
2
1
0
1
2
3
4
5
6
7
8
9
10
students
Figure 1. The results of the first group of students before (light column) and after (dark column) the
application of the author’s recommendations
10
grades
8
6
4
2
0
1
2
3
4
5
6
7
8
9
10
students
Figure 2. The results of the second group of students before (light column) and at the end (dark column) of
the process of traditional education
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Conclusions
Experiment and analysis of the research work described in the article prove the reliability of casestudy method in the process of developing vital competences of entrepreneurs, necessary for successful
business.
Case - study provides a systematic way of looking at events, collecting data, analyzing information
and reporting the results. And finally, students develop their abilities to analyze complex situations, generate
a variety of possible strategies, to select the best ones and to present their opinions in front of the audience.
Thus, students, future entrepreneurs, develop their vital competences successfully to turn the company into
profitable and competitive one when in business education a case-study method is employed actively.
References
Ditkoff, M. 20 qualities of an innovator. Retrieved January 3, 2013 from http://www.ideachampions.com
Boyd, D. What an innovative culture looks like. Retrieved January 3, 2013 from http://www.innovationinpractice.com
Boyd, D. Innovation competency model. Retrieved January 3, 2013 from http://www.innovationinpractice.com
Smilor, R. W. (2011). Entrepreneurship: Reflections on a subversive activity. Journal of Business Venturing, 12(5),
341-346.
Gartner, W. B., Gatewood, E., & Shaver, K. G. (1991). Reasons for starting a business: Not-so-simple answers to
simple questions. In G. E. Hills & R. W. LaForge (Eds.), Research at the marketing/entrepreneurship interface
(pp. 90–101). Chicago: University of Illinois at Chicago.
Mitchelmore, S., & Rowley, J. (2008), Entrepreneurial competencies: a literature review and development agenda,
International Journal of Entrepreneurial Behavior & Research, 16, 92- 111.
Colombo, M. G., & Grilli, L. (2005). Founders’ human capital and the growth of new technology-based firms: A
competence-based
view.
Research
Policy,
34,
795-816.
Nuthall, P.L. (2006). Determining the important skill competencies. The case of family farming business in New
Zealand. Agricultural Systems, 88:429-450.
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SUBSECTION
“SAFETY OF TECHNOGENIC ENVIRONMENT“
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Minimising Radiofrequency Radiation Exposure of Smart Phones and Tablets Using an Off-Line Reader Instead of Wireless Browsing for Mobile Learning
Mikko Ahonen1, Tarmo Koppel2
1
Sustainable Mobile Ltd, Finland, mikko@sustainablemobile.com
2
Tallinn Technical University, Estonia, tarmo@koppel.ee
Abstract
Recently, problems of mobile learning have emerged because of possible radiofrequency (RF)
radiation related health risks and interruptions due to constant connectivity. This research compares two
situations: using a reader in off-line mode versus browsing content wirelessly with a 3G data connection.
The same content is read in off-line and in online mode with a smart phone. Thereafter RF radiation
exposure is calculated as SAR (Specific Absorption Rate) and cumulative exposure as µWh/m² by special
software. It will be shown that by using off-line mode, cumulative RF radiation power density levels
dropped to 1/32nd -part and the RF radiation exposure time almost zero. The benefits of asynchronous
(off-line) versus synchronous (on-line) communication in mobile learning are discussed.
Keywords: mobile learning, risk management, radiofrequency radiation, health, reading
Introduction
Mobile learning encompasses both learning supported by mobile technology and also learning in an
era characterized by constant mobility of people and knowledge (Sharples et al., 2011). Mobility provides
certain benefits, but side effects should be discussed and possible risks should be mitigated. WHO IARC
(2011) classified radiofrequency (RF) radiation ‘possibly carcinogenic’. Recently 200 electromagnetic fields
(EMF) researchers contacted the United Nations, indicating the inadequacy of current guidelines and calling
for protecting risk groups i.e. children and pregnant women from excess exposure to the EMFs (EMF
Scientist Appeal, 2015). The appeal also highlighted the importance of investigating methods of reducing
exposure to RF EMFs (EMF Scientist Appeal, 2015). When learners utilise mobile devices like laptops,
tablets and smart phones for data access wirelessly, strongest RF exposure is in hands, stomach and genitals
of learners (Guterman et al., 2009).
Not only radiation-related risks are mentioned in the context of mobile learning, Spitzer (2013) warns
about the risk of addiction in online use and dependency on online connectivity. Czerwinski, Cutrell, and
Horvitz (2000) show how interruptions from online connectivity disturb concentration requiring tasks like
reading. Sheppard (2011) found distractive elements in the iPad E-book reading experiment, where there was
a constant online connectivity available for learners. So, being without wireless internet connection might be
beneficial for some learning tasks. Mobile learning related risk-management includes redesigning
pedagogical practices, usage patterns and even information systems (Ahonen & Koppel, 2012).
In the on-line mode, the mobile phones and tablets have the mobile data services and Wi-Fi turned on
to connect to the internet to download constantly content. The RF radiation exposure consists of
downloading content packages, but also consists of other applications’ connections to the internet.
In the off-line mode, the smart phone has mobile data and Wi-Fi turned off. Content is synchronised
beforehand and stored in the mobile phone’s memory card. Browsing of content usually utilises a special offline capable reading application (app). To compare these two usage models, a test-set up was created.
A reader program (app) was installed from the Google Play Internet repository to an Android smart
phone (Samsung Galaxy S3). One specific off-line reader program, GReader (http://noinnion.com/greader/)
was selected, because it allows full off-line functionality. The content was utilised in a form of blog posts. In
this research paper we report only two different use cases with one Android smart phone: 1) reading content
in off-line mode with an off-line reader 2) reading content in 3G good connectivity online mode.
Totally 5 news items were read on screen both in off-line and on-line mode. A protocol was followed
that simulated reading, so a page turn to the next new item took place after 2 minutes. Total session time for
both exposure scenarios was therefore 10 minutes. During this reading and downloading activities a special
programme, a Quanta Monitor app (http://www.cellraid.com) recorded cumulative RF power density and
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SAR (Specific Absorption Rate). Quanta Monitor directly monitors the phone’s RF emissions which are
stored on the phone’s internal memory.
Findings/Results
Log-files from the memory card of the mobile phone were analysed on a personal computer utilising
Microsoft Excel and average values were calculated. The cumulative RF radiation exposure, measured in
µWh/m², was 32 times higher for on-line users (table 1). The SAR (Specific Absorption Rate) indicates nearfield exposure in close range (<10 cm) especially to hands of users. Highest SAR levels were recorded when
there was a wireless connection switched on and the device was simultaneously kept in hands. Generally,
during the off-line use, the user is not exposed to RF radiation at all and SAR-value is zero, if content
synchronising and downloading is done beforehand for example in a docking station.
Table 1. a 10 minute cumulative exposure from reading 5 pages of an electronic document on a smartphone:
off-line compared to on-line mode
Cumulative exposure
(µWh/m²)
Off-line mode (transmitters
turned off while reading)
On-line mode (transmitters
active all the time)
Comments
RF exposure existed only during content
downloading, not during reading.
Burst-like RF exposure existed during
downloading and reading.
76
2481
Conclusions
By using asynchronous learning practices, RF radiation related exposure and possible health risks can
be minimised. Interruptions and distractions from online connectivity can also be avoided. However, reading
is not the only task and more research is needed on asynchronous communication of mobile learning and its
risk-minimising effects. More user scenarios (Wi-Fi, poor cellular network coverage, tablet use, various
mobile devices) would be needed to investigate. The results of these studies will provide the basis for RF
EMF risk-management, while simultaneously new pedagogical designs will be needed.
References
Ahonen, M. & Koppel, T. (2012). Mobile Learning and Health-Risk Management of Pulsed Microwave Technologies.
In Specht, M. et al. (eds.) mLearn 2012, Mobile and Contextual Learning, Proceedings of the 11th International
Conference on Mobile and Contextual Learning 2012 Helsinki, Finland, Oct 16 -18, 2012. Helsinki, 134-139.
EMF Scientist Appeal (2015). Scientists call for Protection from Non-ionizing Electromagnetic Field Exposure. URL:
http://www.emfscientist.org
Guterman, J., Moreira, A. A., Peixeiro, C., & Rahmat-Samii, Y. (2009). Wrapped Microstrip Antennas for Laptop
Computers. IEEE Antennas and Propagation Magazine, 51(4), 12–39.
Sharples, M., Taylor, J., & Vavoula, G. (2010). A Theory of Learning for the Mobile Age. In B. Bachmair (Ed.),
Medienbildung in neuen Kulturräumen, Wiesbaden: VS Verlag für Sozialwissenschaften. (pp. 87-99).
Sheppard, D. (2011). Reading with iPads–the difference makes a difference. Education Today 3.2011: 12-17.
Spitzer, M. (2014). Information technology in education: Risks and side effects. Trends in Neuroscience and Education,
3(3), 81–85
Czerwinski, M., Cutrell, E., & Horvitz, E. (2000). Instant messaging and interruption: Influence of task type on
performance. In OZCHI 2000 conference proceedings (Vol. 356, pp. 361-367).
WHO IARC (2011) IARC classifies radiofrequency electromagnetic fields as possibly carcinogenic to humans. URL:
http://www.iarc.fr/en/media-centre/pr/2011/pdfs/pr208_E.pdf
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Ergonomics in Business – Approach for Organisation Efficiency Improvement
Henrijs Kalkis 1, Zenija Roja 2, Sandis Babris3, Irina Rezepina4
1
Riga Stradins University, Latvia, henrijs.kalkis@rsu.lv
2
University of Latvia, Latvia, zenija.roja@lu.lv
3
BA School of Business and Finance, Latvia, sandis.babris@primekss.lv
4
University of Latvia, Latvia, irina.rezepina@lu.lv
Abstract
The investigation focuses on literature analysis on ergonomics implementation in business
environment in order to find out contemporary approaches how to reach wellbeing and efficiency in
organisations. Wellbeing at work promotes employee’s feeling of belonging and trust to the enterprise
and contemporary effectiveness of the organisation is closely related to a human as performer of the work
duties, and his or her skills and health affect business results of organization. The aim of the research is to
establish a strategic approach on ergonomics implementation in business organisations based on the
theoretical background of the ergonomics to improve the management.
Keywords: ergonomics, business, efficiency, improvement
Introduction
Nowadays human factors or ergonomics are important in entrepreneurship that characterizes not only
wellbeing of the employees but also process efficiency and profitability of the enterprise. Wellbeing at work
promotes employee’s feeling of belonging and trust to the enterprise (Roja Z., 2008) and various studies in
the world prove that effectiveness of the organisation is closely related to a human as performer of the work
duties, and his or her skills and health affect business results of organization (Sperry L., 2002). The aim of
the research is to establish a strategic approach on ergonomics implementation in business organisations
based on the theoretical background of the ergonomics to improve the management.
The monographic research method and comparison method were used to analyze theoretical
application of the ergonomics in the business management.
Findings/Results
As macro-ergonomics approach states the ergonomics intervention in organisations improves efficacy
of organisation’s functions and ensures wellbeing at work, which promotes achievement of positive process
result and client’s satisfaction (Hendrick H.W., 1994; Hendrick H.W., Kleiner B.M., 2002). It should be
noted that ergonomics intervention in organisation management simultaneously with advantages can cause
also negative side-effects as well, which need to be coordinated and monitored. Such side-effects basically
can be related to manufacturing enterprises (for example in assembly line), introduced into production, or
automatic system, but with careful and proper planning and management techniques the problems can be
solved.
On the basis of the idea of operations value chain usually the SIPOC (supplier - input - process output - customer) principle is used (Lussier R.N., 2014). Hence the management should be effective,
productive, controllable and adaptable and at the same time adjust to certain conditions, determined by
organisation strategy, restrictions or rules. Such approach has become an effective management approach for
ensuring sustainable activity and development of big and small organisations and is known as LEAN
methodology (Mann D., 2014). One of the main principles in today’s business is involvement of the
employees in the change and continuous improvement process (Heizer J., Render B., 2001). It requires
additional knowledge of the work to be done, incl. processes. Knowledge is related with continuous
education on possible management risks and their reasons (Kalkis V., 2008). Therefore it is important to
prepare employees for the upcoming changes so that the common performance of the organisation system
would be continuously adjusted and improved, and long-term efficacy of the organisation ensured (Kalkis,
H., 2014).
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For the practical implementation of the ergonomics solutions in the organisation managers should
ensure regular training of employees on ergonomics principles in process improvement and increase in
productivity, in programmes of acquisition of new positions and work types to improve skills and
competences in order to successfully implement the necessary changes in process management.
Conclusions
Nowadays changes in business management have caused necessity to evaluate the management
approach, increasingly paying attention to a human factors at work. The guidelines for strategic approach on
ergonomics implementation in business organisations have been worked out, taking into the consideration
the micro- and macro-ergonomics management methods considering the latest literature on combining
ergonomics and management strategies.
References
Heizer, J., Render, B. (2001). Operations Management. 6th Edition. USA: Prentice Hall, 874 p.
Hendrick, H.W. (1994) Macroergonomics as a Preventative Strategy in Occupational Health: an Organizational Level
Approach. In G.E. Bradly, H.W. Hendrick (Eds.), Human Factors in Organizational Design and Management –
IV, Amsterdam: North-Holland. p. 713 – 718.
Hendrick, H.W., Kleiner, B.M. (2002) Macroergonomics: Theory, Methods and Applications. New Jersey: Lawrence
Erlbaum. 432 p.
Kalkis, H. (2014) Business Ergonomics Management. Riga: Gutenbergs Druka – 155 p. (in Latvian)
Kalkis, V. (2008) Work environment risk assessment methods. Latvian Education fund, 242 p. (in Latvian)
Lussier, R.N. (2014) Management Fundamentals: Concepts, Applications, & Skill Development. Sixth Edition. SAGE
Publications, 552 p., Inc
Mann, D. (2014) Creating a Lean Culture: Tools to Sustain Lean Conversions. USA: Productivity Press, 407 p.
Roja, Z. (2008) Basics of Ergonomcis. Riga: Drukatava. – 245 p. (in Latvian)
Sperry, L. (2002) Effective Leadership: Strategies for Maximizing Executive Productivity and Health. New York:
Brunner-Routledge. – 237 p.
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Microwave Reflection Properties of Building Materials in the Working
Environment
Tarmo Koppel1, Heldur Haldre2
1
2
Tallinn University of Technology, Estonia, tarmo.koppel@ttu.ee
Institute of Environmental Health and Safety, Estonia, info@envirohealth.info
Abstract
The relevance of the microwave electromagnetic field risk management may include 1) protecting
sensitive electronic equipment from the electromagnetic interference, 2) counter-espionage including
neutralizing electronic surveillance and 3) the protection of the personnel wherever strong microwaves
are encountered. Also, it has been suggested that certain people in risk groups, may be more vulnerable to
the microwaves than others. This preliminary study investigates 2.4GHz microwave electromagnetic field
reflective properties in contact with various construction materials in the working environment. The
reflection amplitude of the materials was measured by a setup involving a microwave source and a
radiofrequency electromagnetic field peak detector. All the tested materials exhibited some reflective
properties. The strongest reflections were recorded from gypsum board on wooden plank wall; the least
reflections were recorded from the gypsum board on a silicate brick wall. The results suggest, that in
assessing the microwave reflective properties of the building, the complete structure of the element must
be taken into account – while the first layer material may allow the microwave to pass through, the
following layers may present reflection. The data obtained by these measurements helps designing
buildings where the microwave mitigation is a necessity.
Keywords: microwave, radiofrequency, radiation, electromagnetic field, reflection, shielding,
materials, building.
Introduction
The emergence of new wireless information and communication technologies (ICT) has increased the
level of microwave transmissions in the modern working environment. Construction materials used indoor
and outdoor of buildings are the main determinants of the radiofrequency (RF) electromagnetic fields
(EMFs) propagation in the working environment. Some materials act as a propitious medium for the
travelling microwave, whereas some act as absorbents and inhibit the wave. Mostly the propagation of the
microwaves is welcomed, since several voice and data transmission protocols rely on the wireless
penetration of the signal. In some instances the necessity to mitigate the microwaves propagation may
however also be well-justified. Firstly, there might be a need to protect sensitive electronic equipment from
the electronic interference caused by the microwaves (Roh et.al. 2008; Aniołczyk & Koprowska 2004).
Secondly, the methods of counter-espionage may prescribe the use of RF absorbing materials – electronic
surveillance is often done by means of microwave transmissions. Thirdly, in face of strong RF EMFs, a need
to protect the personnel in the working premises may require the utilization of RF mitigation design and
materials. Recently, more focus has been paid on the safety of the RF EMF exposure (IARC 2013). Strong
RF EMF exposure may be titled to workers nearby plastic sealers and glue dyers, but also to radio/TV
transmission equipment workers and radar operators/technicians (Mild et.al. 2009). Also, it has been recently
suggested that certain people in risk groups, may need additional protection from the RF EMFs (European
Parliament 2009; Council of Europe 2011).
This preliminary study investigates the microwave (2.4GHz) reflective properties in the working
environment, both indoor and outdoor.
A measurement setup was constructed, involving 1) a 2.4GHz 0.1W microwave source, 2) a RF EMF
peak detector (GigaHertz Solutions HF59B) and 3) a rig to facilitate the irradiating and the receiving
antenna. The irradiating antenna was inside a waveguide facing the material under testing (distance 0.93m
from the material). The receiving antenna was in line with the irradiating antenna and the wall (distance
0.10-0.13m from the material). The rig allowed adjusting the position of the receiving antenna, in order to
determine the minimum and the maximum amplitude of the standing wave. The standing wave was a product
of the reflective properties of the material under the test and the waveguide. The stronger the reflective
properties of the material, the larger difference in between the minimum and maximum points of the standing
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wave. The standing wave amplitude was measured in about one wavelength from the material under the test.
The reflection coefficient (Г) was calculated based on the electric field strength of the reflected wave (E-)
ratio to the incident wave (E+) (Eq. 1). The E+ and E- were calculated based on the electric field strength at
the minimum and the maximum amplitude of the standing wave. Initially, to calculate the insertion loss,
reference measurements were performed without any building material. In calculating the real reflection
coefficient, the reference measurement was subtracted from all the material measurements.
(1)
The measurements were conducted in the working environments. Measurements were taken from the
construction materials both indoor and outdoor of the building. Due to physical properties of the RF EMFs,
i.e. the wave propagation, the surrounding environment (reflecting surfaces), the environment around the
irradiator would exhibit minimum and maximum points. Unlike in a RF test chamber, where the reflections
are eliminated, the actual working environment would allow the RF field to create spurious signals from
secondary reflections. In order to minimize the effect of secondary reflections, the same material was
measured at different locations and the results averaged. The aim of this study was to record the reflective
properties of building materials in actual environments, therefore the bias from the surrounding reflections
should be taken into account when evaluating the results.
Findings/Results
The results show various reflecting properties across different construction materials. For instance,
when the superficial material exhibited RF pass-through properties, the substructure may have reflected the
RF field and created secondary reflections. Therefore, while assessing RF EMF reflections in the working
environment, all the materials in different layers of the building elements, i.e. walls, must be taken into
account. Table 1 presents the reflection measurement results as classified into three categories,
corresponding to light, moderate and strong RF reflection properties of the construction materials.
Table 1. Construction elements’ radiofrequency radiation reflection at the 2,4GHz frequency
Construction element
gypsum board on an iron mesh on a wooden plank wall
roughcasted silicate brick wall
roughcasted limestone wall
red clay brick wall
roughcasted aerated block wall
roughcasted timber wall
gypsum board on a timber wall
window glass, 1 layer
roughcasted polystyrene plate on a silicate brick wall
gypsum board on a silicate brick wall
open window towards the trees (control)
Reflection coefficient
0,82
0,71
0,56
0,54
0,48
0,48
0,38
0,37
0,34
0,28
6,52x10-17
Conclusions
Generally, all the tested materials exhibited some reflective properties. The strongest reflections were
recorded from gypsum board on wooden plank in which the reflections were mainly created probably by an
iron mesh inside the roughcast. The least reflections were recorded from the gypsum board on a silicate brick
wall. Whereas the gypsum board indicated pass-through properties when encountering the microwave, the
next material beneath the gypsum board determined the overall reflection property of the wall.
References
Aniołczyk, H. & Koprowska, J.(2004). Occupational and public EMF exposure - textiles shields as a modern approach
for protection, 11th International Congress of the International Radiation Protection Association, Madrid, Spain,
23-28 May 2004, [CD-ROM] Available: http://irpa11.irpa.net/pdfs/8d2.pdf [Accessed: June 1, 2013].
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ISBN: 978-9934-8275-3-2
Council of Europe (2011). The potential dangers of electromagnetic fields and their effect on the environment.
Parliamentary
Assembly.
Report.
Doc.
12608.
URL: http://assembly.coe.int/main.asp?link=/documents/workingdocs/doc11/edoc12608.htm
European Parliament (2009). Avoiding potential risks of electromagnetic fields. Statement and press release 2nd April
2004.
URL:
http://www.europarl.europa.eu/news/expert/infopress_page/066-53234-091-04-14-91120090401IPR53233-01-04-2009-2009-false/default_en.htm
IARC (2013). WHO International Association on Research on Cancer. Non-ionizing Radiation, Part 2: Radiofrequency
Electromagnetic Fields, volume 102, iarc monographs on the evaluati on of carcinogenic risks to humans.
Mild, K.H., Alanko, T., Decat, G., Falsaperia, R., Gryz, K., Hietanen, M., Karpowicz, J., Rossi, P., Sandström,
M.(2009). Exposure of workers to electromagnetic fields. A review of open questions on exposure assessment
techniques, International Journal of Occupational Safety and Ergonomics (JOSE), vol. 15 (1), 2009, pp. 3-33.
Roh, J.-S., Chi, Y.-S., Kang, T. J. and Nam, S. (2008). Electromagnetic Shielding Effectiveness of Multifunctional
Metal Composite Fabrics, Textile Research Journal, vol. 78(9). 825–835.
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Shielding Inbound Microwave Electromagnetic Radiation
Tarmo Koppel1, Heldur Haldre2
1
2
Institute of Environmental Health and Safety, Estonia, info@envirohealth.info
Abstract
The necessity to shield the premises from microwave radiation could generally be prescribed by three
areas of risk management. Protecting sensitive electronic equipment from inbound electromagnetic
interference may be relevant to ensure the operability of such devices. Counter-espionage measures may
also require shielding the room in order to prevent electronic eavesdropping and to ensure the secure
electronic data and voice transmissions within the facility. Strong nearby electromagnetic field sources
may also call for shielding in order to protect the people from excess exposure. This extended abstract of
a study describes the shielding of room by covering the window with 1) an iron mesh (¤10x25mm) and 2)
a metal containing shielding curtain. The microwave source was placed outside the room, in front of a
window. Measurements done before and after the shielding interventions show that both screening
materials decreased the microwave levels inside the room many folds. However in case of the metallic
curtain, which was closely connected to the wall, there were less gaps from which the microwaves could
slip into the room, providing somewhat better shielding outcome.
Keywords: electromagnetic field, microwave, radiofrequency, mitigation, shielding, reduction, risk
management.
Introduction
Shielding the room from microwave radiation could represent different areas of risk management.
Shielding may be relevant due to sensitive electronic equipment as electromagnetic interference (EMI) may
affect the operability of these devices. EMI issues may rise from the use of electronic devices in
communications, broadcasting, automations, computations, biomedicine and other applications (Roh et al
2008; Aniolczyk & Koprowska 2004).
Shielding the rooms from microwaves is also unavoidable, if emphasis is put on the data security risk
management. Counter-espionage measures such as shielding the rooms to prevent electronic eavesdropping
would ensure the users that electronic data and voice transmissions across the facility could not be detected
or transmitted to outside of the premises.
Shielding of the room or the entire building also becomes relevant if there are strong electromagnetic
fields’ (EMF) sources nearby and assertion to guarantee the safety and well-being of people in the observed
premises is required. Relatively high levels of radiofrequency (RF) electromagnetic fields may be found in
many industrial processes: radiofrequency welding, industrial microwave ovens, mobile communication
towers, radar towers, high power transmitters and their antenna arrays, welding, induction heating and other.
Workers nearby plastic sealers, glue dryers, radio&TV towers and radars are also likely to encounter highlevels of RF EMFs (Mild et al 2009).
If risk groups are involved, even more protection from the electromagnetic fields may be required. In
recent years, more emphasis has been paid on the risk management of the RF EMFs (European Parliament
2009; Council of Europe 2011; IARC 2013).
This study tested the shielding efficiency of RF screening materials in case of inbound microwaves.
The measurement context involved a room, a window and a microwave source placed to outside of the room,
in front of a window. In this study, only a window was shielded, as this is the main pathway for the
microwaves to enter the room. The microwave source was operating at a frequency of 2.4 GHz providing a
0.5W power output to a parabolic antenna which directed most of the radiation towards the window. As an
intervention measure, the window was covered with a screening material that would screen out the
microwaves but at the same time would allow the light to pass through. Shielding solutions that would
obstruct the light entering the room would understandably be unpractical.
The tested screening materials were 1) an iron mesh (¤10x25mm) and a 2) metal containing shielding
curtain. The iron mesh was placed on the window to outside of the room and connected with nails to the
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wooden frame of the window. The shielding curtain was placed to cover the window from inside of the
room, distanced at ~0.15m from the window.
The screening efficiency was determined by taking the following measurement rounds in the room: 1)
two layers of windows in place; 2) two layers of windows in place covered with a screening curtain; 3) two
layers of windows in place covered with an iron mesh. The windows were wooden framed.
For each intervention scenario the measurements were conducted in the room: 1) vertically covering
25 points across the window at 0.3m from the window and 2) horizontally across the room, covering also 25
points at the height of 1m. At each measurement point the meter was circled around the point, in order to
capture the highest exposure reading in the given quadrat. These 25 points were arithmetically averaged to
provide a general figure representing the microwave level inside the room before and after screening
intervention. Power attenuation factor in decibels (dB) was calculated as a ratio of the shielding intervention
to the initial conditions (2 layers of windows). Prior to the measurement, the ambient radiofrequency field
was measured to ensure that there were no other significant RF sources nearby that could affect the test
results.
For measurements a handheld radiofrequency spectral analyzer ANRITSU MS2711 (Kanagawa,
Japan) together with an electric field broadband omnidirectional antenna Omnilog 90200 from Aaronia AG
(Rickscheid, Germany) was used.
Findings/Results
In this study one room was tested based on the protocol described in the previous chapter. Both
screening materials turned out to provide significant reduction in the microwave levels inside the room. Even
the window glass removed about a half of the inbound radiation. Table 1 presents the shielding effectiveness
results for each measurement scenario.
Table 1. Microwave field levels inside the shielded room for different shielding scenarios
Exposure scenario/tested material
2 layers of windows
2 layers of windows and a metallic curtain
2 layers of windows and a metallic curtain, edges tightly connected to
walls
2 layers of windows and an iron mesh
Average attenuation level (dB)
vertical plane
horizontal plane
0
0
-8.8
-5.9
-12.6
-5.8
-5.3
-4
Conclusions
In general, the outcome of the shielding intervention doesn’t only depend on the dampening
effectiveness of the material itself, but also on how masterfully tightly the material is applied. The RF field
has a nature to slip in from even minor cracks, slits and other pathways. Each room is unique in its shape and
by the position/size of the windows. Also the building construction materials differ, which have an impact on
the dampening effectiveness when shielding only the windows. To plan effective shielding, the position and
the angle of a microwave source should also be accounted for. Besides the microwave source, also the
surrounding building, vegetation and other objects in the neighborhood have their effect on the propagation
of the electromagnetic field.
In the given setup, the shielding curtain proved to be more effective than iron mesh. This is evident
when analyzing vertical plane measurement results, which were obtained close to the shielding screen 0.3m
from the window. In applying the shielding curtain, two measurement rounds were conducted. In the first
measurement the metallic curtain was applied as a normal curtain with open at sides. This provided a
waveguide in between the window and the curtain, so the microwave infiltrated into the room from around
the curtain’s edges. Therefore, for an effective shielding application, the material must be closely connected
to the window and to the wall, as done in the second measurement with the curtain. In general, applying any
shielding material, attention should be paid in limiting microwaves on the edges of the material.
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References
Aniołczyk, H. & Koprowska, J.(2004). Occupational and public EMF exposure - textiles shields as a modern approach
for protection, 11th International Congress of the International Radiation Protection Association, Madrid, Spain,
23-28 May 2004, [CD-ROM] Available: http://irpa11.irpa.net/pdfs/8d2.pdf [Accessed: June 1, 2013].
Council of Europe (2011). The potential dangers of electromagnetic fields and their effect on the environment.
Parliamentary
Assembly.
Report.
Doc.
12608.
URL: http://assembly.coe.int/main.asp?link=/documents/workingdocs/doc11/edoc12608.htm
European Parliament (2009). Avoiding potential risks of electromagnetic fields. Statement and press release 2nd April
2004.
URL:
http://www.europarl.europa.eu/news/expert/infopress_page/066-53234-091-04-14-91120090401IPR53233-01-04-2009-2009-false/default_en.htm
IARC (2013). WHO International Association on Research on Cancer. Non-ionizing Radiation, Part 2: Radiofrequency
Electromagnetic Fields, volume 102, iarc monographs on the evaluati on of carcinogenic risks to humans.
Mild, K.H., Alanko, T., Decat, G., Falsaperia, R., Gryz, K., Hietanen, M., Karpowicz, J., Rossi, P., Sandström,
M.(2009). Exposure of workers to electromagnetic fields. A review of open questions on exposure assessment
techniques, International Journal of Occupational Safety and Ergonomics (JOSE), vol. 15 (1), 2009, pp. 3-33.
Roh, J.-S., Chi, Y.-S., Kang, T. J. and Nam, S. (2008). Electromagnetic Shielding Effectiveness of Multifunctional
Metal Composite Fabrics, Textile Research Journal, vol. 78(9). 825–835.
153
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ISBN: 978-9934-8275-3-2
Increasing Natural Daylight Levels in Atrium Type Building
Tarmo Koppel1, Piia Tint1
1
Tallinn University of Technology, tarmo.koppel@ttu.ee ; piia.tint@ttu.ee
Abstract
The scientific body of research has become clearer on the importance of natural daylight on human
health. This has called for new technical solutions to improve the situations in workplaces deficient of
adequate natural illuminance. The current study focuses on atrium type buildings where office workrooms
facing the atrium suffer from low levels of daylight. A model based on the reflectors is proposed to
increase the natural daylighting in these workrooms. The model consists of 1) a sunlight collector that is
placed on the roof, above the atrium, which guides daylight into the atrium shaft, 2) inside walls of the
atrium, covered with reflective and light diffusing material which will redirect the light into the
workrooms. A downsized model representing a classic atrium type building was built to test the
effectiveness of the proposed intervention. After installing the reflectors the lighting levels of the model
workroom showed drastic increase of about 34 fold. The study concluded that even if additional real life
factors are taken into account that attenuate the effectiveness of the reflector array, the surplus of
illuminance achieved by the system is sufficient to cover both the attenuation and to provide the
workrooms with sufficient amounts of daylight.
Keywords: lighting, daylight, illuminance, atrium, office, reflector.
Introduction
Utilizing daylight in lighting the workplaces does not only have architectural dimension but may also
be viewed from an economical point of view. Work areas lit by natural daylight require less artificial lighting
which in turn over a year may reduce overheads in significant amounts. Daylight is also the best source for
perfect colour rendering and providing people with visual comfort (Alrubaih et al., 2013). Still, many
modern building types rather follow the limitations of the construction lot or other prescribed conditions than
the considerations for maximizing the availability of natural daylight to accommodate the human needs.
Such buildings are often those with an inner courtyard or so-called atrium type buildings. Office workers
who work in rooms with the windows facing the atrium are receiving orders of magnitude less daylight than
their colleagues on the other side of the hallway.
The presence or lack of natural daylight has been connected to the well-being of human being from
multiple aspects. Human need for natural daylight is not so hard to understand when one considers the
process of Homo sapiens’ evolution, of which the daylight has been a vital part of. The science of
photobiology has contributed the daylight with several important roles in human health such as regulating the
organism’s circadian rhythms and driving the immune system, to mention only some.
Light itself consists of several parameters that are used to describe the ergonomic quality of lightings
systems (Koppel, 2012a). Illuminance level (measured in Lux), spectrum, colour temperature (measured in
Kelvins), flicker (measured in Hertz) and dynamism of the light can all describe whether the light is suitable
for human needs or not. Natural daylight is considered as an etalon for a quality lighting system. However
artificial lighting systems do try, but are hardly to achieve the same characteristics as present in natural
daylight. In occupational safety, mainly illuminance level is considered as the indicator of the indoor lighting
quality. Other previously mentioned characteristics are not well understood and therefore often omitted from
the assessment of the lighting quality. Therefore, natural light is seldom considered as a vital factor in
designing new buildings. This has put many office workers into positions where accessibility to natural
daylight is limited or absent at all in worse cases.
Sunlight is a full spectrum light – a property mostly absent in contemporary office lighting systems
which consist usually of fluorescent light tubes or compact fluorescent light bulbs (CFLs). The spectrum of
the sunlight is a continuous one covering all the wavelengths of the visible light - from red to blue and even
beyond. The spectrum of the fluorescent light is with large gaps and few spikes that added together leave the
human eye with an illusion of white light, so-called pseudo white (Koppel, 2012b).
Sunlight is also flicker free, whereas especially the older fluorescent light bulbs used to suffer from
flicker. Some humans are found to be able to detect 50Hz flicker, but research has concluded that flicker at
frequencies 15-18Hz (Hughes, 2008) and 3Hz (Harding et al., 2005) is to be considered most dangerous for
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the risk groups (people prone to epileptic seizures). Flicker has also been associated with the eye strain
(Wilkins & Wilkinson, 1991) and migraines (Shepherd, 2000).
A cardboard model was built to represent a typical atrium type building. The foundation of a model
building was based on a square with an area of 0.624 m, whereas the atrium area inside the building (also a
square) covered the area of a 0.078 m. The model had four floors. The outside walls of the model building
were closed, so not to allow any light to enter the imaginary office area. Only light entering the atrium
opening could enter the imaginary workroom. There was no wall (nor the windows) on the side of the
workroom facing the atrium – so that all the available light from the atrium could enter the workroom and
therefore the maximum improvement effect could be measured. In real life scenarios this may resemble allglass walls.
On each of the area of interest, grid measurement was performed to draw a light distribution map.
Measurements were taken in Lux (Lumens per square meter) with detector placed on the horizontal plane.
The photometer used was Macam L203, which has high sensitivity scale for low light levels. The Macam
photopic filter CIE2 is colour balanced which gives a response that closely matches the CIE Vλ human eye
response. The range of the detector was 0 to 199 999 Lux.
A reflector with an area of 0.185m² (0.43x0.43m) was placed on top of the atrium opening which
azimuth was then directed towards the Sun and elevation angle set accordingly to gain maximum sunlight
intensity into the atrium. The reflector on top of the atrium directed the light into the atrium shaft. Next, the
walls of the atrium, covered with a reflective material, became also lit and reflected the sunlight into the
workrooms facing the atrium.
Results and Conclusions
To increase the natural daylight levels, high-tech and expensive technologies are not necessary. The
model proposed by this study and the measurements conducted by the authors have shown that natural
daylight levels can be drastically increased by using two or more reflectors. One could argue, that
constructing a reflector in real life size, is a large scale enterprise itself. In authors opinion, in order to gain
the desired efficiency there is no other better alternative than using one sizeable reflector or a number of
smaller reflectors that sum up the same area. Gained illuminance levels in offices below are directly
dependent on the reflector area on the roof.
This study had its focus on office workplaces deficient of natural daylight, identified as workrooms
facing the atrium. Although workrooms that face the south may seem to have plenty of daylight, problems
may also be encountered there. Direct sunlight is the cause for the glare. These conditions need also
attention, since glare - a form of visual discomfort - can also impair human workability. Several solutions to
control the glare can be found from the literature, where often vertical shading elements are used.
References
Alrubaih, M.S., Zain, M.F.M., Alghoul, M.A., Ibrahim, N.L.N., Shameri, M.A. & Elayeb, O. (2013). Research and
development on aspects of daylighting fundamentals. Renewable and Sustainable Energy Reviews, 21, 494–505.
Koppel, T. (2012a). Assessment of the quality of lighting systems based on the star diagram model; Proceedings of the
ITELMS'2012: 7th International Conference Intelligent Technologies in Logistics and Mechatronics Systems.
Kaunas Technical University, by the journal "Mechanika": Kaunas Technology University.
Koppel, T. (2012b). Dynamic lighting system for workplaces at northern latitudes. Scientific Journal of Riga Technical
University, 5. series., Tehnogēnās vides drošība, 3, 39-44.
Hughes, J. R. (2008). The photoparoxysmal response: the probable cause of attacks during video games. Clin EEG
Neuroscience, 39, 1-7.
Harding, G., Wilkins, A.J., Erba, G, Barkley, G.L. & Fisher, R.S. (2005). Epilepsy Foundation of America Working
Group, Photic- and pattern-induced seizures: expert consensus of the Epilepsy Foundation of America working
Group, Epilepsia, 46, 1423-1425.
Wilkins, A. J. & Wilkinson, P. (1991). A tint to reduce eye-strain from fluorescent lighting? Preliminary observations.
Ophthalmic Physiol Opt, 11, 172-175.
Shepherd, A.J. (2000). Visual contrast processing in migraine. Cephalalgia, 20, 865-880.
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The New Occupational Electromagnetic Fields' Directive 2013/35/EU Compared
to the Existing Estonian National Legislation
Tarmo Koppel1, Inese Vilcane2
1
2
Riga Technical University, Latvia, inese.vilcane@rtu.lv
Abstract
The electromagnetic fields are classified as “emerging health risks”. The emergence of new
radiofrequency technologies has introduced some of the labor force to new types of electromagnetic
fields’ exposure. In 2013 a new European directive (2013/35/EU) was released to provide European
Union workers with a comprehensive set of protective principles against the electromagnetic fields. The
European Union member states should harmonize their national legislation to the new directive by 2016.
The current paper analyses the differences in the Estonian existing occupational electromagnetic fields
reference values compared to the ones’ in the new directive. The two sets of reference values differ from
each other in most of the given frequency spans. In some frequencies the national regulation is more
restrictive, whereas in other frequencies the directive is more restrictive - up to ten times difference.
Based on the principles laid down in the directive, the new national regulation should follow the reference
values from each frequency span whichever is more favorable towards the workers.
Keywords: electromagnetic fields, occupational exposure, workplaces, legislation, European Union,
directive.
Introduction
The electromagnetic fields are a relevant working environment risk factor also emphasized by the
European Union by classifying it amongst “emerging health risks” (EC 2008).
On the 26.06.2013 the European Parliament issued a new directive 2013/35/EU called “The minimum
health and safety requirements regarding the exposure of workers to the risks arising from physical agents
(electromagnetic fields) “(EP&EC 2013). The directive provides several sets of requirements to limit
exposure to the electromagnetic fields in the working environment. A three year adaption period was given
to allow the European Union (EU) member states to harmonize their national legislation to match the
requirements of the new directive. The directive presents minimum requirements and safety limits, meaning
that member states can retain or establish stricter rules for occupational electromagnetic fields (EMFs)
exposure, if so desired. However, the national law cannot allow any less protection than set by the directive.
The occupational EMFs directive 2013/35/EU states, that the implementation of the directive could
not serve to justify any regression in relation to the situation already prevailing in member states (EP&EC
2013). Therefore, if already stricter rules are in place, than those set by the directive, the member state
should retain the requirements that are more favorable to the worker.
The electromagnetic field consists of electric and magnetic field. The EMF is produced by all
electrical devices which is different in strength at different frequencies. Therefore two sets of safety limits
have been produced – to include both electric and magnetic fields. For microwaves, there are presented a
third set of safety limits, since the health effects are different for that region. Health effects are conditioned
on both the frequency and the amplitude of the field, this is why safety limits are also frequency dependent.
This paper provides comparative assessment of the occupational electromagnetic fields directive
(EP&EC 2013) and the existing Estonian national regulation on occupational exposure to the
electromagnetic fields (Government of the Republic of Estonia 2002). The assessment is done by comparing
values of the safety limits.
Findings/Results
Given the long process of the directive’s development, the directive could be viewed as a compromise
amongst many stakeholders, resulting in an 18-page document. The Estonian national occupational
regulation from the year 2002 in turn is a shorter 7-page document.
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In this paper we looked at the reference values, since these are the main safety limits that are going to
be applied in the risk management. Table 1 provides an overview of the differences in the compared sets of
reference values.
Table 1. Reference values comparison of 2002 Estonian national occupational EMFs regulation (EE) in
relation to the directive 2013/35/EU’s reference values
Electric field strength
100kHz-1MHz the same
1.34-10MHz EE 35% higher
22MHz-6GHz EE 55% lower1
10-300GHz EE 39% higher1
1
Field type
Magnetic flux density
100kHz-30MHz EE 10x higher1
100MHz-6GHz EE 54% lower1
10-300GHz EE 44% higher1
Power density
2-6GHz EE 73% lower1
10-300GHz EE 2x higher1
the largest difference in the selected frequency span is presented
In addition to reference values being stricter in certain frequency bands, the new directive also
introduces/specifies the obligations of the employer. Table 2 provides an overview of the obligations of the
employer in both regulative acts.
Table 2. The main obligations of the employer: Estonian 2002 national regulation compared to the directive
2013/35/EU
Estonian 2002 national regulation
§18.sect.1. Ensure (map) the levels of electromagnetic
fields in the protected zone and areas with increased
health hazards.
No obligation to make the assessment public.
§18.sect.3. Request information from the supplier of the
devices of radiofrequency about the generated
radiation field and the possibilities of reducing its effect.
§18.sect.3. Organize measurement of the parameters
of the electromagnetic field of the device if information
from the supplier is not available or it is not reliable.
§18.sect.4. Inspect the level of the radiation field of
radiofrequency devices at least once in 3 years. Carry
out additional measurement of the parameters of the
electromagnetic field if the construction,
screening or manner of use has been changed.
§18.sect.5. Take measures to reduce the electromagnetic
radiation of the workstation to the lowest possible
level.
§18.sect.6. Indicate the areas of hazardous
radiofrequency radiation fields with relevant safety
signs.
§18.sect.7. Provide workers with relevant personal
protective equipment if it is not possible to reduce the
level of the radiation field to the maximum permitted
level with collective technical protective
equipment.
§18.sect.8. Assess and inspect the efficiency of the
measures taken to reduce the exposure of the workers.
No mention of risk groups.
directive 2013/35/EU
Art.4.p.1. Assess all risks for workers arising from
electromagnetic fields at the workplace and, if
necessary, measure or calculate the levels of
electromagnetic fields to which workers are exposed.
Art.4.p.1. The assessment must be made public if
requested and set conditions are met.
Art.4.p.2. In the assessment take into account the
directive’s guide, and other relevant standards or
guidelines, including exposure databases. Take into
account the emission levels and other data from the
equipment manufacturer or distributor.
Art.4.p.3.If compliance with the exposure limit values
cannot be reliably determined on the basis of readily
accessible information, the assessment of the exposure
shall be carried out on the basis of measurements or
calculations.
Art.4.p.4. The assessment, measurement and
calculations shall be carried out at suitable intervals.
Art.5.p.1.The employer shall take the necessary actions
to ensure that risks arising from electromagnetic fields at
the workplace are eliminated or reduced to a minimum.
Art.5.p.5.Workplaces where workers are likely to be
exposed to electromagnetic fields that exceed the action
levels shall be indicated by appropriate signs. The areas
in question shall be identified and access to them
limited, as appropriate.
Art.5.p.6. Where action levels are exceeded, specific
protection measures shall be taken, such as the training
of workers and the use of technical means and personal
protection.
Art.5.p.1. The reduction of risks arising from exposure
to electromagnetic fields shall be based on the general
principles of prevention set out in Article 6(2) of
Directive 89/391/EEC.
Art.4.p.5. (d) In doing risk assessment the employer
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No mention of indirect effects.
No regulation if exposure above the limits occurs.
No mentioning of transient symptoms.
ISBN: 978-9934-8275-3-2
shall give particular attention
to any effects on the health and safety of workers at
particular risk, in particular workers who wear active or
passive implanted medical devices, such as cardiac
pacemakers, workers with medical devices worn on the
body.
Art.5.p.4. The employer will assess the workers at
particular risk and, where applicable, by individual risks
assessments.
Art.4.p.5. (e) In doing risk assessment the employer
shall give particular attention to any indirect effects.
Art.5.p.8. If the exposure limit values are exceeded, the
employer shall take immediate action to reduce exposure
below these exposure limit values. The employer shall
identify and record the reasons why the limits have been
exceeded, and shall amend the protection and prevention
measures to prevent them being exceeded again.
Art.5.p.9. When Action levels or sensory effects
exposure limit values are exceeded, and the worker
reports transient symptoms, the employer shall, if
necessary, update the risk assessment and the prevention
measures.
Conclusions
Two sets of reference values (national and the Directive) showed significant dissimilarities – up to ten
times difference in some frequencies. The national regulation was more restrictive in some frequency spans
whereas in other frequencies the directive was more restrictive. However, the 2002 Estonian national
regulation covered only frequencies starting from 3 kHz, leaving the extremely low frequencies unregulated.
Based on the principles laid down in the directive the new national legislation should combine the two
sets of reference values in a way that the future regulation includes whichever frequency span limit is more
favorable towards the workers.
The directive is much more detailed in providing instructions how to manage safety and to check if an
employer has fulfilled their obligations. The Estonian national legislation remains general in its wording,
leaving much room for interpretation of the requirements. The directive also provides procedures for how to
determine the compliance with the appropriate set of safety limits and for cases where limits have been
indeed exceeded.
The Estonian 2002 regulation provides better protection of workers by §18.sect.5 requiring employers
to reduce the electromagnetic fields to the lowest level possible. The directive (Art.5.p.1.) however requires
minimizing the health risks from the electromagnetic fields.
References
EC-European Commission (2008). Brussels 5.08.2008, 2008/721/EC, Decision on setting up an advisory structure of
Scientific Committees and experts in the field of consumer safety, public health and the environment and
repealing Decision 2004/210/EC, Official Journal of the European Union 10.9.2008 L241/21
EP&EC-The European Parliament and the Council (2013). Directive 2013/35/EC of the European Parliament and of the
Council of 26 June 2013 on the minimum health and safety requirements regarding the exposure of workers to
the risks arising from physical agents (electromagnetic fields) (20th individual Directive within the meaning of
Article 16(1) of Directive 89/391/EEC). Official Journal of the European Union. 26.06.13.
Government of the Republic of Estonia (2002). Limit values for Physical Hazards in Working Environment and
Procedure for Measuring of Parameters of Hazards, Regulation no. 54 of 25 January 2002, Riigi Teataja I 2002,
15, 83.
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Ugunsdrošības stiprināšanas preventīvo pasākumu īstenošana
Jeļena Malahova1, Jānis Ķiršs 2, Jānis Ieviņš 3, Valentīna Urbāne4
Rīgas Tehniskā universitāte, Latvija, jelena.rtu@inbox.lv
Valsts ugunsdzēsības un glābšanas dienests, Latvija, janis.kirss@inbox.lv
3
Rīgas Tehniskā universitāte, Latvija, Janis.Ievins@rtu.lv
4
Rīgas Tehniskā universitāte, Latvija, Valentina.Urbane@rtu.lv
1
2
Kopsavilkums
Rakstā ir pētīta un analizēta ugunsgrēku un ugunsgrēkos bojāgājušo statistika no 2009. gada līdz 2014.
gadam, analizēti iespējamie ugunsgrēku iemesli. Izmantojot laika rindu metodi prognozēts ugunsgrēku
skaits un ugunsgrēkos bojāgājušo skaits laika periodam no 2014. gada janvāra līdz 2016. gada
decembrim, pētīti ugunsgrēku bīstamie faktori, kuru iedarbības rezultātā ugunsgrēkos iet bojā cilvēki,
veikts cilvēku evakuācijas laika aprēķins ugunsgrēku gadījumiem, pētīti apdrošināšanas sabiedrību
mājokļu apdrošināšanas piedāvājumi, analizēti mājokļu apdrošināšanas kritēriji, to iespējamā ietekme uz
ugunsdrošību. Pētījumā izstrādāt priekšlikumi ugunsgrēku skaita un bojā gājušo skaita samazināšanai, un
īstenojamie preventīvos pasākumi.
Atslēgvārdi: ugunsgrēki, bīstamības faktori, cietušie, apdrošināšana, preventīvie pasākumi.
Ievads
Katra cilvēka pašsaprotams pienākums ir rūpēties par savu, savu tuvinieku un līdzcilvēku drošību, tai
skaitā par ugunsdrošību darba vietā, sabiedriskās vietās un protams savā mājoklī. Preventīvie pasākumi
ugunsdrošībā ir vērsti uz Ugunsdrošības noteikumu pārkāpumu izdarīšanas priekšnoteikumu ierobežošanu,
kas paredz personas apzinātu un labprātīgu izvairīšanos no nevēlamiem ar ugunsnelaimi saistītiem
notikumiem. Preventīvo pasākumu mērķis ir veicināt personu izpratni par ugunsdrošības noteikumos
noteiktajām prasībām un tie ir vērsti uz noteikto prasību izpildi.
Augsts risks var izraisīt tehnogēnas katastrofas, kuru rezultātā var izcelties lieli ugunsgrēki, kuru
postošā ietekme ir neprognozējama, tiek bojātas milzīgas materiālās vērtības un pats galvenais – iet bojā
cilvēki. Jebkuram riskam ir objektīvi un subjektīvi cēloņi, kuriem var būt dabiska izcelsme (piemēram,
zibens) vai tehnogēna izcelsme, kas saistīta ar darba vides tehnoloģiskajiem procesiem (piemēram, bīstamo
vielu uzglabāšanu vai transportēšanu). Dažādu avāriju riskiem ir raksturīgs lokāls briesmu avots (piemēram,
toksisko vielu noplūde vai ugunsgrēks). Analizējot notikušo ugunsgrēku iespējamos cēloņus, var secināt, ka
izpētes perioda vidū samazinājies gadījumu skaits, kad iespējamais ugunsgrēku cēlonis ir neuzmanīga rīcība
ar uguni un pieaudzis gadījumu skaits, kad iespējamais ugunsgrēku cēlonis ir apkures ierīču lietošanas
noteikumu pārkāpumi. VUGD statistika par ugunsgrēku iespējamajiem izcelšanās iemesliem izpētes periodā
ir redzama 1.tabulā:
Tabula 1. Iespējamie ugunsgrēku izcelšanās iemesli 2010. – 2014
Iespējamais ugunsgrēku iemesls
2010.
2011.
2012.
2013.
2014.
Neuzmanīga rīcība ar uguni
6232
5166
5771
5067
6037
Bojātas elektroierīces/elektroiekārtas
1017
1055
1019
1030
1123
Apkure
768
906
909
1099
949
Tīša dedzināšana
679
699
798
836
1227
Bērnu rotaļas ar uguni
97
82
129
107
87
Citi iemesli
204
179
186
397
398
Kopā par gadu
8997
8087
8812
8536
9821
Ņemot vērā, ka vismaz trešdaļa ugunsgrēkos bojā gājušo Latvijā dzīvību zaudē ugunsgrēkos, ko
visdrīzāk izraisījis nenodzēsts izsmēķis, paredzams, ka Latvijā varētu samazināties ugunsgrēku skaits, kurus
izraisa gruzdošas cigaretes. ASV jau vairākos štatos prasības par pašdziestošajām cigaretēm ir spēkā no
2012.gada, Kanādā no 2005.gada, Austrālijā un Somijā no 2010. gada. Izpētes periodā visvairāk ugunsgrēku
dzīvojamajā sektorā ir notikuši aukstajā gadalaikā un apkures sezonas sākumā, kad iedzīvotāji lieto dažādus
elektriskos sildītājus, tai skaitā pašdarinātus, dažkārt silda dzīvokli, izmantojot gāzes plīti vai cepeškrāsni,
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savukārt privātmāju īpašnieki kurina krāsnis, plītis, kamīnus. Lai mazinātu ugunsgrēka izcelšanās draudus un
sargātu sevi, autori ir definējis četrus galvenos ugunsdrošības priekšnosacījumus: jānopļauj zāle ap māju,
jāiztīra skurstenis, jāierīko dūmu detektors, jāpārbauda apkures ierīču stāvoklis.
Ugunsgrēka skaita un bojāgājušo skaita prognozēšana
Ugunsgrēku skaita un bojāgājušo skaita prognozēšanai tiks izmantoti VUGD statistikas dati. VUGD
ugunsgrēku un tajos bojāgājušo cilvēku statistikas dati apkopoti pa. Ir pieejamas divas dinamikas rindas ar
dinamikas rindas līmeņiem un laika norādēm, kas dot iespēju analizēt abu parādību attīstību laikā. Ja,
analizējot laika rindu datus, ir atklātas šo datu sistemātiskas izmaiņas – palielināšanās vai samazināšanās
laikā – secina, ka dinamikas rindai pastāv galvenā tendence jeb trends. Bez sistemātiskajām izmaiņām ir
vērojamas arī tā saucamās sezonālās svārstības – regulāras svārstības ap kādu vidējo lielumu vai trendu viena
kalendārā gada robežās. Sezonālās svārstības var novērot, ja statistikas dati ir apkopoti pa mēnešiem. Ja tiek
apkopota informācija par ilgāku laika periodu, tad papildus sezonalitātei dažreiz var novērot arī cikliskumu,
kad dati periodiski mainās ilgākā laika periodā. Dinamikas rindas datiem ir gadījuma raksturs, kas nosaka to,
ka bez minētajām sistemātiskajām izmaiņām ir vērojamas arī nesistemātiskas jeb gadījuma datu izmaiņas.
Apdrošināšanas sabiedrību ietekme uz ugunsdrošību
Apdrošināšanas sabiedrības privātpersonām piedāvā dažādus pakalpojumus, tai skaitā īpašuma
apdrošināšanu un civiltiesiskās atbildības apdrošināšanu. Nekustamā īpašuma apdrošināšana pret
zaudējumiem un bojājumiem ir kļuvusi par vienu no populārākajiem apdrošināšanas veidiem, tai skaitā pret
ugunsgrēka radītajiem zaudējumiem un bojājumiem. Pieprasījums veido piedāvājumu un visas populārākās
apdrošināšanas kompānijas piedāvā mājokļa apdrošināšanu. Apdrošināšanas sabiedrības ir ieinteresētas, lai
tām retāk vajadzētu izmaksāt apdrošināšanas atlīdzību un lai būtu pēc iespējas vairāk noslēgto
apdrošināšanas līgumu.
Atsauces
Chen, H., Pittman, W. C., Hatanaka, L. C., Harding, B. Z., Boussouf, A., Moore, D. A., Mannan, M. S. (2015).
Integration of Process Safety Engineering and Fire Protection Engineering for Better Safety Performance.
Journal of Loss Prevention in the Process Industries. http://doi.org/10.1016/j.jlp.2015.06.01
Ramachandran,
G.
(2002).
The
Economics
of
Fire
Protection.
Retrieved
from
https://books.google.com/books?hl=lv&lr=&id=52CQAgAAQBAJ&pgis=1
Ugunsdrošības un ugunsdzēsības likums, http://www.likumi.lv/
Valsts ugunsdzēsības un glābšanas dienests, (2013)Valsts ugunsdzēsības un glābšanas dienesta komunikācijas stratēģija
2013. – 2015. gadam
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Voluntary Safety Management System in Manufacturing Industry – to what
extent does OHSAS 18001 Certification help?
Õnnela Paas1, Karin Reinhold2, Piia Tint2
1
2
Tallinn University of Technology, Estonia, onnela.paas@gmail.com
Tallinn University of Technology, Estonia, karin.reinhold@ttu.ee, piia.tint@ttu.ee
Abstract
Occupational risk prevention can be managed in several ways. Voluntary safety management standard
OHSAS 18001 is a tool which is considered to give contribution in effective risk management in
manufacturing industry. The current paper examines the benefits of OHSAS 18001 based on the statistical
analysis. MISHA method is used for safety audit in 16 Estonian enterprises. The results provide the
objectives why companies implement or wish to implement OHSAS 18001, bring out differences in
safety activities for three types of companies and determine correlations between different safety activity
areas. This information is valuable for enterprises who wish to improve their safety activities via
voluntary safety management system.
Keywords: health and safety audit, occupational health and safety management system, OHSAS 18001
certification, the MISHA method.
Introduction
The aim of the safety management systems is to manage the planning and implementation of a
company’s safety policy. A safety management system usually includes the setting and prioritizing of safety
goals and development of safety programmes. Different management tools can be used to fulfil legislation
needs and company’s demands in order to mitigate workplace risks effectively. The literature on OHSMSs
(Occupational Health and Safety Management System) often distinguishes mandatory OHSMSs from
voluntary systems (Frick et al., 2000; Gallagher et al., 2012; Robson et al., 2007).
Mandatory OHSMS emerges from legislative requirements and sets core principles for the
management of OHS (Occupational Health and Safety) to be implemented by employers. The most wellknown European mandatory OHSMS is the Framework Directive 89/391/EEC which defines employers’
responsibilities in the management of OHS and requires insurance of safety and health of workers in every
aspect related to their work. This directive sets general obligations: to conduct risk assessment at workplaces,
to implement safety measures and to train and inform employees in OHS hazards.
Voluntary OHSMSs are not state-regulated. These systems were first encouraged by commercial
organisations, corporations and associations (e.g. industry associations). Voluntary OHSMSs tend to be more
complex than regulatory systems, and more formalised in terms of specifications. According to Frick and
Wren (2000), the detailed specification of these systems helps to ensure the good integration of OHS policy
into the management processes of enterprises. Voluntary OHSMSs are generally in the form of standards or
guidelines, providing requirements for certification or giving simple guidance on good management practice
for OHS.
On the basis of critical overview of the existing auditing methods, MISHA method (Method for
Industrial Safety and Health Activity Assessment) as the most innovative was chosen for the current study.
Technical Research Centre of Finland (VTT) developed this audit tool in 2000 (Kuusisto, 2000). MISHA
method is primarily designed to be used in middle and large-sized industrial companies in manufacturing and
process industry. The MISHA method considers the following area of industrial activities: A. organization
and administration (safety policy and safety activities in practice, personnel management); B. participation,
communication, and training; C. work environment (physical work environment, psychological working
conditions, hazard analysis procedures); D. follow-up (occupational accidents and illnesses, work ability of
the employees, psychological work ability). Benefits of using the MISHA method include the relatively
small amount of resources and time needed and inclusion of occupational health aspects relating to ability to
work. The audit process with MISHA should have a leader who can be either internal or external to the
organisation subject to audit. Auditors should have prior experience in health and safety activities and
carefully examine the application of the method prior to audit (Kuusisto).
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Results and Conclusions
The globalization and constant competition in world-wide market has encouraged companies to
implement various standards to demonstrate engagement for quality, environment and OHS. The OHSAS
18001 standard (2007) has gained the most acceptance managing OHS in manufacturing industry. In our
study the investigated OHSAS companies perceived benefits from OHSAS 18001 certification as follows:
(1) improved documentation management, (2) improved company’s image and (3) better conformity of legal
obligations. The same results were obtained by Fernandez-Muniz et al (2012) in Spanish owned SME’s: that
OHSAS 18001 helps companies to comply with their legal obligations, improve their organization and
documentation system as well as enhance their corporate image.
The current study supports different positive hypotheses about OHSAS 18001 benefits: it favors
accidents, illnesses and near misses registration; it supports regular monitoring of social work environment;
contributes to more effective safety training etc. However, two of the postulated hypotheses were not
confirmed: no difference in psychosocial climate between OHSAS and NOHSASL companies and also
higher appreciation on physical workability was not observed. Hohnen and Hasle (2011) noticed the same
shortcomings in their study, especially lack of concern with psychosocial work environment in an OHSAS
company.
In our study, looking at the results of audits, we can conclude that in OHSAS companies OHS
management functioned both in paper and in practice. However, in one or two cases there was a doubt of
window dressing and maintaining the system without practical value. Similar problem was encountered in a
Danish study (Granerud & Rocha, 2011). Our study also explored the differences between company types:
OHSAS, NOHSASL and NOHSASC. The results showed that companies which belong to a larger
corporation were able to operate as efficiently as OHSAS companies. Since their OHS management system
is strongly supported by corporate policy, standards, guidelines etc.
Study conducted in Finland (Koivupalo et al., 2015) to examine OHSMS in a global steel company
revealed that local OHS practices and tools varied significantly between sites and there was not any common
practice or tool in use. In addition there was variation on how deeply the corporate OHS standards were
adopted within subunits: some of them were exceeding the demands but some were below the standards.
Corporate OHS management was based on OHS standards, vision and principles plan and targets.
Management support of OHS effort was seen as the most important asset.
References
Fernández-Muniz, B., Montes-Peon, J. M. & Vazques-Ordas, C. J. (2012). Safety climate in OHSAS 18001-certified
organisations: Antecedents and consequences of safety behaviour. Accident Analysis and Prevention, 45, 745758.
Frick, K., Jensen, P.L., Quinlan, M. & Wilthagen, T. (2000). Systematic occupational safety and health management: an
introduction to a new strategy for occupational safety, health and well-being. In: Frick, K., Jensen, P.L., Quinlan,
M., Wilthagen, T. (eds), Systematic occupational safety and health management: perspectives on an
international management. Emerald Group Publishing Limited, Bingley.
Frick, K. & Wren, J. (2000). Reviewing occupational health and safety management: multiple roots, diverse
perspectives and ambiguous outcomes. In: Frick, K., Jensen, P.L., Quinlan, M. & Wilthagen, T (eds). Systematic
occupational safety and health management: perspectives on an international management. Emerald Group
Publishing Limited, Bingley.
Gallagher, C. & Underhill, E. (2012). Managing work health and safety: recent developments and future directions”.
Asia Pacific J. Human Resource, 50, 227-244.
Granerud, L. & Rocha, R.S. (2011). Organizational learning and continuous improvement of health and safety in
certified manufacturers. Safety Science, 49, 1030-1039.
Hohnen, P. & Hasle, P. (2011). Making work environment auditable – A ‘critical case’ study of certified SMSs in
Denmark. Safety Science, 49, 1022-1029.
Koivupalo, M., Sulasalmi, M., Rodrigo, P. & Väyrynen, S. (2015). Health and safety management in a changing
organisation: Case study global steel company. Safety Science, 74, 128–139.
Kuusisto, A. (2000). Safety management systems: Audit tools and reliability of auditing. [dissertation]. Tampere
(Finland): Tampere University of Technology.
OHSAS Project Group. (2007). OHSAS 18001:2007. SMSs – requirements.
Robson, L.S., Clarke, J., Cullens, K., Bielecky, A., Severin, C., Bigelow, P., Irvin, E., Culver, A. & Mahood, Q. (2007).
The effectiveness of occupational health and safety management systems: a systematic review. Safety Science,
45, 329-353.
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Autokāpņu un autopacēlāju izmantošana Valsts ugunsdzēsības un glābšanas
dienesta noteikto uzdevumu izpildē, problēmas un risinājumi
A. Politika1, J. Malahova 2, I.Vilcāne 3, V.Jemeļjanovs4
1
Valsts ugunsdzēsības un glābšanas dienests, Latvija, aleksandrs.politika@vugd.gov.lv
2
Rīgas Tehniskā universitāte, Latvija, jelena.rtu@inbox.lv
3
Rīgas Tehniskā universitāte, Latvija, Inese.Vilcane@rtu.lv
4
Rīgas Tehniskā universitāte, Latvija, Vladimirs.Jemeljanovs@rtu.lv
Kopsavilkums
Rakstā ir veikts pētījums par Valsts Ugunsdzēsības un glābšanu dienesta (turpmāk VUGD)
tehniskajiem resursiem glābšanas darbu nodrošināšanai augstumā, tā tehniskajām iespējām un problēmām
veikt noteiktus uzdevumus. Lielākā daļa VUGD ekspluatācijā esošās ugunsdzēsības autokāpnes un
autopacēlāji ir novecojuši gan fiziski, gan morāli, kā arī mainoties pilsētas infrastruktūras specifikai, ir
radušās dažādas problēmas glābšanas darbu nodrošināšanai, tāpēc nepieciešams atjaunot VUGD
autoparkus ar mūsdienīgu un dzēšanas un glābšanas darbos efektīvāku tehniku. Pētījuma uzdevums ir
aplūkot VUGD autopacēlāju un autokāpņu dažādību, atspoguļot VUGD autopacēlāju un autokāpņu
ekspluatācijas problēmas un piedāvāt VUGD autopacēlāju un autokāpņu ekspluatācijas un citu esošo
problēmu iespējamos risinājumus.
Atslēgvārdi: ugunsgrēki, ugunsdzēsības autokāpnes un autopacēlāji, VUGD, glābšanas darbi
augstumā.
Ievads
Viena nо Valsts ugunsdzēsības un glābšanas dienesta funkcijām ir ugunsgrēku dzēšanas un glābšanas
darbu veikšana, kas tieši saistīta ar darbu augstumā. Tāрēc Latvijas орeratīvajiem dienestiem nepārtraukti ir
jābūt gataviem sniegt рalīdzību cietušajiem, tā īstenošanai ir nepieciešams atbilstošs tehniskais
nodrošinājums, īpaši darbiem augstumā.
Daudzus gadus Latvijas ugunsdzēsības dienests bija sрiests strādāt tikai ar Рadоmju Savienībā ražоtо
tehniku, neskaitоt dažus izņēmumus. Autоkāрnes un autорacēlāji tika ražоti uz ZIL, KAMAZ šasiju bāzēm.
Tās tika рrоjektētas 20. gadsimta vidū, šobrīd tо tehniskie resursi ir izsmelti un рielietоšanas iesрējas ir
nоvecоjušas, neрieciešams tо atjaunоt, lai VUGD glābēji var ātri reaģēt un veikt nоrmatīvajоs aktоs nоteiktо
funkciju izрildi.
Рārejоt nо Рadоmju Savienības ugunsdzēsības sistēmas uz brīvvalsts iekārtu, Latvijas ugunsdzēsības
dienestam 90-tajоs gadоs, atverоties рasaules tirgum, tai skaitā ugunsdzēsības jоmā, рarādījās liela
ugunsdzēsības tehnikas izvēle ar dažādām taktiski tehniskām iesрējām, kuras ir iesрējams aрvienоt vienā
tehnikas vienībā, ņemоt vērā mērķus un uzdevumus, kurus neрieciešams veikt kоnkrētajā struktūrvienībā.
Vecs ugunsdzēsības transроrts, kas рalicis nо РSRS рēc Latvijas neatkarības atjaunоšanās, nevar
sacensties ar citās valstīs ražоtā aрrīkоjuma kvalitāti un iespējām. Tā iegādei ir neрieciešami ievērоjami lieli
finansiālie līdzekļi, kādus valsts nerod iespēju novirzīt VUGD darbības nodrošināšanai ar mоdernu
aрrīkоjumu un tehniku. Tauрības nоlūkоs arī рēc neatkarības atgūšanas glābšanas tehnika tika iepirkta no
Krievijas рiegādātājiem. Tikai рateicоties VUGD starрtautiskajiem sakariem un sadarbībai, humānās
рalīdzības veidā, tehnisko bāzi рamazām рaрildināja arī ar citu valstu tehniku un aprīkojumu, kas nav
pietiekamā daudzumā.
Kā papildus problēmu var minēt, ka daudzās VUGD struktūrvienībās ir mazs vai рat neрietiekams
amatрersоnu skaits dežūrmaiņās, kā arī ilgu laiku lielas grūtības struktūrvienībām sagādā рilna štata
nоkоmрlektēšana ar ugunsdzēsējiem-glābējiem autоvadītājiem, līdz ar kо vienmēr kādā rajоnā ir situācija,
kad tehnika ir izslēgta nо kaujas aрrēķina autоvadītāju vai ugunsdzēsēju trūkuma dēļ. Šī iemesla dēļ tiek
aрdraudētas reaģēšanas iesрējas kоnkrētajā рārziņas rajоnā, jо рašlaik, atsaucоties uz MK noteikumiem
Nr.458, tehnikas vienību skaits ir neрietiekоšs, kas jāņem vērā pie jaunas tehnikas iegādes.
Ekspluatācijā esošo autokāpņu un auotpacēlāju apskats
Analizējоt Ministru kabineta 2011. gada 21. jūnija nоteikumus Nr. 458 un veicot VUGD tehnisko
resursu bāzi, tika kоnstatēts fakts, ka Valsts ugunsdzēsības un glābšanas dienestā esоšо autоkāрņu un
autорacēlāju skaits neatbilst nоteiktajam. Katrā daļā jābūt vienam autорacēlājam vai autоkāрnēm. Рašlaik
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valstī ir 44 daļas, tātad ir neрieciešamas vismaz 44 autokāpnes/auotpacēlāji, kā arī Ugunsdrošības un civilās
aizsardzības koledžā un Rīgas reģiоna рārvaldē kорā neрieciešamas 46 autokāpnes/auotpacēlāji.
Рašlaik VUGD ir 39 autоkāрnes un autорacēlāji, nо šīm tehnikas vienībām 20 autоkāрnes ir ražotas
Krievijā uz ZIL bāzes, skatīt 1. attēlu.
1. attēls. Krievijā ražоtu autokāpņu sadalījums рēc izlaiduma gadiem
Izgatavоtāja rūрnīcas nоteiktais autоkāрņu AK – 30 (131) eksрluatācijas termiņš ir 10 gadi. Krievijā
ražоtās, autоkāрnes ir fiziski un mоrāli nоvecоjušas un tehniski taktiskie rādītāji neatbilst mūsdienu рrasībām
un tehnоlоģijām gan nо drоšības viedоkļa, gan nо darbu veikšanas iesрējām. Рašlaik nav tādas garantijas, ka
jebkura nо šīm autоkāрnēm izturēs ikgadējо slоdzes рārbaudi, līdz ar kо tiek nорietni aрdraudēta орeratīvā
dienesta situācija valstī un VUGD reaģēšanas iesрējas uz dažāda veida glābšanas darbiem. Vecākās
autоkāрnes tiek lietоtas jau 31 gadu, kas ir trīs reizes ilgāks termiņš, nekā tо nоteicis ražоtājs.
Priekšlikumi
VUGD nepietiekamā cilvēkresursu рrоblēmas risināšanai, kā arī ugunsgrēku dzēšanas un glābšanas
darbu augstumā nodrošināšanai ir nepieciešama tehnika, kas ir рielāgоta esošajai situācijai. Šādas prasības
var nodrošināt tehnika, kura sevī ietver vairāk nekā vienu vai divas funkcijas, рiedāvātais risinājums ir
„Multistar” tiрa autоmоbilis, kurš sevī ietver glābšanas darbu veikšanas iesрējas augstumā līdz ~31m,
рazeminājumоs līdz ~12, рatstāvīgi veikt dzēšanas darbus (ir ~2000 litri ugunsdzēšanai рaredzētо vielu) un ir
aрrīkоjums, lai veiktu citus glābšanas darbus (CSN, ķīmija utt.).
Atsauces
Kulakovskij, B. (2002). Požarnye avarijno – spasatelʹnye i specialʹnye mašiny. – Tehnoprintb, – 382s.
Ugunsdrošības un ugunsdzēsības likums, http://www.likumi.lv/
Ministru kabineta 21.06.2011. nоteikumi Nr. 458 "Nоteikumi рar Valsts ugunsdzēsības un glābšanas dienestam
ugunsgrēku dzēšanai un glābšanas darbiem neрieciešamajām iekārtām, sрeciālо un tehniskо aрrīkоjumu, kā arī
tā nоrmām”, http://www.likumi.lv/
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Development of Building Construction’s Deformation Control System
Albins Skudra1, Dzintra Atstaja2, Andris Valdemars3, Valerijs Garancis4
1
Riga Technical University, Latvia, Albins.Skudra@rtu.lv
BA School of Business and Finance, Latvia, Dzintra.Atstaja@ba.lv
3
BA School of Business and Finance, Latvia, Andris.Valdemars@gmail.com
4
Riga Technical University, Latvia, Valerijs.Garancis@gmail.com
2
Abstract
In the fast-growing market economy conditions an important factor is the public building safety.
Modern city building requires searching for new architectural and constructive solutions, which becomes
visually easier, but the load-bearing elements should to take bigger loads. The trend of the use of new
materials in the industry increases the speed of resource life cycle, which can increase the handling of
techno genic environmental risks.
The problem of study is the fact that the inspection of building constructions is resource intensive
process and it requires specific knowledge and measuring equipment. Professional building monitoring
systems are specially installed measuring equipment set according to the temporary needs, which
significantly limits the inspection speed.
The objective of the paper is to develop solution of widely usable system for preventive control of
building construction deformations, which is able to detect exceeding of the set levels of limited values.
Such system can indicate some of the building’s elements which would have required an immediate
visual inspection and installation of professional monitoring equipment. The aim of implementation of
mentioned solution is to improve the safety of technogenic environment in construction field, to simplify
the management of the building and to provide a positive impact to the economic performance in the long
run.
To solve the mentioned problem in the paper the research of recent technical achievements in the field
of Electronics was carried out, theoretical solution of the problem were modelled, the experimental data
were recorded, results were summarized and technical tasks was prepared.
As conclusion the technical target have been achieved by development the prototype of combined unit
with the vibrating sensor, tilt sensor and accelerometer sensor included which is able to identify the set of
critical geometrical changes with minimum step 1.84 mm within 4.36 minutes. To fix the linear changes
of the vertical deformations, the pair of tilt sensors is able to record angular deformations placed on
opposite parts of construction.
Keywords: Technogenic Environment, Building, Electronics, Economics.
References
Barnes, J., Rizos, C., Kanli, M., Small, D., Voigt, G., Gambale, N., Jimmy Lamance, J. (2004). Structural Deformation
Monitoring Using Locata. TS4.4. Nottingham, United Kingdom: 1st FIG International Symposium on
Engineering Surveys for Construction Works and Structural Engineering. Session 4 - Structural Health
Monitoring of Bridges.
Bulavs, F., RAdins, I. (2008). Statiski noteicamu stieņu sistēmu būvmehānika (Statically detectable bars system
structure mechanics). Education book. Riga: Riga Technical University Publishing House.
Erol S., Erol B., Ayan T. (2004.) A general review of the deformation monitoring techniques and a case study:
Analysing deformations using GPS/levelling. Maslak Istanbul, Turkey: ITU, Civil Engineering Faculty, Geodesy
Division. Commission VII, WG VII/5.
Gaile, L., Pakrastins, L (2011). Daudzstāvu ēku karkasu projektēšanas pamatprincipi saskaņā ar EC3 (High-rise
building frame design guidelines in accordance with the EC3), 1-st part. Education book. Riga: Riga Technical
University.
Jakovičs A., Kļaviņš J., Čertoks S., Kuleša L., Džeriņš J., Ratnieks J. (2013). ES energoefektivitātes un optimāla telpu
mikroklimata prasībām atbilstoša kompozīta ēkas ārsienas konstruktīvā risinājuma no vietējām izejvielām
izstrāde, izmantojot multifizikālās modelēšanas metodi (EU energy efficiency and optimal indoor climate
requirements of composite exterior wall in building constructive solutions from local raw materials development
using
multiphisical
modeling
method).
Riga:
ERAF
cofinanced
research
project.
Nr.
2011/0003/2DP/2.1.1.1.0/10/APIA/VIAA/041.
Jurševics V. (2006). Rūpnieciskā elektronika (Industrial electronics). Education book. Riga: Riga Technical University
Publishing House.
LVS EN 1992-1-1+AC:2014 L 2. Eirokodekss. Betona konstrukciju projektēšana (Concrete construction design). 2014,
1-1.part: Vispārīgie noteikumi un noteikumi ēkām. National standard. https://www.lvs.lv/lv/products/35231.
LVS/STK/30 Building.
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LVS EN 1993-1-1:2005/NA:2014 3. Eirokodekss. Tērauda konstrukciju projektēšana (Steel construction design). 2005,
1-1.part: Vispārīgie noteikumi un noteikumi ēkām. National standard https://www.lvs.lv/lv/products/55737.
LVS/STK/30 Building.
LVS EN 1995-1-1:2005 /NA:2012 5. Eirokodekss: Koka konstrukciju projektēšana (Wooden construction design).
2005, 1-1.part: Vispārīgi. Vispārīgie noteikumi un noteikumi būvēm. National standard
https://www.lvs.lv/lv/products/31689. LVS/STK/30 Building.
Cabinet of Ministers regulations Nr.444 Noteikumi par Latvijas būvnormatīvu LBN 405-15 "Būvju tehniskā
apsekošana". 2015. http://likumi.lv/doc.php?id=54834.
Ziemelis I., Kakitis A., Dominieks L. (2008). Materiālu pretestība (Material resistance). Jelgava: Latvia University of
Argiculture.
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Normative Act Regulation of Training for Personnel Connected with Operation
of Dangerous Machinery and its Improvement
Eva Upeniece1, Jānis Bērziņš2
1
Learning centre „EVA-93”, Latvia, apmacibas@eva93.lv
2
Riga Technical University, Latvia, Janis.Berzins@rtu.lv
Abstract
Currently, laws and regulations neither define the training program`s content of dangerous machinery
to attending personnel, nor the form and the periodicity of proficiency examination. In the event of an
accident of dangerous machinery or the use of equipment which is not in running order or the use of such
machinery by untrained and unqualified personnel, the potential consequences are both loss of life,
considerable environmental pollution and significant property damage. This article aims to examine the
role of qualified personnel working with dangerous machinery and the implementation possibilities of
training carried out by attending personnel of dangerous machinery, as well as identify the problem issues
related to laws and regulations controlling the existing operation of dangerous machinery. This article
analyzes the basic requirements of qualification and training of the attending personnel working with
dangerous machinery, the training organization opportunities and the national supervisory policy related
to support and training in the Latvian context and analyzing the current practice existing in the United
Kingdom and the Russian Federation, which, in addition is based on detailed assessment of empirical
research reflects the advantages of various systems and shows concrete solutions for its adaptation in
Latvia, allows identifying the qualification, as well as the training program`s implementation and
development of existing problem issues both locally and at European and global level.
Keywords: dangerous machinery, personnel training, labor protection
Introduction
16 hazardous types of dangerous machinery that are subject to compulsory technical supervision are
identified in Latvia. The number of dangerous machinery registered in the Latvian Register of dangerous
Machinery is about 29 000. Recent massive amendments entered into force in 2004 related to the procedure
of training of the attending personnel working with dangerous machinery. However, eleven years is a
reasonable period of time to assess the existing training policy gaps. Also, the cases might be highlighted in
practice, which point to the need for regulation in connection with proficiency examination of the attending
personnel working with dangerous machinery: lack of professional standards of the dangerous machinery
operators, lack of methodological materials and guidelines, laws and regulations do not provide the
preventive and timely proficiency examination of the attending personnel working with dangerous
machinery, statistics is not summarized of the attending personnel working with dangerous machinery,
quality control of these training programs at the national level are not carried out. Currently, the employer
can decide whether an employee will be trained in one of the accredited training centres according to the
training programs developed by them or within the company in accordance with a training program
developed by an employer in the framework of a non-formal learning.
A number of research methods are used in the study in order to carry out the analysis of the training
program`s content of the attending personnel working with dangerous machinery and assess the compliance
of the program`s content:
1. Historical, where regulatory law changes regulating the operation of dangerous machinery over time
and understanding of them within the occupational health and safety context were examined by
applying it.
2. Analytical, which analyzed the legal framework of the training implementation of the attending
personnel working with dangerous machinery for both in Latvia and abroad by applying it.
3. Systematic, where interact between the possessors of dangerous machinery and supervising state
institutions on safe working environment for working with dangerous machinery was evaluated by
applying it.
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4.
5.
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Descriptive, where the weaknesses of the training provision for the attending personnel working with
dangerous machinery were revealed by using it.
Quantitative and qualitative research methods, where a study was conducted on the attending
personnel working with dangerous machinery (the achieved selection: 200 respondents), which, taking
into account the potential differentiation of respondents (Latvian residents, the attending personnel
working with dangerous machinery - operators and responsible professionals aged from 18 to 70
years) reflecting the level of education in connection with those training process criteria to be pointed
out by the surveyed operators of dangerous machinery and responsible experts as the most important
in learning of safe working methods by applying them.
Findings/Results
Comparing the results of the implemented monitoring and inspections carried out in 2013 and 2014,
the author concludes that number of non-compliant equipment indicators is consistently high regardless of
the type of dangerous machinery. Both administrative violation acts drawn up by the Consumer Rights
Protection Centre and jurisprudence testifies on violation of inspection authorities and rulers carrying out
their duties carelessly and formally. This situation indicates a high degree of risk, thereby creating a risk to
the life and health of personnel.
Only one professional standard is developed for the operators of dangerous machinery - factory/boiler
stokers (occupational code - 8162 03). Training of the attending personnel working with dangerous
machinery is implemented as a non-formal learning. The educational implementer of the program is
responsible for non-formal education program in the amount up to 159 academic hours, implementation of
the program and the quality of methodological materials. The training courses are from 6 to 25 h long
provided for the attending personnel working with dangerous machinery in accordance with the analyzed
training education of for the attending personnel working with dangerous machinery, duration of training
courses is not proportionate to the requirements brought forward by the professional standard to carry out the
basic tasks of professional activity in order to acquire the required knowledge.
It should be noted that Latvian legislation does not stipulate that the existence of dangerous machinery
in the company shall be taken into account during the establishment of occupational health and safety
system. If the company has no more than 10 employees, the responsibilities of a work safety specialist might
be carried out by the employer himself, unless he has acquired a basic level of the program related to work
safety and specialized knowledge. However, the learning of the mentioned program does not provide the
employer with sufficiently high level of knowledge on the dangerous machinery as the executor of the
responsibilities of the work safety specialist, as the training on issues related to the work equipment,
including dangerous machinery takes only 3 hours, which understandable is not sufficient to consider such a
specialist sufficiently competent and able to independently carry out the training of his employees, as well as
to be able to independently develop training programs to train his staff in accordance with guidelines defined
by the National Centre for Education.
The attending personnel working with dangerous machinery agree with the signs of aging of labour
force characteristic for the entire European Union, as indicated by the relatively low level of proportion of
the young attending personnel (18-24 years) working with dangerous machinery (7% of the respondents) and
the relatively high proportion of respondents (28%) in the age group of 55 to 64 years.
Conclusion
The employer is responsible for the content and quality of the training, however, the quality control of
the training control is not implemented at the national level. Professional standards do not contain
requirements for educational content and duration and do not describe the knowledge examination
procedures. The national level organizations should approve the requirements of educational results:
• The problems to combine requirements of education standards and professional standards for each
individual educational program or course.
• The problems with programs or courses of non-formal learning, for which neither education nor
profession standards are developed that can be used by the education users to select the appropriate
education provider
Therefore, it is necessary to establish unified requirements for the training procedure of the attending
personnel working with dangerous machinery regardless of the training organizer, regulating the training
programs and examination content, as such clear conceptual approach would ensure that it will be relatively
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simple to implement and control the training process at the national level. Accordingly, it is necessary to
clarify in the Regulations of the Cabinet of Ministers the required proficiency level of the responsible
specialist for carrying out his duties, which determines the need to appoint appropriately qualified specialist
with a written order, who is responsible for a technical condition of the particular dangerous machinery, it
safe use and maintenance.
Skill obsolescence is a major problem that threatens Latvia, if compulsory system of proficiency
examination of the attending personnel working with dangerous machinery will not be updated.
It is necessary to perform additional research among countries, where legislation institute related to the
operation of dangerous machinery is working more significantly and efficiently than in Latvia in order to
deeper analyze and probably take over a foreign good practice of the training system organization provided
for the attending personnel working with dangerous machinery.
References
Kosmowski, K., Functional safety and layer of protection analysis with regard to human factors. / Journal of Polish
Safety and Reliability Association Summer Safety and Reliability Seminars, Volume 4, Number 2, 2013. Retrieved
from:
http://jpsra.am.gdynia.pl/upload/SSARS2013PDF/VOL2/SSARS2013BarnertKosmowskiSliwinski.pdf
Méhaut P., Winch C. The European qualifications framework: skills, competences or knowledge? / European
educational research journal, 2012. - Vol. 11, No 3, 512 pp.
National Occupational Standards. Retrieved from: http://nos.ukces.org.uk/Pages/index.aspx
Sandborn, P., Prabhakar, V., Kusimo, A. Modeling the obsolescence of critical human skills necessary for supporting
legacy systems / / from ASME 2012 International Design Engineering Technical Conferences and Computers
and Information in Engineering Conference. - Paper No. DETC2012-71554.
Statistical data from Latvian dangerous machinery Register./ Consumer Rights Protection Centre unpublished materials.
Upeniece Eva Master’s Thesis „Normative act regulation of training for personnel connected with operation of
dangerous machinery and its improvement”. Master’s Thesis managing director: Doc., Mg.sc.ing. Jānis Bērziņš,
RTU, 2015.
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Development of Guidelines for Operators Working with Dangerous Machinery
Proficiency Assessment of Eligibility for the Job
Eva Upeniece1, Jānis Bērziņš2
1
Learning centre „EVA-93”, Latvia, apmacibas@eva93.lv
2
Riga Technical University, Latvia, Janis.Berzins@rtu.lv
Abstract
Taking into account the fact that Latvia currently lacks of methodological guidelines to develop the
program of training of operators working with dangerous machinery and evaluate the level of knowledge
and skills to enable an adequate assessment of employee proficiency with the work to be performed, there
are still legislative requirements that one of the working environment risk factors to be evaluated is the
injury risk factor as “insufficient professional training of an employee” while assessing the working
environment risk, there is a need for methods that allow the optimized assessing of this occupational risk
factor.
The author's research subject is insufficient proficiency assessment of eligibility for the job as the
working environment risk factor. This article reflects the full development cycle to assess the employee`s
professional training of the method development by the author: scientific literature sources were initially
identified, which include the theoretical and practical models of a calculation of the employee`s
professional training level, as well as empirical research, their strengths and weaknesses and restrictions
of the potential application in the context of the existing Latvian laws and regulations are analyzed, the
required criteria are developed for the method and assessment method of the employee`s professional
training is developed as follows. Also, the practical application of the method to assess professional
training of the bridge crane operator is reflected. Recommendations and guidelines for the use of the
method are developed and provided for efficiency measures of the employee`s professional training level.
Introduction
In practice, a lot of different techniques are found to assess the risks caused by individual equipment,
as well as the working environment impact; however, there are few of individual methods that describe the
role of the employee influence, because “although a number of methods have been developed in the world
allowing to identify of possible hazard caused by a man as a part of the human-technical interaction system,
however, it shall be taken into consideration that most of these methods (known as HRA - Human Reliability
Analysis Methods) should be viewed critically, since the methods look at the human reaction and possible
scenarios working with equipment only in exceptional cases and in non-standard conditions” (Mitropoulos,
P., Cupido, G).
It should be taken into account that professional training of an employee and knowledge level on the
labour safety issues serves as a preventive measure to ensure a safe working environment, both because it
reduces the possibility of an accident and the possible development of occupational diseases.
The author relies on the assumption that the professional training is overall assessment of professional
competence, capacity for labour and labour safety system impact on the employee.
Consequently, a combined method developed by the author for assessment the professional training of
the attending personnel working with dangerous machinery includes three components:
1. Professional competence assessment, which includes a number of elements and which can be
calculated using the formula developed by the author:
, (1)
where tBI - time worked in hours as the dangerous machinery operator during the reporting period;
tpārskata – the total number of hours worked during the reporting period;
kdrošais – the coefficient resulting from length of service, which divides employees into “safe” and
“unsafe” group:
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Zfakt - the dangerous machinery operator's actual knowledge in score points, it is determined by
assessing answers to the questions included in the author`s developed checklist,
Zteor - total possible number of points for the questions included in the checklist.
2. A modified work ability index is used for the assessment of work abilities, component of “work
ability” (Work Ability Index, WAI).
3. Evaluation of the impact of the labour safety system organization on the employee.
The author developed a checklist with 30 questions to assess employees' opinion and knowledge of
labour safety organization in the company. It should be taken into account that this checklist has been
developed to assess the understanding of labour safety organization by the dangerous machinery operators.
The OSR index considers assessing all the factors by the criterion of “match” or “do not match”, all
compliances are classified in 3 levels.
Points with the index „O” – refer to the minimum safety requirements, if ignored can directly cause the accident;
Points with the index „S” - refer to the most important safety requirements, indicating a lack of sufficient
compliance of safety requirements in the company and indirectly could lead to accidents or encumber first
aid in the company;
Points with the index „R” – refer to the requirement of advisory nature, the so-called “good practice”
running in the company.
Each index „O”, „S” and „R” is evaluated respectively with 3, 2 or 1 point , the OSR index is
determined by the certain formula (2) [82]:
, (2).
Results
The method for evaluation of the professional training of an employee developed by the author
estimates the professional training of three components: professional competence, work ability and the
impact of labour safety system on the employee. It assesses each individual component separately; both the
individual employee characteristics and work organization impact on employee, as well as the physical and
mental compliance of the employee for the work are taken into account. Interpretation of the results makes it
easy to identify what improvements are needed, because it reveals “weak stages”, allow you setting priorities
for action, revealing what measures needed to be planed first so that the work environment is more safe and
healthy, because the main aim of the labour safety system is to provide a safe working environment to
employees, protecting them from injuries, diseases and accidents. It should be taken into account that poor
health related to professional activity, including diseases caused or aggravated by unfavourable working
conditions is a heavy burden on workers, companies and social security systems.
The method is easy to use; the necessary output data are easily accessible, the method application does
not require additional financial investment, which is essential for Latvian conditions.
The method is suitable for both the initial risk assessment and risk re-evaluation in order to assess both
the improvements made in the labour safety system, as well as changes of indicators of the employee's
professional competence and the individual changes in ability to work.
Conclusion
The significance of a risk factor evaluating of insufficient professional training of an employee in the
overall risk assessment structure is a question of conceptual nature, taking into account that the requirement
to evaluate this risk factor exists in practice, but the methods set out in general would allow adequately
assessing this risk factor are not applicable in Latvia for the attending personnel working with dangerous
machinery due to lack of the necessary input and output data associated with the absence of statistical data,
as well as deficiencies in the laws and regulations of eligible system.
Additional studies must be carried out, evaluating content, criterion and construct validate of each
individual component of the method that by obtaining the appropriate validate evidences of the method
would improve the method developed by the author for assessment of the insufficient professional training of
an employee as a risk factor and the method can be applied not only to one specific group of employees – the
dangerous machinery operators, but generally used to determine professional training of each employee.
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References
Laitinen, H. Observation - based proactive OHS outcome indicators - Validity of the Elmeri+ method. / Safety Science
54, 2013.
Mitropoulos, P., Cupido, G. The role of production and teamwork practices in construction safety: A cognitive model
and an empirical case study./ Journal of Safety Research. – Itasca: The National Safety Council, 2009. - 920 pp.
Sandborn, P., Prabhakar, V., Kusimo, A. Modeling the obsolescence of critical human skills necessary for supporting
legacy systems / / from ASME 2012 International Design Engineering Technical Conferences and Computers
and Information in Engineering Conference. - Paper No. DETC2012-71554.
Tuomi, K., Ilmarinen, J., Jahkola, A. ... [u.c.]. Work Ability Index. 2nd revised edition / K. Tuomi, J. Ilmarinen, A.
Jahkola. – Helsinki: Finnish Institute of Occupational Health, 1998., ISBN 951-802-202-XISSN 0357 -5519.
Upeniece Eva Master’s Thesis „Normative act regulation of training for personnel connected with operation of
dangerous machinery and its improvement”. Master’s Thesis managing director: Doc., Mg.sc.ing. Jānis Bērziņš,
RTU, 2015.
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SECTION
“SCIENTIFIC PROBLEMS
OF ENGINEERING ECONOMICS
OF CONSTRUCTION,
REAL ESTATE MANAGEMENT, REGIONS
AND TERRITORIES DEVELOPMENT”
SUBSECTION
“PECULIARITIES OF ENGINEERING ECONOMICS
IN CONSTRUCTION, REAL ESTATE
AND LAND MANAGEMENT“
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European Studies on Land Value Capture of “Unearned Increments”
Armands Auziņš 1
1
Riga Technical University, Latvia, armands.auzins@rtu.lv
Abstract
As a consequence of land use intensification often appear effects that cause remarkable challenges and
issues in land management practice. Increase in real property value usually is expected from both public
and private investments into improvements of infrastructure as well as following the influence of overall
socio-economic development. Land value capture indicates to the way – a method or strategy, how to
absorb this increase in value by using it for specific purposes. The study focuses on exploration of recent
studies in various European countries regarding the experiences to provide equity resource allocation in
the territory by distributing the increase in land value among local stakeholders – real property owners
and public authorities. The historical and comparative analysis methods as well as logical-constructive
and graphical methods have been applied in the study. Various sources of the increase in land value and
the development phases of the real property have been analysed and the correlation results demonstrated
in the study. The findings of the study may contribute significantly for improving the land policy, local
development programmes and plans, and appropriate institutions at the municipal land management level.
Keywords: land value capture, real property, infrastructure developments, unearned increments
Introduction
Sustainable land use management focuses towards balanced both the consumption and conservation of
land-related resources. Therefore, much attention is paid to land administration in both urban and rural areas
by applying specific tools and assessing various effects from its interaction. Land use planning may be seen
as an integrated part of the land management process. Land use plans most commonly are implemented
through developing of necessary infrastructure and buildings in accordance with a functional zoning,
permitted land use and set land use restrictions. Thus, “land development” is promoted by carrying forward
the new development initiatives, creating the engineering infrastructure and buildings appropriate to the
either urban or rural environment, and implementing the reasonable changes into existing land use according
to set regulations. Accordingly, the land development activities cause to the changes in land use intensity and
land value. Land value capture (LVC) points to the techniques in order to capture value increase to use it for
specific purposes, while ‘unearned increments’ (UI), often named either ‘cost recovery’ or ‘betterment’, refer
to an increase in the value of property through no work or expenditure by the property owner. Several recent
studies of European scope give an overview of the methods that are applied for land value capture of
‘unearned increments’. The research results could develop basis for an extended study to obtain an overview
of value capture also in Latvia by using the same structure and models.
The aim of the research is to explore different approaches and techniques that are used in various
European countries for resource allocation in the territory by distributing the UI of land value among local
stakeholders to be used for specific purposes and public benefits. To achieve the research aim, the following
major tasks are defined: (1) to discuss the relevant concepts and models as well as its interpretations to be
applied for a case study and comparative analysis of the study scope; (2) to identify and analyse the common
sources of the increase in land value and the development phases of the real property to be used in case
studies and comparative analysis; (3) by examining the spatial development planning systems and assessing
the existing planning practices, to explain the results of land use planning-implementation processes and
identify both private and public involvements at each development phase of real property; (4) to analyse the
models that are used for LVC; (5) based on the research results and their interpretation, to draw meaningful
conclusions and make proposals for designing the value steps of real property development and representing
the case of Latvia. The historical and comparative analysis methods, logical-constructive and graphical
methods have been mainly used in the study.
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Findings/Results
The terminology regarding to the value capture is much argued, debated, and interpreted in scientific
literature, however the LVC can be seen as a method or strategy to capture the increase in land value to be
used for specific purposes for public benefits. Direct and indirect models should be used for the capture of
the surplus value of developed land. Five common sources and three development phases of real property are
to be identified and analysed at each specific country in order to design the value steps and represent a
comparable case study. Various dissimilarities are identified if comparing the spatial development planning
systems and related significant processes among Germany, France and Sweden. The spatial planning system
of Latvia most closely corresponds to the Swedish system. However, there are meaningful disparities if
comparing the private and public involvements, the regulatory framework, the mandatory and contract-based
developments, and the cost covering options among the explored cases of the countries.
Conclusions
Although the results of entertaining research show the varied approaches and applied procedures in
LVC if comparing the examined cases of the countries, it may be concluded that the methodology used for
comparative research on value capture have to make background for an extended studies to design the value
steps of real property development, represent a comparable outcome, and thus to obtain an overview of value
capture across the Europe.
References
Hendricks A., Kalbro T., Liorente M., Vilmin T., Weitkamp A. (2015). Public Value Capture of Increasing Property
Values – What are “Unearned Increments”? A comparative study of France, Germany and Sweden. – pp.1-27.
Ingram G. K., Hong Y. H. (2012). Value Capture and Land Policies. Land Value Capture: Types and Outcomes. –
Lincoln Institute of Land Policy. – p.466.
Van der Krabben E. (2008). Land readjustment for value capturing: A new planning tool for urban redevelopment. The
Town planning review, 11, 79(6). – pp.651-672. DOI:10.3828/tpr.79.6.4
Williamson I., Enemark S., Wallace J., Rajabifard A. (2010). Land Administration for Sustainable Development. –
ESRI Press Academic. – p.487.
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Management of Environmental Costs in the Project: the Experience of Russia
and Mongolia
Nyamdorj Davaakhuu1, Elena Alnykina2, Igor Gengut3
1
2
Plekhanov Russian University of Economics, Mongolia, dabuk91@mail.ru
Plekhanov Russian University of Economics, Russia, elena-alnykina@rambler.ru
3
Plekhanov Russian University of Economics, Russia, igengut@gmail.com
Abstract
The questions of assessment and management of environmental costs of production in the project
activities. We study the conditions of preparation and implementation of investment projects to eliminate
accumulated environmental damage in the context of "green" economy. For example, a mining enterprise
"Erdenet" in Mongolia, whose shareholders are Russia and Mongolia, the issues of sustainable
development of the company for the future, taking into account the depletion and exhaustion of its
resource base and mine closure. Analyzes trends in the cost of production, environmental protection,
compensation for the negative effects of economic activity on public health and others in connection with
the change of ecological and economic conditions of production and the depletion of the resource base. In
order to optimize production costs - copper-molybdenum concentrate in a reduction of the useful
component in the ore mined justified directions for the use of man-made deposits, that is, the resources of
previously accumulated waste products (off-balance ore, shlamonahranilischa waste), which were formed
as a result of the company in the past, for the production of road construction materials and others. The
article explains the necessity of building the fund liquidation (a fund for future generations) in a depletion
of resources base of the enterprise for sustainable development of the territory after the end of the life of
the company through payments to the fund of the funds from company profits, income from the use of
waste as secondary raw materials and others.
The proposed mechanism for the management of environmental costs in project activities can be used
at the enterprises of Russia and Mongolia, as well as in other countries in the implementation of
investment projects to eliminate accumulated environmental damage and the development of the
principles of "green "Economics in the mineral resources. For example, the Mongolian-Russian mining
company "Erdenet" in Mongolia shows the direction to reduce costs and production costs through the
implementation of measures for resource and energy efficiency, involving in economic circulation of offbalance ores and tailings.
Keywords: environmental management, environmental economics, mining enterprise, Russia,
Mongolia.
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The Development of Housing Sector and Residential Real Property Market after
Economic Recession in Latvia
Sanda Geipele1, Armands Auziņš 2
1
2
Riga Technical University, Latvia, sanda_geipele@inbox.lv
Abstract
The study is concerned with an examination of resource distribution in order to promote a sustainable
development of housing sector in the context of evolving residential real property market after economic
recession period in Latvia. The statistical and comparative analysis methods mainly have been applied in
the study and the recommendations on the implementation of conceptual solutions for promoting an
efficient management of housing sector according to the public needs have been provided. The findings
of the study may contribute significantly when improving the housing policy and appropriate institutional
environment in Latvia.
Keywords: housing sector, sustainable development, real property, residential market
Introduction
Residential housing composes one of the major real property market segments. The research on its
current development is related to transactions with real properties of the housing stock – individual
residential houses and high-rise multi-family residential buildings. The development of housing sector
indicates the household formation. The research results of the current development are necessary to evaluate
the state and potential of the sector, market situation in the relevant time period and development trends. The
housing sector is aging if it is not renewed to the extent required. The real estate market can offer real estate
taking into account not only the need for provision of housing functions, but also the potential to create a
solvent demand by offering high-quality dwellings in new and modern development projects. For this
purpose conceptual solutions can be found to increase efficiency measures and to promote the housing sector
management in accordance with the public interest.
The aims of the study are to explore the current state of the housing sector, to analyze the real property
market development trends in the residential segment and to assess the potential and opportunities in Latvia
as a whole and in its separate regions, where the population concentration is higher and the market is more
active. To achieve the research aims, the following major tasks are defined: (1) to explore the residential area
and the dynamics of market transactions of related land units as well as development trends over the last five
years; (2) to evaluate the housing sector characteristics in certain research areas; (3) by assessing the
structure of housing sector and real estate transaction intensity in the residential market segment, to explain
the factors that affect housing sector aging and the stagnant nature of real estate market over the last five
years; (4) based on the research results and their interpretation, to draw meaningful conclusions and make
proposals for promoting the development projects within housing sector. The statistical and comparative data
analysis methods have been mainly used in the study.
Findings/Results
Since 2011, the Latvian economic situation has become balanced and continues to develop gradually.
Thus: (1) real estate market players have become active; (2) credit institutions have resumed mortgage
lending, but with much more stringent regulations; (3) the government decisions regarding the temporary
residence permits have attracted foreigners’ interest and increased the number of transactions in residential
real property market segments; (4) household solvency has also improved gradually. The research results
showed that taking into account the real estate market development trends in the residential segment, the
existing housing sector structure and development rate of new residential construction projects in case of the
existing institutional environment in housing policy issues, there are limited opportunities to create a solvent
demand, providing high-quality dwellings, especially in multi-family buildings. However, the results of the
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performed analysis at the same time point to the necessity and potential to find socially acceptable
conceptual solutions and to increase the efficiency of housing sector management.
Conclusions
Although since 2011 the real estate market has become balanced in terms of average market value and
transactions have resumed with apartments in serial type multi-family residential buildings and with
apartments in newly erected residential buildings, the construction rate of newly erected residential buildings
is not as dynamic, despite the Latvian housing sector development and aging. Thus, the future development
scenario of housing market depends on the national policy addressing the housing issues, which should
envisage drawing up strategic planning documents of housing market development directions and evaluating
its effectiveness taking into account socio-economic and legal-political factors so that a decision-making
process in real estate and construction sectors is systemized and effective.
References
Auzins, A. Grinbergs, M. Geipele, I. (2012). Influence of Development of Land Use Goals to the Economics of Latvia.
Proceedings of 2nd International Conference on Applied Social Science (ICASS 2012). – Kuala Lumpur,
Malaysia. ISBN 978-1-61275-006-4, Information Engineering Research Institute, USA. – pp.238-243.
Auziņš, A., Geipele, S., Geipele, I. (2014). New indicator system for evaluation of land use efficiency. Industrial
Engineering and Operations Management: Proceedings of the 4th International Conference on Industrial
Engineering and Operations Management (IEOM). – Indonesia: Bali, January 7-9, 2014. – pp.2285-2293.
Auzins, A., Geipele, S., Geipele, I. (2013). Set of Fiscal Algorithms for Land-Use Management and Decision-Making in
the Territory of a Municipality. Recent Advances in Applied Mathematics and Computational Methods in
Engineering: Proceedings of the 2013 International Conference on Applied Mathematics and Computational
Methods in Engineering: AMCME 2013. Mathematics and Computers in Science and Engineering Series. Vol.
15. Edited by Charles A.Long, Nikos E.Mastorakis, Valeri Mladenov. – Greece: Rhodes Island. – July 16-19,
2013. – pp.296-302.
Brick&Smiles Property Brokers (2012). Pārdošanas tirgus pārskats 05.10.2012. [Overview of sales market 05.10.2012].
Accessed
April
10,
2015.
http://www.bands.lv/userfiles/files/B&S_p%C4%81rdo%C5%A1anas%20tirgus%20p%C4%81rskats_05102012
.pdf
CSP (2015a). Uzbūvētās jaunās dzīvojamās ēkas un dzīvokļi, definīcijas [New-built residential buildings and
apartments, definitions]. Central Statistical Bureau of Latvia. Accessed April 15, 2015.
http://www.csb.gov.lv/statistikas-temas/metodologija/uzbuvetas-jaunas-dzivojamas-ekas-un-dzivokli36992.html
CSP (2015b). Būvniecības produkcija pa ceturkšņiem [Conctruction products quarterly]. Central Statistical Bureau of
Latvia.
Accessed
April
15,
2015.
http://data.csb.gov.lv/pxweb/lv/rupnbuvn/rupnbuvn__isterm__buvn/BU0010c_euro.px/table/tableViewLayout1/
?rxid=562c2205-ba57-4130-b63a-6991f49ab6fe
CSP (2015c). Uzbūvēto dzīvokļu skaits statistiskajos reģionos, republikas pilsētās un rajonos [Number of built
apartments in statistical regions, cities and districts]. Central Statistical Bureau of Latvia. Accessed April 15,
2015.
http://data.csb.gov.lv/pxweb/lv/rupnbuvn/rupnbuvn__ikgad__majokli/MA0050.px/table/tableViewLayout1/?rxid
=562c2205-ba57-4130-b63a-6991f49ab6fe
CSP (2015d). Būvniecība [Construction]. Central Statistical Bureau of Latvia. Accessed April 15, 2015.
http://www.csb.gov.lv/sites/default/files/skoleniem/sekundarais_sektors/buvnieciba.pdf
CSP (2015e). Izdoto būvatļauju skaits ēku būvniecībai statistiskajos reģionos, republikas pilsētās un novados [Number
of issued building permits in statistical regions, cities and novads].Central Statistical Bureau of Latvia. Accessed
April
15,
2015.
=562c2205-ba57-4130-b63a-6991f49ab6fe
CSP (2015f). Ekspluatācijā pieņemto jaunuzbūvēto viena dzīvokļa māju skaits statistiskajos reģionos, republikas
pilsētās un novados [Number of new-built family houses put into operation]. Central Statistical Bureau of Latvia.
Accessed
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15,
2015.
=562c2205-ba57-4130-b63a-6991f49ab6fe
Latio (2015). Study of Latio market analysis unit, Riga: Latio.
MK (2013). Vispārīgie teritorijas plānošanas, izmantošanas un apbūves noteikumi [General regulations for the
planning, use and building of the territory]. Cabinet of Ministers of the Republic of Latvia. Regulations No. 240.
Accessed April 5, 2015. http://likumi.lv/doc.php?id=256866
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Saeima (2008). Administratīvo teritoriju un apdzīvoto vietu likums [Law on administrative territories and populated
areas]. Accessed April 2, 2015. http://likumi.lv/doc.php?id=185993
VARAM (2015). Prasības elektronisko karšu izstrādei teritorijas plānošanas vajadzībām [Requirements on designing
digital
maps
for
spatial
planning
needs].
Accessed
April
5,
2015.
http://www.varam.gov.lv/lat/publ/met/met_tap/?doc=15120
VZD (2014a). Latvijas Republikas būvju gada pārskats 2014 [Annual report of buildings of the Republic of Latvia
2014]. State Land Service of Latvia. Accessed April 8, 2015. http://vzd.gov.lv/files/buvju_parskats_2014.pdf
VZD (2014b). Pārskats par kadastrālās vērtēšanas modeļa pilnveidošanu daudzfunkcionālām ēkām, 2014.gads
[Overview of the improvement of cadasrtral evaluation model for multifunctional buildings, 2014]. State Land
Service
of
Latvia.
Accessed
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12,
2015.
http://kadastralavertiba.lv/wpcontent/uploads/2015/02/Jaunie_projekti_PARSKATS_2014.pdf
VZD (2015a). Latvijas Republikas administratīvo teritoriju un teritoriālo vienību zemes pārskati [Overviews of the
administrative territories and territorial units of the Republic of Latvia]. State Land Service of Latvia. Accessed
April 8, 2015. http://www.vzd.gov.lv/lv/parskati-un-statistika/tematiskie-parskati/zemes-parskati/
VZD (2015b). Statistika par tirgus darījumiem [Statistics on real property transactions]. State Land Service of Latvia.
Accessed April 15, 2015. http://www.vzd.gov.lv/lv/parskati-un-statistika/statistika/statistika-par-tirgusdarijumiem/
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Energy Conservation Programs in Russia 1
Yuliya V. Gerasimenko 1
1
Plekhanov Russian University of Economics, Russian Federation, u.v.usacheva@yandex.ru
Abstract
This article is devoted to the problem of state management in the sphere of energy-conservation in
building sector. The existent management approaches and a role of program-target method of
management in Russia have been analyzed. Some new measures of energy-saving innovations
implementation are presented. The disadvantages of current energy-saving Program have been revealed
and the concept of its improvement has been suggested.
Keywords: energy conservation program, system approach, process approach, complex approach.
Introduction
Since the end of XX century in Russia was chosen the path of innovative development of the
economy. Among the new and more advanced technologies always had a special place energy-saving
innovations. A program-target method of management was elected to improve the energy efficiency of the
domestic economy. So far, however, these measures do not give the desired effect – energy efficient building
construction did not become mass, innovation activity remains to be rare investments in construction
materials industry.
Management approaches
In order to identify the causes of the ineffectiveness of the program-target method of management of
energy-saving in Russia, it is necessary to examine the main approaches to management. During the
informational evolution of the world, there was developed a system approach, the main idea of which is that
any action is not undertaken in isolation from the others. This approach provides the possibility of studying a
large number of alternatives, the analysis of the constraints and consequences of decisions. At the same time,
we should take into account the fact that the object of study is always multi-faceted and requires a
comprehensive, complex approach; therefore, the study should include specialists in various fields. A
process approach plays a special role in the modern theory of management. Process approach considers
management as a continuous series of interrelated managerial functions: planning, organization, motivation,
control, and linking processes - communication and decision making. These approaches are not mutually
exclusive and work together to identify the most effective management methods.
Energy-saving programs
Today there is a complex of legal document in the energy-saving sphere. The main purpose of them is
to reduce energy intensity of GRP (gross regional product). Russian energy-saving programs are aimed at the
same target, but there are still a number of unresolved social problems, it spite of the fact, that planning and
formulation of national tasks in particular is not new for Russia and was used extensively in the Soviet
period.
All Russian programs are regularly corrected. So, there are new measures, which coordinate all urban
sector programs in terms of creation of objects of capital construction, accumulate the results, identify
priorities for urban development in the future:
1. “development of economic mechanisms for the implementation of urban policy and stimulate
investment activity in the field of urban planning” provides state planning and programming,
preliminary risk assessment the implementation of large urban development projects, regulation of
investment activity that can be done through public investment, subsidies, incentives (including tax),
lending and stimulate the innovative process of reforming of the enterprises of a building complex for
the purpose of increase of their investment attractiveness (process approach to management);
2. “scientific, technical and methodological developments in the field of application of new
organizational, economic and managerial solutions, materials, technologies and equipment” includes
1
Work is executed at financial support of the grant of the Russian humanitarian scientific Fund (RGNF) № 15-32-01383
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the analysis, systematization and implementation of scientific and methodological developments in
order to ensure and implementation of innovative development of the construction complex (the
complex approach as a comprehensive scientific study of the problem);
3. “implementation of advanced energy efficiency and other innovative technologies in construction”
suggests a system approach to the problem of energy-saving by combination of measures: methods of
analysis and estimation of innovative technologies efficiency; measures to stimulate the introduction
of innovative technologies; economic-feasibility study on the introduction of innovative developments
at specific objects.
Motivating methods
Special attention in the formation of programs on reduction of energy consumption in most countries
of the world is given to motivation of energy-saving innovations. Well-known, the existing method of
motivation for energy saving of an investor (a developer) are the so-called "green standards". There is a
similar System of voluntary certification of real estate In Russia – "Green standards". In this system there is a
special section, dedicated to the energy conservation design of buildings and completed projects. These
ratios are not binding and may affect the energy intensity of the industry only in terms of the overall focus on
the energy efficiency of a building complex in general and all its participants. For example, tax holidays for a
period of 5-7 years are used for the activities of the innovation center in Skolkovo, or substituting from the
budget of a part of interest on commercial loans, taken for the development of innovations.
Results
The successful functioning of these incentives will have an impact on the participants of the
investment process from two sides, creating both the Demand and supply. In this case, there is no need of
financing motivation "intermediate links", such as manufacturers of energy efficient construction materials,
or passive house designer - the impact on the supply and Demand will create favorable conditions for
business development in an energy efficient way without budgetary support. This incentive system
eliminates the inefficient expenditure of budgetary funds at encouraging the production of goods for which
there is no demand, or the design of buildings, construction of which has not been funded.
Conclusions
There is a need to restructure the use of government programming in the solution of strategic tasks of
economics of Russia. The research institutions and executive specialists of state power already participate in
this work, successfully applying process, a complex and system approaches to target programming,
considering foreign experience in this sphere. All this give us a reason to believe that soon the programtarget method in Russia will begin to function more effectively, and rightly become the main tool for solving
economic and social problems of the country.
References
Bogdanov, A. B. reducing the energy intensity of Russia to the competence of energy regulators not applicable//PortalEnergo, an electronic journal: http://portal-energo.ru/articles/details/id/782 (2015)
Ansoff H. Igor Strategic Management, Palgrave Macmillan (2007), pp.114
Mescon, Mchael H. , Georgia State University, Albert, Michael, San Francisco State University, Khedouri, Franklin,
Midlan International,Third Edition, HARPER & ROW, PUBLISHERS, NEW YORK, Cambridge, Philadelphia,
San Francisco, Washington, London, Mexico Oty, Sao Paulo, Singapore, Sydney,(2007) pp.48
ISO 9001:2008 Quality management systems – Requirement (2008), ar.IV;
Making the Position of Governments in the Field of Politics Stronger // The 12th Conference of Experts of UNO on the
Point of State Management. – N.Y. (1995), pp.11-12;
Usacheva, Y.V., Dmitriev, A. N. The mechanism of state incentives for energy conservation in construction // Housing
construction. : «STROYMATERIALY» (2011). - №12;
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Access mode: www.breeam.org;
Meszáros Géza. Széchenyi Plan, Quick analysis on the results of the Energy Efficiency Plan of (20010 / Mr. Géza
Meszáros, Ms. Klára Haidegger - Energy Centre Non-profit. - Budapest, April, (2002);
Energy-saving investments. The elimination of the barriers/Energy Charter Secretariat - Boulevard de la Woluwe, 56 /
(2006) B-1200 Brussels, Belgium, Dépôt légal D/2004/7850/4.
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The Correlation between Corrosion and the Market Value in the Evaluation
Process of Special Constructions Assets – Pipeline Transportation Systems
Ciprian Gheorghe1,
1
Valahia University of Targoviste, Romania, cipriangheorghe2@gmail.com
Abstract
Evaluation of special construction assets like pipelines is a complicated process that does not use
traditional approaches to evaluation, but rather a mixture of evaluation methods because each pipeline is
unique in its own way, but also because its value is influenced by many factors. Depending on the chosen
evaluation method involved estimating a pipeline several factors. These factors, acting together, represent
the influences the value of a pipeline from several points of view: the physical - chemical, technological
and economical. Among these factors a special importance must be given to corrosion.
Keywords: value, pipelines, physical impairment, corrosion.
Introduction
The corrosion process is a complex mechanism that occurs during operation of all equipment and
technological equipment in the refineries or pipelines systems or found in petrochemical installations and is
done at oscillating temperature and pressure (high/low), in the presence of some work environments (type:
crude oil, compressed gases, petroleum and petrochemical products, etc.). Corrosion is defined as the
destruction, in a certain span of time, of metals and metal alloys as a result of chemical and/or
electrochemical actions of the technological environments and surrounding or due to physical dissolutions.
From the standpoint of the assessor-engineer whose aim is to determine the assessment of pipeline
transportation for oil products one is able to highlight the influence of corrosion within its depreciation.
Some authors define depreciation as a loss of value, after the special construction is set-up, due to several
factors: a wrong design, a wrong dimensioning of the elements of the construction, the use of outdated
material or the layout on the basis of outdated rules and technologies, the action of external factors on the
special construction. In the specialized literature three types of comparison are identified, namely: the
physical impairment, the functional impairment and the external impairment.
Physical impairment is defined as a loss of value due to physical factors such as elements of the pipe
not repaired in due time, changes in the structure of materials, the difference between the life span of the
materials which the special construction is made from. This type of impairment, considered by some authors
as wear and tear can be recoverable and non-recoverable. Recoverable physical impairment picks up the cost
of new pipeline and determines the repair cost by deducting it from the remaining value. Non-recoverable
physical depreciation deducts the recoverable physical impairment from the cost of pipeline reconstruction,
and analyzes the physical depreciation and wear and tear on the basis of non-recoverable long life and shortlife items.
Research
In terms of evaluation process the impairment d is expressed quantitatively as the ratio of the effective
age of the installation and the lifespan as to the cost of the new installation.
Applying and influence of corrosion on the evaluation can calculate depreciation according to the
formula:
φ – the influence factor of depreciation due to corrosion
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Mn – the pipeline at the time n when calculating depreciation; Mi - the initial mass of the pipeline at the
initial time.
The influence factor of depreciation due to corrosion φ is always of subunit size and represents the
ratio of the material mass at the time of estimation of the pipeline market value and the initial mass of
material that the pipeline is made of.
Results
The relation between impairment (depreciation) and the influence factor of depreciation due to
corrosion is the quantitative expression of the correlation between depreciation and corrosion and is a very
useful tool for assessors in predicting of the market value for pipeline transportation systems.
The influence factor analysis of depreciation due to corrosion and φ are found to directly influence the
impairment due to corrosion, and the relationship shows the direct interdependence between impairment and
corrosion. The value of this factor directly influences corrosion. The smaller this factor is, the higher the
amount of depreciation. Although the influence factor of depreciation due to corrosion is a subunit size,
given that this factor is closer to unity, which would be the ideal situation, there is a decrease in depreciation
due to corrosion, and along with its decrease, stepping away from the unitary value, the amount of
depreciation due to corrosion increases. As the value of depreciation directly affects the market value, it can
be said that the factor of influence of depreciation due to corrosion φ directly influences the market value of
the installation, namely the pipeline.
Conclusions
The quantitative implementation of corrosion for the estimation of market value of technological
pipelines is an ongoing concern of evaluators as engineers have been determining the existence of corrosion
for a long time now, yet this could not be found in a mathematical relation that was to show the
interdependence between corrosion, depreciation and the market value. The relation between impairment and
corrosion by means of this factor is very useful for assessors in predicting depreciation. The emphasizing of
corrosion within the estimation of market value through the influence of the factor of depreciation due to
corrosion is a first step in a broader process of research which is meant to mathematically highlight the
dependence of impairment due to corrosion on the characteristics of the material which the pipe is made of.
My next research field is to measure the level of corrosion of pipelines by traditional methods and
development of correlation charts between corrosion and impairment.
References
Gheorghe, C, Influence Factors of Depreciation Duet o Corossion on The Value in the Evaluation Process of The
Pipelines Systems, International Conference ISTM 2014 papers, VOLUME 9 SPECIAL ISSUE of JIDEG,
Constanta, 2014
Stănescu Gh., Pavel A., Mandalopol D., Utilaj chimic și petrochimic, Dobrogea Printing Press, Constanța, 2007
Appraisal Institute & ANEVAR, Evaluarea Proprietății Imobiliare, Second Canadian Edition, Iroval Publishing House,
2004
Howell D., 40 Factors for Pipeline Appraisal, in: International Right of Way Association, 2010
Gheorghe, C, Evaluarea proprietatilor specializate, EstFalia Publishing House, Bucharest, 2014
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The Impact of Special Economic Zones on the Economic Situation of the Wider
Region
Ivo Gulbis1, Sanda Geipele2
1
2
Riga Technical University, Latvia, Ivo.Gulbis@rtu.lv
Riga Technical University, Latvia, Sanda_Geipele@inbox.lv
Abstract
The aim of the research is to examine the economic impact a special economic zone has on the region
hosting it. The reason for the present research is the emergence of new data and studies with examples
from around the world regarding SEZs and their effectivity. The investigation will help to evaluate the
results Latvia has had up until now. It should be noted that special economic zones remain a very
powerful tool of development and, when properly used, can provide the state with serious benefits.
Keywords: special economic zones, economy, management, strategic planning
Introduction
Development comes from investment, which requires financial and intellectual resources that a state
might not have available. A commonly used solution involves enticing foreign investors to come and start-up
businesses by offering them appropriate incentives to do so. The topicality of the research is determined by
the fact that Latvia has set up two SEZs with tax incentives and 2 free ports, but there is very little data about
the actual impact the zones have on the wider national economy. Learning from the issues mentioned above
would be of significant importance if Latvia is going to improve the gains from special economic zones.
Inefficient management and planning methods hamper the development of the territory, the region and entire
country.
The research is primarily based on quantitative method: data, comparison and theoretical analysis.
Data mainly is gained from existing sources, comparisons, practices. The theory is based on the most
successful international case studies.
Findings/Results
The following has been found as a result of the research: the sizes of the SEZs in question are still
relatively small and thus they do not contribute to the overall economy as much as they could, although the
situation has been improved compared to the past. The following proposals can be put forward for the
improvement of the situation: the state should undertake a more active role in the popularization of the SEZ;
any future attempts to create a new SEZ should involve better and more comprehensive strategic planning
and development of the territory beforehand; there should be more active communication with all the
potential business partners willing to work in the SEZ.
Conclusions
The results of the research show that creation and management of the SEZ is a difficult process. SEZs
are instruments of long term development and should be approached as such. The key to having a welldeveloped SEZ is choosing a fitting location, offering the correct tax incentives, creating the necessary
infrastructure and communication with different areas of the business. Only then these powerful tools will
work to their full potential.
References
Aggarwal, A. 2006. “Special Economic Zones—Revisiting the Policy Debate.” Economic and Political Weekly,
(November 4). Retrieved July, 19, 2015, from
http://www.researchgate.net/publication/237606838_Special_Economic_Zones_Revisiting_the_Policy_Debate
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Central Statistical Bureau of Latvia (2014). Statistic database. Retrieved from http://www.csb.gov.lv/dati/statistikasdatubazes-28270.html
Chandra, V., ed. 2006. Technology, Adaptation and Exports—How Some Developing Countries Got It Right.
Washington, DC: World Bank. DOI: 10.1596/978-0-8213-6507-6 Retrieved July, 19, 2015, from
https://openknowledge.worldbank.org/bitstream/handle/10986/7118/368000PAPER0Te1R0OFFICIAL0USE0ONLY1.
pdf?sequence=1
European statistics database Eurostat. Statistics database. Retrieved from http://ec.europa.eu/eurostat/data/database
FIAS (Foreign Investment Advisory Service). 2008. Special Economic Zones. Performance, Lessons Learned, and
Implications for Zone Development Washington, DC: World Bank. Retrieved September, 2, 2015, from
https://www.wbginvestmentclimate.org/uploads/SEZs%20%20Performance,%20Lessons%20Learned%20and%20Implications%20for%20Zone%20Development.pdf
Johansson, H., and L. Nilsson. 1997. “Export Processing Zones as Catalysts.” World Development Vol. 25, No. 12.
2115-2128, I997 Retrieved July, 19, 2015, from
http://www.researchgate.net/publication/223149760_Export_Processing_Zones_as_Catalysts
Legislation of the Republic of Latvia (1997). Rēzeknes speciālās ekonomiskās zonas likums [Law about Rezeknes
special economic zone]. Retrieved July, 22, 2015, from http://likumi.lv/doc.php?id=45469
Legislation
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Latvia
(2001).
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nodokļu
piemērošanu
brīvostās
un
speciālajās ekonomiskajās zonās [About the application of takses in free ports and special economic zones].
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Milberg, W., & M. Amengual. 2008. Economic Development and Working Conditions in Export Processing Zones: A
Survey of Trends Geneva: International Labour Organization. Retrieved July, 12, 2015, from
http://ilo.org/public/french/dialogue/download/wp3englishfinal.pdf
Ministry of Economics of the Republic of Latvia (2015). SEZ and free ports. Retrieved July, 25, 2015, from
https://www.em.gov.lv/lv/nozares_politika/nacionala_industriala_politika/investicijas/sez_un_brivostas/
The International Bank for Reconstruction and Development/The World Bank (2011) "Special Economic Zones
Progress, Emerging Challenges, and Future Directions" Washington DC. Retrieved September, 2, 2015, from
https://openknowledge.worldbank.org/bitstream/handle/10986/2341/638440PUB0Exto00Box0361527B0PUBLI
C0.pdf
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Land Use Analysis in Latvia in a Context of the Sustainable Development
Linda Kauškale1, Ineta Geipele2
1
Riga Technical University, Latvia, Linda.Kauskale@rtu.lv
Riga Technical University, Latvia, Ineta.Geipele@rtu.lv
2
Abstract
The research focus is the examination of the key aspects of the land use for the detection of the urgent
problems in the context of sustainable development. The comparison, data analysis and logical access
methods have been used in the study and the recommendations on the improvement of the situation in the
longer term have been developed. Land use management, legal side of regulation and the efficiency of
land use are essential guidelines for the sustainable development of the territory in the country.
Keywords: land use, sustainability, real estate market, management
Introduction
Land use issues are becoming more relevant in Europe and in the whole world. The relevance of the
study is determined by the fact that the efficiency of the land use, management and regulation basis affect
also the country's socio-economic development. The relevance of the study is defined by the fact that the
land use, management, legal base of the regulation, as well as the land use efficiency involves several phases
and is not possible without a complex approach to this issue. All above mentioned issues are of significant
importance in the whole Europe and around the world. Non-efficient land use and management hampers the
development of the territory and the country. The country's socio-economic development affects the
efficiency of the land use, hence these parameters are interrelated.
The objective of the study is the examination of the key aspects of the land use for the detection of the
urgent problems in the context of sustainable development and improvement of the situation. The main tasks
of the study are the following: analysis of the theoretical aspects and contemporary scientific issues,
including international experience, analysis of the data, summarization of the results of the research and
development of the proposals. A complex approach to the assessment of the land use allows defining and
finding opportunities for the solution of a number of problematic issues. The comparison, data analysis and
logical access methods have been used in the study.
Findings/Results
The following proposals are put forward for the improvement of the situation: the state should
undertake an active role in this process in order to achieve a sustainable land use management, in particular
because there is an expressed inequality of the development between the Latvian regions and the capital;
there should be communication with the direct land owners in the course of the improvement of the
efficiency of the land use and the development of the regulation base in order to strive for the best and most
efficient land use throughout the country.
Conclusions
The results of the study show that the land use analysis is a multi-step process, which requires a
comprehensive approach and close attention to a number of the existing problems in the country. All the
above mentioned aspects have a direct impact on the territory and the development of the country. Land use
management, legal side of the regulation and the efficiency of the land use also on the part of the population
are essential guidelines for the sustainable development of the territory of the country.
References
Antonelli, M., Siciliano, G. Turvani, M.E., & Rulli, M.C. (2015). Global investments in agricultural land and the role of the EU: Drivers,
scope and potential impacts. Land Use Policy, 47, 98–111. http://dx.doi.org/10.1016/j.landusepol.2015.04.007 0264-8377
186
ISSN: 2256-0866
ISBN: 978-9934-8275-3-2
Auziņš, A., Grinbergs, M., & Geipele, I. (2012). Influence of Development of Land Use Goals to the Economics of Latvia. 2nd
International Conference on Applied Social Science. (ICASS 2012), Malaysia, Kuala Lumpur, 1-2 February, 2012. Los
Angeles: Information Engineering Research Institute, 2012, pp.238-243. ISBN 9781612750064.
Bertoloa, L.S., Santos, R.F., Agar, P.M., & Pablo, C.T.L. (2015). Land-use changes assessed by overlay or mosaic methods: Which
method is best for management planning? Ecological Indicators, 55, 32–43. http://dx.doi.org/10.1016/j.ecolind.2015.03.004 ]
Central Statistical Bureau of Latvia (2014). Statistic database. Retrieved from http://www.csb.gov.lv/dati/statistikas-datubazes28270.html
Chakir, R., & Gallo, J. (2013). Predicting land use allocation in France: A spatial panel data analysis. Ecological Economics, 92, 114–
125. doi:10.1016/j.ecolecon.2012.04.009
European Environment Agency. (2013). Land use. Retrieved May 28, 2015, from http://www.eea.europa.eu/lv/themes/landuse
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European statistics database Eurostat (2015, March). Land cover, Land use and Landscape. Retrieved from
http://ec.europa.eu/eurostat/statistics-explained/index.php/Land_cover,_land_use_and_landscape
Fischer, B., Klauer, B., & Schiller, J. (2013). Prospects for sustainable land-use policy in Germany: Experimenting with a sustainability
heuristic. Ecological Economics, 95, 213–220. http://dx.doi.org/10.1016/j.ecolecon.2013.09.006
Food and Agriculture Organization of United Nations (2015). Land use. Retrieved August, 20, 2015, from
http://www.fao.org/nr/land/use/en/
Gatto, M., Wollni, M., & Qaim, M. (2015). Oil palm boom and land-use dynamics in Indonesia: The role of policies and socioeconomic
factors. Land Use Policy, 46, 292–303. http://dx.doi.org/10.1016/j.landusepol.2015.03.001 0264-8377
Getimis, P., Reimer, M., & Blotevogel H.H. (2014). Conclusion. Multiple trends of continuity and change. In Spatial planning systems
and practices in Europe: a comparative perspective on continuity and changes / edited by Mario Reimer et al. New York,
NY: Routledge. 278-305.
Halleuxa, J.-M., Marcinczak, S., & Krabben, E. (2012). The adaptive efficiency of land use planning measured by the control of urban
sprawl. The cases of the Netherlands, Belgium and Poland.
Land Use Policy, 29, 887–898.
doi:10.1016/j.landusepol.2012.01.008
Hartmann, T., & Spit, T. (2015). Dilemmas of involvement in land management – Comparing an active (Dutch) and a passive (German)
approach. Land Use Policy, 42, 729–737. http://dx.doi.org/10.1016/j.landusepol.2014.10.004 ]
Legislation of the Republic of Latvia. Cabinet of Ministers Nr. 496. (2006). Nekustamā īpašuma lietošanas mērķu klasifikācija un
nekustamā īpašuma lietošanas mērķu noteikšanas un maiņas kārtība [Real Estate Exploitation Purpose Classification and Real
Estate Exploitation Purpose Establishment and Change Order]. Retrieved June, 2, 2015, from
http://likumi.lv/doc.php?id=139503
Legislation of the Republic of Latvia. Cabinet of Ministers Ordinance Nr. 462. (2012). Par kadastrālās vērtēšanas sistēmas
pilnveidošanas un kadastra datu aktualitātes nodrošināšanas koncepcija [About cadastral valuation system improvement and
cadastral data freshness assurance concept]. Retrieved June, 2, 2015, from http://likumi.lv/doc.php?id=251895
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quality implications. Science of the Total Environment, 527–528, 439–447. http://dx.doi.org/10.1016/j.scitotenv.2015.04.092
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2015, from http://www.varam.gov.lv/lat/darbibas_veidi/tap/zem_pol/?doc=12899
Möcke, S. (2015). Best available techniques’ as a mandatory basic standard for more sustainable agricultural land use in Europe? Land
Use Policy, 47, 342–351. http://dx.doi.org/10.1016/j.landusepol.2015.04.021 ]
O’Sullivan, L., Creamer, R.E., Fealy, R., Lanigan, G., Simo, I., Fenton, O., Carfrae, J., & Schulte, R.P.O. (2015). Functional Land
Management for managing soil functions: A case-study of the trade-off between primary productivity and carbon storage in
response to the intervention of drainage systems in Ireland. Land Use Policy, 47, 42–54.
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Reimer, M., Getimis, P., & Blotevogel, H.H. (2014). Spatial planning systems and practices in Europe. A comparatative perspective. In
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et.al. New York, NY: Routledge, 1-20.
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http://kadastralavertiba.lv/profesionali/vertibu-ietekmejosie-faktori/lietosanas-merkis/
Sudmeier-Rieux, K., Paleo, U.F., Garschagen, M., Estrella, M., Renaud, F.G., & Jaboyedoff, M. (2014). Opportunities, incentives and
challenges to risk sensitive land use planning: Lessons from Nepal, Spain and Vietnam. International Journal of Disaster Risk
Reduction. Article in Press, Corrected Proof. http://dx.doi.org/ 10.1016/j.ijdrr.2014.09.009
Tepman, L.N. (2006). Оценка недвижимости: учеб. пособие для студентов вузов, обучающихся по специальности экономики и
управления (2ое изд.) [Real Estate Valuation: Proc. allowance for students enrolled in the specialty of Economics and
Management (2nd ed.)]. Moscow: UNITY-DANA, p. 463.
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http://dx.doi.org/10.1016/j.landusepol.2015.04.011 0264-8377
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The Analysis of Real Estate Market and Economic Fluctuations in Latvia and its
Influence on Real Estate Entrepreneurship
Linda Kauškale1, Ineta Geipele2
1
Riga Technical University, Latvia, Linda.Kauskale@rtu.lv
2
Abstract
In the process of planning of real estate investments and in construction planning extremely important
is a current real estate market phase. The focus of the research is to analyze real estate market and
economic fluctuations in Latvia and particular attention will be paid to how market participants can use
this information. In the research statistical data analysis, logical, historical approach and analysis methods
have been used. The results of the research can be applied by entrepreneurs and for market regulation.
Keywords: construction, real estate, fluctuations, management
Introduction
The relevance of the research is being determined by the factor, that of investments in real estate
operations and real estate development in many cases have long period of implementation, during which
significant changes in real estate market and national economy can be observed. The focus of the research is
to analyze real estate market and economic fluctuations in Latvia and particular attention will be paid to how
market participants can use this information.
Investments in construction projects and real estate operations often has a high level of risk, that is one
of the reasons why it is strongly recommended to analyze real estate market trends, structure, influences and
existing interconnections within market. In the research statistical data analysis, logical, historical approach
and analysis methods have been used. The research object is real estate entrepreneurship in Latvia. The
research subject is real estate market and economic fluctuations in Latvia.
Findings/Results
The research investigates real estate market and economic fluctuation analysis and its influences on
real estate entrepreneurship in Latvia. Macroeconomic development of country affects real estate market in
variety of aspects. Real estate entrepreneurship strongly depends from real estate market and economic
fluctuations.
Conclusions
In business management practice there are variety of external factors that influence entrepreneurship.
Business success often depends on application of different knowlege in risk minimization and searching of a
new business opportunities. It is difficult to avoid all of existing industry risks, but as fluctuations of
indicators of real estate market and national economy are one of significant industry risks that should be
avoided.
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http://dx.doi.org/10.3846/enviro.2014.117
Central Statistical Bureau of Latvia - Economic profitability. Retrieved April, 15, 2015, from
http://www.csb.gov.lv/en/statistikas-temas/termini/economic-profitability-37551.html
Kauškale, L., & Geipele, I. (2015). Foreign Direct Real Estate Investments in Latvia in the Context of the Development of the
National Economy. Proceedings of 16th International Conference “Economic Science for Rural Development 2015”,
Latvia, Jelgava, 23-24 April, 2015. Jelgava: Latvia University of Agriculture, 2015, 241-250.
Global property guide. Gross rental yields – Latvia compared to continent. Last modified July 4, 2014. Retrieved April, 30,
2015., from http://www.globalpropertyguide.com/Europe/Latvia/rent-yields#Gross Rental Yields notes
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Problems of Implementation of Information Technology in the Housing Sector
in Russia
Sergey A. Kirsanov1, Yevgeny N. Safonov2
1
2
"Domodedovo" Russian State University for the Humanities, Russia, ksaimr@mail.ru
"Domodedovo" Russian State University for the Humanities, Russia, ensafonov_55@mail.ru
Abstract
Construction of housing is within the scope of local issues and directly affects the quality of life of the
inhabitants of municipalities. In terms of annual growth rates in Russia housing sector is a source of
constant social tension.
One of the problems is that when conducting housing reforms, the Executive authorities are compelled
to use the information contained in disparate information resources. In this case, for the aforementioned
information resources there are no unified rules of formation of information and a single infrastructure for
data collection in electronic form; similar information in different databases can have substantial
differences. This affects the effectiveness of existing laws, policy programmes.
Significant improvements in the efficiency of the public sector, the formation of a just equilibrium
value of housing services and a significant increase in their quality can be achieved while ensuring the
required level of penetration of innovative technologies, both in governments and in the organization of
the housing complex.
Keywords: information technologies, housing and utilities sector modernization, housing and utilities
amenities uniform information resource, innovative technologies
Introduction
In accordance with the Russian program "Information Society (2011-2020)." Transition to a modern
information society is linked to the creation of information technologies, the development of networks to
access information, the formation of digital content, the development of convenient services for citizens.
Among the main objectives of the Programme highlighted the problem of creation and development
electronic services in the field of public utilities. Fields marked development of the industry at the disposal
of the Government of the Russian Federation of 02.02.2010 №102-p "On Approval of the Concept of the
federal target program" Complex program of modernization and reform of housing and communal services
for 2010-2020. ". Among the basic requirements of the program are the presence of a single database of
municipal information resources. Creating a single data center in the housing sector is a prerequisite for the
exchange of data between governments, providing convenience services for citizens.
Modern information technologies allow organizing the monitoring of utility projects, keep track of
energy consumption, ensure adequate communication between their suppliers and customers. Operational
control of the situation, based on information technologies, it is necessary for the formation of investment
projects, taking into account current payments, planning and control of work, the development of the
industry regulatory framework. Citizens - end consumers of public services, the widespread introduction of
information technologies will allow monitoring the consumption of resources and optimizing their spending.
A significant problem in ensuring a transparent and clear system of settlements between enterprises of
utility providers and owners of apartment buildings is the lack of maintenance of communal resources
consumption metering devices, the lack of systems to collect and analyze this information, and the lack of a
single database of citizens live. To solve this problem you need to implement stringent regulatory
requirements for the presence of metering and create a unified municipal base of information resources,
including automated information gathering, service consumers on the principle of "single window", the
control of unauthorized consumption of resources, exchange of data with industry state automated system
and other measures.
Information technology management, used in the utilities sector include:
• Automated dispatch control system - a set of hardware and software designed to automate real-time
control of geographically distributed processes and livelihoods of communal and housing;
• Automated accrual accounting and processing of payments for housing and communal services;
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• Automated accounting system of water consumption;
• Support for personal accounts up to date on the composition of living and the number of services
provided in the context of service providers;
• To reflect the volume and range of services provided and the calculation of their value;
• Payment of services on the basis of meter readings;
• Consideration of privileged categories of citizens in accordance with legislation to reduce the fees for
public utilities;
• Alerting homeowners about current accruals and debt liabilities to service providers;
• Acceptance of payments for housing and communal services receipts, registration receiving money
through fiscal registrar and others.
In Russia currently creates state information system, which should ensure the completeness, accuracy
and relevance of the information about the state of affairs in the communal area. This information system
will provide a service for the collection, processing and storage in a database of information on the provision
of public services and the management of apartment buildings, major repairs and measures of social support
of citizens. The implementation of such an information system in the form of an Internet portal will be a
centralized resource to date and consistent with which homeowners, organizations working in the housing
sector and the authorities will be able to obtain detailed information on the state of housing in the regions and
the country as a whole. For the convenience of users, the system will be integrated with e-government.
Efficient conversion relationships housing sector involves applying the lessons of its reform in
countries with different levels of socio-economic development. As the analysis of the experience of reform
in Europe, the first stage through which the sphere of public services in the reform process, is to build
cooperation between market participants, in bringing order to calculate and control the quality of services
provided.
The introduction of innovative technologies will allow for a significant reduction in the rate of
increase in the cost of utilities. However, if only to introduce management information systems in the sphere
of municipal authorities, without the introduction of innovative technologies in business, it is our opinion,
the situation can be characterized by strict government control the formation of the cost of utilities.
Controlling the growth of the cost of services can be reduced to a rate of return regulation of municipal
utilities. Such a one-sided regulation is already leading to significant distortions of data received to the
calculation of the regional regulatory authorities at the next tariff increase.
Findings/Results
Under current conditions, according to experts, there are two possibilities of automatic information
system of measurement, reporting and accounting for the consumption of resources in municipal buildings.
First option. The transfer operator of commercial accounting data from individual and house appliances in
settlement centers management companies, where the calculations are carried out according to the
regulations and preparation of payment documents. The second option. Full payment of the applicable
regulations and preparation of payment documents, including the annual adjustment accounts for all types of
resources by the operator of commercial accounting, which distributes management companies payment
documents in both electronic and hard copy.
Expansion of system functions through the installation of devices regulating heat, water and electricity
in order to reduce resource use and create enhanced capabilities for monitoring of municipal engineering
systems and automatic control of the consumption of resources.
Today, such systems are widely used in the European Union, North America and Southeast Asia. In
Russia, such a system for every apartment of water and heat began to establish concern "Techem" under the
name "Data" (REGISTERED in the State Register of measuring №41943-09) and common name Techem
Smart System (Data TSS).
Return on regulated activities to install automatic heat substations in residential buildings with the
installation of devices and automatic control devices and systems for measuring and recording water, heat,
gas and electricity is 2-3 years. They will bring 20-30% reduction of energy using for final consumers,
ensure fair payment for the resources consumers, each consumer motivation to reduce energy consumption.
Energy savings for the end user results in a decrease in fuel consumption of 2-3 in the production and
transportation of energy.
Experts estimate the technical potential to increase the efficiency of final energy use in Russia is 154
million toe (tons of oil equivalent) in buildings - 68 million toe. The industry potential is 41 million toe,
which exceeds the annual energy consumption in countries such as Poland, the Netherlands and Turkey.
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Therefore, the most essential element in ensuring the reduction of energy consumption should be working to
reduce energy consumption by end users in homes using information technology.
Conclusions
With many years of international experience demonstrates the tremendous efficiency of the use of
information and communication technologies in the operation of public utilities livelihood.
Russia was created in the state information system will allow residents to self-assess the value of the
services pay for them, will make it possible to address the problems, send an application for the execution of
works, complaints about the poor quality of services. With this information the system can obtain
information about the suppliers of public services, individual testimony and house meters and more. Creating
a national information system, in our view, will create a single source of information utilities, for the
efficient organization in the municipalities of Russian electricity, heat, gas and water supply and sanitation.
References
Order of the Government of the Russian Federation dated October 20, 2010 № 1815-p. On the state program of the
Russian Federation "Information Society (2011-2020 gg.)."
Order of the Government of the Russian Federation on February 2, 2010 № 102-p. The concept of the federal target
program "Complex program of modernization and reform of housing and communal services for 2010-2020.".
Automated
Information
System
"Housing
and
communal
services»
URL:
http://www.insoft.ru/insoft/products/products_ais_ JKH / Opisanie_AIS_ JKH.pdf
Balikoev AA Correcting course of reforming of housing and communal services of modern Russia: the paradigm,
principles, resources, tools, regional component: Author. Dr. ehkon. Science / AA Balikoev. - Maikop: ASU,
2009. - 59 p.
Bulavinov VE On the creation of the state information system housing and communal services // The practice of
municipal management. - 2013. - № 3. C. 84-89.
Kazan A.Yu. Development of the method of integrated assessment of socio-economic status of municipalities //
Electronic scientific journal "Investigated in Russia". - 2006. - № 43. - S. 426-442.
http://zhurnal.ape.relarn.ru/articles/2006/043.pdf
Kirsanov S.A., Safonov E.N., & Sidorenko, E.A. (2010). Managing an Apartment Building: Organizational, Legal and
Economic Principles: a guide. – Moscow: Integratsya, p. 292
Kirsanov S.A., Safonov E.N. (2012). Problems and Innovations in Providing Information on the Management of
Apartment Buildings. Journal of Economic Integration, 7 (51), 65-73
Kirsanov S.A., Safonov E.N. (2013). Improvement of Public Housing Policy in Russia through an Example of Saint
Petersburg / XI International scientific conference “Management and Engineering- 13”, June 23-26, 2013,
Sozopol, Bulgaria. – p. 556
Kruglik SI Methodological bases of management of housing sphere of cities of Russia: Author. Dr. raekon. Science / SI
Kruglik. - SPb .: Civil Engineering, 2008 - 39.
Makarenya TA Stash SV Problems of regulation and the modernization of enterprises in the sphere of water supply (for
example, the city of Rostov-on-Don) // National interests priorities and safety. - 2012. - № 35 (176). - S. 25-33.
Patudin VM, EA Yurtaykin On the creation of information-analytical center of information processing in the field of
housing MO on the principle of "one window» / URL: http: //www.sm- center.ru/index.php/article/152-odnookno-v-gkh
Sinelnikov TT Development of mechanisms of interaction between government and business: foreign experience and
the Russian practice // News SFU. Technical science. - 2008. - № 1 (78). S. 151.
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Implementation of Energy-Saving Innovations as the Main Direction of
Development of the Building Materials Industry 2
Olga V. Kuzina 1
1
Plekhanov Russian University of Economics, Russian Federation, kuzina.olga.viktorovna@yandex.ru
Abstract
The value of the construction industry for green growth of the Russian economy is identified. The
structure of the building materials industry, indicators of production volumes, the share of exports and
imports of construction materials are analysed. The main factors of high energy consumption in the
construction industry are identified. Main activities to modernize the building materials industry and
"green" growth of the Russian economy as a whole are proposed. The urgency of formation of the
mechanism of energy-saving innovations application in the construction industry is justified. The
methodology of management of the building materials industry development through the introduction of
energy-saving innovations is proposed.
Keywords: energy-saving innovations, building materials industry, "green" economy, energy
consumption
Introduction
Currently forming a new model of the Russian economy is based on the principles of green growth to
reduce energy consumption and improve national competitiveness. The modernization basis of the economy
based on technological innovations and the principles of energy efficiency is founded in the Strategy of
innovative development of the Russian Federation for the period till 2020" (approved 2011), "Energy
strategy of Russia for the period up to 2030" (approved 2009) and "the Basic directions of activity of the
Russian Federation Government for the period until 2018" (approved 2013) in terms of improving
environmental and energy efficiency of the economy through the introduction of energy-saving innovation,
ensuring green growth, adaptation of the economy to climate change.
Not to mention the role of the construction industry as an important part of establishing a new model
of the Russian economy development, solving social problems due to the mass construction of high-quality
and affordable housing, objects of engineering and transport infrastructure, reconstruction of the housing
stock. In these conditions, the building materials industry, on the one hand, must ensure compliance of
production volumes and product mix of enterprises demand for domestic and foreign markets for the planned
pace of construction, on the other hand, to improve the quality, efficiency and sustainability of building
materials to enhance national competitiveness in the global market.
General regulations
"The strategy of development of the building materials industry and industrial construction for the
period till 2020", approved by order of Ministry of regional development of the Russian Federation dated 30
may 2011, No. 262, is aimed at creating conditions for innovative development of the construction industry,
including modernization of the building materials industry, and sustainable growth of the Russian economy
as a whole.
Production of building materials, products and structures for the current period meets the needs of the
construction industry and has a certain potential of production growth. However, production has a low
energy efficiency and degree of production automation and, consequently, high production costs.
There are objective reasons for high energy consumption in the construction industry, including
building materials industry, on the one hand, the imperfection of the existing legal, financial and price
mechanism, weakly stimulating producers and consumers of energy to reduce fuel costs and energy, but, on
the other hand, it should be noted a low volume of new energy efficient technologies, equipment and
materials, as well as the weakness of the information base market infrastructure in this area. The main factor
influencing the overuse of energy resources is the high depreciation of capital equipment, which increases
production costs and makes it less competitive in comparison with foreign analogs.
2
Work is executed at financial support of grants of the Russian humanitarian scientific Fund (RGNF) No. 15-32-01383, No. 15-0200141, No. 15-22-03003
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Modernization of building materials industry should be directed to solving systemic problems of a
structural nature:
• technological backwardness of the building materials industry from a similar production in the leading
countries of the world;
• physical deterioration of the basic production assets of enterprises in the construction industry;
• low competitiveness of construction products, produced using energy intensive technologies on
obsolete equipment;
• insufficient innovation activity of commercial structures.
Findings
In these conditions, the formation mechanism of application of energy-saving innovations contributes
to improving production efficiency, quality and competitiveness of products, reducing the number of
unprofitable enterprises, the production of innovative and energy-efficient materials and designs, improved
construction quality, resource savings and lower costs for construction, reconstruction, maintenance and
repair of buildings and structures.
In addition, an important reserve for the development of building materials industry is the involvement
of technogenic deposits, comprehensive utilization of production wastes to create products of construction
industry, which generally has a positive impact on the environment improvement, the elimination of
accumulated environmental damage.
Conclusions
Methodology of ecological and economic management of energy-efficient innovation in building
materials industry will contribute to the modernization and technological development of the production base
of industrial housing, creating long-term conditions for sustainable development of enterprises and enhance
their competitiveness, green growth of the construction industry and the Russian economy in general.
The use of energy and environmental innovation in construction is a multiplier of growth in related
areas and activities (transport, housing and utilities) that will allow to solve a number of public, social
challenges of the country's development in the future.
References
Basic directions of activity of the Russian Federation Government for the period until 2018: Decree of the Russian
Federation Government of January 31, 2013.
The strategy of development of the building materials industry and industrial construction for the period till 2020:
Decree of the Ministry of regional development of the Russian Federation No. 262 of May 30, 2011.
Kuzina O. (2014) Building materials industry as the basis of formation of the construction industry products / IV
international scientific-practical conference “Modern problems of project management in investment and
construction sphere and environmental management”, 2014, Moscow, Russian Federation, pp. 93-99.
Kuzina O. (2014) "Green" construction and main directions of modernization of the building materials industry / IV
international scientific-practical conference “Problems of safe development of modern society”. Part I. 2014,
Ekaterinburg, Russian Federation, pp. 154-157.
Kuzina O. (2014) The situation of building materials industry enterprises on the modern stage of development of
economy of the Russian Federation / Scientific-practical conference «Economic problems of sustainable
development», 2014, Sumy, Ukraine, pp. 179-180.
Kuzina O. (2015) The development of the building materials industry on the basis of energy-saving innovations in the
Russian Federation / International scientific-practical conference «Options for development and innovation in
pedagogy, economics, law, cultural studies and sociology”, 2015, Volgograd, Russian Federation.
Kuzina O. (2015) The features of functioning and development of building materials industry enterprises of Moscow /
V international scientific-practical conference “Modern problems of project management in investment and
construction sphere and environmental management” 2015, Moscow, Russian Federation, pp. 47-52.
Information construction portal http://www.stroyinform.ru (accessed 14 June 2015).
The official site of Federal state statistics service, Russian classifier of types of economic activity
http://www.gks.ru/metod/classifiers.html (accessed 14 July 2014).
The official website of the Ministry of regional development of the Russian Federation
http://old.minregion.ru/press_office/news/2582.html (accessed 10 June 2014).
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Improving the Assessment of the Environmental Indicators of Investment
Projects Based on the Public-Private Partnership
T.N. Malakhova1, K.P. Kolotyrin2, V. Yakunin
1
Saratov State Agrarian University named after N.I. Vavilov, Russia, shkatulka-girl@yandex.ru
2
Saratov State Agrarian University named after N.I. Vavilov, Russia, kpk75@mail.ru
Abstract
Implementation of environmentally significant activities often associated with the need to attract
significant investment from different sources both public and private. However, investors should be
interested in the profitability of their investments and receiving definite guarantees. For this purpose, the
article describes the methodology of the estimate procedure environmental performance of investment
attractiveness, that take account the high risks and uncertainty projects reviewed. In particular, the authors
suggest the use of an objective function, which they have developed for the assessment of investment
attractiveness of environmental projects.
Keywords: Public-private partnership, investment, risks, greening.
Introduction
Problem formulation. Ecologization of modern economics passes in difficult conditions of economic
crisis increase and worsening of ecological situation. The presence of regional component in this process can
help to resolve the contradictions because exactly at the regional level the information about ecological and
economical situation in this region is concentrated, it allows to make the most effective decisions in the field
of economic and ecologic governance.
The necessity of research conduction. The modern approach to the ecologic governance of industrial
activities should be based on combination of administrative and market mechanisms. The authors of this
article consider that the use of Public Private Partnership instruments should have a positive impact on the
region economics development and on the state of the environment.
This approach requires the creation and elaboration of legislative-legal and economic field,
characterized by its own peculiarities. There are some problems in choosing priority directions of the
economics ecologization, as well as in the economic justification of investment projects.
Thus, for example, in the process of investment project formation it is necessary to choose a criteria
for its assessment that will most accurately reflect the ecological and economic essence of the proposed
project and provide a clear understanding of the results of its implementation. When choosing the criteria the
main problem is the comparability of the different variants, risk management and the environmental
component.
In international practice for assessment and comparison of different investment projects such criteria
are used as NPV, IRR, PI and others. However, for more effective analysis of the represented variants, a
systematic index, that will reflect the influence of the environmental component on the economic effect, is
necessary. It is the use of this index that will enable to highlight and select among the represented projects
those that have a direct environmental focus.
For a comparative analysis the methods of generalization and critical review of the scientific
experience were used. This experience was accumulated at the modern stage in the economic and
environmental fields of science. Methods of economic analysis and synthesis in combination with a
synergistic approach also were used.
The first method of calculating the effectiveness of the investment project is based on Methodical
recommendations for the individual enterprises assessment, the second method is developed by the authors
on the basis of changes in tax and environmental legislation, in particular the Federal Law of January 10,
2002 No. 7-ФЗ "On Environmental Protection" with the latest changes.
As a systematic index the objective function П was taken, the calculation of this function takes into
account the differences between modern and ecological oriented development directions.
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The objective function П can be represented in a generalized form as:
П = П∗ − З = П∗ − (Н + Зм + Зд + Эр + Квл) → МАХ
(1)
Accounting for the impact of the environmental component in the calculation of the objective function
(1) value allows you to present it in the following way:
П = П∗ − З = (П∗ + ПЭ) − (Н − Нкэ + Зм + Зд + Эрк + Квл − Квлк) → МАХ
(2)
Thus, the application of various methods in the evaluation of two investment project variants allows to
obtain different values of the objective function.
The values of the objective function П calculated by these methods are respectively 150 174.74 and 15
120. 45 rubles.
The various values of the objective function elements, as well as taking into consideration the risks
(with their distribution between the members of Public Private Partnership for the second variant of the
investment project) allows to obtain the following values of indexes for the represented project variants
effectiveness assessment:
The values of NPV and PI for the first variant (the calculation horizon is 5 years) will be 4370.35
rubles and 4.6 units, for the second variant their values will be respectively 8596.55 rubles and 8.2 units.
Conclusions
As you can see from the above calculations, taking ecological factor into consideration in the
construction of the financial strategy of the enterprise development and assessment of investments
effectiveness not only will not lead to the deterioration of the company economic condition, but will provide
a better result. Thus, it makes sense to use proposed by authors methodology for assessing the effectiveness
of investment projects aimed to ecological rehabilitation of the economics production sector.
References
Guidelines for the assessment of investment projects (2nd edition). The official publication. M .: Economics, 2000,
Architecture and Housing Policy. No. ВК 477 June 21, 1999).
Evaluation of Public Private Partnership development in Russia. Opinion of Business. Research report. - M .: Center of
the Public Private Partnership development, 2013.
Recommendations for implementation of Public Private Partnership in the Russian Federation. - M .: Center of the
Public Private Partnership development, 2013.
Guidelines for intercluster cooperation on the basis of the environmental risk assessment and implementation of green
technologies into the modern business practices. The principles of cross-border cooperation of the Leningrad
region and the South-East Finland / G.G. Gogoberidze, M.R. Kononenko, Y. A. Lednova, Katja Loven, Pia
Anttila, Olli-Pekka Penttinen. - St. Petersburg, 2013.
K.P.Kolotyrin. Features of the effectiveness assessment of investments in the field of biological waste / K.P.Kolotyrin,
E.N.Eldesbaev // Agricultural Research Magazine – 2015. – No.1. – Pp 69-74.
T. N. Malakhova. The use of modern tools of environmental economics in the field of ecologization of the production
sector in Russia / N. I. Kuznetsov, K. P. Kolotyrin, T. N. Malakhova // Scientific Review. - 2014. – No. 7. Pages 56-60.
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Development of Divided Ownership Rights in Latvia
Renāte Muskate1, Tatjana Tambovceva2
1
2
Riga Technical University, Latvia, Renate.Romanova@inbox.lv
Riga Technical University, Latvia, Tatjana.Tambovceva@rtu.lv
Abstract
As the real estate tax, land cadastral value and rent charge of land increase, the contradictions in
situations of divided real estates have intensified due to mistakes made while reforms of land and
privatization took place years ago.
In Latvia divided ownership rights are regulated by law “About reform of land in the cities of the
Republic of Latvia”, and law “About reform of land in the countryside of the Republic of Latvia”, and
regulations of the Cabinet of Ministers No.735 “Terms about national and municipal land rent”. Although
in the field of real estate valuation discussions constantly take place and new solutions are being
researched regarding the cases of valuation of divided ownership rights, however opinions of various
experts still differ and the viewpoint of the Association of Real Estate Valuation in Latvia is disunited. In
cases of divided ownership rights in Latvia lack unified real estate valuation system, so the real estate
evaluators in Latvia in their work depend on their own experience and subjective point of view.
Keywords: real estate, valuation, divided ownership, municipal land rent, real estate tax, cadastral
value
Introduction
In any situation, including separate ownership rights, a calculation of market value is made by one of
the three generally accepted methods − comparative precedent method, income method or expenses
replacement method. There have been only few researches made concerning the matters of separate
ownership rights of land and buildings. And this matter has become current only in latest years by the
increase of the real estate tax, land cadastral value and rent charge of land. As well as the contradictions in
situations of separate real estate have intensified due to mistakes made while reforms of land and
privatization took place years ago. In Latvia separate ownership rights are regulated by law “Law On Land
Reform in the Cities of the Republic of Latvia” and “Law On Land Reform in the Rural Areas of the
Republic of Latvia”. There are constant discussions in the field of real estate valuation and new solutions are
being researched regarding the cases of valuation of separate ownership rights, however opinions of various
experts still differ and the viewpoint of the Association of Real Estate Valuation in Latvia is disunited.
The comparative method, historical approach method, data analysis and expert assessment method
have been used in the study. The scientific research literature, scientific articles have been analysed, as well
as the work with statistical databases.
Findings/Results
Lack of ownership rights of the land under the building is considered a major encumbrance and such
objects are not marketable, therefore a number of transactions of such objects are limited. To apply identical
coefficient of the lack of land`s ownership rights in a calculation of flat`s market value would be inaccurate,
because in the same housing estate the rent charge of land for the flats with a similar dwelling space may
differ despite the lack of land`s ownership rights. In calculation of the market value of dwelling houses the
lack of land`s ownership rights is included in evaluation with externals or economical depreciation that is
made by the real estate evaluator and based on his own subjective opinion, because there has not been
developed up a unified system regarding the evaluation of such objects. The problems arise in nonstandard
situations, when the real estate evaluator has to resolve individually on the particular object and make a
decision about the land`s actual market value`s assessment or regarding it as equal to a standard market
model.
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Conclusions
In situations of divided ownership rights in Latvia lack unified real estate valuation system, so real
estate evaluators in Latvia in their work depend on their own experience and subjective point of view. In
Latvia separate ownership rights are regulated by law “Law On Land Reform in the Cities of the Republic of
Latvia” and “Law On Land Reform in the Rural Areas of the Republic of Latvia”.
References
Anspaks. R. Dalītā īpašuma problemātikas izpēte un analīze. Izpētes darbs, - 52 p.
Baltruma, D., Freibergs, J. (1999). Nekustamā īpašuma vērtēšana. – Rīga: Veide izdevniecība, - 100 p.
Bauers, E. (1919). E. Bauera Zemes reforma Latvijā. – Rīga: izdevniecība, - 104 p.
Freiberga I. (1998). Likums par zemes reformas pabeigšanu pilsētās - Rīga: Nordik izdevniecība, – 134. p.
Grūtups, A., Krastiņš E. (1995). Īpašuma reforma Latvijā. - Rīga: Mans Īpašums izdevniecība, 368 p.
Group of authors (1990-2000). Zemes reformai Latvijā 10 gadi. – Rīga:Valsts Zemes dienests izdevniecība, - 160 p.
Joksts O. (2006). Zemes reforma Latvijā un tās tiesiskais nodrošinājums 1990.-2005.g. - Rīga: Multineo izdevniecība, –
240 p.
Starptautiskie vadošie norādījumi attiecībā uz īpašuma novērtēšanu Nr. 12 (2004). - Starptautiskā vērtēšanas asociācija,
90 p.
Akerson Cherles, B. (2009).- Capitalization Theory and Technoques Stydy Guide. – Chicago - 174 p.
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Employment Problems and Prospects i the Russian "Green" Building Sector 3
Ekaterina A. Pirozhenko 1
1
Plekhanov Russian University of Economics, Russia, vokatemoscow@mail.ru
Abstract
The paper defines the problems and prospects of development of «green» employment in «green»
building in Russia. It is proved the socio-economic effectiveness of development of «green» building in
Russia. The task of identifying ways of formation of the sector «green» building in Russia and the
creation of new jobs is set. The training programs for specialists in the field of environmentally friendly
building are offered. The author develops measures to encourage businesses to create jobs in the «green»
construction.
Keywords: «green» jobs, «green» building, labour market, employment.
Introduction
The main goal of «green» building is to reduce the consumption of resources and improve the quality
of construction and comfort of the internal environment. According to the International Labour Organization
traditional building consumes 25% to 40% of the world's energy and produces 30% to 40% of total
greenhouse gas emissions. «Green» building can reduce by 70% the amount of construction waste and by
40% use of water compared to traditional construction. According to the US Green Building Council report
in the field of «green» construction there were 8 million jobs in the world in 2013, which is almost 4 times
more than in 2000. Development of the sector of «green» construction and creation of high-performance
«green» jobs is highly important for Russia. It will help to decide the problem of unemployment in the labour
market and the issue of environmental pollution. However, at present this area is just beginning to evolve and
requires new proposals and ideas for development.
With a view to a comprehensive objective study of the improving employment in the field of «green»
building author uses the following methods: economic, statistical, comparative analysis, classification,
analogy, expert and calculated analysis.
Findings/Results
The scientific result of this study is to develop measures to implement activities contributing to the
creation of «green» jobs in «green» construction. The task of determining the level of development of
«green» building in Russia is set by author. It is important to identify the social and economic efficiency of
development of the sphere of «green» construction and implementation in this sector «green» jobs. It is
necessary to define what modern skills and knowledge professionals need in the field of «green»
construction, and offer appropriate training programs. It is valuable to give suggestions for the renewal and
modernization of the equipment in the construction industry, as well as improving the processing and
recycling of construction waste.
Conclusions
The development of «green» building through the creation of «green» jobs solves the problems of
sustainable development. Among them it is worth noting: reducing unemployment, upgrading working
conditions, increasing productivity and improving the environment.
3
This work was supported by the Russian Foundation for Humanities, the project № 14-32-01024.
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References
Basic directions of activity of the Government of the Russian Federation until 2018. Approved by the Chairman of the
Government
of
the
Russian
Federation
31
January
2013.
Retrieved
from
http://
http://www.garant.ru/hotlaw/federal/446770/
Booz Alen Hamilton. U.S. Green Building Council. Green Jobs Study. Retrieved from http://
http://www.usgbc.org/Docs/Archive/General/Docs6435.pdf
Green jobs and skills: the local labour market implications of addressing climate change. OECD LEED Programme.
2010. Retrieved from http:// http://www.oecd.org/regional/leed/44683169.pdf
Green Jobs: Towards decent work in a sustainable, low-carbon world. UNEP, 2008.
International Labour Office. Green jobs in construction: Small changes – big effect. Retrieved from http://
http://www.ilo.org/global/publications/magazines-and-journals/world-of-workmagazine/articles/WCMS_151709/lang--en/index.htm
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Residential Building Management System Features and Underlying Factors
Iveta Puķīte1, Ineta Geipele2
1
Riga Technical University, Latvia, iveta.jaunmarupe@inbox.lv
2
Abstract
In recent years, Latvian property administration industry has made significant changes that have
brought interest to legislators. As a result, five years ago, Law on Administration of Residential Houses
was developed and related Cabinet of Ministries regulations. In addition, a new Law on Residential
Properties is in force, as well as significant changes are in the construction, including the real estate
recovery and rebuilding industry-related legislation.
In turn, for the implementation of real estate management, in accordance with the legislative
framework of good practice and quality management, a system is required, that helps the processes to be
arranged according to their fundamental values, criteria and functions.
The study sets residential property management elements and factors influencing them. The
significance of the topic is set by the developing industry and the requirement for quality and sustainable
management model that includes all interested parties - owners, lessees, tenants, users on the one side,
housing managers from the other and the state, local government and non-governmental organizations
from the third side. The development of this sector as a whole is depended of the quality of residential
housing management process.
Keywords: Residential buildings, management, system
Introduction
Management of real estate has the ownership responsibility imposed on real estate long-term
existence, ensuring maintenance of the property, administering and documenting the processes related to real
estate management. Residential building management is an issue for both Latvian and European countries
where a large percentage of real estate constitutes the housing fund.
The study determines the importance of a factor that the management system is functioning a certain
micro and macro environments, which have their own indicators that directly and indirectly affect the
management system and development.
Residential property management system is a set of interrelated processes that form on a single
objective-driven single entity. The organization of the housing manager influences the prosperity of every
resident, and it requires a competent manager to have success.
Residential house management process is a complex and multi-faceted. The problem in this sector is
the fact that there is no united system for property managers to follow; as a result, there are rare discussions
about effective management model that would be prone to a high-class service and the sustainable
development of the property.
The study aims to explore the residential housing management elements of the system, focusing on the
factors that significantly affect the process quality and sustainable implementation. The main objectives of
the study are: the theoretical and scientific aspects of the research, management system development and
operation, process influencing factors, including macroeconomic factors, data analysis, study the compilation
of results, conclusions and recommendations. Statistical data analysis, quantitative research methods
compilation and analysis of data gathered have all been used in this study.
Findings/Results
Several proposals have been given to improve the situation: to qualify residential building
management systems core values, to find out factors of the operating system, any problems hampering
effective management process with particular attention to the availability of funding and the reduced tax
rates by industry.
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Conclusions
The research results show that residential property management process as a whole has achieved its
goal and objectives, specific to the residential property management sector. An important segment of the real
estate market is the housing market. It is also one of the most complex real estate segments, simply because
without quantifiable economic factors that lead to changes in the market, a major role is also to the
psychological factor. A number of factors, such as the ability to pay, access to finance, structured legal
environment, information feedback all make a direct impact on the development of an effective management
system.
References
Actiņa G., Geipele I., Zeltiņš N. (2015). Planning and Managing Problems of Energy And Energy Efficiency at
Regional and District Level in Latvia: Case Study. The 5th International Conference on Industrial Engineering
and Operations Management (IEOM). Dubai. Proceedings of the 5th International Conference on Industrial
Engineering and Operations Management (IEOM), 1482. - 1488. ISBN 978-1-4799-6064-4, DOI
http://dx.doi.org/10.1109/IEOM.2015.7093843IEEE
Gineviča S., Geipele I. (2014). Management and Utility Payment Problems and Possible Solutions. 55th Riga Technical
University Conference SCEE’2014 “Scientific Conference on Economics and Entrepreneurship", 14.10.2014 17.10.2014, 1. – 2., e-ISBN 978-9934-8275-2-5
Gould S, Hawkins M.(2015) Modeling Multifamily Buildings with eQuest: A Case Study of Prediction versus Reality.
ASHRAE Transactions. 2015, Vol. 121 Issue 1, p1-8. 8p. 2 Charts, 8 Graphs.
Sawyer S., Crowston K., Wigrand R.T., Allbritton M. The social embeddedness of Transactions: Evidence from the
Residential real – Estate Industry. The Information Society, 19: 135 – 154, DOI:10.1080/01972240390209930,
http://web.a.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=13&sid=ccbd8b88-ef7f-4694-9afdc33633b4b930%40sessionmgr4004&hid=4112
Central Statistical Bureau of Latvia (2015). Statistic database. Retrieved from http://data.csb.gov.lv/sq/857
Legislation of the Republic of Latvia (2015). Dzīvojamo māju pārvaldīšanas likums [Law On Administration of
Residential Houses]. Retrieved September, 2, 2015, from http://likumi.lv/ta/id/193573-dzivojamo-majuparvaldisanas-likums
Legislation of the Republic of Latvia (2015). Dzīvokļa īpašuma likums [Law On Residential Properties]. Retrieved
September, 2, 2015, from http://likumi.lv/ta/id/221382-dzivokla-ipasuma-likums
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Territorial Location Impact on Buildings Recovery Value
Nikolajs Rauza1, Tatjana Tambovceva2
1
2
Riga Technical University, Latvia, nikolajs@adarbnica.lv
Abstract
Buildings is the major importance of national economy, real estate market, residential housing,
construction industry and others industries. Also the major importance of real estate management is risk
management, and one of the part of risk management – property insurance. The main sense in property
insurance is building recovery value or reinstatement costs. In every country territorial location impact on
buildings recovery value. It depends of many factors: the national and regional economy of the country,
municipal fees and legislation, technical projects of buildings, relief model, engineering technologies,
labor costs, building materials and products, building machines, costs of transportation. The research
focus sets recovery value (reinstatement costs) elements and factors influencing them. The significance of
the topic is set by the economy and industry in Latvia sustainable risk management model in constructing,
property management and insurance industries in accordance with territorial location impact on building
recovery value. The comparison, data analysis and logical access methods have been used in the study
and the recommendations on the improvement of the situation have been developed.
Keywords: Recovery value, reproduction value, reinstatement costs, restoration cost, real estate
market, property insurance.
Introduction
Recovery value (reinstatement costs) is the major importance in the management of real estate in the
focus of property insurance. Management of real estate has the ownership responsibility imposed on real
estate long-term existence, ensuring maintenance of the property and the processes related to real estate
management. Real estate management is an issue for Latvia where a large percentage of real estate
constitutes the housing fund. The problem is in calculating of the recovery value (reinstatement costs) of the
buildings for property insurance and territorial location impact to the reinstatement costs. In Latvia is no
united system or legislation guidelines of calculating recovery value for buildings.
The relevance of the study is determined by the fact that the solving the problem of territorial location
impact on buildings recovery value, developing united system for real estate management, construction
industry, insurance and regulation basis affect also the country's socio-economic development.
The objective of the study is the territorial location impact on buildings of recovery value
(reinstatement costs) for the detection of the problems in the context of sustainable development and
improvement of the situation. The main tasks of the study are: the theoretical and scientific aspects of the
research, management system development and operation, process influencing factors, including economic
factors, data analysis, conclusions and recommendations. The comparison, statistical data analysis, data
analysis and logical access methods have been used in the study.
Findings/Results
The several following proposals are put forward for the improvement of the situation: the state should
undertake an active role in this process of the solving the problem of territorial location impact on buildings
recovery value, developing united system (buildings recovery value) for real estate management,
construction industry and insurance; and developing of system of obligate property insurance in Latvia.
Conclusions
The results of the study show that territorial location impact on buildings recovery value
(reinstatement costs) is a multi-step process, which requires a comprehensive approach and close attention to
a number of the existing problems in the country. Some factors, such as the access to finance, structured
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legal environment and information feedback - all make a direct impact. All the above mentioned aspects
have a direct impact on the national and regional economy of the country and the development of it.
References
Central Statistical Bureau of Latvia (2015). Statistic database. Retrieved from http://data.csb.gov.lv/sq/857
Legislation of the Republic of Latvia (2015). Dzīvojamo māju pārvaldīšanas likums [Law On Administration of
Residential Houses]. Retrieved September, 12, 2015, from http://likumi.lv/ta/id/193573-dzivojamo-majuparvaldisanas-likums
Legislation of the Republic of Latvia (2015). Dzīvokļa īpašuma likums [Law On Residential Properties]. Retrieved
September,12, 2015, from http://likumi.lv/ta/id/221382-dzivokla-ipasuma-likums
State Land Service (2015). Zemes un būvju izmantošanas veids [Land and Building Use Type]. Retrieved September
12, 2015, from http://kadastralavertiba.lv/profesionali/vertibu-ietekmejosie-faktori/lietosanas-merkis/
Doršs I. Darbaspēka izmaksas celtniecības un remonta darbos. Liepāja: LiePa, 2006. - 193 lpp.
Doršs, I. Dzīvokļa remonta darbi un to izmaksu apzināšana / Ilmars Doršs. Liepāja : LiePA, 2004. 147, [4] lpp.; ISBN
9984754170.
Doršs, I. Ģimenes mājas remontdarbi / Ilmārs Doršs. Liepāja : LiePA, c2009. sēj. <1> : il. ; ISBN 9789984821528 (1).
Doršs, I. Kā aprēķināt celtniecības un remonta darbu izmaksas? : praktiska rokasgrām. pasūtītājiem, celtniekiem un
būvtāmētājiem / Ilmārs Doršs. Liepāja : LiePA, 2002. 118 lpp. : tab.;ISBN 9984654788.
Doršs, I. Materiālu izlietojums celtniecības un remonta darbos : praktiska rokasgrāmata visiem, kuri būvē un remontē
taupīgi / Ilmārs Doršs. Liepāja : LPA LiePA, 2007. 252 lpp. : il. ; ISBN 9984754820.
Central
Statistical
Bureau
of
Latvia
(2015).
Statistic
database.
Retrieved
from
http://data.csb.gov.lv/pxweb/lv/rupnbuvn/rupnbuvn__isterm__buvn/BU0060c.px/?rxid=cdcb978c-22b0-416aaacc-aa650d3e2ce0
The
Ministry
of
Economics
of
The
Republic
of
Latvia
https://www.em.gov.lv/lv/nozares_politika/buvnieciba/statistika__petijumi/
Legislation of the Republic of Latvia (2015). Par apdrošināšanas līgumu [Law On Residential Properties]. Retrieved
September,12, 2015, from http://likumi.lv/doc.php?id=48896&mode=KDOC
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Challenges and Optimization strategy for Feed-in tariffs of Renewable Energy
in CIS countries
Olimjon Saidmamatov1, Sanaatbek Salaev2, Bahtiyor Eshchanov3
1
2
Urgench State University, Department of Economics, Uzbekistan, s_sanat@list.ru
Urgench State University, Department of Economics, Uzbekistan, saidolimjon@gmail.com
3
Academy of Public Administration, Uzbekistan, b.eshchanov@gmail.com
Abstract
Modern life is convincing us that renewable energy technology, policies, strategies should be
disseminated all around the world to provide sustainable development. As an instrument, feed-in tariffs of
renewable energy should be designed considering public finance opportunities, buying power of
consumers in order to tackle administrative barriers as an optimization strategy. The paper provides
evidence from leading countries in the industry, explores ongoing challenges in the application of feed-in
tariff policies, analyses the optimal methodologies to give recommendations to stakeholders.
Keywords: feed-in tariff, renewable energy, developing countries, investment incentives
Introduction
Over the past decade, feed-in tariffs (FITs) have been a major instrument to promote the generation of
electricity by means of renewable energy sources. However, feed-in tariffs have been criticized for being
costly, inefficient, distortive of competitive pricing and, hence, in the long run not compatible with the
creation of a single, liberalized electricity market in which renewable energy sources account for a major
share in total power production (Sijm, 2002). Accordingly, FITs have driven 64% of global wind and 87% of
global photovoltaic capacity. However, the majority of these installations have been installed in developed
countries (UNEP, 2012). The concept of “feed-in tariff” refers to the regulatory, minimum guaranteed price
per kWh that an electricity utility has to pay to a private, independent producer of renewable power fed into
the grid (Huber et al., 2001).
Current FIT methodology in emerging economies
When designing feed-in tariffs, it is important for policy makers to consider the interaction between
the FIT and the existing market structure (UNEP, 2012). Developing countries represent a broad range of
different electricity market structures, including state-owned monopoly utilities (e.g. in much of the
Caribbean), single buyers that purchase power from IPPs (e.g. eastern European countries), and countries
where wholesale power markets have been introduced (e.g. Argentian and Chile) (Besant-Jones, 2006). All
actions oriented to renewable energy development end up with creation of FIT environment. Even cash
premium of FIT can be reduced to zero – by technology improvements or the usage of other public financing
mechanisms – the implementation of a strong enabling regulatory environment will remain a critical success
factor. In this case, countries will target providing financial incentives to make the renewable energy
business models economically viable, rather than capital mobilization of huge investments.
FIT Optimization strategies in CIS countries
Ultimately, a low carbon development growth in the developing world depends on the availability of
resources to finance the solutions that exhibit incremental costs while assuring FIT policy interacts and
harmonizes with other regulatory mechanisms (World Bank, 2011). When the application of FITs in CIS
countries analyzed, it becomes clear that some market infrastructures are heritage from Soviet Union.
However, modern world does not allow mismanaging natural resources from the viewpoint of corporate
social responsibility. The following SWOT analysis identifies ups and downs of the introduction of FITs in
economic conditions of CIS countries. In the case of Central Asia, introduction of FITs can encourage
renewable energy generation from bio masses where the territory is focused on agricultural economy. Hence,
totally modernized agricultural process can generate alternative energy supply to enrich the quality of
electricity delivery process:
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Table 1. SWOT analysis (prepared by author)
Strengths
Creation of employment opportunities on renewable
energy sector
Diversification of energy supply mechanism
Increasing public, business awareness for efficient
usage from renewable energy sources
Storage potential
prediction
and
possibility
of
generation
Opportunities
Economic decentralization of energy trading
Energy and climate change priority are supported on
state level
Active participation of small and medium enterprises in
energy supply
Private sector enrolment in energy delivery process
Weaknesses
Possibility of affecting the quality of soil, water and
biodiversity
Economic viability dependent of regulated tariffs
associated with high investment costs
Insufficient social knowledge and awareness regarding the
opportunities to use renewable energy and the resulting
benefits
Lack of R&D for decision making on regional renewable
energy opportunities of geographic areas
Threats
Barriers of monopolistic market structure against
entrepreneurship on the industry
Technology transfer problems
Lack of government fiscal policies to support renewable
energy programs
Inadequate level of legislation to guide entrepreneurs and
investors;
After identifying four dimensions of the energy market, optimization strategy can be formulated
towards promoting renewable energy technologies with the support of feed-in tariffs. Global evidence
suggests, albeit tentatively, selling the controlling package of shares to experienced foreign firms on the
sphere is more effective that keeping under the State control which leads to diversification of business
portfolios of energy companies. As a result, energy efficiency, decreasing technical and non-technical losses,
promoting renewable energy technologies are listed on the top of business priorities.
Conclusions
Current legislation systems, fiscal constraints, rich renewable opportunities of geographic regions need
scientific-practical improvements at the level of developed countries. Transition from an economy based on
fossil fuels to one based on renewable energy with the support of feed-in tariffs in Central Asian countries is
quite new concept which requires long-term strategy and serious commitment towards its dissemination.
References
Besant-Jones, J. E. (2006). Reforming power markets in developing countries: What have we learned? Washington,
DC: The World Bank Group, Energy and Mining Sector Board. Retrieved Sep. 15, 2014 from
http://siteresources.worldbank.org/INTENERGY/Resources/Energy19.pdf
Design and Performance of Policy Instruments to Promote the Development of Renewable Energy: Emerging
Experience in Selected Developing Countries. Washington, DC (2011): The World Bank Group, Energy and
Mining Sector Board. http://siteresources.worldbank.org/EXTENERGY2/Resources/DiscPaper22.pdf
Feed-in Tariffs as a Policy Instrument for Promoting Renewable Energies and Green Economies in Developing
Countries.
(2012).
UNEP.
Retrieved
Oct.
29,
2014
from
http://www.unep.org/pdf/UNEP_FIT_Report_2012F.pdf
Huber C., Faber T., Haas R., G. Resch. (2001). Promoting Renewables: Feed-In Tariffs or Certificates.
Economics.Vienna University of Technology, Institute of Power Systems and Energy, Vienna.
IWR. (1999). Vergutungssatze fur Strom aus Erneuerbaren Energien (Feed-in tariffs for electricity from renewable
sources of energy). Internationales Wirschaftsforum Regenerative Energien. Retrieved Sep. 5, 2014 from
http://www.uni-muenster.de/Energie/re/wf/E_Preis.html
Sijm.J.P.M. (2002). The Performance of Feed-in Tariffs to Promote Renewable Electricity in European Countries.
Retrieved Sep. 3, 2014 from http://www.ecn.nl/docs/library/report/2002/c02083.pdf
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Signs of Degradation of the Housing Fund in Latvia
Anita Sideļska
Latvia University of Agriculture, Latvia, anitasidelska@inbox.lv
Abstract
The aim of the research was to identify the distribution of Latvian housing fund by the year of the
construction of dwelling houses and by households' satisfaction with the existing housing, as well as to
evaluate the causes of degradation of dwelling houses and possibilities of their prevention. The study is
based on the data of Central Statistical Bureau characterizing the housing fund and on local
municipalities’ information about buildings unsuitable for living, as well as on solutions for their putting
in order. The author considers that the state housing policy needs a common approach to identification,
putting in order and further use of buildings unsuitable for living. The author concludes that there is lack
of legal regulation on identification criteria of dwelling houses that are unsuitable for living. Each
municipality, in case it is considered necessary, draws up its own binding rules for identification of
buildings unsuitable for living and tries to find solutions how to put them in order. The results of
identification of buildings that are unsuitable for living and their putting in order are influenced by the
interest or lack of interest of the owner and their co-operation with the local government, as well as by
resources available and the possibilities for further development of the building.
Keywords: degradation of the housing fund, buildings unsuitable for living, identification criteria.
Introduction
In the second half of the previous century, one of the most vital problems in Latvia was lack of
housing fund and its inadequate management. As a result of migration there was witnessed a strong
demographic growth and the shortage of housing was addressed by setting restrictions on living space per
person as well as by intensive construction of new urban neighbourhoods and villages. By contrast, the
resources for maintenance of historic, already existing dwelling houses were inadequate or were not provided
at all, and the dwelling houses were left without repair for decades. Only then when the dwelling house was
in critical condition, funds were distributed for its overhaul. Also ill-fated human activities (fires, acts of
terrorism, acts of war, etc.) as well as damage caused by natural disasters (storms, earthquakes, volcanic
eruptions, floods, etc.) leave unfavourable effect on the condition of the housing fund. As a result the
volume, availability and quality of housing fund changes, the number of morally and physically worn-out
dwelling houses - buildings unsuitable for living, grows. Putting in order or demolition of buildings
unsuitable for living – slums, has become one of major problems of their owners and of municipalities in the
territory of which these buildings are.
To identify and analyse the current situation, in the study of signs of degradation of the housing fund
in Latvia, there have been used the statistical data of the Central Statistical Bureau and the information
obtained in the census of 2011. Methods of descriptive statistical analysis (graphs, tables, figures), and time
series analysis have been used for data processing and analysis. To find out the identification problems of the
buildings unsuitable for living, the author examined the information gathered by local municipalities about
the unsuitable for living and dangerous buildings existing on their territory, as well as the solutions found to
combat the problem. The method of the empirical research was applied for evaluation of facts and
determination of the overall relationships, as well as for making conclusions, the methods of logical design
and interpretation were used for describing findings and drawing conclusions.
Findings/Results
The structure of Latvian housing fund is characterized by a considerable number of dwelling houses
which were built thirty or more years ago. Only 5% of the total number of dwelling houses in Latvia were
built after the year 2000, but 10% of dwelling houses have been built a hundred or more years ago (CSP,
2013). The largest proportion of buildings built a hundred or more years ago are in such countries as
Luxembourg (21.8%), Denmark (19.7%) and France (Sideļska, 2011).
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Latvia, like almost all EU member states suffered during the Second World War, and in some cities
the housing fund was completely destroyed, therefore in the post-war period an active construction of the
housing fund took place, when in the period of time from 1946 to 1990, 67% of the total number of dwelling
houses were built.
The total area of the housing fund is made up by all dwelling area, including the degraded housing
fund - uninhabited buildings and even buildings unsuitable for living or slums. Abandoned and uninhabited
dwelling houses have become a common sight in the landscape not only in Latvian suburbs and small towns,
but also in Riga and other major cities. In 2011, Riga City Council Property Department recognized 452
buildings in Riga administrative territory as complete or partial slums, in the second largest Latvian city Daugavpils, in 2011 there were listed 58 degraded buildings, but in Jurmala - 146 buildings did not comply
with the requirements of municipal binding regulations (Ozols, 2013).
Comparing information given by different local municipalities, the first criterion for recognition of
buildings as slums is the discrepancy with municipal binding regulations. As the municipal binding
regulations are being developed in each municipality in accordance with its specific objectives, it is
impossible to clearly define what criteria were used to identify the degraded buildings. The author considers
that it is necessary to establish uniform basic criteria for the identification of degraded buildings in the
existing laws and regulations and to leave only the municipality-specific regulations in municipal binding
regulations.
The absence of common criteria is also a reason for lack of uniform accounting of degraded buildings
nationwide. Cadastre information system that registers real estate and its constituent parts - real estate
objects, as well as their characterizing data, currently does not have signs for degradation of the building.
Such information is not available also in any other of the existing real estate accounting systems. Information
about the criteria to determine the degraded buildings, and the number of buildings identified is available in
each municipality, but there is no overall survey.
Handling buildings unsuitable for living is further complicated by the fact that some of them have
been recognized as cultural historical monuments, or some were built by famous architects, giving them
extra significance.
One of the reasons hindering the process of putting in order the buildings unsuitable for living, is the
disordered property rights of these buildings that are associated with long-term legal proceedings and
prohibit the owner to freely dispose of the property, for example, to sell, to demolish buildings, or to attract
additional resources. The local government is entitled to take action and put in order its immovable property,
but it does not have legal authority to demolish the privately owned properties.
The degraded housing fund comprises not only old, worn-out dwelling houses, but also in a long term
unfinished, dangerous buildings. Unfinished newly constructed buildings make up 9% of all buildings
unsuitable for living, and in some cases they may be even more dangerous than the well-aged buildings. Also
in this case a regulatory framework is required that would allow municipalities to influence the process and
make the owner of the building complete the unfinished construction.
In some cases, the local government may have an interest to obtain degraded dwelling house in its
possession and restore or rebuild it so that afterwards it can be used to ensure the municipality functions. To
achieve this, the local government would need the rights to expropriate the degraded property.
Conclusions
In order to identify the number of rundown buildings in Latvia and to work out solutions for putting in
order of such buildings, it is necessary to develop common criteria for identification of degraded buildings.
Laws and regulations should provide local governments with the right to identify the degraded buildings
existing in the territory of the respective municipality and give them the status of a degraded building.
State Land Service should examine the possibilities of complementing the Cadastre information
system with an appropriate sign of degraded buildings. This would make it possible to obtain detailed
information on such buildings that would serve as basis for the development of further action plans and their
implementation, as well as for planning of the necessary resources.
Existence of a national program on reducing degraded housing fund would improve and put in order
the environment as well as it would reduce the number of dangerous objects.
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References
Centrālā statistikas pārvalde (2013) Tautas skaitīšana. 2011. gada tautas skaitīšanas rezultāti. Pieejams:
http://www.csb.gov.lv/statistikas-temas/tautas-skaitisana-28290.html
Ozols R. (2013) Spoku mājas un graustu saimniecība. Kapitāls, Nr. 5, maijs, 46.-50. Lpp.
Sideļska A. (2011) Characteristic of Housing Fund in European Countries. Baltic Surveying ’11, Proceedings of the
international scientific conference of Agriculture Universities of Baltic States. Jelgava, Latvia. Latvian
University of Agriculture. Department of Land Management and Geodesy. Jelgava: LUA, p. 125-131.
Sidelska A., Parsova V. (2013) Criteria of Dwelling Quality. Urban and Regional Data Management. Proceedings of
the Urban Data Management Society Symposium, London, United Kingdom, 29-31 May, 2013, p.13-23.
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Civil Building Management Problems and Solutions for Ensuring the
Sustainable Development of Latvia
Aleksejs Smerdevs1, Tatjana Tambovceva2
1
BIM Beratung für Immobilien Management, Germany, aleksejs.smerdevs@gmail.com
2
Abstract
This document contains the main idea of the doctor thesis, a necessity to make such a research, as well
as the used methodology of research, the content analysis matrix and the design of the doctor thesis from
the point of view of research methodology in social sciences. The references for the used literature are
also provided in terms of this abstract, so that it could be used for presentation in terms of the “56th
International Riga Technical University Conference “Scientific Conference on Economics and
Entrepreneurship (SCEE’2015).
Keywords: management, system, building, optimisation.
Introduction
Due to the fact that Latvia regained its independence just in 1991 and a long period of people’s
transition from planned economy to the open market, the majority of multi-storey dwelling houses are being
managed by state or municipal companies, which do not give the flat owners a real opportunity to influence
the building management processes. The main problems of the building management in Latvia are to be
defined in terms of the thesis in the analytical part of it and the hypothesis should be stated as a result of this
research.
After that the research and analysis of the innovative civil building management models will be made.
The models, which are used in Lithuania and Estonia will be researched and analysed, as these countries
represent the same region and both had the similar transitions from planned economy to open market. In
terms of first quantitative data collection phase the following is to be analysed: information about building
management companies, registered violations against regulations and legal processes, financial and nonfinancial losses, as well as statistical data about state budgets of Latvia, Lithuania and Estonia in the last 5
years.
The next step is to make a survey, in which the attitude to building management companies and main
problems are to be defined. Taking the previous parts into consideration, the authors of the thesis are to
develop a building development system and to implement in in one of the small private building
management companies. The creation of the optimisation program and its implementation should be done in
2 month term and the controlling stage is to take 4 more months. Then the company documents, financial
reports and statistical data are to be analysed for the period of last 6 months. In addition, the second survey is
to me made in order to monitor the effect of the optimisation model implementation and its contribution to
the sustainable development of Latvia. The conclusion part will be made, basing on the results of
optimisation model implementation.
The qualitative data analysis is to be made in analysing the building management documentation and
the corresponding laws and regulations in Latvia and European Union. The analysis of literature sources and
documents should be made using the inductive content analysis in order to spot the latest trends in building
management development in Latvia. The third theoretical research will include the analysis of building
management innovative models in the neighbour countries. After the statement of hypothesis the first
empirical research is to be done – the analysis of statistical data using SPSS software. The second empirical
research is the first survey, which is to detect the main building management problems from people’s point
of view and the third and final empirical research is the second survey, which will evaluate the impact of the
implemented optimization model.
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Findings/Results
Qualitative and quantitative theoretical research cannot give precise numbers and figures, but may
help to spot the trends, which will help in further thesis development. The results of statistical data analysis
using SPSS software and empirical survey will give more precise results and it will be the main basis for the
optimization model development. The main results will be gained in the last stage of the thesis, as the
concrete work of building management optimization model will be analysed.
Conclusions
At this final stage the authors are to interpret the overall results, to prove the hypothesis and the
innovative system suitability for using in Latvian cities, as well as to prove that the civil building
management problems have a significant impact of the country development.
References
Lietas
Nr. C36076614 Lietas arhīva Nr. C-0182-15, Talsu rajona tiesas spriedums, http://
http://www.l2d.lv/v.php?i=126699, 2015.
Mayring, Philipp. Qualitative Content Analysis [28 paragraphs]. Forum Qualitative Sozialforschung / Forum:
Qualitative Social Research, 1(2), Art. 20, http://nbn-resolving.de/urn:nbn:de:0114-fqs0002204, 2000.
Mayring, Ph.. Qualitative Inhaltsanalyse. Grundlagen und Techniken (7th edition, first edition 1983). Weinheim:
Deutscher Studien Verlag, 2000.
Reception and Response: Hearer Creativity and the Analysis of spoken and Written Texts. Eds.: G.McGregor,
R.S.White. London & New York: Routledge 1990.
Reizniece-Ozola: namu siltināšanas īstenošanai traucē lēmumu pieņemšanas process, Valmieras ziņas,
http://valmieraszinas.lv/reizniece-ozola-namu-siltinasanas-istenosanai-trauce-lemumu-pienemsanas-process/,
2015.
"Skonto
būves"
rīcība
robežojas
ar
ļaunprātīgu
kaitniecību,
Būvniecības
portals,
http://www.abc.lv/raksts/abc_raksts/gerhards-skonto-buves-riciba-robezojas-ar-launpratigu-kaitniecibu/, 2015.
Šogad
jumta
atjaunošanas
darbi
paveikti
jau
59
mājām,
RNP,
http://
http://www.rnparvaldnieks.lv/lv/jaunumi/paveikti_jumta_atjaunosanas_darbi, 2015.
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Sustainable Construction Investment in the Construction Sector: Model of
Latvia
Iveta Stamure1, Ineta Geipele2
1
2
Riga Technical university, Latvia, iveta.stamure@rtu.lv
Riga Technical University, Latvia, ineta.geipele@rtu.lv
Abstract
On a global scale and the Europe in the construction industry is undergoing important change, the
changing comprehension and understanding of the construction industry and are set new requirements
relating to energy efficiency, environmental protection, conservation of cultural heritage and the
adaptation of modern society. If the traditional construction will be shifted to a sustainable in the long
term construction will take place in different resource savings that will reduce costs in the future, while
without renouncing the traditional comforts and high quality standards.
The research aims to examine and analyse the state of sustainable construction in Latvia currently
determining the potential development strategy in the future on the basis of world economies experience
and practice.
Keywords: construction sector; construction management; sustainable construction.
Introduction
The global economic crisis, which hit most severely Latvia, forced the construction sector to purify, to
educate and improve, think about survival and future. Therefore, as elsewhere in Europe, in the Latvian
construction sector appeared terms such as: sustainable construction, low energy buildings, green
construction, passive houses, lean construction (ascetic, economic construction) etc.
Consequently, it is concluded that sustainable development meets the needs of current generations
without compromising the needs of future generations. Sustainability is based on the environmental,
economic and social adjustment, ensuring balanced development. Sustainable construction is a complex
approach to construction project planning, design, construction, installation and maintenance, which aim at
reducing the negative impact on the environment and improving people's well-being. [1] It is a way to live
environmentally friendly, without renouncing the modern comforts and traditional quality standards. Thus,
creating a high-quality, environmentally friendly and healthy living space, promotes environmental,
economic and social sustainability in the future, with resulting benefits to any country, including the Latvian
environment, society and the national economy. [2]
The world's sustainable construction has received much attention, it is dedicated to a large number of
scientific researches, as evidenced by the large number of foreign scientist’s publications.
Findings/Results
Today Latvian private houses yearly average consume 100-150 kWh/m² per year of thermal energy,
but low energy houses decreases to 20-25 kWh/m². In existing buildings and new buildings in Latvia there is
inadequate high energy consumption, which is the cause of several problems, such as high cost of energy, the
country's dependence on fossil fuels, in addition to greenhouse gas (GHG) emissions into the air. These
problems possible to deal through the development of low energy buildings. Since energy is constantly
increasing tariffs and conventional fuels resources dwindle inevitably remain more expensive, sustainably
built home is thought out investment in the future. It pays off, despite the relatively higher construction costs
due to the significantly improved housing life cycle indicators. [3] The term "sustainable construction" refers
to a much broader approach to building design and construction, than just the provision of energy efficiency.
Nowadays, there are a lot of different buildings and structures sustainability assessment systems which differ
from each other. Due to practical nature of this rating system they complement each other, improve, a bit
differ in their priorities, but they have one aim - to create a sustainable, comfortable, efficient,
environmentally and people friendly living space. Rating system for evaluation of differences is very
difficult because it is based on each country, regional and even continental climate, national, legal, etc.
characteristics, traditions and standards of living, such as different rating systems in Europe and Australia.
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Conclusions
Based on the research, the research authors concluded that as the main risk factors maybe indicated a
high level of unemployment, poor demographic situation wave of emigration has persisted, household
purchasing power falls. The following risk factors do not contribute to the revival of the real estate market in
Latvia.
Can`t require a green lifestyle, healthy, organic food where people live in hunger and are forced to
choose not the healthiest, but the cheapest available food. Can`t wait for the high added value of the in
everyday suppressed society by unsafe, inaccessible, and inconvenient, unsightly physical environment and
social problems.
Choosing building materials, evaluate their impact on the environment throughout the life cycle
(obtain building product, manufacturing, packaging, installation, use and processing utilization). It is
desirable to give preference to locally sourced, natural, renewable and / or recyclable materials - wood and
other biomass products, clay etc.
Starting to think about the construction of new buildings, to assess how it will best fit into the
landscape, the overall environment and transport infrastructure. The site chosen should not threaten
biological diversity and reinforce the need for transport. It is recommended to give preference to already
populated than intact green area. Attention should also be the subject of emissions and waste (waste water,
soil and air emissions, noise and odours) utilization and mitigation options in chosen location.[4]
During the construction of the building in accordance with any in Latvia still new, but the world tried
and tested concepts: to raise the entire industry, professionals and business expertise, level of education,
competitiveness; support for local businesses, research and innovation; is reduced dependence on expensive
imported energy resources; reduce CO2 emissions into the atmosphere, as well as improve the living space
and living quality in the long term.
In the world practice there are different systems by which to assess whether the building has been
designed and built in a sustainable manner, such as ABGR, AccuRate, BASIX, BEPAC, BREEAM,
CASBEE, DGNB, GREEN STAR, LEED, etc. In Latvia according to the latest data, no building has not
obtained an international rating assessment to be certified buildings in the world according to accepted
practice.
References
Tambovceva T., Geipele I.and Geipele S., (2012) Sustainable Building in Latvia: Development and Future Challenges.
No: ISEE 2012 Conference "Ecological Economics and Rio+20": Abstracts and Full Papers "Sustainable
Building, Green Building, Green Building Assessment, Sustainable Development", Brasil, Rio de Janeiro, 16.19. june, 2012. Rio de Janeiro: International Society for Ecological Economics - ISEE, 2012, CD.
Geipele I. and Kauškale L., The Influence of Real Estate Market Cycle on the Development in Latvia,” in Procedia
Engineering, vol. 57, pp. 327-333, 2013 [Modern Building Materials, Structures and Techniques - MBMST
2013], ISSN: 1877-7058; http://dx.doi.org/10.1016/j.proeng.2013.04.044.
Geipele I., Geipele S., Stāmure I. Models of financing housing fund renovation in Latvia. [finansēšanas modeļi
dzīvojamā fonda renovācijai Latvijā. - Riga, RTU Publishing House, 2012. - 227 p.
Stāmure, I., Kamola, L., Geipele, I. Practical Aspects of Sustainable Construction in Latvia. In: 5th International
Conference on Industrial Engineering and Operations Management, United Arab Emirates, Dubai, 3-5 March,
2015. Dubai: IEOM Society, 2015, pp.2041-2048. ISBN 978-0-9855497-2-5. ISSN 2169-8767. Available from:
doi:10.1109/IEOM.2015.7093926
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KPI in Construction Industry
Aleksandrs Švaikovs1, Kristine Fedotova2
1
2
Riga Technical University, Latvia, Shvaikov.a@gmail.com
Riga Technical University, Latvia, Kristine.Fedotova@rtu.lv
Abstract
The research focus is the examination of the aspects of the The Construction Key Performance
Indicators for the detection of the urgent problems in companies development. Data analysing and
observation have been used in the study and the recommendations on the improvement of the situation
have been advanced.
Companies who successfully improve their performance against industry KPIs are firms that will win
more business and build profitable long term relationships with repeat clients, sub-contractors and
consultants.
Keywords: Construction performance measures, management, construction industry.
Introduction
The intent of this research about The Construction Key Performance Indicators at today’s multipolar
world are becoming more relevant, which characterized by multiple centers of economic power and activity,
has shaken up Non-efficient old business models and approaches, posing numerous challenges for
construction companies. But the new macroeconomic environment also offers a wealth of opportunities for
those companies that can favourably position themselves in the changing landscape. Global and medium
companies will need to be exceptionally agile, efficient, client, consultants and Sub-contractors focused to
compete successfully with increasingly powerful emerging-market players and to achieve high performance
in the construction markets for that collectively the industry continues to raise its works and provides the
benchmark against which firms and their clients will judge their performance over the coming years.
The aim of research is the examination of the Key Performance indicators aspects in construction
companies for the detection of the urgent problems and finding solutions for KPI driving reliability growth
while guiding companies choices for improving construction effectiveness and efficiency. A useful
construction industry KPI lets you identify the issues causing companies works effects and helps to select the
right strategy to either support or correct the actions producing the result. It is very important that when we
select a range of KPI detection structure you pick those important directions that let to improve results
depend on a market position and company’s target in future. The main tasks of the study are analysing
theoretical aspects and international research group’s dates, summarization of the results of the research and
provide with further suggestions on top priorities that need to be improved in individual case within the
context of the companies that have participated in the development of the performance measurement system,
the joint analysis of these preliminary results has already developed a new area for collaboration and
interactive learning. The comparison, data analysis and logical access methods have been used in the
research.
Findings/Results
The complex of managing an organization today requires that managers and members on board be
able to view performance in several areas. No single measure can provide a clear performance target or focus
attention on the critical areas of business growth which depend on today`s corporate mission. A set of
measures that balances financial and operational measures should be the basis of any performance
measurement system. The study revealed that the top ranked KPIs were distributed among three perspectives
links: financial, customer and internal structure of the company. These results indicated that the construction
organizations realized that the traditional financial measures are not an inclusive measure of organization
performance anymore. Insufficiency of traditional financial measures led to increased interest of nonfinancial measures, such as external customer satisfaction, safety, quality, cost, productivity, time, staff
turnover and effectiveness of planning. The KPIs, produced to address these seven areas, present the
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industry’s performance by 10 headline measures. Seven of the measures relate to project performance and
three are measures of company performance namely, quality of service and work, external customer
satisfaction, and market share.
Conclusions
Construction Key Performance (KPI) is the measure of an activity that is critical to the success of any
organisation. Performance measurement is one of the important aspects of company management. The
major objective of this study was to explore the most important indicators for measuring company
performance as perceived by large contractor or client working in Baltic States and explore importance of
KPIs and benchmarking in building construction industry. The 10 indicators consistently perceived as being
highly important can be used as a basis to build a model for evaluating the performance of construction
companies and also can be considered as the first step for developing a competitive benchmarking approach
and companies structure modification.
Atsauces
Mark Prisk, Nick Boles Minister of State, Department for Business, Innovation and Skills, UK Industry Performance
Report, based
on UK
Construction Industry Key performance indicator, 2014 year
http://constructingexcellence.org.uk/kpi-reports/
Martin Print, Department of Trade & Industry, Overview of the Construction Industry KPIs
http://web.achilles.com/news/articles/pdf/128/Martin-Print-KPI-Presentation.pdf
Roberts, M., Latorre, V., 2009. KPIs in the UK’s construction industry: using system dynamics to understand. Rev.
Constr. 8 (1), 69–82.
Skibniewski, M.J., Ghosh, S., 2009. Determination of key performance indicators with enterprise resource planning
systems ingengineering construction firms. J. Constr. Eng. Manage. 135 (10), 965–978.
Alarcon, L.F., Grillo, A., Freire, J., Diethelm, S., 2001. Learning from collaborative benchmarking in the construction
industry. In: Proc. 9th Conference of International Group for Lean Construction, Singapore.
Toor, S.R., Ogunlana, S.O., 2010. Beyond the ‘iron triangle’: stakeholder perception of key performance indicators
(KPIs) for largescale public sector development projects. Int. J. Project Manage. 28, 228–236.
Constructing Excellence in partnership with Department of Business Enterprise and Regulatory Reform, 2009. UK
Industry PerformanceReport. London, UK. Available at:
http://www.constructingexcellence.org.uk/resources/publications/default.jsp
European Foundation for Quality Management (EFQM), Shares what works, 2011. The EFQM excellence model.
Available at: http://www.efqm.org/en/
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Mājokļu pieejamības un mājsaimniecību kredītspējas funkcionāla saistība
Jānis Vanags 1
1
Rīgas Tehniskā Universitāte, Latvija, Janis.Vanags@rtu.lv
Kopsavilkums
Pētījuma aktualitāte cieši saistīta ar atšķirīgo mājokļu pieejamību dažādām sociālām grupām, no
vienas puses, un to kredītspēju, no otras puses. Mājokļu pieejamība un kredītspēja zinātniskajā aprindās
tiek uzskatīti par nozīmīgākajiem valsts ilgtspējīgas attīstības sociāla rakstura elementiem. kas ir vieni
no nozīmīgākajiem dimensijām. Tēmas aktualitāti pastiprina mājokļa iekļaušanās katra sabiedrības
indivīda pamatvajadzību grupā. Regulētas tirgus ekonomikas ietvaros nepiciešams radīt tādus
priekšnoterikumus, lai mājokļu pieejamība būtu sasniedzama pēc iespējas lielākam cilvēku skaitam katrā
konkrētā valstī un viņam pieņemamā laikā. Pretējā gadījumā valstij jāuzņemas rūpes par to cilvēku
dzīves apstākļu uzlabošanu, kuriem mājokļu pieejamība ir kļuvusi par nesasniedzamu mērķi vidējā un
ilgākā laika periodā. Daudzos gadījumos politiķu centieni mazināt nacionālā ienākuma sadales
nevienlīdzību, kas ir nozīmīgākais mājokļu pieejamību mazinošais faktors, nedod gaidītos un solītos
rezultātus. Tas attiecas arī uz Latviju un daudzām citām “jaunajām” ES dalībvalstīm. Mājokļu
pieejamības sociāli ekonomiskie aspekti nereti ir cieši saistīti ar attiecīgā sabiedrības indivīda jeb
konknkrētas mājsaimniecības kredītspēju – iespēju ne tikai saņemt kredītu, bet arī to atdot līgumā
paredzētajā laikā. Hipotētiski tiek pieņemts, ka pastāv cieša funkcionāla sakarība starp sabiedrības
indivīdu un/vai mājsaimniecību kredīspēju un viņiem nepieciešamā mājokļa pieejamību. Neskatoties uz
mājokļu pieejamības un kredītsdpējas lielo sociāli ekonomisko nozīmi, daudzās ES valstīs un citās
attīstītās valstīs, šie rādītāji tiek aprēķināti pēc atšķirīgas metodikas, kas apgrūtina starpvalstu pētījumus
un pieredzes pārņemšanu tām valstīm, kurās mājokļu pieejamība ir zemāka par sabiedrībā pieņememo
līmeni.
Atslēgas vārdi: mājokļa pieejamība; kredītsdpēja; tautsaimniecība; mājsaimniecību ienākums;
ilgtspējīga attīstība un tās sociālās dimensijas.
Ievads
Pētījuma aktualitāte un nozīmīgums tiek saistīts ar ilgtspējīgas attīstības jautājuma aktualizāšanos ne
tikai augstāka attīstības līmeņa valstīs, bet arī mazāk atīstītās pasaules valstīs, lai šajā valstīs kopējiem
spēkiem būtu radīti nepieciešamie apstākļi iedzīvotāju pamatvajadzību apmierināšanai, tādējādi mazinot
teorisma un militāro konfliktu cēloņus un stihiski veidojušās bēgļu plūsmas draudus. Līdz šim veiktajos
pētījumos par mājokļu pieejamību un mājsaimniecību kredītspēju lielākā uzmanība veltīta šo jautājumu
ekonomiskajām dimensijām. Tas kārtējo reizi pierāda mehāniskās pieejas popularitāti ne tikai politisku
lēmumu pieņemšanā, bet arī to izplatību akadēmiskajā vidē, kas nereti dod vienpusēju un nepilnīgu
priekšstatu par pētāmo problēmu sabiedrībā un tās iespējamajiem risinājumiem. Tāpēc pētījumā uzmanība
tiek veltīta mājokļ upieejamības sociālajiem, ekonomiskajiem un arī politiskajiem jeb institucionālajiem
aspektiem.
Pētījumā tiek konstatēta attīstītās valstīs pastāvošā viedokļu dažādība par nozīmīgās sociāli
ekonomiskās kategorijas - mājokļa pieejamība saturu un aprēķināšanas metodiku, kas apgrūtina ne tikai
staptautisko salīdizinājumu izdarīšanu, bet rada mānīgu priekšstatu par Latvijā vai kādā citā konkrētā valstī
sasniegto mājokļu pieejamības līmeni un šā rādītāja izmaiņu rakstuu un tendenci. Neapšaubāmi mājokļu
pieejamība ir cieši saistīta ar attīcīgā sabiedrības indivīda jeb vienā mājoklī dzīvojošas mājsaimniecības
kredītspēju. Tāpēc pētījuma mērķis tiek saistīts ar hipotēzes pārbaudi par funkcionālās saistības esamību
starp šiem jēdzieniem. Mērķa sasniegšanai tiek noteikti tā saturam atbilstoši uzdevumi, nozīmīgākie no tiem
– identificēt nozīmīgākos mājokļu pieejamību un kredītspēju veidojošos elementus, noteikt to izmaiņu
raksturu un tendenci; salīdzināt dažādās valstīs lietot jēdziena “mājokļu pieejamība” un “kredītsdpēja”
sociāli ekonomisko saturu, iegūtos rezultātus izmantot Latvijas apstākļiem pieņemamāka sklaisdrojuma
izstrādei; noteikt funkcionālo un korelatīvo saistību starp mājokļu pieejamību un kredītspēju Latvijā un citās
salīdzinājumā iekļautajās ES valstīs ilgākā laika periodā.
Pētījuma metodika
Pētījuma mērķa sasniegšanas nolūkā un uzdevumu izpildei tiek piemērotas savstarpēji saderīgas un
papildinošas pētījuma metodes, kas veido vienotu pētījuma metodiku. Plašākā mērā tiek piemērota
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sistēmiskas pieejas metode, kā arī analīzes un sintēzes, indukcijas un dedukcijas, kā arī atbilstošas
matemātiskās metodes. Metodikas piemērošanas rezultātā tiek identificēti nozīmīgākie mājokļu pieejamību
un mājsaimniecību kredītspēju veidojošie sociāli ekonomiskie un politiskie aspekti. Attiecīg mājokļu
pieejamību un mājsaimniecību kredītspēju veidojošās vides izpētei, šos rādītājus ietekmējošo faktoru
identifikācijai, to kvantitatīvo un kvalitatīvo rādītāju izmaiņu rakstura un tendences noteikšanai. Bet minēto
rādītāju funkcionālās saistības noteikšanai tiek piemērotas attiecīgās matemātiskās metodes. Pētījumā
piemērotās metodikas ietvaros tiek izdarīti nozīmīgākie secinājumi par pētījuma rezultātiem un izstrādāti
priekšlikumi vadības lēmumu pieņemšanai.
Pētījuma rezultāti
Pētījumā iegūtie rezultāti tiek iekļaujas vairākās grupās – ekonomiskie, sociālie un pārvaldības jeb
institucionālie rezultāti. No ekonomiskā viedokļa nozīmīgākaie rezultāti tiek saistīti ar mājsaimniecību
ienākumiem, to izmaiņu raksturu un tendenci. Pētījumā lielākā uzmanība tiek veltīta mājsaimniecībām ar
augstāku nepieciešamību uzlabot dzīves apstākļus saistībā ar mājokli, kā arī šo mājsaimniecību ienākumiem
un kredītspējai. Ņemot vērā mājokļa piejamības un kredītspējas cēloņsakarību, pētījuma rezultāti par
mājsaimniecību rīcībā esošajiem ienākumiem,
šo ienākumu atbilstību un atšķirību no vidējiem
ienākumiemvalstī, tiek attiecināti uz minēto rādītāju izmaiņām. Pētījumā tiek iegūti interesanti rezultāti par
mājokļu pieejamības un mājsaimniecību kredītspējas izmaiņām citās valstīs, kā arī šo rādītāju absolūto un
relatīvo izmaiņu salīdzinājumā. Pētījuma rezultāti izmantojami tālākiem pētījumiem par mājokļu pieejamību
un mājsaimniecību kredītspēju, ņemot vērā valsts iekšējā un ārējā vidē notikušās izmaiņas saistībā ar tajā
dominējošajiem draudiem un iespējām. Pētījuma rezultātus var izmantot valsts sociāli ekonomiskās politikas
plānošanai un konkrētu pasākumu izstrādei mājokļu pieejamības un kredītspējas paaugstināšanai
iedzīvotājiem ar zemākiem ienākumiem.
Secinājumi
Ilgtspējīgas investēšanas un ilgtspējīgas vides veidošanas nepieciešamību nosaka pasaules ekonomikas
globalizācijas procesu intensitātes pastiprināšanās un salīdzinoši augsts sociāli ekonomiskās krīzes izraisošo
draudu līmenis ārējā uzņēmējdarbības vidē. Darmštates ilgtspējīgas investēšanas modelis ir viens no
pirmajiem mēģinājumiem izdarīt būtiskas izmaiņas ārējā investīciju vidē, kuru īstenošana varētu radīt
būtisku pavērsienu ilgtspējīgai attīstībai atbilstošas investīciju vides veidošanā. Darmštates modelī iekļautais
kritēriju skaits tiek uzskatīts kā pārāk liels un to piemērošana praksē tiek saistīta ar tirgus dalībnieku
uzvedību reglamentējošo normatīvo aktu skaita ievērojamu palielināšanos, valdības izdevumu krasu
pieaugumu un jauniem korupcijas draudiem, kā arī atsevišķu tirgus ekonomikas pašregulācijas procesu
efektivitātes mazināšanos. Darmštates investēšanas modeļa pilnveidošanā tiek ņemtas vērā identificētās
nepilnības modelī un aktuālākās iezīmes ārējā uzņēmējdarbības vidē, kā arī izstrādātie ilgtspējīgas
investīciju vides pamatnosacījumi. Pilnveidotajā Darmštates investēšanas modelī tiek panākta tā atbilstība
ilgtspējīgu investīciju vidi veidojošajiem pamatelementu sociāli ekonomiskajam un ekoloģiskajam saturam.
Atsauces
Brassil, Margaret M. The Creation of a Federal Partnership: The Role of the States in Affordable Housing. Albany:
State University of New York, 2010.
Tighe R.J., Mueller J.E. The Affordable Housing Reader. New York: Routledge. 2013. ISBN: 978-0-415-66937-5
Hecht B.L. Developing Affordable Housing: A Practical Guide for Nonprofit Organizations, 3rd Edition. New York:
Routledge. ISBN: 978-0-471-74346-0
Angel S. Annual Demographia International Hoausing Affordability Survey: 2015. Stern School of Business, New
Yourk University. 2015. Pieejams: http://www.demographia.com/ Skatīts: 09.09.15.
Cox W. International Housing Affordability in 2014. New Geography. Pieejams: http://www.newgeography.com/.
Skatīts: 09.09.15.
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Terminētās uzturēšanās atļauju ietekme uz nekustamo preču tirgu un
tautsaimniecību: izvērtēšanas metodikas konceptuāls ietvars
Jānis Vanags 1, Didzis Usenieks2
1
Rīgas Tehniskā Universitāte, Latvija, Janis.Vanags@rtu.lv
Kopsavilkums
Terminētās uzturēšanās atļaujas pēdējos gados ir kļuvušas par vienu no aktuālakajiem sociāli
ekonomiskajiem un politiskajiem jautājumiem. Pēc ekonomiskās krīzes daudzās ES valstīs vērojams
salīdzinoši zems ekonomiskās izaugsmes temps, kura galvenais cēlonis ir pieprasījumu veidojošo
tautsaimniecības dalībnieku pārmērīgā piesardzība un pasivitāte preču un pakalpojumiu patēriņa groza
palielināšanā. Pēdējos gados pieprasījuma aktivizācijai valsts līmenī tiek izstrādātas dažādas programmas,
kas vērstas uz ārvalstu investoru piesaistīšanu un pieprasījuma aktivizēšanu dažādās tautsaimniecības
nozarēs, izmantojot terminētās uzturēšanās
atļaujas. Tādējādi ārvalstu investoru piesaistīšanā
ekonomiskās konkurētspējas papildināšanai tiek izmantoti politiskie pasākumi – par valstī noteiktu
maksājumu jeb naudas ieguldījumu noteiktā pasākumā bagātākie nerezidenti iegūst tiesības uz noteiktu
laiku uzturēties attiecīgajā valstī. Latvija šajā ziņā nav izņēmums – pēdējos 5 gados terminētās
uzturēšanās atļaujas ieguvuši vairāk kā 80 tūkstoši ārvalstnieku, iegādājoties mājokļus un citas
nekustamās preces par summu, kas pārsniedz vairākus desmitus mlj.Eiro. Bet atklāts paliek jautājums par
šo investīciju ietekmi uz investīciju plūsmas ilgtspēju un vēlamām pārmaiņām nekustamo preču tirgū, kā
arī visas tautsaimniecības attīstības raksturā un tendencē. TUA izsniegšanas gadījumā investora
ekonomiska rakstura maiņas darījums tiek papildināts ar politiska rakstura ieguvumu – uzturēšanās
atļauju, kas sabiedrībā nereti tiek uztverta kā negatīvais blakusefekts, nevis kā ekonomiskās attīstības
katalizators. Šā negatīvā blakusefekta mazināšanai nepieciešami pierādījumi par terminētās uzturēšanās
atļauju izsniegšanā iegūtā labuma ietekmi uz nekustamo preču tirgu un visu tautsaimniecību. Pēc būtības
šis ir plašs pētījums, tāpēc tā sekmīgai īstenošanai nepieciešams izstrādāt izvērtēšanas metodiku.
Atslēgas vārdi: terminētās uzturēšanās atļaujas; metodika; nekustamo preču tirgus; tautsaimniecība;
ilgtspējīgas investīcijas; darba vietas un nodarbinātība.
Ievads
Pētījuma aktualitāte un nozīmīgums tiek saistīts ar nepieciešamību aktivizēt valstī ienākošo
investīciju plūsmu un sekmēt darījumu intensitātes palielināšanos nekustamo preču tirgū, kas var rezultēties
straujākā tautsaimniecības izaugsmē pēckrīzes apstākļos, kas daudzas ES valstis cīnās par polzitīvu
ekonomiskās darbības rezultātu. Terminētās uzturēšanās atļaujas ir kļuvušas par globāla rakstura pasākumu,
kuru plaši izmanto ne tikai valstis ar salīdzinoši zemu attīstības līmeni, bet arī attīstītākās pasaules valstis.
Pēc būtības tā ir tirgošanās ar pilsonību, kas kļūst arvien papulārāka apstākļos, kad investori kļuvuši
piesardzīgāki pēc saņemtās “mācības” globālajā finanšu krīzē. Laikā, kad valstu dabiskās un iegūtās
konkurētspējas priekšrocības ārējās investīciju plūsmas piesaistē nedos gaidīto efektu, politiķi ķeras pie
drosmīgākiem paņēmieniem, iekļaujot globālajā konkurtētsēpjā jaunu dimensiju – politiskos motivatorus.
Pēdējos gados arī Latvijas politiķi ir iesaistījušies šajā ārvalstu investoru piesaistes kampaņā. Īpaši ražīgs
šajā ziņā bija 2014.gads, kad izsniegto atļauju skaits gada laikā pārkāpa 10 tūkstošu slieksni un palielinājās
par nepilniem 50% salīdzinājumā ar 2013.gadu. Tas nozīmē, ka ārvalstniekus interesē ne tikai Latvijas
tautsaimniecība, bet arī Latvijas sociālā un kultūras vide, kas investoriem vairo garīgās intereses un rada
pozitīvas emocijas. Protams, neapšaubāma ir investoru pozitīva ietekme uz nekustamo preču tirgu un
tautsaimniecību kopumā. Bet cik tā liela, un kas būtu jādara, lai šī ietekme būtu klielāka – atbilde uz šiem un
daudziem citiem jautājumiem tiks raksta turpmākā pētījuma gaitā.
Pētījuma metodika
Sistēmiskās pieejas metode un kritiski radošā metode šajā pētījuma metodikā ieņem nozīmīgāko vietu
un tā tiek papildināta ar citām savstarpēji saderīgām un atbilstošām zinātniskās pētniecības metodēm.
Metodikas piemērošanas rezultātā tiek identificēti nozīmīgākie terminētās uzturēšanās atļauju pārvaldības jeb
institucionālie, sociāli ekonomiskie un ekoloģiskie aspekti. Nozīmīgāko aspektu apzināšana paver plašas
iespējas citu metožu piemērošanai, lai iegūtu skaidrāku priekšstatu par pētījuma objekta un priekšmeta
savstarpējo saistību un ietekmējamību, tās izmaiņu raksturu un tendenci. Izstrādātās metodikas piemērošanas
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ietvaros tiek iegūta papildus inmformācija par citu ES un ārpus ES esošo valstu pieredzi investoru piesaistes
ekonomiskos aspektus papildināt ar politiskajiem aspektiem.
Pētījuma rezultāti
Pētījumu rezultāti atklāj izsniegto TUA komplekso ietekmi ne tikai uz uz NPT un tautsaimniecību, bet
arī uz visu valsts sociāli ekonomisko un politisko sistēmu. Šī ietekme veidojas sarežģītu sociāli ekonomisko
un institucionālo procesu mijiedarbības rezultātā vienas sistēmas ietvaros. Piemērotās metodikas ietvaros tiek
noteikti šajā sistēmā esošo elementu kvantiatīvie un kvalitatīvie aspekti, kā arī to attīstības raksturs un
tendence. Pētījuma autori labi apzinās, ka TUA ienāk atvērtā sociāli ekonomiskā sistēmā un ietkmē šīs
sistēmas elementus – to veikstspēju, kā arī darbības pozitīvos un negatīvos efektus. Pētījuma rezultātā tiek
identificētas tautsaimniecības nozares un tautsaimniecības dalībnieki, kuri lielākā mērā ir saistīti ar TUA-ām,
to izsniegšanas rezultātā radītajiem pozitīvajiem un negatīvajie efektiem, kā arī blakusefektiem. Pētījumā
piemērotās metodikas ietvaros tiek noteiktas turpmākā pētījuma nozīmīgākās dimensijas un apzināta
nepieciešamība vispusīgi izvērtēt pozitīvos un negatīvos efektus, kā arī blakusefektus, kas rodas katrā no
dimensijām jeb sistēmas apskšsistēmās un to mijiedarbības rezultātā.
Secinājumi
Zinātniskais jautājums par TUA izsniegšanas ietekmi uz NPT un tautsaimniecību ir pietiekoši
sarežģītsd, lai tiktu izstrādāts tā izpētei piemērotas metodikas konceptuāls ietvars un pati metodika.
Koncepcijas ietvaros tiek detalizēti apzināt pētījuma objekts un priekšmets, noteiktas to nozīmīgākās
kvantiatatīvās un kvalitatīvās dimensijas, kuras turpmāko pētījumu laikā tiek analītiski izvērtētas, kā arī
iespēju robežās un atbilstoši npeiciešamībai noteikts to izmaiņu raksturs un tendence.
Neapšabāma ir TUA ietekme uz NPT un tautsaimniecību kā sociāli ekonomisku, politisku un
ekoloģisku sistēmu, bet atklāts paliek jautājums par šīs ietekmes pozitīvajiem un negatīvajiem efektiem un
blakusefektiem. Atbilde uz šo zinātnski un prakstiki politisko jautājumu ir cieši saistīta ar izstrādātās
metodikas prasmīgu un efektīvu piemērošanu. Izstrādātā metodika atzīst, ka TUA koncepciju iespējams
pilnveidot, ņemot vērā ārējā vidē dominējošos PESTE draudus un iespējas, tāpēc ārvalstu investoru
piesaistīšanai jāizmanto jauni, inovatīva rakstura paņēmieni, kuros potenciālie ekonomiskie labumi
investoram tiek papildināti ar politiska rakstura ieguvumiem.
Atsauces
Blanpain R., Nakakubo H., Takashi A. Regulation of Fixed-term Employment Contracts: A Comparative Overview.
Kluwer Law International, 2010. ISBN-13: 978—90-411-3356-4
Montier J. Behavioural Investing: A Practitioners Gide to Applaying Behavioral Finance. 2007, Hoboken. Wiley
Finance, John Wiley & Sons. ISBN – 13: 978-0-470-51670-6
Sauvant K.P., Orintino F. Improving the International Investment Law and Policy Regime: Options for the Future.
Helsinki, Ministry for Foreign Affairs of Finland. ISBN – 13: 978-952-281-218-6
Sweeney G., Gordon J. Real Estate: The Sustainable Investment – Strategies for the Next Generation. 2011. ISBN-13:
978-14-6-0933-831
Gamal Y. Buying citizenship: Which nations are affordable? CNBC. 14.11.2013. Pieejams:
http://www.cnbc.com/2013/11/14/. Skatīts: 09.09.15.
Hall. Z.D. The countries offering passports to lure property investors. Financial Times. Pieejams: http://www.ft.com/ .
Skatīts: 09.09.15.
Henderson A. Are economic citizenship prolgrams worth it to get second passport? Nomad Capitalist. Pieejams:
http://nomadcapitalist.com/2013/11/13/economic-citizenship-programs-worth/. Skatīts: 09.09.15.
Gittleson K. Where is the cheapest place to buy citizenship? BBC, 04.06.2014. Pieejams
http://www.bbc.com/news/business-27674135. Skatīts 09.09.15.
Leijen M. Greece Offers the Cheepest Residence-by-Invetment Option. Henley and partners. 11.07.2015. Pieejams:
https://www.henleyglobal.com/industry-news-details/greece-offers-the-cheapest-residence-by-investmentoption/. Skatīts: 09.09.15.
219
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Real Estate Due Diligence Process in International Real Estate Transactions in
Latvia
Janis Viesturs1, Armands Auzins2
1
Riga Technical University, Latvia, janis.viesturs@edu.rtu.lv
2
Abstract
International real estate transactions, especially in countries with different legal systems, are
characterised by the fact that each transaction is unique in its complexity, confidentiality, different risk
factors, and the limited availability of information regarding the real estate. The Due Diligence (DD)
process is an instrument that can help avoid risks and assist in making important decisions regarding real
estate transactions. The term “Due Diligence” has a number of different meanings. The aim of this paper
is to determine the etymology of this term and to identify its most common contemporary meaning. Each
DD process is to be recognized as a project requiring management because of the potential number of
individuals that could be involved, i.e. experts from various fields, including: real estate agents, lawyers,
attorneys, licensed conveyancers, notaries (in the countries of the Civil Law system), tax consultants,
economists, facility managers, asset managers, property managers, land surveyors, appraisers of
immovable property, architects, builders, etc. The professional organisation of the DD process is the key
factor in making an informed decision regarding whether or not to engage in an international real estate
transaction.
Keywords: Due Diligence, Vendor Due Diligence, Due Diligence framework, Real estate
investigation, International real estate transactions
Introduction
Real estate transactions consist of many stages. Of utmost importance for informed decision-making is
the investigation of the real estate and the transaction process. Especially in international real estate
transactions, the process of “reasonable investigation” or DD helps investors to get the required information
for making a well-informed decision.
The main subject of this research is the DD process in real estate transactions in Latvia. The study
consisted of researching the etymology of the term “Due Diligence” and how the term is used today. The
authors of the research identified the experts who are traditionally most often involved in real estate
transactions and made a determination of who among them would be competent enough to manage the real
estate DD process in Latvia. A group of 18 professional real estate agents from the Latvia Real Estate Agents
Association “LANĪDA” were surveyed for the purpose of receiving their professional feedback and opinion
about DD process. A number of various research methods were employed for the research, including the
historical and comparative analysis of DD process, as well as expert assessments. The current legislation of
Latvia was analysed and appropriate literature reviewed during the research.
Findings and Results
The research resulted in being able to determine the historical origin of the term “Due Diligence” and
how it is applied presently. The term is used in many areas: company mergers and acquisitions, in human
rights research, civil and criminal law, real estate transactions, etc. The definition of DD is not generally
governed by any law. Each area and country applies the term according to its traditions and the specific
attributes of the object to be investigated. “Reasonable investigation” is the most common synonym for the
term “Due Diligence”. In real estate transactions it is necessary to carry out the DD process as an
interdisciplinary management project in which the most important aspect is the coordination of experts from
the various branches. These expert professions may or may not be regulated by law. For example, the real
estate agent profession is not a regulated profession in Latvia.
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Conclusions
The research brought to light an effective DD framework, identified the individuals and professionals
involved in the process and indicated the DD process as a management project. The self-evaluation of real
estate agents themselves and the European standard (LVS EN 15733:2010) „Services of real estate agents –
Requirements for the provision of services of real estate agents” illustrates that real estate agents could be
the experts qualified enough to manage the DD process in Latvia. In order to elevate the status of real estate
agents and to define the real estate agent as a regulated profession in Latvia, it is proposed to make
amendments to the following legislation: „On the Regulated Professions and the Recognition of Professional
Qualifications”, „The Comercial law” and others legislative acts for the purpose to define a real estate agent
as regulated profession.
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SUBSECTION
“URBAN AND REGIONAL DEVELOPMENT“
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Introduction of Action Research into Public Sector Human Resource Policy
Planning and Implementation in Latvia
Iveta Baltiņa1, Maija Šenfelde2
1
2
Riga Technical University, Latvia, iveta.baltina@rtu.lv
Riga Technical University, Latvia, maija.senfelde@rtu.lv
Abstract
The aim of this paper is to survey significant literature on qualitative research method – action
research (AR) and to find what advantages and shortcomings AR provide in policy learning process.
Based on literature review author illustrates if introduction of this method in development of public
administration policy can be a seen as a solution for implementation of unified HR policy and practice in
both administrative levels (national and self government).
Keywords: Action research, public administration, human resource policy.
Introduction
Participation in the PhD course „Methods in participatory and interactive research” forced us to think
about the process of human resources policy planning and implementation in Latvian public sector. Lack of
cooperation and collaboration between central government and municipalities is observed in the process of
policy development and implementation. Reform process in public administration and civil service shows
that initiatives aimed to introduce unified relationships for all employees in both public administration levels
(central government and municipalities) has failed since 1994. Public Administration civil service reform
shows that inclusion of municipal employees in the civil service system has been a problem ever since the
beginnings of reform of public administration. Already in 1994 the Law "On State Civil Service" intended to
introduce civil service in municipalities considering that the municipality carries out substantial public
administrative functions. However, this idea was not implemented due to the strong local lobby. Last time
when the State Chancellery - main responsible body in Latvia for governance of public employees - failed to
introduce unified employment relationship for both public administration levels was in 2013. Reform
initiative with the objective to introduce unified state and local government service faced very huge
resistance from the side of local government officials and was not confirmed by the government. Existing
situation shows that the conflict between the state and local government exists already for more than 20
years. Nowadays, when integration of the economic and social processes of the states, globalisation, labour
force mobility and diversity, IT development, ageing of society cause several challenges for public
administrations it is vitally important to ensure effective governance. This objective is hard to achieve if
there continues to exist different and fragmented groups of administration and employees, which hinder
uniformed and transparent human resource management system and creates a false impression of the number
of employees in public administration.
Karlsen and Larrea (2014b, p.150) argues that it is not easy to generate process in which new concepts
and frameworks can be co-generated given that there are conflicting positions that must not be avoided and
overcoming traditionally dichotomised positions in terms of class or political parties that make actors
reluctant to participate. Analysis of empirical studies on HRM and public service performance outlines role
of political leaders and elected members as one of the challenges in development of effective HRM strategies
and systems in public administration. Julian Gould-Williams (2010) point out that the extent to which HR is
introduced in organisations and work units is likely to depend on the role and influence of political leaders
and elected members.
Literature shows that AR as a method and part of policy learning process tries to overcome this
challenge. Therefore purpose of this paper is to find what advantages and shortcomings AR provide in policy
learning process and if introduction of this method in development of public administration policy can be a
seen as a solution for implementation of unified HR policy and practice in both administrative levels
(national and self government) by generation of new knowledge and collective knowing by involvement of
different stakeholders in HR policy development and implementation process.
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The article has been prepared based on theoretical literature review on qualitative, participatory
methods and its advantages and challenges in policy learning process.
Findings/Results
Anticipated outcome of PAR is an action in which mobilization tends “to change, generate, or evaluate
practices and policies” (Young, 2006, p.500). According to authors point of view this method can be
considered as one of the horizontal policy coordination instruments where researchers participate in the
development process and helps all stakeholders develop collective knowing. This can be pursued through
dialogue between different actors and can only develop over time between actors that regularly meet and
interact with each other (Karlsen and Larrea, 2015). This requires that the main responsible body for
development of public administration reforms and HRM strategy – the State Chancellery - performs
following tasks:
1) Find followers. This can be done by developing partnership network where representatives (both
politicians and practitioners) of those local governments which are interested in development of
collective knowing and development and well – being of the people working in their organisation are
presented. This requires construction of an environment abundant in intangible assets: coalitions,
networks and other “soft” structures which enrich day-to-day access to knowledge, experience and
dialogue for a wide range of stakeholders.
2) Develop and agree on the core vision - a long-term perspective in managing people and consideration
of people as potential assets rather than merely variable costs.
3) Change participation of researchers from passive to active role. Existing practice when researchers
and experts participate in the policy development process passively by producing reports and
recommendations should be changed by active involvement of researchers and experts into policy
development process. Hoverer it should be taken into account that researchers cannot design the
learning process of policy makers on their own. Researcher brings his or her ideological background to
the process (Karlsen and Larrea, 2014c, p.150).
4) Create AGORA where dialogue and collective knowing can be developed and ensure regular meetings
where interaction between different stakeholders can happen.
Conclusions
AR offers a radical alternative to knowledge development as a collective, self-reflective inquiry for the
purpose of improving a situation in a community or in a marginalized group of individuals (Koch, Selim, &
Kralik, 2002; Maguire, 1987).
We can define the role of the AR for policy makers and researchers as generation of conditions for
practice. McTaggart, 1997 argue that AR fosters collaboration among participants and researchers. Thus, AR
is empowering, as it promotes capacity development and capacity building in all who participate
(MacDonald 2012, p.46). According to Karlsen and Larrea (2014b) dialogical approach between policy
makers and researchers requires complex compound of: shared vision, trust, honest dialogue, readiness to
mutually influence and be influenced.
To conclude we can say that AR is a method for creation of collective knowing where following
elements are of the most importance: different stakeholders with different background, meeting place or
agora, dialogue, data recording and time. AR is time consuming method, because generation of change takes
time. Timing and dialogue between different actors are points which should be critically assessed by policy
makers. Example of HRM policy development process of Latvia shows that role of the dialogue in decision
making process is underestimated. Therefore we can conclude that AR could be considered as horizontal
policy coordination instrument into policy development process and can be a seen as a solution for
implementation of unified HR policy and practice in both administrative levels (national and self
government) of Latvia.
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References
Armstrong, M. (2009). Armstrong's handbook of human resource management practice. London: Kogan Page
Publishers, 8-31.
Baltina, I. (2012). Overview of changes in public administrations of latvia and estonia provoked by economic crisis.
Journal of Faculty of Business Management, University of Forestry, 2/2012 Volume 33, 53-58.
Chandler, D., & Torbert, B. (2003). Transforming inquiry and action interweaving 27 flavors of action research. Action
Research, 1, 133-152.
Danahue, A.K., Selden, S.C., & Ingraham, P.W. (2000). Measuring Government management capacity: a comparative
analysis of city human resources management systems. Journal of Public Administration Research and Theory,
10(2), 381-412.
Gillis, A., & Jackson, W. (2002). Research methods for nurses: Methods and interpretation. Philadelphia: F.A. Davis
Company.
Gould-Williams, J. (2010). Human Resource Management. Public Service Improvement Theories and Evidence. Edited
by Ashworth, R., Boyne G. and Enthwistle T., Oxford: Oxford University Press, 120-142.
Hood, C., & Lodge M. (2012). Into an age of multiple austerities? Public management and public service bargains
across OECD countries, Governance 25(1), pp.79-102.
Hou, Y., Moyniham, D.P.,& Ingraham, P.W. (2003). Capacity, management and performance: exploring the links.
American Review of Public Administration, 33(3), 295-315.
Karlsen, J. and Larrea, M. (2014a), Editorial: Interaction between research and practice. International Journal of Action
Research, 10 (2).
Karlsen, J. and Larrea, M. (2014b), The contribution of action research to policy learning: The case of Gipuzkoa
Sarean. International Journal of Action Research, 10 (2), 129-155.
Karlsen, J. and Larrea, M. (2014c), Territorial Development and Action Research Innovation Through Dialogue.
England: Gower
Karlsen, J. (2015), The importance of creation of Collective Knowing in Interactive Research. Presentation of lectures.
Kelly, P. J. (2005). Practical suggestions for community interventions using participatory action research. Public Health
Nursing, 22(1), 65-73.
Koch, T., Selim, P. & Kralik, D. (2002). Enhancing lives through the development of a community-based participatory
action research program. Journal of Clinical Nursing, 11, 109-117.
MacDonald, C. (2012). Understanding participatory action research: a qualitative research methodology option.
Canadian Journal of Action Research 13 (2), 34-50.
Maguire, P. (1987). Doing participatory action research: A feminist approach. Massachusetts: University of
Massachusetts Press.
McCutcheon, G. and Jurg, B. (1990). Alternative Perspectives on Action Research. Theory into Practice 24 (3)
Summer.
McTaggart, R. (1997). Participatory action research. New York: State University of New York Press.
Pålshaugen, Ø. (2009). How to generate knowledge from single case research on innovation. International Journal of
Action Research, 5(3), 231-254.
State Chancellery, Republic of Latvia. (2015). Report on Centres of Government in the EU Member States, 99-103.
State Chancellery, Republic of Latvia. (2013). Ex-post evaluation of the "Guidelines for the Development of the Public
Administration Policy for 2008-2013”, Gala ziņojums par valsts pārvaldes politikas novērtējumu un
priekšlikumiem
nākamajam
plānošanas
periodam,
23-67.
Retrieved
from
http://www.mk.gov.lv/lv/esstrukturfondi/vk-realizetie-projekti/strukturaloreformuistenosana/reformunovertejumi-un-petijumi/.
Selenger, D. (1997). Participatory action research and social change. New York: Cornell University.
Totterdill, P. (2015). Closing the Gap: The Fifth Element and Workplace Innovation. European Journal of Workplace
Innovation, 1 (1), 55-74.
Whyte, W. F. (1991). Participatory action research. Thousand Oaks, CA: Sage.
Young, L. (2006). Participatory action research (PAR): A research strategy for nursing? Western Journal of Nursing
Research, 28(5), 499-504.
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Model of the Factors Influencing Competitiveness of the Latvian Fisheries
Sector’s Cluster
Inese Biukšāne1
1
Riga Technical University, Latvian State Institute of Agrarian Economics, Latvia, Inese.biuksane@inbox.lv
Abstract
The aim of the research is elaboration of the model of the factors influencing competitiveness of the
Latvian fisheries sector’s cluster. Based on the studied scientific literature the research provides an
improved definition of the sector’s competitiveness and defines the factors influencing the
competitiveness of the sector. As a result of the analysis the author discovered that there are several
internal and external social, economic, political and environmental factors which influence the
competitiveness of the Latvian fisheries sector cluster. It is advisable to the institutions involved in
fisheries policy-making to take into account the identified factors, influencing the competitiveness, and
their changes when making and improving the general policy of the sector.
Keywords: Competitiveness, factors, fisheries.
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ISBN: 978-9934-8275-3-2
Influence of the EU Structural Instruments on the regional development:
Case of Bulgaria
Ivaylo Ivanov
University of Forestry, Sofia, Bulgaria, e-mail: ihivanov@hotmail.com
Abstract
The paper presents results of study of influence of the EU Structural Instruments on the regional
development in Bulgaria by analysis of data set of actually paid amounts for the period 2007–2015
(August). The findings are concerning of three types of regions in Bulgaria: statistical zones; statistical
regions and districts. The results show unequal distribution of the financial resources; not significant
dependence between paid amounts from the EU Structural Instruments per capita and GDP per capita on
local level and positive moderate correlation between paid amounts from the EU Structural Instruments
per capita and average rate of development of employees. The list of policies and actions include trainings
in project management; financing of innovative projects; finance projects that create new jobs in less
developed regions and etc.
Keywords: EU, structural instruments, regional development, Bulgaria.
Introduction
The regional policy of the European Union (EU) aims economic growth and improving quality of life
in regions and cities. The EU structural instruments help local authorities, business and non government
organisations to supplement the lack of financial resources for: research and innovation; development of
information and communication technologies; more competitive small and medium-sized business and a
low-carbon economy. The aim of study is to investigate influence of the EU Structural Instruments on the
regional development in Bulgaria. The regions, classified as level NUTS 3 according to EU legislation, are
object of the study. The tasks are analysis of the implementation of projects funded by the EU Structural
Instruments and evaluation of influence of projects over the regional economy. The data set are obtained
from the Unified Management Information System for the EU Structural instruments in Bulgaria and they
are for the period January 2007 – August 2015. Also are used data from the National Statistical Institute of
Bulgaria.
The influence of the EU Structural Instruments on the regional development is assessed by using
statistical methods such as: analysis of structure; regression and correlation analysis; averages and
dispersion. The analysis of the implementation of projects funded by the EU Structural Instruments is based
on the share of actually paid amounts from contracted amounts. The evaluation of influence of projects over
the regional economy is made by using such indicators as dependence between paid amounts from the EU
Structural Instruments per capita and GDP per capita and by correlation between paid amounts from the EU
Structural Instruments per capita and average rate of development of employees under labour contract.
Findings/Results
The analyses of results on national level show that the actually paid amounts on middle of August vary
between 78.5% for Operational Programme (OP) Transport and 92.8% OP Human Resources Development.
OP Regional Development is one of the problems. The actually paid amounts for this programme are 83.1%
and it is below the total paid amounts for all programmes (85.3%).
On regional level, the data shows unequal distribution of the financial resources. The range of paid
amounts per person is 720.28 BGN (approx. 368.27 EUR). The minimum is in Sliven (117.23 BGN or
approx. 59.94 EUR) and maximum is in Sofia (capital) (837.51 BGN or 428.21 EUR). The standard
deviation is 142.51.
It is found that there is not significant correlation between paid amounts from the EU Structural
Instruments per capita and GDP per capita (Figure 1).
The positive moderate correlation between paid amounts from the EU Structural Instruments per
capita and average rate of development of employees under labour contract is observed (r2=0.436).
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GDP per capita, BGN
13000
JAM
12000
11000
VAR
PER
10000
BGS
PAZ
9000
GAB
RAZ
MON
8000
DOB
VRC SML
HKV
7000
VTR
SHU
RSE
6000
SFO
KRZ
SLV
SLS
5000
100
200
TGV
SZR
PVN
LOV
SOF
PDV
VID
BLG
300
400
500
600
700
800
900
Actually paid amounts from the EU Structural Instruments per capita, BGN
Figure 1. Correlation between actually paid amounts from the EU Structural Instruments per capita and GDP
per capita
Legend: BGS – Burgas; BLG – Blagoevgrad; DOB – Dobrich; GAB – Gabrovo; HKV – Haskovo; JAM – Yambol; KNL –
Kyustendil; KRZ – Kardzhali; LOV – Lovech; MON – Montana; PAZ – Pazardzhik; PDV – Plovdiv; PER – Pernik; PVN – Pleven;
RAZ – Razgrad; RSE – Ruse; SFO – Sofia; SHU – Shumen; SLS – Silistra; SLV – Sliven; SML – Smoly; SOF – Sofia (capital); SZR –
Stara Zagora; TGV – Targovishte; VAR – Varna;VID – Vidin; VRC – Vratsa; VTR – Veliko Tarnovo
Conclusions
The some of policies and actions through that influence of the EU Structural Instruments on the
regional development will be increased include trainings in project management; financing of innovative
projects; finance projects that create new jobs in less developed regions and etc.
References
Council of Ministers. The Unified Management Information System for the EU Structural instruments in Bulgaria.
Retrieved from http://umispublic.government.bg/
Judrupa, I. (2010) Influence of the Human Resources on the Regional Competitiveness of Latvia. In: The Role of
Human Capital in the Development of the Countries and Regions of Central and Eastern Europe. Polija, Toruņa:
Dom Organizatora, 2010. pp.239-244.
Kamola, L. (2015) Education as the Factor Influencing of the State Economic Development. In: Mediterranean Studies
Abstracts Eighth Annual International Conference on Mediterranean Studies, ed. by Gregory T. Papanikos,
Greece, Athens, 30 Mar-2 Apr., 2015. Athens: Athens Institute for Education and Research., 2015, pp.44-45.
Kamols, U., Ivanova, S., Kamola, L. (2014) Industrial Development Latvia and its Major Cities and Towns. In: ХII
International Scientific Conference „Management and Engineering ‘14”: Conference Proceedings. Vol.2,
Bulgaria, Sozopol, 22-25 June, 2014. Sozopol: TU Sofia, 2014, pp.1026-1035.
National Statistical Institute. Statistical data. Retrieved from http://www.nsi.bg/en
Жечева-Радева, И. (2014). Интегриран подход за териториално развитие програмния период 2014-2020 г.
Management and Sustainable Development, 2014, 5 (48). 17-21.
Кузманова, М. (2014). Използване на системата от ключови показатели за ефективност в управлението на
организациите. Management and Sustainable Development, 2014, 1 (44). 6-10.
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Rīgas apkaimju nozīme pilsētas ilgtspējīgā attīstībā
Inesa Pavlova1, Tatjana Survilo2, Uldis Kamols3
Rīgas Tehniskā universitāte, Latvija, inesa.pavlova@rtu.lv
Rīgas Tehniskā universitāte, Latvija, tatjana.survilo@rtu.lv
3
Rīgas Tehniskā universitāte, Latvija, uldis.kamols@rtu.lv
1
2
Anotācija
Viena no šobrīd aktuālākām problēmām ir pilsētu dzīvojamo rajonu (apkaimju) attīstība un to
ilgstpēja, ar kuru saskaras teju visa Eiropa. Problēmas nozīmīgumu apliecina veikto pētījumu apjoms gan
valsts, gan starptautiskā mērogā. Ilgtspējīgas attīstības jēdziens ir balstīts uz šāda veida sistemātisku
domāšanu. Tā palīdz izprast pašiem sevi un savu pasauli. Saskaroties ar sarežģītām un nopietnām
problēmām, tās nevar risināt tādā pat veidā, kā tās radījām mēs paši, bet tās risināt gan varam. Viens no
ilgtspējīgas attīstības pamatprincipiem ir, lai nākamām paaudzēm tiktu nodrošināta ne sliktāka dzīves
vides kvalitāte kā pašreizējā. Pētījuma mērķis ir izpētīt un izvērtēt, kāda ir nozīme Rīgas apkaimēm –
Ziepniekkalnam, Imantai, Ķengaram, Pļavniekiem un Purvciemam, pilsētas ilgstpējīgā attīstībā. Pētījuma
ietvaros tiks analizēti Rīgas pilsētas plānošanas dokumenti, analizētas pētamās apkaimes, analizēti
iedzīvotāju aptaujas dati un tiks veikts pētījums dzīvokļu tirgus situācijai un investoru klātbūtnei
pētāmajās apkaimēs. Apkopojot pētījumā iegūtos rezultātus, tiks izstrādāti risinājumi, lai veicinātu
pilsētas vienmērīgu un ilgstpējīgu attīstību.
Atslēgvārdi: Apkaime, pilsēta, ilgstpējīgs
Ievads
Rīgas pilsētas viens no raksturīgākajiem mājokļu tipiem ir dzīvokļi un pētāmās apkaimes ir
„guļamrajoni”, apkaimes, kur dominē daudzdzīvokļu ēkas. Tādas pašas apkaimes (rajoni) atrodas arī
Rietumeiropā un arī Austrumeiropā, bet dzīves vide un mājokļu kvalitāte gan ir manāmi atšķirīga.
Attīstītā un ilgtspējīgā pilsētā plānošanas mērķim jābūt - veidot savas pilsētas to telpisko formu un
infrastruktūru, kas visiem iedzīvotājiem nodrošina piemērotu un ērtu mājokli, labklājību, tai skaitā darba
iespējas savā vai tuvākajā apkaimē, vispusējo aprūpi, iespējas pārvietoties bez grūtībām un izvēli, kā
patīkami pavadīt savu brīvo laiku.
Rīgā ir daudz apkaimju, kuru apbūvē dominē padomju laikā būvētas daudzstāvu dzīvojamās ēkas ar
sērijveida dzīvokļiem, kuru kvalitāte uz šodienu neatbilst mūsdienu kvalitātes prasībām un ilgstpējīgas
attīstības principiem, kuri ir noteikti Rīgas pilsētasplānošanas dokumentos. Lielākais trūkums, kas ir
saskatāms pētāmajās apkaimēs – vietējo pakalpojumu trūkums, atklāto teritoriju trūkums, bērnu laukumu
trūkums, iespēja vienlīdzīgi attīstīties gan kultūras, gan sporta jomā, kā arī praktiski nav iespējams atrast
darbu savā apkaimē.
Analizējot Rīgas pilsētas plānošanas dokumentus: Rīgas ilgtermiņa attīstības stratēģiju līdz
2030.gadam (turpmāk Stratēģija Rīga-2030), Rīgas teritorijas plānojumu līdz 2018.gadam (turpmāk RTP2018) un Rīgas attīstības programmu līdz 2020.gadam (turpmāk RAP – 2020), tika konstatēti vairāki trūkumi
- radītas vairākas interesantas ēkas, arī ēku grupas, bet vide kopumā vairumā gadījumu nav ieguvusi jaunu,
radikāli atšķirīgu, mūsdienu līmenim atbilstošu sakoptības pakāpi. Par piemēru, var minēt Ziepniekkalnu, kur
ir uzbūvēta ēka Ozolciema ielā 10/4 un Dižozola ielā, tās struktūra pilnīgi identiska blakus ēkām, tikai krāsu
gamma un logu parametrs nedaudz mainīta, parasta daudzstāvu lielpaneļa ēka, bez estētiskuma, kur blakus
ēkai ir bedre ar atkritumiem bez norobežojošas sētas, pašai ēkai jau ir vizuāli defekti, kas rada aizdomas par
jauno projektu ēku kvalitāti un ilgtspēju. Tas nebūt nav vienīgais gadījums, bet tikai mazs ieskats kādā Rīgas
nostūrītī. Kā arī RTP-2018 trūkst programmas pilsētas labiekārtojumu attīstīšanai. Ļoti minimāli ir darīts
padomju laika apkaimju pārveidošanā tā, lai šīs teritorijas atbilstu šodienas prasībām un īpašumu struktūrām
– tam par iemeslu bija moratorija noteikšana iekškvartālu apbūvei, bet redzot kā nīkst padomju laiku
apkaimju iekšpagalmi, bērnu laukumi, kur ir nodrupis betons ar nolauztām padomju laika šūpolēm, liekas, ka
esam iestiguši padomju laikā. Uzceļot, vienu jaunu bērnu rotaļu laukumu ar divām šūpolēm, vienu
smilšukasti un vienu slidkalniņu uz 100 bērniem, jautājums neatrisināsies, jo viss ātri nolietosies, jo tas būs
vienīgais sakārtotais laukumiņš kvartālā. Tas atkal ir tikai viens mazs ieskats lielas problēmas risināšanā.
Protams, nevar gaidīt, ka visus līdzekļus ieguldīs tikai apkaimju attīstībā, bet vismaz to attīstīt kaut kādā
pakārtotā secībā, nevis radīt haotisku un neadekvātu pilsētas ainavas skatu ar nesaprotamu arhitektoniski
nesavienojamu apbūvi.
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Analizējot RAP-2020 investīciju plānu, nākas secināt, ka lielākā daļa ieplānoto investīciju nenotiek
pēc paredzētā plāna. Kā piemēru var minēt, ka 2014.gadā bija jāuzsāk sliežu rekonstrukcija 4. un 7. tramvaja
maršrutam, lai veidotu zemās grīdas tramvaju sliedes, tai skaitā vēl ir plānots attīstīt jaunu tramvaja līnijas
izbūvi līdz Dreiliņiem, iekļaujot Pļavniekus un Purvciemu, bet minētās aktivitātes vēl nav pat uzsāktas ne
publiskās apspriedēs, ne dzīvē, tikai masu medijos izskanēja informācija par iepirkumu jauniem tramvajiem
Pārdaugavā. Šie projekti būtu jāīsteno līdz 2020.gadam, tā paredz RAP-2020. Tādas novirzes no investīciju
plāna grafika ir daudz un dažādas, kas apliecina pilsētas plānošanas dokumentu izstrādes neefektivitāti un
neprofesionalitāti.
Kopumā pilsētas apbūves tendence un pilsētas struktūrā rada tādu kā haosu, jo nav vienotas
plānošanas sistēmas, bet tikai tāda kā blokveida, izmētāta. Visu problēmu pamatā ir īpašumu tiesību
ierobežojumi, kas radās ar 20.gadsimta beigām un radot situāciju, kad uz 2014.gada 1.janvāri tikai 39% no
kopējās zemes īpašumu platības pilsētā pieder Rīgas pilsētas pašvaldībai, pārējie 61% ir privātīpašnieku
īpašumā un šie rādītāji turpina augt, jo Rīgas dome turpina pārdot tai īpašumā piederošos zemes gabalus
investoriem. Šī situācija rada divējādas sajūtas, no vienas puses var skatīt pozitīvi, jo mazāk līdzekļu aiziet
nelietderīgi izmantotai zemes uzturēšanai, kas pāriet investoriem, kuri uzbūvē jaunu projektu, radot
komfortablu dzīvošanas iespēju rīdziniekam.
Pēc Centrālās statistikas pārvaldes datiem pētāmajās apkaimēs vidēji ir 75% dzīvokļu ir privatizēti,
ņemot vērā, ka šobrīd iedzīvotāju aktivitāte savas ārtelpas uzlabošanā ir zema, kas ir ”iesakņojies”
iedzīvotājos vēsturiski, tad Pašvaldībai ir jāizvērtē un jādomā, kā nākotnē pārliecināt dzīvokļu īpašniekus
padomāt par savu dzīvojamo ēku uzlabojumiem un arī energoefektivitātes pasākumu īstenošanu, jo šajā
aktivitātē ir Eiropas Savienības līdzfinansējums 50% apmērā.
Svarīgi, lai tiekievērotas Stratēģija Rīga – 2030 nostādnes un katrā apkaimē ir vienlīdzīgas iespējas
attīstīties, pilnveidoties un dzīvot, kas šobrīd netiek ievērots. Piemēram, Imantā ir pieejams Kultūras nams,
bet Ziepniekkalnā tāda iespēja iedzīvotājiem tiek liegta.
Ņemot vērā, ka vidēji pētāmajās apkaimēs ekonomiski aktīvo iedzīvotāju ir 63% un nodarbināto
iedzīvotāju ir 33% no kopējā iedzīvotāju skaita apkaimē, kas ir būtiski rādītāji pilsētas un apkaimes
ilgtspējīgai attīstībai. Viens no būtiskākajiem faktoriem ir sekmēt iedzīvotāju līdzdalību un iesaistīšanos
savas apkaimes attīstībā, lai iedzīvotājs justos piederīgs savaisdzīvojamaiapkaimei un, ka viņš ir līdzatbildīgs
tās attīstībā – aktīvā apkaimē, aktīva attīstība.
Pētniecības metodes
Pētījumā tiek izmantotas vispārpieņemtas zinātniskās metodes - loģiski-konstruktīvā metode – izsakot
spriedumus, analizējot rezultātus, monogrāfiskā jeb aprakstošā – tika veikta parādības detalizētu izpēte,
apkopojot informāciju un pamatojoties uz daudzveidīgas literatūras apskatu, raksturojot ne vien parādību
pašreizējo stāvokli, bet arī to, kādas pārmaiņas notikušas laika gaitā, analīzes un sintēzes metode. Pilsētas
plānošanas dokumentu un dzīvokļu tirguzsanalīzes pētījumam tiek izmantotas salīdzinošā jeb komparatīvā
metode, kā arī vēsturiskā metode.
Atklātie trūkumi un rezultāti
Ņemot vērā iepriekš minētos rādītājus,jāsecina, ka, ja Rīga neturpinās attīstīties vienmērīgi un
līdzsvaroti, tad viens no negatīviem rādītājiem atspoguļosies nākamajos gados, pētot dzīvokļu tirgus situāciju
Rīgā kopumā un atsevišķi pa apkaimēm. Iedzīvotājiem nepieciešams dzinējspēks, lai viņi vēlētos uzlabot
savu līdzšinējo stagnācijā nonākušo dzīves vidi, bet to var panākt, ja būs ciešākas un uz sadarbību vērstas
attiecības starp iedzīvotāju un pašvaldību. Iedzīvotāju aktivitātes dzīvokļu tirgus jomā atkarīgas no tā, kādā
vietā atrodas izvēlētais objekts, piemēram, ja jaunais projekts vai sērijveida dzīvoklis atrodas degradētā
teritorijā, kur apkārt ir nesakārtota vide, tas rada šaubas un nestabilitāti par iedzīvotāja izpratni par pilsētas
attīstību.
Neskatoties uz to, ka Rīgas pilsētas pašvaldības mājas lapā regulāri tiek izlikta informācija par
veiktajiem uzlabošanas darbiem pilsētā, pēc pētāmo apkaimes iedzīvotāju aptaujas datiem redzams, ka gan
iekšpagalmu labiekārtojuma, gan bērnu rotaļu laukumu, gan ēku stāvoklis un ceļu stāvoklis ir neapmierinošā
stāvoklī un dokumentos rakstītais nesakrīt ar padarīto.
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Secinājumi
Pētāmās apkaimes ir nozīmīga pilsētas sastāvdaļa, un par to liecina veiktie pētījumi un analīzes gan
vietējā, gan starptautiskā mērogā. Kā arī Rīgas pilsētas ilgtspējīgas attīstības balsts ir rīdzinieks, līdz ar to
iedzīvotāju līdzdalība pilsētas plānošanas un attīstības dokumentu izstrādē ir svarīga un nepieciešama, bet tā
turpina būt nepietiekama, kas apdraud Rīgas pilsētas ilgtspējīgu attīstību, jo pilsētas attīstības un plānojuma
dokumenti var ierobežot personas tiesības uz labvēlīgu vidi, tāpēc ir ļoti svarīga sabiedrības līdzdalība,
izstrādājot pilsētas plānošanas dokumentus. Lai sekmētu sadarbību starp pilsētas administrāciju un
iedzīvotāju, tad nepieciešama sistēmas pilnveidošana un aktīvāka sabiedrības iesaistīšana savasapkaimes
attīstībā.
Izmantotie informācijas avoti
Bākule, I., Siksna, A. Rīga ārpus nocietinājumiem Pilsētas plānotā izbūve un pārbūve no 17. gadsimta līdz Pirmajam
pasaules karam. – 2009, Rīga, Neptūns 247 lpp.
Nekustamā īpašuma tirgus pārskats. [Elektroniskais resurss]// Arco Real mājas lapa – Resurss apskatīts 2015.
24.augusts. - http://www.arcoreal.lv/files/201408041108261591142219.pdf
Pašreizējās situācijas raksturojums. [Elektronisks resurss]//Rīgas domes Pilsētas attīstības departaments – Resurss
apskatīts 2015. g. 5. septembrī. –http://rdpad.lv/uploads/rpap/Pasreizejas_situacijas_raksturojums.pdf
Rīgas teritorijas plānojums 2006 līdz 2018.gadam. [Elektronisks resurss]//Rīgas domes Pilsētas attīstības departaments
– Resurss apskatīts 2015. g. 7. septembrī – http://www.rdpad.lv/rtp/speka-esosais/rtp-2006-2018-g-argrozijumiem-180809/
Rīgas ilgstpējīgas attīstības stratēģija līdz 2030.gadam. [Elektronisks resurss]//Rīgas domes Pilsētas attīstības
departaments – Resurss apskatīts 2015. g. 5. septembrī. –http://rdpad.lv/uploads/2030/Strategija_2014-2030.pdf
Rīgas attīstības programma 2014.-2020. gadam. [Elektronisks resurss]//Rīgas domes Pilsētas attīstības departaments –
Resurss apskatīts 2015. g. 5. septembrī. –http://rdpad.lv/uploads/rpap/Attistibas_programmas.pdf
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Networks in Region Technology Transfer System Development
Olha Prokopenko1, Vitaliy Omelyanenko2
1
Sumy State University, Ukraine, University of Economics and Humanities, Poland, prokopenko.olha.w@gmail.com
2
Sumy State University, Ukraine, sumyvit@yandex.ua
Abstract
This document presents the main features of modern Quintuple Helix model of innovation process.
The practical implementation of this model in terms of Ukraine on the example of a regional network of
technology transfer is proposed.
Keywords: technology transfer, region, innovations, networks.
Introduction
In the early 1990s economists and practitioners focus shifted from integration to networking. Whereas,
in order that the company be innovative, its necessary not only to combine various units on innovation
process (project), but also create and strengthen stable network interactions with customers, suppliers and
other institutions and audiences believe that research towards creating the organizational and economic
mechanisms of innovation cooperation should continue.
Open innovation networks - a set of interacting business entities, academic institutions and other
organizations with similar strategic objectives focused on innovation and making activities under a single
business process, and to achieve these benefits:
• Technology transfer, exchange of ideas in the field of high-tech industries;
• Obtaining access to results of intellectual activity and innovation achievements of other organizations;
• Reducing the financial risks and costs of financial resources;
• Reducing the time for research and development and emergence of possibilities “technological jump”;
• Reducing the cost of a full cycle of its own innovation and research and development;
• Access to new markets;
• Achieving synergies in manufacturing, sales, research and development.
The importance of this factor before others realized in Finland and Sweden, where in the beginning
1990s were established regional innovative system based on network interactions. In subsequent years, the
Scandinavian ideas spread widely across all OECD countries, which adapted it to their own national and
regional specifics. Today in many economies of the world (USA, Canada, UK, South Korea, China,
Australia et al.) formed the eco regional innovation system (regional innovation ecosystems), for achieving
the effects of global innovation level.
The aim of the article is to analyze the theoretical foundations of the internationalization of cluster
structures. To achieve the aim of article it is necessary to analyze the experience of foreign countries in
clusters development, opportunities for international cooperation on the example of the space industry and
space instrumentation.
These problems earlier have been solved in the framework of the intersectoral scientific and technical
complexes both forms of the compound of science and industry, which have been designed to provide fast
and efficient management in cycle "science - production" in priority areas of scientific and technical
progress, accelerate the development of new ideas and effective using them in practice. Formation of each
Intersectoral complex due to socio-economic conditions was a result of cooperation and integration of
enterprises, organizations, institutions and industries. The effectiveness of cross-sectoral coordination of
interactions were determined by the degree of production and economic development and innovation at
meso- and micro level on the base of socio-economic development. However sectoral aspect was main in
formation of complexes, which is partially passed and the clustering concept, dominated. Today in the
context of purpose of the article we suggest to use of analysis of the internationalization of clusters on the
base of technological convergence (mutual influence and interpenetration and technologies) and the
innovation ecosystem approach (set of conditions for the successful creation and development of innovation
and technology transfer).
232
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Findings/Results
To solving the basic problem (promotion technological cooperation between organizations of
scientific and educational sphere, companies and enterprises), we propose to concrete measures to implement
the regional policy of innovative development, create opportunities for replication areas with high innovation
potential of the rest of the region, develop human resources the potential of innovation infrastructure in the
region.
We also propose to consider the effects of main types of technology transfer, which are important for
regional innovation policy:
1. Transfer of unique technology in region;
2. Technology of special transfer in region;
3. Complementary (complementary) technology transfer;
4. Universal Technology Transfer;
5. Regional technology transfer;
6. Corporate technology transfer within business entities;
7. Interregional technology transfer;
8. Transfer of high technology (makro technology) in region;
9. Interstate and transnational technology transfer.
Conclusions
In context of practical implementation of Quintuple Helix model we propose to consider the project to
creation a regional technology transfer network. The project is proposed to create a network of technology
transfer methodology based on innovation "hub" that is designed to provide communication and coordination
of sub regional economy and the environment in order to achieve strategic goals. The network will carry a
broad technological themes that will be formed according to the priorities of regional development and the
participation of the authorities.
Methodology of directed formation of regional networks is based on:
• determination of areas of economic activity, which are the most specific for particular region that
underlie the regional network structures;
• formation of industrial and technical structure of networks based on the completed production of the
groups to obtain a specific product;
• formation network channels based on industrial and technological structure;
• including tonetwork those structures which always cooperate its production.
References
Omelyanenko V.A. (2014). Analysis of Potential of International Inter-Cluster Cooperation in High-Tech Industries.
International Journal of Econometrics and Financial Management. Vol. 2 No. 4, 141–147.
Omelyanenko V.A. (2014). Analysis of the potential of open innovation system in international dimension (technology
transfer aspect). Isolation and unification vectors in the social development coordinate system: Peer-reviewed
materials digest (collective monograph) published following the results of the LXXIX International Research
and Practice Conference; London: IASHE, 64–66.
Bramwell A. et al. Growing Innovation Ecosystems: University-Industry Knowledge Transfer and Regional Economic
Development in Canada. University of Toronto. Final Report. May 15, 2012.
233
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Poverty Mitigation Options in Cities
Ina Sila1, Uldis Kamols2, Liga Kamola3
1
Riga Technical University, Latvia, inasila@inbox.lv, Uldis.Kamols@rtu.lv, Liga.Kamola@rtu.lv
Abstract
The research paper “Poverty mitigation options in cities” is actual because that in twenty-first century
poverty in many of its manifestations is still a global problem. The gap between the worlds’s rich and
poor is the largest in the last hundred years. Each country is current poverty reduction problem. Poverty,
inequality and social exclusion are closely linked to unemployment as it contributes to people's material
deprivation. The study aims to assess poverty, influencing factors and proposals for its reduction. Depth
problem is analysed in Liepaja employment.
Keywords: poverty, city, poverty factors, unemployment, urban development.
Introduction
The world has a lot of global problems such as poverty, war, global warming, pollution, racism,
terrorism, hunger and various diseases. The most serious of these is the pollution, famine, war, terrorism, and
the large number of homeless people. Twenty-first century of poverty in many of its manifestations is still a
global problem - almost one sixth of the world's population are poor. The world has many countries with
poor people who are forced to live on the streets because they have no home, no job, no means of
subsistence. Poverty is one of the most important socio-economic problems. Each country is current poverty
reduction problem. Although for many years there was a Latvian economic development, many welfare of
the society still remains unsatisfactory. Another powerful poorest affected by the current economic situation,
and this can lead to socio-economic instability. One should not forget that people's well-being is an important
factor in the country able to develop long-term, as well as to be competitive in the international market.
Showing the need to understand the relationship between the level of poverty and economic development, to
find out how close they are. The article examining and analysing the theory, the opinion of experts, the EU
countries' experiences, as well as through questionnaires, developed the main directions of employment
promotion, poverty reduction in urban areas.
Theoretical analyse of scientific literature and Internet sources research, monographic method, survey.
Findings/Results
By studying and analysing theory, the opinion of experts, the EU countries' experiences, as well as
through questionnaires, developed in four main directions of employment promotion, which also reduce
poverty: (1) Country and the city's economic growth; (2) Reduction of shadow economy and illegal
employment; (3) Unemployed training and consultation; (4) Education and training systems development
Conclusions
Work is one of the main means of reducing poverty. When planning reforms and measures for poverty
reduction in urban employment context - one in the city, the region and even the country to address the
socio-economic problems such as poverty and employment cannot be separated from the EU common
guidelines on these matters and the experience of other countries.
References
Andors, L. Ar nabadzības problēmu jācīnās. Diena 2011, http://www.diena.lv/latvija/zinas/ar-nabadzibas-problemujacinas-13910277 (EU-SILC)
Baharoglu D. and Kessides C., 'Urban Poverty' in Poverty Reduction Strategy Papers - A Sourcebook, World Bank,
September.2000.
Ravallion, M. Poverty Comparisons. Living Standards Measurement Study. -Working Paper 88. Washington D.C. :
World Bank, Feb 1992. 123 p.
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ISBN: 978-9934-8275-3-2
Policy for the "Green" Economy Development in Russia: Main Trends
Maria Tereshina 1, Elena Morozova2, Maksim Onishenko3
1
FSBEI HPE “Kuban state university”, Russia, mwstepanova@mail.ru
FSBEI HPE “Kuban state university”, Russia, morozova_e@inbox.ru
3
FSBEI HPE “Kuban state university”, Russia, onischenkomax@mail.ru
2
Abstract
The authors define a green economy as one of the most serious trends in socio-economic
development in modern Russia and the important factor in political decision-making. The main trends
of the «green» economy development and the "green growth barriers" has been analysed. A general
conclusion is made concerning the state's significant role in the transition to a «green» economy.
Keywords: «green» economy, «green» growth, sustainable development
Introduction
The concept of "green" growth plays an important role in the formation of a new global model of
socio-economic development. It is one of the main trends of the global economy upgrowth. Attention to this
process in Russia is determined by the necessity to follow the promising trends of world economic
development and global competitiveness.
Policy making of "green" economy development, including the necessary structural reforms and
instruments to stimulate them, becomes even more urgent for Russia in the face of deteriorating global
economic conditions, the fall in oil prices, a corresponding reduction in foreign exchange earnings and
export revenues, and the threat of a new wave of global financial crisis.
The basic theoretical framework of the study was given with the concept of sustainable development
as well as ideas and principles articulated in the concept of governance. The tasks required to use the neoinstitutional approach, which enabled to identify and study not only the public, but also the latent practices of
the"green" economy policy. Such empirical methods as analysis of texts of different origins, case study,
secondary analysis of sociological data and monitoring of Internet resources were used by the authors.
Findings/Results
Policy for the "green" economy development in modern Russia is characterized by weak degree of
institutionalization, which, however, increases in recent years.
Currently, the most directions, that clearly established in Russian policy for the "green" economy
development, are the following: creation and improvement the background of regulatory and institutional
green growth policy; public investment in "green" industries and creating "green" public procurement;
stimulating private investments in areas that promote innovation in the"green" technologies field, creating
the necessary infrastructure for the successful implementation of certain green innovation and contribute to
the emergence of the "green" industry; the development of renewable energy; development of ecological
certification and standardization system ; strengthen capacity for international cooperation in the "green"
technologies sphere and transition to the green growth
These goals are accomplished with varying degrees of severity and effectiveness, rather fragmented
and do not have a systemic effect. The main actor of the development of "green" economy in Russia is the
state, which is objectively related to the availability of the necessary resources and could be correlated with
international practice. However, policies for green growth in Russia cannot leave the context of
environmental policy making, it is not obvious all the possible benefits for other stakeholders, who see it not
as a "policy opportunities for growth," but rather as "policy limits"
These goals are accomplished with varying degrees of severity and effectiveness, rather fragmented
and do not have a systemic effect. The main actor of the development of "green" economy in Russia is the
government, which is objectively related to the availability of the necessary resources and could be
correlated with international practice. However, policies for green growth in Russia cannot leave the
framework for environmental policy. This leads to the fact that all the possible benefits of «green» economy
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ISBN: 978-9934-8275-3-2
policies are not obvious to other stakeholders, who see it not as a "policy opportunities for growth," but
rather as "policy limits".
Nowdays, the prospects of further policy for the "green" economy development promotion in Russia is
quite controversial. On the one hand, in 2014 the radical reform of environmental legislation, basing on the
principles of "green" economy was started. On the other hand, the current adverse economic trends are
expressed, such as the unfavorable situation of energy prices on world markets, economic sanctions, and
foreign policy tensions. In addition there are also a number of specific political and administrative barriers to
the development of a green economy.
Among the main political and administrative barriers to 'green' growth in the Russian Federation we
can allocate a high degree of bureaucratisation of decision making and implementation, lobbying interests of
large corporations, oriented to maintain the existing situation and are not interested in the transition to
"green" growth, the pressure of the existing resource model development, inconsistency in making
strategically important decisions for the development of "green" economy, regulatory "gaps" in the
legislation, poor evaluation mechanisms of natural capital, as well as a deficit of tools to assess the negative
impact on the environment, the lack of expert and analytical data to make informed decisions in the field of
long-term transition to a "green" development and the dominance in the modern Russian society the culture
of environmental optimism.
Conclusions
There has been a significant progress in the implementation of the principles of "green economy" in
the process of economic decision-making in modern Russia. However, there is a number of obstacles
slowing down the transition to a "green" economy. Despite the fact that most of the barriers examined in the
study are given de facto, they can be changed by political means. As a major actor in the policy of "green"
growth, the state should concentrate efforts on the demolition of the existing traditional raw materials export
model of development and on development of civil society, which will lead to the creation of new
institutional contours of the economy based on the principles of "green" growth.
References
Bobylev, S.N. & Zakharov, V.M. (2012). Obzor «Navstrechu «zelenoy» ekonomike Rossii» [The review "Towards to
"green" economy of Russia"]. Moscow.
Danilenko, L.N. (2013). Ekologicheskaya politika v Rossii: «zelenaya» ekonomika protiv rentno-syr'evoy
[Environmental policy in Russia: "green" economy against the rent and raw]. Natsional'nye interesy: prioritety i
bezopasnost' [National interests: priorities and safety], 12 (201), 38–47.
Itogi kruglogo stola Vysshego Ekologicheskogo Soveta Komiteta po prirodnym resursam, prirodopol'zovaniyu i
ekologii Gosudarstvennoy Dumy RF [Results of a round table of the Supreme Ecological Council of Committee
on natural resources, environmental management and ecology of the State Duma of the Russian Federation].
(2014, 28 March). Retrieved from www.econ.msu.ru/science/bioeco/News.20140416120440_4006/
Tereshina, M.V. & Degtyareva, I.N. (2012). «Zelenyy rost» i strukturnye sdvigi v regional'noy ekonomike: popytka
teoretiko-metodologicheskogo analiza ["Green growth" and structural shifts in regional economy: attempt of the
teoretiko-methodological analysis]. Teoriya i praktika obshchestvennogo razvitiya [Theory and practice of social
development], (5), 246–248.
236

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