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                    <text>English Language Teaching with Web 2.0 and Faculty 2.0
John Battenburg
American University of Sharjah/ Sharjah, United Arab Emirates
Key words: Language Learning, Information/Communication Technology
ABSTRACT
The Internet has the potential to enhance the collaborative and communicative goals of English language teaching.
Use of online resources in language learning has dramatically increased in recent years with online courses and use
of smart technology within the classroom. “The problem,” as reported by the Pew Higher Education Roundtable at
the dawn of this information age in 1994, continues to be “that faculty—and hence the institutions they serve—have
approached technology more as individual consumers than as collective producers.”
This paper considers the risks and rewards with creating and integrating information and communication technology
into the English language classroom. Benefits to using online resources for language learning will be considered:
authentic language, contact with a wider world of English speakers, motivating, entertaining, current, and applicable
to content based-instruction. At the same time various drawbacks will be discussed: slow or non-functioning
websites, navigation problems, high cost, and inadequate resources for language teaching.
Brown and Alder (2008) applaud the paradigm change brought about by recent instructional technology from “what
we learn” to “how we learn.” Other issues, of course, that must be addressed include the “who”, “where”, and “why”
of learning. This discussion about innovations forces us to rethink the process of “learning about learning.”
The presenter will discuss how online resources can be accessed through the use of computers, tablets, mobile
phones, and other electronic devices as well as demonstrate free online resources he has developed for teaching
pronunciation and vocabulary. He will also distribute an annotated “Webliography” of resources for teachers and
students. This presentation will suggest that use of online resources can increase democracy and equity in the
English language classroom while making these spaces more student-centered.

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                <text>Key words: Language Learning, Information/Communication Technology  ABSTRACT  The Internet has the potential to enhance the collaborative and communicative goals of English language teaching. Use of online resources in language learning has dramatically increased in recent years with online courses and use of smart technology within the classroom. “The problem,” as reported by the Pew Higher Education Roundtable at the dawn of this information age in 1994, continues to be “that faculty—and hence the institutions they serve—have approached technology more as individual consumers than as collective producers.”  This paper considers the risks and rewards with creating and integrating information and communication technology into the English language classroom. Benefits to using online resources for language learning will be considered: authentic language, contact with a wider world of English speakers, motivating, entertaining, current, and applicable to content based-instruction. At the same time various drawbacks will be discussed: slow or non-functioning websites, navigation problems, high cost, and inadequate resources for language teaching.  Brown and Alder (2008) applaud the paradigm change brought about by recent instructional technology from “what we learn” to “how we learn.” Other issues, of course, that must be addressed include the “who”, “where”, and “why” of learning. This discussion about innovations forces us to rethink the process of “learning about learning.”  The presenter will discuss how online resources can be accessed through the use of computers, tablets, mobile phones, and other electronic devices as well as demonstrate free online resources he has developed for teaching pronunciation and vocabulary. He will also distribute an annotated “Webliography” of resources for teachers and students. This presentation will suggest that use of online resources can increase democracy and equity in the English language classroom while making these spaces more student-centered.</text>
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                <text>This study investigates the representations that the English teachers from Minas Gerais state (Brazil) public schools have about deaf students’ educational inclusion into regular schools. The research objective is the teacher-subject’s discourse, considering that such a subject is constituted in/by language and historically and socially built.  We focus on teachers’ representations about their teaching practice, the English language, about deaf and hearing students, and also the Brazilian sign language and its interpreters. The results indicates that considering such representations, the way the teachers deal with their practice and with the other people involved in the teaching-learning process can be better understood. This research located in the Applied Linguistics field is based on concepts of Discourse Analysis. The corpus was built through audio-recorded interviews and class observation. After transcribing the interviews, the corpus was linguistically and discursively analyzed, identifying the identity shifts, contradictions on discourse, discourse regularities as well as the representations presented by the teachers about their practice. Through interpretation gestures, a chain of representations have been achieved, to perceive how teachers develop their teaching deaf and hearing students in the classroom. Based on the interviewed teachers’ discourse, the results indicate that the Inclusive Education is seen as an impossible reality. Moreover, those teachers do not see themselves as the idealized teacher who is pictured on political and pedagogical discourses. As a conclusion, the study points that teachers predominantly take two enunciative positions, ranging from that of inhibition to a creative one. In the first position they are inhibited when they face deaf and hearing students in the same classroom. In the second position, though, they are creative in the same situation. The contradiction on different enunciative positions indicates two discursive formation in the teachers discourse  which were defined as inhibi(ac)tion and crea(c)tion.  </text>
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Türkmen, Seyfullah </text>
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                <text>Teaching foreign language has been an important issue in the agenda of Turkish education system for lots of reasons. Globalization is one of these reasons which brought about an unprecedented spread of English in Turkey as in many other non-English–speaking countries. English, currently, is the only foreign language that has become a compulsory subject at all levels of Turkish education, but the spread of English has created serious challenges to Turkey’s language policy (Kırkgöz, 2009).     One the considerable negative effects of spread of English is on the stability of Turkish language teaching policy. Lots of changes might easily be seen in time. For instance, once foreign language courses were made elective courses; then these courses were decided to be compulsory after a while; in the past foreign language courses were started from the 6th grade now it is thought from the 4th grade of primary schools; total weekly hours of the courses have been changed and so forth.     Due to the differing policies; course curriculum, course books sometimes teaching methods have been changed in time. Despite the efforts, it could be realized that the students taking English courses from primary school to higher education are commonly unable to reach the desired level and low foreign language proficiency level has remained a serious problem (Çelebi, 2006; Işık 2008).     In this study, language teaching policies (mainly English Teaching policies) are mentioned, an evaluation of these policies are made in the first part of the study; and in the remaining part strong and weak points of English teaching based on the experiences of a native English teacher together with the solutions to overcome the problems related with the issue.      </text>
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                <text>Language learning has many aspects. One of them is undoubtedly the culture of the target language. It is known that a positive attitude toward L2 culture can lead to cross-cultural understanding. However, there have not been many attempts to introduce a third culture in ELT, which is the topic of this paper. As a teacher of English who comes from Turkey and works in Serbia, I introduced elements of Turkish culture in my English classroom and tried to make use of the relationship between three cultures. Would they clash, merge or will one of them be dominant? With the beginning of Turkish serials in Serbian TV channels the ongoing increasing interest has boosted since 2009.People are not only interested in Turkish culture but also in economy, tourism, sports, and many other aspects of Turkish life. There are more news about Turkey in Serbian media compared to past. As my students have shown interest in these topics, I introduced various elements of Turkish culture and incorporated most of them in speaking activities, but also tried to combine them with total physical response and some extracurricular activities. They proved to be very successful, since student’s interest in Turkish culture increased student talking time, their motivation for participation in communicative and extracurricular activities, and their overall performance has improved.</text>
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                    <text>1st International Conference on Foreign Language Teaching and Applied Linguistics
May 5-7 2011 Sarajevo

Enhancing critical thinking in foreign language learners
Servat Shirkhani
Islamic Azad University, Khorram Abad Branch
shirkhani10@yahoo.com
Mansour Fahim
Islamic Azad University, Science and Research Branch
Dr.mfahim@yahoo.com
Abstract: Critical thinking refers to the individuals‘ ability to think and make
correct decisions independently. Critical thinking has been used in first language
acquisition for a long time and has been recently introduced into foreign language
teaching contexts. Nowadays enhancing critical thinking in learners is considered
one of the foreign language teachers‘ tasks due to its high position in foreign
language classrooms. There are various factors affecting language learners‘ critical
thinking skills. Two of these factors are materials used and types of activities
introduced and worked on in the classroom. Therefore, through managing classroom
materials and activities, language teachers can help learners develop critical thinking
skills. This presentations aims at introducing some ways in which language teachers
can enhance critical thinking in foreign language learners through using materials
and activities which require critical thinking on the part of learners. The teacher can
prepare, choose, and/or adapt already existing materials so that they enhance
learners‘ critical thinking ability. Also the teacher can choose activities which
demand learners to develop critical thinking skills since not all activities lend
themselves to critical thinking on the part of learners. In this presentation, some
suggestions for language teachers to make sound choice of such materials and
activities will be presented.
Key words: critical thinking, language teaching, materials, activities.

Introduction
Critical thinking has been recently introduced and gained a high position in foreign language teaching
(FLT) settings so that nowadays enhancing critical thinking in learners is considered one of the foreign language
teachers‘ tasks. Many different factors can affect learners‘ critical thinking skills. Materials used and types of
activities introduced and worked on in the classroom are two of these factors. This presentation argues that
through managing classroom materials and activities, language teachers can help learners develop critical
thinking skills.

Critical thinking
Many different definitions have been proposed for critical thinking by various educators such as
Lipman (1991); Norris and Ennis (1989); and Siegel (1988). However, there is not much difference among these
definitions. As Elder and Paul (1994) state, critical thinking refers to the ability of individuals to take charge of
their own thinking and develop appropriate criteria and standards for analyzing their own thinking. Moreover, as
Maiorana (1992) maintains, critical thinking aims at achieving understanding, evaluating different perspectives,
and solving problems.
Critical thinking in language teaching
The promotion of critical thinking into the FLT classrooms is of high significance for several reasons.
Firstly, if language learners can take charge of their own thinking, they can monitor and evaluate their own ways
of learning more successfully. Second, critical thinking expands the learning experience of the learners and
makes the language more meaningful for them. Thirdly, critical thinking has a high degree of correlation with
the learners‘ achievements (Rafi, n.d.). Different studies have confirmed the role of critical thinking in
improving ESL writing ability (Rafi, n.d.); language proficiency (Liaw, 2007); and oral communication ability
(Kusaka &amp; Robertson, n.d.).The learners may become proficient language users if they have motivation and are
taught the ways of displaying critical thinking in foreign language usage, which signifies that the learners must
have reflection on their production of ideas, and they may critically support those ideas with logical details
(Rafi, n.d.). Language development and thinking are closely related and the teaching of higher-order thinking
skills should be an integral part of an L2 curriculum. Educators have emphasized the importance of developing
higher-order thinking skills in foreign language classrooms (Chamot, 1995; Tarvin &amp; Al-Arishi, 1991) and
empirical evidence supports the effectiveness of teaching critical thinking skills along with the foreign language
(Chapple &amp; Curtis, 2000; Davidson, 1994, 1995).

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�1st International Conference on Foreign Language Teaching and Applied Linguistics
May 5-7 2011 Sarajevo
In fact, language learners who have developed critical thinking skills are capable of doing activities of
which other students may not be capable. Implied in the study by Mahyuddin et al (2004) is that language
learners with critical thinking ability are capable of thinking critically and creatively in order to achieve the
goals of the curriculum; capable of making decisions and solving problems; capable of using their thinking
skills, and of understanding language or its contents; capable of treating thinking skills as lifelong learning; and
finally intellectually, physically, emotionally and spiritually well-balanced.
However, in spite of the fact that there is little argument among theorists and educators about the
importance of thinking skills in language development, in typical school settings, language learning and
thinking skills are often treated as independent processes (Miraman &amp; Tishman, 1988; Suhor, 1984). In other
words as Pica (2000) states, in the tradition of English language teaching methodology, the integration of
language and thinking skills has been peripheral. It is argued (e.g. Kabilan, 2000) that even communicative
language teaching, which emphasizes the use of language as a communication tool, does not really help students
to become proficient in the target language. He suggests that for learners to be proficient in a language, they
need to be able to think creatively and critically when using the target language. So, it is implied that even
communicative approaches to language teaching do not develop critical thinking among learners.
Due to the advantages mentioned for enhancing critical thinking in language learners and also little
practice in this regards in FLT settings, as Brown (2004) asserts, in an ideal academic language program, the
objectives of the curriculum should go beyond linguistic factors to develop critical thinking among learners. In
fact, the effectiveness of language teaching will depend upon what is being taught, in addition to language,
which learners can consider as a purposeful and relevant extension of their horizons (Widdowson, 1990).
Language teachers are among practitioners who can greatly influence the type of learning by language
learners. Therefore, one of their responsibilities is to help learners develop critical thinking abilities. Maybe
even more than L1 teachers, L2 teachers have reasons to introduce their students to aspects of critical thinking
because if they do not (Davidson, 1998). As Lipman (2003) says, teachers are responsible for promoting critical
thinking in the learners other than helping them to go from one educational level to the next. The responsibility
of foreign language teachers is to help their learners acquire critical thinking skills while learning the language.
As Mahyuddin et al (2004) assert, there is plenty of room for improvement in incorporating the thinking skills
into our curricula.
Enhancing critical thinking through materials
Obviously the type of materials used in the foreign language classroom has a significant effect on the
way of learning and trying to learn. Some materials are not appropriate in classes in which the promotion of
critical thinking is a major goal; that is, they do not lend themselves to the type of learning promoting critical
thinking. On the other hand, there are materials which require the learner to think critically if they want to
develop critical thinking skills. For example, materials which can be analyzed, synthesized, discussed, argued
about, classified in different ways, etc. are suitable for enhancing critical thinking among language learners. So
as Scanlan (2006) suggests, critical thinking skills should be embedded in the subject matter and integrated with
language teaching.
Authenticity of the materials is a key factor in making the material appropriate for the purpose of
promoting critical thinking in language classes. The reason is that the learners can see some meaningfulness in
the materials which gives them encouragement and motivation to talk about it. The type of materials must also
give the learners a degree of understanding of the relationship between taught material and the real world. When
learners gain a deeper understanding of content matter and its relationship with self and society, their effort for
controlling their own learning increases (Kusaka &amp; Robertson, n.d.).
Some authors argue for the appropriateness of content-based material for the development of critical
thinking (e.g. Kusaka &amp; Robertson, n.d.). They believe that a content-based approach reawakens the language
learners‘ desire to study English, increases language acquisition, prepares learners for the role English will play
in their future life, engages students‘ interest, helps them to become independent learners, and fosters their
development as English speakers better than curricula which are built around textbooks that frequently change
topics and show little real concern for content.
Enhancing critical thinking through activities
The second factor introduced here as having the capability of improving critical thinking skills among
language learners is the type of activities used in the FLT context. In the previous section, the importance of
materials used in the classroom was emphasized; however, the best type of material for this purpose can be
useful only when they are introduced and worked on appropriately. In other words, the type of activities used in
order to introduce and teach the materials must have the potential to promote critical thinking in the learners.
The empirical findings indicate that the teachers subconsciously provide the answers to the learners
(Kabilan 2000). In this way, the teachers get from the learners the opportunities and the rights to question, and
the learners are not encouraged to reason and show higher order thoughts (Bruss &amp; Macedo, 1985; Freire 1973).
So we need to use activities which require learners to become more active and questioning. Activities such as

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May 5-7 2011 Sarajevo
group work, project-based work, and presentation skills which reflect the overall instructional goal (Kusaka &amp;
Robertson, n.d.) can be considered appropriate for this purpose.
The Qualifications and Curriculum Authority (2001-2002), a non-departmental organization sponsored
by the Department of Education and Skills in the U.K., asserts that modern foreign language teaching must
incorporate activities to help children reflect on their own thinking processes and language-learning strategies. It
then outlines activities to include: (1) identifying and understanding the relations between the foreign language
and first language in terms of lexis, syntax, and grammar; (2) drawing inferences from unfamiliar language and
unexpected responses; (3) using their grammatical knowledge to guess the meaning of new words and
structures; (4) using language creatively to express ideas, attitudes and opinions; (5) adapting and revising
language for their own purposes; (6) identifying and using language patterns; and (7) managing their own use of
language-learning strategies. These are fully in line with the type of activities needed to promote critical
thinking among language learners. So classrooms aiming at developing learners‘ critical thinking ability must
use such activities.
Different authors have suggested different ways of increasing thinking skills among language learners.
For example, Kabilan (2000) suggested the use of the pedagogy of questioning based on Freire‘s constructs
(1970, 1973); Zainuddin and Moore (2003) in their experiment proposed a structured controversial dialogue
technique for developing critical thinking among language learners; Kasper (2000) based on his experiment
suggested engaging language learners in sustained content study within collaborative learning communities as
well as using information technology resources to improve learners‘ linguistic and thinking skills. Of the
suggested methods and techniques, content-based teaching (suggested by Brinton et al, 1989; Kusaka &amp;
Robertson, n.d.; Liaw, 2007; and Stoller, 1997) is an approach considered by many as an effective way to teach
language skills while supporting the development of critical thinking.
Among the skills that teachers should focus on for this purpose are forming relationships; comparing
and contrasting; classifying; evaluating; ranking; identifying right from wrong, facts from opinion, cause and
effect; summarizing; generalizing; interpreting; identifying main, supporting and detailed ideas as well as
making decisions and solving problems (Mahyuddin et al, 2004). Classroom activities need to provide learners
with different opportunities to share their ideas, reflect on their learning, and engage in extended communication
with peers, teachers, and others both inside and outside of the classroom (Kusaka &amp; Robertson, n.d.).

Conclusion
Critical thinking is what needs to be enhanced among language learners due to its significance in
developing effective language learning. So promoting critical thinking skills is considered one of the tasks‘ of
language teachers. They can do this task through various ways, including choosing appropriate materials and
activities.

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Bruss, N. and Macedo, D. P. (1985) Toward pedagogy of the question: Conversations with Paulo Freire. Journal
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Chamot, A. (1995). Creating a community of thinkers in the ESL/EFL classroom. TESOL Matters, 5(5), 1-16.
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Elder, L. &amp; Paul, R. (1994) Critical thinking: Why we must transform our teaching. Journal of Developmental
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Freire, P. (1970). Pedagogy of the oppressed. New York: The Seabury Press.
Freire, P. 1973. Education for critical consciousness. New York: The Seabury Press.
Kabilan, K.M. (2000) Creative and critical thinking in language classroom. Internet TESL Journal, 6/6.
http://iteslj.org/Techniques/Kabilan-CriticalThinking.html
Kasper, L. F. (2000). New technologies, new literacies: Focus discipline research and ESL learning
communities. Language Learning &amp; Technology, 4(2), 105-128.
Kusaka, L. L., &amp; Robertson, M. ().Beyond Language: Creating Opportunities for Authentic Communication and
Critical Thinking. 14, 21-38.
Liaw, M. (2007). Content-Based Reading and Writing for Critical Thinking Skills in an EFL Context. English
Teaching &amp; Learning, 31(2), 45-87
Lipman, M. (1991). Thinking in education. Cambridge: Cambridge University Press.
Lipman, M. (2003) Thinking in education. New York: Cambridge University Press.
Mahyuddin, R., Lope Pihie, Z. A., Elias, H., &amp; Konting, M. M. (2004). The incorporation of thinking skills in
the school curriculum. Kajian Malaysia, Jld, 22(2), 23-33.
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Norris, S. P., &amp; Ennis, R. (1989). Evaluating critical thinking. Pacific Grove, California: Critical Thinking Press
and Software.
Pica, T. (2000). Tradition and transition in English language teaching methodology. System, 29, 1-18.

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May 5-7 2011 Sarajevo
Qualifications and Curriculum Authority (2001-2002). Using thinking skills. Retrieved December 10, 2004,
from http://www.ncluk.net/gt/languages/teaching_thinkingskills.htm
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Stoller, F. L. (1997). Project work: A means to promote language content. Forum, 35(4), Retrieved December
10, 2004, from http://exchanges.state.gov/forum/vols/vol35/no4/p2.htm
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classroom. TESOL Quarterly, 25(1), 9-27.
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Zainuddin, H., &amp; Moore, R. A. (2003). Enhancing critical thinking with structured controversial dialogues. The
Internet TESL Journal, 9(6). Retrieved July 10, 2007, from http://iteslj.org/Technique/ZainuddinControversial.html

1095

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                <text>Critical thinking refers to the individuals‘ ability to think and make  correct decisions independently. Critical thinking has been used in first language  acquisition for a long time and has been recently introduced into foreign language  teaching contexts. Nowadays enhancing critical thinking in learners is considered  one of the foreign language teachers‘ tasks due to its high position in foreign  language classrooms. There are various factors affecting language learners‘ critical  thinking skills. Two of these factors are materials used and types of activities  introduced and worked on in the classroom. Therefore, through managing classroom  materials and activities, language teachers can help learners develop critical thinking  skills. This presentations aims at introducing some ways in which language teachers  can enhance critical thinking in foreign language learners through using materials  and activities which require critical thinking on the part of learners. The teacher can  prepare, choose, and/or adapt already existing materials so that they enhance  learners‘ critical thinking ability. Also the teacher can choose activities which  demand learners to develop critical thinking skills since not all activities lend  themselves to critical thinking on the part of learners. In this presentation, some  suggestions for language teachers to make sound choice of such materials and  activities will be presented.</text>
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                    <text>Enhancing EFL Students' Reading Skills with Inspirational Quotes
Reima Al-Jarf
King Saud University/ Riyadh, Saudi Arabia
Key words: insirational quotes, reading, EFL, integration,global culture
ABSTRACT
Many ESL students have reading comprehension problems in English, have difficulty identifying main ideas and
supporting details, identifying, verifying or recalling ideas that are explicitly or implicitly stated in the text, making
predictions, inferring the meaning of difficult words from context, and making inferences. The presentation proposes
the integration of inspirational quotes in the teaching of English to L2 students in class, or as an extension activity. It
will show the following: (i) advantages of integrating inspirational quotes by authors from around the world and
different cultures in reading instruction; (ii) sources of global inspirational quotes; (iii) Criteria for selecting global
inspirational quotes such as length, topic familiarity, difficulty level, students’ proficiency level, students’ interests
and their local culture; (iv) Instructional phases with inspirational quotes: (a) Before reading an inspirational quote:
Introducing the inspirational quote, vocabulary overview; giving pre-questions, setting goals for the tasks, what
students need to do and focus on, predicting the topic on the part of the students and giving the order in which tasks
will be completed. (b) While reading an inspirational quote: Students read for the main idea, pay attention to
specific vocabulary, imagery and figures of speech while reading, answer a question while reading and use
contextual clues to infer meaning of difficult words; (c) After reading an inspirational quote: Discussing answers,
summarizing or retelling orally the main idea, discussing difficulties, commenting on the topic, giving their
impression, giving the morale or lesson learnt, providing feedback on areas of improvement, a summary of the tasks
that were performed; (v) evaluation and assessment; (vi) recommendations for integrating of inspirational quotes in
reading instruction.

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                <text>Key words: insirational quotes, reading, EFL, integration,global culture  ABSTRACT  Many ESL students have reading comprehension problems in English, have difficulty identifying main ideas and supporting details, identifying, verifying or recalling ideas that are explicitly or implicitly stated in the text, making predictions, inferring the meaning of difficult words from context, and making inferences. The presentation proposes the integration of inspirational quotes in the teaching of English to L2 students in class, or as an extension activity. It will show the following: (i) advantages of integrating inspirational quotes by authors from around the world and different cultures in reading instruction; (ii) sources of global inspirational quotes; (iii) Criteria for selecting global inspirational quotes such as length, topic familiarity, difficulty level, students’ proficiency level, students’ interests and their local culture; (iv) Instructional phases with inspirational quotes: (a) Before reading an inspirational quote: Introducing the inspirational quote, vocabulary overview; giving pre-questions, setting goals for the tasks, what students need to do and focus on, predicting the topic on the part of the students and giving the order in which tasks will be completed. (b) While reading an inspirational quote: Students read for the main idea, pay attention to specific vocabulary, imagery and figures of speech while reading, answer a question while reading and use contextual clues to infer meaning of difficult words; (c) After reading an inspirational quote: Discussing answers, summarizing or retelling orally the main idea, discussing difficulties, commenting on the topic, giving their impression, giving the morale or lesson learnt, providing feedback on areas of improvement, a summary of the tasks that were performed; (v) evaluation and assessment; (vi) recommendations for integrating of inspirational quotes in reading instruction.</text>
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                <text>Classroom quizzes come in many forms of practices. They are performed generally as a testing method or as a closure of a certain lesson. From the perspectives of many Malaysian students, a classroom quiz often involves a one way interaction from a teacher to students in transmitting any tested questions or problems to be answered by them. It is scarce to see a classroom quiz integrates some psychomotor or a two-way interaction between a student and a teacher. Due to that matter, some students might find it a bit bored or unattractive. A study had been carried out in order to investigate whether the new approach and the witty way of a classroom quiz would enhance students’ understanding in the learning of Japanese language. The study involved 20 form two candidates of Dato’ Ahmad Maher Secondary School for two months. Data were collected by using a pre-test and a post-test. The results showed that the new approach and the witty way of the classroom quiz would enhance students’ understanding in the learning of Japanese language.</text>
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                    <text>ENTERPRISE RESOURCE PLANNING SYSTEM IMPLEMENTATION:
CRITICAL SUCCESS FACTORS THAT AFFECT ERP IMPLEMENTATION
IN BOSNIA AND HERZEGOVINA
Senida Vatreš
International Burch University
Bosnia and Herzegovina
senida05@hotmail.com
Abstract: Enterprise Resource Planning (ERP), is the new generation theme in business,
every company need a successful ERP system, but mostly of company that want to
implement ERP have many problem, financial and managerial.
This paper tend to analyze which critical success factors affect the ERP implementation
in Bosnia and Herzegovina, because unfortunately in this country, there is a lack in
information about ERP implementation and many firms have big problem during
approaching the new system, and fail in their intents.
Many researchers in developed country, have brought their conclusion about which
factors are most affecting ERP implementation, and through their studies it will be much
easier to determine what affect ERP implementation in Bosnia and Herzegovina, are
the same problem affecting the implementation like in developed country or there
are different problems and factors that cause unsuccessful usage of ERP system in
companies, and how firms can easily and successful use ERP systems in this country.
Keywords: Enterprise Resource Planning system, Critical Success Factors, successful
implementation.
JEL classification: M1, M11, M15, P41.
Introduction
Enterprise Resource Planning (ERP), is the new generation theme in business. Every
company need a successful ERP system, but mostly of company that want to implement
ERP have many problem, financial and managerial.
Now a days managers want to know every movement in their company just clicking
on their computers, laptops or smart phones, in every moment of the day, they want
to control the resources which enter and come out from the manufacturing process,
knowing their suppliers, prices, quantity, and quality and of course who is their final
customer which uses their products or services. But the problem is: how to reach
successfully this “knowing everything” in the company?
Because of too much interest in this field, researchers in enterprise information systems
want to make the new theoretical and practical approaches to ERP, and now a days
there are so many literature, that try to describe ERP in deep and how to approach
ERP and successfully implement the system in companies in every country.
Unfortunately in Bosnia and Herzegovina, because of lack in information about ERP
implementation, many firms have big problem during approaching the new system,
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and fail in their intents. So, writing about, and analyzing the subject referred to
the situation in Bosnia and Herzegovina, it tends to have an insight what can bring
easement to managers and company, knowing a little more about something that is
useful to be efficient and effective. Managers knowing what are the problems which
can have during ERP implementation, and knowing what can affect their successful
ERP implementation, they can prepare their action before initializing the first step of
implementation, they can be ready to take the risks that can bring the using of the
system, and successfully manage everything to get benefits from it.
Many researchers have brought their conclusion about which factors are affecting
ERP implementation and which problems they have.
This paper is a combination of a literature review, that is an important part of the study
considering the fact it provides us with solid theoretical background of this topic, and
a scientific research done in three Bosnian company, which they differ in type of their
business and organization.
They use different ERP systems, and they are very stable and successful in their work
for a long term. It was analyzed what bring them to have a successful usage of
their ERP systems, how they implement it and which difficulties they had during the
implementation.
All collected information are obtained in different ways through a questionnaire identical
for all respondents; one was an interview face to face, one was a correspondence
by e-mails and, the last one, a deputy of the company attended to a presentation,
organized by some students, where he explained the ERP implementation in their firm.
Because of ethical issue in the paper the three companies’ names will not be known,
and they will be named each with a letter of alphabet “A”, “B”, and “C” company.
The study includes a few sections starting with this introduction, it provides a literature
review, next section is about the research methodology. Then the results are presented,
findings are discussed and finally recommendation, limitations and conclusions.
Literature reviw
An ERP software system is a complex information technology-based suite of programs or
modules that allow an organization to collect, manage, and retrieve data from within
nearly any part of the company. This set of modules integrates with the organizations
sales, supply chain, customer relationships, and financials. The software essentially
becomes integrated with the entire business operation and allows managers and
leadership to access and review data that is vital to day-to-day decision making.
Implementation of this software is one of the keys to determining overall success within
the organization. (Mullins, 2013)
It facilitates a corporation to manage the efﬁcient and effective use of resources
(materials, human resources, ﬁnance, etc.) by providing a total integrated solution for
the organization’s information-processing requests, through a process-oriented view
consistent across the company. (Shahin Dezdar, Ainin Sulaiman , 2009) The benefits
associated with ERP systems are both tangible and intangible, and could be reflected
in operational, managerial, strategic, infrastructural, and organizational dimension of
a business.

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�Regional Economic Development: Entrepreneurship and Innovation
When implemented successfully, ERP system can reduce cycle time, enable faster
business transactions, facilitate better management, and enable e-commerce
integration. However, the successful implementation of ERP systems has proven to be
a difficult task. In one estimate, over half of ERP implementations are judge to be
failures. (Neil A. Morton, Qing Hu, 2008)
It is a big investment that cost approximately, for a medium-sized company, according
to the internet page of ERP Software Blog, in range between $175,000 to $ 750,000,
including total software and service. (Kaupp, 2016)
Depending on different factors (financial, size of company, business nature etc.)
companies decide to purchase the ERP software that match the best to them.
Is possible to have information about the best, the popular or the most purchase
software clicking on some internet sites, for example, according to ERP software 360
(Top 5 Client/Server ERP software Application, 2016) internet site, the five most popular
ERP systems in 2016 are:
1.
2.
3.
4.
5.

Epicor
Infor
Microsoft Dynamics
Oracle
SAP

The five best ERP system in 2016 according to the Capterra site (Top ERP software
Products, 2016) are:
1.
2.
3.
4.
5.

SAP ERP
M1
Passport Business Solution
VIENNA Advantage ERP/CRM
One Soft Connect

What is crucial for a successful ERP implementation are the critical success factors
(CFSs) which affect it.
Joseph Bradly, in his research paper, selected ten critical success factors in ERP
implementation based on tree criteria that dictate a successful implementation, that
are: organizational improvement, on time and on budget; and divided in to three
group: successful factors, factors that did not differentiate between success and
failure and factors that are not required for the success of the projects. Observed
successful factors are:
1.

2.
3.

Project manager: Choosing the right full time project manager, with successful
project management, business sand ERP experience behind can be central to
project success. He don’t need monetary or non-monetary rewards, but he just
need a personal sense of accomplishment and recognition of performance.
Training: is regarded as important. Train stuff and spending resources on training
result as a success factor.
Champion: is any individual who made a decisive contribution to the innovation
by actively and enthusiastically promoting its progress through critical stages in
order to obtain resources and/or active support from top management (Jose
Manuel Esteves, Joan A. Pastor Collado, 2002); the use of a champion, in projects
has a significant role in projects success.
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Factors that did not differentiate between success and failure:
1.
2.
3.

Consultants
Role of management in reducing user resistance
Steering committee

Factors that are not required for the success of the projects:
1.
2.
3.

Integration of business planning and IT planning
Reporting level of project manager
Participation of the CEO or general manager (Bradley, 2008)

In literature is mention that there are many critical success factors that affect directly
or indirectly the ERP implementations; according to Dezdar and Ainin (2009) in total 17
CSFs were identified, which is then categorized into five main categories.
1.
2.
3.
4.
5.

Organization
ERP Project
ERP User
ERP Technology
External Expertise

Table 1: Critical Success Factors found
in literature

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Ke and Wei (2008) explain in their work that,
leadership affects ERP implementation by fostering
the desired organizational culture. Contend that
ERP implementation success is positively related
with organizational culture along the dimensions of
learning and development, participative decision
making, power sharing, support and collaboration,
and tolerance for risk and conflicts. In addition,
are identified the strategic and tactical actions
that the top management can take to influence
organizational culture and foster a cultural conducive
to ERP implementation. ERP systems have strategic
relevance because their integration into core business
process or strategies can directly impact firms’
performance. One study estimates that between
1.5% and 6% of firms’ annual revenues are spent on
ERP implementation. But only 10 to 15% survive and
achieve expected performance improvement. The fit
between the information system and organizational
culture is critical for firms to reap potential benefits
promised by the system. When the system conflicts
with an organization‘s culture, resistance behavior
will result: the system will be rejected, sabotaged or
modified to match the existing culture. On the other
hand, there are opinions that suggest that culture
can be consciously designed and manipulated by
leadership.

�Regional Economic Development: Entrepreneurship and Innovation
The two authors (Weiling Ke, Kwok Kee Wei, 2008)defined the relationships between
the three terms are explained by prepositions.
ERP implementation and organization’s culture:
1.
2.
3.
4.
5.

ERP implementation success is positively related with the organization’s learning
and development culture.
ERP implementation success is positively related with the organization’s
participative decision-making culture.
ERP implementation success is positively related with the organization’s power
sharing culture.
ERP implementation success is positively related with the organization’s collegial
support and collaboration.
ERP implementation success is positively related with the organization’s tolerance
for conflicts and risk.

ERP and leadership:
1.
2.
3.
4.
5.
6.
7.
8.
9.

Top management’s transform vision of ERP is positively related to ERP
implementation success.
Top management’s transform vision of ERP adoption is positively related to an
organizational culture of high tolerance for risk.
Top management’s active advocacy of ERP adoption is positively related to a
culture of learning and development, support and collaboration, and power
sharing.
Top management’s participation in the ERP learning session is positively related
to a culture of participative decision making.
Top management’s citizenship behavior is related to a culture of tolerance for
conflicts.
Top management’s power sharing behavior is positively related to a culture of
power sharing.
Top management’s sharing and inquisitive behavior is positively related to a
culture that values knowledge sharing and learning.
Top management’s setting up a learning structure is positively related to a culture
of comprehensive and cross-functional communication.
Top management’s dispensing appropriate contingent rewards is positively
related to a culture of learning and development, risk taking, and support and
collaboration.

In their paper they assume that there are some limitations. not supported by empirical
data and tests, which are focusing just on the influence of the top management team
and ignore peers’ influence and social influence, followers’ characteristics, which may
interact with leadership ‘s influence on organizational culture in ERP adoption, national
culture. (Weiling Ke, Kwok Kee Wei, 2008)
One other factor is the organization size that can be defined in two ways: by number of
employees or by revenues. Companies of different sizes approach ERP implementations
differently across a range of issues. Also, the benefits differ by company size. Larger
companies report improvements in financial measures whereas smaller companies
report better performance in manufacturing and logistics. (Vincent A. Mabert, Ashok
Soni, M. A. Venkataramanan, 2003)

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Companies of different sizes tended to do different things in their implementations. In
particular, there were distinct differences between small and large companies over a
range of issues. These differences included:
1.
2.
3.
4.

The motivation to go with an ERP system.
The different systems adopted.
The implementation strategies.
The degree of reengineering and customization of the base system. (2003)

One key difference is that companies of different sizes tend to do different things
in their implementations across a range of issues this is mentioned in the article of
V.Mabert et al. (2003),. For example, smaller companies are more likely to change
their processes to fit the system whereas larger companies are more likely to customize
the system. Any changes to the system can have major implications. Generally,
modifications lead to higher costs, longer implementation time and more complicated
implementations. Other differences across smaller and larger include the motivation
to go with an ERP system, the implementation strategies, type of systems adopted, the
extent of modifications to the base system, and the benefits the companies get from
ERP. (Vincent A. Mabert, Ashok Soni, M. A. Venkataramanan, 2003)
Authors N. Morton and Q.Hu (2008) identify using structural contingency theory that,
a critical determinant of an information system’s success within an organization is the
“fit” between the design of the system and the organization.
Accordingly, the internal structure of an ERP system is not necessarily aligned with the
implementing organization’s existing structure. However, because of the promising
strategic and operational benefits that may occur after the implementation of an ERP
system, an organization’s top management is often tempted to adopt ERP without
understanding the consequences of a potential misfit between the system and the
organization.
“Contingency” is any variable that moderates the effect of an organizational
characteristic on organizational performance, the contingency theory include
efficiency, profitability, and worker satisfaction, size, environment, and technology.
Applying the structural contingency theory in the context of ERP implementation,
it is possible to see that ERP systems possess characteristics that relate to the task
uncertainty and task interdependence contingencies, as well as to the structural
dimensions of formalization, structural differentiation and decentralization. Low-levels
of business integration and relatively non-standardized work process will encounter
high resistance in ERP implementation, like organization that use already a crossfunctional structure. Political conflicts and IT projects result as critical success factors
in ERP implementation too. The grater the change the system imposes, the grater the
resistance; the less chance for implementation success. Organizations implementing
ERP must consider the fit with their structure, the consequences of changing their
business process, and the potential resistance from within. Such organizations must
recognize that the implementation of ERP systems is likely to induce conflicts within
their organizations and consequently impose difficulties and even result in failure in the
implementation process if an initial misfit exists. Managers must be able to determine
if a proposed ERP system is good fit with their organizational structure, or if it may only
be a good fit with certain parts of the organization, or if significant customization and
process redesigning or reengineering will be require. (Neil A. Morton, Qing Hu, 2008)
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Livermore and Rippa (2011) collected the most influential factors in ERP implementation
into two categories: Internal and External. Internal variables included (1) Organizational
culture, (2) Leadership, (3) Communication, (4) Company size, and (5) Company
history while external variables consists of (1) National culture, (2) Industry, (3) Economic
conditions, and (4) Political conditions.
Maditinos et al. (2011), in their work, observed that consultancy service during the
ERP implementation process is essential; knowledge transfer significantly influence ERP
system success; knowledge transfer is more important than effective communication,
and resolution among organizational members; top management support is found to
be less important users support.
In low income countries, there may be various barriers such as bureaucracy, poor
technology infrastructure, and lack of consultancy firms in order to plan, develop and
implement an Enterprise Resource Planning project. (Özlen, 2012)
Özlen in his paper mentioned Dimitrijević and Rodić survey from 2011, with which
explaned the difficult to have and therefore give information about the situation of
SMEs in Bosnia and Herzegovina. They signified the problem of unarranged statistics
on SME sector in Bosnia and Herzegovina. They also reported that data about SME
sector cannot be achieved on EUROSTAT, OECD databases, European Innovation
Scoreboard or other statistical databases. Furthermore, they stressed on the importance
of Adjustment of statistical system for monitoring of SME sector and its performances for
Bosnia and Herzegovina in order to define a better policy making for SMEs in general.
MAPEER SME reports that there is also no specific data available for defined sectors of
ICT and Environmental technologies.
The empirical findings in Özlen’s research, showed that the BiH scene does not present
a satisfactory result. There is a need for qualified staff to run ERP-like systems through
BiH SMEs. Even the awareness of ERP is not reasonable. Additionally, it is observed that
there is not enough number of organizations in BiH to conduct the survey. However,
the majority of available companies resist filling out the survey. Furthermore, many
organizations among the surveyed SMEs do not want to be in a further research and
some of them do not want to get the results of the survey even they have completed
the survey. On the other hand, there are some managers who are interested on ERP
and other types of high technologies. (Özlen, 2012) „Despite, BiH high-technology
enterprises feel the force of outside competitive environment in order to implement ERP;
they don’t feel political support. Hence, it is necessary for them to inform government
about the issue or make strategic decisions in order to overcome this problem. Secondly,
this study observed that the enterprises have motivated to implement ERP-like projects
and feel the organizational strength to start the implementation. But, they cannot find
proper consultation firms in order to adapt the projects to the organizations. Moreover,
the surveyed organizations are aware of the possible advantages, disadvantages,
difficulties and critical success factors of ERP implementation. Finally, the organizations
seemed not to outsource ERP implementation but instead to develop in-house.“
(Özlen, 2012)
In this literature review it is visible that most of them are just theoretical expositions
because of lack in empirical research. Second fact that is Critical Success Factors
cannot be used just to see the success of an ERP implementation during and after the
process but they can be used just before the decision to implement an ERP system in
an organization. An organization can make an analysis of internal and external threats
and opportunities regarding this factors, using the findings and frameworks presented
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in the study like a guide (Bradley, 2008). And because of this fact the only problem,
that can be, about ERP implementation, is the differences between organizations
in different countries, like it said Asian organization differs from North American and
European organizations, that means some critical success factors may differ from
country to country and this means new research about critical success factors in
different country can be made.
Research methodology and objectives
For this survey it was decided to conduct a primary research and focus on gathering
enough information from three respondents. The chosen respondents are three
Bosnian company, which they differ in type of their business and organization. They
use different ERP systems, and they are very stable and successful in their work for a
long term.
Since qualitative research proposes use of hypotheses - generating rather than
hypotheses - testing research, it was able to start the research study without having to
test these hypotheses and to develop them by listening what our respondents have
said.
The main objective in the research is to find out which factors affect ERP implementation
in Bosnian companies and, to find this is necessary ask some main questions, that are:
1.
2.
3.

“What bring them to purchase an ERP system?”
“Which difficulties they had during implementation?”
“What bring them to have a successful usage of their ERP system?”

All collected information are obtained in different ways of answering to an identical
questionnaire of 30 questions for all respondents; one was an interview face to face,
one was a correspondence by e-mails and, the last one, a deputy of the company
attended to a presentation, organized by some students, where he explained the ERP
implementation in their firm.
Because of ethical issue in the paper the three companies’ names will not be known,
and they will be named each with a letter of alphabet “A”, “B”, and “C” company.
The companies, how it is mentioned before, are stable and successful company, they
were chosen because of their success in manage and implement an ERP system. And
hopefully the findings of this research could help other companies with difficulties in
implementing ERP systems in their own.
The reason why ware chosen three different types of companies, with different
organizational culture, is because it was necessary to show how a totally domestic
big private company differ from a public company and this two differ from a big
multinational private company that operates on almost entire Balkans. One more
reason is because it is necessary to show that there are successful company that work
hard to be first in what they are doing, and to show that “not everything is black as it
is thoughts”.

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Results
Company “A” - The totally domestic big private company - It has around 3000
employees, begin with a small retail and wholesale company that begin his “first step
to be big” with acquisitioning another company, and acquisition remain their strategy
to conquest market share through years.
Management, after some conflicts about adopting the idea of an ERP system, finally
decide to change their existing IT solution for controlling the activities in their company,
that become increasingly bigger through years, with Microsoft Dynamics Nav ERP
system that is used as a roll out for all the acquired firms-.
They purchase it for about 200.000,00 KM, the decision was a strategic action taken
because of financial and organizational aspects. The IT solution that they had before
was a good option in the beginning but later became heft and, errors just became
too expensive.
The ERP system has almost every function, except the logistic and warehouse because
of physical problems.
The problems that they had during the implementation was adaptation to the new
ERP system and customization, integration of every department, data cleansing from
the seminal system that they had, work on current activities during the preparation
phase, unregulated activities process, unrealistic expectations.
Positive aspects of the ERP implementation are: organization as a whole, elimination of
dabble data, supports the integrated growth of the company and all its parts, indirect
benefits to customers, decreasing costs and time.
Because of the total support, during the implementation process, from the owner of
the company and from the top management, which have a good knowledge about
ERP systems, they could successfully implement Microsoft Dynamics Nav.
Company “B” – The public company – Is a medium size enterprise, financed with state
budget mostly.
In 2004 after the committee chose between three ERP offers, they begin to use, for
financial purpose, one ERP system named “Times” that a Croatian firm custom made
for them and, which they purchase for about 25.000,00 KM, in that time was the
cheapest offer that they had. In 2010 after the same process of choosing between
three ERP systems, they purchase another system named “Burial”, the same custom
made from a domestic company, this one was just for customer relationships.
They didn’t had too much problems with the system “Times”, just little problems during
inserting some data, but not relevant because they could manage it, and they had
problem with server because many times shut down.
They had problem with “Burial” because of the data of the customers, factors like
changes in demography, migration of the population during and after the war in
Bosnia and Hercegovina, natural selection of the payers and handwrite database
had a big effect on the implementation. They have problems with technical support,
because first full the company that made them the system, closed down and a person
which worked on the implementation project, give them technical support but is not
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in the country anymore, the company have to pay very high prices for servicing the
ERP system.
The positive affect of the ERP system implementation are: promptness, good records
and relief for the customer.
A good company organization, a good data base and the software itself are the
success factors that affect a successful ERP implementation in this company.
Company “C” - big multinational private company that operates on almost entire
Balkans – The number of employees of the company in Bosnia and Hercegovina is
unknown, because the collected answers were given from an employee from Belgrade
that work especially on the implementation of the ERP system in the company that
use the roll-out method of implementation through all the companies in Bosnia and
Herzegovina and in other Balkans countries.
In this company they use SAP ERP system ECC 6.0, the person which give the answers
didn’t know the exactly price of the system, but he can tell that is a big investment.
The decision of implementing this ERP system was a strategic decision in front of entire
business group. On the proposal of the IT sector, company management has decided
to implement a serious ERP solution to enable fast and efficient development of the
business system to accompany the dynamic growth of the companies within the
group. They implement in all spheres of the business.
In the case of rollout are avoided the classic problems of development functionality,
so they challenge the implementation of any adjustment structure and „purity „of
data from the old system to the new SAP structure. They just had some difficulties with
CRM that includes user’s data (mother data, services, equipment ...) that it had to be
adapted to the new needs of the SAP system. The solution speeds up the application
of information tools
The positive thing about SAP ERP system is that delivers the automation of business
processes, their control and feedback, ensures the integrity of the business system, which
ensures that the data for export from any part of the business system is immediately
and unconditionally available to authorized users of other parts of the business system.
A particular benefit of implementation of the SAP ERP system is the safety and security
of data for export business system.
The decision and the support of the management in project implementation, the
“young“ employee structure that has no resistance to information technology and the
support staff from companies that are already using the SAP solution are the success
factors that affect an excellent ERP implementation in the company.
Discussion
Looking at the literature review and comparing the theoretical findings with the
research’s findings, is possible to conclude that:
The similarities in all three case are that management had a very important part in
successfully implement the chosen ERP systems, giving support in all phases of the
implementation and in bringing good decisions. Than the problem which the three
company had, was the problem with the data cleansing.
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Is possible to see that being a public or private company does not interfere a lot in
having a successful implementation, it just decide which ERP system a company can
afford because of budget restriction that the state can give.
Another fact is that a custom made ERP system that is sell from a small company
can work efficiently like the ones from a famous company like SAP, maybe the only
difference in using a custom made system than a standard one is in the organization
size and the problem with the technical support.
It is obvious that, depending of the nature of the business, internal and external factors
can affect the implementation.
It can be said that the problem for company “A” were mostly organizational because
of their business strategy of acquiring other companies.
For company “B” were financial problem because, of the budget restriction. We
find sociodemographic problems, but this type are just referred to the nature of the
business.
In the “C” company is possible to comment that maybe because of the roll-out
methodology of implementation they don’t have strategical, organizational neither
cultural problem, just technical about data cleansing.
In the result part is not mentioned that all three company during implementation had
training periods where the final users are educated and trained to use ERP systems
in the best way. It is important that education and implementation trainings are
regularly held especially when new innovation for the systems are offered to increase
the functionality and efficiency of the system that make the company effective and
efficient too.
All three company comment that ERP system is just a tool, and is just to help employees
to be efficient and effective.
Conclusion
This study provide just a small piece of new finding about successful ERP system
implementation referred to the Bosnian market. How it said in the introduction part is a
unexplored field in Bosnia and Herzegovina. More research have to be done to have
a clearly picture of the situation in this country. In this work are used just three success
companies, but is just a small generalization that has been done to find out what
affect ERP implementation.
More education has to be given to the students, entrepreneurs, investors and
companies as well and to accomplish this is necessary to have more information. This is
possible to figure out if the country’s policy join and allow the analysis and researches,
because without a clear picture of the situation in the country and without adequate
data, investors will bypass this region that has a lot of opportunities.

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References
• Bradley, J. (2008). Management based critical success factors in the
implementation of Enterprise Resource Planning system. . International Journal
of Accounting Information Systems., 175-200.
• Jose Manuel Esteves, Joan A. Pastor Collado. (2002). Understanding the ERP
Project Champion Role and its Criticality. ECIS.
• Kaupp, G. (2016). How Much Does a Typical ERP Implementation Cost? Retrieved
from ERP Software Blog: http://www.erpsoftwareblog.com/2012/09/how-muchdoes-a-typical-erp-implementation-cost/
• Livermore, C. R.; Rippa, P. (2011). ERP Implementation: A Cross-Cultural
Perspective. Journal of Global Informationa Technology Management, 5-26.
• Maditinos, D.; Chatzoudes, D.; Tsairidis, C. (2011). Factors affecting ERP system
implementation effectivness. Journal of Enterprise Information Management, 6078.
• Mullins, R. S. (2013, October 25). The relationship between project management
practices and enterprise resource planning implamentation success rates.
Phoenix, USA: UMI Diseertation Publishing - ProQuest.
• Neil A. Morton, Qing Hu. (2008). Implications of the fit between organizational
structure and ERP: A structural contingensy theory perspective. International
Journal of Information Management, 391-402.
• Özlen, M. K. (2012). CURRENT ENTERPRISE RESOURCE PLANNING SNAPSHOT
IN BOSNIAN SMALL AND MEDIUM ENTERPRISES. Journal of Community Positive
Practices, 500-519.
• Shahin Dezdar, Ainin Sulaiman . (2009). Successful enterprise resource planning
implementation: taxonomy of critical factors. Emerald insight, 1037-1052.
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360: http://www.erpsoftware360.com/erp-software.htm
• Top ERP software Products. (2016). Retrieved from Capterra: http://www.
capterra.com/enterprise-resource-planning-software/
• Vincent A. Mabert, Ashok Soni, M. A. Venkataramanan. (2003). The impact of
organization size on enterprise resource planning (ERP) implementations in the
US manufacturing sector. Omega , 235-246.
• Weiling Ke, Kwok Kee Wei. (2008). Organizational culture and leadership in ERP
implementation. Decision Support Systems , 208-218.

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                <text>Abstract: Enterprise Resource Planning (ERP), is the new generation theme in business,  every company need a successful ERP system, but mostly of company that want to  implement ERP have many problem, financial and managerial.  This paper tend to analyze which critical success factors affect the ERP implementation  in Bosnia and Herzegovina, because unfortunately in this country, there is a lack in  information about ERP implementation and many firms have big problem during  approaching the new system, and fail in their intents.  Many researchers in developed country, have brought their conclusion about which  factors are most affecting ERP implementation, and through their studies it will be much  easier to determine what affect ERP implementation in Bosnia and Herzegovina, are  the same problem affecting the implementation like in developed country or there  are different problems and factors that cause unsuccessful usage of ERP system in  companies, and how firms can easily and successful use ERP systems in this country</text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

Entrepreneurial Culture as a Prerequisite for the
Formation of Innovation Driven Organization
Bojan Moric Milovanovic
Faculty of Economics and Business, University of Zagreb
bmoric@efzg.hr
Boris Sisek
Faculty of Economics and Business, University of Zagreb
bsisek@efzg.hr
Marko Kolakovic
Faculty of Economics and Business, University of Zagreb
mkolakovic@efzg.hr
Mladen Turuk
Faculty of Economics and Business, University of Zagreb
mturuk@efzg.hr
Corporate entrepreneurship refers to the explanation of entrepreneurial
activity in the medium and large enterprises, and includes the creation,
development and implementation of new ideas, while innovation may
represent new products and services, administrative procedures and
production processes. Literature shows that corporate entrepreneurship
and successful entrepreneurial orientation can significantly increase the
company’s competitive position and value added, and that the innovation
is a crucial aspect of the entrepreneurial process. Creativity and innovation
are critical for the success and survival of the company. In modern
economic conditions it is evident that the economy is becoming primarily
based on intangible sources of value and those concepts such as
reputation, trust and loyalty have a concrete impact on competitive
advantage, financial performance and businesses survival. Company’s
culture is an example of an intangible element. The culture of an
organization consists of the basic assumptions and beliefs upon which
companies are formed, how its members behave and how it defines itself
in relation to the external environment. In forming a system for promoting
entrepreneurial activities various factors should be taken into
considerations, such as: fostering the entrepreneurial and risk-taking spirit
in the organization, attracting and retaining the best talent, and promoting
venture success. Since the organizational culture is necessary for the

67

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realization of business excellence and stakeholders’ value, in its essence it
has to be entrepreneurially inclined, therefore a certain contradiction
between individual autonomy and collective cooperative culture remains
the problem of a new entrepreneurial culture model. The paper analyzes
entrepreneurial culture as a factor that influences realization of business
excellence. In modern times this distinct competitive advantage is
extremely difficult to achieve if a company is not entrepreneurially
oriented. That means meeting prerequisites necessary for continuous
innovation as the source of competitive advantage. Support and
development of innovation presupposes favorable work environment,
adequate human resources management, entrepreneurially oriented
organizational culture and a balance between individual initiative and
cooperative behavior.
Keywords: Organizational Culture, Corporate Entrepreneurship, Business
Excellence, Stakeholder Approach

68

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ŠIŠEK, Boris
KOLAKOVIĆ, Marko
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                <text>Corporate entrepreneurship refers to the explanation of entrepreneurial  activity in the medium and large enterprises, and includes the creation,  development and implementation of new ideas, while innovation may  represent new products and services, administrative procedures and  production processes. Literature shows that corporate entrepreneurship  and successful entrepreneurial orientation can significantly increase the  company’s competitive position and value added, and that the innovation  is a crucial aspect of the entrepreneurial process. Creativity and innovation  are critical for the success and survival of the company. In modern  economic conditions it is evident that the economy is becoming primarily  based on intangible sources of value and those concepts such as  reputation, trust and loyalty have a concrete impact on competitive  advantage, financial performance and businesses survival. Company’s  culture is an example of an intangible element. The culture of an  organization consists of the basic assumptions and beliefs upon which  companies are formed, how its members behave and how it defines itself  in relation to the external environment. In forming a system for promoting  entrepreneurial activities various factors should be taken into  considerations, such as: fostering the entrepreneurial and risk-taking spirit  in the organization, attracting and retaining the best talent, and promoting  venture success. Since the organizational culture is necessary for the  International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo  68  realization of business excellence and stakeholders’ value, in its essence it  has to be entrepreneurially inclined, therefore a certain contradiction  between individual autonomy and collective cooperative culture remains  the problem of a new entrepreneurial culture model. The paper analyzes  entrepreneurial culture as a factor that influences realization of business  excellence. In modern times this distinct competitive advantage is  extremely difficult to achieve if a company is not entrepreneurially  oriented. That means meeting prerequisites necessary for continuous  innovation as the source of competitive advantage. Support and  development of innovation presupposes favorable work environment,  adequate human resources management, entrepreneurially oriented  organizational culture and a balance between individual initiative and  cooperative behavior.  Keywords: Organizational Culture, Corporate Entrepreneurship, Business  Excellence, Stakeholder Approach</text>
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                    <text>1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo

Entrepreneurship Opportunities and Problems in Indonesia
Selim ÖZDEMĐR
Dr., Department of Business Administration, Qafqaz University, Baku / Azerbaıjan
selim.tx@gmail.com
Abstract: In 2008 when I visited to Jakarta for editorship of the book “Entrepreneurship
Opportunities in Indonesia” two different survey studies with regard to entrepreneurs and
companies were completed. In face to face meetings with company supervisors and official
authorities more detailed information related to this subject was collected. In 2004 while visiting
Malaysia, Singapore and Indonesia during a 6-month academic study, I gathered background
information on these countries, and no doubt that these data had made positive contributions to
these studies.
In this study four main topics were examined: “current potential in Indonesia for foreign
investors”, “opportunities in different sectors”, “potential problems” and “business relations
rules”, which were responded by about 100 company supervisors and government authorities.
Key words: Entrepreneurship, investment opportunities, Indonesia.

Introduction
Indonesia can be considered as one of the richest countries on Earth due to its biological diversity. The
country is located between Asia and Australia, comprised of more than 17,000 islands that stretch 5,000 km
from east to west. Because of its complex geographical make-up and unique biogeographic position Indonesia
has enormous ecosystem diversity, as well as a fascinating history and heritage. In terms of human diversity,
with more than 210 million inhabitants, the country ranks as the fourth most populous nation in the world and
the third largest democratic country. It is also the world’s largest Islamic nation, where a constitutional freedom
to practice other religions sees major groups of Christians, Buddhists, Hindus and other faiths existing side by
side. There are approximately 336 distinct recognized cultures that share more than 250 spoken languages. The
lingua franca, Bahasa Indonesia, was adopted only 77 years ago and is now widely used throughout this vast
land, serving as a means of communication and as a unifying factor. Indonesia is a diverse country and it is
among the culturally richest countries on Earth.1
In addition to this it has enormous mineral, marine and natural resources and it is evident that it ranks
as a major economic force in the region. Following the economic and financial crisis that hit the country in
1997, the Indonesian government recognized the important role of foreign investment in the reconstruction of
the Indonesian economy. During following years, the successive governments carried out legal and regulatory
reforms designed to make Indonesia a competitive destination for foreign direct investment. From the socioeconomic point of view the development of entrepreneurship is very important for Indonesia, where the market
economy is still in the process of development. The Encouragement Plan for Development of Entrepreneurship
approved in 1995 by the president Soeharto is of great importance. By the effects of economical crisis,
increasing level of unemployment caused the state to pay more attention to development of entrepreneurship.
In Indonesia approximately 40 million people are in search of a job. Formulation of such a big number of
unemployed people arise threats for the country such as increasing number of criminals and decreasing the
social welfare. The growth of employment in the country will be possible through the encouragement of
entrepreneurship by the government.2

1. Opportunities and Problems
For Indonesia, which is in a development trend, healthy growth of the socio-economic structure
depends on enterprises, mainly on SMEs. The SMEs share 99% of the total enterprises in Indonesia.3 Parallel to
country’s large territory, there are many problems both in general and specific with regard to placing the
entrepreneurship on the focus of attention. One can assume that in the future such a great country will have big
1

Doing Business in Indonesia, Urbach Hacker Young International Ltd (UHY), Indonesia, 2008, p.4
Selim Ozdemir, “Motivational Factors Influencing Entrepreneurship in Indonesia: An Empirical Study”,
(not published)
3
The Ministry of Cooperative and SME Republic of Indonesia, Press release, 2003. p.1.
2

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�1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo

enterprises with their important contribution to its development, and also there will be local and foreign
investors which can transform problems to opportunities and can utilize current potential of the country.
The Government of Indonesia has signed contract with 56 countries, including Turkey for the purpose
of protecting foreign investment. Indonesia takes the responsibility of protecting assets of these foreign
investors and allows sending profit dividend to their countries. Indonesia also is the member of MIGA
(Multinational Investment Guaranty Association). In relation with this, the government made a decision on
protecting foreign investments against possible political crisis. Indonesia launched some loosing politics in the
beginning of 1990s, such as decreasing tax rates in foreign trade policy, applying non-tariff barriers. The
Government of Indonesia is decreasing the number of import restrictions and products which are under special
license.
Encouragement items about foreign investors can be listed as follows:
• Foreign enterprise can be formed 100% by foreign share. But in infrastructure this is 95%.
• For foreign investors there isn’t any necessity to sale shares to local companies.
• There isn’t minimum capital amount.
• Foreign investment procedure and confirmation is being completed within 5 days.
• For the purpose of investment, custom taxes for machinery and raw materials have been decreased by
5%.
• The depreciation period in foreign investments is short. Dividend tax is 10%.
Despite the positive developments in the economy, Indonesia has smaller investment environment than
other rival countries in this region, because of bureaucracy, corruption and chaos in country’s law structure.
Although, there are noticed different developments, such as trade mark, copyrights, commercial secrets,
protection of industrial designs, yet there isn’t sufficient protection in this area. Fighting piracy with respect to
patents, trademarks and trade copyrights isn’t be successful. The Trade Mark Rights protects trademarks not
based on first utilization, but first registration. Finally, it can be noticed that commercial secrets are not
protected by the Indonesian laws. For industrial designs and models there isn’t enough protection either.
The Indonesian Government is applying labeling policy for imported food products. According to this
policy, for imported food products there must be used labels in Indonesian language. This application is making
obstacles for Turkish companies which are exporting food products not only to Indonesia, but to other countries.
In some sectors the existence of monopoly impedes development of entrepreneurship on the said sectors. For
example, companies that operate in natural gas sector have licensed rights which allow them to derive benefits
from different advantages, and this situation prevents other companies from entering these sectors.1

2. Entrepreneurship Survey Analysis in Indonesia for Foreign Investors
Doing researches on entrepreneurship in Indonesia is important for foreign investors who desire to
engage in entrepreneurial activities in this country. These studies, which analyze opportunities and problems in
entrepreneurship, will be guidance for the business world. General evaluation according to the survey questions
responded by approximately 100 Indonesian and Turkish entrepreneurs and official authorities are given below.
Four question topics were examined here: “current potential in Indonesia for foreign investors”, “opportunities
in different sectors”, “probable problems” and “rules in business relations” which were responded by about 100
company supervisors and government authorities.
Under the topic of “From the standpoint of foreign investors’ thoughts about current potential in the
country” the given responds were like this: Indonesia is an attractive country which has much more potential
for investors in different fields. Its geography, population and trade capacity is the most important potential. In
2007 there was 114 billion USD export and 74 billion USD import in this country.
There are enough subsoil and surface resources. According to export of coconut palm oil Indonesia
takes the leading position. The three largest companies of Indonesia are engaged in coconut palm oil
production. The country’s second largest company SINARMAS is doing business in four sectors: coconut palm
oil, paper production, construction and finance.
Rapid development of Taiwan, South Korea, Singapore and Malaysia and their relations with
Indonesia increases the potential of this region. There are about 48 million SMEs in Indonesia, and also there is
the Ministry of SME and its subunits.
Evaluations on the question “Which sectors in Indonesia are recommended for foreign investors and
what opportunities they have?” are as follows: Every sector is important, but potential sectors are: textile, mill
machinery, construction products, spare parts for cars, motorbikes, agriculture machinery, infrastructure and
apartment building, construction of hydroelectric and thermal electric stations, navigation, food and

1

Selim Ozdemir, Endonezyada Girişimcilik Fırsatları, (not published).

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consumption products, shop chains, mining (especially coal), electronic products, industrial agriculture
products, airline business, recreation business, telecommunication, oil and natural gas sectors.
It’s logical to provide raw materials and semi-finished products from Indonesia. “Container” fees are
very low and it’s possible to export “zero custom” technologic machines from Europe to Indonesia.
Mediterranean products like dry fruit, olive oil, greenery and fruit are important export products. Because of
cheap labor force, it’s difficult to enter the sectors such oil and gas. Agricultural and industrial products with
applied technical knowledge will be more suitable for foreign investors. There can be built a coconut palm oil
factory.
For those entrepreneurs who are engaged in small business, it’s recommended to open fast-food, candy
shops, and building mini-sport complexes. Due to region’s population important brand strategies can be
launched. Religion tourism is a potential business area which can bring much more benefits and returns on
investments. Doing business in education sector, especially opening a university with international status and
building education centers based on English language will be a strategic investment.
Thoughts on “Problems awaiting foreign investors in Indonesia” are the following: There is not
enough government incentive for foreign investors, the industry and infrastructure has not been developed well
enough and there are no mining rights. Like in many countries there are corruption problems in the enforcement
of adopted laws. Not forming of secure and healthy environment is an important obstacle. There are
considerable bureaucratic problems due to weak synchronization of the central and regional government units.
In Indonesia
another important problem for foreign investors is the conflicts between local people
in having rights on lands. Monopoly and protection, high costs, language based communication problems with
local people, geographic adjacency of Australia are the main disadvantages. Traffic jams in Jakarta is an
important problem for entrepreneurs who want to do business in this city.
“Entrepreneurs who want to do business in Indonesia must pay attention to factors in work relations”
are examined like this: One should possess special information about Indonesia. There were plenty of foreign
investors who lost money by different ways, like advance. There must be gained enough information from
individuals and entities that know this region well and then an action should be taken accordingly. With
possibility of 100% foreign investment, investors who don’t know country’s environment should be guided by
the state and other agencies which encourage foreign investments. Before doing investment it would be
reasonable decision to see the region. Market researches will help to reduce costs. The support of consultants
should be taken consultant in order to determine the investment costs exactly. It is necessary to take effective
marketing activities.
Personal relations are very important. For entering to market, short-term investments have more
advantages than long-term one. Those who want to start up a midsize business should find long-term support.
Such kind of support can be provided in three different forms: 1. Strong capital. 2. Company supported activity.
3. Cooperation with people who are well-informed about Indonesia.
Paying attention to the distance between work place and home will solve traffic jam problems. There
must be given standardized trainings and education to personnel and international exchange and development
programs should be applied for increasing quality. One needs to understand Indonesia, its local people and
culture. Those who want to open a business in this country must have patience at least like Indonesians.
Because, phrases like “sebantar lagi” (soon), “gampang” (easy) are the signs of time waste habits of this
country’s people.

Conclusion and Suggestions
In a country with 250 millions of population and rich natural resources, poorly developed industry and
infrastructure, weakly synchronized central and regional government authorizes with bureaucratic problems
directly affect the investments of foreign investors; trade relations are generally in import-export axis. In
meetings with Indonesian and Turkish businessmen one can notice the formation of necessary resources for
foreign investors to do business in important sectors.
In comparison with China, India and the USA, Indonesia is more pure market for foreign investors.
Indonesia is the country which conducts barter trade with other countries: exporting raw materials and
importing finished goods. This shows that Indonesia can be a potential trade partner. In many countries there
are very little advantages for small and middle size enterprises, however, in Indonesia there are many
advantages for them.
We can give the following suggestions for the formulation of effective entrepreneurial activities in Indonesia:
1. Increasing the state support to SMEs.
2. Development of laws for encouragement of foreign investors.
3. Decreasing the bureaucratic obstacles.
4. Effective struggle against corruption.
5. Development of investment consulting services for companies.

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6.
7.

Investors should start doing business with short-term investments.
To attract foreign investors to the country through organization of exhibitions and job picnics.

References
Bird, Alan and Hitoshi Matsuhashi (2003). “Entrepreneurs and Entrepreneurial Processes: Historical and Theoretical
Perspectives on Entrepreneurship in the Japanese Context”, Journal of Asian Perspective, Vol: 27, No: 3.
Eren, Erol (2001). Yönetim ve Organizasyon, 5. bs., Đstanbul, Beta Yayınevi,
Ertürk Mümin (1995). Đşletmelerde Yönetim ve Organizasyo, Beta Basım-Yayım-Dağıtım A.Ş., Đstanbul,
Koçel Tamer (2005). Đşletme Yöneticiliği, 10 bs. Arıkan Yayınları, AS Maatbası, Đstanbul.
Ozdemir, Selim (2009). Endonezyada Girişimcilik Fırsatları, (not published).
Ozdemır, Selim (2009). “Motivational Factors Influencing Entrepreneuship in Indonesia: An Empirical Study”, (not
published).
Robbıns P. Stephen (2005). Essentials of Organizational Behavior, 8th edition, Prentice Hall, New York.
Susando, Joseph (2005). “Creative Entrepreneurship in Indonesia :problems, strategies and challenges”, Asian
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Bahan Sidang Ke-7 Komisi Bersama Kerjasama Ekonomi dan Teknik Antara Indonesia-Turki, Istanbul, 17-18 September
2008
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the Investment Coordinating Board, Jakarta, 2008.
Doing Business in Indonesia, Urbach Hacker Young International Ltd (UHY), Indonesia, 2008, p.4
Doing Business in Indonesia Indonesian Social and Business Culture, Communicaid Group Ltd., London 2008, p. 2
Doing Business-Indonesia Investment Guide, the Investment Coordinating Board of The Republic of Indonesia, Jakarta,
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Jakarta, 2007.
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Indonesia-Turkey 7th Preparation Meeting to Economical and Technological Cooperation Council, Indonesia Republic
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Zabadi, Jakarta, 21.08.2008.
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http://asiafoundation.org/pdf/SMEsurvey_Indo.pdf, 10.05.2009
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