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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Women’s Environmental Network (WEN) 2007, Women’s Manifesto on Climate Change
Wiley
2009,
Social
sustainability.
[Online]
Wiley.
http://eu.wiley.com/legacy/wileychi/egec/ [Accessed 20 April 2010].

Available

at:

WWF-UK, 2006, Let Them Eat Cake: Satisfying the New Consumer Appetite for Responsible
Brand
Wiley
2009,
Social
sustainability.
[Online]
Wiley.
http://eu.wiley.com/legacy/wileychi/egec/ [Accessed 20 April 2010].

Available

at:

WBCSD 2008, Sustainable Consumption Facts and Trends, [Online] Available at:
http: //www.wbcsd.org/templated/ TemplateWBSCD/layoutap?MendID=1
[Accessed 25 April 2010].
WWF-UK, 2006, Let Them Eat Cake: Satisfying the New Consumer Appetite for Responsible
Brand
Persuade to Buy: Implications for Online Advertising
Alma Jeftić1, Dženan Đonko
International University of Sarajevo1, Faculty of Arts and Social Sciences,
71000 Sarajevo, Bosnia and Herzegovina
E-mail: ajeftic@ius.edu.ba
Abstract
The aim of this article is to explore the development of a variety of online advertising tools and
the implications that the characteristics of these tools have on their effectiveness, as well as to
discover how important are the amount and nature of cognitive processing that a person does
about a persuasive message in order to determine the kind of persuasion that occurs.
Even though advertisements are a necessary and important component of the Internet, most users
are merely concerned with the quality of online experience and do not appreciate pop-up ads.
However, the majority of previous researches in the area of online advertising lack in application
of psychological theories of information processing and attitude change. This article seeks to
explore the connection between cognitive processing and consumers' online experience as well as
behaviour change in order to provide the most important factors that attract customers. The study
18

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

is designed in qualitative research approach in which literature review method has been chosen.
The overview of contemporary researches in the area of online advertising will be provided
together with the analysis of psychological aspects of information processing. Moreover, this
study aims to obtain deeper understanding of elaboration likelihood model with the special
emphasize on two routes an individual will take in a persuasive situation and its application to
online advertisements.
It is concluded that cognitive aspects of information processing as well as elaboration likelihood
model need to be taken into account when creating online advertisements, especially banners and
pop-up ads. Also, the list of major factors that attract customers' and should be elaborated in each
advertisement is result of this qualitative research study.
Keywords: online advertising; persuasion; cognitive processing; banners; pop-up ads; elaboration
likelihood model; consumer behaviour; perceived intrusiveness.
1. INTRODUCTION
Even though advertisements are a necessary and important component of the Internet, most users
are merely concerned with the quality of online experience and do not appreciate pop-up ads.
Recent researches that explored forced viewing of online advertisements provided an
understanding of how consumers experience forced exposure situations in interactive
environment and also shed some light on feelings of irritation and avoidance as two major
consequences of perceived intrusiveness. However, the majority of previous researches in the
area of online advertising lack in application of psychological theories of information processing
and attitude change.
This article seeks to explore the connection between cognitive processing and consumers' online
experience as well as behaviour change in order to provide the most important factors that attract
customers. Moreover, this study aims to obtain deeper understanding of elaboration likelihood
model with the special emphasize on two routes an individual will take in a persuasive situation
and its application to online advertisements.
Two factors that most influence which route an individual will take in a persuasive situation are
motivation and ability. Which route is taken is also determined by the extent of elaboration.
Under high elaboration, a given variable can either serve as an argument, or as a biasing factor,
while under conditions of low elaboration, a given variable can act as a peripheral cue. The
persuasion is either increased or decreased depending on the strength of the argument presented.
Also, variables can affect the extent to which a person has confidence in, phenomena known as
self-validation role.
By linking missing parts together, this article connects the achievements of marketing research,
information science and psychology in order to explore the role and impact of online advertising
on consumers' behaviour. Also, the list of major factors that attract customers' and should be
elaborated in each advertisement is result of this qualitative research study.

19

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

2. METHOD
The study is designed in qualitative research approach in which literature review method has
been chosen. The overview of contemporary researches in the area of online advertising will be
provided together with the analysis of psychological aspects of information processing.
3. RESULTS AND DISCUSSION
3.1 Online Advertising: When, Why, How
According to the psychologist Carl Jung, every individual has a primary mode of operation in
each of the following four categories (Brook, 2000):
1.
2.
3.
4.

our flow of energy
how we take in information
how we prefer to make decisions
the basic day-to-day lifestyle we prefer.

Within each of these categories, people tend to be either extraverted or introverted, sensing or
intuitive, thinking or feeling, judging or perceiving. Advertisers should target their ads to appeal
to people with specific personality traits.
There are different types of creative advetising that can be used in order to attract consumers'
attention. The most popular are:
1. banner ads - attract customers’ attention through color, graphics, and, sometimes,
animation;
2. e-mail massages - companies use the e-mail model of advertising to cross-sell and up-sell
their products, to try to acquire potential new customers, to persuade existing customers to
buy again, to enhance customer loyalty, and to build long-lasting relationships with
customers;
3. interstitial ads - ads appear automatically as customers move between the pages of a Web
site, making customers wait for another page to load;
4. online directories - allows companies to gain visibility through online directories that help
customers find them easily, using a search engine;
5. pay-per-click ads – since advertisers pay only when customers click their ads, the
companies that display these ads benefit only when customers click them, and many
companies depend on this form of advertising to generate revenues;
6. pop-up ads - appear in a separate window, therefore they interrupt the flow of customers’
current tasks. The only way to move ahead is to close the window in which the ad appears
or click the window containing the site that caused the ad to appear;
7. pop-down banner ads - appear beneath the content on a Web page, on a banner at the
bottom of the page, so customers have to look at and click these ads to get rid of them;
8. search engine optimization - seeks to promote a company’s Web site by increasing its
visibility on search engine results pages;
9. sky scrapers - ads have the same function and properties as banner ads, but the rectangular
boxes containing them have a vertical rather than a horizontal layout. These ads usually
appear on the right side of a page and are linked to the advertiser’s Web site;
20

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

10. social networking - works best when it results from word-of-mouth or when a group
exists for people who want to know what is happening with a company or product;
11. sponsorship - companies can sponsor a Web site or a certain section of a Web site where
their ads appear.
Companies must also begin using advertising techniques that evoke an emotional response from
customers and that can be obtained through strategic planning and development of new
marketing touchpoints. Behavioral advertising observes customers’ behavior as they move from
one Web page or site to another (Sutherland&amp;Sylvester, 2000). When following this advertising
model, companies target ads to specific individuals, based on each customer’s past surfing
behavior. Because behavioral advertising tracks customers’ interests, there is an increased
likelihood that they will want the product or service advertised and be motivated to click an ad
(Sutherland&amp;Sylvester, 2000). With this method, different customers do not see the same ads on
a Web page.
There are several factors that help people to identify an ad that would bring them benefit,
therefore these variable factors should be motivating enough to ensure people act on the
information. Table 1 provides a summary of these advertising approaches and the factors that
attract particular customer to particular ad.
Table 1: Factors that attract customers to ad (Sutherland&amp;Sylvester, 2000)

TYPE OF AD

BEHAVIORAL

CONTENT LURE

CONTEXTUAL
APPROACH

CREATIVE ATTRACTION

21

HIGH ATTRACTION
Targets individual customers
Based on context and
customers’ needs
Motivates customers to
process information
Appealing to customers’
emotions
Moves customers to their
next steps
Makes customers want to
know more
Based on customers’ needs
Culturally significant
Blends in with surrounding
content

-

MODERATE
ATTRACTION

-

-

Rarely used, but when used,
is highly attractive
Provides a different flavor
Moves away from the
mundane associations of
advertising

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

HUMOR

INFORMATION

INTERACTIVITY

GEOGRAPHY

PRODUCT PLACEMENT

SPECIAL OFFER

TARGET AUDIENCE

VISUAL LURE
22

-

Based on context and
customers’ needs
Relevant to customers
Motivates customers to
process information
An excess of information can
add to customers’ cognitive
load
Gets customers’ attention
Engages customers’ motor
and cognitive skills
Motivates customers to
process information

-

Non-intrusive
Subliminal information
processing affects the psyche
positively
Shows the product in a reallife scenario
Most persuasive
Motivates customers to
process information
Based on customers’ needs
Based on customers’ needs
Culturally significant
Blends in with surrounding
content
Makes a good first
impression

Customers subjectively
perceive creativity
Rarely used, but when used,
gets customers’ attention
Provides a different flavor
Moves away from the
mundane associations of
advertising
Customers subjectively
perceive humor

-

Based on customers’ needs
Culturally significant
Blends in with surrounding
content
For a specific audience;
ignores the rest

-

-

-

-

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

WELCOMING IMAGERY

Gets customers’ attention
Emotionally appealing
Motivates customers to
process information
Warm imagery attracts
customers’ attention
Emotionally appealing
Motivates customers to
process information

-

It is evident that information processing, cognitive functioning and emotional responses have an
important role in shaping consumers' responses. Therefore, psychological aspects of advertising
need to be explored briefly.
3.2 Psychology of Online Advertising
The physiological changes that accompany customers’ emotional responses to advertisements
determine their next action, therefore the context in which an advertisement appears determines
whether the ad constitutes an effective call to action. Depending on what advertisers want to
convey particular advertisement type will be chosen. While the advertising approaches that
typically result in moderate attraction do affect customers, their perception of them can be
subjective (Schuman&amp;Thorson, 1999).
Effective communication must begin by obtaining the attention of the consumer. Then, the
consumer must process the information carried in the advertisement. Such processing of
information may be followed by an evaluation of the information, the source of the information,
and ultimately the desirability of any actions suggested by the communication. This evaluation
process may, in turn, give rise to the formation of attitudes, the development of intentions for
future action, and, eventually, an action. Different characteristics of an advertisement have effects
at different points in this hierarchy.
Recent researches have proven that pop-up ads elicit orienting responses (OR) (Diao&amp;Sundar,
2004). The psychological data also revealed the superior effect of pop-up windows over the
commonly used banners with respect to ad recall. This is consistent with contemporary theories
of OR and visual attention,which suggest that people tend to orient automatically toward those
mediated messages that are novel and unexpected in the immediate visual domain
(Diao&amp;Sundar, 2004). The larger implication of this finding is that formal features of media
messages can evoke involuntary attention, ORs in particular, not only in traditional media as has
been previously demonstrated but also in the new Web environment.
A recent study by Lang, Borse, et al. (2002) emphasizes the importance of considering content
when it found that not only animated banners but also textual warnings about one’s immediate
environment shown on a computer screen (e.g., There is someone behind you!) elicit ORs. As for
the effects on memory, it was found that banner ads had higher ad recognition than pop-up ads,
quite contrary to expectations derived from limited-capacity theory (Diao&amp;Sundar, 2004).
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Pop-ups may not only orient users’ attention to a specific location on the screen and thus
influence which stories will be processed and which will not (Johnson &amp; Proctor, 2004), but they
may also elicit frustration and therefore induce a shift in the locus of attention from a global
towards a local type of processing (Clore, Gasper, &amp; Garvin, 2001). The absence of new
modalities from informational Websites or the mere presence of a text-heavy site may increase
frustration, and a relatively low number of pop-ups can perhaps serve to provide a release. It is
needed to consider previous experience with computers and Internet along with other media
experiences as contributing factors that can provide a deeper understanding of this proposition.
3.3 Elaboration Likelihood Model
The elaboration likelihood model is a theory that states that the amount and nature of thinking
that a person does about a persuasive message is a very important determinant of the kind of
persuasion that occurs. According to this model there are two routes to persuasion: peripheral
route that does not require full cognitive processing and relies on a simple, low-effort decision
strategy such as source attractiveness or message length, and the central route that involves
carefully thinking about and thoroughly examining information relevant to a topic.
The extent of elaboration determines which route will be taken. Motivational factors include
(among others) the personal relevance of the message topic, accountability, and a person's need
for cognition, their innate desire to enjoy thinking (Petty, Briñol &amp; Tormala, 2000). Ability
factors include the availability of cognitive resources or relevant knowledge needed to carefully
scrutinize the arguments. The subject's general education level, as well as their education and
experience with the topic at hand greatly affect their ability to be persuaded.
Since the pop-up ads are not strong enough to catch consumers’ attention, advertisers develop
pop-under ads that remain hidden until the user have not completed her/his task on the main website. Therefore, the pop-under ads remain visible only after user has completed her/his job and
become able to process the advertisement. By using pop-under ads, advertisers hope to take
advantage of the permanent staying power of centrally processed pop-up ads.
3.4 Practical Implications
From a practical standpoint, the findings indicate that Web-site developers and marketing
practitioners should not be discouraged by the potential of pop-up windows to cause annoyance
and frustration, but carefully take advantage of this formal feature in catching online viewers’
attention and, hence, increasing brand awareness.
Although awareness is generally considered by advertisers to be positively related to purchase
intention, it might also motivate a negative behavioral response. At least one recent industry
study has made the claim that online users actively penalize brands that use pop-ups and mistrust
the companies that use and host pop-ups (Best, 2004). Another practical implication for
advertising industry is to develop more innovative types of advertising. The lack of animation
effect and the relatively inferior effect of banner ads on OR demonstrate the necessity for
exploring more-creative executional cues to increase advertising effectiveness accruing from
novelty effects. The pop-under ads should be concidered in order to fill in the gap of peripherally
processed pop-up ads, hence the purpose of the elaboration likelihood model cannot be neglected.
24

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

4. CONCLUSION
In this study, the overview of contemporary online advertising techniques is provided together
with users’ psychological reaction towards them. It is concluded that cognitive aspects of
information processing as well as elaboration likelihood model need to be taken into account
when creating online advertisements, especially banners and pop-up ads. These results provide
encouragement to develop and evaluate pop-under ads, as one of the effective advertising tools.
REFERENCES
Best, J. (2004). Pop-ups “commercial suicide” for firms. Retrieved April 20, 2012, from
http://www.zdnet.co.uk/news/workspace-it/2004/02/25/pop-ups-commercial-suicide-for-firms40145254/?s_cid=938
Brooke, R. (2000). Pathways into the Jungian World: Phenomenology and Analytical
Psychology. New York: Routledge.
Clore, G. L., Gasper, K., &amp; Garvin, E. (2001). Affect as information. In J. P. Forgas, (Ed.),
Handbook of Affect and Social Cognition (pp. 121-144). Mahwah, NJ.: Lawrence Erlbaum
Associates.
Diao, F., Sundar, S.S. (2004). Orienting Response and Memory for Advertisements: Exploring
Effects of Pop-Up Window and Animation. Communication Research, 31(5), 537-567.
Johnson, A., &amp; Proctor, R. W. (2004). Attention: Theory and Practice. Thousand Oaks, CA: Sage
Publications.
Lang, A., Borse, J., Wise, K., &amp; David, P. (2002). Captured by the World Wide Web: Orienting
to structural and content features of computer-presented information. Communication Research,
29, 215-245.
Petty, R. E., Briñol, P., &amp; Tormala, Z. L. (2002). Thought Confidence as a Determinant of
Persuasion: The Self-validation Hypothesis. Journal of Personality &amp; Social Psychology, 82, 722741.
Schumann, D.W., &amp; Thprson, E. (1999). Advertising and the World Wide Web. Philadelphia,
PA: Lawrence Erlbaum Associates.
Sutherland, M., &amp; Sylvester, A.K. (2000). Advertising and the Mind of the Consumer: What
Works, What Doesn’t, and Why. Sydney, Australia: Allen &amp; Unwin.

25

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                <text>The aim of this article is to explore the development of a variety of online advertising tools and  the implications that the characteristics of these tools have on their effectiveness, as well as to  discover how important are the amount and nature of cognitive processing that a person does  about a persuasive message in order to determine the kind of persuasion that occurs.  Even though advertisements are a necessary and important component of the Internet, most users  are merely concerned with the quality of online experience and do not appreciate pop-up ads.  However, the majority of previous researches in the area of online advertising lack in application  of psychological theories of information processing and attitude change. This article seeks to  explore the connection between cognitive processing and consumers' online experience as well as  behaviour change in order to provide the most important factors that attract customers. The study is designed in qualitative research approach in which literature review method has been chosen.  The overview of contemporary researches in the area of online advertising will be provided  together with the analysis of psychological aspects of information processing. Moreover, this  study aims to obtain deeper understanding of elaboration likelihood model with the special  emphasize on two routes an individual will take in a persuasive situation and its application to  online advertisements.  It is concluded that cognitive aspects of information processing as well as elaboration likelihood  model need to be taken into account when creating online advertisements, especially banners and  pop-up ads. Also, the list of major factors that attract customers' and should be elaborated in each  advertisement is result of this qualitative research study.  Keywords: online advertising; persuasion; cognitive processing; banners; pop-up ads; elaboration  likelihood model; consumer behaviour; perceived intrusiveness.</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Organizational Culture and Change in Sarajevo

Almira Kulovic
International Burch University, Faculty of Management
71000, Sarajevo, Bosnia and Herzegovina
E-mail: almirakulovic@hotmail.com

Abstract
Main aim of this paper is to explain and analyze the importance of organizational culture in
an organization, and the organizational change. Paper will define organizational culture, its
characteristics, impacts and functions in an organization. Also, it will analyze the
organizational change and the possibility of cultural change in an organization. There would
be different opinions and arguments about this topic and also the example of Sarajevo
company Elektropriveda will be presented. In this paper, both secondary and primary data
will be used. Considering the case of Elektropriveda, primary data will be presented and used
and secondary data will be presented through various definitions and theoretical part.
Established organizational culture has a lot of impact on organization performance and
development, and also on creating a competitive advantage of a company. It is very hard to
achieve the organizational change especially in the organizations with the strong culture.
Paper will try to answer on few questions such as is it possible to change organizational
culture and in what ways, and if change happens is it possible to manage it and how?

Keywords: Organizational culture, Organizational cultural change, resistance to change,
competitive advantage, and uncertainty

1. INTRODUCTION
Main aim and focus of this paper will be presenting the importance of organizational culture
in an organization and evaluating the possibility of organizational change. It is a concept that
serves companies to perform better and improve their outcomes. This paper examines the
possibilities of changing the organizational culture and the barriers that aggravate the change.
Main focus will be on difficulty of changing and managing the cultural change. The paper
explains it all, with linking an examples with theory.

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2. ORGANIZATIONAL CULTURE
2.1 Definition and explanation of the term
In the recent years, the term organizational culture becomes very popular topic of huge
interest among academics and practitioners. The concept of organizational culture is very
complex and broad because it is not possible to put it in some firm boundaries or limits, but it
is one of the most important aspects of an organization or company due to the fact that it
facilitates adaptation to change and innovative conditions of society. It is also one of the main
factors in determining the successfulness of the company, its competitive advantage and the
overall results and profit.
Due to enormous interest for organizational culture, the definition of it should be understood
and explained in a very clear way. It cannot be defined so easily, but it is very visible. The
most prominent and useful definition is given by Schein and he noted that organizational
culture is: "A pattern of shared basic assumptions that the group learned as it solved its
problems that has worked well enough to be considered valid and is passed on to new
members as the correct way to perceive, think, and feel in relation to those problems."
Organizational culture is basically set of same and shared beliefs and opinions among the
organization's employees and it distinguishes one company from other companies, and it is
generally recognized by its employees. It has an enormous impact on the behavior of
organization's members and it is one of the main characteristics which organization values.
Organizational culture actually brings
people closer and it
makes
easier
to
conduct reconciliation of business and the workplace. The organizational culture which is on
the high level is a subtle and sophisticated condition that certainly contributes to
the increase in efficiency and effectiveness of the organization. Defining and creating good
culture helps in predicting the company's success and position on a global market. There is a
general consensus that culture is the main part of an organization and it has to fit into strategy
of organization. So without a culture the company cannot have the effective strategy or the
effective strategic goals. Different organizations have different organizational cultures which
makes personality of the company very unique and stable. When it comes to external
innovations and changes, the existence and the type of the organizational culture plays a
significant role in habituating a change and determining a company's role in global market. It
is very important to mention that managing the organizational cultural change is very
important skill required by today's managers, leaders and the employees of the organization
due to rapid changes that companies face.

2.2 Importance and Impact
In the past 30 years, the term organizational culture is used to describe and analyze a human
systems and their behavior. Organizational culture and its types, aspects and norms are seen
as an important factor that affects the company's success, competitive advantage and
performance.
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The set of integrated concepts becomes the manner or strategies through which an
organization achieves its specific goals. It can therefore be postulated that an organization's
collective culture influences both the attitudes and subsequent behaviors of its employees, as
well as the level of performance the organization achieves. (Marcoulides and Heck, 1993)
Therefore, it has become a key factor in the development of an organization or the company.
Managing the organizational change can provide a foundation for competitive advantage.
There are lot of reasons for the company to possess a culture, and due to globalization and
increased competition, the need for organizational culture created an important step and skill
for every organization that wish to go in the raising direction. A common hypothesis about
this role suggests that if an organization possesses "strong culture" by exhibiting a wellintegrated and effective set of specific values, beliefs, and behavior patterns, then it will
perform at a higher level of productivity (Dennison, 1984). A big number of members who
accept the core values and if they posses greater commitment to those values, will result in a
stronger organizational culture. There are lot of key factors that makes organizational culture
the important term in organizational theories and development.
The primary importance of organizational culture is improving the organizational
performance. The cultural setting of the organization will affect the outcome of the methods
and also the performance of the organization (Naor et al., 2008). It makes people or
employees of the company as very important and empowers people to be innovative and to
work together in order to achieve desired goals. Organizational culture determines the
effectiveness, capacity and the organization's long term existence. It determines the
relationship among internal and external environment of the company and the maintenance
among them. One of the most important impacts of organizational culture is that it highly
affects and contributes to the image or brand of the company and it creates energy among
members of the organization to achieve desired outcome. Culture improves the stability of
social system and it helps to hold the organization together, in the context of what employees
should do and say. Organizational culture has a lot of impact on company's business strategy
and its strategic goals. In order to determine its vision and mission, company must look in its
internal environment and culture in order to implement the certain strategy. In other words,
what the companies do is determined by the culture.

3. ORGANIZATIONAL CHANGE
3.1 Factors causing change
In today's world, the organizations face a dynamic and rapid change. The increased
competition, globalization and the opportunity for more growth brought a wide variety of
expectations and needs from the organizations. This requires these organizations to adapt.
The ability to manage a change has become a very important and in some way required skill
for managers, leaders and employees of the organizations. To increase effectiveness, improve
efficiency, gain market share, or simplify the organizational design, managers are constantly
creating new programs, streamlining procedures, evaluating proposed courses of action, and
encountering new opportunities in their organizations' environments. All of these activities
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involve change. (Glick et al. 1990)There are lot of reasons and factors that cause change and
adaptation of the companies but the most important and prominent ones are to be explained in
further text.
Technology is one of the main causes of change in companies. Technology is changing
organizations and jobs. The improvement and advances in technology have a lot of impact on
the employees work. It is foundational thing for almost every organization, and it is
considered as one of the main ingredients for company to be successful and competitive. The
technological networks or computer networks are changing and shaping the whole industries
due to need of having access to many specters and aspects in a market.
Nowadays with the complex challenges that companies are faced, the economic changes or so
called economic shocks play a major role in causing a change. The reasons for this are the
creation of new businesses, declining or increasing of stock market and of course the
innovation. As we live in no certain world, the so called economic shocks are constantly
imposing the changes on the organizations.
Another one factor of causing the changes is competition. As we live in a fast environment,
there are lots of competitors in a global perspective. Global means that competitors can came
from every side and every corner of the world, so the organizations has to be very quick and
fast in order to defend themselves from competitors with a new innovative products and
services.
Social trends are also one of the concepts that impose change on organizations. It is widely
known that people are get used on buying through Internet, so the companies have to invest
not just in regular commercials and marketing, they also have to advertise through Internet or
some social networks.
All this can develop and cause resistance to change by employees of the company but also by
managers and leaders. It is widely known that the organizations and its members resist
change. It can be very beneficial and positive for the company because it proves that
company has a strong organizational culture, behavior and norms that respects. Resistance to
change gives stability but also can cause conflicted sides due to adaptation and the changing
nature of the workforce. The reasons for resistance to change are usually based on the
individual characteristics and security. It is very hard to change the habits of people or their
personality in a way. When people in the organization are confronted with the change, they
fell as their security is harmed due to reason that change always leads us into unknown
situations. The uncertainty may be one of the main reasons to resist a change. Uncertainty is
an aversive state that motivates strategies aimed at reducing or managing it (Bordia et al.
2004). It can be very hard to successfully achieve organizational change because it is similar
to changing person's habits and personality. As it is mentioned it is very hard to manage
change, but even harder to manage cultural change in the organization.

3.3 Managing Organizational Cultural Change
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Why do organizations are forced to change and transform its culture? This situation is most
likely to occur when the organization's environment is dynamic. When the company is
surrounded by rapid change and the environment is faced with fast change, the organization's
entrenched culture may no longer be appropriate. The organization can face the lack of ability
to respond on changing process and changing its cultural environment.
According to Cummings and Worley (2005), organizational culture cannot be changed easily
because the employees need time to acquaint themselves to a new culture. It is hard to change
personality and habits of employees and it would be much harder if the employees are not
innovative and conductive to change.
Although it is very hard to change culture of an organization, it is not impossible. There are
certain plans for implementing the change of the organizational change. First of all, the
certain approaches and strategies have to be identified to identify the change. Second action
would be developing the teams in order to implement identified actions. Plans have to be
documented and when change is visible, managing change is the next process. The focus
question here is if the organizational culture is eventually changed, can it be easily managed?
Even though there is lot of reasons why cultural change is so difficult process, it is not
impossible act. Effective cultural change is possible if certain conditions are implemented.
According to Stephen and Timothy (2007) cultural change is most likely to take when most
or all of the following four conditions exist: the existence of dramatic crises, turnover in the
leadership, young and small organization and weak culture. It is very important to explain
these four conditions in detail because cultural change is a lengthy process and it cannot be
done in couple of a months, it can take even few years.
It is widely known that some executives create a crisis to actually encourage a change of
culture. Also crises could be financial, technological or losing major competitor. Turnover in
leadership can be very efficient in an introducing and managing new culture. If someone
from outside comes to be new leader of the company, it is more likely that new values, norms
and beliefs will be established. If the organization is young and small, there is a huge
opportunity and possibility that cultural change will happen and the company can easily share
and manage its values if the company is small. If the company has a weak culture, it is more
possible to change it than to change the strong one.
Changing culture is a very complex and hard process; it is lengthy process which takes a
large period of time and in which managers and employees have to be very careful in order to
continue with company’s normal functioning after the change is done.

3.4 Organizational Cultural Change in Sarajevo
Sarajevo is a capital of Bosnia and Herzegovina, with a very distinct population within it.
Sarajevo companies possess a very strong organizational culture with committed employees
to their norms, values, beliefs and behaviors. Sarajevo market is consisted of many domestic
and international companies.
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The example of the domestic or state owned company in BiH is Elektroprivreda. It is very
successful company, with a high budget and the great opportunities and possibilities for its
employees. It is exposed to change, because it is on international market, but the company is
still working under old system and does not give the prior interest toward changing their
organizational culture. They are satisfied with the existing profit that they operate, and its
employees are not prepared for cultural change. Why? It is known that 30 or 40 years ago,
socialism system was represented, and still the organization is working by the old system,
values and norms. The employees are very much resistant to change, because the older
generations are not used to technology usage and advancement, they are not prepared to a
new system and culture after many and many years of working under one certain system and
rules. Employees are used to strong rules and regulations, and are not used to modern system
leading of the company. In Elektroprivreda there are not any training courses for its
employees, there are not any kind of yield to its employees, and strong culture of strong rules
and regulations is represented. Individual based resistance to change is also included, because
it is hard to change the strong habits of an employee who feel uncertain to go with the
change, because change is leading them into uncertain future and situation in which they
never were, and never experienced.

4. CONCLUSION
In order to understand the nature of organizational culture and its change it is important to
evaluate all the positive and negative sides that organizational cultural change brings and to
analyze all the important aspects and characteristics of organizational culture.
This paper gave the explanations of all important definitions of organizational culture, its
characteristics and possible outcomes. Also it presented the impact and importance of
organizational cultural change on companies. It can be said that organizational culture is one
of the most important things that the organization values and change of culture is very
difficult especially in the organizations with a strong culture. However, even though it is
difficult to change the culture of an organization, paper also gives reasons, ways and
arguments toward the possibility of such kind of act. Although it is difficult, it is not
impossible. To support the argument that it is difficult to change a strong culture in
companies, paper presents the example Elektroprivreda as of one of the most successful
companies in Sarajevo and the overall BiH. It is presented that employees in Elektroprivreda
are resistant to change and that they feel uncertain considering the cultural change, which
leads to lack of security among employees and uncertainty to go in unknown situations and
business.
However, organizational culture is a significant factor considering organizational
performance and its outcomes, and one of the most important ingredients toward creating and
sustaining a competitive advantage of a company. If the company desires to compete on a
global stage against all innovative and new offerings from their competitors it is important to
have strong organizational culture and ability to change it. Even though it is difficult to
achieve this goal, and even though rapid changes are reshaping the entire industries,
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companies should evaluate different planes of implementing changes, and try to adapt to a
new environment in order to stay stable, competitive and successful on global market.

REFERENCES
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Uncertainty during Organizational Change: Types, Consequences, and Management
Strategies. Journal of Business and Psychology, Vol. 18, No. 4, Springer
Cummings and Worley (2005), Organization Development and Change, 8th Ed., Thomson
South-Western, USA. (491-492)
Dennison, D. (1984), "Bringing Corporate Culture to the Bottom Line," Organizational
Dynamics, 13, 2, 5-22. Fuller, B., K. Wood
Glick H. William, Huber P. George, Miller C. Chet, Doty D. Harold, Sutcliffe M. Kathleen
(1990). Studying Changes in Organizational Design and Effectiveness: Retrospective Event
Histories and Periodic Assessments. Organization Science, Vol. 1, No. 3, 293-312,
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Marcoulides A. George and Heck H. Ronald (May, 1993). Organizational Culture and
Performance: Proposing and Testing a Model. Organization Science, Vol. 4, No. 2, 209-225,
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Naor Michael, Susan M. Goldstein, Kevin W. Linderman, and Roger G. Schroeder (2008).
The Role of Culture as a Driver of Quality Management and Performance: Infrastructure
Versus Core Quality Practices. Decision Sciences, 671-702.
Robbins P. Stephen, Judge A. Timothy (2007). Essentials of Organizational Behavior,
Prentice Hall; 9th edition, 253- 257

Stanley J. David, Meyer P. John, Topolnytsky Laryssa (2005). Employee Cynicism and
Resistance to Organizational Change, Journal Business and Psycology, Vol.19, No. 4, 429459

Schein Edgar, Organizational Culture Definition, URL
http://www.organizationalculture101.com/definition-of-organizational-culture.html

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                <text>Main aim of this paper is to explain and analyze the importance of organizational culture in  an organization, and the organizational change. Paper will define organizational culture, its  characteristics, impacts and functions in an organization. Also, it will analyze the  organizational change and the possibility of cultural change in an organization. There would  be different opinions and arguments about this topic and also the example of Sarajevo  company Elektropriveda will be presented. In this paper, both secondary and primary data  will be used. Considering the case of Elektropriveda, primary data will be presented and used  and secondary data will be presented through various definitions and theoretical part.  Established organizational culture has a lot of impact on organization performance and  development, and also on creating a competitive advantage of a company. It is very hard to  achieve the organizational change especially in the organizations with the strong culture.  Paper will try to answer on few questions such as is it possible to change organizational  culture and in what ways, and if change happens is it possible to manage it and how?  Keywords: Organizational culture, Organizational cultural change, resistance to change,  competitive advantage, and uncertainty</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Öniş, Z. (2000), “Luxembourg. Helsinki and Beyond: Towards an Interpretation of
RecentTurkey-EU Relations”, Government and Opposition, 35 (4), pp. 463-483.
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and Regional Development”, Turkish Policy Quarterly, Vol. 4, No. 3 (Fall2005).

Comparison Study of Approaches to Measuring Poverty Implementing Fuzzy Set and
Classic Set Using The Household Data of Turkey
Alparslan Abdurrahman Basaran1, Murat Alper Basaran2
1Hacettepe University, Faculty of Economics and Administrative Sciences, Department of
Public Finance, 06800, Ankara, Turkey
2Akdeniz University, Faculty of Engineering, Management Engineering Department,
07425,Alanya, Turkey
E-mails: aab@hacettepe.edu.tr, muratalper@yahoo.com
Abstract
Poverty is one of the issues several industrialized and developing countries encounter in the
world. No country is exempt from this problem and its consequences. The top list item of the
agendas of both countries and international agencies is related to diminishing poverty. Before
taking action against it, countries and agencies need to measure poverty based on collected
data. It is a sophisticated issue having several dimensions. So far measuring it with available
data has resulted with indicators which show some deficiencies. When poverty is considered,
it is a linguistic term and has a vague concept as mentioned in the theory of fuzzy set.
Therefore, a new approach is proposed in the literature to examine it in order to overcome
those deficiencies mentioned when classic tools are employed. On the other hand, fuzzy set
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theory is a mathematical tool used for linguistic calculations. For example, when said that
income level is low. Actually everybody knows what it means. But what it means changes
depending upon the perception of the person. Therefore, measuring low income is a
problematic area. Fuzzy set theory enables practitioners to calculate those linguistic terms. In
this study, the household data of Turkey of the year 2003 collected annually based on almost
25000 is used to calculate both classic poverty indicator(s) and fuzzy poverty indicator in
order to compare those measures. In the end we will show that fuzzy poverty indicator can be
comprehensive in some comparisons. Also, it provides more information in terms of
understanding the concept of poverty
Keywords: Poverty, fuzzy set, fuzzy index, Sustainable development

1. INTRODUCTION
In the past few decades the measurement of poverty traditionally took place by determining
whether an individual or a household could be classified as poor depending on whether their
income or expenditure was above or below a specific value, the poverty line. In the
measurement of poverty, after determining concrete poverty line the next step is to select
available indices which shows the fraction in the total population, the intensity of poverty and
the degree of inequality among the poor called such as respectively the head count, poverty
gap and the severity of poverty index. Contrary to these classical approaches, there is a
considerable and growing both theoretical and empirical, on the multi-dimensional measures
of poverty. According to this approach poverty is a complex and vague phenomenon to
separate the population poor and non poor. (Cerioli &amp; Zani, 1990) criticized the vagueness
concept of income and proposed a multi dimensional measure of poverty using fuzzy
set theory to evaluate living conditions in Italian county. (Cheli &amp; Lemmi, 1995)
enhanced the fuzzy concept method, called Totally Fuzzy and Relative (TFR), by deriving
deprivation indices directly from the distribution function. According to (Bantilan, Bantilan
&amp; Castro, 1992) the theory of fuzzy set provides a new approach to the use of traditional
economic variables such as income or expenditure to derive new measures of poverty.
Moreover the approach can readily make use of the extensive information contained in the set
of standard of living indicators. (Miceli, 1998) assess living conditions in Switzerland
following (Cerioli &amp; Zani, 1990) multi dimensional fuzzy measure of poverty. In this paper,
in the light of technique suggested by (Cerioli &amp; Zani, 1990) and (Miceli, 1998), fuzzy index
poverty is calculated for Turkey from the household survey conducted in 2003 (The State
Institute of Statistic of The Republic of Turkey, Households Survey, 2003). Also, classic set
theory, which is used in the calculation of regular poverty measures, is employed to calculate
classic poverty measure to compare the fuzzy one with classic poverty measure.
2. Background
Fuzzy set theory first was introduced by (Zadeh, 1965). Since then it has been widely
employed in many disciplines where the data are imprecise. In the classic set theory, an
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object is either a member of a set which is defined by sharp boundaries or not. This implies a
certain membership. However, in the fuzzy set theory, an object is a member of a set with a
degree of membership taking values from the interval [0 1]. In the classic set theory, an
ordinary subset A of a set U is determined by its indicator function, or characteristic function
defined by

(1)

The indicator function of a subset A of a set U specifies whether or not an element is in A.
There are only two possible values the indicator function can take. However, in fuzzy set
theory, any element belonging to a given fuzzy subset A of set U takes a value between 0 and
1 depending on its compatibility with this set. A fuzzy set A of set U is a set whose elements
are ordered pairs which are shown as follows:
(2)
where x is a generic element of U and μ (x) is called the degree of membership of x in the
fuzzy set A. Actually fuzzy set A of set U is a function from U → [0,1]. Also any fuzzy
subset V is a function. In the fuzzy set terminology µ is called membership function with the
defined domain which means that the function which will be defined according to some data
or some linguistic term, for example poverty, is specified by the experts. For a fuzzy set
:
U → [0,1], the function A is called membership function. Instead of A, μ is used as a
membership function throughout the paper. For a fuzzy concept, different functions A can be
considered. The choice of the function A is subjective and context dependent. For example,
“young” is a fuzzy concept and can be defined as follows:

(3)

where 40 and 25 are upper bound and lower bound respectively and x is generic term for the
fuzzy set “young”. It is easily verified that this membership function can take various values
between [0,1]depending on values of x . With this background information, poverty which is
a fuzzy term can be modeled by fuzzy set theory. The classic approach draws a line called
poverty line separating poor and non-poor. But this is not really helpful in differentiating the
difference between a person or a household just above the poverty line and other person or
household just below the poverty line in terms of understanding who is in fact poor or nonpoor. We are not saying that classic approaches are useless but they have deficiencies and
fuzzy set theory might provide remedies for them. Instead of classic approaches, in this paper
fuzzy index of poverty is employed for the data which are gathered by the Survey of
Households conducted by The State Institute of Statistics of The Republic of Turkey in 2003.
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As mentioned in the related literature, poverty is a multidimensional structure and requires to
combine different kinds of data. These data include continuous and categorical variables,
which are dichotomic and polytomic. In searching one index measuring poverty, both
categoric and continuous variables are generally employed and incorporated. This causes
problems both in interpretation and calculation.
3. Fuzzy Index of Poverty
Instead of classic approaches, in this paper fuzzy index of poverty is employed for the data
which are gathered by the Survey of Households conducted by The State Institute of Statistics
of The Republic of Turkey in 2003. Instead of making composite index which consists of
both categoric and continuous indicators, only continuous variables are selected. In fuzzy set
theory, fuzzifying is very useful means that help calculations much easier. The four variables,
which are annual disposable income, food expenditures, cloth and footwear expenditures, and
habitable area of the apartment, in this study are continuous. To calculate fuzzy index of
poverty, the first step is to fuzzify variables. Half of the median of the distribution is set to
minimum and twice the median of the distribution is set to maximum [4]. Half of the median
as a minimum is used to calculate the relative poverty of income by World Bank [6]. Twice
of median as maximum is used in the paper written by [4]. These lower and upper bounds are
adopted for all the four fuzzy indicators due to the fact that 25000 households have many
outlier cases and median is a robust statistic. The membership function used in calculating
degree of poverty of households is given as follows:

=

(4)

where i, j denote persons belonging to poor set (i= 1, 2,...,n) and indicators (j=1,...,k)
respectively and max min u ,u denote twice median and half median values of the distribution
respectively. In our study there are 25000 households and 4 indicators. Based on the
membership function above, the persons between lower bound and upper bound are thought
to be poor with different fuzzy grades in terms of four indicators. First indicator is calculated
based on income variable, second one is for food expenditure variable; third one is for
clothing and footwear expenditure variable and the final one is for habitable area variable.
For example,
0.6 which is that the subscript of 23 denotes second person in the
third indicator which means food expenditures with fuzzy grade 0.6. After calculating
indicators, it is crucial to combine these indicators in a sensible way to obtain a single
indicator that provides information about the deprivation of the households. In the literature,
there are many proposed ways of combining indicators to obtain a single indicator measuring
deprivation of households, for example, weights can be given by experts or some calculations
are made based on the proportion of poor in the population in terms of the given indicator.
Here the method used in [4] is employed to calculate the weights. The weights have to satisfy
some conditions:
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and
(5)
In order to find the weights used in the calculation of fuzzy poverty index, the formula below
is employed.

(6)

where

denotes the fuzzy proportion of the poor persons according to indicator

Weights related to indicators are given in Table 2. Then the indicator that measures
poverty can be calculated as follows:
(7)

The last step to obtain fuzzy index of poverty is to find a way of incorporating indicators. In
the literature, fuzzy index of poverty is derived as follows:

(8)

However, this is the case when the samples for all indicators are equal. In our calculations
samples are not equal size so each corresponding mean for the indicator is calculated then
mean of the means are derived based on the formula in (8).
4. EMPIRICAL STUDY AND CONCLUSION
In this paper fuzzy index of poverty is calculated for the data which are gathered by the
Survey of Households conducted by The State Institute of Statistics of The Republic of
Tukey in 2003. There exist issues in both calculation and interpretation when both categoric
and continuous variables are taken into account in measuring poverty in a single indicator.
Therefore only continuous variables are employed when calculating fuzzy index of poverty.
Based on the calculations, all information is summarized in Table 1.

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Table 1
Disposable Income

0.2219

Food Expenditure

0.2383

Clothe Expenditure

0.1219

Habitable Area

0.1843

FIP

0.1917
Table 2 Weights

Disposable Income

0.32

Food Expenditure

0.35

Clothe Expenditure

0.14

Habitable Area

0.19

As seen from the membership function in (4), when the values get close to zero, it means that
the personhas a membership grade close to zero is not considered poor in terms of the
indicator. In this study the composite single index shows 0.1917 membership grade. If we
examine each indicator carefully, food expenditure and disposable income indicators show
relatively high membership grades, which denote deprivation of the households, when
compared to cloth-footwear and habitable area indicators; especially cloth-footwear indicator
is a surprising result. This can be explained by the fact that textile industry is the one of the
most developed industry in Turkey and there is always excess supply which reduces prices.
Also habitable area shows that despite of relatively poor conditions in poor houses; square
meter area per person is wide. Although 25000 households are surveyed, available data for
disposable income are 8421 households. This makes FPI reduce for disposable income. This
might increase FIP.
Also, we summarize the results obtained from the classic measure in Table 3. This work is
the extension of the study conducted and presented in EUSFLAT-LFA 2005 in BarcelonaSpain.
Table 3 Classic Poverty Measure
Food Expenditure
Poverty except food

0.2812

Relative Poverty

0.1551

REFERENCES
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Bantilan, M.C.S, Bantilan F. T. and de Castro M. M., (1992). “Fuzzy Subset Theory in the
Measurement of Poverty”, Journal of Philippine Development, Num: 34, Vol. XIX, pp 97127.
Cerioli A., Zani S. (1990). “A Fuzzy Approach to the Measurement of Poverty”, Income and
Wealth Distribution, Inequality and Poverty, in Dangum, C. and Zenga, M. (eds).
Cheli, B., Lemmi, A. (1995). A Totally Fuzzy and Relative Approach to the Multi
Dimensional analysis of Poverty, Economic Notes, vol 24, pp115- 134.
Miceli, D., (1998). Measuring Poverty Using Fuzzy Sets, Discussion Paper no.38,
NATSEM, University of Canberra.
The State Institute of Statistic of The Republic of Turkey, Households Survey 2003.
World Bank, “Development Reports”, Attacking poverty, World Bank 2000/2001
Washington, D.C.
Zadeh A, Fuzzy sets, Information and Control 8 (1965) 338-353

The Importance Of Erp (Enterprise Resource Planning) Software And Choosing
Criterias For Business
Hakan Çetin1 ,Hakan Akar2
1Akdeniz Universiy, Faculty of Education
Department of ComputerEducationandInstructionalTechnology
2Akdeniz University, Department of Informatics
E-mails: hakanc@akdeniz.edu.tr, hakanakar@akdeniz.edu.tr
Abstract
With the increase of competition and being used information technologies by
business’ effectively, the software that organize flow of information and develop the
interdivisional integration have increased. While this study is emphasizing the importance of
ERP (Enterprise Resource Planning) software for business, reveals choosing criteria. In this
study, firstly, for business ERP system’s basic features, modules and profits are discussed. In
next parts, key considerations when choosing ERP software are emphasized and lastly
discussed how to ERP system put out an approach for business. In consequence of the
discussion, it is seen that Enterprise Resource Planning software for companies' internal
control activities and interdepartmental integration is successful and necessary.
Keywords: ERP, Information Technologies, Planning
123

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                <text>Alparslan , Abdurrahman Basaran</text>
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                <text>Poverty is one of the issues several industrialized and developing countries encounter in the  world. No country is exempt from this problem and its consequences. The top list item of the  agendas of both countries and international agencies is related to diminishing poverty. Before  taking action against it, countries and agencies need to measure poverty based on collected  data. It is a sophisticated issue having several dimensions. So far measuring it with available  data has resulted with indicators which show some deficiencies. When poverty is considered,  it is a linguistic term and has a vague concept as mentioned in the theory of fuzzy set.  Therefore, a new approach is proposed in the literature to examine it in order to overcome  those deficiencies mentioned when classic tools are employed. On the other hand, fuzzy set theory is a mathematical tool used for linguistic calculations. For example, when said that  income level is low. Actually everybody knows what it means. But what it means changes  depending upon the perception of the person. Therefore, measuring low income is a  problematic area. Fuzzy set theory enables practitioners to calculate those linguistic terms. In  this study, the household data of Turkey of the year 2003 collected annually based on almost  25000 is used to calculate both classic poverty indicator(s) and fuzzy poverty indicator in  order to compare those measures. In the end we will show that fuzzy poverty indicator can be  comprehensive in some comparisons. Also, it provides more information in terms of  understanding the concept of poverty  Keywords: Poverty, fuzzy set, fuzzy index, Sustainable development</text>
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                    <text>Biotechnology and Aquaculture in Sustainable Development
Altunok Muhammet, Peker Zerife, Serezli Ramazan, Tekinay Ahmet Adem, Kizak Volkan
Izmir Katip Celebi University, Faculty of Fisheries, Izmir, Turkey,
Tunceli University, Faculty of Fisheries, Tunceli, Turkey,
E-mails:
muhammet.altunok@hotmail.de,zerifesude@hotmail.com,ramazan.serezli@hotmail.de,
aatekinay@yahoo.com, volkan.kizak@tunceli.edu.tr
Abstract
Aquaculture is the fastest growing food sector in the world with its increasing role for
economy and safe food strategy of countries. Due to the continuing depletion of the fish
stocks, farming of aquatic organisms such as fish, crustaceans, molluscs and aquatic plants, is
now a substantial global industry supplying a significant proportion of the aquatic products
consumed. Shortage in food supply and high prices are the possible important risks in the
future, and aquatic products are the valuable sources of protein and essential nutrient
components for global food security and eliminating malnutrition. Aquaculture also plays an
important role in rural economies through the creation of new employments. In these cases,
aquaculture outputs will need to be enhanced several fold in order to meet the rising demands
for fish and other aquatic products in coming years.
Biotechnology options seem to be good potential for increasing aquacultural productivity,
food security and environmental quality worldwide. Biotechnology is offering valuable
options such as protein expression, microsatellite, gene mapping and genomic, DNA vaccines,
DNA chips, proteomics, transgenic technology and embryonic stem cell technology. This
technology provides genetic manipulations, molecular cloning, embryo manipulation,
genetically-engineered diagnostics, immunoprophylactic agents. All of these applications
could help improve the selective breeding, hybridization, productivity, health, growth,
nutrition, cryopreservation and conservation of genetic resources in aquacultural stocks for
the benefit of mankind. However, there is need for the regulation of biotechnology activities
in terms of the potential adverse impacts on the environment and human health. There is also
increasing concern about the impact of biotechnology on sustainable development in various
fields. The main environmental safety issue of these applications is the effects of genetically
modified organisms (GMOs) on biodiversity and gene transfer in the environment. Therefore,
this review discussed the integration of biotechnology and biosafety in aquaculture, and
policies for the environmentally sound use and management of aquacultural biotechnology in
sustainable development.
Keywords: Biotechnology, Aquaculture, Sustainable Development, Food security, Public
health

182

�1.INTRODUCTION
Aquaculture is the farming of aquatic organisms such as fish, crustaceans, molluscs and
aquatic plants under controlled conditions. Aquaculture is the fastest growing food sector in
the world with its increasing role in the economic development and safe food strategy of
countries. Recently aquaculture sector is faced with several challenges such as low
productivity, low diversification of species, high competition in the market and environmental
impacts that have resulted from the intensification and global development of aquaculture
industry. Seasonal fluctuations in environmental conditions and in the supply of resources
with good quality and stable costs such as feeds are also prevalent. Biotechnology is one tool
that holds much promise towards addressing these aquacultural problems. The relatively new
tools of biotechnology offer significant opportunities to improve aquacultural productivity
and environmental quality worldwide. Today biotechnology has developed creative new
methods to detect the gene liable for specific characteristics, such as disease resistance,
nutrient composition, and insert them into another fish or aquatic organism (Fletcher et al.,
2011). Biotechnology offers tremendous potential for improving production and it provides
opportunities to reduce the need for additives in feeds and the use of chemicals (e.g.
hormones). Advanced biotechnology in feed are rapidly evolving and promise to improve the
composition, digestibility and bio-availability of feed towards high growth rate (Brinker and
Reiter, 2011). All of these contribute to increase the intensity and produce more products at
less economic and environmental cost, thereby helping to build global food security and more
sustainable and environmentally friendly farming.
Aquacultural biotechnology could generally be separated into techniques; biochemical and
molecular markers, protein expression technology, microsatellite, RFLP and QTL analysis
and applications (gene mapping, gene cloning, transgenesis, population genetics, chromosome
(ploidy) manipulation, gynogenesis, androgenesis, sex reversal, proteomics, DNA chips
technology and embryonic stem cell technology. Protein expression technology allows
producing many bioactive molecules such as hormones, gonadotropins and enzymes. DNA
fingerprinting and mapping technologies are principally used in stock idenfication, breeding
selection and identification of genetic markers for significant traits such as growth
enhancement and disease resistance in the genome (Hew and Fletcher, 2001). This technology
is more effective and faster than traditional breeding techniques to develop new strains.
2.Sustainable development of aquaculture
According to the current trends in food sectors, wild fisheries, natural stocks and demand for
aquaculture products, it is awaited that aquaculture will become a major driving force to
increase food production worldwide. Products from aquaculture will need to be increased
several fold in order to meet the rising demands for fish and other aquatic foods in coming
years (Figure 1). It was recently estimated that aquaculture provides about 50% of all the fish
consumed by human today (FAO, 2010). On the other hand, the aquaculture industry will
have to double its food produce with less land and water in the next decades, mainly because
of growing pressures from urbanisation, industrialisation and climate change. Moreover,
water scarcity that results in competition for water amongst local people, farmers and
industry, is raising the potential for conflict.

183

�Figure 1. Projected supply of food fish originating from aquaculture and capture fisheries;
based on assumed constant capture fisheries production, constant production of fish meal,
constant demand for food fish and projected population increases. The line at 2015 represents
the point where the food fish supply from aquaculture is projected to equal that from capture
fisheries.(FAO, 2007):
The intensification of aquaculture has led to concerns attached to environmental impacts, food
safety, animal health and welfare, and socio-economic issues (Subasinghe et al., 2009). All of
these factors influence the sustainability in development of current aquaculture system. As a
principle for the sustainable development of aquaculture, it can be said that as the
improvement of economic productivity for aquaculture is necessary and this must be
environmentally acceptable. Therefore, the ecosystem where the aquaculture operation takes
place has to be identified to control unwanted interactions. The identifying process includes a
wide range of topics relevant to ecological equilibrium and biodiversity conservation. Hence,
environmental acceptability is the most difficult component of the sustainable development.
In addition to this, as an indicator, economic viability and improving the economic
performance of the aquaculture practices are also critical to achieve the improvements in
aquaculture efficiency and to meet the world's increasing demand for aquatic food.
General trends in development of the aquaculture sector are the following (Subasinghe, 2007):
(a) continuing intensification of aquaculture production;
(b) continuing diversification of species use;
(c) continuing diversification of production systems and practices;
(d) increasing influence of markets, trade and consumers;
(e) enhancing regulation and improving governance of the sector and
(f ) increasing attention on better management of the sector.
Aquaculture production increases but there is a question remains whether the industry grows
in a sustainable manner and fast enough to meet the future projected demand while preserving
the natural resources. To cope with this global uncertainity, biotechnology plays a key role in
the sustainable development of aquaculture includes economic and social development as well
as environmental protection throughout the world. Application of biotechnology to production
184

�of aquatic species has great potential to improve aquaculture and to meet demand for aquatic
foods. Along with increasing production of aquatic food products, biological techniques
should be applied to increase productivity and improve product quality. In parallel, there are
several potential key contributions of biotechnology both to increase resistance against
diseases and to increase growth rates of aquatic species. Biotechnology contributes to
sustainable aquaculture by reducing the dependence on chemicals, particularly antibiotics,
through the deployment of genes conferring resistance to diseases. Biotechnology also
provides powerful tools for the enhancement and protection of wild and cultured aquatic
species, particularly the improvement of fish stocks in commercial aquaculture production.
Also, biotechnology allows the production of species in more quantities on the same area
(intensification) at a lower cost, the support biodiversity and vital ecosystems, and the
reduction of environmentally damaging aquacultural practices.
3.Aquacultural biotechnology
Biotechnology has potential to affect aquaculture and can provide at least a partial solution to
the problem of feeding the world‘s growing population because without dramatic increases in
production this cannot be achieved. Exploiting more resources such as more water, fish for
meal and oil, and heavy use of chemicals for aquacultural use is environmentally
unsustainable. Modern biotechnology has also opened up opportunities to increase production
and enhance the quality of fresh and processed farmed species. In addition, farmed species are
now being developed to resist disease, and this will reduce losses and allows increased
production on same area, and therefore bring possible benefits to rural areas. Finally
biotechnology can contribute significantly to aquaculture industry, for example by helping to
make more diversification in farmed species that will more attractive to consumers. Modern
biotechnology will be a useful for the genetic improvement of aquacultured species and the
protection and management of wild aquatic populations.
4.Genetically modified species (Transgenics)
Recently, aquaculture sector is growing and developing in biotechonogy advance for genetic
improvements in aquatic species. As a main application of modern biotechnology transgenics
are new varieties of species have been bred by cross of two strains in order to transfer
desirable traits from each into the new variety to improve the genetic traits of the species used
in aquaculture. Transgenics involves the selective transfer of one or more genes for desired
traits from one variety to another. These traits may include improvement of growth rates,
larger size, more efficient feed convertion into muscle and control of sexuel maturation (Elzaeems, 2004). growth hormone genes from human or animal sources was successfully
introduced into several fish species such as salmon, trout and tilapia, resulted several times
faster growth than their natural counterparts. This is a faster and more accurate method of
breeding new varieties. If desired traits cannot be achieved by traditional breeding, the
transfer of genes between species also is possible. For exemple, better tolerance to
environmental stresses and increasing of resistance to extreme environments are important
applications to establish unique characteristics and produce a valuable biological product such
as antifreeze protein gene (AFP) transfer in fish for adaptation to a freezing environment
(Hew at al., 1992). In this regard, one more constraints should be the potential impacts of
climate change on aquaculture. Biotechnology responsible for the practical response to
climate change and can help to strengthen the adaptive capacity and resilience of the sector.
Tolerant of low oxygen levels in the water is a desirable genetic trait that can also be
185

�developed in the aquatic organisms by using different transgenic techniques. Intensification
and sustainable development of aquaculture will rely on disease prevention, and therefore,
biotechnology is essential way for greater resistance to pathogens and improvement of farmed
species health through selection for disease resistance (El-Zaeem and Aseem, 2004). Also, by
using this technique disease transfer between cultured and wild populations can be reduced.
New products and market opportunities can be developed related to aquatic species welfare.
There are two main techniques to transfer genetic material in fish. These are micro-injection
(injection of genetic material into newly fertilized fish eggs) and electroporation (transferring
of DNA into embryos or directly into tissues through the use of an electrical current).
RISK: However recent concerns about genetically modified species and food products derived
from them may curtail their widespread use. GMOs have not gained worldwide acceptance.
At this point, there is not enough independent scientific research to introduce their potential
risks to human health. Horizontal gene transfer from genetically modified plants to
microorganisms was shown in a previous study that genes from a transgenic crop move
quickly into weedy population (Snow at all., 1999). Questions concerning the transfer of
allergenic proteins and potential ecological impact of virus-resistant transgenic plants have
been also raised (Tepfer, 2002). Transgenic fish is offered new species for aquaculture
development but any escapes into the environment can threat wild populations and
biodiversity8.
5.Hybridization
Hybridization is a simple genetic technology that is the most practical way is the crosses in
captivity of males of one species and females of the other. Inter-specific hybridisation have
been practiced for aquaculture to increase growth rate, transfer or combine desirable traits of
two species and increase resistance to culture conditions. Hybridization also produces
monosex populations for the advantage of sexual dimorphism when the sex-determining
mechanisms in the parental lines are different such as hybridisation of tilapias. It is also
preferred for stocking programmes to reduce unwanted reproduction through production of
sterile fish or mono-sex populations and increase environmental tolerances. It is widely
practiced with many fish species throughout the world such as hybrid striped bass in the USA,
hybrid clarid catfish in Thailand and salmonids in general. This helps diversification and to
ensure a steady and consistent supply of fish to the market. The development of artificial
breeding techniques and the improvements in reproductive technologies allows more
domestication of aquatic species and mating many of them through artificial fertilization after
hand striping eggs and milt from fish. In marine fish culture, sterile hybrid fish should be
usefull because of the environmental concern (unwanted reproduction). Despite its
widespread use, hybridization has still to cope with some problems depend on the genetic
structure of the parents, particularly in the context of unexpected and undesirable results in
hybrid progeny, such as failure to produce sterile fish, loss of color pattern, and reduced
viability.
RISK: Hybridization does represent a genetic modification wherein genes are moved between
different species. Thus, escaped hybrids may be aquaculture industry's biggest environmental
challenges regarding to the genetic resources and biodiversity.
6.Hormonal applications
Biotechnological tools can be applied to induce breeding of fish and early development of
aquatic species. Gonadotropin releasing hormone (GnRH) is the most used now in the
induced breeding of fish and marked commercially throughout the world (Alok et al., 2000).
186

�Hormonal stimulation allows year-round production of gametes and fry of economically
valuable species. Domestication of species for aquaculture is necessary and the number of
domesticated aquatic species is still rising rapidly. Hormone therapy is applied to improve and
control of reproductive cycles during the domestication. Similarly, this tool may provide
techniques for improving the reproductive success and survival of endangered species,
thereby helping to preserve the biodiversity in wild. Higher growth of species in aquaculture
sector is one of the main goals for farmers, and therefore various types of growth hormone is
applyed in fish and other aquatic animals. Hormone treatment also includes inducing sterility
and triploidy.
RISK: Hormones are issues of great public concern because they pose a serious threat to
human and environment. The significance of these substances for the environment and human
health is not yet fully understood but they accumulate in environment and play important role
on sexsual dimorphism, fertility and toxicity in ecosystem.
7.Chromosome set manipulation
Chromosome manipulations have been applied extensively in the improvement of fish
breeding for gonadal sterilization, sex control and clonation. It is important practical way in
cultured fish species to induce polyploidy and uniparental chromosome inheritance. There are
two types of uniparental inheritance: gynogenesis that is the process of development with
maternal inheritance and androgenesis that is paternal. Poliploidy used to induce triploids to
produce sterile progenies. Induction of tetraploidy provides sterile triploids through
interploidy crosses between tetraploids and diploids. The technique also can be used to
generate homozygous lines in fish such as tilapias, cyprinids and salmonids.
8.Cryopreservation
Cryopreservation is a process where biological material is long-term preserved by cooling to
low temperatures usually at −196 °C in liquid nitrogen. As any physiological activities and
biochemical reactions is tranquilized and effectively stopped at these low temperatures,
therefore making it possible to keep them viable for long period. Cryoprotectant solutions are
used in the process to prevent preserved cells from damage due to freezing during the cooling
and thawing process. The development of cryopreservation technology provides short and
long term storage of gametes, and thus the technology has been adapted to cryopreservation of
fish spermatozoa. Application of the method to aquaculture increases the flexibility in
breeding of species; specificly if the sexes mature at different times (in hybridization) or
spawning season is very short. Cryopreservation overcomes problems of low amount of
semen from males in photoperiod treatment. The resulting benefits could include year-round
production of gametes and creation of new markets (cryopreservation of genetically improved
or phenotypic sperm). Gene banking of cultivated and wild aquatic organisms is also essential
and the technique may help to conserve genetic resources and biodiversity.
9.Aquatic species health and vaccines
Disease has become a primary constraint to sustainable aquaculture production and
improvements in aquatic animal health are coming from modern biotechnology.
Biotechnological tools such as gene probes and polymerase chain reaction (PCR) has showed
great potential in this area. Genetically engineered (DNA) vaccines are also being developed
to protect fish against pathogens and are expected to replace other methods of vaccine
187

�production. In general, DNA vaccines contain only genes of the pathogen, which produce the
antigen whereas conventional vaccines are made from live, weakened or killed pathogen. The
cost of this technique is low compared to producing weakened live organisms and these
vaccines more stable at normal temperatures. Previous studies showed that the non specific
defense system can be stimulated using microbials such as lipopoliysacharides,
peptidoglycans or glucans (Soltanian at al., 2009). This technology has been adopted for
aquaculture to improve the health and well being of cultivated aquatic organisms. The
development of new vaccines help the organisms recognize and fight diseases causing losses
to millions of dollars annually throughout the world. It also prevents the using chemicals in
aqauaculture, means preventing chemical pollution in environment and potential hazardaous
effects to human health.
RISK: However, genetically modified vaccines carry significant unpredictability and a
number of inherent harmful potentials and hazards such as potential risks about the vaccine
DNA to invade the host‘s genome and possibly trigger genes relating to tumour development.
Effects of these vaccines on the non-targeted species, possible genetic recombinations with
naturally occurring relatives and hybrid virus progenies are other unpredictable options. There
is, therefore, a great deal of caution surrounding the development of DNA vaccines at this
time.
Feed production
Nutrition is essential in maintaing a healthy stock in a sustainable and profitable aquaculture
and still in the developing stage. As feed costs rise and markets become more competitive,
biotechnological aplications are currently being used in the feed sources and the improvement
of the feed composition. In the farming of aquatic species fish meal is the most common
protein source in diets. However, wild fish stocks are declining and the available fish
resources will not be enough to meet the increasing demand for fish meal and fish oil.
Therefore, there are environmental concerns regarding fish feed such as conservation of wild
stocks and waste dischargers into the water due to excess phosphorus in diets causing
eutrophication. These are main limiting factors regarding to feed in sustainable development
of aquaculture, thus biotechnology are used to produce alternative plant based protein sources
because plants contain anti-nutritional compounds and requires processing to improve its
quality. In this regard, biotechnology allows the producing feed enzymes that help to improve
the utilization of plant-protein based feed by aquatic species. As another environmental
concern regarding the problem of phosphorus pollution, modern biotechnology is working on
the development of low environmental-loading feed.
10.CONCLUSION
Aquacultural biotechnology is now evolving very rapidly and making a significant
contribution to the development of sector. In general, the technology promises immense gains
in food security, economic issues and environmental protection. Efforts are directed to:
the improvement of fish feed quality;
genetic engineering in order to improve the protein value of fishes;
the reproduction of species;
disease diagnoses;
hybridization technology
188

�genetic engineering for the production of vaccines.
the treatment of pollutants generated by aquaculture.
All of these factors influence the sustainability of an aquaculture system and may play
fundamental role in future aquacultural development policies. Improved productivity and the
resulting increase in production would benefit the rural poor by providing more food, poverty
reduction and through improved employment opportunities. Advances in biotechnology
applied to aquaculture can be useful in understanding waste treatment and reducing pollution
risks. To eliminate uncertainties and vulnerabilities in the risks, governmental support is the
essential element in enhancing aquaculture development without any environmental impact.
Thus, sustainable biotechnological applications in aquaculture have to be identified and
developed according to the risk assessments of the product and method. There are some
principles that aquacultural biotechnology must adhere to in order to be sustainable, namely;
environmentally acceptable in terms of methods, improved species and discharges.
safety for human health
large scale and heavy restrictions for non-native and geneticly modified species (farming in
land-based tanks)
supporting the long-term economic and social well-being of local communities
ensuring a strong healthy and welfare for farmed species
economically feasable and sustainable
more investment for biotechnology industry.
achieving a sustainable feed resources
promoting good menagment
involving human resource development
regulations of the modifications
Biotechnology is almost becoming an industry but still there is no any knowledge what the
impacts will be. Moreover, biotechnology has raised important ethical and morality issues
which need to be carefully addressed before its application to aquaculture. Therefore, to
ensure maximum social benefit at minimal risk is high on the policy agenda of the countries
In addition development of biotechnology will need to be shared among diferent disciplines
and stakeholders. In this regard, educating of decision-makers in food safety and
biotechnology regulation will be also very important. In conclusion biotechnology is
important key for aquaculture, but it might still be too early to judge the future impact of
biotechnology on its sustainable development.
REFERENCES
Alok D., Talwar G.P., Garg L.C. 2000. In vivo activity of salmon gonadotropin releasing
hormone (GnRH), its agonists with structural modifications at positions 6 and 9, mammalian
GnRH agonists and native cGnRH-II on the spawning of an Indian catfish. Aquaculture
International 7, 383-392.
Brinker, A., Reiter, R. 2011. Fish meal replacement by plant protein substitution and guar
gum addition in trout feed, Part I: effects on feed utilization and fish quality. Aquaculture
310:350-360.
189

�El-zaeems, S.Y. 2004. Alteration of the productive performance characteristics of Orechromis
niloticus and Tilapia Zillii under the effect of foreign DNA injection. Egypt J. Aquat. Boil.
Fish. 8(1): 261-278.
El-Zaeem, S.Y., Aseem, S.S. 2004. Application of biotechnology in fish breeding: 1 –
production of highly immune genetically modified Nile, tilapia Orechromis niloticus with
accelerated growth by direct injection of Shark
FAO. 2007. The role of aquaculture in sustainable development. Thirty-fourth Session. 17-24
November 2007, C 2007/INF/16 Rome. FAO. 10 pp.
FAO. 2010. The State of World Fisheries and Aquaculture. Rome. 197 pp.
Fletcher, G. L., Hobbs, R. S., Evans, R. P., Shears, M. A., Hahn, A. L., Hew, C. L. 2011.
Lysozyme transgenic Atlantic salmon (Salmo salar L.). Aquaculture Research, 42: 427–440.
Hew CL, Davies PL, Fletcher G. 1992. Antifreeze protein gene transfer in Atlantic salmon.
Mol Mar Biol Biotechnol. 1(4-5):309-17.
Hew, C.L., Fletcher, G.L. 2001. The role of aquatic biotechnology in aquaculture.
Aquaculture 197, 191-204.
Snow, A.A, Andersen, B, Jørgensen, R. 1999. Costs of transgenic herbicide resistance
introgressed from Brassica napus into weedy B. rapa. Molecular Ecology 8:605–615.
Soltanian, S., Stuyven, E., Cox, E., Sorgeloos, P., Bossier, P. 2009. Beta-glucans as
immunostimulant in vertebrates and invertebrates. Critical Reviews in Microbiology , 35:
109–138.
Subasinghe, R.P. 2007. Aquaculture: Status and Prospects. In ―Role of Aquaculture in
Sustainable Development. FAO Department of Fisheries and Aquaculture, Rome, Italy.
Subasinghe, R., Soto, D., Jia, J. 2009. Global aquaculture and its role in sustainable
development. Reviews in Aquaculture, 1: 2–9.
Tepfer, M. 2002. Risk assessment of virus-resistant transgenic plants. Annual Review of
Phytopathology. 40, 467-491.
Environmental Impact of Hydroelectric power plants (HPP) and Fishways
Mehmet Kocabaş1, Nadir Başçinar2, Filiz Kutluyer3, Önder Aksu3
1 Karadeniz Technical University, Faculty of Forestry, Department of Wildlife Ecology &amp;
Management, 61080, Trabzon, Turkey
2Karadeniz Technical University, Faculty of Marine Sciences, Department of Fisheries
Technology Engineering, 61530, Trabzon, Turkey
3Tunceli University, Fisheries Faculty, 62000, Tunceli
Abstract
Hydroelectric power plants (HPP), which are not cause environment pollution relatively and
renewable, inexpensive, has increased importance. However, there are positive and negative
impacts on the ecological balance of these systems. One of the main environmental impact of
hydropower development is related to fish passage both upstream and downstream.
190

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                <text>Aquaculture is the fastest growing food sector in the world with its increasing role for  economy and safe food strategy of countries. Due to the continuing depletion of the fish  stocks, farming of aquatic organisms such as fish, crustaceans, molluscs and aquatic plants, is  now a substantial global industry supplying a significant proportion of the aquatic products  consumed. Shortage in food supply and high prices are the possible important risks in the  future, and aquatic products are the valuable sources of protein and essential nutrient  components for global food security and eliminating malnutrition. Aquaculture also plays an  important role in rural economies through the creation of new employments. In these cases,  aquaculture outputs will need to be enhanced several fold in order to meet the rising demands  for fish and other aquatic products in coming years.  Biotechnology options seem to be good potential for increasing aquacultural productivity,  food security and environmental quality worldwide. Biotechnology is offering valuable  options such as protein expression, microsatellite, gene mapping and genomic, DNA vaccines,  DNA chips, proteomics, transgenic technology and embryonic stem cell technology. This  technology provides genetic manipulations, molecular cloning, embryo manipulation,  genetically-engineered diagnostics, immunoprophylactic agents. All of these applications  could help improve the selective breeding, hybridization, productivity, health, growth,  nutrition, cryopreservation and conservation of genetic resources in aquacultural stocks for  the benefit of mankind. However, there is need for the regulation of biotechnology activities  in terms of the potential adverse impacts on the environment and human health. There is also  increasing concern about the impact of biotechnology on sustainable development in various  fields. The main environmental safety issue of these applications is the effects of genetically  modified organisms (GMOs) on biodiversity and gene transfer in the environment. Therefore,  this review discussed the integration of biotechnology and biosafety in aquaculture, and  policies for the environmentally sound use and management of aquacultural biotechnology in  sustainable development.  Keywords: Biotechnology, Aquaculture, Sustainable Development, Food security, Public  health</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

practice contributes to the greater transparency of business, better supervision of the
company, and therefore its better reputation. For the aim of further promotion of corporate
governance, special care should be taken of the greater promotion of good corporate
governance practice, greater protection of the interests of minor shareholders, strengthening
the role of the supervisory board, greater compliance of entity laws, as well as greater
transparency in company's business transactions.
In the past years, corporate governance gained more importance, and many studies have
shown that the application of good corporate governance practices leads to the greater value
of the company and a smaller risk of financing.
REFERENCES
Ana Bobirca, and Paul-Gabriel Miclaus (2007), Extensiveness and Effectiveness of
Corporate, Governance Regulations in South-Eastern Europe.
Corporate Governance Country Assessment, Bosnia and Herzegovina, June 2006 ,
http://www.worldbank.org/ifa/rosc_cg_bih_eng.pdf.
Corporate Governance in FBiH – the results of research in 2011., SEE Business Solution
d.o.o. Sarajevo , http://conference.capitalmarket.ba/6/prezentacije/Sanja%20Jokic.pdf
Corporate Governance Codex SASE ( 2009. ), http:/www.sase.ba and Standards of Corporate
Governance BLSE ( 2011 ) http://www.blberza.com
Corporate Governance, News in international standards, legislation and practice in Bosnia and
Herzegovina (2008 ), Revicon.
Dr. Hubertus G. Tschopp ( 2002 ), Corporate governance, The Key to Success of Failure,
Boardroom, Magazine of Corporate Governance, Leadership and Quality of Life.
Mc Kinsey ( 2000 ), Global investor Opinion Survey on corporate Governance.
OECD Principles of corporate governance ( 2001 Edition ).
Robert W. McGee ( 2008 ), Corporate Governance in Transition Economies, Springer.
White paper on Corporate Governance in South East Europe (2003.), OECD 2003
www.stabilitypackt.org
Economic Diplomacy and Business Negotiation- managerial approach
Amra Nušinović, Erkan İlgun
International Burch University, Faculty of Management,
71000, Sarajevo, Bosnia and Herzegovina.
E-mail: amra.nus@gmail.com
Abstract
Economic Diplomacy explains how states conduct their external economic relations in the
21st century: how they make decisions domestically; how they negotiate internationally; and
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how these processes interact. Economic diplomacy in the global environment has become
essential for all countries. The contemporary world is painted with constant changes, where
the key of economic success lies in their ability to understand and a good adjustment to the
new business environment. This newly created environment is nothing more than
globalization. If we bear in mind that the global economy is characterized by high levels of
competitiveness, the question is how the economic operators of small countries, such as
Bosnia and Herzegovina, can gain market share and how they can achieve competitive
advantage. Research shows that a very important role may be played by effectiveness and
efficiency of diplomacy, or more precisely its economic component, relatively economic
diplomacy. It is a fact that highly-educated and motivated diplomacy is indispensable to every
nation which ties its economic prosperity to constant and fruitful exchange on the world
market, to the free circulation of people, goods, and capital, and to its successful economic
performance in the world. In today's world of global world economy, it is especially
necessary. Negotiation is constantly present in our lives, and according to some, it represents
one of the skills necessary for survival. Regardless if the aim of the negotiation is victory over
an opponent, compromise, or the development of good mutual international relations, a
manager must know competitive tactics to be able to achieve the best negotiation results.
Possession of negotiation skills is crucial in the interaction of the manager with the
employees, the head manager, or with stockholders outside of the company. Business
negotiation is the very essence of diplomacy, that is its basic activity. Diplomacy and
negotiation are terms which always appear together.
Keywords: Economic diplomacy, global economy, business negotiation, global environment,
international relations, Economic diplomacy in Bosnia and Herzegovina.
1. The Term and Significance of Economic Diplomacy
Economic diplomacy is a specific combination of classic diplomacy, economic sciences, and
managerial sciences, methods and techniques for negotiation with foreign partners, public
relations, and collecting economic information of interest for the economy of one's country or
company, in the aim of penetration onto the world market. Economic-diplomatic and
diplomatic action do not have magical powers, nor can they resolve inner structural problems
of the economy and the country. They must be in service of economic and political
recuperation and the country's stabilization, as well as its successful representation and
penetration in the world. Therefore, they do not only follow but they assist the economic
development of the country, its performance in foreign policy and foreign economy in the
world. From the Renaissance up to today, economic issues has been one of the narrowest
tasks of diplomacy, parallel to politics. The term Economic Diplomacy is of a relatively new
date and is rooted in the French language- la diplomatie economique.
Economic Diplomacy can be looked at from two perspectives. One is Economic Diplomacy in
the larger sense, and it is more comprehensive and relevant to all the subjects of a society who
participate in strengthening the economic competitiveness of a nation with diplomatic
methods; the second definition of Economic Diplomacy in the narrow sense concerns the
exclusive activities of the Ministry of Foreign Affairs in the defense of the economic interests
of its country. Economic diplomacy promotes national economic interest and business in other
countries. It is associated with trade, business, market, and investment promoted through
political diplomacy. Economic diplomacy depicts how states conduct their economic relations
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with other countries by using political influence and promoting trade and investment to find a
market for its products and services.
We will state some of the interesting and up-to-date definitions of Economic Diplomacy:
„Economic Diplomacy represents a type of government service to the economy or the
business sector of a country, whose main goal is the achievement and development of socioeconomic benefits out of international business activity.“
„Economic Diplomacy incorporates within itself negotiation skills, followed by the process of
collecting information of interest for the economy of the country it is representing.
Subsequently, economic diplomacy lobbies with the goal of positioning economy in the
foreign market on the one hand, as well as with the goal of protection of the economy of its
own country on the other.“
„Economic diplomacy represents a specific combination of diplomacy in the classical sense of
the word, as well as economic sciences and management, whose main goal is to create,
sustain, and develop a positive environment for multilateral and bilateral economic
cooperation.“34
Economic diplomacy is functional at three levels: bilateral, regional, and multilateral.
Bilateral economic diplomacy plays a major role in economic relations. It includes bilateral
trade and treaty; agreements on investment; employment or avoidance of double taxation; and
range of formal and informal economic issues between two countries. Bilateral Free Trade
Agreements have been the order of the day, and are being implemented by many countries
around the world. Regional cooperation is of growing importance in economic diplomacy.
National interest and economic liberalization is easily accepted when it is confined to a
particular region. The opening of borders and markets becomes easier within a regional
framework. Multilateral economic diplomacy takes place within the framework of the World
Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), and UN
agencies. When speaking of human potential in economic diplomacy, a representation is not
possible without the help of managerial concepts. The term that is increasingly being used in
management is the so-called „human ware“, that is, the element in an organization which is
becoming more and more appreciated on the market (intangible assets).
It is worth nothing that economic diplomacy represents a type of multicultural management,
that is, it is made up of people from various cultural value systems, which have to form a
complete team, which also represents one of the most frequent problems for all those who
work in international business. The differences in size and economic strength of a country, the
differences of the political and economic systems, the various characteristics and systems of
market regulation influence the fact that countries also develop differing concepts of
economic diplomacy. Economic diplomacy is faced with very complex standards which
regulate the organizations responsible for economic policies such as for example, the World
Trade Organization (WTO), the International Monetary Fund (IMF), or the Organization for
Economic Collaboration and Development (OECD).
2. The role of diplomacy in a country's economic development

34 Mile Sadžak, (2008).Synopsis, Sarajevo. Economic Diplomacy- managerial approach
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The role of economic diplomacy is becoming more significant, in international business, as
well as in the process of economic universilization and the need for export-oriented
companies. Economic diplomacy has great influence on the economic development of a
country. Researching economic diplomacy imposes the need to consider its role in the
development and promotion of a country's economy. It is necessary to establish the
relationship of: national business- state administration – economic diplomacy. The basic task
of the state administration is to establish relations between the business subjects of its country
with economic diplomacy and its representatives, which represent their country abroad.
Economic diplomacy is dealing with a new concept of international economic collaboration,
but also with the connection between economic diplomacy and business. Therefore, it has
common ground in the fields of foreign trade, finances, industrial relations, negotiations and
contracts in politics, as well as in business. Economic and diplomatic actions must be in the
service of the state, as well as its successful representation and penetration into the world
markets. With the globalization of world economy and international politics, the interest of
certain economies in being promoted abroad and earning greater participation in the world
market and a share in the realized profits, becomes the state interest of their countries.
Today, an economic representative is an economic observer of economic developments on the
world market in the country he/she is sent to. In daily communication with skilled economic
diplomats of interested countries, they expect information and guarantees that all conditions
and full security for their investment are provided. In economic life, aside from all other
factors, economic diplomacy helps with quality information and advice on current trends,
scope, types, and quality of similar or sought-for products of competitor-companies and
countries, analyses of the needs and saturation of foreign markets, acceptable prices and
deadlines, all the way to the designs or product samples of competitor companies. It is a fact
that a rational and thought-out concept of the economic representation of Bosnia and
Herzegovina in the world still does not exist, one that complies with the needs and abilities of
our economy.
3. Economic diplomacy and business negotiation
Business negotiation is the very essence of diplomacy. It is a skill which a diplomat must
possess if he/she wishes to successfully fulfill his/her mission. Diplomacy and negotiation are
two terms which always go together. This is also pointed out by Berridge: „diplomacy is the
leading of international relations more by negotiation than by force, propaganda or the
application of rights“or Kovačević who states that negotiation is the way in which diplomatic
activities are achieved and represents the core of diplomacy.35
The interesting aspect is how a diplomat enters into the challenges of modern times.
Domestic companies can lose a great part of their money if an investment is brought into
question because a manager does not understand or has missed the chance to acquaint
him/herself with the latent political opposition which is key to the realization of the
investment or the export of products, while the country can lose great amounts of money on
the international market because its trade negotiators do not understand the need for a political
conflict to be resolved in mutual negotiations. An economic diplomatist is responsible for
representing the interests of his/her country in his/her work; so consequently, the result of the
 Assistant Prof.; Dumlupınar University, Faculty of Economics and Administrative Sciences (İİBF),
Department of Public Administration.
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negotiation has great influence on the entire economic development. Due to this, the skill of
negotiation is one of the most important priorities, and with the strengthening of the
negotiating power itself, it becomes of particular importance. Cultural differences play a
significant role in international business negotiations. Ignorance of the behavior, needs, and
customs of a different environment can represent problems in negotiations, as well as be
negatively reflected on the relationships between the negotiators, as well as the countries.
Taking into account cultural differences means a certain level of tolerance and understanding.
For most negotiations, the rule that „nothing is agreed upon until everything is agreed upon“
applies, which means that any provision of the agreement is subject to change until the parties
approbate it completely. However, international agreements and contracts enter into force by
way of ratification by a state organ, which is usually parliament. Fulfilling the contract and
agreement affects the credibility and mutual trust between negotiators. A once violated or
canceled agreement can permanently hinder relations between the countries. Failure to fulfill
the agreement negatively affects the country's image itself, and this can also negatively reflect
on its economy. Of course, it is in every country's interest to have the contract and agreement
fulfilled by the other party. Economic diplomacy should play a major role in this business.
Therefore, an economic diplomat must be aware of all the contractual relationships between
his/her country and the host country, as well as their essence in order to be able to react on
time, but also to mediate in contentious situations in order to prevent eventual unwanted
consequences. International business negotiations are extremely complex activities. For their
successful execution, it is necessary that every country in the best and most efficient way
changes and prepares its resources. Naturally, developed countries have great advantage here.
The question arises of how small countries and developing countries can be equal partners in
negotiations with developed countries. Experience indicates more and more that even
developing countries can have a large and important influence in international negotiations,
insofar as they have the correct procedure. In order for developing countries to strengthen
their negotiation positions in international frameworks, it is necessary for them to provide
maximum attention to the elimination of causes for their deficiencies.
4. Economic diplomacy in Bosnia and Herzegovina
Economic diplomacy is a very powerful term in the world, while it is still an unknown one in
Bosnia and Herzegovina. Developing economic diplomacy for the government in B&amp;H is still
not on the list of priorities. Our country does not have a developed web of representatives in
potential markets, which would additionally encourage the broadening of economic
cooperation of B&amp;H firms in these areas. The extremely unfavorable economic situation in
which our country finds itself in forces upon it the need to speed up integrative processes, in
order to, in conditions of heightened interdependence with highly-developed countries,
achieve a more powerful speeding-up of development, and above all in the economic sphere.
Bosnia and Herzegovina is a country in transition with a difficult heritage of war which
burdens both the transition process as well as the process of economic development, and it has
an almost non-existent economic diplomacy. The diplomacy of Bosnia and Herzegovina is
very weak, bureaucratic, and insufficiently equipped to support our economy. The export our
country achieves, and which is not on a satisfactory level, best tells us how much the
economy is suffering due to not establishing economic diplomacy. According to the opinion
of Mr. Sven Alkalay, the minister of foreign affairs in B&amp;H, the markets of Libya, Turkey,
the countries of the Middle East, but also Germany, Italy, and Austria, should be better treated
and we should significantly activate ourselves towards them. These are the countries in which
pre-war B&amp;H was extremely esteemed for its quality. There are many chances for export in
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these countries, receiving significant jobs, but also potential investors who would invest in
B&amp;H, its economy and development. Economic diplomacy is the best way to give information
about our potential, our possibilities, products, and services. There are countless possibilities
opening up for B&amp;H companies, those which would with the adequate diplomatic
engagement, lead to business success, and one of them is the placement of certified „halal“
products, which are increasingly sought in EU countries, as well as better promotion of the
natural and touristic beauties of B&amp;H in the world. The export achieved by B&amp;H, which is
not at a satisfactory level, best tells of the way the economy is suffering due to not
establishing economic diplomacy, and it is problematic also that 95% of export is achieved on
the markets of ten to twelve countries, ignoring the enormous markets such as Russia or the
Arab countries. Our products have little or no participation in these markets, while it is
exactly these countries that are the area we need to look for our chance in. Faced with a new
market environment and new market rules, the economy of Bosnia and Herzegovina finds
itself in a very difficult and unenviable position. Technological obsolescence, non-existence
of political consensus, non-existence of clear economic and political goals result in the
difficult and unfavorable economic position of Bosnia and Herzegovina on the international
economic scene. The wish of Bosnia and Herzegovina for the development of international
economic collaboration enforces the need for intensifying economic and diplomatic activities,
whose goal is the protection of national economic interests. Bosnia and Herzegovina does not
have its own economic representatives in the world.
5. Conclusion- Economic diplomacy as the future of diplomacy
It can be said that economic diplomacy is the future of diplomacy because in the
circumstances of the globalization of the world economy, it has become the basic source for
penetration onto world markets. It is a fact that highly-educated and motivated diplomacy is
necessary for every nation which connects its economic growth to the constant exchange on
the world market, the free movement of people, goods, and capital, its successful economic
performance in the world. None of us can live and produce on our own all that is necessary
for the normal functioning of the economy and satisfying the needs of the citizens. The main
function of economic diplomacy is the protection of national interests in international
economic relations. On the other hand, we are facing a world economic crisis which, aside
from everything, is heavily burdening international relations and having an important effect
on the profiling of current economic diplomacy. Considering that the basic goal of economic
diplomacy is to stimulate economic exchange between countries, it is clear that it is an
important factor in its development. The opinion prevalent in the West is that the opening of
markets, free movement of goods, services, and capital are necessary elements for the
successful economic growth of a country. Economic diplomacy promotes such an idea, and in
this way contributes to the openness and greater exchange and collaboration of the developed
world with developing countries. The global goal of world development is that those parts of
the world where poverty rules, destitution, starvation, and the like, that these states are
brought to a minimum and in the end, completely eliminated. It is for this reason that it is
necessary to fight with all resources and with human solidarity, and in this, a great role is
played by economic diplomacy.
REFERENCES
Economic diplomacy powerful lobby in the world, in Bosnia is still a mystery,
http://www.ekapija.ba/website/bih/page/399438
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Economic
Diplomacy:
Positioning
in
the
era
http://www.gmbusiness.biz/index.php/arhiva/21-30/gm_24/3321.html

of

globalization,

Economic Diplomacy, http://economicsanddiplomacy.blogspot.com
Ilija J. Džombić, (2008). Economic Diplomacy in Bosnia and Herzegovina.
Mile Sadžak, (2008).Synopsis, Sarajevo, Economic Diplomacy- managerial approach.
Mirza Pašić, (2008). TKD Šahinpašić , Diplomacy.
Nicholas Bayne, Stephen Woolcock, (2007). Ashgate, The New Economic Diplomacy:
Decision-Making and Negotiation in International Economic Relations.
Vladimir Prvulović, (2006). Megatrend, Beograd. Economic Diplomacy.

An Analysis Of Relationship Between Economic Growth And Selected Economic
Indicators With Regression Trees And Ols: 1990-2009 Period In Turkey
Ali Avci1, Harun Sulak2
1.Pamukkale University, Department of Economics
2.Süleyman Demirel University, Department of Econometrics
E-mail: aliavci20@hotmail.com,harunsulak@sdu.edu.tr
Abstract
The purpose of this study is to examine the relationship between economic growth and
selected economic indicators during the economic crisis in Turkey between 1990-2009 with
regression trees and OLS method. Important crises in Turkey were April 1994, February
2001 and August 2008 crises. For economic growth, industrial production is used as the
dependent variable and eight variables were used as independent variables which are
commonly mentioned in the literature. In both method, there is a negative relationship
between industrial production and trade balance and domestic loans, on the other hand a
positive relation to other variables. For international reserves, a positive relationship is found
with industrial production in regression trees method, however there is a negative correlation
in the method of least squares.
Keywords: Economic growth, financial crisis, regression trees
1.INTRODUCTION
Since 1980s both domestic and external financial liberalization policies that put into practice
without adequate infrastructure in developing countries led to economic crisis and markets
become more vulnerable to shocks. These crises are; 1992-1993 European Monetary System
(ERM), 1994 Latin America, 1997 South-East Asia, 1998 Russia, 1999 Brazil, 1994 and 2001
Turkey, 2002 Argentina and 2008 Global financial crises. Applications of financial
liberalization in Turkey, has been implemented in an environment of macroeconomic stability
290

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ERGÜN, Uğur </text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Tiryaki, G. and Akbay, C. (2010) Consumers’ Fluid Milk Consumption Behaviors in Turkey:
An Application of Multinomial Logit Model, Quality and Quantity, 44,87–98.
TURKSTAT (2009). Regional Statistics, URL http://tuikapp.tuik.gov.tr
TURKSTAT (2011). Turkey’s Statistical Yearbook, 2010. Publication No: 3522, Ankara.
WMDA (2011). Dairy and Products Sectoral Report, West Mediterranean Development
Agency, http://baka.org.tr/uploads/1303486719SUT-URUNLERi-TURKCE-KATALOG.pdf
Yamane, T. (2001). Basic Sampling Methods, Literatur Publishing, Istanbul.
UN (2011). World Statistics Pocketbook. URL http://data.un.org/CountryProfile
Integration And Sustainability Of Technology-Enhanced Systems Into Learning
Environment: Cankiri Karatekin University Case Study
Ari Murat1, Pekel Abdullah2
1Cankiri Karatekin University, Chairman of Informatics Department, Cankiri, Turkey
2Marmara University, School of Foreign Languages, Istanbul, Turkey
E-mails: mari@karatekin.edu.tr, abdullah.pekel@hotmail.com
Abstract
As a result of the continuous search for global competitiveness through providing the society
with high quality education in the light of emerging technologies, Cankiri Karatekin
University has embarked on a strategic planning and a pilot study on transition to Distance
Education (DE). Providing on-demand training for professional development, lifelong
learning, career change aimed at quite varied groups in society, Cankiri Karatekin University
sets its sight on maximizing the quality of communication and intellect sharing between
academic staff as well as enabling the effective assessment of their academic performance
thanks to the integrated e-learning/distance education and corporate communication platform.
According to this tested project based model, distance education infrastructure and
educational e-materials have been prepared and used as a supplement to formal education. By
this means, ensuring students’ and teachers’ readiness is aimed for the success of the future
pure distance education programs. The study evaluates the pilot project titled “Integrated Elearning and Teaching Environment” by Cankiri Karatekin University, which was founded in
2007 and strives for developing as a globally competitive academic institution by employing
an effective and efficient model in the use of technology in education. The technical
background features as well as results of the pilot project have been evaluated and further
suggestions have been presented, considering distance education practices in the world in
general and, in particular, the potential that Turkish Higher Education and Cankiri Karatekin
University carry in the field.
Keywords: Distance Education; e-learning;
Communication; Teaching Environment
16

Life

Long

Learning;

Institutional

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

1.INTRODUCTION
The biggest difference between an online, virtual classroom and the traditional classroom is
the way instruction is delivered. In a traditional classroom, the instructor is the center of
learning and information is presented orally or through tangible text. The text can be engaged
through active reading activities like highlighting, making notes in margins, and underlining
and circling important information. The course material can be discussed in class and
whatever questions or arguments arise can be answered and discussed face to face during the
class period. In a traditional classroom setting, the teaching and learning happen on a
synchronous schedule.
Conversely, online instruction occurs asynchronously. The instructor and the learners are
separated by time and space. Online courses take advantage of the Internet as a teaching and
learning environment; it’s open, distributed, dynamic, globally accessible, filtered, interactive
and archival in nature, (Elmore 2008). In online learning, the instructor acts as a guide to the
process of learning rather than its director. Dependence on the instructor is reduced and
students are empowered to take responsibility for their own learning referred to as Kosak et
al. (2004). Text still plays an important role in online learning but now the text can be
manipulated, searched, revised and updated and appears in short, and concise chunks, which
can be distributed through a wide array of multimedia. Discussion of the text is done through
online forums, live chats or e–mail messages. This situation involves references to Maguire
(2002).
The rapid advancement in Information Technologies has globally influenced the education
systems, and the integration of technology into education has increased the inclination
towards Distance Education (DE). Online courses are becoming increasingly popular
especially with the non–traditional student. The online students tend to be a mid-career adult
returning to school. Also, many students see online courses as a more convenient way to go
to school (Yang 2010). The trend does not seem to be slowing. In 2007, there was a 12.9
percent growth rate for online enrollments which exceeded the 1.2 percent growth of the
overall higher education student population (Zhen 2008). Universities are offering more
online courses to meet the demand.
It is important to draw attention to two issues. First of all, DE is not a supplement to
traditional formal education. Tailor-made hardware, lesson materials and technology-based
assessment methodology is employed in DE. Such a system is composed of the latest
hardware technology available. Secondly, DE is not a form of instruction that
underdeveloped countries use, on the contrary, most developed countries utilize DE systems
within formal – informal education system.
Newly-formed universities face numerous challenges, on rather limited institutional budget,
in competing with the universities that have long educational background. Thus, only the
institutions, which appreciate and keep pace with the latest technology, can go beyond the
existing frontiers in higher education and elevate their competitiveness.
In this study, Cankiri Karatekin University’s DE need analysis has been discussed. Besides,
system features and the results of the pilot study titled “Integrating e-Learning-Teaching
Environment Project” have been evaluated. It is evident that the system is likely to play a
prominent role in determining training systems according to Lifelong Learning practices.

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1.1. Advances in Distance Education Field in Turkey and the Present Situation
In parallel with the competitive global conditions, Turkey has been intensively working on
the targets and strategies involving open and distance education in pursue of its targets related
to higher education. Beginning with THE RELATIONSHIP BETWEEN BANK LOANS and
ECONOMIC GROWTH in TURKEY: 1995-2010
Emre Sezici, Murat Yaman the Open Education System at Anadolu University, the efforts
has gained perspective through TUBITAK-BILTEN DE Feasibility Study in 1997, and within
this framework Feasibility Analysis of Nation-Wide Distance Education Alternatives study
has probed then-current telecommunication infrastructure, needs analysis, alternative models
and cost-benefit along with copyrights in DE. As an addition to that, DE Regulations was
accepted and The National Committee of Informatics was founded in 1999. Such operation
areas as The Regulation of Cross-University Communication and IT-Based Distance Higher
Education, provision of lessons delivered via client/server matching between universities,
regulation of independent course/program launch with the authorization of YOK, and course
crediting are within The National Committee of Informatics’ scope of authority. As the final
step, UADMK-TUBA has been founded to provide support for the DE efforts (YOK 2011).
Turkey is a dynamic country and has a rather young population with 35 million people under
30 years old. Large portion of the young population are students. According to the recent
statistics by The Ministry of National Education (MEB), a total of 14.115.892 students attend
various schools and institutions of MEB. Additionally, around 3.180.000 students receive
education at more than 170 universities. When calculated, these figures comprise almost 25%
of the total population of the country. 1.7 million students take university admission exam
every year; however, only 400.000 of these are able to be placed in a higher education
program due to the lack of capacity problems (MEB 2011). Countries from the Balkans and
Caucasus, Central Asia, Middle East, North and Central Africa demand higher education
opportunities from Turkish higher education institutions as these countries are within the
regional and cultural sphere of influence of Turkey, which emerges as a center of attraction in
terms of education. IT potential has been used effectively in supporting DE. It is preferred
and promoted, thus increases its popularity day by day.
2.ÇANKIRI KARATEKIN UNIVERSITY AND DE
As of January 2012, there are a total of 176 universities, 108 of which are state universities
and 68 which are the ones belong to foundations, in Turkey. As more than 110 of these
universities were founded after 1992, they have yet to fully complete their physical or
academic development stage. According to Student Selection and Placement Center (OSYM)
2009 statistics, more than 3.180.000 students are within Turkish Higher Education System.
While 1.366.000 of these students continue their studies at Open Education Faculty,
1.640.000 students attend state universities and 176.000 students attend private universities.
31 associate degree programs at 14 universities, 1 degree completion program, 3 degree
programs at 1 university, and 19 masters programs at 15 universities are available via
Distance Education. Around 24.000 students receive education through distance education.
Besides, according to OSYM statistics, 111.000 teaching staff are employed within Turkish
Higher Education System. 50.000 of these currently work at the underdeveloped universities
that were opened in 1992 and after. Academic staff training and academic staff support
programs through DE are increasing their popularity as an effective in-service training tool
(YOK 2011)
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Çankırı Karatekin University (CKU), established in 2007, is rapidly developing with 6
faculties, 4 institutes, 1 college, and 4 vocational schools and serves around 5500 students
through 266 academic personnel and 199 administrative staff. CKU appreciates the
advantages that DE technologies will bring as an effective tool in competing within higher
education sector. As a newly established university, CKU develops its technological
infrastructure in order to meet the hardware-related and physical needs. Technological and
topological features of the platform used in the pilot application shown in Figure 1 will be
presented in the following section.

Figure 1: CKU Blended Learning Online Schema
3. APPLICATION OF PILOT PROJECT
3.1 Project Goal
Delivering the Integrated Learning-Teaching Environment (ILE) solution that enables the
existing Interactive Whiteboard (IWB) and other Learning Toolsets to function as one
individual Virtual Learning Environment (VLE) towards University.
Our immediate ILE Objectives will transform the existing IWB from its initial stage into an
integrated learning-teaching environment for the masses built on a reusable and sustainable
learning-teaching framework envisioned by the University.
3.2. Standard ILE Features
Included in the following subsection but not limited to Assessment, Lesson Solution, Wiki
Solution, Glossary Solution, The Choice Activity, Course Solution, Workshop Solution, and
Photo Gallery are existing components within this ILE. Herein, we will briefly elaborate on
one of the solutions within the ILE. The overall ILE software and all existing components
given below are shown in Figure 2.

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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Figure 2: ILE Architecture diagram describing the 3 main working groups (stakeholders/executives, teachers, and students) and its integration into the system.
4. INSTRUMENTS, DATA COLLECTION AND ANALYSIS
In order to interpret the impact that the ILE had on the students’ learning outcomes, two
instruments will be used in this study: 1) the students’ final exam marks in the different
courses that same group of students attended during the same academic year by means of data
obtained from faculty archive about final exam results, and 2) a twelve item survey, which
measures students’ assessment of ILE usefulness based on the instrument developed by Wang
(2009). This survey included items relating to student interaction and active learning by
means of the ILE system, and based on a five point Likert scale. The scale ranged from
“Strongly Disagree” to “Strongly Agree”. Students’ satisfaction total score could range from
a very low satisfaction level of 10 to a very high satisfaction level of 50.
The data collected via first instrument is going to be analyzed for group comparison using the
independent samples t-test for students’ exam outcomes. The statistics assess whether the
means of two groups are statistically different from each other in order to be able to compare
them. The data will be analyzed further with the SPSS. We hope that, we will get all statistics
data at the end of this semester. In this study the first outcomes and system architecture were
evaluated without statistics.
5. DISCUSSION
We have structured the DE organization in two steps: step one is to transform traditional
teaching practices into technology-enabled ones, in order to keep up with modern teaching
methodologies in higher education as well as to establish institutional background for future
DE practices. There are numerous instances of such approaches which merge traditional
classroom practices with the online collaborative work, also called blended-learning or hybrid
learning. We have agreed that gradual transition from the traditional practices to the blended
learning and further, distance learning phase, is necessary for the successful structuring as
well as positive outcomes.
Blended courses make good use of advantages both face-to-face and online teaching practices
would provide. To illustrate, the students are able to discuss and analyze the topics that were
already covered online through digital self-study materials, Q&amp;A sessions, topic forums, self
assessment quizzes. Besides, online discussions enabled the students in the way that they
could not in classroom environment. As everyone has a say without time or other social
pressures, online discussions give many students the opportunity to express themselves more
openly compared to the ones done in a regular class. Many students are reluctant to speak in
class because of shyness, uncertainty, or language issues. The ability to take their time to
compose questions and answers in an online discussion is an advantage to many students, and
instructors report much higher participation levels online than in class. Many students tend to
avoid contribution in classroom because of introversion, difficulty with oral expression and
for some other personal issues.
6. CONCLUSION
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Online courses are growing in popularity and demanded particularly by non-traditional
students. Even though more and more universities are offering online courses, faculty
members are still reluctant to teach online courses. They are concerned about planning and
developing the courses, the overall quality of online courses and the lack of credit toward
merit, promotion and tenure. Cankiri Karatekin University is a newly formed university and it
is yet to complete its physical and academic structure. Thus, CKU aims at setting high
standards by integrating technology based systems into its programs, consequently
eliminating the drawbacks of the structural weaknesses. With this aim in hand, it prepares its
academic background for setting up DE programs by analyzing DE systems and launching
pilot projects. There are two components in DE: first one is to have academic staff that
possess the required know-how and expertise in using basic IT skills; second one is to create
quality and pre-leveled content. Therefore, universities are required to have the necessary
academic background and hardware infrastructure regarding these two components.
Otherwise, seemingly capable systems can turn into technological waste.
CKU has chosen to merge the opportunities that the accumulated know-how in the area
brings and its own dynamics in order to create academic and intellectual value. Towards the
target set ahead, gradual and proportional growth of the technological and relevant academic
prerequisites have been sought for. Therefore, blended-learning practices are intended to
form academic and system related basis of the future DE programs by avoiding trial-error
programs in distance education and developing the programs that address the specific needs
of the target group.
In this study, Cankiri Karatekin University’s DE needs analysis has been discussed within DE
course development in the world and Turkey and as an alternative solution, an integrated
learning and teaching environment platform provided by Birtel as well as Corporate
Communication Platform has been piloted as an assisting tool in formal education and its first
outputs have been evaluated. Further outputs will be analyzed with SPSS after collecting all
the data at the end of semester.
The following study will evaluate the statistical data and compare the success and system
competence levels of the teachers and students, who are adapted to the distance education
system, and those, who have directly started distance education program. Preparation of a
survey has been started in order to determine comparable success determining competencies
of the teachers and students, who earlier attended distance education programs without
probationary period in different universities.
ACKNOWLEDGEMENT
The installation and maintenance of the platform that constitutes the infrastructure of the
distance education system, Softfoundry and Vmeet, has been provided by Birtel Network
Technologies free of charge.
REFERENCES
Elmore, H.W. (2008). Toward objectivity in faculty evaluation. Academe, volume 94
number 3, URL, http://aaup.org/AAUP/pubsres/academe/2008/MJ/
Kosak, L., Manning,D., Dobson, E., Rogerson, L., Cotnam, S., Colaric, S. &amp; McFadden, C.,
(2004). Prepared to teach online. Perspectives of faculty in the University of North Carolina
21

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

system. Online Journal of Distance Learning Administration, volume 7, number 3. URL,
http://www.westga.edu/~distance/ojdla/fall73/kosak73.html
Maguire, L.L., (2002). Literature review-Faculty participation in online distance education:
Barriers and motivators. Online Journal of Distance Learning Administration, volume 8,
number 1, 2002. URL,
http://www.westga.edu/~distance/ojdla/spring81/maguire81.html
Yang, Y., (2010). Roles of administrators in ensuring the quality of online programs.
Knowledge Management &amp; E–Learning, volume 2, number 4, 2010. URL, http://kmeljournal.org/ojs/index.php/online-publication/article/viewArticle/80
Zhen, Garthwait,Y. A. &amp; Pratt, P., (2008). Factors affecting faculty members’ decision to
teach or not to teach online in higher education. Online Journal of Distance Learning
Administration, Volume 11, number 3. URL,
http://www.westga.edu/~distance/ojdla/fall113/zhen113.html
Republic of Turkey Ministry of National Education (MEB). URL,
http://www.meb.gov.tr/english/indexeng.htm
The council of Higher Education (YOK). URL,
http://www.yok.gov.tr/en/content/view/527/222/
Garrison, D. R., &amp; Vaughan, N. D., (2008). Blended learning in higher education:
framework, principles, and guidelines. San Francisco, CA: Wiley &amp; Sons, Inc.
[Holden, J. T. &amp; Westfall, P., (2010). An Instructional Media Selection for Distance
Learning-Implications for Blended Learning. United States Distance Learning Association.
Wang, W., &amp; Wang, C., (2009). An empirical study of instructor adoption of web-based
learning systems. Computers &amp; Education, Vol. 53, No.3, pp. 761-774.

H2O persistence framework for column oriented distributed (NoSQL) databases
Dino Kečo, Dženana Đonko
University of Sarajevo, Faculty of Electrical Engineering
Zmaja od Bosne bb, 71000 Sarajevo, Bosnia and Herzegovina
E - mails: dino.keco@gmail.com, ddonko@etf.unsa.ba
Abstract
Cloud architectures are most commonly used in cases when large scale data processing is
required. Building applications for cloud architectures requires a lot of engineering
experience, especially in cases of data persistence. Persistence in cloud architectures is solved
using NoSQL database models. In this paper we are working with column oriented NoSQL
database model. Main research goal of this paper is building of new persistence framework
22

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                <text>As a result of the continuous search for global competitiveness through providing the society  with high quality education in the light of emerging technologies, Cankiri Karatekin  University has embarked on a strategic planning and a pilot study on transition to Distance  Education (DE). Providing on-demand training for professional development, lifelong  learning, career change aimed at quite varied groups in society, Cankiri Karatekin University  sets its sight on maximizing the quality of communication and intellect sharing between  academic staff as well as enabling the effective assessment of their academic performance  thanks to the integrated e-learning/distance education and corporate communication platform.  According to this tested project based model, distance education infrastructure and  educational e-materials have been prepared and used as a supplement to formal education. By  this means, ensuring students’ and teachers’ readiness is aimed for the success of the future  pure distance education programs. The study evaluates the pilot project titled “Integrated Elearning  and Teaching Environment” by Cankiri Karatekin University, which was founded in  2007 and strives for developing as a globally competitive academic institution by employing  an effective and efficient model in the use of technology in education. The technical  background features as well as results of the pilot project have been evaluated and further  suggestions have been presented, considering distance education practices in the world in  general and, in particular, the potential that Turkish Higher Education and Cankiri Karatekin  University carry in the field.  Keywords: Distance Education; e-learning; Life Long Learning; Institutional  Communication; Teaching Environment</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Knowledge Economy And Effect On Women’ S Employment In Turkey
Arslan İbrahim1, Dineri Eda1, Taş İsmail2
1Gaziantep University, Gaziantep, Turkey,
2Tunceli University, Tunceli, Turkey
E-mails:arslan@gantep.edu.tr, egursel@gantep.edu.tr,ismailtas@tunceli.edu.tr
Abstract
In recent years, information and communication technology has changed remarkable by effect
of globalization movement that occurring in the world. This changing also affected world
economy significantly at the same time. Nowadays the new economic relations based on
information technologies, such as labor and capital have reduced the importance of production
factors and information has been the most important elements in the production factors.
Continuously variation in technology with the creative power of information causes a change
in the employment parallel. The main purpose of the study is to examine how information
and communication technologies have changed the direction of the woman’s employment.
Along with the development of information and communication technologies, computer and
communication tools take place of the labor force could be decreased the number of
employment, may also increase with the emergence of new business opportunities. Like many
other developing countries, Turkey is implementing various projects and taking some steps to
adapt and take advantages of benefits of the knowledge economy. With all other economic
variables women’s employment is also affected by the steps thrown and this response has
socially importance. This paper aims to investigate Turkey's harmonization process in the
knowledge economy and how knowledge economy impacted on female employment in
Turkey and make some assumptions for future.
Keywords:
Economy

Knowledge economy, Woman’s Employment, Unemployment, Turkey’s

1.INTRODUCTION
From primitive society to present, highlighted changes in the all life was formed by the
accumulation of knowledge. The center of civilization moved from primitive society to
agriculture sector by years. Over time, the importance of the agricultural sector has decreased
and industrialization replaced of agricultural sector by the improving of technology. After the
process of industrialization in the knowledge economy has been the only representative of
civilization. According of Toffler, agricultural sector is the first stage of economic
development, after that industrialization period took place, in the last stage service economy
has emerged (Toffler, 1970).
Knowledge economy is production and services based on knowledge-intensive activities that
contribute to an accelerated pace of technical and scientiﬁc advance, as well as rapid
obsolescence. The key component of a knowledge economy is a greater reliance on
intellectual capabilities than on physical inputs or natural resources (Powell and Snellman,
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2004). Many sectors have key input for itself. In an agricultural economy land is the key
resource. In an industrial economy natural resources, such as coal and iron ore, and labor are
the main resources. A knowledge economy is one in which knowledge is the key resource. it
is not new how knowledge important for economy (Houghton and Sheehan, 2000).
Knowledge economy is revolution for the world’s gaining a new dimension to itself. In the
whole world all limits are eliminated and economic, cultural and social life became accessible
anytime, anywhere by the effect of knowledge economy with information and communication
technologies. When developed countries are using possibilities of information and
communication technologies in the most effective way, developing countries staying behind
the time for catching new technologies. Turkey begins to take a part in the global economy
re-integrated micro-and macro-economic changes in this process by the advantages of
information and communication technologies. This paper aims to investigate how women
employment affected by the knowledge economy and information and communication
technologies taking place in Turkish economy. This paper also examines if women
employment went up or went down as result of using knowledge economy in economic
activity intensively.
2.Structure of Employment in Knowledge Economy and Literature Review
The new economic relations which based on the knowledge economy is reduced the
importance of factors of production such as labor and capital, notwithstanding information has
been the most important element for production factors. People needed financial capital in
past but today they needed knowledge, patents, copyrights, information assets, brain power
and experience except financial capital (Akolaş, 2000). Technology is changing by the
creative power of information this also causes a parallel change in employment. Depending
on technological developments, new industries have emerged and nature of the personnel
employed has also changed. Information technology and communications sector has
controlled market conditions in present and as a result of this change certified importance of
information (Yeloğlu, 2004). This situation leads to change in the qualities of those who were
employed. The development information and communication technologies help to people
show their expertise and skills. If a country does not make investment to improve human
capital that country will have inequality for using information and communication
technologies in global world.
Developments in computer and communication technologies are forcing businesses to follow
the development in perspective of cost, time, quality and service issues (Şahin, 2010). When
they are following this development they are also changing qualify of their employment. The
increasing prevalence of information and communication technologies are increasing demand
for qualified people and also decreasing demand for unqualified people.
Toffler stressed "the technology is feeding itself in three stages, the first one is creativity and
the second one is practical applicability, last one is diffusion of technology to society.
(Toffler: 1970). It may take certain time for work force to conform to changes in the
employed labor force. Developments of internet and information technologies are named as
the new economy in the 1990s in America. Then labor productivity has increased in EU and
unemployment rates remained low compared previous years (Freeman, 2002).
Women workforce in the service sector was 92% and male workforce was 74% in 2008 in the
world. In addition to woman workforce more than male workforce in service sector, male
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workforce more than female workforce in science, engineering and technology sectors
(www.wrc.org.uk. Accessed 04/26/2012). Employment rate of female labor in the agricultural
sector went down to 42.2% from 50% in Turkey between the years 2004 and 2011. At the
same period employment rate of male labor in the agricultural sector moved to 18% from
21%. Employment rates of male in the industry sector raised up to 31% from 28% despite of
fact that female employment rate went down from 16% to 15%. When the service sector is
examined we show that female employment increased from 33% to 42%. Male employment
in service sector remained around 50% at the same period (http://www.tuik.gov.tr. accessed:
26.04.2012). Atik and Tombak (2012) examined women employment in knowledge economy
and employment structure in turkey compared to US, Japan, EU, BRIC countries. They figure
out that women employment could not take enough place in knowledge economy, women
mostly work in agriculture sector in Turkey. Atik and Altınparmak (2010) tested contribution
of knowledge economy to employment in Turkey compared with 27 EU countries. As a result
of analysis, female labor force more employed then male labor force. According to the paper
contribution of knowledge economy to employment is about 28,7 in 2008. Freeman (2002)
tested relationship between earnings per hour and computer usage in the early 2000’s. he
found positive relationship between variables. Yeloğlu (2004) compared Turkey with EU
countries about variables of knowledge economy and changing in years between 1995 and
1999. He figured out Turkey similar to North European counties about knowledge economy.
Arslan (2010) investigated the relationship between woman employment and knowledge
economy. They used panel data analyses to test relationship between the years 2000 and 2009.
According to results, significant relationship has been identified between the variables. In
addition it has been found long term causality from knowledge economy to woman
employment.
3.Employment Structure of Women Labor Force
In the late of 1970’s economy began to liberalization by the effect of development in the
computer and liberal views. at the beginning of the 1990s new media, digital networks and
information and communication technologies replaced of electronic age. This innovation
brought by the knowledge economy leads people to do all transactions through a virtual
environment. The internet users and ratio between total population and internet users in
Turkey are given in following table comparison with other countries.

Table 2. 1. Internet Users and Population Statistics for 2011
Estimated Population
Ratio of Total
Countries
Internet Users
in 2011
Population

182

USA

313,232,044

245,203,319

78.20%

Japan

126,475,664

99,182,00

78.40%

Germany

81,474,834

65,125,000

79.90%

France

65,102,709

45,262,000

69,50%

Italy

61,016,814

30,026,824

49.20%

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Spain

46,754,824

29,093,984

62.20%

Turkey

78,785,548

35,000,000

44.00%

Source: http://www.internetworldstats.com/top20.htm

Some countries where highest numbers of internet users are given in the table above. Turkey
ranked 10 from 20 countries in 2011 also Turkey ranked 11 from 20 in 2010. The woman
internet users in Turkey are shown in the table following over years.
Table 2. 2. Internet and Computer Using Rates for women in Turkey between 2004 and 2011
Years
2004 2005 2007 2008 2009 2010 2011
Numbers of Internet Users

6,1

5,6

20,7

26,6

28.0

31,7

35,3

Numbers of Computer Users

8,2

8,0

23,7

28,5

30,0

33,2

36,9

Source: http://www.tuik.gov.tr

After 2005 woman internet users are increased rapidly. It is reached 35,3% in 2011. In the
same way numbers of woman computer users are increased rapidly. It is reached 36,9% when
it was jus 8,2% in 2004.
Table 2. 3. The Relationship between Education Level and Computer Usage For Woman in Turkey
Not
High
Years
Elementary Secondary
Faculty
Graduated
School
School
2004

0,3

0,4

6,0

26,2

2005

0,4

1,2

16,9

64,9

2007

0,3

5,3

30,1

82,4

2008

1,2

7,1

38,3

85,5

2009

1,3

9,3

47,1

86,7

2010

1,6

10,6

48,5

68,2

89,9

Table 2.3. showed that women who do not graduated from any school used computer almost
zero percent but this rank reached just 1.6 percent in 2010. Women who graduated elementary
school use computer more then not graduated ones but increased from 0.4% to 10.6% in six
years. For the secondary school level almost half of women used computer in 2010. For high
school level we could not find more data but table showed that 68,2% of women used internet
graduated from high school. This rank is reached high level for the woman who graduated
faculty. It was almost 90 % in 2010. That is quite sure number of woman who use computer
increased after 2004 rapidly.
Table 2. 4. The Relationship between Education Level and Internet Usage For Woman in Turkey
Not
Years
Elementary Secondary High Faculty
Graduated
School
School

183

2004

0,2

0,2

3,6

8,3

22,6

2005

0,2

0,3

9,8

27,1

57,9

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

2007

0,2

3,9

23,3

49,1

80,7

2008

0,8

5,9

35,6

57,0

85,1

2009

1,1

7,7

43,5

62,4

85,8

2010

1,1

9,6

46,2

66,4

88,8

Table 2.4. showed that Turkey has same characteristic for Computer and internet usage for
woman. Both of table almost have same ranks. Woman who graduated from faculty using
internet more than 80% after 2005.
The use and access of women to information and communication technologies is lower than
in men. Reasons for this problem;


Low level of literacy rate and educational level



Women have less time because of her role in society



Woman have less financial resources in society



Geographical location: women are living in rural areas more than men in developing
countries.

Traditionally, the sectors separated such as agriculture, industry and services.
Table 2. 5. Female Employment Rates in Agriculture-Industry-Service Sector

Years

Agriculture Industry Service

2004

50.8

16,1

33.1

2005

46.3

16,6

37.0

2006

43.6

16,4

40.0

2007

42.7

16,1

41.2

2008

42.1

15,7

42.2

2009

41.6

15,3

43.1

2010

42.4

15,9

41.7

2011

42.2

15,2

42.6

Woman labor force in agriculture was 50.8% in 2004. Then woman labor force decreased by
8 percent over years and it was 42,2% in 2011. Woman labor force in industry did not change
much. It was on the line between 15-16%. Woman who worked in service sector increased by
9 percent at the same period and reached to 42,6 in 2011. This table also showed 8 percent
loss in agriculture moved to service sector for women employment.
3.1.Result
In recent years, the technological developments have led to a new social and political
dynamics. Activities of the economic units are faster and cost effectively with effect of
information and communication technologies. Information is a today's most important
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

production factor. Source of value creation in the knowledge economy are education,
information technology and science.
Knowledge economy moved location of business areas to virtual environment based on
technology. As a result of this, the way of employment has also changed using. Using
information became more important than using physical strength to employee. In this case
government must generate some policies for individuals to adjust them to conditions that
knowledge economy brought. Women's employment is an issue that needs to be emphasized
even more important. Women, non-governmental organizations to adapt to these
improvements in technology, the state has to undertake the activities. It is important problem
for developing and underdeveloped countries that women were left out of the labor force.
Woman in society mostly has not and has no money for developing her personal skill. this
issue important especially for their competitive strength against male workforce in knowledge
economy. Woman work force mostly employee in agriculture sector and woman work force
increased in the last decade in turkey but still so far from developed countries. Government
should make policies to increase using of information technologies. Otherwise it could be so
hard for the woman change their work sector and employee in knowledge sector. Government
also leaves some budget for developing personnel skills. At the same time woman adopt
herself to technology age to employee in knowledge sector. Developing countries should
follow new technology age’s requirement and adopt it to economy for catching developed
countries.
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Economic Costs And Benefits Of The Eu Enlargement: The Impact On The Eu And
Seec’s
Kurtagić Haris, Nuroglu Elif
International University of Sarajevo, Sarajevo, B&amp;H
E-mails: kurtagic.h@hotmail.com,enuroglu@ius.edu.ba
Abstract
The South-eastern enlargement of the European Union will be the sixth enlargement since
establishing the European Community in 1957. The research uses the Gravity model, and
measures the factors that have an influence on trade. The Gravity model involves coefficients
186

�</text>
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                <text>In recent years, information and communication technology has changed remarkable by effect  of globalization movement that occurring in the world. This changing also affected world  economy significantly at the same time. Nowadays the new economic relations based on  information technologies, such as labor and capital have reduced the importance of production  factors and information has been the most important elements in the production factors.  Continuously variation in technology with the creative power of information causes a change  in the employment parallel. The main purpose of the study is to examine how information  and communication technologies have changed the direction of the woman’s employment.  Along with the development of information and communication technologies, computer and  communication tools take place of the labor force could be decreased the number of  employment, may also increase with the emergence of new business opportunities. Like many  other developing countries, Turkey is implementing various projects and taking some steps to  adapt and take advantages of benefits of the knowledge economy. With all other economic  variables women’s employment is also affected by the steps thrown and this response has  socially importance. This paper aims to investigate Turkey's harmonization process in the  knowledge economy and how knowledge economy impacted on female employment in  Turkey and make some assumptions for future.  Keywords: Knowledge economy, Woman’s Employment, Unemployment, Turkey’s  Economy</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Sevier, R. (2001), Brand as Relevance, Journal of Marketing forHigherEducation, 10 (3), 77-96.
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Communications, 5 (1), 5-11.

Residents’ Perceptions towards Sustainable Tourism Development: The Case of Alanya
Aydin Cevirgen, Furkan Baltaci, Onur Oku
Akdeniz University, Alanya Faculty of Business, Tourism Administration, Antalya, Turkey
E-mails: acevirgen@akdeniz.edu.tr, fbaltaci@akdeniz.edu.tr, onuroku@akdeniz.edu.tr
Abstract
Sustainable development approach is of utmost importance for the future existence of tourism
destinations. Therefore, enabling tourism development based on sustainability principles
economically, socially and environmentally is considered to be a necessity. All stakeholders of
the tourism sector have important roles in this development process. Especially, the inclusion of
residents to this process and their involvement in decision-making mechanisms represent a focal
point in sustainable tourism development. Any tourism development that does not take into
consideration the needs and expectations of residents does not have much chance for success.
There have been many studies made about residents’ perceptions and attitudes towards tourism
and tourism development in tourism literature. However, only a few studies use sustainable
development perspective in order to determine residents’ perceptions towards tourism
development. Therefore, this study was conducted to determine the residents’ perceptions
towards sustainable tourism development in Alanya, an important tourism destination of Turkey
and Mediterranean region. Data gathered from 134 residents in Alanya were analyzed using
factor and correlation analysis, t-tests and ANOVA. Results presented a four-factor perceived
sustainable tourism development measurement scale: environmental sustainability; perceived
social costs; maximizing community participation; and perceived economic benefits. Findings
have shown that there is a significant correlation between perceived economic benefits and two
of the other three factors, which are environmental sustainability and maximizing community
participation. Another main finding of the study is that residents are not fully aware of nor have
65

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

much knowledge about the concept of sustainability and its principles, yet they still have shown
positive attitude towards its principles.
Keywords: Alanya, Residents, Residents’ Perceptions, Sustainability, Sustainable Tourism
Development, Sustainable Development, Tourism.
1. INTRODUCTION
The sustainability phenomenon has emerged from the negative impacts of the continuously
increasing world population’s pressure on environmental resources. Mankind realized that a
balance was needed to be set between development and consumption of environmental resources.
At that stage, the notion of “sustainable development” came up at the end of 1980s and started to
be widely used. Sustainable development approach is not against the idea of economic progress.
The fundamental idea here is taking into consideration the needs of the present day and future
generations, while using all natural or man-made resources without depleting them or spoiling
their quality (Demir &amp; Cevirgen, 2006: 93-94).
Sustainable development approach refers to development in all sectors all together. This
statement also applies to tourism sector, which is a huge driving force in yielding economic
growth. Parallel to the discussions related to the notion of sustainable development, concept of
“sustainable tourism” has been talked about frequently since the early 1990s. The main resources
of tourism consist of the physical, social and cultural attractions of the tourism destination.
Transforming these resources to economical value that is beneficial to residents will only be
possible by sustainable tourism development. Sustainable tourism is considered as a tool for
decreasing the negative effects of tourism to a minimum and ensuring the existence of the
destination in the long term, therefore is vital for tourism destinations. Tourism stakeholders
should base tourism development on environmental, economic and socio-cultural principles of
sustainability for the future success of their destination.
Although all stakeholders have important roles in sustainable tourism development, residents are
the most affected from and need to show full support to the process. If residents are not sold on a
tourism development and do not participate in its decision making process, there is not much of a
chance for the development to succeed in the long-term, simply due to the fact that residents will
take a negative stance against the existing or future developments. This study aims to determine
the perceptions of residents towards tourism developments in Alanya from sustainability
perspective. It also attempts to explore the relationship among the factors of sustainable tourism
development.
2. CONCEPTUAL FRAMEWORK
Sustainable development concept was introduced by the World Commission on the Environment
and Development (WCED), who published the Brundtland Report, also known as “Our Common
Future”, in 1987. In this report, sustainable development was defined by the WCED as
“development that meets the needs of the present without compromising the ability of future
generations to meet their own needs” (Corakci, 1991: 71; Demir &amp; Cevirgen, 2006: 96). In order
66

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

to achieve this development, there needs to be a social structure that helps the resolution of
conflicts, an economic system that enables the production of continuous source of surplus, and a
source of technical knowledge. More importantly, environment must be protected (Byrd, 2007:9).
Tourism has been one of the earlier and more active sectors that adapted to sustainability
principles and sustainable tourism development concept have been widely discussed since 1990s.
Sustainable tourism development could be defined as all kinds of tourism developments that
make a notable contribution to or, at least, do not contradict to the principles of sustainable
development without compromising the ability of future generations to satisfy their own needs
and desires (Tosun, 2001: 290).
Another view describes sustainable tourism within sustainable development in the sense that if
tourism is to contribute to sustainable development, it must be economically viable,
environmentally sensitive and socio-culturally appropriate. Sustainable tourism has been
generally viewed as a vehicle by which the negative impacts of tourism can be addressed and by
which long-term viability can be achieved (Kitnuntaviwat &amp; Tang, 2008: 47-48).
In order for any form of tourism development to be sustainable, residents should be the focal
point in its development (Dyer et al., 2007: 410; Choi &amp; Sirakaya, 2005: 381). Residents’
attitudes are crucial for successful sustainable tourism development because an understanding of
the community’s attitudes and perceptions and how these perceptions are formed would be
valuable knowledge for decision makers. (Esheliki &amp; Kaboudi, 2012: 335).
Understanding the prerequisites for support by local residents towards tourism development is
crucial for local governments, businesses, decision makers and policymakers, because success of
any sustainable development depends on active support of residents. Any active opposition may
hinder or slow the development (Gursoy &amp; Rutherford, 2004: 495).
Residents’ participation in planning and development stages is also a fundamental necessity for
sustainability of the development (Dyer et al., 2007: 410; Oviedo-Garcia et al., 2008: 95). Active
participation of the community can make sustainable tourism viable for the community. This
viability can be created by opening carefully developed management communication channels
with receptive governments (Choi &amp; Sirakaya, 2005: 382).
Understanding local residents’ attitudes toward tourism development is vital for the success and
sustainability of any type of tourism development. Community involvement is one of the
important factors that may significantly influence the sustainability of any tourism development.
Involvement of residents in the planning and operational stages may ensure that development will
be socially and environmentally responsible and that resulting impacts will be perceived as more
appropriate by residents (Gursoy et al., 2010: 381, 383).
The measurement of residents’ perceptions of tourism development plays a vital role in the future
success of any destination (Andriotis, 2005: 68). Many studies have examined resident attitudes
and the factors that are likely to influence those attitudes. Most of these studies suggest that
residents tend to have positive attitudes because they see tourism as an economic development
tool (Gursoy et al., 2010: 381).

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3. METHODOLOGY
This study was conducted in April, 2012 in the resort town of Alanya, which lies on the coast of
Gulf of Antalya. Alanya, as one of the major tourism destinations of Turkey with a bed capacity
of 146,533; received 1,848,607 foreign tourists in 2010, which constituted 6,45% of total foreign
tourists who visited Turkey. Alanya also received 4,85% of Turkey’s total tourism receipts in
2010 (Alanya Chamber of Commerce and Industry, 2011: 120,124; Turkish Statistical Institute,
2011: 46).
According to 2010 census, the population of Alanya Centrum is 104,000. In order to gather data,
a structured questionnaire survey was applied to 134 local residents of Alanya. With this respect,
the study is preliminary for any future research in the related fields. The questionnaire consisted
of two sections, one being general profile of the respondents, and the other part being 26
questions about residents’ perceptions on sustainable tourism development.
After the revision of empirical and theoretical research of the related literature, 26 questions
about residents’ perceptions and attitudes towards sustainable tourism development and tourism
impact were adapted to this study (Brida et al.,2011; Cevirgen &amp; Kesgin, 2007; Oviedo-Garcia et
al., 2008; Prayag et al., 2010; Sirakaya-Turk et al., 2008). A 5-point Likert scale was used in this
second part of the questionnaire, ranging from 1=”completely disagree” to 5=”completely agree”.
The data collected were analyzed by using SPSS software. Data analysis consisted of descriptive
statistics, frequency distributions, factor analysis, correlation analysis, t-test and ANOVA.
4. FINDINGS
According to the profiles of the respondents as shown on Table 1, 66% were male; 45% were
between the ages 26-33; 50% were married; 88% were actively working; 50% were working in
tourism sector; and 52% had a university or a further degree. 40% of the respondents were living
in Alanya for 1 to 5 years, while 18% were in Alanya for more than 26 years. 44% of the
respondents earn between 1,000 TL to 2,000 TL monthly.
Table 1. Respondent Profile

Gender

n

%

Age

n

%

Male

88

66

18-25

28

21

Female

46

34

26-33

60

45

34-41

12

9

Marital Status
Married

67

50

42-49

18

13

Single

67

50

50 &amp; above

16

12

Are you working right now?
68

Is your job tourism-related?

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Yes

118

88

Yes

65

50

No

16

12

No

64

50

Is anyone in your family (spouse / children)
working in tourism sector? (n - %)

Education
Elementary

12

9

Yes

29

22

Secondary

10

8

No

101

78

High school

20

15

Duration of Residency in Alanya (years, n - %)

Vocational

21

16

Less than 1

7

5

Bachelor’s

28

20

1-5

54

40

Master&amp;PhD

42

32

6-10

17

13

11-15

15

11

Monthly Salary (¨ - TL)
None

8

6

16-20

10

8

Min Wage-1000

28

21

21-25

5

4

1001-1500

29

22

26 &amp; above

24

18

1501-2000

30

22

2001-2500

24

18

2501 &amp; above

15

11

Firstly, reliability of the whole scale was tested. Cronbach’s alpha was found as 0,762; well
above the generally agreed lower limit of 0,60 for research at exploratory stage (Sencan, 2005:
170). Then, the principle component analysis was performed to identify the underlying
dimensions of the perceived sustainable tourism development items. The Keiser-Meyer-Olkin
value was 0,688, and the Barlett Test of Sphericity was statistically significant at 0,000 level,
indicating that the data were suitable for factor analysis. These 26 items were subjected to factor
analyzed with Varimax rotation. Minimum item loading of 0,50 was selected to interpret
variables considered significant. Two of the 26 items were dropped because their loading was
below 0,50. These two items were “Alanya is overcrowded because of tourism development”,
and “Full participation in tourism decision making by everyone is a must for successful tourism
development”.
The factor analysis revealed four major factor areas; environmental sustainability (8 items),
perceived social costs (5 items), maximizing community participation (5 items), and perceived
economic benefits (6 items). Table 2 shows the results and Cronbach’s Alpha of each factor.
69

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Reliability of the four factors ranged from 0,749 to 0,867. The four factors explained a total of %
52,62 of the variance.
Residents showed their highest perception to perceived economic benefits with mean of 4,16
among the four factors. Residents generally are positive towards all of the factors except their
neutral approach towards maximizing community participation with a mean of 3,09.
Table 2. Results of Factor Analysis

ITEMS

Factor
Loading

Factor 1. Perceived Economic Benefits (PEB)

%
of
Variance
Mean Alpha
Explaine
(α)
d

5,23

16,51

4,16

PEB23 – Tourism creates new sources of income

,924

4,23

PEB24 – Tourism is good for local economy

,908

4,34

PEB22 – Tourism diversifies the local economy

,897

4,19
0,867

PEB21 – Tourism is a strong economic contributor
,883
to community

4,36

PEB25 – Tourism creates new markets for local
,593
products

3,72

PEB26 – Tourism increases awareness for
,535
protection of natural resources

4,10

Factor 2. Environmental Sustainability (ES)
ES7 – Tourism protects the environment

70

Eigenvalue

3,26

14,88

3,52

,761

3,58

ES2 – Tourism enables better public services
,748
(roads, etc.)

3,53

ES1 – Tourism has improved the infrastructure
,687
(electricity, etc)

3,64

ES8 – Community environment must be protected
,671
now and for the future

3,84

ES4 – Tourism development helps the protection
,660
of natural life

2,78

0.840

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

ES6 – Biological diversity is being protected

,637

3,57

ES3 – Tourism encourages the creation of parks
,628
and leisure areas for residents

3,70

ES5 – Tourism is being developed in harmony
,583
with natural and cultural environment

3,53

Factor 3. Maximizing Community Participation
(MCP)

2,76

11,41

3,09

MCP16 – Residents are given opportunities in
,802
tourism decision making

3,11

MCP19 – Residents should be encouraged to
assume leadership roles in tourism planning ,764
committees

2,93
0.761

MCP20
–
Tourism
promotes
positive
environmental ethics among all parties with a ,710
stake in tourism

3,30

MCP18 – Residents should be given more
,693
opportunities to invest in tourism developments

3,15

MCP17 – Tourism industry must embrace the
,621
values of residents

2,94

Factor 4. Perceived Social Costs (PSC)

10.20

2,69

PSC12 – Residents’ quality of life has deteriorated
,802
because of tourism

2,33

PSC10 – Tourists disrupt the quality of life in the
,768
region

2,61

PSC11 – Residents often feel irritated because of
,758
tourism

2,53

PSC14 – Tourism negatively affects the life style
,687
of residents

2,90

PSC13 – Tourism causes problems in security and
,636
crime

3,06

Overall Reliability of the Scale (α)
71

2,43

0.749

0.762

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Total Variance Explained

52,62

KMO

0.688

Bartlett’s Test of Sphericity

Sig.

0.000

According to the correlation analysis as shown in Table 3, positive and statistically significant
correlation was found twice, between three factors: environmental sustainability with perceived
economic benefits (p&lt;0,05); and maximizing community participation with perceived economic
benefits (p&lt;0,01).
Table 3. Correlation Analysis

Groups

1

Environmental Sustainability

1

Perceived Social Costs

-0,105

1

Maximizing
Participation

0,119

-0,112

1

0,213*

-0,046

0,254**

Community

Perceived
Benefits

Economic

2

3

4

1

*Correlation is significant at the 0.05 level (2-tailed).
**Correlation is significant at the 0.01 level (2-tailed).
ANOVA and t-tests were applied in order to test whether there were any statistically significant
differences between residents’ perceptions towards sustainability tourism development and their
characteristics. According to these tests, no significant difference was observed between the four
sustainable tourism development factors and gender, work status, tourism related work, tourism
related working family member, and age.
On the other hand, results of statistically significant differences were presented on the tables
below. According to Table 4, single and married respondents showed statistically significant
difference in terms of their perception towards environmental sustainability (p=0,001&lt;0,01).
Table 4. Summary of t-test results for Marital Status

72

Dependent Components

Marital
Status

Mean

Standard
Deviation

t

p

Environmental

Married

3,65

0,69

1,873

0,001**

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Sustainability

Single

3,39

0,91

Married

2,55

0,86

Perceived Social Costs
Maximizing
Community
Participation
Perceived
Benefits

Economic

Single

2,83

0,75

Married

3,19

0,72

Single

2,98

0,78

Married

4,34

0,57

Single

3,97

0,85

-2,029

0,626

1,631

0,233

3,000

0,185

According to Table 5, respondents’ perception towards maximizing community participation
showed statistically significant differences with respect to their level of education
(p=0,000&lt;0,01). A post-hoc Tukey test was used to detect the differences in means among
education levels. Vocational school graduates (3,44) responded significantly higher than Master
and PhD graduates (2,69). There were not any other significant differences between the other
levels of education.
Table 5. Summary of ANOVA and post-hoc Tukey multiple comparison test
results for Education

Factors

df

Mean
Square

F

Sig.

Environmental Sustainability

132

1,098

1,708

0,137

Perceived Social Costs

132

0,627

0,961

0,445

Maximizing
Participation

132

2,392

4,800

0,000**

132

0,819

1,515

0,190

Perceived
Benefits

Community
Economic

According to Table 6, respondents’ perception towards maximizing community participation
showed statistically significant differences with respect to their monthly income (p=0,003&lt;0,01).
A post-hoc Tukey test was used to detect the differences in means among monthly income.
Residents earning 1,001 to 1,500 TL (3,52) responded significantly higher than residents earning
1,501 to 2,000 TL monthly (2,78). There were not any other significant differences between the
other levels of monthly income.
73

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Table 6. Summary of ANOVA and post-hoc Tukey multiple comparison test
results for Monthly Income

Factors

df

Mean
Square

F

Sig.

Environmental Sustainability

133

1,350

2,129

0,066

Perceived Social Costs

133

1,255

1,971

0,087

Maximizing
Participation

133

1,998

3,872

0,003**

133

0,745

1,375

0,238

Community

Perceived Economic Benefits

According to Table 7, respondents’ perception towards environmental sustainability showed
statistically significant differences with respect to their duration of residency in Alanya
(p=0,003&lt;0,01). A post-hoc Tukey test was used to detect the differences in means among
duration of residency. Residents who have been living in Alanya for 16-20 years (2,82)
responded significantly lower than residents living in Alanya for more than 26 years (4,00).
There were not any other significant differences between the other levels of duration of
residency.
Table 7. Summary of ANOVA and post-hoc Tukey multiple comparison
test results for Duration of Residency in Alanya

Factors

df

Mean
Square

F

Sig.

Environmental Sustainability

131

2,083

3,452

0,003**

Perceived Social Costs

131

1,619

2,599

0,021

Maximizing
Participation

131

1,205

2,196

0,048

131

1,102

2,088

0,059

Community

Perceived Economic Benefits

74

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

5. CONCLUSION
According to the results of this empirical study, residents in Alanya have shown positive
perceptions towards sustainable tourism developments. Yet, they have shown neutral approach
towards maximizing community participation, which is one of the most important principles of
sustainable development. This situation shows that residents do not have strong awareness about
the concept of sustainability. Another point to mention is that residents do not feel they are a part
of the decision making process of tourism development of the region.
Residents of Alanya think that tourism developments generally have a positive contribution to
environmental sustainability, but their belief that tourism does not protect the natural life limited
their level of support towards tourism developments.
Tourism developments in Alanya do not create significant level of perceived social costs,
according to residents. This positive attitude of residents towards tourism developments is of
critical value for the sustainability of tourism in the region.
Residents of Alanya also think that tourism contributes greatly towards regional economy. In
order to maximize the economic benefits of tourism, more involvement and participation of
residents into tourism decision making mechanisms is needed.
In the light of these findings, tourism leaders and planners need to make substantial effort in
order to raise the awareness of residents on sustainability principles and to maximize community
participation, because residents’ involvement in tourism developments is of utmost importance
for sustainable development of the destination.
It would be beneficial for any future studies to focus on including the other stakeholders of
tourism sector and comparing the results of each stakeholder’s perceptions.
REFERENCES
Alanya Chamber of Commerce and Industry. (2011). Alanya economic report 2010, Alanya.
Andriotis, K. (2005). Community groups' perceptions of and preferences for tourism
development: evidence from Crete, Journal of Hospitality &amp; Tourism Research, 29 (1), 67-90.
Brida, J.G., Osti, L. &amp; Faccioli, M. (2011). Residents’ perception and attitudes towards tourism
impacts: A case study of the small rural community of Folgaria (Trentino–Italy), Benchmarking:
An International Journal, 18 (3), 359-385.
Byrd, E.T. (2007). Stakeholders in sustainable tourism development and their roles: applying
stakeholder theory to sustainable tourism development, Tourism Review, 62 (2), 6-13.
Cevirgen, A. &amp; Kesgin, M. (2007). Local authorities’ and NGOs’ perceptions of tourism
development and urbanization in Alanya. Tourism: An International Interdisciplinary Journal.
55(3), 309-322.
Choi, H.S.C. &amp; Sirakaya, E. (2005). Measuring residents’ attitude toward sustainable tourism:
development of sustainable tourism attitude scale, Journal of Travel Research, 43, 380-394.
Corakci, B. (1991). Ortak Geleceğimiz, Türkiye Çevre Sorunları Vakfı Yayını, 3. Baskı, Ankara:
Önder Matbaa.
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Demir, C. &amp; Çevirgen, A. (2006). Turizm ve Çevre Yönetimi Sürdürülebilir Gelişme Yaklaşımı,
Ankara: Nobel Yayın Dağıtım.
Dyer, P., Gursoy, D., Sharma, B. &amp; Carter, J. (2007). Structural modeling of resident perceptions
of tourism and associated development on the Sunshine Coast, Australia, Tourism Management,
28, 409-422
Eshliki, S. A. &amp; Kaboudi, M. (2012). Community perception of tourism impacts and their
participation in tourism planning: a case study of Ramsar, Iran, Procedia - Social and Behavioral
Sciences, 36, 333-341.
Gursoy, D., Chi, C. G. &amp; Dyer, P. (2010). Locals' attitudes toward mass and alternative tourism:
the case of Sunshine Coast, Australia, Journal of Travel Research, 49 (3), 381-394.
Gursoy, D. &amp; Rutherford, D. G. (2004).Host attitudes toward tourism: an improved structural
model, Annals of Tourism Research, 31 (3), 495-516.
Kitnuntaviwat, V. &amp; Tang, J.C.S. (2008). Residents’ attitudes, perception and support for
sustainable tourism development, Tourism and Hospitality Planning &amp; Development, 5 (1), 4560.
Oviedo-Garcia, M. A., Catellanos-Verdugo, M. &amp; Martin-Ruiz, D. (2008). Gaining residents’
support for tourism and planning, International Journal of Tourism Research, 10, 95-109.
Prayag, G., Dookhony-Ramphul, K. &amp; Maryeven, M. (2010). Hotel development and tourism
impacts in Mauritius: Hoteliers' perspectives on sustainable tourism, Development Southern
Africa, 27 (5), 697-712.
Sirakaya-Turk, E., Ekinci, Y. &amp; Kaya, A.G. (2008). An examination of the validity of SUS-TAS
in cross-cultures, Journal of Travel Research, 46, 414-421.
Şencan, H. (2005). Sosyal Davranışsal Ölçümlerde Güvenilirlik ve Geçerlilik, Ankara: Seçkin
Yayıncılık.
Tosun,C. (2001). Challenges of sustainable tourism development in the developing world: the
case of Turkey, Tourism Management, 22, 289-303.
Turkish Statistical Institute. (2011). Tourism statistics 2010, Ankara.

76

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                <text>Sustainable development approach is of utmost importance for the future existence of tourism  destinations. Therefore, enabling tourism development based on sustainability principles  economically, socially and environmentally is considered to be a necessity. All stakeholders of  the tourism sector have important roles in this development process. Especially, the inclusion of  residents to this process and their involvement in decision-making mechanisms represent a focal  point in sustainable tourism development. Any tourism development that does not take into  consideration the needs and expectations of residents does not have much chance for success.  There have been many studies made about residents’ perceptions and attitudes towards tourism  and tourism development in tourism literature. However, only a few studies use sustainable  development perspective in order to determine residents’ perceptions towards tourism  development. Therefore, this study was conducted to determine the residents’ perceptions  towards sustainable tourism development in Alanya, an important tourism destination of Turkey  and Mediterranean region. Data gathered from 134 residents in Alanya were analyzed using  factor and correlation analysis, t-tests and ANOVA. Results presented a four-factor perceived  sustainable tourism development measurement scale: environmental sustainability; perceived  social costs; maximizing community participation; and perceived economic benefits. Findings  have shown that there is a significant correlation between perceived economic benefits and two  of the other three factors, which are environmental sustainability and maximizing community  participation. Another main finding of the study is that residents are not fully aware of nor have much knowledge about the concept of sustainability and its principles, yet they still have shown  positive attitude towards its principles.  Keywords: Alanya, Residents, Residents’ Perceptions, Sustainability, Sustainable Tourism  Development, Sustainable Development, Tourism.</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

The Usage Of E-Health In The Sustainability Of Attitude And Behavioral Changes: An
Example On The Health Management Students

Aygen Oksay1, Didar Büyüker İşler2, Gaye Atilla1, Münire Çiftçi2
1 Health Management Department, Suleyman Demirel University, Isparta-Turkey
2Tourism Management Department, Suleyman Demirel University, Isparta-Turkey

Abstract
The aim of this study is to find out the effects of e-health on the undergraduate students. This
study also tries to examine the results of attitude and behavioral changes of the participants.
A questionnaire was done on the first and second grade students as well as some MBA
students of Health Management Department of Suleyman Demirel University, Faculty of
Economics and Administrative Sciences. The answers given to the questionnaire was tested
by using the appropriate statistical tests in SPSS 16.0 program. According to the results the
participants perception of the concept ‘health communication’ is not definite. The results also
show that the participants use Internet but not very efficiently.

Keywords: e-health, sustainability in health, health behavior, behavior change, health system.

1. Sustainability in Health
One can’t ignore the importance of health in sustainable development. For the nations to
reach their goals of sustainable development; they must have a strategy to create a healthy
society. Thus the mass media especially the Internet must be used very actively and
efficiently.
The Internet has proven to be a powerful and very popular vehicle for distributing health
information to millions of individuals; it is interactive, user controlled and provides an
effective means for communicating detailed information (Erdem &amp; Harrison-Walker, 2006:
387). In fact, the word ‘patient’ is being slowly replaced, at least implicitly, by the word
‘consumer’ (Ball &amp; Lillis, 2001: 2).
In that respect e-health, which can help the knowledge and technology in the health services
spread to a wide range of people, is a very important communication channel that should be
used for the sustainable development of health.
The Alliance for Natural Health (ANH) first defined sustainable healthcare in 2006 in the UK
journal The Nutrition Practitioner. The definition is as follows: "A complex system of
interacting approaches to the restoration, management and optimization of human health that
has an ecological base, that is environmentally, economically and socially viable indefinitely,
401

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

that functions harmoniously both with the human body and the non-human environment, and
which does not result in unfair or disproportionate impacts on any significant contributory
element of the healthcare system." (http://www.anh-europe.org/campaigns/sustainablehealthcare ).

1.1. E-Health: Sustainable Healthcare
Health is defined as a ‘state of complete physical, mental and social well-being not merely
the absence of disease or infirmity’ by the World Health Organization (WHO) in 1948. But
according to King (1990: 4) WHO’s celebrated definition should be transformed into “health
is a sustainable state of complete…..”. As one can see sustainability is highlighted in this new
version of definition. For health to be a sustainable state the changes in health attitudes and
behaviors must be sustainable as well. But the technology driven demand changes, the
demographic driven demand changes, workforce and funding challenges and also the quality
and safety challenges all add up to an unsustainable health system. Coordination, integration
and sharing of information in context of organizational change are the necessities of a
sustainable system. Therefore e-health is an answer to this kind of development.
Many nations have started to use e-health. According to World Health Organization e-health
is the combined use of electronic communication and information technology in the health
sector (http://www.ehealthinfo.gov.au/, 21.3.2012). Similarly Eng (2001) defines it as ‘the
use of emerging information and communication technology, especially the Internet, to
improve or enable health and health care’ (Eng, 2002: 267).
E-health systems can improve access to information, thus increasing awareness of what is
known in the health sciences, while selective dissemination by electronic means can facilitate
targeting of information on those who either request it or are most likely to use it (Kwankam,
2004: 800). Since e-health could tailor information to unique needs and attributes of
individuals and communities; it will use improved customization, contextuality and
interactivity. Thus it’s very important to use this tool for the sustainability of the health
attitudes and behaviors.
There are over 100 000 web sites worldwide, proffering health information of varying quality
that is used by both professionals and laypersons. In 2001, 86% of all adults in the United
States with access to the Internet had consulted it for health-related information and 55% of
primary care physicians in Germany and 90% in the United States had made use of it (Risk &amp;
Dzenowagis, 2001: 28).
Studies present that communication mediated by computers and other digital technologies
can result in positive outcomes across a wide range of behaviors (Neuhauser and Kreps,
2003: 15). For example in an online study of people who frequently visit health and medical
websites, 90% of respondents felt they could manage their own health and 82% stated that the
Web offers better information on new medications than what physicians or pharmacists have
in their offices (Lach, 1999). One reason why so many people are turning to the Internet for
health information is the belief that today’s doctor—patient relationship lacks the attention to
402

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detail and personal touch that once existed. Patients go online because they want more than
what they typically receive from an office consultation (Erdem &amp; Harrison-Walker, 2006:
388).

1.2. The Changing of Health Behavior
Since the 1960’s considerable research has appeared on the effect of attitudes on behavior
(Liska and friends, 1984: 15). Attitude has been found to be the most significant factor
influencing behavioral intention. Compelling reason why attitude is so important is the fact
that attitude can be changed through persuasion and other means. An abundance of research
regarding attitude change and persuasion exists in the psychology literature. Since attitude is
the most significant predictor of intention (which in turn, is the best predictor of the actual
behavior), then behavior could possibly be influenced through attitude change and
persuasion. Attitude has been shown to significantly affect intention. If attitude can be
changed, then intention may be influenced (and subsequently behavior may be influenced).
(Al-Rafee and Cronan, 2006: 238).
From this point on one can say that for the health behavior change to occur as well as to
achieve sustainable development in the health area; the nations should use e-health systems
effectively.

2. The Research
The main aim of this study done is to measure the use of e-health in between the health
management students. The study is done in Health Management Department of the Faculty of
Economics and Administrative Sciences in Suleyman Demirel University. 1st and 2nd grade
along with some MBA students participated in the study. A questionnaire was distributed to
the whole population which was 200. Only 182 of them were able to be used in the analysis.
Thus 91% of the population is reached. The questionnaire was made up of three sections. The
first part consisted of demographic questions whereas the second part had questions towards
Internet usage. The last part consisted of e-health questions. The answers were analyzed
using SPSS 16.0.

3. The Results
3.1. The Demographic Findings
Every demographic question in the questionnaire has been analyzed in order to see the
frequency distribution of the participants. The findings are shown in Table 1.
As seen in Table 1 the % 58,8 of the participants are men and %41,2 are women. Half of the
participants are 1st grade students. %78 of the participants are 17-21 years old. The
participants who have a PC is around %56 and % 43,4 doesn’t have a PC. When this finding
is considered the percentage of not having a PC is relatively high. The duration of Internet
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

usage (1-10 years) has a big percentage of % 88 which is an expected situation. A same result
is seen in the usage of Internet. The findings show that %41,2 of the participants use Internet
every day and %42,9 of them use Internet a few times in a week.

Table 1: The Demographic Findings of the Participants
Variables

Valid

Frequency

%

Variables

Valid

Frequency

%

Gender

Men

107

58,8

Yes

102

56,0

Women

75

41,2

Having a
PC

No

79

43,4

Total

182

100,0

Total

181

99,4

1st Grade

92

50,5

1-5 years

86

47,3

2nd Grade

78

42,9

6-10 years

74

40,7

MBA

12

6,6

11-15 years

4

2,2

Total

182

100,0

1

0,5

165

90,7

Every day

75

41,2

A few times in a
week

78

42,9

A few times in a
month
Total

26

14,3

179

98,4

Grade

Age

17–21
years
22–26
years

142

78,0

33

18,1

27–31
years
32 years
and above

3

1,6

2

1,1

Total

180

98,9

The
Duration
of
Internet
Usage

How
often do
you use
Internet

16 years
above
Total

and

3.2. The Reasons of Internet Usage
The reasons of Internet usage are given in Table 2. As seen in Table 2 the %20,9 of the
participants say that they use Internet for fun. However the ones who use it for shopping is
only %8,8. %55,5 of the participants have indicated that they use Internet for social network
sites. On the other hand only %28,6 of them stated that they use Internet for individual
communication. The highest ratio (%64,8) is seen in the usage of Internet as a tool to gain
information. It is also seen from Table 2 that %51,1 of the participants use Internet for doing
homework, projects, etc.
Table 2: The Reasons of Internet Usage
The Attitudes

404

For fun

Frequency

%

For gaining
information

Frequency

%

No

144

79,1

No

64

35,2

Yes

38

20,9

Yes

118

64,8

Total

182

100,0

Total

182

100,0

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

For shopping

Frequency

%

For individual
Communication

Frequency

%

No

166

91,2

No

130

71,4

Yes

16

8,8

Yes

52

28,6

Total

182

100,0

Total

182

100,0

For social network
sites

Frequency

%

For preparing
projects, homework

Frequency

%

No

81

44,5

No

93

51,1

Yes

101

55,5

Yes

89

48,9

Total

182

100,0

Total

182

100,0

3.3. The Perception of the Concept Health Communication
Table 3 gives information on the participants’ perception of the concept health
communication. The result that stands out in Table 3 is that only 117 of the 182 participants
have answered the question on “What do you think is health communication?” When
analyzed there is no significant difference between the answers. Thus one might say that most
of the participants don’t really have an idea of this concept.
Table 3: The Perception on Health Communication
What is “Health Communication”

Frequency

The way to get information on health
in general
The announcement of developments
in health by using mass media
Have no idea

36

19,8

26

14,3

11

6,0

Forum sites

10

5,5

A relation between the one who gives
and gets the health service
The communication in between the
health personnel
The transferring of knowledge on
health truly
Getting information about doctors
and also getting an appointment
The cognitive system

10

5,5

7

3,8

6

3,3

6

3,3

5

2,7

117

64,3

65

35,7

182

100,0

Total
Lost data
Total

405

%

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

When the answers given are analyzed in detail one can see that only %5,5 of the participants
indicated that health communication is a relation between the one giving and the one getting
the health service. Similarly a small amount of %3,8 stated that health communication is the
communication which is in between the health personnel. As seen from Table 3; one can
easily see that %19,8 of the participants perceive health communication as “getting
information on health in general.” This answer is the highest answer given to this question.
The second highest answer given to this question is “the announcement of developments in
health by mass media” which %14,3 of the participants stated.
3.4. The Forum Sites on Health
When asked the participants whether they are a member of a forum site on health; only
%32,4 have said “yes.” On the other hand %67,6 have stated that they weren’t a member of a
forum site. When taken into account that the participants were university students, this result
is natural.
Table 4: Forum Sites on Health
Are you a member of a
forum site on health?

Frequency

%

No

123

67,6

Yes

59

32,4

Total

182

100,0

3.5. Usage of the Health Institution’s Web Page
Table 5 shows the answers given to the question asked to the participants whether they use a
health institutions’ web site before going there. As seen from Table 5 almost half of them
(%47,3) said “yes.” This actually helps us understand why the participants explain health
communication concept as to get information on health.
Table 5: Usage of the Health Institution’s Web Site
Before going to any health
institution do you visit its web
site?

Frequency

%

No

93

51,1

Yes

86

47,3

Total

179

98,4

3.6. The Most Visited Web Pages on Health
The participants were asked to write down the web sites on health that they visited the most.
According to the answers of the 119 participants who answered this question; it seems that
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

the most visited (%38,5) web site on health is the official web site of Ministry of Health.
Table 6 shows the first three web sites visited by the participants.
Table 6: The Usage of Web Sites on Health
Write the names of the web sites on health
you frequently visit

Frequency

%

www.saglik.gov.tr (Ministry of Health)

70

38,5

www.ailehekimliği.gov.tr (Family practice)

13

7,1

The web pages of hospitals

11

6,0

119

65,4

Total

3.7. The Ways of Getting Information on Health
The participants were asked to choose from a 5 point Likert scale how they would get
information on health. The answers are shown in Table 7. As seen from Table 7 only the
%24,2 of the participants say that they generally watch TV programs on health. On the other
hand %54,4 state that they rarely watch those kinds of programs. A similar situation is seen
when asked whether they listen to the radio programs made on health. %88,1 of the
participants have given negative answer to this question. Only %23,1 of the participants state
that they frequently read the health columns in the newspaper. The answers given to the
statement that “I get advice from a doctor” is interesting. The % 26,9 of the participants state
that they rarely get advice from a doctor whereas only %23,6 of them state that they
frequently ask a doctor. % 50 of the participants has claimed that they never consult a doctor
from the web. The ones who say that they can rarely consult a doctor from the web is %23,1
only. On the other hand %24,2 of the participants say that they always use the net to get
information on health.
Table 7: The Ways of Getting Information on Health
To get information on health in
general

Never
(%)

Rarely
(%)

Usually
(%)

Frequently
(%)

Always
(%)

Total
(%)

5,5

54,4

24,2

9,3

6,0

99,5

B2: I listen to the radio programs on
health.

44,8

43,3

8,8

2,2

,6

99,5

B3: I read the news on health in the
newspapers.

8,2

28,0

31,9

23,1

8,2

99,5

B4: I get advice from a doctor

8,2

26,9

25,8

23,6

13,2

97,8

50,0

23,1

13,7

8,2

4,4

99,5

6,0

18,7

28,6

22,5

24,2

100,0

B1:I watch TV programs on health

B5: I consult a doctor from web.
B6: I try to get information from
web.

407

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

3.8. The Reasons of Visiting the Web Site of a Health Institution
The answers participants chose from a 5-point scale to the statements as to learn the reasons
of visiting a health institution’s web site are showed in detail in Table 8. As seen in Table 8
% 37,4 of the participants stated that they never use the health institution’s web site to get an
appointment; whereas % 17 said always. The %36,8 of the participants claimed that they
never use the web site to get information on doctors. On the other hand %13,2 stated that they
use it frequently for this reason. The ones who use the health institution’s web site to learn
about the physical conditions of the hospital are only %3,2. Similarly % 64,3 of the
participants stated that they never use the web site to learn the agreed insurance companies.
% 29,7 of the participants indicated that they would in general use the web site to get the
contact numbers whereas %12,1 of them said that they would use the web site for this reason
frequently. Almost half of the participants (%40,1) stated that they would never use the net to
learn the results of the samples done in the hospital. Once more almost half of the participants
said that they would never use the web site of the health institution to make complaints or
suggestions. According to these results one can say that the participants of this study use the
web site of the health institution mostly to get information on doctors, to learn the contact
numbers and the way to get to the hospital and also to learn the physical conditions of the
hospital.
Table 8: The Reasons of Visiting the Web Site of a Health Institution
I visit the health institutions’ web
site to…

Never
(%)

Rarely
(%)

Usually
(%)

37,4

19,8

14,8

the

36,8

27,5

B9: see the physical conditions of
the hospital.
B10: learn about the insurance
companies the hospital has an
agreement with.
B11: get the contact numbers and
learn how to get there.

40,1

B12: learn the results of the analysis
(exp:blood sample) done in the
hospital.
B13: to make complaints and give
suggestions.

B7: get an appointment.
B8: get
doctors.

information

about

Frequently
(%)

Always
(%)

Total
(%)

9,9

17,0

98,9

15,4

13,2

3,8

96,7

29,7

17,0

8,2

3,2

98,9

64,3

20,3

9,9

3,8

1,1

99,5

25,3

24,7

29,7

12,1

6,6

98,4

40,1

25,3

19,8

9,3

3,8

98,4

43,4

34,1

10,4

8,2

2,7

98,9

3.9. The Usage of Mass Media

Table 9 shows the answers given to the statements on trusting mass media. %39 of the
participants state that they rarely trust the health news on Internet. %35,7 of them on the other
hand state that they usually trust those kinds of news. From this result one can say that the
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

participants are confused about the news in the net. The %36,3 of the participants stated that
they rarely trust the doctors’ advice who works a s a consultant in a forum site. Only the
%14,8 of them indicated that they frequently trust such doctors. Similarly %43,4 of the
participants indicated that they never trust the health campaign messages that come to their
cellular phones. % 19,8 of the participants stated that they usually keep track of a health
journal.
Table 9: The Usage of Mass Media
Never
(%)

Rarely
(%)

Usually
(%)

Frequently
(%)

Always
(%)

Total
(%)

B14: I trust the news on health I
see in the net.

10,4

39,0

35,7

10,4

3,3

98,9

B15: I trust the doctors’ advices
who work as a consultant of a
forum site.

14,8

36,3

28,0

14,8

4,9

98,9

B16: I take into consideration the
messages that come to my cellular
phone on health campaigns.

43,4

29,1

14,3

7,7

4,9

99,5

B17: I keep track of health
journals.

25,3

37,9

19,8

9,9

6,6

99,5

Items

When Table 7, Table 8 and Table 9 are analyzed deeply; one can say that the participants use Internet but not
efficiently.

4.CONCLUSION
60 % of the participants, who are mostly 17-21 years old, are males. Because of the fact that
the participants are university students, this actually explains why the Internet usage ratios are
high. This fact also affects the reasons of Internet usage. When looked at Table 2, one can see
that the first reason of Internet usage is to gain information while the second reason is to visit
social network sites. Besides these one can’t see the similar attitudes and behaviors towards
e-health usage. The thing that takes attention is the fact that e-health is used especially for
getting an appointment or gaining information about the health institutions, like contact
numbers or access to there. The results also show us that the participants don’t trust a
physician who gives advice on the web. Similarly the participants still use the traditional
ways to learn the analysis (for example: blood sample) done in the hospitals.
In general we can say that the participants of this study use the Internet; but not e-health very
efficiently. In other words we can say that the participants haven’t gained positive attitude
and behavioral changes toward e-health usage yet.
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Attitude Toward Behavior, Journal of Business Ethics (2006) 63: 237-259.
409

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

BALL, Marion J. and Jennifer Lillis, E-health: Transforming the Physician/Patient
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410

�</text>
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                <text>The Usage Of E-Health In The Sustainability Of Attitude And Behavioral Changes: An  Example On The Health Management Students</text>
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            <name>Author</name>
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                <text>Aygen, Oksay</text>
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                <text>The aim of this study is to find out the effects of e-health on the undergraduate students. This  study also tries to examine the results of attitude and behavioral changes of the participants.  A questionnaire was done on the first and second grade students as well as some MBA  students of Health Management Department of Suleyman Demirel University, Faculty of  Economics and Administrative Sciences. The answers given to the questionnaire was tested  by using the appropriate statistical tests in SPSS 16.0 program. According to the results the  participants perception of the concept ‘health communication’ is not definite. The results also  show that the participants use Internet but not very efficiently.  Keywords: e-health, sustainability in health, health behavior, behavior change, health system.</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

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Sarı A. (2010) Döviz Kuru Oynakliğinin Ithalata Etkileri: Türkiye Örneği, İstanbul
Üniversitesi Iktisat Fakültesi Ekonometri ve İstatistik Dergisi, 11, 31–44.

Cox Regression Models with Time-Varying Covariates Applied to Survival Success of
Young Firms (*)
Aygül Anavatan, Murat Karaöz
Akdeniz University, İİBF, Department of Econometrics
07058, Kampus, Antalya, Turkey
E-mails: aygulanavatan@akdeniz.edu.tr, mkaraoz@akdeniz.edu.tr
Abstract
Cox proportional hazards model assumes that independent variables remain constant
throughout the observation period. Model can give biased results in cases which this
assumption is violated. One of the methods used modelling the hazard ratio in the cases that
the proportional hazard assumption is not met is to add a time-dependent variable showing the
interaction between the predictor variable as parametric function of time. In this study, we
investigate the factors that affect the survival time of the firms and the time dependence of
these factors using Cox regression considering time depedent independent variables.

(*) This paper is an extension to the findings of the scientific research project “The Factors Affecting
Survival and Growth Performance of Newly Established Enterprises in Business Incubators: A Survey
on the KOSGEB Business Development Centers (İŞGEM)”, 109K139, which has been funded with
grant from TÜBİTAK. We also acknowledge the administrative support to the project from KOSGEB.
49

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Keywords: Survival analysis; Cox Regression Model; Proportional Hazard Assumption; New
Firms
1.INTRODUCTION
Survival analysis deals with the probability of occurrence of a given event at a set of
particular points in a time interval (Cox and Oakes, 1984). The typical survival anaylsis may
include the reports of hazard rates, ratios and survival curves while relating a likely set of
independent variables to a specific event. In the small business and entrepreneurship
literature, survival analysis has been used to track the start-ups over the years. A survival
curve of a cohort of newly established firms reports what percentage of the cohort continue to
survive since its inception over time, indicating whether some of the firms are failed over the
years (Karaöz and Albeni, 2011). Cox proportional hazards (PH) model is the most preferred
model in order to investigate the effect of variables on survival time. The key assumption of
Cox model is that hazard rate related to different levels of the factors is constant throughout
the follow-up period (Başar, 2006). Violation of the PH assumption requires additional
measures for unbiased results of Cox Survival regression. In this paper, Cox regression has
been applied to investigate the survival of newly established firms under incubation. Violation
of PH assumption has been tested and further Cox regressions are performed considering
time-varying effects of independent variables to survival.
2.SURVIVAL ANALYSIS
In a survival analysis, it is usually referred to the time variable as survival time,
because it gives the time that an individual has “survived” over some followup period (Geiss
et al., 2009). It is also typically referred to the event as a failure, because the event of interest
usually is death, disease incidence, or some other negative individual experience (Kleinbaum
and Klein, 2005).
When survival time ( ) is defined as a random variable with cumulative distribution
function
and probability density function
, survival
function
is explained by Equation (2.1) (Yay, Çoker and Uysal, 2007);
(2.1)
Survival function
gives the probability that the random variable exceeds the
specified time (Kleinbaum and Klein, 2005). All survival functions have the characteristics
that i) they are nonincreasing; that is, they head downward as increases, ii) at time
,
; that is, at the start of the study, since no one has gotten the event yet, the
probability of surviving past time 0 is one, iii) at time
,
; that is,
theoretically, if the study period increased without limit, eventually nobody would survive, so
the survival curve must eventually fall to zero (Kleinbaum and Klein, 2005).
The hazard function
, with its complement of survival function
, is given by Equation
(2.2), where denotes a small interval of time (Kleinbaum and Klein, 2005);

(2.2)

50

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

The hazard function
gives the instantaneous potential per unit time for the event
to occur, given that the individual has survived up to time (Tabatabai et al., 2007). In
contrast to the survival function, which focuses on not failing, the hazard function focuses on
failing, that is, on the event occurring (Kleinbaum and Klein, 2005).
2.1.The Cox Proportional Hazards (PH) Model
The Cox PH model is usually written in terms of the hazard model formula shown at
equation (2.3). This model gives an expression for the hazard at time for an individual with a
given specification of a set of explanatory variables denoted by . That is, represents a
collection of predictor variables that is being modeled to predict an individual’s hazard
(Kleinbaum and Klein, 2005).
(2.3)
The Cox model formula says that the hazard at time is the product of two quantities.
The first of these,
, is called the baseline hazard function. The second quantity is the
exponential expression to the linear sum of
, where the sum is over the explanatory
variables (Kleinbaum and Klein, 2005). A hazard ratio
is defined as the hazard for one
individual divided by the hazard for a different individual. The two individuals being
compared can be distinguished by their values for the set of predictors, that is, the X’s. HR is
shown by the following formula, where
denotes the set of predictors for one individual,
and denotes the set of predictors for the other individual (Kleinbaum and Klein, 2005);

(2.4)
Once the model is fitted and the values for
and are specified, the value of the
exponential expression for the estimated HR is a constant, , which does not depend on time
(Kleinbaum and Klein, 2005);
(2.5)
Running the Cox regression, observations should be independent of each other and HR
should remains constant with time. This assumption related to hazard ratio is known as PH
assumption. If the HR is increasing over time, the estimated coefficients assuming PH is
overestimating at first and underestimating later on (Bellera et al., 2010).
2.2.Extension of the Cox Proportional Hazards Model
An important feature of this formula, which concerns the PH assumption, is that the
baseline hazard is a function of , but does not involve the ’s. The ’s in the formula are
called time-independent ’s (Kleinbaum and Klein, 2005). It is possible, nevertheless, to
consider ’s which do involve . Such ’s are called time-dependent variables. If timedependent variables are considered, the Cox model form may still be used yet in an extended
form, as the orginal model do not satify the PH assumption (Kleinbaum and Klein, 2005).
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

In the case of being time-dependent explanatory variables, Cox regression model expands to a
model which contains time-independent variables and some functions of the time the product
with these variables. Independent variables are,
, where
time-independent
variables and

time-dependent variables (Sertkaya et al., 2005). Then,

Cox regression model is,
(Sertkaya et al., 2005);

and

which denote vector of coefficients of explanatory variables
(2.6)

Where
is defined as a function of time.
or as step function (Sertkaya et al., 2005).

usually is defined in the form of ,

,

3.AN APPLICATION INTO NEW FIRM SURVIVAL UNDER INCUBATION
Although the Survival analysis extensively been used in medical research on
individuals, recently it becomes widely popular in Business Success and survival research.
Thus, rather than on individuals, in this paper, we apply Cox regression to investigate the
survival of newly established firms under incubation. There are studies applying survival
Violation of PH assumption has been tested and further Cox regressions are performed
considering time-varying effects of independent variables to survival. Our 414 observations
on firm characteristics acquired from 12 different incubators, İŞGEMs, located across Turkey.
The data includes almost all firms that currently exist İŞGEMs or the firms that resided in the
past yet left İŞGEMs by graduation or failure. The survey data consists the total of.
A business incubator can be identified as an organization which mentors the
development of newly founded firms by specialized services such as providing office space,
specialized staff, machinery, equipment, facilities and business assistance (Aernoudt, 2004).
3.1.Variables Used in the Analysis
For our analysis, factors affecting the initial success of young enterprises can be
summarized as i) Human capital characteristics of new enterprise's owner such as education
level and sector experience, ii) Firm characteristics such as scale, age and human capital, iii)
Industry characteristics such as market growth rate and entry barriers, vi) Incubation features,
v) Other external factors such as macroeconomic fluctuations, regional factors and public
policies (Hackett and Dilts, 2004). All of the data and variables used in our analysis are taken
from Karaöz and Albeni (2011) and descriptive statistics and definitions are presented at
Table 3.1.
Table 3.1: The variables used in analysis and descriptive statistics
VARIABLE

DEFINITION

Observation
s

Mean

Minimum

Maximum

414

-

0

1

EVENT OF INTEREST

exit

If the firm is closed (failed)
during or after the incubation
1, otherwise 0
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

DEPENDENT VARIABLE

incubage

The elapsed time from the
firm's entry into incubation
until it's closed (month)

404

41,52

2

158

income

If entrepreneur's income only
comes from the incubated
firm 1, otherwise 0

414

-

0

1

gender

If entrepreneur is female 1,
male 0 (If there are both male
and female partner 0)

414

-

0

1

lnentage

Entrepreneur’s age (If there
is a partnership, it is taken as
the oldest entrepreneur’s agelogarithmic scale)

367

3,64

3

4,25

enteduuni

If entrepreneur is a college
graduate 1, otherwise 0 (if
there is a partnership and one
of the partners is college
graduate 1)

414

-

0

1

entexp

Entrepreneur's prior
experience before arriving
İŞGEM (year)

414

5,83

0

40

family

If there is a role model for
entrepreneurship in
entrepreneur's family or
surrounding 1, otherwise 0

414

-

0

1

partner

The number of partners witin
the established firm

414

1,24

1

4

export

If the firm export 1,
otherwise 0

414

-

0

1

lnempini

initial firm size (logarithmic
scale)

392

1,31

0

5,70

onlyloan

If firm's founding capital is
completely loan 1, otherwise

414

-

0

1

FEATURES OF THE FIRM

CHARACTERISTICS OF THE ENTREPRENEUR

INDEPENDENT
VARIABLES

53

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

EXTERNAL FEATURES

INDUSTRIAL
PROPERTIES

INCUBATION SERVICES AND
PROPERTIES

0

networking

If entrepreneur is in
cooperation with
stakeholders within and
outside the incubator 1,
otherwise 0

414

-

0

1

innova

If entrepreneur has made
innovation 1, otherwise 0

414

-

0

1

advert

If the firm has had an
advertising 1, otherwise 0

414

-

0

1

brand

If the firm is a brand owner
1, otherwise 0

414

-

0

1

comserv

If entrepreneur has used at
least one of the common
services offered by
incubation 1, otherwise 0

414

-

0

1

whenest

If the incubated firm entered
the incubation center within
first 3 years (36 months) of
incubation center 1,
otherwise 0

414

-

0

1

incubsize

The number of incubation's
workshop

414

43,14

14

84

sector

If the firm is in the
manufacturing industry 1, in
the service sector 0

411

-

0

1

compete

Intensity of competition in
the sector (1-5 Likert scale)

410

-

1

5

prorank

(%) Share of the GDP per
capita of the province in the
Country GDP where the
incubation center is located

414

1,51

0,59

2,07

cycle

If the firm has experienced
an economic crisis 1,
otherwise 0

414

-

0

1

Source: Karaöz and Albeni (2011).
54

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

According to our data, Firm Survival Curve has been presented at Figure 3; Surivors
diminish to about 20% with 158 months.

0.00

0.25

0.50

0.75

1.00

Kaplan-Meier survival estimate

0

50

100

150

analysis time

Figure 3.1: Survival curve of firms with failures during or after incubation
3.2. Results
All Cox Regression results with and without considering time effects are presented in Table
3.2. Our PH tests indicate that further estimations are necessary using time-dependent
variables. Model 2 estimates include the variables which in Model 1 and all of the interaction
terms created by each of these variables multiplying
, which is a function of time, in
order to handle variable-time interaction. The Model 3 are obtained by using only the relevant
variables of (incubsize) and (prorank), which are found to be the time-dependent variables.

55

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Table 3.2: Estimates of the basic and with time-dependent Cox model variables
Coefficients

Variable

income gender lnentage enteduuni entexp family partner export lnempini onlyloan networking innova advert brand comserv whenest incubsize sector compete prorank cycle

1.18

-0.056

0.265

0.659 -0.084 -0.307

-1.71

0.827

0.214

-1.03

-1.47

-1.67

0.636

0.865

0.264

0.010**
*

0.892

0.732

5.16

1.14

6.45

0.253

0.745

0.422

0.924

1.75

-0.093

0.000**
*

0.826

-1.18

-0.02 -0.156

0.044** 0.042** 0.402 0.015**

0.308

0.278

0.063*

0.004***

0.006**
*

0.17

0.275

0.592 0.013** 0.002*** 0.738

-0.157

-1.16

0.46

0.416 0.013**

0.21

Model 1

0.289 -0.307

-4.63

1.07

6.47

0.274

-6.97

4.45

-2.24

-2.74

-4.22

-6.63

-0.985

-0.261

-4.39

0.342 0.205

0.844

0.576

0.847

0.215

0.333

0.74

0.522

0.685

0.217

0.813

0.015** 0.291

0.721

0.762 -0.101 -0.249

-2.39

0.951

0.196

-1.88

-1.54

-2.46

0.615

1.61

0.638

-2.25

-0.253 -0.425

0.364

0.024** 0.013** 0.518

0.001**
*

0.303

0.298 0.002***

0.004***

0.001**
*

2.92

19.4

10.5

Model 2
0.23 0.003*** 0.085*

-0.341

16.9 0.791

Model 3
0.198 0.074*

0.234 0.000*** 0.009*** 0.362

0.099* 0.002***

0.040*
*

gender lnentage enteduuni entexp family partner export lnempini onlyloan networking innova advert brand comserv whenest incubsize sector compete prorank cycle
income

Model 2
(cont.)

-0.959

-0.352

-1.48

0.139

0.055

1.23

-1.08

-1.25

-0.023

1.3

0.427

0.699

0.474

0.861

0.505 0.212

0.457

0.678

0.954

0.378

56

-1.7 -0.147

0.177

0.937

0.924

1.48

1.99

-0.415

0.418

0.582

0.161

0.718

0.059

1.03

0.030** 0.344

-0.903

-5.74

-2.5

0.17 0.001*** 0.108

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Model 3
(cont.)

*, **, and *** indicate significance at the 1, 5 and 10% levels, respectively.
Log-likelihood and prob values of Model 1, 2 and 3, respectively, are -190.632 [0.000***], -165.552 [0.000***] and -173.255 [0.000***].

57

0.058

-5

0.017**

0.001***

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Considering all the model estimates, we obtain various results regarding the variables.
The possibility of failure of the firms, whose owners only dependent on earnings coming from
its new-born firm higher than other firms. In this case it has been seen that the entrepreneurs
having income from other sources are more likely to be successful in start-up business. It is
interesting to see the result that the firms whose owners are university graduates have about
two times higher risk of failure than other firms. An increase in the number of partners in the
firm decreases the possibility of failure of firms. It is interesting to see that failure risk of
firms, whose founding capital is formed entirely by loans, are lower than whose initial capital
is partially or fully self-financed. If an entrepreneur is in collaboration with stakeholders
within and outside the incubation, survival probability of the firm becomes higher. Moreover,
it has been seen from the estimates that innovation activity of new firms increases chance of
survival. Brand ownership also increases the chance of the firm's survival. Establishing a firm
within an incubation center that is within its first 3-years increases survival probability.
Finally, firms those experience a macroeconomic crisis have nearly two times more
likelyhood of failure than others.
4.CONCLUSIONS
Cox proportional hazard model, besides others, rest on proportional hazards
assumption that independent variables do not vary with time. When PH assumption is violated
and Cox regression estimates become biased. Then, Cox survival estimates can be corrected
by including the time-varying effects to the analysis. Identification and calculation of timedependent effects give the oppotunity to obtain some otherwise unseen valuable special time
pattern information. In our analysis, initially, the Cox regression was performed by
considering that all explanatory variables are constant over time. Then, extended Cox
regression models were estimated by including the time-dependent explanatory variables in
the model. Our extended model results have shown that it become usefull to estimate the Cox
Proportional Hazards regression by also including the time-varying explanatory variables to
the analysis. Both the time-independent and time-dependent variables create significant
effects on the probability of survival of the İŞGEM firms.
REFERENCES
Aernoudt, R. (2004). Incubators: Tool for Entrepreneurship?. Small Business Economics, 23,
127-35.
Başar, E. (2006). Orantılı Olmayan Hazard Üzerine Bir Çalışma. Paper presented at 5.
İstatistik Günleri Sempozyumu, Antalya,111-16.
Bellera, C.A., MacGrogan, G., Debled, M., De Lara, C.T., Brouste, V., &amp; MathoulinPélissier, S. (2010). Variables with time-varying effects and the Cox model: Some statistical
concepts illustrated with a prognostic factor study in breast cancer. BMC Medical Research
Methodology, 10-20.
Cox, D.R., &amp; Oakes, D. (1984). Anaylsis of Survival Data. London: Chapman and Hall.
Geiss, K., Meyer, M., Radespiel-Tröger, M., &amp; Gefeller, O. (2009). SURVSOFT—Software
for nonparametric survival analysis. Computer Methods and Programs in Biomedicine,
Elsevier Ireland LTD., 96, 63–71.
58

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Hackett, M., &amp; Dilts, D.M. (2004). A Systematic Review of Business Incubation Research.
Journal of Technology Transfer, 29, 55-82.
Kleinbaum, D.G., &amp; Klein, M. (2005). Survival Analysis: A Self-Learning Text (2nd Ed.).
New York: Springer.
Sertkaya, D., Ata, N., &amp; Sözer, M. T. (2005). Yaşam çözümlemesinde zamana bağlı açıklayıcı
değişkenli Cox regresyon modeli. Ankara Üniversitesi Tıp Fakültesi Mecmuası, 58, 153-58.
Tabatabai, M. A., Bursac, Z., Williams, D. K., &amp; Singh, K. P. (2007). Hypertabastic survival
model. Theoretical Biology and Medical Modelling, 4-40.
Karaöz, M., &amp; Albeni, M., (2011), İş Kuluçkalarında Yeni Kurulan Girişimlerin Hayatta
Kalma ve Büyüme Performansını Etkileyen Faktörler: KOSGEB İş Geliştirme Merkezleri
(İŞGEM) Üzerine Bir Araştırma. The Scientific and Technological Research Council of
Turkey (TÜBİTAK). (Issue Brief No. 109K139).
Yay, M., Çoker, E., &amp; Uysal, Ö. (2007). Yaşam Analizinde Cox Regresyon Modeli and
Artıkların İncelenmesi, Cerrahpaşa Tıp Dergisi, 38, 139-45.

Seeking Debt Crisis And Solution In Europe
Ali Yavuz,Ceyda Şataf,Dilek Göze Kaya, Serap Gül
S.D.Ü. İ.İ.B.F. Maliye Bölümü,
E-mails: aliyavuz@sdu.edu.tr, ceydasataf@sdu.edu.tr, dilekgozkaya@hotmail.com
gul_serap19@hotmail.com
Abstract
In this study, the European Union (EU) countries, the countiries of their lives go down to the
root causes of the debt crisis by making suggestions in search of solutions to the debt crisis
will be examined. Emerging in the U.S.A. mortgage market crisis in 2007, quickly spread to
the real sector from the financial sector in the years 2007-2009. And so the U.S.A. economy,
increased unemployment and stagnation in 2008 and 2009 a major problem encountered. The
economic crisis in the U.S. especially in EU countries, especially spread through strong
financial relationships. Cause of the crisi spreading, the U.S.A., its foreign trade with third
countries EU’s countries and possble recession and real income loses, narrowed. Foreign
demand for exports of goods and services of third countries. Another reason for the crisi, said
that the U.S.A. debt-based consumer spending growth can’t be prevented. E.U.’s main causes
of debt crisi, the misappropriation of resources, competition loss, and therefore can’t be seen
in this negative economic revival began participation in the Euro. Falling ineterest rates in
euro countries participating in the pre-crisis period, the total demand by facilitating increased
borrowing opportunities. GIIPS( Greece, Ireland, Italy, Portugal, Spain) countries in paralel
with an increase in demand has increased in both public and private debts. Increased demand
led to an increase in the prices of goods and services increase in investment. In the last part of
study, the debt crisis of the EU countries should take measures to release the elimanation of
59

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                <text>Cox Regression Models with Time-Varying Covariates Applied to Survival Success of  Young Firms (*)</text>
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                <text>Cox proportional hazards model assumes that independent variables remain constant  throughout the observation period. Model can give biased results in cases which this  assumption is violated. One of the methods used modelling the hazard ratio in the cases that  the proportional hazard assumption is not met is to add a time-dependent variable showing the  interaction between the predictor variable as parametric function of time. In this study, we  investigate the factors that affect the survival time of the firms and the time dependence of  these factors using Cox regression considering time depedent independent variables.</text>
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