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                    <text>Table Grapes Transport Simulation Study by Bardas (Vitis vinifera L.)
Cultivar Grown in Karaman Turkey
Fikret DEMĐR
Selcuk UniversityFaculty of Agriculture
Department of Agricultural Machinery 42003 Konya, Turkey
fdemir@selcuk.edu.tr
Zeki KARA
Selcuk University Faculty of Agriculture
Department of Horticulture
42003 Konya, Turkey
zkara@selcuk.edu.tr
Kazım CARMAN
Selcuk University Faculty of Agriculture
Department of Agricultural Machinery 42003 Konya, Turkey
kcarman@selcuk.edu.tr

Abstract: Table grapes is a second industry in viticulture in Turkey and have been grown in
primarily Mediterranean region a popular fruit for local consumption and export to many
European and Asian countries as a fresh dessert and for this reason this product has to be
transport so long distances for marketing. This simulated export transit experiment with
Bardas (Vitis vinifera L.) local table grape cultivar grown in Karaman province was conducted
in lab condition Selcuk University Faculty of Agriculture. To produce main knowledge, and
to improve the application of resources used to produce, pack, transport, and merchandise
Turkish table grapes by increasing efficiency, controlling cost and managing risk throughout
the supply chain. In order to develop optimized methods of reducing table grape damage
transport stimulatory as vibration stimulator have been used to measure the shocks and
vibrations in market bins during 30 min and 60 min transport stimulation. During road
transport simulation at 25°C in wooden boxes damages of clusters and berries were measured
by laboratory trials to stimulate the events in a controlled and repeatable manner. 3 bins full
of fruits were placed onto a vibration table, and during the stimulation three-load profile
sensor were placed inside each of bins. While the number of separated berry was determined
as a 31.33 in 30 min, the number was 83.10 in vibration period of 60 min. Starting with the
beginning the numbers separate resistance of berry, resistance to cracking of berry and
elasticity modulus is continuously lowering in 30-60 min vibration periods. The berry
separate resistance from cluster were changing between 4.46 N to 1.73 N, and berry cracking
resistance were measured between 31.59 N to 26.01 N, and berry elasticity modulus were
obtained as between 1423 kPa to 1076.7 kPa. Natural frequency of berry was calculated as on
109.332 Hz that was obtained in of 1.42 m box height.

Introduction
Table grapes (Vitis vinifera L.) are physiologically speaking, a relatively durable fruit. They have a low
respiration rate and can therefore live a long time after harvest. However, they are extremely susceptible to
decay, can be injured easily, and lose water readily. If any of these deterioration factors is not well controlled,
the potentially long post harvest life will be drastically shortened (Nelson, 1985; Bollen et al., 1994; Burton et
al., 1989; Campbell et al., 1986; Maindonald &amp; Finsh, 1986; Hinsch et al., 1993).
Many of horticultural products are in consumer hands within 2 day of harvest in another part of the
world. Transportation and packaging is the key to this success. Under the best circumstances the quality of table
grapes can only be maintained, not improved, during transportation. During transportation, storage and
marketing table grapes may be exposed to rough handling during loading and unloading, compression from the
overhead weight of other containers of products, impact and vibration during transportation.
Grapes are not ripening after harvest. Transits and storage life is 1-6 months. Packaging is by
fiberboard, polystyrene foam, or wood lugs, or perforated film liners and 100 – 110 N some with sulfur dioxide
456

�pads. Transportation is by highways, and piggyback trailers, van containers or break-bulk vessels. Loading is
unitized on pallets with corner. Proper packaging of table grapes is essential to maintaining product quality
during transportation and marketing (Olorunda &amp; Tung, 1985; McGregor, 1989; Kaynaş et al., 1989).
In Turkey, current produce container standardization is not, but many of markets prefer to outside
dimension of a 420 x 310 x 150 mm wooden containers that have 60-80 N grapes for table grape transportation.
Pang et al. (1995) in their investigation observed solve natural handling conditions for transportation
and used his observation to replicate the same situation in laboratory simulations.
Mechanical damage on agricultural products changes depending on physical and biological structure of
the products and type of the force applied. First damage on the products appears during harvest and
transportation. This damage usually occurs as a result of colliding of products with the others or vibrations of the
transportation system, and causes severe deformation, such as breakage, separation and bruise. According to the
estimates, approximately 25% of the agricultural products harvested in Turkey is spoilt and wasted away
between the producer and consumer (Dokuzoğuz, 1997).
Transportation of vegetables and fruits should be rearranged to avoid any loss in quality and to provide
more economical and productive conditions. Transportation type is chosen depending on the biological decay
rate, rigidness and maturity of the product, on the carrier type, distance and purpose of the product usage. Other
factors influencing this are physical characteristics, basic dimensions (geometrical measures, weight, density,
pouring and shaking density), static- dynamic press resistance elasticity, vibration, behavior and also biological
characteristics and product’s content, carriage style and type of container (Moser 1984). Static-dynamic press
resistance and form changing characteristics of the product determine the allowable pouring and filling amount,
fall height and vibration limit during the transportation of the product.
Allowable static resistance (cell blowout biological resistance limit) is calculated by force deformation
diagrams and dynamic resistance by crashing experiments for applications, allowable press resistance limit is the
point of biological crashing. But some safety distance should be allocated. The resonance frequency, fR of the
product is closely related to the speed and shock absorber of the transportation vehicle and to the filling depth of
the container. In order to prevent the crushing, resonance frequency should not be the same with vehicles
generated from outside factory frequency. Resonance frequency is inversely proportional to the pouring dept and
the densityρ, λ of the container frequency acceleration affecting fruits carried in low depth containers is doubled
especially in upper and middle levels when compared to deep containers (Moser 1984; Pang et al., 1995).
The purpose of this study is to investigate factors on concerning the damage in table grape during
transportation period in a simulated transportation environment in terms of separation resistance of berry from
pedicel, number of separated berry, resistance to cracking of berry and elasticity modulus.

Materials and Methods
Materials
In this study, table grape cv Bardas (Vitis vinifera L.) were used since it is an important product in
Konya and Karaman, Province of Turkey. The description of cv. Bardas is as follow. This is a local variety. It
accounts for about 20 percent of the table grape production in Göksu Valley in Turkey. Sex of flower is
hermaphrodite. The cluster is large in size and compact in density. The very large and uniform berries are
somewhat ovoid and elongated in shape dark red to reddish black in color with advanced maturity, particular
flavor is none, and are seeded. Berry must yield is very high sugar and total acid content of must is medium.
Harvest season extends from mid September through October. Because the berry is thick skinned and crisp, and
stem attachment is hard clusters resist damage well during post harvest handling. The cluster of this variety is
shown Fig 1.

457

�Fig 1. Table grape cv. Bardas (Vitis vinifera L.)

Methods
Chemical Properties
The titration acidity of the fruits was analysis established with titration method by using 2,6 dichlorophenal indophenol solution. Soluble solids of the fruits were determined by Atago hand refractometer
(Kara, 1992; Anonymous 1997). The initial moisture content of the berry was determined by using standard
method (USDA, 1970).
Technological Properties
To determine the sizes and projected areas of berry, 10% samples were randomly taken and their linear
dimensions were measured, i.e. length (L), width (W) and projected area (P). Projected area of a fruit was
determined using a digital camera (Kodak DC 240) and Sigma Scan Pro5 program (Trooien &amp; Heermann, 1992).
Also, linear dimensions were established by using a digital vernier caliper with sensitivity of 0.01 mm. Several
investigators (Deshpande et al., 1993; Gubta &amp; Das, 1997; Demir &amp; Özcan, 2001) have measured these
dimensions for other grains and seeds in a similar manner to determine size and shape properties.
The geometric mean diameter Dg of the berry was calculated by using the following formula (Sreenarayanan et
al., 1985):
(W=T)
(1)
Dg = (LW2)1/3
The berry volume V was calculated by using the following formula and its berry or true density Pk, Pycnometer
and toluene displacement method. Toluene (C7H8) was used rather than water because it is absorbed by fruits to
a lesser extent. Also, its surface tension is low, so that it fills even shallow dips in a berry and its dissolution
power is low (Sahay &amp; Singh, 1994).
(2)
V=πW2L2/6(2L-W)
According to Mohsenin (1986); Sreenarayanan et al., 1985), the degree of sphericity (Ø) can be expressed as
follows;
(3)
Ø = (LW2)1/3 / L = Dg/L
(4)
The surface area S of the fruit was calculated by using the following formula (McCabe et al., 1986);
(5)
S = (πWL2) / (2L-W) = π Dg2
The containers used in this study are of 420 x 310 x 150 mm size. These have four pieces horizontal
wooden bar and bottom four pieces leveled wooden bar and four pieces flat wooden vertically, fixed nails. This
is shown Fig. 2. Paperbound cartons were used as cushion materials, in order to reduce the damage on the bunch
in transit. Paperbound cartons were placed at the bottom and side at the containers. The grape bunches were
lined up in one layer in containers. Bunches contact with one another. According to the observation, 60-80 N
bunches were placed in the containers.

Fig. 2. Experiment device for simulates table grapes transport in laboratory
During the transportation in truck and trailer the frequency is between 7.5 and 11.5 Hz and the
acceleration g’ value is between 0.8 and 13 ms-2. It’s amplitude A is 0.6 and 6 mm (Aydin, 1993; Witney 1996).
458

�An important application of dynamic test is the determination of the vibration properties of table grape cultivars,
in order to assess, their sensitivity to damage during transit. The table grape cultivars are generally transporting
in containers on board motor vehicle. fR during transport the resonance frequency of the road or vehicle, then the
acceleration of the grape berries will increase considerably owing to resonance and it will be damaged by impact.
The natural frequency fn of table grapes in a container may be calculated approximately from the equation:
(6)
fn = [1/4λ]√Eg/ρ
Computation using Eqn. (6) were found to correspond well with those of table grapes in bins vibration
at resonance on a laboratory condition Fig. 3. Observation of berries were measured at average of 100 berries
taken from the 1/3 medium scope of bunches.

Fig. 3. Test equipment used in compression test
The vibration simulation container used in this study, like the vibration container was projected
California University (Öğüt et.al., 1999; O’Birien &amp; Guillou, 1969). On this box, vibration was formed at every
cycle using unbalanced weights. Changing the number of weights enables setting of maximum acceleration and
expansion plate caused by natural frequency fn of the spiral system and the container. The vibration container is
activated by a 0,55 kW electrical engine with a 2800 min-1 rotation and cos ϕ=0,827 and rotation of the box is set
by an electronic vibrator. In treatments, the resonance frequency was adjusted as or 11.5 Hz. This frequency was
obtained in 690 min-1 of simulation platform. The movement flow diagram in the vibration simulation container
is given in Fig 2. Motor’s rotation is measured as min-1 using an electrical dynamo coupled directly with motor’
once and working linearly and measuring instrument’s monitor. Damage on the product was determined after 3060 minutes of vibrating the container at the set frequency.
The vibration box had worked for 30 min and 60 min, which are equal to transportation of track with
540 km and 1080 km respectively in Turkish highways. The value of vibration were measured and recorded on
magnetic tape. In order to determine the elasticity of berry, a plate test was used (Zohadie 1982). The test
equipment is shown in Fig. 4.

Fig. 4. Deformation of berry during compression
The calculation of elasticity modulus is based on the following assumptions: 1) The berries are long
elliptic in shaped very small expansion in the longitudinal plane occurred with compression in vertical plane,
and 2) Each side of the berry in contact with the flat plates has and equal deflection (O’Brien et al., 1965).
According to following expression, the modulus of elasticity was calculated following equation:
(7)
E= F/πδ2
In order to determine damage during transport, the modulus of elasticity before the berries (which were
harvested by hand) was placed on the vibration container and 30 and 60 min after than the modulus of elasticity
that is subject to vibration was determined.

459

�In this study, damage is described as a difference of elasticity modulus, separation resistance, number of
separated berry and resistance to cracking before and after the test. This study was carried out tree replication.
MINITAB was used for statistical analysis.
Vibration of the simulation container was measured using a HBM, SMM-31 type instrument which can
measure vibration’s expansion, speed and acceleration at different levels.

Results and Discussion
Physical and chemical characteristics of grape fruits are given in Table 1. Among chemical
characteristics; titration acidity content was 5.1 g/l and with 17.4 ⁰Brix soluble solids, and 83 ml/100 g fruit juice.
Berry volume
Berry weight
Berry length
Berry width
Number of seeds per berry
Cluster weight
Number of berry per cluster
Soluble solids
Titration acidity
Berry juice
Project area
Surface area
Sphericity
Geometric mean diameter
Moisture content
Natural frequency
Elasticity modulus
Density of berry in the container
Separating resistance of berry from pedicel
Berry density
Resistance to cracking of berry

5476.05
11.17 ± 2.36
34.59 ± 1.81
20.61 ± 1.28
1.92 ± 0.79
682.65 ± 33.19
62.06 ± 4.70
17.4
5.1
83
763.3
1594.19
0.708
24.49
82.48
109.322
1347
3072.196
3.846±0.095
2.137
31.743±0.479

mm3
g
mm
mm
number
g
number
⁰Brix
g/l
ml / 100 g
mm2
mm2
mm
%
Hz
kPa
N/m3
N
g/cm3
N

Table 1. Some characteristics of berry and cluster
Average berry moisture content was 82.48% (w.b.), berry length was 34.59 mm, berry width was 20.61
mm, berry weight was 11.79 g, berry volume was 5476.05 mm3, and berry sphericity was 0.708, the geometric
mean diameter was 24.49 mm, the project area 763.3 mm2 and the surface area is 1594.19 mm2 found ( by using
the method of Moser, 1984).
It’s found that there was a decrease in the separate resistance of the grape in the beginning. First related
to 30 min vibration period it was 44.40% and there was a decrease of 61.21% in the vibration period of 60 min.
This decrease is found significant (p&lt;0.01) from statistical respect and the lowest separate resistance was found
at 60 min. period with 1.73 N average (Table 2). The increase in the period vibration lowered the separate
resistance. Moser (1984) reports similar results.
Containers position
Top
Middle
Bottom
Average (LSD: 0.58)

Beginning
(N)
4.33
4.46
4.60
4.46 a

30 min
(N)
2.26
2.60
2.60
2.48 b

60 min
(N)
1.33
1.61
2.24
1.73 c

Table 2. Separating resistance of berry from pedicel
Means followed by the same letter are not significantly different at the 1% level of significance

460

�The container position and the vibration period is found statistically significant (p&lt;0.01) on the number
of separated berry (Table 3). The number of the separated berry was determined 82.83 at average in the top
container and it decreased with 31.6% in the middle container. The number again reduced with 61.17% in the
bottom container. These numbers were found at 30-60 min. vibration period. This results from the effect of high
acceleration in the top container. Turczyn et al., (1986) found similar conclusions. The number of the separated
berry had an increase of 265.2% in 30 min. vibration period to the period of 60 min.
Containers
position
Top
Middle
Bottom
Average

30 min
(Number)
51.00
24.33
18.66
31.33 a

60 min
(Number)
114.66
89.00
45.66
83.10 b

Average
(LSD: 4.70)
82.83 a
56.66 b
32.16 c

Table 3. Number of separated berry
Means followed by the same letter are not significantly different at the 1% level of significance
The numbers of the cracking resistance of the berry related to the position of the container and the
vibration period is given in Table 4. The effect of the containers position and vibration period on the cracking
resistance was found statistically significant (p&lt;0.01). While the highest cracking resistance number was found
in the bottom container with 28.81 N, the numbers were 27.67 N and 28.0 N in the middle and top containers.
Statistically there was no difference between the middle and top container. While the cracking resistance number
was 31.59 N averages in the beginning, the numbers were 26.01 N and 26.87 N at 30-60 min vibration periods.
There has been no difference between the two vibrations periods found at statistical respect.
Containers position
Top
Middle
Bottom
Average (LSD: 0.94)

Beginning
(N)
31.74
31.59
31.47
31.59 a

30 min
(N)
24.79
24.72
28.53
26.01 b

60 min
(N)
27.48
26.70
26.43
26.87 b

Average
(LSD=0.94)
28.00 b
27.67 b
28.81 a

Table 4. Resistance to cracking of berry
Means followed by the same letter are not significantly different at the 1% level of significance.
Although the effect of elasticity modulus on the container position was not significant, the vibration
period’s effect was found significant (p&lt;0.01). While the elasticity modulus was 1423 kPa in the beginning the
number was 1203,7 kPa and 1076,7 kPa at 30-60 min vibration period, but there has no statistical difference
observed between the two vibration periods (Table 5). (O’Brien et al., 1965; Fridley et al., 1968; Zohadie, 1982)
These investigators found similar results.
Box acceleration at top, middle and bottom were 1.90 ms-2, 0.90 ms-2 and 0.7 ms-2 respectively.
Natural frequency of berry was calculated as on 109.332 Hz. This frequency was obtained in box height
of 1.42 m. Aydin (1993) reported that natural frequency for the peach is varied between 7-110 Hz according to
the box height.
Containers position
Top
Middle

Beginning
(kPa)
1464
1381

30 min
(kPa)
1228
1140

60 min
(kPa)
1098
1020

Bottom
Average ( LSD: 153.7)

1424
1423 a

1245
1203.7 b

1112
1076.7 b

Table 5. Elasticity modulus
Means followed by the same letter are not significantly different at the %1 level of significance

461

�Conclusions
1. Berry separating resistance from pedicel, number of separated berry, and berry resistance to cracking, and
elasticity modulus were affected significantly by the vibration time. The affection was less at the 30 min
vibration than 60 min vibration. The number of separated berry and resistance of the cracking of berry are
affected significantly by the position of the container.
2. The separate resistance which is 4.46 N in the beginning becomes 2.48 N in the periods of 30 min and 1.73 N
averages in the periods of 60 min.
3. The number of separated berry is 31.33 in the period of 30 min average and increased to 83.10 in the period
of 60 min. While this is 82.83 in the top box the number is 32.16 in the bottom box.
4. Resistance to cracking is determined 28.81 N in the bottom box as the highest number. The resistance of
cracking is 31.59 N in the beginning, and changes to 26.01 N and 26.87 N in the period of 30 and 60 min
vibration time respectively.
5. While the elasticity modulus is 1423 kPa in the beginning these are 1203.7 kPa and 1076.7 kPa in 30 min and
60 min periods respectively.
6. Natural frequency of berry was calculated as on 109.332 Hz. This frequency was obtained in box height of
1.42 m.
7. Table grape variety Bardas (Vitis vinifera L.) grown in Karaman Turkey have been found resistance to
transportation.

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                <text>DEMİR, Fikret
KARA, Zeki
CARMAN, Kazım</text>
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                <text>Table grapes is a second industry in viticulture in Turkey and have been grown in  primarily Mediterranean region a popular fruit for local consumption and export to many  European and Asian countries as a fresh dessert and for this reason this product has to be  transport so long distances for marketing. This simulated export transit experiment with  Bardas (Vitis vinifera L.) local table grape cultivar grown in Karaman province was conducted  in lab condition Selcuk University Faculty of Agriculture. To produce main knowledge, and  to improve the application of resources used to produce, pack, transport, and merchandise  Turkish table grapes by increasing efficiency, controlling cost and managing risk throughout  the supply chain. In order to develop optimized methods of reducing table grape damage  transport stimulatory as vibration stimulator have been used to measure the shocks and  vibrations in market bins during 30 min and 60 min transport stimulation. During road  transport simulation at 25°C in wooden boxes damages of clusters and berries were measured  by laboratory trials to stimulate the events in a controlled and repeatable manner. 3 bins full  of fruits were placed onto a vibration table, and during the stimulation three-load profile  sensor were placed inside each of bins. While the number of separated berry was determined  as a 31.33 in 30 min, the number was 83.10 in vibration period of 60 min. Starting with the  beginning the numbers separate resistance of berry, resistance to cracking of berry and  elasticity modulus is continuously lowering in 30-60 min vibration periods. The berry  separate resistance from cluster were changing between 4.46 N to 1.73 N, and berry cracking  resistance were measured between 31.59 N to 26.01 N, and berry elasticity modulus were  obtained as between 1423 kPa to 1076.7 kPa. Natural frequency of berry was calculated as on  109.332 Hz that was obtained in of 1.42 m box height.</text>
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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Property Right in the 1982 Constitution As a Social Right
Fatih DEMĠRCĠ
Dumlupınar University,
Kütahya, Turkey
fdemirci@hotmail.com

Abstract : Property right is often referred to for defining political regimes. Therefore to study
property right in the 1982 Constitution is crucial for analyzing the Turkish political structure.
Property right in the 1982 Constitution stands within the Article 35. This article consists of three
clauses. The first two clauses may often exist in any democratic constitution but the third clause
has a very interesting and peculiar feature. Because the first two clauses say that everyone has
right to own and inherit property and this right may be limited by law only in view of public
interest. But the third clause says that exercise of the right to own property shall not be in
contravention of the public interest.
This third clause is objectionable in two reasons. First; this clause ordains the citizens an
impossible thing. Because it is impossible for people to use their properties always in favor of
public interest. If this article said that property right could not be used against the public interest,
it could be acceptable and reasonable. But this clause as written in the constitution puts an
impossible obligation but the law cannot order any obligation on the citizens.
Secondly; the limit of property in liberal democracies may be in line with the public interest and
this limit can be defined only by law. Using the property right in favor of public interest is
merely a matter of people‘s choice. However this article literally obliges people to use their
property in favor of public interest. This is not appropriate for liberal democracies.

Introduction
Property has always been a critical issue in political philosophy. Every political philosopher has something
to say about it. However, the theme of property has become particularly central in modern political thought: at times
the whole science of politics has seemed to be subordinate to, or even identical with, the science of economics.
While Rousseau defines property as the source of all kinds of evil, Aristotle and John Locke place the right of
property in the basis of state. Especially in his Two Treatises of Government, John Locke attaches to property as the
motive for establishing and maintaining political society (Zvesper, 1996, p.91). To Locke, property is a natural right
for an individual and each individual has a natural right of property before state. For Locke, what makes a
government legitimate is its preservation of property. To him, the aim of government is preservation of property
(Tully, 1993, p.120). Thus Locke favors any form of government that supports an individual‘s natural right of
property, its acquisition and its preservation in the hands of its rightful owner (Tannenbaum-Schultz, 2004, p. 184).
Actually, the right of property is listed among the personal rights and the basic rights of the individual in the
constitutions of the American States where they declared their independency, in ―the American Declaration of
Independency‖ and the French Revolution‘s ―The Declaration of the Rights of Men and of the Citizen‖ (Soysal,
1987, p. 229). For example, in 1789 the Declaration of the Rights of Man and of the Citizen, which has been
announced after the French Revolution it is declared that “since property is an inviolable and sacred right, no one
shall be deprived thereof except where public necessity, legally determined, shall clearly demand it, and then only on
condition
that
the
owner
shall
have
been
previously
and
equitably
indemnified.”(
http://www.hrcr.org/docs/frenchdec.html). Thus property is still one of the most prominent issues in politics.
Property right so important in some certain ways that some suggest that what reveals the difference between
Eastern and Western political regimes is property3. In this context, many constitutions in the West oblige the state to
protect property.

3

For details about this issue see ―Feodalite ve Osmanlı Toplumu‖ by Murat Özyüksel, Derin Yayınları, 2007, Ġstanbul.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Property Right in Turkey
Private possession of land has been limited, as feudalism as a political regime flourished after the fall of the
Roman Empire through right of property, in order to prevent the advance of such a fragmented government structure
like feudalism. The most detailed regulation concerning property is the Noble Edict of the Rose Chamber. This edict
reads:
“If there is an absence of security for property, everyone remains indifferent to his
state and his community; no one interests himself in the prosperity of the country,
absorbed as he is in his own troubles and worries. If, on the contrary, the individual feels
complete security about his possessions then he will become preoccupied with his own
affairs, which he will seek to expand, and his devotion and love for his state and his
community will steadily grow and will undoubtedly spur him into becoming a useful
member of society”(http://www.yursil.com/blog/2010/01/hatt-i-sherif-of-gulhane-noble-edict-of-the-rosechamber-beginning-of-tanzimat-reforms)
But the given importance to property that took place in this edict is for protection of the state exclusively. In
the Republican Era, Ziya Gökalp‘s solidarist thoughts prevail as against the liberal economic and political thoughts.
While 1924 Constitution declares that property is an inviolable right, 1961 and 1982 Constitutions declare that
property is used for only public benefit.

Property Right in the Constitution of 1982
The text of the article concerning property right in 1982 Constitution is exactly the same with the one
included in 1961 Constitution (Soysal, 1987, p. 229). However, property right was listed under the heading ―Social
and Economic Rights and Liabilities‖ in the 1961 Constitution while it takes place in the ―Rights of the Individual‖
section of the 1982 Constitution (Tanör-YüzbaĢıoğlu, 2009, p.174). Moreover, considering the content of the article,
it is clear that property right was regulated as a ―social‖ right rather than an ―individual‖ right in the constitution. In
the Constitution, the right of property was regulated in the Article 35 (the Article 36 of 1961 Constitution) as
follows:
“Everyone has the right to own and inherit property.
These rights may be limited by law only in view of public interest.
The exercise of the right to own property shall not be in contravention of the public interest”
Although property right was placed in the section of ―Rights and Duties of the Individual‖ instead of ―Social And
Economic Rights And Duties‖ section in the 1982 Constitution, it was stated that this right can be limited by law
for the sake of public interest and its exercise cannot be in contravention with public interest. Clearly, a big and
fundamental change took place in terms of property; this sacred, inviolable right was limited for the sake of the
society for the first time (Polatcan, 1989, p. 140). However, inclusion of property right in the section of personal
rights has got two results in terms of application: the Article 91 that gives the authority to issue Decree Law (KHK)
states that during normal periods, the subjects concerning personal rights cannot be regulated with KHKs and such
regulations can only be performed during the period of martial law and state of emergency. But it is always possible
to issue KHK about social and economic rights and to regulate the subjects concerning these rights with KHKs
(Bulut, 2006, p. 23). On one hand this replacement can be considered as a kind of weakening in the social state
principle, on the other hand, maybe as a more appropriate comment, because of being listed with individual‘s rights
the property right has been strengthened and protected better by the 1982 Constitution. Nonetheless, it would be
beneficial to consider as a whole the way the property right was regulated in the constitution.
Although the first two clauses of the Article 35 in the Constitution include some provisions, which are
normally included in any other modern constitution, the last clause of the Article is one of the interesting regulations
concerning property right. The interesting part of the last clause of the article concerning property right in the
Constitution is that its projection saying property rights shall not be exercised against ―the public interest‖. This
provision is interesting because the condition not to use property against public interest is independent from the
provision of limiting property right merely for the sake of public interest and only by law. This provision reveals the
content in which property right is recognized; that is, this right is recognized within limitation by ―public interest‖
from the beginning. There is also a disadvantage of this provision because it leaves room for arbitrary intervention in
exercise of this right, even if it is not a legitimate limitation based on law, by claiming that the property was not used
in line with public interest, thus giving the courts the right to decide on the way property owners should use their
property right (Erdoğan, 2006, p. 77).

51

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Justifications in the Constitutions of 1961 and 1982 of the Article text are vitally important for a better understanding
of the subject. In the article justification in 1961 Constitution, especially about the last clause of the article, it was
stated that property right has the quality of unlimited freedom that can be exercised however the individual wants to,
inconsiderate of public interests with the same interpretation of this right in Roman Law and that even in our old law,
property had also a social characteristic and inclusion of this right in the constitution would guide the legislator and
would have a disciplinary influence on the individuals (Özer, 1996, p. 175). In the justification of 1982 Constitution,
it is stated that together with the guaranty provided to property right, the economic systems that ignore private
property would be unable to remove private property (Özer, 1996, p.170). The 1982 Constitution considers property
right basically as private property. This understanding of property includes free enterprise, private property of
production tools. Therefore, choice of a fascist or communist system or a system based on religious principles is not
possible because of the provisions of the Constitution concerning property as well as its other provisions (Polatcan,
1989, p.140). Moreover, although the right of property is a basic right, its exercise was determined not to be against
the public interest. Public interest may necessitate total abolition of property right in some cases. Therefore,
expropriation and nationalization were regulated within the Constitution (Polatcan, 1987, p.139). Because of its
definition this regulation is based on the privilege of private enterprise and private property, as stated by Taha Parla
in his study on Ziya Gökalp‘s model of state, and it has some features of capitalism while it also reminds
corporatism, which bears ―anti-Marxist‖ and ―anti-Socialist‖ characteristics (Parla, 1999, p.90).
As observed above, in essence the 1982 constitution considers property right within the framework of
―property right as a social function‖ idea. Property right is not an absolute right in the constitution as the owner of
something is adorned by a set of responsibilities, yet a relative right that can be limited on social grounds (Bulut,
2006, p.25). The judgment of the Supreme Court concerning property right is in a similar vein:
“Property right has already lost its former connotation as a right which the individual might use at his will
and a boundless liberty, the understanding of property has developed labeling it as a social right and the principle
that this right also could be limited for public interests as many others was adopted.
Property right, which initially meant the absolute sovereignty of an individual over a thing and was deemed
sacred lost these implications and this absolute and subjective right has transformed into a conditional situation and
bounded by its social functions (Akad-Dinçkol, 2007, p.230).
In another judgment the Supreme Court accounts for the fact that property right could not be used against
public interest as follows:
“It is quoted that property right cannot be used against public interests. In our constitution property right is
not recognized as an absolute right and it is foreseen that public interests would be privileged in case individual
interests conflict with public interests and the social function of property is identified with using in line with public
interests. The constitution does not permit using property right against this (Akad-Dinçkol, 2007, p.232).
The motivation behind this and similar regulations concerning property right has traces of the public
property understanding before the Republic and the solidarist corporatist state model in the Republican period
developed by Ziya Gökalp. Yet, according to Parla, the corporatist thought of Gökalp might be considered as a
model of ―corporatist capitalism‖ which deeply influenced the Turkish thought and provided the governing classes
(including those who prepared the constitution) with a paradigmatic worldview. Unlike the individual-based liberal
social model, corporatism considers individualism and individual property as a force that atomizes and disintegrates
society. Hence it is asserted that this has an annihilating effect on the balance of social organism and its possibility to
survive. So to speak, as he believes the liberal society has anarchist tendencies, the self-interested efforts of
individuals, their private properties and enterprises are considered legal in this model as far as they serve social
solidarity and unless they damage the public interest which is a supreme value per se (Parla, 1999, p.93).
In his study which examines modern constitutions Wheare states that constitutions are primarily prepared in
two types. He notes that, the first approach considers the constitution as a legal document in principle and thus only
includes laws in praxis and excludes others while the second approach considers constitutions as a kind of manifesto,
an acknowledgement of belief, an expression of ideals (Wheare, 1984, p.43). While denoting which one to choose he
says that it would be wise to exclude anything that would not be considered as a law from the constitution (Wheare,
1984, p. 67) and the ideal constitution would include the least number of laws (Wheare, 1984, p. 45).
In this context, the article of the constitution on property is more a petition that clarifies the desired ends
than a law expressing the recognition and exercise of rights. However, according to Wheare, a constitution which is
considered as a political manifesto or creed by some should limit not ideas, desires or plans but itself as far as
possible with laws (Wheare, 1984, p. 62-67).
The judgment expressed in the third clause of the property rights article of the 1982 constitution which is the
expression of the yearning for property in a solidarist and corporatist society more than a law clause, especially the
provision ―property rights cannot be used against public interests‖, is problematic in its insistence as a law.

52

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

In the first place, laws do not demand impossible things. That is to say, laws include applicable
commandments. However, the provision ―property rights cannot be against public interests‖, is not applicable. An
applicable provision would exist if the provision in the constitution were ―property cannot be used to damage the
public‖. Nevertheless, the provision in the constitution, considering the critics of the concept, necessitates each and
every use of property by the individuals should contribute to public interests, which is impossible.
However, the important discrepancy between these two concepts is neglected and comments interpret that
the constitution only commands not to impair. For instance, while the Supreme Court pointed out in a judgment that
property right is limited by ―not violating others‘ rights‖ (Akad-Dinçkol, 2007, p. 237) a scientific study on this
provision asserts that the provision that asserts property rights cannot be against public interests is unnecessary since
it was accepted by law that property should not be used in contravention of public interests (ġahin, 2009, p.96).
However, it must be kept in mind that what the constitution commands is ―property should not be against public
interests‖ and not that ―property should not impair public interests‖.
In the second place, it should be discussed whether the constitutions aimed at guaranteeing rights and
limiting the governments in this respect limit the individuals with the liability of being in favor of the public
whenever they exercise their property right or not. While the primary task of the state is preserving the rights through
law, the introduction of the moral principle of appealing to public interest as a legal obligation for individuals is not
fully consistent with the universal principles of law.

Conclusion
Considering the comments of K. C. Wheare, who studied modern constitutions, about the Article 43 of the
Irish Constitution4 where it is declared that the State guarantees to pass no law attempting to abolish property right,
and then states that the exercise of the rights mentioned in the provisions of this Article ought, in civil society, to be
regulated by the principles of social justice, thus may, as occasion requires, delimit by law the exercise of the said
rights with a view to reconciling their exercise with the exigencies of the common good; in other words, although
property right is recognized, it is limited by social considerations, which Wheare considers as ―a classical example of
giving a right by one hand and taking it back with the other‖ (Wheare, 1984, p.57) it can be concluded that some
rulings in constitutions that conflict with legal techniques are not only unable to maintain the desired aims but also
fall short in protecting rights and liberties, which is the main reason of their existence, and might leave them without
guarantee.

References
Akad, M. &amp; Dinçkol, A. (2007). 1982 Anayasası ve Anayasa Mahkemesi Kararları, Ġstanbul, Der Yayınları.
Bulut, N. (2006). Mülkiyet Konusundaki Temel YaklaĢımlar ve Türk Anayasasında Mülkiyet Hakkı, Erzincan Üniversitesi Hukuk
Fakültesi Dergisi, Atatürk‘ün 125. Doğum Yılına Armağan, Cilt : X, Sayı: 3-4, Aralık 2006 (pp. 15- 26).
Erdoğan, M. (2006). Ġnsan Hakları, Ankara, BaĢbakanlık Ġnsan Hakları BaĢkanlığı Yayını.
http://www.constitution.ie/reports/ConstitutionofIreland.pdf
http://www.hrcr.org/docs/frenchdec.html

4

Full text of tihs article :
Private Property
Article 43
1. 1° The State acknowledges that man, in virtue of his rational being, has the natural right, antecedent to positive law, to the
private ownership of external goods.
2° The State accordingly guarantees to pass no law attempting to abolish the right of private ownership or the general right to
transfer, bequeath, and inherit property.
2. 1° The State recognises, however, that the exercise of the rights mentioned in the foregoing provisions of this Article ought, in
civil society, to be regulated by the principles of social justice.
2° The State, accordingly, may as occasion requires delimit by law the exercise of the said rights with a view to reconciling their
exercise with the exigencies of the common good.
(http://www.constitution.ie/reports/ConstitutionofIreland.pdf)

53

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http://www.yursil.com/blog/2010/01/hatt-i-sherif-of-gulhane-noble-edict-of-the-rose-chamber-beginning-of-tanzimat-reforms
Özer, A. (1996). Gerekçeli ve 1961 Anayasası ile Mukayeseli 1982 Anayasası, Ankara, Lazer Ofset.
Parla, T. (1999). Ziya Gökalp, Kemalizm ve Türkiye‘de Korporatizm, Ġstanbul, ĠletiĢim Yayınları.
Polatcan, Ġ. (1989). Türkiye Cumhuriyeti Anayasası, Gerekçeler, Anayasa Mahkemesi Kararları, Bilimsel GörüĢler, Ġstanbul,
Bayrak Yayımcılık.
ġahin, A. (2009). Ulusalüstü Ġnsan Hakları Hukukunda ve Türk Anayasa Hukukunda Mülkiyet Hakkının Sınırlandırılması
Sorunu, Liberal DüĢünce, KıĢ-Bahar 2009, Sayı: 53-54, (pp.65-83).
Soysal, M. (1987). 100 Soruda Anayasanın Anlamı, Ġstanbul, Gerçek Yayınevi.
Tannenbaum D.G. &amp; Schultz, D. (2004). Inventors of Ideas, An Introduction to Western Political Philosophy, Toronto, Thomson
Wadsworth.
Tanör, B. &amp; YüzbaĢıoğlu N. (2009). 1982 Anayasası‘na Göre Türk Anaysa Hukuku, Ġstanbul, Beta Yayınları.
Tully, J. (1993). An Approach to Political Philosophy: Locke in Contexts, Cambridge, Cambridge University Press.
Wheare, K.C. (1984), Modern Anayasalar, Çev. Mehmet Turhan, Ġstanbul, DeğiĢim Yayınları.
Zvesper, J. (1996). Locke and Aristotle on Property, In Richard Bellamy &amp; Angus Ross (Editors) A Textual Introduction to Social
and Political Theory, (pp. 91-121), Manchester and New York, Manchester University Press.

54

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                <text>Property right is often referred to for defining political regimes. Therefore to study  property right in the 1982 Constitution is crucial for analyzing the Turkish political structure.  Property right in the 1982 Constitution stands within the Article 35. This article consists of three  clauses. The first two clauses may often exist in any democratic constitution but the third clause  has a very interesting and peculiar feature. Because the first two clauses say that everyone has  right to own and inherit property and this right may be limited by law only in view of public  interest. But the third clause says that exercise of the right to own property shall not be in  contravention of the public interest.  This third clause is objectionable in two reasons. First; this clause ordains the citizens an  impossible thing. Because it is impossible for people to use their properties always in favor of  public interest. If this article said that property right could not be used against the public interest,  it could be acceptable and reasonable. But this clause as written in the constitution puts an  impossible obligation but the law cannot order any obligation on the citizens.  Secondly; the limit of property in liberal democracies may be in line with the public interest and  this limit can be defined only by law. Using the property right in favor of public interest is  merely a matter of people‘s choice. However this article literally obliges people to use their  property in favor of public interest. This is not appropriate for liberal democracies.</text>
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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Employee Empowerment and Its Effect on Organizational Performance
M. Kemal DEMĠRCĠ
Dumlupınar University, Turkey
mkdemirci26@hotmail.com
Ali ERBAġ
EskiĢehir Osman Gazi University, Turkey
mkdemirci26@hotmail.com
Abstract: Employee empowerment is frequently used by business academicians and managers on
business activities. It refers to employees being more proactive and self-sufficient in assisting an
organization to achieve its goals. The term became prominent as part of the total quality
management, although its roots are in issues raised earlier under the heading ―employee
involvement‖ or employee participation. The purpose is not only to ensure that effective decisions
are made by the right employees but to provide a mechanism by which responsibility for those
decisions is vested in individuals and teams. The right to share authority and to codetermine
important decisions is accompanied by responsibility to exercise this power for the legitimate
benefit of multiple stakeholders. Responsible decision-making requires that employees have
access to managerial level knowledge and information about the enterprise, as well as to
opportunities to learn new skills that will enable them to interpret and use the information. Such
information may, however, involve technical, economic, or interpersonal and organizational
aspects of the firm that many employees will be unprepared by their previous education, training,
and work experience to understand and make use of. A democratic workplace will need to provide
for the ongoing education and training of employees not only in relation to their immediate work
tasks but also for their broader role in participating in the management of complex enterprises.
Key Words: Employee Empowerment, Organizational Performance.

Introduction
Empowerment, participation or participative management is a classic concept in business administration
literature (Wilkinson, 1988). Empowerment, although generally seen as a key to employee satisfaction and improved
productivity, opponents regard it merely as an action toward downsizing a company and increasing workloads. The
advocates of empowerment see it as the essential underpinning of continuous improvement. Empowerment concept
has emerged as a development of the total quality management philosophy in recent years. Common ground has been
established as to the acceptance that empowerment is one of the more difficult factors of continuous improvement,
but should not also be understood as a cure to all contemporary corporate ills. Empowerment yet, has no any metric
to assess its impact on business performance and this condition caused the concept to remain fundamentally
qualitative rather than quantitative.

Empowerment and Its Relation to Decision Making Process
In our study we see participative management, empowerment (see for a wide range of definitions of
empowerment: Geroy, Wright, and Anderson) and participation as synonyms. We consider empowerment as the
new version of participative management of 1970‘s. On the other hand, concepts of involvement and commitment
(Becker, Billings, Evaleth and Gilbert, 1996) as elements included in empowerment. Empowerment is achieved
through involvement and commitment of employees. Without involvement of employees in the decision-making
process, the base of decisions will not be properly maintained, and thereby the members of organization can not be
accountable for the quality of their tasks. Members of the organizations should always think strategically and by
employing employees in decision making activities, human resources of the business should be directed towards the
satisfaction of customers, better than before.
In essence, empowerment is a management style where managers share endeavors with the rest of the
organizational members. Their influence in the decision-making process – or the collaboration in the decision-

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making is not limited to the formal power – with certain characteristics as far as information systems, training,
rewarding, power sharing, leadership style and organizational culture are concerned (Pardo del Val and Lloyd, 2003).
Participation of employees in the decisions is not a simple act. Decision process is composed of a couple of
stages, like a chain where each link can be regarded as equally valuable and essential. These stages mainly are;
identification of the problem, intelligence stage, conception or design of alternatives stage, choosing one of the
alternatives as decision, implementation and revision of the decision. All of these stages need to be elaborated
properly and at each level of hierarchy, managers should continuously perform influence and collaboration.
There are a variety of decisions in every organization. Therefore it is better to classify decisions in three
fold in a pyramidal way, as a best known and generally accepted classification. Of a hierarchical division of
decisions, at top strategic, then tactical and at the bottom operational decisions take place. Such classification also
will be helpful in identifying the collaboration degree of the individuals in the decision making process.

The Implementation Conditions of Empowerment
According to Herrenkohl (Herrenkohl, Judson and Heffner, 1999) and Wooddell (2009), effective
implementation of employee empowerment projects in the organization needs maintaining the following four
conditions.
Shared Vision
As his top strategic priorities, like financial solvency, improved reporting process, increasing the level of
customer satisfaction of the company, for example, might be the vision of the director of the organization. Thus,
unless the same vision is shared with the director, it would be very difficult, even sometimes impossible to
implement an employee empowerment project. Shared vision with the director plays a key role and the
empowerment endeavors can obtain ground and can identify its own goals and then can design its own process to
achieve its goals. Starting with the lacking of empowerment areas, the department or the company would provide the
empowerment team with the opportunity to train selected employees to improve their leadership skills.
Organizational Support
Without a concrete support of the director, securing attendance of the supervisors and managers to training
workshops would be almost impossible. Beside this, to plan for access to staff meetings would not be expected to be
successful. Therefore executive director has a critical effect and role on the successfully implementation of the
empowerment project in the organization.
Knowledge and Learning
After the implementation of the empowerment project, the members of the team are expected to improve
their skills in project management and team development skills which would be an asset applicable for other projects
as well. And also skills like, brainstorming, time management, improved discussion, consensus-based decision
making and problem solving techniques for managers and supervisors, and leadership development training and
customer service training for employees could be maintained.
Institutional Recognition
For a successful implementation of an empowerment project, team members need to receive a widespread
appreciation and recognition for their skills in their endeavors. Therefore good reputation of an empowerment team
and its members, could directly impact span of acceptance of the director and department managers, supervisors and
front line employees.

Empowerment And Its Effect On Performance
Organizations need to manage and improve the performance of their employees. As the power or capacity to
produce a desired effect, efficacy of an employee is enhanced by empowerment, doubtlessly. Empowerment can be
formulated as the combination of four dimensions. Thus, the equation is derived keeping in mind the factor of
empowerment enhancing the role efficacy of individual employees (Table 1) (Shulagna, 2009). Some argue that
lacking of one of these elements will deflate, though not completely eliminate, the overall degree of empowerment
(Shulagna, 2009), but still others (Bowen and Lawler III, 1995) believe that, any one of four elements, that is power,
information, knowledge and rewards will completely destroy empowerment. Thus, employees provided with the

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elements of power, knowledge, information and rewards would be more involved and empowered in all levels of
business development programs. Basing on above explanations, empowerment equation could be formed as the
following:

Empowerment = Power * information * Knowledge * Rewards
Power
Autonomy

Information
HRI (Feedback)

Authority
Delegation

Role Clarification
Motivation Participation
(Work Suggest)

Knowledge
Training (mentoring and
Tutor)
Counseling
Appraisals

Reward
Compensation (awards)
Career Planning
Job Enrichment

Table 1: Instruments of Empowerment
It is now widely recognized that decisions concentrated at the top hampers flexibility and timely action at
the lower levels, but pushing down decision making at lower levels, may lead to chaos, conflicting decisions and a
discernible lack of common purpose ((Shulagna, 2009). Therefore to avoid such disadvantages, the decision of
taking decisions, or to push it upwards should be left at employee‘s prudence. To develop the prudence of employees
on the other hand, the organization should develop its personnel and also should create an organizational culture and
a climate that would provide the employee with the right to decide or to push it up the hierarchy. Empowerment
helps to achieve such a culture and an environment in the organization by increasing organizational effectiveness
through developing and deploying competent influence in the human resource.
The term empowerment denotes the enhanced involvement of employees in the organizational processes
and decision-making (Sinha, 2005). All visions and strategies in the organization need able and empowered
personnel. Unfortunately, empowerment is rarely used in the organizations and is less common than other
management efforts like teamwork, quality management or inventory control.
Although empowerment influence performance in a positive way, unfortunately it can not be measured
properly and directly, yet.
Figure 1 represents a view of empowerment process that churns out competent influence in the workforce
and ultimately affects performance by leading to customer satisfaction, customer involvement, customer loyalty and
customer recognition (Shulagna, 2009).

Prompt decision
making
satisfaction
Enhanced
accountability

Involvement

empowerment

Performance
loyataly
Understanding the
value of work

recognition

Job mastery

Figure 1: Empowerment and Its Relation to Performance
Enhanced employee
engagement

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creativity

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Each and every employee in the organization must consider the elements of competent influence which can
be aligned as commitment, capability, and ethicality, in order to create empowered individuals and climate which
also would secure a much better performance in the organization.
Commitment: Empowerment leads employee‘s psychological attachment to the organization, that is
commitment. Commitment towards the job is increased as accountability increases. Empowerment also leads to
employee engagement. And when there is a shared purpose, employee becomes a self-directed decision-maker
towards the goals and objectives of the organization.
Capability: Through history, when an opportunity is given to a person with a right attitude he/she always
has done the best of his means and capabilities. Therefore, by employing empowerment, employee is motivated and
given the chance to make the best utilization of the opportunities given to him. Workplace will provide him freedom
and fun and he/she will get the pleasure of fulfillment of his contribution to work and get full job satisfaction in
return.
Ethicality: Being in accordance with the accepted principles of right and wrong that govern the conduct of
an employee is called ethicality. When employees are empowered, it will lead to exercising competent influence.
Empowering by enhancing more freedom would cause employees express the truth and prevent them from
falsehood, and pretends.
After creating empowered individuals and climate in the organization, we propose the decision making
performance of all employees at all levels to be improved as shown in Figure 2.

Top management
Decision making
(Planning)

Collaboration
And planning
Degree line

Routine duties

Middle management

Low management

Figure 2: Collaboration degree of the individuals in the decision making process
On the above figure, top level managers have the highest degree of collaboration and planning duties as
depicted by the collaboration and planning degree line. Adversely the lower-level managers are expected to have the
least degree of collaboration engagement in decision making process and spend their efforts to routine daily tasks
more than the higher management levels. If the management at all levels, obey the above division of responsibilities
for decision making and routine daily tasks and degree of collaboration(diagonal line), all managers would be
expected to contribute the organization at maximum level possible.

Conclusion
Employees need to be provided with the greater authority to make independent decisions as more decisionmaking responsibility is deconcentrated and concerned through empowerment. There is no doubt that empowerment
is achieved by objective and structural organizational changes which provides individuals greater convenience to
make decisions and use greater influence regarding their work.
When empowerment projects are launched, of course considerations regarding to some of the internal
resistance of the organization should be taken into account. Involved negative behaviors are; improper conduct of

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some managers towards change, resistance to delegate their control to their subordinates, reluctance to invest
resources and make commitment, that are expected to insure long term success of empowerment, as well as
employees negative behaviors to change, etc. Employees attitude against change is generally due to their conditioned
behavior to follow orders, and tendencies not to collaborate with others, and not willing to accept greater
responsibilities and risks, in work environment. Such difficulties are potential in every organization, and therefore
should be accepted as normal, and are expected to be overcomed by shared vision of director, intensive
organizational support, knowledge, continuous learning, and institutional recognition of the empowerment project
team.
A successful empowerment endeavor, as an important organizational challenge proves to be successful in
providing employee feelings of self-efficacy, and removing conditions which cause restlessness and powerlessness.
It also achieves job mastery by providing for role clarification, job enrichment and proper training.
Empowerment also gives growth support to its employees through career planning, rewards and welfare, and
by employing counseling, motivation, and appraisals techniques, uses social reinforcement and persuasion in the
organization.
When empowerment approaches adopted, employees gradually would start to feel that they are valued,
competent and the jobs they are doing have so great meaning and impact, and, when legitimately empowered, they
would continuously be in a mood to believe they have so vast opportunities to apply their skills. In return they are
expected to change their behaviors towards using their talents in the work place better than before, and such
employee driven changes are expected to bring contribution to the effectiveness and efficiency of the organization.

References
Wilkinson, A. (1988). Empowerment: theory and practice, Personnel Review, Vol. 27 No 1, (pp. 40-56).
Geroy, G.D., Wright, P.C and Anderson, J. Strategic performance empowerment model, Empowerment in Organizations, V. 6
N.2, (pp 57-63).
Becker, T.E., Billings, R.S., Evaleth, D.M. and Gilbert, N.L. (1996). …bases of employee commitment: implications for job
performance, Academy of Management Journal, V. 39 N.2. (pp. 464-481)
Pardo del Val, M. and Lloyd, B. (2003). Measuring Empowerment, Leadership &amp; Organization Development Journal, (pp. 102103.)
Herrenkohl, R., Judson, G and Heffner, J. (1999). Defining and measuring employee empowerment, Journal of Applied
Behavioral Science, 35, (pp. 373-385).
Wooddell, V. (2009). Employee Empowerment, Action Research and Organizational Change: A Case Study, Organization
Management Journal, 6, (pp.15-18).
Bowen, D. E. and Lawler, E.E III (1995), Empowering Service Employees, Sloan Management Review, 36, 4, (pp. 73-82).
Sinha R. (2005). Lighting of a Spark, Human Capital, 8, 9.
Shulagna S. (2009). Employee Empowerment in the Banking Sector‖, IUP Journal of Management Research. Hyderabad: Sep. 8,
9, (pp. 48-67)

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                <text>Employee empowerment is frequently used by business academicians and managers on  business activities. It refers to employees being more proactive and self-sufficient in assisting an  organization to achieve its goals. The term became prominent as part of the total quality  management, although its roots are in issues raised earlier under the heading ―employee  involvement‖ or employee participation. The purpose is not only to ensure that effective decisions  are made by the right employees but to provide a mechanism by which responsibility for those  decisions is vested in individuals and teams. The right to share authority and to codetermine  important decisions is accompanied by responsibility to exercise this power for the legitimate  benefit of multiple stakeholders. Responsible decision-making requires that employees have  access to managerial level knowledge and information about the enterprise, as well as to  opportunities to learn new skills that will enable them to interpret and use the information. Such  information may, however, involve technical, economic, or interpersonal and organizational  aspects of the firm that many employees will be unprepared by their previous education, training,  and work experience to understand and make use of. A democratic workplace will need to provide  for the ongoing education and training of employees not only in relation to their immediate work  tasks but also for their broader role in participating in the management of complex enterprises.</text>
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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

The Importance of Information Problem in Financial Markets

Nedret DEMĠRCĠ
Asst. Prof. Dr., Kırıkkale University, Department of Economics,
Kırıkkale, Turkey
nedretdemirci@kku.edu.tr
Ercan SANCAK
Asst. Prof.Dr., Fatih University, Department of Management
Ankara, Turkey
esancak@fatih.edu.tr

Abstract: Information can be considered just as an economic good, because it has a price
in the market like every economic product and to produce and disperse it is costly. Also it
allows individuals to make choices that yield higher expected payoffs or expected utility
than they would obtain from choices made in the absence of information. Information
has some other special characteristics than other economic values. It is easy to create but
hard to trust. It is easy to spread but hard to control. It influences many decisions. These
special characteristics (as compared with other types of goods) complicate many standard
economic theories and make sense on the financial markets. The goal of this paper is to
emphasize on what information means generally in economics and especially in financial
markets and to evaluate the economic problems in a detailed manner when ―imperfect
information‖ is available in the financial markets.
Key words: financial markets, asymmetric information, adverse selection, moral hazard,
credit rationing.

The Role of Information in Market Economy
Information economics is a branch of microeconomic theory that studies how information affects an
economy and economic decisions. In economic literature, nearly everything in the world can be treated a commodity,
including information. However, it is not all treated the same. Information in economics as a commodity apart from
other goods has special characteristics. It is easy to create but costly, because creating information has a transaction
cost. It influences many decisions. These special characteristics (as compared with other types of goods) complicate
many standard economic theories. Some of these characteristics can be put in line as follows.
First, in the normal economy, the buying and selling of goods means those goods are no longer able to be
used by others, at least not in the same condition. That simply does not exist in information economics. One person
consuming information does not prevent another person from consuming that information.
Second, in normal economic theory, items for trade are usually valued based on their scarcity, as well as
their demand. If products become scarcer or demand is increased while supply stays the same, the price increases.
However, that is not true in information economics. Information is not scarce and is becoming even less scarce all
the time. Technological progress makes information more ample and easy to reach it.
The first thing we have to emphasis on is that information has economic value because it allows individuals
to make choices that yield higher expected payoffs or expected utility than they would obtain from choices made in
the absence of information. This special characteristic of information leads the economy some important problems.
Because of the transaction cost of having the complete information on contracts parties are not likely to have the
same information. We call this incompleteness ―asymmetric information problem‖ or ―imperfect information
problem‖.

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Asymmetric Versus Complete Information; a Close Look at the Problem
Markets allow economic agents to separate the consumption and production of goods and services through
trade. Thus, theoretically markets produce Pareto-optimal allocation of resources that is a situation in which no
individual can be made better off without making someone else worse off. According to the Arrow and Debreu
(1954) model when:
1. there is full information,
2. agents are atomistic (too small to influence market and prices)
3. there are no externalities (unpriced side effects like pollution)
there are market clearing prices and that makes individual plans consistent (Spencer, 2000). When we
consider above explanation, it is obviously assumed that there is an efficient market that allocates resources in a
Pareto-optimal manner; once the market opens, equilibrium prices are found and exchanges are made without any
problem.
According to the Classical Economists, perfect competition is prevalent in the market hence information for
every market type is perfect and reachable. That means for especially financial markets there is no friction, so the
economy is a well- functioning device like a clock. Actually this argument of Classical School arises from Adam
Smith`s ―Laissez-Faire Laissez-Passer‖ philosophy. As it is well-known, A. Smith and other Classics argue against
the state intervention because of their prominent assumption arguing that there is a ―mysterious chef‖ bringing the
market always into equilibrium. That ―mysterious chef‖ is sometimes called ―invisible hand‖. In Smithian thought,
this ―invisible hand‖ commands the whole economy without any undesired results. As it is well known by
economists, ―invisible hand‖ is none other than ―prices‖. Thus, according to this idea there is perfect competition in
the market and information is perfectly attainable by every participant of this market without any barrier.
The asymmetric information literature which looks at the impact of financial structure on economic activity
focuses on the differences in information available to different parties in a financial contract (Mishkin, 1990;4).
Asymmetric information is a situation in which one party in a transaction has more or superior information
compared to another. This often happens in transactions where the seller knows more than the buyer, although the
reverse can happen as well. For example agents on one side of the market have much better information than those
on the other side. Borrowers know more than the lender about their repayment prospects; the seller knows more than
buyers about the quality of his car.
Disputes on asymmetric information theory go back to Hayek, in his path breaking work ―The Use of
Knowledge in Society‖ he says ―The peculiar character of the problem of a rational economic order is determined
precisely by the fact that the knowledge of the circumstances of which we must make use never exists in concentrated
or integrated form, but solely as the dispersed bits of incomplete and frequently contradictory knowledge which all
the separate individuals possess‖ (Hayek, 1945:519). Hayek implicitly accept that in a contract having more
information of one party than another leads to asymmetric information problem.

Imperfect Information and Its Mechanism
As we can remember from classical economics, prices convey all the relevant information (especially about
the scarcity value of resources). We now realize that there are a variety of other ways in which economically relevant
information is conveyed, and that prices convey information other than that about scarcity. Producers and consumers
realize that their actions—both individually and ‗‗collectively,‘‘ e.g., through aggregate movements in prices and
quantities convey information, and this affects actions, so that the simple theory of consumer and producer behavior
does not describe the behavior of consumers or producers in several central aspects (Stiglitz, 2000:1449).
Because information possesses many of the properties of a public good, non-rivalrous consumption (which
means that consuming information does not exclude someone else from also consuming it even if it is potentially
possible, it is socially inefficient to do this ) and non-excludability (it is difficult to exclude others from its use),
there is a presumption that information will be ―underproduced‖ in competitive market economies. There are also
externalities associated with the acquisition of information since it is not easy (or is sometimes not possible) to
appropriate the returns to collecting information (Islam, 2007:2). Correspondingly, the asymmetric information
theory focuses on the differences in information that different parties have with different degree in a financial
contract. For example in a lending transaction borrowers have an informational advantage over lenders because
borrowers have more information about the quality of the investment projects they want to undertake than lenders
have.
Informational difference and its arising drawbacks in the financial markets like classic "lemons" problem
first described by Akerlof (1970) in his pioneering article. Akerlof gives an simple and quite apparent example from

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used car market. In his essay, he says the example of used cars captures the essence of the problem. This kind of used
car‘s sellers are better informed in comparison with the buyers about the quality of cars. Defective cars in the market
are called ―Lemons‖.
We can explain Akerlof‘s idea with a simple example. Individuals want to buy used cars in the market but
they don‘t know which car have high quality and which one have poor quality (e.g. lemon). On the other hand, they
can make an estimation with q probability that car will be high quality and with (1-q) will be lemon. We are making
an assumption here that q is the proportıon of good car and (1-q) is the proportion of lemons in second hand market.
Information asymmetry arises here and sellers have more knowledge about their cars than buyers. However, good
cars and bad cars sell at the same price due to buyers can not differ easily the good one from the bad (to be able to do
that they have to get extra knowledge by paying its charge, e.g. that requires a transaction cost). Clerarly their prices
have to be at different values because of the quality difference. If this situation continue in this manner, the seller of
bad cars is going to sell ―lemons‖ at the price of good car and buy a new one that may be good with the probability
of q. Obviously this will be a good trade for the bad car sellers.
In Akerlof‘s example, sellers and buyers make different valuations about the cars for both high quality and
poor quality. By using Let‘s say buyers evaluate high quality cars with a price W h and poor quality Wp and, sellers
evaluate high quality with a price Vh and poor quality VP. In buyer‘s mind Wh ˃ Wp and according to the sellers‘ VP
&lt; WP and Vh ˂ Wh. In practice, the markets would merge into a single market with one and the same price for all
units (Lofgren, Persson and Weibull, 2002:197-198). Suppose that this occurs and that the sellers' valuation of high
quality exceeds the consumers' average valuation. In accordance with the former explanation, we make a new
assumption that buyers evaluate all cars in the market with an average price W a. We may represent this case with the
following inequality: Vh ˃ Wa, where the average valuation Wa is given by Wa = qWp + (1-q)Wh. In the market,
consumers want to pay for the car at most W a. But this price is under Vh, what sellers want. Hence, high-quality
sellers leave the market to low-quality goods, the lemons, due to demand for their good quality cars doesn‘t meet the
price that they expect. Therefore the only machines remain in the market are bad quality. As a result, while good cars
can not find their worth, bad cars are sold at a higher value that they don‘t deserve. Apparently bad cars drive out the
good from the market30.

Asymmetric Information and Deriving Problems
Information asymmetry can lead to three main problems:
1. Adverse selection: immoral behavior that takes advantage of asymmetric information before a
transaction. For example, a person who is not in optimal health may be more inclined to purchase life
insurance than someone who feels fine.
2. Moral Hazard: immoral behavior that takes advantage of asymmetric information after a transaction. For
example, if someone has fire insurance they may be more likely to commit arson to reap the benefits of the
insurance.
3. Principal-Agent Problem: if information is asymmetrically distributed between those who make decisions
(agents) and the theoretical beneficiaries of those decisions (principals), then the reward functions which
govern firm decision-making may not have the form of simple valuation maximization assumed in the
neoclassical theory (Greenwald and Stiglitz, 1990).

Adverse Selection
In accordance with the explanations in the previous topic, we can better identify “adverse selection” mechanism
with following illustration:
Buyer Knows
Doesn‘t know every car‘s quality and
Make decision according to average price
$600

30

Excellent Car
Good Car
Fair Car
Lemon Car
Average Value

Seller Knows
$1500
$600
$300
$200
$600

This situation is known as Gresham‘s Law and is defined ―bad money drives out good‖.

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Table 1: The Mechanism of Adverse Selection
Buyers know that the sellers of excellent cars won‘t sell for the average value, so they recalculate the
average value without excellent car:
($600 + $300 + $200) / 3 = $366.
With this new average price, only fair car owner will be wishful to sell car, and buyer will revise the
average price once again excluding good car:
($300 + $200) / 2 = 250.
At this time the only lemons will sell at this price, and last time buyer will revise average price. Last
evaluation:
$200 (that is lemon).
According to the above explanation, at the end, only lemons will be sold in the second hand market and
high quality cars will leave the market. This situation is called ―adverse selection”. This result is completely
dissimilar what A. Smith argues in the classical theory.
A firm or fund users have an incentive to present lenders with an evaluation of positive financial condition
and have an incentive to persuade them about the positive return of the investment. If lenders knew perfectly the
risks associated with each borrower, this would matter little; each borrower would be charged an appropriate risk
premium. It is because lenders do not know the risk properties perfectly that this process of adverse selection has
important consequences
Because of lack of sufficient information, or having this information is costly about the riskiness of the
projects, in the similar way that we developed in used car example, lenders will make a classification among the
projects according to the their level of risk and define only one average interest rate to apply for all borrowers. But
healthy projects with high level of returns will find this rate of interest is quite high and not affordable, on the other
hand, poor quality projects with a high probability of negative result (that is lemon) will be demanding the loan at
this high rates. As a result, poor investment projects will drive out the healthy projects from the market. This
situation is called ―adverse selection‖ in financial markets.

Moral Hazard
The lack of appropriate information about the quality of borrowers may result in another problem called
―moral hazard‖ which effects the well-functioning of financial markest. Because the insufficient information that
lenders have about the riskiness of the barrower, barrower has incentives to engage in activities that most probably
will result in with a high loss (Mishkin, 1990:7). Because that low probability of positive return of the project there
is a default risk at the end and this situation harm the lender.
Moral hazard occurs when a barrower's behavior is hard to monitor and control and thus payment to that
barrower is based on incomplete information. Thus, moral hazard takes place after having the credit from the lender.
In financial markets, due to less information and low degree of control and monitoring about the barrowers‘ actions,
barrowers have a tendency to deal with risky projects. In particular, if there is a deposit insurance the state provide to
the financial institutions like banks, that encourages the lenders to monitor their barrower appropriately because they
will not have to carry the full burden of losses. If the majority of the barrowers consist of risky projects, the total
amount of default risk will be higher at that much. Hence, the abundance of the losses may reduce the total amount
of credits in the financial markets. This circumstance is called “credit crunch” that is the real crises. So, better
information on the economy helps borrowers and lenders make better decisions and may be expected to rise lending.
Principal-Agent Problem
Principal-agent problem occurs when one party, called an agent, acts on behalf of another party, called the
principal. The agent usually has more information about his or her actions or intentions than the principal does,
because the principal usually cannot completely monitor the agent. The agent may have an incentive to act
inappropriately (from the viewpoint of the principal) if the interests of the agent and the principal are not aligned. For
example the CEO of a firm knows more than shareholders about the profitability of the firm and may engage in some
risky actions without the knowledge of the firm owner (shareholder). Consequently the firm faces a loss. Incentive
problems may intensify when a firm is equity financed. Managers, who receive only a small fraction of any
additional profit, are likely to put forth less than optimal amounts of effort (Stiglitz, Greenwald and Weiss, 1984:4).

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Credit Rationing
One result deriving from the asymmetric information is credit rationing. Why credit is rationed? When there
is an excess demand for credit, in order to meet this increase in financial market, lenders apply credit rationing
mechanism instead of increasing the interest rates due to falling short of this demand.
The adverse selection aspect of interest rates is a consequence of different borrowers having different
probabilities of repaying their loan. The expected return to the bank obviously depends on the probability of repayment, so the bank would like to be able to identify borrowers who are more likely to repay. It is difficult to
identify good bor-rowers, and to do so require the bank to use a variety of screening devices (Stiglitz and Weiss,
1981:393). As the interest rate rises, the average riskiness of those who borrow increases, possibly lowering the
bank's profits because of the default risk. So, that increases the pool of the risky project and discards the high quality
projects from market.
In the figure, the space I shows the interest rate r* that maximize the expected returns of the banks. Both
credit demand (LD) and credit supply (LS) are the function of the interest rate and at the rate of r*, credit demand
exceeds credit supply. Excess demand is shown with Z. In the conventional analysis, the investors who are not
eligible to get the credit will offer higher interest rates to the banks and in this way they will induce to increase the
amount of funs supplied in the market. However, in the credit rationing mechanism a Walrasian market equilibrium
is not realizied and, though the fund demand is not equal to fund supply, r* is the equilibrium interest rate (Jaffee and
Stiglitz, 1990:854).
When we look at the space II, we can find out that banks are not willing to lend credit with the rate above r*
because of the adverse selection effect. From the viewpoint of banks, borrowers offering interest above the rate r*
have a higher level of risk than the borrowers with rate r*. Consistently, former projects will have lower return in
comparison with latter. Lower rate of R than r* shows this relationship.

L

L

IV

IV

I

z

I

Z

LS
0

45 (

LS

m

r

r*

R

III

II
G
Figure 1: Credit Rationing in Financial Markets
Source: Villanueva and Mirakhor, 516

133

LD

r

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Space III represents the relationship between supply of funds and expected rate of return. For more rate of
return the amount of funds supplied have to be increased. Space IV shows the relationship between supply of funds
and the quantity of funds at equilibrium. When there is a credit rationing in the financial market, the equilibrium
interest rate is realized at the rate r*. There is an excess demand at this rate r*, on the other hand the market clearing
interest rate is rm. This rate is neither optimal nor effective for banks, because that provides the banks lower rate of
return in comparison with the rate r*. Despite r* is not market clearing rate, it is both optimal and effective because
banking sector profits are at the maximum level and the risky projects are excluded.
As a result, credit rationing mechanism may be good solution for the adverse selection problem when there
is asymmetric information about the credit market.

References
Akerlof, George A., ― The Market For Lemons: Quality Uncertainty and the Market Mechanism‖, The Quarterly Journal of
Economics, Vol. 84, No. 3, August 1970, pp. 488-500.
Greenwald, Bruce C., Stiglitz, Joseph E., ―Asymmetric Information And The New Theory Of The Firm: Financial Constraints
And Risk Behavior‖, National Bureau Of Economic Research, Cambridge, May 1990.
Hayek, F.A., ― The Use of Knowledge in Society‖, The American Economic Review, Vol. XXXV, September 1945.
Islam, R. ―Economic Information and Finance: More information means more credit, fewer bad loans and less corruption‖,
World Bank Policy Research Working Paper No: 4250, June 2007.
Jaffee, Dwight Ve J. Stiglitz, ―Credit Rationing‖, B. M. Friedman Ve F. H. Hahn (Ed.), Handbook Of Monatary Economics,
Elsevier Science Publishers, Volume II, Chapter 16, 1990
Lofgren, Karl-Gustaf, Torsten Persson, and Jorgen W. Weibull, ―Markets with Asymmetric Information: The Contributions of
George Akerlof, Michael Spence and Joseph Stiglitz‖, The Scandinavian Journal of Economics, Vol. 104, No. 2, June 2002.
Mishkin, Frederic S., ―Asymmetric Information And Financial Crises: A Historical Perspective‖, National Bureau Of Economic
Research, Working Paper No. 3400, 1990, Cambridge. Ma 02138 July 1990
Spencer, Peter D., ―The Structer and Regulation of Financial Markets‖, Oxford University Press, New York, 2000.
Stiglitz, Joseph E., Bruce Greenwald And, Andrew Weiss, ―Informational Imperfections On The Capital Market And MacroEconomic Fluctuations‖, National Bureau Of Economic Research Working Paper No. 1335, Cambridge, April 1984.
Stiglitz, Joseph E., ― The Contributions of the Economics of Information To Twentieth Century Economics‖, The Quarterly
Journal Of Economics, November 2000.
Stiglitz, Joseph E., and Andrew Weiss, ―Credit Rationing in Markets with Imperfect Information‖, The American Economic
Review, Vol. 71, No. 3, June, 1981.
Villanueva, Delano Ve A. Mirakhor, ―Strategies For Financial Reforms: Interest Rate Policies, Stabilization, And Bank
Supervision Ġn Developing Countries‖, IMF Staff Papers, Vol.37, No:3, September, 1999.

134

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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Determinants of Firm Survival in Manufacturing Industry:
A Research on Lake Region in Turkey

Hakan DEMĠRGĠL
Assis.Prof.Dr.,Süleyman Demirel University, Isparta, Turkey
demirgil@iibf.sdu.edu.tr
Murat KARAÖZ
Assoc.Prof.Dr., Akdeniz University, Antalya, Turkey
mkaraoz@akdeniz.edu.tr
Bekir GÖVDERE
Assis.Prof.Dr., Süleyman Demirel University, Isparta, Turkey
bgovdere@iibf.sdu.edu.tr
Muhlis CAN
Res.Assist., Hakkari Üniversitesi, Hakkari, Turkey
muhliscan@hakkari.edu.tr

Abstract: This paper gives an empirical analysis of determinants of firm survival in the
manufacturing sector of Lakes Region (Turkey) from 2003 to 2009. The survival activities of
the firms are measured through a four-dimensional, namely firm based, industry/environment
based, innovation based and human capital based, questionnaire consisting of 49 questions.
For the application logistic regression method is used for the evaluation of survival
probability and the findings are compared with the basics of the related literature.
According to the results of the empirical work, the effects of the ―Firm Based‖ factors
on the survivals and growth performances of the firms located in the region are found to be
more significant and positive than the remaining dimensions.

Introduction
Studies, depending on market entry and exit dynamics, have emphasized on the importance of the the
high turbulence level in the industry in recent years. Applies to all sectors and all the economies, most of the new
companies stop their activities a few years after entering to the markets. Chance of firms‘ survival and improving
their performance for growth depend on following successful strategies which can be adaptable to changing
environmental conditions.
The difference in survival rate of firms till to the 1980s has not been got attention in the literature as
deserved. However, after 80s, there has been an increasing interest in performance of the firms to survive and the
studies have focused on the determinants of survival. The relationship between scale and growth rate were
investigated in the studies, related to the performance levels of firms in the 1950s and 1960s by using firm-level
data. However, nowadays, the studies gives particular importance to firm-level factors which effect the survival
rate. Economists have started to use the market selection models which affect the survival of firms to explain the
empirical findings. Based on previous studies of the factors, affecting the survival of companies, can be
classified under three categories :
1-) Firm-based factors
2-) Industry-based factors
3-) Local factors
At a level in firm-based , the most important and best-known variables that affect the chance of firms‘
survival are firm‘s age and its scale. The changes in the scale of the firms occuring in the course of time also
reflect the interactions between entry and exit. The most important determinants of the survival chance at a level
in the industry are market scale and growth rates, technology properties and product life cycles.
Among these three categories, human capital and local factors are evaluated with different measurement in the
literature of survival. Human capital is generally a variable related to individual characteristics of the the owner‘s
of the company, entrepreneur‘s, manager‘s and employee‘s (Van Praag 2002). Therefore, in the analysis of

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

survival of the firms, human capital variables is not used whether in local or regional level (Acs and Armington
2006). Human capital is evaluated in the firm-based level because of reflecting its own specific effects.
In addition to these three categories, especially at the end of the 90s, the impact of the innovative efforts
of companies to survive has started to take over. Innovation in a changing environment will provide a
competitive position to the company and this will increase the firm‘s potential for being successful in the market.
This effect is important for both the firms that are operating in the industry and the firms being freshly
established and enter to the market. Innovation can not only increase the chance of survival of new firms by
means of enabling them to enter suitable niche markets but also reduce the negative effects of tecnologies which
are new and devoloping or desructive upon the avaliable firms.

Determinant Features of Survival of Firms
Classifying of the factors affecting survival in the industry-based and firm-based would be appropriate
to form a starting point. Industrial attributions include both time-based factors and external variables which show
the effects amidst the markets. This scope is a result of the form and rate of technical changes and different
demand attributions. Therefore, affecting the survival of firms, owned properties are regarded as internal factors
(Agarwal and Gort 1997). The other important point should also be noted that the survival of the firms is seen as
a function of the variables of the firm and variables of the industry.
The entering to the market and existing of the firms from the markets are important process which
affects the degree of competition / efficiency and evolution of the industry. These two cases have important
impacts on the distribution of resources, increasement of productivity with innovation rate and renewal of the
industry. Although, existing of firms from markets have both social and economical effects, the number of
studies is very low regarding factors which determine the risk of exist. Factors which increase the effectiveness
of the company are the important determinants of survival as well (Perez et al.2004). Most of the recommended
practices which increase the probability of survival are expanding export rates and increasing R &amp; D activities (
providing information about foreign markets, guiding in entrance to the market and providing export structure,
support policies into investment R &amp; D )
Determinants of survival of the firms which newly enter are avaliable in industrial organization
literature. According to Geroski (Geroski 1995), one of the important points related to market entry are age and
scale which are directly related with the chance of firm‘ s survival. As first put forward by Stinchcombe
(Stinchcombe 1965), new firms are faced with ― barrier to being new‖ and this is a risk of failure compared with
large firms. During the period of starting, the firms are faced with the problem of completion in efficieny levels
and organizational effectiveness to maintain their speed in the same level with competitors. In order to overcome
this case, obtaining of capital and labour force, establishment of business connections with suppliers and finding
of customers for products are essential points.
The studies related to entry and exit of the firms, performance after entry and evolution of industry do
not fully deal with the location, especially the role of region at the time of entry. The problems of the countries in
which the risk ratio is different in local center and out of city center and where the economic activities are
intensive in only a few local center can be eliminated by application of the development policies. Location
selection is the most important strategic decisions of the company at the begining. A large part of the new firms
which start operations are located in clusters where the firms have particular relations between each other and
where the institutions are geographically concentrated (Pe‘er and Vertinsky 2006).
Scale and scope not only allow the creation of organizational capital, but also provide different benefits.
Scope provides diversity in the organizational capital while scale gives the depth to the organizational capital. A
larger scale and scope of the firm can increase chance of survival when faced with problems of money,
connections and provide benefits such as work Schedule (Bercovitz and Mitchell 2007).
There are some structural factors such as firm‘s age and its scale which play important role in the
industrial economy. Differences among the chance of survival among the firms are seen the results of the
selection process. Experience will increase the chance of firm‘s survival and therefore, life curves of the firm has
extended with the scale of the firm.
Innovation may increase chances of the firms‘ survival by contributing to the development of appropriate
strategies. The existing firms in the market is also under risk because of recession/ fluctuation in the industry that
are results of tecnological changes occurring in its nature. Innovation activities increase their abilities to being
alive permanently.
Level of competition, demand predictability, the rate of tecnical change and its structure vary among different
industries and these affect the chance of survival. The industry characteristics affecting the survival can be
analyzed in two groups (Agarwal and Gort 1997):

Specifications for all products in this group vary in course of time or more distinctly, in the
period of consecutive product life cycle.

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

In the second group, industrial properties change between industries thanks to all stages of
the life cycle or a large part of life cycle.
The conditions of industry at the time of entry have two significant reasons for firms which newly enter to the
industry. Firstly, the firms must make large irremeable investments in order to compete with the firms which are
already exist in the industry. If the firms flunk out from the industry, these investments would be appraised as
sunk costs and it is considered that these investments affect dynamics and profitabilitiy of the company.
Therefore, identification of industry‘s conditions that reflect the nature of cost at the time of entry enable to
understand how this kind of structural barrier effect the performance after entry.
Having a high human capital attributes of entrepreneur will decrease the ambiguities about the
efficiency level and also enable to firm to adapt market condition and enable faster at the time of arranging the
capacity so this will reduce the probability of exit. The entrepreneurial human‘s impact on the success of new
firm may start before establishment. The entrepreneurs, who have opportunity to capture lucrative market and
have ability to access relevant information, get the advantages because of past experience.
High level of previous experience is not only increasing economic performance, but also opportunity of
obtaining of entrepreneurs and the expected income level of entrepreneurs in alternative business sectors.
Therefore, a skilled entrepreneur performs better when he works for himself, also he will have high performance
that he needs to go on his business life (Gimeno et al. 1997). Has previously worked in similar industries or
individuals who set up a new company in the same region, command the organization of firm associated with
business environment, relational features of sector and contex of sector (Santarelli and Vivarelli 2007).
One of the factors that increase the survival of institution which is related to founder, owner and
employees level of education can be found in lots of studies. The founder of firm can be accepted as the first
builder of organization‘s both structure and strategy. The role of the founder is inevitably an important position
in capitalist economy. When viewed from this aspect, the level of education of the founder should be considered
as one of the important determinant affecting the performance of the firm (Nelson 2003).

Research
Research Sample
The universe of firms located in Lake District region are in manufacturing industry. The number of
firms in the sample set is 60. This sample was used in Dr.Bekir Sami Oğuztürk dissertation thesis titled ― The
Role of Innovation in Regional Development and a research in Lake District‖. The firms which were applicated
in survey in the sample set are compared after 5 years with a new survey which was prepared by us to investigate
the cases whether they are survive or not.
39 of 60 firms are located in Isparta, 21 of them are located in Burdur. The survey of the study was
applicated by meeting individually with each firms owner, partner, manager, department manager of the firms
including active or not active at that time. 12 of the firms (20% of the sample) in the sample ended their activity
in 2008.

Construction
Timber
Textile
Cosmetic
Food
Bait
Machine
Gun
Tarımsal Sulama
Total

ISPARTA
3
6
13
4
8
1
4
39

BURDUR
3
8
8
1
1
21

Table 1. The Sectoral Distribution of Sample Firms
Sample included firms in other sectors of the provincial distribution are included in Table 1. Looking at
the sectoral distribution of firms, in both provinces is seen as a condensation on the timber industry. Wood
products industry is identiy of the region. The industry has a long history in the region and this industry which
has provided value added to the region for many years and has also included a large portion of employment.
Naturally, in the set of sample, most of companies are performing in timber industry in both cities. Looking at
the city-level, after timber sector, 2nd intensive industry is textile in Isparta. The reason is city‘s past experience

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in carpet and yarn, and also having infrastructure. In Burdur, most of firms are performing in timber industry and
in machine industry. Considering high agricultural production level in Burdur, it has a considerable potential in
the production of agricultural equipment and machines.

Research Data
The source of data for study is a survey, consisting of 39 questions about firms‘ survival and growth
performance, was applied to the firms between June-July 2008. This survey consists of four main headings: firm
information, product and sales information, staff information working in branch, firm‘s innovation performance.
Moreover, the data belongs to 2003 was obtained from survey which was used in dissertation thesis of Dr.Bekir
Sami Oğuztürk.
Influential factors on the growth performance of firms for survival analysis will be collected under four
main headings to be used for the growth analysis by making totalitarian evaluation. The headings under which
analysis of growth are categorized as firm characteristics, industry / environmental characteristics, innovation
activities and human capital ( for entrepreneurs and workers).
Variables, grouped under four headings, have detailed explanations above. The symbols and the use of variable
are presented in Table-2
VARIABLES
Exit (EXT)

DEFINITION
For the survived firms 1
Otherwise
0

Firm Age (AGE)

For the survived firms difference between founding
date and year 2008, for the exit firms difference
between founding date and exit date.

Firm Size (SIZE)

Number of employees in 2003 at the firm

Export (EXPRT)

For the exporter firms
1
Fort he non-exporter firms 0

Diversification (DVSF)

Number of plant, branch office and bussiness concerns
ecept headquarter

Minimum Efficient Scale (MES)

Proportion number of emplyees at the firm to number
of employees in own sector.

Industrial Growth (IGRWT)

Mean of sectoral growth rates fort he last four years

Location (LCT)

Isparta ilinde faaliyet gösteren firmalar için 1, Burdur
ilinde faaliyet gösteren firmalar için 0.

Innovation Activities (INNO)

Ġf the firm has bought/developed;
a-) A new product ,
b-) A new production system and/or technology 1
Otherwise 0

Patents/Industrial Design (PTNT)

Number of patents and/or industrial design certificate

Research and Development (RD)

For the regular R&amp;D activities 1
Otherwise 0

Educational Level of Employees (ELE)

(Graduate employment)/(Total employment)

Table 2. Variables Used In The Analysis
Logistic regression model ( logit) will be used to distinguish the survival firms and failed firms in 5
years period after 2003. Logit model is explained as below with estimation of a specific event / fact with β
probality parameters.

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(1)
In logit model, β coefficient is calculated by maximum probabilty method. Thus, taking into consediration of the
firm‘ s situation within a specific period, it is possible to calculate the probability of firms‘ survival.

Results
The main features of firms being inclusive of sample are shown in Table 3. Accordingly, in the region,
the firms' average age was 26 and this age level shows that most of the firms were founded in the early 80s and
90s while the industrialization was accelerated in Turkey. The firms in the region have an avarage level of
foreign sales opportunity. 57% of firms are exporting. In terms of employees or scale, firms are in middle sizes
(average number of employees is 73). Although there is no setted innovative structure and culture, 42% of the
firms are engaged in informal R&amp;D activities. Although the structure of firms are generally limited liability and
joint-stock company, the most prominent characteristic for all the firms is family business. Finally, it is observed
that 83% of the firms‘ founders in the sample have experience in the same or different sectors as an
entrepreneurial.

COMPANY
STRUCTURE
EXT
AGE
SIZE
EXPRT
DVSF
MES
IGRWTH
LCT
INNO
PTNT
RD
ELE

NUMBER OF
OBSERVATIONS

MEAN

STANDART
DEVIATION

60

1.13

0.34

60
60
60
60
60
60
60
60
60
60
60
60

0.8
26.03
72.78
0.56
1.88
47.84
7.35
1.35
0.53
0.45
0.41
9.27

0.40
22.25
103.2
0.49
1.7
15.4
7.46
0.48
0.50
2.65
0.49
8.64

MINIMUM MAXIMUM
1
(Corporate)
0
3
7
0
1
10
-3.07
1
0
0
0
0

2
(Individual)
1
153
431
1
11
100
19.17
2
1
20
2
38.71

Table 3. Descriptive Statistics
The correlation analysis will be made in order to see whether there is a directly relationship amidst
explanatory variables which cause an increasement in the estimate values‘ of standart errors of parameters before
making econometric analysis. Table 4 contains the results of correlation analysis.
When we examine the values of co-efficient resulted from correlation analysis, it can be seen that there
is no highly relationship which can cause multicolinearity problem between independent variables. Table 2 will
also help us to see the direction of relationship between firms growth rate and survival chances with independent
variables
The Stata 1.9 statistical program was used for all models while the researh findings are being obtained. In the
findings section, the determinants which affect the firms‘ survival including firm-based, industry and
environment-based, human capital and innovation-based, growth perfomance factors will be examined with an
order.

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EXT AGE SIZE EXPRT DVSF MES IGRWTH LCT INNO PTNT RD
EXT
AGE
SIZE
EXPRT
DVSF
MES
IGRWTH
LCT
INNO
PTNT
RD
ELE

1
0.32
0.05
0.25
0.28
-0.02
0.09
-0.15
0.08
0.05
0.28
0.26

1
0.18
0.18
0.13
-0.12
0.14
-0.14
-0.01
0.20
0.38
0.41

1
0.44
0.04
0.29
-0.46
-0.33
-0.01
0.16
0.12
0.13

1
0.29
0.23
-0.35
-0.12
-0.13
0.32
0.29
0.11

1
-0.01
-0.12
0.01
-0.03
0.33
0.05
0.43

1
-0.54
-0.24
0.07
-0.21
-0.20
-0.13

1
0.46
-0.07
-0.08
0.22
0.01

1
0.01
0.10
-0.16
-0.19

1
0.18
0.18
0.15

1
0.29
0.37

ELE

1
0.28 1

Table 4. Correlation Analysis

EXT
AGE

Coefficient
0.08

Std.Dev.
0.05

z
1.59

P&gt;|z|
0.11

SIZE

0.00

0.01

-0.68

0.50

DVSF

3.49

1.64

2.14

0.03***

EXPRT

2.36

1.45

1.63

0.10

MES

0.00

0.05

-0.03

0.98

IGRWTH

0.26

0.12

2.08

0.04***

LCT

-3.84

2.05

-1.87

0.06**

RD

-0.73

1.42

-0.52

0.61

PTNT

-1.15

0.60

-1.93

0.05**

INNO

1.23

1.22

1.01

0.31

ELE

0.06

0.10

0.64

0.52

Constant

-2.46

3.69

-0.67

0.51

Significance Level: *=%10, **=%5, ***=%1
Number of obs =
60
Pseudo R2
= 0.4877
LR chi2(11)
=
29.29
Log likelihood = -15.381425
Prob &gt; chi2
= 0.0020
Table 5. Factors Affecting Firms‘ Survival
Effects of variables on sırvival probabilities of firms are respresented in Table 5. Accordingly, DVSF,
IGRWTH, LCT and PTNT variables has significant effects. The mos striking result is that PTNT variable has
significant and negative effect. But, only four firms has patent application and even more these firms has exited.
ThereforePTNT is not a robust variable with which we could observe the concrete effects of the patent ectivities
of the firms on their survival opportunities.

Conclusion
There are a lot of factors which affect the performance of the companies. The majority of factors are
stochastic such as war, natural disasters, change of government, fluctuations in the stock market etc. In this
study, the systematic factors which are thought as having an impact in the process of firms survival and the
direction of these affects are investigated. The factors including firm, industry, innovation and human capital that
affect the performance of firms operating in Lake District are identified by econometric analysis.
The results obtaining from emprical analysis clearly demonstrate that new and small-scale firms‘
importance. The results show that generally firms in the region continue their activities, and grow under the

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traditional factors. Survival results related to literature do not show very large differences. Source of the
differences is the variables which do not show significance in the Lake District sample set. Generally, opening
branches for going to path differentiation are usually carried out by large firms. However, a large part of the
firms going to path differentiation in Lake Region are consisting of small and medium sized firms. This case is
one of the important difference that shows small and junior firms in the region perform better.

References
Acs, Z.J., &amp; Armington, C. (2006). Entrepreneurship, Geography and American Economic Growth. Cambridge University
Press, Cambridge, p.45.
Agarwal,R., &amp; Gort, M. Firm and Industry Attributes as Determinants of Survival. JEL:O30, L20, p.2.
Bercovitz,J., &amp; Mitchell, W. (2007) When is More Better? The Impact of Business Sale and Scope on Long Term Business
Survival, While Controlling for Profitability. Strategic Management Journal, Vol.28, 61-79.
Geroski,P., (1995). What Do We Know about Entry?. International Journal of Industrial Organisation, Vol. 13, 421-440.
Gimeno J., T.B. Folta, A.C. Cooper, &amp; Woo, C.Y. (1997) Survival of the Fittest? Entrepreneurial Human Capital and the
Persistence of Underperforming Firms. Administrative Science Quarterly, 42 (4), p.756.
Nelson T., (2003). The Persistence of Founder Influence: Management, Ownership and Performance Effects at Initial Public
Offering. Strategic Management Journal, Vol. 24, p.707.
Pe‘er, A., &amp; Vertinsky, I. (2006). The Survival Value of Clusters for De Novo Entrants. Academy of Management Best
Conference Paper, 2006, BPS:N1, p.1.
Perez,S.E., A.S. Llopis, &amp; Llopis, J.A.S. (2004) The Determinants of Survival of Spanish Manufacturing Firms. Review of
Industrial Organization, Vol.25, p.251.
Santarelli E., &amp; Vivarelli, M. Entrepreneurship and the Process of Firms‘ Entry, Survival and Growth. Industrial and
Corporate Change, 16 (3), 461-463.
Stinchcombe, A. L., (1965) Social Structure and Organizations. in J. G. March, ed., Handbook of Organizations. Chicago:
Rand-McNally, 142-193.
Van Praag, C.M. (2002). Business Survival and Success of Young Small Business Owners. Small Business Economics, 21
(1), p.3.

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KARAÖZ, Murat
GÖVDERE, Bekir
CAN, Muhlis</text>
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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Comparison of Islamic, Traditional and Alternative Utility Theories
Sümeyye DEMĠRSOY
International University of Sarajevo
Bosnia and Herzegovina
Mehmet CAN
International University of Sarajevo
Bosnia and Herzegovina
mcan@ius.edu.ba

Abstract: Decision making under uncertainty is always trying to be explained by utility
theory. And utility theory‘s roots rely on moral philosophy. Moral philosophy is
concerning concepts about good and bad, right and wrong, virtue, justice, etc. It can be say
that utilitarianism, which is a field of moral philosophy, is more directly about utility
theory. Throughout the human history, from Prophet Abraham to Greek philosophers;
Socrates, Aristotle, Epicurus, to Islam scholars al Kindi, al-Farabi, al-Razi, Ibn-i Sina, Ibni Rushd, Ibn-i Haldun, all discussed about ethics and utility concept.

1. Introduction
Although utility is an economic term which measures the satisfaction or desirability in terms of the
consumption of goods and services, its roots rely on moral philosophy which deals with the concepts about good and
bad, right and wrong, virtue, justice, and happiness. On the other hand, concepts of good and bad, right and wrong,
virtue, justice, and happiness was constituents of ethichs throughout history of humanity.
Human concepts like good and bad, right and wrong, virtue, justice, and happiness were the concern of
human civilizations through millenniums. Historically the foundations of human ethics are laid by divine revaliations
through prophets.
Muslims identify the prophets of Islam as those humans chosen by Allah to teach mankind. Humans may
rely on revelation or tradition to identify prophets. Each prophet brought the same basic ideas of ethics. They brought
the belief in a single God and in the avoidance of idolatry and sin.
Muslims regard Adam as the first prophet and Muhammad as the last. Islamic theology recognises as many
as 124,000 prophets. The Qur'an identifies 25 prophets by name, starting with Adam and ending with Muhammad.
Five of them, Rasuls, receive the highest reverence for their perseverance, Ibrahim (Abraham), Moosa (Moses),
Dawud (David), Isa (Jesus), and Muhammad.

1.1 Prophet Ibrahim (Abraham)
Ibrahim was born in a house of idolaters, in the kingdom of Babylon. He announced to his people: O my
people I turned my face towards Him Who created the heavens and the earth, and never shall I give partners to Allah.
He has the power to make the stars rise and set.

1.2 Prophet Musa (Moses)
Musa the son of Imran, was born in Egypt in which at that time the kings were known as Fir‘awns. First
statement about working ethics in Torah is in Genesis part. ―In the sweat of thy face shalt thou eat bread, till thou
return unto the ground; for out of it wast thou taken: for dust thou art, and unto dust shalt thou return.‖ (Torah,
Genesis 3/19)
In Torah it is suggested to respect neighbour rights and to behave in good way to them: ―When thou dost
lend thy brother any thing, thou shalt not go into his house to fetch his pledge. Thou shalt stand abroad, and the man
to whom thou dost lend shall bring out the pledge abroad unto thee. And if the man be poor, thou shalt not sleep with
his pledge: In any case thou shalt deliver him the pledge again when the sun goeth down, that he may sleep in his

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own raiment, and bless thee: and it shall be righteousness unto thee before the Lord thy God."(Torah, Deureronomy
24/10-13)
Another statement about poor is as following and in this statement Torah mentioning about living together
with brothers: ―And if thy brother be waxen poor, and fallen in decay with thee; then thou shalt relieve him: yea,
though he be a stranger, or a sojourner; that he may live with thee. Take thou no usury of him, or increase: but fear
thy God; that thy brother may live with thee.‖ (Torah, Levitucus 25/35-36)
―If thou lend money to any of my people that is poor by thee, thou shalt not be to him as an usurer, neither
shalt thou lay upon him usury. If thou at all take thy neighbor's raiment to pledge, thou shalt deliver it unto him by
that the sun goeth down: For that is his covering only, it is his raiment for his skin: wherein shall he sleep? and it
shall come to pass, when he crieth unto me, that I will hear; for I am gracious.‖ (Torah, Exodus, 22/25-27)
―And when ye reap the harvest of your land, thou shalt not wholly reap the corners of thy field, neither shalt
thou gather the gleanings of thy harvest. And thou shalt not glean thy vineyard, neither shalt thou gather every grape
of thy vineyard; thou shalt leave them for the poor and stranger: I am the LORD your God.‖ (Torah, Levitucus 19/910)
―And if thy brother be waxen poor, and fallen in decay with thee; then thou shalt relieve him: yea, though
he be a stranger, or a sojourner; that he may live with thee.‖ (Torah, Levitucus 25/35)

1.3 Prophet Dawud (David)
Dawud (David) was not only an illustrious Prophet of the Israelites but he was also their king. The Holy
Qur'an affirms: "And Allah gave him the kingdom! and wisdom and taught him of that which He willed." (2: 251).
And it was said unto him: ― 0' Dawud!To! We have set you as a vicegerent in the earth, therefore, judge aright
between mankind and follow not desire." (38:26)
He lived in Bait-ul-Lahm which was situated at the distance of ten miles from Jerusalem. He prayed: "Our Lord!
Pour out constancy on us and make our steps firm and help us against those who are disbelievers." (2:249)
Allah revealed the Zabur (Book of Psalms) to Prophet Dawud. It contains lessons for the guidance of his people.

1.4 Buddha
The evidence of the early texts suggests that the Buddha was born in a community that was on the
periphery, both geographically and culturally, of fifth century BCE northeast India. This community seems to have
had two categories of people, masters and servants.
The Four Noble Truths of Budhism:
1.
2.

3.
4.

Life as we know it ultimately is or leads to suffering/uneasiness (dukkha) in one way or another.
Suffering is caused by craving. This is often expressed as a deluded clinging to a certain sense of existence,
to selfhood, or to the things or phenomena that we consider the cause of happiness or unhappiness. Craving
also has its negative aspect, i.e. one craves that a certain state of affairs not exist.
Suffering ends when craving ends. This is achieved by eliminating delusion, thereby reaching a liberated
state of Enlightenment (bodhi);
Reaching this liberated state is achieved by following the path laid out by the Buddha.

2. The Greek Philosophers
For ancient Greek philosophers the question ‗how should I live?‘ took a fundamentally prudential or selfregarding form. It amounted for them an inquiry searching how a man could secure his own happiness, fulfilment or
perfection. Benevolence, altruism, philanthropy, a concern for happiness of others occupied a secondary position in
their ethical recommendations. It is conceived as a condition of self-realisation of the individual. In general Greek
philosophers, Plato and Aristotle in particular, found a place for restricted benevolence by emphasising the role of
friendship in a fully satisfying life. Aristo somewhat made a disdainful liberality part of his conception of the
ethically ideal or ‗magnanimous‘ man.
It can be said that utilitarianism, which is a field of moral philosophy, is more directly about utility theory.
Utilitarianism can be understood as a movement for legal, political and social reform that flourished in the nineteenth
century. It can also be understood as the ideology of that movement. It is also a general ethical theory. As a theory of

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ethics, it provides a criterion for distinguishing between the right and wrong action, an account of nature of the moral
judgements that characterise action as right and wrong.
Utilitarianism can be expressed as the combination of two principles: (i) the consequentialist principle that
the rightness, or wrongness of an action is determined by the goodness, or badness of the results that flow from it and
(ii) the hedonist principle that the only thing that is good in itself is pleasure and the only thing bad in itself is pain.
The doctrine can be expressed in the form of a single principle, the greatest happiness principle: the rigthness of an
action is determined by its contribution to the happiness of everyone affected by it. (Quinton, 1973).
Greek moralists unreflectively assumed a consequentialist position in developing their more or less
prudential life-styles. The only way in which they conceived it to be possible to justify a type of conduct was by
reference to the results to which it gave rise (Quinton, 1973).

2.1

Socrates (BC 470-399)

Socrates' ethical intellectualism has an eudaemological character in which he asserted that the highest good
for any human being is happiness. According to Socrates, people‘s true happiness is promoted by doing what is right.
When people‘s true utility is served (tending own soul), people are achieving happiness. Happiness is evident from
the long-term effect on the soul.
According to him, whatever action a man chooses is motivated by his desire for happiness. All the concepts
like knowledge, virtue, and wisdom are the same and man chooses an action according to what he thinks will bring
him the greatest happiness. Therefore the more a man knows, the greater his ability to reason out the correct choice
and the greater his ability to choose those actions which truly bring happiness to him.
According to Socrates, to answer the question ‗what is happiness‘, the first question should be asked to an
individual by himself: If all his needs were completed, or he had enough power to do anything, would he really be
happy? When individual observe and attract attention to him, even all these needs mentioned above are completed,
he sees that he is not happy enough. On the contrary he sees that he witnessed many disappointments, only when he
is in harmony with himself he will really be happy. People who are not in harmony with themselves never be happy
properly.
Socrates believes that psychic harmony is the greatest good, and that the result of it is moral behavior. He
also believes that if you have a healthy body and soul then you are in psychic harmony with yourself. In the ideal
soul, the reasoning part and the feelings (desires for honour) rule over the appetitive part (desires for wealth, food,
etc). A properly ordered soul experiences a sense of well-being or psychological health. Thus, psychological health is
something distinct from psychological stability since it depends on psychic harmony.
According to Socrates, immoral behavior is a result of an unbalanced personality and leads people to
irrational behavior. Psychic harmony is a psychological condition and makes someone moral and this harmony has
no motivation. Moral behavior comes from people‘s own beliefs and desires. If one is bad or unjust in the social
sense it is because of his sensuality, greed, or vanity. According to Socrates where there is psychic harmony, the
motives for injustice in the social sense will be eliminated.
Socrates did not surpass the prejudice of Greek intellectualism in ethics. It is enough to know virtue in order
to be virtuous. Everyone wishes to be happy and if someone does not attain happiness, it is because he does not know
the way that leads to happiness. Consequently, so-called evil men are in reality only ignorant. Thus, vice is
synonymous with ignorance, so knowledge of the good is synonymous with virtue. That is why Socrates, who
intended to form a virtuous youth, restricted his teaching to the search for moral concepts.
The foundations of Socratic system of ethics can be summarised as;
i.
a choice is rational if and only if it is a choice of what is best for the agent
ii.
something is good for an agent if and only if it is morally right.
The cornerstone of Socratic ethics is the self-interested concern for happiness, that is, one's own good. But
this concern requires that we act in accordance with what is just and noble, that is the moral good. The identity of
one's own good with the moral good is the basis for specific Socratic foundations. Socrates shows in the book
Gorgias that one's own good coincides almost completely with the moral good, since the utility of nonmoral goods,
for example, wealth, depends on the possession of moral excellence.
According to Socrates, the content of goodness/benevolence covers utility and pleasure. That is why some
of the historians of ethics assume that Socrates is Epicurean, so he is utilitarian. However, pleasure, which Socrates
implies, is not harmfull to intellect and soul. Here intellect has a role of being informative and determinant. Thus
Socrates‘ pleasure is under control of intellect. And also Socrates‘ utility view is not individualistic, but public.

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2.2

School of Cyrene – Aristippus (BC 435-366)

Cyrene school of philosophy is a kind of discipline of Socrates, founded in the 5th century by Aristippus.
He was a hedonist and urging the pre-eminent claims of bodily pleasure as an end.
This philosopher explains his thought, which he starts with a question ‗what is a happy life‘, by answering
‗life, which has as much as possible pleasure and as little as possible suffering, is a happy life‘. To make life happy,
someone should include as much as possible pleasure and as little as possible suffering to his/her life. For to do this,
he/she should decrease needs, so it will be adjusted to life with limited needs. So by doing with limited needs, it can
be benefited from all pleasures of life.
Aristippus teaches us kind of a life art that should be lived wisely. And this art can be gained by giving up
desires which make people slaves of themselves. Thus, school of Cyrene derived hedonism from Socrates‘
eudaimonism. Later on, school of Cyrene‘s this hedonism concept was accepted by Epicurus (Aster, 2005)

2.3

School of Cynicism – Antisthenes (BC 455-365)

Antisthenes, who outlined the themes of the school, is the first philosopher of school of cynicism. He had
been a pupil of Socrates in the late 5th century BC. Antisthenes has severe discussions to Aristippus‘ pleasure
assumption.
According to Antisthenes, people should look for real happiness in desire of freedom and liberty inside.
People, who reach to real happiness, know how to stay insensitive and disregarding in relation to either pleasure or
suffering. This staying indifferent in relation to pleasure or suffering brings freedom from inside.

2.4

Plato (BC 427-347)

Plato, founder of Academy in Athens, is a classical Greek philosopher. His mentor was Socrates and his
student was Aristotle. According to Plato, nothing is fine without moderation, and the thing which is pleasant
becomes as pleasant with this moderation. He also mentiones about moderation in between organic pleasures and
intellectual benevolence.
Unlike Aristotle‘s developed concept of happiness (will be mentioned below), Plato‘s happiness concept is
more obscure. According to Plato, the Good is the source of intelligibility. He asserted that the highest goal in all of
education is knowledge of the Good. According to him, human beings aim at the good, nobody voluntarily chooses
evil.
Plato thinks that the masses are incapable of grasping the truth. He illustrated this in his the allegory of the
cave where Plato suggests that the masses cannot see the truth directly but they are satisfied with an illusion of
reality. According to Plato, the good is the source of intelligibility and happiness is the attainment of intelligibility.
Thus, Plato describes his happiness concepts as the goal of life.
There is an important difference between Socratics and Plato. Both Aristippus and Antisthenes are
individualists. For both of them, origin is individual. Both of them don‘t deal with super-individual fact as state,
history, society. If people want to be really happy, they should be on their own, they should not depend on other
people. In this point, Plato has disagreement with his other two schoolmates. According to Plato, people never be on
their own but always live with other people. If we isolate an individual from the society he lives in, we exclude him
from his own resources. Moreover, the institution called ‗state‘ is like a human. What condition social entire is in,
individual lives in the same condition. Thus to understand human being, it should be looked into the state which he
lives. Therefore Plato rejects Socratics‘ (Aristippus and Antisthenes) thoughts. Although they seem like the followers
of Socrates, Plato thinks that they are not thinking in similar perspective. According to Plato, contrary to Aristippus
and Antisthenes‘ individualistic tendency, Socrates did not only show his skillfulness about living, but he also
became the first example of moral principle which took socialization as a base (Aster, 2005).

2.5

Aristotle (BC 384-322)

Aristotle is a Greek philosopher who is student of Plato and teacher of Alexander the Great. His teaching
about virtue and ethics is set forth in his Nicomachean Ethics.
Greek philosophy accepts that human life‘s main purpose is ‗happiness‘. However they differentiate from each other
about ‗what is happiness‘. Aristotelian method is different from others because, according to him, each existence has

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its own activity. Knowing specific activity of human shows us that what kind of an objective this human wants to
reach. So it will be learned what is the ‗real happiness‘.
According to Aristotle, happiness (eudaimonia) is an activity of the soul in accordance with virtue and it is
the highest of all goods. Happiness is the first principle and cause of all goods and it is a self-sufficient activity
always chosen for itself. Unlike other virtues, happiness is the only thing chosen only for itself and not for the sake
of other things. Aristotle believes that amusement is not self sufficient like happiness and he distinguished between
the life of amusement and the happy life.
Aristotle proposes two possible paths to happiness as a life of virtuous activity and a life of theoria and asks
which of the two is the best. The former path defines happiness as a practical vitue and in need of external goods.
And the latter path theoria is contemplation of eternal truths for an entire lifetime which is the highest activity of
reason. Aristotle chooses theoria. Becuase the life of practical virtue achieves happiness in a lesser sense because of
the necessity of material goods in this life and the life of the theoria limits the need for material goods and perfect
happiness (eudaimonia) is enjoyed by the Gods.
According to Aristotle, human being is rational as his nature. If a rational man behaves rationally and
moderate, he will be behaved parallelly to his nature. ‗Thinking‘ and ‗knowing‘ are human‘s highest activities. But
what can be ratio/intellect‘s activity in practical life? Each of the virtues is a state of being that naturally seeks its
mean. All virtues are in between of two extremes, virtues are means of the two extremes. This mean is not
mathematical but it is a border which can be found by ratio/intellect. The virtuous habit of action is always an
intermediate state between the opposed vices of excess and deficiency. For example; with respect to the enjoyment
of pleasures, temperance (sophrosúnê) is a mean between the excess of intemperance and the deficiency of
insensibility. Greek thought always searches for harmony and moderation, dislikes extremes. Aristotle is an opposer
to all kind of extremes, too. Thus, Aristotle is against the thoughts that reject possessions like Cynics. Aristotle
emphasizes on possessions‘ relative values. By using them moderately, they can bring even sense and value. One
another thought of Aristotle is not to ignore desires and urges totally, they should not be ignored totally, but to keep
them down by ratio.
According to Aristotle, there is no direct connection between good/benevolence and pleasure. These three
points should be taken into account: First pleasure is not main principle for a moral life, second pleasure occurs as a
result of an action which targets virtue. And third virtue is in the action which results in pleasure.

2.6

Epicurus (BC 341-271)

Two more schools joined to the list of schools of philosophy in about BC 300s. One is school of Stoa and
the other one is Epicureanism that took its name from the founder Epicurus. These two schools have contradictory
opinions about life and knowledge.
As it is mentioned in former parts of this work, school of Cynicism and Cyrene have contradictory opinions
about ethics, too. According to Cynics, it is important to exert perfect dominance on desires. After Cynics, we see
some similar thoughts are repeated by Stoa. It is virtuous to exert dominance on excitements, desires because virtue
gives us staying apathetic to life and death. School of Cyrene perceives life‘s real purpose as catching pleasure and
escaping from pain. Kind of a dissidence, like between Cynics and Cyrenes, later on was seen in between Stoa and
Epicureanism.
These two schools, Stoa and Epicureanism, sustained their existence by keeping alive dispute among them.
However at the same time they have some similar or common opinions. The first point they agree is that human
being is subject of philosophy. First they draw portraits of ‗superman‘. However all these ‗superman‘ concepts were
interpreted differently. For Stoa school, superman is man who beats demands and desires, knows to disregard to both
life and death. They show apathy (lack of interest or concern) as a purpose to human. On the other hand
Epicureanism finds its purpose on ataraxie (freedom from worry). However it can be noticed that there is no big
difference between ataraxie and apathy.
According to Stoa school, first principle is people‘s need to understand that they are organs of the unity
called world. Second principle is people‘s need to know their own stand in the world and so to adopt themselves to
destiny which is chosen for themselves. However Epicurus thinks that world processes with respect to blind and
spontaneous necessity. If people‘s destinty is determined by coincidences which can not be seen before, then they
can have interest in products which are their own will-power. Thus, people will stay disregard in respect to life and
death and by behaving rationally they will know how to distinguish things which give happiness.
Epicurus adopted the principle to attain pleasure and to escape from pain in ethics. But human should do
this wisely. He should avoid from intense pleasures which bring pain at last. Human should not interest in anything
more than its necessity because extremes cause to pain. People should know to keep away from temporary and

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specious values such as fine and glory. Temporary values always direct people to more, and this more never ends,
that is why people always stay in unrest. Thus, people should be interested in ―moral pleasures‖ which won‘t cause
to dissatisfaction. According to Epicurus, for to be happy, it is necessary to live moderate, to tend pleasures which
are moral, and to behave in accordance with all these.
Epicurus established his school in Athens in 306 BC. In the surviving writings of Epicurus, there is little of
direct relevance to the connection between utility and justice. However, virtue including justice, was not intended to
limit pleasure. According to Bailey (Bailey 1928) Epicureanism is ‗a system of uncompromising egoistic hedonism‘.
Scarre (Scarre 1994) put it, ‗just as the Epicurean community practiced economic self-sufficiency within the walls of
its garden, the Epicurean man cultivates an inner self-sufficiency, a contentment in his own physical and mental
states and a suppression of unnecessary desires‘. The only perfect pleasure was a condition of ataraxie where one
lives quietly in bodily health and with little physical and psychological distress. (Rosen, 2003).
Although none of the pleasure is bad, some (involving less pain) are purer than others. Epicurus made
connection between pleasure and health, pain and disease. All pleasures were good in the sense that health was good,
even though some pleasures were mixed. If health was good, with disease of body or soul it becomes greatest evil.
In Epicureanism the greatest pleasure was defined by the removal of all pain, and hence the Epicurean lived
quietly and peacefully in the real or metaphorical Garden (Rosen, 2003). The important virtue for Epicurus was
prudence, and a considerable emphasis was placed on the egoistic pleasures connected with friendship. On the other
hand, little attention was given to social values and instincts.
When it comes to ‗justice‘ in Epicurus‘ system, it can be said that ‗justice‘ means achieving security from
the attacks of other people. Epicurus‘ state on a conception of justice is that; a pledge of mutual advantage to restain
men from harming one another and save them from being harmed (Epicurus,1926). At another point, Epicurus wrote
about justice in terms of being of advantage in the requirements of men‘s dealings with one another (Epicurus,
1926). Epicurus used here a Greek phrase, ‗sumpherei en tais chreiais‘, for ‗advantage in the requirements‘. Rosen
claims that Greek noun, ‗chreia‘, also possessed a range of meanings and might be translated as ‗need‘, ‗use‘ or
‗utility‘.
For all societies in which to make compacts not to harm one another is not possible, nothing was either just
or unjust. Although justice was applied potentially to all requiring, where contracts for one should not harm others,
such a justice might be applied differently in different societies and under different circumstances. Where a law,
which was previously considered, just, had no longer had usefulness or secured advantage, there was no longer just
(Epicurus, 1926). According to Alberti (Alberti 1995) ‗justice is the realization of utility by means of a contract‘. The
emphasis on utility allows for the separation of law from justice by rejecting the view found in Plato and Aristotle,
that all law is just. And emphasis on utility leads to a notion of justice which is different from nomos (legal justice)
and physis (natural justice) (Rosen, 2003).
Justice was an invention of the wise for their own good. Epicurus summed up matters with brutal directness
and claimed that the laws exist for the sake of the wise, not that they may not do wrong, but that they may not suffer
it (Bailey,1928). Law and justice were matters of convenience which the wise person devised and approved.
Epicurus had no reason to make justice a positive part of the human condition except enabling people to obtain
‗peace of soul‘ (DeWitt, 1954). ―It represented a painful burden, and in its application as punishment justice could be
extremely painful. All that could recommend it was its utility to the wise. Other members of society might have less
invested in justice, as they were not cultivating their gardens as were Epicureans, and might well gain less from rules
concerning not harming others. However, so long as they accepted the compact, they would be assisting themselves,
as well as not harming the wise in society.‖(Rosen, 2003).

3. Medieval Times Islam Philosophers
In the seventh century, translation movements from Greek to Arabic language started and in the time of
Caliph al-Mansur this movements reached its peak. The study of Islamic ethics began to take shape in the third
century of Islam‘s emerge, with the influences from Greek ethics including Stoicism, Platonism and Aristotelianism.
Al-Kindi, the first philosopher of Islam, influenced by Socrates and Diogenes the Cynic as seen in his ethical
writings. Other influences can be seen in the work of Platonists such as Abu Bakr al-Razi or Neoplatonists such as
al-Farabi, Aristotelian influences can be seen in the works of al-Farabi, Ibn Sina and Ibn Rushd.

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3.1 Al-Kindi (d.873)
Abu Yusuf Ya‘qub ibn Ishaq al-Kindi (d.873) was the first philosopher of Islam and also the first author on
philosophical ethics. In Baghdad, al-Kindi was involved in the scientific movement of the translation of Greek texts
into Arabic. His starting point was Greek philosophy and he is reported by the classical bibliographers that he has a
number of ethical treatises reflecting an interest in Socratic and Cynic thought.
In al-Kindi‘s writings, the personalities of Socrates and Diogenes the Cynic are united and both emerge as
ideal instances of virtue and asceticism (Fakhry, 1998). Moreover, the Stoic idea of apatheia (freedom from passion)
and the indifference to the vicissitudes of fortune are set out in fluent terms. According to al-Kindi, the antidote of
pain is to consider that pain results either from our actions of from doing the actions of others. In the former case, it
is individual‘s duty to avoid from doing which is the cause of pain. In the latter case, averting the pain is either in our
power or it is not. If it is in our power then we certainly ought to avert it, if it is not, we should not suffer at the
prospect of injury with the hope that it might somehow be turned away. The suggestion, to avoid material
possessions as temporary acquisitions, reflects the influences of the Stoic philosophers.

3.2

Abu Bakr al-Razi (d. 925)

Another philosopher Abu Bakr al-Razi (d. 925), who is influenced by Plato, refers to Plato as ‗the master of
the philosophers and their leader‘ and to Socrates as ‗the ascetic and spritual‘ sage in his book al-Tibb al-Ruhani
(The Spiritual Physic).
A Socratic-Platonic theme which takes place in al-Razi‘s writings is the foolishness of the hedonistic life
which turns man into a slave. People‘s many of pleasures are temporary and unattainable and people are attacked by
anxiety or pain. But according to al-Razi, true philosopher will not succumb to pain, because philosopher
understands that nothing is permanent in this world. And that whatever cannot be turned away should be ignored,
since it is the product of passion and not of reason. al-Razi says in his book al-Falsafiya that: 'For reason summons us
only to what is susceptible of bringing about profit sooner or later; grief does not bring any advantage... That is why
the perfectly rational man will only follow the summons of reason ... and will never follow the summons of passion
or allow himself to be led by it or get close to it.
Like Socrates and Plato, al-Razi believes that the soul, leaving the body, will return to its original residence
in the intelligible world, after passing through an endless cycle of purifications. Death is a logical consequence of our
being human and essential part of the definition of man. However, al-Razi adds another argument which derives
from Epicurus that death is the deprivation of sensation and with his death man will be stripped of the sensations of
pleasure and pain. Thus this is a better condition than living in pain. That is why 'according to the judgment of reason
the condition of death is better than the condition of life' (Rasa‘il al-Razi al-Falsafiya).

3.3

Al-Farabi (d. 951)

Abu Nasr al-Farabi (d. 951) was known as the ―second master‖ (muallim-i sani) amongst his peers,
Aristotle being the first (muallim-i evvel). Al-Farabi was the first systematic writer on philosophical questions in
Islam. He also contributed to ethical discussions and wrote a commentary on some parts of the Nicomachean Ethics
which is translated into Arabic by Ishaq bin Hunayn.
Al-Farabi follows Aristotle in ethics like dividing the virtues into moral and intellectual (Fakhry, 1998).
According to him, moral virtues are perfections of the lustful part of the soul whereas perfections of the intellectual
part are practical reasoning, good judgement, wisdom and sound understanding. Al-Farabi also follows Aristotle‘s
arguments about justice which consists in the equitable distribution of ‗common goods‘ in the city or in the state.
Every member of city or state is entitled to share this ‗common goods‘ such as security, wealth, dignity, public
office, etc.
Al-Farabi deflects from Aristotle and other Greek phlosophers believing in the life hereafter in Qor‘anic
way. Accoring to al-Farabi, nations and citizens of cities attain happiness, worldly in here and supreme in the life
hereafter, when four human needs are met. These are; theoretical virtues, deliberative virtues, moral virtues and
practical arts. Worldly happiness is necessary for the attainment of supreme happiness in the hereafter. According to
him, happiness is the absolute good and achieving happiness is the purpose of life. Whenever the soul of the person
reaches perfection, then happiness is achieved. According to al-Farabi, if individual‘s desire for happiness is weak
and he/she has other purposes in his/her life, then the result will be evil.

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Theoretical virtues, the first one of the four themes mentioned above, consist of the sciences. The purpose is
to have understanding of all the beings on these sciences. Deliberative virtues are voluntary intelligibles that vary
across time and place such as events occuring accidentally or willingly, such as disasters or war. An individual
cannot possess deliberative virtue without possessing moral virtue. A person has to have virtuous moral character
who wishes the good for himself/herself or for others. And according to al-Farabi, theoretical virtues, deliberative
virtues, moral virtues and practical arts are all inseparable.
The his famous work al-Madina al-Fadila (virtuous city), in which people cooperate and help each other for
the purpose of attaining happiness, al-Farabi reflects again his devotion to Islamic utility perception. To him, on the
other hand, non-virtuous city is the city whose people do not know happiness. Al-Farabi discussed these two cities‘
souls of the citizens and he believed that the souls of the citizens of the virtuous city are immortal. However, the
souls of the citizens of the ignorant city are mortal and their destiny is to suffer. As a result, al-Farabi believed that
political association should be directed towards the attainment of happiness.
Generally, it can be said that al-Farabi was greatly influenced by both Aristotle and Plato in his philosophy
and his concept of happiness particularly. On the other hand, his thought was framed by Islam. He selected portions
from each of these three different influences to form a complete description of happiness. So his concept of
happiness is a product of his understanding of Greek philosophy and Islam. With his concept of happiness, he
combines Plato‘s concept of the good, Aristotle‘s concept of eudaimonia (happiness) and Islamic concept of Jihad Al
nafs (struggle of the soul).
Plato and Aristotle‘s concepts were given above. On the other hand, the Islamic concept of Jihad Al nafs
means the struggle of the soul. According to Islam, God created man to achieve bliss (happiness) in the next life
through a clearly defined struggle in this life called Jihad. By the Quranic definition, ―And whosoever strives
(jahada), strives (yujahidu) only for himself. Surely Allah is self sufficient, above need of His creatures.‖ (Quran
29:6). The person who struggles with turning his inner self into a new way of living that understands the true reality
where material is only a small portion.

3.4

Ibn Sina (Avicenna) (d. 980)

Ibn Sina (Avicenna) (d. 980) is one of the foremost philosophers in the Medieval Hellenistic Islamic
tradition and one of the most important practitioners of philosophy. He exercised a strong influence over the other
Islamic philosophers and medieval Europe as well. Al-Farabi‘s successor Ibn Sina is the author of a very short tract
on ethics and he follows closely the Platonic model in psychology.
Ibn Sina speaks about the laws which are needed to be laid down as the moral habits (akhlaq) and traits
(adat) which lead to justice. He divides the soul into different parts like rational, irascible, and concupiscent which
correspond to the virtues of wisdom, courage and temperance respectively. Finally justice is the ‗summation‘ of all
these three. According to Ibn Sina, enforcement of justice within the state (with the existence of caliph) is necessary
as the sovereign of the world and God‘s vicegerent on earth. The virtues of temperance, courage, and wisdom are for
the well-being of human beings in this world. They can be followed adequately without theoretical wisdom. Ibn Sina
presents theoretical wisdom as being so important that one can attain happiness only by acquiring it as well as these
three virtues, all of which add up to justice. Ibn Sina distinguishes himself from Farabi by insisting on the possibility
of acquiring temperance, courage, and practical wisdom-or justice-without possessing theoretical wisdom. In other
words, unlike Farabi, Ibn Sina does not perceive all the virtues to be intellectual or to be grounded in sound
intellectual understanding.
Make separation between the practical virtue and the theoretical virtue does not fully account for Ibn Sina's
moral teaching. From what appears in his treatises that moral habits are directed to the liberation of the soul from the
body. Thus they serve the ultimate goal of theoretical virtue, that is the soul achieving a free perception of God and
the divine intelligences. It is not clear, however, how the moral habits lead to justice. The only explanation that
comes to mind is that insofar as some human beings center their thoughts and activities on other worldly concerns.
Ibn Sina differs here from al-Farabi too since he starts with the basic human needs and ascends from them to the
larger issue of law- giving and providing for justice. On the other hand, Al-Farabi begins by thinking about ultimate
human happiness. Ultimate human happiness is about the highest ends of human beings rather than their humblest
beginnings or it is about their noble concerns rather than about their basic needs.

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3.5

Ibn Rushd (Averroes) (d. 1198)

Ibn Rushd (Averroes) (d. 1198) is regarded as one of the important Islamic philosophers. He set out to
integrate Aristotelian philosophy with the Islamic thought in the twelfth-century of Islamic Spain. He produced
commentaries on Aristotle‘s Nicomachean Ethics and also Plato‘s Republic which is relevant to his ethical theory as
well.
According to Ibn Rushd, the principal virtues correspond to the perfection of the three parts of the soul are
the rational, the irascible, and the concupiscent. Then he describes justice along Platonic lines as the ‗harmony‘ of
the three corresponding virtues of wisdom, courage and temperance. As Aristotle stated in the Nicomachean Ethics,
it has two subdivisions which are common or universal, corresponding to ‗perfect virtue‘, and particular. However,
Ibn Rushd does not identify happiness with the contemplative life, but rather with conjunction (ittisal) to the active
intellect, which the Muslim Neoplatonists had regarded as man‘s ultimate goal.
In Muslim thought, everything they need to know about moral behaviour is encapsulated in Islam.
However, Ibn Rushd argued that a distinction should be drawn between moral notions and divine commands and
here he follows an Aristotelian approach (Leaman). According to Ibn Rushd, the answer of question ―what is the
purpose of a human being?‖ is that; one of the ultimate aims is to be happy and to avoid actions which lead to
unhappiness. Moral virtue leads to happiness. If people do what they should do in accordance with their nature,
people will be able to achieve happiness. This happiness may be interpreted as a mixture of social and religious
activities or as an entirely intellectual ideal. However, neither religion nor philosophy would approve of entirely
intellectual ideal as the ultimate aim for the majority of the community. It is possible for someone that he/she would
try to live apart from the community with concentrating entirely on intellectual pursuits, but this way of living is
inferior to a life in which there is a concentration upon intellectual thought but combined with integration within the
practices of a particular society.
Ibn Rushd, inspite of working within an Islamic context, does not identify happiness and misery with some
aspect of the afterlife since he was unable to accept the traditional view of the afterlife. Here Oliver Leaman, who
has many works about Ibn Rushd, claims that without religious imagery, ordinary believers may find it difficult to
understand that our moral actions affect not only ourselves but the happiness of the whole community, not just at a
particular time or in a particular place but as a species. With our bad behaviours, we damage our own chances of
human flourishing, and this damage affects our personal opportunities for achieving happiness and maturing as
people. It is also resulting to the weakening of society. According to Leaman, while it is possibly true that the misery
of evil-doing may not follow us personally after our death, it may well follow the community. The notion of an
afterlife points to the wider terms of reference in which moral action has life.

3.6

Ibn Khaldun

Another philosopher Ibn Khaldun, who lived in 14th century, centred his economic ideas generally around
the ideas of justice, hardwork, cooperation, moderation and fairness. He emphasises Al-adl (justice) as the bedrock
of the economy, and lack of justice leads to the breakdown of the state. Some of his writings may appear as secular.
For instance; ―Civilisation and its well-being as well as business prosperity depends on production and people‘s
efforts in all directions in their own interest and profit‖ (Muqaddimah, Volume 2). However, Ibn Khaldun insisted
that man must avoid from evils, must improve himself, and must give preference to matters of the next world against
this world (Muqaddimah, Volume 1).
According to Ibn Khaldun, extravagance and luxurious living lead to the destruction of the state. ―Sedentary
people are much concerned with all kinds of pleasure. They are accustomed to luxury and success in worldly
occupations and indulgence in worldly desires. Therefore, their souls are adored with all kinds blameworthy and evil
qualities‖(Muqaddimah, Volume 1, 225).
Another issue Ibn Khaldun emphasises is cooperation. He says that ―the power of the individual human
being is not sufficient for him to obtain the food he needs through cooperation, the needs of a number of persons,
many times greater than their own number can be satisfied‖ (Muqaddimah, Volume 1, 69) ( Ibn Haldun, 1977).
Above the economic philosophy of Ibn Khaldun was mentioned shortly, but, his Muqaddimah covers a
large number of other areas about economy like money, value, market, population, growth, international trade, etc.
When dealing with micro or macro economic issues, he demonstrated perfect competence in generating theories. In
his work, Ibn Khaldun synthesises the ideas learnt from the Qur‘an and Sunnah, and from other sources which were
converted into powerful theories.

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4. Conclusion
Human concepts like good and bad, right and wrong, virtue, justice, and happiness were the concern of
human civilizations through millenniums. Historically the foundations of human ethics are laid by divine revaliations
through prophets. Then Greek phlosophers and Muslim scholars contributed to the theory till the begining of the
modern times.
With the begining of the 20th century industrial society began to transform into information society and risk
and uncertainty became prior and diagnostic feature of human behaviour. And now with these changes new structure
of society is multi-dimensional, more complicated and uncertain. While this theory became accepted and is using in
economics, criticism voices started to become louder. Critics to economics‘ deductive, abstractive and pure
rationalist method focused especially on uncertainty and risk that propelled from that analysis. Among them only one
was seem as an strong alternative to expected utility theory: Prospect theory which was found by Daniel Kahneman
and Amos Tversky in (Kahneman and Tversky 1979). They dealt with utility concept from the cognitive point of
view, Daniel Kahneman and Amos Tversky‘s studies were the earliest studies of human decision-making by
cognitive psychologists. Development of the theory through modern times may be the subject of another work.

References
Alberti, A., (1995). The Epicurean Theory of Law and Justice, in A. Laks and M. Schofield (eds) Justice and Generosity, Studies
in Hellenistic Social and Political Philosophy, Cambridge: Cambridge University Press.
Bailey, C. (1928). The Greek Atomists and Epicurus, Oxford: Clarendon Pres.
DeWitt, N.,W., (1954). Epicurus and his Philosophy, Minneapolis: University of Minnesota Press.
Epicurus, (1926). Epicurus, the Extant Remains, trans. C. Bailey, Oxford: Clarendon Press.
Ibn Haldun, (1977). Mukaddime, Ankara: Onur Yayinlari.
Ibn Khaldun, (1967). An Introduction to History: The Muqaddimah, London: Routledge and Kegan Paul.
Kahneman, D., Tversky A., (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263-291.
Quinton, A., (1973). Utilitarian Ethics, London: Open Court
Rosen, F. (2003). Classical Utilitarianism from Hume to Mill, New York: Routledge
Scarre, G. (1994). Epicurus as Forerunner of Utilitarianism, Utilitas, 6:219-31.

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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

A Research On Consumer Ethnocentrism and Consumer Boycotts
HurĢit Ertuğrul DERE
Afyon Kocatepe University
Sultandağı Vocational School
Turkey
hursitdere@yahoo.com

Abstract: The objective of this study is to investigate the consumer ethnocentric tendency and
consumer boycotts. Participiants who are consumers upper 18 age in 8 different cities of Turkey
formed the sample for this study. For the emprical investigation consumer ethnocentric tendency
and a new improved consumer boycott scales were used. Data collected were analyzed by using
Anova, t-test and descriptive statistical techniques. Considerable findings in the matter of
understanding consumer ethnocentric tendency and consumer boycot in Turkey market.End of this
study it is found that significiant relationship between age and consumer ethnocentric tendency
and significiant relationship between marriage status and consumer boycot tendency.
Keywords: Consumer ethnocentrism, Consumer boycott behaviour, CETSCALE

Introduction
The aim of this study is to examine the correlation between the ethnocentric tendencies of the consumers and
consumer boycott behavior. Consumer ethnocentrism provides emotional perception of the consumers towards
national goods. On the other hand, it is seen that even ethnocentric consumers prefer the cheaper goods even if they
are foreign originated ones when they are comparing the goods in terms of prices which is a rational qualification.
Today, the increase of the competition, transformation of the world into a common market by transportation
and information technologies, and the encountered economical difficulties have
made the consumers more
conscious and caring more about rational factors compared to old days. In fact, even consumer boycotts that are
mostly done with emotional base don‘t last long because of the rational factors. Consumers end the boycott for the
brand, good, or the country when they realize that they will get the maximum benefit from these goods. Although
national goods which are bought as a substitution to the foreign ones, reach a high number of sales income during the
boycott, they have dramatical decreases of sales income when the boycott ends. National manufacturers can have a
constantly increasing sales income if they focus on the issues such as quality development and basing the market,
rather than taking advantage of the cases like these.

Consumer Ethnocentrism
The concept of ethnocentrism means the tendency of the individuals to see their groups as the center of the
universe and judging of the other groups that have cultural differences and blindly acceptance of the groups that are
similar. In this context, the symbols and values of their own group are seen as a resource of pride while the values of
the other groups are scorned. As a result of relating ethnocentrism with the consumer behaviors, the consumer
ethnocentrism has appeared. In general concept, consumer ethnocentrism expresses the effects of consumers‘
national emotions on purchasing intentions. ( Uzkurt &amp; Özmen,2004).
Many scientific researches, mostly foreign, have been conducted about consumer ethnocentrism recently.
In the research which was conducted in 2004 in EskiĢehir by Uzkurt and Özmen, data was obtained by
interviewing the customers who were chosen using convenience sampling method. Analysis has been conducted over
172 surveys in total. As a result of the analysis, the old compared to the young, ones with a lower education level
compared to the higher ones, ones who have lower income compared to the higher ones and married people
compared to the bachelors have higher ethnocentric tendencies.
In the research which is conducted by Güneren and Öztüre (2005) in Cyprus using CETSCALE ( Consumer
Ethnocentric Tendencies Scale), data is obtained from the survey applied to 114 people who were chosen with
convenience sampling method. As a result of the survey, the participants with a high level of ethnocentrism were

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mostly amongst women, people with lower education level and lower income. No remarkable correlation has been
seen with the age of the participants and ethnocentrism.
In the research which was conducted by Orth and Firbasova in 2002 in Brno, the second biggest city of the
Czech Republic, and which was on ethnocentrism and yoghurts produced in Czech Republic, data was obtained
using a survey applied to 297 people who were randomly chosen and four different correlation model were formed.
As a result of the analysis it has been seen that, old consumers who have a high level of ethnocentric tendency, like
Czech yoghurts more than the young costumers who have a lower level of ethnocentric tendency. It makes it hard to
generalize the research that the number of the participants is low and it was only about yoghurt.
Fang Liu and others examined the correlation between the brand names from different languages and
customers‘ ethnocentric tendencies in 2007 in Guangzhou, the capital city of Guandog state in China. As a result of
the research it has been found that there is a remarkable correlation between the ethnocentric tendencies of the
customers and their ages and education levels.
In the research that was conducted by Chakrabarty and Conrad in 1995, a survey was applied on the phone
to 315 people who were chosen randomly. It has been found that ethnocentric tendencies decrease for good quality
products.

Consumer Boycotts
The tendencies of consumers on not buying a brand or none of the brands of a country is called consumer
boycott (Balıkçıoğlu and others, 2008). Consumer boycotts can be divided into various kinds considering the
duration, scope, organization type and reasons to do.
However, it is very difficult to consider a boycott in one class. For example, a boycott that is started because
of political reasons may last for a long time or in contrast it may last for a short time.
According to Balıkçıoğlu and others‘ statements, Friedman (1999) and Smith (2000) divide the consumer
boycotts into four considering their functions. These are: instrumental, expressive, punitive and buycott.
When boycotts in Turkey are examined, it is seen that products of Denmark were boycotted as the last one.
As a result of the publication of Hz. Mohammed‘s cartoons one after the other negatively, not only in Turkey but
also in the whole Islamic World they had confronted with enormous reaction and a boycott towards Danish products
was started. However, the very little trading volume between Turkey and Denmark was resulted this boycott not to
be so effective. Besides this boycott which was done as a result of religious exploitation, Italy and France were
boycotted because of political reasons and enterprises in the public towards boycotting the products of these
countries were started. Just like it was in Denmark sample, the little trading volume between Turkey and these two
countries and employment of thousands of Turkish citizens in Italian and French originated corporations in Turkey
with their national partners resulted these two boycott enterprises to fail.
Besides country boycotts also brand boycotts have been made. Especially in 2005, an organized boycott on
the Internet was started against Danone that is one of the biggest food companies, with messages distributed on the
Internet telling that additional substances that cause mental deficiencies are used in the child-oriented products of
this company and these statements caused dramatical decreases in the sales of the company.
Danone firm, that had great damage because of this case, has started legal process for the responsible ones
who distributed these messages on the Internet and for the next marketing works focused on the message that its
products include no additional substances that may damage human health transmitting it in various medias.

Research Method
In the research data is obtained using a survey. Surveys were applied to consumers who live in eight
different cities by interviewing them. 900 survey copies for consumers who live in 8 different cities were prepared
and 514 of them returned, thus the analysis has been made using these 514 survey copies. The distribution of the
participants according to the cities is given below.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Province
Ġstanbul
Ankara
Ġzmir
Adana
Afyonkarahisar
Konya
Samsun
Gaziantep

Frequency
98
99
85
71
63
49
20
29

%
19.1
19.3
16.5
13.8
12.3
9.5
3.9
5.6

Table 1: The Distribution of the Participants According to the Cities
The survey used in the research has four parts. In the first part the participant‘s city, his/her attitude related
to consumer behaviors and if he/she is a member of any kind of consumer organization or not are asked. In the
second part basing on the February 2008 data of Turkish Statistical Institute (TSI) ten countries are given from
which Turkey imported goods and the participants are asked to state their attitude towards these countries. In this
part a fivefold likert scale has been used and attitudes are listed from (1) the country from which I can buy products
with peace of mind, to (5) the country which must be boycotted the most.
In the third part, five scales, which are in ―I certainly agree‖ and ―I certainly disagree‖ interval, are given for
19 attitude items that are prepared in accordance with likert scale. Six of these items are taken from CESTSCALE
which was developed by Shimp ve Sharma (1987). 10 items are related to consumer boycott and final 3 items are
asked in order to find out the attitudes of the consumers towards foreign goods and EU.
In the fourth part the demographic features of the participants have been tried to evaluate. In addition, it has
been asked the participants how do they defined themselves and whether they had any foreign product on at the
moment when the survey was being applied.

Research Findings
Demographic Structure of the Participants
64.6 % of the participants are male and 31.3 % of the participants a female. According to the 2008 TSI data
male-female rationale is equal in total population but it has been a limit of the study that female rationale is less than
male one. Besides according to the 2007 TSI data, the ratio of the university graduates to the total population is C
(vocational schools+faculties+masters degree and Phd) about 10%. In the sample the rato of the university graduates
is 39.7%. This situation is the other limit of the research.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Demographic Structure
Gender
Male
Female
Marital Status
Married
Single
Widow-divorced
Education
Primary education
High education
University
Age
18-24
25-31
32-40
40-50
51-60
Over 60
Income (YTL)
Below 580
581-800
801-1200
1201-2000
Over 2000 YTL
Occupation
Officer
Laboring
Tradesman
Retired
Self-employed
Housewife
Student

Frequency

Current %

332
161

66,7
32,3

292
190
14

58.9
38.3
2.8

79
221
204

15.7
43.8
40.5

138
102
121
89
43
6

27.7
20.4
24.2
17.8
8.6
1.2

107
84
136
71
42

24.2
19
30.8
16.1
9.5

95
120
72
33
33
21
81

20.9
26.4
15.8
7.3
7.3
4.6
17.8

Table 2: Demographic Structure of the Participants
The World View of the Participants
At the end of the survey it has been asked the participants how they defined themselves and to choose one
option out of six ones. 37% of the participants have defined themselves as patriots.
View
Leftist
Social Democrat
Conservative
Religious
Nationalist
Liberal
None

Frequency
40
92
59
59
183
36
23

%
8.1
18.7
12
12
37.2
7.3
4.6

Table 3: The World View of the Participants.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

67% of the participants have stated that they had foreign products on at the moment of replying the survey.
It has been found out that the most common foreign product that the participants have on is the mobile phone.
Research Findings About Consumer Boycott Behavior
46.5 % of the participants have stated that they had boycotted a country or a brand.
In table 4 that is given below, the product groups that the consumers had boycotted are shown. As a result
of the analysis it has seen that the product group which is boycotted the most is food group with a ratio of 44.7 % and
the least is medical group with a ratio of 2.5%.
Product Group
Food
Confection-textile
Automative
Personal care products
Cleaning products
Whiteware
Newspaper-magazine
Furniture-carpet-home products
Banking-insurance group
Medical Group

Frequency
106
36
21
16
11
13
11
9
8
6

Current %
44.7
15.2
8.9
6.8
4.6
5.5
4.6
3.8
3.4
2.5

Table 4: Boycotted Product Groups.
When the boycott durations are analyzed, 61.3 of the participants have stated that they have been still going
on with the consumer boycotts.
Boycott duration
Below 3 mounths
3-6 mounths
6-12 mounths
1-2 years
Over 2 years
Still going on

Frequency
25
25
19
14
8
144

Current %
10.6
10.6
8.1
6
3.4
61.3

Table 5: Boycott Duration
Boycotted Countries and Brands
With a ratio of 35.7% it has been found out that mostly boycotted country is USA and 39% of the
participants believe USA to be boycotted constantly. Five of the participants have stated that they boycott Turkey.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Country
U.S.A
France
Israel
Italy
China
Russia
England
Denmark
Netherland
Germany
Iran
Turkey
Sweden
Japan

Frequency
74
38
28
16
13
1
4
16
12
6
1
5
1
2

Current %
35.7
18.4
13.5
7.7
6.3
0.5
1.9
7.7
1
2.9
0.5
2.4
0.5
1

Table 6: The Boycotted Countries
It has been found out that the participants boycott 41 different brands. According to the results of the
analysis mostly boycotted brand is Coca-Cola. As Coca-Cola is a food company that belongs to the USA, it is seen
that research findings about the boycotted product group, country and brand are consistent. It has been found out that
11different Turkish brands are boycotted by the participants.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Brand
Coca-Cola
Ariel
Danone
Mc Donalds
Nestle
Nescafe
Rodi
Motorola
Gucci
Ġpek shampoo
Colgate
Bosche
Benetton
Newspaper of Turkey
Ülker
Rosche
Profilo
Adidas
Pınarsüt
Fruko
Leke
Knorr
Converse
Amway
Telefunken
Vestel
Ġstikbal
Avon
Beta
Leman
Newsweek
Peugeot
Renault
Ford
Fiat
Scharzkopf
Siemens
Ġpana
Philips
Toyota
Loreal Paris

Frequency
49
10
5
3
7
2
1
5
1
1
1
1
3
1
1
5
1
1
1
1
2
1
1
2
3
1
1
2
3
1
1
1
4
1
1
2
1
2
1
1
1

Current %
36.6
7.5
3.7
2.2
5.2
1.5
0.7
3.7
0.7
0.7
0.7
0.7
2.2
0.7
0.7
3.7
0.7
0.7
0.7
0.7
1.5
0.7
0.7
1.5
2.2
0.7
0.7
1.5
2.2
0.7
0.7
0.7
3
0.7
0.7
1.5
0.7
1.5
0.7
0.7
0.7

Table 7. The Boycotted Brands
34.3 % of the participants have stated that they bought a product again later which once they had boycotted.
16.1 % of the participants have replied the question. The reasons of the re-purchasing these products are shown in
Table 8.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Reasons for Repurchasing
Quality
Chepness
Obligation
Reason of the boycott
disappeared

was

Frequency
18
12
43
10

Current %
21.7
14.5
51.8
12

Table 8: Consumers Reasons for Repurchasing The Brands That They Boycotted.
More than half of the participants who have replied to the question have stated that they re-purchased the
products that they once boycotted because they had to do it. 21.7 of the participants have re-purchased the products
because of its good quality.
The attitudes of the participants towards ten countries from which Turkey had imported goods according to
the February 2008 data of TSI have been evaluated. A fivefold scale has been used starting from the country from
which you can buy goods in peace of mind (1) to the country that must be boycotted the most (5) In table 9 attitudes
of the participants towards these ten countries are shown.
Countries

The counrty
which shoul
be boycotted
most (%)

The counrty
which should
be boycotted
(%)

Russia
Germany
China
Italy
U.S.A.
France
England
Switzerland
Ukrain
Iran

9.7
8
35.6
10.9
55.6
42.8
28.8
12.5
5.4
10.5

17,3
13.6
24.7
22
24.5
26.1
19.8
11.5
8.4
5.1

The country
which
doesn‘t need
to
be
boycotted
(%)
27
28
15.6
27.4
7
11.9
19.5
30.5
35
29.4

The country
which should
be
cooperated
(%)
27
23.2
10.9
14.2
4.5
6.4
12.5
17.5
22.8
30.5

The country
which we get
their
products with
peace
of
mind (%)
3.5
13.6
1.8
3.5
1.9
1.6
2.7
7.2
5.8
8.6

The
participants
that have no
informed
(%)
15.4
13.6
11.5
22
6.4
11.3
16.7
20.6
22.6
16

Table 9: View of the Participants About Ten Selected Countries
Only 1.8 % of the participants have been a member of any kind of a consumer organization.
Evaluation results about the 19 items which are located in the third part of the research and which are
prepared using a fivefold likert scale about the attitudes of the participants towards consumer boycotts are given in
Table 10.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Statement
1. Domestic products should be taken at any time instead of
imported products.
2. The products not only in our country should be imported.
3. Foreign products should‘nt be bought because this will cause
unemployment.
4. I prefer to support my country‘s product, even if the cost
burden to me.
5. Access of the foreign products to Turkish market should be
complicated
6. Consumer boycotts are effective on companies.
7. Local businesses organizate the boycotts that against to the
foreign products.
8. Media orientate the consumer boycotts.
9. I boycott the products of companies which exploited my
religious beliefs.
10. I boycott the products of companies which damaged my
country‘s political interest.
11. People around me effect met to do consumer boycott.
12. I boycott the products with my own volition.
13. I never purchase a product of a country or firm which I
boycotted before.
14. I try to orientate the other consumers to boycott.
15. Boycott is an individual reaction against the negative
bahaviour.
16. Importation sholud be prevented because it is a big threat
for domestic production.
17. Quality product should been in my country even if it is
foreigner
18. I believe that EU membership would be useful for our
country.
19. Imported products increases our quality of life.

Mean
4.18

S.D.
1.03

3.94
3.64

1.03
1.14

3.72

1.15

3.71

1.07

3.73
3.26

0.92
0.92

4.01

0.87

4.19
4.33

0.99
0.89

2.35
4.04

1.15
1.61

3.85
3.57

1.02
1.1

3.96

0.94

3.97

1.02

3.49

1.12

3.35

1.34

2.82

1.24

Table 10: Average Values Related to the Participants‘ Ethnocentric Tendencies and Consumer Boycott
Behaviors
The correlation between the demographic characteristics of the participants and consumer ethnocentric and
consumer boycott behaviors has been examined. T-test and variance analysis results are separately given in Table 11
and Table 12.
Demographic
Structure
Gender
Age
Marital status
Income

Calculated Value
14.684
2.297
0.601
2.548

Significicance
Level
0.188 (t)
0.048
0.549
0.02

(P= 0,05)

Table 11: The Examination of the Correlation Between Ethnocentric Tendencies and Demographic Features of the
Participants

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

As a result of the T-test it has seen that ethnocentric tendencies don‘t change according to the gender. As a
result of the variance analysis no remarkable correlation is found between the consumer ethnocentric tendencies and
marital status. Besides that it is seen that consumer ethnocentric tendencies differ according to age and marital status.
Demographic
Structure
Gender
Age
Marital status
Income

Calculated Value
1.073
0.843
3.076
0.676

Significicance
Level
0.451
0.519
0.047
0.669

(P= 0,05)

Table 12: The Examination of the Correlation Between Consumer Boycott Behavior of the Participants and Their
Demographic Features.
In the result of the T-test it has been found out that consumer boycott behaviors tendencies don‘t differ
according to the gender. In the results of variance analysis it has been found out that consumer boycott behavior
tendencies differ according to the marital status. In addition to that it has been found out that consumer boycott
behavior tendencies don‘t differ according to the age and income.

Conclusion and the Limits of the Research
Inadequate quantity of the sample group and because available sample group doesn‘t reflect the
demographic features of the main group prevent the research results from generalization. Another limit of the
research is because of the disparity of the number of the participants from 8 different cities compared to the number
of each city‘s population.
As a result of the T-test it has been found out that consumer ethnocentric tendencies don‘t differ according
to the gender. As a result of the variance analysis no remarkable correlation has been found out between consumer
ethnocentric tendencies and consumer marital status. However, it has been found out that consumer ethnocentric
tendencies change according to the age and income.
As a result of the research, the upper location of the countries and brands that are mostly boycotted in the
list in terms of Turkey‘s exporting volume and intensifying of consumer boycotts in especially some definite
countries and brands can be subjects of future researches.

References
Balıkçıoğlu, B., Koçak, A., Özer, A.(2008). Process of indirect consumer boycott as a non-violence movement and evolvations
for Turkey. Journal of Faculty of Politic Sciences of Ankara University, 63(2), 79-100
Güneren, E.&amp; Öztüren, A. (2005). A Pilot Survey on Effect of Consumer Ethnocentric Tendencies to Buying Trend of Domestic
and Foreign Products of TRNC Citizens. 10th Marketing Congress, 2005, 169-188
Lui F., Murphy, J., Li, J., Liu, X. (2007). English and Chinese? The role consumer ethnocentrism and country of Chinese attitudes
towards store sings. Australasian Marketing Journal, 14(2), 5-13
Orthu, R. &amp; Firbasova, Z.(2002). Ethnocentrism and Consumer Evaluations of Czech Made Yoghurt. Agric. Econ.48(4),175-181
Turkish Statistical
(10.05.2008)

Institute.(2008).

National

Data

Release

Calendar.

http://www.tuik.gov.tr/PreTablo.do?tb

id=11.

Uzkurt, C. &amp; Özmen, M. (2004). The Effects of Consumer Ethnocentrism and Country-origin to Consumer Attitudes of Domestic
and Foreign Products. Proceedings Books. Faculty of Administrative and Economic Sciences of Gazi University, 2004, 261-274

464

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                <text>The objective of this study is to investigate the consumer ethnocentric tendency and  consumer boycotts. Participiants who are consumers upper 18 age in 8 different cities of Turkey  formed the sample for this study. For the emprical investigation consumer ethnocentric tendency  and a new improved consumer boycott scales were used. Data collected were analyzed by using  Anova, t-test and descriptive statistical techniques. Considerable findings in the matter of  understanding consumer ethnocentric tendency and consumer boycot in Turkey market.End of this  study it is found that significiant relationship between age and consumer ethnocentric tendency  and significiant relationship between marriage status and consumer boycot tendency.</text>
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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Islamic Banks as Catalyst Of Economic Development
Velid DRAGANOVĠC
International University of Sarajevo
Bosnia and Hercegovina
draganovic@hotmail.com

Abstract: This paper discusses the current murabaha oriented practice of Islamic banks in the
light of rules of Islamic law. Special attention is given to the issue of return rate to a depositor.
That rate may be variable or fixed depending on contract. In both cases, analysis will focus on
increasing return rate as a technique to mobilize deposits, increasing investment, and boast
economic development. Mentioned issues will be related to benchmark models like LIBOR
(London Interbank Offered Rate) in a case of fixed return rate and a question of risk management
possibilities in Islamic finance in cases of profit-loss sharing products. Finally, a possibility of use
of some forms of financial derivatives is analyzed in order to safeguard depositors from loss on
profit-loss sharing deposits.

Introduction
Economic development could be considered as a main criteria in differentiating between prohibited interest
- riba and a trade compliant to Islamic Shariah law. Economical issues are not dealt in details in textual sources of
Islamic Shariah law – Qur‘an and Hadith, but they are left to be subject of rational judgement, guided by general
moral principles outlined in textual sources and a few direct instructions. A question of an action being good or bad
is by scholars of usuli-fiqh (principles of islamic jurisprudence) subjected to three criteria: universality, benefit of
this world and benefit of hereafter. Issues of worship are exclusively judged according to the third mentioned criteria
and described and sanctioned in details in textual sources. Economic transactions are judged according to benefits of
this world if they fit into moral framework of Islam. Among those benefits, a significant position belongs to
economic development, which is important factor of wellbeing of society.
Economic transactions are positioned between two border cases: swap of goods with real value (benefit)
with consent and satisfaction of two parties on one side, and betting where one party takes possession of other party
without giving anything in return. Somewhere between those two border cases is a line which divides trade and
prohibited interest. Transactions disconnected from economic activity and increase of benefits of society, are
considered as riba transactions. Those transactions are in essence close to betting and gambling, where the core issue
is exploitation, taking something from somebody without giving counter value. Modern financial institutions are
therefore operating on riba basis. As an illustration of their disconnection from real economic activities can serve a
fact that a volume of financial transactions is 50 times bigger than volume of world trade (Ayub, 2007).
Islamic banks or Islamic financial institutions are founded with an aim to provide profit-loss sharing
models. However, there is no actual difference between operations performed by Islamic banks and operations
performed by other commercial banks. The key financial product of Islamic banks is murabahah in its different
forms, especially commodity murabahah. More than half of the volume of banks operations in Malaysia, or about
51% of all cash transactions in Malaysia in years 2007 and 2008 is performed through murabahah contracts, with
additional 15% through the way of bay al-innah (the special form of commodity murabahah allowed in Malaysia),
which together is 65% or two thirds of total volume of transactions. (http://mpra.ub.uni-muenchen.de/20262/)
Murabahah is a transaction in which bank or financial institutions buys commodity (usually at request from
customer) and then sells it to a customer for higher price, which can be paid in installments or on agreed time. In this
way customer can attain goods which he needs for his business or personal use. In a case in which goods are used for
business, this kind of murabahah has its economic justification.
Commodity murabahah is a way to obtain cash, instead of goods. Commodity is purchased on a deferred
price, and sold to a third party to obtain cash. This kind of murabahah is also called tawarruq. Organised tawarruq
includes bank as an agent in transaction. Bank sells a commodity to third party for a lower spot price, and two
transactions are usually performed simultaneously, without actually acquiring goods. In this way, buying and selling
commodity covers the basics of transaction, which is very similar to classical credit given by banks charging interest
for deferred return of money.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

There is much controversy about this transaction. The International Council of Fiqh Academy, which is an
initiative of the Organization of Islamic Conferences (OIC), in its 19 th session which was held in Sharjah, United
Arab Emirates, from 1 - 5 of Jamadil Ula 1430 AH, corresponding to 26 – 30 April 2009, declared organized
tawarruq
impermissible. (http://www.isra.my/fatwas/treasury/interbank/tawaruuq/355-oic-fiqh-academy-ruledorganised-tawarruq-impermissible.html.) with a rationale that it is considered deception, in order to get the
additional quick cash from the contract, and therefore containing the element of riba.
Some scholars argue that tawarruq should be allowed. Mohammad Akram Laldin, a religious scholar from
Malaysia, disagreed with the ruling of Fiqh Academy. (http://www.arabianbusiness.com/557758-islam-allowsorganised-tawarruq-asset-sales---scholar) In his opinion organised tawarruq does not violate Islamic law principles,
and there is nothing wrong with the transaction itself. However, he admitted that organised tawarruq focuses on the
creation of debt rather than an economic activity, and that Islamic finance must provide a balance between debt
instruments and equity based instruments.
Sheik Nizam Yaquby holds to idea that also said there were hardly any alternatives to tawarruq as a tool to
satisfy legitimate financing needs. (http://islamicfinancenews.wordpress.com/category/products/tawarruq/) He
expresses support for the standards of Bahrain-based AAOIFI — the Accounting and Auditing Organization for
Islamic Financial Institutions — which in his opinion provided the necessary checks to prevent the abuse of
tawarruq.
Strongest points for impermissibility of tawarruq were forwarded by Mohammad Nejatullah Siddiqi.
(http://siddiqi.com/mns/Economics_of_Tawarruq.pdf) In his paper Economics of Tawarruq he performed
macroeconomic analysis and proved that the harmful consequences of tawarruq are much greater than the benefits
claimed by supporters of such practice. That paper preceded ruling of Fiqh academy and cited views of scholars, but
on the other hand could be considered last saying concerning this issue.
The main problem of every tawarruq transaction is creation of a debt, which is larger than the cash it
transfers to the client. Furthermore, debt document resulting from tawarruq is a subject to financial and speculative
transactions, which cut links with real assets, resulting in a reversed pyramid – a huge quantity of financial
instruments relying on a very small asset base. The economy than becomes focused on benefiting from consumption
of debt.
Therefore, Siddiqi summarized the harmful effects of tawarruq as follows:
―• It leads to creation of debt whose volume is likely to go on increasing.
• It results in exchange of money now with more money in future, which is unfair in view of the risk and
uncertainty involved.
• It leads, through debt proliferation, to gambling like speculation.
• It leads, through debt finance, to greater instability in the economy.
• In a debt-based economy, the money supply is linked to debt with a tendency towards inflationary expansion.
• It results in inequity in the distribution of income and wealth.
• It results, through debt finance, in inefficient allocation of resources.
• It contributes, by consolidating debt financing, to raising anxiety levels and destruction of environment. ―
Some classical jurists considered tawarruq as permissible, and Siddiqi rightly points that the tools of
macroeconomic analysis were not available to them, and consequently they could not consider the harmful impact
(mafasid) of tawarruq on the economy as a whole, while its benefits (masalih) for some individuals were easy to see.
Very strange is however, that some contemporary scholars are closing their eyes to economic tools that are available
to them, and neglecting arguments that were not available to classical scholars.
Indeed, voices supporting tawarruq practice are tinny. Even if practice itself does not contradict Islamic
law, which is not the case, its harmful consequences are sufficient reason for its prohibition. When economic
development is considered, it is obvious, that tawarruq practice should be discarded.
The consequent issue is: what is an alternative to tawarruq? An alternative proposed by OIC Fiqh Academy
to tawarruq (and other murabahah transactions) is qard hasan (benevolent credit). This alternative does not sound
realistic. Qard hasan is an act of charity, and it is hardly to believe that there is a huge number of money owners who
are willing to act in accordance with this high moral virtue. No question that such a form of money lending exists in
practice, especially between relatives or close friends, but on a big scale, and as a policy which should provide
economic growth, it does not give much sense. In the case of financial institution, it should work for free, taking
deposits from depositors and giving them to customers, where depositors bear risk of not returning money and not
getting any profit.
A shift from murabahah practice and debt instruments must be made in the opposite direction. Instead of
giving money with no profit at all, banks should turn to equity-based financing which could provide higher return for
money depositors. However, a known fact is that higher return is connected to higher risk (Hull, 109).

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Mudarabah contract is an example of activity which can bring higher return, but carries higher risk too. In such a
contract bank will provide capital for the project, while entrepreneur will provide expertise and work to carry the
project. Contract defines share of each party in the profit, and bank usually bears all financial risks.
This type of contract is attractive for Muslim investors, who obey principles of Islamic law for two reasons:
it is compliant to Shariah, and it brings profit. On the other hand, this type of financial model could mobilize some
other funds. A possible return rate for investors is much higher than LIBOR (London Interbank Offered rate) rate.
LIBOR rates are short-term lending rates offered by banks in the interbank market (Hull, 94), and they are
considered by financial derivative traders to be the best proxy for risk-free rate. They regard LIBOR as they
opportunity cost of capital. It is approximately equal to short-term borrowing rate of AA-rated company regarding
credit return ability. As a consequence of higher return rate from investing in mudarabah contract it can be attractive
to arbitrageurs, who can see an opportunity to borrow money at risk-free rate and investing it in Islamic bank.
A shift toward risk-sharing models (profit-loss sharing models) requires from banks to take an active role,
because an emphasis is on real economic activities rather than some artificial arrangements. A well done risk
management is necessary for operating bank activities. By analogy to analysis of tawarruq and debts instruments
arising from it, as well as their harmful role to economy, risk management by use of options should be avoided.
Consequently, Islamic banks must rely on third-parties guarantees and takaful – Islamic form of insurance in order to
mitigate risks arising from mudarabah and other types of equity-based transactions. On the other hand, banks
themselves should develop models for minimization of risk. This includes diversification of economic branches in
which investments are made. Banks will need an expertise in every branch, which is chosen for possible investment.
An expertise would be useful particularly for choosing entrepreneurs which are reliable in business. Finally, Islamic
banks must ensure sustainable operation by allocating a ratio of profit to make own security funds, so that reliance on
third parties guarantees decreases by time.

Conclusions
Judging by criteria of Islamic law and economic development murabahah practices including commodity
murabahah or tawarruq should be avoided. Islamic banks should shift to more risky forms of equity-based
financing such as mudarabah. Such a shift demands an active role of Islamic financial institutions in risk
management through diversification of investments, investigating entrepreneurs and obtaining an expertise in the
areas of investment.

References
Anwar, H. (ed.). (2008) Islamic Finance: A Guide for International Business and Investment. Global Market Briefings.
Ayub, M. (2007). Understanding Islamic finance. West Sussex, England. Wiley.
Hassan, M.K, Lewis, M.K (ed.). (2007) Handbook of Islamic finance. Cheltenham, UK. Edward Elgar.
Hull, John C., (2009). Options, futures, and other derivatives. 7th ed., Pearson Education Inc.
Iqbal, M. Llewellyn, D. T. (ed.). (2002) Islamic Banking and Finance New Perspectives on Profit-Sharing and Risk. Cheltenham,
UK. Edward Elgar.
Iqbal, Z. Greuning, H. (2008) Risk Analysis for Islamic Banks. Washington DC. The World Bank.
Iqbal, Z. Lewis, M.K. (2009) An Islamic perspective of governance. Cheltenham, UK. Edward Elgar.
Kahf, M. (2004). Outlines of a brief framework of tawarruq (cash procurement) and securitization in Shariah and Islamic banking.
Seminar AAOIFI, Bahrain.
Visser, H. (2009). Islamic finance. Cheltenham, UK. Edward Elgar.
Warde, I. (2000) Islamic Finance in the Global Economy. Edinburgh. Edinburgh University Press.
http://islamicfinancenews.wordpress.com/category/products/tawarruq/

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http://mpra.ub.uni-muenchen.de/20262/ MPRA Paper No. 20262, posted 26. January 2010 / 17:38
http://siddiqi.com/mns/Economics_of_Tawarruq.pdf
http://www.arabianbusiness.com/557758-islam-allows-organised-tawarruq-asset-sales---scholar
http://www.isra.my/fatwas/treasury/interbank/tawaruuq/355-oic-fiqh-academy-ruled-organised-tawarruq-impermissible.html.

91

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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

An Application of American Customer Satisfaction Index (Acsi) Government
Model to Health Services In Sarajevo, Bosnia and Herzegovina
Teoman DUMAN
Faculty of Economics
International Burch University
Bosnia and Herzegovina
tduman@ibu.edu.ba
Elif ÖZTÜRK
Faculty of Economics
International Burch University
Bosnia and Herzegovina
oztrkelf@hotmail.com
Muris MESETOVĠC
Faculty of Economics
International Burch University
Bosnia and Herzegovina
Muris.mes@gmail.com
Haris HOJKURĠC
Faculty of Economics
International Burch University
Bosnia and Herzegovina
hhojkuri@yahoo.com
Ahmet KANTÜRK
Faculty of Economics
International Burch University
Bosnia and Herzegovina
Akanturk85@yahoo.com
Zafer KONAKLI
Faculty of Economics
International Burch University
Bosnia and Herzegovina
zaferkonakli@yahoo.com

Abstract: The purpose of this research is to test the relationships between expectations, service
quality, satisfaction, complaints and citizen trust in the context of public health services in
Sarajevo, Bosnia and Herzegovina. American Customer Satisfaction Index (ACSI) government
model is used as the research framework in this study. Initially proposed by Fornell, Johnson,
Anderson, Cha and Bryant (1996), ACSI model is the most well-known customer satisfaction
model in the US and in most parts of the world. As part of the proposed framework, public
perceptions of service quality, expectations, satisfaction, complaints and citizen trust were
measured for public health services with a self administered questionnaire. 212 completed
questionnaires were used in the data analysis. Research results show that service process, service
quality and satisfaction peceptions are main indicators of citizen trust for public health services in
Sarajevo.
Keywords: American Customer Satisfaction Index, Public Health Services, Bosnia and
Herzegovina

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Introduction
Bosnia and Herzegovina is a country with 4.6 million population. The country is composed of 10
cantons. The Sarajevo canton, which houses the central government, has around 423,000 population. The
Public Institution Medical Centre of the Sarajevo Canton is the largest institution in Bosnia and Herzegovina
providing primary health care to locals living in Sarajevo canton. The institution has 9 organizational units
comprising the main building and associate localities (family medicine clinics), with the total of 2186
employees, out of which 1761 are medical staff, and 425 administrative-technical staff. According to the
official statistics the institution served 3,202,081 patients and provided 8,934,285 primary health care services
in 2009. As the effects of devastating war in 1990s is disappearing in all aspects of life, studies are needed to
understand people‘s perceptions of recovery especially in terms of public services. Research studies about
public‘s perceptions of health services in Bosnia and Herzegovina is necessary for future planning but are
also very limited in scope. The purpose of this research therefore is to measure the relationships between
public‘s expectations, service quality, satisfaction, complaints and citizen trust perceptions in the context of
public health services in Sarajevo, Bosnia and Herzegovina. American Customer Satisfaction Index (ACSI)
government model is used as the research framework in this study.

Satisfaction Theory and Measurement
Perceived overall satisfaction is defined as ―fulfillment response, the degree to which the level of
fulfillment is pleasant or unpleasant‖ (Oliver, 1997, p.28). Marketing scholars usually agree that consumers
compare their product performance perceptions with some standard to reach satisfaction evaluations (Oliver,
1997). The standards used by consumers might be their expectations, values, past experiences or benefits
received by other consumers (Fournier ve Mick, 1999). The famous expectancy-disconfirmation theory of
consumer satisfaction suggests that disconfirmation results from comparisons of expectations and product
performace where positive disconfirmation occurs if product performance evaluations exceeds expectations
while negative disconfirmation occurs when product performance evaluations falls short of expectations
(Oliver, 1980, p.208). While developing expectations about products, consumers might use ideal standards,
same or similar products, market promises and industry norms (Barsky, 1992; Woodruff &amp; Gardial, 1996).
Spreng et al. (1996, p.17) suggested that ―expectations are beliefs about the likelihood that a product is
associated with certain attributes, benefits and outcomes.‖ Expectancy-disconfirmation model of consumer
satisfaction represents a cognitive view where consumers are thought to make rational judgments to make
their evaluations. Later theories of consumer satisfaction proposed that consumers‘ affective states are also
important parts of satisfaction evaluations. Research showed later that affect was a separate and significant
antecedent of satisfaction (Dube-Rioux, 1990; Mano and Oliver, 1993; Oliver, 1994, 1997; Westbrook &amp;
Oliver, 1991).
One of the main predictors of consumers‘ satisfaction evaluations is consumers‘ quality
perceptions. Zeithaml (1988, p.5) defined perceived quality of a product as ―the consumer‘s judgment about
the superiority or excellence of a product.‖ Service quality relates to consumers‘ evaluations of the services
and defined as ―global judgment or attitude, relating to the superiority of the service‖ (Parasuraman, Zeithaml
and Berry, 1988 p.16). Similar to disconfirmation theory of consumer satisfaction, service quality theory
suggests that consumers use their expectations when they make judgments about the quality of products.
Researchers argue that consumer satisfaction represents an end result of a consumption experience while
service quality serves as a cognitive evaluation of the superioriority of the product against others. To this end,
service quality is considered an indicator of consumer satisfaction.

American Customer Satisfaction Index (ACSI) Government Model
One of the well-known models of consumer satisfaction was proposed by Fornell, Johnson, Anderson, Cha
and Bryant (1996). In their American Customer Satisfaction Index Model (ACSI), Fornell and his colleagues
proposed that overall customer satisfaction is a result of customer expectations, perceived quality and perceived
value. In this model, satisfaction acts as a mediator between these constructs and customer complaints and customer
loyalty. These researchers proposed that their model of consumer satisfaction was an overall measurement of a firm‘s

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo
market offering rather than an evaluation of a specific transaction. In this form, the ACSI model was primarily
measuring private sector transactions and a modified version was necessary for public agencies. In a later version of
the ACSI model, Fornell and his colleagues proposed ACSI government model (ACSI, 2010). This model is shown
in Figure 1. As shown in the figure, customer satisfaction for government agencies is influenced by customer
expectations and perceived service quality. According to the model, perceived service quality is a function of the
service process, information received, customer service and website. Consequences of satisfaction are customer
complaints ot citizen trust toward public services.

Figure 1:
The
American
Customer
Satisfactio
n Index
Government Model

Health Services Research
Customer satisfaction is an indication of success for every business today. Satisfied customers turn to be
loyal customers who are main income generators for most businesses. Customer satisfaction is more important for
service businesses especially where the nature of the service is highly technical and difficult to understand for service
recipients. In such services, higher satisfaction is likely to turn to repeat business. For government agencies, fewer
complaints and higher levels of citizen trust are possible with higher satisfaction with these services. Research shows
that programs to increase customer satisfaction and decrease consumer complaints have significant effects on
hospital financial performance (Howard, 1999). Research also suggest that customers who are encouraged to
complain show higher satisfaction with the services if their complaints are resolved well (Nyer, 2000). In a study
about health services quality, Shemwell and Yavas measured service quality in hospital services and found that
search, credence and experience are main indicators of service quality in health services settings. In another study,
Carman (2000) separated hospital services into operational and technical dimensions. Operational dimension
represented how the service is offered while technical dimension represented the results of the services. It was found
in this study that patients‘ perceptions about technical dimensions of the service is more important for their
perceptions of quality. Considering the complexity and technicality of health services, measurement of satisfaction in
this sector is a formidable task. Gill and White (2009) argued that standardization, reliability and validity issues for
the measurement of satisfaction of health services still remains an issue in academia. Previous research suggest that
service quality and satisfaction are major indicators of consumer loyalty and trust. Strength of these relationships
depend in part on the level of consumer complaints as lower levels of compliants result in higher satisfaction and
loyalty levels (Duman and Kozak, 2009). Nyer (2000) found that customers who are given chances for expressing
their complaints report higher satisfaction levels. In another study, Vukmir (2006) found that timing and amount of

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo
caring are the two main indicators of customer satisfaction for health services. Timely and personalized services can
be expected to increase quality, satisfaction and loyalty levels for public services. Current research aims to measure
public perceptions of expectations, service quality, satisfaction, complaints and trust and test the relationships
between tehse variables in the context of public health services in Sarajevo, Bosnia and Herzegovina.

Research Methodology
Research design

Secondary sources were first explored to develop the research framework. A two-page questionaire with
three sections were used to collect data. The first section of the questionnaire included questions about general health
services experience. Questions such as type of clinic visited and wait time before treatment were asked in this
section. The second part of the questions included questions about the concepts that are included in the research
model (Figure 1). In this part 22 questions were asked, 19 of which were attitudinal questions and the rest were yesno questions. Questions refering to likelihood to recommend public services, overall confidence in relying on health
services, official and unofficial complaints, overall satisfaction, overall quality, clarity of information given by
hospital and professionalism of hospital staff were included in second section. Yes-no questions were used to
identify if the respondents had any official complaint and whether they used the web site to search information about
the health services. Questions in the second part were adapted from ACSI government model (ACSI, 2010) and
Fornell et al. (1996). Questions in the second section were measures with seven – point numerical scales where one
represented total disagreement and seven represented total agreement to the stated question. Finally, the last section
was about demographics. Questions such as age group, gender, education, occupation and monthly household
income were placed in the last section. The questionnaire was first prepared in English and transtlated into Bosnian
language. Translation of the questionnaire was done with experts in busniess who know both languages and
respective culture. Pretesting of the questionnarie was administered with 10 respondents chosen conveniently from a
diverse cross-section of the population. The purpose of the pretest was to assess the validity of the questionnaire. The
questions that were not fully understood were evaluated again and finalized for data collection.
Data collection and sampling

Information was gathered directly from actual users of hospital services in Sarajevo Canton. The sample for
this study was selected conviniently from a diverse cross-section of the population in Sarajevo Canton. The sample
included adults (18 years and older). Ten researchers from a marketing class distributed questionnaires personally to
the general public in different parts of Sarajevo between April 1 and April 17 2010. A total of 250 questionnaires
were distributed and 211 usable questionnaires were received during this time period, resulting in response rate of
84,4 percent. Respondents‘ anonymity was ensured by asking them not to identify themselves in any way. Gender
was represented by 55 percent males and 45 percent females. The age of the respondents is skewed in favor of the
younger population (64 percent in 18-35 age group). In the education category 67,2 percent of population had high
school or college degree. Finally 54,8 percent of population were employed and 31,9 of population had income
between 500 and 999 KMs.
Analysis
Frequency analysis was used to analyze demographic and visitation variables. The attitudinal variables were
analyzed with descriptive analysis was done sample t-tests. In one sample t-tests, means were compared with 4 (midpoint of the scale). The research model was analyzed with multiple regression analysis. In this analysis, three
regression models were run. In the first model, service quality was used as the dependent variable while process,
information and customer service was used as independent variables. Web site was not used as an independent
variable because response rate on this variable was too low. In the second model, customer satisfaction is used as a
dependent variable and expectation and service quality were used as the independent variables. Finally, in the third
model, citizen trust is used as the dependent variable and customer satisfaction and customer complaints were used
as the independent variables.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Results
Table 1 presents the demographic and visitation characteristics of the patients. 64 % of patients were in 1835 age range. Males constituted 55 % and females constituted 45 % of the sample. 64 % had college or graduate
education and 54,8 % were employed and 60 % had an income level between 500 – 1499 KM. 52 % of people
waited until they have received medical treatment between 1- 20 in minute. 64,2 % of patients were given clear
information by the hospital employees.
Demographic Variables
Age Group
18-25
26-35
36-45
46-55
56 or over
Total
Gender
Male
Female
Total

N

%

68
67
32
23
21
211

32,2
31,8
15,2
10,9
10
100

115
94
209

55
45
100

Education Status
High School
Vocational SchoolTechnical school
College
Graduate
Total

57
17

27,5
8,3

81
49
204

39,7
24
100

Occupation
Employed
Retired
Unemployed
Student

114
23
21
50

54,8
11,1
10,1
24

Total

208

100

Demographic and Visitation
Variables
Income Level
0-499 KM
500-999 KM
1000-1499 KM
1500 KM or more
Total
Clarity of information given
Yes
No
Partially
Total
Wait time before treatment
(in minutes)
1-10
11-20
20-30
31-60
61 or over
Total
Visited Polyclinic
Internal medicine
Gynecology
Pediatry
Orthopedy
Neurology
Ear nose and throat
Dermatology
Other
Total

N

%

36
65
57
46
204

17,6
31,9
27,9
22,5
100

124
13
56
193

64,2
6,7
29
100

38
49
30
29
21
167

22,8
29,3
18
17,4
12,6
100

48
20
25
17
10
18
12
56
206

23,3
9,7
12,1
8,3
4,9
8,7
5,8
27,2
100

Table 1: Demographic and Visitation Characteristics of Patients
Table 2 presents the results of descriptive analysis and one sample t-tests. The significance of the results in
one sample t-tests is measured by the comparison of 4 (nuetral attitude) with the mean values with a pobability level
of .05. As seen in the table, respondents have positive feelings toward recommending the services they received
(mean= 4,33; p=.01) and feeling confident in relying on these services (mean= 4,28; p=.02). However, respondents
find making a formal compliant difficult (mean= 3,33; p=.00) and their complaints were not handled well by the
officials (mean= 3,44; p=.00). Also, respondents feel that health services they recieved fell short of their expectations
(mean= 3,76; p=.03). Similarly, they feel negative about the quality of services they received (means= 3,72, 3,70,
3,56; p=.01, p=,01, p=,00 respectively) and they find service process as inconvenient as indicated by the mean value
of 3,52 (p=.00). Finally, respondents have neutral feelings in terms of expectations, information, customer service
and web site (p&gt;.05).

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo
Constructs and Items
Citizen Trust
Likelihood to recommend
Confidence in relying on the health services
Complaints
Difficulty or ease of making a complaint
Complaint handling by the officials
Satisfaction
Overall satisfaction
Expectation confirmation
Service Quality
Overall Quality
Quality in terms of fit to personal requirements
Quality in terms of how often things have gone
wrong
Expectations
Expectations of the overall quality
Expectations in terms of how well the services
fit to personal requirements
Process
Convenience
Timeliness
Information
Clarity of information
Accessibility of information
Customer service
Courtesy of health care staff
Professionalism of the health care staff
Web-site
Finding information through web-site easily
Usefulness of information

N

Mean

Standard
Deviation

t-value

p-value

212
211

4,33
4,28

1,82
1,71

2,60
2,41

0.01
0.02

84
118

3,33
3,44

1,90
1,90

-3,22
-3,20

0.00
0.00

208
213

3,85
3,76

1,74
1,63

-1,24
-2,18

0.22
0.03

211
210

3,72
3,70

1,52
1,58

-2,67
-2,75

0.01
0.01

208

3,56

1,48

-4,31

0.00

212

3,86

1,58

-1,26

0.21

208

3,87

1,47

-1,32

0.19

209
210

3,52
3,82

1,62
1,71

-4,30
-1,49

0.00
0.14

210
209

4,13
3,93

1,72
1,71

1,09
-0,56

0.28
0.57

209
210

3,94
4,12

1,78
1,66

-0,51
1,08

0.61
0.28

49
52

3,94
4,23

1,90
1,78

-0,23
0,94

0.82
0.35

Table 2: One sample t-test for measured variables (test value=4)
Model Tests

The relationships in the model were tested with three regression models. Before the model tests, correlations
between variables were analyzed and presented in Tables 3 and 5. As seen in the tables, variables show moderate to
high correlations in the range of .56 - .86 except for web site variable. Web site variable has low correlations with
other variables possibly due to low response rate on this variable. For this reason, web site variable is removed from
further tests of regressions. The other correlations in the table are significant at .05 probability level.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Process

Information

Customer
service

Pearson corr.
Sig. (2-tailed)
N
Pearson corr.
Sig. (2-tailed)
N
Pearson corr.

Service quality

Process

Information

.785(**)
,000
211
,788(**)
,000
211
,782(**)

,755(**)
,000
211
,756(**)

,815(**)

Customer
service

Sig. (2-tailed)
,000
,000
,000
N
211
211
211
Pearson corr.
,203
,153
,337(*)
,396(**)
Website
Sig. (2-tailed)
,154
,283
,016
,004
N
51
51
51
51
** Correlation is significant at the 0,01 level (2-tailed). * Correlation is significant at the 0,05 level (2-tailed).
Table 3: Correlations ( Model 1)
Table 4 shows the results of first regression analysis. Independent variables explain 73% of variance in the
dependent variable and all the independent variables have high correlations with the dependent variable (p=.00).
Among the independent variables, service process has the strongest relationship with service quality followed by
information and customer service (t=5,96; 4,47 and 3,96 respectively).
Dependent Variable :
Service Quality
Independent Variables
Standardized Beta
t- value
p- value
VIF
Process
0,36
5,96
0.00
2,69
Information
0,30
4,47
0.00
3,44
Customer Service
0,27
3,96
0.00
3,46
Note: R² =0,73; VIF: Variance Inflation Factor
Table 4: Regression Analysis (Model 1)
Customer
Expectations
Service
Complaints
Quality
Pearson Corr.
,706(**)
Expectation
Sig. (2-tailed)
,000
N
119
Pearson Corr.
,698(**)
,750(**)
Service Quality
Sig. (2-tailed)
,000
,000
N
119
211
Pearson Corr.
,641(**)
,748(**)
,858(**)
Satisfaction
Sig. (2-tailed)
,000
,000
,000
N
119
213
211
Pearson Corr.
,555(**)
,601(**)
,667(**)
Citizen Trust
Sig. (2-tailed)
,000
,000
,000
N
119
213
211
** Correlation is significant at the 0.01 level (2-tailed).
Table 5: Correlations ( Models 2 and 3)

Satisfaction

,641(**)
,000
213

Table 6 and 7 show the results of second and third regression analyses. Independent variables in these
models explain 77% and 38% of variance in the dependent variables respectively. All the independent variables in
the models have high correlations with the dependent variables (p=.00). Among the independent variables in the
second model, service quality has the strongest relationship with customer satisfaction (t=13,09 and 5,10
respectively). In the final model, customer satisfaction has a stronger relationship with citizen trust compared to
customer complaints as indicated by t-values of 3,73. These findings are congruent with previous research on service

729

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo
quality and satisfaction where service quality is the most important indicator of satisfaction perceptions as
satisfaction is the most important indicator of recommending and trust perceptions (Cronin et al. 2000).
Dependent Variable:
Customer Satisfaction
Independent Variables
Standardized Beta
t- value
p-value
VIF
Expectation
0,26
5,10
0.00
2,29
Service Quality
0,66
13,09
0.00
2,29
Note: R² =0,77; VIF: Variance Inflation Factor
Table 6: Regression Analysis ( Model 2 )
Dependent Variable:
Citizen Trust
Independent Variables
Standardized Beta
t- value
p-value
Customer Complaints
0,32
3,44
0.00
Customer Satisfaction
0,36
3,73
0.00
Note: R² = 0,38; VIF: Variance Inflation Factor
Table 7: Regression Analysis ( Model 3 )

VIF
1,70
1,70

Discussion
This researched analyzed antecedents and consequences of customer satisfaction for public health services
in Sarajevo. Research results reveal insightful results for theory and managers of these services. In terms of the
model test, the results show that proposed three indicators of service quality, process, information and customer
service have positive and significant relationships with this variable. In other words, ease and timeliness of services
process, clarity and accessibility of information and courtesy and professionalism of health care staff are important
signs of quality service for public health services in Sarajevo. The features realted to web sites of the institutions may
not have a significant impact on service quality because of limited use of these sites by the public. Results further
suggest that expectations and service quality are significant indicators of customer satisfaction as satisfaction and
complaint handling are important indicators for citizen trust. Higher service quality and satisfaction perceptions
result in greater citizen trust perceptions.
Although research participants indicate that they trust the services they get from public institutions, they
feel negative about complaint handling, quality of service and convenience of service process. One reason for this
result might be related to the physical conditions of the facilities as the recovery process is stil continuing from the
recent war. Although not statistically significant, participants seem positive about professionalism of the health care
staff but they think that the service process is not as convenient as they desire. This may be related to the fact that
process of making an appointment is usualy slow in these instituions and patients have to wait from one to two
weeks to be on the appointment list. Once they are on the list, process of getting treatment is relatively good and fast.
Despite a general negative evaluations about service quality, participants show mix feelings about specific service
quality features. This might be a sign that they feel improvements in services and they are positive about future
expectations. Positive feelings of trust might indicate that participants are relying on their governmental services but
they don‘t see current situation as adequate for their expectations.
The results found in this study are coming from a limited sample and these results must be validated with
future studies in this area. Higher sample sizes can give better ideas of public perceptions about health services in
Sarajevo. Also, management of the health facilities should consider reasons of limited usage of their websites for
appointments and complaint reporting. The use of web sites can easily improve public perceptions about these
services. Also, detailed studies are needed to measure perceptions of public because there might be significant
differences between different demographic groups. For example, one generation lived through a devastating war
while another (younger) generation doesn‘t even remember these events. The management of public health services
in Sarajevo should consider using citizenship and nationalistic themes in promoting their services. Apperantly public
feels positive about their institutions and expect more in the future.

730

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

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732

�</text>
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                <text>An Application of American Customer Satisfaction Index (Acsi) Government  Model to Health Services In Sarajevo, Bosnia and Herzegovina</text>
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ÖZTÜRK, Elif
MESETOVİC, Muris
HOJKURİC, Haris
KANTÜRK, Ahmet
KONAKLI, Zafer</text>
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                <text>The purpose of this research is to test the relationships between expectations, service  quality, satisfaction, complaints and citizen trust in the context of public health services in  Sarajevo, Bosnia and Herzegovina. American Customer Satisfaction Index (ACSI) government  model is used as the research framework in this study. Initially proposed by Fornell, Johnson,  Anderson, Cha and Bryant (1996), ACSI model is the most well-known customer satisfaction  model in the US and in most parts of the world. As part of the proposed framework, public  perceptions of service quality, expectations, satisfaction, complaints and citizen trust were  measured for public health services with a self administered questionnaire. 212 completed  questionnaires were used in the data analysis. Research results show that service process, service  quality and satisfaction peceptions are main indicators of citizen trust for public health services in  Sarajevo.</text>
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                    <text>Evaluation of Zinc Accumulation Ability of Transgenic and Non
Transgenic Tobacco
Hatice Daghan
Mustafa Kemal University, Faculty of Agriculture,
Department of Soil Science, 31000 Hatay, Turkey
hdaghan@mku.edu.tr
Mehmet Arslan
Mustafa Kemal University, Faculty of Agriculture,
Department of Field Crop, 31000 Hatay, Turkey
marslan@mku.edu.tr
Nurcan Koleli
Mersin University, Faculty of Engineering,
Department of Environmental Engineering, 33342 Mersin, Turkey
nkoleli@mersin.edu.tr
Veli Uygur
Mustafa Kemal University, Faculty of Agriculture,
Department of Soil Science, 31000 Hatay, Turkey
vuygur@mku.edu.tr
Abdullah Eren
Mustafa Kemal University, Faculty of Agriculture,
Department of Soil Science, 31000 Hatay, Turkey
aeren@mku.edu.tr

Absract: The T2 generations of the ScMTII gene bearing transgenic and non-transgenic
tobacco plants were grown on the nutrient medium with the addition of 0, 5 and 10 mg L1
Zn to evaluate Zn accumulation capacity. Dry mass of shoot and roots, Zn concentration
and Zn content were determined. In addition to Zn, glutathion (SH groups) concentrations,
N, P, K, Cu, Fe and Mn of shoots and roots were determined. After growth for 15 days on
media containing 10 mg L-1 Zn, non-transgenic plant showed slight chlorosis symptoms,
including significant reduction in growth and chlorophyll. Transgenic and non-transgenic
tobacco plants have been tested in terms of phytoremediator for Zn accumulations. The
highest Zn concentration in shoots and also roots was tested in all Zn supply. The results
showed that Zn accumulation ability of transgenic tobacco plant was higher than nontransgenic tobacco plants and Zn accumulation in the transgenic and the non transgenic
tobacco plants were lower in the shoots compared to the roots. The Zn concentration in
shoot of transgenic plant was increased by approximately 1.4 times compared to the non
transgenic tobacco plants. Higher amount of Zn concentration in the shoot is a good
indicator as a phytoremediation agent. The results showed that p-S-ScMTII gene bearing
transgenic tobacco plant is not suitable for phytoextraction either detected lower amount
of Zn concentration (&lt;10000 mg Zn kg-1 DM) in the shoot or the translocation factor
value was less than one.

Introduction
Heavy metal contamination of soils is a common problem in the world (Finzgar and Lestan, 2007).
Many heavy metal cations such as Cu2+, Zn 2+, Mn2+, etc., are essential plant micronutrients, but when
present in excess, these and non-essential metals, such as Cd2+, Hg2+ or Pb2+, can become extremely toxic
94

�(Macek et al., 2002). Heavy metals, released to the environment from anthropogenic and natural sources,
tend to persist in soils, sediments and water and are difficult to remove. Heavy metals in soils frequently
remain in the upper horizons, causing adverse effects on soil microbial activities and crop productivity,
with the added risk of contamination of the food chain. Remediation of contaminated soils is essential for
sustainable soil use. Remediation technologies for contaminated soils can be grouped into three general
categories: (1) extraction/removal, (2) destruction after separation, and (3) in situ processes. For third
process, several technologies can be employed to clean up the soils contaminated by heavy metals, this
process including thermal, biological, and physical/chemical procedures, or their appropriate combinations.
These technologies usually require the removal of contaminants from contaminated soils, such as
phytoremediation. Phytoremediation is defined as the use of green plants to remove pollutants from the
environment or to render them harmless (Raskin et al., 1997). Phytoremediation technologies include
phytovolatilzation, phytostabilisation and phytoextraction (Vangronsveld et al., 2000; Garbisu and Alkorta,
2001). The terms phytoremediation and phytoextraction are sometimes incorrectly used as synonyms, but
phytoremediation is a concept while phytoextraction is a specific cleanup technology (Kumar et al. 1995).
Phytoextraction is the most commonly recognized of all phytoremediation technologies, and is the focus of
the research proposed in this prospectus. Phytoextraction is the most acceptable and applied
phytoremediation technique that can successfully remove heavy metals from soils (Cunningham et al.,
1995; Dushenkov et al., 1997; Ebbs et al., 1998; Huang et al., 1998). The removal of heavy metals from
soil by plants, resulting in metal uptake, transport and concentration in plant tissues, is described as
phytoextraction. These plants known as metal hyperaccumulators, frequently endemic to metalliferous soils
with the capacity to accumulate unusually large concentrations of metals in their aboveground parts
(shoots), are potentially most effective for this strategy (Baker and Brooks, 1989). Metal hyperaccumulator
plants comprise species that accumulate (in mg/kg)&gt;10000 (Mn or Zn), &gt;1000 (Cu, Co, Cr, Ni, Pb) or &gt;100
(Cd) in their shoots (Baker and Brooks, 1989; Wenzel and Jokwer, 1999). Of the over 450 plant species
which have been identified as hyperaccumulators, 75% have been Ni hyperaccumulators (Clemens, 2001).
Cropping metal-contaminated soils with species of these plants has demonstrated the potential of this
technique as a low cost, low technology alternative to physical and chemical methods of soil remediation
(McGrath et al., 1993), although it is limited by the rarity, slow growth rates and low biomass production
of many hyperaccumulator species. Two most important characters include the ability to accumulate large
quantities of biomass rapidly and the ability to accumulate large quantities of environmentally important
metals in the shoot tissue (Kumar et al. 1995; Cunningham and Ow, 1996; Blaylock et al. 1997; McGrath,
1998). It is the combination of high metal accumulation and high biomass production that results in the
most metal removal. In practice, metal accumulating plants are seeded or transplanted into metal
contaminated soil and are cultivated using established agricultural practices. The roots of established plants
absorb metal elements from the soil and translocate them to the above-ground shoots where they
accumulate. If metal availability in the soil is not adequate for sufficient plant uptake, chelates or acidifying
agents may be used to liberate them into the soil solution (Huang and Cunningham, 1996; Huang et al.
1997; Lasat et al. 1998). First, hyperaccumulator plants are usually specific for one particular metal (Baker
and Brooks, 1989), and are adapted to precise climate and soil conditions (not really transferable).
Furthermore, they cannot be managed as a conventional crop, have low biomass, and often a short life
cycle. Therefore it seems more reasonable to search for non hyperaccumulator plants showing good
features for phytoremediation and then transfer biotechnologically traits that make the modified plant even
a more powerful tool than natural hyperaccumulators. Hence, the aim of the work reported in this paper
was to engineer increased heavy metal absorption in a screen selected wild type plant species.
In recent years, genetic engineering is a technique that might be applied advantageously to the
search for more suitable phytoremediation plants combining high metal accumulating capacity and high
aboveground biomass yield (Kärenlampi et al. 2000). With genetic engineering, plants can be manipulated
to accumulate, translocate and tolerate heavy metals, thus creating the ideal transgenic plant for
environmental clean up in the shortest possible time (Pilon-Smits, 2005; Bennett, 2003; Persans et al.,
2001). For instance, genes can be isolated from metal hyperaccumulators and inserted into fast growing
high biomass plant species (Persans et al. 2001). It has been suggested that phytoextraction would become
commercially available if metal removal and tolerance properties of hyperaccumulator plants, such as
Thlapsi caerulescens (Brown et al., 1995; Bennett, 2003) or Pteris vittata (Ma et al., 2001), could be
transferred into fast growing, high biomass producing crop species. The introduction of an additional metal
binding domain to the implemented protein should further enhance the metal binding capacity (Macek et al.
1996, Kotrba et al. 1999). The goal of genetic modification is to develop fast growing, high biomass plants
95

�with the metal accumulation traits of natural small biomass hyperaccumulators: ‘engineered
phytoremediators’ (Ow, 1996). The advantage of this technique is the relatively short space of time and
selective targeting of genes for improvement. Most recently, Cd accumulation was enhanced when a
metallothionein gene from Silene vulgaris L. was over-expressed in tobacco (Nicotiana tabacum L.)
(Gorinova et al., 2006).
The main objective of this study was to evaluate Zn accumulation ability of transgenic (p-SScMTII) tobacco (Nicotiana tobaccum) cultivar Petit Havana and the non-transgenic tobacco cultivar Petit
Havana (SR-1) grown on the nutrient medium with the addition of 0, 5 and 10 mg L-1 Zn. In addition to Zn
accumulation, chlorophyll, glutathion (SH groups), N, P, Cu, Fe and Mn concentrations were also
measured.

Material and Methods
Seeds of transgenic (p-S-ScMTII gene bearing) and non-transgenic tobacco (Nicotiana tabaccum)
cultivar Petit Havana (SR-1) were obtained from RWTH-Aachen Molecular Biology Department. Seeds
were germinated initially on Murashige and Skoog plates containing antibiotic (kanamycine), then
transferred to a perlit and torf (1:1) mixture since having 2-3 leaves (after approximately 4 weeks). Then
the seedlings were transferred into the pots included Hoagland nutrient solutions and were grown under
controlled environmental conditions with a 16 h light/8 h dark period (light intensity of 10 klux or 120
µmol m-2s-1), a 25/20 oC temperature regime, and 60% relative humidity. Hoagland nutrient solutions
consist of 3 mM KNO3, 2 mM Ca(NO3)2.4H2O, 0.25 mM MgSO4.7H2O, 1 mM KH2PO4, 0.001 mM
MnSO4.H2O, 0.1 mM FeEDTA, 0.00025 mM CuSO4.H2O, 0.00025 mM (NH4)6Mo7O24, 0.001 mM
ZnSO4.7H2O, 2.5 mM KCl, 0.0125 mM H3BO3; the medium buffered to pH 5.2. One in every 3 days the
plants were transferred to fresh medium. Plants were treated with 0, 5 and 10 mg L-1 Zn as ZnSO4.7H2O.
Zinc was added to the nutrient medium in doses of 0 (the control), 5 and 10 mg L-1 Zn. This Zn dosage was
addition to initial Zn concentration (0.288 mg L-1) in nutrient solution. The plants were harvested after 15
days of growth. Each treatment was replicated three times for each plant.
Before harvest, plants were assessed for the severity of leaf symptoms caused by Zn toxicity. In
addition, chlorophyll in old and young leaves was measured using a Konica-Minolta SPAD-502 at the
harvest. After harvest, the leaves and roots were separated. The roots were thoroughly washed with
deionized water. For SH analysis in fresh tissues, approximately 0.5 g fresh mass (FM) of each organ was
separately sampled three times, immediately frozen in liquid nitrogen and stored at -80 oC until analysis. In
addition, fresh mass of all plant parts was weighted (data not shown).
The remaining tissues were oven-dried at 70 °C for determination of dry matter amount and then
plant material was decomposed by microwave (MarsXpress) and the heavy metal concentration was
determined by ICP-AES (Inductively Coupled Plasma-Atomic Emission Spectrometry, Varian Series II).
Dried root and shoot samples were ground and digested in 2 mL 30% H2O2 and 5 mL 65% HNO3 in sealed
vessels of a microwave apparatus. Cadmium, Zn, Fe and Cu were measured by ICP-AES. All sampling and
measurements were carried out by using three independent replications. The accuracy of analyses was
verified using blanks and the Virginia Tobacco Leaves (CTA-VTL-2) reference material.
Total N was determined using Kjeldahl metod, total P was determined also using blue color
method and total K was analyzed also using method (Kacar, 1995). Phosphorus, K, Fe, Mn, Cd and Cu
concentrations were also measured by ICP-AES.
SH-group content was determined using 5-5’-dithiobis (DTNB) under 5% meta-phosphoric acid as
a reagent as described in Cakmak and Marschner (1992). Accordingly, 0.5 g fresh plant sample was
homogenized in 5% meta-phosphoric acid and centrifuged at 4000 mg kg-1. The reaction mixture contained
0.5 mL aliquot of the supernatant, 2.5 mL 150 mM phosphate buffer (pH 7.4) containing 5 mM EDTA and
EDTA 0.5 mL 6mM dithiobisnitrobenzoic acid (DTNB). After incubation at room temperature for 20 min
reaction time, the color produced was measured at 412 nm using a Hitachi U-2000 Spectrophotometer.
Reduced glutathione was used as a standard in the range of 0 to 100 µg L-1. All measurements were carried
out in triplicate.
The results of the experiments were analyzed statistically using Statistical Analysis System (SAS
Institute, 1996). Comparisons between means were carried out using the Least Significant Difference
(LSD) test at the significance level of p &lt; 0.05.

96

�Findings
After Zn application, visual symptoms were reported through the experiment. Both non-transgenic and
transgenic plants (SR-1 and p-S-ScMTII) did not show any typically symptom for Zn toxicity, such as
necrosis on oldest leaf, especially on the leaf parts close to stem (data not shown). But non-transgenic
tobacco plant showed slight chlorosis at 10 mg L-1 Zn supply (Fig. 1). Increased Zn application was
obviously decreased the shoot and root growth of both transgenic and non-transgenic tobacco (Fig. 1).
After harvest of the tobacco plants the dry mass production of the shoots and roots were determined and is
shown in Tab. 1. The dry mass of transgenic and non-transgenic tobacco plants decreased with the
increasing concentration of Zn supply in the nutrient solution (Tab. 1) as shown also Fig.1. The highest
shoot and root dry mass were obtained from the p-S-ScMTII gene bearing plants. The dry mass of
transgenic and non transgenic tobacco plants were not significantly different (Tab. 1).

Figure 1: Effect of increasing Zn supply on shoots and roots growth of transgenic (p-S-ScMTII) and nontransgenic tobacco (SR 1) (Nicotiana tabaccum Petit Havana) grown in hydroponic nutrient
solution for 15 days before harvest.

Tested Tobacco
Plant

Zn Supply
(mg L-1 )

Dry Weight

Zn Concentration

Zn Content

Shoot
Root
-1
(g plant )

Shoot
Root
-1
(mg kg DM)

Shoot
Root
-1
(µg plant DM)

TF**

P-S-SCMTII

0
5

3.56
3.78

0.41
0.48

32
784

116
3168

112
3009

49
1543

0.28
0.25

SR-1

10
0
5

2.12
3.46
3.26

0.09
0.35
0.43

1326
31
578

8145
70
2215

2780
106
1885

794
25
970

0.16
0.44
0.26

10

1.86
n.s.*

0.06
n.s.

980
86

7402
306

1846
560

488
232

0.13

LSD (p&lt;0.05)
*n.s.: not significant
**TF: translocation factor

97

�Table 1: Effect of increasing Zn supply on shoot and root dry weight, Zn concentration, Zn content and
translocation factor of transgenic (p-S-ScMTII) and non-transgenic tobacco (SR 1) grown in
hydroponic nutrient solution for 15 days.

The highest level of Zn concentration in the shoots and roots was detected in the transgenic
tobacco plants. The concentration of Zn in the roots was higher than in the shoots in both transgenic and
non-transgenic plants (Tab. 1). Compared to the control plants, increased Zn dosage resulted in higher Zn
concentrations in plant shoots and roots grown in both transgenic and non-transgenic plants. However, the
Zn concentrations were higher in the transgenic plants. Our results are in agreement with Paplikova et al.
(2004). While the shoots of transgenic tobacco plant accumulated similar Zn concentration (31-32 mg L-1
Zn) with the control plant (SR-1) at 0 mg L-1 Zn supply, at 5 and 10 mg L-1 Zn supply accumulated
approximately 1.4 times higher Zn. The highest Zn accumulation observed in roots was in transgenic
tobacco plants at 10 mg L-1 Zn supply (8145 mg kg-1 DM), which was 1.1 times the concentration of the
control plant. The highest Zn accumulation in shoots was observed at 10 µM Zn supply (1326 mg kg-1 DM),
which was 1.4 times the concentration of the control plant. Hyperaccumulation implies concentrations in
dry matter above 1% for Zn, i.e. 10000 mg L-1 (Reeves and Baker, 2000). Transgenic tobacco plant grown
on 10 µM Zn supply can be not evaluated as hyperaccumulator. The distribution of the accumulated metals
within the plant is important, for phytoremediation, especially for the rate of the translocation into the
harvestable parts (Macek et al. 2002). In fact, to evaluate the potential of plants for phytoextraction the
translocation factor (TP) was used. This ratio is an indication of the ability of the plant to translocate metals
from the roots to the shoots of the plant (Marchiol et al., 2004). Translocation factor is calculated by the
ratio of root metal concentration to shoot metal concentration. Metals that are accumulated by plants and
largely stored in the roots of plants are indicated by the translocation factor values &lt; 1 with values &gt; 1
indicating that the metals are stored in the shoots. As this evaluation, the translocation factor values of
tobacco plants were &lt; 1 and these values value verified that the Zn is stored in the roots. The results
showed that p-S-ScMTII gene bearing transgenic tobacco plant is not suitable for phytoextraction either
detected lower amount of Zn concentration (&lt;10000 mg Zn kg-1 DM) in the shoot or the translocation
factor value was less than one.
Zinc content was calculated as dry mass x Zn concentration. Similarly, the highest level of Zn
content in the shoots and roots was detected in the transgenic tobacco plants. The content of Zn in the roots
was higher than in the shoots in both transgenic and non-transgenic plants (Tab. 1). In shoot and root, the
total content of Zn (µg plant-1 DM) (Tab. 1) in transgenic tobacco was larger than in non-transgenic
tobacco plants. However, Zn content in shoot was higher in transgenic tobacco at 5 mg L-1. Since Zn
concentration at 10 mg L-1 Zn supply was the highest but dry mass production was the lowest. This
indicated that transgenic tobacco was tolerant to 5 mg L-1 Zn supply. Content of dry matter of transgenic
plant was not significantly different compared to non-transgenic tobacco (Tab. 1).
The concentrations of Cu, Fe, Mn in the shoots were lower than in roots in both transgenic and
non-transgenic plants. The concentrations of Cu, Fe, Mn in the shoots were higher in non-transgenic
tobacco plant than the transgenic tobacco plant. But this difference was not statistically significant (Tab. 2).

Tested Tobacco
Plant

Zn supply
(mg L-1 )

Cu Concentration

Fe Concentration

Mn Concentration

Shoot
Root
-1
(mg kg DM)

Shoot
Root
-1
(mg kg DM)

Shoot
Root
-1
(mg kg DM)

P-S-SCMTII

0
5

28
27

174
310

81
77

18265
18900

40
46

209
53

SR-1

10
0
5

19
31
34

400
101
181

32
87
85

20322
1900
10126

15
42
56

38
440
147

10

24
2.77

127
49

41
n.s.

3752
2439

24
6.63

561
61

LSD (p&lt;0.05)
*n.s.: not signifigant

98

�Table 2: Effect of increasing Zn supply on Cu, Fe and Zn concentration of transgenic (p-S-ScMTII) and
non-ransgenic tobacco (SR 1) grown in hydroponic nurtient solution for 15 days.

N
Tested Tobacco
Plant

P
Root

Shoot

K

Zn supply
(mg L-1 )

Shoot

P-S-SCMTII

0
5

4.65
4.50

n.d.**
n.d.

0.59
0.59

21.07
1.28

7.54
8.01

4.11
4.13

SR-1

10
0
5

2.80
4.66
4.65

n.d.
n.d.
n.d.

0.44
0.59
0.59

3.00
18.42
1.25

5.90
8.30
8.08

2.47
3.94
4.12

(%)

Root

Shoot

(%)

Root
(%)

10
2.31
n.d.
0.41
3.13
5.56
2.77
LSD (p&lt;0.05)
n.s.*
n.s.
n.s.
n.s.
n.s.
n.s.
*n.s.: not signifigant
**n.d.: not determined
Table 3: Effect of increasing Zn supply on shoot and root N, P and K of transgenic (p-S-ScMTII) and nontransgenic tobacco (SR 1) grown in hydroponic nutrient solution for 15 days.
Effect of increasing Zn supply on shoot and root N, P and K of transgenic (p-S-ScMTII) and nontransgenic tobacco (SR 1) grown in hydroponic nutrient solution for 15 days shown in Table 3. But these
differences for N, P and K are not statistically significant (Tab. 3).
Plants have their own systems for binding heavy metals, mostly based on phytochelatins (Macek et.
al., 2002). As a measurement of phytochelatins was determined spectophotometrically total glutathione
(SH) in the fresh roots and shoots tissue of tobacco plants. Gluthation content of non-transgenic plant was
higher in shoot at especially at 5 and 10 mg L-1 Zn application. But SH content of non-transgenic plant was
not statistically significantly different compared to transgenic plant (Tab. 4).
The contents of chlorophyll on old and young leaf were severely reduced by the Zn applications
relative to 10 mg L-1 Zn supply (Tab. 4), especially with the 10 mg Zn L-1 application. This value verified
visual chlorysis symptom. Similar results in chlorophyll were obtained for each of the two tobacco plants.
SH
Tested Tobacco
Plant

Zn Supply
(mg L-1 )

Chlorophyll

Shoot
Root
-1
(mg kg FM)

Old
Leaf

Young
Leaf
(SPAD)

P-S-SCMTII

0
5

343
136

28
25

37
37

34
31

SR-1

10
0
5

53
269
585

104
25
30

30
39
39

26
35
35

10

462
n.s.*

71
n.s.

32
2

24
n.s.

LSD (p&lt;0.05)
*n.s.: not signifigant

Table 4: Effect of increasing Zn supply on shoot and root SH and chlorophyll (on old and young leaf) of
transgenic (p-S-ScMTII) and non-transgenic tobacco (SR 1) grown in hydroponic nutrient solution
for 15 days.

99

�Conclusion
The remediation of contaminated soil is necessary to preserve the soil resource (Li et al., 2005).
There is an urgent requirement for develop of new techniques which are cheaper and more effective to
remediate the contaminated soils. Using genetically modified plants is a new technique and has been
introduced to remediate metal-contaminated soils. In the present study, the transgenic tobacco showed
higher tolerance to Zn and Zn accumulation more than the non-transgenic tobacco plant. The ScMTII gene
bearing transgenic tobacco showed not the possibility of its utilization for Zn phytoremediation.
Phytoextraction is an environmentally sound method for cleaning up sites that are contaminated with heavy
metals. However, the method has been questioned because it produces a biomass-rich secondary hazardous
waste containing the extracted metals. Therefore, further treatment of this biomass is environmentally
necessary.

Acknowledgement
This research was supported by The Scientific and Technological Research Council of Turkey (TUBITAK),
Project No: 108-O-161. We thank Prof. Dr. Rainer Fisher for tobacco plant seeds.

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102

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                <text>Evaluation of Zinc Accumulation Ability of Transgenic and Non  Transgenic Tobacco</text>
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Arslan, Mehmet
Koleli, Nurcan
Uygur, Veli
Eren, Abdullah</text>
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                <text>The T2 generations of the ScMTII gene bearing transgenic and non-transgenic  tobacco plants were grown on the nutrient medium with the addition of 0, 5 and 10 mg L-  1 Zn to evaluate Zn accumulation capacity. Dry mass of shoot and roots, Zn concentration  and Zn content were determined. In addition to Zn, glutathion (SH groups) concentrations,  N, P, K, Cu, Fe and Mn of shoots and roots were determined. After growth for 15 days on  media containing 10 mg L-1 Zn, non-transgenic plant showed slight chlorosis symptoms,  including significant reduction in growth and chlorophyll. Transgenic and non-transgenic  tobacco plants have been tested in terms of phytoremediator for Zn accumulations. The  highest Zn concentration in shoots and also roots was tested in all Zn supply. The results  showed that Zn accumulation ability of transgenic tobacco plant was higher than nontransgenic  tobacco plants and Zn accumulation in the transgenic and the non transgenic  tobacco plants were lower in the shoots compared to the roots. The Zn concentration in  shoot of transgenic plant was increased by approximately 1.4 times compared to the non  transgenic tobacco plants. Higher amount of Zn concentration in the shoot is a good  indicator as a phytoremediation agent. The results showed that p-S-ScMTII gene bearing  transgenic tobacco plant is not suitable for phytoextraction either detected lower amount  of Zn concentration (&lt;10000 mg Zn kg-1 DM) in the shoot or the translocation factor  value was less than one.</text>
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