54 10 3494 https://omeka.ibu.edu.ba/files/original/0cdb4f475047c474f07f561b811628c7.pdf 77c62548f52325775df2f3abf7f888de PDF Text Text 2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Increasing Importance of Independent Audit of Financial Statements in Developing Countries Hilmi KIRLIOĞLU Prof. Dr., Sakarya University Turkey hilmik@sakarya.edu.tr Ali AKAYTAY Lect., Duzce University Turkey aliakaytay@duzce.edu.tr Abstract: In an economy, basic function of money and capital markets are to ensure the converting savings into investment. Unlike the money markets in the capital markets investors individually may choose the investment tool directly which they want to buy. It has great importance for a country‘s economy that investors to convert their savings effectively into investment. This is possible only if the reliable and timely information need of investors are provided. In this respect, the importance of the subject of accurate and reliable financial information of financial statements announced to public periodically that effect directly the price of investment tools in the capital markets is increasing day to day. Today accurateness and reliability of announced financial informations are seriously examined by users of informations that are announced by companies like shareholders, investors, lenders, consulting organisations and public. First the question ―which factors effect the reliability and accurateness of announced financial informations‖ will be discussed in this paper. And the increasing importance of independent auditing will be emphasized. Besides, in today‘s economical conditions, the factors that are complicating the role of independent auditor and possible technological tools that can be used to increase the efficiency of auditing by eliminating these factors will be addressed. Introduction Some recent events and developments in business and especially in auditing environment which will be discussed below, have highlighted some problems in the auditing process. As a result of these events, it can be seen clearly now that auditors need to take the necessary steps to restore the public confidence in developing and developed capital markets. It‘s clearly understood that various arrangments must be done about the auditing process. Events in the begining of 2000‘s start with Enron – Arthur/Anderson and continue with the others reduced investors confidence to financial statement that are passed from independent auditing. Enron's stock price, which hit a high of US$90 per share in mid-2000, caused shareholders to lose nearly $11 billion when it plummeted to less than $1 by the end of November 2001. The U.S. Securities and Exchange Commission (SEC) began an investigation, and Dynegy offered to purchase the company at a fire sale price. When the deal fell through, Enron filed for bankruptcy on December 2, 2001 under Chapter 11 of the United States Bankruptcy Code, and with assets of $63.4 billion, it was the largest corporate bankruptcy in U.S. history until WorldCom's 2002 bankruptcy (Benston, 2009:497). The Enron scandal, revealed in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based in Houston, Texas, and the dissolution of Arthur Andersen, which was one of the five largest audit and accountancy partnerships in the world. In addition to being the largest bankruptcy reorganization in American history at that time, Enron undoubtedly is the biggest audit failure (Bratton, 2002:61). Even, for Krugman (Krugmen, 2002) the most important event lived in recent years that made critical changes in American society was not September 11, it was the event of Enron. On July 21, 2002, WorldCom filed for Chapter 11 bankruptcy protection in the largest such filing in United States history at the time (since overtaken by the collapse of Lehman Brothers and Washington Mutual in September 2008). WorldCom changed its name to MCI, and moved its corporate headquarters from Clinton, Mississippi, to Dulles, Virginia, on April 14, 2003. Under the bankruptcy reorganization agreement, the company paid $750 20 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo million to the SEC in cash and stock in the new MCI, which was intended to be paid to wronged investors (SEC report, 2009) A well known fact is that too many companies have problems with their bookkeeping. Siebel Systems, Qwest and Xerox are examples of companies that have been ―cooking the books‖. We can call the year 2002 ―the horrible year‖ from a bookkeeping point of view. Unfortunately the year 2002 was not an exception. This manipulation is still going on. A fairly recent example is the Dutch retail trade company Royal Ahold, whose subsidiary in the USA manipulated the operating profit. There are also examples from earlier years. Two of them com from the banking world, where the UK Baring‘s Bank and the Japanese Daiwa‘s Bank lost millions of dollars because of they did not have effective control systems. The third one is a Finnish multinational company, whose subsidiary in Italy overestimated the work in progress and recorded fictious sales. Although the above examples are the tip of the iceberg, they reflect the changing nature and demands in the audit process (Koskivara, 2004:192). In this point the importance of control of business operations and independent auditing can be seen clearly. In the next title concept of accounting manipulation will be discussed. Concept of Accounting Manipulation In the literature and practice several concepts are used in the context of manipulation of financial statements. These concepts are quite similar to each other in some publications to be used interchangeably although there are some differences between them. In this context, the following concepts are to the fore in the literature:      Earnings management Income Smoothing Big Bath Accounting Aggressive Accounting Fraudulent Financial Reporting Each of these concepts have similar consequences and main purpose as to give a different impression to financial information users and affecting their decisions are taken into consideration. Before diving into what earnings management is, it is important to have a solid understanding of what we mean when we refer to earnings. Earnings are the profits of a company. Investors and analysts look to earnings to determine the attractiveness of a particular stock. Companies with poor earnings prospects will typically have lower share prices than those with good prospects. Remember that a company's ability to generate profit in the future plays a very important role in determining a stock's price. That said, earnings management is a strategy used by the management of a company to deliberately manipulate the company's earnings so that the figures match a pre-determined target. This practice is carried out for the purpose of income smoothing. Thus, rather than having years of exceptionally good or bad earnings, companies will try to keep the figures relatively stable by adding and removing cash from reserve accounts (known colloquially as "cookie jar" accounts) (Investopedia, 2010). The term ‗earnings management‘ embodies a wide array of accounting techniques used by management to manipulate the earnings of an entity. While there exists no single accepted definition of earnings management, the accounting literature provides various descriptions of the practice. Schipper (1989:92) describes earnings management as ― . . . a purposeful intervention in the external financial reporting process, with the intent of obtaining some private gain . . .‖. Similarly, Healy and Wahlen (1999: 368) explain that earnings management occurs when managers use discretion to manipulate financial information ― . . . to either mislead some stakeholders about the underlying economic performance of the company or to influence contractual outcomes that depend on reported accounting numbers.‖ Consistent among these definitions is the notion of intentional manipulation of reported numbers by management. However, since managerial intent is unobservable, the current definitions of earnings management are ― . . . difficult to operationalise directly using attributes of reported accounting numbers . . . ‖ (Dechow and Skinner, 2000:238; Powell et al., 2005:9). One of the hardest accounting frauds to spot is big bath accounting. When a company is doing really bad and has no chance of meeting earning expectations, unscrupulous management would begin writing-off every expense and asset they could imagine. As a result, future expenses are reduced significantly and naturallyearnings increase. In other words, the company is taking a big bath in the worst year so it can wipe its slate clean. This almost always guarantees record-breaking earnings in subsequent years, likewise performance bonuses (Yuan, 2008). Numerous definitions of the term ‗fraud‘ have been proposed within the academic and professional literatures. In the criminological, and most general, sense, fraud refers to ― . . . any crime for gain which uses deception as its principal modus operandi‖ (Wells 1997: 4). Fraud encompasses a range of deceptions including 21 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo employee fraud, payroll fraud, insurance fraud, credit card fraud, identity theft, bribery, kickbacks, insider trading, and the deliberate falsification of financial reports. Financial reporting fraud involves intentional deceit on behalf of the preparers of the financial reports, and attempted concealment of that deceit (Albrecht 2003; Albrecht and Albrecht 2004). Such actions result in the financial reports not representing a true and fair view of the company‘s underlying economic position. Fraudulent accounting can be perpetrated in a variety of ways including improper revenue and expense recognition, fictitious revenues and assets, over and/or undervalued assets and liabilities, improper disclosures, and related party transactions (Powell et al., 2005:6). Incentives of Accounting Manipulation Preparing and disclosure of reliable financial statements are in the responsibility of company managers. As a whole, even the company management may work to fulfill its responsibility but some reasons may require financial information users questionize the financial statements that they use in their decisions. Each day growing size of businesses caused increasing financial operations and workload of accounting departmants. Intense workload in the accounting departments, increase the likelihood of erroneous action, such as the increase in the number of employees also increases the likelihood of fraudulent transactions. Financial information produced by companies to be approached with suspicion to justify a reason other users of information are largely outside of business. Users of financial information outside the business can get from the source itself is very difficult or even impossible. Operating results of companies are prepared and disclosed by company managements. This situation also makes risky the reliability and accuracy of produced information. Because the accuracy and reliability of produced information are based on the behaviours of managers and its always possible to give fault information intentionally or unintentionally. As a result of research covering 1982-1992 in United States done by Dechow, Sloan and Skinner (1996) gives the common characteristics of companies that made accounting manipulation are listed as follows:     The majority of board members, are also consists of the general manager and other senior managers of the company, The majority of the general managers are also the founder of the company, The majority of companies don‘t have a partner that have a significant share and also is outside the management, The majority of companies don‘t have independent audit committee. As a result of management structure to focus on specific individuals in this way causes in corporate governance issues, to be opened to manipulation and abuses depending on the intentions of the authorities. Also according to some researchs (Beattie, 1994; Carlson and Bathala, 1997) its understood that for their benefits company managers may apply to manipulation on financial information. As a natural result of accrual basis accounting, managers have to decide on time and amount of accrue of income and expenses. This situation when combined with various policies and objectives inevitably leads to manipulation of financial information. In other words, accrual accounting and the flexibility that it gives to managers is one of the main reasons for the manipulation of financial information. Companies that fail to reach analysts' estimates for multiple quarters can see their stocks drop precipitously. When Procter & Gamble warned that it would not meet analysts' consensus forecast in the first quarter of 2000, its stock price fell 30%. When P&G issued further warnings just before the end of the second quarter of 2000, the stock price fell another 10% and P&G's CFO was fired. As reported in CFO Magazine (December 1998), one CFO told SEC Chief Accountant Lynn Turner that when the CFO warned an analyst that the company might just miss consensus estimates, the analyst told him, "You're a bright guy; you'll figure out how to make it." Many companies depend on financial leverage in optimizing returns to stakeholders. To establish a business's creditworthiness, debt rating agencies use much of the same information as stock analysts. A slight drop in earnings or negative expectations about future prospects could cause a decline in a company's debt rating, increasing its cost of capital and diminishing prospects for new debt issues. Companies in highly competitive industries may want to maintain an edge in revenues or market share. In 1998, Sensormatic Electronics, a maker of security systems, actually stopped its clocks, which stamped shipping dates and times on finished products, 15 minutes before noon on the last day of a quarter, so it could continue to make customer shipments within the quarter until it had reached its sales target. The SEC brought charges and Sensormatic settled without admitting or denying misconduct. Many debt and lease agreements, as well as other contractual arrangements, contain covenants in which a company agrees to attain certain 22 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo earnings, debt, or other ratios, or limit payments to shareholders. When a company is in danger of missing one of the covenants, the agreement may provide for immediate repayment or other specified performance. Manipulating earnings slightly can improve ratios enough to avert such dangers (Duncan, 2001). Because of the reasons listedabove, it is unavoidable that independent auditors have to examine and tell his opinions about financial statements prepared by business managements that are going to be disclosed to public. Effects of Independent Auditing for More Trusted Financial Statements Because of the reasons listed above it is hard for investor to accept the reliability of financial information easily that they base upon their decisions. It is needed to be decreased the risk of being unreliable of financial information and some potential precautions can be thought for that. One precaution maybe financial information users to audit the information they use their own. Reliability of the information coming out of business before it is used to examine whether the need is clear. One way to do this from the users of financial information are to control themselves. However, this application is often impossible because of information users usually not to know the control procedures, lack of time. Sharing the risk of unreliable risk of financial information maybe thought as another precaution. Despite this logical path, and the legal implementation of the management of compensation seems to be a difficult process (Bozkurt, 1999:20). In accounting and auditing, internal control is defined as a process effected by an organization's structure, work and authority flows, people and management information systems, designed to help the organization accomplish specific goals or objectives. It is a means by which an organization's resources are directed, monitored, and measured. It plays an important role in preventing and detecting fraud and protecting the organization's resources, both physical (e.g., machinery and property) and intangible (e.g., reputation or intellectual property such as trademarks). In spite of the size of publicly traded companies are required to establish internal auditing system in their structure. In this sense, theoritically, internal control systems can be seen as a tool for public offering of the financial statements as accurate and reliable. However, according to Young (2002:18), in examined accounting manipulation events it‘s seen that internal control systems can‘t do the expected mission to offer financial information users to have exact reliable financial information. The inadequacy of the precautions discussed above, requires an independent audit. In other words it seems as the most effective method in the time and cost issue that an independent person that‘s confidential for all parties of information users will going to audit if the information prepared and disclosed by company management is reliable and accurate. Main task of independent auditor is to form a reasonable opinion about the financial statements of company for information users will basis their decisions confidentally. Independent auditors are under a big responsibility because of that his opinion affects all investment decisions of investors, in other words financial information users. Reliable information independently audited, will be guided in the right way in their decisions to all parties related to financial information of companies. Conclusions As a result of several recent developments in capital markets and the business world, financial information users need of accurate and reliable financial information is increasing every each passing day. To meet these needs and capital markets to work properly, is only possible with effective independent auditing. While independent audit function undertake such an important role like this, for some reasons like the companies and transactions they operate are growing each day, it is not easy for independent auditor to achive his aim with classical auditing methods. It‘s clear that auditor will need new tools for more effective auditing in today‘s business world. For that academicians and practitioners have to give more attention on this subject. As a result of information technology, computer operations capabilities of the software programming and particularly with the rapid developments in the increasing usage of these technologies to be adopted by businesses recording and reporting business transactions become more easier when compared with past. According to this we can say that its not easy even impossible auditors to audit their clients with classical manual methods and it‘s clear that they must use these new technological tools for more effective audits. In recent years another useful tool that academicians and practitioners work on for more effective audits is analytical review based on artificial neural networks. Several systems based on artificial neural networks and in widespread commercial use for accounting and financial tasks are described by Brown et al. (1995). These include:  FALCON, used by six of the ten largest credit card companies to screen transactions for potential fraud. 23 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo     Inspector, used by Chemical Bank to screen foreign currency transactions. Several ANNs used to assist in managing investments by making predictions about debt and equity securities as well as derivative instruments. Several ANNs used for credit granting, including GMAC‘s Credit Advisor that grants instant credit for automobile loans. AREAS, used for residential property valuation. Developers of commercially used ANNs generally consider the inner workings of their systems to be proprietary information that gives them a competitive advantage. As a result, artificial neural networks can be applied as a means of enhancing the effectiveness of independent audits and it can be said that its possible to have more successfull results when compared to traditional methods. We hope that our study draws attention to this important issue and will guide future research and applications. References ALBRECHT, W. S. (2003). Fraud Examination. Ohio, South-Western Thomson Learning. ALBRECHT, W. S. and C. Albrecht (2004). Fraud Examination and Prevention. Ohio, South-Western Thomson Learning. BEATTIE, V., Brown, S., Ewers, D., John, B., Manson, S., Thomas, D., Turner, M. (1994), ―Extraordinary items and income smoothing: A positive accounting approach‖, Journal of Business Finance and Accounting, Vol:21, No:6, pg: 791-811, September. BENSTON, George J. (November 6, 2003). "The Quality of Corporate Financial Statements and Their Auditors before and after Enron" (PDF). Policy Analysis (Washington D.C.: Cato Institute) (497): 12. Retrieved 2009-09-28. BOZKURT, N. (1999), Muhasebe Denetimi, Alfa Yayınları, Ġstanbul. BRATTON, William W. "Enron and the Dark Side of Shareholder Value" (Tulane Law Review, New Orleans, May 2002) p.61 BROWN, C.E., Coakley J.R., Phillips M.E. (1995), ―Neural Network Enter The Management Accounting‖, Management Accounting, Vol:76, No:11, s.51-57. CARLSON, S.J., Bathala, C.T., (1997), ―Ownership differences and firms‘ income smoothing behavior‖, Journal of Business Finance & Accounting, Vol:24, No:2, pg: 179-196, March. COAKLEY, J.R., C.E. Brown (2000), ―Artificial Neural Networks in Accounting and Finance: Modeling Issues‖, International Journal of Intelligent Systems in Accounting, Finance and Management, v. 9, No:9, p.119-144. DECHOW, P. M. and D. J. Skinner (2000). "Earnings Management: Reconciling the Views of Accounting Academics, Practitioners, and Regulators." Accounting Horizons 14(2): 235-250. DUNCAN, J.R. (2001), ―Twenty pressures to manage earnings‖, The CPA Journal, July 1 HEALY, P. M. and J. M. Wahlen (1999). "A Review of the Earnings Management Literature and Its Implications for Standard Setting." Accounting Horizons 13(4): 365-383. Investopedia (2010), http://www.investopedia.com/ask/answers/191.asp KOSKIVAARA, E. (2000), ―Artificial Neural Network Models for Predicting Patterns in Auditing Monthly Balances‖, Journal of the Operational Research Society, v. 51, s. 1060-1069 KRUGMAN, P. (2002), The Gread Divide, The New York Times, January. MCI Inc - SC 13D/A - LCC International Inc ." Securities and Exchange Commission. March 14, 2003. Retrieved on September 25, 2009. 24 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo POWELL, L., Christine J., Paul de L., Kim Langfield-Smith (2005), ―The Distinction between Aggressive Accounting and Financial Reporting Fraud: Perceptions of Auditors‖, AFAANZ Conference. SCHIPPER, K. (1989). "Commentary on Earnings Management." Accounting Horizons 3: 91-102. WELLS, J. T. (1997). Occupational Fraud and Abuse. Austin, Texas, Obsidian Publishing Company. YOUNG, M. R., (2002), Accounting Irregularities and Financial Fraud, A Corporate Governance Guide, Second Edition, Aspen Law & Business. YUAN, C. (2008), ―Big Bath Accounting Fraud‖, http://www.moolanomy.com/1048/big-bath-accounting-fraud/, December. 25 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 143 Title A name given to the resource Increasing Importance of Independent Audit of Financial Statements in Developing Countries Author Author KIRLIOĞLU, Hilmi AKAYTAY, Ali Abstract A summary of the resource. In an economy, basic function of money and capital markets are to ensure the converting savings into investment. Unlike the money markets in the capital markets investors individually may choose the investment tool directly which they want to buy. It has great importance for a country‘s economy that investors to convert their savings effectively into investment. This is possible only if the reliable and timely information need of investors are provided. In this respect, the importance of the subject of accurate and reliable financial information of financial statements announced to public periodically that effect directly the price of investment tools in the capital markets is increasing day to day. Today accurateness and reliability of announced financial informations are seriously examined by users of informations that are announced by companies like shareholders, investors, lenders, consulting organisations and public. First the question ―which factors effect the reliability and accurateness of announced financial informations‖ will be discussed in this paper. And the increasing importance of independent auditing will be emphasized. Besides, in today‘s economical conditions, the factors that are complicating the role of independent auditor and possible technological tools that can be used to increase the efficiency of auditing by eliminating these factors will be addressed. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed HB Economic Theory https://omeka.ibu.edu.ba/files/original/8c9e756311ea94a898ae9f3278e59e6c.pdf cb7f3bc2e9e74e72313da4c7b67d32e7 PDF Text Text 2nd International Symposium on Sustainable Development, June 8-9, 2010 Sarajevo Social Life in the Poems of Classical Turkish Poets from the Balkans Zülküf KILIÇ Tuzla University, Faculty of Philosophy, Turkish Language and Literature Department, Tuzla, Bosnia-Herzegovina kiliczulkuf@hotmail.com Abstract In many poems, it is possible to see how most of the classical Turkish poets and especially Ottoman Divan poets played active roles in the social life with their poems and vigorously work to direct the society and to open up new prospects by preferring a literary style which transcribe the deficiencies and failures of society instead of a passive attitude against the social issues. To reveal the bond of literature, which we analyzed sociologically, with social life, we chose Classical Turkish poets from the Balkans as the reference of our study. Keywords: Balkans, poets, social, life, poem. Introduction Communication, which started with the existence of human beings, and words, which is the most important element of communication, became the strongest and essential carrier of culture through language. The efforts to express the words beautifully and effectively gave birth to literature and literature always included aesthetics within itself. No doubt that the literature to seek the beauty didn’t cause it to be just an aesthetic tool. Without interfering to the nature of literature, in other words without touching the words that are gathered together for obtaining beauty, saying that literature will not be foreign to the social life, seeing the natural organic bond between social life and literature will not be an interference to the aesthetic characteristic of literature, on the contrary it would be a realistic and true approach to its wide content integrity. Of course, literature doesn't have a function as to reflect the social life as it is, however stating that literature is a space that only opens its window to aesthetics within its ivory castle completely out of the boundaries of social life will be a total misinterpretation of literature. Sociology of literature which is based on the literature and society relationship has the tendency to perceive literature from a totally different perspective. Sociology of literature makes effort to analyze social conditions with the things it obtained from literature and observations, and to find sociological connections by taking the literature as the basis. Literature is the name of one of the self- or society-oriented abstract creation forms of the individual. However the thing we referred as personal abstract creation isn’t performed only with a single element. This is something constructed on social basis. Like other intellectual activities, literature is the transfer of knowledge to consciousness and consciousness to language. Besides explanatory and objective scientific fields, art and literature penetrate into the surface of social life, too. In this respect, there is a need to analyze literary texts and examine what kind of relationship there is between these texts and social reality in order for the social analyses to reach healthier results. The poems especially the ones focused on real life in literature, directed our attention to sociology of literature. This kind of poems lived their brightest periods during the social, political, economical and moral corruption and degeneration. Generally their target is society, cruel and repressive administrators, laws and rules that caused these moral corruptions, customs and traditions, and bad economies. Briefly their target is everything that's bad in the social life and everyone, every mentality and idea that caused this badness. Since intervening in deficiencies and failures of social life in parallel with the divine thinking beyond personal anger and jealousies is more dominant in poems whose subject is society, the poems which doesn’t dissociate themselves from life tend to be more objective and to remove and repair observed faults in the social life. For this reason, when we look from the social perspective, we can see that social poems abstain from the personal things and they bear a constructive characteristic instead of a destructive one. Yet the subjects of social 420 �2nd International Symposium on Sustainable Development, June 8-9, 2010 Sarajevo poems are not eyes, noses, eyebrows etc. of someone, they are the faults that will harm the social progress and future. When we look from this perspective and observe that criticisms of the past are in line with the complaints of the present, it would be clear to us that social poems are essential for the future and welfare of societies. Social Corruption In other words, the thing we named as “degeneration” is not a cause of social corruption, it is the result. In societies whose political authority weakened and economy hit the bottom, moral corruption will be faster, and characteristics and behavior that were not seen in the society before will be observed. The society reaches to a point that the concepts such as "shame" or “sin” will be of secondary importance and stepping out of some social norms will not be found odd, instead it will be seen as natural. The fact that humans are alienated from innocence and stuck into the dirt of life and get corrupted, caused a wind of hopelessness to blew and fed these people to perceive life negatively. We can see the hopelessness portrait in the following poem that mentions degenerations in the general structure of the society, the forgotten characteristics such as divine aim, justness, and honesty. The hopelessness to increase among people as the dimensions of corruption enlarge can be perceived as a natural result. And for this reason, after a specific point people stop thinking big and start chasing their individual desires and thinking small. Mest olduğumuz yâd-ı lebinden güneh ise Bu devrde bes kim buluna bî-güneh ey dost Ahmed Paşa, Ode 21, 4. couplet It attracts attention to the facts that people are dehumanized by only desiring to own assets and smart people live in difficulties, that even beautiful people are degenerated as a prisoner of their own desires and people to show no sensitivity about subjects such as gossip. When corruption starts in a society, the existence of this is felt in all stages of the social life. Tendency towards loose woman; increase in dishonest, mean, dishonorable, corrupted men were other subjects that attention was directed to in that period. In these periods where material things were desired and the spirit was neglected, it is an inevitable ending for people to move away from the beauties such as goodness, loyalty by leaving aside all those behaviors which make humans who they are. The corrupted and distrustful characteristics which couldn’t go beyond being the cause of doubts in fellow creatures were emphasized. These mentioned corruptions were not just external; these also came from the individual’s internal being. We see that in people who don’t hesitate to trust others for their most valuable assets, now all these good qualities and the trust they have for each other are damaged. Now there is no one to trust in the world who will keep thousands of secrets. Corruption is not just in specific individuals or groups; its existence is felt in everyone somehow. When the society is corrupted, people cannot stay out of this social picture. Since people are the ones that make the society what it is. Âdemlik insân olmadır mi'râc-ı rûhu bulmadır Îsâ vücûda gelmedir nefh ile Meryemden garaz Hayâlî, Ode 231, 4. couplet And these behavior patterns of power owners who abandoned some of their good qualities accustomed in the society were not welcomed by poets, they are criticized. Ehl-i fazlın bilinir kadri senin kapında Hazretin alsa eline yine mizân-ı kerem Ahmed Paşa, Eulogy 27, 39. couplet And the changes and corruptions in the desires and essences of those on the top are degeneration. Dedi kadd-i bülendimde anunçin eğridir zülfüm Ki meyl ettikçe bâlâya olur dûd-ı siyâh eğri Ahmed Paşa, Ode 332, 5. couplet The fact that majority of the people in the society to be degenerated, not being able to find, see a single person as a true friend, someone to relieve you causes people to be alone in the crowds, and single among the unities. 421 �2nd International Symposium on Sustainable Development, June 8-9, 2010 Sarajevo And people to be toughen by arrogance and incapacity that rise in line with this toughness, lose of good qualities such as being sensitive to the problems of others are other examples of corruption and this negative change. The drastic decrease in the number of people, who can be human with their essence, integrity and every behavior instead of their appearance, is the sign of times where hopes are gone, the lights are off, and a dark future is ahead. People feel really sorry for loosing unifying traits such as friendship and kinship in the society; however they are not doing anything. And time to take away all those wise, insightful, trustworthy people and to clean them from all these beautiful traits can only be observed from a distance with desperate and tired eyes, and no power can be found to fight against the time that takes away all those beauties one by one. The fact that those who are corrupted with all the ugliness of the world to be happy with this situation instead of thinking to get rid of all these ugliness is a sign which shows how a weak role the humankinds started to play. Hôş gelir ehline âlâyiş-i çirk-i dünyâ Câme âlûdeliği zînetidir bakkalın Sabit, Ode 221, 4. couplet Trust, which is the main brick of a society and which should offer comfort to the society, to disappear among people of this time is another dimension of corruption. Aldanma uyup her girîve-i rûbâha Sâbit sığın ol kerîm olan Allâh’a Gör vâkı'a-ı Yusuf ü gürk-i çarhı Đhvân-ı zemân ipile inme çâha Sabit, (Musajjac) Quatrain 1 Changes in the Approach to Honor and Shame Concepts Giving up acquiring some of the values after a while is a sign that sanction power of social norms are decreased and individuals adapted to the new condition. Of course this new approach is a material of criticism when it is assessed within the general rules of the society. The tendency of those, who have weak values of honor and shame in the society, to disgracefulness was criticized. Sabit who mentioned the unkindness of parents and the weakness of honor concept in the society also attacked amorality and corruption of the generation. Dünyâyı tokuz dolaşsa âdem bulamaz Baba-yı şefîk bir selîmü'l-bâli Ferzend-i nüh âbâ-yı felek olmakla Ebnâ-yı zemâne heb tokuz babalı Sabit, (Musajjac) Quatrain 8 Inequality Inequality concept is a fact that emerged in the relationship of the much stronger one and the weak one. This concept generally acquires currency in rebellious situation. Hayreti, who couldn’t solve why the inequality dimension is high among people and the difficulty of understanding this situation, questioned the reason of this situation. Kamu bir âdem oğlu iken insân Kimi bende kimi mevlâ nedendir Hy.K.17-15 'Anâsırda berâberken bu mahlûk Kimi ednâ kimi a'lâ nedendir Hy.K.17-16 Kimisi eylemiş dûzahda mesken Kimine Cennetü'l-Me'vâ nedendir Hayretî Eulogy 17, 15 and 16. couplets Ahmet Pasha who reacted against the inequality concept that emerges at the point where people with 422 �2nd International Symposium on Sustainable Development, June 8-9, 2010 Sarajevo different financial capabilities or different qualities cannot be collected at the humanity common denominator drew a portrait of hopelessness and desperation. Olma ey dil müşterî yârin metâ’-ı vaslına Kim senin fakrın kavî anın gınâsı ber-kemâl Ahmed Paşa, Ode, 183, 8. couplet Corruption and Bribe Making things done with bribe and doing things with bribe is a social degeneration complained every period. Fuzûlî complaints about public officers who don’t do any job without taking a bribe in its famous work of Complaint “I said hello, but they didn't accept as it wasn’t a bribe”. The criticism of Tûtî-i Latîf in the subject of a qadi known with the name Koca Keşiş to become the qadi of Kırk Kilise by giving Head of Financial Department Iskender Çelebi hundred silver coins is important since its shows that corruption started in the titles such as qadi, professor in the XVI. century. Vermese yüz papası Koca Keşîş Mansıba kimse râzı olmaz idi Olmasa idi papası el-hâsıl Kırk Kilîseye kâdî olmaz idi******************** When the bribe claims increased about Iskender Çelebi, he was discharged from his job. With the discharge of him, Emâni who was one of his fellows criticizes him with a historical stanza. Đrtişâ kasrını yaptıkda Sikender Çelebi Tahtasın sîmden ettirdi vü zerden mîhin Der ü dîvârını nakş eyleyicek ol dânâ Kati açık boyadı çog ediben zirnîhin Münteşîr olıcak efvâha peyâm-ı ‘azli Hâtıf-i gayb dedi rüşvet ile târihin†††††††††††††††††††† Sabit from Bosnia cannot understand those who take bribe without satisfying with the thing they deserve and questions this situation. Âb-ı ruh-ı kanâ'ati ni'met bilen niçin Mahcûb-ı dâğ-ı nasiyye-i irtikâb olur Sabit Eulogy 13, 51. couplet Conclusion The literature’s relationship with other scientific branches in line with its place within the civilization history enlarged the enlightenment scope of the literary works. As a matter of fact the products under the heading of literature reveal the beliefs, life styles of the society besides feelings and thoughts. Besides these; social relationships, mythological values, behavior patterns and all kinds of natural events reflect into the scope of literature and find a place for themselves among the syllables. When we look at the interdisciplinary relations, we can see that the sciences have close, distanced or indirect connections with each other. Even though the relationship between literature and sociology is primarily seen with concrete indications such as contribution of literature to social studies and sociology to be a source for literature; they also have a parallel dialog among them in terms of method, interaction and criteria. As general history which follows a historical process, history of literature also analyzes and explains spiritual and physical developments of nations based on literary sources. The works that found a body and collected under the roof of literature that nations created throughout centuries are analyzed by various scientific ******************** F. KILIÇ Meşâ’irü’ş-Şu’arâ (Âşık Çelebi Tezkiresi), (Yayınlanmamış Doktora Tezi), Gazi Üniversitesi, Ankara, 1994 s. 376. †††††††††††††††††††† M. ĐSEN, Künhü’l Ahbar’ın Tezkire Kısmı, s. 198 (Gelibolulu Âlî, Emânî’nin, velinimeti olan Đskender Çelebi için böyle bir eleştiri yapmasını nankörlük olarak görür.) 423 �2nd International Symposium on Sustainable Development, June 8-9, 2010 Sarajevo branches or used as a reference. At this point, the history of literature which is an important sub-branch within the general history helps sociology and facilitates its task. That’s why a solid history of literature plays a special role in the analysis of national literature both in terms of sociology and sociology of literature. When we look from a wide perspective, we see that the degree of literature’s impact area and its connection to other scientific field has a pluralistic center and perspective. The criteria and methods used for analyzing the sources literature and sociology fed on and the degree they affect each other are also important. Sociology and literature to get closer to each other has a role in knowing the unreflected sides of power and achievement both in terms of writing and creating texts. Besides this, the literary work takes the data and qualities that are required to fictionalize the world expressed with words from the rational world. By this way, we also see a direct reflection of the real world in the literary works. And this real world and social creation chain brings literature and sociology closer. Literature and all the other art branches cannot be alienated from the society that they are living in. Even though the poets from Balkans lived at a place far away from Anatolia, they weren't indifferent to the realities of both Anatolia and the land they were living on, and they drew the picture of the society in their poems. References ÇAVUŞOĞLU, Mehmed, M. Ali TANYERĐ, (1981), Hayretî Dîvân, Đstanbul Üniversitesi, Edebiyat Fakültesi Yayınları, Đstanbul. ĐSEN, Mustafa (1995), ÂLÎ (Gelibolulu) Künhü’l-Ahbar, Atatürk Kültür Merkezi Yayını, Ankara. KARACAN, Turgut SABĐT, (1991), (Bosnalı Alaaddin) Sabit Dîvânı, Cumhuriyet Üniversitesi Yayınları, Sivas. KILIÇ, Filiz (1994), Meşâ’irü’ş-Şu’arâ (Âşık Çelebi Tezkiresi), (Yayınlanmamış Doktora Tezi), Gâzi Üniversitesi, Ankara. TARLAN, Ali Nihat (1992), Ahmet Paşa Dîvânı, Akçağ Yayınları, Ankara. ------------------------ (1992), Hayâlî Dîvânı, Akçağ Yayınları, Ankara. 424 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 729 Title A name given to the resource Social Life in the Poems of Classical Turkish Poets from the Balkans Author Author KILIÇ, Zülküf Abstract A summary of the resource. In many poems, it is possible to see how most of the classical Turkish poets and especially Ottoman Divan poets played active roles in the social life with their poems and vigorously work to direct the society and to open up new prospects by preferring a literary style which transcribe the deficiencies and failures of society instead of a passive attitude against the social issues. To reveal the bond of literature, which we analyzed sociologically, with social life, we chose Classical Turkish poets from the Balkans as the reference of our study. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/b6e1a3b588ed26607b2cac97be3cbd3d.pdf 5dfe92a1c7b4b97221eae0d8b3f3293d PDF Text Text 2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo The Global Financial Crisis Of 2008 And Turkey Ramazan KILIÇ Assoc. Prof., Dumlupinar University Faculty of Economics and Administrative Sciences Department of Economy, Kütahya/TURKEY rkilic@dumlipinar.edu.tr, ramazank43@hotmail.com Abstract: The First World Economic Crisis that started in 1929 and rapidly influenced all the countries around the world resulted in stagnation, common unemployment, increase in foreign trade deficits and consequent decrease in the level of welfare. The policies initiated in order to decrease and eventually delete these effects of the crisis could only give results many years later. However, erasing the effects of the first crisis was not enough to put an end to the world crises. In 1970 a new crisis bringing along worse results than the previous, began. During this period of both inflation and stagnation, the results have been more destructive. The third major crisis that affected the world economy deeply is, of course, the Global Financial Crisis of 2008. This crisis has affected all the countries around the world and its effects are still visible. In this respect, the Turkish Economy was also influenced by this crisis. In this paper, firstly, economic crises were analyzed, and then the global crises were evaluated from the perspective of Turkey. Introduction After the First World Economic Crisis that emerged in 1929, a new crisis harsher than this one emerged. The third important crisis that deeply affected world economy is the 2008 Global Financial Crisis. Economy of Turkey was affected not only by global crises but also by peculiar structural problems and crises which emerged on regional level. Definition of Globalization and Its Development The concept of globalization is one which has been intensely used beginning from theaftermath of 1980s. Though there are many definitions for globalization, there is no concept which was agreed upon so far. The concept of globalization is a multidimensional and a difficult to restrict issue. The most important reason for this is that globalization is a process which is not merely economical. There are also social, political, and cultural aspects of globalization. Sociologists such as Anthony Giddens and John Tomlinson, by referring to its multi-respect characteristics, appreciate it as a multidimensional procedure with economical, social, cultural and technological aspects. (Rugman, 2000, p.23) Global Financial Crises Crises which deeply affected world economy are 1 st World Economic Crisis of 1929, Oil Crisis of 1970 and Financial Crisis of 2008. Crisis of 1929 In world economy, an atmosphere fitting to theses of Classical Economists continued until 1920s. Until then, in addition to that there was not remarkable unemployment in economies, the incomes increased in a stable way and general level of prices kept its stability. But, from the end of 1929 on, the existing balances started to go out of order on a serious level. While the number of unemployed in USA was 1.5 million in 1929, this number reached to 13 millions in 4 years by increasing 10 times. Likewise, while USA had a production of goods and services which made 103 billion dollars, this number 702 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo remarkably decreased to approximately 55 billion dollars in 1933 (ġıklar,p.249). This rate of decrease was 40 per cent in Germany, approximately 30 per cent in France, and 10 per cent in England (Yıldırım, Karaman…,2009, p.13). These negative indications about USA and some European countries were observed almost all around the world and this incident was historically recorded as First World Economic Depression. Crisis of 1970 The second most severe crisis after the First World Economic Depression is the Crisis of 1970. The most important reason for this crisis was that OPEC countries increased the oil prices to four times higher than before. As a result of the over increases of oil prices, important rise in the general level of prices occurred. Along with the rise in the general level of prices Gross National Product also decreased on a great level. This situation was historically recorded as ―stagflation‖ (Parasız, 2006, p.313). The Crisis of 2008 After the Crisis of 1970 which was named as Oil shock, the most important crisis that deeply affected World economy is The Financial Crisis of 2008. This crisis was seen as problems in the payback of mortgage credits in USA and its effect was felt all around the world in a short period of time. The most common effects of this crisis were seen as; decreases of Gross National Products, increasing unemployment rates and common corporation bankrupts. Global Crises and Turkey The Crisis of 1929 and Turkey The first of crises that deeply affected World Economy is the World Economic Crisis of 1929. This crisis affected both European economy and the US economy. The crisis caused result such as important decreases in production, mass unemployment, foreign trade deficits and which emerged with stagnation, and decrease in the level of wealth which emerged in relation with all these. During the period of World Economic Crisis of 1929, Economy of Turkey determined an economy politics which had started with Ġzmir Economics Congress of 1923 and had determined its objectives. In accordance with these objectives, decisions of investment and production leaded by the state were made and started to be applied. (Kılıçbay, 1992, p.100) Yet, ―World Economy Depression‖, which had in early 1929 and of which the effect was felt all around the world, restricted especially the export in Economy of Turkey that had not been opened to abroad yet (Kılıçbay, 2006, p.101). Economy was in quite a gradual yet a determinate development stage which would make the infrastructure of the developments of following periods (Kılıçbay, 2006., p. 101). The Crisis of 1970 and Turkey OPEC had increased oil prices to 4 times higher in a short time in 1972 and these price increases had continued with interruptions in the following periods. This situation deeply affected both world and Economy of Turkey (Kılıçbay, 2006, p.153). Foreign Exchange reserves rapidly decreased, internal prices rose, inflation, unemployment and stagnation were experienced simultaneously in this period. The effect of this incident, named as ―Stagflation‖, became devastating on economies. (Karluk, 2005, p. 4040-405, Kılıçbay, 2006, 153). Turkey was greatly affected with its inflation rate rising up to 100 per cent and 0 per cent growth rate in the period between 1973 and 1980 (Kılıçbay, 2006, p.156). Asian Crisis of 1998 and Economy of Turkey After a very rapid growth, South Asian Countries went into a great depression in the last quarter of 20 th century. The following chart clearly puts forward this situation (Parasız, 2006, p.318.). 703 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Countries Indonesia Malaysia Korea Thailand Average 1970-1996 1997 1998 6.8 4.7 -15.5 7.4 7.8 -4.7 8.4 5.5 -6.5 7.5 -0.4 -7.0 7.5 4.4 -8.4 Chart: Growth Rates at Some Asian Countries As it is seen in the chart, while Asian countries grew on average 7.5 per cent, this rate decreased to 4.4 per cent in 1997 and to -8.4 per cent in 1998 in the period of 1970-1996. As a result of South Asian Crisis, Indonesia Rupiah, Korea Won and Malaysia Ringgit devalued at a rate of 60 per cent. Since TL was too valuable in this period, Turkish Goods faced unfair competence with South Asian origin goods (Parasız, 2006, p.318). Great Economic Crises Turkey Experienced after 1980 Crises of November 2000 and February 2001 in Economy of Turkey Turkey legislated on a foreign exchange hoe, which anticipated the approximation of pre-declared devaluation and inflation, to be valid by 1 January 2001. But foreign trade balance-sheet deficit grew as a result of that TL was initially too valuable, that interest rates decreased rapidly and that consumption spending and export increased in relation with this (Parasız, 2006,p.318). Meanwhile, since the deficits of state banks grew and Demirbank could not fulfil its undertakings Crisis of 15 November 2000 was experienced (Parasız, 2006, p.317-318). The first banking crisis occurred in 1994 in Turkey. In this period 3 banks were cleared. Banking sector grew 18 per cent by displaying a recovery in 1995. But the sensitivity of banking sector toward liquidity and interest rates increased in 2000 as a result of Asia Crisis of 1998 and earthquake disaster which was experienced in 1999 in Turkey (Karluk, 2005, p.361). As a result of the crisis in November 2000, 9 banks were transferred to TMSF (saving deposit insurance fund). This crisis also paved the way for the crisis in February 2001 (Yılmaz-ġen, 2006, p.325). Crisis of November 2000 in Turkey is a crisis of banking to a great extent. Such a result was inevitable when 100 per cent reassurance provided for investments and socio-economic conditions of the period came together. Crisis of February 2001, which is the most profound crisis ever, burst out in Turkey when the effects of this crisis and wrong policies of the period were combined with political risks. In February 2001, ―flexible rate of exchange‖ was facilitated by resigning from firm money policy which had been used for 14 months. The interests had risen to 7500 per cent in 21 February 2001, and Ġstanbul Stock Market decreased 18.1 per cent, the worst ever. As a result of these developments, rate of exchange was left to fluctuation and while one US dollar was 686.500 TL on 19 February, it rose to 920.000 on 23 February and to 960.000 on 28 February. So, TL lost 40 per cent value against US Dollar in 10 days (http://www.econturk.org/Turkiyeekonomisi/krizdenkrize.pdf). Crisis of 2008 and Turkey Reasons for Financial Crisis of 2008 Financial crisis of 2008 was an all of a sudden event. It occurred as a result of the combination of many negative developments in world economy. The main reasons for the developments which had deeply affected World economy can be gathered under the following titles. a. Current deficits of USA which had been going on since 1990s and that this deficit increased more and more (http://blog.milliyet.com.tr/Blog.aspx?BlogNo=144073). b. Abundance of US Dollars in world markets due to current deficit of USA. c. Stagnation of Japanese economy due to first mortgage crisis in Japan ever in 1993 and therefore that Japanese had to drive the reserves they had to world markets (http://www.gazeteport.com.tr/EK ONOMI/NEWS/GP_356985). d. That the Hedge Funds started to find fund as a result of increasing Leverage rate (on record rates of 1*88) (Eğilmez, 2008, Reasons for Global Crisis) 704 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo e. Over securitization at financial markets f. Significant lack of auditing on major actors (Hedge Funds and Investment Banks, Morgan Stanley, Merrill Lynch etc.) at financial markets The combination of the reasons, which were given as main titles above, and financial balloon in the world burst out as a result of mortgage crisis in USA. This situation was followed by the bankrupts of some investment banks and mortgage banks of USA and England. Likewise; (http://economictimes.indiatimes.com/quickiearticleshow/3552098.cms), as a result of the crisis, Bank of America paid 4 billion US dollars countrywide for risky debts of mortgage debtors on 11 January. Northern Rock was nationalised after a financial crisis on 17 February in England. Bear Stears was sold to US investment bank JP Morgan Chase (2 dollars per share), US Treasure and Federal Reserve supported national housing market by an effective nationalisation of Mortgage finance companies; Fannie Mae and Freddie Mac on 13 July. Conclusion A great liquidity urge started in world economy which started first as a result of mortgage crisis and then as a result of explosion of huge financial balloon. This development which first burst out in financial sector, also started to affect reel sector in a short time. The negative developments in reel sector were observed all around the world in 2009 and it is inevitable that it will go on in 2010. These negative developments, which were felt all around the world, definitely affected Economy of Turkey and this effect will go on in the following periods. But the measures taken so far, determinate and stable policies toward preserving macroeconomic stability minimized the degree of effect. Loyalty to the applied stability program might minimize this degree of effect in the future. References Ahmet KILIÇBAY, Türk Ekonomisi, 4. Baskı, Türkiye ĠĢ Bankası Kültür Yayınları, Ankara, 1992. Alan M. Rugman, GlobaleĢmenin Sonu, Mediacat Yayınları, Oxford, 2000. Alan Rugman, GloballeĢmenin Sonu, Mediacat Kitapları, 2000. Aytekin Yılmaz, KüreselleĢme, Minima Yayıncılık, Ankara, 2007. Ġlker Parasız, Küresel Kriz, 9. Baskı, Ezgi Kitabevi, Bursa, 2009. Ġlker Parasız, Makro Ekonomi, 9. Baskı, Ezgi Kitabevi, Bursa, 2006. Ġlyas ġIKLAR (Editör), Ġktisada GiriĢ, Anadolu Üniversitesi Yayınları, EskiĢehir, 2009. Kemal Yıldırım, Doğan Karaman ve Murat TaĢdemir, Makro Ekonomi, Seçkin Yayınevi, 8. Baskı, Ankara 2009, s.13. Mahfi Eğilmez, Küresel Krizin Nedenleri, http://www.radikal.com.tr/Defaul t.aspx?aType=YazarYazisi&ArticleID=899956&Yazar=MAHF%C4%B0%20E%C4%9E%C4%B0LMEZ&Date=23.09.2008&C ategoryID=101 Rasim Yılmaz-Ali ġen, ―Finansal Krizler ve Finansal Krizleri Açıklayan Teoriler‖, Dünya Ekonomisinden Seçme Konular, Editörler;Fatih Çelebioğlu-Feride Öztürk, Seçkin Yayınevi, Ankara, 2006. S. Rıdvan Karluk, Cumhuriyetin Ġlanından Günümüze Türkiye Ekonomisinde Yapısal DönüĢüm, Gözden geçirilmiĢ 10. Baskı, Beta Basım Yayım, Ġstanbul 2005. http://blog.milliyet.com.tr/Blog.aspx?BlogNo=144073, Küresel Ekonomik Krizin Türkiye‘ye Etkileri ve Çözüm Yolları. http://economictimes.indiatimes.com/quickiearticleshow/3552098.cms, 2008: Year of global financial crisis http://www.econturk.org/Turkiyeekonomisi/krizdenkrize.pdf http://www.gazeteport.com.tr/EKONOMI/NEWS/GP_356985, Son 70 yılın en kötü yılı: 2008. 705 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 210 Title A name given to the resource The Global Financial Crisis Of 2008 And Turkey Author Author KILIÇ, Ramazan Abstract A summary of the resource. The First World Economic Crisis that started in 1929 and rapidly influenced all the countries around the world resulted in stagnation, common unemployment, increase in foreign trade deficits and consequent decrease in the level of welfare. The policies initiated in order to decrease and eventually delete these effects of the crisis could only give results many years later. However, erasing the effects of the first crisis was not enough to put an end to the world crises. In 1970 a new crisis bringing along worse results than the previous, began. During this period of both inflation and stagnation, the results have been more destructive. The third major crisis that affected the world economy deeply is, of course, the Global Financial Crisis of 2008. This crisis has affected all the countries around the world and its effects are still visible. In this respect, the Turkish Economy was also influenced by this crisis. In this paper, firstly, economic crises were analyzed, and then the global crises were evaluated from the perspective of Turkey. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed HB Economic Theory https://omeka.ibu.edu.ba/files/original/2714c8c9acbd99ce7429aae01f84bd5b.pdf 2e1af8003dd9929120ef752f6df24450 PDF Text Text 2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Global Financial Crisis: Economic Austerity Measures Of Turkey Merve KILIÇ Fatih University, Turkey mervekilic@fatih.edu.tr Abstract: The global financial crisis has been the worst financial crisis since the one related to the Great Depression of the 1930s. It contributed to widespread business contraction, increases in unemployment, shrinking government revenues, declines in consumer wealth, and so a significant decline in economic activity. Many causes have been cited about the global financial crisis by leading economists and experts. Both market-based and regulatory solutions have been presented to lessen the dramatic effects of the crisis. The collapse of a housing bubble, which peaked in the United States in 2006, erupted in 2007 and led to a global financial crisis in 2008. This crisis has been triggered by a dramatic rise in mortgage delinquencies and foreclosures in the U.S. and has caused the values of securities tied to housing prices. So it has damaged financial institutions all over the world. The financial crisis which began in industrialized countries quickly spread to emerging and developing economies. Questions about bank liquidity, declines in credit availability, and damaged investor confidence had a negative impact on global markets, and caused large losses during 2008. This global crisis also affected Turkey. But the effects of this crisis on Turkey were limited. Demand in global and national markets has decreased. So the trade level in both national and global markets has also decreased. Bank‘s liquidity and profitability seemed healthy during such a crucial crisis. There were several policies of Turkish Government to diminish the effects of financial crisis about interest rates, tax rates, exports rediscount credit limit etc. This study aims to analyze the effects of the global financial crisis and the measures taken by Turkey to lessen the negative effects of it on Turkish economy. Introduction A first glance at Turkey‘s performance in the current global financial crisis shows that it has managed to weather the global stormy conditions relatively well. Although Turkey has been negatively affected by this crisis, it has succeeded to avoid collapsing into a currency and financial crisis. Activity in the real sector has contracted sharply, mainly as a result of both collapsing external demand and strongly declining domestic demand. A financial crisis similar to those in the 1990s and in 2000/2001 has been avoided before. Experiences of Turkey from those previous crises have conserved it from the last global financial crisis. However there are still negative signals in the economy that have occurred because of old vulnerabilities of the Turkish economy. Warning indications that the Turkish economy include developments related to the timing of the economic slowdown, the fairly large correction of the exchange rate at the beginning of the crisis, concerns regarding the external indebtedness of the private sector and the numerous voices calling for policy anchors, such as the introduction of binding fiscal rules or a new IMF arrangement (Macovei, 2009). This global financial has affected not only U.S., but also all the countries in the world. 2008-2009 financial crisis was the deepest one since 1929 Great Depression. Governments have taken several measures to decrease the effects of this crisis in their countries. Turkish Government also has taken several measures toward global financial crisis. Although Turkey experienced crises before, this last one was different from others. 1990s and 2000/2001 crises of Turkey were triggered by domestic instability rather than international factors. The main purpose of this paper is to analyze the economic austerity measures of Turkey to lessen the affects of the global financial crisis. In this paper general causes and the consequences of the crisis will be also assessed. The market collapse which started in U.S. now dispersed all over the countries and affected the world economy. As a developing country, Turkey, has applied several policies. Those policies should be some different than Turkey applied in prior crisis, because the causes of the last one was so different. The paper is organized as follows. The second section analyzes the causes and consequences of the Global Financial Crisis which has occurred in the U.S. The third part explains the effects of this crisis on Turkish Economy. 712 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo The economic austerity measures which have been taken by Turkish Government have been explained in the fourth section. The last section gives the conclusions of this study. Causes and Consequences of the 2008-2009 Global Financial Crises The turmoil in the U.S. subprime mortgage market, which erupted in the second half of 2007, started to spillover to the overall markets challenging both financial and economic stability. There are mainly two reasons underlying the widespread and devastating effects of this crisis. The first one of these is globalization phenomenon that has gained pace early 1980s reaching peak 2000s. Globalization led to financial and economic systems to be highly integrated. The second one is that this is a financial crisis and that erupted in many developed economies simultaneously (www.tcmb.gov.tr). There were other reasons that had triggered the global financial crisis underlying those two main reasons. The first one was the bursting of the housing bubble. Falling house prices have a major effect on household wealth, spending and defaults on loans held by institutions. Events in the U.S. typify a global phenomenon. From 2000 to 2006, house prices in some areas doubled and then subsequently collapsed. While house prices were rising so strongly, credit was supplied liberally to meet the demand as perceptions of risk fell. The rising wealth boosted confidence and spending (Mckibbin and Stockel, 2009). Low interest rates and large inflows of foreign funds created easy credit conditions and encouraged debt-financed consumption. Easy credit, and a belief that house prices would continue to appreciate, had encouraged many subprime borrowers to obtain adjustable-rate mortgages. This credit and house price explosion caused a building boom and a surplus of unsold homes. As the number of unsold houses increased, the U.S. houses prices begin declining in mid-2006. The decline in mortgage payments also reduced the value of mortgage-backed securities, which eroded the net worth and financial health of banks. This vicious cycle was at the heart of the crisis (www.wikipedia.org). The second reason, even though the U.S. had low and sometimes negative savings rates, there was a ―global savings glut‖ coming from the savings of China, Japan, the Middle East, and Europe. It is widely believed that one of the driving forces of over lending and reckless investment in the U.S. housing market came from the global imbalance in savings and investment. The Asian financial crisis occurred in 1997 after some Asian nations suffered seriously from slumping exchange rates because of a lack of foreign reserve. Many of the emerging countries started to save their money in foreign reserves, particularly U.S. dollars. This global saving mainly from China, Japan, Russia, Taiwan, India, Brazil and other oil-exporting countries, was used to buy U.S. Treasury bonds and other U.S. securities. The global imbalance reflected the chronic shortage of savings relative to investment in the U.S. and other developed countries, but the substantial savings surplus to investment in emerging countries (Yu et al., 2009). The third cause was the creative financial intermediation made possible by innovative, but complex, mortgage securities. These securities were sold globally under a lax financial regulatory system with the promise of stable and generous long-term returns (Yu et al., 2009). Along with the rise of unregulated lenders came a rise in the kinds of subprime loans that economists say have sounded an alarm. The large number of adjustable rate mortgages, interest-only mortgages and ―stated income‖ loans are an example of this thinking. ―Stated income‖ loans, also called ―no doc‖ loans and, sarcastically, ―liar loans,‖ are a subset of Alt-A loans. The borrower does not have to provide documentation to substantiate the income stated on the application to finance home purchases. Such loans should have raised concerns about the quality of the loans if interest rates increased or the borrower became unable to pay the mortgage (Bianco, 2008). The causes of global financial crisis are summarized in G-20 Financial Markets and World Economy Conference Declaration. These developments, together, contributed to excesses and ultimately resulted in severe market disruption: During a period of strong global growth, growing capital flows, and prolonged stability earlier this decade, market participants sought higher yields without an adequate appreciation of the risks and failed to exercise proper due diligence. At the same time, weak underwriting standards, unsound risk management practices, increasingly complex and opaque financial products, and consequent excessive leverage combined to create vulnerabilities in the system. Policy-makers, regulators and supervisors, in some advanced countries, did not adequately appreciate and address the risks building up in financial markets, keep pace with financial innovation, or take into account the systemic ramifications of domestic regulatory actions. Major underlying factors to the current situation were, among others, inconsistent and insufficiently coordinated macroeconomic policies, inadequate structural reforms, which led to unsustainable global macroeconomic outcomes. There are long-term and short-term consequences of this global financial crisis. Slower global growth was one of the dramatic results of the crisis. Global growth stood at 5 percent in 2007, but IMF expects world growth to 713 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo slow to 3 percent in 2009. Some countries experienced economic contraction after the crisis. In G7 countries except for the United States and Canada, GDP growth was slower in Q2 of 2008 compared to Q1. Three major European economies (Italy, France and Germany) experienced negative GDP growth in Q2, and forecasts are for a continued decline in Q3. The IMF forecasts around 0 percent growth for advanced economies in 2009, and the Federal Reserve Bank of San Francisco said that the U.S. economy will face a sharp slowdown in the final quarter of 2008 and a small contraction in the first quarter of 2009. The crisis caused financing challenges for governments. There is some risk that governments may not be able to guarantee the stability of the financial system, as it has become clear in the case of Iceland, where the banking sector has assets of around 300% of GDP, something no government could ever guarantee, at least not on a short-term basis. Other crucial consequence of the crisis was the rising unemployment. The IMF also predicts that unemployment in the advanced economies will rise from 5.7 percent in 2008 to 6.5 percent in 2009. As economic growth slows, some sectors, including construction and real estate services, are likely to experience disproportionate employment declines. Significant job losses in the financial sector of the industrialized nations are also likely. Since its employment peak in December 2006, the U.S. financial industry has lost 172,000 jobs. In September 2008 alone, the U.S. lost 17,000 financial jobs, representing 10.6% of total employment losses that month. The financial sector employment in Europe exhibits similar downward trends. Another result was the decreasing trade volume. According to the IMF, the forecast for world trade volume growth (in terms of goods and services) has been revised downwards by 1.9 percentage points to reach 4.1% in 2009, with a likely impact on labor markets in developing and emerging economies. A drop in exports, as well as capital inflow, may trigger a falloff in investments. Deceleration of growth and deteriorating financing conditions may trigger further business failures and possibly more banking emergencies – the result being that some countries may slip toward a balance of payment crisis (Khatiwada and McGirr, 2009). The Effects of the Global Financial Crisis on Turkish Economy Turkish economy has high level of integration with world economy through trade and financing channels. So the contagion of the Turkish economy from the crisis is related with this integration. The problems in global credit markets have led to loss of consumer confidence, domestic uncertainties and deterioration in risk perceptions, and so decline in international trade. So, the impact has come mainly through two channels: the collapse in external demand has affected Turkey‘s key exports while subdued domestic lending and capital inflows have depressed domestic demand (Macovei, 2009). The effects of the crisis have been significantly felt after the second quarter of the 2008 when economic growth rate started to decline in Turkey. As a result, Turkish economy grew by only 0.9 percent in 2008, while the growth rate was 4.7 percent in 2007. As the global uncertainties intensified at the beginning of 2009, the slowdown of the economy deepened. The GDP contracted by 14.3 percent in the first quarter of 2009. However, with positive effects of fiscal stimulus packages the slowdown of the economy moderated in the second quarter. As a result, Turkish economy contracted by 10.6 in the first half of 2009. The unemployment rate, which was 10.3 percent in September 2008, increased to 16.1 percent in February 2009. Partly due to the effect of the tax reductions implemented in certain sectors, the unemployment rate began to fall and realized at 13 percent in June 2009. Consumer inflation declined to 5.3 percent as of August 2009. It is expected to be around 5 percent at the end of the year. The Central Bank short-term interest rates decreased to 7.25 percent, down by 10.5 percentage points compared with the last quarter of 2008. Market interest rates also decreased in line with the interest rate policy of the Central Bank (www.tbb.org.tr). Both external and internal demand decreased, and so output and income declined. External financing became limited. The unemployment rate increased. On the other hand, interest and inflation rates have decreased (Tab. 1). GDP (YTL/TL) Real GDP Growth Inflation Unemployment Rate The Central Bank Short-Term Interest Rates Dec.2002 275.032 6.2 29.7 10.3 Dec.2003 356.680 5.3 18.4 10.5 Dec.2004 430.511 9.4 9.3 10.3 Dec.2005 486.401 8.4 7.7 10.3 Dec.2006 575.784 6.89 9.7 8.8 Dec. 2007 856.387 4.67 8.4 10.6 Dec. 2008 950.144 -1.1 10.1 13.6 Nov. 2009 700.958 -6.5 6.53 13.0 44 26 18.0 13.5 17.5 15.75 15.0 6.5 Table 1: Selected Economic Variables (percentage) Source: TURKSTAT 714 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Foreign direct investment came into Turkey has also adversely been affected by this crisis. The liquidity crunch which has been triggered by the crisis eventually led to a downward trend in foreign direct investments. According to UNCTAD (United Nations Conference on Trade and Development), FDI inflows declined by 15 percent according to preliminary figures of 2008. According to UNCTAD data, investment inflows into developed countries dropped 32.7 percent, while inflows into developing countries increased by 3.6 percent. In the first ten months of 2009, FDI inflows to Turkey have reached to 6.622 billion USD. In parallel to the decline in global FDI inflows in 2008, FDI inflows declined by 18 percent in Turkey and received a total of 18 billion USD. The decline in FDI inflows to Turkey are reflecting the global downward trend (Fig. 1). Figure 1: FDI (Foreign Direct Inflows) to Turkey (2002-2009) Source: www.treasury.gov.tr The effects of the crisis on Turkish economy can be classified as effects on real economy, effects on financial markets, and effects on banking sector. The Impact on Real Economy Global financial economic crisis has a significant negative impact on the real economy of Turkey. The negative effects of the global crisis on Turkey‘s real economy have become highly evident in the last quarter of 2008 and in the first quarter 2009. The real sector has been impacted through two main channels: external demand has shrunk significantly since October 2008, and domestic demand has contracted in tandem with deteriorating business prospects and lending conditions (Macovei, 2009). The index of industrial production has declined sharply since August 2008. Industrial capacity in this global financial crisis has decreased more than it decreased in 2001 financial crisis. Manufacturing industry is an important part of Turkish economy. It creates employment and export opportunities. More specifically, about 4.5 million work force is employed and about 95% export of export generated in the manufacturing industry. Due to the economic crisis, the manufacturing production declined (Çiçek and Hatırlı, 2009). Several industries, in particular car industry, were highly sensitive to a drop in external demand, mainly that originating from the European Union countries. Annual decline in the automotive sector doubled the rate recorded in the 2001 crisis. In the 2001 crisis, the lowest level attained by the drop in the capacity utilization rate was 68.5% in April 2001, whereas in the current crisis, the capacity utilization rate sank to 63.8% in both January and February 2009 in the automotive industry. Production in the automotive sector contracted on average by almost 30% annually in the second half of 2009 (Tab. 2). The machinery and textiles sectors are also contracted by around 24% and 20%, respectively in 2008 (Tab. 3 and Tab. 4). 715 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo 2004 2005 2006 2007 2008 2008 (11 months) 2009 (11 months) Change (%) 20082009 Production (Thousand) Export (Thousand) 864 916 1.026 1.133 1.147 1.108 775 -30 519 561 706 830 910 873 560 -35 Exp./Production (%) 60 61 69 73 79 79 72 - Table 2: Production and Export of Automotive Industry Source: OSD Dec.2006 107.8 107.7 100.1 113.8 110.0 Dec. 2007 115.3 114.8 102.9 120.9 126.7 Dec. 2008 114.3 112.7 91.4 115 133.9 Oct. 2009 117.9 116.7 93.2 114.2 109 Total Industry Manufacturing Textile Machinery Transportation Equipment Table 3: Industrial Production Indexes (2005=100.0) Dec.2006 Dec. 2007 -1.9 -2.6 -10.9 -16 13.6 Dec. 2008 -17.8 -20.1 -22.0 -14.8 -40.0 Oct. 2009 6.5 6.6 4.9 9.4 -4.6 Total Industry 2.6 Manufacturing 1.6 -5.0 Textile 17.8 Machinery Transportation 10.0 Equipment Table 4: Percentage Change of Monthly Industrial Production Index over to the Same Month of the Previous Year (2005=100.0) Source: TURKSTAT World trade contracted 9.8 percent in the last quarter of 2008 and 31.9 percent in the first half of 2009 (Fig. 2). The annual volume of external trade was USD 348 billion as of September 2008 and dropped to USD 258 billion as of June 2009. Decline in exports has been significant in the current crisis whereas in the previous one they were less affected. This result is as expected. Because in the last crisis the whole world is in recession. Figure 2: Export levels of the World and Turkey Source: http://www.istanbul2009turkey.org/istanbul2009/Turkey/Turkish%20Economy.pdf Together with the weakening in oil and commodity prices and decline in exports of technology intensive sectors with higher dependency, imports has also been declining since October 2008 (Fig. 3). 716 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Figure 3: Exports and Imports Source: http://www.istanbul2009turkey.org/istanbul2009/Turkey/Turkish%20Economy.pdf Export (YTL/TL) Import (YTL/TL) Dec.2002 54.622 78.390 Dec.2003 70.370 103.425 Dec.2004 90.327 139.677 Dec.2005 99.039 157.381 Dec.2006 123.342 201.078 Dec. 2007 139.340 221.029 Dec. 2008 170.513 258.691 Nov. 2009 130.143 175.654 Table 5: Exports and Import of Turkey Source: TURKSTAT As a result, world trade volume and global economic activity has weakened substantially because of the global financial turmoil especially since the third quarter of 2008. Parallel to this development, Turkey‘s exports has been declining since October 2008 due to the significant slowdown in her major trading partners, especially in the European Union (EU). The increase in trade volume with African nations turned out to be a factor that restricted the further fall in exports (www.istanbul2009turkey.org). The Impact on Financial Markets The Turkish currency and financial markets came under significant pressure from the turmoil in global markets that broke out in July 2007 and subsequent decline in risk appetite for emerging market investments. The Istanbul Stock Exchange lost about 55% of its value from July 2007 until March 2009, when a rebound started. Between March and June 2009, the stock exchange regained some ground, but remained around 30% below the July 2007 value (Fig. 4). Figure 4: Price Indices ISE National-100, According to Closing Price Source: www.tcmb.gov.tr 717 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Turkish Lira has been in a strengthening period after 2002. The Lira became more volatile during the subprime credit crunch, but did not depreciate strongly until October-November 2008- after Lehman Brothers collapsed. So, international financial crisis put upward pressure on the exchange rate and TL depreciated. From October 2008 until March 2009, the lira lost around 25% of its value against Euro, but has since regained about 10% (Macvoeli, 2009). The Lira also lost about 20% of its value against US Dollar from September 2008 to June 2009. The Impact on Banking Sector In Turkey, the financial sector is yet at the stage of growth. It is small and shallow when compared with the financial sectors of developed countries. It is estimated that the ratio of financial assets, consisting of bank assets, shares and public and private borrowing instruments, to GDP was 150 percent for Turkey, 246 percent for developing countries and 421 percent for the world in 2007. The banking system has a major share in the financial sector (www.tbb.org.tr). After the 2001 financial crisis, a restructuring program was applied in the banking sector. Bankrupt banks were closed, taken over or merged with other banks after the 2001 crisis. Risk management systems improved and public supervision became more effective in this period. Banking Regulation and Supervision Agency fulfilled its regulation and supervision responsibilities very well in 2000s. The banking sector has showed a rapid growth performance after this program. The total assets rose from USD 130 billion to USD 465 billion, their ratio to GDP from 57 percent to 77 percent. In this period, the financial structure of the sector also became stronger. The shareholders‘ equity of the sector also became stronger. The shareholders‘ equity of the sector increased from USD 16 billion to USD 54 billion and its free equity from USD 3 billion to USD 40 billion (www.tbb.org.tr). As a result of success of ―Banking Restructuring Program‖ and change in the risk management conception Turkish Banking Sector seemed well positioned to weather the global financial crisis, the opposite of the situation in the EU and the US where the crisis was first triggered by the financial turmoil. Financial sector as a whole and banking sector grew faster than the general economy in 2008. Total assets of Turkish financial sector and banking sector grew 23% and 26%, respectively. Total assets of Turkish financial sector and banking sector reached to 945.4 billion Turkish Liras (TL) in 2008 (Bastı, 2009). Performance indicators of the banking sector were also generally positive in 2008. Capital adequacy ratio of the sector is above the legal limits. There is small deterioration in solvency and leverage ratios, but debt repayment capacity of the banking sector seems still healthy. Profitability of the banking sector is still very high by the end of 2008 (Bastı, 2009). The Economic Austerity Measures of Turkey against the Global Financial Crisis The authorities and organizations adopted a series of measures to lessen the effects of the global financial crisis on their own countries, and also in Turkey. Those anti-crisis measures adopted by the authorities initially on the monetary side and subsequently became more pronounced in the fiscal policy area. This was broadly in line with the crisis response packages adopted internationally, while taking into account the particularities of Turkey‘s macroeconomic framework in terms of available room for counter-cyclical measures. The Central Bank, Banking Regulation and Supervision Agency, and Turkish Government have taken some austerity measures against global financial crisis to protect Turkey from the negative effects of the global financial crisis. Central Bank Measures against the Global Financial Crisis Problems in the international credit markets have heightened since the second half of September due to increased concerns over the credibility of the financial system, thus leading to liquidity problems in many countries. During this period, the Central Bank adopted the following regulations in order to ensure the efficient functioning of the foreign exchange market and to strengthen foreign exchange liquidity in the banking system in case of liquidity problems (www.tcmb.gov.tr ): Central Bank declared that it will resume its activities as an intermediary in the Foreign Exchange Deposit Market until the removal of uncertainties in international markets since 9 October 2008. Central Bank increased its transaction limits in the Foreign Exchange Deposit Market by twofold to USD 10.8 billion since 23October 2008. Central Bank extended lending maturity to one month from one week in the Foreign Exchange Deposit Market since 21 November 2008. It adopted a strategy to use foreign exchange reserves to primarily support the foreign exchange liquidity need of the banking system. The reserve requirement ratio was unchanged at 6 percent in liabilities, but it was lowered to 9 percent from 11 percent in foreign exchange liabilities 718 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo since 28 November 2008. With this measure, the Central Bank provided an additional liquidity of USD 2.5 billion to the banking system. The Central Bank Regulation on the Liquidity Support Facility governing the principles and procedures set forth for the utilization of credit facilities as stipulated in subparagraph (c) of the (I) of Article 40 of the Central Bank Law was published. Accordingly, the loans will be available (www.tbb.org.tr):  as advance payments, with one month maturities for a maximum of one year period,  at the lending rate set for the intraday transactions carried out at the Interbank Money Market; bearing in mind the principle that interest rates applicable to credits of this nature are higher than those applicable to normal open market transactions of the central banks,  against collaterals accepted at the Interbank Money Market,  being limited to the amount twice as much as the equity capital of the applying bank. In the last quarter of 2008, global financial conditions have been tighter than required by the stance of monetary policy, owing mainly to the intensification of the global financial crisis. Turkey has also been undergoing a similar process. In this context, the Central Bank recently made a measured cut in short-term interest rates, in order to offset the extra tightening in monetary conditions (www.tcmb.gov.tr). Because of the fluctuations due to decrease in the depth of foreign exchange market, the Central Bank has decided to inject foreign exchange liquidity into the market in March 10, 2009 through pre-announced foreign exchange selling auctions under the basic principles of floating exchange rate regime. Daily amount of foreign exchange to be sold via auctions has been set as USD 50 million. Until April 2009, when the auctions were postponed, the amount sold through auctions reached USD 900 million. The Central Bank has started foreign exchange buying auctions in order to increase foreign exchange reserves and the amount bought through the auctions reached to 1.3 billion dollar as of September 15 2009 (www.istanbul2009turkey.org). The Central Bank cut its interest rates and extended the maturity in foreign exchange deposit market in order to prevent a possible foreign exchange squeeze in the financial market. Accordingly, lending rate was reduced to 5.5 percent from 7.0 percent for USD, and to 6.5 percent from 9.0 percent for Euro. The maturity of interbank transactions was extended to 3 months from 1 month (www.tbb.org.tr). Central Bank increased the exports rediscount credit limit by USD 500 million to USD 1 billion in order to contain the effects of the global financial crisis on industry sectors. Additionally, the rules and principles applicable to the exports rediscount loan limit were rearranged for rendering the use of these loans easier. Therefore, the condition that sets forth assignment of the reserves for letters of credit to the Central Bank was repealed (Erdönmez, 2009). The Banking Regulation and Supervision (BRSA) Measures against the Global Financial Crisis The Banking Regulation and Supervision (BRSA) adopted certain measures aimed at preserving the financial strength of banks and containing the effects of abrupt changes in the financial asset prices on banks‘ capital adequacies. BRSA required banks to get permission for distribution of the 2008 earnings and to protect the balance sheets of the banks from the last interest rate increase BRSA made a new arrangement. BRSA allowed banks to reclassify the securities in their balance sheet from trading portfolio to investment portfolio for once only. BRSA allowed banks to restructure the loans apparently posing no problems in order to ensure smooth functioning of the loan relations between banks and non-financial institutions (www.tbb.org.tr). The Government Measures against the Global Financial Crisis To mitigate the adverse effects of global financial crisis on the Turkish Economy the Government has taken various measures. Credit subsidies have been provided to the real sector with special focus on small and medium enterprises and also exporters, guarantee and credit limits of Eximbank were increased, value added tax and special consumption tax on many products such as automobile, furniture, home appliances and residential estates were reduced temporarily, withholding tax on stocks for local investors was removed, the amount of short-term working allowance was increased and its duration was lengthened, unemployment insurance payments were amplified, infrastructure expenditures to the Southeastern Anatolia Project were increased, transfer payments to local governments were increased, incentives on income tax, energy supports, and social security premiums were extended for one year, a new employment package was prepared, a new incentive system was prepared to support investments taking sectoral and regional priorities into consideration, loan guarantee application for small and medium enterprises (SMEs) were enhanced, regulations for reconstructing cumulative credit card debts were put into practice (www.treasury.gov.tr). 719 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo The Government sought authorization from the Parliament for increasing and determining for a period of two years the deposit insurance coverage, which was TL 50,000. This amendment allowed for the Treasury‘s direct guarantee on the deposits insured as the Savings Deposit Insurance Fund‘s (SDIF) own resources would not be sufficient to cover an unlimited insurance on deposits for which the SDIF was authorized under the current law. Additionally, the Finance Ministry introduced tax advantages for sectors. Accordingly, payment of the tax dues which became payable before 1 September 2008 was decided to be deferred to December 2008 and with 18 installments (www.tbb.org.tr). With a law, called Asset Peace Law, the real and legal person owing money, foreign exchange, stocks and other precious assets abroad as of 1 October 2008 allowed to bring them and register those precious assets in Turkey by paying two percent tax. Similarly, it was also decided that current income and corporate taxpayers should be able to register their existing securities and real properties inside Turkey which were not registered as of 1 October 2008 through payment of five percent tax (Erdönmez, 2009). ―The Law No. 5834 About Omission of the Past Records for Unpaid Checks and Protested Promissory Notes, and Credit and Credit Card Debts‖, known as the law for the amnesty records allowed the deletion of the real and legal persons‘ past records kept at the Central Bank for their unpaid checks, protested promissory notes, and credit debts ensuring that such sums are totally paid before or within 6 months after its effective date or restructured and totally paid. The Government introduced a new economic austerity package for companies, employees, and retired people as a law. With this law, the short term employment fund implemented over Unemployment Fund was extended to 6 months from 3 months. The amount of compensation was increased by 50 percent. According to this law the retirement wages could never be seized (Erdönmez, 2009). The Government also announced other measures in order to ease the effects of the global financial crisis on 13 March 2009. Accordingly, it was adopted that (www.tbb.org.tr):  consumption tax applied to durable goods and automobiles to be lowered for a period of 3 months,  value added tax (VAT) applied to real estates to be lowered to 8 percent from 18 percent for a period of 3 months,  an additional subsidy of TL 75 million to be extended to SMEs,  resource utilization support fund to be cut by 5 percentage points,  capital of Eximbank to be increased,  discounted night tariff for pricing the use off electricity in industry sector that applied to weekdays only to be extended to cover also weekends and other public holidays,  Special Communication Tax of cable, wireless, and mobile internet service is decreased from 15 percent to 5 percent,  For 1979 and old model of automobiles which will be written off remission of tax is enabled,  To encourage the merger of SMEs the Government adopted a tax measure. SMEs which merge with other SMEs until 31 December 2009 will be exempted from corporate tax or pay reduced corporate tax down to 7.5%.  To accelerate domestic demand the Government extended the Private Consumption Tax from 15 June 2009 to 30 September 2009. Conclusion The world faced a serious crisis for the first time after the ―Great Depression‖ which started in U.S. and has spread all over the countries in a short time. Turkey has also been affected by this crisis. Foreign direct investment inflows, export, domestic demand, and industrial production have declined, while the unemployment rate and inflation rate have increased. Foreign exchange rate has been also affected dramatically. Lira has lost value against Euro and US Dollar. To mitigate those adverse effects of global financial crisis on the Turkish Economy, the Government, the Central Bank, and Banking Regulation and Supervision Agency have taken various measures. Some of the measures taken in order to cushion negative impacts of global crisis to the national economy have been successful, some of them expected to be effective in the forthcoming periods. A pick up in Turkish economy is expected parallel to the recovery of the world economy. In fact, the economical figures show that Turkey is more resilient to both domestic and external shocks than her previous crisis experiences. The pressures on the exchange rate have not affected banking sector and currency so much. The banking sector has remained healthy and profitable; despite the main source of the global financial crisis was financial sector. Foreign direct investment has declined but continued to flow into the country at moderate levels. Istanbul Stock Exchange has lost value, after a while it has started to regain its value. It can be concluded that the performance of Turkish economy under such a serious crisis validates the success of Turkey‘s past restructurings. 720 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo On the other side, the dramatic rise in unemployment rate and the sharper than expected decline in economic activity show that there are still some vulnerabilities of Turkish economy. According to many analysts the negative effects of the current crisis will remain awhile because of the weak external environment, low levels of external and domestic demand, and shrinkage of the foreign capital inflows. The recession has stroked the bottom in the first quarter of 2009. In the rest of the year the economy has started to rally by force of tax incentives which have provided increase in domestic demand. At this juncture, policymakers should aim to sustain the improvement in investor confidence and to decrease the unemployment rate. Structural reforms boosting the small and medium enterprises (SMEs) and so the competitiveness of the business sector would help improve the performance of the economy in the upturn. As for the Turkish economy‘s future prospects, the increase in GDP between 2002 and 2007 shows that Turkey has an apparent growth potential. With her growth potential, young population, diverse and qualified workforce, entrepreneurial spirit, Turkey is a crucial potential market for global investors. Its strategic location between Europe and Asia give her an important role in this area and makes it a relatively attractive business location. The last developments demonstrate that some of the problems of Turkish economy have been solved, but there are still remaining problems which are waiting to be solved. So, Turkey has to continue to make restructurings and reforms to achieve its expected growth potential. References Ataman Erdönmez, P. (2009). Küresel kriz ve ülkeler tarafından alınan önlemler kronolojisi. Bankacılar Dergisi, 68, 85-101. Bastı, E. (2009). 2008 Global financial crisis and the Turkish financial system. C.U. Sosyal Bilimler Enstitüsü Dergisi, 18 (2), 89103. Bianco, K. M. (2008). The subprime lending crisis: Causes and effects of the mortgage meltdown. CCH Mortgage Compliance Guide and Bank Digest, 10 Dec 2009. < http://business.cch.com/bankingfinance/focus/news/Subprime_WP_rev.pdf >. Khatiwada, S., & Emily, M. (2009). Current financial crisis: A review of some of the consequences, policy actions, and recent trends. International Institute for Labour Studies, 02 Dec 2009. < http://www.scribd.com/doc/7882284/Current-Financial-Crisis-aReview-of-Some-of- >. Macovei, M. (2009). Growth and economic crises in Turkey: Leaving behind a turbulent past?. European Economy, 1 Dec 2009. < http://ec.europa.eu/economy_finance/publications/publication16004_en.pdf >. McKibbin, W. J., & Andrew S. (2009). The global financial crisis: Causes and consequences. Working Papers in International Economics, 05 Dec 2009. <http://www.melbourneinstitute.com/conf2009/Presentations/Session%205/McKibbin_Stoeckel_Session_5.pdf >. Uğur, Ç., & Hatırlı S. A. (2009). Küresel ekonomik krizin Türkiye imalat sanayine etkileri. Suleyman Demirel University, 15 Dec 2009. < http://idc.sdu.edu.tr/tammetinler/kalkinma/kalkinma35.pdf >. Yu, W. C., David, W. K., & Tessema, M. (2009). The great destruction: Causes of the global financial crisis in 2008. Winona State University, 1Dec 2009. < http://course1.winona.edu/wyu/research/p13.pdf >. UNCTAD. (2009). Assessing the impact of the current financial and economic crisis on global FDI flows. 01 Dec 2009. <http://www.unctad.org/en/docs/webdiaeia20091_en.pdf >. Wikipedia. (2009). Subprime mortgage crisis, 10 Nov 2009. <http://en.wikipedia.org/wiki/Subprime_mortgage_crisis>. G20 Declaration. (2008). Summit on financial markets and world economy. 15 Nov 2009. <http://www.bond.org.uk/data/files/g20_declaration_15_nov_summit.pdf >. The Banks Association of Turkey. (2009). The Financial System and Banking Sector in Turkey. 1 Dec 2009.<http://www.tbb.org.tr/Dosyalar/Arastirma_ve_Raporlar/The_Financial_System_and_Banking_Sector_in_Turkey.pdf >. Istanbul2009Turkey. Turkish economy. 10 Dec 2009. <http://www.istanbul2009turkey.org/istanbul2009/Turkey/Turkish%20Economy.pdf >. 721 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo TCMB. (2008). 2009 Yılında para ve kur politikası. Nov 2009. <http://www.tcmb.gov.tr/yeni/duyuru/2008/Baskan_ParaPol09.pdf>. www.osd.org.tr www.tbb.org.tr www.treasury.gov.tr www.turkstat.gov.tr www.tcmb.gov.tr www.unctad.org 722 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 215 Title A name given to the resource Global Financial Crisis: Economic Austerity Measures Of Turkey Author Author KILIÇ, Merve Abstract A summary of the resource. The global financial crisis has been the worst financial crisis since the one related to the Great Depression of the 1930s. It contributed to widespread business contraction, increases in unemployment, shrinking government revenues, declines in consumer wealth, and so a significant decline in economic activity. Many causes have been cited about the global financial crisis by leading economists and experts. Both market-based and regulatory solutions have been presented to lessen the dramatic effects of the crisis. The collapse of a housing bubble, which peaked in the United States in 2006, erupted in 2007 and led to a global financial crisis in 2008. This crisis has been triggered by a dramatic rise in mortgage delinquencies and foreclosures in the U.S. and has caused the values of securities tied to housing prices. So it has damaged financial institutions all over the world. The financial crisis which began in industrialized countries quickly spread to emerging and developing economies. Questions about bank liquidity, declines in credit availability, and damaged investor confidence had a negative impact on global markets, and caused large losses during 2008. This global crisis also affected Turkey. But the effects of this crisis on Turkey were limited. Demand in global and national markets has decreased. So the trade level in both national and global markets has also decreased. Bank‘s liquidity and profitability seemed healthy during such a crucial crisis. There were several policies of Turkish Government to diminish the effects of financial crisis about interest rates, tax rates, exports rediscount credit limit etc. This study aims to analyze the effects of the global financial crisis and the measures taken by Turkey to lessen the negative effects of it on Turkish economy. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed HB Economic Theory https://omeka.ibu.edu.ba/files/original/cf8fdb59cdef5fdce008e24db992ea5f.pdf 4604917806c787c28f2caa6e1a69bf49 PDF Text Text 2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo The Relationship between Person-Organization Congruence, Person-Role Conflict and Job Outcomes of Salesperson: A Study in the International Medicine Company in Turkey Kemal Can KILIÇ Cukurova University, Faculty of Economics and Administrative Sciences Adana, Turkey kcan@cu.edu.tr Ceyda KELEġ Osmaniye Korkut Ata University, Faculty of Economics and Administrative Sciences Osmaniye, Turkey ceydakeles@osmaniye.edu.tr Levent GELĠBOLU Cukurova University, Faculty of Economics and Administrative Sciences Adana, Turkey lgelibolu@cu.edu.tr Abstract: The purpose of this study was to appraise the relationship between person-organization congruence, person-role conflict and job outcomes of salesperson. Data were gathered from sales force of an international medicine company by using survey. Correlation analysis was employed to verify the hypotheses. The results of the analysis revealed that there was a relationship between organizational congruence and some of role conflict variables and job outcomes of salesperson as well. In addition, relationships also existed between some of role conflict variables and job outcomes of salesperson. The results of studies were discussed and recommendations were provided for managerial implications and future research. Introduction The congruence of organizational culture and employees‘ value preferences is a predictor of individual work behavior such as performance, motivation, commitment, satisfaction and turnover intention (O‘Reilly & Chatman 1986; Lauver & Kristof-Brown 2001; Cable & DeRue 2002; Sekiguchi 2004; Hoffman & Woehr 2006; Nelson & Billsberry 2007, Kilic et al, 2008). Although salespersons are generally work out side of organization they affected by organizational culture. Salespersons‘s different roles which take place inside or outside of organization are to be faced with diverse demands. When the salesperson encounters two or more incongruous job demands from his organizational superiors, customers, family members, or other role partners, role conflict takes place (Walker et al., 1975:32). Some research findings indicated role conflict did not significantly affect performance (Ingram and Lee, 1990). Some studies like Dubinsky and Mattson (1979) stated that salespersons role conflict is inversely related to job performance. On the one hand, Singh suggested that (1998) role conflict as a role stressor had a negative linear relationship with job performance. On the other hand, there are some studies whose results indicated that a positive relationship between role conflict and job performance (Babin and Boles, 1996; Behrman and Perreault, 1984). Singh (1998) notes that role conflict had a positive linear relationship with turnover intention. On the other side Rizzo et all (1970) pointed out that role conflict correlated weakly but positively with intention to leave organization. In literature mixed research results exist for relationship between role conflict and organizational commitment. Some findings indicated that role conflict was strong and negative (Numann et all 2000), and inverse (Dubinsky and Mattson,1979) related to organizational commitment. On the other side, some of the results represent role conflict positively related to organizational commitment (Ingram and Lee, 1990). Nevertheless, some findings suggested that diminishing salespeople role conflict was not likely to have a important direct impact upon their organizational commitment (Johnston et al., 1990: 341). Organizational behaviour literature indicates that there is a relationship between individual-organizational culture congruence and job outcomes. And there is a relationship between role conflict and some job outcomes. The aim of this study is to investigate the relationships of person-organization congruence, person role conflict and job 165 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo outcomes of salesperson in our research model. In this context the study was conducted a survey with 110 salespersons who work in Turkish sales team of an international medicine company. Conceptual Background Person-Organization and Person-Job Fit Person organization fit: Kristof (1996) defined concept of person organization fit as “ the compatibility between people and organizations that occurs when: (a) at least one entity provides what the other needs, or (b) they share similar fundamental characteristics, or both‖. The compatibility between personal and organization beliefs, individual and company goals, how well a firm fulfils their employee needs and how properly the personality of individual fits the company context can determine person-organization fit (Valentine et al, 2002:350). It is common that in the literature, lower levels of work-related stress have also been associated with high levels of P-O fit (Kristof, 1996:28). Because the role conflict is affirmed as one of the role stressors (Weeks, 2010; Singh, 1998), it may be expected that higher levels of P-0 fit, lower levels of role conflict. Studies done in recent years indicated that there is a positive correlation between person organization fit and organizational commitment (Kristof-Brown et al 2005; Valentine et al 2003; Kristof, 1996); performance and person-organization fit, as well (Kristof-Brown et al., 2005) and person organization fit has a positive direct effect on organizational commitment (Jaramillo et al., 2009). Also Silva et al (2010) proved that the higher the level of congruity between respondents‘ perceptions of their current organization‘s strategy with their ideal strategy was, the more the individuals got committed to their organization, more likely they were to stay with their organization. Person job fit: Person job fit is defined as the relationship between a person‘s characteristics and those of the job or task (Week, 2010:74). Whereas person-job fit occurs when the chance to deal with multiple tasks at the same time is compatible with person‘s preferences in that way, person-job misfit appears when the chance to deal with multiple tasks at the same time is different from person‘s preferences (Hecht and Allen,2005:157). KristofBrown et al (2005) predicated that person job fit had correlation with organizational commitment and performance. Role Conflict Role conflict is defined by Rizzo et al (1970) as a ―dimensions of congruency-incongruency or compatibility-incompatibility in the requirement of the role where congruency or compatibility is judged relative to a set of standards or conditions which impinge upon role performance‖. (Rizzo et al., 1970:155). Role conflict takes place when the salesperson encounters two or more incongruous job demands from his organizational superiors, customers, family members, or other role partners (Walker et al., 1075:32). In other words, if salespeople believe that their two or more role set‘s -such as boss and customer- expectations and demands are different from each other, role conflict will arise (Singh, 1998: 70). Many kinds of conflicts may result from incompatibility or incongruency as follows (Rizzo et al., 1970,155):  conflict between the focal person‘s internal standards or values and the defined behaviour.  conflict between time, resources or capabilities of the focal person and defined role behaviour.  conflict between several roles for the same person which require different or incompatible behaviours or changes in behaviour as a function of the situation.  conflicting expectations and organizational demands in the form of incompatible polices, conflicting requests from others, and incompatible standards of evaluations. Job Outcomes Performance: Performance is traditionally described in terms of salespeople behaviour which has been assessed from the aspect of their contributions to the organization goals (Ingram et al,1989:26-27). In sales management, job performance may be accepted as a key and critical main issue that provides information to management for managerial decisions such as compensating, training and improving performance (Jaramillo et al, 2005:706). However, the literature provides little empirical support for stress–performance relationships (Jones et al, 2007: 665), research findings in sales management concerning the association between role conflict and performance are mixed. Some research findings indicated role conflict did not significantly affect performance (Ingram and Lee, 1990). Some studies like Dubinsky and Mattson (1979) stated that salespersons role conflict is inversely related to job performance. On the one hand, Singh suggested that (1998) role conflict as a role stressor had a negative linear 166 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo relationship with job performance. On the other hand, there are some studies whose results indicated that a positive relationship between role conflict and job performance (Babin and Boles, 1996; Behrman and Perreault, 1984). Behrman and Perreault (1984) found role conflict was positively related to performance in their research. In the research authors pointed out it may be important to handle role conflict in order to perform effectively. Onyemah (2008) demonstrated that inverted-U relationship existed between role conflict and performance. Also author suggested that all levels of role stressor did not have destructive effect on salesperson performance. Role stressor can be useful for stimulating sales person performance if role stresser maintains at moderate levels. Because role conflict is the one of the role stressors (Weeks,2010; Singh, 1998) this suggestion can be true for role conflict. Intention to leave: Intention may be a good predictor to estimate actual turnover rate of employee (Choi,2006:326). Singh (1998) notes that role conflict had a positive linear relationship with turnover intention. On the other side Rizzo et all (1970) pointed out that role conflict correlated weakly but positively with intention to leave organization. Organizational commitment: Commitment is deemed as a partisan, affective loyalty to an organization‘s aims and values, to one‘s role in relations to goals and values, and to the organization for its own sake other than its purely instrumental worth. It consists of three components: identification: adoption as one‘s own goal and values of the organization; involvement: psychological immersion or absorption in the activities of one‘s work role; loyalty: a feeling of affection for and attachment to the organization (Buchanan, 1974.533). All firms and all functional areas within firms want their employees to be committed to their respective organizations. Committed subordinates are believed to dedicate more of their time, energy, and talents to the organization (Hunt et al.,1985:112-113). In literature mixed research results exist for relationship between role conflict and organizational commitment. Some findings indicated that role conflict was strong and negative (Numann et all 2000), and inverse (Dubinsky and Mattson,1979) related to organizational commitment. On the other side, some of the results represent role conflict positively related to organizational commitment (Ingram and Lee, 1990). Nevertheless, some findings suggested that diminishing salesperson‘s role conflict was not likely to have an important direct impact upon their organizational commitment (Johnston et al., 1990: 341). Research Model and Hypotheses In this research, person organization congruence was handled within two dimensions: person-organization (P-O) fit and person-job (P-J) fit. Source of role conflict consisted of five variables which were family, job, supervisor, customers and self. As job outcomes, three of job outcomes (performance, organizational commitment and intention to leave) were given places in this research. It was identified whether there was a relationship between organization congruence and job outcomes and variables of role conflict in this study. In this context research model was presented in Figure 1: CONGRUENCE JOB OUTCOMES  Person-organization fit  Performance  Organizational commitment ROLE CONFLICT  Person-job fit  Family  Job  Supervisor Figure Customer 1: Research Model  Self 167  intention to leave �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo The hypotheses expected to be tested through this study are as follows: H1 P-O fit will be related to H1a: all variable of salesperson role conflict positively. H1b: performance of salesperson positively. H1c: organizational commitment of salesperson positively. H1d: intention to leave behaviour of salesperson negatively. H2 P-J fit will be related to the H2a: all variable of salesperson role conflict positively. H2b: performance of salesperson positively. H2c: organizational commitment of salesperson positively. H2d: intention to leave behaviour of salesperson negatively. H3 Role conflict variable H3a: family will be positively related to the job performance of salesperson. H3b: job will be positively related to the job performance of salesperson. H3c: supervisor will be positively related to the job performance of salesperson. H3d: customers will be positively related to the job performance of salesperson. H3e: self will be positively related to the job performance of salesperson. H4 Role conflict variable H4a: family will be positively related to the salesperson organizational commitment. H4b: job will be positively related to the salesperson organizational commitment. H4c: supervisor will be positively related to the salesperson organizational commitment. H4d: customers will be positively related to the salesperson organizational commitment. H4e: self will be positively related to the salesperson organizational commitment. H5 Role conflict variable H5a: family will be negatively related to the intention to leave behaviour of salesperson. H5b: job will be negatively related to the intention to leave behaviour of salesperson. H5c: supervisor will be negatively related to the intention to leave behaviour of salesperson. H5d: customers will be negatively related to the intention to leave behaviour of salesperson. H5e: self will be negatively related to the intention to leave behaviour of salesperson. Method The data used in this study were collected by mail survey. Participants consisted of salesperson of an international medicine company in Turkey. Although totally 110 questionnaires were sent to salespersons, only 42 questionnaires were useable for analysis. Therefore, 42 questionnaires were utilized in this study. Scales used in previous research were employed to measure the study variables. 6 main scales were employed in the study: 1) person organization fit, 2) person-job fit, 3) organizational commitment, 4) job performance, 5) intention to leave and 6) role conflict. Person-organization fit was measured with a 3-item scale taken from Cable and Judge (1996), person-job fit was measured with a 6-item taken from Brkich et al. (2002), organizational commitment was measured with a 6-item taken from Mathews and Shepherd (2002), job performance was measured with a-9 item taken from Befford and Hattrup (2003), Borman and Motowidlo (1993) and intention to leave was measured with a-3 item taken from Seashore and et al. (1982). Role conflict scale was adapted from Chonko and et al.‘s (1986) which was in Handbook of Marketing Scales (Bearden and et al. 1993). Scale of role conflict consisted of five dimensions: job, family, supervisor, customer and self, and totally 30 items were used to measure role conflict. All instruments were rated on a 5- point scale comprised of 5 (strongly agree) and 1 (strongly disagree). 168 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Analysis and Research Findings A summary of the sample characteristics is presented in Table 1. The sample included 8 females (%19) and 34 males (%81). %64.3 was between 32-38 years old. A majority of participants (%78.6) had university degree and percentage of tenure for 6-10 years was %40.5. Variable Gender Female Male Frequency Valid Percent 19.0 81.0 14.3 64.3 21.4 Age 25-31 32-38 39-45 8 34 6 27 9 Education College University Master 6 33 3 14.3 78.6 7.1 Tenure 1-5 years 6-10 years 11-15 years 16-20 years 12 17 12 1 28.6 40.5 28.6 2.4 Table I. Sample Characteristics Descriptive Statistics and Scale Reliabilities The descriptive statistics and reliabilities estimates are presented in Table II. As shown in the table each variable‘s mean scores were between 3 and 4, except for job performance and intention to leave. These results indicated that the respondents had medium P-O fit, P-J fit, organizational commitment, and role conflict. In addition, respondents presented high job performance and low intention to leave. Reliability analysis revealed that the measure had acceptable internal consistency and Cronbach‘s Alpha for the PO fit, PJ fit, organizational commitment, job performance, intention to leave, and role conflict variables; family, job, supervisor, customers and self measure were 0.93, 0.89,0.93, 0.95, 0. 97, 0.84, 0.87, 0.87, 0.82 and 0.74 respectively. P-O Fit P-J Fit Organizational Commitment Job Performance Intention to Leave Family Job Supervisor Customers Self Mean 3.7937 3.7222 3.6905 4.0344 2.1667 3.2202 3.2560 3.2619 3.7476 3.4714 Std. Deviation .73603 .76125 .83664 .73682 1.03135 .84860 .81616 .70452 .62946 .79978 Cronbach’s Alpha .93 .89 .93 .95 .97 .84 .87 .87 .82 .74 Table II. Descriptive Statistics and Reliability Statistics All items were rated on a 5 point scale anchored by 1:strongly disagree and 5: strongly agree. 169 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Test of Hypotheses In the present study, the hypotheses were tested using correlation analysis in SPSS 15. Correlation analysis is used to fasten down whether a relationship exists and with determining its magnitude and direction. Its common characteristics are as follows: Two sets of measurement are obtained on the same individuals or on pairs of individuals who are on some basis. The values of the correlation coefficients vary between +1 and -1. Whereas a positive correlation (0< r <1) indicates that individuals obtaining high scores on one variable tend to obtain high scores on a second variable, a negative correlation (-1< r < 0) indicates that individuals obtaining low scores on one variable tend to obtain high scores on a second variable (Ho, 2006:183-184). The closer the correlation value is to +1 or/and -1, stronger is that tendency and the closer the correlation value is to 0, the weaker is that tendency (George and Maller,2003:124-125. Explanation of correlation coefficient between two variables may be presented as follows; 0.00- 0.25 very weak, 0.26-0.49 weak, 0.50- 0.69 medium, 0.70- 0.89 strong and 0.90-1.00 very strong (Kalaycı, 2006:116).The results of correlation analysis are presented in Table III. P-OFit P-JFit Organizatio nal Commitment Job Performance Intention to Leave Family Job Supervisor Customers Self POFit 1 .751 (**) P-JFit .783 (**) .836 (**) .765 (**) -.693 (**) .312 (*) .445 (**) .457 (**) .415 (**) -.019 .712 (**) -.778 (**) .393 (*) .510 (**) .477 (**) .329 (*) -.009 Organi Job zational Perform Commit ance ment -.805 (**) .274 .423 (**) .326 (*) .577 (**) -.052 .747 (**) -.829 (**) .408 (**) .592 (**) .569 (**) .356 (*) -.015 Intention to Leave Family Job Super visor Custo mers Self -.396 (**) -.554 (**) -.566 (**) -.362 (*) .303 .720 (**) .757 (**) .470 (**) -.088 .767 (**) .525 (**) .089 .518 (**) -.156 .155 1 Table III. Pearson Correlations ** Correlation is significant at the 0.01 level (2-tailed). * Correlation is significant at the 0.05 level (2-tailed). Hypotheses 1: P-O fit was positively related to the all variables of salesperson role conflict excepted from self. Therefore, H1a was supported partially. Nevertheless, all the relationships were weak which were supported, by the fact that all correlation coefficient were between 0.26- 0.49. Moreover, H1b (p<0.01), H1c (p<0.01) and H1d (p<0.05) were supported. Therefore, P-O fit was related to performance and organizational commitment of salesperson positively, and intention to leave behavior of salesperson negatively. On the one hand, the higher scores on P-0 fit, the higher scores on salesperson role conflict (job, family, supervisor and customers), organizational commitment and performance. On the other hand, the higher P-O fit, the lower intention to leave behavior of salesperson. In addition, relationship between P-O fit and performance (r= 0.765) and organizational commitment of salesperson (r= 0.783) was strong, relationship between P-O fit and intention to leave behavior of salesperson (r= 0.693) medium. Hypotheses 2: Outside the self, P-J fit was positively related to the all variables of salesperson role conflict. Consequently, H2a was supported partially. As shown in the correlation coefficient table, the relationships between P-O fit and family, supervisor and customers role conflict variables were weak, and job medium. Besides, there were relationships between P-O fit and organizational commitment and job performance of salesperson positively, and relationships were found between P-J fit and intention to leave behavior of salesperson negatively. Therefore, 2Hb, H2c and H2d were supported (p<0.01). On the one hand, the higher scores on P-J fit, the higher scores on 170 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo salesperson role conflict (job, family, supervisor and customers), organizational commitment and performance. On the other hand, the higher P-J fit, the lower intention to leave behavior of salesperson. Furthermore, all of the relationships between P-J fit and organizational commitment, performance and intention to leave behavior of salesperson were strong because of all the correlation coefficients were between 0.70- 0.89. Hypotheses 3: H3a and H3e were not supported (p>0.05) while, as a role conflict variable job, supervisor and customer were found to be related positively with job performance of salesperson, supporting H3b (p<0.01), H3c (p<0.05) and H3d (p<0.01). Therefore, obtaining high scores on role conflict variable job, supervisor and customer provides a tendency to obtain high scores on salesperson performance. In addition, positive relations were found weak for job (r=0.423) and supervisor (r= 0.326) but medium for customers (r=0.577). Hypotheses 4: There were positive relationships among all variables of role conflict without self and salesperson organization commitment. H4a (p<0.01), H4b (p<0.01), H4c (p<0.01) and H4d(p<0.05) were supported but H4e (p>0.05) not. Family (r=0408) and customers (r=0.356) variables of role conflict had a weak positive relation between salesperson organizational commitment whereas, job (r=0.592) and supervisor (r= 0.569) variables of role conflict had a medium positive relation. Intercalary, the higher scores on role conflict variables family, job, supervisor and customers, the higher scores on salesperson organizational commitment. Hypotheses 5: Our results indicated that variables of role conflict like family, job, supervisor and customers were related to the intention to leave behavior of salesperson negatively, supporting H5a(p<0.01), H5b (p<0.01), H5c (p<0.01) and H5d (p<0.05) but H5e (p>0.05) not. In addition, negative relations were medium for job and supervisor, and weak between customers- as role conflict variable- and the intention to leave behavior of salesperson. Conclusion The results of the analysis provided that there was a correlation between organizational congruence and some of role conflict variables and job outcomes of salesperson as well. In addition, relationships also existed between some of role conflict variables and job outcomes of salesperson. In this context, P-O fit was positively related to role conflict variables family, job, supervisor and customers, and performance, organizational commitment and intention to leave. P-J fit was related to family, job, supervisor, customers as a role conflict variable, and performance, organizational commitment and intention to leave positively. As a job outcome, performance was positively associated with role conflict variable, job, supervisor and customers. Moreover, there was a positive correlation between organizational commitment and role conflict variable family, job, supervisor and customers. Additionally, negative relation was found between intention to leave and family, job, supervisor and customers as role conflict variables. The results of this study offer several implications for sales management. For sales managers who wish to increase performance and organizational commitment and decrease intention to leave among sales force, several recommendations are suggested. Sales managers should consider salesperson‘s congruence with organization and job. This study‘s results provided that there is strong relationship between person-organization congruence and job outcomes. For instance, the higher P-O fit, the higher salesperson organizational commitment and performance and the lower intention to leave behavior of salesperson. Sales managers should also give serious weight to role conflict. Role conflict variables like family, job and supervisor may be useful to increase P-O fit, P-J fit organizational commitment and performance of sales person and decrease intention to leave. Nevertheless, managers should be careful when using role conflict as an indicator for job outcomes since there are some evidence that mixed relations exist between role conflict and job outcomes. This study has some limitations. Sample size and usage of only one sector are important considerations preventing from generalizing the results of the study. In addition in the study, not all types of job outcomes, role stressors and person- organization congruency were examined. Therefore, future studies could expand sample sectors like services sectors. It would be interesting to investigate the relationship between other job outcomes variables like job satisfaction and other types of person-environment fit. 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And Christophe Fournier (2010), ―The Impact of Time Congruity on Salesperson‘s Role Stress: A Person–Job Fit Approach‖, Journal of Personal Selling & Sales Management, Vol:30, No:1, p: 73–90. 173 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo An Analysis of the Contents of the Studies Carried Out on the Relationship between the Strategy and the Performance of the Organization Orhan BATMAN Sakarya University, Faculty of Economics and Administrative Sciences Department of Tourism Management orhanbatman54tr@hotmail.com Ġzzet KILINÇ Düzce University Akçakoca School of Tourism and Hotel Management izzetkilinc@duzce.edu.tr Muammer MESCĠ Düzce University Akçakoca School of Tourism and Hotel Management muammermesci@duzce.edu.tr Abstract: The aim of this research is to analyze the methodology used in the papers that deal with the relationship between strategy and business performance in the last decade. In this context; it is intended to determine the fields of study on which the papers focus, the research methods and data collection techniques used and the findings achieved, and to compare and contrast the findings obtained with the methods of research used. In this research, a qualitative research method was used and the data were acquired through literature review. The data acquired were put to content analysis and they were analyzed within the theoretical framework formed in accordance with the objectives of the research. The main restriction of the research is that the academic papers only in the data bases of Emerald and Sciencedirect were included in the research. Within this, 15 papers in both data bases mentioned were reviewed. The findings of the research indicate that the papers reviewed have been published in 10 different academic journals and they focus on 6 different fields. Furthermore, quantitative research methods were used in 11 of total 15 papers whereas qualitative research methods were used in 4 of them. Questionnaire technique was chosen to collect data in the papers in which quantitative research methods were used. On the other hand, while literature review was mainly preferred in the papers in which qualitative research methods were used, case method was used in one of them. The results of the research point out that the papers have similar findings although they have used different methods, and it has been found out that there is a positive relationship between strategy and business performance in the consequence of each paper. Key Words: Strategy, performance, methodology. Introduction Strategic management is an understanding which has focused on the organization‘s continuing its life and providing superiority in competition. Due to this, it is true and important to handle and explain the concepts of ―performance‖ and ―performance evaluation‖ with the approach of strategic management. The organizations should develop their strategies and evaluate to what extent they have fulfilled their strategies in order to continue their existence. The success measure in the market where the organizations operate is to obtain profitability above the average. Performance evaluation is an important means in finding out whether the organizations have achieved this profitability or not or to what extent they have achieved (Pongatichat & Johnston, 2008). Today the rapid and intensive environmental changes and uncertainties affect the sector structures and the dynamics of the organizations, the organizational process and functions, the market structures directly. These interactions may cause the organizations to disappear in the area they operate in by affecting their performance and profitability. Because of this, performance and performance evaluation systems are very important for the 174 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 140 Title A name given to the resource The Relationship between Person-Organization Congruence, Person-Role Conflict and Job Outcomes of Salesperson: A Study in the International Medicine Company in Turkey Author Author KILIÇ, Kemal Can KELEŞ, Ceyda GELİBOLU, Levent Abstract A summary of the resource. The purpose of this study was to appraise the relationship between person-organization congruence, person-role conflict and job outcomes of salesperson. Data were gathered from sales force of an international medicine company by using survey. Correlation analysis was employed to verify the hypotheses. The results of the analysis revealed that there was a relationship between organizational congruence and some of role conflict variables and job outcomes of salesperson as well. In addition, relationships also existed between some of role conflict variables and job outcomes of salesperson. The results of studies were discussed and recommendations were provided for managerial implications and future research. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed HB Economic Theory https://omeka.ibu.edu.ba/files/original/24e69b3a79151e5e0b3848ee7ec9e28b.pdf 93d4269d3c855de476e204c1e12e91ee PDF Text Text High-Temperature Fire Resistance For Concrete Using Sustainable Building Doç.Dr. Şemsettin KILINÇARSLAN*, Süleyman Demirel Üniversitesi, Teknik Eğitim Fakültesi Yapı Eğitimi Bölümü Isparta, Türkiye, seref@tef.sdu.edu.tr * * H.Ece PEHLĐVANOĞLU Süleyman Demirel Üniversitesi, Teknik Eğitim Fakültesi Yapı Eğitimi Bölümü Isparta, Türkiye ece.h.35@hotmail.com.tr Fazile PEHLĐVANOĞLU Süleyman Demirel Üniversitesi, Teknik Eğitim Fakültesi Yapı Eğitimi Bölümü Isparta, Türkiye fazile_ksk@hotmail.com.tr Aysun SEVEN Süleyman Demirel Üniversitesi, Teknik Eğitim Fakültesi Yapı Eğitimi Bölümü Isparta, Türkiye nusya_seven@hotmail.com Tuba MOLLA, Süleyman Demirel Üniversitesi, Teknik Eğitim Fakültesi Yapı Eğitimi Bölümü Isparta, Türkiye tuba_molla@hotmail.com Abstract The purpose of this research;production olivine doped concrete is subjected to various experiments by designing and applying to provide to increase the fire resistance. The olivine doped concrete samples were obtained by using TS 802,which provide from olivine mining facilities located in Isparta-Sütçüler-Ayvalıpınar. Aggregate was provide from aggregate mine in Isparta-Atabey. Ordinary concrete samples were obtained by using same mixing rate on the olivine doped concrete . Olivine doped and ordinary concrete samples were heated at 3000 C,6000C and 900 0C during 2 hours in the spring laboratory of Dokuz Eylul University in Đzmir, which have been taken their cure of 28 day. Later the ultrasound pulse velocity (UV) and compressive strength of samples have been determined at construction laboratory of Suleyman Demirel Universty in Isparta.It has been found that normal aggregate descreased compressive strength by heat increasing, whereas using olivine instead of normal aggregate increased compressive strength until 6000C,but decreased at 9000C. Keywords: Olivine, aggregate, compressive strength, ultrasound pulse velocity 1.Introduction Compared to other construction materials; it’s the most used construction material with its easy shaped condition, being economical, durability, less energy usage in its production, being producible and its aesthetic quality. Durability is a quality of a building’s long lasting and other functions through its service-life and under the environmental effects in which a building is found and will be found. An artificial material, reinforced concrete’s continuing of its positive qualities is related to its lasting. As a result of fire which is one of the dangers that can be seen in buildings, construction components are exposed to high temperature. The fires on the buildings, temperature of 12000 C resulting has been calculated. When construction materials are heated till 12000 C it has been observed that the wood burnt up, steel softened and lost its resistance, concrete or stones pulled into pieces. In that case, none of the construction materials can 865 �resist such high temperatures. However, among these concrete is more durable and pulled into pieces in a longer period compared to others. [1] With the effects of high temperature, concrete loses its beginning pressure resistance. Decrease quantity on the pressure resistance shows difference as the qualities of the materials and the most high temperature, heating speed and cooling types of some variables. However, on temperatures above 3000 C, clear losses of the concrete’s pressure resistance is an emphasized opinion in technical literature. [2] In a fire withdrawal of water as drying in a concrete leads to shrinkages on concrete, changes of crystal structure and elasticity, resistance drop and changes on colour and chemical structure. [3] Resistance losses also can be explained by different reasons such as micro and macro-level cracks, expansion of aggregate volume, the degradation of hydrated calcium silicate (C-S-H) ties in cement paste. [2] On previous studies effects of the high temperatures of up to 9000 C on concrete’s pore structure has been investigated by the method of mercury porosimeter and it has been determined high temperatures cause a rise on total pore volume. [4] The fire has many effects on concrete resistance. When concrete beams has been exposed to heat, it leads free moisture to evaporate. Upon continuing of fire, on the beam surface, exposed to fire, heat rises and concrete resistance falls. In some cases, pressure of moisture on beams is higher than the resistance of concrete cover and the cover is broken up leading concrete resistance to decline. Building in case of fire should perform at least to the extent required by legislation. In addition stability of building is required to live, escape and to extinguish fire. It has especially so much importance for bigger and multi level buildings. [5] Olivine because of having high melting temperature, quickly cools the steel inside of it. For this reason it is used in iron and steel industry. With refractory, significant amount of olivine is used on the production of forstrikt brick, fire brick, chemical tied bricks, various refractory construction and materials. [6]. Rocks of which chemical composition is (Mg,Fe)2SiO4, crystal system being ortorombic and crystal shape magmatic, are isolated granular aggregates. Their crystals consist of three different prism’s combination. Twinning can be observed. Its hardness is 6,5-7 according to Mohs’s criteria. The density changes between 3,22 and 4,40 gr/cm3 according to its Fe amount. [7] The aim of this research is designing production of olivine blended concrete and subject it to various experiments, to increase the fire resistance of concrete, to prevent collapse of the structure than what is designed before, to prevent the spread of fire around. 2.Material And Method 2.1Material In this research, two types of materials are used as aggregate of limestone origin obtained from sand-gravel quarry of Isparta-Atabey that meet the significant agregate need of Isparta Zone and olivine obtained from Isparta- Sütçüler Ayvalıpınar olivine mining facilities. Aggregate granulometric curve is given in the following Fig 1. As additives Sikament NP from Sika and air entraining AER additive are obtained. Cement is obtained as Isparta-Göltaş origin type CEM I 42,5 R. 866 �Fig 1.Material passing through sieve % and sieve openness(mm) 2.2 Method In the study, concrete mix calculations have been made using TS802 and concrete class has been determined using TS500. Obtained samples were exposed to 3000 C, 6000 C, 9000 C temperatures, weight differences were found, compressive strength and ultra-sound experiments were conducted. 2.3 Preparation of experiment samples Mixture calculations were prepared for the first preliminary experiments targeting concrete class of BS30 and suitable for TS 802. For homogeneous concrete mixture, Sikament NP super plasticisers contribution up to 2% of cement was added to mixture water. The concrete obtained with olivine aggregate was named as OB, first two preliminary experiments’ amount of concrete components were calculated and concrete samples were poured. For the first preliminary experiment concrete was poured into 20 cube samples with the size of to 10x10x10cm and 1 cube sample with the size of 15x15x15cm. According to first preliminary experiment samples’ pressure resistance conclusions with an improvement in the mix, second experiment samples were prepared. Accordingly, for the second experiments concrete was prepared targeting concrete class of BS30 and suitable for TS 802; to obtain a flat surface and to prevent water absorption of concrete olivine was holded in water for one day and left to drying until it became surface dried and while pouring concrete air entraining additive Sika AER was used. Concrete was poured into 20 cube samples with the size of to 10x10x10cm. Second experiment with olivine and normal concrete mixture rates were given in table 1. Concrete Water Table 1. Normal and olivine concrete components added to mixture Cement (kg) Additive Fine sand Fine olivine Thick olivine / (lt) (ml) (kg) /aggregate (kg) aggregate (kg) Olivine 2,4 8,69 0,17 2,22 11,20 24,81 Normal 4,93 8,82 0,17 2,5 11 22,50 Second experiment after completing their 28-day cures, normal and olivine concrete samples were exposed to different temperatures 2 hours to remain constant on 3000 C, 6000 C, 9000 C temperatures in the heat treatment furnace at the source laboratory of Izmir Dokuz Eylül University, mechanical engineering department and the samples were cooled in the furnace till room temperature. The samples removed from the furnace at first were weighed and weight difference at the end of heat treatment was determined, then to avoid getting their lost moisture back they were wrapped with aluminum foil and were stored in secure bags. Olivine concrete and 867 �normal concrete samples, the ones exposed thermal processing and normal room temperature samples pressure resistance and ultra sound experiments were carried on in Süleyman Demirel University, Technical Training School Structure education department laboratories. 3.Test Results And Suggestions As a result of preliminary test results, concrete samples were in a space structure and compressive strength values were obtained lower. The reason for this was thought as the high water absorption olivine aggregate and in second experiments olivine was used as concrete aggregate material after dry surface became water-saturated. In the second preliminary experiment, w/c rate was reduced and more flat surface was obtained using olivine as dry surface and adding air entraining Sika AER additive. 28-day pressure resistance of second samples completing their cures were determined approximately 25 N/mm2 on the 10x10x10cm cube samples. In chart 3, olivine concrete’s28-day pressure resistance conclusions were given. 28-day pressure resistance conclusions of concrete samples produced according to olivine concrete experiment conclusions were obtained as 52,7 N/mm2 on average and were shown in table 2. Samples N14 Pressure resistance ( N/mm2 ) 53,2 Weight (kg) 2,38 N5 2,35 52,3 OB19 2,45 27,8 OB11 2,35 22 Table 2. Olivine and normal concrete’s 28- day pressure resistances Normal and olivine concrete samples were exposed to different temperatures 2 hours to remain constant on, 3000 C, 6000 C, 9000 C temperatures in the heat treatment furnace at the source laboratory of Izmir Dokuz Eylül University, mechanical engineering department and the samples were cooled in the furnace till room temperature. When these samples were weighed, normal concrete samples’ weight 2,325 kg at 3000 C fell down 2,2 kg; 2,41 kg at 6000C fell down 2,25 kg; 2,35 kg at 9000 C fell down 1,76 kg. Olivine concrete samples’ weight before and after heating: 2,4 kg at 3000 C fell 2,3 kg; 2,41 kg at 6000 C fell down 2,16 kg; 2,39 kg at 9000 C fell down 2,18 kg. Olivine and normal concrete samples’ weight changing rate according to temperature were given in fig 2. Weight changing rate (%) 100% 75% 50% 25% 0% 20°C 300°C 600°C 900°C Temperature Olivine concrete Normal concrete Fig 2. Olivine and normal concrete samples’ weight changing rate according to temperature 868 �Ultra sound and pressure resistance experiments were carried on with heated samples and samples holded in normal room temperature in Süleyman Demirel University, Technical Training School Structure education department laboratories. Ultrasound tests were found to result in normal concrete samples at 200C temperature 22,5 µs, 300 0C temperature 25,95 µs, 600 0C temperature 41,6 µs, and at 900 0C temperature 57,1 µs. Olivine concrete samples resulted in 200C temperature 22,05 µs, 300 0C temperature 27,85 µs, 600 0C temperature 39,25 µs, and at 900 0C temperature 84,9 µs. Olivine and normal concrete samples’ ultrasound pulse velocitytemperature relation were given in fig 3. Ultrasound pulse velocity(m/s) 90 80 70 60 50 40 30 20 10 0 20°C 300°C 600°C 900°C temperature olivine concrete normal concrete Fig 3. Olivine and normal concrete samples’ ultrasound pulse velocity-temperature relation 869 �pressure resistance (N/mm2) On pressure resistance experiment normal concrete samples resulted in 200C temperature 52,5 N/mm2, 300 0C temperature 40 N/mm2, 600 0C temperature 16,21 N/mm2,and at 900 0C de 7 N/mm2. Olivine concrete samples resulted in; 200C temperature 23 N/mm2, 300 0C temperature 23,9 N/mm2, 600 0C temperature 30,23 N/mm2, 900 0C temperature 3,8 N/mm2. Olivine and normal concrete samples’ pressure resistance -temperature relation were given in Fig 4. 60 50 40 30 20 10 0 20 C 300 C 600 C 900 C Temperature(°C) olivine concrete normal concrete Fig 4. Olivine and normal concrete samples’ pressure resistance -temperature relation 4.Results Olivine and normal concrete samples carried out in studies, at first were exposed to different temperatures 2 hours to remain constant on, 3000 C, 6000 C, 9000 C temperatures in the heat treatment furnace. When the samples removed from the furnace were weighed, it’s found that while temperature increased and within the water evaporated their weight decreased. Accordingly, the first weight of samples and weight after their exposure to temperature were given in table 3. Heated samples and normal samples holded in normal temperaturewere applied ultra sound and pressure resistance experiments in Süleyman Demirel University, Technical Training School Structure education department laboratories. In ultra sound experiment as the heat rose, conclusions rose, up to 9000 C olivine and normal concrete samples showed values close to each other. Conclusions of ultra sound experiments were given in table 3. In pressure resistance experiment, in normal concrete samples as the heat rose pressure resistance decreased and up to 6000 C it was determined that it lost approximately 70% of resistance. In olivine concretes in contrast to normal concrete samples, with the heat rise pressure resistance also increased and at 6000 C it was determined that it rose approximately 30% of its resistance. At 9000 C both different samples were determined huge loss of strength. Pressure resistance experiment conclusions were given in table 3. 870 �20°C Normal Olivine concrete concrete Ultra sound µs Pressure resistance (N/mm2) Weight (kg) 300°C Normal Olivine concrete concrete 600°C Normal Olivine concrete concrete 900°C Normal Olivine concrete concrete 22,5 22,05 25,95 27,85 41,6 39,25 57,1 84,9 52,5 23 40 23,9 16,21 30,23 7 3,8 2,35 2,39 2,2 2,295 2,25 2,16 1,76 2,18 Table 3.Olivine and normal concrete samples’ weight, ultrasound and pressure resistances according to temperature References Kocataşkın F., 2000, Yapı Malzemesi Bilimi. Birsen Yayınevi, Đstanbul. Ahmet Ferhat Bingöl, Rüstem Gül*,2009 ;“Donatı-Beton Aderansı, Yüksek Sıcaklıkların Beton Dayanımına Ve Aderansa Etkileri Konusunda Bir Derleme” TÜBAV Bilim Dergisi, Vol:2, N:2,P:211-230 Bilal, F., 2006 “Yangın ve Beton”. Đzolasyon Dünyası, 60, s: 70-72. Rostasy, F.S., Weiss, R. and Wiedemann, G., 1980 “Changes of pore structure of cement mortars due to temperature.” Cement & Concrete Research, 10, p: 157-164. Avrupa Beton Platformu “ Betonla Yangınfan Kapsamlı Korunma ve Güvenlik” TÇMB http://www.mta.gov.tr/v1.0/index.php?id=maden_kullanim&m=4#olivin http://www.mta.gov.tr/v1.0/daire_baskanliklari/mineral/index.php?id=olivin S. Kilincarslan a, I. Akkurt b, C. Basyigit a, (2006). “The effect of barite rate on some physical and mechanical properties of concrete”;Materials Science and Engineering A 424 P: 83–86. S. Kilincarslan (2007), “Thermo-Mechanical Properties of Concrete Containing Zeolite”, Süleyman Demirel Üniversitesi,Fen Bilimleri Enstitüsü Dergisi,11-3 ,262-267. TS EN 1992-1-2 beton yapıların tasarımı- bölüm 1-2:genel kurallar-yapısal yangın tasarımı şartnamesi Yüzer N., Aköz F.and Öztürk L.D. (2004) Compressive strength–color change relation in mortars at high temperature. Cement and Concrete Research, Vol. 34,No. 10, pp.1803-1807. Topçu, Đ.B. 2006. Beton Teknolojisi. Uğur Ofset, 570 s., Eskişehir Neville, A.M. (2000) Properties of Concrete. Fourth Edition, Longman Scientific and Technical, pp. 581-585, NY, USA. Avrupa Beton Platformu (2007), “ Betonla Yangın fan Kapsamlı Korunma ve Güvenlik” TÇMB . Baradan, B., Yazıcı, B. ,2003 “Betonarme Yapılarda Durabilite ve TS EN 206-1 Standardının Getirdiği Yenilikler” Türkiye Mühendislik Haberleri Sayı 4/ 426. Luo, H.L. and Fin D.F. (2007) Study the surface color of sewage mortar at high temperature. Construction and Building Materials, Vol. 21, No. 1, pp. 90-97. 871 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 640 Title A name given to the resource High-Temperature Fire Resistance For Concrete Using Sustainable Building Author Author KILINÇARSLAN, Semsettin PEHLİVANOĞLU, H.Ece PEHLİVANOĞLU, Fazile SEVEN, Aysun MOLLA, Tuba Abstract A summary of the resource. The purpose of this research;production olivine doped concrete is subjected to various experiments by designing and applying to provide to increase the fire resistance. The olivine doped concrete samples were obtained by using TS 802,which provide from olivine mining facilities located in Isparta-Sütçüler-Ayvalıpınar. Aggregate was provide from aggregate mine in Isparta-Atabey. Ordinary concrete samples were obtained by using same mixing rate on the olivine doped concrete . Olivine doped and ordinary concrete samples were heated at 3000 C,6000C and 900 0C during 2 hours in the spring laboratory of Dokuz Eylul University in Đzmir, which have been taken their cure of 28 day. Later the ultrasound pulse velocity (UV) and compressive strength of samples have been determined at construction laboratory of Suleyman Demirel Universty in Isparta.It has been found that normal aggregate descreased compressive strength by heat increasing, whereas using olivine instead of normal aggregate increased compressive strength until 6000C,but decreased at 9000C. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed Q Science (General) https://omeka.ibu.edu.ba/files/original/9635358ca99d024e70a46b9bd8c38f54.pdf 6413cfa639f8bd681492d3882faaac61 PDF Text Text 2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo The Importance of SMEs in Developing Economies Hidayet KESKĠN Suleyman Demirel University, Isparta/Turkey hunlu@iibf.sdu.edu.tr Canan ġENTÜRK Suleyman Demirel University, Isparta/Turkey canansenturk@iibf.sdu.edu.tr Onur SUNGUR Suleyman Demirel University, Isparta/Turkey onurs@iibf.sdu.edu.tr Hakan M. KĠRĠġ Suleyman Demirel University, Isparta/Turkey hakkan@iibf.sdu.edu.tr Abstract: The economy of the 20th and 21st century has a different set of rules than Smith‘s economy of the 19th century. The new ideology of neo-liberalism and globalization emphasizes the role of SMEs as promoters of a healthy business climate, economic efficiency and power for economic development, especially in developing countries. Today, instead of large-scale industries, SMEs having gained importance in the developing economies, become advantageous being economic enterprises having the capability of quick adaptation, working with less capital but more intense labor and having low cost of management and thus having cheap production. Although SMEs have some weaknesses, they are less affected from economic crises due to its flexibility and abilities which keep up with changed conditions. SMEs are vital actors for enhancing innovation, competitiveness, entrepreneurship and the establishment of an effective innovation system for developing countries. Therefore, in this study the importance of SMEs for developing countries is considered. First, the regulations related to SME definition and EU‘s SME definitions are mentioned. In the second section, the advantages and disadvantages of SMEs are considered. Then, the importance of SMEs in the economies is discussed by groups of countries with the help of various indicators. Finally, the importance of SMEs in developing countries is discussed. Introduction SMEs are seen as the main actors of both national and regional development in many countries. There are a lot of researches about the importance of SMEs in the country's economy. Many countries are implemented support for SMEs in the various programs and policies. In this context, the changes were made about definition of SMEs in EU. Many programs have been implemented to improve the innovation and entrepreneurship of SMEs. Therefore, support for SMEs is one of the European Commission‘s priorities for economic growth, job creation and economic and social cohesion. SMEs play an important role in the EU economy. In addition EU is seen SMEs as an important tool in achieving the Lisbon Strategy. The importance of the SME sector is well recognized worldwide due to its significant contribution to gratifying various socio-economic objectives, such as higher growth of employment, output, promotion of exports and fostering entrepreneurship. Recent empirical studies show that SME‘s contribute to over 55% of GDP and over 65% of total employment in high-income countries. SME‘s and informal enterprises, account for over 60% of GDP and over 70% of total employment in low-income countries, while they contribute over 95% of total employment and about 70% of GDP in middle-income countries. In the European Union countries, for example, there are some 25 million small businesses, constituting 99% of all businesses; they employ almost 95 million people, providing 55% of total jobs in the private sector. Important contribution is also on exports and on productivity growth (OECD, 2004). However, the actual importance of SMEs is emerged to adapt the changing conditions of competition and innovation with the globalization process. SMEs, in many studies, are seen as key actors in innovation systems and are important in increasing the competitive and innovative capacity of the countries / regions. 183 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Porter (1996; 2000; 2001; 2003) mention that the new concepts such as region, clustering, innovation substitute traditional competitiveness factors and become the main factors determining the competitive power of firms and local economies Orientation for new sources is experienced in identifying competitiveness and new pursuits are emerged in the areas of economy and business science interests. In fact, the change in these areas of interest can be regarded as a natural extension of ―economic reconstruction‖ which is accompanied globalization process. Post-Fordist production processes of economic activities have intensified the need for redefinition of the relationship among firm-local and regional economy -national economies. As a result, firms-regional and international economies which are regarded as relatively isolated units previously, began to be perceived as the actors constantly interact within a dynamic network. Then global actors and powers also have been included as active partners of this network. With this change, the main concepts such as networks (Hakanson, 1992; Thompson and others, 1991), goods (supply) chains (Dickens, 1998), business systems (Whitley, 1992), clusters(Porter, 1990; Schmitz, 1995) and production systems (Scott ve Storper, 1992), are gain importance. And also SMEs are accepted as the main elements of this concept of "proximity and regional tissue‖. In accordance with the above-mentioned developments, SMEs are vital actors for enhancing innovation, competitiveness, entrepreneurship and the establishment of an effective innovation system for developing countries. Therefore, in this study the importance of SMEs for developing countries is considered. First, the regulations related to SME definition and EU‘s SME definition will be mentioned. In the second section, the advantages and disadvantages of SMEs will be considered. Then, the importance of SMEs in the country's economy will be discussed by groups of countries with the help of various indicators. Finally, the importance of SMEs in developing countries will be discussed. Definition of Small and Medium-Sized Enterprises (SMEs) Institutions working on SMEs case can make several definitions. Limit of SMEs definition generally changes according to economic size of countries. Thus SMEs phrase have economical meaning rather than legal meaning. Most of countries accept that number of employee is a common measurement of SMEs definition. Definition of SMEs and their size criteria is a controversial subject. There are various opinions about SMEs size measurement criteria and their amount (Dinçer, 1994). According to some institutions number of employee has more importance, for the others enterprises turnover have more importance in SMEs definition. World Bank‘s definition of SMEs is that micro scale; less than 50 employee, small scale; 50 employees, medium scale; 50-200 employees. Following the first SMEs definition of EU in 1996, the SME definition which is related with personel numbers is required to revised because of increases in inflation and productivity. As a result of this; On 6 May 2003 the Commission adopted Recommendation 2003/361/EC regarding the SME definition which replaced Recommendation 96/280/EC as from 1 January 2005. The revision takes account of the economic developments since 1996 and the lessons drawn from the application of the definition. The new SME definition represents a major step towards an improved business environment for SMEs and aims at promoting entrepreneurship, investments and growth. This definition has been elaborated after broad consultations with the stakeholders involved which proves that listening to SMEs is a key towards the successful implementation of the Lisbon goals (EC, 2009). The criteria, about EU definition of SME in 1996 and 2005, are presented in Table 1 below: SME CATEGORY EMPLOYMENT* Medium Small Micro 250 50 10 TURNOVER (Million €) 1996 2005 40 50 7 10 ** 2 BALANCE SHEET (Million €) 1996 2005 27 43 5 10 ** 2 Table 1: Definition of SME in European Union In European Union, the new definition of SME includes those with fewer than 250 employees (EC, 2003). This group is further disaggregated into micro enterprises (with fewer than 10 employees), small enterprises (with 10-49 employees) and medium sized enterprises (with 50-249 employees). Micro enterprises would include self-employed people working for themselves with no employees. 32 32 Sometimes the term small, medium and micro-sized enterprises (SMMEs) are used rather than SMEs. 184 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Eurostat has made re-arrangement on statistics of EU by enterprises scale and Eurostat definition of SMEs is that not employee and 1–9 employees are micro scale, 10–49 employees is small scale, 50–249 employee is medium scale, 250–499 employee is large scale (EC, 2003). Advantages and Disadvantages of SMEs Small and medium size enterprises have become popular in the world especially since 1960s. Schumacher (1973) denotes the superiorities of SMEs as such: SMEs have a competitive structure. SMEs are more efficient. SMEs keep up with the new demands and new technology easier. SMEs‘ working styles are not monotonous or boring. SMEs are more enduring to the economic crisis. SMEs have a more successful role in increasing employment and arranging income. SMEs have been leading enterprises in the industrialization of Western Countries since 1960 (Çarıkçı, 2001). SMEs, observing the market closely, understanding the requirements of customers better and having intimate relations with its employee, have more elasticity than the large ones in terms of manufacturing, marketing and service. As this elasticity enables harmony with the changes in outside in time and on-site, SMEs pass over many troubles lightly with less damage. Right along with these, SMEs may obtain some advantages in some surroundings. SMEs‘ advantages are (Yılmaz, 2004): SMEs provide the strength of element of ―balance‖ income spectrum. This balance gains importance in terms of both social and economic sides. These enterprises are the sources of new ideas and discoveries. They contribute to the industries for providing required elasticity. SMEs have the opportunity to make a decision more quickly. Because they work with less expense of management and general operating, they have faster and cheaper production. SMEs play an important role in creating private initiatives. Also they enjoy large shares in employment and training. These enterprises are the first establishments in which many qualified workers receive technical training. SMEs constitute an effective way to expand the manufacturing and industrialization to the whole country. SMEs are of the situation to be the manufacturer of intermediate goods and inputs of large industrial enterprises. SMEs may be effective in increasing quality of life providing some opportunities for small investments to use labor force, raw material and financial sources that cannot be used because of social and political reasons. SMEs possess a significant role to fulfill the function to reflect small savings and family savings directly to the investments. In this regard the small firm is too important, too dominant and too much about creating the future business generation for marketing practitioners (Day, 2000:1034). According to the report of European Community, the contribution of SMEs to the economic system are summarized as the following; ―these enterprises constitute a required part of commercial and industrial structure because of their numbers and studies about different cases; effects over all sectors having a field of manufacturing, trade and service; contributions to employment and level of welfare‖ (EC, 2003). However, SMEs have also some disadvantages 33. These are lack of general administration, especially the lack of total participation of low level workers to the decisions taken by the owners or partners, not employing specialist and financial consultants in the enterprise, lack of an expert group in financing and lack of department, lack of capital and financial planning, not taking enough support from the banks and other financial corporations, lack of product development, lack of coordination between production and sale, not showing the activities of modern marketing, littleness of business sites and residential areas, risk of bankruptcy and losing its independency, not to be able to provide specialized staff, legislation and bureaucracy, SMEs may be called disadvantageous. It should be noted that among disadvantages of SMEs exhibit a lower level of profitability than do their larger counterparts. However this lower level of profitability is consistent with at least two of the many roles (Carree and Thurik, 2003) SMEs play in the economy: ―the seedbed and turbulence role‖ (Beesley and Hamilton, 1984) which creates economic growth at the expense of survival rates and profitability of those firms involved in this roles (Fritsch and Mueller, 2008) and interacting with their larger counterparts as a supplier while large firms outsource their less profitable non-core activities (Baumol, 2002). 33 See also Table 1. 185 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Small Firms Ability to react quickly to keep abreast of fast-changing market requirements. Marketing Management Internal Communications Qualified Technical Manpower External Communications Lack of bureaucracy. Dynamic, entrepreneurial managers react quickly to take advantage of new opportunities and are more willing to accept risk. Efficient and informal internal communication networks. Affords a fast response to internal problem-solving: provides ability to recognise rapidly to adapt to change in the external environment. Frequent lack of suitably qualified technical specialists. Often unable to support a formal R&D effort on an appreciable scale. Frequent lack of time or resources to identify and use important external sources of scientific and technological expertise. Finance Great difficulty in attracting capital, especially risk capital. Innovation can represent a disproportionately large financial risk. Economies of Scale and the Systems Approach In some areas scale economies of form substantial entry barriers to small firms. Inability to offer integrated product lines or systems. Can experience difficulty in acquiring external capital necessary for rapid growth. Can experience problems in coping with the patent system. Cannot afford time and costs involved in patent litigation. Often cannot cope with complex regulations. Unit costs of compliance for small firms often high. Growth Patents Government Regulations Large Firms Comprehensive distribution and servicing facilities. High degree of market power with existing products. Professional managers able to control complex organisations and to establish corporate strategies. Internal communications often cumbersome: this can lead to slow reaction to external threats and opportunities. Ability to attract highly-skilled technical specialists. Can support the establishment of a large R&D laboratory. Ability to ―plug in‖ to external sources of scientific and technological expertise. Can afford library and information services. Can buy crucial technical information and technology. Ability to borrow on capital market. Ability to spread risk over a portfolio of projects. Better able to fund diversification into new technologies and new markets. Ability to gain scale economies in R&D, production and marketing. Ability to offer a range of complementary products. Ability to finance expansion of production base. Ability to fund growth via diversification and acquisition. Ability to employ patent specialists. Can afford to litigate to defend patents against infringement. Ability to fund legal services to cope with complex regulatory requirements. Can spread regulatory costs. Able to fund R&D necessary for compliance. Table 2: A Comparison of Small and Large Firms (Advantages and Disadvantages) Source: (Xhepa, 2006). Importance of SMEs by Countries and Country Groups in the World Economy Small and Medium Sized Enterprises (SMEs) have always taken significant roles in the world economy. SMEs, which are the driving force of economic growth, have an important effect on the economic activity. In European Community, every three people out of 25 (12%) in 1985 were free from business. Therefore, a research has been made to achieve an important increase in employment in Europe. The results of the research show that one solution to achieve this rise is Small and Medium Size Enterprise (SMEs). It is noted that SMEs, the significance of which become clearer for resolving employment problem, have gained importance also in Europe after 1970s (BulmuĢ, Oktay, Törüner; 1990). It is seen that SMEs form a major part of total enterprises in the countries in Table 3 in the period between 1945 and 1970, emphasizing large size enterprises, economic growth and rehabilitation activities are implemented in the world. However, in this period, it is understood that SMEs have superior features compared to large size enterprises. In several countries, SMEs‘ role in creating employment and enabling competitive 186 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo atmosphere, have gradually increased. In 1970s, the conjuncture on economic crisis has become effective in such a case. On the other hand, after the economies of scale have begun to decrease, SMEs have begun to construct the basis of macro economies‘ policies in many countries because SMEs have contributed to the usage of sources economically, the employment and income distribution after the depression in 1970. Contrary to the large enterprises focusing on the manufacturing of products the demand of which have showed high or low income elasticity, are the units affected least by the economic crisis (Yılmaz, 2004). Once the economies of developing and developed countries are analyzed, indicators of SMEs disclose the significance of this sector clearly. Although SMEs show agricultural and structural differences country to country, an invariable fact is that these enterprises have great contribution to the economies of whole world countries. SMEs in Total Enterprises (%) SMEs in Total Employment (%) SMEs in Total Investment (%) SMEs in Total Value Added (%) SMEs in Total Export (%) SMEs in Total Credits (%) USA Germany Japan France England SouthKorea India Turkey 97,2 99,8 99,4 99,9 96 97,8 98,6 99,5 50,4 64 81,4 49,4 36 61,9 63,2 61,1 38 44 40 45 29,5 35,7 27,8 56,5 36,2 49 52 54 25,1 34,5 50 37,7 32 31,1 38 23 22,2 20,2 40 8 42,7 35 50 48 27,2 46,8 15,3 4 Table 3: Share of SMEs in Some Countries (%) (2004) Source: (Yılmaz, 2004). SMEs constitute the basic source of materials, ideas, process and service that large enterprises cannot do or do not want to do. Because aiming to benefit from the cost advantage of economies of scale, large enterprises implement a policy of manufacturing a product for a long period due to the big investments for the machines, tools, devices and labor force. However, SMEs do not have such problems as maintaining a large scale investment. Because their economies are small and they possess more elastic structure when compared to large enterprises (Efe, 1998). SMEs remain important not only in developing countries but also in developed and industrialized countries. In these years of 21st century, in developed countries, the policies aiming to increase employment of small enterprises, observed up to now, are postponed and it has been tried to constitute some policies enabling formation and competition of small enterprises making changes in production, sale and management. In developed countries, policies of small enterprises should be to improve alive, dynamic enterprising, not focusing on increasing employment (Sarıaslan, 1994). Despite these difficulties, in all countries, there can be made such a generalization that SMEs constitute about 99% of enterprises. Despite the change from one country to another, SMEs constitute 40-80% of employment and 30-70% of gross national product. 5% of the SMEs are of the statute of large enterprises. This data designates a superiority of small enterprises upon large ones. One of SMEs small but important characteristics is that they are in a leading position to improve industries and technologies. SMEs are densely existed within the enterprises implementing innovative studies. By decreasing cost of communication, SMEs technical opportunities will increase and thus, SMEs‘ achievement in global market will improve. Contribution of SMEs to the employment is also important (Küçükçolak, 1998). European Union (EU) OECD Countries Of the 19.3 million enterprises in the European Union (EU) today, 99% are defined as SMEs and employ some 75 million people. There are only 35,000 enterprises, with more than 250 employees, but 18 million enterprises employ fewer than 10 people - the micro- enterprises. The average European business provides employment for 4 people, including the owner/manager, the average turnover being 500,000 euro. Of this group, SMEs represent over 95% of enterprises in most countries and generate over half of private sector employment. Moreover, most OECD governments promote entrepreneurship and develop SMEs with a myriad of policies and programmes because of SME difficulties such as financing, technology and innovation, e-commerce, management and internationalization. For example, in Korea measures include tax breaks and reduced interest loans for starting new businesses in rural areas. 187 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Latin America Asia South Africa After focusing on large investments and wooing multinationals for years, Latin American politicians are beginning to realize that SMEs are the true job creators, as well as important players in technology supply chains. The vast majority (approximately 80-90%) of companies are micro enterprises and the governments have vastly reduced red tape to ensure SMEs needs are attended to swiftly. Among the major regional economies, except of Argentina, while these types of businesses flourished elsewhere in LatinAmerica, especially in Brazil and Mexico. It has been recognised that some of the world‘s best performing economies, notably Taiwan and Hong Kong, are very heavily based on small enterprises'. 81% of all employment in Japan is in SMEs where the average enterprise employs nine staff as opposed to four in the EU. The share of employment located in the micro, small and medium sectors taken together is high – estimated recently at 60% while the sector generated about 40% of output. Source: (Adapted from Lukacs, 2005). Table 4: Share of SMEs in Global Economy Regardless of the level of economic growth, in all countries SMEs are the basis of economic and social order in terms of numerical and job creation capability. In almost all of the countries, SMEs constitute nearly all of the enterprises. According to this, in all countries, SMEs have an active role (KOSGEB, 2000, 1993). Consequently, today, with the globalization of world markets, developed and developing countries are more aware of the capability and elasticity of SMEs to keep up with the social and economic changes. Thus, they focus on incentive economic measures to increase their competition capability and technological level. In short, in the world, the concept of ―Small is Beautiful‖ is common. The Importance of SME in Developing Countries The notion of SME and entrepreneurship development was introduced into the growth and development landscape as early as the late 1940‘s with the introduction of targeted policies (grants, subsidized credits, special tax treatment, etc.) and the establishment of small business or SME support agencies by governments (e.g. publicly funded SME agencies were set up in 1948 in Japan, 1953 in USA, 1954 in India, 1966 in Tanzania, 1976 in Turkey) (OECD, 2004). As with any other component of an economy, the size and importance of the SME sector varies from country to country; the last few decades have seen an increasing recognition of the role it plays in industrial countries, something already more obvious for developing nations from the 1970s or so. SMEs are important to almost all economies in the world, but especially to those in developing countries (Berry, 2007). There is considerable interest in SMEs in developing countries. There are probably two main reasons for this. One is the belief that SME development may prove to be an effective antipoverty programme. The second is the belief that SME development is one of the building blocks of innovation and sustainable growth. These two reasons are of course linked because most of the international evidence says that growth and real poverty reduction go hand in hand. If SME development helps growth, more than likely it helps reduce poverty as well (Warner, 2001: 61) SMEs contribute substantially to a stable economic environment and to the development of the economy. To achieve stable economic development the business of SMEs must be supported. They need especially financial and consulting services which help them to overcome difficulties during the start-up phase or to carry out their normal business activities. (Güttler, 2001:89) Developing countries without substantial SME sectors (hence often described as having a ―missing middle‖ in their firm size structure) tend not only to have capital and the income from it concentrated in the larger firms but also to have a ―labour elite‖ in that sector, able to bargain for wages much higher than elsewhere in the economy. With the economy‘s capital stock almost completely used up by the large firms (usually a result of capital market imperfections), there is little remaining capital to be distributed among the many workers not hired by large firms; this produces a large micro enterprise sector with the SME sector squeezed out for lack of capital. The equilibrium wage in the micro enterprise sector is very low and capital incomes are low there as well. In short, income is very unequally distributed. When the SME sector is large, these extremes in the distribution of both capital income and labour income are avoided. (Berry, 2007) Furthermore, SMEs contribute to employment and income generation and export revenues in developing countries. However, in order to tap into the potential of SMEs for development and poverty reduction, transition and developing country governments, development partners and SMEs themselves need to address a number of challenges (OECD, 2004): • The domestic SME/private sector has to expand, through: 188 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo − The creation of new and innovative firms and − The graduation of as many informal enterprises as possible into the formal sector. • SMEs have to become more competitive and productive at their home base. • At least a proportion of these nationally competitive SMEs have to achieve a level of competitiveness that will enable them to integrate into the global value chains through trade (exports and internationalization) and investment, including linkages with FDI. Conclusion The economy of the 20th and 21st century has a different set of rules than Smith‘s economy of the 19th century. The new ideology of neo-liberalism and globalization emphasizes the role of SMEs as promoters of a healthy business climate, economic efficiency and power for economic development, especially in developing countries. SMEs have an important role in terms of their economic share in developed and developing economies though there are different definitions of SME among various organizations and countries. Today, instead of large-scale firms, SMEs having gained importance in the developing economies, become advantageous being economic enterprises having the capability of quick adjudication, working with less capital but more intense labor and having low cost of management and thus having cheap production. In short, the concept of small is beautiful becomes important in the current economic conjuncture with large firms. Although SMEs have some weaknesses, they are less affected from economic crises due to its flexibility and abilities which keep up with changed conditions. SMEs are vital actors for enhancing innovation, competitiveness, entrepreneurship and the establishment of an effective innovation system for developing countries. Improving the investment climate for SMEs, and strengthening their capacities to respond to trade and investment opportunities, does strengthen the economic performance of SMEs and this in turn has a positive impact on growth and poverty reduction in developing countries. SMEs, observing the market closely, understanding the requirements of customers better and having intimate relations with its employee, have more elasticity than the large ones in terms of manufacturing, marketing and service. As this elasticity enables harmony with the changes in outside in time and on-site, SMEs pass over many troubles lightly with less damage. Although SMEs have some weaknesses, they are less affected from economic crises due to its flexibility and abilities which keep up with changed conditions. Besides they absorb economic crises effects and play a role as ―compress‖. In this regard, SMEs have crucial importance, especially for the developing countries. Even in ‗normal‘ economic conditions governments have recognised that, to survive and grow, SMEs need specific policies and programmes. However, at the present time, SMEs have been especially hard hit by the global crisis. It is important to stress that SMEs are generally vulnerable in times of crisis for many reasons among which are (OECD, 2009):  It is more difficult for them to downsize as they are already small;  They are individually less diversified in their economic activities;  They have a weaker financial structure (i.e. lower capitalisation);  They have a lower or no credit rating;  They are heavily dependent on credit and they have fewer financing options. 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(2004), Small And Medium-Sized Enterprises Development Albania, [available at http://www.acit-al.org/albanian/eu/SXhepa_AGugu.pdf]. YILMAZ, B. (2004), Kobi‘lerin Finansman Sorunlarına Bir Çözüm Önerisi: ―Risk Sermayesi Finansman Modeli‖, DıĢ Ticaret Dergisi, DTM Yayını, Yıl:9, Sayı:33. 192 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 151 Title A name given to the resource The Importance of SMEs in Developing Economies Author Author KESKİN, Hidayet ŞENTÜRK, Canan SUNGUR, Onur KİRİŞ, Hakan M. Abstract A summary of the resource. The economy of the 20th and 21st century has a different set of rules than Smith‘s economy of the 19th century. The new ideology of neo-liberalism and globalization emphasizes the role of SMEs as promoters of a healthy business climate, economic efficiency and power for economic development, especially in developing countries. Today, instead of large-scale industries, SMEs having gained importance in the developing economies, become advantageous being economic enterprises having the capability of quick adaptation, working with less capital but more intense labor and having low cost of management and thus having cheap production. Although SMEs have some weaknesses, they are less affected from economic crises due to its flexibility and abilities which keep up with changed conditions. SMEs are vital actors for enhancing innovation, competitiveness, entrepreneurship and the establishment of an effective innovation system for developing countries. Therefore, in this study the importance of SMEs for developing countries is considered. First, the regulations related to SME definition and EU‘s SME definitions are mentioned. In the second section, the advantages and disadvantages of SMEs are considered. Then, the importance of SMEs in the economies is discussed by groups of countries with the help of various indicators. Finally, the importance of SMEs in developing countries is discussed. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed HB Economic Theory https://omeka.ibu.edu.ba/files/original/b041f2cdc16c3c74774a84f07fbe0664.pdf 2cef38050f0a08c9bd152a1a6631aef3 PDF Text Text 2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo An Investigation of the Relationship between the Two Different Groups of Students’ Entrepreneurship Characteristics M. Dursun KAYA Atatürk University, Vocational College of Erzurum, Erzurum, Turkey, dursun@atauni.edu.tr Salih Börteçine AVCI Atatürk University, Vocational College of AĢkale, AĢkale-Erzurum, Turkey, savci@gyte.edu.tr DilĢad GÜZEL Faculty of Economics and Administrative Sciences, Erzurum, Turkey, dguzel@atauni.edu.tr Betül BÜLADĠ ÇUBUKÇU Atatürk University, Vocational College of AĢkale, AĢkale-Erzurum, Turkey, betulbuladi@hotmail.com M. Fatih DEMĠRTAġ Erzincan University, Vocational College of Tercan, Tercan-Erzincan, Turkey, mfatih1981@hotmail.com Abstract: According to the definition of entrepreneurship and the studies carried out, the feature of the entrepreneurship is accepted unavoidable element for entrepreneurs‘ attitude. It is known that entrepreneurs have taken more risks or more opportunists and more innovative than he other entrepreneurs. But, these three entrepreneur dimension can change independently from each other in different environment circumstances. The purpose of this study is to evaluate these three factors affecting the entrepreneurship for this reason. A survey developed for such an evaluation was applied by face to face with 190 volunteer students attending to senior classes of three different vocational colleges with economics and administrative sciences faculty of Atatürk University. The data obtained from the research were taken into consideration and the students were classified into groups. While the students in the first group consisted of the students who don‘t take education or don‘t have any knowledge, the students in the second group consisted of the students who have some knowledge about entrepreneurship or those who have lived in an entrepreneur environment. While 47.0% of the students have taken the place in the first group, 53.0% of them are in the second group. Students‘ t test and one-way anova analysis in SPSS were used in the medium to data set obtained. In one-way anova analysis carried out, it was detected that the students who are not from entrepreneur milieu and attending to different academic units had innovative feature. But, in the dimensions of evaluation of opportunity and taking risks, in all comparisons, there was no distraction between both two groups and according to the demographic features. Introduction The impact of entrepreneurship education has been recognized as one of the crucial factors that help youths to understand and foster an entrepreneurial attitude (Gorman et al. 1997; Kourilsky & Walstad 1998). Due to the influence that education could have on the attitudes and aspirations of youth, there is a need to understand how to develop and nurture potential entrepreneurs even while they are still students in school. Few empirical studies have examined the entrepreneurial propensity of university students as a source of future entrepreneurs. Their attitude and knowledge of entrepreneurship are likely to shape their inclination to start their own businesses in the future. This type of study will also help universities and other institutions to develop suitable educational programs to promote entrepreneurship. Obviously, findings from such a study will have certain policy implications in inducing more university graduates to start their own businesses (Wang & Wong 2004). 733 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Definition of Entrepreneurship In literature about entrepreneurship it is difficult to find a common definition of entrepreneur. In total, there are more than 30 definitions of entrepreneur (Manasov 2006). In addition, since the 1960s, scholars with a variety of backgrounds such as; psychology, sociology, anthropology, history and management, have been interested in studying entrepreneurship (Ramachadran & Ray 1998). The concept of entrepreneurship, entrepreneurial and entrepreneurial process is derivatives of the concept of Entreprendre (Arıkan 2002). It was Richard Cantillon, who used the entrepreneur concept the first time in an economic context. He describes the entrepreneur as any individual who operates under conditions where expenditures are known and certain, but incomes are unknown and uncertain. In other words the unique characteristics of Cantillon‘s entrepreneur are foresight and the confidence to operate under conditions of uncertainty (IrmiĢ & Selçuk 2002). The important role of entrepreneur in directing and redirecting resources in a state of perpetual disequilibrium was emphasized by the Austrian schools scholars (Manasov 2006). However, it was Joseph Schumpeter, who made the crucial contribution to definition of concept. Schumpeter‘s entrepreneur was not clearly a category or a person, but a conceptual abstraction which introduced the Notion of new combinations. The entrepreneur provided a new product or new production process via a different combination of inputs that have not been tried before. In the economic system the entrepreneur is one who innovates, and tries a new organization of inputs for the first time (Shionoya 1995). The Factors Defining Entrepreneurship The factors defining entrepreneurship may be studied as regards individual, environmental and institutional dimensions. Individual Approach: The researchers accepting individual approach try to explain the entrepreneur mostly focusing on the psychological, demographical and personal features. According to this approach the entrepreneurs have unique values, manners and needs. For that reason, the psychological influence, the personal features and the experiments lived influence the position of being entrepreneur. Environmental Approach: This approach advocates the existence of mutual interaction of environmental features affecting the decision of entrepreneurship and individual features in the basis of being entrepreneur. Entrepreneurship is a reaction to the cultural, social, politics, economic and technological circumstances. Individual past, experiment, personality, capability and skills influence entrepreneur attitude Company Approach: This approach focuses on the existing facilities in enterprises. In other words, according to this point of view approaching entrepreneurship to the managership, this determines being entrepreneur in the facilities enterprises (Nakdiyok 2004). The Features of Entrepreneurship Autonomy (Independency): Independent attitude is accepted behavioral attitude of entrepreneur. The research discovering independent orientation of entrepreneur is limited. There are a lot of successful entrepreneur. Independent entrepreneurs express their creativities and ideas without confirming status quo. The attitude of independent and autonomy is central for the entrepreneur concept. Independency is important for the initial process combining with entrepreneurship. The measurement for autonomy attitudes starts with pursuit in the fields of entrepreneurship. Against independent attitudes, it is necessary to manage itself in the pursuit of opportunity and orientation and capability. Risk, orientation and innovative attitudes are associated with opportunistic attitude (Sollymossy 1998, 56). Taking Risk: Nominates of entrepreneurship are those who can take risk without gambling and wisely. Taking risk is associated with creativity and being innovative, and it is necessary for realizing the ideas. Taking risk is associated with self-confidence. The more he has self confidence, the more he trusts his decisions and the more he can take risk which others can not. He accepts the risk which includes only profits or equal circumstances or conditions in which there are more profits (Gözek, 2006, 4). Individual Control: Individual control believes that it is formed as a result of their attitudes rather than the influence of external circumstances. Individual control is accepted as an entrepreneur feature by Rotter. The idea that all events are formed by your attitude and it enables to ignore the impact of the agents of the chance and other 734 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo environmental agents on the event. Individual control features gives entrepreneur the facility of detection of their priorities and being independent in his behaviors. This understanding encourages entrepreneur giving his decision by himself and forming his behaviors in this direction (AvĢar 2007, 14). Opportunism: Entrepreneurs are those who create the opportunities which other missed. They create these opportunities by means of syntheziation and obtaining of the knowledge. Because, knowledge provides low and high risk definition and comprehend the opportunity and perception of the limitations of entrepreneurs. Thanks to the knowledge entrepreneurs obtained, they may innovative and creative opportunity, he may occur original and potential market and he can find the sources and without trusting the chance he can show a consciousness and disciplined effort. Successful entrepreneurs focuses on more the opportunity than source, structure and strategy (Nakdiyok 2004, 25). Innovation: Drucker accepts innovation as concepts strengthen potential of welfare creation. In fact, entrepreneurs are accepted as a great innovative power in economy. For example, a lot of new products developed in all over the world are the result of entrepreneur efforts one of the most important reasons of these is that they have various experiences which hey acquire throughout the facilities of entrepreneurs. These experiences encourage entrepreneur about finding solution to the problems, and they oriented them about innovations (AvĢar 2007, 17). Success: The need of success is a factor oriented entrepreneurial attitudes. Individual having high success need trusted him, and likes to take estimated risks, and enjoys o investigate his environment actively, and he wonders how he does the work better. These kinds of behaviors increase his possibility of being entrepreneurs (Nakdiyok 2004, 24). Enjoy Him: In special works, it is discussed that enjoying himself is necessary for successful entrepreneur behavior. Enjoying himself, in addition, is for social and special works. The researchers indicate that the levels of enjoying themselves of entrepreneurs are more than those who are not entrepreneurs (Sollymossy 1998, 54). Characteristics of Entrepreneurial Colleges and Universities According to ―Trachtenberg Educational Institutions‖ with an entrepreneurial orientation work to create and develop new ideas for generating revenue and programs. In doing so, they foster new attitudes, direct and inspire individuals and develop interpersonal relationships and teams. The new entrepreneurial university is turning out to be a place that makes money. The new entrepreneurial university is a place where you can legally talk about your students as ―customers‖…. In the new entrepreneurial university, we have finally succeeded in making living contact with the world we purport to be teaching our students about. It is serious business we‘re in. Universities are critically important to American society. So it is serious business to get along with business leaders and with bureaucrats. It is serious business to listen to our customers and hear what they need and want. (Riggsd 2005) A search for alternative and unique income streams has been a focus of higher education management in creating this entrepreneurial institution. Indeed, Clark one of the most respected and prolific commentators on the rise of entrepreneurship in American colleges and universities, defines ―the entrepreneurial institution‖ in terms of its sources of revenue. Clark explains that there are three basic income streams for institutional resources: (1) Governmental allocation based on numbers and statistics about students, faculty and other aspects. (2) Funds from government research councils that focus on research groups, departments and professors that compete for research funds and contracts. (3) Income from virtually all other sources, such as endowments, student fees, profits on campus operations, monies obtained from industries, and others. Clark then defines ―entrepreneurial university‖ in terms of the third income stream. He describes entrepreneurial institutions as ―significant actors on their own terms seeking third-stream sources of financing and actively reaching out to them‖ (Clark 1998). This study used Clark‘s theoretical framework as a basis for defining and understanding the entrepreneurial university. In particular, the study considered entrepreneurial activities to comprise third-stream income sources that include: (1) Innovative and profit-based self-supporting operations that go beyond traditional sources, such as business development activities and innovative retail sales operations, (2) Activities that develop and enhance traditional income streams such as endowment and tuition, (3) Activities that involve both traditional and nontraditional aspects, such as distance learning, which uses nontraditional methods of teaching to gain tuition, which is a traditional source of income. Clark offers a number of important insights into the nature of the entrepreneurial institution of higher education. Principal characteristics that identify the entrepreneurial university are: 735 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo (1) The ability to change its organizational structure, (2) Cooperative and unified stakeholders, and (3) Developed entrepreneurial attributes that lead to autonomy within the institution. Clark also points out three critical aspects of the evolutionary process that transform an institution into an entrepreneurial university: (1) The institution must have strong leadership, sturdy management and administration to direct the institution into achieving autonomy, self-sufficiency and financial stability through entrepreneurial approaches. (2) The institution must expand its development periphery, intentionally working to bring in outside interests to participate in projects that attempt to solve serious practical problems that are critical to economic and social development. In doing so, the institution seeks to acquire greater financial resources, widen the financial base, and diversify income to increase financial resources, provide discretionary money, and reduce governmental dependency. (3) The institution must diversify its funding base and balance its funding portfolio. ―Entrepreneurial universities learn faster than non-entrepreneurial counterparts that money from many sources enhances the opportunity to make significant moves without waiting for system wide enactments that come slowly‖ (Clark 1998). Material and Methods In order to evaluate entrepreneurship qualities of two groups of student, on empiric study has been designed. Opportunity, taking risk and innovation dimensions were examined between 190 Atatürk University students. The first group consists of students who don‘t receive any knowledge and training about entrepreneurship. The second group consists of the students expressing that they experienced on entrepreneurship acquiring about entrepreneurship coming from the faculties as gender the same age. All participants are taken from the students of different faculties and vocational colleges of Atatürk University. The participants were asked to answer the questions according to five-live likert scale from ―I don‘t participate in‖ towards ―I agree to participate in‖. In order to be able to test our hypothesis, ―Entrepreneurship Attitude Orientation‖ EAO framework and scale designed Simpson and Shanthakumar and developed Robinson were used. EAO is a behavioral management scale formed the evaluation opportunity dimension and selfishness, and innovation and personnel control. But this scale ignores taking risk and vagueness behaviors (see Shanthakumar 1992). In order for the tendency of individual risk taking including perceptive to measure, 3-line scale prepared by Winston was used. In addition to this, in order to evaluate the tendency of risk, two questions used in the evaluation of risk behavior from Covin and Dennis were added to the survey (see Covin & Dennis 1991). In our study we claim that high success orientation of entrepreneur individuals were completed with opportunity, innovation and risk taking behaviors. So, three dimensions of all EAO scale were evaluated. For the dimension of taking risk, innovation and opportunity according to the groups who are in the entrepreneur milieu or not, students‘ t test and variance analysis the evaluation the difference between subjects. Findings The data were collected by likert formed scale because of having systematic intervals to measure and compare the students‘ perceptional importance of tendency. The data were collected from each department‘s students during the lesson periods including 50 minutes. The purpose of the study before test and secret the situations were told the students before applying by researcher. In this study, 90 students who don‘t have knowledge about entrepreneur (41 of them female and 49 of them male) and 100 students coming from a entrepreneur milieu (35 of them female and 65 of them male) were included in the study. In both groups, the age of the subjects are between 18 and 25 years, and most of these are under 22 years of age. 736 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Gender Male Female Academic Unit Faculty of Economics and Administrative Sciences Vocational College of AĢkale Vocational College of Erzurum Vocational College of Tercan Type of education Normal education Night education Those who are not entrepreneur milieu N % Those who are from entrepreneur milieu N % 49 41 54.4 45.6 65 35 65.0 35.0 17 9 56 8 18.9 10.0 62.2 8.9 12 11 61 16 12.0 11.0 61.0 16.0 63 27 70.0 30.0 59 41 59.0 41.0 Table 1: the distribution of the demographic features of the students who are or not from entrepreneur milieu The classification of the students included in the study is determined by the control questions prepared for the determination of environment features behind survey questions. In the result of the classification carried out while 54.4% those who are not from entrepreneur milieu are male, 65.0% of those who are from entrepreneur milieu are male. When the distribution according to academic unit where the students who are from entrepreneur milieu was examined, 62.2% of them attended to Vocational College of Erzurum, and 18.9% of them to Faculty of Economics and Administrative Sciences, and 10.0% of them to Vocational College of AĢkale, and 8.9% of them Vocational College of Tercan. On the other hand, when the distribution of according to their academic unit of the students who are from entrepreneur milieu was examined, 61.0% of them attended to Vocational College of Erzurum, and 16.0% of them to Vocational College of Tercan, and 12.0% to Faculty of Economics and Administrative Sciences, and 11.0% of them to Vocational College of AĢkale. While of 190 students, 70.0% of those who are not from entrepreneur milieu are those who attend to their normal education 59.0% of them was the students of normal education (Table 2). In data analysis, risk taking factor was measured by a scale consisting of 5 questions. And, its reliability was found as 0.87. The evaluation of opportunity was measured by scale consisting of 5 questions and, its reliability was found as 0.63. The dimension of innovation was measured by scale consisting of seven questions and its reliability was found as 0.62. Innovation Opportunity Taking risk Those who are not entrepreneur milieu Mean ± SD 3.90 ± 0.43 3.87 ± 0.74 2.97 ± 1.10 Those who are from entrepreneur milieu Mean ± SD 3.84 ± 0.39 3.82 ± 0.76 3.14 ± 1.12 t test 0.97 0.44 -1.04 Table 2: The comparison of those who are or not from entrepreneur milieu as regards high success orientation There was no statistical distinction as regards innovation between the first groups isn‘t from entrepreneur milieu (3.90 ± 0.43) and the second group which is from entrepreneur milieu (3.84 ± 0.39) (t=0.97; p>0.05). There was no statistical distinction as regards opportunity success orientation between the first group (3.87 ± 0.74) and the second group (3.82 ± 0.76) (t=0.44; p>0.05). Similarly, in the dimension of taking risk, same features between both groups were oriented (respectively, 2.97 ± 1.10; and 3.14 ± 1.12). When it was examined as regards taking risk, score averages of those coming from entrepreneur milieu was 3.14 while score averages of those who are not from entrepreneur milieu was 2.97. This can be interpreted as in both groups can take more risks. 737 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Academic Unit Faculty of Economics and Administrative Sciences Vocational College of AĢkale Vocational College of Erzurum Vocational College of Tercan Innovation Those who are not entrepreneur milieu F Mean ± SD Those who are from entrepreneur milieu F Mean ± SD 3.52 ± 0.57 3.78 ± 0.50 3.89 ± 0.31 3.91 ± 0.39 4.02 ± 0.40 3.86 ± 0.34 3.89 ± 0.46 3.69 ± 0.29 1.14 4.02 ± 0.95 4.04 ± 0.30 3.75 ± 0.71 4.13 ± 0.79 1.21 3.01 ± 1.16 3.09 ± 1.14 2.87 ± 1.08 3.45 ± 1.15 0.71 3.37* Opportunity Academic Unit Faculty of Economics and Administrative Sciences Vocational College of AĢkale Vocational College of Erzurum Vocational College of Tercan 3.93 ± 0.93 3.96 ± 1.17 3.79 ± 0.69 3.73 ± 0.57 0.32 Taking risk Academic Unit Faculty of Economics and Administrative Sciences Vocational College of AĢkale Vocational College of Erzurum Vocational College of Tercan 3.21 ± 1.25 3.27 ± 1.13 3.05 ± 1.14 3.31 ± 0.99 0.31 Table 3: The comparison of the orientation of innovation, opportunity and taking risk of students who are or not from entrepreneur milieu according to academic units *: significant at 0.05 ―Entrepreneurship Attitude Orientation‖ (EAO) whether there was a distinction according to the students who are from entrepreneur milieu or who are nor from entrepreneur milieu according to academic units between each of factors of taking risk, innovation and opportunity from the EAO scale was tested by variance analysis. In the result of the analysis carried out, there was distinction only in innovation factor of academic units of the students who are not from entrepreneur milieu. There was no statistical distinction about situations on taking risk and opportunity students who are not from entrepreneur milieu and who are from entrepreneur milieu according to different academic units (Table 3). Discussion Unlike literature, we couldn‘t find significant distinction except taking risk attitude between those who are from entrepreneur milieu and those who are not from entrepreneur milieu in our study. Our hypothesis explaining that those who are coming from entrepreneur milieu are more opportunistic and more innovative than those who are not have not been supported in our study. The reason that is not such a distinction is that we haven‘t still had a clear answer about that some students are more innovation and opportunistic and more taking risk. In fact, we are on the opinion that the idea of entrepreneur should be examined by system of point of view and under the context each environmental factor on entrepreneur is an undeniable reality changing differentiated circumstances. In this respect, our comprehensive study together with other studies including studying with voluntary groups which plan to set up their own business or graduate from the universities has been going on, after other parts had been completed, and required analysis hade been made, we hope that we can reach at more significant results. References Arıkan, S. (2002). GiriĢimcilik Temel Kavramlar Ve Bazı Güncel Konular, Siyasal Kitabevi, Ankara. AvĢar, M. (2007). Yüksek Öğretimde Öğrencilerin GiriĢimcilik Eğilimlerinin AraĢtırılması, Çukurova Üniversitesinde Bir Uygulama, YayımlanmamıĢ Yüksek Lisans Tezi, Adana. Clark, B. R. (1998). Creating Entrepreneurial Universities: Organizational Pathways of Transformation. Oxford, Uk: Pergamon Press. 738 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Covin, J.G. & Dennis P. S. (1991). A Conceptual Model of Entrepreneurship as Firm Behavior, Entrepreneurship, Theory and Practice. Fall, pp.7-25. Gorman, G., Hanlon, D. & King, W. (1997). Some Research Perspectives on Entrepreneurship Education and Education For Small Business Management: A Ten-Year Literature Review. International Small Business Journal 15 (3). 56–77. Gözek, S. (2006). GiriĢimci Adayının Özellikleri, GiriĢimcilik Eğilimleri ve GiriĢimci Adaylarına Sağlanan Destekler. BasılmamıĢ Yüksek Lisans Tezi. KahramanmaraĢ. ĠrmiĢ, A. & Selçuk, Ö. (2002). Ġktisadi GeliĢmede GiriĢimcilik: Denizli ve Erzurum Örneği. Ġstanbul, Beta Yayinevi. Kourilsky, M.L. & Walstad, W.B. (1998). Entrepreneurship and Female Youth: Knowledge, Attitudes, Gender Differences, and Educational Practices. Journal of Business Venturing 13 (1), 77–88. Manasov, Z. (2006). The Development and Problems of Agricultural Entrepreneurship in Kyrgyzstan. Kırgızistan-Türkiye Manas Üniversitesi Uluslar Arası GiriĢimcilik Kongresi. Naktiyok, A. (2004). Ġç GiriĢimcilik, Beta Yayınevi, Ġstanbul. Ramanchadran, K. & Ray, S. (1998). A Framework and Entrepreneurship, in Entrepreneurship and Innovation by Rabindra N Kanungo. Riggsd, R. (2005). Entrepreneurial Activities in Independent College and University presidents: A View from the Top. Submitted to the Graduate Faculty of the School of Education In Partial Fulfillment Of The Requirements For The Degree Of Doctor Of Philosophy. University Of Pittsburgh. Shanthakumar, D.K. (1992). Attitudinal Characteristics of Male and Female Entrepreneurs in India and a Comparison with American Entrepreneurs. Unpublished Doctoral Dissertation. Brigham Yough University, UT. Shionoya, Y. (1995). Taking Schumpeter‘s Methodology Seriously, in Entrepreneurship, Technological, Innovation and Economic Growth. Ed. By Frederic M. Scherer and Mark Perlman. McGraw-Hill Book. Sollymossy, E. (1998). Entrepreneurial Dimensions: The Relationship of Individual, Venture and Environmental Factors to Success. Case Western Reserve University. Wang, C.K. & Wong, P. (2004). Entrepreneurial Interest of University Students in Singapore. Technovation 24, 163–172. 739 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 221 Title A name given to the resource An Investigation of the Relationship between the Two Different Groups of Students’ Entrepreneurship Characteristics Author Author KAYA, M. Dursun AVCI, Salih Börteçine GÜZEL, Dilşad BÜLADİ ÇUBUKÇU, Betül DEMİRTAŞ, M. Fatih Abstract A summary of the resource. According to the definition of entrepreneurship and the studies carried out, the feature of the entrepreneurship is accepted unavoidable element for entrepreneurs‘ attitude. It is known that entrepreneurs have taken more risks or more opportunists and more innovative than he other entrepreneurs. But, these three entrepreneur dimension can change independently from each other in different environment circumstances. The purpose of this study is to evaluate these three factors affecting the entrepreneurship for this reason. A survey developed for such an evaluation was applied by face to face with 190 volunteer students attending to senior classes of three different vocational colleges with economics and administrative sciences faculty of Atatürk University. The data obtained from the research were taken into consideration and the students were classified into groups. While the students in the first group consisted of the students who don‘t take education or don‘t have any knowledge, the students in the second group consisted of the students who have some knowledge about entrepreneurship or those who have lived in an entrepreneur environment. While 47.0% of the students have taken the place in the first group, 53.0% of them are in the second group. Students‘ t test and one-way anova analysis in SPSS were used in the medium to data set obtained. In one-way anova analysis carried out, it was detected that the students who are not from entrepreneur milieu and attending to different academic units had innovative feature. But, in the dimensions of evaluation of opportunity and taking risks, in all comparisons, there was no distraction between both two groups and according to the demographic features. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed HB Economic Theory https://omeka.ibu.edu.ba/files/original/22f37bb3a98b936963f3c24968a45da6.pdf 44023d6783c4a031fc7d25551e9ac540 PDF Text Text 2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Relationships between the Accountancy Students’ Future Occupational Choices and Their Attitudes towards Accountancy Profession ReĢat KARCIOĞLU Atatürk University, Faculty of Economics and Administrative Sciences, 25240 Erzurum, Turkey, rkarci@atauni.edu.tr Hakan YAZARKAN Atatürk University, Vocational College of Oltu, Oltu - Erzurum, Turkey, hyazarkan@atauni.edu.tr Fatih KARCIOĞLU Atatürk University, Faculty of Economics and Administrative Sciences, 25240 Erzurum, Turkey, fkarci@atauni.edu.tr M. Dursun KAYA Atatürk University, Vocational College of Erzurum, 25240 Erzurum, Turkey, dursuni@atauni.edu.tr Abstract: In recent years researches about accountancy which is one of the most important professions in the world and in our country asserts the negative attitudes of the students about carrying on the profession. The study which is about the causes of negative attitudes and occupational scope choices of the students of accountancy, examines the relationships between the occupational scope choices of the students and their attitudes towards accountancy profession. According to the results of the research, any relationships between the students‘ demographic characteristics and choices and attitudes towards the profession are encountered. However some relationships have been encountered between the occupational scope choices and attitudes towards accountancy profession. Sundry suggestions are put forward in accordance with the results of the research. Introduction In the competition conditions today; enterprises need some knowledge in order to be able to available in market and reach their aims. The way of reaching this knowledge is up to a good accounting system and having accounting staff with quality who will sustain this system. Accounting system with quality is also trained in vocational college of universities in our country. By law, profession members were handled in three groups such as Independent Accountant, Independent Accountant and Financial Consultant, Certified Financial Consultant. The fact that accounting training become global level; it all depends on accessing to the knowledge to the production, usable in the realization of the change, enabling taken risk, when deciding, having his decision, those who produce solve not problem, and growth of human force who their listening skills improve. In this connection, investigations were done in subjects of accounting program students‘ reasons of preferring this program, their point of view, their behaviors in working in this profession and ability of their education‘s vocations aims in addition (Özcan, Ünal & Helhel 2009). When we looked accounting education subject in actual mean, it was seen that people who want to enter accounting vocation should be equipped with essential knowledge not only for vocational knowledge but also 1 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo vocational skills, valves, ethical and technological improvements (Özbirecikli & Pastacıgil 2009). In a medium in which the need required for accounting persons who will provide the whole, true, impartial and quality knowledge about enterprise financial matters increase day by day, increasing of the knowledge of vocational college students is very important. In this context quality education, qualified accountant, quality accounting knowledge and effective administrative decision have come up with as the importance for a quality accounting education (DaĢtan 2009). Choose of career is an area which attracts especially academicians and professional and all of the societies attention because at being multi directed. Choose of carrier is not only earning money and provide his life standard but also may be a way of self expression of individual or a realization of himself and the method of acquiring of role. (Karcıoğlu 1994). Unit of professional quideship was created for this lost of theory was improved such as feature agent theory (Zaccaria 1969), psychoanalytic theory (Zaccarya 1969), requirement theory (Osipow 1968), theory of professional flourishing (Crites 1969, Ginzberg 1952), identity theory (Tiedaman & Ohara 1959), typology theory (Holland 1973), theories of decision which were improved by (Gellat 1962, Katz, 1966), conceit theory (Wylie 1979) developmental individuality signification theory (1982-1991) (Super et al. 1963). Carrier is the whole of the facilities based ob skill and knowledge acquired by a certain education and done in order to earn their life by individual. In other words, carrier is the way of development of himself and his skills and this way determines personality features, dreams, sight of the life and values of individual. Individuals direct lots of important life activity such as whether find a job or not in the future, whether be successful or not, whether like his carrier or not, person who he will get married, location where he live, education style his children (Karcıoğlu 2001). When importance of accountancy and occupation of accountancy takes note of according to economical and social life, this occupation can be preferred by the best as it can perform expected role itself and can continue. So most of expectation from occupation of professional and much serving to public profit and possible along with determination of factor which role to prefer occupation. Besides, when accountancy irregularity which occur in recent years bears in wind with public and economical effects, role of occupation and accountant much have drown and determination of factor which role to prefer occupation have become important (Durer et al. 2009). Choose of career is a marketing activity taken on the content of occupation and career marketing. In the preference of the profession such as a product or service, where is marketing strategies have been applied. Not only is choosing of career important, but also how mentioned profession will perform important. In this research it is aimed to determine the relationship between point of views of accounting students and their preference. In the application section of the research, the findings of the studies about students have taken the place. The Content of Research When we take on the choose of career as the behavior of consumer or student, all factors affecting purchasing behavior consumer-students will be effecting in the choosing of the career of the individual and on the preference of in what may the profession will be carried out. Some studies carried out in USA, UK and Canada, Australian and New Zealand show that accounting education come to be an area preferred less by students. On the other hand, after a lot of students receiving accounting educate had graduated, they tended not to sustain this profession. It is thought that mentioned negative behavior may originate from the problem of detection for suitable areas when individual determine their career. From this starting point, the relations between preferences of the area they wanted to sustain and their behaviors orienting to the profession have been investigated. It is aimed that recommendations should be offered, which will contribute to occupational satisfaction and effective sustains by orienting according to personal features of the students, thus the consultation units of the organizations which give accounting education. The study content on the research consisted of the students having accounting professional educates Atatürk University, Niğde University and Pamukkale University. Those who accept to participate in voluntarily survey study were included in the sample group; easy-sampling method was used. So, the results of the study are not generalized for other student and Turkey. Material and Methods In search sampling in easy method was used, the principle of voluntary was essential, total 400 surveys were sent to practice, from those, those that content and sample of search are suitable 372 piece are subjects to analysis. 2 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Before certain survey form is prepared, data collection isn‘t passed for search, it was interviewed with 10 students from Atatürk University Vocational College of Oltu Account Program and survey questions were prepared questions were asked in 5 likert scales (5 equals I agree conclusively, …, 1 equals I don‘t agree conclusively). And then prepared surveys were tried on 10 students who are different from the former group. In survey form parts that aren‘t understood and clear were put in order again and lost shape was given to form. In this search used in survey form was include two group questions. Questions of first group consist of buying behaviors and student/consumers demographic properties. Questions were taken part in to determine opinions of second group students for account occupation. Investigations were carried out to students face to face and the last week of March 2009 by lecturers and Atatürk University Vocational College of Oltu, Niğde University Vocational College and Pamukkale University Faculty of Economics and Administrative Sciences. The scripts were made analysis with the aid of SPSS statistic packet program. During the data analysis, frequency of the distribution, anova and correlation tests were used. The investigation carried out by developing suitable hypothesis according to ―students‘ occupational preference behavior and behavior towards accountancy occupation‖ and there is correlation between students‘ demographic properties and occupational preference behaviors.‖ Findings Participating the investigation, 50.3 percent of the answers are woman and 54.3 percent of them placed between 21-24 age groups. Answering the investigation, 70.4 percent of them graduated from normal high school and 24.7 percent of them are Atatürk University Vocational College of Oltu students and families‘ average income distribution for per month of 36.0 percent of them are 1001-1500 TL and it can be seen that chief of families‘ occupation of them have got free jobs (Table 1). 3 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Demographic properties Distribution according to sex Distribution according to age Distribution according to educational levels Distribution according to studying school Distribution according to taken place class Family‘s average income level for per months Chief of the family‘s occupation Father‘s education level Mother‘s education level women men 17–20 21–24 Up 24 Trade vocational high school Anatolian trade vocational high school High school other Ataturk Univ. Vocational College of Oltu Niğde Univ. Vocational College Pamukkale Univ. Faculty of Economics and Administrative Sciences First class Second class Third class Fourth class 0–500 501–1000 1001–1500 1501–2000 2001–2500 Up 2501 Public officer Private sector employer Free jobs Primary school Secondary school University Primary school Secondary school University Total N 187 185 153 202 17 75 13 262 22 92 135 % 50.3 49.7 41.1 54.3 4.6 20.2 3.5 70.4 5.9 24.7 36.3 145 145 157 19 51 47 130 134 32 11 18 92 68 212 154 168 50 246 109 17 372 39.0 39.0 42.2 5.1 13.7 12.7 34.9 36.0 8.6 3.0 4.8 24.7 18.3 57.0 41.4 45.2 13.4 66.1 29.3 4.6 100 Table 1: Distribution of student‘s demographic features It is reported that % 62.6 of students close neighborhood do not continue the job of accountancy, and as % 50.5 of students have information about the job of accountancy after graduate. It is declared that % 43.2 of the students who think to carry on job of accountancy work in a society or foundation, % 40.3 of them think to work as independent accountant or financial consultant, only % 16.5 of them work with another financial consultant (Table 2). Yes Carrying on the job in close neighborhood Recognizing of the job before attending to the university Thinking of carrying on job of accountancy n 139 188 244 No % 37.4 50.5 65.6 Table 2: Situation of the students about job of accountancy 4 n 233 184 128 % 62.6 49.5 34.4 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo On the other side, the response of students who don‘t think to carry on job of accountancy is on the table below (Table 3). As seen on Table 3, the students who don‘t like the job of accountancy take part at first turn with about 2.73 point, the reason of carrying on the family business, take part on last turn with turn with about 4.98 point. Reasons To hate accountancy job To study for graduating university Dissatisfaction of accountancy job To do a different job by vertical transition To study as the family desire To study as to be police, noncommissioned officer etc. To do own family business Average 2.73 3.43 3.75 3.95 4.40 4.72 4.98 Significance order 1 2 3 4 5 6 7 Table 3: The reasons of students don‘t want to sustain accountancy job The reasons were asked to students who want to go on accountancy job in an institution or verbal, taken answers were showed at Table 4. Among the students who want to sustain accounting profession in or organization or governmental organization, while labor security is on the first roll with 1.97 points and having the most important significance, the scarcity of qualified personnel is on the least importance with 4.85 points. Reasons Labor security Insurance possibility Economic impossibilities as own job Standard working hours Family desire Necessity of qualified personnel Average 1.97 2.78 3.23 3.50 4.68 4.85 Significance order 1 2 3 4 5 6 Table 4: the reasons of people who want to sustain accountancy job in an organization or governmental organization The reasons for this preference were asked to the students who want to sustain their professions belong with an accountant or financial consultant. In the responses taken for this question, ―The fact that the risk of not finding customer‖ took place in the first row with 1.79 score where as the fact that the responsibility is low became third row with 2.24 points and the last row (Table 5). Reasons The fact that the risk of not finding costumer become low The idea of not to succeeding lonely Low responsibility Average 1.79 1.98 2.24 Significance order 1 2 3 Table 5: The reasons of those who want to study accounting along with a financial consultant The reasons of preference and obtained results about those who want to sustain accountancy with a financial consultant r are given in Table 6. The feeling of independent studying is in the first row and its score is 2.57 but the reason of family job to do the place in sixth raw with 4.96 point. Reasons The feeding of independent study The desire of improving himself Suitability to the skills More earning The profession with a good prestige Family job Average 2.57 2.62 3.45 3.62 3.83 4.96 Significance order 1 2 3 4 5 6 Table 6: The reasons of those who want to sustain accounting along with independent accountant 5 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo In order to determine the ideas of students about accounting, the questions about the job were asked and the answers men taken according to the fifth likert scale (1: don‘t agree on definitely, 2: don‘t agree on, 3: neither agree nor disagree, 4: agree on, 5: certainly I agree with). In the end of the assessment carried out, average scores and standard deviations are given in Table 7. Average value orienting to accounting professions of the students was realized as 3.19. The ideas orienting to accounting professions Mean ± SD The effect of high finding job possibility The effect of high earning expectancy The effect of individual work facility The effect of early start facility to work out Being an enjoyable profession Being a lovely profession Adequacy of acquiring of its foundation even if it seems difficult Being a credible profession in society Offering the opportunities which will prove the success Being a profession in accordance with individual structure Offering the opportunities making career facility Offering the opportunities employing in governmental organization Offering the opportunities employing in private sector Being an important profession which every sector needs The effect of feeling safety by yourself because of working facilities The effect of prejudices which was before learn accounting Leading to boring because of difficulty of accounting Existence of obstructions in front of accounting carrier The effect of chance which will have another profession The bad effect of low price in early times The effect of opportunity of working in the big city The effect of risk of independence study Having long probationary period The effect of round people who is accounting profession The effect of being not enough accounting personal in the market Rising of profession importance with the period of EU adapt The effect of being intense of working hours 3.37 ±1.14 3.47 ±1.08 3.72 ±1.10 3.17 ±1.13 2.95 ±1.25 3.13 ±1.23 3.45 ±1.13 3.32 ±1.08 3.14 ±1.15 2.93 ±1.25 3.19 ±1.19 3.59 ±1.03 3.60 ±1.04 3.81 ±1.13 3.30 ±1.12 3.20 ±1.26 2.99 ±1.30 3.34 ±1.24 2.83 ±1.29 2.80 ±1.23 2.98 ±1.27 3.08 ±1.16 2.77 ±1.26 3.18 ±1.13 2.88 ±1.16 3.27 ±1.11 2.84 ±1.20 Table 7: The descriptive findings of students‘ remarks towards accountant profession When differences between intends of continue accounting profession and students behaving interest in accounting profession were examined in the future, it has been differences between behavior of students who wants ( X =3.38) and no wants ( X =2.84) to continue this profession (f=122.68, p<0.001). When the effectiveness degree of the reason of the students who don‘t want to continue accounting job in the behaviors orienting to the profession was examined, the correlation between them can be followed from the Table 8 in which there are correlations. There was significant relation between the attitudes of students orienting to the profession and the students who studies to become officer or police and those who don‘t like the accounting job (respectively r=0.208, p<0.01 ve r=0.178, p<0.01). Similarly, there was significant relationship between the students who are university graduate (r=0.175, p<0.05) and the students who attend to vocational school and who want to make vertical transition to the university (r=0.136, p<0.05) in their behavior orienting to the professions (Table 8). 6 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo The reason of not to desire for carrying on accounting profession in future Not to enjoy profession of accounting To study for becoming university graduate To study for family desire To struggle with his/her own family To study for becoming a policemen or an officer To have a different job by making vertical transition Dissatisfaction of accounting r 0.208 ** 0.175 * 0.114 -0.067 0.178 ** 0.136 * -0.052 Table 8: the correlation between those who don‘t want to continue accounting job and behaviors of their orienting to the profession *: significant at p<0.05, **: significant at p<0.0.1 When the relationships between behaviors orienting to the profession and the reasons of those who don‘t want to continue along with a independent accountant was examined, it was found out that there was relationship with only family job and there was no meaningful relationship between other reasons. The reason of those who want to continue along with independent accountant and financial consultant The feeling of independent work The desire of improving himself Suitability to the skills More earning The job with prestige Family profession r -0,063 -0,094 0,077 -0,104 0,040 0,205 ** Table 9: the relations between behaviors orienting to the profession and those who want to continue along with independent accountant and financial consultant **: significant at p<0.0.1 According to the results, due to only family profession, there was significant relationship between financial consultant and working idea with financial consultant. According to this, the behaviors of orienting to the profession of the students who have relatives in their families or financial consultant or independent accountant have increased positively. So, they desire to continue the profession along with a independent accountant or financial consultant. Among other variables, there was not any relationship. There is no relationship between behaviors of theirs to the profession and other alternatives of the students. In the research, there was no relationship between student‘s behaviors and demographic features. In other words, all the students perform similar behaviors. According to the research conclusions, there is relationship between the preference of professional field and behaviors of profession. But, there is no correlation between demographic features and preference to profession and behaviors orienting to the profession. Results and Discussion In order to determine the relationships between the ideas about accounting profession and personal features of the students receiving accounting vocational training, the results obtained from the study carried out for the students of Pamukkale University Faculty of Economics and Administrative Sciences and Vocational College of Oltu department of accounting of Atatürk University and Niğde University Vocational College are as follows. Most of the students have wanted to continue their profession. 43.2 % of these expressed that they thought to work in an organization or enterprise. 40.3 % of these students are in the opinion of being independent accountant or financial consultant. The most important reason of the students who want to work in organizations originates from their loving professions. They accept as a tool being a graduate of university or advantage of the facilities. 7 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Based on these conclusions, these suggestions should be made: It is very striking that the students doesn‘t have positive behavior against accounting profession. Positive sides of the job should be expressed to the students who receive accounting training in all over the world. Some programs may be performed. When the behaviors of these who are on the duty of being accountant were taken into consideration, this is thought that they don‘t have enough knowledge about accounting in practical life. So carrying out stay program effectively and giving homework to the students diving application about sector or application may contribute to the profession positively if some assignments are given. References Crites, J.O. (1969). Vocational Psychology, Mc.Graw Hill Book Co. New York. DaĢtan, A. (2009). Karadeniz Teknik Üniversitesi Ġ.Ġ.B.F. Ölçeğinde Akademik Görünüm ve Muhasebe Eğitiminin Değerlendirilmesine Yönelik Bir AraĢtırma. Muhasebe Finansman Dergisi, (42), 144–156. Durer, S., ÇalıĢkan, A. Ö., AkbaĢ, H. E., & Gündoğdu, C. E. (2009). ĠĢletme Bölümü Öğrencilerinin Muhasebe Alanında Kariyer Tercihlerini Etkileyen Faktörlerin Ġncelenmesi. Muhasebe Finansman Dergisi, (43), 65–79. Gellat, H.M. (1962). Decision-Making A Conceptual Frame of Reference for Counseling. Journal of Counseling Psychology. Pp:10-21. Ginzberg, E. (1971). Career Guidance, Who needs it, who provides it, who can improve it?, Mc Graw Hill Book Company, New York. Holland, J.L. (1973). Making Vocational Choices: A Theory of Careers, Englewood Cliffs: Prentice Hall, Inc., New Jersey. Karcıoğlu, F. (1994). Endüstri Meslek Lisesi Öğrencilerinin Benlik ve Mesleki Benlik Kavramları Arasındaki BağdaĢımın KarĢılaĢtırılması (YayınlanmamıĢ Yüksek Lisans Tezi), Ankara Üniversitesi, Eğitim Bilimleri Fakültesi, Eğitim Bilimleri Enstitüsü, Ankara. Karcıoğlu, F. (2001). Kariyer Yönetimi, Karizma Yayınları, Ġstanbul. Katz, M.R. (1966). A Modal of Guidance for Career Decision-Making. Vocations Guidance Quarterly. Vol. 15, pp:2-10. Osipow, S.H. (1968). Theories of Career Development, NewYork. Özbirecikli, M., & Pastacıgil, A. (2009). Türkiye‘de Muhasebe Eğitimin GeliĢim Süreci: IFAC Standartları Ġle Mukayeseli Bir Ġnceleme, Muhasebe Finansman Dergisi, (41), 82–96. Özcan, Ġ., Ünal, G.F., & Helhel, Y. (2009). Muhasebe Programı Öğrencilerinin Cinsiyet ve Öğrenim Durumunun Muhasebe Mesleğine Yönelik Tutumları Ġle ĠliĢkilendirilmesi, Muhasebe ve Finansman Dergisi, (41), 170–181. Super, D.E., Starishhevsky, R. Matlin, N. Jordan J.P. (1963). Career Development: Self-Concept Theory, New York: College Entrance Examination Board. Tiedaman, D.V. & Ohara (1959). Decision and Vocational Development: A Paradigm and its implications, Vocational Guidance and Career Development, Selecting Readings, The Mc Millian Company, New York. Wylie, R. C. (1979). The Self Concept, Vol.II., Theory and Research on Selected Topics, University of Nebraska Press, Lincoln/ London. Zaccaria, J.S. (1969). Theories of Occupational Choice and Vocational Development. Houghton Mifflin Company, Boston. 8 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 128 Title A name given to the resource Relationships between the Accountancy Students’ Future Occupational Choices and Their Attitudes towards Accountancy Profession Author Author KARCIOĞLU, Reşat YAZARKAN, Hakan KARCIOĞLU, Fatih KAYA, M. Dursun Abstract A summary of the resource. In recent years researches about accountancy which is one of the most important professions in the world and in our country asserts the negative attitudes of the students about carrying on the profession. The study which is about the causes of negative attitudes and occupational scope choices of the students of accountancy, examines the relationships between the occupational scope choices of the students and their attitudes towards accountancy profession. According to the results of the research, any relationships between the students‘ demographic characteristics and choices and attitudes towards the profession are encountered. However some relationships have been encountered between the occupational scope choices and attitudes towards accountancy profession. Sundry suggestions are put forward in accordance with the results of the research. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed HB Economic Theory https://omeka.ibu.edu.ba/files/original/36cf481aa4c57d9a342dc71661bbf51a.pdf 84f3423fcc93b6449519b37810941662 PDF Text Text 2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo The Importance of Personel Selling on Tourism Management Sebahattin KARAMAN Asst.Prof., Balikesir University The School of Tourism and Hotel Management TURKEY skaraman@balikesir.edı.tr Abstract:In tourism enterprises the aim of sale enhancement efforts is to draw attention of potential tourist, to inform about tourism enterprises, to stimulate the request of purchasing and to achieve the sale of touristic product. In tourism, the efforts of sale enhancement are performed via promotion methods like personel selling, advetisement, presentation and public relations. Since the element of tourism is the human's sevice to the human, the obligation of consumption in the place of production and the necessity of face commucatıon makes personal selling important for tourısm enterprises. Every employee who has one -to one commucation with tourist also contributes to the marketing of touristic product. In this study, the importance of personal selling on tourism marketing is explained. Definition of marketing Marketing, generally, contains all the activities taken place in order to transport the produced goods to the aimed consumer. In developed countries, marketing activities play an important role in enterprise activities. Transporting the produced goods or service with the most suitable marketing activity is aimed. There are various definitions of marketing in the related literature, depending on the background of the definer. Below is presented some of them: ―Marketing, basically, is the exchange process that is intended for meeting people's needs and demands. One side from the two or more sides gives something to the other side, and in turn takes something else which is valuable, in order to meet their own needs.‖ (MUCUK, 1994) ―Marketing is the activity system that is intended for planning, promoting, and transporting in order to present the goods or services that are satisfactory for the demands of the present and potential consumers.‖ (STANTON, 1981) ―Marketing is performing the enterprise tasks that direct the producer to consumer or to user traffic of goods and services that are aimed to satisfy the consumers and to meet enterprise goals.‖ (McCARTHY, 1994) American Marketing Association defines marketing as: ―Marketing is the process of planning and applying the attempts of creating, pricing, transporting and promoting the goods, services and ideas, in order to provide the exchange relevant to the goals of people and organizations.‖ (MUCUK, 1994) According to the definition of Philip Kotler, marketing is, ―a set of activities for reaching the organizational goals, and intended to provide the exchanges in the aimed markets.‖ (KOTLER, 2003) ―Marketing can be expressed as an exchange that takes place between dealers and consumers. In this process, the aim of the marketing is transporting the goods and services to consumer that are suitable for the needs and demands of the consumer, in the proper time and place, with an appropriate price.‖ (ALTUNIġIK, 2010) The principle goal of marketing is to profit by satisfying the needs and demands of the aimed consumers and clients. Before starting to produce, enterprises must make marketing a function of producing by doing a Market research. Marketing continues after producing, before the sale, and after the sale. Also, it is important to consider social needs besides consumer and client needs. This is needed so as to complete the goals and missions of the enterprise in the long run. Thus, marketing is the planning, managing, and controlling task of the marketing components that would profit or benefit by satisfying the demands and needs of the producer, consumer and society. (Avcıkurt, 2010) Tourism Marketing Tourism is a rapidly improving sector. For this reason, it is also an important source of income for national economy. Tourism marketing is gradually developing owing to the increase in the competition in tourism sector, diversity and complexity of tourism markets, and increasing consciousness of consumers. Number of polite and 553 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo conscious people who got used to dine outside their houses is rapidly increasing, comparing to past. These people want to realize their holiday experiences, achieve new experiences, and thrive culturally. Present-day holidaymakers are more selective when selecting touristic enterprises. Appealing these people to enterprise is only possible by giving more qualified tourism services, and more tactful marketing applications. (RIZAOĞLU, 2004) There are many definitions about tourism marketing. The most extensive and accepted of all is the made by World Tourism Organization. According to this definition; ―Tourism marketing is a management philosophy that, in accordance with the aim of a tourism marketing or touristic station, aims to make research, estimation and selection about the product by considering the features of tourism demands in order that tourism product takes a good place in the market, and the decisions made about the subject matter.‖ (ĠÇÖZ, 1996) It's the overall task related to the transportation of the touristic goods directly or via tourism agents, in the local, regional, national, or international framework, from the producer to tourist, the last consumer, and creating the desire about the touristic consuming needs. According to this definition, tourism marketing is the efforts about the presentation and sale of the goods and services that would meet the tourists‘ needs. Touristic goods and services can be sold to tourists, directly by the producing touristic enterprises, or resellers, travelling agents, or tour operators. It is essential in tourism marketing to research and know what the tourists‘ new needs are. (HACIOĞLU, 2000) It can be said that, the reason that products presented in tourism industry has individual features can be related to both touristic supply and demand, and the fact that tourism industry is resultant of different sectors. In tourism industry, mostly, service is presented. Basic features of services can be listed as: (1) to be abstract, (2) inherence of production and consumption, (3) its change depending on the producer and consumer of the service, and its change depending on place and time, and (4) not to be able to stock up. (KOTLER, 2003) Touristic Product Touristic product is a whole that consists of the products and services that can meet the consumers‘ needs. From this aspect, touristic product can be only one product or service (such as suntan lotion, a plane seat), or a combination of product and service that can meet the needs many times (such as accommodation, food service), or a package that includes all (a tour that includes ticket sale, guidance service, transportation, accommodation, food service, entertainment). (OLALI & ALP, 1986) In definitions of touristic product, the key point was the touristic product's combined feature. The reason that touristic product has a combined feature is that there are many elements that consists it. These elements can be listed as: Natural, cultural, historical, artistic values and having of the country or the region that appeals tourists, Enterprises, hotels, motels, restaurants, entertainment and sports facilities, and travelling agents that serve to tourists, Travelling enterprises that would provide the opportunity for the tourists to reach their destinations, The combined structure of the touristic product, the elements it includes, the consumer audience that it aims, differentiates touristic product from other industry products. (HACIOĞLU,1996) That people are the subject of tourism, the obligation of consuming the touristic products where they are produced, and requirement for face-to-face relationship and behaviors, make individual selling an important fact for tourism businesses. It contributes the marketing of the product, and becomes a part of the touristic product by interacting one by one with the tourist and providing the service. In other words, employee who directly gets into touch with enterprise is also included in the individual selling tasks. Thereby, employees must know the enterprise really good. As well as knowing enterprise‘s aims and goals, its culture, features of the market in which they work, changes and innovations, and what is the aimed people of the enterprise, their appearance, speech, attitude and behaviors increases their efforts regarding individual selling. In tourism sector, in which human relations are the most intensive, the area the individual selling (alias individual selling) is most used is travelling agents. In travelling agents, where most of the tourism sector's sales are done, individual relations are gaining importance, as the competition increases. Marketing Touristic Product As the touristic product is a product with high and flexible demand, tourism companies must have an organization that would be able to apply their sale increasing efforts. The aim of the sale increasing efforts in tourism companies are by attracting attentions of the tourists informing them about company products, by creating tend and desire to products and motivate them and make tourists buy their products. Sale increasing efforts in 554 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo tourism are done by individual selling, advertising, presentation, human relations and sales development tools. (Hacıoglu,Avcıkurt, 2008) In tourism, individual relationships gain importance as the main factor in tourism is people, and as automation does not take too much place in tourism. Individual selling that is done via speeches and meetings, face to face with potential consumers, is the most effective sale increasing effort. In tourism companies, various sale increasing efforts are applied considering the policy of the company, features of the company, economical condition, competence environment, and the market in which it works, features of the tourists that it services. It‘s possible to show discounts that company applies to its clients under specific conditions or during specific times, gifts that are given to clients, outer services as examples for the sale increasing efforts. (ĠÇÖZ, 1996) Components Of Tourısm Marketıng REKLAM INDVIDUAL SALES PUBLIC RELATIONS Newspaper Personal communication with customers Relation with the press Journal Sales agents‘; News Radio Selection Institutional personality Television Training Announcement Post Payments regions Dialogues Outdoor Editorship Message Budget Shared ads SALES PROMOTION Coupons Sample products Exhibition-Fair Competitiıons Direct Lottery Sale Points Discounts Money Refund Source: ODABAġI, 1995 Chart 1. Tourism Marketing Components Individual Sale and its Importance Individual sale is an element of promotion mixing. When developing individual sale strategy, marketing mixing elements are taken into account. Individual sale must be evaluated one by one, according to goods, price, distribution as well as other mixing strategies. In the past, individual sale employees and sale managers didn‘t have quite a role in goods planning and developing decisions. Based on the developing marketing concept, when deciding goods‘ feature and benefit, sale employees‘ knowledge is given a consideration as they are close to the market. Individual sale is an effort aimed to selling, which is done by speaking, meeting, and concluding. For tourism companies, on the other hand, individual sale is an effort, spent by the sale employees, by meeting with potential customers to sell. Individual sale is a primary promoting technique for tourism companies. Marketing actions of touristic companies is mostly depended on the individual sale relationships. Because trip and tourism is an activity for people. In other words, trips and tourism require human relationships and behaviors that are performed face to face in all aspects. Touristic product can not be seperated from the person who sells, presents, or serves it. Thereby, the success of the tourism company depends mostly on individual sale. (Avcıkurt, 2010). Even though promoting techniques have their individual benefits and features, none of them can be replaced with individual sale. Also, the fact that tourism activity is an intensive effort required activity, it brings individual sale to the foreground. The fact that consumers have to go to the place where the service is presented, makes individual sale more important compared to the other elements of promoting techniques. (RIZAOĞLU, 2004) All marketing efforts are devoted by gathering together the sellers and buyer to provide buyers with knowledge about the products and to realize the sale. Even though buying process might seem to be easy, in fact it is a pretty complex process. Companies, in order to promote the product or/and services that they produced or present, they have to plan the promoting mixing elements systematically, and apply these plans, and check these applications. Individual selling is presenting the goods or services in such a short time, and is the effort done by meeting and speaking one by one in order to sell the product. 555 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Consumer must be convinced to pay for the product or service. And in order to be convinced, feeling of the customer who will try the product or service for the first time must change. Considering the fact that feelings about the products are hard things to change, sale employee facilitates the consumers‘ information gaining process, by providing customer-product knowledge. Thereby, s/he provides the environment for the feeling change. During the sale introduction, by asking questions and including the customer in the communication process, s/he provides the opportunity for the customer to clear the question marks in mind. Sale representative, as well as determining the demands and needs of the customer, has the possibility to state customer's interests and values. And then, it is easier for a customer whose attitudes and values are taken into account, and who receives a message according to his/her demands and needs, to be convinced. (OBERHAUS, 1993) Customer, first gives a look at the quality of the service, and by evaluating the criteria such as suitability(time, price, installments, sale point etc.), ease of use, ease of access, delivery speed, and effective distribution, decides whether the service is appropriate to pay for or not. For this reason, it is necessary to know that the customer wants and to reflect this knowledge to business action. In this respect, it is necessary that companies create a competency advantage by presenting customer values as a priority, as well as creating a difference. (YAMAMOTO, 2003) The key point about customer loyalty is satisfying the customer. A satisfied customer, keeps paying for a long time, as the company creates new services and improves the present ones, pays more, makes compliments about the company and its services, does not mind other companies and their services, and does not mind price, gives recommendations to the company about new services. As the process cost falls into a groove, serving the present customers is much easier than finding new customers. (KOTLER, 2003) As it is clear in the statements above, individual selling is vitally important for providing consumers‘ permanency, and making chain-sells. Another important fact here is the sale employee who will realize the sale. Aims of the sale employee are briefly: -Contributing the image of the company and brand -Increasing consumers dependence to both brand and their choice -Providing the opportunity for the product and brand to be distinguished -Providing the opportunity to reach more and exclusive customers -Realizing sale by convincing the customer and maintain it. -Providing customer satisfaction and increasing it -Providing the appropriate service for the customer -Increasing the frequency and quantity of sale. Earning more to the company. -Increasing the knowledge about the products and services -Creating a conscious customer audience -Supporting postsale services. When realizing the aims of the company and promoting activities, individual selling aims we mentioned are devoted to increase the sales volume. In this respect, aims such as conserving market share and trying to enlarge it, catching the sales value that can increase the profit, earning new customers with certain specifications, detecting individual sale expenses must be regarded. Advantages and Disadvantages of Individual Sale Advantages Individual sale has some aspects that are superior to other mixing elements. The superior aspects can be summarized as: (KOZAK, 2006) 4.1.1. Can directly communicate with customers. 4.1.2. Can keep customers' attentions up 4.1.3. As it counts on face to face communication, provides the opportunity to observe the reactions right away. 4.1.4. Mutual communication is possible. 4.1.5. Can reveal customer's individual needs 4.1.6. Can focus on the subjects that customers are sensitive about 4.1.7. Can have friendship with their customers. Disadvantages  Its scope is limited. In certain time, few customers can be contacted. 556 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo  It's costly. For customers who are untidy geographically, it is costly to contact each customer.  It's long-term. It's not short-term, long and constant. Specifically, requires an application whose selling power is planned. Individual Selling's Leading Customers to Buy There are two sides in individual selling: Seller and buyer (customer). Firstly, for a successful sale, a good sale teams required. For this reason, we will investigate the features that a sale employee must have. In the other phase, behavior of the customer or client who is on the other side of the marketing will be investigated. For a successful sale, we need to know the customer well, and plan the sale process according to this fact. As our subject is individual sale and marketing in travelling agents, touristic customer behavior will be stressed. Qualifications of Sale Employee In individual sale, face to face communication is the subject matter. Hence, sale employees play a vital role for individual sale. Nowadays, companies that are aware of the importance of human relations must pay attention to selecting suitable employee for creating their sale power. The sale employees selected haphazardly without training about profession flat out and prevent company from having a competence advantage. Travelling agents, like other companies, must pay attention to some specifications in sale employees who will work in marketing and sale department. Individual sale skill is important. But promotion and advertising, is not enough to succeed. These are rather useful for attracting attention. At this point, sale employee takes to the stage and follows through. For this reason, intelligence, experience, education and some human psychology is required for travel consultant. A talented employee is able to turn a little curiosity to a deal, to create other little tours other than main trip (cross selling), to save hesitant investments. A weak sale employee, on the other hand, is like a drug for all companies. After the improvement of service, advertisement, and all other works, careless, rude, or inadequate presentation might easily cause customer to go back. (REILLY, 1987) Individual sale team travels very often to find potential clients and keep present clients. While working, they spend too much time and effort. And this increases the expense of the activities. But, marketer, as s/he communicates with the client face to face, can instantly evaluate the reactions and interests about the product. And thereby, can instantly answer customers‘ questions and replies to their objections and can follow through. Touristic Consumer When marketing any product or service, the first thing to take into consideration is the fact that not everyone is the buyer we are looking for. The first thing we try to do is, on the other hand, detecting people who can possibly our clients. Later on, getting to know potential clients in detail, and developing strategies according to these details. every consumer is not same. Everybody has different feature. As well as they can be financial, cultural, interests, age, health condition they can also be personal features. Touristic consumers form the focus of the tourism marketing activities. People who buy or have a tendency to buy all the tourism goods which are produced in tourism companies and tourism regions; on the other hand people who join the tourism activities are called touristic consumers. In tourism market sale it is quite important to be a good listener as well as an effective speech. A good sale employee must listen to the customer carefully. Too much speaking sometimes affects person or people in a negative way. That everybody has a different view must be taken into consideration. To control its truth, the comments of person who is speaking must be repeated in the process of speaking. Repeating what he or she says in a simple way shows that speaking is paid attention, understood, and given importance to the person. In tourism market, asking many questions to customers their needs are detected and must be presented alternative products. Conclusion It is very important for all companies that produce goods or services, to increase income through selling. A business that can‘t increase its income can‘t obtain its persistence because the primary goal of business is to get some income by selling goods or kinds of service. Today, in which we face and increase in competition and in service sector which doesn‘t have opportunity to stockpile, selling and marketing activities gain importance. For selling to 557 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo occur, businesses need a valuable marketing path. It‘s very hard to reach expected market ratio for a business which doesn‘t give any importance to marketing path for selling, no matter how king goods or service it produces. Personnel that is responsible for selling is also very important for marketing and selling policies to function correctly. Selling personnel is required to have necessary information and abilities. Especially in tourism sector, in which there is an abstract service and goods that cannot be checked beforehand, quality of personnel gains more importance. In struggles for tourism sector to market and have a persistence one of the most important factor is individual selling. Individual selling contribute to process of a customer‘s decision by one by one and personal communication. In tourism business every personnel that faces customers is like a selling staff. They can sell all the products outside their department or can inform customers about those products. So, they can contribute to selling success. Individual selling process is a complex process which begins with potential consumer‘s buying a product, and after selling, analyzing the consumer‘s satisfaction level. Thereby, a good and well-informed selling personnel gains customer loyalty for latter periods. References Altunısık, Remzi, Turizm Ġsletmelerinde Pazarlamanın Temelleri ve Ġki Farklı Pencereden Pazarlama Yöntemi : Üretici ve Tüketici Bakıs Acısı, (edit Cevdet Avcıkurt,Demirkol S.,Zengin B.), Turizm ĠĢletmelerinin Pazarlanmasında 7P ve 7C. Degısim Yayınları, Istanbul. ARIKAN, Rauf ve ODABAġI Yavuz, (1996), Tüketici DavranıĢları ve Tüketici Bilinci, EskiĢehir, Anadolu Üniversitesi Yayınları. Avcıkurt , Cevdet, (2010), Turizmde Tanıtma ve SatıĢ GeliĢtirme,DğiĢim Yayınları,Ġstanbul. Avcıkurt, Cevdet,Demirkol S.,Zengin B.(2009), Turizm ĠĢletmelerinin Pazarlanmasında 7P ve 7C. Degısim Yayınları, Istanbul. BUELL, Victor. P.(1966), Marketing Management, London, Pan Books L.T.D. FUTRELL, Charles M. ,(1996), Fundamentals Of Selling: Customer For Life, Chicago HACIOGLU, Necdet, (2000), Turizm Pazarlaması, Bursa, Uludağ Üniversitesi Basımevi HACIOGLU,Necdet,Cevdet Avcıkurt, Turistik Ürün ÇeĢitlendirmesi, Nobel Yayın Dagıtım,Ankara HACIOĞLU, Necdet, (2006), Seyahat Acenteciliği ve Tur Operatörlüğü, , Bursa, Uludağ Üniversitesi Basımevi ĠÇÖZ, Orhan, (1996), Turizm ĠĢletmelerinde Pazarlama, Ankara, Anatolia Yayıncılık ĠÇÖZ, Orhan, (2003), Seyahat Acenteleri ve Tur Operatörlüğü Yönetimi, Ankara, Turhan Kitabevi KOTLER, Philip, (2003), Marketing Management, New Jersey, Prentice Hall Publications KOZAK, Nazmi, (2006), Turizm Pazarlaması, Ankara, Detay Yayıncılık McCARTHY, E. Jerome, (1994), Basic Marketing, A Managerial Approach Ġllinois: Irwin,Inc. MUCUK, Ġsmet, Pazarlama Ġlkeleri, Ġstanbul, Der yayıncılık OBERHAUS,Mary A., (1993), Professional Selling, A Relationship Process, Newyork, Dryden Press ODABAġI, Yavuz ve OYMAN, Mine, (2001), Pazarlama ĠletiĢimi Yönetimi, , Ġstanbul, MediaCat OLALI, Hasan, ALP, T, (1986), Turizm, Türk Ekonomisindeki Yeri, Ġzmir, Ofis Ticaret Matbaacılık REILLY, Robert T. , (1987), Seyahat ve Turizm Pazarlama Teknikleri, Ankara, Kültür ve Turizm Bakanlığı Yayınları RIZAOĞLU, Bahattin, (2004), Turizm Pazarlaması, Ankara, Detay Yayıncılık 558 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo YAMAMOTO, Gonca Telli, (2003), BütünleĢik Pazarlama, Ġstanbul YÜKSELEN, Cemal, (2003), Pazarlama: Ġlkeler-Yönetim, Ankara, Detay Yayıncılık 559 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 274 Title A name given to the resource The Importance of Personel Selling on Tourism Management Author Author KARAMAN, Sebahattin Abstract A summary of the resource. In tourism enterprises the aim of sale enhancement efforts is to draw attention of potential tourist, to inform about tourism enterprises, to stimulate the request of purchasing and to achieve the sale of touristic product. In tourism, the efforts of sale enhancement are performed via promotion methods like personel selling, advetisement, presentation and public relations. Since the element of tourism is the human's sevice to the human, the obligation of consumption in the place of production and the necessity of face commucatıon makes personal selling important for tourısm enterprises. Every employee who has one -to one commucation with tourist also contributes to the marketing of touristic product. In this study, the importance of personal selling on tourism marketing is explained. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed HB Economic Theory