Companies In Lithuania Research Articles

The economic situation of farms located in less favoured areas on the example of Lithuania and Poland

The paper analyses economic characteristics of the farms, situated in the less favored areas of Lithuania and Poland. A comparative analysis of farms located in less-favored areas in Lithuania and Poland was conducted in terms of their income diversification and economic situation. In addition, a short description of the compensation payments, their types and rates, was provided in both countries. Using the panel models and correlation analyzes, we identified the most important determinants of agricultural income. The gross agricultural income per hectare of UR was estimated as variable. It was hypothesized that the location of farms in LFA areas determined the income of their owners in a statistically significant way. The impact of compensatory payments on the economic situation of the surveyed companies in Lithuania and Poland was also shown.

THE ECONOMIC SITUATION OF FARMS LOCATED IN LESS FAVOURED AREAS ON THE EXAMPLE OF LITHUANIA AND POLAND

The paper analyses economic characteristics of the farms, situated in the less favored areas of Lithuania and Poland. A comparative analysis of farms located in less-favored areas in Lithuania and Poland was conducted in terms of their income diversification and economic situation. In addition, a short description of the compensation payments, their types and rates, was provided in both countries. Using the panel models and correlation analyzes, we identified the most important determinants of agricultural income. The gross agricultural income per hectare of UR was estimated as variable. It was hypothesized that the location of farms in LFA areas determined the income of their owners in a statistically significant way. The impact of compensatory payments on the economic situation of the surveyed companies in Lithuania and Poland was also shown.

An Analysis on Turkish Market Entry Opportunities: the Case of Lithuanian Dairy Companies

In the present research, authors examine Turkish market entry opportunities for three leading dairy companies in Lithuania. This study focuses on evaluating firms’ export performance opportunities and combining them with selected export market potential factors. For this purpose, the case-study method was used through personal interviews with export managers of three leading Lithuanian dairy companies in 2016, conducted in order to determine the factors affecting their Turkish market entry. Using a cross-case analysis, comparisons were made between different companies’ entry opportunities. According to the results, Lithuanian dairy companies can be described as being passive about the Turkish market. Its market protection politics, implemented by the Turkish government, could be named among the main reasons. From the first sight, this fact makes the Turkish market unattractive for European dairy producers. However, the study shows that, after doing some more detailed market research, new potential opportunities can appear.

Organizational attractiveness: an empirical study on employees attitudes in lithuanian business sector

Measurement of employer’s attractiveness has been given much attention in many countries all over the world, but there was no extensive research performed in Lithuania so far, providing empirical evidence to define the landscape of organizational attractiveness in Lithuanian business sector. The aim of this study (N = 1020 respondents) is to identify which dimensions make organizations attractive as employers in Lithuanian business sector. The article employs a research approach based on a postpositivistic perspective. The relevant literature on organizational attractiveness is critically reviewed, analyzed, compared and generalized. Addressing research aim, a scale to measure organizational attractiveness as an employer was developed and administered in Lithuanian business sector in such a manner. Existing methodologies measuring organizational attractiveness were analyzed composing a list of 67 dimensions. Using content validity, scale comprising 30 dimensions was developed to measure organizational attractiveness of companies in Lithuanian business sector. A telephone interview survey method for data collection was used. Descriptive statistics (means, standard deviations, and frequencies) is used to analyze the data of the survey. 30 dimensions of organizational attractiveness were rank-ordered according to their means in descending order from most important to least important drivers of employer’s attractiveness. Specifically, the results suggested that good working atmosphere, adequate salary and interesting job are key to the attractiveness as an employer of business companies in Lithuania as perceived by their employees. The article also discusses the implications of the findings.

Bankruptcy Prediction Model for Private Limited Companies of Lithuania

The paper is mainly devoted to the bankruptcy prediction models and their ability to assess a bankruptcy probability for Lithuanian companies. The study showed that the most common type of companies in Lithuania is a private limited company, therefore, the main objective was to analyse such companies’ financial information and by using these results, create a new bankruptcy prediction model, which would allow to predict the bankruptcy probability as accurately as possible. 145 companies (73 already bankrupt and 72 still operating) were chosen as a primary sample and by using multivariate discriminant analysis stepwise method a linear function ZGS has been created. To achieve that, 156 different financial ratios were selected as a primary input data by using correlation calculation between bankruptcy and still operating companies and Mann – Whitney U test techniques. The results showed that 89% of companies were classified correctly, which states that the model is strong enough to predict bankruptcy probability for private limited companies operating in Lithuania in a sufficient accuracy.

INFLUENCE OF RULES FOR COMPUTING CORPORATE INCOME TAX ON THE ACCURACY OF FINANCIAL STATEMENTS OF LITHUANIAN COMPANIES

Companies in Lithuania have to follow Business Accounting Standards (BAS) when preparing their financial statements. Recording financial transactions according to BAS ensures that the information a company shares with potential lenders and investors gives a true and fair view of its business situation. However, the tax law prescribes its own set of accounting rules, which can result in a difference between what a business shows in financial statements and what it reports on its tax returns. This paper examines whether Lithuanian companies predominantly use tax accounting principles that migrate into their financial statements to create an inaccurate picture of business performance. The method of experts’ evaluation was chosen for that purpose. The results indicate that Lithuanian companies tend to heavily rely on accounting principles prescribed in corporate income tax law thus distorting information contained in financial statements. The paper contributes to the scarce literature on this issue of high relevance to both academics and practitioners.

Vadovų koučingo poreikis Lietuvos inovatyviose ir neinovatyviose įmonėse

Tyrimo problema – koks yra vadovų koučingo poreikis inovatyviose ir neinovatyviose įmonėse pagal vadovų veiklas? Tyrimo tikslas – nustatyti vadovų koučingo poreikį Lietuvos inovatyviose ir neinovatyviose įmonėse pagal vadovų veiklas. Tyrimo objektas – 20 įmonių: 10 inovatyvių ir 10 neinovatyvių. Tyrimo metodai: įmonių vadovų / personalo vadovų vertinimai ir lyginamoji inovatyvių ir neinovatyvių įmonių analizė. Koučingo poreikis įmonėse nustatytas pagal tokias vadovų veiklas (elgsenas): profesinis tobulėjimas, veiklos atlikimo tobulinimas, įvertinimas, diagnozė ir planavimas, individualus pokalbis ir vertinimo pateikimas, rūpinimasis darbuotojo interesais, klausymasis ir atitinkamas reagavimas į darbuotojo veiksmus / žodžius, darbuotojo tobulėjimo raidos stebėjimas ir įgyvendinimas. Tyrimo metu nustatytas didžiausias vadovų koučingo poreikis pagal veiklas (elgsenas) inovatyviose įmonėse – klausymuisi ir atitinkamam reagavimui į darbuotojo veiksmus / žodžius, neinovatyviose įmonėse – rūpinimasis darbuotojo interesais. Pagal visas tirtas vadovų praktinės veiklos (elgsenos) sritis, vadovų koučingo poreikis yra didesnis mažesnio inovatyvumo įmonėse.

Influence of Rules for Computing Corporate Income Tax on the Accuracy of Financial Statements of Lithuanian Companies

Companies in Lithuania have to follow Business Accounting Standards (BAS) when preparing their financial statements. Recording financial transactions according to BAS ensures that the information a company shares with potential lenders and investors gives a true and fair view of its business situation. However, the tax law prescribes its own set of accounting rules, which can result in a difference between what a business shows in financial statements and what it reports on its tax returns. This paper examines whether Lithuanian companies predominantly use tax accounting principles that migrate into their financial statements to create an inaccurate picture of business performance. The method of experts’ evaluation was chosen for that purpose. The results indicate that Lithuanian companies tend to heavily rely on accounting principles prescribed in corporate income tax law thus distorting information contained in financial statements. The paper contributes to the scarce literature on this issue of high relevance to both academics and practitioners.

Implications for Mitigating Human Resource and Labor Market Restriction in Low-Tech Sector

The paper aims to explore the main restrictions of human resource (HR) and labor market specifically in Lithuanian low-tech sector and to provide implications for mitigating them in order to improve the competitiveness of this sector.In order to reveal the analyzed problem in depth the expert evaluation method has been chosen. The experts in this research cover professionals from the prominent low-tech companies in Lithuania, mainly top team members. The main findings suggest that the core restrictions for low-tech competitiveness in Lithuania include the lack of highly skilled managers, labor quality and qualifications, and such labor market related boundaries like strict labor laws and low labor market flexibility. According to experts opinion the great effort from Government's side should address the improvement improving labor market regulations in terms of simplification of them and increasing labor market flexibility.

Quality of Corporate Social Responsibility Information

According to the analysis of literature of accounting, the companies use CSR reports in order to identify and to validate their socially responsible activities, to fulfil their responsibility to stakeholders, to manage public impressions and to improve their image and reputation. To achieve these objectives, companies must disclose quality information, which includes important features of the report such as relevance, reliability, comparability. The purpose is to analyze the concept of quality of social information and to examine the quality of the information given by the socially responsible corporates. Particularly, this article systematizes the research, which examines the quality of social information. Following, there is a content analysis and quality index of social information of socially responsible companies in Lithuania. Study has showed that the quality index of joint stock companies is higher, which belong to those sectors which have a significant impact on the environment, i.e., manufacturing, energy and telecommunications.

Consumer Engagement in Value Co-Creation: what Kind of Value it creates for Company?

Introduction of the concept value co-creation (Prahalad and Ramaswamy, 2000) called for a new wave of research, emphasizing the need for creation, development and consolidation of mutually beneficial relationships between the consumer and the company. This in turn raised the interest in consumer engagement, which was described as a psychological state that occurs by virtue of interactive customer experiences with a company or a brand (Brodie at al., 2011). Recent research in marketing highlights the importance of the role of consumer engagement into value co-creation, providing a considerable number of studies, exploring the drivers, types, dimensions of consumer engagement as well as its outcomes, as expressed by consumer perceived value, loyalty, etc. However, as yet there is a lack of understanding how consumer engagement contributes to value co-creation and what benefits it brings to the company as well as to consumer. Therefore, the purpose of this article is to explore the role of consumer engagement in value co-creation from the company’s perspective, identifying the value company gets as an outcome of co-creation process. The focus on the value for company in this article is explained by the fact that it is traditionally analysed mainly through economic perspective, meanwhile consumer perceived value is agreed being multidimensional. The authors of this article suggest that value for company, as generated through co-creation process, should also be viewed as multidimensional and propose three-dimensional structure: economic, social and functional value. The study contributes to the domain of consumer engagement and value co-creation research by revealing the techniques of consumer engagement, with an emphasis on gamification as one of them, and diverse benefits the co-creation processes bring to company through the analysis of focus group discussion with representatives of companies in Lithuania that engage consumers in value co-creation.DOI: http://dx.doi.org/10.5755/j01.ee.26.4.12502

DISCLOSURE ON INTELLECTUAL CAPITAL IN ANNUAL REPORTS OF NASDAQ OMX BALTIC-LISTED COMPANIES

According to the current accounting standards, only a minor part of intellectual capital is presented in financial statements. Nevertheless, more and more companies in Lithuania and abroad reveal information about their intellectual capital in their annual statements. Therefore, the object of this paper is the disclosure of information on intellectual capital, and the aim is to reveal the trends of disclosure of information on intellectual capital based on annual reports by Nasdaq OMX Baltic-listed companies in the years 2010 to 2012. The main method applied in the present article is content analysis. Results. On the grounds of the described research methodology, the content analysis of annual reports dated from 2010 to 2012 by Nasdaq OMX Baltic-listed companies was performed. By applying the “QDA Miner” software, intellectual capital-related terms were calculated and distributed into three categories (human, relational, and organizational) in terms of the assets and liabilities. The obtained results of the three countries were compared in order to reveal the trends of development; furthermore, a correlation analysis was conducted to reveal the relationship between the market capitalization of a specific country and the level of disclosure on the intellectual capital of enterprises. Conclusions. The present research reveals that the total disclosed information on the intellectual capital of the Nasdaq OMX Baltic-listed companies was increasing each year from 2010 to 2012. On the other hand, the research shows that the trends and the structure of the disclosed information on the intellectual capital are different in each Baltic country. The highest amount of information was revealed by Lithuanian enterprises and the lowest amount is shared by Estonian enterprises. The best-covered information on the intellectual capital presents the employees as an asset while the most scantily revealed information describes intellectual liabilities.

Analysis and evaluation of Lithuanian public interest companies audit market

The article investigates audit companies‘ specialization among the public interest companies of Lithuania. Prior literature explores various advantages of industry auditors – auditors who specialize in particular industries while enhancing the main part of clients in the industry branch. Industry auditors reach higher level of audit quality, while making more effective planning decisions, assessing more effectively client‘s business risk, as well as the risk of material misstatement, complying at highest rate with auditing standards.
 154 public interests companies of Lithuania were analysed in order to assess whether the is a trend of auditors‘ specialization in a market of public interest companies in Lithuania. Results of the research imply auditors tending to specialize themselves in mainly all branches of industries, reaching highest rate of clients in particular industry of pension funds, investment funds and credit institutions. The results also disclose some evidence of industry auditors keeping their audit prices at higher level than their competitors, as well as their reputation being quite stable reaching more adds than losses. Issues concerning industry expertise auditors‘ quality significantly affects auditors‘ reputation. The results of the research taken support conclusions of vast body of prior researches on auditors‘ specialization implying that particular industry auditors may achieve and enhance higher level of audit quality.

The relationship between organisational foresight and organisational ambidexterity

The relationship between organisational foresight and organisational ambidexterity is the focal point of this paper. Foresight is believed to be having a positive impact on triggering organisational ambidexterity, especially explorative (radical) innovation. Very little empirical research has been done so far to test the probability of this theory with higher constraint designs. This paper reports on the results of a survey involving 230 manufacturing companies in Lithuania. It confirms the importance of organisational foresight, recognising its contribution to both explorative and exploitative innovations, i.e. organisational ambidexterity. Based on a conceptual model that describes organisational foresight as a set of environmental scanning, strategic selection and integrating capabilities, this paper proposes testable measures of organisational foresight. We empirically test the model and provide evidence to the theoretical relationship between organisational foresight and organisational ambidexterity.

Lietuvos verslo įmonių aukščiausio lygio vadovų komandų pajėgumo tyrimas

The interest in Corporate Social Responsibility (CSR) is increasing. Political, civil, academic and business communities pay more and more attention to corporate social responsibility reporting. The CEOs recognize that the success depends not only on business, but also on the welfare of business environment. Communication with the society is the most important factor implementing the activities of CSR. Thus, CSR performs an essential role in implementing the principles of corporate social responsibility. CSR reporting is increasingly becoming the subject of the research in the scientific literature by researchers of developed countries. The major achievements in analyzing, exploring the reports of CSR and possibilities of their application belong to the scientists of the United Kingdom. The object of the research is the reports of CSR. The aim of the article is to evaluate the benefits of CSR reports as the way of communication with stakeholders. Methods used: literature analysis and synthesis, systematization, content analysis. According to literature analysis, the main target of CSR reports is communication with stakeholders about the company’s results of CSR activities and future plans. The company’s capability to create value by identifying and satisfying the expectations of stakeholders becomes the base of success in marketing. One of these expectations is the expectation to get the information about the social and environmental activities of the company. The business can get the largest benefit from CSR report, when it is integrated in the strategy of the company. According to literature analysis, the main criterions of CSR report are content and structure, form, way of presentation, visualization and standards that guarantee the impartiality of information. In Lithuania the number of companies that are reporting on corporate social responsibility is growing. Corporate social responsibility reporting has become the de facto law for big international companies. The practice of these companies is an example how to report on social responsibility and how to apply it in marketing successfully. However, the situation of the social responsibility reporting in marketing in Lithuania is bad. A large vicissitude of companies that are reporting on CSR indicates that companies in Lithuania do not have a straight strategy of CSR and reporting on it. The companies seek to disclose the information about the initiatives of social responsibility but they pay not enough attention to the quality of reporting. The companies in Lithuania do not understand that the “cosmetic” reporting cannot create value in business.

The Initiatives of Corporate Social Responsibility as Sources of Innovations

The authors of the article analyze the importance of innovation in gaining competitiveness of company. The innova-tion in business is understood as a broad, continuous, systematic activity that takes place throughout the company. Different types of innovation open new possibilities for companies and contribute to the attainment of competitiveness of companies. By emphasize the importance of creating different types of innovation the article treats of socially responsible initiatives as sources of innovations. The paper deals with the development of socially responsible innovations in Lithuanian companies. Companies in Lithuania innovate in socially responsible way, but for more streamlined development of socially responsible innovations require the better advertence and competence of business representatives. Researched the socially responsible initiatives as sources of different types of innovation, the authors found that an active development of socially responsible initiatives positively influences the creating of business innovations and increases competitiveness of company in the global economy.

The Evaluation of Innovation in the IT Service Sector: Methodological and Empirical Aspects

Purpose — Nowadays services are comprehended as the key factor for economic activity, growth and employment. Developed economies are service-dominated though little is known about the innovation details in the service sector and this study field has been neglected for a while. The innovation in service sector activities needs to be thoroughly evaluated because innovation is an interconnected process and cannot be defined using one or few indicators. IT services are an integral part of contemporary life, particularly for business. It can be introduced and implemented in all fields, especially when the world is becoming more multidimensional. Innovation performance in the IT sector has been under-researched, despite the fact that IT service sector plays the innovation disseminator role in other sectors by appliance of IT products. Design/methodology/approach — Based on scientific literature and methodological aspects analyses, an empirical research methodology was designed and the qualitative research on innovation in information technology service sector was accomplished. Findings — The article presents methodological aspects of innovation evaluation in service sector and empirical aspects on innovation implementation and development in the IT service companies in Lithuania. Research limitations/implications — For more comprehensive understanding of innovation in service sector, especially in IT services, the theory of service innovation is necessary. Deeper understanding and perspectives on how innovation benefits the information technology sector should be revealed in further researches and the multi-country analysis is needed. Practical implications — The finding of the paper can be used to improve the development of innovation in information technology service companies and create a model for more exhaustive multi-country empirical researches. Originality/value — The impact of innovation and its development in information technology service sector has not been analyzed thoroughly in previous researches. Article Type — research paper.

MARKETING CORPORATE SOCIAL RESPONSIBILITY IN ALCOHOL INDUSTRY

Although there is an increasing interest of companies in Lithuania in CSR, its principles are not widely applied in practice. The amount of research of CSR has increased significantly in Lithuania recently; however, the studies demonstrating the role of CSR in marketing are still at an initial stage. This is especially true of CSR in alcohol industry.The potential partners for the beverage alcohol industry are not much different from those for other industries and include governments, the intergovernmental organizations such as the United Nations, nongovernmental voluntary and advocacy organizations, and the public health and research communities. More and more companies are using CSR to transform their corporate identity to include a great amount of responsibility. This also holds true for the alcohol industry. DOI: http://dx.doi.org/10.5755/j01.em.17.1.2286

THE INFLUENCE OF STAKEHOLDER-COMPANY RELATIONSHIP ON COMPETITIVENESS OF COMPANY

The authors of the article analyze stakeholder-company relationship as factor enhancing competitiveness of companies. The building stakeholder-company relationship is described as a strategic business investment, opens new possibilities for companies and contributes to the attainment of competitiveness of companies. By emphasize the importance of stakeholder-company relationship the article treats of socially responsible policies, which implementation determines the building long-term stakeholders’ trust as a basis for strong and enduring stakeholder-company relationship. The paper deals with the development of strategic policies of socially responsible Lithuanian companies. Companies in Lithuania in their relations with the stakeholders focus on realizing policies of transparent business, anti-discrimination and anti-corruption. Researched the impact of stakeholder-company relationship on enhancing competitiveness of company, the authors found that an active development of socially responsible policies positively influences business relationships with stakeholder groups and increases competitiveness of company in the global market.DOI: http://dx.doi.org/10.5755/j01.em.17.3.2111

The Reform of Electricity Companies in Lithuania

The object of the article is the reorganization and restructuring of Lithuanian electricity monopolies. The authors aimed to analyze whether the restructuring and changes in ownership of energy monopolies in Lithuania contributed to the creation of competitive electricity market The analysis was not restricted to the procedures of companies' reorganization, it integrated the national energy strategy, legal regulation of electricity sector, actual changes in the ownership of Lithuanian energy companies and subsequent decisions of the courts. This article is the first attempt to systematically analyze the history of the reorganization of Lithuanian electricity companies. The reform of electricity monopolies in Lithuania could be categorized from different perspectives, but there are commonly discussed issues, characterized as: (i) corporatization; (ii) legal separation of heat sector activities from electricity sector activities; and (iii) unbundling of electricity activities; (iv) privatization; (v) establishment of new companies for the implementation of the specific goals of electricity sector. Three main goals of Lithuanian electricity sector reform are identified: (i) the connection of Lithuania's high tension electricity networks with Poland and Sweden; (ii) integration into the electricity market of the Western Europe and the Nordic countries; (iii) construction of a new regional nuclear power plant. The legislative reform of energy sector can be divided into three stages: (i) the adoption of national legal norms after the declaration of independence; (ii) the harmonization of national law with the European Union legal acts and (iii) the creation of preconditions to construct a new nuclear power plant and to integrate Lithuanian electricity market into the Western European and Nordic countries electricity markets. The research showed that the restructuring and changes in ownership of energy companies still have not enhanced the competition in Lithuanian electricity market. Electricity policy goals - to ensure the strategic reliability of electricity supply and integrate Lithuania into the European Union market - have not been accomplished yet. The major supplier of electricity remains Russia and the electricity power system is still not connected to Western Europe and Nordic countries. However, the companies carrying out the interconnection projects, managing Electricity power exchange and coordinating the construction of a new nuclear power plant are established. These changes give rise to thinking, that Lithuania is on the way to liberalization of electricity market. http://dx.doi.org/10.5755/j01.ee.22.4.713