Firms In Turkey Research Articles

Using the fuzzy multicriteria decision making approach to evaluate brand equity: a study of privatized firms

PurposeThe purpose of this paper is to present a multidimensional evaluation of brand equity performance incorporating dimensions adopted from the balance scorecard (BSC) approach to business performance.Design/methodology/approachIn this study, text mining is used for automatic extraction of valuable information from textual data such as the financial reports of firms. Instead of expert opinions, linguistic scales built upon outcomes of text mining are used as inputs for decision-making. The proposed model combines fuzzy DEMATEL (FDEMATEL), fuzzy ANP (FANP), fuzzy TOPSIS (FTOPSIS) and fuzzy VIKOR (FVIKOR) methods for weighting criteria and ranking alternatives.FindingsUsing data from five privatized firms in Turkey, the study’s findings demonstrate that the customer is the most important dimension of brand equity performance evaluation. Cash flow and brand loyalty are identified as the most important criteria in the measurement of brand equity performance.Practical implicationsFindings highlight the importance of firms taking action to increase consumer perceptions, attitudes and behaviors in the privatization processes. For this purpose, privatized firms need to understand the expectations of customers to increase customer satisfaction and loyalty and therefore improve brand equity.Originality/valueThe paper contributes to literature in several important ways. First, by adopting the BSC approach, it proposes a holistic and a multidimensional model for measuring brand equity performance. Second, the study offers a novel methodology using a hybrid multi-criteria decision-making model designed for the fuzzy environment. Third, the study uses the knowledge extraction tool of text mining in the fuzzy decision-making process. Finally, the study evaluates the brand equity performance of privatized firms in an emerging country context.

Exports, real exchange rates and dollarization: empirical evidence from Turkish manufacturing firms

We attempt to uncover the relationship between the real exchange rates and exports shares of manufacturing firms in Turkey by taking into account FX exposures and various firm characteristics. We use a large panel of manufacturing firms to carry out an empirical analysis for the period 2002–2010. Contrary to macro-evidence, firm-level empirical evidence suggests that a depreciation of the Turkish lira seems to favor the external competitiveness of firms in general. We document that a real depreciation of the Turkish lira has a positive impact on export shares and its impact is muted to some extent for firms operating in sectors that use imported inputs intensively. In addition, we estimate that export shares increase as a result of real depreciation for firms having low (naturally hedged) and moderate FX debt-to-export ratios. We do not confirm a strong balance sheet channel where a depreciation of the currency may harm firms’ export performance due to currency mismatch. On the contrary, FX borrowing is estimated to support export performance probably due to undermining finance constraints.

Concluding Gibrat’s law with Turkish firm data

In this study, the validity of the Gibrat’s Law, i.e. the Law of the Proportionate Effect, is tested using a balanced panel of nearly one million firms in Turkey between 2005–2016. A random parameters model is considered to make use of the heterogeneity of individual firms. Unlike the somehow weak results of the rejecting studies from the literature, Gibrat’s Law is strongly rejected with the random slope and random intercept model utilizing a complete dataset. Employing the distributional properties of firms and modified Gibrat’s Law, which is being used to justify the recent revival of the Law in the literature, did not alter the result.

Measuring the effects of marketing expenses and external factors on housing sales transaction

Purpose- In recent years, with the support of urban regeneration movements, the real estate sector has become one of the locomotive sectors in terms of economic and social development, particularly for the developing countries. When the real estate sector is examined, it is seen that the housing sector, which directly touches to the end user and is considered sometimes for use sometimes for the investment purposes, comes to the forefront. It is observed that the competition among the developer firms also increased in parallel with the investments made. In this study, the 2004-2017 period was examined, the statistical models were created to help the developers in developing the housing marketing strategies, the marketing strategies affecting the house sales trends and the external factors were highlighted. Our paper is the first academic study that identifies this relationship in Turkish housing market. Methodology- Within the scope of this study; R programming language and Wilcoxon Rank was used to analyze the different housing marketing campaigns of one of the pioneer real estate firms in Turkey and their effect on the sales figures; the rank sum test was conducted; and, the VAR models were constructed and Impulse Response analysis, Pearson Correlation Coefficient were used for the relationship analyses. Findings- According to the results of the study, it is seen that the social events, long-term holidays, rainfall and snowfall, campaigns of the competitors have no statistically significant effect on the net sales and gross income. However, it was determined that the Ramadan period and the digital marketing had a significant effect on the net sales and gross income. It is determined that the use of outdoor billboard, which is expected to affect the housing sales, was inversely proportional to the net sales and gross income, that is, it had a negative effect when applied. Conclusion- It is thought that this study can be more improved as a result of including the followings into the model: more detailed classification of the social events, remodeling the Ramadan periods according to either they coincide with the summer month or the winter month, assessment of the effect of rainfall and snowfall considering the climate zone Turkey is in, more detailed analysis of the effect of the campaign of competitors, that the effect of digital marketing will be higher as the technology develops. It is expected that the modeling of the findings reached in this study (or which will be detailed in later studies) by using an algorithm will provide a cost-benefit optimization.

Factoring as a determinant of capital structure for large firms: Theoretical and empirical analysis

Firms engage in factoring as an external financing option. Factoring is generally considered as a costly option. However, firms may prefer factoring financing when they reach a certain level of indebtedness that increasing it may negatively affect their firm value. Up to now, far too little attention paid on the role of factoring on the capital structure decisions. This paper is the first attempt to provide a theoretical framework and empirical evidence on the role of factoring as a determinant of capital structure. A Fractional Regression Model is estimated using a sample of 261 publicly listed firms in Turkey for the 2012–2017 period. The empirical evidence presented in this paper implies that factoring does not effect on the initial decision of leveraging, whereas it is a determinant of capital structure for leveraged firms. Another significant finding is the existence of the relationship between increasing factoring and increased leverage.

Managing the Tradition and Innovation Paradox in Family Firms: A Family Imprinting Perspective

Long-established family firms are endowed with a bundle of beliefs and practices that constitute their tradition. However, to remain competitive, they need to renew their products and production processes. Such forces pulling toward the past and the future, antithetically calling for continuity and change, seem paradoxical. In an abductive analysis of eight long-established family firms in Turkey, we identify four equifinal strategies to manage this paradox. Adopting a family imprinting perspective, we theorize how the long-lasting legacy of previous family generations shapes different approaches to innovation and tradition depending on the content imprinted on the current family generation. Contributing to family business, imprinting and innovation research, we identify the new construct of temporal symbiosis as a firm’s simultaneous adoption of retrospective and prospective approaches to using its resources to concurrently perpetuate tradition and achieve innovation, highlighting its crucial role as a shield of the past and engine for the future.

Workplace favouritism, psychological contract violation and turnover intention: Moderating roles of authentic leadership and job insecurity climate

The multilevel investigation examines the impacts of favouritism on non-beneficiaries’ turnover intention by focusing on the mediating role of psychological contract violation and the moderating roles of job insecurity climate and authentic leadership in family firms. Congruent with the theories of relative deprivation, belongingness, and social identity, this paper is among the first to propose and empirically examine how and when favouritism leads to higher or lower turnover intention in family firms. Having utilized time-lagged data from 576 non-beneficiaries who came from 101 work groups in 48 family firms in Turkey, our findings support the following: the significance of favouritism by demonstrating that non-beneficiaries’ turnover intentions are higher in family firms when they perceive favouritism to be high; favouritism in family firms positively influences psychological contract violation; psychological contract violation acts as a mediator of the association between favouritism and non-beneficiaries’ turnover intention; and both job insecurity climate and AL act as moderators of the relationship between favouritism and turnover intention. The theoretical and practical contributions of these findings are discussed.

Educatıon Policy of Audit Firms in Turkey

Enhanced transparency of audit firms provides information regarding audit firms corporate governance and quality control applications. Moreover, transparency improves audit quality. Focusing on education of partners and staff may also contribute to a culture that promotes audit quality. This paper investigates whether continuing education part of transparency reports are in accordance with the Independent Audit By-Law and whether there is a difference on transparency in 2014, 2016 and 2017. In the study, 2017 transparency reports of 88 audit firms are examined and content analysis is conducted. According to the results of the study it can be concluded that there is no significance increase in the transparency level of companies regarding their education policy since 2014. It is higly recommended that all audit firms should consider disclosing Continuing Professional Education (CPE) hours of each auditors in their transparency reports in the future. Keywords: Transparency report, audit firms, continuous education, Turkey DOI : 10.7176/EJBM/11-11-13 Publication date : April 30 th 2019

TRANSPARENCY OF AUDIT FIRMS: ANALYSIS OF TRANSPARENCY REPORTS IN TURKEY

Transparency may improve audit quality. In order to increase transparency of audit firms, regulators require audit firms to issue a transparency report. In this regard, the Eighth EU Directive requires audit firms to publish annual transparency reports. In Turkey Independent Audit By-Law has requirements similar to those contained in Article 40 of the EU Directive. The paper examines contents of 2017 transparency reports of audit firms in Turkey. The paper assesses the level of audit firms compliance with requirements of transparent reporting set by the By-Law. The sample of the study consists of 88 transparency reports of audit firms that conducted audit of public interest entities (PIEs) in 2016 in Turkey. Keywords: Transparency report, audit firms, Turkey, KGK DOI : 10.7176/RJFA/10-8-22 Publication date : April 30 th 2019

Firm Leverage, Agency Costs and Firm Performance: An Empirical Research on Service Firms in Turkey

The agency theory suggests that loan can reduce the agency problem of shareholders-managers (enhance the agency problem of shareholders-lenders) and increase (decrease) the performance of a firm. This article analyzes the impact of firm leverage on the performance of firms with high and low agency costs. Using the ordinary least squares (OLS) method and the 2008-2017 data of 52 firms whose stock certificates are processed in the service sector in Istanbul Stock Exchange; it was determined that leverage had a negative impact on firm profitability and that impact was higher for firms with higher agency costs (firms with higher growth opportunities and fewer tangible assets) and lower for firms with agency costs of free cash flows (firms with higher free cash flows).

KURUMSAL YÖNETİM UYGULAMALARININ ÇALIŞMA SERMAYESİ YÖNETİMİ ÜZERİNE ETKİSİ: BİST İMALAT ŞİRKETLERİ ÜZERİNE BİR UYGULAMA

Bu çalışmada; genel olarak kurumsal yönetim uygulamaları ile çalışma sermayesi yönetimi arasındaki ilişkiler incelenmiştir. Bu kapsamda Borsa İstanbul’da işlem gören 155 imalat şirketinin 2012-2017 yılları arasına ait mali tablo ve faaliyet raporlarından elde edilen veriler, panel veri seti kullanılarak regresyon analizi ile test edilmiştir. Yapılan analizler sonucunda; yönetim kurulu üye sayısı, yönetim kurulu bağımsız üye oranı, yönetim kurulu kadın üye oranı, denetim komitesinin varlığı ve riskin erken saptanması komitesinin varlığı ile çalışma sermayesi yönetimi bileşenleri arasındaki ilişkiler analiz edilmiştir. Yapılan analizler sonucunda; bağımsız üye oranı ile ticari borç devir süresi, stok devir süresi ve nakit dönüş süresi arasında, denetim komitesi ile cari oran arasında ilişki olduğu tespit edilmiştir.

The interplay of corporate social responsibility and corporate political activity in emerging markets: The role of strategic flexibility in non‐market strategies

AbstractCorporate social responsibility (CSR) and corporate political activities are complementary, and the coordinated management of corporate social responsibility and corporate political activities may lead to better firm performance. However, corporate social responsibility and corporate political activities should be aligned carefully to utilize this complementarity. Strategic flexibility, which is the ability of a firm to adapt to changes in the external environment and make necessary organizational modifications quickly, can help firms to align their corporate social responsibility and corporate political activities. This paper empirically investigates the political dimension and the interactive dimension which describes interactions between corporate social responsibility and corporate political activities together with strategic flexibility and their effects on firm performance through a study of 142 firms in Turkey using moderated multiple regression methods. The results show that, while the political dimension had an inverted U‐shaped effect on firm performance, indicating that only a moderate level of corporate political activities may improve financial performance, the interactive dimension had positive but limited implications for performance. Finally, it was found strategic flexibility plays a positive moderating role on the relationships between the interactive dimension and firm performance. It is concluded that complementarity between corporate social responsibility and corporate political activities which may result in better performance is contingent on strategic flexibility.

Information system capabilities and firm performance: Opening the black box through decision-making performance and business-process performance

This study contributes to the extant literature on information management by investigating the interrelationships between information systems (IS)-related capabilities and their effects on firm performance. Using the resource-based view (RBV), a set of hypotheses is formulated to examine these links, considering the role that may be played by decision-making performance and business-process performance as mediating variables. Structural equation modeling (SEM) has been applied to a sample of 204 firms in Turkey. The test results obtained confirm the proposed serially mediating model according to which decision-making performance and business-process performance play a critical mediating role in the human resource and administrative-related IS capabilities, and firm-performance relationships. No support, however, has been found concerning the serial mediation effect between infrastructure-related IS capabilities and firm performance.

Human Resource Management in Turkey: Concept and Cases

This study aims to argue human resources management (HRM) in Turkey in aligned with concept and cases. Turkey has blend of Western and Eastern values. Eastern values, Western values, Islamic philosophy affect Turkish culture that have an impact implement of HRM practices. Research methodology contains literature review related to Turkish HRM. Main findings include that, firstly, Turkish firms apply of human resource management. Name of department is HRM department. Personnel management still continues to apply in HRM departments. Firms don’t apply strategic HRM in Turkey. Secondly, Turkish firms and academy apply of American-based HRM practices. HRM is originated to USA. Thirdly, Turkish firms apply HRM practices in HRM departments. Turkish firms, institutions, and academy follow recent developments abroad for HRM. To conclude, Turkish firms apply professional HRM entity in HRM, currently. And top managements of firms in Turkey strongly support apply of HRM practices in organizations.

Effects of green supply chain management practices on sustainability performance

PurposeThe purpose of this paper is to explore the impact of eight dimensions of green supply chain management (GSCM) on economic, environmental and social performance, which are the three dimensions of corporate sustainability. The eight dimensions covered in this study are: green purchasing, green manufacturing, green distribution, green packaging, green marketing, environmental education, internal environmental management and investment recovery.Design/methodology/approachThe relationships between dimensions of GSCM and sustainability performance are tested by using a plant-level survey. A proposed research model and hypotheses are tested by using cross-sectional face-to-face and e-mail survey data collected from manufacturing firms in Turkey. Structural equation modeling is used to test the proposed hypotheses.FindingsExcept for green purchasing, all GSCM dimensions are found to be related with at least one of the performance dimensions.Practical implicationsThe results are important in highlighting the importance of GSCM in improving sustainability performance.Originality/valueThis paper enhances the understanding of the relationship between different dimensions of GSCM and the three sustainability performance factors. While there are very few studies examining the relationship between GSCM and corporate sustainability, this study is important in terms of exploring the effects of dimensions of GSCM applications on economic, environmental and social performance one by one, by examining these applications in the form of eight dimensions.

Is conservative reporting attractive to foreign institutional investors? Evidence from an emerging market

ABSTRACTThis study investigates the relation between conservative reporting and foreign institutional ownership using a unique dataset of firms in Turkey. In doing so, we distinguish between foreign funds and corporations. Contrary to prior findings, our analysis shows that conservative reporting is not necessarily a desirable accounting feature for foreign institutional investors. We also find that the interplay between conservative reporting and ownership is significantly different between foreign funds and corporations. The estimated negative relation holds only for foreign funds. Further analysis reveals that foreign funds do not find conservative reporting desirable in low-asymmetric information firms and reduce ownership with greater accounting conservatism in such firms. The analysis sheds significant lights on the relevance of conservative reporting in alleviating the negative consequences of asymmetric information.

Rakibi Caydıracak Pazarlama Stratejileri ve Yönetici Teşvik Programları: Bilişsel Hiyerarşi Bazlı Yeni Bakış Açısı - Marketing Strategies for Entry Deterrence and Managerial Compensation: A New Perspective Based on Cognitive Hierarchy

Firms in Turkey have started to practice giving stock options as part of managers compensation. However, in the literature it is not clear that giving stock options would motivate managers to make the right strategic decisions. It is well documented that managers vary in their ability of thinking strategically, and they may not be able to correctly conjecture the actions and beliefs of competitors as assumed in the standard game theory. Given this heterogeneity in managers’ strategic thinking capability and the importance of managerial compensation, it is investigated when it is profitable to compensate managers by giving stock options. The context is chosen in which firms do not have the access to control managers directly, but can motivate them to develop the right marketing strategies to deter entry. Based on Cognitive Hierarchy model stock options are found that they should be used only if both the manager and the rival are strategic or the manager is naive, but not the rival.

Country and sector effects on the relationships among TQM practices and key performance measures

PurposeThe purpose of this paper is to analyze if and how country- and sector-related contingency factors affect the implementation of TQM practices and various performance measures within a TQM-performance relationships model framework.Design/methodology/approachThe authors used data from 156 firms in Turkey and 132 firms in North Cyprus (NC) to test the model relationships by utilizing multiple group structural equation modeling (SEM).FindingsThe study finds support for both the universal and the contingency argument within the context of country and sector analyses. Although our findings suggest no differences across the two countries, the authors find evidence for differences across sectors in terms of their TQM practices and performance outcomes. In the case of NC firms, the direct effects of TQM on human resource results and customer results constituted the missing linkages in the performance excellence framework.Research limitations/implicationsThis study suffers from the same limitations common to all survey research. However, it contributes strongly to the limited TQM contingency research by providing new findings and insights. This study must be replicated in different countries and other types of contextual factors must be used to determine if and how they moderate the model relationships. Other theories are also needed to better explain some of the relationships.Practical implicationsThere needs to be a more holistic approach to quality management and increased institutional support for quality initiatives in developing countries. Through proper alignment and integration of their different components, organizations can realize maximum improvement in their business results. Understanding the sector level contingencies before implementing a performance excellence model is also recommended.Social implicationsThe study has several social, economic and policy implications, including the need to improve employees’ work environment to improve their lives and prevent brain drain; to pass legislation to improve lax consumer laws; to found quality institutes to promote the education, training, qualification and professional development of employees working in the various sectors of the economy; and for government and employers to realize the importance of valuing stakeholders and delivering value and results to them to ensure long-term success.Originality/valueThis is one of the few studies in TQM contingency research that tests various relationships among TQM and business results by using country and sector as contingency factors.

Determinants of Investment in Turkey: A Firm-Level Investigation

ABSTRACT In this article, we analyze the financing constraints-investment link for the case of Turkey between 1996 and 2013. As different from the existing studies on Turkey, we use a more comprehensive data set that includes both publicly-traded and privately-owned firms and analyze the differences in constraints across small- and medium-sized firms and large firms. In addition to the commonly used cash-flow sensitivities, we use alternative measures of constraints build from multiple firm specific variables. We find that small- and medium-sized manufacturing firms in Turkey are subject to financing constraints regardless of the measure used.

Revisiting the corporate social responsibility (CSR) and performance relationship through a dynamic resource management view

Purpose- This paper aims to analyze the relationship between firms’ corporate social responsibility (CSR) practices and economic performance. Additionally, this research explores the role of strategic flexibility (SF) which is the ability of a firm to adapt to changes in the external environment and make necessary organizational modifications quickly to direct its resources for a CSR activity, in this relationship. Methodology- The paper empirically investigates the CSR practices together with SF and their effects on firm performance with a study of 179 firms in Turkey using moderated multiple regression methods. Findings- The results show that CSR practices are significantly associated with firm performance, indicating that a higher amount of CSR may improve financial performance. Conclusion- Finally it was found SF plays a positive moderating role on the relationships between the CSR practices and firm performance. It is concluded that firms with higher skills of SF may obtain better economic performance from their CSR activities.