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Varazdin Development and Entrepreneurship Agency
in cooperation with
University North
Faculty of Management University of Warsaw
Faculty of Law, Economics and Social Sciences Sale - Mohammed V University in Rabat
Economic and Social Development
33rd International Scientific Conference on Economic and Social Development –
"Managerial Issues in Modern Business"
Editors:
Tomasz Studzieniecki, Melita Kozina, Dunja Skalamera Alilovic
Book of Proceedings
Warsaw, 26-27 September 2018
Varazdin Development and Entrepreneurship Agency
in cooperation with
University North
Faculty of Management University of Warsaw
Faculty of Law, Economics and Social Sciences Sale - Mohammed V University in Rabat
Editors:
Tomasz Studzieniecki, Melita Kozina, Dunja Skalamera Alilovic
Economic and Social Development 33rd International Scientific Conference on Economic and Social Development –
"Managerial Issues in Modern Business"
Book of Proceedings
Warsaw, 26-27 September 2018
Title n Economic and Social Development (Book of Proceedings), 33rd International Scientific Conference on Economic and Social
Development - "Managerial Issues in Modern Business"
Editors n Tomasz Studzieniecki, Melita Kozina, Dunja Skalamera Alilovic
Scientific Committee n Marijan Cingula, University of Zagreb, Croatia (President); Sandra Raquel Alves - University of Aveiro, Portugal;
Ayuba A. Aminu, University of Maiduguri, Maiduguri, Nigeria; Anona Armstrong, Victoria University, Australia; Gouri Sankar
Bandyopadhyay, The University of Burdwan, Rajbati Bardhaman, India; Haimanti Banerji, Indian Institute of Technology, Kharagpur, India;
Elisabeth de Jesus Oliveira Brito - University of Aveiro, Portugal; Alla Bobyleva, The Lomonosov Moscow State University, Russia; Leonid
K. Bobrov, State University of Economics and Management, Novosibirsk, Russia; Rado Bohinc, University of Ljubljana, Slovenia; Zeki Atil
Bulut, Dokuz Eylul University, Turkey; Adnan Celik, Selcuk University - Konya, Turkey; Angelo Maia Cister, Federal University of Rio de
Janeiro, Brasil; Mirela Cristea, University of Craiova, Romania; Sreten Cuzovic, University of Nis, Serbia; Oguz Demir, Istanbul Commerce
University, Turkey; T.S. Devaraja, University of Mysore, India; Onur Dogan, Dokuz Eylul University, Turkey; Darko Dukic, University of Osijek, Croatia; Gordana Dukic, University of Osijek, Croatia; Alba Dumi, Vlora University, Vlore, Albania; Ksenija Dumicic, University of
Zagreb, Croatia; Galina Pavlovna Gagarinskaya, Samara State University, Russia; Fran Galetic, Zagreb University, Croatia; Mirjana Gligoric,
Faculty of Economics, Belgrade University, Serbia; Mehmet Emre Gorgulu, Afyon Kocatepe University, Turkey; Aleksandra Grobelna,
Gdynia Maritime University, Poland; Liudmila Guzikova, Peter the Great Saint-Petersburg Polytechnic University, Russia; Anica Hunjet,
University North, Koprivnica, Croatia; Oxana Ivanova, Ulyanovsk State University, Ulyanovsk, Russia; Irena Jankovic, Faculty of Economics,
Belgrade University, Serbia; Lara Jelenc, University of Rijeka, Croatia; Myrl Jones, Radford University, USA; Gorazd Justinek, Graduate
School of Government and European Studies, Slovenia; Hacer Simay Karaalp, Pamukkale University,Turkey; Grzegorz Karasiewicz,
University of Warsaw, Poland; Dafna Kariv, The College of Management Academic Studies, Rishon Le Zion, Israel; Salih Katircioglu, Eastern Mediterranean University, Northern Cyprus, Turkey; Hilal Yildirir Keser, Uludag University, Bursa, Turkey; Martina Dragija Kostic; Sophia
Khalimova, Institute of Economics and Industrial Engineering of Siberian Branch of Russian Academy of Science, Novosibirsk, Russia; Marina
Klacmer Calopa, University of Zagreb, Croatia; Vladimir Kovsca, University of Zagreb, Croatia; Goran Kozina, University North, Koprivnica,
Croatia; Dzenan Kulovic, Univeristy of Zenica, Bosnia and Herzegovina; Robert Lewis, Les Roches Gruyère University of Applied Sciences,
Bulle, Switzerland; Ladislav Lukas, Univ. of West Bohemia, Faculty of Economics, Czech Republic; Pascal Marty, University of La Rochelle,
France; Vaidotas Matutis, Vilnius University, Lithuania; Marjana Merkac Skok, GEA College of Entrepreneurship, Ljubljana, Slovenija;
Daniel Francois Meyer, North West University, South Africa; Marin Milkovic, Rector, University North, Koprivnica, Croatia; Zlatko Nedelko, University of Maribor, Slovenia; Gratiela Georgiana Noja, West University of Timisoara, Romania; Zsuzsanna Novak, Corvinus University
of Budapest, Hungary; Alojzy Z. Nowak, University of Warsaw, Poland; Tomasz Ochinowski, University of Warsaw, Poland; Mislav Ante
Omazic, University of Zagreb, Croatia; Vera Palea, Universita degli Studi di Torino, Italy; Dusko Pavlovic, Libertas International University,
Zagreb, Croatia; Igor Pihir – University of Zagreb, Croatia; Dinko Primorac, University North, Koprivnica, Croatia; Zeljka Primorac,
University of Split, Croatia; Miroslaw Przygoda, University of Warsaw, Poland; Nicholas Recker, Metropolitan State University of Denver,
USA; Kerry Redican, Virginia Tech, Blacksburg, USA; Humberto Ribeiro, University of Aveiro, Portugal; Robert Rybnicek, University of
Graz, Austria; Elzbieta Szymanska, Bialystok University of Technology, Poland; Katarzyna Szymanska, The State Higher School of
Vocational Education in Ciechanow, Poland; Jan Turyna, University of Warsaw, Poland; Ilaria Tutore, University of Naples Parthenope, Italy; Claudia Miranda Veloso - University of Aveiro, Portugal; Rebeka Danijela Vlahov, University of Zagreb; Ilko Vrankic, University of Zagreb,
Croatia; Thomas Will, Agnes Scott College, USA; Li Yongqiang, Victoria University, Australia; Peter Zabielskis, University of Macau, China;
Tao Zeng, Wilfrid Laurier University, Waterloo, Canada; Snezana Zivkovic, University of Nis, Serbia.
Review Committee n Marina Klacmer Calopa (President); Ana Aleksic; Sandra Raquel Alves; Ayuba Aminu; Mihovil Andjelinovic; Josip
Arneric; Lidija Bagaric; Tomislav Bakovic; Sanja Blazevic; Leonid Bobrov; Ruzica Brecic; Anita Ceh Casni; Mirela Cristea; Oguz Demir;
Jasmina Dvorski; Stjepan Dvorski; Robert Fabac; Ivica Filipovic; Sinisa Franjic; Fran Galetic; Mirjana Gligoric; Tomislav Globan; Anita
Goltnik Urnaut; Tomislav Herceg; Irena Jankovic; Emina Jerkovic; Dafna Kariv; Oliver Kesar; Hilal Yildirir Keser; Tatjana Kovac; Vladimir Kovsca; Angelo Maia Cister; Katarina Marosevic; Vaidotas Matutis; Marjana Merkac Skok; Josip Mikulic; Ljubica Milanovic Glavan; Daniel
Francois Meyer; Natanya Meyer; Guenter Mueller; Ivana Nacinovic Braje; Zlatko Nedelko; Gratiela Georgiana Noja; Zsuzsanna Novak; Alka
Obadic; Claudia Ogrean; Igor Pihir; Najla Podrug; Vojko Potocan; Dinko Primorac; Zeljka Primorac; Sanda Renko; Humberto Ribeiro; Vlasta
Roska; Souhaila Said; Armando Javier Sanchez Diaz; Tomislav Sekur; Lorena Skuflic; Mirko Smoljic; Petar Soric; Mario Spremic; Matjaz
Stor; Tomasz Studzieniecki; Lejla Tijanic; Daniel Tomic; Boris Tusek; Rebeka Daniela Vlahov; Ilko Vrankic; Thomas Will; Zoran Wittine;
Tao Zeng; Snezana Zivkovic; Berislav Zmuk.
Organizing Committee n Domagoj Cingula (President); Marina Klacmer Calopa; Spomenko Kesina; Erlino Koscak; Miroslaw Przygoda; Michael Stefulj; Rebeka Danijela Vlahov; Sime Vucetic.
Publishing Editor n Domagoj Cingula
Publisher n Design n Print n Varazdin Development and Entrepreneurship Agency, Varazdin, Croatia / Faculty of Management University
of Warsaw, Warsaw, Poland / University North, Koprivnica, Croatia / Faculty of Law, Economics and Social Sciences Sale - Mohammed V
University in Rabat, Morocco
Printing n Online Edition
ISSN 1849-7535 The Book is open access and double-blind peer reviewed.
Our past Books are indexed and abstracted by ProQuest, EconBIZ, CPCI (WoS) and EconLit databases and available for download in a PDF
format from the Economic and Social Development Conference website: http://www.esd-conference.com
© 2018 Varazdin Development and Entrepreneurship Agency, Varazdin, Croatia; Faculty of Management University of Warsaw, Warsaw, Poland; University North, Koprivnica, Croatia; Faculty of Law, Economics and Social Sciences Sale - Mohammed V University in Rabat, Morocco. All rights reserved. Authors are responsible for the linguistic and technical accuracy of their contributions.
Authors keep their copyrights for further publishing.
CONTENTS
MANAGEMENT OF CORPORATE HUMAN CAPITAL IN THE BULGARIAN ECONOMIC UNITS AS AN OBJECT OF THE BEHAVIORAL PARADIGM .............. 1
Adelina Milanova, Pavlinka Naydenova
NEXUS BETWEEN HUMAN CAPITAL DEVELOPMENT AND HUMAN CAPITAL INVESTMENT IN NIGERIA ................................................................................................. 9
Awe Isaac Tope
TECHNOLOGICAL QUALITY ASSESSMENT IN ONLINE COMMERCIAL SERVICES .............................................................................................................................. 21
Ireneusz Czarnowski, Monika Szyda
FAMILY VIOLENCE ........................................................................................................... 30
Dasa Panjakovic Senjic
IMPLEMENTATION OF THE SIX SIGMA METHODOLOGY IN A-ROSA HOTEL .................................................................................................................................................. 38
Elizabeta Mitreva, Elena Lazarovska, Oliver Filiposki
THE FUTURE OF MANAGERIAL EDUCATION ........................................................... 48
Grazyna Wieczorkowska Wierzbinska
FROM EL BOUAZIZI TO ISIS: PAST SEEDS AND PRESENT HARVEST (TOWARDS UNDERSTANDING THE CAUSES OF THE SHIFT FROM CLAIMS FOR FREEDOM TO VIOLENCE) .................................................................................................................... 55
Housni Hamid, Maliki Sadik, Biad Tayeb
IMPACT OF THE ORGANIZATION OF THE ASSOCIATION OF COMPANIES ON THE ECONOMY OF ITS PARTICIPANTS ...................................................................... 61
Eva Vitkova, Vit Hromadka, Jiri Kusak
INNOVATIONS AND SAFETY IN PASSENGER RAILWAY TRANSPORT - THE TRAVELERS’ PERSPECTIVE ........................................................................................... 71
Joanna Hernik, Rafal Mazur
COMPARATIVE ANALYSIS OF BUSINESS EXCELLENCE MODELS ................... 82
Andzela Veselova
DECISION ENGINEERING: SETTLING A LEAN DECISION MODELING APPROACH ........................................................................................................................... 93
Vanja Bevanda
METHODICAL APPROACH FOR THE ECONOMIC EVALUATION OF SPECIFIC PROJECTS ON WATERWAYS ........................................................................................ 103
Vit Hromadka, Eva Vitkova, Jana Korytarova
THE INFLUENCE OF FEMALE CEOS ON PERFORMANCE AND INDEBTEDNESS: AN EMPIRICAL ANALYSIS OF SPANISH HOTEL COMPANIES ........................... 109
Belen Arnao-Nieto, Joanna Hernik, Antonio Minguez-Vera
DETERMINANTS OF INTRA-INDUSTRY TRADE: AN INVESTIGATION WITH BMA FOR THE EUROPEAN UNION .............................................................................. 118
Krzysztof Beck
THE ROLE OF PROCESS IMPROVEMENTS TOOLS IN BUILDING RELATIONSHIP BETWEEN SUPPLIERS AND INDUSTRIAL CLIENTS ............... 127
Maciej Urbaniak
THE STRATEGY OF NOSTALGIC BRAND – EXPERTS’ STUDY ........................... 135
Magdalena Grebosz-Krawczyk, Jean Marc Pointet
GLOBL BLOCKCHAIN TECHNOLOGY MARKET ANALYSIS – CURRENT SITUATIONS AND FORECAST ....................................................................................... 143
Alexey Chernov, Victoria Chernova
CONDITIONS AND DIRECTIONS OF DEVELOPMENT OF BOOK FAIRS - PERSPECTIVE OF THE POLISH MARKET ................................................................. 153
Anita Proszowska
INVESTMENT PSYCHOLOGY AND BEHAVIOR ANALYSIS IN THE KOREAN RECONSTRUCTION MARKET ....................................................................................... 160
Chang-Wook Park, Seong-Hoon Jeong
CRYPTOCURRENCY: GENERAL CHALLENGES OF LEGAL REGULATION AND THE SWISS MODEL OF REGULATION ....................................................................... 168
Dragan Zelic, Nenad Baros
THE EVOLUTION OF ROMANIAN MACROECONOMY POST-CRISIS ................ 177
Dragos Ion Smedescu
RESEARCH ON ACCESSING EUROPEAN FUNDS FOR YOUNG FARMERS IN ROMANIA UNDER THE TWO NATIONAL RURAL DEVELOPMENT PROGRAMS ................................................................................................................................................ 184
Marius Mihai Micu
THE PECKING ORDER THEORY (POT) AND START-UP FINANCING OF SMALL AND MEDIUM ENTERPRISES (SMES): INSIGHT INTO AVAILABLE LITERATURE IN THE LIBYAN CONTEXT ................................................................. 191
Nassr Saleh Mohamad Ahmad, Ramadan Ahmed A Atniesha
MULTI-CRITERIA HIERARCHY OF DEVELOPMENT REGIONS FROM THE TOURISM PERSPECTIVE – ROMANIA ........................................................................ 201
Nela Steliac, Dumitru Steliac
FUNCTION AND IMPORTANCE OF INTERNAL AUDIT IN HOTEL GROUP „BUDVANSKA RIVIJERA“ .............................................................................................. 212
Olivera Simovic, Djurdjica Perovic
EFFICIENT MARKETING METHODS AIMING TO COMPLY WITH THE REQUIREMENTS OF MODERN CLIENTS ................................................................... 224
Ioan Iulian Alecu
GRI REPORTING FRAMEWORK AS A TOOL OF SOCIAL ACCOUNTING ........ 230
Grazyna Michalczuk, Urszula Konarzewska
THE CONCEPT OF ORGANIZATIONAL AMBIDEXTERITY AS AN EXAMPLE OF PARADOXICAL STRATEGY ........................................................................................... 241
Marta Kozakowska-Kedzierska
’QUESTIONS BANK’ IN TERMS OF WŁADYSŁAW JACHNIAK AS A MANAGERIAL TOOL OF FINANCIAL EDUCATION ............................................... 250
Michal Kozlowski, Danuta Jachniak
A POLITICAL ECONOMY ANALYSIS OF THE CHINESE SYSTEM OF SOCIALIST MARKET ECONOMY ........................................................................................................ 260
Nenad Rancic, Ying Zhang, Ozren Pilipovic
CONTEMPORARY INNOVATION PROCESSES AND MANAGERIAL ISSUES ... 269
Andrzej H. Jasinski
ROMANIAN WINES - PAST, PRESENT, FUTURE ...................................................... 279
Petrica Stefan
R&D EFFECTIVENESS IN THE PHARMACEUTICAL INDUSTRY ........................ 287
Lukasz Konopielko, Anastasiia Trechubova
BETWEEN CONSUMERISM AND DECONSUMPTION - ATTITUDES OF YOUNG POLES AS A CHALLENGE FOR MARKETERS .......................................................... 297
Agnieszka Wilczak
SELECTED PROBLEMS OF THE CREATION AND DEVELOPMENT OF THE INFORMATION SOCIETY AGAINST A BACKGROUND OF GLOBALIZATION 306
Anna Janiga-Cmiel
THE INFLUENCE OF CLIMATE CHANGE ON SUSTAINABLE DEVELOPMENT ................................................................................................................................................ 316
Dorina Nicoleta Mocuta
THE EFFECT OF OVERFLOW AT WORKPLACE ON EMPLOYEES PRODUCTIVITY AND WELL BEING ............................................................................ 322
Krzysztof Nowak, Anna Olga Kuzminska, Katarzyna Kinga Kowalczyk
PERFORMANCE APPRAISAL SYSTEM FOR ADMINISTRATIVE STAFF: A PILOT IMPLEMENTATION STUDY AT THE UNIVERSITY OF WARSAW ....................... 332
Maria Cywinska, Konrad Zawadzki
THE LEGAL ASPECTS OF INSOLVENCY OF THE ENTERPRISE (SELECTED ISSUES) ................................................................................................................................. 341
Monika Smusz - Kulesza
THE INFLUENCE OF THE TYPE OF CUSTOMER (INDIVIDUAL VS INSTITUTIONAL) ON THE PRINCIPLES OF WRITTEN COMMUNICATION OF A LARGE ORGANIZATION ................................................................................................ 351
Grazyna Rosa, Izabela Ostrowska, Kamila Slupinska, Leszek Gracz
CHANGE OF THE PREVIOUS PATH OF DEVELOPMENT IN THE ACTIVATION OF PERIPHERAL AREAS OF WEST POMERANIA IN POLAND ............................ 361
Piotr Nowaczyk
USING THE APPARATUS OF SIMULATION MODELING IN THE PROCESS OF DEVELOPING ADVERTISING STRATEGIES OF ENTERPRISES .......................... 372
Zoya Sokolovska, Alexey Alyohin, Iryna Kapustyan
COMMUNICATION WITH EXTERNAL AND INTERNAL PUBLIC ACCORDING TO STAKEHOLDER MANAGEMENT PRINCIPLES: EXAMPLE OF SPORTS ORGANIZATIONS ............................................................................................................. 383
Goran Pavelin, Nikolina Lucic
ANALYSIS OF THE CORRELATION BETWEEN CORPORATE GOVERNANCE AND THE ECONOMIC-FINANCIAL PERFORMANCE OF THE ECONOMIC ENTITIES ............................................................................................................................. 394
Raluca Florentina Cretu
ANALYSIS OF THE ECOTOURIST PROFILE IN ROMANIA, HUNGARY AND BULGARIA .......................................................................................................................... 404
Romeo Catalin Cretu
TOURISM NETWORK: KRAPINA – ZAGORJE COUNTY CASE ............................ 414
Sinisa Hajdas Doncic, Ivan Pavelic, Mihael Zmajlovic
ANALYSIS OF CROSS-BORDER ACQUISITIONS OF FAMILY-OWNED COMPANIES IN THE REPUBLIC OF CROATIA......................................................... 424
Karla Grgic, Davor Filipovic, Najla Podrug
ECONOMIC ASPECTS OF VIRTUAL SERVICES ....................................................... 434
Stanislaw Walukiewicz
THE INFLUENCE OF AN EXCESSIVE PUBLIC DEBT ON THE ECONOMIC TRENDS IN THE REPUBLIC OF CROATIA ................................................................. 449
Zeljko Sudaric, Mateja Glavota
SELECTED METHODS OF PSYCHOLOGICAL MANIPULATION IN THE MARKETING OF FINANCIAL SERVICES ................................................................... 460
Sylwia Lach
CASE STUDY METHOD AND ITS USEFULNESS IN BRANDING ACTIVITIES - RESULTS OF RESEARCH ................................................................................................ 468
Beata Tarczydlo
BUSINESS PROCESS MATURITY MODELS RESEARCH – A SYSTEMATIC LITERATURE REVIEW .................................................................................................... 476
T. Bartosz Kalinowski
THE ANALYSIS OF THE CHOSEN METHODS OF THE EVALUATION OF START-UPS ON THE SPECIFIC CASE ......................................................................................... 484
Daniela Majercakova, Alexandra Mittelman
THE ECONOMIC IMPACT ON DEVELOPMENT OF DEMOCRATIC PARTICIPATION IN VISEGRÁD GROUP COUNTRIES ............................................ 491
Tomasz Madras
PERIPHERAL ANTECEDENTS OF THE PROSUMER CULTURE AS A SOURCE OF INSPIRATION FOR HUMANISTIC MANAGEMENT ................................................. 500
Tomasz Ochinowski, Edyta Rosinska-Wielec
ANALYSIS OF THE VALUATION ACTIVITY ON VEGETABLES AND FRUITS CHAINS FOR THEIR IMPROVEMENT ......................................................................... 508
Valentina Constanta Tudor
THE ROLE OF ICT IN THE ZADAR CITY MUSEUMS AS A CHALLENGE FOR CULTURAL TOURISM ..................................................................................................... 515
Sime Vucetic, Domagoj Cingula, Djani Bunja
THE IMPORTANCE OF QUALITY ASSESSMENT CRITERIA OF BANKING APPLICATION IN POLAND ............................................................................................. 526
Witold Chmielarz, Konrad Luczak
THE SUSTAINABILITY ASSESSMENT – THE CASE OF A RUSSIAN PETROCHEMICAL COMPANY ...................................................................................... 536
Yulia Fomina, Svetlana Apenko
SOFT LAW ACTS AND THE PRINCIPLE OF LEGAL CERTAINTY ON THE EXAMPLE OF THE ACTIVITIES OF THE POLISH FINANCIAL SUPERVISION AUTHORITY AND THE PRESIDENT OF THE OFFICE OF ELECTRONIC COMMUNICATIONS ......................................................................................................... 544
Tomasz Klemt, Michalina Szpyrka
QUALITY MANAGEMENT TOOLS USED IN THE FUNCTION FAILURE DESIGN METHOD .............................................................................................................................. 552
Fabis-Domagala Joanna, Filo Grzegorz, Domagala Mariusz, Momeni Hassan
REDEFINING THE ROLE OF THE CONSUMER IN THE PROCESS OF CREATING MARKETING INNOVATIONS ......................................................................................... 561
Katarzyna Liczmanska-Kopcewicz
DESIGN OF RESILIENT SUPPLY CHAINS .................................................................. 571
Grazyna Wieteska
REVITALIZATION OF DEGRADED PORT AREAS AS A CHANCE FOR LOCAL DEVELOPMENT ON THE EXAMPLE OF KOŁOBRZEG MUNICIPALITY .......... 579
Piotr Nowaczyk, Arkadiusz Malkowski
CHANGE AREAS IN BIG INDUSTRIAL COMPANIES AND THEIR EVALUATION ................................................................................................................................................ 589
Jerzy Paszkowski
CHANGES IN THE USE OF WEBSITES IN E-COMMERCE IN 2017 -2018 ............ 597
Witold Chmielarz, Tomasz Parys
33rd International Scientific Conference on Economic and Social Development – ”Managerial Issues in Modern Business” –
Warsaw, 26-27 September 2018
414
TOURISM NETWORK: KRAPINA – ZAGORJE COUNTY CASE
Sinisa Hajdas Doncic Libertas International University, Zagreb, Trg J. F. Kennedy 6b
Ivan Pavelic Libertas International University, Zagreb, Trg J. F. Kennedy 6b
Mihael Zmajlovic
Hrvatski Sabor, Zagreb, TrgSv. Marka 6
ABSTRACT
Tourism networks may be defined as social structures that enable business entities to build the
level of mutual trust in order to create and develop jointly local tourist product. They are
imaginary organizations, both formal and informal, which present social construct of people,
activities and ideas. Complex or better said structured nature of tourism includes a number of
stakeholders into building networks: entrepreneurs, public organizations, NGOs. The survey
was used to question 148 stakeholders who participate in creating joint tourist product in
NUTS3 region of Krapina-Zagorje County, Republic of Croatia. They are enterprises,
craftwork, small family agriculture businesses, public institutions and bodies, NGOs and
individuals who participate and contribute to creating and implementing tourist product, which
do not have formal business linkages, but function as informal tourism network. The survey
questioned their level of cooperation in 9 areas, divided into 3 benefits. Results, further checked
by T-test, show that within informal network public sector better understands cooperation and
higher valuates benefit i.e. the test proves correlation in attitudes of public sector examinees in
comparison to private sector examinees.
Keywords: tourism networks, Krapina-Zagorje County, community involvement and
participation, building linkages
1. INTRODUCTION This paper researches how different actors at the regional level, the NUTS3 region, assess the
benefits of informal tourism network led by the public sector. Tourist network is focused on
linking the tourism resources in a huge number of small interconnected localities and marketing
them as a single destination. That involves facilities such as accommodation, spa resorts, farms,
restaurants, sites and craft centres. Its goal is to increase the flow of tourists and create new
jobs. The network is centralised, organised by the public sector agencies at a local and regional
level, but also opened to non-members. Case is considered to illustrate type of network seek to
build some understanding of the nature of the local community as part of how they can be
regarded as a tourism destination. Tourism is connected to geographical place and communities
with a social and cultural history of the county. One of the most precious elements in the study
of community networks is the vital role that entrepreneurs in the private, public or voluntary
sector play in starting up and working with those networks.
2. TOURISM NETWORKS The problem of small and medium-sized private enterprises in tourism in rural destinations is
primarily the problem of lack of competences in organizational forms and the lack of basic
knowledge and sources of funding (Morrison and Thomas, 1999, Androitis, 2002, Hajdaš,
33rd International Scientific Conference on Economic and Social Development – ”Managerial Issues in Modern Business” –
Warsaw, 26-27 September 2018
415
Horvat and Šmid 2007.). One way of handling such situation is the establishment of networks (Copp and Ivy, 2001) as part of a clustering process associated with a value chain established
as a lateral or vertical network (OECD, 1999.). Networks can be defined as social structures
that enable small and medium-sized businesses to build a level of mutual trust and to jointly
create and develop a local tourist product. Perhaps the best explanation of what the networks
are, was given by Gummesson, who used the expression of an imaginary organization, referring
to the fact that the networks are not tangible objects, but a social construction that contains
people, activities and ideas that need not be limited to a spatial location (Gummesson, 1994.).
The term networking can therefore be seen as a process already used in networks for mobilizing
relationships and the postulate of learning of each other. Networks can be observed in several
ways. In this paper, examples of Conwey will be used, as shown in Table 1., which has designed
a network classification method.
Table 1. Network classifications (Adapted from Conway, 1998. Shaw and Conway 2000.)
Classification DESCRIPTION
Network membership Diversity of actors (professional, user, social)
Nature of linkages Formal versus informal
Type of exchange or transaction Information, goods, friendship or power
Network function or role Problem solving or idea generation
Network morphology Size, diversity, density, stability of links
Geographical distribution of
network
Balance between local, national and international
members
CYBER network forums, Internet, Facebook
Conceptualizing the Networks through Social Identity (Michell, 1969, O Dannel, 2001, Van
Laere and Heene, 2003) and describing them as social networks that contain set morphological
dimensions of patterns and structures, their social dimension and a complex combination of
social parameters which depends on the functioning of the network are emphasized. In small
rural communities, such social connectivity is even more pronounced through the integration
of small tourist entities with the local community and the significant interconnection between
local economic and non-economic factors. That is why networks are observed as social
phenomena. The main issue remains the level of intensity of social inclusion in different
structures. Szarka speaks of three categories of economic and social determinants of inclusion:
1. Network of exchanges - include economic entities and organizations with which small
business entities have commercial transactions;
2. Communication networks - include a set of organizations and individuals with whom small
businesses have non-commercial transactions, such as development agencies, chambers of
commerce, consultants, local and regional self-government. The relationship is
characterized as official and / or semi-functional;
3. Social networks - include links between family, friends and acquaintances of the network
and have two components; a personal and a deeper cultural dimension. (Szarka 1990).
Being a part of the network often causes frustration, sacrifice and compromise. For network
members, participation in the network often means assessing their social contributions and
creating new tools to facilitate local tourism development. If benefits of networks are observed
in building a prominent tourist destination, then one can talk about the process of learning and
exchange, business activities and communion. Through learning and sharing knowledge within
a network, participants gain benefits that have been translated into positive business activity
and community outcomes. The value of the existing networks has only the lack of real
measurement of that value and many of them are socially difficult to quantify. (Nilsson, Peteren
33rd International Scientific Conference on Economic and Social Development – ”Managerial Issues in Modern Business” –
Warsaw, 26-27 September 2018
416
and Wanhill, 2005.). There are two key reasons for an emphasis on community networking.
The first is that tourism is linked to a geographic place or community with social and cultural
history that must be included in any development tourism project as well as the development
of the entire destination (Hall 2000.). The second is the complexity and multiplication of
tourism, which is quite different from other industries (Urry, 1990.). A complex or fairly
complex nature of tourism involves several stakeholders: private entrepreneurs, public
organizations, civil society associations. Tourist links within the community are therefore seen
primarily as a stakeholder group whose actors are involved in tourism at different stages and
levels. Michael defines them as groups whose identity can be identified with common goals
and values that come in formal or informal organizations and have an impact on particular
economic and social processes (Michael 2006., 109).
Table 2. Benefits of networks for building profitable tourism destination (Source: adapted
from Lynch, 2000, Gibson, Lynch 2007.)
Benefit category Identified network benefits
Learning and exchange Knowledge transfer, Tourism education
process, Communication, Development of
new cultural values, Accelerating speed of
implementation of support agency
initiatives, Facilitation of development stage
of small enterprises
Business activity Cooperative activities, for example,
marketing, purchasing, production
Enhanced cross referral, Encouraging needs-
based approaches, increased visitors
numbers, extension to visitor season,
increased entrepreneurial activity, internal
trading within network.
Community Fostering common purpose and focus,
Community support for destination
development,
Increases or reinvests a sense of community
Engagement of small enterprises in
destination development
More income staying locally
Successful networks in tourism are conceived as groups that play a full role in all the benefits
as explained in Table 2., which generate vital contribution, or better said, contribution of the
development in tourism in a particular community. Examples of such networks are Guldriet in
Sweden, Leith in Scotland and Yukkasjarava in Sweden. (Gibson, Lynch, 111).
2.1. Krapina-Zagorje County Krapina-Zagorje County is a county situated in north of Croatia with an area of 1,229 km2.
Krapina-Zagorje County encompasses 25 municipalities and 7 cities. There are around 132 900
inhabitants. The area contains the excavation site of a 100,000-year-old Neanderthal man in
caves near the central town of Krapina. Tourism is an important industry for Krapina-Zagorje
County. The county attracts tourists, with the spa resorts, medieval castles and agro-tourism
offers. Rural tourism and recreation close to nature is popular in county. Many agro-tourism
farms offer attractive locations, interesting features and additional services. In many of them
you can both sleep comfortably and eat tasty and healthy food.
33rd International Scientific Conference on Economic and Social Development – ”Managerial Issues in Modern Business” –
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County has launched a project called "fairy tale at hand”, which serves as the framework of a
number of tourism activities that have already been carried out. After creating brand and
platforms based on the county history, beautiful scenery, the warmth and hospitality of the
people and the magical, fairy-tale impression that this place leaves its appearance and emotion
and slogan fairy tale supports visual identity. Project branding has already brought positive
changes and this project in long term fostered the network common purpose and focus,
engaging support for enterprises in the destination development. Krapina-Zagorje County as a
public entity has established public sector led tourism network that encourage business entities
to build the level of mutual trust in order to create and develop jointly local tourist product.
3. RESEARCH GOALS The main goal of the research is to show how different actors evaluate the efficiency of the
network, i.e. what is the need for the tourist network. Furthermore, the paper researches the
benefit of the tourist network in accordance with the Lynch & Gibson division of benefits, and
what is the deviation of private from public sector actors. Two hypotheses can be set out from
the research goals:
· H1: The public sector higher valuates benefits of the network
· H2: Informal network members who generate revenue through the sale of tourist services
recognize the lower benefit of that network, while members of the informal network who
support those who generate revenue through the sale of tourist services within that network
recognize greater benefit from the network.
This actually means that informal networks are more in function of those who support the
network, i.e. that informal networks do not increase the quality of tourist services.
4. METODOLOGY A total of 148 surveys were submitted (16 spas / hotels / boarding houses, 29 restaurants, 2
special hospitals, 27 agrotourism-vineyards, 8 supporting institutions, 9 travel agencies, 23
organizers of tourist events, 27 food and beverage producers and 7 traditional crafts). Out of
the total number of respondents, the survey was completed by 46, where their interrelationships
either do not exist or are informal, through a network of cooperation. Out of these 46
respondents, 25 are privately owned (only one with foreign owners, while 24 are owned by
domestic companies or private persons) and 21 are either NGOs or owned by local government
and self-government or state-owned. The survey, presented in Table 3., consisted of 9 questions
about cooperation with other stakeholders within the county, and the responses were valuated
at grades 1 to 5; 1 meant no cooperation, while 5 meant that cooperation is very intense.
Table following on the next page
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Table 3. Survey questions
Rate how much you work with other actors in Krapina-Zagorje County
PARTICIPANTS – subjects in Krapina-Zagorje County (local community). These are
companies, crafts, family farms, institutes, institutions, cooperatives, associations,
independent professions, supporting institutions and individuals involved in the creation
and realization of a common tourist product. COMMON TOURIST PRODUCT (CTP) – a set of tangible and intangible services
and goods created by multiple actors based on their creativity and willingness to work
together.
not-at-all little medium muchvery-much
a) commercial cooperation (I buy raw
materials and products from others
and sell own raw materials and
products to others)
1 2 3 4 5
b) cooperation through the exchange of
information on production of goods
and services, market trends,
production technologies, new ideas,
products and services, labour force,
management, investment, financing,
regulations,
1 2 3 4 5
c) cooperation in planning the production
of goods and services for CTP, (in
planning investments for new products
and services, quality raising,
promotion and sales)
1 2 3 4 5
d) Production cooperation (producing
part of a joint product or service, with
a partner/s).
1 2 3 4 5
e) development cooperation (together
with others I invest in research to
improve the existing ones and create
new products and services /
innovations / and buy new
technologies.)
1 2 3 4 5
f) cooperation in human resource
management (joint education and
training of employees, employee
exchange, joint search for employees
in the labour market)
1 2 3 4 5
g) cooperation with local community
associations
1 2 3 4 5
h) cooperation with the local and county
administration in Krapina-Zagorje
County in the identification and
implementation of development
projects (planning and investment in
communal infrastructure, education,
employment, incentive programs)
1 2 3 4 5
i) cooperation with other supporting
institutions (educational, public
institutions, development agencies)
1 2 3 4 5
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The data analysis is divided into two parts:
· Descriptive statistics (structure of respondents by area of activity, number ofemployees,
average salaries and types of ownership)
· Tests of significance (T-test for small independent samples - less than 50 respondents,
separated by private and public participants - less than 30 respondents)
5. RESEARCH RESULTS In the survey, besides answering questionnaires, the respondents asked for data on ownership,
number of employees, average wage level, and data on the activity of the respondent, with all
the data being divided by categories. The reason why these data are requested is to see according
to which categories there are significant differences in the assessment of mutual cooperation
with actors in the Krapina-Zagorje County. Thus, ownership was divided into two categories;
private property and the public sector (all that was not privately owned), while still being
checked whether the owners were from R Croatia or from abroad. As only one respondent is in
foreign ownership, no statistically significant deviation could be obtained compared to the level
of respondents in domestic or foreign ownership.
Chart 1. Distribution of respondents by number of employees
Distribution by number of employees is given in Chart 1., and the respondents are divided into
5 categories, as the vast majority of small businesses (family farms, crafts and small
businesses), while only 2 respondents have over 100 employees (one has 135, while others have
765 employees). Those to whom networks are most important and needing to join this type are
small businesses because they do not have enough staff to structure their organization and can’t hire a larger number because they do not earn enough income. Salaries are divided into 4
categories, which can be seen in Chart 2., with the highest wage category the one with wages
greater than the average wages in the Republic of Croatia. With this data, reality can’t be reliably considered, as family farms and crafts are usually reported at a minimum wage as well
as small businesses with one owner because it is simpler and cheaper to take personal income
through cost to companies. For large companies this is not possible because they are structured
with clear business rules, and the ownership structure is not on the way that owner is in the
same time and employee (in the most of the cases general manager).
NUMBER OF EMPLOYEES, N=46
0-5 (59%) 6-10 (17%) 11-50 (13%) 51-100 (75) 101 + (4%)
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Chart 2. Distribution of respondents according to average salary level
Chart 3. shows the distribution of respondents in the area of activity (core business) or activity
of enterprises, divided into 6 categories, with the largest number of supporting institutions
(41%) and all supporting institutions represent public sector (not private property). The field of
action could be grouped in even more detail, however, then a sample is obtained for which it is
generally difficult to look for statistical significance. Therefore, only 6 categories remained.
Chart 3. Distribution of respondents by core business
Data analysis showed that there are statistically significant deviations in the evaluation of
cooperation between private sector actors and public sector actors, so T-tests have been
conducted for this data and all conclusions will be made in comparing the public and private
sector.
AVERAGE SALARY (Kn), N=46
3.000 - 4.000 (61%) 4.000 - 5.000 (20%) 5.000 - 6.000 (4%) 6.000 + (15%)
CORE BUSINESS, N=46
SPAS AND HOSPITALS (4%) CIVIL ASSOCIATIONS AND OTHER (9%)
RESTAURANTS I RURAL TOURISM (11%) HOTELS I PENSIONS (13%)
GOODS PRODUCERS (22%) SUPPORTING INSTITUTIONS (41%)
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If sum of all 9 ratings is compared in the private sector and the public sector, then the following
data is obtained:
T-test (SUM) PRIVATE SECTOR
PUBLIC
SECTOR
MEAN 25,24 28,52
VAR 35,77 17,56
df 44 24 20
s 5,243606703
t -2,068436194
t5 2,02
t1 2,69
t10 1,68
So, the result is such that with a probability of error of less than 5% it can be argued that there
is a statistically significant difference in the sum of the ratings of the private and public sector.
Furthermore, as it is apparent that the average sum of the public sector rating is 28,52, which is
higher than the average private sector rating (25,24), it can be concluded that more ratings are
given by the public sector (better valuate the cooperation). If the first question from the survey
was to be excluded, as commercial cooperation is generally "reserved" for the private sector,
then we have more significant data, so with a probability of error of less than 1% it can be
argued that the public sector (26,67) statistically significantly better evaluates the informal
network system than the private sector (22,08). Thus, as a result of the analysis carried out
above, H1 results, and that is, as in informal networks, private participants in the network
weaker evaluate the efficiency (benefits) of the network than are evaluated by the public sector
participants. If the questions are divided in accordance with the benefits of Table 2., then the
questions e) and f) belong to“LEARNING AND EXCHANGE”, the questions under a), b) and d) belongto “BUSINESS ACTIVITIES” and questions under c), g), h) and i) belong to the
“COMMUNITY”. If the average rating of each respondent is taken, separately for the private sector, and for the public sector, then with a probability of error of less than 1% it can be argued
that the public sector (3,19) is statistically significantly better evaluated by an informal network
than private sector (2,34) for benefits related to LEARNING AND EXCHANGE. If the same
would be done for benefits related to BUSINESS ACTIVITIES, then it could not claim that the
private sector (2,91) would higher valuates benefit from the public sector (2,44), because the
likelihood of error of such a claim would be greater than 5% the public sector has negligible
benefits for business activities. But, still less then 10%. For community-related benefits, the
public sector, with a probability of error of significantly less than 1%, argues that the public
sector (3,70) is statistically significantly better rated by the informal network than the private
sector (2,96).
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T-test G&L-LEARNING
PRIVATE
(AVERAGE)
PUBLIC
(AVERAGE)
MEAN 2,34 3,19
VAR 1,02 0,812
df 44 24 20
s 0,96056441
t -2,924354
t5 2,02
t1 2,69
T10 1,68
Thus, as a result of this part of the analysis comes H2, namely that members of the informal
network that generate revenues through the sale of tourist services recognize lesser benefits of
that network, while those members of the informal network who support those who generate
revenue by selling tourist services within that network, see greater benefit from such a network.
When in all these categories the difference in assessment was considered with regard to the
breakdowns within the salary category (social aspect), no statistically significant difference in
assessment could be observed.
6. CONCLUSION Managing tourist networks is the process of designing and maintaining an environment in which
individuals, working together in groups, efficiently realize the chosen goals. If applied to the
management of a tourist destination, then it is clear that management needs the community,
work in groups, what actually represents tourist network. Tourism as an amalgam of business
branches involves many stakeholders of society: private entrepreneurs, public organizations,
civil society associations. Tourist links within the community are visible through stakeholder
interests, whose actors are involved at different levels either through commercial cooperation,
either through information sharing, production cooperation, or human resource management
cooperation, as well as different degrees of cooperation. Participants are defined through groups
whose identity can be identified and which have common goals and values, but each of them
independently generates revenue through the sale of tourist services. The network should give
them added value they are not able to accomplish independently, whether due to insufficient
revenue, insufficient number of employees, or insufficient knowledge. However, this paper
shows that informal networks in the case of Krapina-Zagorje County do not give the expected
value added to those who sell tourism services and because of which the network actually exists.
It is to be expected that the networks will be formalized with clearly defined goals and defined
interconnections within the network or if the revenues of those within the network (public
sector) depend on the results of private actors within the network to assess the usefulness of
public and private network participants less statistically significantly different, that is, to make
such a network more useful for tourism commercial activity.
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