The Interaction between Organizational Cynicism and Psychological Contract Violation in terms of Strategic Human Resource Management

THE PROCEEDINGS OF

4

th

INTERNATIONAL

STRATEGIC MANAGEMENT

CONFERENCE

Exploring for International Competition and Cooperation

Strategies

to Foster Regional Development

June 19-21, 2008 Hollywood Hotel, Sarajevo,

4th.

INTERNATIONAL STRATEGIC

MANAGEMENT CONFERENCE

“Exploring for International Competition and Cooperation Strategies

to Foster Regional Development

”

June 19-21, 2008

Hollywood Hotel, Sarajevo, Bosnia-Herzegovina

© All Right Reserved

Honorary Presidents

Alinur BÜYÜKAKSOY (Ph.D.)

Cuma BAYAT (Ph.D.)

Ali AKDEMİR (Ph.D.)

Ertuğrul TACGIN (Ph.D.)

Chairman

Erol EREN (Ph.D.)

Co-Chair

Oya ERDİL (Ph.D.)

Typesetting

Mehtap ÖZŞAHİN

Ayşe GÜNSEL

İnci DURSUN

ISBN

978-975-01397-0-3

Organizing Institutions

Beykent University

Gebze Institute of Technology

Canakkale Onsekiz Mart University

International University of Sarajevo

Statements of facts or opinions appearing in Proceedings of the 4th _{International Strategic}

TABLE OF CONTENTS

COOPERATION AND COMPETITION STRATEGIES IN STRATEGIC

MANAGEMENT

Strategic Supplier Alliances In Natural Stone Industry: The Case of Turkish Companies (SÜLEYMAN BARUTÇU)

3

A Review Of The Term “Trust” In The Buyer-Seller Relationships (SEMA ERDOGAN, BÜLENT SEZEN)

11

Implementation Of Supply Chain Management And Information Systems Strategies In SMEs: Evidence From Turkey And Bulgaria (SELIM ZAIM, EKREM TATOGLU, ERKAN BAYRAKTAR)

19

A Strategical Framework Proposal For Competence Based Supply Chain (GÜLGÜN KAYAKUTLU, MUHTESEM BARAN)

31

Strategic Value Creation For The Sustainable Competition (TAHIR AKGEMCI,EBRU YILDIRIM, ERCAN OKTAY)

37

Competitiveness Of Professional Business Services: Lessons Learned From Turkish Advertising Agencies(ÇIĞDEM ŞAHIN)

47

To What Extent Is Competitive Intelligence Received At Strategic Or Tactical Levels By Large Companies? Evidence From Turkey

(MEHMET BARCA, MEHMET ALI KÖSEOĞLU, KEMAL KARAYORMUK)

57

Is It Possible To Make Competition Irrelevant?( E.GÖRKEM KAYAALP ERSOY,SELDA UCA) 67

REGIONAL DEVELOPMENTS, INTERNATIONAL ENVIRONMENT AND

CLUSTERING

The European Union And African Union Partnership In Darfur: Developing New Strategy In Darfur (KIERAN E. UCHEHARA)

77

Management of Agro-Industrial Complex in Russia Before Entering WTO (.N. KYZNETZOV, IRINA SOLDATOVA, YULIA RYBALCHENKO)

85

The Financial Performance Of Black Owned Grocery Shops In Townships In South Africa (NORMAN CHILIYA,GORGE HERBST, MORNAY ROBERTS –LOMBARD)

97

Political Economy of The New Europe: EU Eastern Enlargement and The Condition of Turkey and BH (M. TURAN ÇUHADAR)

109

A Regional Research About The Evaluation Of Network Relations In The Context Of Clustering As A Means Of Strategic Competition

(M.ATİLLA ARICIOĞLU, BİROL MERCAN, N.SEVİL TÜLÜCE, MUHİTTİN KORAŞ)

121

A Modeling Of Social-Local Based Business Incubator As A Regional Development Strategy: Assessing Of “The Business Improvement Centers (Isgems)” In Turkey

Social Municipalism Concept In Turkey: The Case of Kocaeli Metropolitan Municipality (ELIF YÜKSEL OKTAY)

137 Legal Aspects In Cooperative Strategy Of Business Clusters(TOMÁŠ PETERKA) 149

INTERNATIONAL STRATEGIC MANAGEMENT AND GLOBALIZATION

(ANDREI PANIBRATOV)

157 The Adaptation Of Mergers And Acquisitions To Different Markets And Possible Consequences:

A Case Of Kipa-Tesco (EBRU GÜNLÜ, AHMET ERKUŞ)

169

Information Search For FDI: The Effect Of Firm Age, Size And The Sector (HARUN KAYA,HÜSEYIN A. KANIBIR)

185

The Determinants Of Turkish Outward Foreign Direct Investment (İBRAHIM ANIL) 195 The Increasing Need For Global Managers, Yet Not Sufficient!!! How To Identify And Develop

Them? (SALIH YEŞIL)

207

The Influence Of Globalization Process On The Competitive Business Strategy (ŠÁRKA ZAPLETALOVÁ)

219

Opportunities And Risks In Free Zones In Turkey At Globalization Process (ENGIN ERDOĞAN, MELIHA ENER)

225

The Comparison Of Quantitative SWOT Analysis And Directional Policy Matrix In The Process Of Formulating Corporate Strategies: A Survey In Izmir’s Hypermarket Sector

(EBRU GÜNLÜ, MEHMET AKSARAYLI)

237

CONSUMER BEHAVIOR AND MARKETING IN STRATEGIC

MANAGEMENT

Corporate Governance And Social Responsibility -Attitudes Of Managers And Customers In Bosnia And Herzegovina –

(VESNA BABIĆ-HODOVIĆ,ELDIN MEHIĆ, EMINA RESIĆ, AMRA KRAMO)

253

Corporate Social Responsibility Of Small and Medium Enterprises in Bosnia and Herzegovina B&H Companies In Globalization

(DZEVAD SEHIC, JASNA SABANOVIC)

261

Triangle Of Economics, Ethics, And Corporate Social Responsibility: The OPET Case (BAŞAK IŞIL ÇETİN, LEVENT ŞAHİN, KADIR YILDIRIM)

273

Marketing Ethics At Small And Medium Size Enterprises (SMEs) In Globalization: A Case Study In Çorum, In Terms Of Corporate Social Responsibility

(İRFAN ÇAĞLAR, SABIHA KILIÇ, MUSTAFA EMRE ÇAĞLAR, EREN GÜNGÖR)

287

Decision To Buy From Online Stores Or Brick-And-Mortar Stores: Evidence From Turkish Consumers(İBRAHIM HALIL SEYREK, MEHMET AYTEKIN)

Determining Customer Expectations In Real Estate: A Potential Market for Istanbul/Turkey (IREM ERDOĞMUŞ, EMINE ÇOBANOĞLU)

309

Do It Yourself! Specialty Retailers In Home Improvement Sector Operating In Turkey (UĞUR YOZGAT, RECEP BAKI DENIZ, ASUDE GÖDEKLI)

319

Marketing Planning In Albania As A Ex Socialist Country. Challenges And Implications(EVELINA BAZINI, LILJANA ELMAZI,)

341

A New Strategy In Marketing: Buzz (SELDA BAŞARAN ALAGÖZ) 351 Toward An Understanding Of E- Marketing Attitudes in Turkish and Greek SMEs Against Global

Competition (SIMA NART, HUSEYIN A. KANIBIR)

359

Measurement Of Brand Equity And A Survey In The Banking Sector (T.SABRI ERDIL,UFUK AYDIN)

377

Using Marketing Mix For The Competitive Marketing Strategy: The Effect Of Marketing Mix On Consumer Buying Behavior(REHA SAYDAN)

393

INFORMATION TECHNOLOGIES AND KNOWLEDGE MANAGEMENT

Albanian Tourism Industry(FIORALBA VELA, PRANVERA RESULAJ)

413

The Impact Of Information Technology Practices And Organizational Learning On Firm Innovation And Performance(CEMAL ZEHIR,EMINE YILMAZ, HARUN VELIOĞLU)

419

Patent As A New Competitive Tool In Company’s Overall Business Strategies (ZEHRA GÖNÜL BALKIR, SIBEL NITELIK)

435

The Effects Of Emotional Capability On New Product Development Process (ALI E. AKGÜN, HALIT KESKİN, AYŞE GÜNSEL)

441

Effects Of Cross Functional Integration, Co-Development And Team Autonomy On Innovation Process: An Empirical Study(ALI E. AKGÜN, HALIT KESKİN, AYŞE GÜNSEL)

451

Innovation-Oriented Organizational Culture: A Field Study On SMEs In Mersin-Turkey (CEMILE ÇELIK)

459

Extent Of Family Influence On Family Firm Innovative Behavior: A Study On Small Sized Family Firms In Istanbul (MÜJDELEN YENER, SINEM AYKOL)

469

The Strategic Importance Of Innovativeness For Sustainable Competitive Advantage: The Case Of Supply Chain Management Practices In The Turkish Automotive Industry

(HASAN KÜRŞAT GÜLEŞ,ERCAN OKTAY,ORHAN ÇOBAN)

481

Innovation As A Tool For Global Competition And Cooperation For Innovation (BIROL MERCAN, NADIDE SEVIL HALICI)

493

Comparison Of Innovation Indicators: In European Union Countries And Turkey (FATMA LORCU, ÖZLEM AKÇAY KASAPOĞLU, GÖKHAN TURAN)

Knowledge Transfer Through Networks: The Case Of Turkish SMEs (DABABRATA N CHOWDHURY, LYNNE BUTEL)

515

ENTREPRENEURSHIP AND SMES MANAGEMENT

Strategy And Cognitive Scripts As Predictors Of Growth In Small Businesses (M. KAMIL KOZAN, DOLUN OKSOY, ONUR OZSOY)

531 Effect Of The Perceived Environmental Uncertainty On Market Orientation, Strategic Flexibility

And Corporate Entrepreneurship: A Field Study With Small And Medium Size Firms In Kars (NURHAN PAPATYA, GÜRCAN PAPATYA, A.BUĞRA HAMŞIOĞLU )

545

Three Main Skills Of A Strategic Leader: Malatya Small And Medium Enterprises (SME) Application(MEHMET TIKICI, MEHMET DENIZ, A.EMIN SERIN)

555

Creating Corporate Entrepreneurship Through Strategic Leadership (JOHAN HOUGH) 567 Role Of The Strategist Role Of The Strategist Features Of Entrepreneurs On The Success Of

Local Development Strategies: A Research On The Entrepreneurs In Karabuk, Turkey (ABDULLAH KARAKAYA)

577

The Influence Of Person-Organization Fit On The Employee’s Perception Of Organizational Performance (MERAL ELÇI, LÜTFÜHAK ALPKAN, HÜLYA GÜNDÜZ ÇEKMECELIOĞLU)

587

Entrepreneurial Intentions Of Young Educated Public In Turkey (GULRUH GURBUZ, SİNEM AYKOL)

595

Normative, Social And Cognitive Predictors Of Entrepreneurial Interest Of College Students In Turkey (TUĞBA KARABULUT)

605

ISSUES IN STRATEGIC MANAGEMENT AND DECISION MAKING

(MEHMET BARCA, ESRA DIL, MAHMUT HIZIROĞLU, HAYRETTİN ZENGİN)

617 A Critique Of Analytical Thinking, Approaches, And Tools In The Field Of Strategic Management (MEHMET BARCA, HAYRETTIN ZENGIN, MAHMUT HIZIROĞLU)

629

Leadership And Strategic Management: Women As Senior Managers In Turkish And Australian Universities (ÖZLEM ÖZKANLI, KATE WHITE)

637

How Could A Science Conference Achieve Competitive Advantage Among Other Science Events? An Example Assessment Via International Strategic Management Conference

(CANAN ÇETIN, EYÜP AYGÜN TAYŞIR, YENER PAZARCIK, ERKAN TAŞKIRAN)

647

The Impact Of Organizational Culture Fit On Strategic Outsourcing In Healthcare Industry (GONCA GUNAY, BENGU SEVIL, BURCU GUNERI)

657

Core Competence Based Structuring In Service Industry And Outsourcing As A Downsizing Strategy (MUSTAFA METE, HASAN GÜL, MEHMET İNCE)

665

How Does The Perception Of Alignment Appear? An Integrated Model Including The Affect Of Contingency Factors On Leadership Types And Strategy Development Process

(BINALI DOĞAN, ATA ÖZDEMIRCI )

Transformative Business Models For Organizing Primary Producers And Their Integration Into Value Chains (BRANKO BUCAR, JACK CROUCHER)

683

Activity Based Costing Leads To Strategic Decision Making (H. HAYRI NUROGLU, ELIF NUROGLU)

695

Strategic Management And Planning Process In Public Sector: Case Study Of The Under secretariat Of The Prime Ministry For Foreign Trade, Turkey (SIBEL ALAMAN ZENGIN)

703

Strategic Planning In The Public Sector: An Evaluative Study of Special Provincial Administration of Turkey (SEFA ÇETIN, HÜSEYIN ÖZGEN)

715

The Association Between Economic Development Indicators And Cultural Dimensions: The Case Of Turkey (RUHET GENÇ)

727

STRATEGIC FINANCIAL AND PERFORMANCE MANAGEMENT

( BARIŞ SAFRAN, MEHMET TOLGA TANER)

739 Strategic Management And Measuring Financial Performance In Public Companies

(RABIA ÖZPEYNIRCI, NURAY DEMIREL)

749

The Use Of Performance Measurement In Strategy Implementation: A Study Into The Service Sector (UMUT AVCI, YASIN BOYLU)

759

Strategic Plan Objectives’ Measurability Problem In Terms Of Accountability And Governance (M.TACETTIN SARIOĞLU, KÖKSAL BÜYÜK, NURCAN DENIZ )

769

Strategic Financial Policies In Emerging Country Stock Markets: The Turkish Case (A. CAN INCI)

785

Direct Marketing In The Financial Services Industry(ELENICA PJERO, LILJANA ELMAZI) 793 Mergers And Market Foreclosure: Using Data On Mergers And Stock Market Prices To Detect

Foreclosure(NESLIHAN AYDOĞAN, İRGE ŞENER)

803

Transition And Cultural Changes In Albanian Banking Sector( Case Of Vlora Region ) ( ETLEVA LESKAJ,KLAUDJA XHAFA)

835

STRATEGIC HUMAN RESOURCES MANAGEMENT ORGANIZATIONAL

BEHAVIOR

A Model For Managing Human Resource Competencies Strategically (ABDURRAHMAN BAŞ ) 847 Job Enrichment As Stimulus To Employees Of B&H Companies

(ZIJADA RAHIMIĆ, AMRA KOŽO)

855

Career-Management Process And Employee Attitudes (REGINA BEREZOVSKAYA) 865 Customer And Personnel Satisfaction in Hospitals A Case Study of Three Finnish Hospital

Districts’ Measuring Methods. (KATRI JAKOSUO)

875

The Industrial Analys Of Role Conflict And Role Ambiguity With Job Satisfaction And Organizational Commitment: A Study In The East Mediterranean Region

(M. TURAN ÇUHADAR)

905

Academic Entrepreneurship: The Role Of The University And The Researcher (GONCA GUNAY, ISIK OZGE YUMURTACI)

915

Leadership Grand Strategies For 21st Century: Lessons From Ataturk(ASIM SEN) 925 The Content Analysis Of Mission And Vision Statements Of Turkish And European Big Firms : A

Comparison (TANER ACUNER, KURTULUŞ YILMAZ GENÇ)

937

The Interaction Between Organizational Cynicism And Psychological Contract Violation In Terms Of Strategic Human Resource Management

(ADEM ÖĞÜT,ŞEVKI ÖZGENER,METIN KAPLAN)

945

The Impact Of Psychological Contracts Dimensions On Organizational Commitment: A Field Study Of Academicians(EMEL GÜLER YILMAZ,NIHAL PAŞALI TAŞOĞLU)

955

“Value What You Do, Do What You Value” A Content Analysis Of Corporate Values Of Turkey's Top 500 Industrial Enterprises(UĞUR YOZGAT, HANDE SERIM BAHADINLI )

961

STRATEGIC HOSPITALITY AND TOTAL QUALITY MANAGEMENT

977

An Application Concerning Evaluation Of Middle Level Managers’ Performance In Five Stars Hotels In Antalya ( AKYAY UYGUR, DERYA KARA, SELMA MEYDAN UYGUR)

991

Tourism As A Strategic Management Tool In Hospitality: A Case From 4&5 Star Hotels In Izmir Region (İGE PIRNAR, KAMIL YAĞCI)

999

Factors Leading To Intercultural Communication Problems: A Survey In A Group Of International Hotels

(M. KEMAL DEMIRCI, MUZAFFER AYDEMIR, ABDULLAH YILMAZ, CEREN G. ATALAY)

1007

The European Union Employee Participation System In Management Decision Making Process: A Survey About The Effects Of The System On Turkish Employees In The Multinational

Companies Operating In Turkey

(GÜROL ÖZCÜRE, HARUN DEMIRKAYA, NIMET ERYIĞIT, GÖNÜL YÜCE)

1017

Relationship Between Strategic Management And Total Quality Management How Can TQM be Implemented In The Service Sector Case Study: Vienna General Hospital

(ELIF NUROGLU, H. HAYRI NUROGLU)

1029

The Impact Of Contextual Factors On Total Quality Management Practices (ESIN SADIKOGLU, CEMAL ZEHIR)

1037

Nepotism : Cramp Through Institutionalization

(FATMA ZEHRA SAVI , AHU GÜLÜMSER IRAK,NADIR ATEŞOĞLU)

1049

ADVISORY BOARD & REVIEW COMMITEE

• Abdurrahman Benli (Canakkale Onsekiz Mart University, Canakkale-Turkey)

• Adnan Çelik (Sütçü İmam University, Kahramanmaraş-Turkey)

• Adnan Ceylan (Gebze Institute of Technology, Kocaeli-Turkey)

• Alexander Egorshin (The Nizhny Novgorod Institute of Management and Business, Russia)

• Ali Akdemir (Canakkale Onsekiz Mart University, Canakkale-Turkey)

• Ali Halıcı (Baskent University, Ankara-Turkey)

• Alistair M Brown (Curtin University of Technology, Western Australia)

• Amar KJN Nayak (Xavier Institute of Management, Orrissa-India)

• Andrei Burenin (Irkutsk State University, Russia)

• Andrey Dashkov (Moscow State University, Russia)

• Asım Şen (St. John Fisher College, USA)

• Atilla Dicle (Yeditepe University, İstanbul-Turkey)

• Aurea Helena Puga Ribeiro (Fundacao Dom Cabral, Brazil)

• Ayten Akatay (Canakkale Onsekiz Mart University, Canakkale-Turkey)

• Bahadır Akın (Selcuk University, Konya-Turkey)

• Birol Bumin (Gazi University, Ankara-Turkey)

• Borisas Melnikas (Vilnius Gediminas Technical University, Lithuania)

• Branko Bucar (Pace University,USA)

• Bülent Sezen (Gebze Institute of Technology, Kocaeli-Turkey)

• Canan Çetin (Marmara University, Istanbul-Turkey)

• Celso ClaudioHildebrand Grisi (University of Sao Paulo , Brazil)

• Cemal Zehir (Gebze Institute of Technology, Kocaeli-Turkey)

• Cengiz Yılmaz (Bogazici University, Istanbul-Turkey)

• Cevat Gerni (Gebze Institute of Technology, Kocaeli-Turkey)

• Ceyhan Aldemir (Dokuz Eylül University, İzmir-Turkey)

• Chien-Chung Nieh (Tamkang University, Taipei Country- Taiwan)

• Con Korkofingas (Macquarie University,Sydney- Australia)

• Dursun Bingöl (Atatürk University, Erzurum-Turkey)

• Dzevad Sehic (Faculty of EconomicsUniversity of Sarajevo, Bosnia)

• Ebru Kabadayı (Gebze Institute of Technology, Kocaeli-Turkey)

• Ekrem Tatoglu (Bahçeşehir University, Istanbul-Turkey)

• Enver Özkalp (Anadolu University, Eskişehir-Turkey)

• Erol Eren (Beykent University, Istanbul-Turkey)

• Eyüp Aktepe (Gazi University, Ankara-Turkey)

• Fahri Karakaya (University of Massachusetts, Dartmouth-USA)

• Feyzullah Eroğlu (Pamukkale University,Denizli-Turkey)

• Fuat Oktay (Beykent University, İstanbul-Turkey)

• Garry L. Adams (Auburn University, USA)

• Gökhan Özer (Gebze Institute of Technology, Kocaeli-Turkey)

• Gulruh Gurbuz (Marmara University, Istanbul-Turkey)

• Gültekin Yıldız (Sakarya University, Sakarya-Turkey)

• Güneş Berberoğlu (Anadolu University, Eskişehir-Turkey)

• Güven Alpay (Boğaziçi University, İstanbul-Turkey)

• Güven Murat (Karaelmas University, Zonguldak-Turkey)

• Halil Çivi (İnönü University, Malatya-Turkey)

• Halim Kazan (Gebze Institute of Technology, Kocaeli-Turkey)

• Halis Kalmış (Canakkale Onsekiz Mart University, Canakkale-Turkey)

• HA-Nguyen (Vietnam National University, Hanoi School of Business, Vietnam)

• Hasan İbicioğlu (Süleyman Demirel University, Isparta-Turkey)

• Hayat Kabasakal (Boğaziçi University, İstanbul-Turkey)

• Hikmet Timur (Hacettepe University, Ankara-Turkey)

• Hisao Fujimoto (Osaka University of Economics, Japon)

• Howard Clayton (Auburn University, USA)1

• Hüseyin İnce (Gebze Institute of Technology, Kocaeli-Turkey)

• İnan Özalp (Anadolu University, Eskişehir-Turkey)

• Jiri Mezulanik (Silesian University, Opava-Czech Republic)

• Jungwan Lee (Bang College of Business, Kazakhstan)

• Kamil Kozan (St. John Fisher College, USA)

• Kathleen Marshall Park (Massachusetts Institute of Technology, USA)

• Lars Ehrengren (Stockholm University, Sweden)

• Ljiljana Maurovic (University of Rijeka, Croatia)

• Lutfihak Alpkan (Gebze Institute of Technology, Kocaeli-Turkey)

• M. K. Sharma (Himachal Pradesh University, Shimla-India)

• Mahmut Özdevecioğlu (Erciyes University, Kayseri-Turkey)

• Mehmet Barca (Sakarya University, Sakarya-Turkey)

• Mehmet Sahin (Anadolu University, Eskisehir-Turkey)

• Mehmet Şahin (Canakkale Onsekiz Mart University, Turkey)

• Muhsin Halis (Gaziantep University, Gaziantep-Turkey)

• Murat Azaltun (Beykent University, İstanbul-Turkey)

• Musa Pınar (Valparaiso University, Valparaiso, Indina,USA)

• Mustafa Delican (Beykent University, İstanbul-Turkey)

• Mustafa Köksal (Kocaeli University, Kocaeli-Turkey)

• Mümin Ertürk (Beykent University, İstanbul-Turkey)

• Münevver Çetin (Marmara University, İstanbul-Turkey)

• Nazan Yelkikalan (Canakkale Onsekiz Mart University, Canakkale-Turkey)

• Necdet Timur (Anadolu University, Eskisehir-Turkey)

• Neil Bechervause (Swinburne University of Technology, Melbourne- Australia)

• Nurullah Genç (Kocaeli University, Kocaeli-Turkey)

• Ömer Adil Atasoy (Osman Gazi University, Eskişehir-Turkey)

• Ömer Torlak (Osman Gazi University, Eskişehir-Turkey)

• Ömür Özmen (Dokuz Eylül University, İzmir-Turkey)

• Oya Erdil (Gebze Institute of Technology, Kocaeli-Turkey)

• Ozlem Ozkanlı (Ankara University, Ankara-Turkey)

• Pauline Magee-Egan (St. John’s University, USA)

• Peet Venter (University of South Africa, Pretoria-South Africa)

• Recep Şener (Muğla University, Muğla-Turkey)

• Refik Culpan (Pennsylvania State University, Harrisburg-USA)

• Refika Bakoğlu (Marmara University, İstanbul-Turkey)

• Rezan Tatlıdil (Ege University, İzmir-Turkey)

• Rıdvan Karalar (Anadolu University, Eskişehir-Turkey)

• Sabahat Bayrak (Pamukkale University, Denizli-Turkey)

• Sadi Can Saruhan (Marmara University, İstanbul-Turkey)

• Sefer Şener (Canakkale Onsekiz Mart University, Turkey)

• Selen Doğan (Niğde University, Niğde-Turkey)

• Selim lter (St. John Fisher College, USA)

• Şerafettin Sevim (Dumlupınar University, Kütahya-Turkey)

• Sergei Mordovin (International Management Institute St. Petersburg, Russia)

• Sevinç Köse (Celal Bayar University, Manisa-Turkey)

• Şevki Özgener (Erciyes University, Nevşehir-Turkey)

• Shamsul Nahar Abdullah (Northen University of Malaysia,AmanMalasia)

• Sharan L. Oswald (Auburn University, USA)

• Shaukat Ali (University of Wolverhampton, Shropsire-Great Britain)

• Sonja Petrovich Lazarevic (Monash University, Victoria-Australia)

• Stanislav Poloucek (Silesian University, Opava-Czech Republic)

• Subodh Bhat (San Francisco State University,San Francisco - USA)

• Tatiana A. Burenina (State University of Management, Russia)

• Tijen Harcar (İzmir University of Economics, Turkey)

• Tuna Taner (Celal Bayar University, Manisa-Turkey)

• Uğur Yozgat (Marmara University, İstanbul-Turkey)

• Ülkü Dicle (Yeditepe University, İstanbul-Turkey)

• V. Dolyatovskiy (The Rostow State University, Russia)

• Victor Gnevko (St. Petersburg Institute of Management and Economics, Russia)

• Vojtech Malatek (Silesian University, Opava-Czech Republic)

• Warren J. Keegen (Pace University, USA)

• Yasemin Arbak (Dokuz Eylül University, İzmir-Turkey)

• Yonca Gürol (Yıldız Technical University, İstanbul-Turkey)

• Yücel Acer (Canakkale Onsekiz Mart University, Canakkale-Turkey)

• Zeyyat Hatipogl (Dogus University, Istanbul-Turkey)

ORGANIZING COMMITTEE

• Erol Eren (Chairman, Beykent University, Istanbul-Turkey)

• Oya Erdil (Co-Chair, Gebze Institute of Technology, Kocaeli-Turkey)

• Ali Akdemir (Co-Chair, Çanakkale 18 Mart University, Çanakkale-Tıurkey)

• Murat Kasımoğlu (Çanakkale 18 Mart University, Çanakkale-Tıurkey)

• Lutfihak Alpkan (Gebze Institute of Technology, Kocaeli-Turkey)

• Ali E. Akgün (Gebze Institute of Technology, Kocaeli-Turkey)

• Halit Keskin (Gebze Institute of Technology, Kocaeli-Turkey)

• Cemal Zehir (Gebze Institute of Technology, Kocaeli-Turkey)

• Fuat Oktay (Beykent University, Istanbul-Turkey)

• Tanses Gürsoy (Beykent University, Istanbul-Turkey)

• Gülruh Gürbüz (Marmara University, Istanbul-Turkey)

• İrem Erdoğmuş (Marmara University, Istanbul-Turkey)

• Esin Sadıkoğlu (Gebze Institute of Technology, Kocaeli-Turkey)

• Meral Elçi (Gebze Institute of Technology, Kocaeli-Turkey)

PREFACE

Dear Participants;

I, as a chairman of this 4th _{Strategic Management Conference, would like to welcome all of you with my}

love and respects. We feel happy and honorable to organize the Strategic Management Conference in Sarajevo city of Bosnia-Herzegovina this year that we had commenced to organize in 2005. We are excited as we were four years ago and we are here today with our feelings of the first day. I would like to thank to our partner of this year, International Bosnian University Rector and other managers, who gave us an opportunity to organize this conference in this beautiful city. In our fourth conference, there are 189 participators from 15 countries with 97 papers. In fact, we received 142 announcements from 20 countries but 45 of these announcements were reasonably refused by the peer review committees.

As it is seen, the participators want to participate in this international activity with great excitement like us. My dear colleagues and guests; with this excitement and motivation, we had programmed to publish an international journal under support of the International Strategic Management Conference. As a result of this, our journal titled “Journal of Strategic Management’ we began to publish last year is now one year of old. Today, we present to you the first issue of the second year in your conference bags. Both the quality of articles published in the magazine increases day by day. Our purpose is to make this journal a publication that is scanned and referred in international indexes. I would like to thank to all my friends who worked hard on this matter. We established an association named “‘International Strategic Management and Managers’ to ensure assistance both for our conference and publication of our journal. We wish you to be member of this association and continue our international endeavors together with synergic power.

The other pleasing event of our fourth conference is that world wide known two gurus in field of strategic management will honor our conference as key-note speakers. I would like to thank to Prof. A. Lonie STRICKLAND and Prof. Richard LYNCH in my name and our organization committee.

I would to sincerely thank to our honored rectors who helped us and gave every support in organization of the conference in perfect manner, to our colleagues who made valuable contributions as members of peer reviewer and Consultant Committee, to Beykent University Board of Trustees who made contributions in organization of the conference as a sponsor and its estimable chairman Mr. Adem ÇELİK and Cuma Bayat Rector of Beykent University, to Mr. Güçlü KAPLANGI, Executive Director of Fagor Industrial Company, Çanakkale On Sekiz Mart University Rector and Co-Chair Prof. Ali AKDEMİR who realized publication of our conference book and to Prof. Alinur Büyükaksoy, Rector of Gebze Institute of Technology, who supported preparation and publication of the conference program and file as a sponsor. I wish this conference will be helpful and beneficial to us and all academic participants. I present my love and respects.

Prof.Dr.Erol EREN Chairman of the Conference

PREFACE

We are honored to welcome you to the 4th _{International Strategic Management Conference in Sarajevo. This}

year’s theme is ‘Exploring for International Competition and Cooperative Strategies to Foster Regional Development’.

We convened here, coming from different parts of the world, to discuss and explore for international competition and cooperative strategies in regional development. We are going to debate on different approaches and models in strategic management, industry analyses, ethical issues, innovation and many other issues, not only economic and technology point of view, but also addressing mainly the problems and issues of regional development.

Academicians from different countries submitted original papers for conference presentation and for publication in this Proceedings Book. All competitive papers were subject to a peer review. The results of these efforts produced 97 empirical, conceptual, and methodological papers involving all functional areas of strategic management with a specific focus on regional development and international aspects. I would like to express our appreciation to the reviewers for reviewing the papers that were submitted to this conference. We also thank to all those who submitted their work to be considered for presentation at the Conference.

All of us here worked very hard to make this conference a success. The conference could not have been held without the diligent work of Professor Erol Eren, Dean and Chairman of the Conference who made great effort to perfect all arrangements. Special thanks to him for his leadership and execution of 2008 Conference. I want to extend special appreciation to Mehtap Özşahin for her hard work and commitment to the conference development.

We hope that you will benefit from the Conference and enjoy your stay in this great, historic land, Sarajevo.

Oya Erdil, Ph.D. Co-Chair of the Conference Gebze Institute of Technology

FOREWORD

The concept of “strategy” and the concept of “Strategic Management”, which were being used almost exclusively for business administration and economic areas up until about 20 years ago, have now become concepts that can be adapted in all areas of activity.

All cities and towns in the world have 10, 20, 30, or 40 year plans to achieve their strategic objectives; even plans exceeding 50 or a hundred years. The shape of the future is being achieved by means of the concept of “Strategic Planning”. From an economic, social or intellectual point of view, the answers to problems that arise, wherever and however, are being met via Strategic Planning. Furthermore, it is striking how much “SWOT Analysis” is being valued in Strategic Management at individual, institutional, regional, and national level. And, it is satisfying to see that the terms “mission” and “vision” have now become an integral part of administrative and managerial thinking in every department.

That strategic management would achieve such an important and enduring place in our country was previously forecast by the writer, Prof. Dr. Erol Eren, at a congress. The first congress took place in Çanakkale in the year 2005 and since then, has been held every year. This year, in Bosna-Hersek, will be the fourth time that the Strategic Management Congress has been held. Four universities will organize it: Beykent University, Gebze Institute of Technology, the International University of Sarajevo, and Çanakkale Onsekiz Mart University. This fourth congress, therefore, carries even more weight than previously. In this context, I sincerely thank my dear colleague Prof. Dr. Erol Eren for his most meaningful contribution to the success that this congress has achieved.

For their participation in this productive collaboration between our universities, I wish to thank Prof. Dr. Cuma Bayat, Rector of Beykent University; Prof. Dr Alinur Büyükaksoy, Rector of Gebze Institute of Technology; Prof. Dr. Erkan Türe, Former Rector of the International University of Sarajevo; and Prof. Dr Ertuğrul Taçgin, current Rector of the International University of Sarajevo.

In addition, I would like to thank Prof. Dr. Oya Erdil, Assoc. Prof. Lütfihak Alpkan, Assoc. Prof. Dr. Cemal Zehir, Research Assistants Mehtap Özşahiner and Erdal Aydın – each and every one of them – for their contribution towards ensuring the successful organization of this congress.

I would also like to thank Prof. Dr. Lonnie Strickland, Prof. Dr. Richard Lynch, Ass. Prof. Dr. Tanses Gülsoy, Dr. Meral Elçi, E. Görkem Kayaalp Ersoy, and Ayşe Gürsel for their significant contributions.

I wish everyone a successful congress.

Prof. Dr. Ali Akdemir Rector, Çanakkale Onsekiz Mart University

FOREWORD

On behalf of my university and staff members I would like to welcome the delegates of the 4th _{International}

Strategic Management Conference with the theme ‘Exploring for International Competition and Cooperation Strategies to Foster Regional Development’ organized by Beykent University, Gebze Institute of Technology, Çanakkale 18 Mart University and International University of Sarajevo.

As Gebze Institute of Technology, we are extremely pleased to have participated in the organization and realization of this series of conference and many of others which contributes our aim of concentrating on scientific events. This year, we provide our support for the success of the 4th _{International Strategic}

Management Conference which is held in Sarajevo.

My special thanks go to Professor Cuma Bayat, Rector of Beykent University, and Professor Ali Akdemir, Rector of Çanakkale 18 Mart University who give the excellent example of cooperation to realize this successful event. I would like to express my sincere hope that this cooperation will continue in the coming years.

Professor Dr. Erol Eren, Dean, and the President of the Organizing Committee, successfully lead the organization the last three years. I would like to thank to Dr. Eren for his valuable efforts. I also would like to thank to colleagues and staff of our Faculty of Business Administration for their hard work.

It is our sincere hope that you will enjoy both the academic discussions and social events of the Congress and your stay in Sarajevo.

Prof. Dr. Alinur Büyükaksoy Rector,

FOREWORD

My Dear Colleagues, participants and guests

I, as Beykent University Rector, would like to welcome all of you with my loves and respects.

We are very pleased to organize the fourth of this international activity this year that has been organized since 2005. Organization of the fourth conference in an international atmosphere in Sarajevo city of Bosnia Herzegovina and participation of the international Sarajevo University in Sarajevo to this conference is a very pleasing event for us. We plan to organize the 5th _{International Strategic Management Conference in 2009 again}

out of Turkey in any other country of world in an arena where international scientists meet.

Beykent University leads organization of such international activities or is one of the leaders that participates such activities. We endeavor to make our university an institute that performs global activities and carries the science to all the world people. Today, with our remote education programs, we develop to give education opportunities in all the Balkan countries, Asia and Europe. We employ in academic staff our university the instructors who have academic experience in various countries of world. This year we will extend our university with educational departments to be opened in İzmir, Edirne and Kocaeli cities of Turkey. In following years, we plan to establish science institutes depended on a joint investment partnership with universities active in the Asia Turkish Republics and Balkan countries. This conference and similar international activities will ensure scientific exchange of views and besides, academicians will find an opportunity to work together with the scientific institutes we plan to establish a partnership and cooperation with.

I would like to sincerely thank to Gebze High Technology Institute Rector, Çanakkale Onsekiz Mart University Rector who gave their assistance in organization of this conference in scientific cooperative manner and established a model cooperation in this matter, to International Bosnia University Rector who finally decided to make cooperation with us this year and all other managers of these institutes who helped us. Besides, I would like to thank to the chairman and his assistants in charge of organization of this conference and to all other estimable persons who work in secretariat, consultancy and arbitrator committee, and I wish this conference will be useful and beneficial for our science world.

Prof. Dr. Cuma BAYAT Rector, Beykent University

FOREWORD

International University of Sarajevo (IUS) is a young foundation university established in 2004. It consists of 3 faculties that currently offer 14 academic programs in undergraduate level, and also consists of 5 graduate programs offering master and doctorate degrees. In one of the graduate program, initiating a dual diploma program with an American University has been agreed. Another dual diploma agreement with Cyprus International University in undergraduate and graduate programs have recently begun.

IUS brings a new approach and organization to higher education in Bosnia. It will be a learning–and students-oriented university. IUS keeps curricula and methodologies up-to-date and makes transition between faculties a smooth and easy process. It aims to endow students with knowledge and skills required by the organizations of the 21st century.

As a foundation university carrying social responsibility, IUS has a mission to serve Bosnian community by education, research, and scientific and social activities. It currently has students from 12 countries, more than one third of which have scholarship from various sources. These students are either highly talented students, or successful needy students.

IUS aims at playing a significant role in Bosnia’s development to achieve progress and prosperity in peace. In order to achieve this aim, It has taken part in several organizations and activities with international participation. IUS recently organized a conference and workshop with two days on setting a bridge between the East and the West with the collaboration of ADAM, Ankara Center for Thought and Research. IUS also had the chance on participating in the organization of the Regional Workshop of the 5th World Water Forum in Sarajevo.

We are very pleased to take part in this organization of the 4th International Strategic Management Conference in Sarajevo. We believe that such world wide organizations will contribute Bosnia’s development in every aspects and will help reverse the brain-drain of the country’s scientists.

Prof.Dr.Ertuğrul TAÇGIN Rector International University of Sarajevo

COOPERATION AND

COMPETITION

STRATEGIES IN

STRATEGIC

MANAGEMENT

STRATEGIC SUPPLIER ALLIANCES IN THE NATURAL

STONE INDUSTRY: THE CASE OF TURKISH COMPANIES

Süleyman BARUTÇU

Pamukkale University, Turkey

ABSTRACT

The natural stone industry is one of the oldest industries in the world, and Turkish natural stone companies face with high competition from Italy, China and a few more countries in the world. In highly competitive business environment, strategic alliances and supply chain management are some of the important strategies for the natural stone industry as well. The main objective of this paper is to shift the focus of strategiest from strategic alliances among companies or rivals towards strategic supplier alliances involving the owners of quarries, manufactures, logistics service providers and distributors in the natural stone supply chain. The survey resultsconducted on 32 respondentsshowed that the managers or owners of the companies (1) found strategic supplier alliances mutually beneficial for all partners in a supply chain, and (2) were eager to improve their relationship, cooperation and collaboration with their suppliers and customers, (3) preferred informal agreements to mergers or full partnerships, and (4) were more enthusiastic to establish production-based strategic supplier alliances with Italian and Spanish than Chinese companies and marketing-production-based strategic supplier alliances with many companies from all over the world.

Keywords: Strategic Alliances, Supply Chain Management, Strategic Supplier Alliances, Natural Stone Industry

INTRODUCTION

Nowadays, much of international attention in natural stone industry has been centered on Turkey, Italy, China and India for their reserves, production capacity and competitive pricing. Currently, Turkey is one of the few countries capable of producing over 5 million m³ of rough blocks that are spread all over the country and is now beginning to play an important role on the international natural stone markets, particularly in finished marble and travertine production in the world (Turkey at the Tops of the Worlds, 2006). According to Porter’s Five Forces analysis, strong buyer power, high rivalry, low cost ceramics substitute and threat of new entrants makes natural stone industry very competitive business environment not only today but also in the future (Barutçu, 2007a). Therefore, Turkish natural stone companies face high competition from due to the Italian brands and Chinese lower prices although Turkey has very important natural stone reserves. Moreover, many Turkish natural stone companies that enter global markets use a direct exporting model. This model as an entry strategy for global marketing is usually quicker and less risky. On the other hand, the importers can change their suppliers very easily, because there is no changing bariers in natural stone industry. As a result, there is highly competitive business environment in the natural stone supply chain. Under these competitive circumstances, Turkish companies are searching for new ways to improve their competitive positions in natural stone markets. Forming the strategic alliance among rivals or strategic supplier alliances among suppliers in a supply chain is one of the major ongoing interests in the strategic management literatures. Therefore, the natural stone exporters need to turn suppliers and customers into partners willing to cooperate enthusiastically in supplying, marketing and distributing the natural stones, because the emerging area of supply chain alliances or strategic supplier alliances have received considerable attention in the academic and managerial literatures (Monczka et al., 1998). For example, the Chamber’s President of Industry and Commerce of Afyonkarahisar-Turkey declared that “Italy should have been our partners not rivals in the natural stone industry because not only Turkish but also Italian natural stone companies could not generate enough revenues and profits” (Gürel, 2008). Firstly, for these reasons, the concepts of strategic alliances, supply chain management and strategic supplier alliances are explained. Secondly, the competition level of the natural stone industry and natural stone supply chain are analyzed. Thirdly, managers’ attitudes and behaviors towards strategic supplier alliances in natural stone industry are investigated. Lastly, the survey results are presented.

LITERATURE REVIEW

The strategic supplier alliances have been conceptualized with two components, supply chain management and strategic alliances and contained important parts of them (Barutçu, 2007b).

Supply Chain Management and Strategic Alliances

The supply chain management has been considered as the most popular operations strategy for improving organizational competitiveness in the twenty-first century, because this system incorporates the entire exchange of information and movement of products between suppliers and final customers, including manufacturers, distributors, retailers, and any other companies within the extended supply chain (Gunasekaran et al., 2008). The Global Supply Chain Forum defines Supply Chain Management as the integration of key business processes from end user through original supplier that provides materials, products, services, and information that add value for customers and other stakeholders (Lambert et al., 1998).

The competitiveness in global economy requires companies to focus on core competencies, reduce their number of suppliers and develop strong partnership relationships built on shared information and trust with the remaining suppliers. The trend to outsource more materials and services made companies more reliant on their sources of supply. This led to a move towards increasingly collaborative supplier relationships (Stuart and McCutcheon, 1996: Stuart and McCutcheon, 2000). Today, in order to emphasize core competencies and skills, companies assume narrow and specialized roles within supply chains while they ally themselves with supply-chain partners for mutual benefits (Myhr and Spekman 2005).

The strategic alliances can be defined as a long-term cooperative arrangement between two or more independent companies that engage in business activities for mutual economic gains (Tsang, 1998). The strategic alliances provide benefits to companies that can’t obtain alone. There are several reasons for the formation of strategic alliances. They may be formed to enter new business, gain quick access to new market, overcome trade barriers, share risks, absorb a key local competitor, and avoid predatory competition (Hitt et al., 1995). Joint ventures, licensing, franchising, equity ownership and marketing, distribution or logistics-based alliances are well-known types of strategic alliances. There are several well-known successful examples of strategic alliances in different industries such as Mercedes and Chrysler, GM and Toyota, Canon and Kodak, Siemens and Philips etc. Most of them are actually among international companies like Ford and Volkwagen for sharing a distrubition and service center in South America and Ford and Nissan for building minivans in the USA (Griffin, 1999). Briefly, there are 37,538 strategic alliances in the USA, 9,417 strategic alliances in Japan and just 212 strategic alliances in Turkey between 1990 and 1999 among 30 OECD countries (Tekinay, 2004).

The success of strategic alliances in a supply chain requires seeking close, long-term working relationships with critical suppliers, and then developing interactive buyer–supplier relationship through sharing information, jointly solving problems, of involving suppliers in the early stage of the product and process development (Spekman et al., 1998). Because many companies have escalated their level of outsourcing, they are now forming long-term strategic alliances with their suppliers referred as strategic supplier alliances (Lin and Chen, 2004).

Strategic Supplier Alliances

Individual businesses no longer compete as autonomous entities but rather by joining a supply chain alliance due to the highly competitive business situation. Therefore, suppliers, manufacturers, logistic companies and retailers in the supply chain always forge stronger alliances, vertically or horizontally, to compete against other supply chains (Lin and Chen, 2004). The strategic supplier alliance, also termed as a supply chain partnership, is a relationship formed among companies in the supply chain to achieve specific objectives and benefits. This specific alliance is usually formed to increase operational performance of each member through reductions total production, inventory, and quality control costs, and increased shared information and profits. Theoretically within a strategic supplier alliance, traditional competitive barriers between supply chain members are mitigated to create mutually beneficial relationship, thus leading to increased information flows, reduced uncertainty, and a more profitable supply chain. Rather than concerning themselves only with price, manufactures are looking to suppliers to work cooperatively in providing improved service, innovations and product design (Maloni and Benton, 1997). Furthermore, the strategic supplier alliances

emphasize a direct, long-term association, encouraging mutual planning, problem solving, improvement and success sharing. Mutual problem solving can result in a win-win solution among partners, because this can help to improve quality, performance, reduce cost etc. after establishing Strategic Supplier Alliances. Supply quality can be improved through forming Strategic Supplier Alliances with key and few important suppliers (Maloni and Benton, 1997).

A fundamental purpose of strategic supplier alliances is to enhance the long-term competitiveness of strategic partners in the supply chain. In order for strategic supplier alliances to be viewed as strategic, they must enable the cooperating companies to achieve some type of competitive advantage in the supply chain. Although some of them are ended, Laura Ashley and Business Logistics Services, McDonald’s and Coca Cola, McDonald’s and Disney, Vestel and Horoz Logistics, E-stores and Superonline, ITO Kilit and Ingersoll Rand, Aydınlı Textile Group and Pierre Cardin are examples of the effective strategic supplier alliances. A distribution-based strategic supplier alliance exists between Laura Ashley and Business Logistics Services, a subsidiary of Federal Express. Business Logistics Services has taken over Laura Ashley’s distribution operation. Business Logistics Services restructure, improve and manage every aspect of flow of goods and information within the Laura Ashley supply chain (Albaum et al., 1995). The strategic supplier alliances between Vestel and Horoz Logistics is an example of logistics-based and between Aydınlı Textile Group and Pierre Cardin is an example of production-based strategic supplier alliances.

As suppliers play very important role for competitiveness of the companies, many of them are facing the challenge of selecting the right suppliers in order to enhance the likelihood of success of their strategic alliances and also improve the performance, innovation, competitiveness, and long-term survival of the members of the supply chain (Famuyiwa et al., 2007). There are many studies for selecting the most favourable companies in the supply chain. For example, Lin and Chen (2004) employed the fuzzy decision-making procedures with 183 evaluation attributes to select appropiate suppliers for alliances. Famuyiwa et al. (2007) presented a fuzzy logic-based model to handle the vague and imprecise information available during the early formation of strategic partnerships. Büyüközkan et al. (2008) proposed a multi-criteria decision-making approach to effectively evaluate e-logistics-based strategic alliance partners. Hereby, companies should select their strategic partners in a specific supply chain carefully.

To determine the critical factors associated with the success of strategic supplier alliance is neccessery. For example, Hoffmann and Schlosser (2001) identified the eight critical factors so as to have effective partners as following; (1) precise definition of the rights and duties of the partners, (2) contribution of specific strengths based on complementary resources, (3) establishing required resources, (4) awareness of time requirements, (5) equal contributions from all partners, (6) deriving alliance objectives from business strategy, (7) building trust, and (8) speedy implementation and fast results.

There are four main partners of strategic supplier alliances - Manufactures-Suppliers-Customers-Logistics Providers. They can be formed among suppliers, manufactures, customers and third party logistics (3PL) or fourth party logistics (4PL) providers. Adopters of the supply chain language focus on the flow from source (suppliers) to sink (customers). Another set of common terms in the supply chain language are upstream and downstream partners. These terms reflect the continuous nature of the physical supply process using a flow. Upstream partners refer to suppliers, but downstream partners refer to customers (wholesalers, distrubitors, and retaliers). The strategic supplier alliances include links upstream (supplier-manufacturer or manufacturers-suppliers-logistics providers) and downstream (manufacturers-customer or manufactures-customers-logistics providers) strategic supplier alliances (Sherer, 2005: Barutçu, 2007b).

Because managing a complex natural stone supply chain requires coordination all many activities performed by many suppliers, the forming strategic supplier alliances is very important strategy in the natural stone industry as much as many industries.

NATURAL STONE INDUSTRY AND NATURAL STONE SUPPLY CHAIN

In the global natural stone industry, international competition is observed among limited countries like Italy, Spain, Portugal, Greece, Turkey, Iran, India, Brazial, Mexico, Peru, Egypt and China which have had important progress in recent years. Today, twelve countries account for 73% of the world natural stone production. Turkey’s natural stones production have grown tremendously in the last few years, and Turkey is in 7th _{place among natural stone producers, and 12}th _{among exporting countries. Thus, Turkey, with an}

important place in terms of the world’s travertine reserves, has a very high market opportunity with its variety of natural stones having about 400 different colors and texture qualities (Çalapkulu, 2003: Nasuf,

2003). Turkish natural stones present much variety of colors, and are well adapted interior and exterior decoration purposes in buildings. Especially, Denizli Travertine is very special natural stone mined in limited countries in the world. Although Turkey is rich in terms of the marble and travertine reserves, it is not up to the sufficient production level with respect to reserves. Turkey has almost 40% of the total marble and travertine reserves or block production capacity. However, only 1% of these reserves are currently being utilized and the marble and travertine production of Turkey have shown a gradual increase in production and export in the world starting from 1980s (Çetin, 2003). In other words, Turkey provides approximately 3% of the world natural stone production and exports just a little more than 2% of total exports by weight (Çalapkulu, 2003).

The natural stone companies are inextricably connected together all through the entire sequence of events that extract of blocks from quarries through to the ultimate customer as processed natural stones. The generic supply chain of natural stone industry and the various stages are illustrated in Figure 1.

Figure 1. Natural Stone Supply Chain

Extraction of natural stone blocks from quarries Block cutting and dispatching from quarry to processing Raw Rough Material Blocks “Natural Stone” - Splitting - Sizing - 1st _{Honning - Packaging}

Semi _{- Filling Natural - Stocking}

Finished

“Splits” - 2

nd _{Honning Stone - Loading}

Tiles - Taking orders

- Polishing

Architects

Distributors Wholesalers Retailers Customers

Information flow Product flow (transportation activities)

The natural stones go through several stages prior to final customers. There are many processes, suppliers and customers in the natural stone supply chain. Extraction of natural stone blocks from quarries, trasportation to processing plants and block cutting are the main three stages. After cutting rough blocks, the processes of splitting, first honning, filling, second honning, polishing, sizing, packaging, stocking and loading activities are implemented. Moreover, architects are added in natural stone supply chain because of their influences to in the special construction projects. The most important stage is to take orders and distribute the processed natural stones to final customers. Therefore, collaboration among suppy chain members is necessary to improve their competitiveness in this natural stone supply chain. If they establish strategic supplier alliances in their suppy chain, they will have very important competitive advantage in the highly competitive natural stone industry.

THE RESEARCH FOR EXPOSING MANAGERS’ ATTITUDES

TOWARDS STRATEGIC SUPPLIER ALLIANCES

The strategic supplier alliances in the natural stone supply chain and industry are formal alliances of quarry owners, manufactures, distributors, architects and retailers. Despite the importance of strategic supplier alliances in many industries, there are limited studies for natural stone industry. Thus, the purpose of this empirical study is to determine the probability, conditions, criterias and barriers of forming strategic supplier alliances in natural stone industry.

Research Methodolgy

The data was collected from the managers of natural stone companies in several cities in Turkey and especially in Denizli, which is the one of the most important region for the quarrying natural stones such as travertina and marbels. There are 15 questions on three sections designed for the questionnaire. The four of them are the characteristics of respondents and companies. The two of them are about the future of natural stone industry in Turkey and in the world. The one of them are whether respondents wanted to form strategic supplier alliances or not. The one of them is what kinds of strategic supplier alliances are preferred. The rest of them are open-ended questions related to strategic supplier alliances in natural stone industry. Some of the open-ended questions are (1) what do they think about the future of natural stone industry in Turkey and in the world? (2) What do they think about strategic supplier alliances in natural stone industry? (3) Have you ever wanted to establish strategic supplier alliances with the members of natural stone supply chain? (4) What are the main characteristics of the companies that you want to form Strategic supplier alliances? (5) Do you want to for Strategic supplier alliances with Italy, Spain and China or other countries? etc.

Both face-to-face and online survey methodologies are used to collect primary data. The face to face surveys and many informal negoations were conducted with the managers of natural stone companies from 8th _{- 12}th

April 2008 in Denizli-Turkey. In the online survey, the questionnaires were sent to several companies’ e-mail adresses obtained from the list of marble exporter companies (General Secretariat of Istanbul Mineral and Metals Exporters' Association, 2008) and marbletrade@yahoogroups.com. In the sampling stage, the respondents are chosen with judgment sampling method. The data collection was completed in 15th _April,

2008, and 32 completed questionnaires were returned. In data analysis stage, the frequencies of six questions used nominal scale are given, and the answers of nine open-ended questions coded and categorized for analysis purposes.

Research Findings

As seen in Table 1, in terms of the respondents’ positions, among the 32 respondents, 50% were general manegers, and 28,13% were owners of natural stone companies. In terms of the year of the company foundation, 15 of them were found between 1996 and 2000, 8 of them were found between 1991 and 1995, and 5 of them were found before 1990. In terms of company sizes, there are 21 natural stone companies employed less than 100 workers, 7 companies employed between 101 and 200 workers. Among the 32 companies, 13 of them have between 4-6 quarries, and 4 of them have more than 10 quarriers. To sum up, most of the respondents are general managers of companies, most of the natural stone companies have been found since 2000, employed less than 100 workers, and have less than 6 quarriers. Therefore, the surveyed companies are mainly composed of small and medium sized companies (Table 1).

Table 1: The Characteristics of Respondents and Natural Stone Companies

Variable Frequency % Variable Frequency %

Respondent’s Positions The number of workers

Owners 9 28,13 Up to 100 21 65,63

General Manager 16 50,00 101-200 7 21,88

Marketing Manager 5 15,63 201-300 2 6,25

Others 2 6,25 301-400 2 6,25

The year of foundation More than 401 - -

Before 1990 5 15,63 The number of quarriers

1991-1995 8 25,00 1-3 8 25,00

1996-2000 15 46,88 4-6 13 40,63

2001-2005 4 12,50 7-9 7 21,88

After 2006 - - More than 10 4 12,50

According to the categorized answers of open-ended questions, some of the important points were given as following;

• The twenty-five respondents think that there is tremendous market potential in developed countries in spite of the economic impact of the mortgage crisis in developed countries like USA and England, and expect that the production growth rate will be more than consumption growth rate of the natural stones. They are just worried about the advantages of Chinese low cost production. Thus, most of the respondents see increased competition as a threat to decrease their profit margin and increase customers’ expectations. At the same

time, the twenty respondents anticipate extreme reductions in their profit margins due to decreasing natural stone prices down. Despite increased competition and decreased their profit margin, the manager and owner of companies are hopeful the future of the natural stone industry.

• The most of the respondents remain weak to the competition in global natural stone markets and want to increase their competitive advantages by decreasing their costs and getting incentives from the Turkish Government. Therefore, they expect that the Turkish government will increase financial and tax incentives, and solve their problems about transportations and logistics.

• The most of the respondents are increasingly aware that they need to work together with their suppliers and customers so as to best serve their customers. They have positive attitudes towards strategic supplier alliances, and hope to strengthen their competitive positions in the natural stone markets through the strategic supplier alliances. Concequently, they are ready for strategic supplier alliances in their natural stone supply chain.

• Twelve respondents are eager to establishing marketing-based strategic supplier alliances with distributors, wholesalers and retailers. The seven respondents are interested in forming strategic supplier alliances with companies supplied machines, diamonds and equipments for natural stone production. The three companies formed Strategic supplier alliances with their distributors and retailers. In other word, there are nineteen respondents who are eager to establishing strategic supplier alliances.

• Most respondents featured the partner selection in the supply chain. They take into consideration financial power, recognized brands, quality, the number of customers and selling points for partner selection.

• In order to work together successfully in strategic supplier alliances, some respondents think that there should be the supports of owners and managers, open communication, trust, commitment, collaboration, cooperation, disposed of information sharing, joint problem solving, the same long-term strategic goals and strategic fit among partners. These characteristics are necessary to not only form strategic supplier alliances but also increase the success of strategic supplier alliances.

• In terms of alliances’ forms, most respondents prefer informal structures. For example, twelve natural stone companies established alliances as increased relationship with partners, the seven companies formed as handshake agreements, and the two natural stone companies make formal agreements with logistics service providers for one year. The three companies that produce decorative dimensional stones formed Strategic supplier alliances with quarries. Therefore, there are twenty-four companies formed strategic supplier alliances. On the other hand, the alliances’ forms of merger and create new partnerships are not preferred. • A variety of reasons have been mentioned why they want to form Strategic supplier alliances. According to the survey results, the most cited reasons are to market and export their natural stones more easily, share the potential risk in new markets, work more reliable in highly competitive natural stone industry and enlarge their production capacities. The four respondents are interested to access new markets and form strategic supplier alliances with domestics and international companies keen on expanding the markets.

• The eleven respondents want to establish with Italian companies, eight respondents want to establish with Spanish companies, and just three respondents want to form with Chinese companies as production-based strategic supplier alliances. Therefore, the respondents are more enthusiastic to establish production-based strategic supplier alliances with Italian and Spanish companies than Chinese ones.

• According to informal negations with respondents, the some important points are come out as following. (1) The three respondents signify that some of their distributors and retailers do not form long-term strategic supplier alliances because they prefer to import natural stones from different countries or companies so as to decrease risk and get more discounts. (2) The one respondent indicates that a natural stone manufacturer should be a member of the natural stone supply chain in order to decrease the competition level. (3) Just two companies are submitted strategic supplier alliances proposals from their customers. (4) Two respondents indicate that the companies in natural stone industry should establish cost accounting systems for offering a price. (5) The five respondents indicate that the raw or unprocessed natural stone can not be exported and shipped to some countries like China and Italy because the unprocessed and rough natural stones exports are decreasing the international competitiveness of the Turkish natural stone industry. (6) Two respondets claimed that many natural stone companies do not have effective cost management and accounting systems. The lack of cost accounting systems make them offering lower price and decreasing their profits.