nizacija, ' Volume 47, Nu Feb iruary 2014 Contents 1/2014 RESEARCH PAPERS 3 MATJAŽ MALETIC, DAMJAN MALETiC, JENS J. DAHLGAARD, SU MI DAHLGAARD-PARK, BOŠTJAN GOMIŠCEK 14 MIRJANA KLJAJIČ BORŠTNAR, ANDREJA PUCIHAR 24 WtODZIMIERZ SROKA, JOANNA CYGLER, BOZENA GAJDZIK 35 TATJANA KOZJEK, NINA TOMAŽEVIC, JANEZ STARE 52 JOANNA KUROWSKA-PYSZ The Relationship between Sustainability-Oriented Innovation Practices and Organizational Performance: Empirical Evidence from Slovenian Organizations Impacts of the Implementation of a Project Management Information System - a Case Study of a Small R&D Company The Transfer of Knowledge in Intra-Organizational Networks: A Case Study Analysis 66 ANDREJA KVAS, JANKO SELJAK, JANEZ STARE Work-Life Balance by Area, Actual Situation and Expectations - the Overlapping Opinions of Employers and Employees in Slovenia Shaping of Competencies of Managers in Academic Incubators of Entrepreneurship in Poland Training Needs Assessment for Leaders in Nursing Based on Comparison of Competency Models Editorial office: University of Maribor, Faculty of Organizational Science, Založba Moderna Organizacija, Kidričeva 55a, 4000 Kranj, Slovenia, Telephone: +386-4-2374226, E-mail: organizacija@fov.uni-mb.si, URL: http://organizacija.fov.uni-mb.si. 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Ganster, Colorado State University, USA Jože Gričar, University of Maribor, Slovenia Werner Jammernegg, vienna University of Economics and Business Administration, Austria Marius Alexander Janson, University of Missouri-St. Louis, USA Stefan Klein, University of Münster, Germany Miroljub Kljajič, University of Maribor, Slovenia Aleksandar Markovič, University of Belgrade, Serbia Hermann Maurer, Technical University Graz, Austria Matjaž Mulej, University of Maribor, Slovenia Valentinas Navickas, Kaunas University of Technology, Lithuania Ota Novotny, University of Economics, Prague, Czech Republic Milan Pagon, Zayed University, Dubai, United Arab Emirates Bjorn Paape, RWTH-Technical University Aachen, Germany Dušan Petrač, NASA, Jet Propulsion Laboratory, California Institute of Technology, USA Hans Puxbaum, vienna University of Technology, Austria vladislav Rajkovič, University of Maribor, Slovenia Gabor Rekettye, University of Pecs, Hungary Henk G. Sol, Faculty of Economics and Business, University of Groningen, Netherlands velimir Sriča, University of Zagreb, Croatia Paula Swatman, University of Tasmania, Australia Brian Timney, The University of Western Ontario, Canada Maurice Yolles, Liverpool John Moores University, UK Douglas R. vogel, Harbin Institute of Technology-HIT, School of Management, China Gerhard-Wilhelm Weber, Middle East Technical University, Turkey Stanistaw Wrycza, University of Gdansk, Poland Hans-Dieter Zimmermann, FSH St. Galen University of Applied Sciences, Switzerland DOI: 10.2478/orga-2014-0001 The Relationship between Sustainability- Oriented Innovation Practices and Organizational Performance: Empirical Evidence from Slovenian Organizations Matjaž Maletič1, Damjan Maletič1, Jens J. Dahlgaard2, Su Mi Dahlgaard-Park3, Boštjan Gomišček1* 1University of Maribor, Faculty of Organizational Sciences, Kidričeva cesta 55a, SI-4000 Kranj, Slovenia; matjaz.maletic@fov.uni-mb.si, damjan.maletic@fov.uni-mb.si, bostjan.gomiscek@fov.uni-mb.si (corresponding author) 2Linköping University, Department of Management and Engineering, Sweden; jens.jorn.dahlgaard@liu.se 3Lund University, Department of Service Management, Sweden; Su_Mi.Dahlgaard-Park@ism.lu.se Background and Purpose - The purpose of this paper is to empirically analyse the effects of sustainability-oriented innovation practices on the overall organizational performance. Further, this paper also aims to advance understanding of the measurement of corporate sustainability practices with the focus on innovation dimensions. Design/Methodology/Approach - The study uses data obtained from a survey of 116 organizations encompassing both the manufacturing and service industries in Slovenia. Descriptive statistics were used in order to determine the level of sustainability-oriented innovation practices deployment. Exploratory factor analysis was applied to extract the underlying factors and to provide a basis for assessing their reliability and validity. In addition, regression analysis was used to quantify the effect of sustainability practices on the organizational performance. Results - Data analysis result showed that sustainability-oriented innovation practices are significantly associated with organizational performance. Therefore, empirical evidence from this research confirmed the premise that building innovation competencies and integrating innovation activities in organization's processes lead to performance benefits. This contributes to the debate about the potential for organizations to be sustainable and competitive. Conclusion - The presented research on corporate sustainability provides important theoretical and practical insights on which the deployment of sustainability-oriented innovation practices are conducive to fostering a broader set of performance benefits. As such, managers should increase organizations' capacity for innovation which can be beneficial in terms of performance implications and achieving sustainability goals. Keywords: corporate sustainability, sustainability-oriented innovation, organizational performance, empirical study 1 Introduction The role of business in society has been a concern both of scholars and practitioners for a long time (Salzmann et al., 2005). In this sense, Delai and Takahashi (2013) points out that sustainable development actions and initiatives have become vital aspects for any organization. A sustainable organization is one that contributes to sustainable development by delivering simultaneously economic, social, and environmental benefits—^the so-called triple bottom line (Hart and Milstein, 2003). Many authors have approached this issue by discussing the business case for corporate sustainability, including, Dyllik and Hockerts (2002) and Salzmann et al. (2005). In general, the business case empha- Received: 13' December 2013; revised: 16' January 2014; accepted: 27 January 2014 sises that business processes directed at achieving sustainable development sense are necessary for the financial growth of an organization. The business case for sustainabil-ity is often used to provide motivations for an organization to integrate aspects of sustainability into business processes (Asif et al., 2011). In addition, many studies have discussed the business case for a sustainability innovation (e.g. Wagner, 2008). In this regard, the challenge for business is to develop innovation strategies in order to respond to needs and expectations of a wide array of stakeholders (Ayuso et al., 2006) and at the same time justify economic rationale behind these sustainability activities (Schaltegger and Wagner, 2006). Furthermore, van Kleef and Roome (2007) suggest that developing competencies that foster innovation for sustainable development can be perceived as the basis of competitiveness. For example, these competencies can enable organizations to offer products and services that create value for customers and to generate new products and services, and therefore adapting to rapidly changing environment faster than competitors (van Kleef and Roome, 2007). An improved understanding of the link between sus-tainability-oriented innovation practices and organizational performance does not just contribute to a debate about the business case for sustainability (Schaltegger and Wagner, 2006), but also contribute to the knowledge of measuring sustainability-oriented innovation activities (Pujari, 2006). However, few studies have empirically investigated the specific organizational performance outcomes concerning sustainability-oriented innovation. Thus, the following research question is addressed in this study: Can an organization benefit by creating and deploying sustainability-oriented innovation practices? Therefore, this study adds to the emerging dialogue on corporate sustainability by empirically investigating the performance benefits of business activities that are directed towards sustainability through innovation. The paper is structured as follows: firstly, the literature review that underpinned this research and the methodology employed to carry it out are presented in sections 2 and 3, respectively. Then, in section 4 empirical evidence on the relation between sustainability-oriented innovation practices and organizational performance is presented. In section 5, we conclude with a discussion of the results, implications, and issues for further research. 2 Literature review 2.1 Sustainability practices Recognizing the multi-dimensional nature of sustainabil-ity, a rapidly growing literature documents a wide range of specific sustainability practices being implemented by organizations (see, for example, Hahn and Scheermesser, 2006; Collins et al., 2010; Maletic et al., 2011; Fairfield et al., 2011). One key starting point in the debate on sustain-ability management is the inclusion of stakeholders and the integration of their respective demands (Seuring and Gold, 2013), which is suggested to be a critical process that helps organizations to understand their key environmental and social impacts (Rocha et al., 2007). As far as corporate environmentalism is concerned, considerable attention has been paid in the literature to the eco-efficiency (Cote et al., 2006) in terms of reducing energy and material intensity, utilizing renewable energy sources, and in the context of emissions reduction of pollutants and waste minimization. Furthermore, apart from talking the environmental problems, many other practices aim at creating more sustainable workplaces by focusing on worker health and safety aspects, employee engagement, equity as well as quality of life (e.g. Hutchins and Sutherland, 2008). Employee centred sustain-ability practices are also related to the sustainability oriented organizational learning (Siebenhuner and Anold, 2007). Recently, literature has paid attention to the sustainability-related innovation practices, predominantly through the search of the ways on how to manage product development in a more sustainable way (Hallstedt et al., 2013). Therefore, a number of fields, such as corporate envi-ronmentalism, corporate social responsibility, stakeholder, stakeholder theory and sustainable development, have contributed to the expansion of corporate sustainability literature. Due to difficulties in defining the concept of corporate sustainability as well as the multidisciplinary nature of sustainability, there are different approaches in conceptualizing and operationalizing sustainability constructs. One of the most commonly used measures are derived from established sustainability indexes, such as the SAM Dow Jones Sustainability Index, the KLD Social Index or the GRI performance indicators. Most of these sustainability initiatives are developed as a normative frameworks or process guidelines (Ligteringen and Zadek, 2005). 2.2 Organizational performance The concept of organizational performance in literature refers normally to financial aspects such as profit, return on assets (ROA), return on equity (ROE) and economic value added (EVA). While financial measures of performance are among the most widely used by businesses, many researchers have criticized the short-term thinking and emphasize the importance of the non-financial components of performance measurement (e.g. Kaplan, 1983; Otley, 1999). Consequently, as a response to relatively narrow point of view of performance measuring, a more balanced approaches of performance measurement systems (PMSs) to include financial and non-financial performance measures, as well as explaining cause-and-effect relationships between the various measures, and providing better insight in terms of links between PMS and organization's strategy have been proposed (Kaplan and Norton, 1996; Neely and Adams, 2000). Thus the two most well-known and frequently used models for performance management - the balanced scorecard and the European Foundation for Quality Management's (EFQM) Excellent Model - reflect the development. The key in developing these models is to construct the multiple organizational performance measures so that they are properly integrated and directed towards achieving organizational goals and strategy. Various Quality models, among others, Deming model and Malcom Baldridge model are some forerunners of the integrated performance management models of which focuses were paid in multiple performance variables. In line with these developments, Gomes et al. (2011) further suggest that organizations should (among other performance measures) also pay attention to softer performance measures, such as social responsibility. Based on corporate social performance and corporate financial performance, Fauzi et al. (2010) proposed a multi-dimensional concept of triple bottom line (TBL) as sustainable corporate performance. Considering the academic perspective, a number of studies have applied different ways to measure organizational performance. As a result, different measures of overall organizational performance have been used to the same phenomenon, i.e. overall organizational performance. The most frequently used measures of organizational performance in empirical studies are financial performance, market performance, quality performance, product innovation, process innovation, operational performance and customer satisfaction (e.g. Lin and Kuo, 2011; Antony and Bhattacharyya, 2010; Fuentes-Fuentes et al., 2004). As pointed out by Tangen (2003), different performance dimensions may have to be combined to get a balanced and complete view of the organization's performance. For instance, Venkatraman and Ramanujan (1986) consider three aspects of performance, among them are financial performance, business performance, and organizational effectiveness and the later have been subsequently known as organizational performance. They suggested that a broader conceptualisation of the organizational performance would (in addition to financial indicators) include operational indicators as well when measuring the organizational performance. The operational indicators may include such measures as new product introduction, product quality, manufacturing value-added and marketing effectiveness. 2.3 Sustainability and innovation As stated by Klewitz and Hansen (2013), the debate on organizations that strive to achieve the goals of sustainable development through innovation was initially focused on eco-innovations. In general, one can argue that eco-inno-vations include several dimensions, such as: design dimensions, user dimensions, product service dimensions, governance dimensions and the engagement of key stakeholders in the innovation process (Carrillo-Hermosilla et al., 2010). The ultimate goal of putting efforts to eco-innovations is to provide new business opportunities and contribute to a transformation towards a sustainable society (Carrillo-Hermosilla et al., 2010). Generally, eco-innovations can be divided in the three main categories, as follows (Rennings et al., 2006): ■ Process innovations enable the production of a given amount of output (goods, services) with less input. The latter can be interpreted in terms of the eco-efficiency (Cote et al., 2006) which aims to reduce the material and energy intensity. Process innovations can be further subdivided into innovations in end-of-pipe technologies and innovation in integrated technologies categories (Rennings et al., 2006). ■ Product innovations encompass the improvement of goods and services or the development of new goods categories (Rennings et al., 2006). It is suggested that most of the sustainability-oriented product/service innovations relate to incremental or evolutionary innovation (e.g. remanufactured products, recycled content, organic cotton-based clothing, and water-based paints) (Pujari, 2006). ■ Organizational innovations include new forms of management systems. This could also include environmental management systems (Poksinska et al., 2003). More recently, the trend has moved towards holistic sustain-ability management system standards and guidelines (Maas and Reniers, 2013). Lately, the debate on sustainability and innovation has expanded its focus to include a wide range of themes such as sustainability-related innovation (e.g. Wagner, 2008; Klewitz and Hansen, 2013), sustainable innovation (Boons et al., 2013), CSR-driven innovation (e.g. Hockerts, 2008) as well as the discussion regarding the development of more sustainable management systems (Maas and Reniers, 2013). 3 Methods 3.1 Sample and data collection A survey questionnaire was mailed to the managers of a random sample of Slovenian organizations. To ensure a reasonable response rate, the survey was sent in two waves. The questionnaire with the cover letter indicating the purpose and significance of the study was emailed to target respondents. Managers were chosen because they were considered to be familiar with the implementation of sustainability practices and performance indicators. A total of 116 usable responses were received from a sample of Slovenian organizations. The profile of the organizations and respondents is provided in Table 1. Organizacija, Volume 47 Research papers Number 1, February 2014 Table 1. Profile of the respondents in our sample Sample distribution Percentage Respondent profile Middle management 38.6 Frontline management 22.8 Top management 21.1 Data not available 17.5 Total 100 (N=116) Organization profile (employees) 0-5 6.0 5-50 18.1 50-250 31.9 250-500 9.5 over 500 26.7 Data not available 7.8 Total 100 (N = 114) 3.2 Measures Independent variables: sustainability-oriented innovation practices. Although our study mostly used multi-item scales that were verified through various analyses, appropriate scale for sustainability-oriented innovation practices was not available. Hence, the domains of construct were identified via a thorough review of the literature. Several items were operationalized in relation to eco-innovation activities in product development process (e.g. Pujari, 2006), stakeholder integration in product development process (e.g. Seuring and Gold, 2013) as well as in relation to business process improvements (e.g. Cote et al., 2006). The items measuring sustainability oriented learning and the development of competencies supporting innovation were developed based on the literature review related to sus-tainability and organizational learning (e.g. Lozano, 2011; Siebenhuner and Anold, 2007; van Kleef and Roome, 2007). Therefore, a diverse range of operationalizations has emerged for the sustainability-oriented innovation practices. The complete items of these scales are presented in Table 2. Dependent variable: organizational performance. While recognising that performance is multi-dimensional concept (Chenhall and Langfield-Smith, 2007), we designed our survey instrument to capture the most commonly studied dimensions of organizational performance. The organizational performance sub-constructs were operationalised by developing several items based on a literature review (e.g. Baird et al., 2011; Kaynak, 2003; Martensen et al., 2007; Prajogo and Sohal, 2003; Veleva and Ellenbecker, 2001; Hutchins and Sutherland, 2008). Therefore, we understand the concept of organizational performance to be composed of the following sub-constructs: financial and market performance, quality performance, innovation performance, environmental performance and social performance. A resulting four-item scale captures the extent to which organizations achieve business success. A four-item scale measures quality performance and captures the extent to which organizations have improved quality of their products and services during the last 3 years and meet customer satisfaction. A four-item scale measures innovation performance in terms of product and process innovation. A four-item scale measures environmental performance and captures the extent to which organizations achieve efficiency of material and energy consumption. Finally, a four-item scale measures social performance from the employee perspective (satisfaction, motivation and turnover ratio). The corresponding items for measuring the organizational performance are presented in Appendix A. 4 Analysis and Results 4.1 Measurement and validation of constructs Sustainability-oriented innovation practices. The scales for measuring sustainability-oriented innovation practices were subjected into validity and reliability tests. The construct validity was assessed merely using exploratory factor analysis (EFA) based on oblique rotation (Direct Oblimin). The scale reliability was tested by calculating its Cronbach's alpha. Additionally, we performed corrected item-total correlations (CITCs) in order to strengthen validity and reliability results. The results of the validity and reliability test are presented in Table 2. The result of factor analysis supports the validity of the two sub-constructs as indicated by the amount of variance explained which exceeded 50%, and the loading factors of all items within each scale exceeded 0.5 (Hair et al., 2010). Table 2. Scale validity and reliability Factor Items Factor loading CITC SOPPD We consider sustainability as an opportunity for product/service differentiation Multiple departments (such as marketing, manufacturing, and purchasing) are working together on sustainability related initiatives The organization undertakes regularly business process reengineering with a focus on green perspectives The organization makes improvements to radically reduce environmental impacts of products and services' life-cycles Preliminary market assessments are made to obtain customers' view of green product ideas We search for external sources (e.g. partners, customers, research institutions) of knowledge in our search for innovative ideas related to sustainability *The organization is characterised by a learning culture stimulating innovation for sustainability *The business processes are flexible allowing us to achieve high levels of responsiveness towards key stakeholder needs and demands *The organization involves key non-market stakeholders issues (such as local communities, general public, governments and NGOs) early in the product/service design and development stage SOICD We develop new competencies supporting innovation in the organization We continuously try to strengthen innovation skills in key areas where we have no prior experiences The organization is constantly exploring new/different ways to understand the expectations and requirements of key stakeholders We acquire innovative environmental-friendly technologies and processes *The organization involves key market stakeholders (customers, suppliers) early in the product/service design and development stage ^Excluded from further analysis SOPPD - sustainability-oriented process and product deployment SOICD - sustainability-oriented innovation competencies deployment .974 .761 .753 .714 .655 .643 .532 .503 .386 -.931 -.851 -.814 -.656 -.484 .733 .610 .776 .773 .626 .668 .749 .374 .473 .752 .755 .667 .644 .496 As shown in Table 2, the results show two factors with eigenvalues greater than one, accounting for 58.168 % of the variance (K-M-O statistic 0.891; Bartlett statistic 898.029; significance 0.000). Thus, a model with two factors may be adequate to represent the data. To ensure a convergent validity a cut-off value of 0.6 and above is considered in this study. The first factor shows the variables having a common underlying dimension of 'sustainability-oriented process and product deployment (SOPPD)'. The main variables, which load heavily on this factor, are related to the eco-innovation activities in product development process as well in relation to innovative sustainability solutions in business processes. The second factor, named 'sustainability-oriented innovation competencies deployment (SOICD)', includes the variables related to developing new knowledge and skills aiming to foster sustainability-related innovations. The alpha coefficients have the acceptable value ranging from 0.85 to 0.89, with the lowest value for the variable SOICD and the highest value for the variable SOPPD. Therefore, the alpha value for each construct was well above the recommended value of 0.70, which is considered satisfactory for exploratory research (Hair et al., 2010). As shown in Table 2, the corrected item-total correlation scores range from 0.37 to 0.78. The rules of thumb suggest that the item-to-total correlations should exceed 0.5 (Hair et al., 2010). Accordingly, some items are considered to be excluded from further analysis (in table marked with an »*«). Organizational performance. Organizational performance measures were assessed via responses to the question 'Please select the number (on a 5-point Likert-type scale) that accurately reflects the extent of your organization's overall performance over the last three years on each of the following'. The following dimensions of organizational performance were included in the questionnaire: financial and market performance, quality performance, innovation performance, environmental performance and social performance. In order to confirm the latent factor structure for measured variables, an exploratory factor analysis (EFA) was performed using the principal components analysis (PCA) with the Varimax rotation method. The results show five factors with eigenvalues greater than one, accounting for 69.961% of the variance (K-M-O statistic 0.869; Bartlett statistic 1497.571; significance 0.000). In order to guarantee the convergent and discriminant validity, the low loading items (< 0.6) were excluded from the subsequent data analysis. Factor loading of organizational performance items are presented in Appendix A. 4.2 Descriptive statistics Prior to further statistical analysis, we first investigated the descriptive statistics for study variables. Means, standard deviations, and bivariate correlations are presented in Table 3. Observing the overall sub-constructs, we can see that the highest mean value corresponds to the SOICD (3.94), while the lowest value corresponds to the financial and market performance (3.21). However, respondents' organizations appeared to be implementing sustainability-oriented innovation practices to a relatively strong extent (means of 3.89 and 3.94, respectively). As expected, the results indicated positive relationships between sustainability-oriented innovation practices and all organizational performance dimensions, with correlations ranging from 0.32 to 0.56 (p < 0.01). Furthermore, SOPPD shows the strongest correlation with the overall organizational performance (r = 0.543, p<.001), and the lowest correlation with the financial and market performance (r = 0.315, p<.001). Regarding the SOICD, the strongest correlation was observed in the case of overall organizational performance (r = 0.543, p<.001), while the lowest value was found in the correlation between SOICD and environmental performance (r = 0.333, p<.001). 4.3 Regression analysis First, mean scores were calculated from the scale's items to generate the composite scores for the organizational performance. This newly created composite variable was subsequently used in the regression analysis. Furthermore, the normality of the composite score was checked and the result indicated no major violation, with skewness and kurtosis values well within the accepted range (± 1 and <3, respectively). Additionally, the Kolmogorov-Smirnov test of normality supports the aforementioned arguments (K-S = 0.057, p = 0.200). Table 4 summarises the regression results for the effects of sustainability-oriented innovation practices on the organizational performance. The results in Table 4 show that the overall regression model is significant with an F value of 33.047 (P = 0.000). Furthermore, to examine multi-collinearity, we calculated variance inflation factors (VIF) for the regression equation. The VIF for the Model + was 1.62, which is well below the rule-of-thumb cut-off of 10 (Field, 2005). Table 3. Means, standard deviations and correlations Mean SD (1) (2) (3) (4) (5) (6) (7) (1) SOPPD 3.89 .76 (2) SOICD 3.94 .75 .617** (3) Organizational performance 3.48 .66 .543** .561** (4) Financial and market performance 3.21 .91 .315** .361** .829** (5) Quality performance 3.81 .68 .335** .459** .708** .526** (6) Innovation performance 3.48 .96 .472** .510** .847** .686** .504** (7) Environmental performance 3.54 .82 .494** .333** .709** .464** .347** .493** (8) Social performance 3.33 .86 .479** .494** .752** .478** .481** .520** .424** **. Correlation is significant at the 0.01 level (2-tailed). Table 4. Results of regression analysis: SOPPD, SOICD, and organizational performance Dependent: organizational performance Model SOPPD SOICD R^ Adjusted R^ F P-value of overall model 0.315** 0.364** 0.375 0.364 33.047 0.000 **P < 0.01 As shown in Table 4, the results of the regression analysis suggest that both sub-constructs of sustainability-oriented innovation practices have a significant relationship with organizational performance (ß = 0.315, p < 0.01; ß = 0.364, p < 0.01 respectively). R square shows that 38% of the variation in organizational performance is explained by the sustainability-oriented innovation practices. Thus, the basic premise which suggests a positive relationship between sustainability practices and organizational performance is supported. 5 Discussion and conclusions Debates relating to corporate sustainability are becoming important subjects of the wide range of management literature in this century (Asif et al., 2011). Organizations are confronted with environmental and social issues in their decisions, not only to take into account moral and legal responsibility that need to be encouraged (Takala and Pallab, 2000), but also to ensure sustainable economic success (Wagner, 2010; Koo et al., 2013). Although researchers have widely discussed the relevant issues of sustainability-oriented innovation (e.g. Wagner, 2008; Klewitz and Hansen, 2013), there is a lack of empirical evidence on the relationship between these activities and overall organizational performance. To fill this existing research gap, this research proposed a novel construct - sustainability-oriented innovation practices - and developed a research framework to further discuss the effect of these practices on the organizational performance. Furthermore, our study underscores previous assertions that organizations can benefit from pursuing sustainabil-ity (e.g. Schaltegger and Wagner, 2006). The results of the regression analysis have confirmed the premise that sustain-ability practices positively influence the organizational performance. As such, the study provides empirical evidence indicating that organization can benefit by obtaining and deploying sustainability-oriented innovation practices. In particular, the results of this study suggest that organizational learning in terms of developing new sustainability- oriented innovation competencies can provide superior performance benefits to the organization. Indeed, several prior studies have suggested that organizational learning with regard to innovation can contribute positively to the sustain-ability (e.g. Lozano, 2011; Siebenhuner and Anold, 2007). In this regard we can argue that developing capabilities and, therefore, acquiring the intangible assets, is essential for future growth and it is needed to successfully integrate and embed the sustainability in every aspect of the organization. Furthermore, the results of this study indicate that organizations can benefit from integrating sustainability aspects in their products and processes, as reflected by the positive and significant effect of SOPPD on the organizational performance. These findings are somewhat supporting the argument that incorporating sustainability activities in product and process development can provide tools and mechanisms to organizations to enhance their economic benefits without affecting environment and communities (Pujari, 2006; Schrettle et al., 2013). Therefore, our study leads us to suggest that organizations should built sustain-ability aspects into tangible and intangible product/process quality characteristics, through a constant focus on stakeholders' wants and needs, and on the basis of principles of continuous improvement. 5.1. Theoretical contributions and managerial implications While drawing on earlier work on performance implications of sustainability management activities (e.g. Wagner, 2008), this research contributes to the literature by focusing on the link between sustainability-oriented innovation practices and organizational performance (e.g. Antony and Bhattacharyya, 2010). Seen in this context, the main theoretical contribution of this study is reflected through the proposal of a novel construct - sustainability-oriented innovation practices - and the successful verification of the effect of these practices on the organizational performance. Additionally, this study considered "sustainability-oriented process and product deployment" and "sustainability-oriented innovation competencies deployment" as the two sub-dimensions of the newly developed construct. This is significant because so far there are only a few empirically based studies that investigate sustainability-related innovations and its performance implications. In this regard, this work can contribute to a better understanding of the underlying dimensions of sustainability-oriented innovation and its relationship with the overall organizational performance. The developed research framework and empirical evidence from this study can provide useful reference for further studies to investigate the relevant literature regarding corporate sustainability, innovation, and performance. In addition, our results also have significant managerial implications. First, organization's competitive advantage can be achieved by focusing on its environment, includ- ing its customers' needs and other stakeholders' demands as well as by interacting with potential partners. Among others, this also requires from organization to change the view of the customer from a passive participant to an active contributor in product development (Witell et al., 2011). Therefore, managers should encourage employees to understand stakeholders' present and future needs as well as to pursue knowledge that is outside the scope of their organization. Considering the intra-organizational creation of new knowledge, managers should take into account cross-functional integration in order to enable employees to share existing knowledge and develop new sustainability-oriented innovation competencies. Second, the capability of an organization to create innovative and sustainable solutions (i.e. process innovations, product innovations and service innovations) can be viewed as organizational resource. Therefore, managers should establish an efficient mechanism to sustain this asset and effectively use it to enhance performance and gain competitive advantages. Accordingly, managers should strive to achieve sustainable innovation excellence in terms of developing innovative new products or services in a way which both in the short term and in the long run satisfies the customers and other stakeholders, such as employees, suppliers and society, in a balanced way (Dahlgaard-Park and Dahlgaard, 2010). 5.2. Limitations and future studies As with all empirical studies, there are a number of limitations and directions for future research. First, the scales that were used to measure the construct 'sustainability-oriented innovation practices' capture only limited dimensions of innovation-related themes. Future research needs to examine the usefulness of additional measures. Secondly, due to a relatively small sample size, care should be taken while generalizing the results. Future research on sustainability-oriented innovation could also be more specific in estimating the relative contribution of each of the sub-constructs to the particular dimension of organizational performance (e.g. comparison of the effects of SOPPD and SOICD on the financial and market performance). Therefore, the results of this study can stimulate further development of theory building and conceptual development within the interdisciplinary field of corporate sustainability, quality management, innovation, and performance. References Antony, J.P. & Bhattacharyya, S. (2010). Measuring organizational performance and organizational excellence of SMEs - Part 1: a conceptual framework. Measuring Business Excellence, 14(2), 3-11, http://dx.doi.org/10.1108/13683041011047812 Asif, M., Searcy, C., Garvare, R. & Ahmad, N. (2011). Including sustainability in business excellence models. 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Links between sustainability-related innovation and sustainability management. SFB 649 Discussion Paper 2008-046. Berlin: Technische Universität München. Retrieved, April 13 from http://sfb649.wiwi.hu-berlin.de/ papers/pdf/SFB649DP2008-046.pdf Witell, L., Löfgren, M. & Gustafsson, A. (2011). Identifying ideas of attractive quality in the innovation process. The TQM Journal, 23(1), 87-99, http://dx.doi.org/10.1108/17542731111097515 Matjaž Maletič is a teaching assistant at Faculty of Organizational Sciences, University of Maribor. His main research interest concerns the quality management, corporate sustainability, integration of quality management and sustainability as well as the overall organizational performance. He holds a bachelor's degree in Wood Science and Technology (University of Ljubljana) and Organization (University of Maribor). He has defended his PhD thesis in September 2013 at the University of Maribor, Faculty of Organizational Sciences. Damjan Maletič is teaching assistant and researcher at the Faculty of Organizational Sciences, University of Maribor. His research activities are mainly devoted to the fields of maintenance management and quality management. At present, his research is focused on studying the interaction between quality management, production and maintenance performance. He holds a bachelor's degree in Wood Science and Technology (University of Ljubljana) and Organization (University of Maribor). He is currently a PhD student at the University of Maribor, Faculty of Organizational Sciences. Jens J. Dahlgaard is Professor Emeritus and previously chair professor at the Division of Quality Technology and Management at Linköping University, Sweden, and before that he was chair professor at Department of Quality Management at the Aarhus School of Business, Denmark where he build up the first master program in Quality Management in Europe. During this period he was also active as one of the founders of The Danish Quality Award and also one of the founders of EUN.TQM (European University Network in TQM). He has received several awards and has been invited as distinguished visiting professor at many European and Asian universities. He is a member of the International Academy for Quality (IAQ), he is also elected as the first president of EAQS (European Academy for Quality Sciences). He has published 15 books and over 100 research articles. He serves on the editorial boards of several international journals and is currently editor of the journal Total Quality Management & Business Excellence (TQM&BE). Professor Dahlgaard is one of the founders and chairman of the yearly QMOD conferences (Quality Management and Organisational Development) - one of the world's largest research conferences on Quality and Service Sciences. Su Mi Dahlgaard-Park is currently professor at Institute of Service Management, Lunds University, Sweden. Her research areas have been HRM, Quality Management, Organization Theory, Learning and Knowledge Management, and Organizational Change. Within these areas she has published more than 100 research papers and numerous books. She is elected as academician of IAQ (International Academy for Quality) and co-founder and co-chair of the International QMOD/ ICQSS (Quality Management and Organizational Development) Conference during the last 13 years. She is a frequent keynote speaker at International conferences and has been invited as distinguished visiting professor in many European and Asian universities. Boštjan Gomišček is associate professor at the University of Maribor, Faculty of Organizational Sciences, Slovenia. As head of the Laboratory for Quality Management he is predominantly engaged in the following research fields: quality management, maintenance management and environmental protection. Povezanost med inovativno usmerjenimi dejavnostmi trajnostnega razvoja ter učinkovitostjo in uspešnostjo organizacije: empirični dokazi iz slovenskih organizacij Ozadje in namen - Poglavitni namen članka je predstaviti empirično raziskavo o vplivu dejavnosti trajnostnega razvoja, ki so osredotočene na inovativnost, na celokupno učinkovitost in uspešnost organizacije. Namen članka je prav tako izboljšati razumevanje operacionalizacije spremenljivk dejavnosti trajnostnega razvoja, s poudarkom na dimenzijah inovativnosti. Zasnova in metodologija - Pričujoči članek temelji na anketni raziskavi, na osnovi katere smo pridobili 116 uporabnih odgovorov s strani slovenskih proizvodnih in storitvenih organizacij. S pomočjo faktorske analize smo preverili kon- vergentno veljavnost merjenega konstrukta in s tem oblikovali posamezne dimenzije na inventivnost osredotočenih dejavnosti trajnostnega razvoja organizacije. vplive na inventivnost osredotočenih dejavnosti trajnostnega razvoja na celokupno učinkovitost in uspešnost organizacije smo proučevali s pomočjo regresijske analize. Rezultati - Rezultati raziskave so pokazali, da na inventivnost osredotočene dejavnosti trajnostnega razvoja pozitivno in statistično značilno vplivajo na celokupno učinkovitost in uspešnost organizacije. Rezultati raziskave so torej potrdili predpostavko, da razvoj kompetenc na področju inovativnosti in vključitev le-teh v procese organizacije, prinese številne koristi za organizacijo. Na ta način članek prispeva k razpravi o priložnostih in možnostih organizacije, da razvija konkurenčne prednosti in hkrati prispeva k trajnostnemu razvoju. Zaključek - Raziskava doprinaša pomembne teoretične in praktične vpoglede na področju trajnostnega razvoja organizacije in prikazuje pomembnost izvajanja na inventivnost osredotočenih dejavnosti trajnostnega razvoja z vidika doseganja učinkovitosti in uspešnosti organizacije. Izsledki raziskave poudarjajo vlogo vodstva, ki mora spodbujati povečevanje sposobnosti organizacije na področju inovativnosti, saj organizacije lahko posledično izboljšujejo različne segmente učinkovitosti in uspešnosti ter hkrati dosegajo cilje trajnostnega razvoja. Ključne besede: trajnostni razvoj organizacije, trajnostno usmerjene inovacije, učinkovitost in uspešnost organizacije, empirična raziskava Appendix A Measurement items - organizational performance Financial and market performance Factor loadings *PERF1. Return on investment (ROI) has increased above industry average during the last 3 years PERF2. Sales growth has increased above industry average during the last 3 years PERF3. Profit growth rate has increased above industry average during the last 3 years PERF4. Market share has increased during the last 3 years 0.587 0.833 0.799 0.750 Quality performance *PERF5. The quality of our products and services has been improved during the last 3 years PERF6. Customer satisfaction has increased during the last 3 years PERF7. Customer complaints has decreased during the last 3 years PERF8. The cost of poor quality has decreased during the last 3 years 0.516 0.634 0.859 0.785 Innovation performance PERF9. The organization has introduced more innovative products and services than our main competitors during the last 3 years PERF10. Our new products and services are perceived by our customers as innovative PERF11. The speed of adoption of new technology is faster than at our main competitors *PERF 12. The number of innovations that provide the organization with a sustainable competitive advantage has increased during the last 3 years 0.730 0.714 0.690 0.570 Environmental performance PERF13. The efficiency of the consumption of raw materials has improved during the last 3 years PERF14. The resource consumption (thermal energy, electricity, water) has decreased (e.g. per unit of income, per unit of production, during the last 3 years PERF15. The percentage of recycled materials has increased during the last 3 years PERF16. The waste ratio (e.g. kg per unit of product, kg per employee per year) has decreased during the last 3 years 0.717 0.758 0.768 0.696 Social performance PERF17. The turnover ratio has decreased during the last 3 years 0.706 PERF18. The employees' satisfaction has increased during the last 3 years 0.795 PERF19. The employees' motivation has increased during the last 3 years 0.760 *PERF 20. Health and safety performance has improved during the last 3 years 0.665 *PERF 21. Employee education and training (man-days per employee per year) have increased during the last 3 years 0.539 ^Excluded from further analysis DOI: 10.2478/orga-2014-0002 Impacts of the Implementation of a Project Management Information System - a Case Study of a Small R&D Company Mirjana Kljajic Borštnar, Andreja Pucihar University of Maribor, Faculty of Organizational Science, Kidričeva cesta 55a, Slovenija, mirjana.kljajic@fov.uni-mb.si. andreja.pucihar@fov.uni-mb.si Background: The problems of resources management (human, financial, time) in multi-project companies are inherently complex and need to be addressed systematically, in both small and large organizations. Furthermore, there is a need for transparent communication and collaboration within the organization as well as with partnering organizations. There are many methodologies and tools supporting project management, which are themselves complex and are therefore not widely adopted, especially among small companies. Objectives: The aim of this paper is to analyse impact of the implementation of a flexible cloud-based project management information system (PMIS) from the human resources, financial management, and collaboration points of view. Method: We have conducted a case study in a small Slovenian research and development company, that has implemented the 4PM PMIS. Results: The findings imply the importance of keeping the balance of the creative processes that are unstructured, rule free and even chaotic, with structured processes monitor and control. Conclusions: The results of the study suggest that the use of "4PM" in support of multi-project management improves human resources and financial management in a collaborative and transparent way when implemented in an open and highly motivated environment. Keywords: multi-project management, project management information system, systems approach, small organization 1 Introduction Contemporary organizations are increasingly project oriented. Gareis and Huemann (2003) refer to such organizations as Project-oriented Companies (POC), which acknowledge project management as an organizational strategy, manage a project portfolio of different project types and are organized to provide integrative functions. Furthermore, the projects represent their core business. Projects are interrelated within the organization through human resources, finances, and time planning. In contrast, people are assigned to other activities and tasks, which also consume their time (and other resources) and which are not accounted for within the specific project. If not properly governed, such organizations end up with weak organizational climates, high fluctuation rates, as well as low productivity and efficiency. In previous decades, research on project management was primarily focused on single-project management (Ali and Money, 2005; Ali, Anbari and Money, 2008; Raymond and Bergeron, 2008; Lindkvist, Söderlund and Tell, 1998; Lundin and Söderholm, 1995; Shenhar and Dvir, 1996). There is a substantial body of knowledge on the methodologies and tools used to support project management, from its traditional form to more agile ones (Kerzner, 2003; PMI, 2001). Recently, the focus has shifted towards multi-project management (Van der Merwe, 1997; Packendorff, 1995; Nandhakumar and Jones, 2001; Engwall and Jerbrant, Received: 30'h August 2013; revised: 16th October 2013; accepted 19'h November 2013 2003; Cusumano and Nobeoka, 1998; Elonen and Artto, 2003, Zika-Viktorsson, Sundström and Engwall, 2006; Mortensesn, Woolley and O'Leary, 2007). However, many of those studies are addressing an a priori portfolio composition, which only addresses the priorities set to the single projects and resources on a strategic level (also referred to as 'project portfolio management' and 'program management'). However, the term 'multi-project management' refers to the simultaneous managing of several projects on the operational level with the aim of the successful functioning of a single project and overall organizational success, which represents an overwhelming burden on the project and especially general managers. Evaristo and Fenema (1999) proposed a new categorization from the number of projects and locations, i.e. a new model identifying complex multi-projects on multiple locations that can be either distributed or shared. The problems of resource allocation (human, financial, time) in organizations with multiple concurrent projects are inherently complex. Engwall and Jerbrant (2003) studied resource allocation and suggested that there is a need to address this issue as a deeper organizational feature embedded in a multi-project organizational setting. Geraldi (2007) addressed complexity in multi-project organizations as an ability of these companies to deal with the coexistence of order and chaos. She proposed four organizational archetypes: the creative-reflective, the mechanic-structured, the chaotification of order, and the bureaucratization of chaos. This means that multi-project organization has specific needs in terms of supporting creative work process while keeping the structured processes. Resource allocation is not the only challenge in the multi-project environment. Turner, Ledwith and Kelly (2012) addressed the problem of the multi-tasking and multi-disciplinarity of the project teams' members. Ratcheva (2009, pp. 207) argues that multi-disciplinarity can '[_] facilitate team members in articulating diverse knowledge perspectives'. A different view was researched by Mortensen et al. (2007), who discussed multiple team memberships. Where the classic project management approach assumes one person assigned to one project, modern practices assume one person assigned to a number of projects. Their study implies that the crucial role for team success is the selection of appropriate team members, information sharing and communication within and across teams and in the organization of work. When team members are working across time, space and organizational boundaries and their work is supported by information and communication technology, the phrase 'virtual teams' is used (Lipnack, 2000, pp. 352). Different geographical locations of the team members account for differences in physical location, time zones, cultures and values (Lee-Kelley and Sankey, 2008; Groznik, Weber and Kern, 2011). The human resources allocation problems regarding perspectives on multi-disciplinarity, multi-team membership, and virtual teams were discussed in (Evaristo and Fenema, 1999; Payne and Turner, 1999; Hendriks, Voeten and Kroep, 1999), in which the authors suggested different approaches to gaining control and reducing risk of insufficient human resources management. In contrast, the results of a study by Zika-Viktorsson, Sundström and Engwall (2006, pp. 391) suggested that the problem of human resources allocation is far more complex and cannot be solved in a prescriptive way. Furthermore, Zika-Viktorsson, Sundström and Engwall, (2006, pp. 391) identified that project overload arising from insufficient human resources allocation '[_] is associated with impaired performance (measured in terms of poor adherence to time schedules), high levels of psychological stress reactions, and decreased competence development'. Owing to the above-explained complexities of human resources management (competencies and time allocation), financial management (financial resources allocation), and quality management, several authors have suggested a need for efficient information and communication support (Ahleman and Riempp, 2008; Kaiser and Ahlemann, 2010; Caniels, Ralph and Bakens, 2012; Mortensen et al., 2007). The basic presumption in the management of complex dynamic systems is that the system can be observed and controlled by feedback information (Kljajic Borštnar, Kljajic, Škraba, Kofjač and Rajkovič, 2011). Furthermore, not only feedback, but also anticipative information is necessary for the efficient management of a complex system. The information system (IS) plays the most important role in all living and technical systems. It provides communication among elements and environments in the course of achieving goals. Without feedback and anticipative information, the functioning and developing of the systems would be impossible. However, depending of the nature of the systems, there are enormous differences among the types and complexities of IS. Therefore, the basic role of information systems must be to provide the right information when needed. Nevertheless, information alone is insufficient for successful decision making. Decision processes in organizational systems are primarily based on the participating subjects. Nowadays, information systems are mainly computer-based systems. They are a combination of hardware, software, infrastructure and employees, organized to facilitate various tasks and activities in an organization. In a broad sense, a definition of 'information system' is used to refer not only to the information and communication technology (ICT) that an organization uses, but also to the way in which people interact with this technology in support of business processes. Any specific information system aims to support planning, operations, management and decision making (Kroenke, 2008). Information systems cover various areas of organizations; some support only particular functional areas of organizations (e.g. financial, marketing, production, and human resource management information systems), some support entire functional areas of organiza- tions (e.g. enterprise resource planning systems) and others support the networks of organizations (e.g. supply chain management information systems) (Rainer, Turban, Potter and Cegielski, 2010). Enterprise (wide) resource planning systems (ERP systems), supporting all functional areas and business processes of organization (developed in the late 1980s) (Rashid et al., 2002) have been widely adopted by large and medium-sized organizations (Bernroider, Sudzina and Pucihar, 2011). Project Management Information Systems (PMIS) are still used partially, mainly single-project-management oriented, lacking holistic support of all business processes of multi-project oriented organizations, and according to Dahlgren and Söderlund (2010) and Raymond and Bergeron (2007, pp. 3) 'the wider and fundamental issues of organization-wide coordination and control between projects need to be addressed'. Issues of complexity, chaos vs. order and multi-project interdependencies are especially difficult to address in small and medium-sized companies (Turner, Ledwith and Kelly, 2012, Em0-kj0lhede, 2000). Our study will focus on a small and medium-sized research and development (R&D) company in particular. These kinds of organizations rely on acquiring projects and successful execution of projects from various sources of private and public financiers). Furthermore, there is a need for transparent communication and collaboration within the organization as well as with partnering organizations. To be able to successfully manage different projects (in type, funding, scope, scale) while simultaneously keeping people motivated and creative, these challenges need to be addressed systematically. There are many methodologies and tools, (e.g. Traditional Approach, PRINCE2, Critical Chain Project Management, Event-Chain Methodology, Process-Based Management, Agile Project Management, Lean Project Management, etc.) supporting project management, which are themselves complex and are therefore not widely adopted, especially among smaller organizations. Furthermore, the new ways of working require flexibility from organizations and people in the way of planning the work, monitoring and controlling the work, and overcoming various communication and collaboration challenges and cultural differences. So-called virtual teams, acting in various cultural, language, time, and interdisciplinary environments collaborate on various projects (e.g. new product, service, and knowledge development) in a virtual environment, without having even one face-to-face meeting. Another challenge in such projects is in efficient knowledge transfer within the financial and time limits of the given project. The problem of time limitations and overload, affecting the knowledge transfer and hence the individual and organizational development was addressed by Zika-Viktorsson, Sundström and Engwall (2006). While project managers must provide transparent and efficient planning, monitoring and controlling of resources in order to achieve the project goals, top management must have an overview of the company as a whole (Martinsuo and Lehtonen, 2006). The use of an integral information system that efficiently supports all aspects of multi-project oriented organization is thus essential. We have conducted a case study in a small Slovenian research and development company using the 4PM web-based project management information system. The aim of this qualitative study is to analyse the process of implementation and assess the impact of the implementation of a flexible cloud-based project management information system from the human resources, financial management, and collaboration points of view in a small R&D organization. 2 Methodology 2.1 Description of the company We have conducted a single case study in a small Slovenian research and development (R&D) ICT company. It is a typical, small R&D multi-project company, established in 2003. It has 58 employees, of which 85% are male. The average age of the employees is 32. The employees' educational structure is 10% PhD, 10% MSc, and the remaining having bachelor's degrees. The management structure includes a CEO and managing director at the top and three department directors on the second level of decision-making. The yearly turnover is about €3.15 million. Their main income comes from R&D projects financed by national and EU funding, and commercial software development projects. At the time of the study, they were running five EU projects as a partnering organization, and over 30 commercial software development projects. Mission statement from the company's CEO: We try to create a stimulating environment in which high-quality and innovative technology products are being developed. From the outset, we have strived to maintain a democratic organizational structure and a culture built on trust, where everyone adds his part of the puzzle. The company soon realized that they would need a holistic and systematic approach for managing the large number of projects to support financial planning, human resource planning (task delegation according to competences and time), documentation archiving, monitoring and controlling, and reporting. The company was a typical example of a multi-project organization with clearly identified needs that must be addressed in a systematic way; it was therefore an appropriate case to be studied. The single-case study was used as a research strategy to examine three main aspects of use of the 4PM project management information system in a multi-project-oriented organization, i.e. human resources, finance planning and collaboration aspects. The research was conducted in four stages (Yin, 2003): designing, conducting, analysing the evidence, and developing the conclusions, recommendations and implications. 2.2 Design of the study This study was designed to address both of the possible applications for a case study model (Yin, 2003): firstly, to describe the real-life context in which intervention has occurred and, secondly, to describe the intervention itself. The real-life context refers to the problems related to the scope and nature of the company's multi-project operations. For the observations and investigation of the current and desired situations, we used soft systems methodologies (SSM), in particular the seven-stage approach (Checkland, 1999): 1. Entering the problem situation, 2. Expressing the problem situation, 3. Formulating root definitions of relevant systems, 4. Building conceptual models of human activity systems, 5. Comparing the models with the real world, 6. Defining changes that are desirable and feasible, 7. Taking action to improve the real world situation. The intervention refers to the process of implementation of the 4PM PMIS, which is presented in Figure 1: User Requirements, Pilot Use, and Full Implementation. Throughout the process of implementation, the evaluation, based on user feedback, was monitored. The feedback was used to adjust the functionalities of the PMIS and to gain insight into the implementation process from the research point of view. Evidence was gathered by using triangulation data collection methods, done in accordance with the PMIS implementation phases. The following instruments were used (Yin, 2003): direct and participant observations, interviews, and documentation. In the User Requirements phase, the PMIS functionalities (user groups, classifications, reports and performance measures) were aligned to the organizational goals with the observation of participants, documents analysis and interviews. In the second phase (Pilot Use), the implementation plan was developed. The corporate policy on the use of the / ^ REAL LIFE CONTEXT Entering the problem situation. Expressing the problem situation. ^Formulating root definitions of^ relevant systems. ^Building Conceptual Models of^ Human Activity Systems. Comparing the models with the^ real world. Defining changes that are desirable and feasible. Taking action to improve the real world situation. INTERVENTION USER REQUIREMENTS Organizational goals Alignment PMIS functionalities ___^ IMPLEMENTATION / \ Final set up of PMIS ,__J Training Corporate implementation Monitoring and Evaluation Figure 1: Research design PMIS was set, and user and access rights were prepared. A smaller scale test use was done with a limited number of participants and projects. The group consisted of one administrator and three researchers, of which one assumed the role of project manager; top management also participated in the test use. Feedback information was collected by observation and interviews with the test users. Adjustments of the PMIS functionalities (taxonomy, access rights and reports) were done based on the feedback from the test users. In the phase of full implementation, the final setup of 4PM PMIS was installed based on the pilot use. Before the corporate implementation was rolled out, the users received training on the use of PMIS. Feedback information was again collected from the users and several adjustments to the PMIS were made. Finally, the processes and users opinions were analysed via observation and interviews after the 4PM PMIS was in use for six months. 2.3 Conducting the study The study was conducted within a total time span of one year. During that period, all the phases in Figure 1 were executed. In the study, we examined both the real life context using Checklands' soft system methodology (1999), as well as the intervention, which can be best described as a Project Life Cycle with specific stages defined by the PMIS provider together with the company (see Figure 1). Semi-structured interviews with top management, project managers, researchers and administrative workers were conducted during problem identification, test use, and post implementation. Interviews were designed around three main aspects: employee satisfaction, financial management and collaboration. Employee satisfaction aspect was examined around the following topics: ■ Does the PMIS cover all data and information needs? ■ Is the PMIS easily accessible? ■ Is the user interface intuitive? ■ How long did it take to get used to navigating the PMIS? ■ Does it take you less time to complete reporting on work completed? ■ General opinion about the use of the 4PM PMIS. The aspect of financial management was considered through the following topics: ■ Does the PMIS cover all data and information needs? ■ Is the communication with the accountant more efficient? ■ Do you have better overview of individual project finances? ■ Do you have better overview of overall organizational finances? Collaboration aspect in light of the PMIS was examined through the following topics: ■ Are you better informed about the projects' undertakings? ■ Do you feel better connected to your colleagues? ■ Can you better access company's knowledge? ■ Do you feel you have better overview of the whole organization? The interviews were recorded and coded by the interviewees' status (administration, project manager, researcher, top management) and the time of interview (occurring at the beginning of the implementation process, during, and postimplementation). Beginning of the implementation processes (participants' observation, interviews, document analysis) In an interview with the top management, we identified key problems, goals and processes that needed to be supported. In a small company, top management is actively involved in the work processes, and they rely on a democratic and open working relations based on transparent communication. However, they expressed the need to support the creative work by structured processes that can be monitored and controlled. Priority was given to the public co-funded projects, with their strict reporting requirements. Furthermore, the need for a gradual implementation of the PMIS was noted. Project managers are in fact researchers, many times lacking specific competencies on project management. Therefore, it was vital to implement the PMIS gradually, so that employees can acquire knowledge and skills for using it. Based on the initial interviews, document analysis and observation, the personalized database taxonomy (classification) was developed, taking into account specific needs of the company, such as internal projects and tasks classifications. In total, ten interviews were conducted in this phase. During the implementation process (interviews, feedback information, adjustment) A test user group consisting of the CEO, two researchers, one researcher taking the role of a project manager, and one administrative worker were trained for the use of the 4PM PMIS. An administrative worker took care of the initial data input. First, they started using the financial module, and later the document management system and collaborative environment. The latest stage of this phase was the introduction of the non-project related module related to human resources management (leave planning, absence, travels, appraisals etc.). In total, four interviews were conducted at this phase. Post Implementation (feedback information, processes analysis, participants' observation, and post implementation interviews) After the 4PM PMIS was introduced and used for six months across the organization, interviews with the top management, project managers, researchers, and administration workers were conducted, and the impact of implementation was assessed. In total, nine interviews were conducted at this phase. 3 Findings The problems described by the participants of the study are common to many SMEs, especially in times of accelerated growth of projects and employees. Current management practice drawn from traditional project management proves to be inadequate. Experts in certain business domains usually lack knowledge of human resources management, financial management, and other competences important for successful project management. The complexity of multi-project organization is reported to be overwhelming and the need for systematic IT support had been identified on the project management and top management levels. Participants clearly identified three key areas that need to be supported by the PMIS: ■ Human resources management (work load planning, task delegation, task acceptance, reporting of time spent on a task, evaluation of performance, communication and collaboration); ■ Financial management on both single project as well as overall organizational level (revenue planning, inflow planning, costs planning, cash flow planning, cost controlling, reporting); and ■ Overall multi-projects management on a strategic level. Both observation and document analysis supported the findings of the interviews with project managers in which it was state that they were overloaded by the project administration. This was mostly related to reporting to the management and financiers. Three groups of users were identified according to their needs for IT support: ■ Top management, who must communicate accurate and up-to-date information to the project managers about changes and risks, upon which the project managers would rely for the decision-making about the project. Top management must have an aggregated overview of critical business information (cash flow, performance indicators, etc.); ■ Project managers, who must be supported in their everyday project activities (task delegation and control, controlling the financial plan execution, reporting), ■ Members of the project team, who need an operating platform supporting the project structured and unstructured communication, and documentation management. The basic idea of the company management was that every member of the project team should participate in the quest for positive project results, should collaborate and communicate with all members of the team, providing transparent insight into the state of the project, reporting about the work done, time spent, and other relevant data about the project. Furthermore, the company was looking for a flexible solution that would contribute to learning and thus strengthening the project management (and other) competencies of the managers and team members. The solution should provide efficient decision-making about priorities, based on the systems overview throughout the whole company. 3.1 Human Resources Management The productivity of employees working on multiple projects concurrently is difficult to assess. The reported time spent on a task and the effective time are frequently not the same. Furthermore, the requirements for reporting to financiers, especially on international projects, do not show the real status of the hours spent on a task. There are four concepts related to work time: 1) planned time, 2) reported time by an employee, 3) approved time by a project manager, and 4) reported time to the financiers. The PMIS is supporting dynamic work planning according to the overview of the actual time allocated to specific tasks (Kobal, 2009) and reporting about the time spent on a task. Additionally, the agreed effective time and content of work done can help better workload distribution, transparent rewarding of employees, and finally greater employee satisfaction and motivation for work. Therefore, the basic role of the 4PM PMIS was in supporting of the process of dynamic work planning with monitoring and controlling, and transparent rewarding of employees. This process is best described as a democratic process of reporting the subjective judgment of time spent on a specific task, and communication and negotiation about the effective time acknowledged, qualitative and quantitative work assessment, absence planning, work load planning, etc. It was of great importance that the top management was actively participating in promoting the culture of reporting, monitoring and controlling of the time spent on tasks, and the quality assessment of the work done. Although a flexible solution, it should provide standardized and, where possible, automated handling of the following activities: task delegation, time allocation, automated notification of changes, documentation handling and report preparation. Structured and standardized processes, maintaining flexibility for the task scheduling, are crucial in the efficient support of all participants in the process and allow participants to be focused on goals rather than administration. At the same time, all three groups of users have feedback and anticipative information when needed. There are two instances of reporting needed: one for management and other for financiers. Well-defined and supported processes offer higher reliability in the preparation of various reports (scheduled reports, ad hoc reports and analy- sis) based on coherent and reliable data. Furthermore, connectivity to other information systems, such as accounting IS, and human resources management IS, would contribute to better efficiency in planning, monitoring and controlling of not merely the human resources processes, but all business processes. Furthermore, reports on the analysis of the work planned vs. work done in yearly appraisals revealed some interesting information that can help to better manage the human resources. By comparing planned and completed work, management can assess the performance, task and time allocation adequacy, and the aspirations of the employees. Based on the historical data, predictions can be made for workload planning as well. The need for handling unpredicted situations, that require relocating resources and prioritizing tasks, is supported by the overview of the whole organization provided by PMIS. However, not only the information about the current and predicted workload distribution is sufficient, the task delegation is supported in a collaborative way. Each member has the right to accept or decline the task due to other prioritized tasks. Open communication within and outside the project team is vital, but focused and facilitated discussion is also supported. Together, they contribute to better employee involvement and collaboration, and fewer conflicts. Transparency of processes, based on systematic feedback information at all levels of decision-making (operational-task realization, tactical-goal achievement, and strategic-overall performance success) leads to better motivation of employees, transparent performance assessment of employees, and knowledge transfer between the project members and between projects. 3.2 Financial management Financial management in a multi-project organization is complex due to limited financial resources, unpredictable costs, different currencies, specific financial reporting requirements of individual financiers, possible large investments before receiving of funds, travelling expenses, etc. The basic challenge is cash flow planning. Usually, the costs occur before the cash inflow; it can happen that large costs occur in several projects during the same time period; therefore, the need for planning the cash flow is crucial for business. Personnel costs represent the largest part of the budget; therefore, it was crucial to connect work planning and reporting (based on different hourly rates related to a specific project) with the accounting IS. One of the requirements of the organization was to maintain the existing accounting IS (especially with accounts payable and receivable); therefore, integration with the PMIS was needed. Information on cash inflows and outflows should be available when the event occurs; this was explicitly stated by project managers. The project management view of financiers usually differs from the accounting view; therefore, this communication was improved with the implementation of the PMIS. Another explicit requirement, indicated from the interviews with the top management, was the need for financial overview across projects in terms of planning, and controlling the cash inflows and outflows. Only in this way can management anticipate risks and critical events and make timely decisions accordingly. The major challenge in integrating the two information systems was not technological, but organizational. This is also the case in many other similar organizations where employees not directly involved in the project work have difficulties comprehending the nature of such work. Furthermore, the data structure (aggregation level), format and time had to be aligned in order to provide suitable information to the designated person in time. 3.3 Collaboration aspect Collaboration was one of the three main aspects identified by the top management, project managers, and team members. Along financial and human resources management, collaboration is crucial in the success of the heterogeneous R&D project teams. Teamwork encompasses open, focused and documented communication, and knowledge transfer. Knowledge can be stored in documents, communication (formal, informal, tacit and implicit), and there is always tacit knowledge hidden within the project groups. For the organization in question, the R&D groups are heterogeneous in existing within and outside the organization, being multidisciplinary (programmers, systems engineers, web programmers, designers, administrative workers, and others), multicultural, and multilingual. The work is frequently located off of the company premises, sometimes team members never meet face to face. For this reason, the collaboration platform should provide support for efficient communication among the team members and structured and transparent communication and document management between project team members. The participants of the study indicated the need for efficient document management. Integrated with a collaboration platform, this forms a powerful knowledge management tool encompassing the following functionalities: ■ Prepared templates and reports (with comments, documents and files and folders structure), ■ Learning platform for within and between project knowledge transfer (time plans, various reporting options, standardized contract drafts, technical specifications, minutes of meetings, etc.). ■ Standardized and centralized documents capturing, archiving, organized by projects ■ Versioning (locking, access rights, work on the latest version), ■ Control of access rights, ■ Teamwork support (sharing, editing/reading rights, advanced search options). In setting up an efficient collaboration information system that encompasses the monitoring of the document workflow, the project manager determines what information is needed by the three groups of users (general management, project manager, team member), the document flow within the project group and with the other stakeholders. Again, the balance between the formal (structured) communication and informal (unstructured) communication was the basis for creative and open collaborative work. 4 Conclusions Increasing numbers of organizations are facing the complexity of multi-project management. Research on this subject is scarce, mainly focusing on specific aspects or single project management information support. We analysed the impact of implementation of a flexible cloud-based project management information system in a small Slovene R&D company, from the human resources, financial management, and collaboration points of view. For this purpose, we conducted a single-case study. Evidence in the three implementation phases was gathered using semi-structured interviews, document analysis and participants observations. R&D groups are a set of creative people developing innovative solutions, but they have to be able to work with different stakeholders (financiers, part time workers, managers, and external partners). Furthermore, they have to follow strict project rules set by the financier, such as time plans, reporting, documenting, especially for complex national and EU funded projects. Working on a project very frequently means having flexible working hours, with peaks greatly exceeding 40-hour working weeks. The evidence revealed the importance of a systematic approach to supporting key areas of project management processes assessed by the companies' top managers and project managers. The findings support the proposed theory of keeping the balance of the creative processes that are unstructured, rule free and even chaotic, with structured processes to monitor and control them (Geraldi, 2007). Furthermore, the evidence revealed that the key to successful multi-project management is in the efficient support of the employees by empowering them in the process of work planning and reporting, transparent work evaluation and open communication. The results of the study suggest that the use of 4PM PMIS in support of multiple project management improves human resources and financial management in a collaborative and transparent way. The most important lesson learned is about the process of implementation of a project management information system. The process of implementation itself should be transparent, the roles of individuals clearly defined, and the implementation plan aligned with the organization strategies and internal rules. Finally, the organizations' top management has to support this quest in setting an example and creating conditions for the organizational culture to evolve in a way that each employee will adopt the system. The drawback of this study is in the selection of one company whose organizational culture was already project oriented. Future research should thus focus on examining other types of organizations (bigger, bureaucratic, with more hierarchy levels, private and public). Acknowledgements This research was funded by the Slovenian Research Agency; Program No. P5-0018. We are also grateful to the studied company and the PMIS provider, who were willing to participate in this study by providing research material and insights into their business processes. References Ahlemann, F. & Riempp, G. (2008). A Conceptual Reference Model for Project Management Information Systems. Wirtschaftsinformatik, 50(2), 88-97, http://dx.doi.org/10.1365/ s11576-008-0028-y Ali, A.S.B. & Money, W.H. (2005). 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International Journal of Project Management, 24(5), 385-394, http://dx.doi.org/10.1016/j. ijproman.2006.02.010 Mirjana Kljajic Borštnar holds a Ph.D. in the area of Information Systems Management from the University of Maribor. Her research work covers expert systems, multi-criteria decisionmaking, and Information Systems development methods. She holds a position of an Assistant Professor and is a member of Laboratory for Decision Processes and Knowledge-Based Systems. Her recent research work is focused on experiments with decision groups applying system dynamics simulators in experimental, interactive learning, and living laboratory environments. She is involved in several EU and industry projects. She is the author and co-author of several scientific articles published in recognized international journals including Group Decision and Negotiation and System Dynamics Review. She is also a program committee chair of annual international Bled eConference (http://BledConference.org). Andreja Pucihar holds a Ph.D. in the area of Information Systems Management from the University of Maribor. Her research work is mainly focused to e-business, new e-business models, social media and web 2.0, living labs and open innovation. She has published over 130 papers in journals and conference proceedings, including in Electronic Markets, The International Journal on Networked Business and Information Systems Management. She holds a position of an Assistant Professor and is a member of E-business laboratory. She is involved into several EU and industry projects. She is a member of the boards of the following international journals: »Electronic Markets - The International Journal on Networked Business«, »Journal of Theoretical and Applied Electronic Commerce Research« and »International Journal of Information Systems & Social Change«. She is also a program committee chair of annual international Bled eConference (http://BledConference. org). Vpliv uvedbe informacijskega sistema za večprojektno vodenje - študija primera v malem raziskovalno razvojnem podjetju Ozadje: Problemi upravljanja virov kadrov, financ in časa v večprojektni organizaciji so po naravi kompleksni, zato jih moramo obravnavati celovito tako v velikih, kot manjših organizacijah. Pri tem je potrebno zagotoviti odprto komunikacijo med zaposlenimi in med partnerskimi organizacijami. Obstaja več metodologij in orodij za podporo projektnemu delu, vendar so slabo sprejete, predvsem v manjših organizacijah. Razlogi ležijo v prekompleksnosti metod in njihovi naravnanosti na vidik enega projekta. Cilji: Cilj tega prispevka je analizirati vpliv uvedbe prilagodljivega spletnega informacijskega sistema za projektni management z vidika kadrovskega in finančnega managementa ter sodelovanja. Metode: v ta namen smo izvedli študijo primera v manjšem slovenskem raziskovalno-razvojnem podjetju, ki je uvedlo spletno rešitev za večprojektno vodenje 4PM. Rezultati: Rezultati poudarjajo pomembnost ohranjanja ravnovesja med nestrukturiranim kreativnim procesom, ki poteka brez pravil in celo kaotično, in potrebo po strukturiranemu spremljanju in kontroli projektov. Zaključki: Rezultati študije nakazujejo, da uporaba rešitve 4PM učinkovito podpira upravljanje več-projektne organizacije, pozitivno vpliva na zadovoljstvo in sodelovanje zaposlenih ter omogoča preglednejše vodenje financ. Ključne besede: več projektni management, projektni informacijski sistem, sistemski pristop, majhna organizacija DOI: 10.2478/orga-2014-0003 The Transfer of Knowledge in Intra-Organizational Networks; A Case Study Analysis Wtodzimierz Sroka1, Joanna Cygler2, Bozena Gajdzik3 ^Department of Management, Academy of Business in D^browa Gornicza, Cieplaka Street 1c, 41-300 D^browa Gornicza, Poland, wsroka@wsb.edu.pl (corresponding author) 2Warsaw School of Economics, Institute of Economics, Niepodlegtosci ave. 162, 02-554 Warszawa, Poland, cygler@sgh.waw.pl 3Department of Materials Science & Metallurgy, The Silesian University of Technology in Gliwice Akademicka street 2A, 44-100 Gliwice, Poland, bozena.gajdzik@polsl.pl Background: In today's business environment, a company is able to maintain its competitive position if it constantly generates knowledge and disseminates this knowledge within the organization, as well as transforms it into new competences. The ability to transfer knowledge becomes one of the key factors in the improvement of a company's competitive position. This hypothesis is applicable particularly in the case of cooperation within networks, as they are an excellent opportunity for mutual learning between partners. Objectives: The purpose of the paper is to analyse the process of knowledge transfer in intra-organizational networks. Method: Due to the specificity of the research object, the case study method has been chosen. In order to make an in-depth analysis of the case study, we selected a group of several criteria based on the theory which we believe to be fundamental to the effectiveness of knowledge management in networks, and compared them with the situation in the ArcelorMittal Group. Results: Our research show that ArcelorMittal Group has met almost all the criteria of effective knowledge management in its intra-organizational network. Some exceptions, albeit merely to an extent, are mostly the result of historical circumstances, , i.e. the process of growth through acquisitions, and the acquisition of companies at different stages of organizational development, as well as organizational culture. Conclusion: Based on theoretical assumptions, the study analysed in details the components of knowledge management applied by the corporation in question. Therefore this study might be utilised to formulate a refutable hypothesis and verify them on a larger group of companies from different sectors of the economy. The main limitations of the paper are mostly related to the inherent approach therein. Keywords: knowledge, knowledge transfer, knowledge management, network, case study analysis 1 Introduction In recent years, many strategic management scholars have paid close attention to knowledge management, both at the organizational level (e.g. Spender and Grant, 1996; Argote et al., 2003) as well as in terms of inter-organizational cooperation (Powell, 1998; Ingram and Simons, 2002; Lake and Erwee, 2005; Eunni et al., 2006). The concept of knowledge management goes beyond the single-discipline, covering the areas of strategic management, economics, information systems, psychology and sociology. This diversity has contributed to the rapid progress of knowledge in various areas of organizational learning and knowledge management. Knowledge-oriented concepts which had previously Received: 21st July 2013; revised: 9th September 2013; accepted: 29'h October 2013 24 been little known, such as "organizational competence", "organizational learning", "intangible assets", "organizational capacity", or "tacit knowledge", have become widely used; and key competencies of organizations are thus based on the finding and creation of knowledge. It is claimed that companies which do not actively manage knowledge as a key resource will not be able to sustain growth and competitiveness (Conradie, 2010). In today's business environment, a company is able to maintain its competitive position if it constantly generates knowledge and disseminates this knowledge within the organization, as well as transforms it into new competences (Nonaka, 1991). The ability to transfer knowledge becomes one of the key factors in the improvement of a company's competitive position. This hypothesis is applicable particularly in the case of cooperation within networks, as they are an excellent opportunity for mutual learning between partners. For example, Goerzen (2007) claims that through participation in networks, companies obtain swift access to knowledge and information which would otherwise be inaccessible. The paper is structured as follows: first, we review the literature on knowledge and knowledge management in intra-organizational networks. The main sources of theoretical analysis are scientific journals, specifically those publications devoted to knowledge management in alliance networks. Based on this review, we then present guidelines for knowledge transfer within such networks. The following section concentrates on a case study analysis based on the ArcelorMittal Group, which has successfully implemented the Knowledge Management Program. Finally, we discuss the results of our study and draw some conclusions as well as presenting the limitations of our research. 2 Literature review Knowledge has emerged as the most strategically significant resource of today's business enterprise (Grant, 1996) and a core component of a company's strategic intent. If an enterprise wants to improve its competitiveness, it has to acquire new competences obtained through cooperation with other entities, as cooperative relationships with competitors constitute a potential alternative to the generation of internal knowledge (Richter and Vettel, 1995). Networks between companies are an effective way to create competitive advantage through a combination of the complementary resources of network members (Gilsing and Lemmens, 2007). The structure of the network affects the process of knowledge transfer within the network, and companies occupying a central position in an intra-organizational network are characterized by greater innovation, as a result of better and wider access to knowledge (Tsai, 2001). The frequency of contacts between the parties positively affects the quality and speed of knowledge transfer (Uzzi, 1991), and stronger relationships within an intra-organiza- tional network favour the transfer of complex knowledge, while weaker ties prefer the transfer of simple knowledge (Hansen, 1999). In turn, if there are structural holes amongst network members, its innovativeness will be lesser (Ahuja, 2000). Moreover, the more organizational units which are of key importance to the network, the quicker the transfer of knowledge (Tang, 2011). The process of knowledge transfer is based on the concept of the learning organization which facilitates the acquisition of experience and learning (Hamel, 1991). Companies which want to enhance competitiveness through knowledge management can only achieve this if there is a culture of learning. There is an inter-relationship between knowledge and organizational learning, and learning plays an important role in ensuring that knowledge is created and transferred to promote innovation. The shared values of innovation and learning need to be managed and utilized successfully to sustain economic growth and competitive advantage (Kok, 2004). In addition, this knowledge would be better transferred, absorbed and utilized if the members of the network were more closely related (both vertically and horizontally). This is directly related to the increase in mutual trust and reduction of opportunistic behaviour (Blois, 1990). A key success factor in the transfer of knowledge within networks is absorption. When acquiring new knowledge, organizational units use their existing skills and knowledge (Zahra, 2002). The level of knowledge absorption in the network is also the result of absorption of individuals involved in the creation of this unit. Therefore the formation of creative and professional teams is a necessary condition for the maintenance of a sufficiently high level of absorption. There are two factors affecting a company's absorptive capacity. One relates to the internal factors, such as organizational structure, size, strategy, prior knowledge base, and organizational responsiveness; the other one is external factors, which include external knowledge environment and a firm's position in knowledge networks (Lee & Chi Wu, 2010). Equally important to the quality of knowledge transfer is the sender's ability to spread. These issues have received much less attention from researchers, despite the importance of the knowledge sender's disseminative capacity to the success of the transfer. Parent et al. (2007) explain this capacity as "the ability to contextualize, format, adapt, translate and diffuse knowledge through a social and/or technological network and to build commitment forms of stakeholders". Disseminative capacity is related to the likelihood of precise, clear and effective articulation and transfer of knowledge to other members of the network. These capabilities include the transfer of knowledge in conceptual form, and the familiarization of customers with its practical implementation. It is increasingly stressed that the transformation of knowledge possessed by the sender into value which has value for customers, is needed (Kulken and van der Sijde, 2010). Therefore, the sender should have creativity, knowl- edge, communication skills and the appropriate personality traits. The knowledge transfer is faster if the sender's ability to disseminate knowledge is greater. This, however, depends on the degree of homogenization of the network and the strategy of its members, as well as on the uniformity and strength of organizational culture (Abrahamson and Fombrum, 1994). However, disseminative capacity depends not only on the skill of the sender, but also on its willingness to transfer knowledge. Research undertaken by Minbaeva and Michailova (2004) show that the disseminative capacity of knowledge senders is greatly increased when there exist both the ability and willingness to transfer knowledge, both of which are crucial to the quality of this process. Another factor influencing the quality of knowledge transfer is its inherent nature. Organizational knowledge can be divided into explicit knowledge, which is to say knowledge which can be codified; and tacit knowledge which is hidden and difficult to indicate (Polanyi, 1966). No difficulties are usually encountered in the transfer of codified knowledge, but its value to the organization is lower than for tacit knowledge. Although hidden knowledge is extremely beneficial for the company, it is also very difficult to transfer it to partners within a network. The main reason is the fact that understanding and explaining this knowledge requires a significant period of time, and therefore slows down the development of new products or production competences. Johannessen and Olsen (2003) also claim that tacit knowledge can be a barrier to innovation because it is usually part of a long-term learning process in a specific environment. On the other hand, Barney (1991) claims that tacit knowledge is regarded as a basis for the creation of competitive advantage. In addition, Szulanski (1996) pointed out the danger of multiplicity and ambiguity in the interpretation of transferred knowledge and its relative novelty. Knowledge, especially informal, can be interpreted differently by the recipients according to their perception and prior experience. The problem arises when there is a network in which knowledge transfer is multilateral, and both direct and indirect. In turn, knowledge which has no documentary history causes substantial complications in the transmission and reception thereof, in terms of an intra-organizational network. It requires the parties to develop their own procedures for the reporting, acquisition and exploitation of the new knowledge. One then expects greater flexibility, openness, innovation and the commitment of all network members and their appropriate capacity, depending on their functions both within the network and in the process of knowledge transfer. The transfer of knowledge in an intra-organizational network requires certain procedures and rules. It has been claimed that each network would be better advised to develop its own programs, depending on different factors such as: strategy, the network structure and specificity of network members, type of knowledge being transferred, etc. The program of knowledge transfer in an intra-network defines the rules regarding the selection of knowledge to be transferred to the different groups of customers at the proper time (Hutzschenreuter and Horstkotte, 2010). The transfer of knowledge is much more efficient when the parties involved in the cooperation processes are similarly trained and educated (Reagan & McEvily, 2003). It is worth noting that the central unit is the initiator of the creation of knowledge transfer in an intra-organizational network. However, bottom-up initiatives are also valuable. A knowledge transfer program is characterised by substantial flexibility, and varies depending on the nature and needs of the network members; the strategic goals of the organization; as well as its organizational and financial resources. It requires a certain level of specialization from the members of the network. The specialization of companies in the network is associated with the division of labour and tasks between them, which may be more or less intense. Both cases are related to the need for the exchange of knowledge in terms of products and processes, as well as proper coordination thereof (Kotabe et al. 2003). Research confirms the usefulness of both formal and informal relationships between member companies in terms of access to knowledge and its transfer between partners. Such companies benefit from cooperation in that they are then able to improve their core competencies (Lorenzoni and Lipparini, 1999). We have presented only selected information and data regarding knowledge and knowledge management which can be found in the literature. The chosen works exhibit some common features in that all the authors underline the importance of knowledge, both at the organizational level as well as at the network level. Therefore, knowledge requires proper management; and the process of the transfer of knowledge is especially important in networks due to the following factors: (a) the different members of the network and their specificity, (b) the network structure, (c) the type of knowledge transferred, (d) expertise, and (e) distribution channels. All these elements create a system of knowledge transfer within the network. The quality of this system will depend both on its individual components as well as the system as a whole. On the other hand, a properly designed knowledge transfer system is a prerequisite for the effective transfer of knowledge in the network which can in turn generate a competitive advantage. Table 1 presents a summary of the most important approaches and concepts related to the knowledge transfer in the networks. 3 Case Study Analysis 3.1 Choice of methodology Welch et al. (2011) claim that the case study has an established place in qualitative international business research. This is not surprising, given its potential to generate novel and ground breaking theoretical insights. Case studies pro- Table 1: The most important approaches and concepts related to the knowledge transfer in the networks. No. Author Description of the approach 1. Gilsing and Lemmens, 2007 Networks between companies are an effective way to create competitive advantage through a combination of the complementary resources of network members. 2. Tsai, 2001 The structure of the network affects the process of knowledge transfer within the network; companies occupying a central position in an intra-organizational network are characterized by greater innovation, as a result of better and wider access to knowledge. 3. Uzzi, 1996 The frequency of contacts between the parties positively affects the quality and speed of knowledge transfer. 4. Hansen, 1999 The stronger relationships within an intra-organizational network favour the transfer of complex knowledge, while weaker ties prefer the transfer of simple knowledge. 5. Ahuja, 2000 If there are structural holes amongst network members, its innovativeness will be lesser. 6. Tang, 2011 The more organizational units which are of key importance to the network, the quicker the transfer of knowledge. 7. Hamel, 1991 The process of knowledge transfer is based on the concept of the learning organization which facilitates the acquisition of experience and learning. 8. Zahra, 2002 A key success factor in the transfer of knowledge within networks is absorption. When acquiring new knowledge, organizational units use their existing skills and knowledge. 9. Kulken and van der Sijde, 2010 The transformation of knowledge possessed by the sender into value which has value for customers, is needed. Therefore, the sender should have creativity, knowledge, communication skills and the appropriate personality traits. 10. Abrahamson and Fombrum, 1994 The knowledge transfer is faster if the sender's ability to disseminate knowledge is greater. This depends on the degree of homogenization of the network and the strategy of its members, as well as on the uniformity and strength of organizational culture. 11. Polanyi, 1966 An important factor influencing the quality of knowledge transfer is its inherent nature. No difficulties are usually encountered in the transfer of explicit (i.e. codified) knowledge. In turn, tacit (hidden) knowledge is very difficult to transfer to partners within a network. The main reason is the fact that understanding and explaining this knowledge requires a significant period of time, and therefore slows down the development of new products or production competences. 12. Johannessen and Olsen 2003 Tacit knowledge can be a barrier to innovation because it is usually part of a long-term learning process in a specific environment. 13. Barney (1991 Tacit knowledge is regarded as a basis for the creation of competitive advantage. 14. Szulanski, 1996 The danger of multiplicity and ambiguity in the interpretation of transferred knowledge and its relative novelty. 15. Hutzschenreuter and Horstkotte, 2010 The transfer of knowledge in an intra-organizational network requires certain procedures and rules. It defines the rules regarding the selection of knowledge to be transferred to the different groups of customers at the proper time. 16. Reagan and McEvily, 2003 The transfer of knowledge is much more efficient when the parties involved in the cooperation processes are similarly trained and educated. Source: own elaboration vide the research framework within which an observation and analysis of behaviour in relation to both structure and mechanisms can be conducted (Klonoski, 2013). They are generally constructed to explain the mechanism contributing to a described event and to interpret its social, cultural and organizational meanings rather than to create predictions about future events (Wynn and Williams, 2012). Given these considerations, the case study method has been chosen due to two main reasons. The first was the specificity of the research object. Another reason was in-depth local knowledge of the authors of the object analysed. As Fenno (1986) claims, if the researchers have this local knowledge they are in a position to "soak and poke", and thus to offer reasoned lines of explanation based on this rich knowledge of setting and circumstances. This knowledge is the result of the author's work in the object in question. Case studies are analyses of persons, events, decisions, periods, projects, policies, institutions, or other systems that are studied holis-tically by one or more methods (Thomas, 2011). Yin (1981) indicates that the case study method can be employed if "it attempts to examine: (a) a contemporary phenomenon in its real-life context, especially when (b) the boundaries between phenomenon and context are not clearly evident". Our research object fulfils both conditions. Case study research can be used to generate and test theories within a positivist paradigm (Eisenhardt, 1989). Furthermore, a recent review of articles published in four core international business journals over a 10-year period found case studies to be the most popular qualitative research strategy (Piekkari et al. 2009). An analysis of the complexity of the network (including the transfer of knowledge) requires a comprehensive approach, which is supported by case study research. The case presented in this paper is more descriptive than explanatory or exploratory (Yin, 1994), in which the key issue is to describe the phenomenon, together with the circumstances of its occurrence (Mitchell, 1980). This, however is also an another advantage of the case study presented, as the readers will have an opportunity to learn about the problems with knowledge management which they may encounter. Therefore it may be also useful for the companies operating in a variety of industries. On the other hand it should be noted that there are indeed both advantages and disadvantages of this research method. The advantages of the case study method include its applicability in such cases when the research object is difficult to examine through quantitative methods, or when it is relatively new (in other words when a lack of previous studies exist in the literature). This method is also flexible and creative (Patton, 2002; Marelli, 2007). In turn, the weakness of this method includes the emotional attitudes of researchers to the object of the study, which may affect the objectivity of the conclusions (Smith, 1990) and the requirement for a high level of analytical abilities and writing skills. Welch et al. (2011) also observe that literature on case studies has tended to focus on the methods of data collection and analy- sis rather than the methods of theorizing from case studies. Therefore, as has been stated by Tsang (2012), the theorizing potential of case studies has not been fully realized in the field of international business research. 3.2 Description of ArcelorMittal Group The case study analysis concentrates on the steel industry, and more specifically on ArcelorMittal, the world leader in this industry. The research object was selected because of the following reasons: ■ ArcelorMittal is a wide capital group which crates the network in international scale. This geographical dispersions requires a constant shaping the effective transfer of knowledge within the network; ■ previous research confirmed the existence of network connections in Polish steel industry (e.g. Lisinski et al. 2012; Sroka 2012) and ArcelorMittal controls approx. 70 percent of Polish steel sector capacity. It can then be assumed that the network connections can be applied to the whole corporation; ■ in the frame of its intra-organizational network, the group has developed the original solutions related to processes as well as structures of knowledge transfer (e.g. Sroka, 2010 b). This is unquestionable and influences the market, organizational, as well as financial results of the whole group; ■ successes and failures in the process of knowledge transfer are not a specific feature of this corporation only. They have a universal nature and can be applied by other corporations with a similar geographical scope and/or branch relationship. Growing globalization causes that the experiences of some corporations can be analyzed and utilized by the others. The steel sector is highly differentiated in terms of strategic orientation. The following normative categorisation can be used as an overall framework for describing the industry (Boston Consulting Group, 2007): ■ global players, ■ regional champions, ■ niche specialists. Arcelor-Mittal (which was set up in 2006 as a result of about 50 smaller transnational mergers, where Arcelor originated from Arbed in Luxembourg, Usinor in France and Aceralia in Spain) is a true global player in the steel industry. It has a world-wide network with production facilities in each region and a full range of products, producing more than 50 million tonnes, and has backward integration. It is a worldwide leader in the steel industry, a fact which increases its bargaining power with suppliers and consumers alike. No consolidation transaction in the steel industry prior to this merger was of either comparable scale or scope (Sroka, 2010a). External growth is treated as the main stra- tegic direction of the group, which is treated as the only "truly global" steel company. ArcelorMittal is the leader in all markets which it serves, i.e. the automotive industry, primary transformation, construction, household appliances, metal processing, general industry, packages etc. The revenues of ArcelorMittal reached $105 billion in 2007 and market share increased to almost 10 percent (Granboualan et al. 2008). One year later revenues reached $124,9 billion and total production rose to 103 million tons of steel. The group also occupies a world-leading position in the field of research and development (Wiechoczek, 2009). A characteristic feature of the ArcelorMittal Group is the network connections between its particular companies. Additionally, the ArcelorMittal Group includes a number of companies situated in former Soviet Union bloc countries (Poland, Romania, the Czech Republic, Ukraine, and Kazakhstan), so the organizing of production activities is broadly similar in each steelworks. Relations between organizational units are horizontal in nature, and hierarchical in terms of relations with headquarters. Intra-organizational coopetition relations include both branch level, and corporate level. Those units cooperate with each other, while at the same time facing internal competition. Therefore, it can be said that ArcelorMittal Group is a prototypical example of an intra-organizational network, with a number of steel divisions located throughout the world. In other words, it represents all the features of such a network. 3.3 Knowledge Management Program We analysed the assumptions of knowledge management programs within the ArcelorMittal Group, which had previously implemented the assumptions of knowledge transfers internally (ArcelorMittal Knowledge Management Program - KMP). A key component of the program is the participation of managerial staff in the "Manager Academy". The Manager Academy Program was implemented in 2006 and comprises three main blocks (Gajdzik, 2008): ■ Fundamentals and knowledge - its purpose is to construct new employee approaches and new organizational culture and goodwill, ■ Management skills - covering performance management, leadership, personal effectiveness, and team leadership; generally speaking its purpose is to improve the skills and competences of the management staff, ■ Professional skills - consisting of training in innovative and analytical thinking, dealing with stress, decision making, labour law, recruitment interviews, lean manufacturing, value chain management, project management, commercial negotiations and negotiation techniques, business communication, change management, and conflict resolution. The Program has a long-term perspective and, within ArcelorMittal Poland only, three subsequent editions were undertaken, each for around 300 people. The Program was broken down into four levels: level 1 - top management; level 2- senior management; level 3 - middle-level management; and level 4 - junior management. This project is part of the Global Development Executive Program. It is assumed that executives will gain new analytical, interpersonal, managerial, as well as leadership skills, which should inspire them to make changes at different levels of the corporate hierarchy. Lower-level employees can use the knowledge available through the system of human resource development (International Corporate Training and Development Program) via the Intranet and the Internet. ArcelorMittal implemented an e-learning program in which employees have access to, inter alia, the Global English Service (http://www.globalenglish.com), enabling them to learn English; Online Training Center (OTC) Thomson NETg (http://www.netglearning.com) which functions as the training centre for the following departments: accounting and finance, customer service, human resource management, sales, marketing, project management; Business Book Review - literature which is thematically linked to the production processes; and Steel University, an English-language dictionary containing vocabulary specific to the steel industry. Another important component of the program is the exchange of knowledge and experience amongst the employees of the corporation as a whole. It is worth adding that such an exchange of knowledge relates to both the senior management level and individual employees, as part of the 'crossing' process. Crossing means that employees in identical positions perform the same tasks in other divisions of the corporation. The group organizes internal meetings, treating them as part of the exchange of experience; holds meeting with experts and scholars outside its structures; as well as participating in national and international conferences, symposia and workshops. Generally, the group systematically organizes training sessions in order to cover all potentially problematic areas (customer service, industrial safety, SAP rules, legal regulations, etc.). It is estimated that approximately 35 percent of its staff are trained every year, and furthermore that knowledge is distributed via an effective system of communication. Based on the analysis of ArcelorMittal's activities devoted to knowledge management, it is clear that the sharing of knowledge and the implementation of best practices are integral to its management philosophy. Through its global Knowledge Management Program, ArcelorMittal shares, develops and utilizes its knowledge and experience across all the existing facilities and subsidiaries to accelerate improvement in business performance. The KMP comprises all key functional areas, such as procurement, marketing, logistics, health and safety, steel production and processing, and customer service. The KMP includes ongoing benchmarking, regular technical meetings and information- sharing at the corporate, regional and operational levels to drive improvement in performance, enabling each business unit to benefit from economies of scale and access to the best practices and experience available within the corporation. Therefore, the KMP contributes to enhanced quality, productivity and profitability across the whole group. 4 Theoretical assumptions vs. case study analysis - comparison In order to make an in-depth analysis of the case study, we selected a group of several factors (criteria) based on the theory which we believe to be fundamental to the effectiveness of knowledge management in networks, and compared them with the existing situation in the ArcelorMittal Group. The results are presented in Table 2. An analysis of Table 2 shows that ArcelorMittal Group has met all the criteria of effective knowledge management in its intra-organizational network. Some exceptions, albeit merely to an extent, are mostly the result of historical circumstances, i.e. the process of growth through acquisitions, and the acquisition of companies at different stages of organizational development, as well as organizational culture. This can limit the ability to absorb knowledge; however not excluding it completely, of course. Another issue relates to coopetition, which is mostly a feature of inter-organizational networks. The nature of the ArcelorMittal network, which can be classified as intra-organizational, means that aspects of cooperation dominate the competition; yet some limited level of competition exists, and has a positive effect. One of the key elements of modern management is knowledge management, a thesis which is borne out by the results of ArcelorMittal operations. It posted a net profit of $2.26 billion in 2011. In turn, 2012 was a very difficult year for the steel industry, particularly in Europe, where the demand for steel fell a further 8.8 percent, and the slowdown in China's economy. As a result, ArcelorMittal posted a net loss of $3.73 billion. The company's sales were also down 10.39 percent to $84.21 billion in 2012.To give but one example, due to overcapacity and reduced demand in Europe, ArcelorMittel had 9 of 25 blast furnaces sitting idle, and in October 2012 it permanently shut down two blast furnaces at its steel plant in Florange (France). However, one expects an improvement in the situation in 2014. The worsening in results from last year cannot, however, change the opinion as to the efficiency of the knowledge management system which exists across the group as a whole. 5 Conclusions and limitations of the paper The transfer of knowledge between companies in a network is a complex matter, certainly more difficult than in the case Table 2: Key factors of effective knowledge management in networks: theory vs. practice No. Factors (criteria) fundamental to effective knowledge management in a network ArcelorMittal Group 1. Knowledge management as part of the company's business strategy and mission, as well as business objectives and processes Knowledge sharing and implementing best practices is an integral part of ArcelorMittal's management philosophy. 2. Implementation of the "learning organization" concept Implemented in the group: constant learning, training on different levels, Manager Academy. 3. Ability to absorb knowledge Differentiated, depending on the particular capacities of the member companies (the steel plants are located in all continents; including companies from EU countries, such as Germany, France, Poland, as well as non-EU members such as Kazakhstan, India, Ukraine, Algeria, Trinidad and Tobago or USA). The infrastructure of the companies situated in these countries as well as the skills and competences of the employees are varied. As the result, the ability to absorb knowledge also differs. Generally one claims that the ability to absorb knowledge is higher in the companies located in the well developed economies such as Germany, USA, France. Table 2: Key factors of effective knowledge management in networks: theory vs. practice (continued) No. Factors (criteria) fundamental to effective knowledge management in a network ArcelorMittal Group 4. Trust between network members The intra-organizational network at ArcelorMittal promotes the existence of trust between its members. The main reason is the type of relationships within the ArcelorMittal network. The nature of the network, i.e. intra-organizational one causes that there is no danger of economic intelligence and information leakage as the companies are the members of the same corporation. Opportunistic behaviour is also limited. 5. Character of the relationships within the network (strong vs. weak) promoting the transfer of complex knowledge Strong relationships between members of the intra-organizational network of ArcelorMittal, facilitating exchange of complex technical knowledge on steel manufacturing processes (e.g. improvement of the operational effectiveness of the blast furnace, conver-tor, steel melting shop or continuous casting) . 6. The central unit as the initiator of the knowledge transfer The Group HQ is the initiator of the knowledge transfer, however bottom-up initiatives are also highly welcome; meetings between managers from particular functional areas in different companies and/or subsidiaries. 7. Knowledge Management Programs and the clarity of rules therein Existence of Knowledge Management Programs in different parts of the value chain: procurement & logistics, production, sales, etc. 8. Existence of an effective communication system and infrastructure Very effective communication system, as well as information infrastructure in all facilities and subsidiaries. Existence of SAP, i.e. an integrated software solution of ERP type that incorporates the key business functions of the whole corporation. 9. Existence of coopetition, i.e. simultaneous cooperation and competition between network members To some extent and related mostly to the group's subsidiaries; however, this positively affects the operational activity of the group as some degree of competition stimulates greater innovation. 10. Frequency of contacts between network members Often meetings (and benchmarking meetings), teleconferences and videoconferences between managers from the steel plants located throughout the world. Visits of the selected managers in the steel plants belonging to the group to share knowledge and skills. 11. Creation of the task teams in order to perform certain actions Widely implemented and utilised; every new acquisition is prepared and managed at the first stage by a selected group of experienced managers from different parts of the value chain: finance, sales, production, accounting, logistics etc. The same relates to the solving problems which are encountered during operation and/or tasks imposed. 12. Division of labour and tasks Widely applied; inter disciplinary teams consisting of specialists from different divisions of the group. 13. Existence of internal procedures and rules associated with knowledge management Not confirmed in 100 %, however, based on the data presented above, one should assume that such procedures really exist within the group. of individual companies. However, a properly designed transfer system is a prerequisite for effective knowledge transfer in an intra-organizational network, which can assist in the generation of competitive advantage. It has even been claimed that one of the strategic options open to the steel industry is to engage in strategic networking and knowledge sharing within R&D in energy-improving technologies (Study, 2008). High priority is given to innovation and close cooperation with customers with regard to development. ArcelorMittal Group has implemented the assumptions of knowledge management program within its corporation. Almost all the criteria of effective knowledge management in its intra-organizational network have been met by the group. Some exceptions, albeit merely to an extent, are mostly the result of historical circumstances, i.e. the process of growth through acquisitions, and the acquisition of companies at different stages of organizational development, as well as organizational culture. For example, there are the companies both from developed as well as developing countries in the group. Algeria, Kazakhstan, Ukraine and some other economies belong to the latter group. This can limit the ability to absorb knowledge; however not excluding it completely, of course. The case study analysed the particular situation of the global corporation operating in the steel industry. Based on theoretical assumptions, it analysed in details the components of knowledge management applied by the corporation in question. Therefore this case study may be utilised to put the hypotheses and verify them on a larger group of companies from different sectors of the economy. The universal nature of the case presented, i.e. the possibility to apply the findings of the paper in by the companies operating in a variety of sectors is the most important implication for the practice. Thus it could be regarded as our contribution to the existing knowledge about learning and knowledge transfer in networks. The main limitations of the paper are mostly related to the inherent approach therein. 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Academy of Management Review, 27(2), 185-203, http://dx.doi.org/10.2307/4134351 Wtodzimierz Sroka specializes in theoretical and practical issues relating to the management and strategic management. He is the author of several scientific articles about strategic alliances, mergers and acquisitions, strategy, restructuring and alliance networks published both in Polish and international journals. His research activities mainly include cooperative strategies, and mergers and acquisitions. He holds his Ph.D., M.Sc. and B.Sc. degrees in Management and Marketing from the Karol Adamiecki University of Economics in Katowice, as well as D.Sc degree (habilitation) from the University of Zilina (Slovakia). Currently he is an Associate Professor and Vice Rector for Science at the Academy of Business in Dgbrowa Gornicza (Poland). He was previously employed in different managerial positions in both the steel and machine industries. Joanna Cygler: M.A (Economics), Ph.D. (Management) and Habilitation (Strategic Management) from the Warsaw School of Economics (SGH). Associate Professor (Institute of Management, Faculty of Management and Finance) at Warsaw School of Economics. Specialist of international business cooperation. Authoress of numerous scientific publications on strategic alliances, business coopetition and network relations published in various countries. Worked for the Chancellery of the President of Poland (special advisor), responsible for international economic initiatives of the President and cooperation with international organizations (e.g. OECD, WEF, UN). She also worked for the Agency for Foreign Investment in Poland, (Director, Research Department, responsible for international investment cooperation, coordinated the biggest foreign investment projects in Poland) and the Ministry of Economy (research projects). Coordinated many research projects financed by Polish and American (Fulbright research scholarship, University of Minnesota) scientific organizations. Bozena Gajdzik specializes in theoretical and practical issues relating to the restructuring processes in manufacturing enterprises after transformation of economic system in Central European Countries. She is the author of several scientific articles and books. She specializes in restructuring of metallurgical enterprises in Poland and in other countries. She holds her Ph.D. degree in Economics from the Karol Adamiecki University of Economics in Katowice. Currently she is a lecturer (Assistant Professor) at the Silesian University of Technology in Gliwice (Poland). Prenos znanja v intra-organizacijskih omrežjih: študija primera Ozadje: V današnjem poslovnem okolju lahko podjetja vzdržujejo konkurenčen položaj le, če stalno generirajo znanje, razširjajo znanje znotraj organizacije in ga pretvarjajo v nove kompetence. Zmožnost prenosa znanja je eden od ključnih dejavnikov za izboljšanje konkurenčnega položaja podjetja. To velja še posebej v primeru sodelovanja med omrežji, saj le-ta predstavljajo odlično možnost, da se partnerji učijo eden od drugega. Cilji: Cilj tega članka je analizirati proces prenosa znanja v intra-organizacijskih omrežjih. Metode: Zaradi specifičnosti raziskovanega subjekta smo uporabili metodo študije primera. Da bi lahko izvedli poglobljeno analizo smo izbrali skupino različnih kriterijev pri čemer smo se opirali na teorijo, za katero verjamemo, da je pomembna za učinkovito upravljanje znanja v omrežjih, in te kriterije uporabili pri analizi situacije v skupini ArcelorMital. Rezultati: Naša analiza je pokazala, da ArcelorMital skupina ustreza skoraj vsem kriterijem učinkovitega managementa znanja v intra-organizacijskih omrežjih. Nekatere izjeme so vsaj v določeni meri posledica zgodovinskih okoliščin, na primer procesa rasti, ki izhaja iz prevzemov, predvsem prevzemov podjetij na različnih stopnjah organizacijskega razvoja in različne organizacijske kulture. Zaključek: Na osnovi teoretičnih izhodišč je podana podrobna analiza komponent managementa znanja v obravnavani korporaciji. Na osnovi naše študije je mogoče oblikovati hipoteze in jih preveriti na večji skupini podjetij z različnih sektorjev gospodarstva. Poglavitna omejitev naše študije je predvsem v samem pristopu. Ključne besede: znanje, prenos znanja, management znanja, omrežje, študija primera. DOI: 10.2478/orga-2014-0004 Work-life Balance by Area, Actual Situation and Expectations -the Overlapping Opinions of Employers and Employees in Slovenia Tatjana Kozjek, Nina Tomaževič, Janez Stare University of Ljubljana, Faculty of Administration, Gosarjeva Street 5, 1000 Ljubljana, Slovenia tatjana.kozjek@fu.uni-lj.si, nina.tomazevic@fu.uni-lj.si, janez.stare@fu.uni-lj.si Background: The question of work-life balance (WLB) is an area where increasing attention is being paid nowadays. States, organisations and employees all have responsibility and a role to play in WLB. This article presents the important areas of the WLB by key players in this field. Purpose: The purpose of the research was to compare and analyse the differences between the actual situation and the expectations of employers and employees with regard to specific areas of WLB in Slovenia. Methodology: Data was gathered using the Computer Assisted Web Interview (CAWI) method. In the first part of the research project, employers across all sectors of the economy in Slovenia were questioned and in second part focussed on employees. In order to verify the areas in which employers and employees agree and those in which there are differences in perception, multidimensional scaling (MDS) was used. Results: The results of our research show that Slovenian organisations must pay more attention to flexible working time, the employees' ability to take time off to care for family members, time and stress management workshops and paid leave for parents on a child's first day of school. Conclusion: A significant role in WLB is played by organisations. The incorporation of WLB strategies into the strategic and financial planning of an organisation can, in fact, have positive business, economic and social effects. Employees have to express their expectations and needs, which is the only way that employers can be made aware of their problems and help with WLB. State responsibility is to encourage all social partners to shape the living environment in which employees' can achieve a good WLB with an emphasis on gender equality. Keywords: work-life balance, the state, employer, employee, multidimensional scaling (MDS) 1 Introduction Finding a balance between different spheres of life or work-life balance (WLB) requires a variety of measures and good cooperation between employees, organisations, schools, nursery schools, trade unions, local communities and the state. All the stakeholders need to be aware of the existence of the problem of WLB and of their responsibilities for addressing it. The purpose of the research presented in this article was to compare and analyse the differences between the actual situation and the expectations of employers and employees with regard to specific areas of WLB in Slovenia. It was part of the research project entitled Improving the Working Environment with Innovative Solutions (INODEL), which was part-financed by the European Union from the European Social Fund (ESF). Data was gathered using the Computer Assisted Web Interview (CAWI) method. The INODEL Received: 27th October 2013; revised: 8th December 2013; accepted: 22th December 2013 research project was carried out in two parts. In the first part of the research, a link to an online questionnaire was e-mailed to random selected organisations across all the sectors of the economy in Slovenia that had a published e-mail address either in business directories or on a company website. In the second part of the research, private and public sector employees were invited to complete the online questionnaire. A link to the online questionnaire was e-mailed to random selected organisational personnel departments across all the sectors of the economy in Slovenia. We asked them to forward our e-mail to their employees. The questions related to WLB that employees answered were identical to the employers' questions. The research examined the following research questions: ■ Do employers perceive that the WLB of employees is poor in some areas of working life? ■ Do employees perceive that their WLB is poor in some areas of working life? ■ Is there a discrepancy in the perception of employees' WLB in the investigated areas of working life between employers and employees? ■ In order to verify the areas where employers and employees agree and those where there are differences in perception, multidimensional scaling (MDS) was used. The first part of this article represents important areas by key players (state, organizations and employers) in the field of WLB. In the second part the results of a comparison and the differences between the actual situation and the expectations of employers and employees with regard to individual areas of WLB in Slovenia are shown. 2 Important areas and measures by key players in the field of WLB WLB is about seeking the most effective possible combination of working life and private obligations or aspirations (Littig, 2008). WLB, situated within a capabilities framework, is a lens through which to view WLB alternatives, quality of life and wellbeing. It is a framework for analysing access to rights and policies for WLB and the possibilities of making claims for them (Hobson, 2014). Given the increased participation of women in the labour force and in the number of dual-earner families, work-life concerns have become an important public policy issue (Bonet et al., 2013). Den Dulk et al. (2014) write that individual capabilities to find a satisfactory WLB are shaped at various levels of society: the state, the workplace and the household. Fahlen (2014) states that institutional factors (rights and laws) and societal factors (gender norms) are two key components for understanding an individual's capabilities for WLB. Significant differences are developing between countries in terms of WLB. Vandell and Shumow (1999), OECD (2007), Hong (2009), Fernandez Cordon (2009), Den Dulk and Doorne-Huiskes (2010) and Den Dulk et al. (2014) describe the following main policy instruments in WLB: childcare, working time, tax/financial aid and parental leave policies, public services, allowances to cover childcare costs, work and family incentives and broad social support for children and parents. Research by the OECD (2008), COFACE (2008), Fernandez Cordon (2009), Thevenon (2008), Wharton (2012) and Hobson (2014) point out that the importance of WLB has proved significant in family planning, the temporary or permanent exit of parents from the labour market, childcare (for pre-school children, in the case of illness, the lack of synchronisation of working and school hours, during school holidays), caring for elderly members and quality of life. Fagnani (2010) performed a comparative analysis of fertility levels in six countries (France, Netherlands, Portugal, Sweden and the UK) and found out that where family-friendly public policy has had a positive impact on fertility levels, the common denominator has been the availability of affordable, high quality childcare, along with legal provisions regulating work leave and work schedules related to children. Begall and Mills (2011) examine the link between employment and fertility using data from 23 countries from the 2004/5 European Social Survey (ESS) for women. They found out that labour force experience, working hours, the educational attainment of a woman and her partner, the prevalence of part-time work, etc. are strong predictors of the intention to become a mother. Hobson (2014) writes that distinctions between work and non-work have become less clear in the case of care. According to Fagan and Walthery (2014), in most countries the main reason women take part-time employment is that it is one way to balance the time demands of employment with the responsibilities of housework and providing care for children and elders. Warren et al. (2009) researched innovative social policies drawn from the European arena (universal systems of childcare, a shorter working week and shared parental leave) asking about their relevance to the WLB of low-waged coupled mothers in England. They found out that key problems persist concerning access to affordable, reliable childcare. Poorly qualified women are more likely to stop paid work when they have children, and return to marginalized, low paid jobs with short part-time hours. Fox et al. (2009) researched how fathers in the EU managed their WLB, and how alternative social policy strategies would fit with their practices and ideals. He found out that social policies supporting men's care (particularly parental leave dedicated to fathers) are needed to enhance gender equality and work family balance for men and women. Albanese and Farr (2012) researched the complex task of finding and managing formal and informal non-parental child care in rural and semi-rural communities in two policy jurisdictions (Ontario and Quebec) in the Ottawa Valley and discovered that finding and managing child care has a lot to do with gendered perceptions of control and powerlessness over social circumstances related to geography and government policies, as well as the changing and at times precarious economic/labour market circumstances. Vandell and Shumow (1999) state that families in America must continue to arrange care for their school-age children, because the school day is considerably shorter than an adult's full-time workday. Child care is important between school holidays, teacher in-service days and summer vacations as well. Some parents are able to fill this time with formal after-school programs; others patch together care by shifting work schedules, hiring sitters, relatives or neighbours, and setting up activities such as piano lessons and scouts on different days; some children take care of themselves. The European Economic and Social Committee (2007) encourages social partners to launch regional-level and local-level initiatives, bringing together committed players (businesses, works councils, parents' groups, faith-based communities, sports clubs and local representatives) in order to shape the living environment in such a way as to secure the best possible WLB. COFACE (2008) and Hinkin and Tracy (2010) also emphasise that: ■ leave schemes (encompassing security aspects and flexibility) meeting the wide variety of family needs must be enshrined in legislation, ■ part-time work must be upgraded (payment, social rights, status on the labour market), ■ flexible working time arrangements must be further promoted, ■ the times of public services must be coordinated (preschool childcare provision, out-of-school childcare provision (including during school holidays and while a child is sick), school meals, home care services, offices), ■ gender equality must be taken into account (the changing roles of men and women). The findings of the OECD (2008) indicate that a significant role in the WLB is played by organisations (employers). According to Den Dulk et al. (2014), organisations can influence the capabilities and freedom of employees to balance work/life arrangements. They write that work/life policy needs to be integrated into an organizational culture that is concerned with the responsibilities of employees outside of work. Wharton (2012) writes that organizations play a critical role in shaping employees' work-family experiences. Changing the workplace is central to improving the quality of people's work-family experience. Working conditions and workplace policies can ease or exacerbate people's efforts to handle their home and work responsibilities. According to Hobson (2014), organisations have become a mediator in granting or denying claims, an actor initiating new policies in flexible working schemes, and even a place where information is disseminated or withheld. Working time policies can lead to enhanced capabilities for WLB. The possibility of organizing one's working time (flexibility) can be a capability for participating in earning and caring as well. Wharton (2012) states that in general, larger organizations are more likely to have the resources to offer work-family policies than those with fewer employees. Offering family-friendly policies helps these companies signal their concern for employees and their families, and these signals are good for recruiting top employees. Kanjuo Mrčela and Černigoj Sadar (2014) researched the capabilities for WLB in the service sector and the IT industry in Slovenia and found out that the interconnectedness of the structural, firm level and individual characteristics (gender, skills, education, professional or nonprofessional status, support networks (family, parents and colleagues)) describe the employees' capabilities to make claims for WLB. ILO (2004a), the European Foundation for the Improvement of Living and Working Conditions (2007), the European Economic and Social Committee (2007) and Hong (2009) list the following family-friendly organisational policy measures: ■ the legal security of an employment contract, ■ long-term and non-discriminatory career plans, ■ the introduction of working time arrangements (e.g. employees plan their working day, part-time work, flexible start and end times, shorter working hours/days, tele-working, a compressed working week, job sharing, time-banking), ■ schemes giving staff the opportunity to keep in touch with work during parental leave, ■ assistance in the organisation of childcare (e.g. assistance in finding and paying for childcare, the organisation of childcare), ■ special leave (e.g. paid leave for parents on a child's first day of school), ■ support in caring for elderly relatives or other relatives who need care. Hinkin and Tracy (2010) and Arbon et al. (2012) write that proactive scheduling appears to be popular with employees. Their primary approaches to workplace flexibility are job sharing, a compressed work week, and flexitime. Hashiguchi (2010), Buehler and O'Brien (2011) mention working at home and switching full-time to part-time hours. Den Dulk et al. (2014) write that flexible working arrangements allow employees to adapt working hours or place of work to responsibilities outside work, for instance to work from home in the case of a sick child or other family member. Galea et al. (2013) researched how employees experience the influence of flexible working hours on their WLB. The main finding is that working with flexible working hours, if supported by the management and fitting in with the working culture, is highly appreciated for both private and work-related reasons. The more family responsibilities the respondents have, the more they tend to perceive flexible working hours as a necessity rather than an extra benefit. Kelly et al. (2011) studied a schedule flexibility initiative at Best Buy Co. Inc. and discovered that white-collar workers who participated in the initiative reported lower levels of work-life conflict and higher levels of WLB than comparable employees, which lends support to those who believe that changes in working conditions (including those made possible by an employee's use of a workplace policy) can be effective in improving employees' work and family lives. Bonet et al. (2013) used data on women's work and fertility histories from the Spanish Continuous Sample of Working Histories and analysed whether more women changed temporary contracts to self-employment upon motherhood than those with permanent contracts. They found out that women employed with a temporary contract are much more likely to switch to self-employment upon motherhood than women with a permanent contract. They interpret the result as evidence that temporary working women have a greater need than permanent ones to look for an alternative employment that allows them better WLB. The ILO (2004) underlines the fact that WLB strategies incorporate into the strategic and financial planning of an organisation have positive effects on business, economic and social areas. Kelly et al. (2008) write that an understanding of how organizations respond to work-family issues is also important due to the impact of these responses on employees' work attitudes and behaviour and family life, as well as their impact on the organization's own reputation and success. Helpern (2005), Davis and Kalleberg (2006), Van Dyne et al. (2007), Kelly et al. (2008) and Kossek and Michel (2010) write that flexibility has a positive impact on WLB, motivation, job satisfaction, productivity and retaining the best employees, as well as better quality services and products, increased commitment to the organization and lower costs; all of which have a positive impact on efficiency. 3 Methodology Research into WLB in Slovenia was performed by the Faculty of Administration, University of Ljubljana. It was part of the research project entitled Improving the Working Environment with Innovative Solutions (INODEL), which was part-financed by the European Union from the European Social Fund (ESF). The purpose of this research was to compare and analyse differences between the actual situation and the expectations of employers and employees with regard to individual areas of WLB in Slovenia. Data was gathered using the Computer Assisted Web Interview (CAWI) method. The INODEL research project was carried out in two parts. In the first part of the research (February 2011), a questionnaire was e-mailed to n =18,175 randomly selected organisations across all sectors of the economy in Slovenia with a published e-mail address either in business directories or on a company website. The response rate was 5.6%; a total of n = 1,009 organisations responded. The representatives of the organisations were, in the largest number of cases, human resources officers (34.9%), followed by directors and/or CEOs (25.3%), human resources managers (17.4%) and secretaries/assis- Table 1: First research - sample characteristics and population comparison (Statistical Office of the Republic of Slovenia (SORS), 2009) Organization Population Sample Type Limited liability and public Other Size < 250 > 250 Region Central Podravska Savinjska Other 247037 (91.6%) 22521 (8.4%) 486804 (76.6%) 148446 (23.4%) 46599 (34%) 19042 (13.9%) 14784 (10.8%) 56618 (41.3%) 920 (91.3%) 88 (8.7%) 975 (96.8%) 32 (3.2%) 360 (35.7%) 138 (13.7%) 121 (12%) 389 (38.6%) 0.14 227.96 4.06 0.709 < 0.001 0.255 2 p X Table 2: Second research - sample characteristics and population comparison (Labour force, SORS, 2011) Characteristic Population Sample X2 p Gender Male 456823 (55.8%) 412 (53.2%) 1.94 0.16 Female 362152 (44.2%) 362 (46.8%) Education Primary 123631 (15.2%) 3 (0.4%) 804.1 <0.001 Secondary 477356 (58.6%) 225 (29.1%) Postsecondary or higher 213789 (26.2%) 546 (70.5%) Age < 25 35307 (4.3%) 10 (1.3%) 96.53 <0.001 26 do 30 97176 (11.9%) 47 (6.1%) 31 do 35 128876 (15.7%) 107 (13.8%) 36 do 40 126973 (15.5%) 99 (12.8%) 41 do 45 126625 (15.5%) 180 (23.3%) 46 do 50 129007 (15.8%) 173 (22.4%) 51 do 55 109204 (13.3%) 104 (13.4%) > 55 65807 (8%) 54 (7%) tants (13.1%). The sample included 91.3 % limited liability and public companies, 96.8 % companies with 250 or fewer employees and 35.7% companies from the Central Slovenia region. Among the companies in the sample, the share of large companies, i.e. companies with more than 250 employees, was too small compared to the population. The structure of the organisations by region and legal status was similar to the structure of the statistical population (Table 1). In the second part of the research (June 2011), employees were invited to complete an online questionnaire. A link to the online questionnaire was e-mailed to random selected organisational personnel departments across all sectors of the economy in Slovenia. We asked them to forward our e-mail to their employees. The questions related to WLB that the employees answered were identical to employers' questions. A total of n = 774 respondents completed the questionnaire. The sample included 53.2 % women, 29.4 % respondents with secondary education and 27 % respondents with post-secondary education or higher. 21.2 % of the respondents were under 36 years old. In comparison to the economically active population of Slovenia, the sample included too many people with at least a post-secondary qualification and too few people under the age of 36 (Table 2). The research examined the following research questions: ■ Research question 1: Do employers perceive that the WLB of employees is poor in some areas of working life? ■ Research question 2: Do employees perceive that their WLB is poor in some areas of working life? ■ Research question 3: Is there a discrepancy in the perception of employees' WLB in the investigated areas of working life between employers and employees? The WLB of employees in the following areas of working life was measured on a 5-point scale (1 = very poor; 5 = excellent): ■ flexible working time, ■ compressed working week, ■ half- or part-time work, ■ working from home, ■ non-discrimination against women, pregnant women, parents and other groups of employees with greater needs for a better WLB, ■ childcare provision for pre-school children and out-of-school care for school-age children (e.g. school holidays, national holidays), ■ paid leave for parents on a child's first day of school, ■ outings or social gatherings for employees' families, ■ the ability to take time off to care for other/elderly family members or a partner, ■ child supervision to and from school (e.g. escort on the bus), ■ workshops on time management and stress management (to manage employers' and employees' time and stress). The WLB of each area of working life was assessed and the mean (median; standard deviation) assessment was calculated. As the distribution of answers for each area was non-normal, the differences in the assessment between areas with a similar mean (median) assessment were examined using the Wilcoxon signed-ranked test. Where the difference was statistically significant, a different rank was assigned to each area otherwise areas were given the same rank. Ranks were assigned in such a way that the area with the highest mean and median assessment of WLB was given a rank of 1. Low ranks thus indicated a good situation in the area, while high ranks indicated a poor situation. The same procedure was used in the assessment of expectations by areas. In the assessment of working areas, gender differences and differences between respondents with or without preschool or school age children were tested using the MannWhitney U test, while differences between age groups were tested using the Kruskal-Wallis test. All the tests were carried out at the a = 0.05 significance level. A direct comparison of employees' and employers' answers was not straightforward because sampling was done independently for the first and second part of the research and the sample did not include employees and employers from the same companies. Still, comparison of the answers should be possible if the two groups were comparable regarding the control variable. The control variable was a general assessment of the WLB of employees. The answers from companies with a poor general WLB for their employees were compared to the answers of employees who assessed their general WLB as poor. In order to determine the working areas in which employers and employees agree regarding WLB and those in which there are differences in perception, multidimensional scaling (MDS) was used. The items in the research included areas of work-life balance in terms of both actual situation and expectations. The difference between them was calculated in terms of the similarity of the assessment given by employers and employees. A good aspect of MDS is the reduction of a multidimensional space into a manageable number of dimensions, which throws the clearest light on the variance of variables. 4 Results of the research The left-hand side of Table 3 outlines the mean (median; standard deviation) WLB of employees as perceived by employers in each of the investigated working areas, the tested pair of areas with a similar mean assessment, the result of the Wilcoxon signed-ranked test and assigned rank. The right-hand side of the table gives a similar outline for expectations. In the opinion of employers, WLB is best in the area of non-discrimination against groups of employees. This area is followed by flexible working time, a compressed working week and outings/social gatherings for employees' families. In their opinion, the poorest WLB is to be observed in the provision of childcare facilities for pre-school children and out-of-school childcare facilities for school-age children (e.g. during holidays), but employees' expectations of balance in this area are lower in the opinion of the employers as well. Areas by assigned ranks regarding the situation and expectations as observed by employers are showed in Fig. 1. The upper right quadrant shows areas where, in the opin- Table 3: Average assessments (median; standard deviation) of the situation and expectations by areas and attributed rank (R), arranged by R for expectations - employers AREAS SITUATION Pair Z R EXPECTATIONS Pair Z R 1 Flexible WT 3.45 (4; 1.2) 1;5 -2.1* 3 3.94 (4; 0.77) 1;2 -2.3* 1 2 Non-discrimination 3.64 (3; 0.92) 2;6 -2 7** 1 3.86 (4; 0.79) 2;3 -3.0** 2 3 Compressed WW 3.46 (4; 1.24) 3;1 -0.3 3 3.73 (4; 0.93) 3;4 -0.8 4.5 4 Child supervision TFS 2.51 (3; 0.82) 4;7 -5.3* 6 3.71 (3; 0.88) 4;5 -0.6 4.5 5 Part-time work 3.31 (4; 1.4) 5;4 -12.6** 5 3.68 (3; 0.89) 5;6 -0.04 4.5 6 Family gatherings 3.49 (4; 1.13) 6;3 -0.5 3 3.69 (4; 0.7) 6;7 -3.6** 4.5 7 Working from home 2.36 (2; 0.77) 7;11 -6.9** 7 3.49 (3; 1.14) 7;8 -2.4* 7 8 Paid leave FTS 1.48 (1; 0.67) 8;9 -5.4** 10 3.4 (3; 0.51) 8;9 -15.4** 8 9 Childcare during work 1.34 (1; 0.48) 11 3.08 (3; 0.27) 9;10 -1.7 10 10 SM workshops 1.86 (2; 0.94) 10;8 -9.9** 9 3.03 (3; 0.87) 10;11 -1.3 10 11 Help to take care of FM 2.09 (2; 0.86) 11;10 -5.9** 8 2.98 (3; 0.83) 10 Notes: WT = working time; WW = working week; FTS = first day of school; FM = family members; SM = stress management; TFS = to and from school; * p < 0.05; ** p < 0.01 ion of employers, the situation is good and expectations are high, while the lower left quadrant shows areas where the situation is poor and expectations are low. The areas in the upper left and lower right quadrant are areas where there is a greater discrepancy between the actual situation and expectations. Areas where, in employers' opinion, the situation is good and expectations are high are flexible working time, non-discrimination against groups of employees with a greater need for WLB, outings and social gatherings for employees' families, and half-time or part-time work. The situation is poor regarding paid leave for parents on a child's first day of school, working from home, workshops on time management and stress management, the ability to take time off to care for family members, and the provision of childcare facilities for pre-school and school-age children, but these are areas where, in the employers' opinion, the expectations of employees are also poor. In all the listed working areas form the upper right and lower left quadrant, in the opinion of employers, the situation reflects the expectations of employees and therefore no special attention or time investment in improvement in these areas is needed. The only discrepancy between the situation and the expectations, in the opinion of employers, exists regarding child supervision to and from school. This is the only area where the situation is poor while expectations are high. In the opinion of employees, WLB is best in the area of non-discrimination against groups of employees. This area is followed by half-time or part-time work. The following areas received equally high assessments: flexible working time, working from home, and outings/social gatherings for employees. The worst situation, in the opinion of employees, is paid leave for parents on a child's first day of school. The provision of child supervision to and from school is also very poor. Employees' expectations are highest regarding the organisation of childcare for pre-school children and out-of-school childcare for school-age children during school holidays. This is followed by a whole group of areas where expectations regarding balance are equally strong or high. These are the areas of non-discrimination against groups of employees, paid leave for parents on a child's first day of school, outings/social gatherings for employees' families, the ability to take time off to care for other family members, child supervision to and from school and workshops on time management and stress management. Expectations are lowest regarding flexible working time and working from home. These are also areas that, in the opinion of employees, are relatively well regulated. The discrepancy High expecfa^ons child supervision to and from scliool 11 10 5 lialf- or part-time worl< ♦ flexible worl