Search results for: Large enterprises

Authors: Christian Mayr, Matthias Ehrlich, Stephan Henker, Karsten Wendt, René Schüffny

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Traditionally, VLSI implementations of spiking neural nets have featured large neuron counts for fixed computations or small exploratory, configurable nets. This paper presents the system architecture of a large configurable neural net system employing a dedicated mapping algorithm for projecting the targeted biology-analog nets and dynamics onto the hardware with its attendant constraints.

Keywords: Large scale VLSI neural net, topology mapping, complex pulse communication.

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Authors: Tadayuki Kyoutani, Shigeyuki Haruyama, Ken Kaminishi, Zefry Darmawan

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Japan’s semiconductor industries have developed greatly in recent years. Many were started from a Small and Medium-sized Enterprises (SMEs) that found at a good circumstance and now become the prosperous industries in the world. Sustainable growth factors that support the creation of spirit value inside the Japanese company were strongly embedded through performance. Those factors were not clearly defined among each company. A series of literature research conducted to explore quantitative text mining about the definition of sustainable growth factors. Sustainable criteria were developed from previous research to verify the definition of the factors. A typical frame work was proposed as a systematical approach to develop sustainable growth factor in a specific company. Result of approach was review in certain period shows that factors influenced in sustainable growth was importance for the company to achieve the goal.

Keywords: SME, manufacture, sustainable, growth factor.

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Authors: Jiří F. Urbánek, David Král

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Small and Middle Enterprises (SME) have a specific mission, characteristics, and behavior in global business competitive environments. They must respect policy, rules, requirements and standards in all their inherent and outer processes of supply - customer chains and networks. Paper aims and purposes are to introduce computational assistance, which enables us the using of prevailing operation system MS Office (SmartArt...) for mathematical models, using DYVELOP (Dynamic Vector Logistics of Processes) method. It is providing for SMS´s global environment the capability and profit to achieve its commitment regarding the effectiveness of the quality management system in customer requirements meeting and also the continual improvement of the organization’s and SME´s processes overall performance and efficiency, as well as its societal security via continual planning improvement. DYVELOP model´s maps - the Blazons are able mathematically - graphically express the relationships among entities, actors, and processes, including the discovering and modeling of the cycling cases and their phases. The blazons need live PowerPoint presentation for better comprehension of this paper mission – added value analysis. The crisis management of SMEs is obliged to use the cycles for successful coping of crisis situations.  Several times cycling of these cases is a necessary condition for the encompassment of the both the emergency event and the mitigation of organization´s damages. Uninterrupted and continuous cycling process is a good indicator and controlling actor of SME continuity and its sustainable development advanced possibilities.

Keywords: Blazons, computational assistance, DYVELOP method, small and middle enterprises.

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Authors: C. A. Oloo, C. Ojwang

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The performances of small and medium enterprises have stagnated in the last two decades. This has mainly been due to the emergence of HIV / Aids. The disease has had a detrimental effect on the general economy of the country leading to morbidity and mortality of the Kenyan workforce in their primary age. The present study sought to establish the economic impact of HIV / Aids on the micro-enterprise development in Obunga slum – Kisumu, in terms of production loss, increasing labor related cost and to establish possible strategies to address the impact of HIV / Aids on microenterprises. The study was necessitated by the observation that most micro-enterprises in the slum are facing severe economic and social crisis due to the impact of HIV / Aids, they get depleted and close down within a short time due to death of skilled and experience workforce. The study was carried out between June 2008 and June 2009 in Obunga slum. Data was subjected to computer aided statistical analysis that included descriptive statistic, chi-squared and ANOVA techniques. Chi-squared analysis on the micro-enterprise owners opinion on the impact of HIV / Aids on depletion of microenterprise compared to other diseases indicated high levels of the negative effects of the disease at significance levels of P<0.01. Analysis of variance on the impact of HIV / Aids on the performance and productivity of micro-enterprises also indicated a negative effect on the general performance of micro-enterprise at significance levels of P<0.01. Therefore reducing the negative impacts of HIV/Aids on micro-enterprise development, there is need to improve the socioeconomic environment, mobilize donors and stake holders in training and funding, and review the current strategies for addressing the disease. Further conclusive research should also be conducted on a bigger scale.

Keywords: Entrepreneurship, HIV-AIDS, Micro-enterprise, Poverty.

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Authors: Somdech Rungsrisawas

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The objectives of this study are to examine the relationship between the competitive advantage of small and medium enterprises (SMEs) and their overall performance. A mixed method has been applied to identify the effect of determinants toward competitive advantage. The sample is composed of SMEs in product and service businesses. The study has been tested at an organizational level with samples of SME entrepreneurs, business successors, and board of directors or management team. Quantitative analysis has been conducted through multiple regression analysis with 400 samples. The findings illustrate that each aspect of competitive advantage needs a different set of driving factors to explain either the direct or the indirect effect on firm performance. Interestingly, technological capability is a perfect mediator and interorganizational cooperation toward competitive advantage. In addition, differentiation is difficult to be perceived by customers, as well as difficult to manage; however, it is considered important to develop an SMEs product or service for firm sustainably.

Keywords: Competitive advantage, firm performance, technological capability, small and medium enterprise, SMEs.

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Authors: Wanida Suwunniponth

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The objectives of this research paper were to study the influencing factors that contributed to the success of electronic commerce (e-commerce) and to study the approach to enhance the standard of e-commerce for small and medium enterprises (SME). The research paper focused the study on only sole proprietorship SMEs in Bangkok, Thailand. The factors contributed to the success of SME included business management, learning in the organization, business collaboration, and the quality of website. A quantitative and qualitative mixed research methodology was used. In terms of quantitative method, a questionnaire was used to collect data from 251 sole proprietorships. The System Equation Model (SEM) was utilized as the tool for data analysis. In terms of qualitative method, an in-depth interview, a dialogue with experts in the field of ecommerce for SMEs, and content analysis were used. By using the adjusted causal relationship structure model, it was revealed that the factors affecting the success of e-commerce for SMEs were found to be congruent with the empirical data. The hypothesis testing indicated that business management influenced the learning in the organization, the learning in the organization influenced business collaboration and the quality of the website, and these factors, in turn, influenced the success of SMEs. Moreover, the approach to enhance the standard of SMEs revealed that the majority of respondents wanted to enhance the standard of SMEs to a high level in the category of safety of e-commerce system, basic structure of e-commerce, development of staff potentials, assistance of budget and tax reduction, and law improvement regarding the e-commerce respectively.

Keywords: Electronic Commerce, Influencing Factors, Small and Medium Enterprises.

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Authors: Stephen C. H. Leung, Defu Zhang

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This paper addresses a stock-cutting problem with rotation of items and without the guillotine cutting constraint. In order to solve the large-scale problem effectively and efficiently, we propose a simple but fast heuristic algorithm. It is shown that this heuristic outperforms the latest published algorithms for large-scale problem instances.

Keywords: Combinatorial optimization, heuristic, large-scale, stock-cutting.

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Authors: V. Narasimha Raghavan, M. Venkatesh, T. Peer Meera Labbai, Praveen Dwarakanath Prabhu

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The performance and complexity of QoS routing depends on the complex interaction between a large set of parameters. This paper investigated the scaling properties of source-directed link-state routing in large core networks. The simulation results show that the routing algorithm, network topology, and link cost function each have a significant impact on the probability of successfully routing new connections. The experiments confirm and extend the findings of other studies, and also lend new insight designing efficient quality-of-service routing policies in large networks.

Keywords: QoS, Link-State Routing, Dijkstra, Path Selection, Path Computation.

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Authors: M. Kidouche, H. Habbi, M. Zelmat, S. Grouni

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In analyzing large scale nonlinear dynamical systems, it is often desirable to treat the overall system as a collection of interconnected subsystems. Solutions properties of the large scale system are then deduced from the solution properties of the individual subsystems and the nature of the interconnections. In this paper a new approach is proposed for the stability analysis of large scale systems, which is based upon the concept of vector Lyapunov functions and the decomposition methods. The present results make use of graph theoretic decomposition techniques in which the overall system is partitioned into a hierarchy of strongly connected components. We show then, that under very reasonable assumptions, the overall system is stable once the strongly connected subsystems are stables. Finally an example is given to illustrate the constructive methodology proposed.

Keywords: Comparison principle, First integral, Large scale system, Lyapunov stability.

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Authors: Oscar Javier Herrera Ochoa, Ivan Dario Romero Fonseca

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This paper presents a design of a model for planning the distribution logistics operation. The significance of this work relies on the applicability of this fact to the analysis of small and medium enterprises (SMEs) of dry freight in Bogotá. Two stages constitute this implementation: the first one is the place where optimal planning is achieved through a hybrid model developed with mixed integer programming, which considers the transhipment operation based on a combined load allocation model as a classic transshipment model; the second one is the specific routing of that operation through the heuristics of Clark and Wright. As a result, an integral model is obtained to carry out the step by step planning of the distribution of dry freight for SMEs in Bogotá. In this manner, optimum assignments are established by utilizing transshipment centers with that purpose of determining the specific routing based on the shortest distance traveled.

Keywords: Transshipment model, mixed integer programming, saving algorithm, dry freight transportation.

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Authors: Rotchanakitumnuai, Siriluck

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The objectives of the study are to examine the determinants of ERP implementation success factors of ERP implementation. The result indicates that large scale ERP implementation success consist of eight factors: project management competence, knowledge sharing, ERP system quality , understanding, user involvement, business process re-engineering, top management support, organization readiness.

Keywords: large scale ERP, implementation success factors, Thailand

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Authors: A-M. Saarela

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At the Savonia University of Applied Sciences (UAS), curriculum and studies have been improved by applying an Open Innovation Space approach (OIS). It is based on multidisciplinary action learning. The key elements of OIS-ideology are work-life orientation, and student-centric communal learning. In this approach, every participant can learn from each other and innovations will be created. In this social innovation educational approach, all practices are carried out in close collaboration with enterprises in real-life settings, not in classrooms. As an example, in this paper, Savonia UAS’s Future Food RDI hub (FF) shows how OIS practices are implemented by providing food product development and consumer research services for enterprises in close collaboration with academicians, students and consumers. In particular one example of OIS experimentation in the field is provided by a consumer research carried out utilizing verbal analysis protocol combined with audiovisual observation (VAP-WAVO). In this case, all co-learners were acting together in supermarket settings to collect the relevant data for a product development and the marketing department of a company. The company benefitted from the results obtained, students were more satisfied with their studies, educators and academicians were able to obtain good evidence for further collaboration as well as renewing curriculum contents based on the requirements of working life. In addition, society will benefit over time as young university adults find careers more easily through their OIS related food science studies. Also this knowledge interaction model re-news education practices and brings working-life closer to educational research institutes.

Keywords: Collaboration, education, food science, industry, knowledge transfer, RDI, student.

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Authors: O. Punjarat, S. Chucheepsakul, T. Phanyasahachart

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This paper focuses on a variational formulation of large amplitude free vibration behavior of a very sag marine cable. In the static equilibrium state, the marine cable has a very large sag configuration. In the motion state, the marine cable is assumed to vibrate in in-plane motion with large amplitude from the static equilibrium position. The total virtual work-energy of the marine cable at the dynamic state is formulated which involves the virtual strain energy due to axial deformation, the virtual work done by effective weight, and the inertia forces. The equations of motion for the large amplitude free vibration of marine cable are obtained by taking into account the difference between the Euler’s equation in the static state and the displaced state. Based on the Galerkin finite element procedure, the linear and nonlinear stiffness matrices, and mass matrices of the marine cable are obtained and the eigenvalue problem is solved. The natural frequency spectrum and the large amplitude free vibration behavior of marine cable are presented.

Keywords: Axial deformation, free vibration, Galerkin Finite Element Method, large amplitude, variational method.

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Authors: Ebere U. Okolo, Eunice C. Okpalaojiego, Chimaobi V. Okolo

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Some investors prefer to keep their money in the bank rather than invest in Small and Medium Enterprise (SME) due to the high cost of running small and medium scale enterprise in Enugu State. This cost primarily concerns multiple-taxation, enormous tax burdens, levies and charges. This study examines the effect of multiple-taxation on the investments in SMEs. The study used survey design with SME population of 80. Questionnaire was used to collect data. Simple percentages/frequencies were used to analyze the data and the research hypotheses were tested with ANOVA. It was found that multiple taxation has negative effect on SMEs investment. Furthermore, the relationship between SMEs investment and its ability to pay tax is significant. The researcher recommends that government should develop a tax policy that considers the enhancement of SMEs’ capital allowance when imposing taxes. Government should also consider a tax policy that encourages investment in SMEs by consolidating all taxes in one slot and latter disseminate to various government purses rather than having many closely related but different taxes at the same time.

Keywords: Investments, multiple taxation, small and medium enterprises.

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Authors: Suselo Thomas, Suyoto, Dwiandiyanta B. Yudi

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This paper explain about prototype of a business directory for micro-scale businesses, small and medium enterprises (SMEs), the third phase of the research. The third phase is the phase of software development based on the model of SME business directory that had been developed, to create prototype software SME business directory. In the fourth phase, namely the implementation, these units have been developed are tested to obtain input from potential users. The fifth phase is the testing phase to determine the strengths and weaknesses of software has been developed. The result of this phase is the software in the form of on-line (web based) and multimedia-based. Business Directory, if implemented will facilitate and optimize the access of SMEs to ease supplier access to marketing. Business Directory will be equipped with the power of geocoding, so each location can be easily viewed SMEs on the map. The map will be constructed by using the functionality of a web-based Google Maps API. The information presented in the form of multimedia that can be more interesting and interactive. Methodology used to achieve the goal: observation, interviews, modeling and classifying business directory for SMEs. 

Keywords: Business directories, SMEs, Google Maps API, Multimedia, Prototype.

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Authors: Sanja Pfeifer, Nataša Šarlija, Marina Jeger, Ana Bilandžić

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The purpose of this study is to explore the different facets of growth among micro, small and medium-sized firms in Croatia and to analyze the differences between models designed for all micro, small and medium-sized firms and those in creative industries. Three growth prediction models were designed and tested using the growth of sales, employment and assets of the company as dependent variables. The key drivers of sales growth are: prudent use of cash, industry affiliation and higher share of intangible assets. Growth of assets depends on retained profits, internal and external sources of financing, as well as industry affiliation. Growth in employment is closely related to sources of financing, in particular, debt and it occurs less frequently than growth in sales and assets. The findings confirm the assumption that growth strategies of small and medium-sized enterprises (SMEs) in creative industries have specific differences in comparison to SMEs in general. Interestingly, only 2.2% of growing enterprises achieve growth in employment, assets and sales simultaneously.

Keywords: Creative industries, growth prediction model, growth determinants, growth measures.

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Authors: Tetsuki Taniguchi, Yoshio Karasawa

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This paper describes a subarray based low computational design method of multiuser massive multiple input multiple output (MIMO) system. In our previous works, use of large array is assumed only in transmitter, but this study considers the case both of transmitter and receiver sides are equipped with large array antennas. For this aim, receive arrays are also divided into several subarrays, and the former proposed method is modified for the synthesis of a large array from subarrays in both ends. Through computer simulations, it is verified that the performance of the proposed method is degraded compared with the original approach, but it can achieve the improvement in the aspect of complexity, namely, significant reduction of the computational load to the practical level.

Keywords: Massive multiple input multiple output (MIMO), multiuser, large array, subarray, zero forcing, singular value decomposition.

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Authors: Libin Wu, Bainian Li

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In This Article We establish moment inequality of dependent random variables,furthermore some theorems of strong law of large numbers and complete convergence for sequences of dependent random variables. In particular, independent and identically distributed Marcinkiewicz Law of large numbers are generalized to the case of m0-dependent sequences.

Keywords: Lacunary System, Generalized Gaussian, NA sequences, strong law of large numbers.

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Authors: M.O. Balabekova, O.S. Balabekov

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The paper deals with hydrodynamics of liquid-gas layers under gas streaming through liquid layer on perforated plates in column apparatuses. The plates with large apertures have been investigated especially. It was shown that hydrodynamic regularities for these plates are essentially different from known laws for foam forming on fine-perforated plates. Main regularities of liquid-gas interaction on plates with large apertures have been established.

Keywords: column apparatus, large aperture, liquid-gas layer, perforated plate.

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Authors: Hamide Özyürek, Metin Yılmaz

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Standard processes, similar and limited production lines, the production of high direct costs will be more accurate than the use of parts of the traditional cost systems in the literature. However, direct costs, overhead expenses, in turn, decrease the burden of increasingly sophisticated production facilities, a situation that led the researchers to look for the cost of traditional systems of alternative techniques. Variety cost management approaches for example Total quality management (TQM), just-in-time (JIT), benchmarking, kaizen costing, targeting cost, life cycle costs (LLC), activity-based costing (ABC) value engineering have been introduced. Management and cost applications have changed over the past decade and will continue to change. Modern cost systems can provide relevant and accurate cost information. These methods provide the decisions about customer, product and process improvement. The aim of study is to describe and explain the adoption and application of costing systems in SME. This purpose reports on a survey conducted during 2014 small and medium sized enterprises (SME) in Ankara. The survey results were evaluated using SPSS18 package program.

Keywords: Cost Accounting, Costing, Modern Costing Systems, Managerial Accounting.

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Authors: N. Ikasari, T. Sumransat, U. Eko, R. Kusumastuti

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Small and medium enterprises (SMEs) are regarded as the engine for economic development, notwithstanding their continuous financing conundrum. In the case of developing countries, access to finance is a reflection of the effectiveness of government policy. The widely accepted perspective to assess small businesses’ access to finance is that of economic view. The existing body of literature presents access to finance in three dimensions; they are accessibility, eligibility and affordability. Within this perspective, the role of socio-cultural has not explored. This study is aimed at investigating the existence of any socio-cultural factors within access to finance issue in Asian countries where governance is enriched by countries’ values and beliefs. The significance of this study is the instigation of supplementary dimension to assess access to finance that eventually contributes to the development of micro-finance policy. Indonesia and Thailand are selected as cases in point, where distinction is drawn on the level of cultural diversity and micro-finance policy in respective country. A questionnaire is used to collect information related to the three dimensions of access to finance as well as to explore alternative financing reasoning to elaborate the issue from the demand side. Questionnaires are distributed to 60 small business owners operating in Indonesia and the same number in Thailand. In order to present a complete understanding on the matter at hand, interviews with banks are conducted to capture the perspective as presented by the supply side. Research findings show that small business owners and banks in Indonesia and Thailand are in agreement that access to finance is not deemed as an issue. However, trust issue that exists mutually between financing users and providers leads small business owners in Indonesia to look for alternative financing other than banks. The findings contribute to the refinement of micro-financing policy in Indonesia and Thailand.

Keywords: Access to finance, Indonesia, small and medium enterprises, Thailand.

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Authors: S. Barabas, A.Fota.

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In this paper is study the possibility of successfully implementing of hollow roller concept in order to minimize inertial mass of the large bearings, with major results in diminution of the material consumption, increasing of power efficiency (in wind power station area), increasing of the durability and life duration of the large bearings systems, noise reduction in working, resistance to vibrations, an important diminution of losses by abrasion and reduction of the working temperature. In this purpose was developed an original solution through which are reduced mass, inertial forces and moments of large bearings by using of hollow rollers. The research was made by using the method of finite element analysis applied on software type Solidworks - Nastran. Also, is study the possibility of rapidly changing the manufacturing system of solid and hollow cylindrical rollers.

Keywords: Large bearings, Von Mises stress, hollow rollers, flexible manufacturing system

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Authors: Amin Almasi

Abstract:

Reliability assessment and risk analysis of rotating machine rotors in various overload and malfunction situations present challenge to engineers and operators. In this paper a new analytical method for evaluation of rotor under large deformation is addressed. Model is presented in general form to include also composite rotors. Presented simulation procedure is based on variational work method and has capability to account for geometric nonlinearity, large displacement, nonlinear support effect and rotor contacting other machine components. New shape functions are presented which capable to predict accurate nonlinear profile of rotor. The closed form solutions for various operating and malfunction situations are expressed. Analytical simulation results are discussed

Keywords: Large Deformation, Nonlinear, Rotor.

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Authors: Kongsheng Zhang, Li Ge

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It is a one-sided hypothesis testing process for assessing bioequivalence. Bootstrap and modified large-sample(MLS) methods are considered to study individual bioequivalence(IBE), type I error and power of hypothesis tests are simulated and compared with FDA(2001). The results show that modified large-sample method is equivalent to the method of FDA(2001) .

Keywords: Individual bioequivalence, bootstrap, Bayesian bootstrap, modified large-sample.

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Authors: A. M. Fahim, G. Saake, A. M. Salem, F. A. Torkey, M. A. Ramadan

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Data clustering is an important data exploration technique with many applications in data mining. The k-means algorithm is well known for its efficiency in clustering large data sets. However, this algorithm is suitable for spherical shaped clusters of similar sizes and densities. The quality of the resulting clusters decreases when the data set contains spherical shaped with large variance in sizes. In this paper, we introduce a competent procedure to overcome this problem. The proposed method is based on shifting the center of the large cluster toward the small cluster, and recomputing the membership of small cluster points, the experimental results reveal that the proposed algorithm produces satisfactory results.

Keywords: K-Means, Data Clustering, Cluster Analysis.

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Authors: Lovorka Galetic, Zeljko Vukelic

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The advanced concepts of strategic and innovation management in the sphere of company dynamic and innovation capabilities, and achieving their mutual alignment and a synergy effect, are important elements in business today. This paper analyses the theory and empirically investigates the influence of a company’s dynamic capabilities on its innovation capabilities. A new multidimensional model of dynamic capabilities is presented, consisting of five factors appropriate to real time requirements, while innovation capabilities are considered pursuant to the official OECD and Eurostat standards. After examination of dynamic and innovation capabilities indicated their theoretical links, the empirical study testing the model and examining the influence of a company’s dynamic capabilities on its innovation capabilities showed significant results. In the study, a research model was posed to relate company dynamic and innovation capabilities. One side of the model features the variables that are the determinants of dynamic capabilities defined through their factors, while the other side features the determinants of innovation capabilities pursuant to the official standards. With regard to the research model, five hypotheses were set. The study was performed in late 2014 on a representative sample of large and very large Croatian enterprises with a minimum of 250 employees. The research instrument was a questionnaire administered to company top management. For both variables, the position of the company was tested in comparison to industry competitors, on a fivepoint scale. In order to test the hypotheses, correlation tests were performed to determine whether there is a correlation between each individual factor of company dynamic capabilities with the existence of its innovation capabilities, in line with the research model. The results indicate a strong correlation between a company’s possession of dynamic capabilities in terms of their factors, due to the new multi-dimensional model presented in this paper, with its possession of innovation capabilities. Based on the results, all five hypotheses were accepted. Ultimately, it was concluded that there is a strong association between the dynamic and innovation capabilities of a company. 

Keywords: Dynamic capabilities, innovation capabilities, competitive advantage, business results.

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Authors: L. Nguyen, V. Golubev, R. Mankbadi

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We consider here the subsonic impinging jet representing the flow field of a vertical take-off aircraft or the initial stage of rocket launching. Implicit Large-Eddy Simulation (ILES) is used to calculate the time-dependent flow field and the radiate sound pressure associated with jet impinging. With proper boundary treatments and high-order numerical scheme, the near field sound pressure is successfully obtained. Results are presented for both a rectangular as well a circular jet.

Keywords: Aeroacoustics, Large-Eddy Simulations, Jets, Fluid Dynamics.

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Authors: Mehmet Altinoz

Abstract:

Enterprises need a strategic plan to retain their skillful employees and provide their career management, sustain their existence, to have growth and leadership qualities, to reach the objectives to increase the value of the enterprise and to not to be affected from changing demographic structure. In the cases when the long term career expectations of skillful employees are in integrity with the enterprise’s interests, skill management process is directly related to the career management. With a long term plan, the enterprises should cover the labor force need that may arise in the future by using systematic career development programs and be prepared against developments for all times. Skill management is considered as a practice with which career mobility is planned for the skillful employee to be prepared for high level positions. Career planning is the planning of an employee’s progress or promotion within an organization for which he works by developing his knowledge, skills, abilities and motives. Career planning is considered as an individual’s planning his future and the position which he wants to have, the area which he want to work in, the objectives which he want to reach. With the aim of contributing the abovementioned discussion process, career management concept and its perception manner are examined in this study in a comparative manner.

Keywords: Skill management, career management, skill, back up, human resources management.

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Authors: Sami Hidouri, Taoufik Aguili

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We consider fast and accurate solutions of scattering problems by large perfectly conducting objects (PEC) formulated by an optimization of the Method of Auxiliary Sources (MAS). We present various techniques used to reduce the total computational cost of the scattering problem. The first technique is based on replacing the object by an array of finite number of small (PEC) object with the same shape. The second solution reduces the problem on considering only the half of the object.These t

Keywords: Method of Auxiliary Sources, Scattering, large object, RCS, computational resources.

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Authors: Mei-Fang Wu, Shu-Li Wang, Tsung-Yueh Lu, Feng-Tsung Cheng

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Strengthening core competitiveness is the main goal of enterprises in a fierce competitive environment. Accurate cost information is a great help for managers in dealing with operation strategies. This paper establishes a profitability management mechanism that applies the Activity-Based Benefit approach (ABBA) to solve the profitability for each customer from the market. ABBA provides financial and non-financial information for the operation, but also indicates what resources have expired in the operational process. The customer profit management model shows the level of profitability of each customer for the company. The empirical data were gathered from a case company operating in the leather industry in Taiwan. The research findings indicate that 30% of customers create little profit for the company as a result of asking for over 5% of sales discounts. Those customers ask for sales discount because of color differences of leather products. This paper provides a customer’s profitability evaluation mechanism to help enterprises to greatly improve operating effectiveness and promote operational activity efficiency and overall operation profitability.

Keywords: Activity-based benefit approach, customer profit analysis, leather industry, profitability management mechanism.

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