Ekonomski vjesnik/Econviews - Review of Contemporary Business, Entrepreneurship and Economic Issues

BOOK REVIEW: “BRENDIRANJE KULTUROM: GLAGOLJICA”

2024-06-16T11:43:10+02:00

BOOK REVIEW: “Brendiranje kulturom: glagoljica”

Authors: Horvat J., Forjan J.
Publisher: Andizet – the Institute for Science and
Art Research in the Creative Industry, Osijek
Year of publication: 2023
Number of pages: 156
ISBN: 978-953-8416-21-7

DIGITALIZATION IN SMALL AND MEDIUM ENTERPRISES: A REVIEW AND RESEARCH AGENDA

2023-11-16T13:06:03+01:00

Purpose: The main goal of the paper is to thematically cluster, identify, and present the most significant topics in the field of digitalization within small and medium enterprises. Additionally, the paper aims to propose guidelines for future research in this area.
Methodology: In the paper, a bibliometric analysis of the literature was carried out on a sample of 285 articles with a special focus on keyword analysis, co-occurrence network analysis and trend topics analysis.
Results: There has been a noticeable increase in interest in this topic since 2019, accompanied by a significant
rise in the number of published articles and citations. Based on the analysis, five key thematic clusters were identified, which are related to the most frequently researched topics, and they are defined as follows: Digital technologies and Industry 4.0, Digital marketing and social media, COVID-19 and Innovation, Digital transformation, and Business models.
Conclusion: The topic of digitalization in small and medium enterprises is gaining significant importance within the academic environment. This paper provides comprehensive guidelines covering methodological, practical, and thematic aspects, along with proposed research questions for future studies in this field.

MAPPING GASTRONOMY TOURISM RESEARCH: LITERATURE REVIEW

2024-03-06T08:56:53+01:00

Purpose: This paper provides a review of the existing literature on gastronomic tourism experiences, with a focus on underrepresented perspectives, research domains, and methodologies.
Methodology: Employing the PRISMA protocol, a systematic literature review was conducted, analyzing 50 relevant studies published between 2017 and 2023.
Results: The findings reveal a significant prevalence of consumer-oriented research within the domain of destination marketing, comprising 88% of the analyzed studies. Conversely, exploration of provider perspectives in the domain of facility marketing is limited, accounting for only 10% of the sample. Moreover, a mere 2% of the total research integrates both consumer and provider perspectives, highlighting a gap in
the literature. Methodologically, consumer-centric studies exhibit a preference for quantitative (QUAN) methods, with a notable utilization of the PLS-SEM technique. In contrast, provider-focused studies tend to gravitate towards qualitative (QUAL) methods, such as content analysis.
Conclusion: This review underscores the importance of balanced exploration using both QUAL and QUAN methods while considering perspectives from both consumers and providers. Such an approach is essential to achieving a holistic understanding of gastronomic tourism experiences and addressing the current research gap in the field, particularly within the realm of destination and facility marketing.

ESTIMATION OF EFFICIENT BENCHMARK PORTFOLIO FOR THE EASTERN EUROPEAN MARKET

2023-11-21T12:26:22+01:00

Purpose: This paper explores the mean-variance inefficiency of cap-weighted indices based on the CECE index as a benchmark.
Methodology: For the period from March 2014 to September 2021, several proxies of efficient portfolios were estimated: the Global Minimum Variance (GMV) portfolio, the Maximum Sharpe Ratio (MSR) portfolio and the portfolio with equal weights of constituents (EW). Diversification of strategies was also considered by analyzing the performance of a portfolio consisting of GMV and MSR that were weighted equally. Based on monthly data, 90 out-of-sample estimations were made for each strategy in order to compare their risk-return characteristics. Furthermore, to confirm the differences in the riskiness and returns of the estimated portfolios, the F-test and the Welch test were performed, respectively.
Results: The results show that all analyzed portfolios achieved superior performance compared to the CECE index with the GMV portfolio leading the way.
Conclusion: Research findings highlight the importance of market development and liquidity when pursuing popular scientific diversification methods.

DECODING THE GOVERNMENT BUDGET PUZZLE: UNVEILING THE DYNAMICS OF TAXES AND EXPENDITURES IN TURKEY THROUGH CONTINUOUS WAVELET TRANSFORM ANALYSIS

2023-10-11T12:53:11+02:00

Purpose: The relationship between public expenditure and revenue that determines the budget balance in the explanation of budget deficits is very important. This study aimed to examine the association between public spending and income in Turkey.
Methodology: This article applies the continuous wavelet transform method (CWT) to study the relationship between government revenues and expenditures in Turkey. The study, which covers the period 2006-2020, consists of monthly data. The following four CWT tools were used in the analysis: Wavelet Power Spectrum, Cross Wavelet Power, Wavelet Coherence, and Phase Difference.
Results: The results of the study, controlling taxes rather than expenditures, play a key role in reducing fiscal deficits in Turkey in the short term. It is revealed that the dynamics of the budget balance in the medium term can be explained by the spend-tax hypothesis and that the tax burden can be alleviated by spending cuts. In the long term, results were obtained that support the spend-tax hypothesis.
Conclusion: The paper reveals that taxes play an important role in controlling budget deficits in the short run. It turns out that the dynamics of the budget balance can be explained in the medium term by expenditure cuts and then the tax burden can be alleviated. In the long run, implementing fiscal policies based on public spending rather than taxation will be more effective against budget deficits.

EXPLORING SMARTPHONE-RELATED DIGITAL DIVIDE AMONG SOUTH KOREAN OLDER ADULTS

2023-10-12T13:54:19+02:00

Purpose: One of the crucial steps towards fully grasping the benefits of smartphone use for all is to explore the existence of a digital divide and its relationship to different outcomes of smartphone use. In so doing, this study explored the smartphone-related digital divide among South Korean older adults in terms of access, use and outcomes.
Design/methodology/approach: In-person interviews using questionnaires were conducted to collect the data from a total number of 372 older adults aged 60 and above in eleven community centers in the Seoul Metropolitan area in Korea, 223 of whom owned a smartphone.
Results: This study found that most participants use smartphones to communicate with personal relationships and support system. There were, however, differences among groups related to gender, age, and ICT training in terms of the extent of smartphone usage and participation in virtual communities. In three age groups of 60+, 70+ and 80+, a younger cohort and those with ICT training had higher smartphone literacy, harnessing the potential of smartphones. Those who used smartphones to stay connected to their social group and for entertainment showed a lower level of loneliness.
Conclusion: This study shows that older adults (i.e., 60+) are not a homogenous group when it comes to using smartphones. There are distinct differences in older smartphone users, especially in the age groups 60+, 70+ and 80+. Older adults should be encouraged to use smartphones for better connectivity with their social groups and entertainment, potentially decreasing their feeling of loneliness.

DETERMINANTS OF PROFITABILITY OF THE IT INDUSTRY IN CROATIA

2023-11-23T08:51:58+01:00

Purpose: Two research questions are posed in the paper that investigate and analyze the relationship between profitability and microeconomic determinants of business activity classified under J62 in the Republic of Croatia on a sample of 280 IT firms in the period from 2019-2021.
Methodology: The present research is based on the resource-based view (RBV) approach - firm-specific determinants of firm profitability. Multiple regression analysis was conducted to investigate the determinants of industry profitability, as determined by ROA and ROE.
Results: Further analyses investigated a correlation between the identified internal factors and the profitability of IT firms. Finally, two profitability models were set up, defined by a single set of internal factors with different correlations and statistical significance. It was shown that the independent variables Debt (DBT), Total assets (SIZE), and EBIT have statistical significance in both models, ROA and ROE demonstrate a strong correlation, the variables Stratification and Current liquidity (CL) show a correlation with the ROA model, and the lagged variables have different predictive abilities in terms of mROE.
Conclusion: The results of multiple regression analysis show that there is a correlation between internal factors and profitability at the firm level.

SUSTAINABLE DEVELOPMENT – A NEW TREND OF RETAIL CHAIN REPORTING IN THE REPUBLIC OF CROATIA

2023-08-25T13:57:00+02:00

Purpose: The aim of this paper is to collect and analyze data on sustainable development of nine leading retail chains in the Republic of Croatia (according to sales revenue in 2021). The focus of this research is on finding out the extent to which retail chains report on their sustainable business practices through publicly available websites, as well as precise segments of sustainable development.
Methodology: The research included retail chains whose predominant activity, according to the National Classification of Activities (NKD) 47.11, is the retail sale of various products, particularly food, beverages or tobacco, in non-specialized stores. The research was conducted from September 20 to November 20, 2022. The data were collected from the official websites of these retail chains, and the analysis primarily relied on descriptive statistics.
Results: The collected information indicates that most retail chains in the Republic of Croatia do not report on the direct impact of their business practices on sustainable development, nor do they outline their intention to directly influence consumer behavior regarding sustainable development through their business practices. Customer trends are changing, and those retail chains that prioritize sustainable development as a business strategy gain a competitive edge.
Conclusion: Unfortunately, in terms of sustainable development, retail chains in the Republic of Croatia did not take global trends seriously. Only a third of them make reports on sustainable development, and some have only recently become more actively engaged in such practices.

RISK-RETURN-VOLUME CAUSALITY ON THE CROATIAN STOCK MARKET

2023-09-15T12:11:00+02:00

Purpose: Causality between stock returns, volatility and traded volume for 10 most liquid stocks from Zagreb Stock Exchange (ZSE) is examined in this paper.
Methodology: The paper relies on historical daily data regarding return, standard deviation and turnover for the period from 2015 to 2021. Vector Autoregressive Models (VARs) were estimated for each stock individually. Based on estimated VAR models, Granger-causality tests were performed to estimate causality between trading volume, stock returns and volatility for most liquid stocks from the Croatian stock market.
Results: Results strongly confirm that traded volume Granger causes volatility. Return remained irrelevant in terms of predicting traded volume and volatility of stock returns.
Conclusion: Causality from return to volatility or causality from volatility to return can be confirmed only in shorter periods. Traded volume causes volatility for the majority of stocks regardless of how volatility was calculated. Causality from volatility to return and causality from volatility to volume are valid for half of the sample and need to be further investigated.

EXPLORING RETURN INTENTIONS FROM THE YOUNG MIGRANT’S POINT OF VIEW

2023-12-06T20:13:45+01:00

Purpose: This paper investigates migration behaviors of young migrants to identify the main factors influencing their return intentions. Recognizing that return migration decision-making is a complex and multidimensional process, the paper sheds light on two under-researched topics in migration literature: return migration intentions and young migrants.
Methodology: Using a mixed theory approach that accounts for both individual and contextual factors as determinants of possible return, the paper utilizes data obtained through surveys of Croatian migrants. It proposes an ordered logit regression model based on three composite variables—economic success, social integration, and cultural shock—to calculate the return intention probability.
Results: The results show that the variables of economic success, social integration, and cultural shock, which were determined through factor analysis, play a significant role in shaping return migration intentions. In particular, the perceived level of social integration has the most significant influence on the likelihood of intention to return, indicating that young migrants are not solely or predominantly motivated by economic factors.
Conclusion: The findings suggest that the factors influencing migrants’ return intentions overlap, and as a result, no single theory is adequate for providing a comprehensive understanding of young migrants’ return intentions. For the majority of Croatian migrants, it seems that the myth of return does not exist; they do not plan to return. These findings constitute a valuable foundation for developing migration policy recommendations for both the host and home countries.

DOES CORRUPTION AFFECT THE IMPACT OF FINANCIAL DEVELOPMENT ON ENTREPRENEURSHIP? EVIDENCE FROM EMERGING ECONOMIES

2023-10-16T16:21:37+02:00

Purpose: This study examines the relationship between financial development, corruption, and entrepreneurship in a sample of 21 emerging economies from 2008 to 2020.
Methodology: Utilizing the Generalized Method of Moments (GMM) econometric approach, we explore the interactive dynamics between these variables.
Results: Our findings indicate that higher levels of corruption are associated with increased entrepreneurial activity in these economies. This can be attributed to the prevalence of corrupt practices, such as bribery, which serve as a means for entrepreneurs to overcome barriers and initiate businesses. Conversely, while financial development has a positive influence on entrepreneurship, its impact is not statistically significant. However, when considering a combined effect of financial development and corruption, a positive net impact is observed. This suggests that corruption can facilitate access to financial resources for entrepreneurs in these emerging economies. These findings support the notion of the “grease the wheels effect”.
Conclusion: This study provides valuable insights into the complex interplay between financial accessibility, corruption, and entrepreneurship in emerging economies, informing policymakers and stakeholders on strategies to foster entrepreneurship and drive sustainable economic growth.

THE MEDIATING ROLE OF ORGANIZATIONAL IDENTIFICATION IN THE EFFECT OF COMPULSORY CITIZENSHIP BEHAVIOR ON EMPLOYEE SILENCE: THE CASE OF TURKISH (KONYA PROVINCE) MANUFACTURING INDUSTRY

2024-01-16T08:38:15+01:00

Purpose: This study discusses the concept of compulsory citizenship behavior (CCB) and identifies the relationships between CCB, organizational identification, and employee silence bearing in mind the Conservation of Resources Theory (COR). In other words, the study examines CCB’s effect on employee silence as well as whether organizational identification has a mediating role in this effect.
Methodology: Data were obtained by means of surveys from the employees of the manufacturing sector in a province in Turkey. Data were analyzed using the IBM SPSS, PROCESS Macro, and Amos package software in line with the purpose of the study.
Results: The findings show that CCB negatively affects organizational identification and positively affects employee silence. Furthermore, organizational identification was found to negatively affect employee silence. The findings regarding mediation indicate that organizational identification has a mediating role in CCB’s effect on employee silence.
Conclusion: As a result, it was determined that CCB would have negative consequences. The perception of CCB increased employee silence behavior both directly and indirectly (by reducing identification).

FINDING AN OPTIMAL DISTRIBUTION STRATEGY PATH IN AN UNPREDICTABLE ENVIRONMENT

2023-11-17T10:07:11+01:00

Purpose: This article introduces an innovative method designed to optimize distribution strategies with respect to future uncertainty. It goes beyond the limitations of traditional scenario-based planning that often leads to suboptimal strategies due to the unpredictability of future developments and the challenge of accurately assigning probabilities to these scenarios. Consequently, the method allows selection of the most economically viable future strategy.
Methodology: Our methodology diverges from conventional approaches by refraining from making rigid assumptions about the probabilities of future scenarios. Instead, it comprehensively explores the entire allowable probability space to identify an optimal strategy that works well in possible future developments. We employed this method in the case study of a real-world company based in Czechia, where we devised three viable distribution strategies and four model development scenarios.
Results: The application of our method demonstrated its effectiveness in selecting the most advantageous strategy, as evidenced by the results of our case study. However, the applicability of the method is contingent upon the accurate definition of potential future scenarios and the evaluation of the performance of different strategies within these scenarios.
Conclusion: Our findings suggest that this approach significantly enhances strategic planning under uncertainty. Future research will seek to refine this method further by integrating causal relationships to convey additional information across different model periods, thereby improving the robustness and applicability of the strategy selection process.

THE IMPACT OF ELECTRONIC DESPATCH ADVICE ON THE SERVICE TIME OF A MEANS OF TRANSPORT IN A DISTRIBUTION CENTER

2023-12-30T19:54:44+01:00

Purpose: The aim of the article is to verify the impact of the use of electronic notification of deliveries on the service time of a means of transport in a distribution center.
Methodology: The study used electronic notification in the form of EDI DESADV messages. The research was carried out in one of the distribution centers of a retail company operating in Poland. The study used the method of recording the time of logistics operations. The study was conducted in two stages (each lasting a week), in which the time of logistics operations was recorded in conditions without and with the DESADV message implemented.
Results: The results of the conducted research show that the use of electronic despatch advice allows you to reduce the time of handling the means of transport in the distribution center.
Conclusion: Reducing the time of handling the means of transport in the distribution center brings numerous additional benefits, such as faster release of the means of transport and enabling it to carry out subsequent transport tasks, handling a larger number of unloadings with the same number of resources (e.g. warehouse ramps), accelerating the internal process and enabling faster reloading to other means of transport performing the distribution process.