Business, Management and Economics Engineering
Journal Business, Management and Economics Engineering publishes original research on economics, business and management. More information ...
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Navigating success: portfolio management through risk and performance analysis
Purpose – this study explores the growing interest in Exchange-Traded Funds (ETFs) and public shares during and after the COVID-19 pandemic, aiming to understand the factors driving this investment trend. Research methodology – an actively managed portfolio of U.S. stocks is constructed and compared to a passively managed S&P 500 index portfolio. Active management is conducted using three approaches: intuition-based selection, the Black-Litterman model, and Modern Portfolio Theory. A quantitative analysis assesses risk, performance, and the impact of rein- vestment and transaction costs. Findings – results show that active investing can outperform passive strategies in the short term but involves higher risk, transaction costs, and ongoing oversight. Passive investing offers stability and lower costs but may yield lower returns during volatile periods. Research implications – the study deepens understanding of how costs and reinvestment in- fluence investment outcomes and how active and passive strategies perform under varying market conditions, especially post-pandemic. Practical implications – the findings provide practical guidance for portfolio construction and management, helping investors balance risk and return in a changing financial landscape. Originality/Value – this paper uniquely compares three active investment approaches against a passive benchmark within a post-COVID context, offering integrated insights on performance, cost, and strategy for both academics and practitioners.
Copyright (c) 2026 The Author(s). Published by Vilnius Gediminas Technical University. http://creativecommons.org/licenses/by/4.0
Assessment of European Union countries’ positions in the context of circular economy
Purpose – Assess the level of the circular economy in EU countries between 2020 and 2023, ranking them according to circular economy indicators and identifying changes in their positions. Research methodology – The study used the European Commission’s 2023 set of indicators to evaluate the performance of the circular economy across EU countries. Twenty-three indicators were selected based on data availability. Missing data were forecasted using the moving average method to ensure completeness for subsequent analysis. The CRITIC method was then applied to determine indicator weights and rank countries, followed by the TOPSIS multi-criteria decision-making approach to evaluate and compare national positions. Findings – The results show stable circular economy levels across the EU but with clear gaps between leading and lagging countries. Germany, the Netherlands, and Italy perform strongest, while Bulgaria and Romania progress slowly due to structural constraints. Lithuania, Austria, and other mid-tier countries advance gradually, with ranking shifts revealing uneven implementation of the EU Circular Economy Action Plan. Overall, the findings compare national progress and highlight key drivers and barriers to the transition. Research limitations – The study was constrained by incomplete and inconsistent EU statistical data, which required applying the Moving Average method to estimate missing values. In addition, the absence of a standardised composite indicator framework limited methodological comparability. Future research should prioritise improving data availability and creating unified guidelines for building composite indicators to strengthen reliability and cross-country benchmarking. Practical implications – The results provide policymakers and industry stakeholders with a clear ranking of EU countries’ progress in implementing circular economy principles, enabling targeted improvement strategies. The proposed methodology can be used to monitor nation- al performance, allocate resources effectively, and develop standardised evaluation frame- works for sustainability initiatives. Originality/Value – This study integrates the CRITIC and TOPSIS methods with the latest EU indicators – a combination rarely used in circular economy analysis. It offers a comprehensive multi-criteria assessment of EU countries, unlike earlier studies based on single or fragmented indicators.
Macroeconomic determinants of private credit in EU member states: evidence from a 27-country panel
Purpose – This study examines the macroeconomic determinants of private credit in European Union (EU) member states, focusing on interest rates, inflation, unemployment, household income and expenditure, and housing prices. It aims to identify key drivers of household borrowing and assess how macroeconomic conditions shape credit dynamics across the EU. Research methodology – The analysis covers 27 EU countries over the period 2001–2023 and applies panel-data econometric techniques, including ordinary least squares, fixed-effects, and random-effects models, to examine linear and nonlinear relationships. Findings – The results show that interest rates exert the strongest negative effect on private credit volumes. The gap between household expenditure and income is positively and significantly associated with household debt, indicating increased reliance on borrowing when consumption growth outpaces income growth. By contrast, housing prices, unemployment, and the nonlinear effects of the expenditure-income gap are not statistically significant. Research limitations – Data availability limits the scope of cross-country comparison. Practical implications – Policymakers should prioritise interest rate management, income growth, and labour market stability to support sustainable household indebtedness. Originality/Value – The study complements existing research by incorporating the expenditure-income gap as an additional perspective on household borrowing in the EU.
The effectiveness of digital transformation on improving firm performance: evidence from Indonesia
Purpose – This study assesses the effectiveness of digital transformation on improving firm performance. A prominent financing company in Indonesia was selected in this study considering that financing industry is at the forefront of implementing digital transformation. Research methodology – The assessment of digital transformation effectiveness is approached as a multi criteria decision-making problem. The Analytic Hierarchy Process (AHP) is employed across a 5-level decision hierarchy encompassing objective, desired value creation, expected outcomes, processes, and effectiveness of digital transformation. Senior executives at the company provided expert judgments through pairwise comparisons. To strengthen validity, a funnel triangulation approach integrates findings with resource-based view and dynamic capabilities theoretical lenses. Findings – The study reveals that digital transformation has moderately to strongly enhanced firm performance in the examined company. With respect to value creation, the company being studied places firm value as the most prioritized value creation, followed by customer value and stakeholder value. Research limitations – The decision model developed in this study only consider all processes that have direct impacts on firm performance. Realizing digital transformation requires interaction between people, machines, business processes and leadership from top management. Practical implications – While this is a single-company case study, the AHP-based decision model can be adapted to assess digital transformation in other firms. Originality/Value – The study provides a structured decision model for assessing digital transformation effectiveness.
EU vs. China: battle for trade and investments within a small open economy
Purpose – Small open economies face various economic challenges that require different institutional solutions. This study presents a quantitative analysis of data collected through a Delphi survey, examining the current state and potential trends in Serbia’s relations with the EU and China. The research offers insights into how a small economy, such as Serbia, might strategically plan its development by implementing experts’ opinions. Research methodology – Delphi analysis was employed as the primary methodological tool. It provided experts’ opinions about Serbia’s position vis-à-vis the EU and China regarding foreign direct investments and trade flows. Findings – Experts believe Serbia will maintain cooperation with both the EU and China but are more optimistic related to economic relations with China. While the EU remains an important partner, stronger economic ties with China are unlikely to diminish the EU’s role. Research limitations – Conducting the Delphi survey online introduced constraints, namely differences between online and in-person opinions, a limited number of questions given to experts, time restrictions, and the scarcity of publicly available data for expert analysis. Practical implications – Survey findings could be used by relevant Government bodies and institutions to formulate policies or scenarios for emergency situations. Originality/Value – This type of survey was not conducted in Serbia before, nor were there other relevant papers that could be used to compare the results, which testifies to its originality.
Artificial intelligence as a strategic lever for enhancing performance in service sector supply chains: a systematic literature review
Purpose – this study was undertaken through a systematic literature review to identify the central role of Artificial Intelligence (AI) in improving supply chain performance across all service sectors. Research methodology – a dual methodological approach was used involving both quantitative and qualitative analysis. The former is largely based on a bibliometric analysis of 61 peer-re- viewed articles published between 2019 and 2024. In this respect, two software tools, RStudio and VOSviewer, were used to provide a comprehensive bibliometric landscape. The second concerns a thematic content analysis of 25 full-text studies, focusing on AI techniques, performance results and industry-specific implementation challenges. Findings – the overall result of this systematic review indicates that AI contributes to service supply chain performance by improving forecasting, resilience, operational efficiency and real-time decision-making. Research limitations – however, limitations such as data availability, system interoperability, ethical risks and organizational resistance remain important. Practical implications – the results of this study help practitioners to select AI solutions suitable for their sector and to anticipate obstacles to integration. Originality/Value – this study provides a better understanding of how AI is reshaping supply chains in service industries, while identifying key avenues for both future research and practical adoption.
Enhancing organizational citizenship behaviors through HRM practices: insights from employee perceptions in Moroccan firms
Research purpose – This study examines the impact of Human Resource Management (HRM) practices: recruitment, training, compensation, and performance evaluation, on employees’ Organisational Citizenship Behaviour (OCB) in Moroccan companies. Research methodology – A quantitative approach was employed. Data were collected via a structured questionnaire from 209 non-HR employees across various Moroccan companies. Exploratory Factor Analysis (EFA) was conducted to examine the measurement structure, followed by Structural Equation Modelling (SEM) to assess the relationships between HRM practices and OCB. Findings – HRM practices have a positive and significant influence on OCB. Training and compensation showed notable effects, while recruitment and performance evaluation also contributed to fostering a positive work environment, enhancing employee engagement, and encouraging behaviours beyond formal job requirements. These results highlight the pivotal role of HRM in promoting organisational commitment and discretionary behaviours. Research limitations – The use of a convenience sample and self-reported data limits generalisability and may introduce bias. The quantitative design does not fully capture the complexity of employee experiences, and data collection faced constraints due to refusals and limited collaboration. The study does not investigate the relationship between HRM practices and counterproductive behaviours, suggesting avenues for future research. Practical implications – Managers should prioritise transparent recruitment, continuous training, fair compensation, and objective performance evaluations to encourage OCB. These practices help cultivate a motivated and collaborative workforce, supporting organisational productivity and a positive work environment. Originality/Value – This study contributes uniquely by examining the effect of HRM practices on OCB in the Moroccan context, which remains underexplored. By focusing on employee perceptions, it provides actionable insights for HRM research and policy, helping organisations enhance work behaviour and overall performance.
Organizational Citizenship Behaviour (OCB)
Balancing workplace stress: empirical insights from the IMPRESS project
Purpose – This study aims to investigate the relationship between workplace stressors, resources, and perceived stress among employees by analysing survey data collected via the IMPRESS project. The objectives were to test the direct effects of stressors and resources on stress, and the moderating role of resources. Research methodology – Stressors, resources, and stress were measured using the Job Demands-Resources framework and the Partial Least Squares Structural Equation Modeling (PLS-SEM) was used for statistical analysis. Findings – It was found that several stressors, particularly those related to roles and responsibilities, have a significant direct impact on stress levels. Research limitations – The study limitation is the geographical focus which being limited to Latvia. Practical implications – The principal conclusion is that managing stressors, e.g. role overload, role conflict and work-life balance, is critical, and well-defined work processes can significantly contribute to employee well-being. Originality/Value – The authors found that the COVID-19 pandemic did not significantly change workplace stressors, with roles and responsibilities remaining the dominant factor both before and during the pandemic.
Partial Least Squares Structural Equation Modeling (PLS-SEM)
Augmented reality vs. monetary rewards: which drives pro-environmental behavior more effectively among the Indonesian workforce?
Purpose – This study examines how augmented reality-based green training influences pro-environmental behavior among employees in Greater Jakarta, Indonesia. It also examines the role of green commitment in shaping employees’ environmentally responsible actions. In addition, the study investigates whether green financial rewards moderate these relationships. The analysis focuses on how intrinsic and extrinsic motivations interact to influence sustainable behavior in the workplace. Research methodology – A cross-sectional quantitative survey was conducted among 200 employees in Greater Jakarta using convenience sampling. Structural equation modeling with partial least squares was used to test the hypothesized relationships and moderating effects among the variables. Findings – The findings show that AR-based green training has a significant positive effect on employees’ pro-environmental behavior. Green commitment also has a significant positive effect on pro-environmental behavior. Green financial rewards do not significantly moderate these relationships. The negative interaction coefficients suggest a possible crowding out effect. This implies that in practice, external motivators may dampen the effect of internal motivators, such as training and employee engagement. Research limitations – The design of this study is cross-sectional, and this restricts the ability to conduct causal analysis. The population studied can only comprise employees within greater Jakarta, and this might restrict the overall ability to generalize findings. Future re- search focuses on studying changes over longer periods through various designs that can aid in observations over time. Results can also gain more external validity if more demographical samples get studied. Practical implications – Implementation of organizational measures to increase the qualifications and sustainability-oriented working culture could provide the greatest benefits for the organizations. Moreover, incorporating augmented reality learning into the organizational operations could contribute to this goal. In addition, values associated with sustainability must be embedded into the organizational operations through persistent organizational communications and role-modeling by the leadership. It can be observed from the outcome measurements that the financial incentives are less effective or sometimes even decrease the internal motivation associated with pro-environmental behavior. Originality/Value – The research adds to the topic of sustainability studies by focusing on the use of augmented reality as a novel approach to environmental education. The work also supplies empirical evidence concerning the boundary conditions of the Motivation Crowding Theory within a workplace sustainability setting.
Building human capital and dynamic managerial capability to elevate organizational agility and performance: a strategic for SME resilience
Purpose – This study explores the strategic role of human capital, dynamic managerial capability, and organizational agility in driving organizational performance within SMEs in Bali, Indonesia. Research methodology – Investigates the direct and indirect effects of human capital and dynamic managerial capability on organizational performance, mediated by organizational agility. A quantitative survey was conducted with 396 SMEs, using PLS-SEM for data analysis. Findings – Human capital enhances organizational agility but does not directly impact performance, while dynamic managerial capability positively influences both agility and performance. Organizational agility is found to significantly improve performance and partially mediates the relationship between human capital, dynamic managerial capability, and organizational performance. This research contributes to the critical role of organizational agility in transforming internal competencies into tangible performance outcomes, especially under volatile market conditions. Research limitations – Research is limited by its geographic scope, cross-sectional design, and reliance on self-reported data. Future studies could explore the dynamic interplay of these factors across different regions and over time. Practical implications – SME managers should prioritize developing agile capabilities and enhancing dynamic managerial competencies to effectively convert human capital into improved organizational performance under volatile conditions. Originality/Value – Organizational agility as a crucial mechanism that translates internal competencies into tangible performance outcomes, especially under conditions of environmental turbulence.
Does green human resources management pay off? The mediating role of green innovation and employee attitude in sustainable supply chain management
This research demonstrates that the relationship between Green Human Resource Management (GHRM) practices and Sustainable Supply Chain Management (SSCM) performance is mediated by organizational capabilities rather than a direct process, and this effect is supported by the Resource-Based View (RBV). Research methodology – For the study, data were collected from a total of 476 participants from 71 companies operating in the textile sector and engaging in green management processes in the Southeastern Anatolia Region of Turkey. The significant role the region plays in machine-made carpet production was a key factor in this selection. Findings – It has been observed that GHRM enhances a company’s product and process in- novation capacity; it also reveals a critical distinction between the impacts of different innovation types. Process innovation plays a strong role in enhancing environmental performance through internal improvements. Additionally, it has been observed that concern is a stronger motivator than knowledge in achieving sustainability goals. Research limitations – The cross-sectional design of the study limits definitive proof of causal relationships between variables, it is recommended that future studies utilize longitudinal de- signs that can monitor the long-term effects of GHRM. Practical implications – The social aspect of sustainability in SSCM can be achieved by visible product innovations. Additionally, the perception gap between senior management and operational employees has been identified as the primary obstacle to implementing sustainability strategies. It has been emphasized that addressing this gap requires mobilizing emotional concern, a driving force stronger than purely cognitive knowledge. Originality/Value – This study brings together a detailed model by examining the effect of GHRM on SSCM relationship mediated by different innovation and attitude types simultaneously. This gives a more nuanced and applicable information.
Economic instability and its effect on brand preferences: big data examination of self-image and online shopping conduct
Purpose – This study will examine how consumer brand preference is impacted by economic instability in the market of e-commerce in Indonesia, the relationship between self-image and purchasing patterns under three different periods; pre-crisis (2017–2019), crisis (2020–2022), and post-crisis recovery (2022–2023). Research methodology – Transactional variables (Total payment volume, average order value, and purchase frequency) were analyzed using the mixed-methods approach in three brand categories (global, local, unbranded) and two product subcategories (care, decorated). ANO- VA and T-tests were used as a quantitative analysis of one of the largest Indonesian e-commerce platforms. The methods of qualitative analysis included semi-structured interviews with 20 industry experts who were chosen while engaging in purposive sampling and analyzed based on thematic analysis, in order to understand the emergent themes and patterns. Findings – The findings indicate that the preference of global brands declined throughout the period of crisis (Z-sales declined 1.84 to –0.002) whereas local brands rejuvenated through community-oriented messages. The balanced status and sense of practicality seen in the post-crisis consumption saw global brands partially recovering (Z-sales: 1.43) and status-related self-image shifted into the health-conscious and community-supportive groups. Research limitations – The study has a limitation of studying the e-commerce market and beauty product of Indonesia and the generalization to other regions or products. Besides, the qualitative element is based on only 14 internal experts working in the e-commerce and beauty sectors, which is insufficient to reflect direct consumer experiences and motivation to behaviour. Although the managerial interpretations bring about strategic data, the findings on self-image and consumer psychology should be confirmed by conducting empirical research with customers. Practical implications – The results illustrate the significance of matching message of the brand with changing consumer values and using big data to create personalized marketing plans. Originality/Value – This study is the first one to synthesize big data analysis with the use of expertise to indicate how consumer self-perception and purchase behavior are redefined due to economic shocks in online markets.
Digital banking through a gender lens: examining trust and perceptions of Neobanks
Purpose – the aim of study is to examine how interface design elements (usability, presentation, navigation) influence trust, behavioural intention, and adoption of Neobanks among younger users, using data from students at the University of Debrecen, Hungary. Research methodology – a modified Technology Acceptance Model (mTAM) was tested via Partial Least Squares Structural Equation Modelling (PLS-SEM) using primary survey data (n = 159, valid respondents under 25 years old) and quasi-exploratory analysis from Neobank users. Findings – perceived ease of usage significantly mediates the relationship between interface quality and behavioural intention. Trust significantly impacts attitudes and intentions toward fintech, with stronger effects observed among female users. These insights advance cognitive trust theory in digital banking contexts. Research limitations – limited sample diversity and local scope at the University of Debrecen constrain generalizability. The PLS-SEM method focuses on prediction over theory testing may oversimplify complex trust dynamics. Future studies should employ mixed methods and cross-cultural samples for broader relevance. Practical implications – Neobanks can enhance adoption by prioritizing intuitive interface design and tailoring trust-building strategies to gender-specific user preferences. Originality/Value – this research integrates gender differences into mTAM and offers novel insights into trust formation for digital banking among younger European university students, A departure from prior studies is focused solely on technical features.
Effects of the moderating role of trendiness on brand image, E-WOM, brand attitude and online purchase intention
Purpose – The purpose of the research is to analyse the impact of electronic word-of-mouth (e-WOM), brand image, and consumer attitude on purchase intention, as well as the moderating influence of trendiness on these relationships. Research methodology – The study is quantitative research. Six hypotheses were put forward and tested in the research model. Survey data derived from a sample of 922 participants from Azerbaijan were examined using SPSS in order to evaluate the hypothesis. Findings – According to the main findings, regression tests, it was determined that e-WOM, brand image and attitude towards the brand affect online purchasing intention. However, for the first time in this study, the moderator role of the trendiness variable, which was tested statistically, on the effect of e-WOM, brand image and attitude variables on online purchase intention was carried out. As a result of the analysis, although the moderator role of trendiness in the effect of e-WOM’s online purchase intention and brand image on online purchase intention was found to be significant and positive, the moderator role of trendiness in the effect of attitude on online purchase intention was found to be insignificant. Research limitations – The study exclusively covers Azerbaijan’s fast-food service industry. Also, different people may have different ideas about fast food places, and the brand names in the questions may affect how people answer. Practical implications – This study’s scientific innovation is the first statistical test of the moderating role of the trendiness variable in the effects of e-WOM, brand image, and attitude on online purchase intention. Practical innovation is that data specific to the Azerbaijani fast-food sector can be useful for practitioners in helping brand managers better understand consumer behaviour and develop trend-focused marketing strategies. Originality/Value – This research makes a major addition to was proved for the first time in the literature that the trendiness variable affects the brand’s images and e-WOM even if it does not affect the attitude-to-purchase orientation. In this study, trendiness was found to strengthen the relationships between e-WOM, consumer perceptions of brands, and intent to buy, which reveals a new relationship not found in the existing literature. However, fast-food consumption habits of Azerbaijani consumers were also determined by a large survey.
Models for implementing changes in motivational factors
Purpose – the purpose of this article is to present a practical model for supporting motivation in an organization and to demonstrate how aligning employees’ needs with strategic objectives increases work effort, engagement, and overall performance. Research methodology – Conceptual development at the intersection of theory and practice has been examined through a narrative review of the relevant literature, in which the significance of Taylor’s and Weber’s theories, along with contemporary approaches advanced by Stoner and Wankel and by Schermerhorn, is emphasized and integrated with the authors’ empirical managerial experience. Findings – effectiveness hinges above all on the correct sequencing of steps in diagnosing needs and implementing motivational changes. A deep understanding of employees’ unmet needs enables the precise selection of support mechanisms, while a tailored, multi-level managerial approach sustains motivation and more closely aligns individual and organizational goals. Research limitations – the model is conceptual and grounded in literature and the authors’ experience; it lacks systematic, large-sample empirical testing and thus may have limited generalizability across industries and cultural contexts. Practical implications – managers can use the model as a step-by-step guide to: assess employee needs, choose appropriate motivational tools, implement changes in the right order, and maintain motivation as an ongoing, continuous process across all organizational levels. Originality/Value – this contribution integrates classic and contemporary motivation theories into a single, actionable process model. Also emphasizes the often-overlooked importance of implementation sequence and continuity, bridging theoretical insights with practical application.
Copyright (c) 2025 The Author(s). Published by Vilnius Gediminas Technical University. http://creativecommons.org/licenses/by/4.0
Evaluating the performance of Moroccan social incubators: an SFA analysis of youth platforms under the national initiative for human development
Purpose – This study focuses on the evaluation of youth platforms as an important social incubator of the National Initiative for Human Development (NIHD) in Morocco, particularly to promote social entrepreneurship and support very small enterprises (VSE). Numerous social incubators have been created to support social entrepreneurship and foster innovative and effective socio-economic relations. However, their impact remains limited, raising questions about their performance. Research methodology – Based on a sample of 40 NIHD youth platforms, the stochastic frontier analysis (SFA) method was applied to measure their technical efficiency (TE), and then the determinants of the TE obtained were analysed by a regression using the Tobit model. Findings – The results indicate that management costs (MC), the number of accompanied project holders (APH) and income improvement actions in social and solidarity economy (II- ASSE) have a significant impact on the creation and development of VSE or cooperatives. In addition, the experience of the platform manager has a positive influence on TE, while age has no significant effect. Research limitations – The conclusions of the study may not be entirely applicable to the current situation of NIHD youth platforms in Morocco, because they are based on data available at a time conditioned by an exceptional context (e.g., post-covid; government austerity policy, etc.). Practical implications – This study provides public policymakers and platform managers with actionable insights into optimizing resource use and improving platform operations. Policy-makers can use the findings to allocate funding more effectively, prioritize support services like income improvement actions, and identify platforms that serve as benchmarks for best practices. Additionally, the study highlights the importance of experienced platform managers, guiding recruitment and training policies to improve platform outcomes. Originality/Value – The study paves the way for future research aimed at exploring in more depth the underlying mechanisms of the efficiency of NIHD youth platforms.
Alignment of innovation diffusion and project management to increase logistics digitalization
Purpose – This paper examines how integrating Innovation Diffusion Theory (IDT) with structured project management frameworks enhances digital technology adoption in logistics, addressing challenges in ineffective implementation. Research methodology – A mixed-methods approach combines qualitative interviews with logistics executives and technology experts with quantitative analysis of adoption trends using case studies and industry data. Findings – Results highlight the complexity of digital technologies and emphasize aligning decision-making frameworks – Agile, Scrum, Kanban, and Waterfall – with organizational goals to improve digital transformation. Structured project management methodologies help firms manage complexity, mitigate risks, and optimize project execution. Research limitations – The study does not analyze all technology complexity levels or include all digital solutions in logistics. Additionally, not all technologies were linked to expert-identified success factors, limiting generalizability. Future research could use longitudinal or case-study approaches to explore long-term impacts. Practical implications – Integrating IDT with project management frameworks and the Stacey Matrix helps logistics firms overcome adoption barriers and improve implementation success. Originality/Value – This research provides empirical evidence on structured decision-making in digital adoption. By integrating expert insights and correlation analysis, it offers practical recommendations for optimizing innovation diffusion, mitigating risks, and aligning technology implementation with strategic goals in a rapidly evolving digital landscape.
Determinants of the sustainability of capability-based culinary businesses: evidence from urban areas in Central Java Province
Purpose – Amidst the increasing public awareness of the need for environmentally friendly products and social concerns, sustainability practices can be utilized as a source of competitive advantage for businesses in the culinary industry. The purpose of this study is to investigate the effects of entrepreneurial marketing, transformation capability, and financial capability on sustainability. Research methodology – This study was based on field survey data involving 315 culinary business actors in the cities of Semarang, Salatiga, and Surakarta, Central Java Province. The data analysis used the Partial Least Squares Structural Equation Modeling (PLS-SEM) method. Findings – The determinants of sustainability predicted through the formulation of nine hypotheses are mostly proven empirically. Entrepreneurial marketing, transformation capability, and financial capability are demonstrated to have a positive effect on all dimensions of sustainability including economic, environmental, and social performance. Research limitations – The objects of this research were limited to culinary business actors in urban areas so that only limited generalizations could be made. Future studies can be directed to involve business actors in rural areas so that they can capture the dynamics of sustainability practices better. Practical implications – A policy that can be proposed based on research findings to the government in order to improve sustainability practices is to improve the capabilities of culinary business actors through training and mentoring that emphasize the importance of creating customer value, renewing company operations, and having financial literacy. Originality/Value – This study fills the research gap by introducing a capability-based sustainability determinant model.
Culinary resilience in a globalized world: how social norms negotiate tradition and adaptation
Purpose – This study investigates how macro-level forces and micro-level cultural constructs shape food culture resilience in different societies. It bridges the knowledge gaps between cultural preservation and adaptation. Research methodology – PLS-SEM methodology was adopted in the survey data of six countries. Bootstrapping verified path coefficients and model robustness. Findings – Cultural Openness supports Heritage, preventing globalization from disempowering myths. Social Pressure drives food culture resilience (FCR) in collectivistic cultures yet is diluted in individualistic settings. Taboos subside in secular/pluralistic settings, replicating trends for moral flexibility. Enhanced predictivity for institutionally institutionalized civilizations facilitates easier observation by the models of modest to considerable FCR variation. Research limitations – Cross-sectional data limit causal inferences. Unmeasured variables could also affect outcomes in transition countries. Practical applications – Strategies should be implemented with cultural correctness by policymakers and marketers. For instance, leveraging openness to redefine traditions in multicultural settings, framing dietetic interventions as collective efforts in collectivist contexts, and customizing products with flexible ethical schema in secular settings. Originality/Value – This research fills macro-micro cultural theory gaps, suggesting “adaptive preservation” as a driver of traditions in a globalizing world. This research shakes homogenization discourses, providing a rich model for cultural.
Evaluating the effectiveness of the Czech national bank’s monetary policy: a longitudinal study since 1997
Purpose – This study examines the effectiveness of the Czech National Bank’s (CNB hereafter) monetary policy with a focus on its adaptive responses to macroeconomic indicators such as inflation, unemployment, economic growth, interbank rate, imports, exports, and exchange rates. The two-week repo rate served as the primary instrument for the analysis period from January 1997 to July 2023. Research methodology – The research employs a Vector Autoregression (VAR) model, complemented by Impulse Response Functions (IRF), Forecast Error Variance Decomposition (FEVD), Granger Causality and Johansen Cointegration Tests to analyse quarterly data on the dynamic interactions between the CNB’s two-week repo rate and key economic indicators. Findings – The research results show that the CNB monetary policies have mainly been effective in managing inflation targeting and sustaining economic stability. The considerable influence achieved through proactive policy adjustments to unemployment and interbank rates. Research limitations – External macroeconomic shocks not accounted for in the VAR model might influence the study results. Furthermore, the findings are specific exclusively to the Czech economy and may not be directly applicable to other countries with distinct economic structures or monetary policy frameworks. Practical implications – The research highlights the importance of predicting repo rate adjustments in response to changes in unemployment and interbank rates. CNB could use these findings to improve the understanding of policy changes and increase their effectiveness. Originality/Value – The findings offer valuable insights for policymakers, governments, and banking industry participants seeking to enhance monetary policy efficiency.
Human capital and organisational outcome: mediation and moderation model
Purpose – This study aims to investigate organisational values as moderators and playful work design as mediators in the relationship between human capital and organisational outcomes in service industry in Indonesia, utilizing quantitative analysis. Research methodology – Purposive sampling was used to retrieve data from 305 respondents using a self-reported questionnaire. The data is analysed using the macro PROCESS using model 5. Findings – The results indicate the direct influence of human capital on organisational outcomes, mediation, playful work design, and moderation of organisational values. The findings of this study reinforce that applying high organisational values and effective human capital management can optimise organisational outcomes through playful work design. Research limitations – This research was carried out with one questionnaire distribution, future research need to conduct longitudinal studies to be known under different conditions and times in another industry. Practical implications – Manager’s must carry out digital transformation and human capital to survive and become winners amid today’s tight service industry competition by encouraging organisational values and supporting playful work design. Originality/Value – This study investigated six dimension of human capital which are suitable in the industrial era 4.0 for manager’s in service industry and its impact on organisational out- come with mediation and moderation analysis.
Evaluating financial viability of boilers in palm oil mills under processing capacity variability: a case study approach
Purpose – This study evaluates the financial feasibility of boiler investments in palm oil mills, examining the variability in processing capacities resulting from seasonal yields and operational constraints. Research methodology – A case study was conducted at a palm oil mill in Indonesia, assessing five investment scenarios through sensitivity analysis to compare repair and new boiler strategies at capacities of 48, 51, and 58 tons of FFB per hour. Financial metrics including Net Present Value (NPV), Internal Rate of Return (IRR), and payback period were employed. Findings – Results exhibit that repairing the boiler, specifically at a capacity of 58 tons/hour, provides the greatest financial returns, with a Net Present Value (NPV) of USD 9.5 million and an Internal Rate of Return (IRR) of 21%, surpassing investments in new boilers. Scenario 5 demonstrated the highest financial resilience in response to variations in costs and revenues. Research limitations – This research is based on financial assumptions and a singular case study context. Wider generalizations necessitate analysis across various operational contexts. Practical implications – The findings provide decision-making tools for palm oil mills to optimize capital expenditure in relation to capacity variability and cost efficiency. Originality/Value – This research incorporates operational variability into financial modeling, offering a novel perspective on boiler investment strategies within the palm oil sector.
Utilizing flexible working arrangement into organizational citizenship behavior: a double mediation model
Purpose – The current study aimed to investigate the role of career cushioning and work-life balance (WLB) as mediators in the effect of flexible work arrangements (FWA) on organizational citizenship behavior (OCB). Research methodology – Data were collected from 270 employees working in different multi-financial companies. To test the hypotheses, this study employed SEM-PLS. Findings – The results indicate that flexible working arrangement is a key factor to foster organizational citizenship behavior. Subsequently, the study highlights the importance role of career cushioning and work life balance as the mediator. Research limitations – This research was carried out on the multi-financial sector in one country and specific generation, thus, the findings’ generalization is lacking. Practical implications – This study suggested that companies or human resource teams pay attention to career cushioning and work-life balance to encourage OCB through FWA policy for millennial and Generation Z employees. Originality/Value – The uniqueness of the Millennials and Generation Z presents a complex challenge, particularly for multi-financial companies. Therefore, it is essential to establish clear career levels and ensure a balance between personal and work life. Empirical research that explores the implication of flexible working arrangement in fostering organizational citizenship in specific generation is lacking, reported solely on manufacturing companies and across generations. Meanwhile, the multi-financial sector, especially in developing countries, is understudied. Consequently, the initial study leads the examination of flexible working arrangements’ role in fostering organizational citizenship behavior in millenial and Z Generation.
The role of outdoor advertising in consumer behaviour in implementing the goals of sustainable development: a case study of Lithuania
The article discusses the possibilities of managing consumer behavior in the context of implementing the goals of sustainable development formation through outdoor advertising and the assessment of the impact of outdoor advertising on consumer behaviour formation. Research objective – to determine the impact of outdoor advertising in consumer behaviour in implementing the goals of sustainable development. The research methods employed include descriptive analysis, quantitative analysis, and statistical techniques. The research was conducted from September 10, 2024, to September 24, 2024, based on a Lithuanian case study (N = 396). When applying a quantitative research strategy the obtained highest average estimates show that illuminated signs, advertising on outdoor video screens and large format posters in advertisements spread the message and have a great impact on consumer behaviour when implementing the goals of sustainable development. It was also found out that according to the majority of participants, the images in advertising (pictures, paintings, etc.), advertising design and outdoor advertising originality, as well as advertising content and its informative nature are the factors shaping consumer behaviour when implementing the goals of sustainable development. The use of a convenience sample, coupled with an imbalance in terms of gender and age distribution, limited the generalizability of the conclusions. There- fore, the spheres of further researches could be expanded with more representative samples and including the elements of qualitative method into the survey (e.g., open questions, group discussion (in Focus group) etc.), regression modelling and factor analysis would provide more insights and supplement quantitative conclusions. The research results provided valuable in- sights about the role of different types of outdoor advertising and its impact on consumers of different ages when implementing the goals of sustainable development and on the basis of the Lithuanian case could be easily extrapolated to other contexts while expanding the spheres of further researches, both at the national level and with cross-border samples.
Evaluating the factors affecting dairy commodity returns: the case of European dairy markets
Purpose – motivated by the price spikes and booms in major commodities markets around the world, this study looks into the factors that affect the variance in returns from dairy futures contracts. The purpose of the study is to determine whether dairy commodity prices – especially in times of economic turmoil – are being driven away from their fundamental value. The study focuses on European dairy futures markets, which are less studied by other authors in their research and are at a nascent stage of development in comparison to other agricultural commodity markets. The study includes various determinants such as energy prices, major stock indices, as well as market related variables such as financial speculation, in order to test whether returns from dairy commodities can be explained solely by macroeconomic factors or if this impact is amplified by trade volume or financial speculation within these markets. Therefore, the paper aims to assess the determinants of dairy futures prices before and after 2020, when the COVID-19 pandemic began and was followed by the war in Ukraine. Research methodology – the authors analyse dairy commodities traded on the European Energy Exchange (EEX) and employ the generalised autoregressive conditional heteroskedasticity (GARCH) modelling, as well as the Augmented Dickey-Fuller (ADF) and Granger non-causality tests to analyse what drives the returns from dairy commodity futures and the direction of this impact. The study consists of two-time frames: before and after the COVID-19 pandemic. Findings – an important finding from the study is that returns from dairy commodities are mostly explained by macroeconomic variables when analysing the post-2020 timeframe. Dairy commodities also experience asymmetric return volatility, showing that in dairy markets, negative returns are followed by reduced volatility. However, the role of trade volume or financial speculation on dairy commodity returns is found to be mixed or that it has an effect only on butter commodities when analysing 2020 and onward time period. Another important finding is that only returns from skimmed milk futures are significantly affected by seasonality. Research limitations – the study uses only two dairy commodity types in the research, there is insufficient data on non-commercial positions from EEX. Practical implications – as dairy commodities markets grow and attract more market activity, regulators should be more careful about geopolitical risks and financial speculation in European dairy futures markets. Originality/Value – the study examines European dairy futures markets, which are relatively new compared to other commodity markets and have not received as much attention in other research.
Strategic modeling of enterprise business processes for successful digital transformation
Purpose – the purpose of this study is to develop a methodology for modelling business processes based on the principles of process management and the use of modern information technology in order to improve the efficiency and quality of the enterprise. Research methodology – in this work we applied the methodology of business process analysis and optimisation based on the decomposition principle proposed by the SADT methodology. Findings – the result of the study was the development of practical recommendations for enterprises seeking to improve the efficiency of their activities and adapt to rapidly changing market conditions. The proposed methodology of business process modeling allows organi- zations not only to standardize and optimize their processes, but also to respond flexibly to changes in the external environment and maintain competitiveness. Research limitations – The study focuses primarily on SADT and IDEF0 methodologies, which may limit consideration of other potentially effective approaches to business process mode- ling. Future research may include a comparative analysis of different business process modeling methodologies to determine their relative effectiveness and applicability in different contexts. Practical implications – overall, this study makes a significant contribution to the development of modern business process modeling methodology, providing practical tools and recommendations for organizations seeking to improve their performance and sustainability in a rapidly changing business environment. Originality/Value – the novelty of this study lies in the development of an integrated methodology of business process modeling based on the principles of process management and modern information technologies. In contrast to earlier studies emphasizing individual aspects of process management or specific technologies, our study offers an integrated approach combining both managerial and technological elements.
Applying the mean-variance framework: portfolio optimization and comparative performance analysis in the emerging Colombian capital market
Purpose – this paper adopts the mean-variance approach in optimizing portfolios within the Colombian capital market, a setting full of complications such as lack of liquidity and market concentration. It delivers actionable messages for emerging market stakeholders and formulates guidance aimed at enhancing risk-adjusted returns and informing portfolio management in markets with similar structural and economic conditions. Research methodology – a bi-objective mean-variance model has been used for analyzing the stock prices of 17 stocks on a weekly basis from 2009–2024. Annual rebalancing has made the portfolio responsive to changes in the market, considering the Sharpe ratio as the benchmark to assess risk-adjusted performance. Findings – optimized portfolios in Colombia outperformed traditional investment funds by realizing better returns while having a balanced risk. Surely, this shows that the model is able to be flexible and react to changes in fluctuation, capture sectoral opportunities, and perform amazingly in a dynamic market. Research limitations – focusing on adaptability and real-time rebalancing in this work can establish a basis on which future research will operate, refining optimization strategies that incorporate advanced risk measures such as CVaR. Practical implications – the results present an effective and flexible tool for investors to optimize their portfolios in respect of risk diversification and sustainable returns, considering liquidity constraints and market turmoil. Originality/Value – this research connects theory and practice and demonstrates the flexibility of the mean-variance model in emerging economies. It emphasizes novelty in portfolio optimization solutions and further development of strategies in sophisticated financial conditions.
The link between the shadow economy and the happiness economy in EU euro area countries
Purpose – the aim of this study is to assess the relationship and influence between the shadow economy and the level of happiness in the Euro area economies of the European Union by highlighting the theoretical assumptions behind the concept and expression of the shadow economy and happiness. Research methodology – to calculate the size of the shadow economy will be used Gutmann’s index. To calculate the happiness of the economies will used the Happiness Economy Index from the World Happiness Report (2022) including the following 6 indicators (GDP per capita, healthy life expectancy (that derives to life expectancy and mental health evaluation), social support, freedom index, generosity (do-nations to charity), and corruption index. To determine the relationship between the shadow and happiness economy, the Granger causality method. Research limitations – the study’s limitations include data reliability and accuracy, methodological limitations, geographical and cultural differences, and time constraints. The estimation of the size of the shadow economy and the happiness economy index may contain inaccuracies, and the Granger causality method cannot fully confirm causality. The study is limited to the euro area countries of the European Union; therefore, the results may not be fully applicable to other countries. Additionally, the data may not fully capture long-term trends or developments. Practical implications – the results of this study can help policymakers and economists better understand how to reduce the size of the shadow economy and thereby increase people’s happiness. The study’s findings indicate a positive correlation between a country’s Happiness Economy Index and the size of its shadow economy. This suggests that investing in people’s well-being can positively impact the formal economy. Furthermore, the study’s findings can inform the development of effective strategies to combat the informal economy. For instance, strategies such as enhancing social support, increasing the freedom index, and combating corruption can potentially reduce the size of the informal economy and improve the overall economic situation in a country. Findings/Value – the research confirmed the hypothesis that the size of the shadow economy is smaller in countries with a higher happiness economy index. And Granger causality tests show that the shadow economy has a relatively strong effect on happiness in the EU euro area countries.
An exploratory study of high-educated poverty through machine learning approach: a case study of East Java, Indonesia
Purpose – the purpose of the article is to compare the importance factors for high-educated poverty modeling in the four cultural regions of East Java. Research methodology – using data from the Indonesian National Survey, this study employs Random Forest (RF), Extreme Gradient Boosting (XGBoost), Artificial Neural Network (ANN), and K-Nearest Neighbor (KNN) algorithms as classification methods in machine learning. Findings – the analysis results show that all agorithms has high accuracy with XGboost as the best performing model. The number of household members and the use of internet technology are among the most important variables affecting high-educated poverty in each cultural region in East Java. Research limitations – the research was exclusively carried out in East Java, Indonesia, potentially restricting its applicability to other geographical areas or nations. Additionally, it relied on cross-sectional data, implying that a causal relationship between the independent and dependent variables cannot be inferred. Practical implications – based on the results of this analysis, it is recommended that the government and related parties focus more on improving access to education and the internet in cultural areas in East Java. Originality/Value – this study addresses a significant knowledge gap by exploring regional variations in the factors affecting high-educated poverty, emphasizing the importance of tailored strategies for each cultural region in East Java.
The capacity of absorption and the management of human resources in asymmetrical strategic alliances: the case of Moroccan SMEs
Purpose – The aim of this work is to analyze human resources mechanisms in order to enhance the absorption capacity of SME in strategic alliances with foreign partners, the goal being to favor the transfer of know-how to these enterprises. Research methodology – The methodology applied is quantitative, based on a questionnaire addressed to 108 SME. SPSS 25 software was used to analyze the result. Findings – The results of the study underline the critical role employees’ play in the knowledge transfer process by dwelling on the need of an absorption and assimilation capacity since businesses with such capacities are conducive to the acquisition, putting into use and development as well as the creation of new skills and know-how. Research limitations – The quantitative approach of this research could be complemented by qualitative analysis. Additionally, generalizing the results from a sample of SMEs opens avenues for future research in other developing countries. Temporal and contextual extension could also enhance the relevance of the conclusions. Practical implications – Our results could be used to provide key indicators for managers of SMEs engaged in strategic alliances. The guidelines aim to streamline the transfer, acquisition, and development of new skills and know-how from foreign partners. Originality/Value – This study innovatively clarifies the administration of human resources in SMEs’ in asymmetrical strategic alliances, offering valuable insights for research into management practices.