Business: Theory and Practice

Identification the ways of counteraction of the threats to the financial security of high-tech enterprises

Vasil Franchuk — 2020-01-13

Identified key external and internal threats significantly affect the process of ensuring the financial security of the enterprise. The application of the mechanism of counteraction to the influence of external and internal threats is characterized by important. The mechanism for countering threats to the financial security of a high-tech enterprise, unlike existing ones, combines a certain essence and hierarchical ordering of the influence of key external and internal threats, involves targeted tracking of changes in the operational environment, identification of the moment of occurrence of threats, prediction of possible results of their implementation, regulating the choice of the established option actions (adaptive, active and protective), control over security, result from the application of which is the rapid adaptation to possible changes, to neutralize the negative impact of and response to threats of action in order to maintain the necessary level of financial security enterprise. The results of the study can be used in the practical activities of enterprises in the high-tech sector of the economy

Values of young employees: Z-generation perception

Jelena Titko — 2020-01-13

The current paper aims to analyse the importance of values of young employees now and in five years period.
In order to achieve the aim, the questionnaire consisting of fifty statements was developed and disseminated between the Latvian students. The sample size was 392, which shows that the results represent the whole populations. For data processing, factor analysis was chosen as a tool. The data factorability was assessed via Bartlett’s Test of Sphericity, Kaiser-Myer-Olkin (KMO) statistic, initial estimates of communality and the anti-image correlation matrix. The factors were extracted via principal axis factoring (PAF). The number of factors was determined by the scree plot/Kaiser’s rule and was equal to five in both cases. The results showed the for the young employees the essential values today are those connected to the personality trait. However, in five years, the essential values would be those that are linked to professional development.

Conversion of online purchase intention into actual purchase: the moderating role of transaction security and convenience

Ni Luh Putu Indiani — 2020-02-04

Online retail trade in Indonesia has grown dramatically in recent years. However, it is not being followed by an increase in the transaction completion ratio, with a cart abandonment rate of up to 70 percent. This indicates that the transition from online purchase intention to actual purchase is not as simple as postulated in the theory of planned behaviour (TPB); yet, there are other factors moderating the conversion. Therefore, this study aims to develop a model analysing the moderating role of perceived transaction security and convenience in the relationship between online purchase intention and actual purchase. Model development was also motivated by critics regarding TPB’s robustness in explaining consumer purchase behaviour; therefore, this model is expected to enrich TPB by providing a more comprehensive picture in online purchase behaviour. The sample consisted of consumers who had shopped for retail products online. The proposed relationship was tested with partial least square method. Results showed that perceived transaction convenience has a positive and significant moderating effect, whereas perceived transaction security showed an insignificant moderating impact. This finding is noteworthy amid risky online purchase environment. Respondents’ characteristics and alternative payment methods might explain the insignificant moderation. As a practical implication, it is recommended that online retailers improve online transaction convenience to increase the conversion rate.

The effect of customer empowerment and customer engagement on marketing performance: the mediating effect of brand community membership

Anber Abraheem Mohammad — 2020-02-04

This study aimed at examining the mediating role of brand Community membership on the effect of customer empowerment and customer engagement on marketing performance. The population of the study contained students of universities in the North Region of Jordan. A total of 1320 questionnaires were administered to sample members, and 895 questionnaires were returned completed. Data analysis indicated a significant partial mediation of brand community in the effect of customer empowerment on customer satisfaction but not in the effect of customer engagement and customer loyalty.Interestingly, the results confirmed that employee engagement is more important for organisations to ensure customer loyalty. The effect of customer empowerment on customer satisfaction was mediated by the customer’s membership to the brand community. Thereupon, organisations should ensure put their customers’ engagement as a priority. Further research is required to investigate the predictability of both customer satisfaction and engagement using different samples from several settings.

Innovative work behaviour: an integrative investigation of person-job fit, person-organization fit, and person-group fit

Emiliana Sri Pudjiarti — 2020-02-04

In relation to the problem of SME productivity, it is necessary to investigate whether there is a problem of mismatch between workers and work and groups and corporate cultural values. This study aims to analyze whether the concept of innovative work behavior can mediate the relationship of person-job fit, person-organization fit and person-group fit to job performance. The study was conducted in the metal SME industry in Tegal Regency, with 256 respondents. Data collection tools use questionnaires and interviews. Data analysis is done with a structural equation model. Based on the results of the analysis, there is a positive relationship between variables. This illustrates that the challenges of SMEs in the future are to maintain the best human resources to remain committed to the organization. In maintaining its existence, alignment of individual values with work, organization and groups is the best tool to achieve goals through innovative changes in employee behavior, and also to lay a solid foundation in the recruitment and selection process of new employees that have the potential to increase job performance.

Financial information and management decisions: impact of accounting policy on financial indicators of the firm

Gintaras Černius — 2020-02-06

To be useful for decision-making accounting information needs to be of high quality. This article examines how tax accounting rules may impact the accuracy and reliability of the information contained in financial statements. The simulation model reveals that significant distortions occur in accounting information due to the choice of depreciation period and methods. Using as benchmark ratios calculated applying accounting policy recommended in Business Accounting Standards a significant divergence between ratios has been found. This finding implies that ratios calculated using accounting rules allowable for Corporate Income Tax calculation can provide misleading information and lead to unsound financial management decisions.

Industry 4.0 concepts within the Czech SME manufacturing sector: an empirical assessment of critical success factors

Fortune Nwaiwu — 2020-02-06

The paper analysed factors that has the most impact in influencing the achievement of a sustainable process management model in the implementation of Industry 4.0 concepts within the Czech SME manufacturing sector. Several factors were identified and their interactions with digital technologies within the production environments was analysed. These factors, from an organisational perspective were identified as critical to success in the quest to achieve Industry 4.0 compliance and digital transformation of the manufacturing operations of companies. They include: strategy, organisational fit, competitiveness, operations and human resources. A mixed methods approach was adopted for the research. It involved both the qualitative and quantitative methodological approaches. The qualitative aspect involved an extensive systematic review of relevant literature which was useful in developing the conceptual framework and identifying the relevant factors that enable the implementation of an efficient Industry 4.0 process management model in SMEs; the quantitative aspect involved the use of a survey questionnaire to collect data which was analysed using confirmatory factor analysis statistical approach to test the measures of the constructs in the proposed conceptual framework. The result from the statistical analysis shows the factors that in the conceptual model that were supported as being relevant in achieving an efficient process management model for successful implementation of Industry 4.0 concepts in Czech manufacturing SMEs. The research limitation is based on the fact that the SMEs covered in the quantitative aspect of the research are restricted to a particular geographical location – Czech Republic. It would be interesting to have similar studies conducted in other geographies for a comparative perspective. It contributes to the scientific and practical discourse on Industry 4.0 process management model implementation in SMEs by investigating the phenomenon through the production of credible scientific evidence.

Theoretical aspects of human capital formation through human potential migration redistribution and investment process

Olha Podra — 2020-02-06

Our research is devoted to the investigation of theoretical aspects of human capital formation through human potential migration redistribution and investment process. This topic was chosen because in the modern conditions human potential development becomes one of basic factors of the competitiveness and economic growing of countries. Migration redistribution becomes an effective mean of indemnification of human potential losses, gives additional possibilities to its development financing, quantitative increase and additional innovative changes in the context of information society and knowledge-based economy development. The detailed analysis of the human potential development and implementation on the global labor market, the emergence of the migration cycle, and process of human potential transformation to capital that is able to provide the socio-economic and individual effects receiving was conducted in the article. Results of this study have theoretical and practical significance. They can be used as a basis for further scientific studies in this field and can be used by state institution in the direction of strategic management of human resources through the human potential migration redistribution and investment process that implies expansion of investment instruments, market infrastructure subjects development all this may provide the reception of material or status effects as a result of human potential capitalization in the labour market.

Female advantage? Management and financial performance in microfinance

Sigurdur Gudjonsson — 2020-02-06

The purpose of the article is to investigate whether female presence in microfinance institutions’ management team, i.e. board members, managers and loan officers, will improve their financial performance. We combine financial data on MFIs that is available from the MIX Market database with original data on the gender composition of MFIs’ management team, who include board members, managers and loan officers. This original dataset of 223 MFIs is analyzed using Logit-Tobit regression models with return on assets (ROA) as the dependent variable and proportion of female board members, female loan officers and female managers as the main independent variables. We find that a higher proportion of female managers and female loan officers improve financial performance in microfinance, while a higher proportion of female board members does not. Our results indicate that a major contributor to the financial sustainability of microfinance institutions is having a higher rate of women in vital decision-making roles, especially lower level management positions.

Direct and indirect effects of operant resources on co-creation experience: empirical evidence from Airbnb consumers

Revi Hastari — 2020-02-17

This study aims to empirically analyze the direct and indirect effects of operant resources on co-creation experience of Airbnb consumers. Specifically, this study examines operant resources’ impact on perceived benefits, trust, and co-creation experience. In addition, this study also investigates the effect of perceived benefits, and trust on co-creation experience. We managed to collect a sample of 201 respondents obtained through online surveys. Respondents were consumers who have used Airbnb service offerings. Data were gathered using a questionnaire developed on the basis of a literature review. A convenience sampling was adopted in inviting consumers to participate in this study. The hypotheses were analyzed using simple and multiple linear regression analysis. The results show that operant resources are proven to influence perceived benefits, and trust of consumers. Likewise, perceived benefits, trust, and operant resources have been shown to influence the co-creation experience. The novelty and the most important contribution of this study are that it has succeeded in proving empirically the existence of the Service-Dominant Logic (S-D Logic) perspective.

Indonesian peer to peer lending (P2P) at entrant’s disruptive trajectory

Cliff Kohardinata — 2020-02-17

Peer to peer (P2P) lending in Indonesia has been growing rapidly, therefore there is the potential for disruptive innovation processes in the financial sector. The aim of this study is to examine the impact of the growth of P2P lending on the growth of bank lending for micro, small and medium enterprises (MSME) and Non-MSME debtors. Separating the scale of the debtor is important, given the initial process of disruptive innovation of reaching areas that are not the incumbent’s main target. The examination was conducted in this study using panel data regression, whereby the examination was done in stages. This was an overall examination without differentiating between the regions, further examination conducted with more detail by separating between the loans inside and outside Java Island. This is because the economic structure in Indonesia is still dominated by the regions in Java, but FinTech is generally able to grow in areas with less developed local economies. The result of this study is consistent overall, Java and outside Java Island, as shows that the growth in P2P lending in Indonesia does not have a significant impact on the growth of bank loans for Non-MSME lending. However, it does have a negative impact on the growth of bank loans for MSME lending. This is in line with the entrant’s disruptive trajectory process by which the entrants enter the competition through an underserved market (niche markets) and not through the main target market of the incumbent (MSME).

The sustainable performance of the digital start-up company based on customer participation, innovation, and business model

Pri Agung Danarahmanto — 2020-03-06

The digital-based start-up industry in Indonesia has developed, but with a high failure rate. This research aims at elaborating the relationship between business model, entrepreneurial orientation, innovation, and sustainable performance on the digital start-up companies in Indonesia. The data were collected using offline and online surveys to 206 leaders or founders of digital start-up companies spread throughout Indonesia. Then, the data were then analysed using the structural equation model. The research results revealed that a business model had a significant role in achieving sustainable performance. A business model needs to be supported by customer participation and innovation. Innovation was more influential compared to customer participation in achieving companies’ sustainable performance. The indirect effect of customer participation and innovation on sustainable performance through the business model was greater than the direct effect not through the business model. The novelty of this research is the examination and analysis of the relationship between innovation, customer participation, business model, and sustainable performance in one model, and the use of digital start-up companies in Indonesia as the research analysis unit.

An empirical analysis for the perceptions of Amman stock exchange’s investors

Mohammad Sami Ali — 2020-03-06

Research problem: Although the economy of Jordan witnessed dramatic volatilities and fundamental variables including market-to-book value ratio and interest rate are located at the middle of these variations; there is a lack in literature regarding the impacts of market fundamentals and dividends policies in investors’ perceptions, as captured by the performance of Amman stock exchange.

Research objectives: Thus, due to the power of these variables to impact investment decisions, this research aimed at scrutinizing the long and short-run causalities, which are running from market fundamentals, dividends policies, and the 2008/11 financial crisis towards investors’ perceptions.

Research methodology: To accomplish the core aim of this research, empirical techniques like Augmented Dickey Fuller, Johansen Co-integration, the single equation of the error correction model “ECM” and the Wald test are mainly utilized to analyze a time series data set covering the period Jan/1990–Dec/2017.

Results and future recommendations: Consequently, results from ECM confirmed that the study’s variables are not integrated over the long-run. Alternatively, findings from the Wald test approved that investors’ perceptions as captured by the market’s performance are statistically related to market fundamentals, dividends policies and the recent financial crisis. Therefore, the study concluded that ASE’s investors adopt the view of Gordon (1962) and Lintner (1962) during the short-run. However, the study recommends further researchers to follow the study’s models to investigate the other variables, which are impacting investors’ perceptions, as well as examining the impact of financial crises in the decisions of dividends’ policies.

The development and validation of the Penta Helix construct

Kiki Sudiana — 2020-03-06

The concept of Penta Helix or Quintuple Helix have been widely discussed and used as frameworks in many researches in relation of innovation or organizational innovation field. it is believed that if the Penta Helix stakeholders work together in synergy it will foster innovation and an innovation-based economy. However, no research has been found yet that validate measurement constructs of the Penta Helix or the Quintuple Helix. Through extensive literature review, we developed a construct of the Penta Helix variables in relation to innovation and knowledge-based economy, into five dimensions consisting of Academicians, Business, Government, Community and Medias (ABGCM). The data was collected through a questionnaire distributed to 95 technology-based startups in Indonesia, and afterward analysed by using confirmatory factor analysis technique, performed by the SmartPLS software. A final 20-item measurement construct was validated as main contribution of this study toward Penta Helix theory. There are issues arose on methodological and theoretical of the Penta Helix construct and discussed in our findings.

E-commerce drivers and barriers and their impact on e-customer loyalty in small and medium-sized enterprises (SMES)

Ahmad Adnan Al-Tit — 2020-03-06

The aim of this paper is threefold: first to explore the factors that significantly and positively affect the adoption of e-commerce in SMEs; second, to determine the factors that hinder the adoption of e-commerce in these enterprises; and, finally, to investigate the impact of e-commerce-related factors on e-customer loyalty. Two samples were used for the purpose of the current study, the first of which comprised 163 managers of SMEs while the second consisted of 213 customers. Data were collected via electronic questionnaires sent to the study participants. The results identified 10 drivers of e-commerce, which are customer preferences, e-commerce perceived value, partner readiness, e-commerce cost, technical expertise, customer trust, employee knowledge and experience, top management support, perceived ease of use, and organizational culture, and 7 barriers to e-commerce adoption, which are employee technology knowledge, telecommunications, connectivity cost, technical expertise, technology cost, internet security, and legal barriers. Furthermore, the results highlighted that e-commerce ethics, information quality, customer trust, user interface quality, and customer satisfaction, respectively, are the main predictors of e-customer loyalty. Basically, organizations are called to adopt e-commerce to increase their customer loyalty. However, organizations should consider the drivers of and barriers to e-commerce adoption found in the current study.

Does differentiation strategy model matter? Designation of organizational performance using differentiation strategy instruments – an empirical analysis

Xhavit Islami — 2020-03-06

Considering pursuing the differentiation strategy makes enable the organization to earn its success and to create, capture and sustain economic value. Despite this importance, it is relatively absentminded in empirical studies at the conceptual level. In response to this gap, the purpose of this paper is conceptualizing differentiation strategy model, developing the instruments of differentiation strategy, and testing the relationship between dimensions of the value chain, differentiation in the supply, competitive advantages, and organizational performance, using data from a sample of 123 manufacturing organizations. On this study, quantitative methods were applied to measure the proposed relationships, and questionnaires were used as a tool in gathering primary data. Relationships proposed in the framework were tested using structural equation modeling. The results of this study indicated that pursuing the differentiation strategy leads on increasing competitive advantage and improving organizational performance. Also, it pointed out that the manufacture organizations’ success is determined by their ability to be flexible on strategic planning and on integrating internal and industrial settings factors on differentiation strategy creating. This research contributes to strategic literature clarifying a successful differentiation model helping the practitioners on increasing the ability and knowledge on pursuing the differentiation strategy.

Self-employment of foreigners as an innovative solution on the labor market in the European Union

Valentinas Navickas — 2020-03-06

The main aim of this article is to identify certain specificity in self-employment of foreigners in EU countries and to find out whether the differences in self-employment of foreigners between countries are diminishing. Within the main objective, we have set two sub-objectives. The first sub-objective is to compare EU countries on the basis of the following indicators: 1/ number of self-employed foreigners and 2/ share of self-employed foreigners in employed persons from foreign countries. The second sub-objective is to determine whether EU countries converge in the number of the share of self-employed foreigners in the number of employed persons from foreign countries. We have confirmed that the countries have a tendency to convergence in regard to the share of self-employed foreigners in employed persons from foreign countries. We assume that this tendency can also be due to the pressure of the labour market that shows a lack of labour force. The share of self-employed migrants is relatively high in Eastern Europe. On the other hand, their increase is below average compared to the EU.

Congruence between real and ideal leader. What matters more in today’s work world: ethical behavior of a leader or productivity?

Aurelija Stelmokienė — 2020-03-09

This paper draws from follower centric perspective and implicit leadership theories to explore factors that predict higher congruence between real and ideal leader in followers’ view. It also examines the impact of sociodemographic and organizational characteristics to the prediction of perceived congruence. 267 Lithuanian employees from private and public organizations participated in internet-based survey. Followers filled up a questionnaire about their direct middle supervisors: they rated fit between ideal and real leader, leader’s ethical behaviour and productivity of work unit. Results indicate that both ethical behaviour of a leader and productivity are important predictors of employees’ perceived congruence between real and ideal leader. However, ethical behaviour has significantly higher standardized beta coefficients in comparison with productivity in public sector organizations. Therefore, the context needs to be considered when making leaders’ selection and promotion decisions based on follower preferences. Important insights for leadership research are also discussed in the paper.

Talent retention strategies and employees’ behavioural outcomes: empirical evidence from hospitality industry

Folakemi Ohunakin — 2020-03-13

To enhance the extant literature of talent retention and proffering solution to the negative employees’ behavioural outcomes of high performers in hospitality industry, this study investigates the influence of talent retention strategies (training and development, and job security) on employees’ behavioural outcomes (employee job performance and employee job commitment) in Nigeria’s hospitality industry. Pen and paper questionnaire was used for gathering quantitative data among 312 frontline employees working in the selected 5-star hotels in Nigeria. Descriptive statistics, Confirmatory Factor Analysis (CFA), Structural Equation Modelling (SEM) and Path analysis were used to establish the mean, standard deviation, measuring instrument reliability, convergent, divergent and test of hypotheses respectively. The outcomes showed significant role of these retention strategies on employees’ behavioural outcomes. This implies that, management should show consistent support for the career development and economic stability of their workforce, and most especially the professionals. This is highly important for gaining their full attention and positive workplace behaviour. This will create positive employer’s branding, generate knowledge transfer, strengthen succession plan and retain top talents.

A qualitative study OF Green HRM practices and their benefits in the organization: an Indonesian company experience

Lieli Suharti — 2020-03-13

Green Human Resource Management (HRM) aims to shape employee behavior to help organizations achieve their environmentally-friendly goals. Firms can translate the implementation of Green HRM concept into each HRM function. This paper is qualitative exploratory research that investigates the implementation of Green HRM in a company located in Indonesia that is internationally reputable for being an environmentally friendly company. This study aims to highlight the implementation of Green HRM through various HRM functions and to analyze the positive impacts of the implementation of Green HRM on individuals and organizations. The results demonstrated that the implementation of Green HRM provided benefits for individual employees and the company as well. In particular, individual employees had better green and non-green work outcomes. Meanwhile, at the organizational level, the benefits of the implementation of Green HRM were the creation of environmentally friendly organizational culture and work climate, the increased efficiency of various resources, the formation of positive corporate image and increased economic and eco-performance. It is expected that this study contributes to extend the literature on the implementation of Green HRM and its benefits to companies.

Discovering support needed for startups in their early stages using on Penta Helix framework

Kiki Sudiana — 2020-03-16

Startup companies are expected to become the new engines of economic growth through the rise of new innovation-based entrepreneurs. The Penta Helix framework is widely used as a framework to analyse factors related to the development of innovation-based companies. The use of the Penta Helix framework as the unit of analysis is considered to be relevant because this framework offers a comprehensive perspective and is in line with the economic development innovation and knowledge-based startups. However, there is a lack of research that has been conducted that analyse the nature of support that can be given to startups at their early-stage of creation using the Penta Helix framework that consists of five stakeholders namely Academicians, Businessmen, Government, Communities. This study aims to propose a conceptual model about the nature of support needed by startups in order to survive in their initial stages by using the Penta Helix Framework. This study is a qualitative one using the Focus Group Discussion method, in which participants are made of six early stages technology-based startup founders and CEOs, who were gathered to conduct several discussions regarding the topics. Our results show that obstacles faced by startups include among other: difficulties in obtaining qualified yet affordable workforce in facing existing competitors, difficulties in increasing sales, difficulties in managing product development costs, no adequate support from the government, and ineffective incubation programs. A model that consists of lists of support that startups need, was depict as main contribution from the discussion, named Penta Helix support for startups. This model offers comprehensive practical guide for policy makers to support startups from five perspectives.

The impact of human resource management practices on organizational performance case study: manufacturing enterprises in Kosovo

Arta Jashari — 2020-03-16

The purpose of this study is to examine the impact of human resource management practices on organizational performance. In this study a total of 100 managers of manufacturing firms in Kosovo from public and private sectors have responded to the survey. The survey questionnaire had contained 39 items covering selected HRM practices and organizational performance. Our empirical results show that managers of manufacturing firms in Kosovo recognize the importance of employees in their organization and apply practices to manage them effectively. The outcome of correlation analysis provides evidence that HRM practices positively and significantly influence organizational performance. Recruitment and selection practices show the strongest positive association with organizational performance (rho = 0.905) compared to other practices. Regarding to our findings we suggest that with a good recruiting and selection, the organization will fill with a group of potentially qualified candidates. Also, companies should continuously train and develop and involve their employees as they are viewed as the most important resources source of competitive advantage.

The effect of financial inclusion and financial technology on effectiveness of the Indonesian monetary policy

Birgitta Dian Saraswati — 2020-03-19

The existence of non-inclusive households significantly reduces the effect of the interest rate change policy on households inter-temporal consumption decisions. Further, financial inclusion is closely related to fintech. On the one hand, fintech helps overcome the financial inclusion problem because fintech manages to reach those who were previously inaccessible by banks. On the other hand, fintech will change the payment system structure in an economy that will eventually affect the effectiveness of monetary policy. Using the Vector Error Correction Model (VECM) with the observation period of 2009–2018, this study aims to analyze the effects of financial inclusion and fintech on effectiveness of the Indonesian monetary policy within the framework of the transmission mechanism of monetary policy through interest rate channel with both the cost of capital effect and the substitution effect. The results demonstrate that financial inclusion level affects inflation rate as a proxy of effectiveness of the Indonesian monetary policy, both in the short run and long run. However, the effect of shocks in financial inclusion on inflation is not permanent. Meanwhile, fintech only affects inflation rate in the short run. However, shocks in fintech affect the volatility of inflation rate is permanent both through the substitution effect and the cost of capital effect.

The role of job crafting in the relationship between empowering leadership and happiness at work: an empirical analysis

Mohammed Yasin Ghadi — 2020-03-24

The purpose of this study is to examine a hypothesized model investigating the impact of empowering leadership on happiness at work through the mediating role of job crafting. A translated pre-determined survey on a sample of Jordanian academics was used. A total of 325 usable returns were collected for the analysis (i.e. a response rate of 84.6 percent). Structural equation model (SEM) using AMOS was implemented to obtain the best-fit model and to determine the role of job crafting as a potential mediator between empowering leadership and happiness at work. The results indicated no direct statistical effect for empowering leadership on happiness at work with an estimated value of 0.17 and a standard error of 0.073. The results also show that there was a significant statistical effect for empowering leadership on crafting and this effect was high with a value of 0.479 and a standard error of 0.040. Finally, the results revealed a direct effect for empowering leadership on happiness at work through the mediating role of job crafting. The study recommended that it is necessary for universities to offer new programs and workshops that improve the behaviors of empowering leadership in light of work conditions at various levels and to motivate job crafting to increase levels of happiness at work.

Innovative development and human capital as determinants of knowledge economy

Olha Podra — 2020-03-24

The development of a knowledge economy is a key priority for innovative progress and for ensuring the country’s competitiveness through the efficient use of intellectual resources and human capital. Our paper is focused on a necessity to find out the influence of human capital in providing innovative development and the formation of knowledge economy, to develop measures for its formation, accumulation, preservation, reproduction in order to increase national competitiveness at the world market. The foundation of the knowledge economy is productive knowledge and quality education that contribute to the intellectual capital embodiment into productive activities. A detailed analysis of the current state and problems of the education and science spheres has been carried out, international ratings have been analyzed and the place of Ukraine in them is determined in the article. An estimation of financial losses of the economy in connection with the outflow of students to study abroad is hold in the article. By using the trend modeling method we propose to estimate the effect of the predicted values of the components of innovation activity on the Global Innovation Index. Results show that Ukraine position in the Global Innovation Index rating will strengthen, which can testify, about the redistribution of financing of the innovation sphere in favor of private institutions and investors. The transition to a knowledge economy involves an understanding of the decisive influence of science, the latest technologies, innovations in the global economy, and enables the resource-oriented countries to leave this status and become a countries of high-tech and high skilled development, based on the transformation of knowledge into a source of value and the driving force of economic progress.

Assessment of economic security of enterprises: theoretical and methodological aspects

Svitlana Shynkar — 2020-03-24

The main objective of the study is to formulate a new approach of assessing economic security for industrial enterprises, indicating a different approach from existing ones, to allow for the very specifics of economic activity, and to allow the use of qualitative and quantitative indicators. We justified that the effectiveness of ensuring the economic security for industrial enterprises is determined by the quality of the information basis for the actions of security entities. A methodological approach is proposed that provides for the determination of the security level at three levels: “indicator – functional component – financial indicator” and allows to obtain reliable information about the economic security of oil and gas, engineering and food industries by taking into account the specifics of their economic activities.

Anti-crisis personnel management in the process of ensuring the economic security of the enterprise

Stepan Melnyk — 2020-04-15

Crisis phenomena in many countries of the world do not allow enterprises to develop. Enterprises have to face permanent threats and risks that significantly reduce the current level of their economic security, the problem of creating a protection system, that is, an integrated system of economic security has become a priority. The aim of the article is to determine the impact of the crisis on the management process and the efficiency of personnel use as the basis for the development of anti-crisis solutions, the implementation of which should provide the necessary level of economic security for the enterprise. The results of our study allowed us to identify possible options that ensure the effective implementation of anti-crisis personnel management, focused on restoring the level of economic security necessary for the functioning and development of the enterprise. It was found that in the process of implementing anti-crisis personnel management it has a number of features caused by both the difference in the impact of the crisis, that is, the presence of positive and negative consequences, and a significant list of external and internal factors that must be taken into account when developing each individual anti-crisis solution.

Soft system methodology approach: tourism conceptual model as the identity of Bandung, Indonesia

Leo Aldianto — 2020-04-15

The Indonesian tourism sector has become one of government’s focus points because of its significant contribution to economic development on all levels, district/city, province, or national. As an Indonesian city, Bandung has a lot of tourism potential with its local cultural diversity. The purpose of this research is to develop a conceptual model design of tourism, especially in Bandung city as one of the cultural identity cities in West Java. A system thinking approach with qualitative analysis, known as the Soft System Methodology (SSM), is used in this research. Qualitative data collection techniques were carried out by a purposive sampling technique which was obtained from the results of in-depth interviews with stakeholders that included academics, representatives of the government, communities, and businesspeople in the tourism sector. The result of this research is a conceptual model design for Bandung city tourism as the identity of a cultural city, called as Sunda Culture Center (Sunda Centrum).

Preventional audit: implementation of SOX control to prevent fraud

Karina Nazarova — 2020-04-20

The Euro-integration vector of Ukraine economic development and business in the open economy zone expands the economic and social potential of domestic enterprises and requires the formation of a reliable information environment to ensure the corporate interests of their investors (in the first) and other users of information (in particular). Today, corporate fraud is the most widespread form of economic crime in Ukraine and the world, which affects about 48% of domestic enterprises. The study attracted substantiated attention to the negative tendency towards the growth of economic crime in Ukraine, which in the end focuses on the fact that domestic business should apply a set of measures to withdraw part of the business from the “shadow economy”. As a result, such measures will help increase the attractiveness of Ukraine’s business investment. The study systematized and analyzed the progressive experience of developed countries, in the first place, the United States, in the fight against economic fraud. The study provides all grounds for asserting that it is quite feasible to achieve the tangible reduction of economic (financial) fraud with preventive measures (which is rather quick and effective). It is proved that the lack of aspirations of the enterprise management to overcome fraud leads to the formation of new money laundering schemes, and not control mechanisms – prevention of opportunities for committing fraud.

Do generic strategy and productivity help detect corporate retail bankruptcy risk?

Steph Subanidja — 2020-04-24

Recently, there have been several retail companies experiencing bankruptcy. Many studies on bankruptcy risk are more seen from the financial performance perspective. Studies on the risk of financial performance are good but it seems too late to detect the risk. So far, no research investigates some antecedents on the risk directly. It is commonly ended in financial performance. This study detects earlier the risk from antecedents of financial performance as an indicator of the risk. The study aims to investigate the effect of generic strategy, as well as productivity, on bankruptcy. The study is causality research. The population is 25 retail companies. With certain criteria, there are 17 companies as a sample. By using SEM and smart-PLS, it can be concluded that cost leadership affects both on productivity and the risk. Then, the differentiation strategy does not affect productivity, but it affects the risk. Furthermore, productivity is eligible as an intervening variable on the risk. Moreover, the strategy and productivity are good but not enough to detect the risk. Therefore, for detecting the risk possibility, it is needed a further research improvement for detecting the risk from a macro and micro perspective comprehensively.

Reputation system of C2C e-commerce, buying interest and trust

Linda Kusuma — 2020-04-24

One form of the development of technology and internet users in Indonesia is the merge of various C2C (Customers to Customers) e-commerce on the marketplace. Bukalapak is one of the examples. This research presents the effects of reputation systems on trust, trust in buying interest, and reputation systems on Bukalapak customers’ buying interests. A total of 120 respondents participated and the data were analyzed using structural equation modeling with Amos 20 software. The results show that the reputation system has a higher direct impact compared to the impacts mediated by trust. Therefore, in an effort to increase the buying interest, the sellers should increase their reputation in the reputation system represented in the list of feedback, review, and the badge level in Bukalapak. To marketplace providers, in this case, Bukalapak, there is still a need to increase the customers’ trust. Although it is significant, however, it has low impacts both directly and indirectly.

Accelerating small firms’ production process improvement through international market knowledge and valuable, rare, inimitable, and organized resources and capabilities

M. Elfan Kaukab — 2020-05-07

This article aims to explore the factors influencing MSMEs – Micro, Small, and Medium Enterprises production process improvement using variables of VRIO (Value Rarity, Inimitability, and Organization) resources and capabilities, foreign market knowledge, and internationalization. This research is conducted in 150 exporting-MSMEs samples in Central Java, Indonesia. The main analysis applied in this research is multiple regressions. The result shows that VRIO resources and capability, foreign market knowledge, and internationalization, significantly influenced production process improvement. It emphasizes that degree of internationalization only weakly influencing process improvement. The more important factors are internal factors like knowledge, resources, and capability. The result obtained can be used as the basis to develop the strategy of capability improvement for MSMEs in designing internationalization strategy. The strategy will closely relate to MSMEs’ process improvement to compete in international market. This research provides two contributions. First, the internationalization of handicraft MSMEs does not strongly define MSMEs production process improvement. Second, process improvement can be accelerated by gaining market knowledge and exploiting valuable, rare, inimitable, and organized resources and capabilities.

Techno-resonance innovation capability for enhancing marketing performance: a perspective of RA-theory

Lauw Sun Hiong — 2020-05-18

The current study is conducted to fill up the research gap on the inconsistent findings of the ability of market orientation in enhancing marketing performance through inserting the techno-resonance innovation capability and product innovativeness as factors to leverage marketing performance. Five hypotheses were developed and tested in a sample frame of 121 SMEs in the region of West Borneo, Indonesia. The findings of this study demonstrate the pivotal role of techno-resonance innovation capability in two folds. Firstly, a techno-resonance innovation capability is proved as a mediator of marketing orientation in enhancing marketing performance. Secondly, the techno-resonance innovation capability, which holds the potential for enhancing the product innovativeness, is essential but not sufficient to enhance marketing performance; still, another extra effort is necessary, such as resonating the value of innovativeness to the target market.

Credit risk management based on harmonious cultural values to support microfinance institution performance in Indonesia

I Putu Astawa — 2020-05-25

Credit risk is important in developing the performance of a microfinance institution. The aim of this research was to analyze credit risk through a harmonious cultural approach to improve financial performance. Qualitative approach was used to explore the practice of harmonious culture in managing credit risk. The result of the qualitative study would be utilized to design a questionnaire for quantitative test. Ninety-four (94) companies were selected as the samples by using Slovin Method. The result of the qualitative study explained that harmonious culture-based credit risk was influenced by loan quality, collateral quality, customary rules, traditional leaders, and the belief in karma phala law. Quantitatively, it was found that loan quality, collateral quality, customary rules, traditional leaders, and the belief in karma phala law simultaneously influenced the financial performance. The research result had an implication to risk management in improving financial performance. It could also be used as a new strategy for managers to maintain good relationship with customers.

Determinants of technological innovations in health tourism enterprises

Elżbieta Szymańska — 2020-05-25

The research problem is the implementation of technological innovations in health tourism services. The main purpose of the paper is diagnosing determinants of technological innovativeness of enterprises that provide health tourism services. Two detailed objectives were laid down – specifically, an indication of these determinants in respect of the range and type of a technological innovation. The methods applied in the research are: Delphi method, comparative analysis, the range method and the standardised interview method. In order to indicate determinants the following research techniques were used: Kruskal - Wallis test, factor analysis, analysis of medium-rank test, Spearman’s rank order correlation test. The primary result is diagnosing determinants affecting technological innovativeness of the subjects under study which are: quality of endogenous human capital of the surveyed entities and inflow of external information. The research is of ground-breaking nature since until now, technological innovations in health tourism have not been described in economy literature. The results have an impact on the development of economics and management sciences, contributing to the development of innovation theory and enterprise management. Moreover, the results potentially contribute to the practical aspect by means of their application by practitioners – organisers of health tourism.

The behavioural consequences of perceived service quality: a study of the Indian telecommunication industry

Deepika Jhamb — 2020-05-26

The telecom industry in India has witnessed substantial growth over the last decade. Rapid growth of telecommunications is opening up the doors for many telecom players from Europe, Asia and other parts of the world, resulting in increased competition and tariff reductions. In the present competitive environment, the services perceived by the customers and their behavioural intentions play a pivotal role in the customer switching process among service providers. With the changing expectations of service quality, it becomes imperative to discover the gap between customer expectations and customer perception. In this context, the aim of the present study is to identify the existing gap between customer expectations and perceptions and investigate the relationship between post-experience perception of service quality and customers’ behavioural intentions. The data was collected from 500 customers in Delhi NCR, India. Paired sample t-test and multiple correlation analysis were performed. The results of the study points out the key areas wherein the service gaps are considerably high such as reliability and responsiveness. The customer behavioural intentions, such as “Complain to customer service if a problem occurs”, “Switch to another service provider” and “Reducing the usage with a particular service provider”, have shown a strong relationship with quality of service. The findings of the study confirm that the perceptions of customers regarding the quality of service received definitely have an impact on their behaviour.

Experience of transformative leadership: subordinate’s perspective

Jolanta Sondaitė — 2020-06-03

Despite the growing popularity of transformational leadership (TL) in organization studies, there is a lack of studies trying to reveal subordinate’s perspective on experience of TL. The present study examined how subordinates employed in customer service experience TL during organizational change. The participants were people working in two international organizations operating in Lithuania. The data were collected through semi-structured interview. Phenomenological procedures were used to analyze the data. The conducted phenomenological analysis of TL from the subordinate’s perspective reveals that subordinates under TL feel secure and empowered, have extensive data about the ongoing change, receive full manager’s support and individual attention, share acquired knowledge in performing delegated duties and collectively aspire for a common generally accepted goal set by the manager and consequently are more positive about organizational change. The results of the present study contribute to the better understanding of the inner experiences of TL by subordinates working as customer service specialists in the context of organizational changes.

The impact of emotional intelligence and intercultural competence on work productivity of volunteers in respect to age and length in volunteering

Ingrida Vinickytė — 2020-06-04

The aim of this study is to evaluate the impact of emotional intelligence and intercultural competence on the effectiveness of volunteer work with respect to the age and length of volunteering. 174 volunteers who have volunteered or are volunteering under the Erasmus + European Voluntary Service participated in the survey. The results of the study are presented as answers to the following problematic questions: Does higher emotional intelligence and higher intercultural competence increase the effectiveness of volunteer work? Does intercultural competence increase due to higher emotional intelligence? Do older volunteers have higher intercultural competence and higher emotional intelligence? Do volunteers with greater volunteering experience have higher intercultural competence and emotional intelligence? Do people with longer volunteering experience at the European Voluntary Service (EVS) have a higher level of intercultural competence and emotional intelligence? Based on the results of the study, factors that have a significant impact on the productivity of internationally active volunteers were identified.

The moderating role of firm size on financial characteristics and Islamic firm value at Indonesian equity market

Perdana Wahyu Santosa — 2020-06-04

This study aims to understand the moderating role of firm size on financial characteristics and Islamic firm value. Then study how the influence of firm size moderation on the relationship of financial characteristics and corporate governance with firm value. This study uses secondary data from financial statements and analyzed by the panel data method for six years. The sample selection is arranged by the purposive sampling method with Islamic index constituent population. Conclusion: leverage, profitability, and efficiency have a significant positive effect on Islamic firm value, but the liquidity and audit committee do not affect. Firm size moderators provide a reinforcing effect for all independent variables so that liquidity and audit committees have a positive effect on firm value. Implications: Islamic firm investors in the equity market should consider the crucial variable, namely firm size, in addition to firm and corporate governance characteristics. These conclusions provide important implications for managers and relevant authorities to enhance financial market information related to firm value and further attention to corporate governance mechanisms.

Business ethics in human resources management practices and its impact on the organizational performance

Khalaf Ibrahim Al-Tarawneh — 2020-06-08

There is a growing interest in BEs at present, because it has become an important necessity in all business functions in organizations, particularly HRM. Human resources function deals with one of the most important resources in the company to improve performance and gain competitive advantage. Therefore, HRM practices should be applied based on ethical principles such as fairness, transparency and equal opportunities. This study aimed to determine the extent of commitment to BEs within the HRM activities in the industrial companies listed on Amman Stock Exchange and its impact on the performance of those companies. The results of the study showed that there is a high degree of commitment to BEs in all HRM practices. The results of the study showed that there is a high degree of commitment to BEs in all HRM practices in terms of recruitment, selection, training, compensation, and appraisal employees’ performance. The results also showed that there is an impact of practicing BEs in all activities of HRM except compensation on the OP. At the end of the study, the researcher developed a set of recommendations that he considered they are necessary to achieve a higher level of commitment to BEs in order to improve OP.

Saudi women behavior towards the acceptance of industrial small business

Bader Almohaimmeed — 2020-06-08

The aim of this research was to canvass Saudi women’s opinions about behavioral beliefs, i.e., attitudes, subjective norms and perceived behavioral control on their behavioral intention and hence adopting the small business initiative. Following the descriptive method, adopting the planned behavior theory PBT, a questionnaire consisted of 15 items was adapted to measure the variables of the research, i.e., three predictors, which are attitudes toward the behavior, subjective norms and perceived behavioral control, one mediating variable, which is behavioral intent and one dependent variable, which is the actual behavior. The questionnaire was electronically administered. A total of 724 questionnaires was collected in 2019. The results indicated that attitudes towards the behavior, subjective norms and perceived behavioral control had significant effects on behavioral intention, which in turn affect the target behavior. Behavioral intention had shown a mediating effect on the relationship between predictors and the response variable. Consequently, decision-makers are required to conduct awareness campaigns in order to promote the involvement in small businesses in the community, raising women’s attitudes towards this type of business via success stories and full government support. Their perceived behavioral control can be enhanced through training to acquire business-related skills.

Management of socio-economic development of tourism enterprises

Svitlana Kryshtanovych — 2020-06-08

To date, the tourism business is developing rapidly and the mountainous territories are not inferior in competition to other tourist territories. For the development of the tourism business, it is necessary to conduct effective management of socio-economic development. The main purpose of the study is to identify and assess the main threats to the socio-economic development of the tourism business in the mountainous territories of Eastern Europe. We have applied the methods of synthesis, analysis, deduction, induction, mathematical methods, methods of expert research. The importance of research on the management of socio-economic development of the mountains in the conditions of increasing the efficiency of the tourism business is proved. Peculiarities of managing the socio-economic development of the mountains in the conditions of increasing the efficiency of the tourism business are considered. As a result of the study, threats were identified that most negatively affect the management system of the socio-economic development of the tourism business in the mountains. The novelty of the study is the formation of coordinate systems in the trust or distrust of the management and executive staff of travel companies in making management decisions.