EMC REVIEW - ECONOMY AND MARKET COMMUNICATION REVIEW

FRACTALITY OF CROATIAN AND SERBIAN STOCK MARKETS

Mile Bošnjak, Branimir Cvitko Cicvarić, Matija Čemerin — Tue, 23 Jul 2024 00:00:00 +0200

Empirical literature explaining stock markets behaviour develops in a several directions. One strand of literature supports efficient market hypothesis while other strand of literature suggests fractal market hypothesis. Existing literature presents mixed findings on long memory property and hypothesis of stock market fractality. This paper aims to contribute to the debate and examine multifractality and long memory property of returns in Croatian and Serbian capital markets while considering the role of trading columns. Using multifractal Detrended Fluctuation Analysis and daily returns from the beginning of 2010 up to the end of 2021 for CROBEX and BELEX15 empirical finding suggested multifractality and long memory or persistence in CROBEX and BELEX15 returns. Dynamics in trading volumes exhibited multifractality but no long memory property in case of CROBEX as well as in case of BELEX15. Price-volume cross-correlation in case of CROBEX as well as in case of BELEX15 can be described as mean reverting process with no long memory property.

WOMEN’S PREFERENCES TO DIGITALIZATION OF RESTAURANTS’ SERVICES: A FOCAL POINT OF EDUCATIONAL AND FUNCTIONAL BENEFITS OF ELECTRONIC WINE LIST

Pero Labus, Jelena Lukić Nikolić — Tue, 23 Jul 2024 00:00:00 +0200

The aim of this paper is to examine and analyze the perceptions and reactions of women regarding digital services and electronic wine lists in restaurants while making wine ordering decisions. Women make up a significant proportion of population, and that is why is important to comprehend their reactions and impressions of digital services and electronic wine lists in restaurants. The research was conducted with a specially designed questionnaire, involved the participation of 182 women from Croatia and Serbia who used digital services and electronic wine lists in restaurants. Collected answers were processed and analyzed using the Statistical Software for Social Sciences (SPSS) version 21.0. and applying Kolmogorov-Smirnov test, Levene’s test and Kruskal-Wallis H-test. Research results indicated differences among various demographic groups of women in terms of their perceptions of the educational and functional benefits of using electronic wine list in restaurants. Results showed that younger women, those who frequently visit restaurants and those with less knowledge of wine perceived greater benefits of using electronic wine list in restaurants. This paper enriches the relatively sparse literature on women’s preferences to digital services and wine purchasing behavior, providing valuable insights for restaurant managers and decision-makers regarding women’s preferences for electronic wine lists.

COORDINATION AND HARMONIZATION OF CLIENT AND CONSULTANT GOALS IN THE DEVELOPMENT OF INFORMATION SYSTEMS PROJECTS

Boris Todorović, Marija Todorović — Tue, 23 Jul 2024 00:00:00 +0200

The success of the project is the main goal in the management of projects of development and implementation of information systems. However, in the projects carried out by the joint team of the client and the consulting organization, the consultant’s goals are also set, namely the acquisition of the consultant’s knowledge and the growth of the consulting organization’s business. In this research, we examined the impact of inter-organizational coordination on the achievement of client and consultant goals. For this purpose, a model of coordination and harmonization of the goals of the client and the consultant in the development and implementation of the information systems project was created. Based on the model, hypotheses were set and tested based on the views of the designers. The hypotheses confirmed the significant influence of coordination on the alignment of client and consultant goals. The scientific contribution of the work relates to new theoretical knowledge in the field of information systems management theory, coordination theory, agency theory and contracting theory. The practical benefits of the research refer to the benefits that managers of client and consulting organizations have in solving the problems and challenges of the development and implementation of an information systems project when it is carried out by a joint team of designers. The originality of the work refers to the modeling of the coordination relationship in order to achieve the goals of the client and the consultant.

SUSTAINABLE CONSUMPTION OF PRODUCTS AND CONSUMER BEHAVIOUR IN THE REPUBLIC OF SERBIA

Aleksandra Pavićević, Saša Jovanović, Goran Đoković — Tue, 23 Jul 2024 00:00:00 +0200

Having in mind that sustainable consumption has become an important subject in today’s marketing, the paper uses literature review to analyse the theoretical approaches to sustainable consumer behaviour and models that explore the factors that affect the consumer purchasing process. In addition, empirical research was conducted during April and May 2023 with the aim of identifying the factors that impact green purchasing decisions of consumers and influence their awareness of sustainability. The survey has included 171 consumers (N=171) in the Republic of Serbia who rated different statements related to sustainable consumption and purchasing behaviour. The questionary was consisted of 28. variables referring to consumers’ purchasing decisions, post-purchasing behaviour, environmental awareness, and concern. The research has also included an analysis of sustainable consumption in the context of the respondents’ gender. Data processing and presentation of results were performed based on the application of descriptive statistics, t- test and factor analysis.

ANALYSIS OF THE INFLUENCE OF WORKING TIME FLEXIBILITY AND LABOUR LAW STATUS FLEXIBILITY ON THE REDUCTION OF THE UNEMPLOYMENT RATE

Ivona Blažević Dević — Tue, 23 Jul 2024 00:00:00 +0200

With the aim of analyzing the impact of employment in the observed flexible forms of work on the unemployment rate in Austria, Croatia, Italy, Hungary and Slovenia, the author systematically investigated and analyzed the impact of working time flexibility and labour law status flexibility on the unemployment rate. The aim of this paper is to investigate the connection between the unemployment rate and the proportion of people surveyed in the sample who work in the following flexible forms of work: work in shifts, evening work, night work, work on Saturdays, work on Sundays and work from home. The research in the paper was conducted on the EU LFS official data set obtained on the basis of the RPP 35/2020-LFS project approved by the European Commission and Eurostat. The author analyzed a sample of 447,031 respondents in the period from 2008 to 2018. In the research part of the work, a statistically significant model of the linear association of the criterion variable of the unemployment rate with the predictor variable SENSSH and a statistically significant model of the nonlinear association of the criterion variable of the unemployment rate with the predictor variable SENSSH will be generated for each observed EU country. Based on an extensive analysis of data from selected EU member states, results were obtained that indicate an evident reduction in the unemployment rate in 80% of the observed countries through the introduction of flexible forms of employment.

THE INFLUENCE OF THE AMOUNT OF MATERIAL COMPENSATION PER EMPLOYEE ON THE COMPANY’S BUSINESS

Andreja Katolik Kovačević, Željko Požega, Vesna Vučemilović — Tue, 23 Jul 2024 00:00:00 +0200

In order to evaluate the impact of the amount of material compensation per employee on the performance of the company, the authors systematically analysed amount of material compensation per employee, total income, total expenses, net profit margin and return on equity in small, medium and large companies in the five observed counties of the Republic of Croatia. The aim of the paper is to analyse the connection between the amount of material compensation of employees and the performance of the company. The research in the paper was conducted based on data provided by the Financial Agency, a leading Croatian company in the field of providing financial and electronic services. The research was conducted on a sample of 3,914 small, medium and large companies. In the research part of the paper, Spearman’s correlation coefficient which is a non-parametric equivalent of Pearson’s correlation coefficient (product of rank correlation), was used to assess the relationship between the variables of average monthly net wage and salary per employee, total income, total expenses, net profit margin, return on equity. The results indicate that there are significant differences between the size of the company and the observed parameters (average monthly net wages and salaries per employee, total income, total expenses, net profit margin, and return on equity). Based on an extensive analysis of data, obtained results indicate that the given correlation matrix of the connection between the average monthly net wage and salary per employee with the observed parameters for all years shows that all parameters are statistically significantly correlated. This paper provides an insight into the importance of human resources and their proper management on the company business, regardless of their size. Statistical analysis of research data was performed by statistical software MedCalc® Statistical Software and SPSS Statistics for Windows.

ANALYSIS OF THE ATTITUDES OF BOSNIA AND HERZEGOVINA RESIDENTS TOWARDS THE PENSION SYSTEM AND PRIVATE PENSION INSURANCE

Miloš Grujić, Maja Vretenar Cobović — Tue, 23 Jul 2024 00:00:00 +0200

This study aims to analyze the opinions of Bosnia and Herzegovina (BiH) citizens regarding mandatory pension insurance and the possibility of incorporating private insurance in future reforms. The research involves evaluating the satisfaction of BiH residents with the current pension system, understanding their perception of the pension fund’s risks, and identifying their attitudes towards possible pension system reforms, including the potential involvement of private insurance. The study also seeks to highlight any differences in attitudes towards socio-demographic characteristics, such as gender, employment, length of service, professional qualification, and monthly income. A survey of 812 BiH adults (representative but potentially not fully capturing the entire population) explored these aspects. While acknowledging limitations, the study reveals significant differences in attitudes based on demographics. For example, men are more optimistic about future pensions, while employed individuals are more inclined towards reform. The findings suggest general public support for pension system reform and openness to private insurance. However, the study highlights the need to consider these varying attitudes across different population groups when designing future reforms. This research provides the first quantitative data on BiH residents’ views on private insurance reform, contributing to public discourse and informing future policy changes.

DIGITAL TRANSFORMATION IN BOSNIA AND HERZEGOVINA COMPANIES: ANALYSIS OF THE DEGREE OF INTEGRATION AND IMPACT ON BUSINESS

Darijo Jerković, Tanja Gavrić, Jelena Ljubas Ćurak — Tue, 23 Jul 2024 00:00:00 +0200

This study investigates the digital transformation within companies in Bosnia and Herzegovina, aiming to assess the level of digital integration and its impact on business operations across manufacturing, trade, and services sectors. Employing a quantitative analysis of responses from 82 managers or owners, the research focused on attitudes towards digitalization, the adoption of software solutions (ERP, CRM, DMS, WMS, eCommerce), and the impact of digitalization technical aspects. The findings reveal significant disparities in digitalization levels across sectors, reflecting a diverse digital landscape within the Bosnian economy. Despite the initiation of digital transformation efforts, a considerable gap remains between recognizing its importance and its practical implementation. The study underscores the urgent need for continued efforts towards embracing digital transformation to enhance operational efficiency, competitiveness, and adaptability to changing market demands and consumer expectations, highlighting the critical role of digital transformation in securing a competitive edge and ensuring responsiveness to market and consumer dynamics.

THE IMPORTANCE OF FINANCIAL FORENSIC EXPERTISE IN DISPUTES DUE TO THE PIERCING THE CORPORATE VEIL

Jovana Pušac — Tue, 23 Jul 2024 00:00:00 +0200

The subject of this research is the problem of proving the abuse of a company by members of the company. We are talking about a kind of legal phenomenon called “piercing the corporate veil” or “lifting the corporate veil” or, as the legislator calls it, “abuse of legal entity” which, although it was prescribed by law three decades ago, is insufficiently processed in our legal theory, and only exceptionally applied in judicial practice, despite the fact that it is often the only means of protecting creditors against unscrupulous debtors. Namely, members of capital companies (limited liability companies and joint-stock companies), in accordance with the principle of limited liability, bear the risk for the company’s operations up to the level of their stake, so they are often said to be protected by the “veil” of the company’s legal personality. However, if it is proven in the court proceedings that the member abused the company by abusing it for illegal or fraudulent purposes or disposed of the company’s property as if it were his own property in such a way as if the company as a legal entity did not exist, the “veil” comes down and we enter the field of unlimited, joint liability of the member of the company. Then the member is liable to the injured creditors of the company with all of his assets, not just the founding role. Hence, the institute “piercing the corporate veil” or “lifting the corporate veil” represents a necessary corrective to the concept of limited liability, which contributes to raising the awareness of the members of the company, but at the same time strengthens confidence in the legal order. It is reflected in the sanction against the company member for the committed abuse of the company, in the form of unlimited joint and several liability for the obligations of the company, as if it were the obligations of the company member himself. This abuse can only be proven in court proceedings and the decisive evidence tool in these disputes is a forensic expert opinion by a court expert in the economic profession who has theoretical and practical knowledge, but also experience in the field of prevention and detection of financial pathology. True, financial forensics is considered a profession of the new millennium, and it will take time for its institutional formation in our legal system in general, including in the domain of proving abuse of company.

THE CONCEPT OF DIGITAL ENTREPRENEURSHIP AND BRANDING IN CONTEMPORARY BUSINESS

Saša Jovanović, Goran Đoković, Aleksandra Pušara — Tue, 23 Jul 2024 00:00:00 +0200

The study applies a systematic literature review with the aim of providing insight into theoretical approaches to digital entrepreneurship and branding, which represent new and actual concepts that significantly affect the business success of contemporary organisations. When defining the research subject, it was considered that the digital economy is largely conditioned by the emergence of entrepreneurial actions that have produced innovations in the domain of digital technology. Therefore, the study of digital entrepreneurship and branding is of interest for academicians, business practitioners, as well as public and political subjects that support this phenomenon, bearing in mind its positive effects on encouraging employment, social and economic development. The research findings have provided a scientific insight into the conceptualization of digital entrepreneurship and branding, indicating their interrelations with innovations, digital technologies, and creative abilities. The theoretical part of the research was additionally supplemented with a survey that provided an analysis of employees’ views on the application of digital entrepreneurship in the Republic of Serbia. The paper has also demonstrated that doing business in a digital environment and digital innovations give the organisations an access to new resources, and above all to quality and up to date information, services, and online communities, which condition their expansion in the markets. However, this study has also emphasised the lack of scientific research related to research instruments, frameworks and models of digital entrepreneurship that could have practical application.

WAGE STABILITY IN THE REPUBLIC OF SRPSKA IN THE LIGHT OF LONG-TERM MACROECONOMIC STABILITY

Živana Kljajić, Pavle Dakić — Tue, 23 Jul 2024 00:00:00 +0200

The paper analyzes the dynamics of net wages in Republika Srpska to assess the extent to which a certain element of macroeconomic policy can serve as a powerful tool for the financial stabilization of the domestic economy on a long-term basis. For this purpose, data on the number of employees and monthly salaries in RS from 2012 to 2022 were analyzed, specifically the correlation between the number of employees by group and the amount of their net salary. The results show continuous growth in total employment and monthly wages, indicating a positive macroeconomic trend. Pearson’s correlation coefficient of -0.989 and regression analysis confirm a strong negative correlation between the number of employees in RS earning up to 599 BAM and those earning over 2,500 BAM, indicating a shift in the labor force towards higher wages. However, in the long run, faster wage growth than employment and inflation can create pressure on costs and thus destabilize finances. Challenges such as sustainable financial management and staff sustainability remain significant factors that must be addressed. The research ends with recommendations for adapting existing policies to ensure the long-term stability and growth of the Republika Srpska economy. The need for further research is emphasized to deepen the understanding of the effect of government measures in the area of wages and their alignment with global economic trends on the financial stability of the country. It would be interesting to investigate the movement of salaries by the group from the aspect of their sustainability in inflation conditions and in light of potential migrations to countries for a better standard. Additionally, exploring the impact of external economic shocks and regional disparities on wage dynamics would provide a more comprehensive understanding of the financial landscape in Republika Srpska. Future studies could also consider the role of technological advancements and their influence on wage structures and employment patterns, offering valuable insights for policymakers. Moreover, examining the impact of educational and skill development initiatives on wage growth and employment opportunities could help identify strategies to enhance economic resilience.

TAXATION OF DIGITAL SERVICES

Ivana Dražić Lutilsky, Sanja Broz Tominac, Martina Dragija Kostić — Tue, 23 Jul 2024 00:00:00 +0200

Digital services are changing our society and economy, bringing new challenges and problems for tax policy through development of digital economy. Digital companies have new business models, often without a physical presence in different countries, and at the same time they provide services to users whose contribution creates value for these companies that states cannot tax under current rules as traditional services. Also, it is often hard to determine the location of a customer which is important for taxation. There are some important factors influencing taxation of digital service such as significant economic presence from companies and creation of big data by users of different countries. Some countries have introduced their taxes on digital services independently, which means that there is no consensus on the taxation of digital services at the international level. The aim of this paper is to highlight the tax treatment of digital services in the European Union and, consequently, in Croatia. Also, authors will analyze the legal solutions for the taxation of digital services in France, the United Kingdom and the Republic of India, and make proposals for the introduction of taxes on digital services in Croatia.

MODELING OF BREAKING POINT ELEMENTS IN THE PROGRAMMING FUNCTION OF OPTIMAL BUSINESS STRATEGY EXAMPLE OF ERGEL “VUČIJAK” PRNJAVOR

Mirjana Landika, Nina Uremović — Tue, 23 Jul 2024 00:00:00 +0200

The company, as a system, was founded with the objective of transforming input sizes into changed output sizes, where the primary task of output sizes is precisely to meet the appropriate, market-expressed needs, desires, preferences, and expectations of consumers with their unique characteristics. Throughout their existence, business systems must balance the ratio of inputs and outputs in the reproduction process through integrated management efforts, aiming to achieve economy, productivity, and profitability. This balance is essential to ensure that the basic principles are an integral part of their business. Each company has a specific concept regarding its way of working, organization, scope, and structure of activities. However, all business systems express and measure the quality of their business by comparing the ratio of business results and investments in their realization and reproduction. The problem facing many business systems lies in overloading, often economically unjustified, business costs, which prevents adequate market positioning. One crucial factor affecting a company’s competitive advantage is the price of its finished products. The final price of a product is controlled by the company, depending on its desired profit margin, and can be influenced by reducing the price of the finished product at the expense of potential profit. Another way for a company to influence the price of its finished product is through effective cost management. Competitive advantage requires an optimal balance between results and investments in the business system, achieved by maximizing output value through revenues and/or minimizing input value through costs. Every company aims to produce a unit of product at the lowest possible cost or at least not more expensive than the competition. Therefore, company management is expected and required to carefully monitor cost behavior and incorporate this knowledge into its business decisions. Lack of knowledge about cost behavior can lead to serious problems for a company. Understanding cost behavior and flow can enable company management to create a successful business that not only maintains its existing state but also develops and grows. The goals of this paper are to highlight the importance of managing business costs, provide an analytical framework for their rationalization, and include the obtained results in determining the optimal volume of business activity for manufacturing companies on a concrete example. This work is based on scientific knowledge about costs and aims to demonstrate models of different business alternatives and include information about costs in the decision-making process.

COMPETITIVENESS AND BUSINESS EXCELLENCE OF LARGE CROATIAN COMPANIES WITH A SPECIAL FOCUS ON STOCK MARKET VALUE

Lena Sigurnjak — Tue, 23 Jul 2024 00:00:00 +0200

Competitiveness is one of the most significant challenges faced by companies to position themselves in the market and achieve excellence, thereby differentiating themselves from the competition. The Republic of Croatia is a developing country with a majority of small companies in its company structure. In terms of profits and employee numbers, large companies dominate the industry and economy as a whole. This paper aims to provide a theoretical basis and investigate the structure of companies in the Republic of Croatia, with a special focus on large companies listed on the stock exchange. Large companies are the carriers of the economy and have a significant influence on industry and investors who invest in stocks. The paper is based on stock trading data from the Zagreb Stock Exchange, with a special review and analysis of companies listed on the leading market. The results show the price range and business scope of the observed shares. Limitations of the research include a small sample size for the leading stock market and geographical limitations due to Croatia’s small market size. Future research should include an analysis of other companies listed on the stock exchange, as well as a comparison of large companies and stock market operations with countries in Eastern Europe and the European Union. Large companies have a significant impact on global economies, and this study’s findings can contribute to a better understanding and increased participation by stakeholders and potential investors in company operations available on the stock exchange.

CORPORATE SOCIAL RESPONSIBILITY: INSIGHTS INTO THE PERCEPTIONS OF CROATIAN CONSUMERS

Ljerka Sedlan König, Lovro Rado — Tue, 23 Jul 2024 00:00:00 +0200

The European Commission defines corporate social responsibility (CSR) as the responsibility of companies for their impact on society and the environment. Corporate social responsibility is increasingly becoming a key element of the modern business world, with a focus on integrating economic, social and environmental responsibility into corporate strategies. In the context of economic development, the role of CSR in promoting sustainable development is emphasized from the perspective of business ethics and environmental responsibility. Based on a literature review, corporate social responsibility is conceptually defined and elements, areas of activity and types of responsibility are analyzed. This academic article examines the extent to which gender, age, level of education and income level are related to the understanding of the concept of corporate social responsibility among Croatian consumers. This article also examines whether there is a preference for buying from certain retail chains and cosmetics stores, and it places a special emphasis on the activities in the environmental dimension of CSR and their importance among Croatian consumers.
Although the results were obtained using a qualitative method (focus groups) and it is a small sample, it is possible to draw certain conclusions. Gender and the amount of monthly income have no significant influence on the understanding of CSR, while the influence of age and level of education is more present. Those younger than 45 and those with a higher level of education have a better understanding of the concept of CSR. The analysis of the records from the focus groups did not reveal that the amount of monthly income, the age of the participants or the level of understanding of CSR significantly influenced the choice of cosmetics and consumer goods stores. Quality, price and recommendation were found to play a much greater role in customers’ purchasing decisions. Participants with lower monthly income mostly chose BIPA, while those with higher income most frequently chose DM and Müller . Interestingly, all participants older than 45 years preferred Müller . Participants emphasized that both cosmetics chains have recycling programs, participate in humanitarian actions and are committed to respecting human rights and the right of employees to fair wages and working conditions. Participants who were familiar with the principles of CSR mostly chose Lidl/Kaufland, and all of those who showed the highest understanding of the concept of CSR chose these two retail chains. It was also found that participants in these focus groups did not generally rate socially responsible initiatives in the environmental dimension as more important than initiatives at an economic and social level. This research is subject to certain limitations. As it is not possible to make generalizations based on qualitative research, the findings need to be further explored, verified and complemented by some quantitative methods.

THE IMPACT OF DIGITAL TECHNOLOGIES AND TOOLS ON BUSINESS COMMUNICATION IN CONTEMPORARY BUSINESS ENVIRONMENT

Jelena Lukić Nikolić — Tue, 23 Jul 2024 00:00:00 +0200

This paper examines the impact of digital technologies and tools on business communication in the contemporary business environment through the prism of new communication channels. Every technological breakthrough throughout history has altered the way people communicate, beginning with the discovery of the printing press, telegraph, radio, and television. In the fifth industrial revolution and contemporary environment, business communication becomes increasingly focused on current digital technologies and tools. Traditional communication, which was inherently slow, is being phased out in favor of interactive and quick communication. Communication through modern digital technologies and tools has many benefits, but it also has some drawbacks, including the possibility of misunderstandings and conflict. This paper discusses the digital age’s key communication channels, including smart mobile phones, short messages (sms), multimedia messages (mms), voice mail, Viber, WhatsApp, iMessage, Skype, Google Hangouts, Slack, teleconferences, video conferences, e-mail, intranet, organizational social and professional networks, and various business communication applications. Besides from their essential characteristics and advantages, this paper highlights key limitations that should be considered in order to eliminate or lessen misunderstandings and conflict situations.

ETHICAL COMMUNICATION ON SOCIAL NETWORKS

Anita Kulaš Mirosavljević, Branka Martić, Ines Rendulić — Tue, 23 Jul 2024 00:00:00 +0200

Communication is a key segment in social and business life. Through new communication channels, which have emerged as the main ones in recent years, social media enable much faster and simpler communication. By following the latest trends and using social media for communication, companies strive to acquire new customers, retain existing customers, survive in the market and compete.
Using social networks to create and maintain private and business relationships also requires a certain, acceptable type of behavior. What should be paid attention to are certain limits, ie limitations and responsibilities in the application of this type of public communication. In this case, we are talking about ethics, which represent generally accepted rules that should be applied in relationships. Both in the traditional business world and in the online business world, there are certain rules that users should follow if they want to achieve and maintain healthy business relationships. For users of social networks, it is important to develop an awareness of the responsibility of what is said and written on social networks. Therefore, the application of basic ethical and communication standards, which at the same time represent universal standards, represent a key component in relationships between people.
The aim of the paper is to investigate how much employees use social networks during their free time and during working hours, what their behavior is on social networks and whether they think their behavior is ethical or unethical. During the research, people who are employed in the Republic of Croatia were examined.
The hypothesis is: Employees often use social networks, most often for private purposes, during working hours.
The methodology in this paper uses descriptive statistics that will provide information about the variables in a particular data set and highlight the relationships between the variables in the sample.
The results of the research will be shown with the help of a Likert scale.
The research concluded that, although social networks are widely represented in people’s lives, their use in the business world has been reduced to a minimal level. Employees follow the instructions and rules regarding the use of social networks during working hours. Acting in accordance with company rules represents behavior in accordance with ethical norms. In the end, it can be said that it is up to individuals how they will use the opportunities offered by social networks. With proper control of behavior on social networks, respect for privacy and rules of conduct will encourage additional growth and development of social networks.

TRANSFORMATIONAL AI (TRAI): REVOLUTIONIZING THE MODERN BUSINESS WORLD

Igor Razbornik, Sanja Todosijević — Tue, 23 Jul 2024 00:00:00 +0200

Transformational Artificial Intelligence (TRAI), a subset of Transformative AI (TAI), empowers individuals to design and implement sophisticated data transformation workflows. TRAI systems enable new ways of working and learning by progressively manipulating data through a series of operations. This article explores TRAI’s potential to revolutionise workflows, information consumption, and decision-making, offering practical guidance on leveraging existing tools to implement TRAI today. It also discusses the democratisation of workflows, the power of AI triggers, and the skills needed to excel in the TRAI landscape, emphasising that TRAI is not just for tech experts but anyone willing to learn and experiment. This article provides practical guidance on leveraging existing tools to implement TRAI today. It discusses the democratisation of workflows, the power of AI triggers, and the essential skills needed to excel in the TRAI landscape. Ultimately, TRAI is not just for tech experts but for anyone willing to learn and experiment, paving the way for more inclusive and effective AI solutions.

AGE-RELATED DIFFERENCES IN INSTAGRAM USAGE AND LUXURY BRAND PERCEPTION: A STUDY IN CROATIA

Valentina Pirić, Mirna Koričan Lajtman, Maja Martinović — Tue, 23 Jul 2024 00:00:00 +0200

The study investigates Instagram usage frequency, reasons among various age groups, and potential age-related differences in customers’ perceptions of luxury brands and purchase intentions. Additionally, literature on Instagram’s influence on customer perception, brand image, luxury brand perception, and generational trends in digital consumer behavior was analyzed. Conducted in Croatia, the study utilized a non-random convenience sample of 192 respondents. The questionnaire comprised 32 questions split into two sections: the first gathered demographic data to profile the sample, while the second assessed social media use and participants’ perceptions of the influence of Instagram marketing activities on brand image and buying intentions. Descriptive and multivariate analyses were conducted using IBM SPSS software version 22 to evaluate the hypotheses. The study found a higher participation of women than men, with an average age of 28, which aligns with previous research in the field. Significant disparities in media utilization were observed between younger (average age 22.34) and older (average age 34.75) participants. Instagram is primarily used by women and younger age groups, with 95% of younger participants accessing it daily. The study confirmed that younger users are more interested in friends’ activities, sharing their own activities, and viewing appealing images, while older users follow brands/celebrities and seek personal content, which supports the hypothesis that reasons for using Instagram vary by age. Younger participants believe Instagram significantly influences luxury brand image and their buying intentions. Both age groups reported that a positive brand image influences purchase intent similarly, partially supporting the hypothesis that age affects luxury brand perception and buying intention on Instagram. The study highlights the importance of age diversity in creating effective marketing strategies on Instagram, influencing consumer behavior and purchase decisions, and enhancing understanding of Instagram’s influence on luxury brand perceptions and purchasing behavior across various generations in Croatia.

INFLUENCE OF INFLATION ON INVESTMENTS IN THE REPUBLIC OF SRPSKA

Boris Spasojević, Aleksandar Đukić — Tue, 23 Jul 2024 00:00:00 +0200

The aim of this research is to analyze the impact of the inflation rate on foreign direct investments (FDI) and domestic investments in the Republic of Srpska and to determine which of these investments is more affected by inflation. The methods used in the research include quantitative data analysis through regression models, utilizing time series data on inflation rates, foreign direct investments, and domestic investments from 2000 to 2023. Data were collected from official sources such as the Statistical Office of the Republic of Srpska and the Central Bank of Bosnia and Herzegovina. The main finding of the research indicates that inflation has a statistically significant negative impact on foreign direct investments, while the impact on domestic investments is less pronounced. This difference may be due to the fact that foreign investors are more sensitive to macroeconomic factors such as inflation, whereas domestic investors may be more influenced by local economic conditions and the availability of capital. The research concludes that stable inflation policies can play a crucial role in attracting foreign investments, while additional factors such as improving the business environment and access to financing are necessary to stimulate domestic investments. Research on the impact of inflation on foreign direct investments (FDI) and domestic investments in the Republic of Srpska for the period from 2019 to 2023 showed unexpected results that disproved the first set of hypotheses and proved the third. However, the results of the regression analysis showed that the positive coefficient for FDI (0.021) suggests that an increase in FDI can slightly increase inflation, while the coefficient for domestic investment (0.020) also indicates a positive impact of inflation on domestic investment. Standardized coefficients (Beta) show that domestic investments (0.557) have a greater relative impact on inflation compared to FDI (0.428),These findings can help economic policymakers in the Republic of Srpska formulate strategies that balance inflation and encourage both types of investments, thereby promoting economic growth and development in the region.

FREE ECONOMIC ZONES IN FUNCTION OF ECONOMIC DEVELOPMENT AND STRENGTHENING COMPETITIVENESS OF BUSINESS COMPANIES

Željko Đurić, Radovan Višković — Tue, 23 Jul 2024 00:00:00 +0200

Free economic zones represent a simple but strategic link between the economies of countries in transition and technologically and technically equipped companies interested in strategic investing and investments. Following global trends, empirical experiences and noting the interdependence of the potential of raw materials as the basis and the resource on the global market, it is necessary to prove the hypothesis of “interconnection between techno-technological production plants and business progress within free economic zones with the aim of strengthening supply chains”. In the paper, we have put forward another hypothesis: “business in free economic zones brings greater results and measurable parameters compared to business activities in business zones of local communities”. In order to understand the set hypotheses, our work included extensive research and experience, where we used inductive and deductive methods, methods of analysis and synthesis, methods of abstraction and concretization, methods of generalization and specialization, methods of classification, methods of description, methods of compilation, as well as the comparative method. Experiences, economic indicators of business activities in free economic zones were the source for data processing, with the aim of comparative analysis of parameters and indicators of business results that were key in the management’s decision making to move companies’ production capacities, transfer technology, training and educate the staff necessary for work in free economic zones. In the conclusion, we clearly link global, regional and local trends and experiences with recommendations to define the basic development directions in a consistent and integral way through a multidimensional approach and presentation of the platform for creation of strategic documents as necessary and sufficient assumptions for the launch of free economic zones and thier realization in the coming years. In this Paper, we have proven that by developing free economic zones, in relation to business zones of local communities, we establish new strategic partnerships with international companies, investors with clearly created value chains within strategic, tactical level of connection and introduction of new technologies beside adding new values in production capacity of free economic zones.

GLOBAL TRENDS IN ROAD TRANSPORT MANAGEMENT AND THEIR IMPACT ON SUPPLY CHAINS

Željko Đurić, Radovan Višković — Tue, 23 Jul 2024 00:00:00 +0200

As the world grapples with the challenges of a rapidly changing global landscape, the road transport industry is facing unprecedented pressures. With the increasing emphasis on sustainability, green agenda, and carbon neutrality by 2050, the industry is forced to adapt and innovate. This study aims to investigate the current state of the road transport industry, identify global trends, and analyze their impact on supply chains. The research is based on a comprehensive review of existing literature, as well as data from reputable sources such as the International Road Transport Union (IRU), ASTIC, and CEVA Logistics. The study employs a mixed-method approach, combining inductive and deductive methods, analysis and synthesis, abstraction and concretization, generalization and specialization, classification, description, compilation, and comparative methods. The research findings suggest that the road transport industry is facing significant challenges, including a shortage of drivers, lack of investment in infrastructure, and environmental concerns. The IRU’s Global Driver Shortage Survey 2023 highlights the severity of the issue, with over 4.7 million drivers needed to meet global demand. Furthermore, the lack of investment in infrastructure is a major concern, with many roads and highways in need of repair or upgrade. Despite these challenges, the study also highlights opportunities for innovation and growth, particularly in areas such as electric and autonomous vehicles, alternative fuels, and logistics optimization. The IRU’s report on “Green Logistics” emphasizes the importance of sustainable practices in the logistics industry, highlighting opportunities for reduction of greenhouse gas emissions through efficient route planning and mode selection. The study demonstrates that the road transport industry plays a critical role in global supply chains, connecting producers to consumers across the globe. As such, it is essential to address the challenges facing the industry and work towards a sustainable future. The results of this study provide valuable insights for policymakers, industry stakeholders, and researchers seeking to understand the complexities of the road transport sector. In conclusion, this study contributes to the ongoing debate on the future of road transport by providing a comprehensive analysis of global trends and their impact on supply chains. The findings highlight the need for innovative solutions and investment in infrastructure to ensure a sustainable future for the industry. By understanding the challenges and opportunities facing the road transport sector, we can work towards a more sustainable and efficient transportation system that benefits both individuals and society as a whole.

THE ECONOMY OF THE WESTERN BALKANS IN NEOLIBERAL GLOBALIZATION

Ostoja Barašin — Tue, 23 Jul 2024 00:00:00 +0200

The goal of research in this paper is the world we live in, i.e. the world of neoliberal globalization, a world of dynamic, unpredictable and uncertain changes that affect all peoples and their societies, their economies, politics and cultures. Simultaneously, it is also a world of de-sovereignization of states and de-nationalization of societies, especially those in transition. The method of analysis and synthesis, as well as the historical-comparative method were used in this paper. Comprehensive research and analysis of collected data unequivocally confirms that there are numerous globalization factors that lead to the de-sovereignization of modern states and the denationalization of their societies, and some of the more significant ones will be specifically discussed in this paper. From the beginning of the 1970s until today, a noticeable global shift towards neoliberalism has been emphasized in political and economic processes, but also in opinion. Deregulation, privatization and withdrawal of the state from many spheres of social support represent a general characteristic of social reality. The largest number of countries created by the collapse of the Soviet Union and the Warsaw Pact, the collapse of the SFRY, as well as a number of old social democracies, i.e. welfare states such as Sweden and New Zealand, partly voluntarily, and mostly under pressure, accepted some versions of neoliberal theory and adapted them with their policies and practices. Neoliberalism thus became the dominant ideology that pervades the public policy of many governments in developed and developing countries. This ideology is based on the postulate that the reduction of state intervention in economic and social activities and the deregulation of labor and financial markets, as well as trade and investment, have unleashed the enormous potential of capitalism to create an era of unprecedented social welfare. Looking at the entirety of the neoliberal experience, it can be concluded that the application of neoliberal policies has led to a significant increase in social inequalities both in the countries where such policies are applied and among countries in the rest of the world. With the ideology of neoliberalism, which does not recognize society and sociability and which leaves the future to the whims of the market and unbridled economic growth, the chances for the future are reduced to a minimum. The history of human development confirms that we did not survive as isolated and selfish individuals grouped into abstract groups, but on the contrary as members of culturally diverse communities connected by common values, beliefs and a sense of belonging. An individual becomes truly human only through socialization, and this never happens only at the family level. The idea that there is no society is not sustainable and is not the basis for a sound economic and public policy. The previous analysis showed that neoliberalism, as an ideology and as an economic system, is in a deep crisis with an uncertain future. This raises the dilemma as to what the future of the economy of the Western Balkans will be, as it is ideologically and structurally based on the values of illiberalism and its global institutions.

MANAGERIAL AND INDIVIDUAL IMPACT OF APPRAISAL ON EMPLOYEES’ PERFORMANCE IN LOCAL GOVERNMENT UNITS IN BOSNIA AND HERZEGOVINA

Đevad Šašić, Merima Tanović — Tue, 23 Jul 2024 00:00:00 +0200

Establishing an evaluation system can be considered a key step towards the institutional development of the civil service. The valorization of employees work is equally important in the public sector as in the real sector. The first rules on evaluation that were adopted by agencies for the civil service/administration in Bosnia and Herzegovina were based on the traditional European assessment model, which is based on a larger number of standardized evaluation criteria. The application of this model showed its weaknesses in practice due to the difficulty of objectively determining the performance evaluation, so a few years later, all levels of state structures in BiH began the transition to modern evaluation models that are based on work goals as the main criterion for performance appraisal. In this research paper, in the context of human resource management in public administration, the measurement of employee performance will be described with procedural, substantive problems and errors that lead to serious and long-term consequences for organizational development, general management culture and individual performance of employees on the basis of examination of units local governments in Bosnia and Herzegovina. This paper also includes an analysis of the results of the research conducted in 12 (twelve) local self-government units in Bosnia and Herzegovina, through a presentation of the typical impact of evaluation on the work results, commitment and employee performance in the public sector.