Open Access Review SciPap-2137

by Wolfgang Dieter Gerstlberger, Gunnar Prause

Abstract: The interaction between the special issue and the sustainability of digital transformation have a special approach to circular economy models, blockchain, Industry 4.0, and legal frameworks. In addition, digital tools are discussed that really help in enhancing eco-efficiency and stakeholder involvement for sustainable business practices, considering challenges regarding scarcity of resources and policy alignment. The articles emphasize the importance of managerial attention, stakeholder collaboration, and interdisciplinary strategies in driving innovation and resilience across sectors. By integrating technological, regulatory, and cultural perspectives, this issue provides actionable insights for organizations to navigate the twin challenges of digitalization and sustainability, fostering a more sustainable and adaptive future.

Keywords: Sustainability, Industry 4.0, Digital Transformation, Circular Economy, Blockchain Technology, Stakeholder Engagement, Eco-Efficiency, Sustainable Business Models, Legal Frameworks, Innovation Management

JEL classification: K32, L26, M11, M14, Q01

Open Access Article SciPap-2126

by Vera Gerasimova

Abstract: This paper examines the transformative potential of integrating Service Design and Blockchain technology within Circular Economy models, aimed at enhancing sustainability and consumer engagement. Through the lens of two in-depth case studies—the Circular Electronics Platform and the Sustainable Food Supply Chain—we illustrate how these innovations can significantly improve transparency, efficiency, and participation in sustainable practices. The first case study investigates into the electronics industry, demonstrating a platform that uses Blockchain to manage the lifecycle of devices, thus promoting recycling and reuse. The second case study explores a Blockchain-based platform that enhances transparency in the food supply chain, empowering consumers with information to make sustainable choices. Our analysis reveals that the synergy between Blockchain technology and Service Design not only addresses environmental challenges but also fosters a deeper connection between consumers and sustainable practices. We discuss the broader implications of these findings, including the potential for scalability, the importance of consumer trust, and the need for interdisciplinary collaboration to further embed sustainability into the fabric of our economies. The paper concludes with recommendations for future research, emphasizing the exploration of standardized frameworks, the role of policy, and the integration of emerging technologies to advance Circular Economy goals. This study contributes to the growing body of literature on sustainable practices by highlighting innovative approaches to integrating technology and design in the pursuit of environmental sustainability.

Keywords: Circular Economy, Blockchain Technology, Sustainable Practices, Service Design, Transparent Supply Chain

JEL classification: L86, O33, Q57

Open Access Article SciPap-2089

by Airi Freimuth

Abstract: This study investigates the intersection of blockchain technology, stakeholder engagement, and business sustainability, focusing on customers and employees. By introducing the concept of stakeholders' blockchain engagement and integrating Interdependence theory's principle of interaction facets, the research highlights how blockchain's engagement antecedents—decentralization, privacy/anonymity, immutability, traceability, and transparency— influence stakeholder engagement. The findings suggest that these antecedents enhance trust, control, and transparency, leading to improved customer loyalty and employee satisfaction. These outcomes contribute to long-term business sustainability by fostering stronger relationships, reducing turnover, and promoting ethical practices.

Keywords: Blockchain Technology, Stakeholder Engagement, Stakeholders' Blockchain Engagement, Sustainable Business Models Interdependence Theory’s Principle Of Interaction

JEL classification: M14, M31, O33, Q56, L86

Open Access Article SciPap-2110

by Thach Nguyen Ngoc

Abstract: Many prior studies on the government-growth nexus have focused on Keynesian (Keynes, 1936) or neoclassical (Lucas, 1990) traditions, while a recent research strand has paid widespread attention to Barro (1990)’s non-linear perspective. Although modern complexity sciences suggest an overall non-linear trend in a complicated, interconnected, globalized world, non-monotonicity is poorly addressed in the applied literature. This work explores both the linear and non-linear effects of government size on economic growth. By employing a hybrid Metropolis-Hastings algorithm within a hierarchical Bayesian approach to a panel of ASEAN countries over 1950-2019, which aids in handling statistical complexities, the results show a negative growth impact of government size. This finding aligns with the neoclassical viewpoint on bureaucratic inefficiencies and the distortionary effects of government intervention in a market economy. Substantial measures are needed to increase public spending efficiency and accountability, focus on productive investments, encourage private sector activities, and implement structural reforms in ASEAN.

Keywords: Monte Carlo Algorithm, Bayesian Hierarchical Approach, Multicollineartity, Reverse Causality, Government-Growth, Negative Linear Effect, Asean

JEL classification: E62, O40

Open Access Article SciPap-2093

by Ekaterina Demiankova

Abstract: This study aims to explore the interaction of entrepreneurs with role models and role models’ narratives (influential individuals, well-known ventures, stories, etc.) in a context of sustainability orientation. While some entrepreneurs are engaged in sustainability-oriented actions, others are not. Keeping in mind that role models can influence entrepreneur’s perceptions, action orientation and values, there is a significant lack of clarity on how role models interact with entrepreneurs in terms of influencing sustainable-oriented business activities. Hence, this paper examines the nature and dynamic of these interactions in the context of entrepreneurial ecosystems by applying systematic inductive qualitative research method and choosing Estonian entrepreneurial ecosystem as a context.

Keywords: Sustainable Entrepreneurship, Entrepreneurial Role Models, Sustainable Entrepreneurial Role Models, Entrepreneurial Ecosystems, Sustainable Entrepreneurial Ecosystems.

JEL classification: L26, O35, Q01, Q56, D91

Open Access Review SciPap-2106

by Ebru Metin

Abstract: This paper examines how the application of Stakeholder Theory and legal design can enhance corporate compliance with regulatory requirements, particularly within Environmental, Social, and Governance (ESG) frameworks. By utilizing visual aids, design patterns, plain language, and human-centered design principles, legal design transforms complex legal information into accessible and actionable information, fostering better understanding and decision-making among stakeholders. This approach not only improves regulatory compliance but also aligns with ethical standards and social responsibilities, which enhances stakeholder trust and engagement. Furthermore, the integration of legal design into corporate compliance strategies supports long-term sustainability and digital transformation, contributing to the creation of value for all stakeholders.

Keywords: Sustainability, Digital Transformation, Stakeholder Theory, Esg, Legal Design, Regulatory Compliance

JEL classification: K32, L21, D21, M14, O32, Q01

Open Access Article SciPap-2071

by Emmanuel Ebo Arthur, Bernard Vanicek

Abstract: This study draws on the axioms of the knowledge production function and open innovation to examine the influence of publications and firm collaborations on the innovation of micro and medium-sized firms in the EU. We utilized CIS 2018 data (Eurostat), employing logistic regression methods and doubly robust treatment estimation techniques for the analysis. Our findings indicate that trade and patent publications positively influence product and market innovation. Furthermore, we ascertained that micro- and medium-sized firms in the European region enhance their innovation performance when they engage in consultations with public and private research institutions and universities rather than purchasing licensing and IPRs from these institutions. We observed evidence suggesting that central government funding positively influences the impact of firm collaboration on market method innovation. We conclude by proposing practical implications for policymakers and managers of micro- and medium-sized firms across countries in the EU.

Keywords: Trade Publications, Patent Publications, Intellectual Property Rights, Marketing Method Innovations, Government Funding

JEL classification: H, H5, O31, O32, O34

Open Access Article SciPap-2105

by Jaime Joel Rodriguez Santiago

Abstract: The "twin transition" concept underscores the interconnectedness of digitalization and sustainability – two major transformative processes shaping our world. While these transitions have often been viewed separately, their interdependence and mutual reinforcement are increasingly recognized. Entrepreneurs are uniquely positioned to drive progress at the intersection of these twin transitions, as innovative actors capable of developing solutions that seamlessly integrate digital technologies and sustainable approaches. Within the entrepreneurial ecosystem domain, two bodies of literature have emerged – one focused on digital entrepreneurship and the other on sustainability-oriented entrepreneurship. Though these streams have developed in parallel, they remain largely siloed. This paper first analyzes the interplay between digital transformation and sustainability transitions, highlighting their synergies and tensions. Building on this foundation, the paper introduces a conceptual framework that outlines key dimensions for cultivating entrepreneurial ecosystems capable of leveraging the opportunities offered by both transitions. This framework provides a roadmap for policymakers, entrepreneurs, and ecosystem actors interested in creating an environment that contributes to a sustainable planet in a digital age.

Keywords: Sustainability, Digital Transformation, Digitalization, Entrepreneurial Ecosystems, Twin Transition, Sustainable Transitions

JEL classification: Q56, L26, M13

Open Access Article SciPap-2085

by Arseni Kotov

Abstract: The imperative need for sustainable development has driven the integration of the circular economy into strategic agendas across diverse industries. The circular economy offers a promising approach to mitigating environmental impacts, reducing costs, and generating alternative revenue streams through circular business model strategies. In energy-intensive sectors, such as the metal industry, where carbon emissions are significant, circular economy practices present pathways for enhancing resource efficiency and achieving energy savings. Despite these benefits and technological feasibility, the adoption of circular economy remains limited. This study applies the attention-based view of the firm to explore the factors shaping managerial attention on circular economy practices within the metal industry in Estonia. Through a thematic analysis of interview-based secondary data, a number of internal and external factors were identified. The findings contribute to the limited empirical research on circular economy adoption in this context, offering insights for researchers and practitioners focused on sustainability transitions. Additionally, this study addresses the limited research on circular economy practices in Estonia, providing perspectives to support further advancement of circular economy adoption in the country. The results offer practical guidance for decision-makers navigating the complexities of implementing the circular economy and highlight the role of managerial attention as a relevant component in strategic decision-making for sustainable development.

Keywords: Circular Economy, Attention-Based View, Circular Business Models, Metal Industry, Estonia

JEL classification: L60, M14, O31, Q01, Q56

Open Access Article SciPap-2092

by Aleksi Kajander, Thomas Hoffmann

Abstract: Open data has been heralded as bringing great benefits to businesses and individuals alike in the EU, enabling the emergence of a data agile Europe and a society empowered by data. However, such arrangements are far from being free of disadvantages, especially for the citizens of smart cities. If the data generated by smart cities is made open almost by default, there is a serious risk of data disenfranchisement for the smart citizens, who may be negatively impacted by the publication of even non-personal smart city data. Consequently, Ostrom’s commons have been considered as a possibility to re-empower smart citizens in regard to their data through self-governance. However, should smart citizens decide to make data available only to select users, they could potentially run into a conflict with EU competition law. Potential sources of conflict include violations of Articles 101 and 102 of the TFEU, through decisions made in the context of the self-governing smart city data commons. Consequently, this paper seeks to identify the potential conflicts between managing non-personal smart city data as a commons and EU competition law.

Keywords: European Union, Smart City, Data, Commons, Ostrom, Competition Law

JEL classification: O34, R38, D86, H83, K21, L86

Open Access Review SciPap-2090

by Turan Azizov

Abstract: This paper explores the intersection of Industry 4.0 (I4.0) and the Circular Economy (CE). The paper's focus is to demonstrate how different factors, such as advanced technologies, can enable the transition of large corporations toward sustainable and circular value chains. The umbrella review has been conducted to identify key organizational enablers and technological innovations driving circularity in such organizations from an academic viewpoint. The paper presents a circular innovation framework in which technological and managerial aspects have been integrated to understand their holistic effect on different value chain steps, from product design to reverse flows. While technological aspects include multiple I4.0 technologies, such as additive manufacturing (AM), blockchain, and big data, and their use cases in the circular value chain, managerial aspects emphasize the role of stakeholders, leadership awareness, and cross-functional collaboration. The study mentions the need for a holistic approach involving all ecosystem actors to achieve a regenerative and sustainable future. This framework not only provides contributions to the academic world but also offers practical implications for large organizations seeking to enhance their circularity. The research concludes with recommendations for future studies to focus on in-depth analysis.

Keywords: Industry 4.0, Value Chain, Circular Economy, Circular Innovation Framework, Umbrella Review

JEL classification: L60, M15, O32, Q01, Q56, D22

Open Access Article SciPap-2091

by Javad Keypour

Abstract: Over the past decade, digitalisation has gained significant attention across various European Union (EU) policy areas, particularly in the energy sector. Along with this, digitalisation can contribute to higher energy security and sustainability of the EU energy systems especially by reducing fossil fuel dependency and distributing energy production through micro-renewable generation. However, digitalisation of electricity markets still deals with regulatory hurdles, especially within data management issues, and potential monopolies. Thus, this paper aims to address these challenges within Estonian market and focusing on prosumers’ contributions to stabilising the digital electricity market through power generation or demand response. Applying document analysis of legal provisions and the multi-level perspective model of transition, the results indicate that while smart meters are pivotal in demand response and surplus electricity exchange, the current regulations create a de facto monopoly favouring Estonian suppliers, undermining prosumers’ interests. Additionally, the concentration of data within a few aggregators can impede competition, while the lack of legal obligations for detailed data access hinders consumers’ ability to engage in intra-day and balancing markets. The study highlights the need for legal provisions to facilitate data exchange and access for aggregators while addressing privacy concerns, thereby ensuring competition thrives. It also recommends establishing obligations for timely sharing of individual consumer consumption data and defining ‘accounting points’ to align with EU regulations. Additionally, clear definitions and provisions for data management, competition law compliance, and consumer rights are crucial. By implementing these recommendations, Estonia can enhance its role as a leader in digitalisation within the EU, promoting a more resilient and sustainable energy system.

Keywords: Sustainability, Digitalisation, Electricity Markets, Smart Grids, Eu Energy Law

JEL classification: D42, K21, L94, O38, Q48, Q55

Open Access Article SciPap-2086

by Sara Majid

Abstract: Digitalisation has become a key process for companies to improve their sustainability, yet a clear overview of the challenges and achievements within European Small and Medium-sized Enterprises (SMEs) regarding digitalisation is still lacking in the literature, making it difficult to identify research gaps or quantify the impact digitalisation has on the European SME market. This paper examines digitalisation as an enabler for European SMEs to improve their environmental sustainability and specifically considers the implementation of eco-efficiency measures such as waste reduction and waste management and thus confirms whether digitalisation can enhance eco-efficiency measures or not within European SMEs. The study is based on a bibliometric analysis followed by a systematic literature review. In particular, it first synthesizes the existing state-of-the-art research and summarizes theoretical frameworks, to explain main themes and gaps in the literature published from the year 2020. Selected articles focusing on European SMEs and digitalisation practices in the context of eco-efficiency are revised in detail. This review identifies common challenges and opportunities associated with digitalisation in the context of European SMEs while offering pathways to address the research gaps.

Keywords: Small And Medium Enterprises (Smes), Environmental Sustainability, Europe, Digitalisation Eco-Efficiency, Waste Reduction, Energy Efficiency

JEL classification: M15, O32, Q56, C80, L26, L86

Open Access Article SciPap-2087

by Merle Küttim, Tarvo Niine, Margit Kull, Arseni Kotov, Wolfgang Dieter Gerstlberger, Jelena Hartšenko, Ulrika Hurt

Abstract: Human-driven changes threaten environmental and economic stability, prompting the formulation of sustainability objectives and innovation efforts to mitigate the negative impacts of economic activities. However, the pace of this transition is often seen as slow, and businesses' commitment to sustainable development is frequently deemed insufficient. In this context, the current study explores the motivational factors that drive businesses to adopt and implement sustainable practices. The findings reveal significant differences in how companies approach social and environmental sustainability and balance it with economic goals. To capture the diversity of motivations behind sustainability initiatives, investments, and related preparatory planning, we propose a model of three types of existing development mindsets in companies, distinguishing between “a spreadsheet mindset”, “a mindset of strategic capabilities” and “a value-driven mindset”. This typology serves as a tool for companies to self-assess their motivations as well as for governments to fine-tune sustainability regulations and support mechanisms accordingly.

Keywords: Motivation, Sustainable Practices, Metal Industry, Wood Industry, Qualitative Studies

JEL classification: L21, M14, O32, Q01, Q56, D22

Open Access Article SciPap-2083

by Şaban-İbrahim Göksal, Maria Claudia Solarte-Vasquez

Abstract: This paper introduces the Blockchain-Based Trustworthy Artificial Intelligence (AI) Supported by Stakeholders-In-The-Loop Model (BCTrustAI.SL) that incorporates sociotechnical components to ensure legal compliance and conformity with the emerging trustworthiness standards for AI systems. BCTrustAI.SL combines features of the Blockchain Framework for Trustworthy AI (BF.TAI), the BlockIoTIntelligence architectural model and the Society-In-The-Loop (SITL) framework, to solve the intangibility problem of the foundational normative notions of robustness, ethicality and lawfulness, and human-centredness, and help them become applicable in practice. The work contributes to the specification and operationalisation of trustworthiness as an AI attribute, highlighting the importance of a precise understanding of its institutional foundations, high order principles and concrete key requirements (data protection, data governance, technical robustness and safety, transparency, accountability, diversity and non-discrimination, and human agency and oversight) deriving from them. On a practical/technical level, BCTrustAI.SL showcases the strengths of combining Blockchain (BC) and AI to address their individual limitations, laying the groundwork for future advancements and practical applications.

Keywords: Trustworthy Ai, Robustness, Ethicality And Lawfulness, Human-Centredness, Blockchain Framework For Trustworthy Ai, Blockiotintelligence Architectural Model, Society-In-The-Loop Framework

JEL classification: M15, M48, O31, O33, O38, K39

Open Access Article SciPap-2055

by Martina Halásková, Renata Halásková, Marek Pomp

Abstract: The R&D sector is one of the important economic phenomena in terms of competitiveness and innovation performance. The aim of the study is to examine the impact of selected R&D indicators on the economic activity of EU countries with emphasis on economic growth and employment in knowledge-intensive service sectors in 2011-2021. The research was carried out using panel data analysis (the fixed effects method) for three models of EU countries (EU27 countries as a whole and EU27 countries divided into two groups according to their innovation performance). The results in the evaluated years confirmed the different (positive/negative) impact of the examined R&D indicators on economic growth and employment in knowledge-intensive service sectors between the different groups of EU countries. In the “Innovation Leaders and Strong Innovators” countries, high-tech exports had the largest positive effect on GDP per capita, and general government expenditures had the largest negative effect. The largest negative effect of government expenditures on tertiary education was found in the case of Employment in knowledge-intensive service sectors. By contrast, in the case of GDP per capita and employment in knowledge-intensive service sectors, the largest negative effect of government expenditures on tertiary education and the positive effect of research and development expenditures were found in the “Moderate Innovators and Emerging Innovators countries”. The findings may be useful for both makers of selected public policies and R&D practitioners in evaluating economic analysis.

Keywords: Economic Growth, Employment, Panel Data Analysis, R&D Indicators, Knowledge-Intensive Service Sectors

JEL classification: C23, O, O11

Open Access Article SciPap-1994

by Nataliia V. Bondarenko, Svitlana A. Vlasiuk, Bohdan S. Huzar, Svitlana A. Ptashnyk, Oleksandr S. Prystеmskyi

Abstract: The article examines the peculiarities of investment inclusion in the credit market of Ukraine and the sources of turbulent processes in the banking ecosystem. The formalized model of the interrelation of endogenous factors of investment lending in the time horizon of multiple signs that reduce the manifestation of destabilization of the banking ecosystem (reduction of liquidity and regulatory capital of banks) and ensure the stability of the inclusion of the credit market is substantiated. A model of the distribution of investment lending risks over time, their assessment and limitation has been developed. For the period of martial law in Ukraine, donors of investment crediting of agriculture and its restoration in the future have been singled out. A multifactor model of investment inclusion of the credit market of Ukraine has been built, which has a set of variables that affect the stable state of the banking ecosystem and ensure the maximum efficiency of the distribution and use of investments in the projects of restoring the economic development of the country.

Keywords: Liquidity, Interest Rates, Banking Ecosystem, Loans, Deposits

JEL classification: E22, E5

Open Access Article SciPap-2007

by Tarlan Ahmadov, Wolfgang Dieter Gerstlberger, Khusbu Rahman

Abstract: In response to global imperatives for sustainability, particularly within the framework of the circular economy (CE), this study examines the adoption of CE practices among manufacturing Small and Medium Enterprises (SMEs) in Estonia. Based on a sample of 78 responses using complete case analysis, this research aims to uncover the configurations of stakeholder pressure (business and social) and collaboration (supply and demand-side) pathways that facilitate successful CE adoption. Drawing on Fuzzy-set Qualitative Comparative Analysis (fsQCA) and Configurational Theory, the study explores how interactions among these factors influence the adoption of CE practices. The empirical investigation, grounded in the Estonian context, reveals three key pathways driving CE adoption: demand-side collaboration, social pressure without direct business pressure, and the combination of business pressure with supply-side collaboration. The findings not only contribute theoretically by advancing configurational approaches in CE research but also offer practical implications for SME managers seeking to adopt CE practice.

Keywords: Small And Medium Enterprises, Circular Economy Practices, Stakeholder Pressure, Collaboration, Fuzzy-Set Qualitative Comparative Analysis

JEL classification: M21, Q01, L25, M1

Open Access Article SciPap-1992

by Mária Liptáková, Veronika Šuliková, Marianna Siničáková, Jana Budová

Abstract: The purpose of the paper is to capture macroeconomic responses of quantitative easing in times of financial and non-financial crisis and to confront the extent of the output responses with the synchronisation of quantitative easing and expansionary fiscal policy. Several methodological approaches have been implemented to achieve this aim. Firstly, bibliometric analysis of scientific papers in the field shows the existence of liaisons between quantitative easing and fiscal policy (government debt) in scientific research. Secondly, cross-correlations and Granger causality tests uncover the effects on GDP, industrial production, inflation, and nominal effective exchange rate in the US, the euro area, and the UK (during the period 2007 - 2022) and Japan (during the period 2000 - 2022). The macroeconomic effects of quantitative easing are the most important in the UK and Japan during the financial crisis and in the US during the non-financial crisis. The findings confirm the idea that quantitative easing has a generally higher causal effect on output (or industrial production) if it is accompanied and supported by fiscal expansion, i.e. after the pandemic (non-financial crisis). The scientific value of the paper is that it fills the gap in current research by demonstrating the macroeconomic effects of the pandemic quantitative easing in Japan and the UK and taking the results in the context of fiscal policy and quantitative easing synchronisation.

Keywords: Granger Causality, Quantitative Easing, Financial Crisis, Non-Financial Crisis, Cross-Correlations

JEL classification: E31, E51, E52, E58, E62

Open Access Article SciPap-1978

by Lucie Herbočková, Vladimír Žítek, Viktorie Klímová

Abstract: City marketing strives to promote a specific city and its parts and emphasises its different characteristics, attractiveness, and competitive advantages. This concept is based on the idea of a high quality of life for its residents and attractive conditions for external target groups. The paper deals with city marketing in Brno, the second-largest city in the Czech Republic. The aim of this paper is to analyse the marketing activities of the city of Brno and to evaluate what image the city has in the eyes of its residents. We conducted a questionnaire survey among 552 residents. In addition to this quantitative approach, we also used qualitative methods, which consisted of interviews with experts from practice. Research has proved that the city is aware of the importance of marketing, but marketing activities have not yet been sufficiently developed. Brno is a city that is considered a good place to live, and the majority of respondents are actively interested in what is happening there. On the other hand, the city's marketing efforts are not visible enough to residents. The research confirms that cities in Central Europe should pay more attention to their marketing. The paper provides policy implications for the implementation of city marketing oriented to residents.

Keywords: Brand, Marketing Strategy, City Marketing, Brno, Residents, Image

JEL classification: M31, P25, R58