SciPap, Volume 26, Issue 2 (2018)

Open Access Article SciPap-935
The Credibility of Fiscal Policy and Cost of Public Debt
by Haryo Kuncoro

Abstract: This paper investigates the potential relationship between the credibility of fiscal policy and the cost of public debt. We analyze how a key component of fiscal governance, the ability of governments to commit the planned budget, affects the government borrowing cost. To test the hypothesis, we take the case in Indonesia over the period 2001-2013. Based on the quarterly data analysis, we found that the noncredible deficit rule tends to induce the interest rate. In contrast, the credible debt rule policy significantly reduces the borrowing cost for about 28 basis points. More interestingly, to reduce the interest cost burden of government debt, strengthening commitment to the fiscal rules is as effective as decreasing the size of debt. Those findings suggest that the credibility of fiscal policy matters to restore the fiscal burden in order to maintain fiscal sustainability in the long-run. Accordingly, improving the credibility of fiscal policy should be an integral part of the public sector reformation program in the country.
Keywords: Deficit Rule, Debt Rule, Credibility Of Fiscal Policy, Implicit Interest Rate, Fiscal Sustainability
JEL classification: E43, G12, H63

Open Access Article SciPap-933
What Determines the Fiscal Consolidation Process: The Analysis Within European Member Countries
by Lucia Mihóková, Lucia Sláviková, Oľga Kmeťová

Abstract: The fiscal consolidation process is determined by many factors of economic, monetary, political or fiscal environment. The paper is focused on analysis and assessment of selected determinants on the attributes of fiscal consolidation process within European Union member countries. The purpose of this paper is to study relations between macroeconomic, fiscal, political and other determinants using methods of quantitative economy. Analysis is focused on the duration, length and intensity of fiscal consolidation episodes and the quantification of their impact polarity. The paper identifies statistically significant determinants that can affect the success of a fiscal consolidation. The research results of performed panel regression analysis within time period 1995-2016 within EU member countries pointed out that macroeconomic and fiscal conditions are significant for the whole consolidation process and to all its attributes. The paper was developed within the project VEGA 1/0967/15.
Keywords: Duration, Length And Intensity Of Consolidation, Fiscal Consolidation Episodes, Determinants Of Consolidation, Panel Regression Model, EU Member Countries
JEL classification: H30, H81, H87

Open Access Article SciPap-927
Impact of Gender Segregation of Business University Graduates on Their Position on the Labour Market
by Markéta Šnýdrová, Lucie Vnoučková, Ivana Šnýdrová

Abstract: This article deals with the issue of the influence of the gender segregation of graduates on finding employment on the example of the University of Economics and Management. The aim of this article is to evaluate the influence of the higher education on the role of gender within selected factors influencing employment of graduates on the labour market on the example of the University of Economics and Management. The areas of the influence of employability of graduates have been analysed using the characteristics of a position level, persistence in a studied branch, perception of a financial reward as adequate and holding a position, for which the higher education is required. The theoretical frame of the article is made of a literary search based on an analysis of scientific articles and publications dealing with the influence of gender on employment of graduates and factors influencing it. The primary research was conducted as a questionnaire survey among graduates of the University of Economics and Management from the previous 5 years. We received back 206 questionnaires from the total of 805 graduates. The results show that, although the number of higher educated women is increasing, their position on the labour market is still different compared to men. The higher education does not lead to the elimination of the gender differences on the labour market and within the working environment. These differences show in a type of employment, working positions and also wages.
Keywords: Gender, Labour Market, Graduate, Employability, Job Position
JEL classification: M54, I29, J21

Open Access Article SciPap-941
Public Research and Development in European Union Countries - Evaluation Based on Selected Indicators
by Martina Halásková, Pavel Bednář

Abstract: Research, development and innovation hold a prominent position in national economies and the public sector. The aim of the paper is to evaluate the role of public research in EU countries with focus on selected indicators of research and development (R&D). The area in focus is total R&D expenditures and public R&D expenditures in years 2010 and 2015. The author also strives to analyze other R&D indicators in EU countries, pointing out the similarities and differences in the particular countries. The analysis concentrates on not only the selected indicators of public R&D, but also a comprehensive evaluation and role of public research in EU countries. EU countries are evaluated on the basis of indicators of public R&D by means of factor analysis, cluster analysis and box-plot, divided into four clusters depending on internal similarity in 2015. The most marked differences were observed in indicators of public research (R&D public expenditures as % of total R&D expenditures, researchers in public sector as % of total researchers, number of publications per 1000 researchers in the public sector, number of citable publications per 1000 researchers in the public sector) in the first cluster in comparison to the third cluster. In case of the indicator H-index (per 1000 researchers in the public sector) the most marked differences were observed in most countries of the second cluster in comparison to countries of the fourth cluster.
Keywords: EU Countries, Research And Development, Public R&D, R&D Public Expenditure, Indicators Of R&D
JEL classification: O32, H54, H76

Open Access Article SciPap-936
SWOT Analysis Evaluations on the Basis of Uncertainty - Case Study
by Jiří Křupka, Kateřina Kantorová, Meaza B. Haile

Abstract: Choosing effective strategy is the main factor in running a successful enterprise, organization. The first step is to understand the organization with respect to its environment, which could be done using SWOT analysis. The main factor in performing SWOT analysis is selecting influential criteria. These criteria could be a long list and difficult to analyse depending on the organization. One way to analyse these criteria is to divide them in sub groups under strength, weakness, opportunity and threat. What is proposed in this paper is a value chain with different primary activities based on the organization, and to evaluate the each primary activity using SWOT analysis and multi criteria decision making (MCDM) to find the best strategy. The aim is to evaluate each process and the value, it is adding to the final outcome and the overall success of the organization. A tile company was analysed by dividing the processes in the company as product, promotion and customer relation using Choquet integral, Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) and fuzzy TOPSIS based on opinions of experts.
Keywords: Topsis, Fuzzy Integral, Quantitative Evaluation, Swot Analysis, Value Chain, Weighted Sum Average
JEL classification: C02, C18, C38, C4, M10

Open Access Article SciPap-932
Selected Efficiency Factors of Agricultural SME in the Czech Republic
by Lukáš Moravec, Gabriela Kukalová, Jitka Svobodová

Abstract: This paper identifies the influence of selected groups of factors on the efficiency of the agricultural sector represented by the Czech Small and Medium Entrepreneurs (SME). The database Amadeus was used as the primary data source. The group of data gained from the database Amadeus covers the period of years between 2005 and 2014. The group of analyzed subjects consists of more than 2000 SME agricultural companies located in the Czech Republic. The econometric models were used for identification of relationships between groups of potentially relevant factors and the efficiency. The analyzed efficiency level is represented in the econometric models by the variables EBIT and EBITDA.
Keywords: Sme, Efficiency, Profit, Evaluation, Agriculture, Farm, Econometric Models
JEL classification: D22, H25, M41

Open Access Article SciPap-942
Protection of the Reputation of a Legal Entity and Freedom of the Expression in the Context of "Media"
by Tomáš Gongol, Michael Münster

Abstract: The article focuses on the concept of reputation (good reputation) of legal persons in respect to the legislation within civil law and media law. Interpretation of the legislation is complemented by a comprehensive analysis of the judicial case-law in this area. Attention is focused on the criteria applied for the purpose of detecting unauthorized interference to the reputation of a legal person. In particular, on distinguishing between allegations of factual statement nature and value judgements or permissible criticism.
Keywords: Reputation Of Legal Person, Freedom Of Expression, Permissible Criticism, Publication Of A Reply, Publication Of Subsequent Statement
JEL classification: K42, K22

Open Access Article SciPap-934
FDI and Regional Income Disparity in the Czech Republic
by Jagannath Mallick, Pavel Zdražil

Abstract: The aim of this paper is to evaluate the impact of FDI along with domestic physical investment and human capital on the regional income, and their role in the regional income convergence within the Czech economy over the periods from 1998-99 to 2013-14. The paper considers 14 regions of the Czech Republic and uses panel fixed effect regression and dynamic panel growth framework for the empirical analysis. The result finds that the role of physical capital formation and FDI along with the human capital are crucial for the regional disparity in income in the Czech Republic. There is also evidence of the convergence of per capita income at the speed of 7.8 per cent among the regions by conditioning physical investment and human capital along with FDI. This paper suggests that regional disparity in income can be reduced by the equitable allocation of investment and FDI, and equal development of human capital.
Keywords: Investment, Convergence, Regional Growth, Panel Data Methods
JEL classification: C23, E22, R11

Open Access Article SciPap-940
The Measurement Methods of Customer Value and Its Use in Small and Medium Sized Czech Enterprises
by Adéla Chromčáková, Martin Klepek, Halina Starzyczná

Abstract: This article aims to present the research results of customers’ value measurement methods and their use in companies’ marketing management processes through the CRM databases. The starting point is a theoretical review on the issue researched. The primary research included 736 respondents from Czech small and medium sized enterprises. Logistic regression has been used to test the hypothesis about the relationship of the field of business and the most frequented methods of measurement customers’ value. The greatest part of respondents use the customers’ value in the process of price determination for individual customers, to maintain customer loyalty and for product value differentiation. Mostly, SMEs evaluated the customers according to the long-term relationship, then by sale value and the profitability of customers. Data has been divided according to the field of business. Subsequently, research findings have shown that all fields use the customers’ value in the process of price determination for individual customers. The long-term relationship has been mentioned frequently as a method for measuring customers’ value in production and services enterprises, whereas retail enterprises preferred the long-term relationship and sale value. The results of approach to measure customer value have also been compared with the previous research from 2005 showing interesting differences.
Keywords: Logistic Regression, Smes, CRM, Customer Value, Value Measurement
JEL classification: M3

Open Access Article SciPap-937
Measuring the Size of the Technology Gap at a Level of Czech Regions
by Sylvie Kotíková

Abstract: The technology gap is one of key determinants of spillovers. This paper aims to quantify the size of the technology gap between foreign direct investments, which received investment incentives and business environment in six regions of the Czech Republic in time series of 2002-2014. The development of regional technology gap was determined by using the Shift-share analysis method - decomposition of the region's technological level into productivity, employment, and a combination of both of the effects. The main data source was the statistics issued decisions of investment incentives published by the agency CzechInvest; annual reports of foreign companies; data of the Czech Statistical Office and the OECD. The established indicator tracks the difference between the technological advancement of foreign firms and a regional business environment. The higher the value of this indicator than in other regions is, the higher the potential for technological growth the region has than regions compared. The magnitude of the value is given by the technological level of foreign companies and their share in regional employment. The best position takes the Pilsen region, which has the highest potential for spillovers in terms of the technology gap. On the contrary, the worst position has the Carlsbad region.
Keywords: Foreign Direct Investment, Foreign Presence, Investment Incentives, Productivity, Technology Gap
JEL classification: O33, F23

Open Access Article SciPap-944
New Trends in the Recruitment of Employeess in Czech ICT Organisations
by Adéla Fajčíková, Hana Urbancová, Martina Fejfarová

Abstract: All organisations are facing the challenge of attracting and retaining employees whose skills and abilities are in line with the organisation’s needs. The plan of recruitment of human resources should be flexible, differentiate between individual categories of employees and should follow new trends in this area. The main objective of this paper is to identify the methods for the recruitment and selection of employees in Czech organisations and evaluate the differences in employee recruitment in large information and communication technology organisations (ICT) compared to other organisations active in the tertiary sector of the economy. The data was obtained through quantitative (n = 288) and qualitative (n = 34) research. Results of the survey show that organisations are starting to utilise a broader scale of methods to attract employees, in particular specialists, in ICT. Most of the organisations active in this area are struggling with the low number of job candidates on the labour market; to overcome this obstacle, they are developing and training their current staff (61.8%), changing their recruitment strategy and increasing initial salaries (50%). The research also identified 5 factors that define groups of organisations based on the methods they use to acquire new employees.
Keywords: Human Resource Management, Czech Republic, Differentiation Of Employees, Information And Communication Technology, Recruitment And Selection Methods
JEL classification: M15, O15, M12

Open Access Article SciPap-945
Representativeness Heuristics: A Literature Review of Its Impacts on the Quality of Decision-Making
by Jan Bílek, Juraj Nedoma, Michal Jirásek

Abstract: The representativeness heuristic is one of the cognitive shortcuts that simplify human decision-making. The simplicity provided by the heuristic brings advantages but also risks arising from a lack of information, leading to cognitive errors and biases. The aim of this study is to identify and evaluate the impact of biases connected to the representativeness heuristic on the quality of economic decision-making. For that purpose, a systematic literature review was conducted, and seventeen empirical studies were analyzed. The review found that the effect of the biases is indeed significant in the real world, namely in the area of business. Most of the studies analyzed the representativeness heuristics in investment and did not prove any strictly negative impact of heuristic decision-making. In fact, under certain circumstances, representativeness heuristics can be recommended. In addition to investment, we covered studies focusing on management, auditing, insurance and consulting. Although these studies show the possible impact of the heuristic on the quality of decision making, it is impossible to form general conclusions due to the lack of research in these fields. Alongside investment, further research into the use of the representativeness heuristics in various settings is recommended as well as research into the possible ways to reduce or even eliminate the negative side effects and biases of the heuristics.
Keywords: Management, Representativeness Heuristics, Systematic Review, Bias, Decision-Making
JEL classification: L20, D21, D70

Open Access Article SciPap-930
Status of Global Economic Powers (BRICS, EU28, Japan, USA): The Case for Competitiveness and Factors Influencing Progress or Decline
by Michaela Staníčková, Lenka Fojtíková

Abstract: Many of the competitiveness challenges we see today stem from the aftermath of the financial crisis. Today, productivity and growth are not picking up in advanced economies, and the consequences of low and even negative productivity growth in many emerging economies are now evident. Productivity of major world economies can be seen as the source of national performance and subsequent international competitiveness. The paper deals with an application of Data Envelopment Analysis (DEA) method to multi-criteria performance evaluation of countries considered as global economic powers. The aim of the paper is to analyse development of and measure level of productive potential achieved by BRICS countries, the European Union (EU) and its members, Japan and the United States of America (USA) with the help of specialised DEA approach – the Output- Oriented Malmquist Productivity Index in reference period 2007-2016. Using of DEA is convenient due to set of different factors determining productivity, such as Global Competitiveness Index (GCI). Results confirm the constantly strong position of the post-war triad (in order of the EU, USA, and Japan) compared to rapidly developing BRICS countries. It is also evident the growing tendency and corresponding comparison of BRICS performance with traditional economic powers, i.e. triad.
Keywords: Efficiency, Productivity, Competitiveness, Dea, Economic Power, Global Competitiveness Index, Malmquist Productivity Index
JEL classification: C61, C67, E60, F02, F62, O47, O11

Open Access Article SciPap-931
Optimization of the Automotive Service Centre Network for New Entrans Into Czech and Slovak Markets
by Jan Pekárek, David Schüller

Abstract: The automotive sector is the main driver of industry in both the Slovak and Czech economies. In recent years, rapid and substantive changes have been seen in the development of automotive distribution channels in the Slovak and Czech Republics and this trend can be expected in the future as well. The purpose of this paper is to present a new approach to determine the optimal location of service centres for customers of the automotive industry. The method proposed maximizes a weighted customer utility in terms of density of car-owning residents and the travel distance they need to overcome to reach the nearest station. The application of the proposed method allows automotive companies which are planning to enter new markets to create an optimal distribution network of service centres for customers in the Slovak and Czech Republics. The optimization model approximates the correct number of service centres according to evidence from other countries in the European Union and calculates their optimal spatial placing based on various criteria.
Keywords: Automotive Industry, Optimization, New Entrants Into Markets, Distribution Network, Service Centres Location
JEL classification: L19, L10, C61

Open Access Article SciPap-928
Remuneration of Employee Inventions at Czech Universities
by Pavel Svačina, Barbora Rýdlová, Martin Boháček

Abstract: Universities have recently been facing pressure to increase the share of commercialized R&D results, as well as to manage their intellectual property rights responsibly, including the remuneration of employee-inventors. The paper brings the first overall evidence of monetary incentives and rewarding schemes for employee inventors at Czech universities. The analysis is based on the data of 15 Czech public universities, which account for 98.7% of the patenting activity of all Czech universities. We perform a content analysis of their internal guidelines, explore and discuss how they interpret and apply key categories of broad legal framework defined by the Czech patent law. We found that each university complies formally with the law and has some remuneration system for employee inventors. Most of the schemes are combined, paying employees a certain initial reward and share in income from future technology commercialization. Although there is some common ground, we found many creative approaches across the sample in particular remuneration elements.
Keywords: Employee Inventions, Monetary Incentives, Reward, Royalty-Sharing, Patents
JEL classification: I23, J33, O34, M52, O31

Open Access Article SciPap-939
Optimisation of a Travel Agency´S Product Portfolio Using a Fuzzy Rule-Based System
by Monika Jadrná, Tomáš Macák

Abstract: This paper focusses on the use of a fuzzy rule-based system for the tourism area, specifically, the optimisation of production for companies operating in the tourism industry. Many travel agencies and other travel companies operate in the current market, and they not only need to win customers, but also retain them. It is necessary to include everything from the cheapest trip alternatives to expensive luxury destinations, and the best in the respective price ranges must be chosen. In this study, the fuzzy rule-based system was used to evaluate the indefinite information in tourism, which is often difficult to quantify, whether this relates to the sociopolitical situation at the destination, weather or satisfaction with the accommodation services. A correct selection of products can be complicated by the fact that consumers in tourism may intend to both satisfy the same needs and several needs by buying a service. The knowledge base includes the rules for dealing with situations of the different combinations of input criteria to achieve the optimum output. The aim of this work was to design a model for optimising the product portfolios of companies operating in the field of tourism using the fuzzy rule-based system. A further goal was determining the appropriate criteria for performing optimisation.
Keywords: Multi-Criteria Analysis Options, Expert Systems, Fuzzy Rule-Based System, Tourism, Portfolio, Optimisation
JEL classification: C02, R41, M11

Open Access Article SciPap-946
Assessment of Tourism Industry Clustering Potential
by Anastasiia Bezkhlibna, Tetiana But, Svitlana Nykonenko

Abstract: In any country the successful strategic development of the tourism industry aims at economic growth, as it helps to reduce unemployment and increase national income, as well as to make tourism attractive. Long-term experience has shown that both isolated subjects of tourist businesses and those of public administration are totally ineffective. Achieving good results requires a common development strategy with specific objectives for each of the subjects. It is for this goal that tourist clusters are created in the world community. The present study provides analysis of macro-, mesoand microenvironment to determine the potential of the tourism industry clustering in the Zaporizhzhia region, Ukraine. After making the analysis of microeconomic environment of the tourism industry in the region generally suggests that of five tourism clustering potential components, four of them have a high level (A) and one has intermediate (B), meaning that the Zaporizhzhia region possesses all the potential to create a competitive tourism cluster. The obtained data will make it possible to form a regional tourism development program, to identify gaps in infrastructure management, to do comprehensive research of whether it is effective and appropriate to establish cluster organizations on any territories.
Keywords: Microeconomics, Tourism Industry, Tourist Cluster, Economy Growth, Macroeconomics, Meso-Economics, Evaluation Of Clustering Potential
JEL classification: R58

Open Access Article SciPap-926
Impact of Institutional Enviroment on the Existence of Fast-Growing Business in Time of Economic Disturbances
by Katarína Valenteová, Miroslava Čukanová, Dušan Steinhauser, Ján Sidor

Abstract: As a result of the economic crisis is the restoration of economic growth and job creation one of the main aim of economic policy. Economic growth and employment can be achieved throw the creations of conditions for increasing business competitiveness. We assume that there is a positive relationship between economic freedom, innovation, and the share of high-growing enterprises in the total number of enterprises. In this paper, we used a pair linear regression analysis between variables in which our assumptions are verified.
Keywords: Innovation, Institutional Environment, High-Growing Enterprises, Small And Medium-Sized Enterprises
JEL classification: O44, L25, L50

Open Access Article SciPap-947
Diverse Group of Smartphone Users and Their Shopping Activities
by Radovan Bacik, Lukas Kakalejcik, Beata Gavurova

Abstract: The analysis of customers’ purchasing activities, their preferences and future potential are the subject of interest of many experts in the field of marketing. Smartphones became the common devices used during purchasing process. By examining purchasing behavior of smartphone owners, the valuable insights useful for modeling new selling strategies could be mined. The main objective of this study is to analyze different behavioral patterns of smartphone users during the pre-purchase stage of the purchase process. To achieve these goal, we analyzed the data from Consumer Barometer containg data for 56 countries and 78,920 respondents. We created 3 new latent variables – factors - while reducing the number of variables (11) entering the cluster analysis by using factor analysis. Subsequently, using the cluster analysis and the method of k-medians, we created four clusters of users. Even though there are more active and less active clusters, the most popular activities involved getting store directions and checking where to buy a certain product. Users from European countries (represented by Cluster 1 and 2) use smartphones in the prepurchase process very little, showing conservative approach towards smartphones in these countries. On the other hand, users in Cluster 3 and 4 seem to be the most active smartphone users in terms of purchasing process.
Keywords: Smartphone User, Mobile Shopping, Mobile-First, K-Medians, Cluster Analysis
JEL classification: M15, M31

Open Access Article SciPap-943
Research of Objective Market Price Factors in the Formation of Prices on the Oil Market
by Yulia Y. Finogenova, Denis V. Domaschenko, Edward E. Nikulin

Abstract: “Brent” oil prices (BOP) serves as a global standard for commodity market and it strongly influences the world economy. Forecasting BOP presents a significant and at the same time an arduous task. The main question related to “Brent” prices forecasting is the correct determination of the cause-effect relations. In order to conduct the causality analysis, we have employed adaptive-neuro fuzzy interface system based on the if-then rules and a great potential for the determination of causeeffect relations. The modeling has shown unobvious results. Despite the fundamental law, which claims that the balance of supply and demand forms the oil price, we have proved that the fundamental dependencies are not valid for “Brent” oil pricing. We have revealed that precious metals prices (Palladium, Gold, Silver and Platinum) and commodity currencies exchange rates (USD/NOK, USD/AUD, USD/CAD and USD/ZAR) serve as a signal or cause for the “Brent” price changes. Additionally, we have examined the efficiency of the forecasting model in terms of forecasting oil price trends, achieving maximum 62% of accuracy on the daily data.
Keywords: Fuzzy Logic, Ann, Anfis, “Brent” Oil Prices, Causality Analysis, Forecasting
JEL classification: C12, C45, C53