SciPap, Volume 30 (2022)

Open Access Review SciPap-1619

by Markéta Mlčúchová

Abstract: Building on a unified definition and the main attributes that have been identified for platform business models, this paper aims to devise a unified data value chain and shed a new light on the value creation process within platform business models. To meet the main aim of the paper, the following research question is addressed: “How do platform business models create, deliver and capture value through their business model configurations?”. Through an integrative literature review, this paper confirmed that data is the major asset in value creation through platform business models. Furthermore, this paper has devised a unified data value chain that encom-passes sequential forms of digital data such as raw data, pre-processed data, processed data, patterns and smart data, gaining value via numerous processes throughout the data value chain. It was highlighted that interlinked processes throughout the data value chain transformed raw data into the most valuable form of data, knowledge.

Keywords: Platform Business Model, Digital Data, Digitalisation, Value Creation, Data Value Chain

JEL classification: M21, F23

Open Access Article SciPap-1549

by Denisa Karolyová, Zuzana Dohnalová, Sandeep Kumar Dey

Abstract: Job security for most working population is crucial in ensuring living standards. The main goal of this article is to find out, based on the analysis of employment, unemployment, vacancies, and wages in various job categories in the Czech Republic between 2015 and 2022, which job groups are most prone to job insecurity and job loss. Data from the Information System on Average Earnings (ISPV) and MLSA portal were used to analyse the structure of job seekers and job vacancies and to establish employment and wages. Data were processed using descriptive statistical methods. An evaluation of the variance was performed among the selected variables. A t-test was used to measure differences in job security between the observed employment categories. The results show that higher-skilled worker requirements characterize the best job classes regarding job security and wages. On the other hand, the unstable job categories with high unemployment rates and low wage rates were support and unqualified jobs and service and sales jobs. A final important finding is that firms are creating jobs with low educational requirements, which may indicate stagnation in future job innovation.

Keywords: Employment, Abour Market, Job Quality, Job Security, Job Stability, Labour Market Insecurity, Job Seekers

JEL classification: J01, J21, J23

Open Access Article SciPap-1615

by Khoa Dang Duong, Suu Duy Nguyen, Thi Thanh-Phuong Phan, Long Luong

Abstract: This paper examines the relationship between total factor productivity, trade openness, and foreign direct investment to economic growth in 90 middle-income countries from 1990 to 2020. We employ the Generalized Method of Moments with country and period fixed effects to overcome heteroscedasticity and endogeneity issues. The findings indicate a percentage increase in net FDI inflows and Trade Openness improves economic growth by 0.13% and 0.19%, respectively. However, total factor productivity negatively impacts growth due to the improper allocation of resources across sectors. Our paper contributes policy implications to develop economies sustainably. Finally, our findings support comparative advantage (Ricardo, 2015), the internalization theory of Buckley and Casson (1976), and industrialization theories.

Keywords: Economic Growth, Trade Openness, Fdi, Total Factor Productivity, Middle-Income Countries

JEL classification: B17, B27, F43

Open Access Article SciPap-1622

by Rula Hani Alhalaseh, Sumayya Maaiatah

Abstract: This study is a combination between quality management and crisis management within a vital sector, i.e., the health sector, which requires continuous improvement and sustainability of its services that guarantee quality standards. This study aims to investigate the impact of the Covid-19 pandemic on the quality of health services in Jordan. An electronic national survey was designed and distributed after conducting the pilot study consisting of 50 respondents. The data was collected from 334 COVID-19-infected patients and non-infected patients who benefited from the medical services in Jordan. The results of the SEM-PLS confirm a statistically significant positive impact of Corona pandemic on the quality of health services. In addition, it shows a high agreement on the health service quality level. This study concludes that Jordan, like the countries of the Eastern Mediterranean and North Africa (MENA), has suffered from the effects of the Corona virus, and this crisis creates many challenges and threats to its healthcare systems. Therefore, researchers pointed out some recommendations for top management and decision-makers that the government should formulate flexible and long-term health strategies that can deal with sudden events and situations, guided by the information from this study.

Keywords: Quality Management, Jordan, Quality Of Health Services, Corona Pandemic

JEL classification: C12, H11, H75, I0, I18, M1, M11

Open Access Article SciPap-1606

by Dominika Šulyová, Milan Kubina

Abstract: In light of current climate change concerns, it is not enough to create only Smart Cities but it is important to create Smart Sustainable Cities. Countries like Slovakia have not been adequately considering these issues as much as they should. Responding to the opportunity to fill a research gap, primary research has been conducted for this article that seeks i) to use results from previous research to compare currently identified elements influencing the development of a sustainable Smart City concept in Slovakia with best practice cities around the world; and ii) to identify those elements that have achieved a statistically significant correlation with the conceptualisation of Smart Cities in Slovakia. Research data were collected through sociological interrogation, processed in a statistical programme and subsequently evaluated. The findings point to key elements in developing Smart Cities such as trust, state support and adapting to change. The main output is a general model for conceptualising a Smart City. It can be utilised by strategic city management, fellow researchers and residents of a city implementing it in their own practices. The model reflects social, environmental, technological and managerial aspects. Further research into the model and subsequent verification are planned in future.

Keywords: Slovakia, Sustainable Development, Climate Change, Smart Cities, Technology, Urbanization, Limited Resources

JEL classification: O13, R11, Q56, Q01

Open Access Article SciPap-1556

by Eva Hýblová, Alena Kolčavová, Tomáš Urbánek, Zora Petráková

Abstract: Financial reporting is a source of information used as a basis for economic decisions. It is a basis for the calculation of financial indicators that serve to evaluate the financial health of a company. Statements that are accurate and provide trustworthy information are a prerequisite for an enhancement of company competitiveness on national and global markets. Research into and studies on the accuracy of the information contained in statements show that statement creators use manipulation to improve accounting entities' image. The aim of this paper is to verify whether ordinary users of financial statements can rely on the veracity of the information contained in the financial statements published in the usual way in available sources. The research subject was financial statements of entities listed in the TOP Czech and TOP Slovak ranking within the revenue category. We investigated whether statements show an indication of accounting data manipulation using the CFEBT (cash flow earning before tax) method and a method aimed at verifying the linear dependence between earning before tax (EBT) and cash flow (CF). The empirical results yielded interesting findings. They showed that the disputable item is the results of accounting estimates, which are often influenced by subjective decisions made by the financial statements creators.

Keywords: Creative Accounting, CFEBT, Accounting, Financial Reporting, Model Comparison

JEL classification: M40, M41

Open Access Article SciPap-1605

by Aydan Huseynova, Jana Matošková

Abstract: The business of the current era intends to show competitive advantage for a long run in order to get more profits and stay alive in the markets. Getting a competitive advantage is highly related to human resource management (HRM). Companies build a distinct employer brand based on their competitive advantage; however, the role of organizational culture to support the transition of companies to get a powerful employer brand is rarely studied. Consequently, the main purpose of the current study is to determine the mediating role of organizational culture (engagement and productivity) in the relationship between sustainable HRM practices and employer branding. The survey research design was used and data were collected from 420 employees of Azerbaijani organizations using a convenience sample strategy. The findings of the path analysis using AMOS revealed the partial multiple mediating role of organizational culture (engagement and productivity) in the relationship between sustainable HRM practices and employer branding. Moreover, as far as the individual mediating role is concerned, the mediating role of organizational engagement is stronger compared to productivity. The findings highlighted that by implementing Sustainable HRM practices and maintaining an engaged organizational culture in the employer brand, employers can meet their employees' various requirements and expectations while maintaining a consistent company image.

Keywords: Organizational Culture, Employer Branding, Sustainable Hrm, : Human Resource Management, Person-Organization Fit Theory.

JEL classification: M, M12

Open Access Article SciPap-1467

by Yuni Yuni Pristiwati Noer Widianingsih, Doddy Setiawan

Abstract: This study examines whether idiosyncratic risk significantly affects earnings quality in non-financial companies listed on the Indonesia Stock Exchange. Research on developing countries, especially Indonesia, which links idiosyncratic risk and earnings quality, has not been widely conducted. This is interesting because the characteristics of the markets in developing countries are different from those in developed countries. This study uses the dependent variable of earnings quality, which is the residual value of the Kasznik and Dechow–Dichev model, and idiosyncratic risk, which is measured based on the Capital Assets Pricing and Fama–French models. The overall results indicate that high idiosyncratic risk is associated with low earnings quality (large residual value). Robustness tests are also conducted based on groups of positive and negative profit companies, as well as industry groups. The same results were obtained for each earnings component, namely, innate and discretionary factors. These findings contribute to the development of firm-specific risk literature as an additional analytical tool to assess earnings quality based on accrual rates. This allows regulators and standard-setters to provide more relevant information regarding investment decisions.

Keywords: Idiosyncratic, Return, Earnings Quality, Accrual, Discretionary Accrual

JEL classification: M41, G3

Open Access Article SciPap-1598

by Petr David

Abstract: Road transport is a source of emissions of which nitrogen oxides (NOX), particulate matter (PM2.5), and carbon dioxide (CO2) emissions are most damaging. The economic inefficiency caused by not including the emission externalities of vehicle operation in prices can be improved by using a vehicle use tax. In the Czech Republic, however, a large part of the vehicle fleet is exempt from this tax, which is thus not general. This part of the fleet thus escapes taxation, for which there is no economic justification. To identify the actual ratio of emissions indicators of operating fleet segments in relation to vehicle use tax we use unique dataset composed of national emissions inventories data of the Copert program, road vehicle register data and vehicle testing stations data. It is also possible to quantify emissions production and determine the external costs of NOX, PM2.5, and CO2 generated by road transport segments in the Czech Republic. It was found that half of the production of the emissions in road transport in the Czech Republic representing almost 60% of the environmental costs were not covered by the existing tax due to the exclusion of part of the vehicle fleet from this taxation, especially private passenger vehicles.

Keywords: Environment, Vehicle Use Tax, Emission, Mileage, Road Transport

JEL classification: H21, H23

Open Access Article SciPap-1490

by Bhumiswor Sharma, Srikanth P, Suresha B

Abstract: The firm size and value anomalies are the global-level counterpart for explaining the cross-sectional variations of equity returns. The purpose of this paper is to examine the size, value effects and the explanatory power of three well-known pricing models – CAPM, three-and five-factor across and within 15 Indian industries. The study considers all firms listed on the Indian largest stock exchange, BSE (Bombay stock exchange), between 1999-2021 by developing portfolios using firm size/value, size/investment and size/profitability risk characteristics. The study employs both univariate and multivariate methods, including time-series, GRS statistic, and cross-sectional models within and across industries' portfolios. Results indicated that size and value effects exist in almost all industries, presenting that size and value anomalies are the most prominent determinants for industry-level equity returns. In addition, the profitability and investment effects were also investigated; however, the results are mixed by industry to industry. In the case of the explanatory power of pricing models, the five-factor performs much better within and across industry portfolios than other pricing models; however, the models' effectiveness varies by industry. We also reported that investors who seek to allocate funds within and across the industries tend to be expected reasonably stable returns and conceivably predictable; findings of this study contribute to the existing literature on assets pricing and portfolio management to the emerging markets.

Keywords: Asset Pricing, Portfolio Management, Stock Market, Cross-Sectional Models, Time-Series Models, India

JEL classification: C21, C22, G11, G12

Open Access Article SciPap-1565

by Dagmar Čámská, Jiří Klečka, Hana Scholleová

Abstract: The paper aim is to verify industry sensitivity to changes in production volumes (sales). Sensitivity confirmation is not based on the data describing economic downturn but on permanent internal industry factors. Internal factors take into consideration cost dependency on changes in output quantity produced. Ex ante analysis would discover why some industries would be more vulnerable than the others when significant economic disruption occurs. It has a serious impact on industry performance and business competitiveness position. The examined sensitivity will be expressed by the indicator degree of operating leverage (DOL). The verified assumption should classify neutral industries as sectors with low sensitivity and cyclical branches as industries with high sensitivity. The research is based on the data of more than 1,000 enterprises belonging to four industry sectors. Cyclical industries are represented by CZ-NACE 29 Manufacture of motor vehicles, trailers and semi-trailers and CZ-NACE H Transportation and Storage. Neutral sectors are symbolized by CZ-NACE 10 Manufacture of food products, CZ-NACE 20 Manufacture of chemicals and chemical products. Research conclusions are not demonstrable because initial assumptions were not confirmed and significant differences between cyclical and neutral industry branches were not unexpectedly detected using DOL. It demonstrates that examined issue is more complex and the monitored economic environment does not stay stable even during a period of macroeconomic stability.

Keywords: Czech Republic, Degree Of Operational Leverage, Changes In Sales, Impact On Profitability, Cz-Nace

JEL classification: M21, P42, D24

Open Access Article SciPap-1557

by Ihor Hurnyak, Pedro Pardal, Jakub Horák, Veronika Machová

Abstract: The competitiveness of modern human and business are inextricably linked with the work of the stock market. In some cases, easily could be detected a correlation between trends or tendencies of the stock market and the directions of transformation of human behavior. What should people and businesses be like to maintain this competitiveness at the proper level? According to the authors, it is the developed stock market as instrument of modern society that provides the answer to this question. Through the analysis of stock markets tendencies, this research aims to find evidence that confirm the new characteristics of human life in the fields of education, healthcare, communication, commerce, and interaction with virtuality. Most researchers focus separately on the study of human behavior and the functioning of the stock market. We analyze the relation between both dimensions, assuming that the stock market can be considered, for developed countries, through the small investors voting as public preferences and goals reflection. Evidence from statistical analysis of the stock market confirmed the following characteristics of modern human: faster dissemination of knowledge, e-commerce acceleration, influencing interpenetration of the Internet communications, in depth virtualization, and accelerated circulation of information flows. Operating within such flows of change allows people and businesses to remain competitive at the appropriate level.

Keywords: Competitiveness, Stock Market, New Human, Pandemic Influence, Virtualization, Remote Education

JEL classification: I21, M21, D02, D91

Open Access Article SciPap-1599

by Peter Burger

Abstract: Data collected from three self-administered questionnaire surveys conducted in 2011, 2016, and 2022 are used in this scientific paper. The paper aims to analyse the revenue structure of European clusters and focus on identifying possible differences in their funding in 2011, 2016, and 2022. Over eleven years, the revenue structure of clusters has changed to some extent, and the evolution and extent of these changes are the subjects of this paper. At the same time, it is necessary to determine whether the relatively high level of dependence of European clusters on public resources continues to persist or decreases or increases over time. The results show that the differences in the funding of the clusters studied in the selected years are statistically significant. The share of public and private funds has varied particularly over the last five years, and the share of public resources in cluster budgets has been steadily increasing. When comparing the shares of different public and private funding types, significant differences were observed for most clusters during the period under review. One of the few resources that have had a constant representation in cluster budgets over the whole period is the EU Structural Funds and Community Programmes, whose share in the budgets of European clusters has fluctuated only slightly, according to our statistical survey. Similarly, there has been no change in the share of credit instruments, such as bank loans, in cluster budgets. This share is consistently meagre in all three questionnaire surveys, which means that European clusters hardly use this funding source.

Keywords: Clusters, Cluster Policies, Financing Clusters, Public/Private Resources, Financial Structure

JEL classification: R58, O38, O31

Open Access Article SciPap-1568

by Tomáš Červinka, Petr Novák

Abstract: In this qualitative study, we provide insight to the influence of COVID-19 pandemic on the digital transformation process and strategic management in SMEs in the Czech Republic. Digital transformation is perceived as a driver of growth and competitiveness, defined by new technologies and approaches, and strongly connected with strategic management and strategic approach. Drawing on SME employees experience with recent pandemic situation, we analysed and addressed the factors that influence digital transformation process and strategic management to reveal and describe, what drives or slows the process. Our findings have been founded on several case studies carried out in SME organizations via series of interviews that involved employees of various level and specialization. Results reveal that influence of pandemic on digital transformation process and strategic management may vary according to individual experience, which opens the possibility for contextualization and further research using quantitative methods. The results indicate that the influence of covid19 pandemic on strategic management and digital transformation process generated both positive and negative experience. It was perceived as an accelerator of change, speeding up rigid or long-postponed processes and implementations, but also carrying negative effects as employee attrition, loss of morale and motivation and resignation. This research contributes to prior literature on digital transformation and strategic management by investigating the influence of unprecedent events of multinational impact on SME digital transformation process.

Keywords: Digital Transformation, Strategic Management, Covid-19, Change Management, Competitive Advantage., Qualitative Interpretative Research, Strategic Adaptability

JEL classification: O31, M10, M54

Open Access Article SciPap-1528

by Aleksandar Naumoski, Vesna Bucevska

Abstract: This paper investigates the impact of intercompany determinants on corporate cash holdings in South East Europe. We researched a large sample of companies listed on the stock exchanges. We found that SEE companies’ cash holdings on average is 6.94% of the total assets, which is lower than in developed countries. Intercompany determinants have a significant impact on the company’s cash holdings. Our results suggest that cash holdings are positively affected by the size of the firms, cash flow, cash flow uncertainty, debt maturity, and growth opportunities. Cash holdings are negatively affected by the net working capital, financial leverage, and capital expenditures. SEE companies operate in underdeveloped financial markets with limited access to finances, and their cash holding decisions are mostly determined by the transaction motive. Our findings indicate that companies in SEE do not pursue a cash optimization policy. They largely follow the pecking order pattern and the cash holding of the firm is mostly determined by means of the relationship between the capital investments and internally generated funds.

Keywords: Cash Holdings, South East Europe, Trade-Off Theory, Pecking Order, Transaction Motive

JEL classification: G3, G32

Open Access Article SciPap-1554

by Lenka Smékalová, Filip Kučera

Abstract: The cohesion policy of the European Union represents a significant part of its budget and delivers interventions across all regions of the EU. There is little consensus on its efficiency, and its links to fostering convergence on the regional level are uncertain. Nevertheless, regions were shown to benefit from policy interventions promoting their growth and development. The main objective of the policy is to reduce regional disparities that exist among lagging and other, more developed regions. Therefore, this paper focuses on the deliverance of the cohesion policy in Central and Eastern European countries, Poland and the Czech Republic. It explores the support of thematic interventions across its regions in the 2014-2020 period. Findings point out different thematic support of Polish regions according to their relative advancement. Lagging regions of Poland received more substantial support related to promoting the endogenous potential for development and increase in quality of human capital. In contrast, the Czech regions were treated comparably regardless of their development stages. This points to different approaches to implementing the cohesion policy in these countries

Keywords: Czech Republic, Regional Development, Cohesion Policy, Poland, European Structural And Investment Funds, Lagging Regions

JEL classification: R58, R11, J18

Open Access Article SciPap-1560

by Anastasia Mariana Derita Batmomolin, Muhammad Sadikin, Jimmy Hadi, Andreas Gunawan P, Stefanus MS Sadana

Abstract: Internationalization and economic globalization cause diversity in organizations to be higher, thus requiring a diversity management approach. This quantitative study aims to analyze the effect of diversity management on organizational trust, employee innovative behavior, and employee engagement. Data were collected using a questionnaire involving 115 employees of a large private bank in Jakarta, Indonesia. Analysis of research data using structural equation modeling (SEM) with SmartPLS software. The results showed that diversity management has a positive effect on organizational trust, employee innovative behavior, and employee engagement. Organizational trust has a positive effect on employee innovative behavior and employee engagement. Organizational trust mediates the effect of diversity management on employee innovative behavior and employee engagement. Diversity management is very important for organizations today because it can promote organizational trust, create employee innovative behavior and strengthen employee engagement, so every organization needs to establish policies regarding diversity management practices and consistently make it happen.

Keywords: Employee Engagement, Indonesia, Diversity Management, Organizational Trust, Employee Innovative Behavior

JEL classification: O15, M14

Open Access Article SciPap-1564

by Nguyen Trong Binh, Nguyen Quang Giai

Abstract: While it is only one of the features of good local governance, the transparency of local government promotes citizen participation, enhances accountability, enforces the rule of law, social justice association and control corruption. Therefore, institutional reform to enhance the transparency of local government is one of the important issues that Vietnam has attached great importance to in recent years. Based on a theoretical framework and data from the Provincial Public Administration and Governance Performance Index (PAPI), this paper analyzes the transparency of local government in Vietnam from 2011 to present. Research results show that although the transparency of local government in Vietnam has improved, it still does not meet the requirements. Although the construction and improvement of legal institutions to improve the transparency of local governments has been highly valued, the effectiveness of the implementation of legal institutions in this area is still not high. Local government transparency is tied to citizen participation and government accountability, but not to other aspects, such as public administrative procedures, quality of public services and control corruption.

Keywords: Transparency, Local Government, Good Governance, Open Government, Papi, Vietnam.

JEL classification: H76

Open Access Article SciPap-1491

by Barbara Rasiova

Abstract: Growth and value are popular terms in the lexicon of finance. For many years, scholars and investment professionals have claimed that value strategies outperform the growth ones, even in major market declines. However, since the early 2010’s, this seems to no longer hold, as growth strategies consistently generate superior returns. With declaration of Covid-19 as a pandemic, stock markets across the world were confronted with immense uncertainty. Taking the recent trend reversal in outperformance into consideration, such economic climate sparks interest in the differences in the response of growth and value strategies. Using log returns data for value and growth portfolios during the 2010-2021 period, this study provides empirical evidence that value portfolios show greater sensitivity to the Covid-19 pandemic. While findings show that the pandemic had a profound impact on the performance and riskiness of both portfolios, they clearly indicate higher volatility, frequency of extreme losses and average loss in the value portfolio, which further extends the growth outperformance to market downturns.

Keywords: Risk, Value, Pandemic, Return, Growth, Loss

JEL classification: G1, G11, G14

Open Access Article SciPap-1580

by Fazal Ur Rehman, Viktor Prokop, Bestoon Othman, Farwida Javed, Sadia Ijaz

Abstract: This study examines the influence of social advertising on the buying behaviour of Malaysian consumers along with the moderating role of gender and education. We use our own Primary data that were collected through questionnaire-based survey from the shoppers at various shopping malls of fashion clothing brands at Kuala Lumpur and State Johor in Malaysia. The collected data were analyzed by using step wise regression and correlation statistics to find results. The findings revealed that social advertising, informativeness, entertainment, credibility, ease of use, contents, and gender have positive effects on the buying behaviour of Malaysian consumers toward the fashion clothing brands. By contrast, we find negative effects of privacy and education. Next, we show that gender has moderating effects in the defined context. The main contribution of this study is the assessment of the effects of some unique and influential factors of social advertising on the buying behaviour among Malaysian consumers towards the fashion clothing brands. In addition, this study has also assessed the moderating effects of gender and education to extend the body of knowledge in that area. Finally, we present practical implications for managers.

Keywords: Gender, Education, Consumer Behaviour, Social Advertising, Fashion Brands

JEL classification: H, P35