Business Decision-making Process Research Articles

Would you date a liar? The impact of greenwashing on B2B relationships under the managerial trust view

Greenwashing can be perceived as dishonest behavior that can threaten trust in business deals due to the current trend of an intensive scrutiny of sustainability-related messages from organizations. Drawing on the literature concerning managerial trust, our study analyzes how perceived greenwashing negatively affects business-to-business relationships, focusing on two aspects: (1) whether managers’ perception of greenwashing is influenced by uncertainty in the business decision-making process and (2) whether individual manager characteristics play a significant role in modulating this influence. We used an experimental design involving 125 Spanish managers to confirm the importance of uncertain scenarios under the negative influence of greenwashing on business decision-making process. The findings also confirm that this negative influence is intensified by managers’ characteristics in terms of risk aversion and the importance they place on corporate reputation. The study makes several contributions to academia and practitioners by advancing the understanding of greenwashing in the context of business-to-business relationships. JEL CLASSIFICATION: M100; M140; M210

Computer security technology in E-commerce platform business model construction

The global e-commerce market is expanding rapidly as the big data era advances and the e-commerce industry thrives. This paper aims to discuss the application of computer security technology in constructing an e-commerce platform business model. The research aims to find effective security technology solutions to strengthen the security of e-commerce platforms, protect user information and rights, and enhance the sustainable development of business models. Big Data-assisted E-Commerce Business Model (BD-ECBM) construction is discussed to overcome the e-commerce platform issues and positively impact marketing strategy decision-makers by raising their level of awareness. The business decision-making process is a series of steps that help businesses overcome obstacles by collecting relevant data, analyzing all relevant alternatives, and settling on a course of action. Big data analytics can improve business management with data fusion technology in many ways. The system's framework of the information service layer, the application-level layer, and the client session layer was developed using the Business model paradigm for accounting for e-past, commerce's capabilities of the platform, and an analysis of supply and demand. It can monitor its rivals in near real-time, adjusting prices, offering more attractive deals, and analyzing negative customer comments to see if it can outperform its rivals. The trial results demonstrate the effectiveness of this method of making marketing decisions and formulating a strategy. Hence, the BD-ECBM technique improves customers' overall satisfaction and experience with the brand while raising the latter's profile.

The Role of Economic Policies to Adopt Renewable Energy and Digital Technology on Business Decisions and HR Management in the Indonesian Mining Sector

The problem formulation that arises from this research is how the direct and indirect effects of renewable energy adoption variables and digital technology adoption affect the business decisions of mining companies in Indonesia with HR management variables as intervening variables. The subjects of this research are leaders in mining companies in Indonesia totaling 390 business units, where the variables in this study are independent variables, namely the adoption of renewable energy and the adoption of digital technology, while the dependent variable is the business decisions of mining companies in Indonesia, and the intervening variable is the HR management variable, where data analysis uses path analysis using Amos 22 software. The research method carried out is to use a quantitative descriptive approach by using data analysis with the path analysis method, where the results of data processing with the path analysis method are carried out with the Amos 22 application. From the results of this study, the conclusions that exist, namely partially the variable adoption of renewable energy and the variable adoption of digital technology, have a direct effect on the business decisions of mining companies in Indonesia. Renewable energy adoption variables partially also have a direct effect on HR management of mining companies in Indonesia, and HR management variables of mining companies in Indonesia have a direct effect on business decisions of mining companies in Indonesia. Simultaneously, the renewable energy adoption variable and the digital technology adoption variable indirectly affect the business decisions of mining companies in Indonesia through HR management as an intervening variable. With the process of adopting renewable energy and adopting digital technology, it will create changes to the business decision process carried out by the mining industry in Indonesia regarding HR management to become human resources capable of managing these changes. The government must carry out economic policies that support these changes, such as providing industrial incentives that are willing to change and adopt renewable energy and digital technology in order to compete and create products that are able to reduce the risk of climate change.

Measurement by applying internet financial reporting on the level of information presentation in the competitive FinTech peer-to-peer lending industry

<span lang="EN-US">Technological advances in the financial sector can certainly support the business decision-making process. Moreover, digital financial technology such as FinTech is a competitive industry that has both peer-to-peer (P2P) and merchant pillars. The industry must update its business activities through its information media. One of them is internet-based financial reporting or better known as internet financial reporting (IFR). IFR itself is a delivery of financial information that is carried out in real time and can be easily seen by the wider community by using the website as a medium. This study aims to determine whether the application of IFR to FinTech P2P Lending companies in Indonesia has been widely implemented or not. Later the variables used in this study are content, appearance, and timing with a total of 20 indicator variable items to be tested. The results of this paper show that 30 P2P lending FinTech Industries in Indonesia have been able to implement IFR with an average score of 80%. IFR scores obtained by each industry have almost the same value ranging from 65% to 95% with the highest total score of 95% and the lowest score of 65%.</span>

Business analytics and decision science: A review of techniques in strategic business decision making

Business analytics and decision science have emerged as pivotal domains in enhancing strategic business decision-making processes. This review delves into various techniques that organizations employ to optimize their operations and achieve competitive advantages. At the forefront of strategic decision-making is data analytics, where vast amounts of data are analyzed to extract valuable insights. Descriptive analytics provides a historical perspective by examining past data trends, enabling businesses to understand their performance over time. This retrospective analysis serves as a foundation for predictive analytics, which utilizes statistical models and machine learning algorithms to forecast future trends and outcomes. By leveraging predictive analytics, organizations can anticipate market shifts, customer preferences, and potential risks, thereby making informed decisions. Prescriptive analytics uses predictive models to guide strategic decision-making, utilizing optimization algorithms and simulation tools to identify optimal actions. Decision science integrates analytical techniques with human judgment, focusing on consumer behavior and psychological factors to tailor marketing strategies and product offerings. Additionally, artificial intelligence (AI) and machine learning (ML) technologies are revolutionizing strategic decision-making by automating complex tasks and providing real-time insights. Natural language processing (NLP) algorithms analyze unstructured data sources, such as customer reviews and social media posts, to extract valuable information and sentiment analysis. This enables businesses to gauge customer satisfaction levels and identify areas for improvement promptly. Decision trees, regression analysis, and clustering techniques are widely used in business analytics to segment customers, identify patterns, forecast sales trends, evaluate alternatives, assess risks, and optimize resource allocation. In conclusion, business analytics and decision science offer a plethora of techniques that empower organizations to make informed, data-driven decisions. By leveraging descriptive, predictive, and prescriptive analytics, along with AI and ML technologies, businesses can navigate complex environments, capitalize on opportunities, and mitigate risks effectively. This review underscores the importance of integrating analytical techniques with human expertise to achieve strategic objectives and sustainable growth.

Business decision-making of power generators in competitive electricity market

This paper presents a theoretical framework for the business decision-making process of the power generators as price takers when considering the participation of energy storage. The framework assesses rational valuation, optimal sales strategies, and hedging options for power plants with and without a gross sales constraint. The valuation and optimal sales strategy problems are analyzed using a risk-neutral pricing approach, dynamic programming principles, and the trinomial tree model suitable for the regime switching model. The formulation of a price risk hedging scheme flexible and widely used over-the-counter electricity derivative, the electricity contract for difference, as a tool for hedging electricity spot price risk. The minimum variance hedge ratio and its corresponding hedging efficiency formula are derived. In the section of numerical simulations, we first use the EM algorithm to calibrate the electricity spot model based on electricity spot price data of Nord Pool. Numerical simulations are then conducted on the operational decision-making of power generators under three different forms of energy storage. The results of the simulations provide a basis for power generators to evaluate the real-time value of power plants, to select optimal real-time power sales, and to determine the optimal timing of power plant transfer and storage methods.

Business Intelligence System for A Weaving Industry

The practical and precise management of company transactions and accounting is paramount for achieving organizational success in the dynamic market characterized by intense competition within local production sectors. Manually maintaining transactions has become increasingly challenging due to the continuous expansion of data. The primary objective of this project is to implement an automated management system to replace the existing manual method. Implementing this solution will yield benefits in terms of time efficiency, cost reduction, and space optimization while safeguarding sensitive information. Additionally, the used technology will enhance the manageability and searchability of data and documents. Furthermore, using Business Intelligence will enhance strategic business decision-making processes and facilitate the generation of comprehensive reports.

A phenomenological study: The role of management accounting information in the business decision-making process on successful female Balinese entrepreneurs

The research was conducted to explore more deeply the role of management accounting information that is understood in the process of making business decisions by Balinese Women Successful Entrepreneurs and the extent of their understanding which will be the conclusion of this research. The research approach applied to the research is a qualitative approach that is specific to phenomenological studies. The research informants/subjects are Balinese Women Entrepreneurs who have run their businesses before and after the COVID 19 pandemic, with different business characters and specifications and have proven their success. The similarity that emerges from each informant is that there are two themes, namely the decision-making process that goes through several stages to achieve the best final decision and full accounting information, namely to maintain the going concern of the business, always reflecting on past information as a reference and future information to achieve the company's global targets or goals. The results of the manuscript interview data in the textural description of the five informants stated that they understood the importance of the role of management accounting information in the process of making business decisions, structurally each informant expressed his understanding in the implementation of the use of different management accounting information both financial and non-financial in nature. Referring to the title and subject of the study, applying one grand theory, namely decision making theory and feminism theory as a supporting theory. However, for future researchers, the opportunity to develop the grand theory used is still large, for example Masculine Theoretical Decision Making and Feminism Theoretical Decision Making so that the research results are more specific and quality.

CHIEF EXECUTIVE OFFICER (CEO) ATTRIBUTES AND TAX AVOIDANCE INSIGHT FROM LISTED NON-FINANCIAL FIRMS IN NIGERIA

The study mainly examined the effect of chief executive officers’ attribute on tax avoidance of listed non-financial firms in Nigeria. To achieve this objective, this study specifically tests the hypothesis that chief executive officers’ attributes in the context of chief executive officers’ tenure, chief executive officers’ ownership, chief executive officers’ gender and chief executive officers’ nationality significantly affects tax avoidance over a 10year time frame (2012 – 2021) for non-financial listed firms in Nigeria. This study is anchored on the Upper Echelon Theory noting that the key concept of the upper echelon theory is that the company reflects its chief executive officer. Robust regression analysis technique was employed to test the formulated hypotheses after fulfilling the necessary conditions for obtaining non-spurious regression estimates. Specifically, the result reveals mixed evidence suggesting that the effect of chief executive officers’ attribute on tax avoidance depends on the observed or unobserved traits. Particularly, the result suggests that higher ownership rights owned by the chief executive officer reduces the level of tax avoidance of listed non-finance firms in Nigeria. Therefore, this study recommends among others that to optimize the non-debt tax saving strategy, management must develop a culture within the organization that values responsible tax planning and encourages chief executive officers’ to actively consider the non-debt tax shield as a strategic tool. Further, management team should promote transparency and open communication about tax strategies, ensuring that tax planning is integrated into overall business decision-making processes.
 Keywords: Chief Executive Officer Attribute, Tax Avoidance, Robust Regression, Upper Echelon Theory.

A logic Petri net model for dynamic multi-agent game decision-making

This study proposes a logical Petri net model to leverage the modeling advantages of Petri nets in handling batch processing and uncertainty in value passing and to integrate relevant game elements from multi-agent game processes for modeling multi-agent decision problems and resolving optimization issues in dynamic multi-agent game decision-making. Firstly, the attributes of each token are defined as rational agents, and utility function values and state probability transition functions are assigned to them. Secondly, decision transitions are introduced, and the triggering of the optimal decision transition is determined based on a comparison of token utility function values, along with an associated algorithm. Finally, a dynamic game emergency business decision-making process for sudden events is modeled and analyzed using the logic game decision Petri net. Based on reachable markings, reachable graphs are constructed to analyze the dynamic game process. Algorithms are described for the generation of reachable graphs, and the paper explores how the logic game decision model for sudden events can address dynamic game decision problems, generate optimal emergency plans, and analyze resource conflicts during emergency processes. The effectiveness and superiority of the model in analyzing the emergency business decision-making process for sudden events are validated.

PENGARUH FREE CASH FLOW, BOARD SIZE, DAN KARAKTERISTIK PERUSAHAAN TERHADAP MANAJEMEN LABA

Profit is one of the information that is quite noticed by users of financial statements such as investors and creditors because it can describe the performance of a company. The importance of the profit figure triggers management (as the party who has the opportunity and control) to carry out earnings management practices. Therefore, it is necessary to understand what factors can affect earnings management so that the decision-making process in business can be carried out correctly. The purpose of this research is to obtain empirical evidence related to the factors that can affect earnings management that is the influence of firm size, financial leverage, firm age, profitability, board size, free cash flow, and sales growth on earnings management. This research is causality and uses secondary data sources, with the research population being manufacturing companies listed on Indonesia Stock Exchange from 2019 to 2021. The amount of sample obtained and used are 76 companies with sampling technique that is purposive sampling method. The data obtained were then analyzed using the multiple linear regression method. The results of this research indicate that financial leverage and profitability have a positive effect on earnings management, while firm age and free cash flow have a negative impact on earnings management. The company size, board size, and sales growth have no effect on earnings management.

Expectativas empresariais frente ao início da pandemia da COVID-19: Evidências empíricas no Brasil

Objective: To investigate entrepreneurial expectations towards the COVID-19 pandemic through empirical evidence of business practices in Brazil during the beginning of the social distancing period. Also, we sought to test cognitive adaptability and human values as predictors of the decision-making process and to test whether infection with COVID-19 or proximity to the disease related to these constructs. Method: A cross-sectional study was developed with a non-probabilistic sample of 313 Brazilian entrepreneurs, in which four instruments were applied. Descriptive and multivariate analyses were carried out (e. g., exploratory factor analysis and multiple linear regressions). Originality/Relevance: The study contributes to understanding the business decision-making processes through constructs associated with human values and cognitive adaptability. Results: Human and social conditions of survival and the commitment to personal and business financial obligations guide entrepreneurial behaviour. In cases where there was contagion or proximity to the disease, entrepreneurs started to show thoughtful decisions, affective support for employees, flexibility in organizational control, and more empathic values. Theoretical/methodological contributions: This study points out the possible impacts that the COVID-19 pandemic has brought to entrepreneurs and how psychological variables explain their behaviour. Social/managerial contributions: Additionally, it sheds light on entrepreneurship from the needs and desires experienced at the beginning of the COVID-19 pandemic, and on the broader dimension directed to the serious problems experienced today.

Uspostavljanje mehanizma kontrolinga u procesima organizacije i upravljanja od strane top menadžmenta u poljoprivrednim preduzećima u Republici Srbiji

The establishment of controlling as a mechanism that will contribute to economic support in business decision-making processes and the organization of the management structure established by the top management in agricultural enterprises in the Republic of Serbia is extremely important. The essential improvement of business decisions in agricultural enterprises can be linked to the established controlling mechanisms, which was the focus of the authors of this study. In the study, a correlation analysis was performed, which points to the existence of significance at the level of p<0.05, between the size of the organization of the agricultural enterprise and the implementation of controlling. In addition, the authors strengthened the research from the aspect of realistic presentation of the analysis of the obtained business results of the observed large and medium-sized enterprises in relation to the introduced controlling mechanism. It was discovered that there is a different success in the obtained business results of agricultural companies that introduced controlling compared to those that did not introduce controlling in regular operations. The value of the obtained Pearson Chi-Square is 11.190a, as well as the fact that p<0.005, which means that we discovered that the introduced form of controlling significantly affects the operations of medium and large agricultural enterprises in the Republic of Serbia.

Estimation of Impact of ESG Practices’ Performance and Their Disclosure on Company's Value

Recently businesses began to consider different initiatives of integrating ESG activities into business decision-making process. The key initiative is maintaining non-financial reporting and performance integration when aligning value creation activities with Sustainable Development Goals (SDG's) and communicating to stakeholders. Particularly, this is true for ESG positioning of the company in the context of the ESG performance-disclosure dichotomy. The purpose of the paper is to understand what kind of ESG practices’ factors influence value of companies from oil & gas and industrials sectors of the economy in developed capital markets the most in ESG performance-disclosure dichotomy. Our sample consists of 5388 observations of oil & gas and industrials companies for the period from 2016 to 2021. The results showed that investors do not appreciate either performance or disclosure separately, but they look at the activity of the firm in complex. Therefore, the company should employ both practices in order to be sound ESG-responsible company in the eyes of the market. The conclusions of the study could be of interest to companies building an ESG strategy to increase investor loyalty and improve financial performance. As well as to potential investors to evaluate companies and build an investment strategy implementing non-financial factors into decision making process.

ВИКОРИСТАННЯ ІНТЕРНЕТ-ТЕХНОЛОГІЙ ДЛЯ ДІАГНОСТИКИ ТА ПРОГНОЗУВАННЯ ПРОЦЕСІВ ПРИЙНЯТТЯ БІЗНЕС-РІШЕНЬ

The article analyzes the application of fractal analysis and neural networks in internet technologies for diagnosing the state of a studied object and forecasting time series. These methods will expand the possibilities of using predictions for the future behavior of the researched object in the fields of finance, investment, economics, sociology, and other industries where obtaining prospective knowledge is required. The authors provide an overview of predictive analysis theories and modern econometric and mathematical methods for modeling time series. The justification for choosing fractal analysis as an effective method for diagnosing business decision-making processes is given. A methodology for using internet technology to automate time series forecasting is proposed. A web application has been developed as a software product to solve the research tasks. The process of developing the web application is examined, which would forecast the financial indicators of Ukrainian banks based on available time series. The main stages of development and architecture of the web application for diagnosing and forecasting business processes are described. A generalized structure of software modules is presented. Time series of net profit for Ukrainian banks have been selected as the base model for analysis and forecasting. The developed web application is a complex of programs that use a neural network for time series forecasting. Fractal analysis is used in the stage of forming input data for the neural network. The application also provides the ability to conduct R/S analysis of time series to determine the Hurst exponent. The software product also allows training the neural network using backpropagation. With the machine learning algorithms used in the web application, it is possible to analyze large volumes of data and discover complex dependencies and patterns in time series that may be difficult to notice manually. This leads to more accurate and faster results and enables making more objective forecasts based on the available data. The developed web application can also be used for predicting crises in financial and investment activities.

Circular beauty at Nafigate Cosmetics: balancing new brand concepts with growth through contract manufacturing

Research Methodology This case was developed from both secondary and primary sources. The secondary sources include the company’s website and social media, social media sites and PR news reports. Primary sources include in-depth interviews with Nafigate Cosmetics executives. This case was classroom-tested with graduate students in an International Marketing course in Autumn 2021 and Spring 2022. Case overview/synopsis Nafigate Corporation is a small Czech company with a global presence and a solid organizational philosophy to create a better world through scientific knowledge and active use of technology. With innovative new products, Nafigate is poised to revolutionize the cosmetics industry. The case explores elements of branding, strategic decision-making and how to balance competing priorities during a company’s growth phase. Complexity academic level This case was written for use in International Marketing classes at the graduate level. In addition, the case could be used in International Marketing Communication courses and in CSR subjects. Students are encouraged to discuss building a competitive advantage, portfolio decisions in terms of brand differentiation, branding strategies, and most importantly, understand the complexity of the business decision-making process.

THE EVALUATION OF THE INTERNAL APPLICATION SYSTEM OF CASH EXPENSES CONTROL IN DRINKING WATER COMPANY

Accounting, in general, is a system of producing financial information used by users in the business decision-making process. Cash is an object that is often poorly represented because cash is the most valuable of all assets and can be transferred quickly, and everyone needs it. This study aims to determine the effect of the internal control system on cash receipts at drinking water companies. This study uses a qualitative approach. The data is collected through interviews and documentation. The results showed the evaluation of the implementation of the internal control system on cash disbursements in the company. The internal cash control system for cash sales is sufficient for several functions, namely capacity functions, cash functions, accounting features, and the documents used, namely the sales function, cash function, and accounting function. The records used are cash income and inventory cards, internal controls, daily accounting records with accounting features, and cash functions to compare cash balances according to records with their sales. Physical cash, so they happen the same between the two

The Use of Statistical Methods in Croatian Enterprises During the Early Stages of COVID-19

Abstract The appropriate application of statistical methods in enterprises should have an important role in business decision-making processes. However, Croatian enterprises still tend to have certain resistance to statistical methods. The new challenges introduced by the COVID-19 pandemic emphasised the importance of conducting statistical analyses as support for making business decisions. In order to investigate the situation and attitudes towards the use of statistical methods, primary research was conducted in the form of a web survey on a sample of 768 Croatian enterprises, of which 40% use statistical methods in their business. The research revealed the level of statistical methods use in Croatian enterprises, demonstrated which statistical methods Croatian enterprises prefer, and defined who is most responsible for their use. Furthermore, the reasons for the use of statistical methods and the major obstacles to the use of more intensive statistical methods were also investigated. The results are described and discussed on an overall level and by considering the size of the enterprises.

Sustainable Agriculture through Data Analytics

There is an increasing need for sustainable agriculture in light of climate change and growing populations. Certified B Corporations meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose. This paper describes a student-learning project that develops an Environmental Management System (EMS) using data analytics to improve a family-owned farming business's decision-making process for efficient natural resource allocation, as well as the reporting requirements associated with their B Corp Certification. This project's primary resource is water reporting, but it may be expanded to include other resources.

DEVELOPMENT OF A CLOSED PRODUCT LIFE CYCLE AND THE “POLLUTER PAYS” PRINCIPLE IN THE CONTEXT OF THE CIRCULAR ECONOMY

With the current volumes of global consumption, the linear economic model of creating products with their further use and subsequent burial in landfills without taking into account environmental, social and economic consequences has proved to be ineffective and has caused a number of global problems. For sustainable development and the future, where waste is an asset and any value is restored, a circular economy model based on a closed product life cycle and the principle of extended producer responsibility, which have become the object of special attention of this study, has been actively formed in recent years. This article presents the main ways of recycling products and waste that meet the principles of sustainable development and the creation of a circular economy to achieve environmental safety, economic growth, environmental protection and social benefits.
 Objective: to develop a business decision-making process on the method of recycling products at the end of the life cycle as an integral part of the extended responsibility of the manufacturer for “closing the circuit” in the conditions of the development of the circular economy.
 Methods: general scientific methods of institutional, regulatory, economic analysis and synthesis of best practices and scientific literature within the framework of the modern concept of sustainable development.
 Results: methods of disposal of products at the end of use and waste are systematized, taking into account environmental, economic and social benefits, strategies of relations between the consumer and the manufacturer for the return of the product are correlated with circular business models, a business decision-making process for choosing a method of disposal of products at the end of the life cycle is developed.
 Scope of the results: the results of this study can be used by enterprises when implementing circular business models and expanding the responsibility of the manufacturer for the disposal of products at the end of its life cycle, by state authorities when forming a sustainable development strategy, as well as introducing a model of the circular economy of the Russian Federation to achieve climate neutrality and environmental safety, improve the welfare of citizens, economic efficiency and competitiveness of enterprises.