IT Companies Research Articles

Transfer Pricing in the Post-BEPS Era: the BEPS Package, as a Tool in Helping Tax Authorities Prevent Aggressive Tax Optimization in a Specific Sector. Case Study: the IT Industry in Romania

Abstract The debate regarding the willingness of enterprises to use transfer pricing for tax optimization is one with significant history (the first OECD report on transfer pricing dates from 1979). In the last fifteen years, this topic gained great traction as globalization became a key word in all economic undertakings. In 2013 the OECD/G20 officially launched the BEPS project, aimed at identifying and closing any loopholes present in the taxation system used by companies to optimize their tax burden. The work was finalized in 2015 by issuing the BEPS Package. However, the fight against base erosion and profit shifting did not end, as the OECD/G20 periodically monitors how the measures are implemented. Considering the importance of the IT sector in Romania, it is significant to investigate if the BEPS Package is an efficient tool in helping Romanian tax authorities prevent aggressive tax optimization in this industry. To provide a tentative answer, a statistical analysis was performed, aimed at comparing the profitability of related and non-related Romanian IT companies. Although the BEPS Package is not the only factor influencing the behavior of taxpayers, the work of OECD/G20 is one of the main forces shaping the Romanian taxation environment. Following the analysis, no significant differences were identified between the profitability of related and non-related companies, leading to the conclusion that local taxpayers are not inclined to engage in aggressive tax optimization, which is also a consequence of the way in which the legislation was drafted, influenced by the BEPS Package.

Impact of metamorphoses from desk to E-commute – an acumen of professionals: A cross-sectional study

ABSTRACT Introduction: The deadly pandemic COVID-19 has brought the world to a standstill. Due to worldwide lockdown, economy was severely compromised. Everyone was in fear of the consequences that would be faced. Many unprecedented changes happened because of this pandemic. People confined themselves at home to maintain social distancing and mitigation of risk factors. This posed many challenges to the individuals or work force with, and many times the work was compromised. Objectives: To explore the current and changes in work pattern and to assess the overall quality of life of professionals working from home. Materials and Methods: A cross-sectional study was conducted by circulating a structured questionnaire through online platform. A snowball sampling method was adopted. Totally, 520 respondents participated in this study. Results: Out of 520 participants, males accounted for 57.9% and 41.3% were females. Majority (45.8% males and 40.9% females) were engaged in the software or IT companies. A higher proportion of males were engaged in administration (6%), architecture (10%) and transportation (5.3%) sector, whereas more females were engaged in finance (10.7%) and law (3.3%) sector. 73.1% males worked for more than 12 hours a day in contrast to only 26.9% of females. As the working hours are reducing, the overall quality of life of the participants was increasing significantly with P = 0.008. For those with moderately increased work-life balance, near about half of the participants had overall quality of life between 50 and 75% (P < 0.001). Conclusions: In order to increase efficiency at work place, definite laws should be in place to protect the mental as well as overall well-being of professionals working from home. Elaborative research in this field is required in order to generalize the results.

History of a decline: The Federconsorzi case

Introduction: The paper focuses on analyzing the causes of the crisis of an Italian company in the early 1990s. Aim of the work: The aim of this paper is to analyze the causes that led to the crisis of Federconsorzi to identify the decision-making errors and incorrect accounting, management, and regulatory practices that compromised its operations. In addi-tion, special attention will be given to the individuals who operated in that organi-zation, which was unique worldwide, and who, through their actions, enabled the achievement of the corporate collapse. Methodological approach: The work is based on an enriched version of the "fraud triangle" to correctly identify the activities and individuals involved in the Feder-consorzi crisis. Main findings: The case was analyzed to find that the fraud triangle theory, even modified from the most recent literature, does not consider certain elements that, on the other hand, proved to be diriment in the case analyzed. Originality: The paper provides a broadening of knowledge on issues related to business crises and the factors and elements that can play an important role in the process of deterioration of key business economic quantities.

Institutional isomorphism and quality of gender disclosure. The Italian case

Purpose: Non-financial reporting (NFR), including gender disclosure (GD), is a tool companies use for institutional legitimisation and represents an organisational field that evolves due to regulatory and stakeholder pressure. This research uses the theoretical approach of institutional isomorphism in the context of neo-institutional theory to investigate GD's degree of maturity (quality and homogenei-ty) in a homogeneous institutional context. Design/methodology/approach: This paper adopts a qualitative research meth-odology based on a content analysis of the GD resulting from the NFRs of listed Italian companies in 2016 and 2021. Findings: The results show the degree of institutionalisation achieved through GD after introducing the mandatory NFR. The analysis reveals companies' conver-gence process in terms of isomorphic behaviour and changes in the quality of GD. The findings unfold the institutional pressure that has the most significant impact on the quality of GD, fostering a homogenisation of disclosure at the company level. Originality/value: This is the first study to assess isomorphism and its effects on the quality of GD. This research enriches the literature on institutional theory by analysing the impact of different isomorphic forces on GD. Practical implications: This paper assists policymakers, supervisors, and investors in evaluating the quality of GD and identifying the issues leading to the most critical matters and inefficient or non-transparent behaviours. The findings improve regulatory quality, information control, and assessment of the appropriateness and reliability of the NFR. The implications guide regulators in identifying stand-ards and tools that enhance strategies regarding gender diversity and performance disclosure.

The Power of Habits: Understanding the Impact of Personal Values and Attitudes on Customer Food Choices and Sustainable Eating Behaviours

This study examines how habits affect consumer’s food preferences and sustainable eating practices. The study uses quantitative data to examine the relationship between individual values and attitudes toward consumer food preferences and sustainable eating practices and also uses structural equation modeling from the sample of three hundred people from four IT companies. According to the study's findings, consumer food preferences and sustainable eating habits are significantly influenced by personal beliefs and attitudes. Additionally, the findings imply that practices strongly influence consumer food preferences and sustainable eating behaviors. According to the results, businesses should prioritize changing consumer behavior to encourage long-term sustainable eating habits. Overall, this study advances our knowledge of how habits might affect consumer’s food preferences and sustainable eating practices.

What is the purpose of eco-corporate social responsibility in Italian companies?

What is the purpose of eco-corporate social responsibility in Italian companies?

Top managers' media selection and interaction goals in e-leadership

PurposeDrawing on media richness theory and a framework of interpersonal communication goals, this study investigates how and why the IT industry's top managers use communication media to achieve their interaction goals in e-leadership.Design/methodology/approachA qualitative research approach is applied to understand top managers' communication media use and interaction goals. The empirical data were gathered through semi-structured interviews with 33 top managers from large IT companies and analysed using theory-guided thematic and ideal-type analyses.FindingsTop managers were categorized into three types, based on their communication goals through face-to-face communication. Relationship-oriented top managers pursued relational and communal goals, whereas task-oriented ones wished to achieve instrumental and communal goals. Task- and relationship-oriented top managers pursued relational, instrumental, and communal goals. This study indicates that communal, instrumental, relational, and self-presentational goals influence managers' communication media selection.Originality/valueThis study brings new knowledge to the management communication research field. It expands the framework of interpersonal communication goals by identifying communal goals as a new category, in addition to existing instrumental, relational and self-presentational goals. This study suggests that media richness theory could be advanced by recognizing that a broader set of communication goals – including communal, instrumental, relational, and self-presentational – influences managers' communication media selection.

Development of a business model to improve the efficiency of hiring new employees to IT companies

The object of the research is the process of increasing the efficiency of hiring new employees to IT companies, which is considered as one of the measures of continuous improvement of IT project management processes. Hiring talented and motivated IT specialists is seriously complicated nowadays due to the oversaturation of the labor market in the IT industry with candidates who are either exclusively financially motivated or have a low level of qualifications. The consequence of this problem is an increase in time and money spent on identifying and selecting for further processing a subset of resumes of specialists who will be relevant to the needs of the IT company. Therefore, the study of models of active strategies for conducting career guidance activities among future candidates for work in the IT industry is relevant. The purpose of the study is to create a business model for professional orientation of candidates for positions in IT companies. This business model should combine the advantages of basic business planning models and flexible business development methods, taking into account the peculiarities of the process of professional orientation in the IT industry of Ukraine. As a basis for this business model, it is proposed to use the Business Model Canvas. Within this model, to increase the flexibility of activities related to the presentations of IT professions, it is proposed to use the Walt Disney method. During the research, Walt Disney's derivative method was modified by abandoning his first stage use of the role of the Dreamer and instead using the role of the Optimist. A person in the role of an Optimist should determine the advantages, positive aspects, favorable opportunities of the presentation object, etc. The results of the modification of Walt Disney's method were used during the development of the Business Model Canvas for the process of increasing the efficiency of hiring new employees to IT companies. The key activities of the Business Model Canvas were determined, the sequence of their implementation was established, which allows eliminating the shortcomings of individual activities.

THE IMPACT OF COVID-19 PANDEMIC ON IT COMPANIES’ INNOVATION ACTIVITY IN THE USA

The study analyzes the impact of COVID-19 pandemic on such innovative activity indicators as R&D spending and the number of international patents of American IT companies. The sample includes 130 US companies from 2010 to 2021. The data are analyzed using the models with fixed individual effects and robust errors, Tobit and Heckman models. According to the findings R&D/Sales ratio has not changed during the pandemic. However, R&D expenditures increased during the pandemic for highly innovative firms and companies from the technology equipment sector increased analogue capitalized R&D. Besides, firms that had international patents before the pandemic granted more patents for registration during the pandemic. A one-year lag was found between innovations’ input in the form of R&D investment and innovations’ output in the form of international patents. These findings allow us to conclude that COVID-19 has a positive impact only on highly innovative companies in the United States.

The Dynamics of Human Capital Development, Employee Commitment, and Sustainable Competitive Advantage: A Strategic Perspective

The purpose of this study was to see the impact of “strategic human resources management (HRM) practices” on achieving “competitive advantages” that will be long-lasting, as well as the contribution of “human capital development” and “employee commitment” in information technology sector. IT sector works to establish, preserve, and perpetuate their competitive advantages, similar to other corporate organisations. The data were collected using questionnaire method and this study was conducted on 277 randomly selected employees working in different reputed IT companies. To achieve the objective of the study primary and secondary data were used and were analyzed using descriptive statistics, exploratory factor analysis, confirmatory factor analysis, mediation analysis and likewise using AMOS 22.0, SPSS23. The results of the study showed a linear and favourable relationship between strategic HRM practices and sustainable competitive advantage (SCA). Strategic HRM was also found to positively influence human capital development and employee commitment of the IT sector firms. This study further suggests IT sector to prioritise human resources management in their businesses, which will improve human capital development by allowing staff members to acquire implicit expertise that will be challenging and difficult for the rivals to mimic and also add to the literature on sustainable competitive advantages, employment, and human capital development. The finding highlights about IT sector management as well and also the results made an additional argument for employee commitment to achieving a sustained competitive edge. The study further suggested some theoretical and other implications for researchers as well.

Role Of Psychometric Methods In Recruitment And Selection: A Study Of IT Companies In Hyderabad

Role Of Psychometric Methods In Recruitment And Selection: A Study Of IT Companies In Hyderabad

The Role of Human Resource Management in Conducting CSR at an IT Company in Indonesia

This study delves into the role of Human Resource (HR) department in corporate social responsibility (CSR) initiatives at PT Sigma Cipta Caraka (hereinafter: Telkomsigma). Through a qualitative analysis, the current practices of human resources concerning the corporate social responsibility programs at the company were scrutinized. The results indicate that the management of these programs predominantly falls under the purview of the Corporate Communications department, with minimal engagement from HR department. To enhance the efficacy of the program initiatives and cultivate a more cohesive approach to CSR within the organization, fostering collaboration between HR and Corporate Communications is imperative. By bridging these departments and aligning their efforts, Telkomsigma can optimize the impact of its CSR endeavors and reinforce its commitment to sustainable and socially responsible practices. This study underscores the significance of interdepartmental cooperation in driving meaningful the CSR outcomes and advancing the company's overarching goals of community engagement and environmental stewardship

Implementation of a Customer Relationship Management Information System in the Activities of an IT Company Using the Example of Trust LLC

The main topic of the work is the implementation of a customer relationship management information system in the activities of an IT company. The object of the study is TRUST LLC. The problem that the work solves is the need to optimize the customer relationship management process to increase the competitiveness and efficiency of the company in the IT field. The purpose of the work is to analyze the possibilities and effectiveness of implementing a customer relationship management information system using the example of the activities of TRUST LLC and offer recommendations for its use. The results of the work include an analysis of the current situation in the company, an assessment of the capabilities and advantages of using the information system, as well as the development of recommendations for using this system to optimize the customer relationship management process. As a result of the implementation of the information system, it is expected to improve the quality of customer service, improve the analysis and forecasting of their needs, as well as optimize business processes within the company.

Analyzing the effects of digital transformation on handling human resources management

In the contemporary business landscape, digitization has become imperative for competitiveness. Despite the perspective of employees regarding the accessibility of electronic human resource management (e-HRM), their ability to adapt to the digital age still causes many problems. This study explores employee understanding of digital transformation within the HR department of an IT company and identifies priority processes for automation. The research addresses the ambiguities in the literature, focusing on the rapid technological advances of Industry 4.0. Through semi-structured interviews, we reveal new perspectives directly from HR employees. The results indicate the need for strategic approaches to ensure efficient processes and traceability. Recommendations include integrating an integrated strategy of digital solutions. Anticipating future needs alongside present needs is crucial for sustainable digitization strategies, improving competitiveness in the digital age.

Role of Artificial Intellengence in the Recruitment Process with Special Reference to Selected it Companies

Artificial Intelligence playing an important role in IT recruitment. In recent days most of the IT companies giving importance to AI to ensure and effective recruitment process to select an efficient and qualified people. The present paper analyses the role of AI i.e., Artificial Intelligence in IT companies. The present analysis selected three top IT companies in India and examined the role of AI in their recruitment process. The papers examined the different factors which are linking to both recruitment process and IT industry. The present paper collected the opinions of employees working in three different companies and evaluated the importance of AI in recruitment process in IT industry.

Structural change and productivity revolutions: Some hints from the Italian case, 1979–2016

AbstractThe reallocation of resources between sectors is classically regarded as the engine of long‐term growth. The different technological opportunities and the inherent levels of productivity that characterise each sector explain why changes in sectoral composition trigger development processes. Conversely, in the short run, productivity growth is associated with differentiation processes among firms operating in the same industry. The recent debate on the decline in Italian productivity has mainly focussed on short‐term interpretations. Using a new dataset on the largest Italian companies between the 1970s and the 2010s period, the paper examines the role of structural change in determining productivity changes.

A Study on Corporate Social Responsibility and Financial Performance In the IT Companies

The field of corporate social responsibility has grown exponentially in the last decade. More than half of the Fortune 1000 companies issue corporate social responsibility (CSR) reports. A larger number of companies than at any time previous are engaged in a serious effort to define and integrate CSR into all aspects of their businesses. An increasing number of shareholders, analysts, regulators, activists, labour unions, employees, community organizations, and news media are asking companies to be accountable for an ever-changing set of CSR issues. There is increasing demand for transparency and growing expectations that corporations measure, report, and continuously improve their social, environmental, and economic performance .There has been a growing of concern for the environment and social issues. More people are becoming aware of the effect they can have on the planet . The public pays attention to the different social initiatives taken by companies. Companies are quickly beginning to realize that to have a competitive advantage on the market they need to invest more in social issues. This is evident in the steady growth of social and environmental disclosures. Companies are becoming more transparent regarding how they are being socially responsible. Consequently, this growing concern for our environment has led to a growth in the study of corporate social responsibility (CSR). One area of focus in this field is the effect of CSR on financial .

Plastic Versus Bioplastic as Packaging for Sanitary Products: The Environmental Impacts Comparison

ABSTRACTPlastic or bioplastic? Which is the least impactful flexible packaging solution for the environment? In literature, few works try to answer this question, and most of them are focused on food packaging applications, comparing only polylactic acid (PLA) with polyethylene terephthalate (PET) or other virgin plastics. Besides these lacks in the literature, this work aims at contributing to the scientific knowledge, helping in the meanwhile packaging companies to choose the best solution also for hygienic and sanitary applications as far as the environmental impact is concerned. The study is focused on the life cycle assessment of four solutions made of maize starch, PLA and polybutylene adipate terephthalate (PBAT), low‐density polyethylene (LDPE) and a recycled LDPE (R‐LDPE). The functional unit was a flexible packaging containing 10 sanitary towels. Primary data were retrieved thanks to an Italian company, whereas secondary data were extracted from the Ecoinvent 3.7 database. The SimaPro 9.4 software has been used to calculate the global warming, water consumption, acidification and abiotic depletion of elements and fossil fuels of each packaging solution. The results show that the raw materials and packaging production are the most impactful phases during the life cycle of plastics and bioplastics packaging, if compared to the distribution phase, the auxiliary materials involved and the final disposal. Great benefits could be gained using recycled plastics, which allow to reduce the extraction of virgin materials and overall appear as the best solution from an environmental point of view to package also sanitary products.

Effectiveness of Tax Benefits for Information Technology Organizations in Russia

The subject of the study is a set of measures of tax incentives for the information technology industry in the Russian Federation — “tax maneuver in IT”, launched from the beginning of 2021. The purpose of the study is to identify and qualitatively assess the stimulating effect of the tax maneuver in IT, which is expressed in changes in key financial and natural performance indicators of IT industry organizations, and to develop proposals on ways of tax incentives for the development of the industry. The article describes the distortion of the aggregate tax reporting characterizing the IT industry, which takes into account not only recently established IT organizations, but also “nominal” separates from large organizations IT subdivisions or technically clarified classification code, making it inappropriate to use such reporting as a basis for analysis and reliable conclusions. Based on the data of the public financial statements of selected sample from the top-100 Russian IT organizations, the article analyzes the dynamics of financial indicators of their activities, among which are the profiles of profiles, operating profit, net profit, investment in basic assets, the number of staff, the amount of products supplied for export, the capitalization of the company. The observation was conducted for 2017– 2022 and covers the periods both before and during the engagement of tax benefits. A comparative study was carried out with similar indicators of the organizations of the “control group”, which included IT companies operating in other countries that were not affected by such tax benefits. According to the results of the study, small or no extra growth was observed in key financial indicators of IT organizations due to the tax maneuver compared with the “pre-maneuver” period and compared with the indicators of the control group. It is concluded that there is no evidence of a significant impact of the tax maneuver on the development of the IT industry in Russia. We proposed dismantling of the “maneuver” and transition, based on the Chinese and some EU countries approaches, to taxation of the qualified profit. The latter is the profit of Russian and foreign IT developers from the localization of IT development and value creation in Russia. The achievable effective rate is 2.5%.

Regional features of the tax burden of IT companies in the context of increasing their sustainability

This article characterizes the dynamics of the tax burden of Russian IT-companies as a key factor in their economic sustainability. This study aims to determine regional characteristics of the level of tax burden in the field of information techno­logy in order to identify best practices with the possibility of further replication of successful experience. To achieve this goal, an analysis is carried out of changes in the tax burden in the post-COVID period compared to 2019. Particular attention is paid to the dynamics of the tax burden depending on the scale of enterprises. The results show that the trend of reducing the tax burden in the post-COVID period is not stable for all Russian regions. The low level of tax burden is associated not so much with the industry of activity (in particular, with the field of information technology), but with regional characteristics (the creation of tax preferences in certain territories). Currently, state support for business through tax methods is aimed more at supporting certain regions and not the sphere of IT. The most typical scale of enterprises in the information technology sector, demonstrating a minimal tax burden, assumes revenue from 30 to 120 mln rubles a year. Such scaling of business in this area allows not only to use tax preferences established by the current Russian tax legislation, but also to find resources for organizing effective tax planning.