Managerial Decisions Research Articles

Implementation of the budgeting methodology and business planning based on risk assessment in a gas transportation organization

The authors have developed a methodology for budgeting and business planning, taking into account risk assessment, which allows to systematize the process of planning and making managerial decisions taking into account possible risks. The approach is based on an analysis of current and potential operational risks, as well as their integration into the budgeting and business planning process. The approbation of the methodology is carried out in a gas transportation organization.

The effects of integrated reporting quality: a meta-analytic review

PurposeThe effects of integrated reporting quality (IRQ) have been debated in increasing empirical studies. Several IRQ measures, different theoretical approaches and multiple contexts have been adopted and investigated, leading to mixed results. By using the meta-analytic technique, this study aims to contribute to the accounting literature, reconciling the conflicting results on the effects of IRQ and providing objective conclusions to complement narrative literature reviews.Design/methodology/approachA sample of 45 empirical papers from 2013 to 2022, with 653 effect sizes, was used to assess the effects associated with IRQ. The papers were clustered into five groups (market reaction, financial performance, cost of capital, financial analysts’ properties and managerial decisions) based on the different consequences of IRQ investigated in the primary studies. A random-effects meta-regression model was used to explore all sources of heterogeneity together.FindingsThe meta-regression results confirm that IRQ positively influences firms’ market valuation and financial performance and hampers opportunistic managerial behaviour by improving corporate transparency, mitigating information asymmetry and encouraging accountability. Moreover, differences in the study characteristics affect the strength of the relationship object of interest.Originality/valueThrough meta-analysis, this study provides a broader overview of the effects of IRQ by enhancing the generalisability of the findings. The results also pave the way for additional evidence on the outcome variables affected by the quality of integrated disclosure.

The Managerial Economics Implications Of Rupiah Exchange Rate Fluctuations On Investment And Corporate Growth

The managerial economics implications of Rupiah exchange rate fluctuations on investment and corporate growth are critical considerations for businesses operating in Indonesia's volatile economic environment. This study, conducted through an extensive literature review, explores the multifaceted impacts of exchange rate volatility on corporate decision-making and performance. Key findings indicate that fluctuations in the Rupiah increase investment risks and uncertainties, adversely affecting private sector investment and corporate growth. The review highlights that exchange rate volatility escalates production costs and diminishes profit margins, thereby impeding business expansion and competitive positioning in international markets. From a managerial perspective, effective risk management strategies such as hedging and portfolio diversification are essential for mitigating exchange rate risks. Additionally, efficient resource management and operational efficiency are pivotal in cushioning the adverse effects of currency fluctuations. The study underscores the importance of dynamic pricing strategies and financial instruments in stabilizing cash flows and sustaining growth amidst economic turbulence. This paper contributes to the theoretical and practical understanding of exchange rate impacts on managerial decisions and provides actionable insights for businesses to navigate currency volatility. Future research should focus on empirical analyses to validate the findings and explore case studies across various sectors to further elucidate the nuances of managing exchange rate risks in different business contexts.

STRATEGY FOR THE IMPLEMENTATION OF DIGITAL TOOLS IN THE PERSONNEL MANAGEMENT SYSTEM OF MEDICAL INSTITUTIONS

The purpose of thе study is to analyze and reveal the features of implementing digital tools in the human resource management system of medical institutions. Digitalization in this area is a relatively new phenomenon that enhances staff efficiency, optimizes management processes, and improves the quality of medical services. The results of the study indicate a significant potential for using digital tools in medical institutions. The implementation of the electronic medical records, telemedicine systems, analytical systems and artificial intelligence, patient relationship management systems, as well as Big Data and analytics systems significantly enhance the efficiency of personnel management. Electronic medical records improve the quality of medical services and optimize workflows. Telemedicine systems facilitate access to medical services, while analytical systems and artificial intelligence assist in identifying trends, predicting outcomes, and making managerial decisions. Additionally, digital tools enhance communication in healthcare, ensuring more effective interaction between doctors and patients through various online platforms and social networks. The implementation of digital tools in the human resource management system of medical institutions is a necessary and promising direction for the development. This allows for improved management efficiency, reduced staff turnover, increased professional level of employees, and ensures feedback and analytics. However, the realization of such innovations requires significant financial investments, which may be a limiting factor for many medical institutions. Further research should focus on identifying specific stages and models for the implementation of digital tools, as well as analyzing the economic feasibility of such innovations.

Do analysts’ gross margin forecasts influence manager's decisions to recognize inventory losses?

Do analysts’ gross margin forecasts influence manager's decisions to recognize inventory losses?

Subjective Well-Being of Chief Executive Officers and Its Impact on Stock Market Volatility During the COVID-19 Pandemic in Poland: Agent-Based Model Perspective

This study aimed to connect the behavioral corporate finance perspective (micro level) with complexity theory via agent-based modeling to analyze the impact of selected psychological factors of chief executive officers (CEOs) on stock market volatility (macro level). Specifically, we wanted to explore whether Polish CEOs’ subjective well-being (SWB) influenced their managerial decisions during the COVID-19 pandemic and how it might be related to the volatility of stock prices during this critical period in Poland. Our study was based on a survey of Polish CEOs who managed companies listed on the Warsaw Stock Exchange. In particular, 255 CEOs completed the Satisfaction with Life Scale, the Positive and Negative Affect Scale, and a business survey on the impact of the COVID-19 pandemic on company management. Using the results of this survey, we built an agent-based model to investigate how CEOs’ decision-making, stemming from their SWB levels, influences the perception of prices by individual traders and, in turn, how it is translated into aggregate stock market volatility. The results indicate the pathways through which the microscopic-level SWB of CEOs influences market price formation at a macroscopic level. The findings obtained from our model may shed new light on the rational expectations theory applied to stock market volatility during the financial crisis.

The impact of order fulfillment on consumer experience: text mining consumer reviews from Amazon US

PurposeThis research analyzes online consumer reviews and ratings to assess e-retail order fulfillment performance. The study aims to (1) identify consumer journey touchpoints in the order fulfillment process and (2) determine their relative importance for the consumer experience.Design/methodology/approachText mining and analytics were employed to examine over 100 m online purchase orders, along with associated consumer reviews and ratings from Amazon US. Using natural language processing techniques, the corpus of reviews was structured to pinpoint touchpoints related to order fulfillment. Reviews were then classified according to their stance (either positive or negative) toward these touchpoints. Finally, the classes were correlated with consumer rating, measured by the number of stars, to determine the relative importance of each touchpoint.FindingsThe study reveals 12 touchpoints within the order fulfillment process, which are split into three groups: delivery, packaging and returns. These touchpoints significantly influence star ratings: positive experiences elevate them, while negative ones reduce them. The findings provide a quantifiable measure of these effects, articulated in terms of star ratings, which directly reflect the influence of experiences on consumer evaluations.Research limitations/implicationsThe dataset utilized in this study is from the US market, which limits the generalizability of the findings to other markets. Moreover, the novel methodology used to map and quantify customer journey touchpoints requires further refinement.Practical implicationsIn e-retail and logistics, comprehending touchpoints in the order fulfillment process is pivotal. This understanding helps improve consumer interactions and enhance satisfaction. Such insights not only drive higher conversion rates but also guide informed managerial decisions, particularly in service development.Originality/valueDrawing upon consumer-generated data, this research identifies a cohesive set of touchpoints within the order fulfillment process and quantitatively evaluates their influence on consumer experience using star ratings as a metric.

Examining the Social Consequences of Automation and Artificial Intelligence in Industrial Management

This article examines the social consequences of automation and artificial intelligence (AI) in industrial management, drawing on the findings of Damioli, Van Rooy, and Vertsy’s (2021) study on the impact of AI on labor productivity. The integration of AI technologies in industrial settings has led to significant improvements in efficiency and productivity. However, these advancements come with substantial social implications that affect both the workforce and broader societal structures. Internally, automation and AI have shifted the demand from low-skilled to high-skilled labor, necessitating ongoing education and skill development for employees. Additionally, the reliance on AI for managerial decisions raises ethical concerns regarding algorithmic biases and the potential erosion of human judgment.Externally, the broader societal impact includes economic disparities, as regions with a high concentration of low-skilled jobs experience greater unemployment and underemployment. The displacement of workers due to automation presents challenges such as increased socio-economic divides and disruptions to community stability. Ethical considerations, including data privacy and security, are crucial to ensuring fair and responsible AI deployment. This article underscores the need for strategic collaboration between industry leaders, policymakers, and educational institutions to address these social consequences. By fostering an inclusive approach to technological advancement, it is possible to balance the productivity benefits of AI with the imperative to mitigate its adverse social impacts.

Digital Green Finance Architecture in the Context of Green Deal Implementation: Modern Fintech Tools and Solutions Under the Sustainable Development Concept

Objective: The purpose of the article is to develop a scientific and applied toolkit, which is a set of a logically informationally and algorithmically interconnected means of the information-analytical support of green financing within the Green Deal under the sustainable development concept. Theoretical Framework: The study is based on the Paris Climate Agreement, the European Green Agreement, and the concept of sustainable development. Method: To achieve the defined goal and solve the set tasks, a system of general scientific and special research methods was used. Results and Discussion: The author’s vision of the ecosystem model of the green financing is presented. The main trends of the global green bond market are identified; the parameters of the digital financing markets are estimated. The management decisions on accelerating the capital attraction and activation of green financing, ensuring the balance of the regional financing opportunities in the face of the global challenges are systematized. Research Implications: The important role of the state impact on the creation of the favourable conditions for the climate finance expansion by reducing the political, regulatory, control, macroeconomic and business risks has been established. It was established that the political stability, the consistent and clear regulatory framework, the agreed green financing policy and the openness to the international investors create the attractive conditions for the climate finance conditions. Originality/Value: Applying the author’s developments will create a basis for making the substantiated managerial decisions to the accelerated involvement of the capital in the green financing under the sustainable development concept.

The evolution of accounting and auditing in the era of digital technologies: the role of cloud services and process automation

Introduction: the rapid development of the digital economic space in Ukraine has made digitising the accounting system a paramount issue. Ukraine’s integration trend into the European economic sphere has also contributed to this situation. Objectives: this research aims to analyse the current role of digital transformation tools in optimising the accounting system. Method: the study employed general methods of scientific inquiry, including analysis and synthesis, induction and deduction, abstraction, concretisation, and formalisation. Results: the research established that digital accounting transformation is an obligatory optimisation stage in developing the modern business environment. The analysis considered the feasibility and potential of implementing innovative artificial intelligence capabilities in accounting while ensuring adequate security measures. It was concluded that modern digital tools offer opportunities to streamline the collection and aggregation of accounting information through specialised industry software products. The identified risks associated with implementing artificial intelligence technologies into information systems were discussed. Conclusions: the study demonstrated that intensifying the integration of digital technologies into accounting processes can increase managerial decisions’ accuracy and efficiency.

Managerial decision horizon and corporate greenwashing: Evidence from China

Managerial decision horizon and corporate greenwashing: Evidence from China

The evolution of Internet of Things (IoT) research in business management: a systematic review of the literature

PurposeThis paper systematically reviews the evolution of Internet of Things (IoT) research in business and management over the past decade and a half. It synthesizes current knowledge, identifies major themes, gaps, and future opportunities to guide scholars on potential research directions within this exponentially growing domain.Design/methodology/approachA structured systematic literature review methodology filtered IoT publications across business/management journals using Scopus database. Detailed thematic and bibliometric analyses chronologically mapped the progress of peer-reviewed articles from 2005–2023. Both quantitative metrics and qualitative coding inductively revealed historical trends, topics, applications and research implications.FindingsAnalysis uncovered six primary IoT research themes - business models, technology, data, customers, organizations, and sustainability. Dominant focuses were found on technological enablers, business model innovation and customer experience transformations. While technical aspects are well-documented, strategic technology integrations and organizational change management require greater emphasis.Research limitations/implicationsFocus restricted to academic articles published in management journals risks missing relevant papers published in other fields. Screening process involved some subjectivity. Lacks geographic analysis of research contexts. The rapidly evolving nature of technology domain risks findings’ generalizability.Practical implicationsKey enablers and success factors that we identified may support managerial decision making when it comes to IoT adoption.Social implicationsWe discuss advancing IoT innovation through ethics and sustainability lenses and these may help ensure responsible adoption.Originality/valueThis analysis weaves together the extant literature and offers an evidence-based research agenda for management scholars by chronicling the state, evolution, influential factors, and future opportunities within IoT literature. It highlights major thematic shifts and priority gaps to address.

Using Real Options and Geometric Brownian Motion Methods to Evaluate Petroleum Projects in Indonesia

There are several methods for evaluating the value of a project. The most commonly used method is the Discounted Cash Flows (DCF) method which is more practical in its use. However, the DCF method still has several weaknesses, including not paying attention to the flexibility of the manager's decision-making when the project is carried out. The Real Options method enhances this by offering more flexible and varied models. This study uses Benninga's version of the binomial method to evaluate the value of petroleum projects with the characteristics of existing companies in Indonesia. In this study, oil prices are assumed to move following the Geometric Brownian Motion (GBM) model which is commonly used in modeling the movement of a fluctuating price. In addition, the author also modifies the binomial model by including expansion options, divestment options and a combination of both. The results of this study show that the more options that managers can choose in decision-making, the greater the opportunity for the company to optimize profits and minimize losses.

Managerial decisions and team performance: Evidence from professional elite soccer

AbstractHow do managerial decisions influence team performance? Using tournament data from four sources on 76 managers coaching 34 teams in 1580 matches covering 10 seasons of the Italian male soccer premier league, we provide field evidence on the impact of managerial perseverance in playing style and risk aversion on team performance. We document that managers' perseverance is positively related to team outcomes. Our core findings are robust to a battery of checks. By shedding light on key features of decision‐making in a high‐powered incentives industry with frequent feedback, our results help qualify the “managers matter” view advanced in prior research.

О НЕКОТОРЫХ СОВРЕМЕННЫХ ТЕНДЕНЦИЯХ НЕЗАКОННОГО ОБОРОТА НАРКОТИКОВ НА ТРАНСПОРТЕ И ОБЪЕКТАХ ТРАНСПОРТНОЙ ИНФРАСТРУКТУРЫ

The strategy of the state anti-drug policy of the Russian Federation for the period until 2030 (herein-after referred to as the Strategy) provides for the implementation of a multi-factor model carried out by subjects of anti-drug activities in order to reduce the availability of drugs for illicit consumption, re-duce illicit drug trafficking, and create a conscious negative attitude towards illicit consumption in so-ciety drugs and participation in their illicit trafficking. Considering that drugs are moved and sold through the use of transport, postal items, transport and logistics infrastructure, internal affairs bodies in transport (hereinafter referred to as OVDT) should be given one of the leading roles in the practical implementation of measures to prevent drug trafficking. The article contains the results of a study of statistical indicators of the Federal State Institution «GIAC of the Ministry of Internal Affairs of Russia» for the period 2019-2023, empirical and theoreti-cal material, the analysis of which made it possible to identify current trends in drug crime in transport and transport infrastructure facilities. The conclusions reached by the author demonstrate the current state and trends of crime in the field of drug trafficking (hereinafter – NON) in transport and transport infrastructure facilities; substantiate the need for organizational and managerial decisions to improve the quality of inspection activities; state the expediency of considering the issue of improving legislation regulating the implementation of freight forwarding activities, and also, strengthening operational and investigative cooperation.

Water Quality Index by Multivariate Statistical Technique to Estimate the Temporal Decay of the Watercourses

Objective: This study aims to add some variables that characterize the water quality in a water quality index (WQIacp), observing the events of precipitation and land use watersheds. Method: The water samples were characterized in 180 local rivers, and they were monthly analyzed. To ellaborate the WQIacp, a multifactorial analysis statistic and the weighted least squares method were used. Results and Discussion: The first factor explained 42.68% of variance, and variables apparent color and total coliform variables showed higher scores in the formation of the WQIacp. According to the analysis, it´s observed that there is a strong correlation between areas that have higher rates of remaining with the municipalities that have a better WQIacp. Cluster analysis of the municipalities, considering the remaining native vegetation, shows that in the extreme north of Goiás are the cities with the largest reserves. In central and southern part of the state lie the most deforested municipalities. Finally, in the northwestern, part of central and southern of Goiás State, are those cities that present inequality related to the the amount of native vegetation. The worst WQIacp indexes for municipalities evaluated, -1.00 and -0.96, are in the center of Goiás, in Meia Ponte River and João Leite River, respectively, near the city of Goiânia, while the best is in northern of Goiás, 0.68, in Campos Belos in Santa Tereza River. It is still observed that for all the years analyzed, there is an improvement in water quality in the dry season. The average rates grow from April on and get lower from October on, in the beginning of the rainy season. This loss of water quality during flooding is represented mainly by varying color, total coliforms and turbidity, which have scores 0.200, 0.187 and 1.179, respectively. Research Implications: The creation of a water quality index helps in diagnosing and comparing the quality of water sources, facilitating decision-making by managers of Sanitation Concessionaires. Originality/Value: This study contributes to the literature, proposing a methodology based on descriptive statistics to create a water quality index, which can assist managers in decision-making.

Features of Company Management in the Field of E-Commerce

The relevance of the research topic is due to the increasing spread of e-commerce. For the effective development of a company in this area, a strategy with certain features is necessary, and the purpose of the study is to determine the author’s concept of its development. The article reflects the most important stages of this process, defines the main competencies of developers. When forming the strategy, the following aspects were taken into account: a short period of time allowed for making managerial decisions; the need for highly qualified personnel developing a strategy, carrying out promotion and contacting the consumer, as well as the fact that innovations, the search for free markets serve as a source of development for e-commerce companies, which corresponds to the strategy of the “blue ocean”. The study was carried out using methods such as analysis and synthesis, induction and deduction, a systematic approach the authors analyzed an array of scientific publications on the topic under study. The results of the work are of practical value for specialists involved in strategic planning in the field of e-commerce, as well as for the researchers and students interested in the issues discussed in the article.

Geographic industry concentration and asymmetric cost behavior

AbstractThis research diverges from the existing literature on cost stickiness by examining the relationship between a firm's geographic proximity to industry peers, termed industry co‐location, and its asymmetrical cost behavior. We propose that managerial decisions regarding resource adjustment are influenced by the state of resource markets in the firm's vicinity, hypothesizing that a high concentration of industry peers triggers downward asset price spirals during simultaneous resource liquidation. Additionally, we anticipate that industry‐wide demand exceeding fixed capacity exacerbates congestion costs, thereby diminishing bargaining power in local resource markets. We predict that heightened resource adjustment costs linked to industry co‐location discourage managers from reducing capacity commitments, thereby increasing cost stickiness. Our findings support this prediction, demonstrating a positive association between industry co‐location and cost stickiness. Moreover, we observe that cost stickiness intensifies when closely located industry peers experience declines in sales. This paper provides initial evidence illuminating the impact of industry co‐location on cost stickiness and suggests managerial implications to prevent costlier capacity adjustment through local resource markets.

Response satisficing and data quality in marketing: measurement and effects of satisficing on objective knowledge, experimental results, and replicability of findings

ABSTRACT While crowdsourced data are often used in marketing research, there remain concerns about the validity of data sourced from crowdsourcing platforms such as Amazon’s Mechanical Turk (MTurk). Across two studies using different data sources and respondent screening strategies, this research examines how an explicit measure of participant response satisficing can adversely impact theory-driven research findings and the applied conclusions drawn. Findings demonstrate that respondent satisficing level and the degree of its effects are a significant threat to the integrity and validity of marketing and consumer research. Implications are offered concerning managerial decisions, tests of theory, and consumer research and well-being.

Strategies for developing hard skills in higher education students through innovative pedagogical technologies in realistic professional environments

Introduction: the global emphasis on developing hard skills, essential for professional competence in digital optimization, has led to a focus on practical skills like foreign language proficiency, programming, and data analysis. These skills, acquired through education or experience, are crucial across various professions, especially in the digital era, where innovative pedagogical methods are key.Objectives: this study aims to analyze the impact of innovative pedagogical technologies on developing hard skills, particularly foreign language competence, in higher education students, simulating real-world professional environments.Methods: the study employs a range of general scientific methods, including analysis, synthesis, induction, deduction, formalization, and generalization. These methods help identify and describe the development of hard skills and digital competence, focusing on innovative pedagogical strategies.Results: the findings highlight a structural-functional model for professional training in the digital labor market, emphasizing interdisciplinary integration, professional training alignment with market needs, and the use of innovative technologies. Key skills identified include financial management, software development, and foreign language proficiency, essential for making informed managerial decisions in a globalized world.Conclusions: the integration of innovative pedagogical methods, such as incidental learning and argumentation, enhances the development of hard skills, particularly English language competence. The study underscores the importance of creating learning environments that closely mirror professional conditions, thereby improving the quality of education and preparing students for the demands of the modern labor market. Future research should focus on refining digital tools and methodologies to further enhance language skills and overall hard skill development