Business Reality Research Articles

Using Scrum in Solving Business Reality Cases

Objective: This teaching innovation proposal aims to dynamise and bring the teaching of the subject Business Management and Organisation, taken in the fourth semester of the bachelor’s degree in Business Administration and Management (GAD), closer to the business world. Theoretical Framework: It is necessary to bring the university closer to business in order to reduce the gap in the skills training demanded by companies and to achieve better employability of graduates. Method: To do this, we propose the resolution of a production case by workshops, through the formation of agile teams, using Scrum and Kanban, using the Trello application for the latter, the iterative and incremental approach of this methodology will allow the student to learn in a simple and practical way concepts that grow in complexity, as it evolves in the resolution of the same. Results and Discussion: This teaching methodology allows the student to simultaneously acquire the specific competences of the subject and the so-called soft competences demanded by the working environment. Research Implications: This type of innovation is necessary in university institutions in order to include in their curricula the competences demanded by recruiters, and can also be used in other disciplines and careers. Originality/Value: The originality of the research lies in the practice of a learning process that makes it possible to include the training required by companies in curricula.

BUSINESS DISCOURSE AS AN ILLOCUTIONARY ACT

This article offers a comprehensive view of business discourse as a series of illocutionary acts, drawing on key theories and examples to illustrate the concept’s relevance in business communication. Also, in this article, illocutionary acts of business discourse have been viewed as a series of assertives in business communication, directives and their role in business, commissives and commitments in business, expressives and corporate culture and declarations and changing business realities.

A novel profit-driven framework for model evaluation in credit scoring

Credit scoring is a prominent problem in machine learning (ML). ML classifiers used to assess creditworthiness need to be evaluated using appropriate metrics. Common metrics fall into two categories: cost-sensitive and traditional cost-insensitive. Traditional cost-insensitive metrics like accuracy and area under the curve (AUC) have several drawbacks. They can be difficult for managers to understand, potentially misleading in certain scenarios, and often overlook the business realities of credit scoring. Conversely, existing cost-sensitive metrics are imperfect, leading many studies to rely on classic AUC metrics. In this study, we introduce the expected profit ratio (EPR), a novel framework for evaluating classifiers in credit scoring. EPR does not require a base scenario and accurately calculates the profit. Its flexibility makes it suitable for all types of credit-scoring problems, and its simplicity aids in comprehension and explanation. By enabling accurate profit calculation, EPR helps managers, executives, and administrators make informed decisions and investments. This metric lays the foundation for more sophisticated and precise model evaluation and comparison in credit scoring. Additionally, it can be used as a performance measure, alongside fairness and other criteria needed to achieve trustworthy artificial intelligence (AI).

Pengaruh Alkitab terhadap Natal dan Implikasi Realitas Bisnis di Indonesia

Christians believe that Christmas is a season to glorify the birth of Jesus Christ. However, the Christmas celebration is an issue intertwined with business realities. Researchers argue that the influence of the Bible intersects with Christmas. Nevertheless, some people use Christmas as a field to implement businesses that seek huge profits for personal satisfaction, thus creating social problems on the other side. This research aimed to analyze the Bible’s influence at Christmas and its implications for business realities in Indonesia. This research used a qualitative research method based on a literature review from a sociology of religion perspective. Researchers used scientific articles, proceedings, and books related to the research variables. This research showed that the Bible does influence Christmas. However, the Christmas atmosphere has implications for business realities that give rise to the spirit of capitalism. In this case, the social problems that occur are pressure and suffering. In essence, Christians reconstruct and rethink the nature and meaning of Jesus Christ’s birth in the Bible. Researchers provide scientific solutions, namely the actualization of celebrating Christmas humanistically in Indonesia.

The influence of ESG score on financial performance: Evidence from the European health care industry

AbstractCompany managers are increasingly recognizing that sustainable practices are not just ethical imperatives but potential drivers of long‐term value. To determine the degree to which this is grounded in business reality, a growing body of empirical studies have examined whether higher environmental, social, and governance (ESG) performance predicts better financial performance. However, conflicting findings have emerged, with reviews highlighting the role that methodological choices, normative setting, and industry can play in moderating that relationship. Unlike other industries, health care has been the focus of only a handful of heterogeneous quantitative studies. To contribute to this evidence base for the European context, the present study comprehensively examined whether and how ESG score can influence both accounting‐ and market‐based measures of financial performance. Company data from the top health care companies listed in the STOXX 600 Index over the last decade (2012–2022) were gathered and analyzed. The analysis results confirmed that a marked heterogeneity of effects across the different ESG scores and measures of financial performance exists, which is not merely due to differences in empirical strategy, with modest positive effects being estimated in most cases. Of the three pillars, the governance score consistently predicted more positive financial performance among the sample of listed European companies. The environmental pillar score only influenced accounting‐based measures, though inconsistently, whereas the social pillar did not seem to have any predicting role for accounting‐based measures. Future research should consider replicating the proposed analytical framework in other data settings and normative contexts to strengthen the current evidence base and therefore deepen our understanding of the mechanisms underlying the investigated relationships in the health care industry.

Sync fast and solve things—best practices for responsible digital health

Digital health innovation is expected to transform healthcare, but it also generates ethical and societal concerns, such as privacy risks, and biases that can compound existing health inequalities. While such concerns are widely recognized, existing regulatory principles, oversight methods and ethical frameworks seem out of sync with digital health innovation. New governance and innovation best practices are thus needed to bring such principles to bear with the reality of business, innovation, and regulation.To grant practical insight into best practices for responsible digital health innovation, we conducted a qualitative study based on an interactive engagement methodology. We engaged key stakeholders (n = 46) operating at the translational frontier of digital health. This approach allowed us to identify three clusters of governance and innovation best practices in digital health innovation: i) inclusive co-creation, ii) responsive regulation, and iii) value-driven innovation. Our study shows that realizing responsible digital health requires diverse stakeholders’ commitment to adapt innovation and regulation practices, embracing co-creation as the default modus operandi for digital health development. We describe these collaborative practices and show how they can ensure that innovation is neither slowed by overregulation, nor leads to unethical outcomes.

Integrated agile facility management model for improving performance in construction projects

Facilities management (FM) has many challenges related to facilities requirements, unique services, and a need for actions to achieve customer/end-user/clients’ expectations. There is poor communication among stakeholders, weaknesses, inflexibility in business realities, and difficulty engaging decision-makers and other key partners. Adopting an agile philosophy in facilities management can improve the value and achieve quality and stakeholder satisfaction. The main objective of this article is to explore a guideline on applying agile philosophy in facilities management to achieve flexibility in management and improve performance. The papers published between 2000 and 2022 had been selected. Content analysis was used.to complement the qualitative findings. This article focuses on academic articles including subject areas: engineering, decision-making, and operations. The conceptual model is supported by current theories, literature and previous empirical studies from facilities management, agile philosophy, service quality, and stakeholder satisfaction. The major finding is the disclosure of a framework for evaluating agile philosophy in organizations by linking the agile mindset to facilities management practices. The results also revealed a conceptual framework for using agile philosophy in facilities management to achieve value and stakeholder satisfaction. This study is a review of theories and empirical studies. However, the previous studies were very limited and affected access to information widely. Therefore, it is preferable to conduct research and experimental studies on the application of agile philosophy in facilities management. Ultimately, using an agile philosophy in facilities management helps to achieve value and stakeholder satisfaction.

Стратегии достижения конкурентных преимуществ на основе инновационных технологий в VUCA–мире современной бизнес-реальности

В статье рассмотрены стратегии достижения конкурентных преимуществ на основе инновационных технологий в современных социально-экономических условиях. Показано, что в VUCA-мире современной бизнес-реальности при проектировании компании или стартапов очень важно обращать внимание на возможность развития, улучшения, а главное на способность конкурировать в этой сфере с другими компаниями в условиях нестабильности, неопределенности, сложности и неоднозначности. Установлено, что конкурентоспособность в современной экономике практически не использует ценовое лидерство, а достигается творческими преобразованиями в фирме – инновациями, сервисом, разработкой товаров специально для определенной группы людей, применением искусственного интеллекта и т. д. Показано, что современная концепция конкурентоспособности реализует философию предвидения или превентивности, то есть она идет на шаг впереди потребностей, а значит, управляет их развитием. Выявлено, что в VUCA-мире современной бизнес-реальности на первый план выходят эмоции и симулякры – интересные визуальные решения, необычные цвета, тактильные ощущения – все это несет в себе огромный потенциал освоения и применения новых маркетинговых инструментов для повышения конкурентоспособности продукции и услуг. Показано, что практическое применение стратегии достижения конкурентных преимуществ предприятия на основе инновационных технологий служит гарантом его развития и стабильности на рынке в современных социально-экономических условиях. Устойчивое конкурентное преимущество дает предприятию длительную выгоду по применению оригинальной и ценной с точки зрения потребителя стратегии. Данные стратегии основываются на уникальной комбинации внутренних ресурсов и возможностей, которые не могут быть скопированы конкурентами. The article considers strategies for achieving competitive advantages based on innovative technologies in modern socio-economic conditions. It is shown that in the VUCA world of modern business reality, when designing a company or startups, it is very important to pay attention to the possibility of development, improvement, and most importantly, the ability to compete in this area with other companies in conditions of instability, uncertainty, complexity and ambiguity. It has been established that competitiveness in the modern economy practically does not use price leadership, but is achieved by creative transformations in the company – innovations, service, product development specifically for a certain group of people, the use of artificial intelligence, etc. It is shown that the modern concept of competitiveness implements the philosophy of foresight or prevention, that is, it goes one step ahead of the needs, and therefore manages their development. It is revealed that in the VUCA world of modern business reality, emotions and simulacra come to the fore – interesting visual solutions, unusual colors, tactile sensations – all this carries a huge potential for mastering and applying new marketing tools to increase the competitiveness of products and services. It is shown that the practical application of the strategy of achieving competitive advantages of an enterprise based on innovative technologies serves as a guarantor of its development and stability in the market in modern socio-economic conditions. A stable competitive advantage gives the company a long-term benefit in applying an original and valuable strategy from the consumer’s point of view. These strategies are based on a unique combination of internal resources and capabilities that cannot be copied by competitors.

How climate change is damaging the US ski industry

ABSTRACT Since the mid-twentieth century, warming in mountain regions has outpaced the global rate, with important regional implications for snowpacks and the ski industry. Recent climate litigation by communities in the State of Colorado signals the need to assess how observed changes in climate may have damaged the ski industry. This study presents a novel application of the SkiSim2.0 ski operations model at 226 ski areas across 4 US regional ski markets to assess what the ski industry could have looked like if post-1970s anthropogenic climate change had not occurred. Relative to 1960–1979, modelled average ski seasons (with snowmaking) in the 2000–2019 period have shortened between 5.5 and 7.1 days. National direct economic losses associated with lost skier visits and increased snowmaking costs are estimated at US$252 million annually. For the 2050s, regional ski seasons are projected to shorten between 14–33 days (low emissions) and 27–62 days (high emissions). The associated national direct economic losses range from US$657 to 1352 million annually. Climate change is an evolving business reality for the US ski industry. The economic damage already done is clear and the extent of future damages is dependent on the success of Paris Climate Agreement.

Strategi Pengembangan Usaha UMKM Kuliner Di Kota Pekanbaru

The purpose of this research is to analyze and explain the business development strategies of culinary MSMEs in Pekanbaru City. The method used in this research is to use a qualitative descriptive method that describes the reality of culinary businesses with a focus on development strategies. Data collection tools by prioritizing interviews, observation and documentation. After collecting field data, the authors will distinguish primary and secondary data. The data analysis technique used is the author collects data, which is then thoroughly analyzed and concluded to find out the strategies used in the development of Pekanbaru City Culinary MSMEs. The results of the study found that the need for strategies for Pekanbaru City Culinary MSMEs to identify strengths, weaknesses, opportunities and challenges related to capital, business innovation, utilization of social media and so on. in the future, more attention needs to be paid from related agencies so that Pekanbaru City MSMEs continue to exist such as capital, product innovation to social media utilization.. 
 Keywords: Strategy, Business Development, UMKM, Culinary

Using augmented reality for enterprise management

Augmented reality in business is a promising tool that organizations are using to attract customers and increase their popularity in the market. The purpose of the research conducted in this article is to study and analyze the possibility of using augmented reality technologies in various areas of business. It is shown that businesses can use augmented reality to increase customer engagement, improve promotion and brand awareness, and facilitate the creation of product demos. The article provides examples of using AR technology in business.

ОСОБЛИВОСТІ МЕНЕДЖМЕНТУ В УМОВАХ BANI-СВІТУ

Today, rapid changes have become the norm for domestic enterprises. They encourage them to search for new effective management tools and change the management paradigm in general. Under these circumstances, managing the development of an enterprise is an extremely challenging task for managers at all levels of management, as only those enterprises that are able to adapt their management system to new challenges and opportunities to improve performance will be able to survive. The modification of the basic elements of the management process is closely of the fundamental change in the defining parameters of the environment and the formation of new realities of business. The BANI world order requires the management of enterprises to develop new management models that would ensure rapid adaptation to new circumstances. The BANI world is an extremely unstable world order in which changes are chaotic under the influence of global systemic changes, and technology development is occurring at an extremely rapid pace. In order to survive in the BANI world, a business entity needs to adapt and reorient quickly, be flexible and anti-fragile, think non-linearly, and form emotional supports, including developing empathy and emotional intelligence. In this regard, the modern management paradigm should be based on a systemic and situational approach to management and managerial art. The main principles of effective work of a modern manager in the BANI world are: flexibility and adaptability; innovation; risk-orientation; dynamism; efficiency; complexity; stress resistance; care for the interests of society and environmental protection; impartiality of thinking. The most effective tools for ensuring the effective functioning of enterprises in the BANI world order are the Agile-approach, design thinking technology, and value approach. Changing business conditions require modern managers to have not only traditional "hard skills" and "soft skills" but also "meta skills". The main qualities required of a modern manager are adaptability; critical and creative thinking; empathy; high emotional and social intelligence; creativity; ability to build horizontal relationships with employees; and the ability to make informed management decisions in the face of limited information.

The Competencies Leaders Have to Have for Innovation: A Qualitative Research from Colombia

The present study adopts a hermeneutic approach to explore the competencies required for innovation and provides a qualitative descriptive view of business and innovative practices, based on the participation of 118 executives from various companies and sectors in Colombia. The research addresses a current need within the field of study due to the lack of information and studies associated with managerial practices, innovation capabilities, and overall organizational reality and innovative performance. To the extent that there is insufficient empirical evidence to address this important topic. Research with Colombian executives from diverse companies reveals a discrepancy between perception and effective implementation of innovation within organizations. While the majority of executives express confidence in their ability to innovate, operational demands and time constraints hinder these efforts. Additionally, many lack clarity on how to carry out innovation and show limited engagement in external relationships for open innovation. There is a recognized need to enhance managerial education in innovation and establish stronger connections with external entities. The research also underscores the importance of better understanding companies’ innovation capabilities and managerial competencies, along with conducting further research in this area. Recommendations include strengthening managerial education in innovation, fostering external relationships for open innovation, and creating conducive environments for innovation within organizations. Finally, theoretical developments are contrasted with business reality, and recommendations are provided for enhancing business schools.

Industrial Digital Transformation and A Proposal to Rebuild Digital Trade Agenda

With the Fourth Industrial Revolution, a digitally connected global era has begun. Leading global companies are harnessing innovative technologies such as internet of things, big data, artificial intelligence, robotics and digital twin to revolutionize manufacturing process. This transformation is resulting in the creation of new business models and value-added products. It is time to shift the paradigm of trade by reforming the old mindset dominated by tangible goods. While current trade agreements contain some rules on digital trade, the scope of discussions lag behind the business reality of industrial digital transformation. This article purports to rebuild the objectives and priorities of global digital trade negotiations, by reflecting recent hyper-connectivity and hyper-intelligence. It proposes eight items for digital trade negotiations: digital transformation (DX) in trade, digital manufacturing services, internet access and traffic cost sharing, data trust for interoperability, artificial intelligence (AI) governance, cybersecurity and trade, big-tech platform regulations, and digital business taxation. digital transformation, digital trade, digital service, data flow, artificial intelligence, cyber security, big-tech platform

СОВЕРШЕНСТВОВАНИЕ СИСТЕМЫ КОРПОРАТИВНОГО ОБУЧЕНИЯ СОТРУДНИКОВ ОТДЕЛОВ ПРОДАЖ В СФЕРЕ ОБРАЗОВАТЕЛЬНОГО КОНСАЛТИНГА

The relevance of the paper is associated with the growing need for qualified specialists in the Russian labor market, which is characterized by a personnel shortage. Evidence shows that companies with corporate training systems gain a competitive advantage in the labor market, such as reducing staff turnover rates. The subject of the study is the corporate training system, as is a set of methodological and managerial solutions for the personnel training of sales managers in organizations working in the field of consulting. The purpose of the study is to develop scientific and practical recommendations for improving the company’s corporate training system, thereby reducing staff turnover at the stage of initial apprenticeship. The research methods are economic and statistical analysis and the analysis of academic and business literature, as well as data from employee surveys. One of the study's results, which has scientific novelty, is the initial training program for sales department employees developed by the authors, which integrates elements of microlearning and gamification into a standard corporate educational program. The authors conclude that it is necessary to build the company’s educational process considering current business realities and economic indicators, the importance of introducing modern tools, generational differences, and the expectations of trained employees.

Improvement of the essence of the category «economic benefit» and its accounting, as a basis for determining the income and expenses of enterprises and ways of their optimization

The categories «income» and «expenses» were considered in the context of NP(S)BO 1, emphasizing the lack of a clear definition of the term «economic benefits». The need to specify it for unambiguous application of accounting standards is indicated. The proposed definition of economic benefit: «it is any benefit that an economic entity receives from its activity, which can be expressed as received money, various benefits (material, immaterial, social), etc.». This definition emphasizes the expediency of taking into account not only material, but also non-material benefits received by the enterprise. This corresponds to the modern realities of business, in which intangible assets play an increasingly important role. A classification of economic benefits has been developed according to various characteristics, namely: according to the form of expression (potential and actual), according to the time aspect of occurrence (short-term and long-term), according to the possibility of measurement in monetary units (objective and subjective). Based on the proposed classification of types of economic benefits, it is recommended to introduce additional sub-accounts to the Chart of Accounts No. 291 for accounting of economic benefits. This will make it possible to more reliably determine the moment of receiving economic benefits, which affects the reliability of determining the company’s income and expenses. Economic benefit is the ultimate goal of the enterprise, and income and expenses are its main components. Therefore, optimizing the amounts of income and expenses is an important task that allows the enterprise to increase its profitability, as well as other forms of economic benefit, such as increasing the market value of the enterprise, increasing competitiveness, improving the quality of products or services, etc. The «Economic Navigator» model for optimizing the amounts of income and expenses of enterprises is proposed for use. The model is based on a developed algorithm of actions, which includes specific strategies to improve the financial performance of enterprises and is relevant for all enterprises, regardless of their size, but may be more useful for micro and small enterprises, which usually have limited resources and a smaller number personnel for analysis and development of optimization strategies. The success of the model application depends on many factors, such as the quality and completeness of the performed analysis, the choice of the right optimization strategies and the implementation of the planned measures. However, even if the company cannot fully implement all the recommendations of the model, it can still help it achieve certain results in the field of revenue and cost optimization.

Entrepreneurial activity in an environment of digital transformation: an analysis of relevant factors in the euro area

The main feature of the current business reality is the speed of the changes in the environment and the uncertainty they generate. Among these changes, those which stand out for their importance are the ones related to the current digital revolution, which is changing, in a very short period of time, the companies’ business models. From this perspective, and based on panel data for the 2009–2020 period, the study seeks to examine in depth the technological and innovative factors which are related to the entrepreneurial density in euro area countries, with special emphasis on self-employed entrepreneurs. The results obtained show that greater robotization of industrial activities generates entrepreneurial opportunities, while investment in R&D by companies is negatively related to entrepreneurial activity. It is also noteworthy that public investment in R&D and the greater volume of employment in scientific-technological sectors has not been significant in the generation of entrepreneurial opportunities. These conclusions make it possible to identify economic policies to promote entrepreneurial activity, such as training and the generation of a favorable environment for digital innovation and artificial intelligence, but also the incentive for intrapreneurial activity in companies that invest in R&D.

Impact of augmented reality on operational performance: the mediating role of process innovativeness

PurposeThe purpose of this paper is to investigate the relationships between augmented reality, process innovativeness and operational performance.Design/methodology/approachThis research is based on a quantitative approach using a questionnaire survey from a total of 117 firms in the automotive sector. The hypothesized relationships are tested using partial least square structural equation modeling (PLS-SEM).FindingsThis study demonstrates that augmented reality is positively associated with process innovativeness, and process innovativeness is positively related to operational performance. Furthermore, it is found that process innovativeness fully mediates the relationship between augmented reality and operational performance.Originality/valueAlthough augmented reality attracts great attention from academics and practitioners, the current literature lacks an empirical investigation on how augmented reality creates value for the business. Addressing this crucial gap, this research is the first attempt to empirically reveal the role of augmented reality in facilitating process innovativeness and also unearthing how augmented reality improves operational performance. Therefore, this study offers novel insights into the role of augmented reality in business and provides theoretical and managerial contributions.

The future of virtual reality in marketing and advertising: benefits and challenges for business

The purpose of the study is to summarise the features of the application, advantages, disadvantages, as well as to develop an effective toolkit for the implementation of virtual reality as a means of marketing promotion for modern companies. Methodology: The study is based on the use of general scientific methods, including analysis, synthesis, induction, deduction, generalisation, and systematisation. As a result of the study and achievement of the set goal, the following results were obtained: the essence and features of the use of virtual reality in business and product promotion were determined; the advantages and disadvantages of using virtual reality in marketing were specified; the main tools for implementing virtual reality in the marketing activities of modern companies were systematised. The scientific novelty of the obtained results lies in the development of specific areas of application of virtual and augmented reality for marketing promotion of products on the market. At the same time, the author takes into account the experience of the world's leading companies and considers a significant list of advantages and disadvantages of marketing use of virtual and augmented reality. In conclusion, it is worth noting that virtual reality can be used as an effective marketing tool that reaches a large audience and significantly increases the likelihood of product purchase. In general, virtual and augmented reality open up new marketing opportunities by creating unique immersive experiences, which can significantly improve conversion rates and sales. In the future, these technologies will become even more popular and play a key role in marketing.

Great Resignation and Quiet Quitting as Post-pandemic Dangers to Knowledge Management

COVID-19 pandemic aftermaths include the emergence of new tendencies, such as the Quiet Quitting, and continuation of trends such as the Great Resignation, both of which have multiple knowledge-related impacts on individual, organizational and even national level. The aim of this paper is to show the mechanisms behind the Quiet Quitting and the Great Resignation from individual and organizational perspectives. Understanding them is the first step to developing remedies and building business resilience. The paper uses systems thinking approach to analyse the phenomena of the Quiet Quitting. Causal loop diagrams are used to show the mechanisms behind those tendencies, their antecedents and the impact they have on several aspects of business operation and management. The Quiet Quitting and the Great Resignation are multifaceted phenomena and pose several knowledge-related dangers to organizations, including disturbed knowledge flows, knowledge loss, diminished efficiency, lost informal friendship networks, and knowledge leakage to competition. Causal loop diagram indicates that complicated relations between various elements may produce surprising and unexpected outcomes. It presents also opportunities to use leverage points in order to substantially reduce negative outcomes. The paper is of a conceptual nature. In order to transform causal loop diagrams into full systems thinking models extensive data is required. Hence this paper is intended as a basis for further research. The understanding of mechanisms behind the Great Resignation and the Quiet Quitting is crucial for managers trying to develop strategies that would tackle those problems. The papers shows what leverage points can be used to mitigate risks of their adverse impact on business organizations. The Great Resignation and the Quiet Quitting are often perceived as results of the COVID-19 pandemic, yet data suggest they remain strong also in the post-pandemic business reality. The paper offers a holistic approach to those phenomena using individual and organisational perspectives. It provides important insights into their nature, which can be useful to numerous stakeholders, including knowledge workers, managers and business owners.