Turbulent Economic Environment Research Articles

NETWORK ORIENTED ENTERPRISE – CHARACTERISTICS, COMPONENTS AND BENEFITS: COMPREHENSIVE LITERATURE REVIEW

The concept of network based economy refers to the interconnectivity of the current business environment, in the context of the global economy, where the main way of progress is given by the participation in a network. On the other hand, the network orientation of a business organization has as a priority its integration within physical or virtual networks, in order to increase its efficiency, acquire new information and finally achieve competitiveness. This paper carries out an extensive literature review, and it will explain different characteristics related to the two concepts, as well as their components. Thus, the present research is of a theoretical nature, carried out in a qualitative manner, because a series of articles from the scientific literature have been analyzed. Also, this study will identify the benefits of an organization orientation towards business networks in order to facilitate incremental and radical product, service and process innovation, as a result of the fact that innovation has a high importance for a company in order to ensure its competitiveness in a sustainable manner in the turbulent economic environment in which it operates. Moreover, the benefits of focusing on business networks are also propagated on the processes of ensuring efficient human resources at company level, as a result of the fact that the dynamic economic environment brings with it a need to correlate employees' skills with the new needs existing in the business environment. Thus, business organizations must be constantly on the lookout for best practices in human resources, which is made easier by their participation in networks. Finally, the main benefit of this research is the providing a new perspective on a company's business network orientation.

Research on the Optimization Strategy of Facebook Employee Engagement in the Context of the VUCA Era

Employee engagement has become one of the hottest topics in recent years. In both theory and practice, it is a crucial issue for management. Numerous hypotheses have been developed over the past few decades to explain the influencing factors and outcomes of employee engagement. There are also a number of previous studies that have utilized meta-analyses on this question. This paper will explain these issues by applying a specific VUCA era and some of its characteristics (Volatile, Uncertain, Complex, and Ambiguous). It will describe improved employee engagement models for Facebook in this paper. The author compiles prior studies on employee engagement and the VUCA era and analyses the factors contributing to Facebook's low employee engagement around Facebook's CEO, Mark Zuckerberg's character flaws and management style. The studies showed that effective leadership is indispensable in times of turbulent economic environment. The CEO of Facebook is autocratic, does not communicate, constantly reprimands staff members, and prioritizes profits over all else. Due to the accumulation of these issues, Facebook experienced confusion in the VUCA era and steadily decreased employee engagement. All the preliminary results throw light on the nature of Facebook’s need to change its management model. The findings indicate that employee engagement can be improved by changing leadership styles, improving communication skills, providing development opportunities and modifying workplace culture.

Market Behaviors and Economic Crisis: Insights from Financial Economics

The research abstract encapsulates a comprehensive exploration of market behaviors during economic crises within financial economics. The study aims to elucidate the intricate dynamics of market behaviors amidst crises and their implications for theory and practice in financial economics. Employing a mixed-methods approach, the research integrates theoretical frameworks with empirical evidence to offer insights into the complexities of market dynamics. The study design thoroughly examines theoretical constructs and empirical investigations, drawing upon established frameworks such as the Efficient Market Hypothesis and behavioral finance theories. The research unravels the interplay between rational and irrational factors driving market outcomes during crises through empirical studies, including analysis of historical market data and examination of investor behavior. The findings underscore the need for a nuanced understanding of market behaviors, emphasizing the integration of rational and behavioral perspectives in financial economics theory and practice. The study's implications extend to policymakers, investors, and market participants, providing actionable insights to navigate turbulent economic environments effectively and foster stability in global financial markets.

SME operational bid through adversity and turbulent economic environment: resilience through dynamic capabilities

SME operational bid through adversity and turbulent economic environment: resilience through dynamic capabilities

PROTECTION OF INFORMATION RESOURCES OF SMALL ENTERPRISES, INCLUDING THE SUBSYSTEM FOR MANAGEMENT OF NON-TECHNICAL ASPECTS OF INFORMATION SECURITY

Information is one of the key resources of a modern economic organization. Companies with access to up-to-date, unique, useful and reliable information can compete effectively with other economic entities in today’s turbulent economic environment. Information management takes place in the space of the information system. An increasing part of this system now constitutes the information system which has largely become the primary storage and processing environment for information resources.Information, regardless of the size of the enterprise, is exposed to similar threats and risks of loss or destruction. However, the size of an enterprise, through its material resources, its capabilities in hiring qualified staff, very often determines the range of possibilities to counter potential threats and minimize the potential risk of loss of intangible resources. In this paper, the author attempts to classify, identify the risk areas for small entities which generally have the least potential to implement effective, modern information security management processes. The empirical part presents the original design of a subsystem of the Information Security Management System supporting the processes of mitigating the risk of threats to intangible resources of small enterprises.

Resilience among laid-off employees in banking sector: evidence from Lebanon

In light of extensive research examining job termination and its effects on the economy, organizations, and individuals (Anger et al. 2017, Deb et al. 2011, Hanisch 1999, Leana and Feldman 1988), this study aims to specifically explore the impact of fear and resilience on reemployment among laid-off employees from the Lebanese banking sector. Given the significant challenges faced by the Lebanese banking sector recently, resulting in a substantial number of employee layoffs, it is essential to investigate the extent to which these emotions influence the reemployment outcomes of affected individuals. To note that this paper is a conceptual paper intended to lay the groundwork for future analysis in the areas of fear and resilience, specifically in the time after job termination in the Lebanese banking sector. This paper will adopt a mixed-methods approach, combining quantitative surveys and qualitative interviews to gather comprehensive data. The sample will consist of former employees who were laid off from various Lebanese banks during one of the most severe economic collapses. The quantitative phase will involve administering a standardized survey instrument to measure the emotions of fear and resilience experienced by the participants. Fear will be assessed by examining anxiety levels, concerns about financial stability, and worries about career prospects. Resilience will be evaluated by exploring coping mechanisms, self-efficacy, and adaptability to change. The survey will also include demographic and employment-related questions. In the qualitative phase, semi-structured interviews will be conducted with a subset of participants to gain a deeper understanding of their experiences. The interviews will explore the specific fears encountered, the strategies employed to cope with the layoff, and the impact of these emotions on the participants' job search process. The collected data will be analyzed using both quantitative and qualitative techniques. Statistical analyses, such as correlation and regression analyses, will be conducted to examine the relationships between fear, resilience, and reemployment outcomes. The qualitative data will be analyzed thematically to identify recurring patterns, emerging themes, and narratives related to the research question. The findings of this research will contribute to the existing literature on the impact of emotions on reemployment following job loss, particularly within the context of the Lebanese banking sector. The results will shed light on the extent to which fear and resilience influence individuals' ability to secure new employment after being laid off. Furthermore, the study will provide valuable insights into the coping mechanisms and strategies that laid-off employees utilize to navigate the challenging job market. The implications of this research are twofold. First, it will inform policymakers and practitioners about the emotional experiences of laid-off employees in the Lebanese banking sector and highlight the importance of addressing their fears and enhancing their resilience during the transition to reemployment. Second, it will contribute to the development of effective support programs and interventions aimed at facilitating the successful reintegration of laid-off individuals into the workforce. Overall, this research will deepen our understanding of the emotions of fear and resilience among laid-off employees and their impact on reemployment outcomes. By examining these factors in the specific context of the Lebanese banking sector, it will provide valuable insights into the challenges faced by individuals in a turbulent economic environment and offer recommendations to promote their successful reemployment.

Social Competences In Times Of An Economic Crises

Purpose: In a turbulent economic environment, dealing with global changes brought about by pandemics and war conflicts, the use of legacy social competences needed to successfully run companies in supply chains has been challenged. Using legacy tools is not enough, as social competencies need to meet the digitalization of supply chains. The purpose of this article is to outline the patterns of competencies during economic crises and to establish the suitability of specific social competencies for running a business in a turbulent environment.Design/Methodology/Approach: A survey of selected pharmaceutical industry experts was conducted in 2017 and 2020. These experts are highly qualified managers employed by transnational companies. Respondents were asked to determine the importance and relevance of the social competences chosen. Ten experts participated in the study and completed a survey form. The pharmaceutical sector was selected for the survey. This choice was motivated primarily by its specificity. The pharmaceutical sector is of exceptional importance, not only economically, but also socially, providing medicines to save lives.Findings: When analysing social competencies, one can see a variety of intercultural skills, foreign language skills, the ability to compromise, the ability to transfer knowledge and, finally, the ability to adapt to change. This is a must-have set for managers who want to manage international teams in times of economic crises.Implications/limitations: The proposed set of social competences and the pattern of management of these competences is so universal that comparative analysis in many industries can be carried out using it. It is also worth considering comparative studies in several countries of the same industry.Originality/value: This paper aims to answer the following question: which social competences are proving essential for future managers in the pharmaceutical industry in an unstable environment? The answer to this question is crucial for research and educational institutions aiming to develop social competences in future leaders.Keywords: social competence, economic crisis, key competencies, social capitalPaper type: Conceptual paper

Private foundations are adopting long‐term mindset about funding commitments, research shows

A new report from Foundation Source, private foundations are upping their charitable investments in response to the unique challenges that have impacted the philanthropy sector over the last couple years. That's despite a turbulent economic environment that has taken a toll on their endowments—a scenario that has, in the past, led to a rollback in funding commitments from some donor groups.

An analysis of the government revenue–expenditure nexus: A wavelet approach for the Romanian case

The turbulent economic environment of the last decades, the social effects associated with the responsibilities of the state to support the development of the green economy, and the increase of involvement in sustainable social inclusion make it necessary to increase budget revenues. Evaluating the link between government revenues and expenditures is a complex approach defined by several factors related to tax compliance and the perception of the efficiency of the expenditure. In addition, recent endogenous and exogenous shocks have considerably influenced the fundamentals of long-term fiscal policy and budget balancing. The type of relationship between government revenue and expenditure is analyzed to identify the leading and lagging variables, and the wavelet approach and monthly data for Romania for 2000–2021 are used. In various periods, the revenue led the expenditure, or vice versa. The spend–tax and tax–spend hypotheses are confirmed for different periods. The analysis highlights the intervals of behavioral asymmetry, which helps to monitor the implementation of fiscal policy. Also, the results could represent a starting point for outlining measures in the fiscal policy area.

Analytical Design of the Regulator for Ensuring the Optimality and Stability of the Reserve of Innovative Industrial Products

Demanded by the formation of the knowledge economy and the digitalization of its industrial sphere, the development of science-intensive industries requires the analytical design of the regulator and economic and mathematical modeling of dynamic processes of saturation of the market segment with innovative industrial products. In this context, two tasks are being formalized: the first is the regulation of the reserve of these products in order to stabilize it in conjunction with the indicators of the rate of change in the volume of its production and demand for it, and the second is the analytical design of the optimal regulator of the reserve of innovative products with the achievement of a minimum of its content and losses arising from due to the shortage of this product with an increased demand for it, with the proof of the asymptotic stability in general of the obtained solutions of both problems. The construction of corresponding models deepens the understanding of investment and innovation processes and equips analytical tools for adaptive management of the efficiency and stability of industrial enterprises in a turbulent economic environment.

The build-up approach. Could it be an alternative to the CAPM?

Background: The paper contains the economic background for implementing the build-up approach as an alternative method to the Capital Assets Pricing Model (CAPM).
 Research purpose: This study aims to consider company-specific risk premium that makes cost estimation unique, subjective, and different within the economic factors that may be considered and used for entity cost of equity estimation, valuation, or other economic metrics.
 Methods: The author analyzes the most recent literature on companies’ cost of equity and estimating specific risk premiums. Each component of the cost of capital in the build-up approach was analyzed and interpreted. The petroleum industry was analyzed between 2011 and 2021. The Mercer model for specific risk was used.
 Conclusions: The build-up approach seems the best choice to calculate equity costs in a turbulent economic environment. However, due to its mathematical structure, it could be criticized for the huge subjectivity in the assessment risk premium rate. The key to using this method is to make it less subjective. This paper suggests an approach that minimizes the subjectivity in the build-up model. So far, there is no comprehensive analysis of the Polish market that has been prepared from the perspective of the petroleum industry’s specific risk premium. This research creates possibilities for further comprehensive analysis related to models to calculate company risk premiums and the factors that affect them.

ГЛОБАЛЬНІ ТРЕНДИ ІННОВАЦІЙНОГО РОЗВИТКУ ТЕЛЕКОМУНІКАЦІЙНИХ ПІДПРИЄМСТВ

The functioning of a competitive national economy in conditions of global transformations and a turbulent economic environment is made possible by the use of innovations and active innovative activities in all branches of the national economy. The telecommunications industry is characterized by special importance and influence in terms of the formation of vectors of economic activity in the country and the priorities of innovative technological achievements. Ensuring the improvement of the level of competitiveness of telecommunications enterprises on the basis of innovative activity and development, taking into account global trends in the functioning of the world economic space, is becoming important. The article presents the role and significance of innovations and innovative activity in the formation of a competitive national economy and presents the features of the innovative activity of telecommunications enterprises. The economic content of innovations, innovative process, innovative development of enterprises and their role in the activity of telecommunications enterprises under the conditions of increasing global transformations and world economic turbulence are revealed. The specific properties of the innovative development of telecommunications enterprises in the context of the evolution of the intellectual component of social reproduction have been revealed. Indicators of global indices of innovative development of Ukraine were analyzed. Proposed globalization trends of innovative development of telecommunications enterprises in the context of increasing the level of their competitiveness on the basis of innovation. Challenges and threats inherent in the modern world economy require the transformation and improvement of technical, technological, informational processes and business models used in the telecommunications market, as well as contribute to new technological and technical inventions, increasing the level of intellectualization and knowledge-intensive production processes. The functioning of domestic telecommunications enterprises is under the influence of increasing competitiveness in the global telecommunications market and the existing financial, economic and political turbulence in the world. Therefore, ensuring the formation of competitive advantages of telecommunications enterprises on the basis of innovative development, taking into account global trends inherent in the global economic space, becomes important.

Implementing turnaround strategies as an entrepreneurial process

Recovery strategy belongs to the group of rescue/reversing business strategies and is used mainly by companies facing financial or other problems which they are trying to overcome. Moreover, this strategy is alternatively used by companies wishing to prevent future problems. The overall objective of the recovery strategy is to return of this sluggish situation in terms of acceptable levels of profitability. The implementation of turnaround strategy achieved through the implementation of proper planning and specific procedures (processes) like: Change management, divestitures of specific assets (divestment), cost reduction (cost reduction—operating and others), and strategic acquisitions. This strategy is so drastic, that in many senses it is like creating a new company, so it has many similarities to an entrepreneurial process. Obviously, there is a previous experience by managers, but when implementing this radical strategy, they must think in developing something new. The main objective of this paper is to explain how to implement a successful turnaround strategy during a recession phase of the economy. To analyze the turnover strategy, we developed a survey to 152 trading and industrial Greek companies that represent more than 3% of the Greek GDP. The study examines the role of successful turnaround based to whom formulated the strategic plan of the company, investigating the knowledge of the Greek managers on the tactics implemented during a turnaround plan. The paper offers information for management practitioners to understand how to implement a turnaround strategy in a turbulent economic environment, and which tactics apply.

Influence Of Financial Literacy on Personal Investment Decisions Among Kenya Football Premier League Players in Kenya

Financial literacy plays an essential role in the process of making financial decisions, as it represents a systematic effort aimed at the development of positive knowledge, and attitude. Extant literature indicates that the financial literacy among football players is low which ultimately affects their investment decisions. Therefore, the purpose of this study was to determine the influence of financial literacy on personal investment decisions among KPL players in Nairobi. The study was guided by the following specific objectives; to determine the influence of savings decisions, financial knowledge and skills, financial awareness and financial attitude on personal investment decisions among KPL players in Nairobi. The study adopted dual process theory, the exchange theory and the goal setting theory. The study employed a descriptive research design. The target population was 396 football players from the 18 teams playing the KPL for the season 2020/2021. The study covered a period of one year from November 2020 to August 2021. This study used a sample of 30% from each of the 18 KPL teams. Therefore, from each of the 18 teams, 7 football players were randomly selected making up a sample size of 126 football players. A self-administered structured questionnaire was given to the respondents for data collection. Quantitative data collected was analyzed using descriptive and inferential statistics. Statistical Package for Social Sciences (SPSS V. 23.0) was used for data analysis. Regression model was used to establish the relationship between the study variables. Before conducting the regression analysis, diagnostic tests was conducted. These tests included the multicollinearity and normality tests. The findings were presented in form of tables and figures. The findings were of importance to the football teams in Kenya as it emphasized on the need for financial literacy training. The study established that savings decisions, financial knowledge and skills, financial awareness and financial attitudes had a positive and significant influence on personal investment decisions among Kenya football premier league players in Kenya. The study concluded that the most important reason why one should start planning at an early stage of making saving decision is the power of compounding, which allows you to earn extra money on the interest received from investments. Being financially knowledgeable and skilled allows an individual to be better prepared for specific financial roadblocks, which, in turn, decreases the chances of personal economic distress. Financial awareness enables players to gain the ability to use knowledge and skills to effectively manage financial resources efficiently at a personal-level and through the lifecycle. In this era of dynamic financial markets and turbulent economic environment it is very important for every individual to keep a positive mindset towards his/her finances. A positive financial attitude helps an individual strike a right balance between the utilization of money and other aspects of life, not become overly conservative and achieve long-term financial goals. The study recommended that an individual should make a financial plan by making his or her own list and then think about which goals are the most important to him or her. The players should be encouraged to subscribe to financial newsletters. The players needs a basic understanding of financial concepts to make good financial decisions. every individual needs to keep a positive outlook about personal finances and the key to this is to develop financial skills in consultation with an expert like a certified financial planner (CFP) professional, who is equipped to take one on the path to attain freedom from financial worries.

Effective marketing strategies for global FMCG brands during COVID-19 pandemic crisis

PurposeThis study proposes marketing strategies for global fast-moving consumer good (FMCG) brands to survive and thrive in the turbulent economic environment created by COVID-19. The authors investigate the indirect effects of consumer ethnocentrism (CET) and consumer confidence (CC) on customer equity drivers (CEDs)’ effectiveness in influencing repurchase intention (RI) for global FMCG brands.Design/methodology/approachThis study uses the mall-intercept technique. Respondents were randomly approached at popular retail and shopping destinations in Athens, Greece, and 228 customer participants completed the survey.FindingsCET and CC weaken the positive relationship between certain CEDs and RI of FMCG brands. Particularly, the effects of relationship equity (RE) and value equity (VE) on strengthening repeated purchases are higher for low-confidence or low-ethnocentric consumers. Thus, marketing strategies for enhancing value and creating stronger consumer–brand relationships are more effective in boosting repeated purchases during economic turbulence.Practical implicationsPractitioners and academicians can use the insights obtained from this study to determine how to allocate resources and adopt the most effective marketing strategies in local environments based on consumer preference for domestic or global products and consumer morale and expectations for future financial status.Originality/valueThis research unveils the mechanism behind the moderating effects of CET and CC on the effectiveness of CEDs in global FMCG settings using social identity and system justification theory. Turbulence in international and local markets due to the pandemic has revealed that marketing function needs to redesign strategies and coordinate practices to boost repeat purchases.

Development of adaptive mechanisms of budget planning in the field of marketing activities in a turbulent economic environment

The article is devoted to the development of complex adaptation mechanisms in the field of financial planning of the organisation of marketing activities in a turbulent economic model, in which large economic systems have a certain asymmetry of the relationship between the dynamics of the growth of the size of the economy and the transformation of degrees of freedom within the organisation of economic activity. The authors clarified the concept of “planning in marketing activities” in terms of issues related to its adaptation to changing environmental conditions, which made it possible to introduce a modern concept: “flexible digital marketing”. An extensive classification of changes in the field of marketing has been given depending on the level of scale of changes in marketing activity plans at different time stages of planning. The authors propose an updated approach to the organisation of marketing activity planning processes based on network modeling, which is presented as a complex set of knowledge on the transformation of developed strategies and plans of marketing activities to abrupt changes. A classification of network planning methods in the field of marketing activities has been compiled, taking into account hypothetical changes in objects within the framework of developed marketing strategies.

Выявление моделей индустриально-инновационного развития региональных экономических систем

New industrialisation challenges, turbulent economic environment and opening market niches change the structure of competitiveness factors and determine the innovativeness of industrial development. In the current context, it is necessary to deepen the analysis of industrialisation and innovation performance of regions. Therefore, this study aims to identify industrial and innovative development models present in Russian regions. To this end, we propose a methodology based on assessing the localisation coefficients of both regional industrialisation and innovation performance. Calculation of these indicators resulted in the creation of four models: Model 1 (low industrial development and low innovation performance), Model 2 (low industrial development and high innovation performance), Model 3 (high industrial development and high innovation performance), Model 4 (high industrial development and low innovation performance). The classification of the constituent entities of the Russian Federation according to the industrial and innovative development model shows that more than 40 % of regions use Model 1 and about 12 % of territories use Model 2. Simultaneously, approximately 27 % of regions (including Tula, Lipetsk, Chelyabinsk, Vladimir oblasts, Republic of Bashkortostan) chose Model 3, which most fully meets the new industrialisation challenges. The high stability of this disproportionate structure indicates the absence of positive dynamics and poor balance of industrial and innovation policy measures in most Russian regions in the period 2015–2019. The study results can be used to create an alternative ranking of innovative development of regions. Further research can apply these findings to assess the efficiency of regional industrial and innovation policies.

Export as a Factor Boosts SMEs Internationalization

RESEARCH OBJECTIVE: The aim of the article is to examine the role and importance of factors: (1) company size on the value of generated exports, (2) the aspect of the country of origin of enterprise on the value of generated exports and also (3) to define relations between these two factors.
 THE RESEARCH PROBLEM AND METHODS: SMEs are of particular importance for all micro and macroeconomic indicators. Their specificity and peculiarity, manifested in the possibility of fast adaptation to a turbulent economic environment, which affects their effectiveness on foreign markets. The issue was considered on the basis of the analysis of the relevant literature and the results of own research with the use of two-factor analysis of variance and χ2 test.
 THE PROCESS OF ARGUMENTATION: Based on the relevant literature and the organisation theory, groups of factors determining the internationalisation processes of SMEs are described and then export results for selected EU countries are presented. To obtain the presented research results, tools of mathematical analysis and statistical tests of independence were applied.
 RESEARCH RESULTS: The obtained causal relations and theoretical-empirical conclusions point to export as a factor stimulating SMEs internationalisation, which is directly correlated with the examined factors due to the lack of sufficient evidence to reject the adopted research hypotheses regarding the independence of the examined correlations.
 CONCLUSION, INNOVATIONS, AND RECOMENDATIONS: It has been proved that the size of enterprises and the country they come from influence the value of exports generated by them, and a direct relationship between these factors has been proven to exist. It is important to determine the so-called country barriers, the elimination of which through the creation of conditions conducive to SME development on both the national and top-down EU policy level may favour the development of internationalisation of this sector.

Determination and description of endogenous and exogenous factors of the financial services market development in the conditions of economic turbulence

The aim of the study is to determine and describe endogenous and exogenous factors in the development of financial services in a turbulent economic environment. In the study, the authors used general economic and specific methods of scientific knowledge, including: formalization, abstraction, dialectical, graphic, decomposition, monographic, analysis and synthesis, abstract-logical, generalizations, observations, comparisons and others. The article systematizes and analyzes the basic factors that determine the development and functioning of the financial services market. It is proved that an important role in the development of the financial services market is played by economic factors, among which the authors selected certain groups and studied the peculiarities of their formation.

A comprehensive bibliometric analysis of entrepreneurship and crisis literature published from 1984 to 2020

Entrepreneurship has enormous economic and social power, but when a crisis strikes, exploring the relationships and impacts between entrepreneurship and crisis (E&C) is a topic that still needs to be considered in a turbulent economic environment. This study aims to explore the topic of E&C by means of bibliometric analysis with the aid of visualization tools. From 1984 to 2020, 1044 documents were indexed according to the Web of Science database. Through the bibliometric analysis of the retrieved literature, the main statistical characteristics and cooperation networks in this field are revealed. Next, research topics, hot spots, and development trends are revealed through keyword analysis. Finally, policy implications and research opportunities are proposed to provide references for other scholars.