Business Management

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ISSN: 2534-8396-Electronic Edition

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  • Lucie Rotenbornová, Dana Egerová
    ANALYSIS OF FINANCIAL PERFORMANCE INDICATORS IN RELATION TO GENDER DIVERSITY IN TOP MANAGEMENT TEAMS OF SMALL AND MEDIUM-SIZED ENTERPRISES
    JEL: G39, M21, M12.
    Keywords: gender diversity, top management, financial performance, ROA, ROE, small and medium-sized enterprises, Czech Republic
    Abstract: This study examines the impact of gender diversity in top management on the financial performance of small and medium-sized enterprises (SMEs) in the Czech Republic. We focus on two sectors: manufacturing and information and communication technologies. Financial performance is assessed using the return on assets (ROA) and return on equity (ROE) ratios. Data for 396 entities were obtained from the Czech Statistical Office and the ARES database. The results show that gender diversity in top management has a positive impact on return on assets (ROA). However, no impact on return on equity (ROE) was found. These results suggest that gender-diverse leadership can lead to more efficient use of company assets, although it may not have a direct impact on profitability for investors. This research contributes to the existing literature on gender diversity and corporate performance. It offers valuable insights for managers and policymakers on the potential benefits of inclusive leadership for the prosperity of SMEs in the Czech Republic.
  • Ivan Marinov
    ANALYSIS OF THE BEHAVIOUR OF ONLINE CONSUMERS FROM THE EUROPEAN UNION: RELATIONSHIPS AND EXTREME VALUES
    JEL: L81, J11, F14, O52
    Keywords: online commerce, online users, consumer activity, European Union
    Abstract: The present study aims to reveal relationships and extreme values concerning online consumer activity within the European Union. The conclusions of the research are based on official statistics relating to people from the 27 EU member states who made online purchases in 2022. The study utilised analysis of variance (ANOVA) and descriptive statistical methods to analyse the grouped data from the research. In the course of the study, statistically significant correlations between sequentially selected factors, such as age, education, and digital skills of the respondents, and the dependent variable – online purchasing activity of consumers from the EU, were derived. With the help of a box plot, it is observed that the percentages of male and female online shoppers aged between 16 and 24 years from Bulgaria, Romania and Cyprus reach moderately low extreme values in the distribution. Using the same graphical method, a moderately low extreme value of the percentage of women with higher education from Bulgaria, who made online purchases in 2022, is visualised. The percentages of online consumers who are "professionals" in the field of ICT from Cyprus, Bulgaria and Romania are abnormally low, and for "non- professionals" in this field, the percentage of online consumers from Romania appears as a moderately low extreme value. The obtained empirical results can be transformed into reference points for the formation of market strategies by traders.
  • Katya Emilova Kirilova
    BUILDING A CONCEPT FOR CYBER SECURITY OF AN EDUCATIONAL ORGANIZATION IN BULGARIA
    JEL: K24, L86, P46.
    Keywords: cyber security, cyber threats, cyber security concept, technological protection measures
    Abstract: Background: The topic of cyber security of organizations is becoming more relevant for modern societies. In that area, both scientific research and practical applications of various platforms, technologies, and tools for guaranteeing security levels have undergone serious development in recent years. The research objective is based on a study of leading literature sources and the accumulated experience in the subject area to propose and approve an adequate model for ensuring cyber security of an educational institution. Methods: Different organizations adopt different approaches and apply different methods to create systemic conditions for ensuring cyber security. The methods used in the research are based on the specifics of the business processes that take place in the organizations. Based on them, the specifics of educational organizations are highlighted, which determine the creation of a relevant concept of cyber security with appropriate technological measures. Results: The concept proposed in the present study is based both on the current legal framework of the European Union and the Republic of Bulgaria, as well as on good practices and approaches in the subject area. The concept has been implemented and the presented results prove its usefulness for the educational organization. The period to which the empirical part of the study refers is 2022-2023. Conclusions: The main results of the study are in the direction of achieved monitoring of the external perimeter of the organization, implemented monitoring of user behaviour, risk management of information assets, and increased cyber security of the organization.
  • Galina Chipriyanova, Mihail Chipriyanov
    BUSINESS INTELLIGENCE COMPETENCE AND ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMS TOOLS
    JEL: Ì21, Ì41
    Keywords: digitalization, planning software, enterprise resource planning (ERP), competence, digital tools
    Abstract: The study focuses on current aspects of implementing contemporary digital tools for solving planned tasks and achieving goals. The potential of integrated enterprise resource planning (ERP) systems is analysed, as well as the competence needed to work with them. Special attention is paid to the so-called Business Intelligence (BI) competence. The concluding part of the article assesses the potential of specific BI tools for solving various management tasks and successful realization of strategic goals
  • Serghei Ohrimenco, Dinara Orlova, Valeriu Cernei
    COMMERCIAL SECRET MANAGEMENT IN TERMS OF SHADOW DIGITAL ECONOMY
    JEL: L1, K0, C8, O17, M15.
    Keywords: shadow digital economy, entrepreneurial activity, commercial secret
    Abstract: The article explores trade secret protection management in the context of the shadow digital economy (SDE). The study aims to identify threats to trade secrets associated with SDE and propose effective protection methods. It emphasizes that the economic value of trade secrets lies in their confidentiality, making them vulnerable to data leaks, cyberattacks, and other risks, particularly in the digital environment. The authors examine the nature of trade secret in terms of SDE spread. The paper presents methods of trade secret protection, including documentary, economic-organizational, and information-analytical types. Special attention is paid to the combined use of patent protection and encryption techniques. The study concludes with key findings, highlighting the need for enhanced cybersecurity, international cooperation to combat cyber espionage, and improved organizational measures. This work significantly contributes to the understanding of commercial secret management and offers valuable recommendations for businesses operating in the digital economy.
  • Ilian Minkov, Milen Dinkov, Petya Dankova
    CORPORATE SOCIAL RESPONSIBILITY ASPECTS WITHIN THE PUBLICISED CORPORATE CULTURE OF BULGARIAN COMPANIES
    JEL: M14, M39.
    Keywords: corporate social responsibility (CSR), publicised corporate culture, strategic management, business organisations
    Abstract: In recent years, the notion that business has a broad responsibility to society as a whole has gained significant momentum and is reflected in various academic theories, business practices and regulations. The concept of corporate social responsibility (CSR) has been interwoven with various academic fields, including strategic management and corporate culture. In order to establish a reputation as a socially responsible business entity, it is necessary for companies to adequately disclose CSR activities and events in the virtual space. The aim of this paper is, therefore, to examine the scope of CSR disclosure on the Internet by organisations from different sectors of the Bulgarian economy and its role in the portfolio of publicised corporate culture. The research methods used to achieve this aim include establishing relative values, comparative analysis and content analysis. The findings of the study demonstrate that there is an ambiguous attitude towards CSR in the companies surveyed, as in certain sectors it has a high degree of disclosure and is leading in rank, while in others it is present on the web pages of a small number of companies and has a rather peripheral role among the other elements in the portfolio of publicised corporate culture. To improve the communication effectiveness of the CSR component within the publicised corporate culture, it is essential that the information, initiatives, and priorities disclosed on the company web page are relevant and consistent with the fundamental aspects of the culture, specifically the mission, vision and values/principles.
  • Nataliia Kurovska, Dmytro Dema, Oleksandr Vilenchuk, Larysa Nedilska, Olga Vikarchuk
    CORPORATE SOCIAL RESPONSIBILITY OF AGRIBUSINESS AS A DETERMINANT FOR ENSURING THE DEVELOPMENT OF RURAL AREAS OF UKRAINE
    JEL: A13, M14, Q13
    Keywords: agricultural sector, corporate social responsibility (CSR), rural development
    Abstract: The growth of scientific and practical interest in the problems of corporate social responsibility relates to the public demand for value orientations of modern life, which are based on the principles of democracy, objectivity and justice. The basis of multifunctional rural development should be recognized as the social responsibility of all stakeholders interested in improving the quality of rural residents’ lives. The purpose of the study is to conceptually reveal and substantiate the activation processes of corporate social responsibility in the rural development of Ukraine in the conditions of European integration. The methodological basis of the study is based on the use of various methods of scientific knowledge, in particular: abstract-logical, structural-functional, induction and deduction, concretization, and graphic methods. During the conducted research, an assessment of the level of corporate social responsibility was carried out based on the parameters of the increase in the volume of social expenses and their structure among business entities in the agricultural sector of Ukraine for 2014-2022. Using consolidated reporting (financial and non-financial) of the leading producers of agricultural products in Ukraine, a correlation-regression model was formed. An assessment of the impact on the social costs’ quantity of agricultural holdings of factors such as capital profitability, land profitability and the volume of net income per 1 ha of agricultural land was carried out. Based on the modelling results, it was established that the mentioned agricultural producers have the necessary financial resources to strengthen social activity in rural areas, primarily thanks to the rational use of land capital. The main results of the study are aimed at integrating the corporate social responsibility of agribusiness into all areas of life in rural areas, ensuring a combination of moral and ethical, and socio-economic foundations of rural development.
  • Serghei Ohrimenco, Dinara Orlova, Valeriu Cernei
    CYBER THREATS MODELING: AN EMPIRICAL STUDY
    JEL: E26, C8, O17, M15
    Keywords: empirical model, cyber threats, shadow digital economy
    Abstract: The immediacy of this study is determined by the need to fight back against the modern cyber threats that arise in the process of building a digital economy. The issues of countering various cyber threats in the activities of small and medium enterprises, firms stand to be a serious problem. Its relevance is constantly increasing. This is due to a number of objective reasons, the main of which are the following. Firstly, the globalization of economic processes, which leads to a situation where the technical, software and information component of the Information System (IS) is the same in relation to all countries developed in terms of information. Secondly, a significant change in the landscape of the IS threats themselves. It should be noted that the changes affected both quantitative and qualitative characteristics. Malware, Network Scanning, Man in the Middle, Phishing, DNS Spoofing, Trojan Horses. These are just a few examples of cyber threats carried out against small and mid-sized businesses and government information systems every day. The current condition of the information security system of governmental and commercial structures does not provide efficient resolving of up-to-date cybersecurity problems and creation of confident interaction between the critical infrastructure objects. It should be assumed that there is a need to update the theoretical and methodological base and practical developments that can protect the rights and legitimate interests of the individual, business and the state from modern security threats and increase the level of security of our economy. The article logically combines the study of the modern landscape of cybersecurity threats, the construction of an empirical model of security threats (with the allocation of a monetization block), the demonstration of the results of processing statistical data characterizing the distribution of the frequency of occurrence of specific threats. The paper aims to build an empirical model of cyber threats based on a study of huge number of relevant literature sources and statistical data.
  • Rosen Ivanov Kirilov
    DEVELOPMENT OF A METHODOLOGY FOR THE IMPLEMENTATION OF SECURE WEB APPLICATIONS IN BUSINESS ORGANIZATIONS
    JEL: K24, L86, P46.
    Keywords: cyber security, cyber threats, cyber security concept, technological protection measures
    Abstract: Background: Web application development is a difficult and complex task. The complexity is mostly expressed in the multitude of tasks that must be performed in the development life cycle. In today's environment, it is important that web applications prove their security and resilience in a changing cyber environment. For these reasons, web applications should meet a number of requirements in the process of their technological implementation, which is explored in the article. Methods: The methods used are related to a literature survey on the cyber security requirements of web applications and the characteristics of their life cycle. On this basis, basic key issues of vulnerability testing of developed systems in business organizations have also been studied. Results: As a result of the development of the methodology its main components have been tested in the development of web applications. The achieved application protection levels as a result of the implemented measures have been reported and analyzed. On this basis, some possibilities for improvement of the proposed methodological components are outlined. Conclusions: As a result of the studies and analyses basic conclusions have been drawn about the possibilities for developing and implementing secure web applications in business organizations.
  • Marajn Angeleski, Olivera Kostoska
    DIGITAL LEARNING IN A POST-PANDEMIC ECONOMY: EVIDENCE FROM EUROPEAN COUNTRIES
    JEL: I21, C38, C80.
    Keywords: Covid-19, digital learning, education, Europe, cluster analysis, programming models
    Abstract: Background: The Covid-19 pandemic has enabled countries to jump faster into the future of digital learning. However, the question arises as to what the lasting effects of the pandemic would be, in terms of what education will look like in the post-Covid era; will this way of learning become the ‘new normal’ or should the world immediately be returned to pre-pandemic mode of physical classroom. Purpose: This article aims to address the above-mentioned challenge by examining trends, shifts, and changes in doing online courses or using online learning materials across European countries prior to the outbreak of the pandemic until the time when many countries removed the measures. Methods: The analysis is based on Eurostat statistical data for 37 European countries regarding Internet use by individuals doing online courses and Internet use in general from 2019 to 2022. Aside from descriptive statistical analysis and distribution of data and trends, a cluster analysis is performed to examine how different groups of countries respond to pandemic-induced changes and how they can move forward in terms of digital learning practices. All statistical measurements are performed in the Python programming language using diverse set of libraries, including algorithm for conducting a cluster analysis. Results/conclusions: The results suggest that during the temporary physical closures due to the pandemic, online courses were considered a safe backup system for learning and training, but the popularity of virtual courses declined as social restrictions began to ease. At the same time, the composition of clusters evolves over time, which points to changes in the dynamics of engagement in online courses among various groups of countries. Overall, the analysis made here represents a useful guide for formulating strategies to further promote and support digital inclusion and online education initiatives.
  • Lulzim Rashiti, Art Shala, Xhevat Sopi
    DIGITAL MARKETING IN RETAIL BANKING – ANALYSIS OF MANAGERS’ ATTITUDES
    JEL: M31, G21
    Keywords: digital marketing, retail banking, manager’s attitudes, social networks, digitalization.
    Abstract: This study explores the digitalization of the banking sector in Serbia and the attitudes of bank managers towards digital communication channels and the future of the industry. A survey was conducted with 87 bank mangers of marketing departments. Descriptive statistical methods were used to analyse the research data and to describe the attitudes of the managers regarding the purpose of the paper. Firstly, there is a positive correlation between a positive attitude towards digital retail banking services and motivation for their current use in Serbia. Most respondents (75.9%) believe that digital sales channels will replace traditional bank branches in the foreseeable future. This reflects a general acceptance and recognition of the role of digitalization in the banking sector. In this regard, 24.2% believe that digital transformation is critical for driving business performance and increasing market share. This research contributes to the growing body of knowledge on digital transformation in the banking sector and provides valuable insights for banks in Serbia and beyond.
  • Simona Cincalova, Leo Mataruka, Kamila Masarova, Joe Muzurura
    DRIVING PROFITABILITY THROUGH SOCIAL RESPONSIBILITY: UNVEILING THE SUCCESS STORY OF AUTOMOTIVE PLANT STELLANTIS SLOVAKIA
    JEL: G3, M14.
    Keywords: Social responsibility, Corporate financial performance, Corporate social responsibility, stakeholder engagement, Institutional pressure, CSR goals, Automobile plant, Stellantis Slovakia, Environmental impact
    Abstract: This study examines the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) in Slovakia's unique context of the Stellantis automobile plant. Driven by the growing focus on mitigating business impacts and delivering value to stakeholders, the research explores CSR as a strategic tool to enhance competitiveness. The analysis utilises Stellantis Slovakia's financial reports from 2017 to 2021, incorporating horizontal and vertical analysis of assets. A questionnaire has also been administered to gauge employee perception of the company's CSR initiatives. The survey findings reveal a positive correlation between stakeholder engagement and CSR. Stellantis Slovakia's car plant showcases a commendable CSR commitment, with the potential to set more precise, measurable objectives to drive sustainability efforts. The company's robust financial performance, characterised by significant net profit growth, is in line with industry trends, suggesting that CSR-oriented firms enjoy enhanced CFP. The survey underscores the highly positive employee perception of CSR, related to moral commitment, thereby supporting previous research on CSR-driven employee engagement and productivity. This study deepens our understanding of CSR's impact on financial performance, offering practical recommendations for Stellantis Slovakia. Integrating CSR can improve the company's image, enhance employee motivation, reduce costs and drive revenue growth, thereby highlighting the strategic value of socially responsible practices and encouraging optimism about the potential benefits of these practices.
  • Nguyen Minh Quan, Bui Thanh Khoa, Van Thanh Truong Nguyen
    ELECTRONIC WORD-OF-MOUTH BEHAVIOR OF PASSENGERS IN THE AIRPORT: THE COMBINATION OF SOR AND COMMITMENT-TRUST THEORY
    JEL: M30, M31, L93.
    Keywords: Electronic word-of-mouth behavior, airport service quality, passengers’ pleasure, passengers’ trust
    Abstract: Because airports serve as symbolic representations of a nation, careful oversight of airport service quality is essential to preserving a positive international reputation. Getting a competitive edge by satisfying travelers and vacationers with first-rate service is critical to spur real economic growth. This paper investigates the impact of airport service quality on passengers’ pleasure and its subsequent impact on trust and electronic word-of-mouth behavior. The survey data reveal that six dimensions of airport service quality, including check-in, security, convenience, ambiance, basic facilities and mobility, were analyzed for their impact on passengers’ pleasure. The results show that the quality of these services in the airport has a significant impact on passengers’ pleasure. Positive airport experiences lead to increased trust and positive electronic word-of-mouth behavior. The findings highlight the importance of providing high-quality airport services to enhance customer pleasure and maintain positive customer perceptions and behaviors toward the airport.
  • Mariana Bravo Sepúlveda, Jorge Andrés Polanco, Felipe Isaza Cuervo
    ESTIMATING THE INCIDENCE OF OPERATIONAL RISKS ON CORPORATE SUSTAINABILITY IN THE CEMENT INDUSTRY THROUGH FINANCIAL SIMULATION
    JEL: D81, Q01, G0.
    Keywords: Operational Risk Model, corporate sustainability, Monte Carlo simulation, cement industry
    Abstract: This study estimates the impact of operational risks on corporate sustainability in the cement industry through a financial simulation. The methodology is based on a case study in the cement industry and identifies company’s operational risks before classifying them through a taxonomy of environmental, social and economic variables. The impact is quantified using a stochastic model with a Poisson distribution for frequency and a PERT distribution for severity. The results show that it is possible to quantify aggregate losses through the proposed probability distributions, eliminating the limitations faced by companies in the absence of historical information, and it is concluded that the average impact of these risks on FCF varies between 7.52% and 13.13% for the case study, also demonstrating that the impact is reduced when risks are proactively managed. Finally, the proposed model allows calculation and simulation of the financial impact of these risks on the company’s free cash flow and establishes strategies for cost mitigation and financial optimization. This research has two limitations: the validation in a single industry and the limitation of using solver for optimization.
  • Alex Atanasov
    FROM BUSINESS ORGANIZATIONS TO JUDICIAL HIERARCHIES: ERROR CORRECTION LESSONS
    JEL: K40, K41, K49, H1, L20, L21
    Keywords: error correction, judicial hierarchy, judiciary, appellate courts, economic entities, organizations, social efficiency, court specialization
    Abstract: In this paper I am trying to answer the question of how analysis of business organizations can be useful in evaluating judicial hierarchy when it comes to error correction. I apply business organizational knowledge to analyse judicial hierarchies by evaluating the economics of the correction of legal errors. The method I use is a multidisciplinary analysis drawing upon law, economics, game theory and business studies. The social, political and economic importance of judges dispensing justice correctly is fundamental; it enhances societal order, cohesion, efficiency, and behavioural predictability. I demonstrate that judicial hierarchies have mixed results in determining and correcting errors made by lower-level courts. During my examination, it becomes apparant that while the current degree of knowledge related to judicial hierarchies is limited, business studies can prove beneficial. I examine the following factors: the organization of modern business hierarchies, the complexities of judicial errors, the tension between individual and societal interests, the judicial process as a quasi-market, market failures and hierarchical solutions, errors as social dilemmas and failures of individual rationality
  • Lyudmil Naydenov
    HOUSEHOLD EXPENDITURE DURING A PANDEMIC: COVID-19 AND THE CASE OF BULGARIA
    JEL: H20, Í27, Í31.
    Keywords: household total expenditure, household monetary expenditure, COVID-19, household budget
    Abstract: This article examines the expenditures of Bulgarian households during the COVID-19 pandemic. It specifies the theoretical and methodological features of the concepts of the household total and monetary expenditures and outlines their structure and specific characteristics. It also proves that the amount of total consumer expenditure is greater than the amount of monetary consumer expenditure. The structure and dynamics of the total expenditure average per household and per person are analyzed, deriving the factors that affect the trends in the change of the studied categories. The object of study is household total expenditure, and the subject involves the supposed role of COVID-19 as a factor that affects the state and dynamics of household total expenditure and/or its structure in Bulgaria. The conclusion is that there is a negative pandemic impact, but it should not be overestimated and/or dramatized.
  • Laura Pilukiene
    HR MANAGEMENT CHALLENGES IN THE CONTEXT OF THE COVID-19 PANDEMIC: THE CASE OF THE LITHUANIAN HOSPITALITY INDUSTRY
    JEL: M12, M54.
    Keywords: Human Resources, challenges, hospitality industry, Covid-19, Lithuania
    Abstract: The purpose of the paper is to analyse the challenges of HR management, related to four themes such as workforce burnout and stress, personal safety, job satisfaction, and post-crisis training and development, which have resulted from the Covid-19 pandemic in the hospitality industry in order to increase the level of resilience in the future difficult situation. To achieve the stated goal, a semi-structured interview on HR management experts of Lithuanian hospitality companies has been carried out. The results of the study have enabled the author to detail the HR management challenges (related to highlighted four themes) caused by the Covid-19 pandemic in the Lithuanian hospitality industry and find sub-themes that are potentially relevant directions of future research. These findings can help managers and decisions makers increase the level of resilience of the hospitality company in a difficult situation.
  • Olena Sushchenko, Kateryna Kasenkova, Serhii Sushchenko
    INNOVATIVE MARKETING TECHNOLOGIES IN THE DEVELOPMENT OF THE TOURISM SPECIALIZED TYPES
    JEL: Z32
    Keywords: tourism, marketing, territory marketing, sustainable development
    Abstract: New tools and innovative marketing technologies are emerging in the process of globalization and digitalization of society. The aim of this paper is to review and evaluate the prospects of Internet technologies as tools for analyzing consumers of the tourism market and segmentation of destinations according to specialized types of tourism. The paper uses scientific research methods - analysis, synthesis, systems approach and graphical approach. The possibility of using Ads Manager to collect information and as a communication channel with potential consumers of services is considered. In order to be able to analyze current trends and initially respond to customer requests and wishes, every year more and more analytical systems with complex algorithms appear, a clear example of which was the Google Trends system. It is determined that such information collection technologies are promising. It is confirmed that the pace of innovation is accelerating under the double pressure of changes in tourist behaviour and large-scale technological mutations.
  • Mariyana Pavlova Banova, Asen Bozhikov, Ivan Angelov, Iskren Tairov, Aleksandrina Borisova Aleksandrova, Kristina Georgieva, Mariela Stoyanova
    INTEGRATING CRISIS MANAGEMENT MECHANISMS IN EUROPEAN COHESION POLICY
    JEL: I00, M2, H76, H12
    Keywords: regional disparities, integrated territorial investment, crisis management, European policy
    Abstract: The series of challenges facing modern society posed by the consequences of the global economic crisis, the debt crisis in Europe, the Covid-19 pandemic, the war in Ukraine, etc. inevitably determine the relevance of research in the field of crises and the mechanisms for dealing with them. The aim of this publication is to examine the effectiveness of the introduced crisis management toolkits within the EU. The research methods used are limited to the study of scientific knowledge on the relevant issue, critical analysis and expert evaluation of the adopted approach to recovery by the Community. As a result of the conducted research, the tools that the EU applies to deal with the negative consequences of Covid-19 and the war in Ukraine have been clarified. Priority areas for impact are identified depending on the applied mechanisms and new horizons for development are defined. In this context, the role of integrated territorial investments (ITI) in this process is also considered.
  • Mykhaylo Oryekhov, Dariia Zelinska, Vladyslav Hirdvainis, Victoria Yatsenko, Valerii Mytsenko
    MANAGING THE INTELLECTUAL POTENTIAL OF GLOBAL VALUE CHAINS IN THE CONTEXT OF DIGITALIZATION CHALLENGES
    JEL: O32, O33, M15, L23.
    Keywords: digitalization, global value chains, intellectual potential, challenges
    Abstract: This article delves into the interrelationship among contemporary economic phenomena, namely global value chains, digitalization, and the management of intellectual potential. The paper scrutinizes and underscores the antecedents that led to the inception of the global value chains concept, and delineates an evolutionary diagram of this notion. The aim of this paper is to examine the importance of global value chain challenges and their impact in the digitalization context. To achieve this goal, the Delphi method of collective examination is used in order to conduct a large-scale survey with the involvement of economists working in the global value chains field. The results of the study show that the factor “Lack of skills in the use of digital technologies” is the most influential, and the factor “Corporate culture” is the least influential. A statistical survey was carried out, involving a sample of sixty respondents who are experts in the field. Subsequently, a number of challenges were ranked based on the scores obtained through the Delphi collective examination methodology. The research confirms the pronounced significance of macro groups encompassing challenges to cyber security and the degree of digitalization among the company’s personnel. The novelty of this research lies in the proposed classification of the challenges of the global value chains in the digitalization context and conclusions obtained thanks to the collective expertise regarding the significance of the classified factors.
  • Galina Zaharieva, Onnik Tarakchiyan, Andrey Zahariev
    MARKET CAPITALIZATION FACTORS OF THE BULGARIAN PHARMACEUTICAL SECTOR IN PANDEMIC ENVIRONMENT
    JEL: G20, G30, I18.
    Keywords: market capitalization, pharmaceutical sector, COVID-19
    Abstract: The article is focused on the changes of the market capitalization in the Bulgarian pharmaceutical sector during the COVID-19 pandemic. The aim of the article is to measure and justify the impact of a set of factors that affect the market capitalization of public companies from the Bulgarian pharmaceutical sector in a pandemic environment. The main performance indicator under consideration is the market capitalization of the leading pharmaceutical companies included in the BGBX40 stock exchange index during the two-year pandemic period (from June 2020 until May 2022). For the purpose of the research, a multiple linear regression model (OLS) is employed with the help of GRETL open-source software. Four of the selected eight impact factors are related to the sales of medical products; three are related to COVID-19 statistics and the last is a stock market index. The results from the analyses evidence a strong relationship between the impact factors and the market capitalization of Bulgarian pharmaceutical companies during the pandemic. The coefficient of determination shows that 96% of the change in the market capitalization could be explained by the change in the factors included in the model. The growth of the market capitalization of the studied Bulgarian companies over a period of 2 years is comparable to that of the world leading pharmaceutical companies that offer COVID-19 vaccines.
  • Lyubka Ilieva, Mariyana Bozhinova, Lyubomira Todorova, Pavlin Pavlov
    MEASURING THE INNOVATION ACTIVITY OF TOURISM BUSINESSES IN BULGARIA
    JEL: L83, O30, C51.
    Keywords: innovations, innovation activity, tourist enterprise, tourism.
    Abstract: The implementation of innovations in tourism enterprises is a key factor in increasing their competitiveness. A challenge for the tourism businesses in Bulgaria is to develop innovative solutions that will diversify their tourism products, optimize business operations and improve the overall efficiency of the tourism industry. The aim of this research is to systematize and interpret theoretical and empirical statements of innovations in tourism in order to propose and test a model for measuring the innovation activity of tourist enterprises in Bulgaria and, based on this, to formulate conclusions and recommendations. This paper examines the scope of innovation activity of tourism enterprises and measures their innovation activity by means of a proposed model that has been tested in organizations providing tourism-related services. Research methodology includes induction and deduction, method of analysis and synthesis, analogy, content analysis, comparative analysis, survey, etc. As a result of the research, an innovation index is calculated, using the developed Model for measuring innovation activity in tourist enterprises, based on the evaluation of seven groups of qualitative indicators, and conclusions and recommendations are formulated for the promotion of innovation activity in the tourism sector. The tested model shows that it is possible to measure the innovation activity in the tourism sector by covering all enterprises offering the main tourism services.
  • Snezhana Sulova, Olga Marinova
    METADATA MANAGEMENT FRAMEWORK FOR BUSINESS INTELLIGENCE DRIVEN DATA LAKES
    JEL: C8.
    Keywords: data lake, metadata, metadata management, data lake architecture, conceptual metadata framework.
    Abstract: Data lakes (DL) provide powerful capabilities for processing and utilizing large and diverse data, helping organizations adapt to the modern environment and extract maximum value from the information at their disposal. Effective data analysis provides actionable knowledge which is a competitive advantage for organizations. Metadata management in data lakes is a key element in ensuring their full functionality. At the same time, this is a dynamic and under-researched area that reflects the rapid development of information technology and the business needs for effective data management. The research is based on a thorough scientific analysis of existing publications on the chosen topic. For this purpose, up-to-date and relevant open access publications from Scopus and Web of Science that correspond to the keywords "data lake" and "metadata" are identified and are from the last 15 years. Based on a review of the existing literature, the main challenges in data lake metadata management are highlighted. The goal of the research is to summarize the existing models in the field of metadata management in data lakes and to propose a new conceptual framework that can serve as a useful guide for designing and implementing metadata management models in heterogeneous data warehouses, as well as implementation steps. The concept's adoption involves a detailed study of the data management model in a specific organization, a measurement of the level of effectiveness after the model’s implementation, and the use of additional metrics to confirm its feasibility. These tasks are therefore the subject of future research. Another limitation of the proposed framework is that it does not address in depth the rules and standards related to ensuring data security, which would be of the highest priority especially in sectors such as finance, defence and healthcare. In addition, further research could also focus on future analysis of the level of satisfaction with the transformation of metadata management processes.
  • Zalozhnev A. Yu, Chistov D. V.
    MODELS FOR MAKING DECISIONS ON PURCHASE VOLUMES DEPENDING ON THE ASSESSMENT OF UPCOMING RETAIL SALES
    JEL: L81, F14, F17.
    Keywords: wholesale trade, volume of purchases, commodity stock, profit, optimization model in trade
    Abstract: This article considers an economic system that consists of three types of business entities: a manufacturer, a distributor (wholesaler), and a retailer. Mathematical models that allow the distributor (wholesaler) to make informed decisions about the volume of goods purchased from the manufacturer are considered, using the assessment of upcoming retail sales, assuming that the manufacturer's selling price depends on the volume of purchases. Models are built from the standpoint of resolving conflicts between participants in the decision-making process: purchasing managers who strive to have enough inventory and financiers who want to reduce this volume, for example, to increase the liquidity of the organization's assets or reduce storage costs. The constructed models allow the distributor to solve the problem of determining the optimal volume of goods to purchase that will maximize additional profit
  • Olena Sushchenko, Giga Abuseridze, Liubov Ivchenko, Sergiy Kravtsov, Tetyana Prymak
    NOSTALGIC TOURISM MANAGEMENT BASED ON GERMAN SETTLEMENTS IN SOUTHERN UKRAINE
    JEL: Z30, Z39
    Keywords: nostalgic tourism, German settlements, southern Ukraine, tourism management, heritage resources
    Abstract: The prospects for the formation and development of nostalgic tourism in Ukraine as a direction of the future intensification of inbound and domestic tourist flows are assessed in the article. The study of the possibilities of diversification and further changes in the structure of tourism in Ukraine is particularly relevant in connection with the events currently taking place. The presence of numerous homogeneous resources, remained from a sufficiently long stay of the German population on Ukrainian territory, provides an opportunity to form an innovative tourist product on this base. Special attention in the article is paid to the southern regions of the country, in particular, the Mykolaiv region, where an inventory of heritage resources was recently conducted for the development of creative tourism. On the site of German settlements, the establishment of which began in the south of Ukraine from the end of the 18th to the beginning of the 19th century, there are historical and architectural monuments in the form of churches, farm buildings, gymnasiums, and residential buildings. There are many resources preserved with maps of German settlements, registers of archival cases, geographic indexes of places and lists of citizens of German nationality who once lived in the territory of Southern Ukraine. Therefore, the purpose of the study is to analyze the possibilities of intensification of inbound nostalgic tourism in the southern regions of the country, in particular, the Mykolaiv region. The article analyzes the number and distribution of descendants of German immigrants, which can serve as a basis for determining the most attractive destinations for nostalgic tourism. Analysis of the dynamics of the inbound tourist flow from Germany to Ukraine in 2014-2018 allowed us to estimate the average annual growth of 28,175 persons. To predict the number of German tourists, the linear regression method was used, which showed a trend of sustainable growth and allowed us to conclude that nostalgic tourism is promising for tourists from Germany. It should be noted that this growth occurred despite military operations on the territory of the country. Therefore, the development and implementation of nostalgic tours and excursions, including visits to the places of former settlements in southern Ukraine, seems appropriate. At the same time, the research revealed a sufficient number of resources (documents, lists of residents of certain settlements, places from which immigrants came), which should be used in the future for the practical formation of targeted tourist offers.
  • Vesselin Blagoev, Elena Shustova, Alexandr Koichubayev
    PERCEPTIONS ABOUT IMPLEMENTATION OF SERVICE ROBOTS IN HOSPITALITY BUSINESSES IN KAZAKHSTAN AND RUSSIA - COMPARATIVE ANALYSIS
    JEL: O33, A14, M1.
    Keywords: hospitality, perceptions, robotization, quality, effectiveness
    Abstract: Our goal is to assess the understanding and acceptance of robotization in hospitality, based on research done in the two countries. This research applies a survey method to collect respondents’ opinion of hospitality employees vs hospitality customers. The main sampling frames are formed by employees of hotels, restaurants and other hospitality businesses. Five hypotheses are studied and tested for the two categories of respondents in each country. The results from the statistical analysis differ for the studied countries, and between the two studied categories of respondents. The study confirms the expectations of improving the quality and increasing the effectiveness of robotizing the hospitality businesses. This research adds knowledge and understanding of how the hospitality employees and customers in Kazakhstan and Russia consider the implementation of service robots. The statistics show that the findings have value and can be used by hospitality managers when they consider possible robotization.
  • Tatjana Spaseska, Ilija Hristoski, Dragica Odzaklieska
    PROFITABILITY PUZZLES: INSIGHTS FROM NORTH MACEDONIAN BANKS
    JEL: G21, C32, C52
    Keywords: banks, profitability, bank-specific determinants, macroeconomic determinants, ARDL methodology, North Macedonia
    Abstract: The profitability of banks, as an indicator of financial performance, reflects their ability to generate substantial revenues. Bank profits are essential for their survival, solvency, and growth in a highly competitive environment. Moreover, even if solvency is high, poor profitability undermines a bank’s capacity to absorb negative shocks, which can eventually impact its solvency. Consequently, profitability has a vital role in maintaining the stability of the banking and financial system as a whole. Hence, the primary goal of this research is to analyze several important bank-specific and macroeconomic determinants of bank profitability in the Republic of North Macedonia. More specifically, the paper investigates how the Return on Average Assets (ROAA) is influenced by the Capital Adequacy Ratio (CAR), Credit Risk (CR), Cost to Income Ratio (CIR), Loan to Deposit Ratio (LDR), Inflation Rate (IR), and Gross Domestic Product Rate (GDPR). Using secondary data from trustworthy sources, covering quarterly time series from 2005:Q1 to 2023:Q4, we employ correlation analysis, Granger causality tests, as well as the Auto-Regressive Distributed Lag (ARDL) approach to examine both short- and long-run dependencies among the variables. The results confirm the statistically significant impact of the regressors on the dependent variable and provide a solid foundation for the successful management and enhancement of banks’ profitability.
  • Irma Dikhaminjia, Kanat Tireuov, Tatia Qajaia, Zhibek Khussainova
    RESEARCH OF SOME FACTORS AFFECTING DISCRIMINATION IN THE ORGANIZATION AND ITS IMPACT ON CONFLICT SITUATIONS
    JEL: J7, J0, J1.
    Keywords: discrimination, conflict situations, leadership, job satisfaction, organizational culture
    Abstract: The study of discrimination in organizations remains significant. Discrimination leads to various processes linked to conflict situations. In many instances, discrimination stems from the leader's management style. It is also important to consider that any form of discrimination in an organization that causes conflict situations affects the psycho-emotional state of employees, negatively affects their health and personal lives, and ultimately disrupts the work-life balance. The mentioned condition directly affects employee performance. We identified the factors that created significant problems in the relationship between leaders and followers in Georgian organizations. The study was conducted in the Ministry of Economy and its subordinate structural units. Data were collected through an anonymous questionnaire. The developed questionnaire included 64 questions. 720 respondents participated in the survey. Hypotheses were developed and tested using the SPSS statistical package during the research process. Based on the data analysis, important recommendations were developed.
  • Irena Markova
    SPACE INSURANCE – INNOVATIONS AND CHALLENGES FOR THE INSURANCE BUSINESS
    JEL: G22.
    Keywords: space insurance, insurance products, space industry, space risks, environmental pollution liability insurance
    Abstract: The study focuses on the theoretical and applied aspects of insurance in the aerospace industry. The author's aspiration is to substantiate the role of space insurance as one of the main methods of increasing corporate security in space companies. The increased insurance needs and interests in the space sector in recent years have stimulated innovations in insurance activity and posed new challenges for insurers. The harmonious combination of insurance with the prevention and limitation of the impact of space risks is a prerequisite for effective corporate risk management in the space sector. The article proposes a model of the space insurance market, which analyses the relationships between its entities and substantiates the interrelationships between the space industry and the insurance business.
  • Ravi Kumar, Babli Dhiman
    SPILLOVER EFFECTS BETWEEN INDOCHINA METAL FUTURES MARKETS
    JEL: G0, G1, F0.
    Keywords: spillover, Granger causality, DCC - GARCH, metal futures market, correlation.
    Abstract: India and China have been at the top of the exporter, importer, producer and consumer economies. The two neighbouring countries provide the largest market in the world. They also share a similar history of development of their commodity derivatives markets. This paper aims to examine the direction of causality and spillover effect between the metal futures markets of the two economies. The analysis is done for metals such as copper, aluminium, zinc and gold in the period 2009 - 2020 by using Granger causality and Dynamic Conditional Correlation -GARCH (DCC-GARCH) models. The gold futures at the Multi Commodity Exchange (MCX) have a unidirectional causality on the gold futures traded at Shanghai Futures Exchanges (SHFE), unlike other metals having bidirectional causality. Similarly, GARCH results report only long-term volatility spillover for gold futures returns, while for the base metals, both short-term and long spillover exist. The findings indicate that the Indian metals futures market has started to influence the Chinese metal futures. The results have important implications for policymakers, regulators, industrialists and offshore traders of physical commodities in hedging their positions.
  • Ivan Marchevski, Krista Tsvetanova Neykova
    THE CONSUMER CHOICE OF TOURISM PRODUCTS – SUSTAINABLE CRITERIA FOR MARKET SEGMENTATION
    JEL: M31, Z33, L83, C19
    Keywords: tourist market, market segmentation, segmentation criteria, cluster analysis, Bulgarian tourists.
    Abstract: The purpose of this paper is to empirically identify relevant and sustainable criteria for segmentation of Bulgarian consumers of tourism products in the process of making purchasing decisions. The study draws on original data gathered through an online survey of 898 Bulgarians, which was analysed using a range of statistical tests. Segmentation was performed using cluster analysis (hierarchical and non-hierarchical clustering). The analysis suggests that Bulgarian consumers of tourism products can be adequately and consistently segmented on the basis of five criteria: (1) their preferred mode of travel, (2) mode of planning and organising tourist trips, (3) the type of tourism they prefer, (4) the budget they normally spent for tourism and (5) their preferences regarding used sources of information. The market segments identified are directly related to a specific aspect of consumer choice in the purchase decision process. The results of this study can be used by providers of tourism services (tour operators, travel agencies, etc.) when defining the parameters of the tourist services they offer in order to influence consumer choice in the purchasing decision process.
  • Silviu Miloiu, Atanas Atanasov, Galina Chipriyanova, Radosveta Krysteva Hristova
    THE GREEN AND SOCIALLY RESPONSIBLE BUSINESS IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT
    JEL: F62, F63, F64, G39, L00, M41, Q01, Q50, Q56.
    Keywords: green business, socially responsible business, sustainable development, corporate social responsibility, business management model
    Abstract: The green and socially responsible business, in the context of environment and resource protection, improving the quality of life for workers and employees at the corporate level and of the society as a whole, and oriented towards sustainable economic development, finds expression in the full integration of economic, environmental and social commitments of companies in the course of their business activities, in their interactions with the environment, and in their relationships with personnel, contractors and society. The thesis defended is that environmental protection and the implementation of socially responsible practices by companies can be successfully achieved with an effective management system that is tailored to the specific nature of the business and the best practices in the field, and with the support of an environmentally and socially responsible leader. The results of the study find an expression in revealing the process of transformation: "traditional business model - green and socially responsible business", highlighting the importance of turning companies into green and socially significant organizations with a good reputation.
  • Danh Luu Xuan, Nguyen Thanh Long
    THE IMPACT OF DIGITAL TRANSFORMATION, CORPORATE SOCIAL RESPONSIBILITY AND MARKET ORIENTATION ON FIRM PERFORMANCE: EVIDENCE FROM VIETNAMESE COMMERCIAL BANKS
    JEL: C38, M14, M15, M21
    Keywords: CSR, market orientation, digital transformation, firm performance, banking in Vietnam
    Abstract: Digital Transformation (DT) has become a critical factor for maintaining competitiveness in the financial sector. However, the interplay between Market Orientation (MO), Corporate Social Responsibility (CSR), DT, and their combined impact on Firm Performance (FP) remains underexplored, particularly in emerging markets such as Vietnam. This study addresses this gap by examining the relationships in Vietnam's financial industry. The structural equation modeling (SEM) approach was applied to analyze 250 valid responses collected from 2,411 commercial bank branches in Southeast Vietnam. Stratified sampling and snowball sampling methods ensured regional representation. The findings reveal that DT directly enhances FP and acts as a key mediator, strengthening the effects of MO and CSR. DT facilitates real-time responsiveness, enhances transparency, and integrates technological advances with market and social strategies. The study highlights the strategic importance of embedding DT into CSR and MO frameworks to optimize efficiency, achieve sustainable development, and create competitive advantages in an increasingly digitized financial sector.
  • Angel Stoykov
    THE INFLUENCE OF SOCIAL MEDIA ON ADVERTISING TOURISM SERVICES (IN THE EXAMPLE OF BULGARIA)
    JEL: L83, Q56, Z32.
    Keywords: tourism, social media, impact, trends, digitalization, sustainability.
    Abstract: This article aims to provide an in-depth review of current literature related to the rapid and inevitable spread of social networks as a source of information influencing consumer opinion. To achieve this, it looks at how internet platforms are becoming an invariable part of the user's daily life. The main trends showing the place and role of social networks such as advertising tools in the tourism industry are revealed. It also examines their impact on the end user, tourist preferences, how they change and comply with new understandings. Two hypotheses are put forward for proof. In the course of the research, the following scientific methods were used: analysis, synthesis, graphical and systems approach.
  • Rumen Erusalimov, Ventsislav Vasilev, Aneliya Paneva
    THE NON-LIFE INSURANCE MARKET IN BULGARIA – 15 YEARS AFTER THE COUNTRY'S ACCESSION TO THE EUROPEAN UNION
    JEL: G22, G52.
    Keywords: insurance market, Non-Life Insurance, insurance penetration, insurance density, product structure, structural changes
    Abstract: The main aim of the study is to establish the state and development of the leading insurance industry in our country – Non-Life Insurance, as well as to outline its importance as an economic sector and to determine its market structures after Bulgaria's accession to the European Union in 2007. The article traces the dynamics of gross written premiums realised by insurers in Non-Life Insurance during the period 2007-2021. The place of Non-Life Insurance in the Bulgarian economy has been established through the indicators "insurance penetration" and "insurance density". Its product structure for the same period has also been studied. As a result of the research, it is concluded that Non-Life Insurance in Bulgaria occupies a small share of the country's economy; Bulgarian citizens do not spend enough money on insurance, and the product structure of the market is dominated by Motor Insurance.
  • Badri Gechbaia, Mariyana Bozhinova, Ketevan Goletiani, Giorgi Abashidze
    THE ROLE OF HRM IN EMPLOYEE MOTIVATION: STRATEGIES AND KEY FACTORS IN THE MODERN WORKPLACE (EXAMPLE OF GEORGIA)
    JEL: M12, M54, J24
    Keywords: human resource management, employee motivation, organizational culture, productivity.
    Abstract: An effective human resource management (HRM) system plays a pivotal role in the success of organizations and institutions. In today's dynamic landscape, enhancing service quality and gaining public trust are inextricably linked to motivating employees, evaluating their performance, defining clear responsibilities, and fostering a strong organizational culture. However, many Georgian companies lack well-defined HRM policies, often perceiving them as mere administrative tasks rather than strategic initiatives critical to achieving organizational success. This research paper aims to address this gap by providing valuable theoretical insights and practical recommendations for organizations striving to create a motivated and high-performing workforce. The theoretical contribution lies in the comprehensive exploration and scientific analysis of the factors influencing effective HRM practices. This research contributes to the HRM field by synthesizing and extending theories, offering a conceptual framework to guide future research. Furthermore, the study offers practical implications for organizations. Through empirical investigations and case studies, we identify specific challenges faced by Georgian companies in implementing effective HRM practices. In conclusion, this research sheds light on the significance of effective HRM practices in driving employee motivation and overall organizational success. By combining theoretical insights with practical recommendations, organizations can cultivate a motivated workforce and achieve their goals in the ever-evolving business landscape.
  • Olena Stryzhak
    THE ROLE OF HUMAN CAPITAL FOR ECONOMIC DEVELOPMENT IN A DIGITALIZED WORLD
    JEL: O1, E24.
    Keywords: economic development, human capital, digital development, economic growth
    Abstract: The article is aimed at studying the features of the relationship between economic development, human capital and information and communication technologies. The panel sample includes data for 87 countries for 2019. The study uses the World Bank approach to classify countries to groups by income levels. The relationships between the analysed indicators are determined by groups based on the calculation of correlation coefficients. In addition, the paper presents a detailed spatial and graphical analysis of the indicators distribution by groups. The research shows that there are differences between the groups, both in the strength of the relationship and in the distribution of human capital development, digital technologies and GDP per capita. The article also analyses the relationship between GDP and the components of human capital and digital development. The study confirms the heterogeneity of economic development across countries and regions, highlighting differences across groups of countries depending on income levels.
  • Liubov Ivchenko, Nataliia Pohuda, Olena Sushchenko
    THE ROLE OF INTERNET RESOURCES AND SOCIAL MEDIA IN THE STRATEGIC DEVELOPMENT OF TOURISM
    JEL: M37, L83, Z32.
    Keywords: inbound tourist flows, social media, website, Internet users, correlation and regression analysis
    Abstract: The article is devoted to the study of the influence of Internet resources, social networks in particular, on the dynamics of inbound world tourist flows. A 30-year dynamic series of the number of Internet users with 5-year periods has been studied. Modeling this indicator with a linear trend has made it possible to obtain estimates of the average annual increase in the number of Internet users for certain periods. An analysis of factors is provided, which has influenced the dynamics of tourist flows and growth quantity and users of the global network for the period 2005-2023. It is determined that social networks play a significant role in the growth of the number of Internet users, which has a more quantitative impact for them, and a qualitative impact on tourism. The influence of the emergence and development of social networks and the most popular tourist websites on changes in the number of travelers is analyzed. Quantitative assessment of this relationship using regression analysis methods is proposed. Methods of analysis and synthesis, generalization and comparison, modeling, correlation and regression analysis are used in the research process.
  • Stanislav Aleksandrov, Galya Georgieva
    UP-TO-DATE ISSUES RELATED TO APPLYING THE NEW ACCOUNTANCY ACT
    JEL: Ì 41.
    Keywords: accounting, Accountancy Act, categories of entities, applicable accounting standards, financial statements.
    Abstract: The application of Directive 2013/34/EU of the European Parliament and of the Council on annual financial statements, consolidated financial statements, and related reports of certain types of undertakings required the introduction of some changes in current accounting regulations in Bulgaria. This paper focuses on issues related to applying the new Accountancy Act and some of the contradictions which have arisen as a result.
  • Àlla I. Alekseeva
    AN ANALYSIS OF THE IMPACT OF INFLATION ON THE FINANCIAL AND ECONOMIC ACTIVITIES OF COMMERCIAL ORGANISATIONS
    JEL: G30
    Keywords: assessment, impact of inflation, adjustment of financial indicators, monetary and non-monetary balance sheet items, financial results
    Abstract: The article discusses the methodology of adjusting the indicators of financial and accounting reporting used for assessing the activities of commercial organisations in the context of inflation. This is extremely important for increasing the validity of management decisions. The calculations have been performed on the basis of a particular example of a functioning organisation.
  • Artem Ivanov
    ANALYSIS OF M & A AGREEMENTS AND THEIR SECTORAL CHARACTERISTICS
    JEL: L16, L24, G34.
    Keywords: mergers, acquisitions, globalization, agreements, M&A.
    Abstract: The article analyzes the theoretical foundations of M&A agreements of different companies. The types and forms of M&A agreements were investigated. Due to the conducted analysis on the sectoral distribution of M&A agreements, it was concluded that the industry leader in this area was the mechanical and industrial equipment production, which led the industry rankings in terms of amount and value of such agreements in 2018. The main factors of the increase of M&A processes in the insurance industry in 2018 are introduced in the paper – raise of interest rates, increase of the amount of available capital, improved conditions for the world economy development, tax reform in the USA. Much attention is also paid to M&A banking activities in the USA. The article points out that the healthcare sector has been dominated by the ten largest pharmaceutical companies with the highest return on investments, which spent an average of 35% on M&A of total investment volume in R&D and M&A in recent years.
  • Diyana Ivanova, Galya Kusheva
    ANALYSING THE FINANCIAL VARIABLES OF BULGARIAN MUNICIPALITIES FOR THE PURPOSE OF THEIR FINANCIAL RECOVERY
    JEL: H72, R13
    Keywords: public sector, financial situation, analysis
    Abstract: Some of the latest supplements to the Public Finance Act deal with the local management of public funds and activities and prescribe a procedure for identifying municipalities in a financial difficulty and adopting measures to overcome it. This paper presents a set of methods for analysing the financial variables of individual municipalities on the basis of the methodological guidelines and the information provided by the Ministry of Finance. We have analysed data available as of the end of 2015 about the financial variables of Bulgarian municipalities as they have been defined by legislation and identified some common problems related to the financial management of that segment of the public sector.
  • Krasimir Kulchev
    THE INTERPRETATION OF FINANCIAL STATEMENTS IN TERMS OF CONTEMPORARY FINANCIAL ANALYSIS
    JEL: M 41
    Keywords: capital market, analytical models, economic value added, interpretation of financial statements
    Abstract: The evolution of financial analysis is accompanied by an extensive use of indicators whose calculation is based on data provided both by entities in their financial statements and by financial markets. The analysis of data and indicators generated by the capital market is considered to be of primary importance when studying the financial position of enterprises. This view is supported by a substantial number of analysts and, although not applicable to all enterprises, it raises a number of questions, two of them being whether the new analytical indicators are replacing the classic indicators of financial statement analysis and whether financial statements have retained their fundamental role as a primary source of data in studying the financial position of enterprises. The objective of this paper is to answer these questions by approaching the interpretation of financial statements within the context of some unorthodox views about the evolution of financial analysis.
  • Alla Alexeyeva
    ANALYTICAL PROCEDURES IN SALES FORCASTING BASED ON FACTORS OF INFLUENCE
    JEL: Ñ40, D29
    Keywords: analytical procedures, auditor, information, influencing factors, sales volume, correlation analysis.
    Abstract: The article discusses the analytical procedures that can be used by the auditor at the stage of obtaining information, such as the verification of the procedures in order to collect direct evidence of the errors, irregularities and false statements in financial reporting. The proposed methodology for the prediction of outcome indicators based on the "factors of influence” over the example of sales volume can be a simple and reliable tool in the arsenal of the auditor.
  • Tanya Gorcheva
    BULGARIAN TOURISM – BETWEEN CLASSICAL AND POPULAR GENRES
    JEL: D43, D23, L22.
    Keywords: tourism business, market competition, sustainable development, market reforms.
    Abstract: The nature of developing tourism as a business depends largely on the objectives pursued and on the demand of the tourists it attracts as customers. To determine the nature of the modern tourist business in Bulgaria, this article focuses on the quality and characteristics of its realisation as an industry. The aim is to determine whether best examples or negative practice prevails in the tourism business in this country. The presented formulation implies a comparative analysis of tourism in Austria and Bulgaria, based on criteria that reveal its core characteristics from the perspective of market competition and the principles of sustainable development. Parallels are sought between the impact of economic reforms in Bulgaria in the period of transition and the present tourism business in the country.
  • Milka Bakyrdzhieva
    THE POWER BETWEEN KNOWLEDGE AND CONFORMITY
    JEL: M10, M12.
    Keywords: power, knowledge, conformity, the empowered, the unempowered.
    Abstract: This article is dedicated to the phenomenon of “power.” At the beginning, power is discussed in more general terms as the “purposeful impact on people” is emphasised. Then we move on to knowledge as the only source of high-quality power in comparison to the other two “supreme” sources, namely force and wealth, as opportunities are sought for its inclusion in the real forms of power at an organisational level. The aim of the third section is to present attitudes regarding power and conformity towards those who have positions of power.
  • Bogdan Stetsenko
    THE EFFECT OF ASYMMETRIC INFORMATION ON THE ACTIVITIES OF NON-STATE PENSION FUNDS IN UKRAINE
    JEL: G 230, G 140.
    Keywords: pension funds, information, information asymmetry, pension assets, investment, corporations and corporate securities.
    Abstract: This paper considers the impact of information asymmetry on the activities of non-government pension funds in Ukraine. Based on the established model of non-governmental pensions in Ukraine, it looks at peculiarities in the formation of information flows in the operation of non-government pension funds (NPF). It has been determined that information asymmetry has the most significant effect on the activities of Ukrainian NPF at two levels: first, in the context of access to information for current and potential members of non-governmental pension provision; secondly, due to the low transparency of the corporate sector, which reduces the possibility of the efficient investment of pension assets. It has also been established that overcoming information asymmetries in the market of non-government pensions is possible only if government regulatory efforts are synchronised and effective financial communication at the level of the NPF is implemented for issuers of securities and other market participants.
  • Stanimir Slavov
    THE EFFECT OF HABITS ON THE MANAGEMENT PROCESS
    JEL: Ì12.
    Keywords: personal habits, work habits, management process, organisationl behavior.
    Abstract: The management process is directed towards achieving certain goals. Its realisation is affected by a multitude of factors, including the habits of managers and their subordinates. Consciously or unconsciously, habits determine the behaviours of individuals in their personal and working lives. When the personal and work habits affect positively the manner of making decisions, the completion of particular tasks, the achievement of goals, etc., this can result in either an effective or ineffective management process. The combination of positive and negative habits places individuals in different situations at their work place, which in turn requires from managers to interfere adequately. They should look for opportunities for managing both their and their subordinates’ habits. This demands from them to be able to use their leadership skills as well as to have thorough knowledge of the habit formation process.
  • Zaki Muhammad Abbas Bhaya, Basim Abbas Kraidy Jassmy
    THE IMPACT OF THE BRAND IN ACHIEVING COMPETITIVE ADVANTAGE:-AN ANALYTIC STUDY ON ZAIN IRAQ'S MOBILE CELL-PHONE COMPANY IN AL-DIWANIYAH GOVERNORATE IN IRAQ
    JEL: M30
    Keywords: brand, competitive advantage
    Abstract: This research aims to find out the role of the Brand in the process of achieving the competitive advantage from strategic perspective through identifying the important role that the marketing activity has in the work of companies. This research seeks to achieve its objectives through the analysis of decisions and the importance of the Brand in Zain company for communication. It also demonstrates the Brand's role in satisfying the customers' desires. The researcher has used (Porter) strategies, he supposed that there are three strategies: (Cost Leadership Strategy, differentiation Strategy, Focus Strategy), researcher used (SPSS) for the statistical analysis of the gathered data through the analysis of both of the correlation, regression and (ANOVA). The researcher reached a number of conclusions and the most important of them was the existence of a strong correlation between companies and brand can be used to achieve the competitive advantage in the Zain company for communication through the services made by its distributional outlets
  • Ivan Grozdanov Ivanov
    OPPORTUNITIES FOR DEVELOPMENT OF THE SOCIAL AND ECONOMIC POTENTIAL OF THE PROPHYLAXIS AND REHABILITATION PROGRAMME OF THE NSSI
    JEL: H55.
    Keywords: risk prevention, prophylaxis and rehabilitation, public social security.
    Abstract: The activities for overcoming the risk-related effects in the public social-security system of Bulgaria have acquired high importance in the context of deteriorated health status both in general and individual plan. The paper outlines the possibilities for the relative financial and organizational development of the Prophylaxis and Rehabilitation Programme of the NSSI. It supports the idea of broadening the scope of the programme including the opportunity for funding the prophylaxis and rehabititation of retired people at the age above the stipulated in art. 68, para 1of the Social Security Code.
  • Ventsislav Vechev
    POSSIBILITIES FOR IMPROVING THE ACCOUNTING OF CERTAIN FINANCIAL INCENTIVE SCHEMES FOR BANK STAFF
    JEL: M 41
    Keywords: accounting, equity instruments, shares, current expenses, contingent assets, provisions, financial incentives, commercial banks.
    Abstract: Regardless of the increasing role of technology, the main factor of each system are people with their qualities and experience. The fact that nowadays the majority of activities related to collecting, summarising and systematizing of information are carried out by information technologies does not diminish the role of individuals in terms of analysing the results, decision-making and developing an overall company strategy. To stimulate the creativity of their key employees, companies use different methods of financial incentives. The aim of conducting such policy, on one hand, is to increase employees’ motivation to work and at the same time to encourage their long-term involvement in and commitment to the future of the company. The object of study in this article is the accounting interpretation of some basic approaches (forms) to financial incentives of bank staff.
  • Marina Nikolova
    THE NEED TO EVALUATE ECOSYSTEM BENEFITS
    JEL: O13, Q57
    Keywords: eco-systems, eco-system services, eco-systems management, valuation, approaches, priorities framework.
    Abstract: To preserve our environment means to preserve the soil, the water, and the natural resources, i.e. life on our planet. And indeed, unspoilt nature is not only a prerequisite, but also valuable capital for doing business successfully, i.e. developing eco-tourism, organic farming, sustainable forestry, etc. On the one hand, managerial decisions which employ environmentally friendly production methods in our country make it possible to manage eco-systems (and bio-diversity in general). On the other hand, eco-systems provide a wide range of useful services and thus improve the quality of our life and create favourable conditions for the long-term well-being of people. The value of eco-systems will increasingly continue to grow in the future, mainly due to the loss of eco-systems. Therefore, the need to evaluate the services provided by eco-systems is becoming more obvious. Conscientious management of natural capital and services provided by eco-systems lead to increased social and economic sustainability not only at a regional and national level, but on a European and global scale as well.
  • Venelin Terziev, Marusya Lyubcheva
    INTERNAL AND EXTERNAL CHALLENGES FACING HIGHER EDUCATION
    JEL: I20, P00.
    Keywords: higher education, demographics, human resources, quality.
    Abstract: The article addresses the challenges facing higher education, related to the demographic problems and the quality of process management. The free movement and the single education area are changing attitudes, especially those of young people and their choice where to receive education. The demographic crisis, migration and the lower quality of previous levels of education are further exacerbating the situation in higher education. The article argues that a change in the educational management is necessary in order to find solutions to deficits and to build a model of ‘engaged universities’ where the quality of education is maintained at a level consistent with socio-economic processes.
  • Dmitriy Lukianenko
    GLOBAL INDIVIDUALIZATION SUBJECTIVE DISPOSITION TRANSFORMATION
    JEL: F01, F19
    Keywords: globalization, global subjects, global development, global competition, global innovative leadership.
    Abstract: This article investigates the issue of global development individualization brought about by 21st century transformations. It substantiates the need to resort to new approaches while analyzing the subjective disposition of the global economy and politics in the process of modern institutional system formation, accounting for global corporatization tendencies, competition, leadership, socialization and ecologization. The author considers the preconditions and motives of global individual leadership in economic, political, social and cultural domains, with their peculiarities regarding Ukraine accentuated, and outlines the crucial role of innovative leaders in insuring globalization processes.
  • Yordan Yordanov
    DEMOGRAPHIC DETERMINANTS AND CHALLENGES TO SOCIAL PROTECTION FOR MATERNITY IN BULGARIA
    JEL: G28, H53, H55, J1.
    Keywords: social protection, maternity benefits, maternity allowances, demographic challenges, demographic policy.
    Abstract: The starting point of this study is the understanding of maternity as a condition related to the biological and social function of women for the reproduction of human race, performed by the mother with the birth and upbringing of children in early childhood and to acquire the ability for economically independent living alone or together - in the family or the parents’ household. Placed on this basis, the issue of social protection in maternity becomes extremely relevant in the context of demographic and socio-economic challenges to the development of modern society. The study attempts to substantiate the thesis that the system of social payments for pregnancy, childbirth and child-rearing has unused potential to become a working tool of demographic policy with a significant contribution to improving the demographic profile of the Bulgarian population, in connection with which ideas are presented about the possibilities for their organisational development and improvement.
  • Dariusz Nowak
    DETERMINANTS OF THE DEVELOPMENT OF INTER-ORGANIZATIONAL RELATIONS
    JEL: M10, M19, L20.
    Keywords: effectiveness of cooperation, factors that favour and limit the effectiveness of inter-organizational collaboration, essence and nature of cooperation.
    Abstract: Nowadays, the cooperation is considered as one of the basic paths of enterprise development. For many entities, it is a chance of improving or increasing competitiveness, for others it is a necessity because the lack of cooperation could cause serious perturbations. However, it is emphasized that the decision to cooperate must be conscious. The effect can be on one hand the benefits, on the other hand there is the possibility of generating losses. Due to the fact that most of the relations between the cooperating companies are antagonistic, it is worth considering the factors that guarantee the effectiveness of cooperation. This paper attempts to identify the key factors that favour and limit the effectiveness of inter-organizational collaboration. The first part of the paper presents theoretical reflections on the essence and nature of cooperation. The second one focuses on the result analysis of a survey on determinants of cooperation conducted during the year 2015 on a sample of 192 entities.
  • Petyr Banchev
    THE EVOLUTION OF THE MARKETING PARADIGM
    JEL: M30, M31
    Keywords: marketing, marketing paradigm, values-based marketing, collabora¬tive marketing, cultural commitment marketing, spiritual marketing.
    Abstract: : The evolution of the marketing paradigm. Over the last decade, mar¬ket¬ing has started to develop new content in its paradigm, based on rethinking existing mar¬keting hypotheses for identifying, studying and solving the problems of economic life. Un¬der the influence of revolutionary changes in business and of so¬cie¬ty in general, the interest of business in human values and public welfare has increasingly become a topical issue. The article reveals the logic of the evolution of the marketing paradigm of business from products and their sale (product-centric), through to the market represented by buyers (market-centric) to people, their values and spirit (human-centric). It discusses the main points of historical and logical developments in the conceptual aspects of the marketing paradigm. It also examines the new content of the modern marketing paradigm - oriented towards taking into account human values and spirit to enhance public welfare and safety. This article also presents new directions in the development of the marketing concept and of the mar¬keting system. Thus the marketing approach to business management acquires new conceptual, problem and instrumental dimensions.
  • Irena Misheva
    EXPERT ASSESSMENT OF THE ENVIRONMENTAL RISK OF TECHNOGENIC NATURE – AN ELEMENT OF THE ENVIRONMENTAL POLLUTION LIABILITY INSURANCE OF THE INDUSTRIAL ENTERPRISES
    JEL: G22, Q59.
    Keywords: environmental pollution liability insurance, corporate environmental responsibility, technogenic risk, environment, risk management.
    Abstract: The article deals with the issues of insuring the environmental pollution risk in economic enterprises. In addition, the research outlines the structure of the environment with reference to the operations of enterprises with hazardous waste production; it also analyses the elements of the environment and the risk factors, which determine the risk situations in the industrial enterprises. Finally, the article discusses the primary role of environmental pollution liability insurance within the concept of risk management in the industrial enterprises.
  • Nataliya Nikolaevna Kulikova
    THE LIFE CYCLE OF PARTNERSHIPS BETWEEN COMPANIES IN THE RUSSIAN ELECTRONICS INDUSTRY
    JEL: L80, M20.
    Keywords: life cycle, joint activity, partnership, interdependence, professional players on the Russian market in microelectronics.
    Abstract: Professional players on the Russian market in microelectronics form temporary partnerships so that they can design and develop microelectronic devices with a certain life cycle. This paper proves that the capacity of such partnerships to develop successfully and to achieve the goals they have set depends on the stages of their development, i.e. the stages of a partnership life cycle. The materialisation of these partnerships refers to all stages of the technological value chain of microelectronic devices, which allows each professional player on the Russian market in microelectronics to perform their functions. Each stage of the partnership life cycle relates to specific features and key success factors. By analysing the stages of partnerships life cycles, it is possible to predict and identify potential problems in terms of the materialisation and development of inter-organisational relationships.
  • Krasimira Slaveva
    BUILDING AN EFFECTIVE RELATIONSHIP "EDUCATION-SCIENCE-BUSINESS" - STRATEGIC OBJECTIVE AND MEANS FOR INCREASING THE EFFICIENCY OF HIGHER EDUCATION EXPENDITURES
    JEL: I121, I122, I128, C10, C19.
    Keywords: higher education, higher education expenditures, statistical analysis, trend models, structural changes.
    Abstract: In the modern conditions of knowledge-based economy, higher education has the extremely responsible task of preparing specialists with a high level of theoretical and practical knowledge, skills and competencies in the relevant professional fields. The processes of internationalisation and globalisation in education pose a number of challenges to higher education institutions in Bulgaria, expressed in improving the quality of education and the practical applicability of the acquired knowledge, increasing the applied research of the academic staff and the formation of students’ research skills. The article examines the dynamics of key indicators for the higher education system in order to establish objectively formed regularities and trends and to assess the effectiveness of higher education costs.
  • Daliborka Blazeska, Natasha Ristovska
    THE USE OF SOCIAL MEDIA AS AN EFFECTIVE TOOL FOR OBTAINING SUSTAINABLE COMPETITIVE ADVANTAGE
    JEL: M30.
    Keywords: Social networking, competitive advantage, effectiveness, promotion.
    Abstract: Achieving a sustainable competitive advantage depends on the innovations which are largely dependent on the online marketing that initiates the use of social networks which enable the improvement of long-term relationships of the company and the focus on the particular target group. Their best results are achieved as a result of the creativity and they are ideal medium which does not require huge money investment, but energy, thinking, time and knowledge. The investment in marketing activities in the social network cannot be considered as a simple venture but as a management of several goals: the user should get to know the brand, interaction of the user with the brand and oral transmitting of the message. The paper focuses on the analysis of social networks and their influence in the direction of promoting two-way, i.e. interactive communication with consumers. On the other side, in the paper answers will be given to the question: “Which of the social networks are the most effective tools for promotion?” The results show that the applications of modern and innovative methods in the field of internet marketing are crucial for distinguishing and creating a competitive advantage.
  • Svetlana Nikolova
    RESEARCH ON THE CORRELATION BETWEEN INNOVATIVE ACTIVITIES AND COMPETITIVENESS IN BULGARIAN COMPANIES
    JEL: B21, D21, D62.
    Keywords: innovative activity, innovation activeness, company competitive¬ness, organization, correlation.
    Abstract: This article throws light on the theoretical and practical aspects of the existing bilateral correlation between innovative activity, innovative activities and company competitiveness. In the course of this analysis it is emphasised that, on the one hand, the level of company competitiveness in organisations which determines the intensity of innovative activities is the result of the state of the competitive environment. On the other hand, the innovative activities of companies which determines the degree of their company competitiveness is also the result of the state of this external compet¬itive environment. This means that a bilateral correlation exists between the innovative activities of organisations and their company competitiveness, and it is dependent on the state of the external competitive environment (i.e. it is the uniting link in this correlation).
  • Rositsa Koleva, Stela Kasabova
    A STUDY ON GUEST SATISFACTION WITH HOTEL SERVICES
    JEL: C1, L83
    Keywords: tourism, competitiveness, services, satisfaction.
    Abstract: Maintaining high competitiveness in tourism (in particular, in the hotel business) contributes both to the long-term development and the management of regions and to the sustainable and competitive development of regional tourist destinations. This article presents issues related to the competitiveness of tourism in Bulgaria through evaluating the hotel services offered to visiting tourists. The results obtained are based on a survey of four hotels (located on the Bulgarian Black Sea Coast) conducted in August 2012. The article consists of two parts: an analysis of the services offered in the hotels monitored (front desk service, an assessment of the rooms and the restaurant at the related hotel and grading nine types of services) and an evaluation of the satisfaction of the tourists interviewed regarding the services offered. The study specifies the quality characteristics of the services in the hotels surveyed and the importance of these services according to the perceptions of the tourists interviewed. On this basis, the degree of satisfaction of tourists regarding the services offered has been determined and guidelines have been given on how to improve the quality characteristics of these hotels.
  • Snezhina Zaharieva Ivanova
    STUDYING THE SITUATIONAL BEHAVIOUR OF THE HUMAN FACTOR IN ORGANISATIONS DURING A CRISIS
    JEL: L2.
    Keywords: situational behavior, locus of control, organizational commitment.
    Abstract: The behaviour of individuals in a specific situation is determined by their personality traits, the features of the organisation and the specifics of the situation. It is therefore essential that those parameters could be diagnosed promptly and reliably. After studying a number of phenomena that describe individuals’ behaviour in a particular situation, the locus of control and organizational commitment were identified to be the two most useful constructs for assessing organizational environment and predicting probable behaviour of the human factor in organisations. After measuring the values of the two constructs in companies operating in the in the Shipbuilding and ship repair sector in District Varna, it was estab-lished that those constructs have a good predictive value for the situational behaviour of the human factor during a crisis in an organisation.
  • Hristo Draganov, G. Draganov
    MORAL DAMAGES AND THE ACTIVITY OF INSURANCE COMPANIES
    JEL: G22.
    Keywords: moral damages, insurance compensation, liability limit, Bonus-Malus system.
    Abstract: The article addresses moral damages inflicted as a result of road accidents, in terms of motor third-party liability insurance. We explain the nature of moral damages and analyse their relevance to the activity of insurance carriers. Special attention is paid to the major factors that cause moral damages. We also review the main stages in ascertaining inflicted moral damages and give some recommendations about the process. The underlying idea of this article is that an Ordinance on the Ascertainment of Moral Damages must be designed. In conclusion, a methodology for determining liability limits is proposed.
  • Borislav Borisov
    THE ADMINISTRATIVE CAPACITY INDEX OF STATE ADMINISTRATION
    JEL: Í0, Í1, Í7.
    Keywords: state administration, administrative capacity, good governance.
    Abstract: This paper is based on a research conducted among 80 administration groups of the executive authority. The aim of the survey was to measure the administrative capacity of those groups by 44 indicators. Respondents were selected according to the structure of the state administration formed by the number of employees in each unit of administration. The findings of the research were analysed by computing the average values of the scores of capacity; by employing average weighted values and by determining the uncertainty factor when assessing the capacity of different structures of state administration. We have designed a new, aggregate index for measuring administrative capacity – the Index of the administrative capacity of state administration for good governance. By employing that index, we are able to monitor the systematic progress in terms of current concepts about administrative capacity, applicable to the entire system of state administration.
  • Nataliya Golovanova, Nataliya Nikolaevna Kulikova
    THE INNOVATION RECEPTIVITY OF ENTERPRISES AS THE BASIS OF THEIR ECONOMIC GROWTH AND DEVELOPMENT
    JEL: Ì21, Î31.
    Keywords: innovation, innovation receptivity, competitive advantages, factors, affecting innovation receptivity, assessing and developing innovation receptivity.
    Abstract: The paper deals with issues related to the innovation receptivity of enterprises which is indicative of their preparedness and ability to introduce innovations and intensify their innovative activity. High innovation receptivity may be interpreted as an indicator of the ability of an enterprise to gain competitive advantages, and hence, to exert certain competitive pressure on the other market players. Assessing the innovation receptivity helps identify weak spots in the performance of an enterprise and specify opportunities and actions for dealing with them.
  • Yaroslav Valeriyovich Korovii
    AGRICULTURAL INNOVATIONS IN EUROPEAN AND CENTRAL ASIAN COUNTRIES
    JEL: O13, Q16.
    Keywords: innovations, agriculture, sustainable development, general factor productivity, agricultural innovations, Common Agricultural Policy.
    Abstract: The article analyzes the importance of agriculture for the economies of European and Central Asian countries, proves that it occurred due to the impact of innovations which help realize the potential of this industry which, in its turn, opens up promising ways for further development. It has been established that the need to stimulate innovation in the agricultural sector arises due to a number of factors, the most significant of which are: growing consumer demand for products, the need for production of environmental products, reduced production costs, rational use of resources, environmental protection. That is why the promotion of innovative technologies implementation for the sustainable development of agriculture in the countries of Europe and Central Asia is becoming an important element of the countries’ steady development in the region. The article describes the innovative processes in the agricultural sector of the country's economy. Particular attention is paid to the consideration of the parameters of the EU Common Agricultural Policy.
  • Petya Emilova, Teodora Spasova
    THE INFRASTRUCTURE OF LARGE ENTERPRISES IN BULGARIA – CHARACTERISTICS AND PROBLEMS
    JEL: L86.
    Keywords: information infrastructure, large enterprise, digital transformation.
    Abstract: An information infrastructure is part of the overall infrastructure of enterprises. It refers to hardware, software, data management technologies, network and telecommunication technologies and services as well as the staff involved in the management of provided services. The aim of this article is to elucidate the characteristics of information infrastructure and related issues in the era of digital transformation. In terms of theoretical tasks, this implies defining the concept of "information infrastructure" and identifying opportunities for its development. Practical tasks relate to analyzing some of the problems that a large Bulgarian enterprise is facing in terms of its information infrastructure and proposing methods for assessing the costs of the information infrastructure in the enterprise. Our research focuses on ‘Sparky Eltos’ AD in Lovech and suggests some practical guidelines for analyzing problems and offering adequate solutions.
  • Natalia F. Altukhova, Elena V. Vasileva, Vitaliy Yemelyanov
    HOW TO ADD VALUE TO BUSINESS BY EMPLOYING DIGITAL TECHNOLOGIES AND TRANSFORMING MANAGEMENT APPROACHES
    JEL: M15, L86.
    Keywords: project management, IT, design thinking, IT education, digital transformation, business process.
    Abstract: The aim of this study is to present the experience in the management of enterprises at different levels: from optimising business processes to introducing strategic business development. We have analysed the experience in creating digital metallurgy in Russia and present the experience in implementing a smart system for monitoring and diagnostics of line equipment at the Alchevsk metallurgical plant. The article reviews major issues related to the introduction of artificial intelligence systems so as to exercise automated control over production processes. These issues refer to the deterioration and depreciation of production assets which is caused by the reallocation of funds for the modernisation of production and the unpreparedness of staff for the introduction of new systems. Digital technologies provide new opportunities for managing corporate resources and initiating profitable activities. The article also reviews applying Design Thinking techniques and tools to the training and education of specialists for the digital economy. Entrepreneurial skills, out-of-the-box thinking, the ability to work in teams and to make decisions are essential competencies which must be acquired by students during their academic training so that businesses could be prepared for their digital transformation.
  • Dariusz Nowak, Sławomir Górczyński
    A QUALITATIVE APPROACH TO TRADE CREDIT IN BUSINESS ORGANISATIONS
    JEL: E50.
    Keywords: trade credit, financial liquidity, current activity financing, positive and negative aspects of trade credit
    Abstract: The aim of the paper is to present, in the cognitive aspect, the opinions, judgements and notions of entrepreneurs regarding financing of the current activity of enterprises with trade credit. The nature of the research problem determines the adoption of qualitative research as a research basis, in which direct interview with entrepreneurs has been used. These entrepreneurs, in transaction processes, represent both credit recipients as well as credit donors. Interviews were conducted in 2015, on a sample of 147 manufacturing companies of different nature and different business domain. The paper presents both positive, as well as negative aspects related to the use of trade credit. The possibility to purchase without having financial means, improving financial liquidity and production productivity; increase in revenue and competitive position and general use, open access and cheapness are particularly important in the first approach. Payment gridlock and high risk of activity, as well as increase in the cost in business activity were indicated in negative terms. Value - the authors try, through the prism of empirical research, to show and estimate positive and negative aspects of trade credit. This knowledge has a practical value as it could be used by other firms that implement or develop their trade credit policy.
  • Aneliya Paneva
    COMPETITIVE ENVIRONMENT OF THE GENERAL INSURANCE MARKET IN THE REPUBLIC OF BULGARIA
    JEL: D4, G22
    Keywords: general insurance market, forms of competition, market concentration
    Abstract: Insurance companies in Bulgaria develop their business in a market economy. Therefore, insurers are constantly striving to achieve competitive advantage. As a result of the competitive struggle between companies in the insurance market, an appropriate range of products is offered at the best possible conditions and consumer prices, and the quality and efficiency of the insurance protection is increased. The present article determines the shape and strength of competition in the general insurance market in Bulgaria for the period 2008-2012. It was found that only in mass contracting of insurances, the insurance companies operate in highly competitive environments. The market of less popular insurances is characterized by an oligopolistic structure. In the offering of some of them, there is even monopoly.
  • Tsvetelina Nenkova
    CONCEPTUAL FOUNDATIONS OF EFFICIENCY IN PUBLIC PENSIONS
    JEL: J26
    Keywords: efficiency, old age social security, efficiency in old age social security, economic effect, social effect.
    Abstract: This article examines the efficiency of public pensions. The need for an efficiently functioning pension system is highlighted based on the theoretical foundations of pension social security concepts such as: ‘welfare for the elderly’, ‘retirement insurance’ a factor for increasing the ‘productivity of labour’, a form of ‘return on human capital investment’, a solution to the ‘prodigal father’ problem and ‘longevity insurance’.
  • Iskren Tairov
    ENTERPRISE MOBILITY – A SOLUTION FOR INCREASED BUSINESS EFFICIENCY
    JEL: Ñ80, L63, Ì21.
    Keywords: BYOD , CYOD, COPE, COBO, enterprise mobility.
    Abstract: The massive influx of mobile devices over recent years has radically altered ideas about employees’ activity and the dimensions of business. The rapid development of business, mainly through increased staff mobility, has promoted various concepts like BYOD (Bring Your Own Device), CYOD (Choose Your Own Device) COPE (Corporate Owned, Personally Enabled), etc. This has brought to the fore issues related to ensuring constant staff involvement in the work flow and designing channels for accessing information with no constraints in terms of time, location, or the type of mobile devices used. At the same time, businesses need to design strategies which ensure a balance between the convenience of using mobile devices and the security and reliability of corporate networks operation. This paper reviews the essence of the BYOD concept and the benefits it brings to business; it makes a comparison with the CYOD concept and analyses the COPE alternative, its nature and feasible approaches for its implementation.
  • Trayan Yosifov
    THE INTERNATIONAL INVESTMENT POSITION OF BULGARIAN ECONOMY IN THE PERIOD FROM 2010 TO 2019
    JEL: F21.
    Keywords: foreign investment, investor interest, equity, debt instruments.
    Abstract: The period from 2010 to 2019 may be defined as a post-crisis stage in the historic development of the global economy. This refers to Bulgarian economy as well, which went through a recession to then reach a situation of full employment. The recovery of global markets is obviously a major factor which raises the interest of both local and foreign investors. The dynamics and the structure of the capital funds invested in the local economy and those invested abroad are indicative of the confidence in the domestic market. They give an accurate idea about the economic environment in the country and the mid-term prospects for its development. The main objective of this research is to analyse the characteristics of and the trends in the changes of capital funds invested in Bulgaria and those invested in foreign economies and markets.
  • Angelin Lalev
    METHODS AND INSTRUMENTS FOR ENHANCING CLOUD COMPUTING SECURITY IN SMALL AND MEDIUM SIZED ENTERPRISES
    JEL: C88, C89
    Keywords: information security, small and medium sized enterprises, cloud computing
    Abstract: The article focuses on the problems of information security in the clouds from the point of view of small and medium-sized enterprises (SMEs) and the limitations imposed on them with regard to information technologies. The article discusses organizational and technical protection measures that are relatively easy and cheap enough to be applied by SMEs in relation to cloud security threats.
  • Serghei Peancovschii
    ORGANIZATION OF A MOBILE EMERGENCY MANAGEMENT CENTER
    JEL: H56, D81, C23, C41, M15.
    Keywords: situational centers, Mobile Emergency Management Center, the unique liaison protocol, the main scenarios of emergencies, effective solutions.
    Abstract: This article covers the problem issues of the organization of a mobile emergency management center of the Main Inspectorate of Emergency Situations of the Republic of Moldova. The key objectives assigned to the Situational Center have been determined, as well as the peculiarities of the developing organizational structure of the information interoperability of the Center’s employees, providing the composition of subsystems and the directions aimed at enhancing efficiency.
  • Dariusz Nowak
    THE CORE COMPETENCES OF POLISH INDUSTRIAL ENTERPRISES
    JEL: L20.
    Keywords: core competences, values of the organization, competitive positions.
    Abstract: Among many methods of strategic management, special attention should be put to the concept of core competences, which is an excellent and modern tool of competitiveness. Its essence comes to the belief that the differentiated framework of leading economic activities forces the use of different ways of achieving its objectives. Such is the way it is described by a set of unique, rare, and above all, personalized assets, which together form the specificity and nature of the organization. Taking into account the importance of the concept of core competences in strategic activities of the company, the purpose of the article was to identify and assess the basic attributes of the organization and present them in a comprehensive range. The theoretical part was developed on the basis of analysis of Polish and English-language bibliography, the empirical part was based on surveys conducted on a sample of 192 entities representing the industrial enterprises operating in Poland. Analysis of the answers allowed concluding that the main core competences of Polish enterprises are: the quality of product and services, staff qualifications, flexibility, clearly defined goals, and ability to adapt to the environment.
  • Stanimira Yordanova, Kamelia Stefanova
    MAJOR TECHNOLOGIES AND PRACTICAL ASPECTS OF THE DIGITAL TRANSFORMATION OF BUSINESS IN A BIG DATA ENVIRONMENT
    JEL: O33, C88.
    Keywords: big data, digital transformation, big data technologies
    Abstract: In contemporary business development, digital transformation has become a major challenge to big data management. In an environment of increasing volumes of data, the major factors that are crucial to business development relate to big data processing and analysis. Open-source data processing technologies employ an innovative approach to the design of data processing and data analytics tools in cooperation among developers, which ensures the transparency, accessibility and continuous improvement of those tools. The main objective of this article is to review popular open-source technologies for big data processing and identify trends in employing big data in business applications.
  • Zoya Ivanova
    CHARACTERISTICS OF THE MARKET BEHAVIOUR OF BULGARIAN INDUSTRIAL ENTERPRISES
    JEL: L11, L14, L21, L22, L24
    Keywords: market behaviour, industrial enterprise, relationships with consumers, differentiation strategy, specialized markets
    Abstract: Due to the complex and dynamic situation in commodities markets, Bulgarian industrial enterprises need to apply more flexible and efficient approaches in order to adapt promptly to contemporary challenges. Industrial enterprises seek to demonstrate behaviour which will enable them to maintain and expand their market positions, respond adequately to changes in consumer demand and react to increasing competition. The aim of this article is to examine the market behaviour of Bulgarian industrial enterprises on the basis of theoretical and empirical research and to summarise some of the specific features of this market behaviour.
  • Rumen Erusalimov, Nikolay Valeriev Iliev
    THE IMPACT OF COVID-19 ON DEVELOPMENT OF MOTOR CASCO INSURANCE IN BULGARIA
    JEL: G22.
    Keywords: insurance, premium income, indemnity, Covid-19.
    Abstract: : Motor Casco Insurance is the most concluded voluntary insurance policy on the Bulgarian insurance market and in recent years its market share is about 27% in the General (Non-life) Insurance Section. The aim of the study is to assess the impact of measures taken by the state to limit the spread of SARS-CoV-2 virus on the development of Motor Casco Insurance. As a result of the study, it was found that the measures imposed by the state did not significantly affect the development of Motor Casco Insurance in Bulgaria, but simply slowed down its pace. However, there is a significant reduction in the number of road accidents, especially in 2020, which is also reflected on the reduction of insurance payments.
  • Dragomir Iliev, Galin Stefanov, Yoto V. Yotov
    ESTIMATING BULGARIA’S TRADE BORDERS WITH THE EU AN APPLICATION OF THE EMPIRICAL GRAVITY MODEL OF TRADE
    JEL: F10, F14, F16
    Keywords: Bulgarian Trade Border with EU, Structural Gravity, Integration
    Abstract: We use the empirical gravity model of international trade to evaluate the borders in manufacturing trade between Bulgaria and the European Union (BG-EU). Our results suggest that in 2006 the BG-EU border was quite large and not statistically different from the average border in our sample of 69 countries. As expected, our estimates confirm that the trade border between Bulgaria and the EU members was very large, and much larger than the average sample border, before the collapse of communism. The border fell sharply in the early to mid-90s, but it followed the average sample trend since then. We also document weak asymmetries in the BG-EU border in favor of EU exports to Bulgaria. Our results point to a series of extensions and further analysis.
  • Tsvetan Georgiev Tsvetkov
    ASSESSING MATURITY OF THE RISK MANAGEMENT SYSTEM IN HIGHER EDUCATION INSTITUTIONS
    JEL: Ì19, I21.
    Keywords: risk, risk management, maturity, maturity assessment, universities.
    Abstract: The article aims to seek answers to four research questions, focusing on the specifics, existing practice, available scientific publications on the issue of assessing the maturity of risk management in universities; the possibilities for creating the framework for developing a model adapted to university practice of assessing the risk management maturity. A framework for the development of a similar model is presented, envisaging the implementation of the following activities: identifying the specific features of risk management in universities; identifying risk factors specific to higher education institutions (HEIs); defining the attributes that will underlie the model description; analyzing some existing models for assessing the maturity level; creating a substantive model; adapting the model to the specific conditions; a pilot assessment when using the adapted model.
  • Ioana Panagoreț, Dragoș Panagoreţ
    ROMANIA'S ENVIRONMENTAL POLICIES AND FINANCIAL INSTRUMENTS USED TO ACHIEVE THEM
    JEL: P29
    Keywords: policies, environment, financial instruments, programmes, institutional stakeholders.
    Abstract: In Romania, environmental protection appeared in 1990 as a self-contained area of the national policy, when the Ministry of Environment was first established. Development strategies of the national environmental policy in the pre-accession and post-accession period were shaped by the priorities of Romania's accession to the European Union and national needs, in conjunction with national priorities. The article states the principles and objectives of environmental policies in Romania as well as financial instruments and institutions involved in pursuing those policies. In Romania, the issues of environmental protection are imperative, particularly as a result of local pollution, produced mainly in the oil exploitation and mining industries, processing ores and oil, thermal power, chemical, woodworking and pulp, metallurgy, electrical industry and machine building industry, cement industry, transport, communal services and agriculture.
  • Veselin Dekov
    PRACTICAL AND APPLIED ASPECTS OF OFF-BALANCE SHEET REPORTING OF SPENDING COMMITMENTS IN BUDGET ORGANIZATIONS
    JEL: H61, M41, M49
    Keywords: budget, commitments, reporting, budget funds, expenses
    Abstract: This article attempts to present the accounting aspect of spending commitments either signed for or immediately fulfilled by budget organizations. These are analysed in the context of changes in the normative base at the beginning of 2014. The author places emphasis on the practical and applied aspects of reporting mechanisms implemented by budget organizations, while at the same time presenting several general cases in the practice
  • Monika Tsaneva
    A PRACTICAL APPROACH FOR INTEGRATING HETEROGENEOUS SYSTEMS
    JEL: O32, O33.
    Keywords: integration approach, cloud systems and technologies, consumer lending, credit risk assessment.
    Abstract: The adoption of cloud computing is a major requirement for expanding a conventional business into an electronic one. In order to benefit fully from the advantages of cloud computing, companies need to have their business applications redesigned, yet this requires substantial financial, human and time resources which even the largest enterprises cannot afford. A feasible option is developing a strategy for gradual transition to cloud systems and technologies, which implies integrating the conventional systems of enterprises with newly developed cloud solutions. The underlying idea of this research is that the priorities of such gradual transition should be identified on the basis of the major characteristics of the activities comprising the overall business process, such as its dynamics and prospects, the current and the potential level of automation, the volume of processed data, the workload they create for the systems processing those data, etc. The research paper proposes an approach for integrating a conventional and a cloud system to service the business process ‘Requesting a consumer loan’ that requires real-time data exchange. The integration solution uses data structures which have been created in an intermediate data base for communication between systems. The rules for accessing and manipulating data by each of the integrated systems are defined. Interoperability is ensured through programme components (triggers and stored procedures) that are created in the data base of the operational system and ensure data exchange for real-time processing. The approach proposed in the paper has been employed in the business practice of a large Bulgarian bank. Its major advantages relate to the comprehensive service of the business process, as well as the greater flexibility, adaptability and scalability achieved with minimum financial and time resources.
  • Bozhidar Bozhinov
    CHALLENGES FOR ENSURING THE DATA SECURITY OF COMMERCIAL BANKS
    JEL: G21.
    Keywords: banks, data security, information technology, distance banking, online banking.
    Abstract: The introduction of new information and communication technology into banking has radically altered the essence and character of banking activity. Alongside the competitive advantages and the direct economic effect of the advent of high-tech innovation in the banking sector, credit institutions are facing a number of challenges, one of them being to ensure the security of their products and related information. The main objective of this research is to elucidate the nature, instances, and methods of managing data security in commercial banks. An emphasis is put on some sources of operational risk in commercial banks which have a direct impact on the potentially growing risk in terms of data security. The research also focuses on the role of bank management in governing that process, as well as the methods and mechanisms for reducing the occurrence of the risk related to information security.
  • Renny Petrova
    FINANCIAL STATEMENTS REPORTING AS A TOOL FOR MANIPULATING THE PERCEPTION OF ACCOUNTING INFORMATION
    JEL: M41.
    Keywords: financial statements, presentation, manipulation, qualitative characteristics.
    Abstract: Financial statements must present the property, financial position, and performance of entities truly and honestly. Managers, however, may influence users’ perception of information by altering the manner in which this information is presented in financial statements. The objective of this paper is to employ a slightly different approach based on the specific features of the parties involved in the information-exchange process, i.e. users (with their expectations and constraints) and managers (with their goals and motives) and review different methods and techniques applied by managers to manipulate users’ perception of the information presented in financial statements.
  • Evgeniy Zaramenskih
    APPLYING THE ARCHITECTURAL APPROACH TO THE DESIGN OF A DIGITAL PLATFORM: THE CASE STUDY OF AN AVIATION HOLDING COMPANY
    JEL: O0, O3, L8
    Keywords: enterprise architecture, digital services, digital platforms, Industry 4.0, ArchiMate.
    Abstract: This article presents an example of effectively applying the architectural approach to the design of a digital platform to aggregate digital services in an industrial enterprise, based on the case study of an aviation holding company. It reviews options for the further design of IT processes to support digital services provided by a digital platform created with the frameworks Cobit 5 and ITIL 3. The architectural models reviewed in the paper are built using the enterprise architecture modeling language ArchiMate.
  • Olga Pugacheva
    APPLICATION OF INFORMATION TECHNOLOGIES IN THE ECONOMY AND EDUCATION OF THE REPUBLIC OF BELARUS: CONDITION, PROBLEMS AND PROSPECTS
    JEL: L86, I20.
    Keywords: digital economy, information technology, global ratings, digital transformation of education
    Abstract: The article examines the level of development of the digital economy and information technologies in the Republic of Belarus from the global ratings point of view, identifies the problems of using information technologies in the country's economy and the prospects for the development of the digital economy. Regulatory and legal acts regulating the development of the digital economy and the information society in the Republic of Belarus and in the system of its higher education are considered. On this basis, the directions that presuppose the revision of traditional forms of organization of the educational process in a modern university, the change of content and teaching methods in higher education on the basis of modern information technologies are highlighted.
  • Rumen Vyrbanov
    APPLICATIONS OF THE BYOD CONCEPTION – BENEFITS, RISKS AND APPROACHES
    JEL: Ñ80, L63, Ì21
    Keywords: Mobile devices have dramatically changed perceptions regarding the work of employees and the dimensions of modern business. The popularity of the concept of BYOD (Bring Your Own Device) is due to one of the essential features of business from the past few years - the mobility of managers and employees. The possibility of their continued participation in work processes and the availability of alternative options for data access at any time, from any device and from any location is acquiring exclusive actuality. At the same time, a reasonable balance between convenience and security is required, based on a better understanding of the specifics of the BYOD environment and the effective protection of mobile devices in the corporate network. The article analyses the nature and main characteristics of BYOD, and the benefits and safety risks that arise the use of personal mobile devices to solve business problems. Also an approach is proposed based on the idea of 'BYOD in six steps'.
    Abstract: BYOD (Bring Your Own Device), advantages of BYOD, risks of BYOD, consumerisation, attitudes toward the use of mobile devices in business, strategy for the implementation of BYOD.
  • Tsetan Pavlov
    APPLICATION OF BEHAVIORAL FINANCE IN MODELING BULGARIAN EQUITY RISK PREMIUM
    JEL: G10, G14
    Keywords: behavioral finance, equity risk premium puzzle, market efficiency, capital markets, required return
    Abstract: The paper seeks a plausible explanation of the magnitude of equity risk premium, by modeling leading behavioral concepts in the conditions of Bulgarian capital market. Firstly, the fair equity risk premium is derived by basic neoclassical consumption-based model. Subsequently, the conducted comparison between fair and empirical risk premium indicates that the demanded compensation by investors for owning Bulgarian stocks cannot be rationally explained, i.e. there is an equity risk premium puzzle on BSE. On this basis, we have applied a behavioral model based on two well-known characteristics of human behavior in conditions of risk and uncertainty – loss aversion and narrow framing. Set at reasonable levels of risk and loss aversion, the model has managed to generate risk-free rate and market returns close to empirical levels.
  • Nataliya Golovanova, Anna Bekaeva
    PROBLEMS AND RISKS OF COMMERCIALIZATION OF INNOVATIONS IN THE RUSSIAN ECONOMY
    JEL: Ì21, Î31
    Keywords: innovations, commercialization of innovation, risks of innovation activity
    Abstract: According to statistical data, modern development of the innovation activity in Russia has positive trends – Russia’s positions in the Global Innovation Index have improved, the relative share of the organisations engaged in innovation has increased and the volume of shipped innovative products has gone up in the total volume of exports. However, even these positive trends are not enough to bridge the gap between Russia and the developed countries. The problems of low effectiveness of innovation in Russia, according to the authors, are related to the problems and risks that arise in enterprises that commercialize innovation. The process of commercialisation of innovation has its own specifics and depending on the degree of participation of the innovation developers in it, it could be realised through three different methods – independent use, partial assignment of rights to use innovations, full transfer of rights to use it. The problems and risks which the enterprises may face in the process of commercializing innovations, are presented by the authors in relation to each method. The article also features some authors’ proposals for speeding up the innovation implementation by enterprises.
  • Andrey Zahariev
    ISSUES OF CORPORATE CAPITAL OPTIMISATION IN BULGARIA
    JEL: G32, G34
    Keywords: capital structure, optimisation, Gordon’s model, CAPM, EPS.
    Abstract: The aim of this article is to test a methodology for the optimisation of capital structure in Bulgarian companies, adapted for Bulgarian conditions, on the basis of fundamental company indicators and stock exchange rates over the period 2010 – 2013. A similar methodology provides the answer to a series of questions and solves significant problems faced by business practice, related to the realisation of the main purpose of financial managers in Bulgarian companies – maximising stock wealth. The achievement of this aim is based on the effect of financial leverage on the profit of one share and its stock exchange capitalisation. This research ascertains the complete improvement of post-crisis interest conditions for business credit by financial institutions to companies in our country. Within the range of the research, we identify seventeen separate issues in the field of applied capital optimisation which require precise financial and investment circumstances and appropriate solutions.
  • Margarita Nikolova
    THE ISSUE OF THE NUMBER OF HOSPITALS AND THEIR CAPACITY AND EFFECTIVENESS IN BULGARIA
    JEL: H51, I1, I18.
    Keywords: health care, hospitals, sustainability, effectiveness, capacity.
    Abstract: Over the last decade in Bulgaria medical institutions for health care have functioned in an unsustainable and unfavorable environment. This is particularly true for hospitals in towns or villages as some of them have gone bankrupt, while many of them have terminated their activities. As regards the number of hospitals per 100,000 people, Bulgaria is among the countries of the EU-27 with a relatively large number of hospitals – over 4.44 per 100,000 people. This is a third more than the average ratio of the EU-27 member states and 50% more than the new EU member states from Eastern Europe. This is why research into hospitals takes into account a problem which is very serious for Bulgaria, namely, the activities undertaken and their effectiveness. This article argues for the thesis that the government must stop the uncontrolled growth of medical institu¬tions for health care and introduce a new system of funding according to which the patient must be treated in a complex way, not according to a clinical pathway, because costs do not meet the real expenses of the treatment of a patient with a particular diag¬nosis.
  • Diyana Ivanova
    THE PROFESSIONAL COMPETENCE OF PUBLIC SECTOR INTERNAL AUDITORS IN BULGARIA – OPPORTUNITIES AND CHALLENGES
    JEL: H83.
    Keywords: internal control, internal audit, professional competence.
    Abstract: Public sector internal control continues to be a major issue due to its essential role in the governance of public funds and activities. This article focuses on internal audit and the problems and opportunities related to maintaining and developing the professional competence of internal auditors as a key prerequisite for the efficient performance of their audit engagements. The research of earlier and current audit practice and the acknowledgment of existing pitfalls provides a robust basis for improving this aspect of public sector internal control.
  • Iliyan Nikolaev Hristov, Lyubomira Georgieva Dimitrova
    COMPREHENSIBILITY OF TEXT INFORMATION – CONCEPTS AND APPLICATIONS IN CONTEMPORARY STUDIES IN ACCOUNTING
    JEL: M49
    Keywords: assessment of text comprehensibility (readability), quantitative and qualitative approaches, disclosures.
    Abstract: This article presents part of the available arsenal of the developed quantitative and qualitative approaches for the assessment of text comprehensibility (readability) existing in western literature. Special attention is paid to their practical and application function in empirical research related to accounting. A conceptually new integrated approach is presented, the results of which could lead to a more precise metrication of the readability of disclosures of enterprises.
  • Aleksandar Petrov
    DEVELOPMENT OF INFORMATION TECHNOLOGY AND ITS IMPACT ON THE FORM OF INFORMATION SERVICES
    JEL: C89.
    Keywords: information technology (IT), information services (IS), IT service, IT service management (ITSM).
    Abstract: The article studies the development and complexity of information technology (IT). The dependence of modern businesses on the extent and efficiency of applying IT is argued. On this basis, attention is brought to problems related to the orientation of information services (IS) towards the provision of services. Grounds are given that it is based on and is determined by the achievements of IT service management (ITSM). Different approaches to improving IS are presented and the trend towards transforming current IS divisions into ones offering services is outlined.
  • Andrey Pochtovyuk
    IMPLEMENTATION OF THE INTERESTS OF ENTITIES INVOLVED IN THE SYSTEM OF HIGHER EDUCATION IN UKRAINE
    JEL: À20
    Keywords: universities, state, individuals, employers, labour market, voca¬tio¬nal and qualification conformity.
    Abstract: This paper focuses on the relationship between the state, individuals, employers, and universities based on methods of quantification. The conclusion drawn is that higher education is the basis for socio-economic development and efficiency of the labour market, which could be used by governments in the formation of a policy regarding higher education through the vocational and qualification conformity indicator.
  • Andrey Burachenko
    MEDIUM-TERM PLANNING AND BUDGETING AT A LOCAL LEVEL
    JEL: Í61, Í72
    Keywords: budget planning, budgeting, budget process, budget programmes, monitoring, effectiveness, budget reform.
    Abstract: This article discusses the theoretical and practical aspects of medium-term planning and budgeting at local level in contemporary Ukraine. The author emphasises that the completion of functions by local authority bodies in Ukraine require the realisation of effective measures and actions guaranteed by corresponding budgetary programmes. One significant aspect of the problem is the effectiveness of monitoring the completion of local budget programmes. The article contains particular proposals regarding the budgetary reform carried out in Ukraine – the introduction of medium-term budget planning at both state and local level.
  • Nataliya Makovskaya
    FIXED-TERM EMPLOYMENT CONTRACT AS A MANAGEMENT TOOL FOR THE INNOVATION ACTIVITIES OF ENTERPRISES (BELARUSIAN EXPERIENCE)
    JEL: J21, I121, I122
    Keywords: contract of employment, labour relations, innovation, innovation activity, labour market.
    Abstract: The article presents the results of scientific research on the role of labour factors, fixed-term employment contract, in particular, in the innovation activity of organizations of Belarus. The influence of the fixed-term employment contracts on the innovative activity of enterprises has been identified. It has been proven that the smaller scale of the organization, the more often they use a fixed-term employment contract. It is proved that if organizations have a fixed-term employment contract, they are more innovative and innovative organizations are active.
  • Radi Dimitrov
    PROVIDING ACCOUNTING INFORMATION FOR THE AUDIT OF EUROPEAN UNION FUNDS IN THE PUBLIC SECTOR
    JEL: M 41.
    Keywords: accounting information, audit, budgetary organizations, European projects, European Union funds.
    Abstract: Professional players on the Russian market in microelectronics form temporary partnerships so that they can design and develop microelectronic devices with a certain life cycle. This paper proves that the capacity of such partnerships to develop successfully and to achieve the goals they have set depends on the stages of their development, i.e. the stages of a partnership life cycle. The materialisation of these partnerships refers to all stages of the technological value chain of microelectronic devices, which allows each professional player on the Russian market in microelectronics to perform their functions. Each stage of the partnership life cycle relates to specific features and key success factors. By analysing the stages of partnerships life cycles, it is possible to predict and identify potential problems in terms of the materialisation and development of inter-organisational relationships.
  • Boryana V. Dimitrova, Brent Smith, Trina Larsen Andras
    BRAND VALUE CO-CREATION VIA THE PLATFORM ENTERPRISE
    JEL: M30
    Keywords: Michael Porter, diamond, dynamic capabilities approach, platform enterprise, co-creation, brand value.
    Abstract: Firms today focus on the development of long-term customer relationships and seek ways to actively involve customers in the marketing process. Platform enterprises such as Amazon, Airbnb, and Uber are spearheading the efforts in this direction by providing a digital platform enabling multiple stakeholders to engage in and contribute to brand value creation. However, scholarly research to date has not yet addressed the question of how platform enterprises can effectively and efficiently operate the network they build in a global market in order to stimulate co-creation and enhance brand value creation. We integrate Porter’s “diamond” with the dynamic capabilities approach and develop a conceptual framework, which helps us better understand how platform enterprises utilize their capabilities to exploit the “diamond” and build an “ecosystem of partners” while fostering innovation and encouraging brand value co-creation.
  • Petya Ivanova
    A CONTEMPORARY OVERVIEW OF THE APPLICATION OF COLLABORATIVE CONSUMPTION IN TOURISM
    JEL: L83, Ì21
    Keywords: tourism, tourism market, collaborative consumption, digital platforms, digital technologies
    Abstract: Collaborative consumption is a current global trend which is changing the way in which people use goods and services. This trend also affects the state of the tourism market. With reference to this the article studies the increased use of this business model nowadays by outlining its main characteristic features and the reasons that have caused its appearance. In addition, the article classifies the wide variety of services and products that fall within the scope of this model. Special attention is paid to the factors which limit and stimulate its development. The article also provides a summary of the most widely used digital platforms for sharing tourism – related services. In conclusion, it systematizes the advantages and disadvantages of collaborative consumption and its effects on the conventional supply of tourism products and services.
  • Kamen Kamenov
    CO-ACTIVITY THROUGH THE PRISM OF SOCIAL ACTIVITY, BEHAVIOURAL INDEFINITENESS AND MANAGERIAL INSIGHT
    JEL: Z13
    Keywords: co-activity environment, co-activity system, social activity, behaviour, indefiniteness, motivation, situation.
    Abstract: This article looks at the relationship between success, the role of personal and professional quality and the group, on the one hand, and the significance of a co-activity environment on the other. The final result, which in practice is the achieved objective, is heavily dependent on the components of a co-activity system. Furthermore, even if a high grade is awarded for personal and professional qualities and efficient group activity, the end result might deviate from the expected result to a certain extent. The reasons for this are to be found in a co-activity environment. It is a source of social activity because it can provoke actors to act in a variety of ways. Depending on which of its components have been activated, there may be prerequisites for active or passive behavior. The article also discusses the types of behavior which create an atmosphere of indefiniteness and characterise social activity in relation to co-activity environment and as behavioural dependency over time.
  • Milen Mitkov
    STATUS AND TRENDS IN THE DEVELOPMENT OF AGRICULTURAL INSURANCE IN BULGARIA
    JEL: G22.
    Keywords: agricultural insurance, risk, basic coverage, indemnity payment.
    Abstract: This study presents the results of an empirical research on the status and trends in the development of agricultural insurance in Bulgaria conducted in 2015. Data is systematized and analyzed; the dynamics of the development of agricultural insurance in Bulgaria for the period 2010-2014 is also studied. It was found out that agricultural producers express great interest in purchasing agricultural insurance. As a result, there is a significant increase in the scope of agricultural insurance in the Bulgarian insurance market.
  • Orekhov Mykhailo
    THE ESSENCE OF THE DIGITALIZATION PROCESS AS A NEW GLOBAL INFORMATIZATION STAGE
    JEL: F60, O31.
    Keywords: Digitization, Digital Transformation, Digitalization, Digital Innovation, ICT, Digital Business Transformation.
    Abstract: The article describes the essence of the term "digitalization" and shows the nature of this process. The impact on people's lives and globalization itself have been determined as a result of the conducted study. Particular attention has been drawn to digital transformation, its use in the business context and its impact on such organizations as government, government agencies and other institutions involved in addressing social and global issues such as pollution and aging, using one or more existing and new technologies.
  • Maryna Karpitskaya, Yulia Krupenko, Pavel Barysenko
    TRENDS IN THE REINSURANCE SECTOR IN THE CONTEXT OF FINANCIAL INTEGRATION
    JEL: G22.
    Keywords: State regulation, reinsurance, financial stability, reliability rating of reinsurers, integration, reinsurance development
    Abstract: The article deals with the problems of insurance integration processes in the EAEU. The strategic directions of state regulation of the reinsurance market of the Republic of Belarus have been identified. It is determined that there is no a single legislative act regulating reinsurance activities in Belarusian legislation. State regulation of reinsurance relies on the current insurance legislation. The analysis of financial stability in EAEU is based on the Solvency I criteria. In the EU countries the risk-based approach to financial stability for the insur-ance sector is offered. However, neither of these approaches can be fully applied in the Republic of Belarus due to the methods of the analysis, which are based on hypothetical scenarios of market developments and may have a high degree of unreliability. It is determined that in reinsurance, it is necessary to assess the reliability of a reinsur-ance organization not only on the basis of an analysis of financial indicators, but to make a complex study of the financial stability of a reinsurer. It was concluded that the above methodology makes it possible to objectively analysis of a reinsurer reliability and can help to develop a set of measures aimed at raising it.
  • Plamen Hristov Milev
    TRENDS IN THE DEVELOPMENT OF ARCHITECTURE SOLUTIONS FOR WEB PUBLISHING SYSTEMS
    JEL: D83, L86, O33
    Keywords: software architecture, information system, web publishing, Internet content.
    Abstract: This article deals with issues related to uploading contents on the Internet. Within this context, the specific attributes of information systems for web publishing and solutions for their architecture are reviewed. The paper analyses some conceptual problems related to those systems in terms of the opportunities provided to users to create, publish, share or comment on the content on the world wide web. It also presents the typical architecture of web publishing systems. Based on the conducted research, the paper presents findings and hypotheses about trends in the development of architecture solutions for web publishing systems. The focus of the paper is on the growing significance of social networks nowadays, and especially of social networks with interactive content. The conclusion summarizes the advantages of applying existing trends in the development of architecture solutions for web publishing systems to the design of software solutions in the sphere.
  • Mykhailo Dubel
    TRANSFORMATION OF THE DISTRIBUTION FIELD UNDER THE DIGITALIZATION PROCESS
    JEL: O31, F29.
    Keywords: digital distribution, Full Packaged Product, Original Equipment Manufacturer, GenuineKit, Hypertext Transfer Protocol, freeware, shareware, digital transformation.
    Abstract: The article analyzes the concept of distribution. The main objects of the distribution system - the manufacturer, the wholesale reseller, the retail reseller and the user - are identified and characterized. The article highlights the benefits of digital distribution over traditional distribution. The article analyzes the features of digital distribution in the areas of books, music, software and computer games. The article examines the genesis, evolution, and perspective of digital distribution.
  • Margarita Bogdanova
    UNIVERSITY BUSINESS MODELS IN CRISIS MANAGEMENT
    JEL: I21.
    Keywords: university business models, crisis management, strategies, Covid 19.
    Abstract: The aim of the article is to present key features of the business model as a mental construction and to summarise successful practices of universities around the world that have implemented innovative management solutions to overcome crises. Osterwalder and Pigneur’s concept of business model and its applicability to higher education are considered. Variants of business models of different universities are analysed and crisis management approaches are synthesised in a summary model, with special attention paid to practices during the Covid-19 Global Crisis. The peculiarities of the analysis of the strategic risk after external threats are considered. Special emphasis is put on reviewing of business models in the context of new constraints and disturbed balance of revenues and expenditures. Timely reassessment of the business model can be a transition from a reactive to a proactive strategy and protect the organisation, at least in part, from the effects of future crises.
  • Iskren Tairov
    MOBILE DEVICE MANAGEMENT AS A COMPONENT OF CORPORATE IT INFRASTRUCTURE
    JEL: L63, L86, Ì21.
    Keywords: corporate IT infrastructure, mobile devices, management.
    Abstract: Digital economy and the rapidly growing use of the Internet have rendered it impossible for a corporate IT infrastructure to perform successfully unless adopting the necessary techniques, technology and procedures for controlling access to resources. Mobile devices have become tremendously popular and they are an indispensable part of people’s everyday life, as well as a preferred option for accessing corporate IT infrastructure resources. Therefore, organisations need to design and implement efficient management solutions, based on in-depth analyses and in line with the specific properties of mobile devices. This research paper describes in detail corporate IT infrastructure and mobile devices as components of that infrastructure, reviews their use in business environment and presents appropriate tools for exercising control.
  • Evelina Parashkevova Velikova
    RISK MANAGEMENT IN HIGHER EDUCATION INSTITUTIONS IN BULGARIA – STATE AND PROSPECTS
    JEL: A2, O2, M10.
    Keywords: risk management, educational and scientific organisations, maturity of the risk management process.
    Abstract: The paper examines the main challenges facing universities in Bulgaria. It presents organisational issues of risk management in the higher education system and focuses on practices that need to be changed in order to implement risk management. Based on comparative content analysis, it identifies key areas that should be the subject of intervention in educational and scientific organisations in order to achieve efficiency, effectiveness and appropriateness of the process. The paper proposes solutions to improve risk management in the sector. It outlines guidelines for introducing a systematic approach to risk management in order to improve the organisational environment and operational management.
  • Velichko Adamov
    PHILOSOPHY OF GENERAL CORPORATE FINANCING
    JEL: G32
    Keywords: company investment, financial decision making, financial struc¬ture, long-term (financial) equity, short-term (cash) equity, liquidity, liabilities, stock
    Abstract: Corporate financing requires sufficient knowledge on the two basic elements of liability as a component of financial balance: long-term and short-term equity. Respectively the article analyzes the ratios at which company investment may be carried out by equity and various issues of positive and negative equity structure are being outlined as well. Certain recommendations are being made for optimizing owners’ equity and debt capital in order to achieve an effective investment policy. Spe¬cial attention has been drawn on capital management practices in Bulgarian compa¬nies recognizing those practices’ constant need of improvement and development.
  • Rosen Ivanov Kirilov, Mariya Kazakova
    HUMAN CAPITAL AS A FACTOR FOR SUCCESSFUL DIGITALISATION OF LOCAL ADMINISTRATIVE SERVICES
    JEL: H70, J24, R50.
    Keywords: human capital, digitalisation, local authority, administrative reform
    Abstract: This article focuses on human capital as a key factor in the success of the digitalisation of processes of the local authorities’ activity. The experience gained since the period of Bulgaria's membership in the EU and the significant resources invested in the modernisation of central and local authorities highlight the role of the human factor for the effective implementation and operation of e-government tools. This requires revealing the role of human capital in the successful digitalisation of work processes in local administration. Arguments are given in favour of the thesis that the higher its level, the more efficiently and professionally the necessary organisational changes can be made for the successful implementation of the necessary technologies and the development of e-government.

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  • Editor in chief: Prof. Mariyana Bozhinova, PhD
  • Co-editor in chief: Prof. Krasimir Shishmanov, Ph.D.