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The article analyses the technical efficiency of enterprises producing wine in the Czech Republic in the context of provided subsidies. In this paper only the effect of Rural Development Programme subsidies (measure 1.1.3 in 2007–2013 and 4.2.1 in following RDP 2014–2020) are analyzed, where wine producers belong to the main recipients. We used unbalanced data set for the time period from 1998 to 2016. The main aim of this paper is to evaluate the technical efficiency of wine producers and to figure out whether there are differences between supported and non-supported firms – according to the size of enterprise and region. The true fixed effect model was used to do the analysis. Supported producers in general were more technically efficient, but this result was not statistically significant. By region distribution, supported firms were also more efficient, but not significantly. The same result was true for the distribution according to the size. To summarize, the effect of support in this sector is not significant.

Studies on institutional support for the internationalisation of firms from transitional economies are inconclusive. This research contributes to the studies of institutional support in cases of firms with complementary innovation – internationalisation strategies. Mixed method research is used to support quantitative structural modelling. It uses qualitative interview data in combination with quantitative data gathered by a survey questionnaire on a sample of 88 telecommunications firms from the Croatia economy the year after it joined the European Union (2014). SmartPLS model is used to analyse data obtained through a questionnaire survey. The results show that institutions can assist firms in recombining their processes when they offer concrete product development support and, to a lesser extent, marketing support. The recombination of firms’ processes, i.e. its ability to openly innovate, leads to significantly better globalised-localised (glocal) financial and marketing performance, which results are robust. The results are inconclusive in the case of glocal growth performance. The structural model assessed the effect of readiness for open innovation on glocal growth as positive and insignificant, while the robustness check found it to be positive and significant.
Implications for Central European audience: The value of this study is twofold. Firstly, it provides support and direction according to which institutional support could be directed to strengthen the internationalisation effort of the incumbent industry from transitional Central European economy that has transformed from the socialist to a market economy and undergone a process of joining the European Union. Secondly, it shows managers weak spots in institutional support and enables them to mitigate them quicker by finding similar support either outside of the firm on international markets or by employing highly qualified individuals.

The discourse on employee well-being within organizations has evolved significantly over the last decades, reflecting a deeper and more diverse understanding through various perspectives and methodologies. This thematic issue aims to bridge the existing gap between the recognition of diverse well-being practices and the critical examination of their applications in the workplace. By doing so, we hope to foster a nuanced appreciation of these efforts, acknowledging the inherent complexities and challenges, and inspiring more effective and meaningful well-being initiatives.

The purpose of the article was 1) to assess the relationship between the organizational culture (OC) type and business strategy (BS); 2) to prove that OC influences the survival strategy success/implementation; 3) to contribute to the expansion of organizational theory by analyzing the Boston Consulting Group (BCG) strategy palette as the basis for developing an effective company survival strategy during the crisis. To achieve the purpose, correlation analysis between OC types (authors' typology) and BS (Boston Consulting Group and Miles & Snow Models) was used (561 employees of different industries participated in the survey; the data collected laid the foundation for the research). As a result, it was proved that 1) certain types of organizational culture correspond to certain types of strategies; 2) during the period when the company overcomes the recession, OC affects strategic innovation decisions; 3) building a sustainable business ecosystem enhances the positive impact. The main limitations of the study are 1) some elements of subjectivity assessment, 2) constant changes in OC and BS, 3) the probability of different subcultures coexistence.
Implications for a Central European audience: The results confirmed that there is a need for managers to 1) take into account the organizational culture characteristics/features to implement chosen strategies successfully; 2) be ready to adapt the OC before the BS is approved; 3) adopt the idea that building an innovation ecosystem can be crucial to confront the crisis with confidence.

The growing uncertainty in today’s business environment has a significant influence on social business’s behaviour. Those enterprises could rely on public support in the past, but nowadays, they have to find a way to be more responsible about their social activity and be financially independent on public resources. Based on this theoretical background, the paper’s main goal was to find a set of factors that influence crucial financial decisions within a crisis. When social businesses create an optimal financial portfolio to be financially sustainable, primary research was conducted. A sample of 57 social businesses was asked about their financial strategy. The main research goal was to compare a change before and after the first wave of the Covid-19 pandemic situation in 2020. This case has shown current financial thinking and preparedness for unusual or crises. A mixed research approach was chosen due to a limited number of respondents. The overall results found that those businesses prefer to use the current strategy (42%) in crisis, and they limit investments to survive in that situation, except marketing investments (16%).
Implications for Central European audience: At the theoretical level, our study shows social enterprise concepts in the Central European context, which differs somewhat from the already established definition of mainly Anglo-Saxon and American authors. At the same time, it combines knowledge about the use of financial planning in this segment. The study results show that financial planning is essential in these companies because it can achieve social goals. A discussion would be opened on how to raise awareness of the preparation of the strategy.  Alternatively, how to strengthen the financial literacy of managers or representatives of these entities.

With the increasing complexity of economic systems caused by the intensification of European integration processes and the general globalisation trend, the problems of ensuring the optimal operation of transport companies are becoming especially important. Given these facts, the article's purpose is to develop and test a structural modelling algorithm based on the system state indicator (entropy of the structure of the export freight system). Research methods used in the article include: statistical (structure and dynamics analysis), systematisation and comparison, system analysis methods (entropy characteristics), and mathematical programming methods. The mathematical formulation of problems involves studying structural uncertainty due to the synergistic influence of interconnected structures. As a result of the optimisation calculations, the entropy index decreased as a consequence of the optimisation of the studied structures of export cargo. The study results using structural-dynamic modelling provide an opportunity to determine benchmarks for optimising the structure of export transportation. Therefore, they can act as indicators in the relevant field to substantiate the performance of large transport and logistics companies. The use of such approaches will help improve cooperation on a shared basis between Ukraine and the countries of Central Europe.
Implications for Central European audience: first of all, the algorithm of structural modelling containing stages is offered (structural-dynamic analysis; systematisation of the reasons that led to structural changes; mathematical formulation of the optimisation problem; numerical solution of the problem; interpretation of results and development of recommendations) as the theoretical contribution. Moreover, it has prospects for implementation by European transport companies, as the strategic partners of Ukraine in the field of rail freight are the Central Europe countries. In turn, practical implications include: to test the proposed model, the process of forming the structure of export freight JSC "Ukrzaliznytsia" as a partner of big Central European export companies was chosen as the object of study.

Using the arguments of conservation of resources theory and social identity theory, this study investigates the impact of abusive supervision on organizational citizenship behaviour (OCB) through the mediating effect of burnout. Simultaneously, the moderator effect of organizational identity on the relationship between abusive supervision and burnout is examined. The intention here is to examine whether organizational identity would increase the negative effect of abusive supervision on burnout and to test the underlying mechanism by which abusive supervision affects OCB, with the most affected parties. According to this, we aim to contribute to the literature on the potential effects of organizational identity on coping with workplace stressors. Also, this study aims to be contributive in terms of filling the gap in the existing literature due to the limited number of studies examining how and by which mechanisms abusive supervision affects OCB. Using the data collected from 256 full-time employees from hi-tech, banking and manufacturing industries, it is found that burnout fully mediates the relationship between abusive supervision and OCB. Moreover, it is seen that the negative effect of abusive supervision is stronger for employees with higher organizational identification, suggesting that suffering from abusive supervision can be more overwhelming for employees who see their organization as a vital aspect of their identity. According to the study findings, both theoretical and practical implications are discussed.
Implications for Central European audience: The present research fills the gaps in the literature by revealing the “black box” that underlies the association between abusive supervision and OCB. Victims of abusive supervision may feel burnt out and possess fewer resources to engage in OCB. To eliminate the negative results of abusive supervision and increase positive work outcomes, organizations should emphasize delivering a code of conduct and organizational culture that stresses proper behaviours within the work environment. Implementing a zero-tolerance to deviant behaviour policy may also improve and generate a positive and deviant behaviour-free work environment. 

Currently, multinational fast-food restaurant like the American fast food restaurant business is in great demand in Asian countries, especially in Indonesia. Maybe it can be categorised as a trend that is currently in effect. The uniqueness of the presentation or product appearance, the various types of menus and tastes, the restaurant environment, the prices offered, and several other factors contribute to creating the purchase intention of Indonesian customers. However, it is still rare to use this concept of thinking as the basic basis for measuring customer satisfaction, especially in American fast food restaurant branches in Asia, especially in Indonesia. Based on this explanation, the purpose of this study is to determine the relationship between product quality, service quality, physical environment quality, perceived price, satisfaction, loyalty, happiness, and trust in the customers of the fast-food restaurant. We distributed online questionnaires via google with a purposeful sampling method to 130 respondents conducted in July 2021. This study uses the SEM analysis method. The results show that there is a relationship between perceived price, product quality, service quality, physical environment quality, and customer satisfaction. Customer satisfaction has a positive effect on loyalty and happiness. Trust can moderate the relationship between customer satisfaction and loyalty. The results can be applied by fast-food restaurants that are interested in learning about similar factors that can increase customer satisfaction and loyalty, especially in developing countries that have almost the same respondent criteria as Indonesia.
Implications for Central European audience: The knowledge used in various marketing studies that support customer satisfaction and customer loyalty can be built on the quality they receive and their perception of the price of the product. Also noteworthy is the finding that the effect of product quality and service quality does not always affect each product category. These results can be utilised by fast-food restaurant businessmen and other culinary businesses who use foreign themes to increase competitiveness in the country. But it can also be used for European producers who want to open their culinary business in Asian countries.

This article aims to investigate the impact of training perception on work engagement. In addition, self-efficacy and organisational based self-esteem are hypothesised as mediators of the above relationship. Data were collected from employees in Vietnam using a self-administered questionnaire survey. Path analyses with Structural Equation Modelling (SEM) were used to verify the proposed relationships. The results show that both perceived training benefits and transfer of training significantly and positively influence work engagement. In addition, organisational based self-esteem partially mediates the impact of perceived training benefit on work engagement. Self-efficacy mediates a portion of the effects of the transfer of training on work engagement. The results add to the existing literature on the determinants of work engagement and on the consequences of the transfer of training. The findings also provide insight into the conditions for effective training in organisations.
Implications for Central European audience: Developing an engaged workforce is a vital task to all organisations. However, data showed that the work engagement level in Europe is low, especially in Central Europe. The results of the study provide insight into the determinants of employee engagement at work. In addition, like Vietnam, most countries in Central Europe have been in transition from former central-command systems to market economies. The application of contemporary Western human resource practices needs special consideration to ensure its effectiveness. The current study may supply some empirical implications for both academics and practitioners.

The purpose of this research is to investigate the relationship between the institutional environment of the studied countries and the Coface Country Risk Assessment. To meet this object, we used quantitative methods in the form of descriptive and regression analysis. The result was an evaluation of the actual Coface Country Risk Assessment and its value prediction for chosen countries. The authors quantified the impact of the institutional environment using The Heritage Index of Economic Freedom subindexes on the risk assessment indicator of the major private insurance company Coface, which is not so often used in the scientific sphere and is regularly updated. The results suggest a positive correlation between the Coface Country Risk Assessment and Government Integrity, Fiscal Health, Financial Freedom and Property Rights. Although Tax Burden is a statistically significant factor, its parameter was detected with an unexpected sign. For this reason, authors abstracted from it. Subindexes Government Spending, Business Freedom, Monetary Freedom, Trade Freedom, and Investment Freedom were statistically insignificant. Control variable Public Debt as a share of gross domestic product was insignificant as well.
Implications for Central European audience: The article applies the Coface Country Risk Assessment, which has so far been rarely used in the scientific literature. We present the current and predicted values of the Central European Countries, but also the countries interesting from their point of view due to trade and investment opportunities. Many countries, including those in Central Europe, show differences between actual and predicted values.

The circular economy is presented as the sustainable solution as opposed to the current linear model of production and resource management, whose effects impact negatively on the economic, social and environmental dimensions. Through a systematic review of the literature, this article aims to unify and to uncover the available evidence on innovation in relation to the circular economy and to determine those aspects that remain unexplored or should be studied in more depth in order to be able to continue to make progress in this field. Thus, it was found that although the circular economy is at an early stage of implementation, both its benefits and drivers as well as its challenges and barriers to implementation have already been investigated. More importantly, it was found that ecological innovations, which reduce the environmental impact of production and consumption activities, are necessary for the research of new business models and new ways of operating in supply chains that allow closing the circle and taking advantage of all the waste, such as the system of products and services, dynamic capabilities, 3D printing, the biography of the product and the software recycling. To achieve this goal, the evidence shows that it is mandatory to raise awareness of the situation, especially through marketing actions, as well as for companies, including SMEs, to be willing to act together and to align their interests.
Implications for Central European audience: The United Nations 2030 Agenda includes 17 Sustainable Development Goals (SDGs), according to which countries should implement the circular economy in order to move towards greater sustainability. In this context, European Union is key for this development, as it is one of the world’s major power. This article aims to unify and uncover the available evidence on innovation in relation to the circular economy and to determine those aspects that remain unexplored or should be studied in more depth. By doing so, it will be able to continue to make progress in the framework of the circular economy, enabling the achievement of the ODS. In addition, the majority of the articles reviewed take place in Europe.

The revolutionary advancement of technology in the past decade brought the attention of academics and management practitioners to ways of improving innovative capabilities of organizations. Advice-seeking relationships have an essential role in the knowledge production of modern-day organizations as they enable actors to acquire information, professional support and knowledge elements that they can recombine to form new knowledge. This paper conceptualizes advice-seeking behaviour as part of an inherently complex social world that can best be captured by a multiplex approach to organizational network research. It investigates how different layers of interpersonal relationships in the workplace may contribute to the appearance of advice-seeking interactions. This study examines the cases of three knowledge-intensive organizations and applies binary logistic regression to shed light on the yet invisible relational foundations of workplace collaboration.
Implications for Central European audience: Central European countries attempt to improve their economic competitiveness by attracting knowledge-intensive companies as well as incentivizing innovation and digital transformation. Knowledge-intensive firms, such as business service centres or information and communication technology companies, are significant contributors to the economic output of countries such as the Czech Republic, Hungary and Poland. Recommendations derived from the results of this paper provide insights into the leadership of knowledge-intensive companies regarding creation of organizational environments that foster knowledge sharing and innovation. Measures that promote interpersonal trust, visibility of expertise and boundary-spanning behaviour are recommended.

The paper provides an introduction to the special issue. It shows a sense in which Visegrád and Balkan EU countries are correlated in macroeconomic performance and integrated with the global business cycles. Using inflation rate levels as a starting point to characterize when these countries began their transitions, it shows that after 1996 both real GDP growth and real interest rates move together to a significant degree both with each other and with the US. This provides a background from which to view the paths since the collapse of the Soviet Union that these transition economies have taken. In addition, comparison is made to US money and banking policy, to provide an outline of how this may impact progress in the transition region. A subsequent summary of the other articles in the issue shows an inter-relation in their themes about how Central, Eastern, and Southeast Europe have progressed since 1991, and how these paths may be affected by Western economic policy.
Implications for Central European audience: The paper shows that transition regions can be impacted by international financial integration, including to possible detriment when capital markets are regulated by policy that pushes real interest rates below their natural levels. Negative real interest rate policy since the 2008-2009 financial crisis and again during the Covid crisis may hasten the rise of autocratic democracy and limit social, political, and economic freedom.

The article aims to evaluate the level of the analytical part of CRM in SMEs in Czechia and its impact on increasing the companies’ profitability. In the empirical part, primary quantitative research was carried out. The subject of quantitative research was selected for analytical activities. The object of the research was SMEs in the Moravian-Silesian Region. The questionnaire survey was attended by 1 067 respondents. To evaluate the level of the utilisation of selected analytical activities, the PDCA method (Deming cycle), which is used to evaluate process quality, was modified. The choice of this method was inspired by the Anglo-Australian approach to the evaluation of relationship marketing based on quality management. The starting point for the application of the PDCA method was the mode. This article provides a different perspective on CRM level assessment. A research question addressed the level of analytical activities performed. This approach highlighted the highest level in the evaluation of sales, customer satisfaction analysis, and customer segmentation, which are basic marketing activities. CRM cannot work without these activities. The lowest level was reflected in customer churn prediction and in setting up a method of measuring customer loyalty. Building long-term relationships are the main CRM goal, which should contribute to improving the economic results of companies. Therefore, five hypotheses were formulated, expressing the relationship between the level of selected analytical activities and the increasing profitability of the companies. The hypotheses were verified by regression analysis. All analytical activities had an impact on the profitability of companies.

Most small and medium-sized enterprises in the furniture industry use simple partial approaches to improve or manage production processes. The article aims to present research results focused on continuous process improvement through the implementation of Six Sigma (SS) and Lean Six Sigma (LSS) concepts in furniture production. Their impact on the performance via the level of the ROE (Return on Equity) indicator was evaluated using statistical methods of Chi-square test and Cramer’s contingency coefficient. The results of the research showed that furniture enterprises that had implemented selected methods of quality management reached a medium level of ROE values. The absence of a more comprehensive approach to managing the performance of processes was the impulse for a model creation based on the interconnection of SS and LSS concepts. The model should a practical use of appropriate methodologies and procedures in the management of furniture production processes, as well as in their optimisation. A thorough analysis of non-conforming products performed in furniture manufacturing processes transformed into SS and LSS metrics and the implementation of the model in the enterprise led to reduced process waste by reducing the number of non-conforming products, reducing the cost of such products, and increasing the capability of critical processes.
Implications for Central European audience: The combination of theoretical knowledge in performance management and quality of production processes and practical knowledge from the real implementation of methods and tools for continuous improvement of production process capability in the company proved to be a good basis for creating a model within SS and LSS. These facts have contributed to the development of scientific knowledge. The presented application of methods and tools within SS and LSS will provide instructions for the use of new management methods. The specific outputs of the research work improve defining problems, measuring process parameters, analysis of measured data, improving furniture production processes.

The Covid-19 pandemic highlighted the cardinal intent, in which digital technologies play a key role in building a sustainable future, revealing disparities between digitally equipped companies and those that are still implementing digital solutions. It showed the difference between urban, rural and remote areas with good connections.  This paper is divided into two parts. The first aim is to evaluate the performance of the digital economy and society according to its basic dimensions and quantify and compare the position of 28 European Union countries (considering Great Britain as a member) in the international area using DESI - (Digital Economy and Society Index). It will look to evaluate the overall change in the development of the Slovak Republic between individual periods based on the main dimensions of the composite index. The second part aims to find the clusters of the European Union countries by using data on their rankings within the five dimensions of DESI. Correlation analysis is used to meet the first aim, cluster analysis is used to meet the second aim. The data are obtained from the Ministry of Investment, Regional Development and Informatization of the Slovak Republic and the database of the European Centre for Digitization. The results show a statistically significant correlation in the rankings of the EU countries between the analysed years 2016-2020. Moreover, among the European Union countries, there are internally homogeneous and external heterogeneous groups of countries with respect to ranking within DESI dimensions. Cluster analysis has not been used so far in analysing DESI in the existing literature. Therefore, the results of this paper fill such a research gap.
Implications for Central European audience: Quantification and comparison of the position of 28 European Union countries in the international area using DESI can help to identify and improve the digital competitiveness of European Union countries. Knowing five dimensions of DESI, its specific subdimensions, and indicators can help to identify controversial areas to which the state should pay attention. This paper deals, in more detail, with the position of Slovakia in the digital competitiveness of the EU using DESI.

Organizations are increasingly operating with a multicultural and diverse workforce. Researchers and practitioners have recognized that diversity is a double-edged sword and can result in many significant benefits but can also present challenges in organizations. Therefore, the goal of the paper is to analyse the influence of perceived diversity, a perceived inclusive organizational culture and an inclusive diversity paradigm on employee job satisfaction. In order to analyse the research problem, a quantitative approach was chosen. The research was conducted on a representative sample (n = 1 035) of Poles using a research panel. The data analysis showed a statistically significant, positive correlation between perceived diversity and job satisfaction, as well as a statistically significant, positive correlation between an inclusive work environment (defined as an inclusive organizational culture and an inclusive diversity paradigm) and job satisfaction. The paper broadens our understanding of the role of diversity and inclusion for job-related attitudes. It shows managers that developing an inclusive, diverse workplace can have an influence on job satisfaction. The paper contributes to research into diversity, inclusion and job satisfaction by addressing diversity, an inclusive work environment and its consequences for an organization from the perspective of the employees and their perception of the analysed issues.
Implications for Central European audience: Central European countries are rather homogenous in terms of socio-demographic diversity dimensions, especially in comparison to the US and Western European context, where the vast majority of diversity and inclusion research has been conducted. When analysing employee attitudes, it may be important to look not only at objective variables but turn towards their perception by the employees, who in this case are raised in the homogenous Polish society. Thus, the paper contributes to the literature by presenting a CEE context and gives managers operating in this region insight into how diversity and inclusion affect job satisfaction.

Particularly in depressed regions, politicians often use unemployment as the main argument for investment incentives provided to MNCs. This paper applies Dunning’s OLI Framework to the relationship between FDI and employment, assuming that political negotiation between MNCs and the host government might have a zero or negative effect on employment. Since the last letter of OLI, internalisation, suggests that MNCs optimise all production factors available to them and “subsidies” provided to MNCs by governments decrease the relative price of capital, MNCs may use more labour-saving techniques. Two hypotheses are tested using the dynamic panel model (DPD) and Granger causality tests for 193 countries from 1985–2019, where the first is supported with no strong relationship between the variables.
Implications for Central European audience: The paper results suggest the importance of a critical debate on the efficiency of investment incentives. This paper is among the first trying to disentangle the rather complex issue of FDI and employment on a theoretical and econometric level.

This article aims to find out which business risks determine the perception of the business environment of small and medium-sized enterprises (SME) in the future. 454 SMEs from the Czech Republic participated in the case study by filling in an online questionnaire. Linear regression models were used to verify statistically significant causal relationships between selected indicators of business risks and respondents' perception of the future of business. The results show that selected indicators of the market, financial, personnel, legal and operational risk determine the perceived future of business. Strategic risk indicators do not significantly affect the perceived future of business. The most important indicators: market risk — adequacy of sales of products and services; financial risk — an indicator of the company's financial performance; personnel risk — an indicator of employees' initiative to increase performance; legal risk — an indicator of respondents' ability to understand the basic legal aspects and operational risk — an indicator of the use of company capacities. All the indicators from above have a positive effect on the future perception of the company.
Implications for Central European audience: The attitudes of small and medium-sized enterprises represent a certain degree of subjectivity (human factor), which does not always reflect the real position of the enterprise. However, it is the main representatives of SMEs (owners and top managers) who try to manage business risks to have a more positive perception of their future in the business environment in the Czech Republic. The results based on the business environment of the Czech Republic are important not only for the owners of SMEs, but also for state and non-profit institutions dealing with various forms of SME support.

The research focuses on the perception and implications of telework during the COVID-19 pandemic in the Czech Republic. The aim of the paper is to prove the validity of an existing theoretical model (presented in Romanian research before COVID-19) for the Czech situation during COVID-19 and draw managerial conclusions. Quantitative primary data were collected via questionnaires and analysed using structural equation modelling, evaluating cause-effect relationships between latent variables in two steps: a structural model (showing latent constructs and paths between them) and an outer model (displaying relationships between each latent construct and the indicators defining it). Ten latent variables were defined, and relationships among them were identified. Thirteen hypotheses were tested, of which seven were accepted. Concerning similarities with the previous study, the present study accepted two hypotheses identically to the previous one, while one hypothesis was accepted only in the Romanian research. Model relevancy was proved. The research contributed to extending current literature findings.
Implications for Central European audience: Based on the hypotheses tested, autonomy and homonomy in telework should not be understood as contrary but complementary phenomena; managers should support both. Positive emotions about telework should be cultivated because they contribute to work-life balance and positively affect the intention to work from home. Work-life balance is positively related to the positive perception of the social implications of telework.

The main purpose of this study is to investigate the effect of corporate governance quality on the firm value of companies operating in the Borsa Istanbul (BIST) Corporate Governance Index. Analyzes were made with the data of the 51 companies operating in the BIST Corporate Governance Index for the 2015-2019 period. The GMM techniques were used as a method. AMG method was also used to consolidate the results obtained from the GMM method and to create robustness. The results indicated that the corporate governance quality of companies has positive effects on firm value. The most important finding that reflects the purpose of the research is that companies should also increase the quality of corporate governance to maximize the value of the firm.
Implications for Central European audience: Depending on the results of the study, it is predicted that companies whose profitability has a positive effect on the value of the firm will encourage their managers to increase their corporate governance quality. By complying more with the criteria in corporate governance principles, companies will both increase their institutionalism and maximize the value of the company, which is one of the main financial goals of the company.

Foreign direct investment (FDI) plays a crucial role in the growth and development of transitional economies and especially in countries where domestic capital is insufficient to meet the investment needs of the economy. Albania is a country applying for E.U. integration, so the country's central policies in recent years have brought about a liberalized economic framework and improved conditions for business development, attracting highly sought after FDI. This paper will provide an analysis of FDI in Albania and make a comparative analysis with the Western Balkan (W.B.) countries. The focus of the paper will also be on analyzing some of the critical elements that make these countries attractive to FDI, such as: analyzing the sectoral distribution of FDI stocks, the impact that inflows have had on the development of domestic economies, in creating jobs. FDI flows even though they have been in an upward trend, have not yet reached the desired expectations levels. W.B. countries have some very potential sectors to increase in the future and to be more attractive for FDI, such as tourism, service, transport, agriculture, industry. FDI had a positive impact on Albania's economy and in other Balkan countries. However, the region still needs to make many improvements in implementing institutional reforms, building and operating democratic institutions, improving the infrastructure. All countries need to collaborate to enhance political instability, resolve conflicts, and to focus on improvements and policies to attract potential investors.
Implications for a Central European audience: This paper aims to contribute to increasing the knowledge about the opportunities and potential sectors to invest in the W.B. area. The article may make a positive contribution to the Central European businesses generally and especially to firms that are interested in investing their capital in W.B countries or scholars who currently study the effects of FDI in developing countries. There is an analysis of how public policies can further increase the attraction of FDIs, which is beneficial for public officials aspiring to absorb foreign investments in their area of oversight. The optimal geographical position of Albania and W.B. countries has played an essential role in attracting foreign investments for neighbouring countries and especially European Union countries. Central European countries such as Hungary, Austria, and Switzerland are leaders or significant investors in the region. The distance between host and recipient countries have been a dominant factor of FDI, as well as cultural and linguistic resemblances.

Intensive attention has been devoted to strategic management recently as it is one of the tools which is capable of leading the enterprise to succeed in the long term. In spite of this, it is mostly connected with big organisations. Managers underestimate SMEs often and do not apply the strategic management methods in the way they could. Using strategic management in small enterprises is not sufficiently described in the professional literature. The target of this article is to determine the level of strategic management in SMEs by means of the created LSM (level of strategic management) indicator. Data were found out for 156 enterprises through the questionnaire. Based on the professional literature and similar studies, nine main principles were selected influencing the level of strategic management in the enterprise (the enterprise has the strategy, the strategy is defined in the written form, the strategy is elaborated in detail into plans, the enterprise analyses the external environment, internal environment, the enterprise fixes and checks achieving the enterprise’s goals, the enterprise knows the value of the product for the customer assuring its competitiveness; the enterprise follows and evaluates the result indicators and the enterprise decides based on the forecast of the future market development). As a strategically managed enterprise, such enterprise was evaluated having acquired 12–15 points; this criterion was fulfilled by 74 enterprises (47%). On the contrary, a not strategically managed enterprise is the enterprise that acquired seven or fewer points (in total 38 enterprises).
Implications for Central European audience: Strategic management is a tool that leads a company to long term prosperity. Strategically managed companies have a well-thought-out business plan based on a long term competitive advantage. They create better value for customers, know their surroundings and react more flexibly to changes. Within the practical applications of the paper, emphasis is placed on simplifying and making strategic management accessible to SMEs. Based on the LSM indicator, each company can verify whether it’s strategically managed or not and find out where it has shortcomings. These can then be eliminated, and the company can become strategically managed with all its advantages.

Perceived price and perceived quality are two generic factors influencing purchasing decisions. Their importance is also connected with the effect of the country of origin. The main aim of the article is to examine the perception of price and quality in the context of individual countries of origin of the European Union and influence of the consumer ethnocentrism on this perception. From the point of view of methodology, we use general philosophical-scientific methods (analysis, synthesis, scientific abstraction etc.) and, to a large extent, also methods of descriptive and inductive statistics. Specifically, we use correlation analysis to examine the direction and intensity of relationships, cluster analysis to examine the similarities of individual countries of the European Union in terms of perceived price and quality, as well as a one-way ANOVA test to verify hypotheses. Scale tools for measuring perceived quality, perceived price, and the degree of consumer ethnocentrism achieve a high degree of estimation of validity and reliability (estimated using McDonald's omega and Cronbach's alpha). The results indicate differences in the perception of price and quality of individual countries of origin of food. It can be assumed that the level of consumer ethnocentrism is below average in the conditions of Slovakia, and it has an impact on food evaluation only in the home country. The results can be used both for marketing and in the conditions of international trade, tourism, and in many other fields of theory and praxis.
Implications for Central European audience: Knowledge of the perception of price and quality of individual countries is important for international trade and marketing. Knowledge of the perception of these two factors helps to create strategies for both domestic and foreign companies operating in Slovakia. In this article, we examine the perception of all countries in the European Union, which allows for comparison. Foods from certain countries perceived better quality and cheaper will be more in demand. Demonstrating the effectiveness of consumer ethnocentrism has an impact on the development of strategies by domestic companies and the government to create support for the purchase of domestic production.

Graduate Practice is in Slovakia one of the measures of active labour market policy aimed at decreasing the unemployment rate of young graduates. It is one of the most frequently used interventions by young jobseekers under the age of 26; similar measures are used in other European Union (EU) member states. The specific objective of this intervention is to provide young jobseekers to gain the first contact with the labour market, first work experience and work habits that may be attractive to potential employers. The intervention is financed from the European Social Fund (within the Operational Program – Human Resources and the priority axis – Youth Employment Initiative) and the state budget. This fact requires ad 1) to evaluate the eligibility of drawing these resources and ad 2) to evaluate the effectiveness of the use of resources in terms of employability and sustainability of participants of the intervention in the labour market, the second of which is the primary objective of this study. The European Commission has increasingly required the member states of the EU to carry out impact evaluations of funded interventions and to develop evidence-based policies that will implement the results of such evaluations. The aim of this study is, therefore, to evaluate and review the effects of the Graduate Practice on the employability of young jobseekers in conditions of Slovakia. This evaluation is carried out using a counterfactual approach by comparing the results of treated and non-treated individuals by applying the three most used methods: regression adjustment, instrumental variable, and propensity score matching method. The results indicate significant effects of the Graduate Practice on the employability of young jobseekers and their sustainability in employment. The results of the evaluation are valuable mainly for policymakers, i.e. in setting the rules of the intervention and its eligibility to make the measure more effective or potentially in preparing other measures aimed at youth unemployment.
Implications for Central European audience: The findings of the evaluation may inspire policymakers in other countries than Slovakia to introduce similar or new programs for the youth unemployed. The results of this study may also be used for an international comparison of the effectiveness of interventions if a similar program for youth unemployed operates in another country, which may be appropriate mainly from the point of view of being a program(s) co-financed by the European Social Fund.

The so-called agile approach is increasingly popular in the world of project management as a response to more dynamic and competitive environments. This study follows the question: What are the decisive criteria that result in the use of agile process models in practice? Therefore, a broad range of decision criteria is investigated, representing different reasons for firms to decide in favour or against the usage of agile process models, namely: Time-saving, increased efficiency, availability of qualified personnel, uniform terminology, project comparability and functions as a knowledge base. Most existing research on agile project management is of qualitative nature; this study uses a quantitative approach to assessing 51 firms and nine different industries within the DACH region. The collected data was analysed in a binary logistic regression model. Results reveal that time-saving positively predicts the use of agile process models, while high ratings in function as a knowledge base and project comparability predict the absence of agile process models. Therefore, practitioners are suggested to educate project and portfolio managers in the creation of hybrid environments and integration of agile process models in traditional project portfolios.
Implications for Central European audience: The results of this study provide valuable insights into the selection of project management approaches across different industries in the DACH region.

A sudden change in the external environment, such as the COVID-19 pandemic meant for senior customers in CEE, required coping mechanisms to adapt and a significant change in behavioural patterns. The paper presents the social and customer behaviour changes among elderly citizens caused by the pandemic and aims to identify regional differences in adapting to these changes. Results from CATI interviews of 5875 participants from Germany, the Czech Republic and Slovakia, which were conducted as a part of the international SHARE project, bring a deeper understanding of regional differences. Behavioural segmentation made in each of the studied countries shows that the clusters created in each country are different and yet similar in certain aspects. Clusters of “adapters” – seniors with partial behavioural change – are found in all three countries, and even though they vary in some aspects of behaviour, they have significant commonalities as well. Clusters of the “vulnerable” – seniors who had undergone a complete change of behavioural patterns to protect themselves – and clusters of the “resistant” – seniors resisting the change – are found only in two of the studied countries. Differences in understanding the threat and feeling the need to react in certain ways are found not only between countries but also within cultures. By employing Hofstede’s cultural dimensions score to explain detected differences, the article brings more understanding of how power distance, indulgence and individualism could form differences in the usage of coping mechanisms among the elderly. The results bring insight into important aspects of changes in behaviour, which should be understood and mirrored in the business strategies of companies whose actual or potential customers are represented by this population.
Implications for Central European audience: The research into behavioural changes among senior consumers due to the COVID-19 pandemic was done in three CEE countries: Slovakia, the Czech Republic and Germany and the implications are therefore well suitable for the CEE region, yet generalizations for other countries must be made carefully as the results show that behavioural segments identified in the studied countries indicate cultural differences.

There is empirical evidence that business commitment to the Corporate Social Responsibility (CSR) principles has a direct positive impact on customer loyalty, employees’ performance, and, as a result, on the company’s value. The goal of the current paper is to evaluate the perceived importance of the company’s CSR-related practices from the viewpoint of employees. One hundred nineteen representatives of Latvian companies were surveyed, using the authors’ developed questionnaire consisted of 35 statements. Survey data was processed applying the frequency analysis and the logistic regression method. Most of the respondents (84%) perceive the company’s commitment to CSR principles as necessary. The base on the frequency analysis results, the most important CSR elements from the viewpoint of Latvian employees are paid leaves, consumer interests, and salary. Logistic regression yielded the elements, which contribute the most to the positive perception of CSR: ‘flexible work’, ‘support staff relaxation’ and ‘claims submission system’ within the group’ staff matters’. The measurement scale was tested for reliability and, based on Cronbach alpha results, was accepted as appropriate for use in a cross-country survey.
Implications for Central European audience: Despite the high interest in CSR-related issues in academia, the number of published works in Baltic countries is limited. In this particular study, the authors tried to identify — what exactly affects employees’ positive attitude to CSR commitment — the company’s participation in charity programmes or its environmental responsibility, for example? This survey contributed to the theoretical knowledge base about CSR perception among the staff of Latvian companies. In turn, the future survey is planned to be extended, involving respondents from Central and Eastern European countries. This, in turn, will allow making conclusions about the differences in attitude to CSR practices expressed by employees from different countries.

This paper examines the impact of fiscal policy on business investment in research and development (R&D). Panel regression models – with independent variables for the total tax and contribution rate, government appropriations and outlays for R&D, and the R&D tax subsidy rate – are set up to examine cross-country differences in business investment in R&D, with a set of control variables. The latter include, most notably, the number of full-time researchers, tertiary education attainment, the protection of intellectual property rights, governance, the long-term interest rate, and trade openness. The panel encompasses eleven countries of Central and Eastern Europe over ten years (2010–2019). The findings suggest that fiscal policy does not affect BERD, while trade openness, tertiary education attainment, and full-time researcher employment have a significant positive impact. These findings are consistent with some of the earlier studies on the effectiveness of fiscal policy in stimulating business investment, calling for greater allocation of public and private funds for R&D professional development and training programs.
Implications for Central European audience: This paper used recent data for eleven Central and Eastern European countries. Therefore, the findings are directly applicable to these countries. As the paper used random-effects generalised least squares estimation for panel data, the findings can be generalised to other countries.

Tax avoidance became a frequently observed practice in a global business environment. Multinational enterprises (MNEs) employ differences between statutory tax rates of their home countries and countries of their subsidiaries, aiming to achieve the effective tax rate being lower than the statutory one. MNEs enable tax avoidance practices via multiple channels, transfer pricing and debt shifting being among the most popular among them. The goal of this article is to evaluate if MNEs operating in Lithuania, a small open economy of Central and Eastern Europe (CEE), are engaging in tax avoidance practices, and if yes, what channel debt shifting profit shifting or both are employed. Our research is built on the data for the years 2010–2018 and analyses 3,563 MNEs and local companies operating in Lithuania. Results of the conducted regression analysis rejected the impact of differences in tax rates between MNEs and their subsidiaries in Lithuania on their leverage. Therefore debt shifting across the sample companies was not evident. On the contrary, analysis of profit shifting evidence among sample companies proved the significant influence of transfer mispricing practices on earnings of Lithuanian subsidiaries of MNEs’. Such results may imply that in Lithuania, corporate tax avoidance of MNEs occurs via the channel of profit shifting rather than debt shifting. We suggest that this is related to the specifics of small economies commonly characterised by lower tax rates, underdeveloped financial markets and lower tax avoidance costs.
Implications for Central European audience: Previous tax avoidance and profit shifting research mainly analysed the United Kingdom, Germany and other large countries in Europe, leaving a gap in research on small economies, especially those in CEE. Lithuania, similar to the other CEE open economies, is competing for attracting foreign investment, which makes it relevant to understand if and how the country’s tax system is exploited in the corporate governance practices of MNEs.