Fulltext search in archive

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.

In the expansion of volumes of industrial production, there is an increase of anthropogenic influence and deterioration of the external environment that became the reason for the impossibility of a functioning market system without taking into account negative externalities. The article considers the directions and principles of a “green economy” functioning as the basis for further development of society. The current state and trends of the impact of environmental factors on other indicators of quality of life have been analysed and comparative analysis has been made on the example of developed and developing countries. Effective indices and instruments of influence on the level of ecological and economic development and main tendencies and problems arising at the introduction of “green economy”, have been considered. The use of indicators that take into account negative externalities, such as the Pigouvian tax, has been demonstrated to be more visible than widely used indices. The losses from the negative impact on the resulting economic indicators have been analysed, and a significant decrease in the per capita GDP level has been proved with the extensive development of the economy.
Implications for Central European audience: This paper aims to contribute to the development of a green economy as part of a policy aimed at reducing environmental risks in the process of economic growth. The proposed indicators and tools for influencing the level of environmental and economic development arising from the implementation of the “green economy” as the main vector of sustainable development, which can be used further research and development and can be implemented by European companies.

Several researchers suggest that value-based pricing (VBP) is one of the most profitable pricing methods for companies competing in today's business environment. Interestingly, the implementation rates of VBP are, however, rather low. Numerous barriers to the implementation of value-based pricing have been found by researchers already. Although, a theoretical model for determining whether value-based pricing may be a suitable pricing method for a business is yet to be found in the literature. This study aims to introduce a theoretical model to aid pricing executives in their pricing method selection. For this purpose, 20 semi-structured in-depth expert interviews with German pricing experts were conducted as part of qualitative data analysis. The experts were selected using a purposive selection method. Pricing experts were asked to describe the most important factors for determining whether a company may implement value-based pricing.  We identified two main factors as being necessities for using VBP. The first factor named by the authors was the brand advantage (BA), and the second factor was represented by the delivered product benefits (DB) as perceived by the customer. Based on these two factors, a two-dimensional, quadrant-based theoretical model was developed and was named the VBP Determination Matrix. The matrix now evaluates a company's position within the matrix based on the factors BA and DB. It leads to direct calls-to-action for properly choosing the most suitable pricing method. This study's theoretical contribution was the development of a so far non-existing two-dimensional model for the determination of the suitability of value-based pricing. Business practitioners are now provided with an easy-to-use and highly applicable model to determine the initial suitability of implementing VBP. Senior management is given direct calls-to-action, whether an investment to implement VBP shall be made and whether to allocate resources.
Implications for Central European audience: The VBP Determination Matrix is a highly applicable model recommended especially for business practitioners in pricing, marketing and management. Central European companies are recommended to utilise the model to benefit from its strategic recommendations to properly select the most suitable pricing method for profit maximisation and competitiveness optimisation.

Globalisation and increasing competition affect all existing enterprises, as well as those in emerging economies. For this reason, enterprises continuously improve their own management systems and try to gain a competitive advantage in the market in addition to eliminating shortcomings. In emerging economies in Central Europe, including Slovakia, there are still not well-established tools to support management decisions that could reveal reserves, identify deviations from the required state and reflect all these attributes in the system of motivation, evaluation, and remuneration of employees. Controlling is such a tool, the implementation of which is a prerequisite for growth in performance and market value of the enterprise. The aim of the paper is to identify and present the optimal software support for controlling for the given segment of enterprises based on the mapping of the current state of using Business Intelligence to support controlling in micro and small enterprises (MSEs) in the conditions of the specific emerging economy, namely Slovakia. This information system will allow MSEs to respond flexibly to market changes, offer alternative options to support managerial decisions and can simulate the impact of any change in the plan on business management. Within empirical research, a questionnaire was used as a method to survey the given problem in the business practice of micro and small enterprises in Slovakia. The questionnaire was sent to 2,415 MSEs, with the research sample consisting of 421 respondents, i.e. of 17.43%. The survey meets the condition of a minimum sample size. We focused on groups of micro and small enterprises, as these represent 99% of the country’s market potential. While the introduction of the controlling module into the basic information systems of the company or Business Intelligence are investment-intensive for MSEs, as a real option, affordable software support for controlling based on the MS Excel programme was identified in practice. In view of the above, a prototype of a controlling information system called ‘SOFIN-KA’ was designed and successfully tested in the practice of the Slovak Republic in an MS Excel programme, which is customisable to each MSEs.
Implications for Central European audience: For the success of micro and small enterprises (MSEs) in today’s turbulent business environment, it is important to make better and faster decisions. However, MSEs in Central Europe, including Slovakia, currently do not often have sufficiently established tools to support management decisions. One of the ways to solve this problem is controlling. The proposed software support for controlling is applicable not only in Slovak MSEs but also in V4 countries. The software has been designed this way that it can always be adapted to the specific conditions of each company.

This paper analyzes the state of corporate sustainability in the Czech Republic compared with world trends, including case studies of best practices. Corporate sustainability has developed from ad hoc activities dominantly focused on cost-cutting or corporate image improvements to strategic issue requiring the attention of corporate boards and top management. The development of sustainability as an integral part of corporate existence comprises of the following managerial implications: strategy, collaboration, and implementation. The strategic component requires mission reformulation, strategy redefinition and involves the board and top managers' broader thinking, leaders capable of open mindedness, and creativity. The collaborative component calls for intensive collaboration and communication with all stakeholders, including association with avant-garde partners, such as, NGOs, regulators, universities, and competitors. The implementation component addresses the need for high quality change management programs.

Despite a decades-long discussion about corporate social responsibility ("CSR"), there is little known about the evolution and meaning of the EU law on CSR and its perception by various stakeholders. The two objectives of this paper are: (i) assessing the evolution to the current EU law on CSR and (ii) making a case study about the perception of CSR by businesses from the luxury fashion industry supposed to be the leading CSR force, namely their ambassadors - CEOs and employees facing the clientele in Pařížská street in Prague. In order to address these two objectives, holistic and interdisciplinary research of economic, legislative and academic sources as well as a case study, entailing interviews and mystery shopping was performed. The exploration of the yielded data employed Meta-Analysis, content analysis, teleological interpretation, etc. The critical and comparative review of the evolution of the EU law on CSR shows piecemeal trends and a lack of permanent consent. This leads to the fragmentation and ambiguity, which is matched by the findings of the case study. The perception of the EU law on CSR is done differently by various CEOs of luxury fashion businesses, and there is an inconsistency between their attitudes and those of their employees facing the clientele. Such inconsistency undermines the effectiveness and efficiency of the CSR regime and needs to be corrected.
Implications for Central European audience: Although the sustainability projected in CSR is critical, the EU law has undergone a complex and fragmented evolution leading to a partially mandatory framework. The understanding and application of such a framework about CSR and its reporting is a challenge. A Central European case study of luxury fashion industry businesses shows piecemeal trends and a lack of consent, and this even among CEOs and frontline employees of the same business. The implication of such an inconsistency is a decrease in the effectiveness and efficiency of the CSR regime, a devaluation of the CSR awareness and the need for corrections.

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.

Extensive empirical evidence shows that women perform worse in financial literacy tests, which implies that their financial behaviour may also be worse compared to men. However, the literature on the gender gap in financial behaviour is scanty and highly inconclusive. Using data from a survey of married and cohabiting couples living in Poland (N=1,000) and a multi-dimensional scale validated in terms of its psychometric properties, this article compares the financial behaviour of women and men. The applied tests did not show any significant gender differences in the overall financial behaviour index or in any of the subdomains of the behaviour distinguished in the applied scale. Using the social identity theory as a framework, we discuss possible explanations of these puzzling findings, which may imply that women are unnecessarily considered a disadvantaged group in terms of preparedness to participate in financial life, including the business sphere.
Implications for Central European audience: Assuming that the gender differences in financial literacy and behaviour can be explained on the grounds of the social identity theory, Central and Eastern Europe may differ from Western Europe in terms of the gender gap. Socially-imposed gender roles were presumably shaped differently behind the Iron Curtain, which resulted in that the distinction between masculine and feminine roles got blurred under the Soviet regime. As a result, the absence of gender differences in financial behaviour is more likely to occur in Central and Eastern European countries. Financial education initiatives should take this circumstance into account.

This paper deals with the need to complexly evaluate maturity, management, stakeholder relationship and resources utilisation of an organisation. It searches for an assessment tool independent on time and industry contexts. The research was conducted in two phases. The literature review on a set of existing performance models did not find any suitable tool. Based on that, a new performance model was created to assess the maturity of an organisation, focusing on soft factors like its leadership, processes and culture. It had been tested using structured interviews with managers in Czech, Slovak, German and Chinese companies. The model is based on a set of 17 non-financial criteria, divided into categories Management, Stakeholders and Resources. The results are given for each criterion, category and as an overall score. This article briefly describes the developed CAT model, methodology of its creation and validation and explains how it can be applied as an assessment tool. Its results can be benchmarked among different organisations/overtime to track development progress.
Implications for Central European audience: This model gives both practitioners and researchers a lean, yet powerful tool to evaluate the maturity of an organisation with structured and measurable results. The new possibilities for quantitative research using the CAT model are now available for researchers to assess even larger samples of organisations with reasonable effort. For practitioners, the value is in a quick discovery of own weaknesses/strengths with structured results and recommendations. Model structure and selection of respondents ensures that the results are measurable and cover views of both management and employees.

The adverse effects of the pandemic (COVID-19) are already reflected in the Slovak economy. At the same time, some experts warn that the pandemic is not over and may manifest itself in the second wave. The article examines the concept of Health consciousness as one of the possible (preventive) measures in a pandemic. The aim is fourfold: 1. to measure the level of health consciousness in normal conditions 2. to measure the level of health consciousness during a pandemic 3. to examine the differences between these levels and 4. to determine the true meaning of health consciousness in a pandemic. A sample of 384 respondents was employed in the research to collect the empirical data. The sample was selected by the quota method. The study consisted of two phases - the first phase before the pandemic and the second phase during the pandemic (COVID-19). The one-way ANOVA test and linear regression analysis were used to explore the impact of selected factors on health consciousness in the Slovak population and to verify the hypotheses. The results of the research indicate that health consciousness increased sharply during the pandemic. At the same time, selected demographic factors were confirmed as factors influencing the level of health consciousness. The level of health consciousness can affect the frequency of infections. The results can be used in many fields (medicine, sociology, psychology, marketing), both theories and practice.
Implications for a Central European audience: The development of the Slovak economy at the end of 2019 led to a more positive estimate of GDP growth and other economic indicators. The situation has changed in the context of the pandemic. Especially small and medium-sized enterprises represent a vulnerable place in the Slovak economy. We must look for possible ways to eliminate the pandemic and at the same time look for effective preventive means that could be used in the event of a second wave or another pandemic to protect human lives as well as the state economy.

Servant leadership has been anchored in academia on the international level during recent years. However, there is a lack of studies within the Central European region. The aim of this study is to review the concept of servant leadership and examine its relation to work performance. The focus is placed on the supervisor’s servant leadership and their relationship with subordinate’s in-role and extra-role work performance. Data were collected via a self-report questionnaire based on validated and adapted scales. The sample included 106 Master students of a standard Management program at the University of Economics, Prague (VŠE) who have a job of 20 hours a week and more. Regression analysis showed a positive and significant relationship between supervisor’s servant leadership and both subordinate’s in-role and extra-role work performance. On the level of individual dimensions of servant leadership, only “empowering” showed to be positively and significantly related to work performance. Results suggest that working business students appreciate when supervisor provides them with responsibility and autonomy. The implications are limited due to the design of the study and the nature of the data. Organisations would benefit from the adoption of servant leadership if they aim to create an environment supportive for both in-role and extra-role work performance.
Implications for Central European audience: Servant leadership is a viable concept used and researched worldwide. Its factorial structure was supported in the Czech context, and it provides a base for future research. Servant leadership might offer a convenient roadmap to accommodate work expectations of millennials and Gen Z from Central European region, e.g. servant leadership behaviour “creating value for the community” aligns with their expectation “business leaders take responsibility for societal needs”.

Many sources have been noted that environmental protection measures are economically beneficial as their application allows to increase the efficiency of resource use, reduce operating costs, increase company’s profit and also to avoid ecological accidents. The aim of the article is to analyse the environmental component of sustainable development in terms of its expression in the corporate activities. And according to results of analysis to create a model whose application not only demonstrates the actions needed to strengthen the environmental sustainability of corporations, but also allows an assessment of their potential and readiness for sustainable development. The elements of created model define the environmental actions to be taken also provide structural basis for implementation of these processes. So, the model serves as an instrument to show directions of improving the environmental sustainability of the Company's activities. Research was based by using the methods of logical assessment, systematization, and comparison of information, selecting the most important information, which describes the environmental sustainability. The application of the actions in the company's activity would allow to gradually approach the sustainability of the company activities. Possibility to use the model and its suitability has been approved by Lithuanian construction companies. The application of the model will allow companies better implementation environmental actions which will improve the company's results of economic performance and will also help public institutions distributing funds for environmental purposes by projects. Construction companies were ranked in accordance with possibility to implement environmental measures by use proposed methodology.

When the COVID-19 pandemic arrived in the Central European region in March 2020, one of the hardest-hit economic sectors was the tourism industry which virtually came to a complete standstill. The present paper uses licensed tourist guides from Slovakia as a case study of how significant the financial impact of the crisis was and what effect it might have on the future competitiveness of the industry, as perceived by the tourist guides themselves. The research is based on a questionnaire which was distributed among licensed tourist guides in Slovakia in July 2020. It is shown that the guiding income of more than four-fifths of the respondents decreased by at least 80% between March and June 2020, and the profession's outlook for the future is pessimistic. The main concerns are a decline in the number of visitors, a decline in demand for guided tours and lower market prices for guiding services. The lower share of group travel, faster development of proximity tourism, partial de-professionalisation of the tourist guide profession and higher emphasis on tour hygiene are the expected impacts of the pandemic. A wave of consolidation is almost guaranteed to influence the tourism industry, though its extent is hard to predict. Implications for Central European audience: The article deals with tourism, which represents an important part of Central European countries' economies. Its results constitute the first preview of impacts of the COVID-19 pandemic on the sector in the region and as such are valuable for stakeholders in the Central European tourism industry. Even though the research is based on data obtained only from one tourism-related profession, tourist guides, given their unique position between travel agencies and travellers, their insights are applicable and interpretable much more broadly.

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.

This article analyses the impact of the changes in hard commodity prices in the world commodity exchanges on the variation of countries’ general price level. In other words, this article aims to determine the impact of hard commodity prices changes on inflation. In this paper, all countries of the European Union (EU) are included in the research, and case analysis is done accordingly. The methodology applied is the following: a study of the recent scientific literature, processing and systemization of statistical data, correlation analysis and Granger causality test. The results of the research show that price changes of selected commodities in world commodity exchanges have no absolute dependence on the variation of the general price level in EU countries in the long period. Natural gas should be distinguished, whose price fluctuations in the commodity exchange market show a positive correlation with 14 EU countries’ CPI changes. In addition, the research shows that Lithuania’s inflation has been affected by all five selected commodities’ prices fluctuations. UK and Romanian inflation relate to four of five selected commodities’ prices fluctuations.

Recent developments and changes in the modern economy as well as falls and rises of large corporations have brought up the public interest towards the accounting discipline, and have resulted in a growing demand for accountant specialists as educated professionals. The aim of the present research is to find out what is the role of the accountant in the modern enterprise. The authors conducted a survey among Estonian accounting specialists and managers. The results of the survey clearly indicate that in most Estonian companies, accountants are actively assisting members of the board to make vital decisions, and their competence, knowledge and skills are highly valued by managers. The findings of the survey emphasize that Estonian accountants are highly qualified, keeping in line with the latest developments in the modern financial world.

The complexity and variability of the contemporary labour markets creates the need for continuous improvement of methods used for their description, analysis and forecasting. Looking for a tool that allows for the simultaneous analysis of various aspects of contemporary labour markets, the authors focused their attention on k-partite graph models (with particular emphasis on bipartite graphs). The assessment of the usefulness of models based on bipartite graphs for analysis of regularities occurring on the Polish labour market is the main aim of the paper. The authors studied the regional distribution of the demand for employee competencies and evaluated the specificity of localities and competencies. The concept of bipartite competency schemas is also introduced in the paper. These schemas can be used as models representing strongly related competencies and localities. The usefulness of bipartite competency schemas was confirmed by empirical research presented in the paper. The content of job offers published online formed the main source of data examined. All analyses were performed with the use of the R programming language.

There is very little research in the extant literature on the asymmetry that may exist in consumers reactions to changes in the aggregate level of advertising in the marketplace. Aggregate levels of advertising act as a signal to consumers regarding the health of the economy. In this study, we investigate the extent of this asymmetry in terms of how consumer confidence, which is a proxy for future consumer spending, responds to upturns and downturns in advertising revenues. We find that consumers react with higher levels of confidence to upturns in advertising revenues. However, consumers do not react to downturns in advertising revenue with commensurate reductions in consumer confidence. They ignore the signaling effects of a downturn in advertising revenues, displaying asymmetric behavior in response to changes in advertising revenue. The increase in consumer confidence resulting from an increase in advertising revenue is a delayed response effect and comes after two quarters lag. It is statistically significant at conventional levels for the following two quarters as a response to a one-time upturn in advertising revenues. The results provide important information to practitioners and researchers on the asymmetric signaling and ratchet effects of advertising on consumer behavior. The implication for practitioners and policy makers is that aggregate increases in advertising has a delayed positive effect on consumer confidence with positive implications for consumer spending. The implications for researchers is another example of asymmetry in human decision-making and specifically the tendency to embrace positive and ignore negative economic signals. The implication for investors is a better understanding of how macro advertising expenditures function as a leading indicator for consumer confidence, consumer spending, and economic growth.

The participation of national V4 electronic industry in global value chains is a source of additional output, in addition to, a driver of technological development and employment. The aim of the study is to analyse whether the V4 region has the expertise capacity to upgrade its position in the electronics GVC integrated into the Samsung company. The analysis is built on the theory of GVC and the methodology of surveying the V4 labour market and education related to engineering. The quantitative results are supplemented with research interviews with Samsung managers and related municipal leaders. The analysis concludes on V4 upgrading opportunities in electronics GVCs determined by expertise.

A company’s capital structure is a significant factor in valuing its business. The relative levels of equity and debt affect risk and cash flow and, therefore, the amount an investor would be willing to pay for the company or an interest in it. Capital structure matters because it influences the cost of capital. Therefore, this paper aims to quantify the effect of the capital structure on the cost of capital of Slovak enterprises and to suggest an effective way of financial decision-making. The data used in the study was gained from the Bratislava Stock Exchange because publicly available information on enterprises issuing their shares on the stock exchange was needed to calculate the cost of capital. Due to the underdeveloped capital market of Slovakia, we chose 17 stock companies (except for commercial banks) operating on the Slovak market having all the data required. The financial data of companies were obtained from their financial statements spanning 2013 to 2017. The impact of the capital structure on the cost of capital was investigated by the Pearson correlation coefficient, regression analysis and Mann-Whitney U-test. The study found that there is an indirect relationship between the capital structure, the cost of capital and the size of the company. We also conclude that the growing volume of debt may result in a decline in the corporate costs of capital. These findings concerning Slovak enterprises incline to the respected compromise theory.

This paper investigates whether the activities of start-ups specialising in artificial intelligence (AI)-powered solutions could contribute to upgrading in dependent market economies. Mapping the ecosystem of Hungarian AI-solution providers, collecting, and analysing data of their solutions, activities, and performance, we identify the main mechanisms of AI-driven upgrading. We argue that AI-solution providers induce productivity and resource efficiency improvement at technology adopters by enabling process upgrading. By selling their services to the local subsidiaries of global companies, they intensify the local backward linkages of these companies. Increased local embeddedness of subsidiaries is an important manifestation of economic upgrading. Additionally, AI-solution providers diversify the drivers of growth. In dependent market economies, where export-oriented manufacturing activities controlled by efficiency-seeking foreign investors used to be the main (unique) growth engine, the activities of domestic-owned AI solution providers represent a new driver of growth: technology-oriented entrepreneurship. We found, however, that the economic impact of Hungarian AI-oriented ventures is limited, no matter how innovative their solutions are. Managerial implications include the indispensability of devising an adequate business development strategy and a value capture strategy. Without adequate entrepreneurial skills, and without being visible on the global stage of ‘AI-start-ups to watch’, the development prospects of even the most innovative ventures are limited. A key policy implication for supporting the scaling up of AI start-ups by promoting the adoption of AI-powered solutions and stimulating venture capital financing promises good return on public investments.

In privately held firms, owners are a social group of people who are aware of, interact with, and influence each other. There are dynamic relationships between them and potential clashes between self- and collective interests. At the same time, the management literature suggests that family firms behave differently than non-family firms and follow a different set of goals. This paper introduces a research framework, sample and initial findings of the Responsible Ownership Project, which aims to contribute to our understanding of how attitudes and behaviours of owners in privately held firms may influence the economic and non-economic outcomes of their firms. The goals of the paper are to explore the role of family businesses among Czech private firms and to test whether the family plays a significant role in responsible ownership behaviours in private firms. Our descriptive statistics suggest that family businesses play a non-negligible role in the Czech economy. Using Student’s t-test for mean differences, we find a higher level of responsible ownership for family-owned vs non-family-owned firms. Finally, we present directions for future research and the expected contributions of the research project.

This paper contributes to the debate about the relationships among tourism experience co-creation, satisfaction with vacation experience, satisfaction with the impact of vacation on overall life, life satisfaction and behavioral intentions. The main purpose of this paper is to point out the importance of tourist engagement in the co-creation of the vacation experience and the impact of satisfaction with that experience on life satisfaction and behavioral intentions. A survey was conducted on a convenience sample of 263 international tourists who visited several tourist destinations in Croatia. To test the proposed model, partial least squares structural equation modelling (PLS-SEM) was employed. It has been established that co-creation of tourism experience significantly contributes to the satisfaction of tourists staying in a destination, which has a positive effect on life satisfaction and future behavioral intentions.

The study of internationalization processes of multinational enterprises and its evolution is one of the most important topics in the domain of international business. According to the Uppsala model and the business network view, being an insider in local networks is a fundamental issue for service companies such as banking groups because of their strong intangible dimension. That’s why VUB Bank is an extraordinary bank. It has a little office in Prague, the only one in Czech Republic, and, at the same time, owns 233 branches in Slovakia. But this bank is a subsidiary of Intesa Sanpaolo, the biggest Italian banking Group, one of the leaders in the European market. Starting from this empirical observation, and using an inductive methodology, this paper will try to explain how the Intesa Sanpaolo Group successfully created a business network in Slovakia, its first market by total assets in Central and Eastern Europe. Our study shows that Banking Groups can overcome the liability of outsidership through a progressive commitment and a “local-passport strategy” based on the acquisition of existing companies.

The topics of sustainability and strategic corporate social responsibility are currently being discussed by different stakeholders on academic, industry and various activist levels; however, the level to which they are incorporated into organizations’ strategy varies significantly by industry. The needs of the customers as well as the requirements from state governance may challenge the currently relatively “CSR silent” luxury industry to become more active in its contribution to social responsibility.  This paper investigates the topic of corporate social responsibility within the context of the luxury industry, the extent to which customers are aware of CSR and the significance of the role it plays in their customer journey.  The authors provide a literature review focused on exploring CSR variables that impact customer purchase intention in general and specifically in the luxury segment, from which they identify key CSR measures and conduct qualitative research to develop a theoretical framework. It suggests that purchase intention in the luxury segment is dependent on the luxury values, individual sustainable dimension and awareness of the brand’s CSR, the last two relationships being potentially moderated by certain conditions such as demographics and general positive attitudes towards CSR and sustainability. The model’s output is in the formulation of several propositions for further research. Overall, the qualitative interviews indicate that while knowledge of the specific CSR activities of particular luxury brands was low, luxury buyers in this research tend to express quite positive attitudes towards CSR in general, were rational, and very open to considering CSR as an added value to their luxury shopping.

Mergers and acquisitions (M&As) play an increasingly important role in the expansion of Chinese companies in the European market. The article aims to analyze the largest, in terms of value, M&As conducted by Chinese companies between 2005 and 2015 in the energy sector, in order to present the main premises and consequences of such agreements. For this purpose, the assessment was made based on case studies conducted by the Author, as well as the opinions of experts specializing in the business models of Chinese enterprises, derived from qualitative interviews. Specialized literature on the discussed forms of international expansion of Chinese enterprises was also used. Based on the case study method, analysis of the agreements shows that decisions on conducting M&As are strongly influenced by the adopted strategic directions of the companies’ development, their desire to develop a competitive position on the market and improve their financial condition. The effects, in turn, were addressed, taking into account the dimensions of the strategic and tactical importance for companies.

The aim of the article was to internationally compare the market concentration of grocery retailers in the six countries of Central Europe - Austria, Czech Republic, Germany, Hungary, Poland and Slovakia. The market concentration was measured by CR4 ratio, Herfindahl-Hirschman Index and the GRS index. Data covered the period 2010 - 2015. The secondary data came from the Euromonitor International and Bureau van Dijk databases. The results showed that the market structure of the Central European grocery retailers has mostly a character of asymmetric oligopoly. The pairwise correlation did not reveal any strong relationship between the market power and profitability of the grocery retailers. The Central European grocery market is controlled by strong national retail chains and multinational companies which operate modern grocery retail formats. However, traditional grocery retailers are still popular in Hungary while traditional individual grocers in other countries are disappearing or gradually joining the networking system based on franchising.

This paper reports the results of an empirical examination of leadership traits and behaviors that contributed to team performance in a major Swiss HR consulting firm. Based on personality tests, survey research, and in-depth interviews, results indicate that, in the context of the company's sales-driven, high-pressure environment, personality factors such as conscientiousness or detail-orientation seem to be better predictors of leadership success than extraversion and openness to experience. Female leaders overall outperformed their male counterparts, and experience was found to significantly contribute to superior performance. Implications for hiring, development, and succession practices are discussed.

Over the past two decades, French enterprises have been heavily investing in the Czech Republic. Today, France is the fifth biggest investor to the Czech Republic, and French companies are among the most important employers. The aim of this study is to analyze the presence of French firms in Czech Republic by look at the example the French-Czech mergers and acquisitions (M&A), and to explain the main motivation of the location of French firms in the country. Using a review of documents and secondary data analysis, we observe that French enterprises have invested especially in the Czech manufacturing sector, energy & power, consumer staples and financial services. In this study, we evaluate if French corporations try to optimize their production process within so-called global value chains, and if French companies have invested in their own strategic domain area or another strategic area by using the diversification growth approach. Finally, we present examples of successful mergers and acquisitions of French firms realized in the Czech Republic.

Opera has a famous history and even the present-day repertoire in opera houses mostly consists of classical and well-known works. Marketers are trying to find new ways that would enable opera lovers all over the world to enjoy top quality performances. One of the most successful models is real-time transmissions of operas to geographically remote cinemas. Cinemas from all around the world participate in the project. In this paper, the authors analyze the spectators' profile and point out differences between North America and the Czech Republic, focusing on transmissions of performances by the Metropolitan Opera in New York. The authors submit a detailed analysis of the socio-demographic characteristics of the spectators and the attendance frequency. Special attention is paid to the marketing profile of Czech spectators, based on primary data gathered in the research. The paper is a combination of research report and business case study. The study reveals that female visitors prevail. Elderly people are also represented in high percentages. The spectators are characterized by refined taste in their lifestyles and familiarity with modern technology.