AGORA INTERNATIONAL JOURNAL OF ECONOMICAL SCIENCES
ISSN 2067-3310. Online-ISSN 2067-7669 . Acronym: AIJES. Agora International Journal of Economical Sciences is published yearly, beginning with 2007, and includes studies that are structured on the following scientific fields: General Economics, Management, Marketing, Tourism, Accountancy, Finance. AIJES is currently indexed in the following international scientific databases: ERIH PLUS, CEEOL, DOAJ, EZB, Econstor, Index Copernicus, Worldcat, EconBiz, COBIB.SI, Scipio, MIAR. AIJES is ranked Category A in ANVUR, Category B+ in CNCSIS2011 In 2023, Ljubljana School of Business, Slovenia, joined as a co-publisher and, based on this bilateral cooperation, AIJES is published twice per year.
THE IMPACT OF INNOVATION ON ECONOMIC GROWTH IN ALGERIA: AN ECONOMETRIC ANALYSIS USING THE ARDL MODEL (1996–2021)
The present study has been conducted for the purpose of analysing the relationship between innovation and economic growth in Algeria during the period 1996-2021. The study adopted a standard quantitative analytical approach using the augmented distributed lag regression (ARDL) model to estimate the relationships. The model was applied to a sample of 24 observations using EViews version 12. The study addressed four independent variables: high and medium technology exports, patent applications by residents, patent applications by non-residents, and scientific and technological articles. The findings indicated a negative correlation between high- and medium-technology exports and gross domestic product (GDP), with no discernible impact on the latter. Conversely, scientific and technological articles exhibited a positive correlation with GDP, albeit without exerting an effect on the immediate economic landscape. Furthermore, patent applications by residents demonstrated a negative correlation with GDP, affecting it in both the short and long term. In contrast, patent applications by non-residents exhibited a negative effect on GDP in the long term. In light of the findings, it is evident that innovation in Algeria is characterised by inefficiency and economic unproductivity within the prevailing structural framework. This necessitates a thorough re-evaluation of the policies and strategies associated with the national innovation system and Algerian economic growth by the state.
Copyright (c) 2025 AGORA INTERNATIONAL JOURNAL OF ECONOMICAL SCIENCES
THE DOUBLE-EDGED IMPACT OF ARTIFICIAL INTELLIGENCE ON CORPORATE REPUTATION: OPPORTUNITIES AND THREATS
This study examines the impact of artificial intelligence technologies on corporate reputation management focusing on the lens of threats and opportunities. Drawing on literature and current examples, it demonstrates that ethical and algorithmic bias, lack of transparency and accountability, manipulation through fake content and deepfakes, information disorganization (including misinformation, disinformation and malinformation), data privacy/security vulnerabilities, and automation failures pose significant risks to corporate reputation. In contrast, applications such as artificial intelligence-based monitoring and sentiment analysis tools, early warning and crisis simulation capabilities, data-driven decision support systems and stakeholder segmentation strengthen institutions' perception management and enable rapid and targeted intervention. The findings point to the dual nature of artificial intelligence, which can both strengthen and weaken reputations. Therefore, it is recommended that ethical compliance, strong data protection and model management, human-in-the-loop auditing, and transparent communication principles be integrated into corporate processes within a holistic management framework.
THE RELATIONSHIP BETWEEN OIL PRODUCTION AND RENEWABLE ENERGY CONSUMPTION IN AZERBAIJAN (2005-2024)
This study investigates the relationship between oil production, renewable energy consumption, and economic growth in Azerbaijan from 2005 to 2024, offering empirical insights into the country's dual energy structure and diversification challenges. As a hydrocarbon-dependent yet renewable-resource-rich nation, Azerbaijan represents a distinctive case for assessing whether oil wealth supports or hinders the transition toward sustainable energy. The research aims to evaluate how oil production and renewable energy variables interact with each other and with economic growth, thereby determining whether the country's development trajectory reflects complementarity or substitution between fossil and renewable resources. Using annual time-series data from the State Statistical Committee of Azerbaijan and the World Bank, the study applies descriptive statistics, Pearson correlation, hypothesis testing, and linear regression analysis to examine the strength and direction of these relationships. The results reveal a statistically significant positive correlation between oil production and the share of renewables in total energy consumption, suggesting that oil revenues may be reinvested into renewable projects, indicating a complementary rather than competing dynamic between the two sectors. In contrast, the weak correlations between GDP and energy variables imply that economic growth has become partially decoupled from short-term energy fluctuations. These findings highlight the potential for resource-rich economies to leverage hydrocarbon income to accelerate renewable energy deployment. The paper concludes that integrated policy planning, institutional strengthening, and targeted reinvestment of oil revenues are essential to achieving a balanced and sustainable energy transition in Azerbaijan.
DIGITAL TRANSFORMATION AND EMERGING HR COMPETENCIES: AN EMPIRICAL STUDY OF SLOVENIAN ORGANIZATIONS
The accelerating pace of digitalization is fundamentally redefining the role, competencies, and strategic importance of human resource management (HRM). This study investigates how digital technologies—such as artificial intelligence (AI), analytics, and automation—transform human resource (HR) functions and generate new competency requirements, including digital agility, data fluency, and strategic capability. Building on theories of digital HRM, competency-based management, and sustainable HRM, the study develops an integrated conceptual framework linking digital transformation, HR competencies, and organizational sustainability. Empirical data were collected through a survey of more than 100 Slovenian organizations across different sizes and industries, yielding 82 valid responses for analysis. The findings indicate a relatively high level of HR formalization, alongside persistent difficulties in recruiting qualified HR professionals. Key competency gaps were identified in employee development, HR analytics, and strategic HRM. The results further show that larger organizations are significantly more likely to have established HR functions, while organizations with more mature HR structures recruit HR specialists more frequently and attribute greater importance to developing a national HR management system. Moreover, organizations that recruit HR professionals more intensively report greater difficulty in identifying suitable candidates, pointing to a growing skills mismatch in the HR labor market. Overall, the findings demonstrate that successful digital transformation in HRM depends not only on technology adoption but also on the integration of digital, analytical, and ethical competencies. The study contributes to HRM theory and practice by offering a combined conceptual and empirical model linking digital agility, HR analytics, and sustainable HRM outcomes, providing practical insights for organizations and policymakers seeking to strengthen HR capability development in the digital era.
WHAT MATTERS MOST TO YOUNG FESTIVALGOERS? INSIGHTS FROM A CROSS-GENERATIONAL ANALYSIS CONDUCTED IN GERMANY
Festivals are a unique cultural space where diverse audiences converge, each with varying expectations and priorities. By focusing on young people, this study explores which aspects festivalgoers across different age groups consider most important, using data from a comprehensive survey conducted in Germany (secondary data analysis of a 2023 survey; N = 3503). Through cross-tabulations, the analysis examines preferences such as cleanliness, hygiene facilities, transport options, and entertainment. While initial findings show that sustainability consistently ranks as a low priority for festival attendees regardless of age, this study aims to uncover potential generational differences in other key areas. The results provide valuable insights for festival organizers seeking to align their offerings with the diverse needs of their audiences while addressing broader cultural and societal expectations.
ORGANIZATIONAL ADAPTABILITY AND RESILIENCE FOR SUCCESSFUL MANAGEMENT
This study examines the critical role of organizational adaptability and resilience in ensuring effective managerial performance within an increasingly volatile and uncertain business environment. Building on contemporary management theory, the study clarifies the conceptual foundations of adaptability and resilience, emphasizing their complementary functions in supporting organizational transformation. The analysis investigates how adaptability fosters strategic flexibility, rapid resource reconfiguration, and innovation capacity, while resilience enables organizations to absorb shocks, maintain operational continuity, and recover efficiently from disruptions. To illustrate the practical relevance of these concepts, the article integrates case studies from diverse industries, highlighting specific mechanisms through which organizations respond to environmental turbulence. The findings underscore the importance of leadership behavior, organizational culture, and digital maturity as key determinants shaping both adaptive and resilient capacities. Furthermore, several research directions are proposed, including the need for standardized measurement instruments, deeper investigation of the psychological underpinnings of resilient leadership, and expanded cross-cultural comparative studies to better understand contextual influences. Overall, the study concludes that the integrated development of adaptability and resilience constitutes a strategic foundation for long-term organizational sustainability. By cultivating these capabilities, managers can enhance decision-making effectiveness, strengthen organizational robustness, and foster sustained competitive advantage. The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday’s logic. (Peter F. Drucker)
NON-PERFORMING LOANS AND ECONOMIC GROWTH IN SOUTHEAST EUROPE
The main purpose of this research is to analyze the impact of non-performing loans on the economic growth of Southeast European countries for the period 2012-2022. This research has a sample of 10 countries, part of South-Eastern Europe, which includes countries such as Kosovo, Albania, Montenegro, Macedonia, Romania, Slovenia, Bulgaria, Greece, Croatia, and Bosnia and Herzegovina. The scientific methodology that has been applied in this study is the quantitative method. The data used in the research are secondary data and were generated from official data published by the World Bank and the Kosovo Statistics Agency. Based on the results of this research, we can conclude that the increase in the level of non-performing loans has a negative impact on the economic growth of the countries of Southeast Europe for the period 2012-2022. While there is a positive relationship between the rate of unemployment and GDP, it should be noted that the rate of unemployment, as an independent variable of this research, has turned out to be statistically insignificant. However, there is a positive relationship between inflation and GDP.
PUBLIC FINANCE MANAGEMENT SYSTEMS IN ALBANIA: GAPS, REGIONAL COMPARISONS, AND REFORM PATHWAYS
This paper evaluates Albania’s public finance management (PFM) systems by examining governance frameworks, macroeconomic performance, and regional comparisons within the Western Balkans. The author has used the qualitative analysis of international governance standards, regulatory reports, and national economic data. The study highlights how principles of openness, integrity, and accountability—originally articulated in the Cadbury Report—have been adapted to the public sector through the CIPFA framework. Through the economic analysis the author has identified the key strengths, including improved fiscal balances, declining public debt ratios, and resilience to external shocks, while also revealing persistent gaps in budget execution, transparency, and public investment management. Comparative insights from neighboring countries underscore both shared regional challenges and Albania’s relative progress. The paper concludes with strategic directions for strengthening PFM in Albania, emphasizing enhanced accountability mechanisms, more effective use of audits, and better alignment of fiscal policy with long-term development goals.
CORPORATE GOVERNANCE COMPLIANCE AND FINANCIAL PERFORMANCE IN ROMANIAN FINANCIAL INSTITUTIONS
This paper examines the effect of compliance with the Corporate Governance Code (CGC) on the profitability and leverage of Romanian financial institutions listed in the Premium category. The study uses panel data from 2018–2023, applying descriptive and regression analyses processed in Microsoft Excel to evaluate the impact of governance compliance, foreign ownership, and managerial ownership on ROA, ROE, and LEV. The findings show that CGC compliance significantly improves profitability but does not affect leverage. Managerial ownership enhances both ROE and leverage, while foreign ownership increases leverage without improving performance. The results contribute to corporate governance research in emerging markets and offer practical insights for regulators and investors regarding the importance of effective governance mechanisms.
BUILDING AN AI-ENABLED ECONOMY: GLOBAL POLICY MODELS AND STRATEGIC DIRECTIONS FOR AZERBAIJAN
This paper examines how leading economies integrate artificial intelligence into national economic and business systems and evaluates the relevance of these experiences for Azerbaijan’s emerging AI strategy. The study analyzes the strategic and legislative frameworks of the United States, China, and Spain, focusing on their approaches to innovation governance, sectoral prioritization, institutional design, and mechanisms that facilitate AI adoption by firms. The purpose of the research is to identify which elements of these international models can support Azerbaijan’s transition toward a more diversified, knowledge-based economy. Using a comparative policy analysis, the paper reviews national AI strategies, regulatory acts, implementation tools, and public–private innovation infrastructures to assess their transferability to the South Caucasus context. The findings show that the United States demonstrates the strongest framework for commercialization and research–industry collaboration; China provides a structured sectoral planning model with measurable targets; and Spain offers a balanced, human-centric regulatory approach aligned with EU governance standards. When compared with these systems, Azerbaijan’s strategy presents solid long-term ambitions but lacks detailed sectoral roadmaps, commercialization mechanisms, and trust-building governance tools. The paper concludes by proposing targeted recommendations for Azerbaijan, including AI commercialization hubs, sector-specific roadmaps, and an ethical governance package aligned with international best practices.
"THE ECONOMIC REVIEW" IN THE SERVICE OF PROMOTING SUBJECTS RELATING TO ECONOMICS AMONG THE ROMANIAN PUBLIC
Throughout its early years, „Revista Economică" (the "Economic Review") served as an acknowledged advisor to Romanian business and financial circles, disseminating the expertise and experiences of individuals who focused solely on economic research. Initially, without omitting the problems of agriculture, the program for spreading economic knowledge was primarily focused on financial and accounting issues. Since „Revista Economică" (the "Economic Review") was solely funded by the Romanian banks in Transylvania, its original goal was to serve their interests. This aspect was highlighted by the development of the themes it addressed and the implementation of its original program. Nevertheless, it recognized the interdependencies between financial institutions and was not restricted to handling banking matters in the traditional sense of the word. In time, "The Economic Review" broadened both its field of activity and the thematic approached, dealing with topics related to all branches of Romanian life and activity.
ECONOMIC EFFICIENCY AND DEVELOPMENT TRENDS OF APPLE PRODUCTION IN THE QUBA–KHACHMAZ ECONOMIC REGION IN AZERBAIJAN
This study analyzes the economic efficiency and development trends of apple production in the Quba–Khachmaz economic region of Azerbaijan. Using statistical and analytical methods, including the Compound Annual Growth Rate (CAGR), the research evaluates changes in cultivated area, yield, and total production for the period 2020–2030. Findings reveal that although orchard areas have declined by over 20 percent, productivity has increased by more than 25 percent, indicating a shift toward intensive and resource-efficient agricultural practices. The transition to intensive and super-intensive orchard systems enhances production stability through technological innovation, improved irrigation, and sustainable resource use. These results demonstrate that modernization in fruit farming strengthens economic resilience and supports the transformation from extensive to intensive agriculture. The study contributes to the achievement of the UN Sustainable Development Goals (SDGs) by promoting sustainable agricultural growth, resource optimization, and environmentally responsible production models.
DO PROFITABLE FIRMS EARN HIGHER STOCK RETURNS IN FRONTIER MARKETS? EVIDENCE FROM THE COLOMBO STOCK EXCHANGE
This study investigates the validity of the profitability anomaly in the Colombo Stock Exchange (CSE) by examining whether firms with higher profitability earn higher expected returns. Using monthly data for all listed non-financial firms from April 2010 to December 2023, two profitability measures, operating profitability and cash profitability, are analyzed through portfolio sorts and monthly cross-sectional regressions controlling for standard risk factors, including Beta, Size, Value, Investment, and Momentum. Portfolios are formed based on quintiles of operating profitability and quartiles of cash profitability, rebalanced monthly to reflect changing firm characteristics. The results reveal that neither operating nor cash profitability consistently predicts stock returns once these factors are considered. Although high-profitability firms tend to show slightly positive coefficients, these effects are economically small and statistically insignificant, indicating only a weak and tentative profitability premium. The findings demonstrate that profitability has limited incremental predictive power in the CSE and that its effect is conditional and context-dependent. Profitability should therefore be viewed as a complementary rather than a standalone determinant of stock returns. This study contributes to asset pricing literature by extending the examination of the profitability anomaly to a frontier market context, offering insights for both researchers and practitioners into the role of firm characteristics in explaining expected returns.
INTEGRATING MEASUREMENT AND MEANING IN ORGANIZATIONAL CHANGE
This paper addresses the central challenge in organizational transformation: integrating analytical measurement with human-centered meaning-making to drive sustainable change. Based on an empirical study of 147 senior managers across eight Georgian business organizations, the research initially identifies a critical disconnect. While quantitative awareness of the need for change exists, local management practices are hampered by core deficiencies, including organizational procrastination, managerial inertia, and the inconsistent application of standardized methodologies (PDCA, PESTEL, SWOT). To bridge this gap, the study introduces the Integrated Self-Diagnosis and Measurement Framework (ISDMF) first. This framework is designed to move beyond external compliance, aiming to internalize disciplined change by fostering self-accountability and continuous, systematic measurement. The core contribution lies in reframing change as a process where measurement informs meaning, and meaning activates measurement. This ensures that change is seen not merely as a procedural or metric-driven transformation, but as a lived process of alignment alignment between objective organizational data and subjective, deeply-held individual awareness. By connecting quantitative rigor (Measurement) with a human-centered, symbolic perspective (Meaning), the study offers a novel lens for developing resilient leadership cultures and overcoming inertia in transitional economies.
LEADING THE BORDERLESS TEAM: MANAGEMENT PRACTICES FOR A HYBRID AND GEOGRAPHICALLY DISPERSED INTERNATIONAL WORKFORCE
The accelerated and permanent shift to hybrid and remote work models has fundamentally altered the operational reality of multinational corporations, giving rise to the "borderless team"—a geographically dispersed, culturally diverse, and digitally connected workforce. This paper explores the unique challenges inherent in leading these teams, including exacerbated communication gaps, a deficit of trust and cohesion, amplified cultural hurdles, and the paradox of performance management at a distance. Through a conceptual analysis of extant literature, the study synthesizes these challenges and proposes a comprehensive framework of management practices designed to foster effectiveness. This framework is structured around four critical domains: (1) Intentional Communication and Technology Stewardship, emphasizing structured rhythms and cloud-based infrastructure; (2) Deliberate Relationship and Trust Building; (3) Inclusive Leadership and Cultural Intelligence to mitigate proximity bias; and (4) Outcome-Oriented Performance Management. The study concludes that success in this new paradigm requires a deliberate evolution from informal, office-centric management to a structured, inclusive, and technology-facilitated leadership approach, redefining the international manager's role from supervisor to connector and strategic facilitator.
THE IMPACT OF INFLUENCER MARKETING ON THE CONSUMER BEHAVIOUR OF GENERATION Z AND MILLENNIALS
The paper focuses on the impact of influencer marketing on the consumer behaviour of younger generations, that is, Generation Z and Generation Y (Millennials), emphasizing how influencers shape their perception, attitude, behaviour towards a brand. Using literature review methodology, the study highlights the results of recent research papers, which clearly indicate that there is a strong positive correlation between the influencer’s credibility and customers’ attitude towards the brand. The paper provides a substantial contribution to the existing body of literature by presenting insights into the consumer behaviour of younger generations. Similarly, potential negative long-term impacts of relying on influencers for endorsing products are also briefly discussed. In conclusion, influencer marketing could be proven advantageous for businesses, however, potential risks such as greenwashing and misalignment of brand-influencer values must be taken into consideration. Therefore, for the effectiveness of social media influencing, business owners should ensure and maintain consumer trust and prevent potential reputational as well as ethical risks.
PREVENTIVE KPIS AND OPERATIONAL RESILIENCE IN SMALL FREIGHT FORWARDERS: THE CASE OF MGL GEORGIA
This study examines the role of preventive Key Performance Indicators (KPIs) in strengthening operational resilience in small international freight forwarding companies, using MGL Georgia as an empirical case. The research addresses the growing need for early-warning performance systems in small logistics firms operating under external volatility, limited resources, and high dependency on international carriers and agents. Methodologically, the study integrates a literature review on performance management and logistics risk, a comparative regional analysis of Georgia, Bulgaria, and Turkey, and a detailed empirical examination of MGL Georgia’s operational data. The theoretical foundation relies on Parmenter’s behavioural KPI model, which distinguishes between diagnostic indicators and action-oriented, preventive metrics. Empirical evidence demonstrates that small logistics firms predominantly rely on retrospective indicators that record deviations after they occur, limiting their ability to manage risks proactively. Operational data from MGL Georgia reveal critical vulnerabilities, including variable order-processing times, documentation errors, and unstable communication intervals driven by partner performance. The study identifies four key preventive KPIs -Time-to-Carrier-Response (TCR), First-Time Document Accuracy (FTDA), Proactive Status Update Ratio (PSUR), and Carrier Reliability Index (CRI) - as essential tools for forecasting disruptions. Proactive status updates substantially reduce the probability of SLA violations, underscoring the importance of behavioural compliance in service reliability. Comparative analysis highlights that regional market structures and regulatory contexts shape the types of risks that preventive KPIs must capture. The findings confirm that preventive KPIs improve operational predictability even in environments with high external dependency. The study proposes a structured KPI framework tailored to the needs of small freight forwarders, integrating behavioural, process, and partner-related indicators. Practical recommendations include digital dashboard integration, standardized documentation controls, proactive communication protocols, and partner-performance evaluation systems. The study’s limitations relate to its focus on one SME and partial reliance on internal ERP data. Overall, the research demonstrates that preventive KPIs constitute a scientifically grounded and operationally effective approach to enhancing resilience and competitiveness in small international freight forwarding companies.
LIFECYCLE-BASED INFRASTRUCTURE PLANNING IN GEORGIA: MODELLING EFFICIENCY IN ROAD MAINTENANCE AND REHABILITATION
This article develops and applies a stylized theoretical model of infrastructure lifecycle management to the Georgian road network, with the aim of identifying cost-efficient strategies for balancing investment, maintenance, and rehabilitation. The main scientific contribution lies in adapting established optimization models, such as the resurfacing framework and the marginal benefit-cost ratio principle, to the context of an emerging economy with fiscal and institutional constraints. The paper formalizes a deterministic deterioration model that minimizes the present value of total lifecycle costs by incorporating agency costs and user costs as functions of road quality and intervention thresholds. The model accommodates fiscal rigidity by quantifying the cost of deferral under fixed maintenance budgets. Empirically, the paper presents a novel classification and analysis of infrastructure spending in Georgia from 2014 to 2024, highlighting persistent underinvestment in maintenance and frequent misclassification of rehabilitation as capital investment. The study benchmarks these patterns against international good practices. By combining theoretical innovation with policy-relevant empirical evidence, the paper provides a framework for lifecycle-based infrastructure planning that can be adapted for use in other developing countries.
JOB SATISFACTION MANAGEMENT AND ITS IMPACT ON BURNOUT AND TURNOVER AMONG AUDITORS
The paper examines managerial viewpoints related to job satisfaction, burnout, and turnover in auditing companies. Based on in-depth analysis using managerial viewpoints obtained through human resources managers’ or audit managers’ participation in face-to-face or online interviewing sessions for gathering data. Stressors identified using the analysis include workload and deadline issues. Other identified stressors are complex requirements presented by clients. Besides these stressors identified to risking or fostering burnout among auditors include satisfaction survey analysis conducted by firms to evaluate employee satisfaction. Other identified viewpoints or organizational characteristics attended to or considered in organizational decision-making include exit questionnaires. Compensation or monetary value represents an identified factor considered or prioritized in organizational decision-making. Organizational viewpoints or managerial decisions identified to mitigate burnout considered in organizational decision-making include development or improved training. Other organizational viewpoints or managerial decisions considered to improve or prevent burnout involve acknowledging or recognizing organizational members.
EXPLORNG THE STRATEGIC ROLE OF DIGITALIZATION IN SME PERFORMANCE (CASE OF GEORGIA)
Modern technology has become a key driver of business growth across sectors such as media, finance, medicine, and education. As digital tools and automation increasingly shape operations, enterprises are compelled to integrate digital capabilities to enhance sustainability and competitiveness. This study examines the role of digitalization in strengthening the sustainability and competitive advantage of Georgian SMEs, drawing on the Resource-Based View (RBV) and Dynamic Capabilities (DC) frameworks. Over one hundred participants contributed to this quantitative research, with data collected via surveys and analyzed using correlation and regression methods. Results indicate that while 68% of respondents view digitalization as important for sustainability, no direct relationship was found between perceived importance and actual digital adoption or performance. The findings underscore that technology alone does not ensure advantage; rather, strategic integration and adaptive utilization of digital tools determine SMEs’ sustainable competitiveness.
REGULATION OF DIGITAL BANKING SERVICES: OBJECTIVES, PRINCIPLES AND FRAMEWORKS
In recent years, the rapid growth of technological advances has reshaped all sectors of the economy and changed the behaviour of both institutions and customers. By implementing the latest innovations, banks are digitalizing their services and automating most of the internal banking management processes. Digital banking makes services more accessible to customers, increases their transparency and efficiency, and reduces costs for both banks and customers. Today, everyone can conduct banking transactions from home and at any time. But in addition to their benefits, digital banking services also pose serious challenges in terms of privacy, security and customer protection. This article highlights the importance of regulating digital banking services and discusses the objectives and principles of regulation. In addition, it provides a comparative overview of the current state of digital banking regulatory models in selected regions, outlining the main objectives of regulatory authorities.
FAIRNESS AT A PRICE: UNDERSTANDING THE PSYCHOLOGICAL MECHANISMS BEHIND PRICE DISCRIMINATION
This research examines how different price discrimination strategies influence consumers’ sense of fairness and their willingness to repurchase — one of the most decisive indicators of brand loyalty. In markets where competition and transparency are intensifying, pricing has become more than a financial decision; it is a statement of a firm’s ethics and respect for its customers. The study distinguishes between four major forms of price discrimination — time-based, location-based, quantity-based, and customer characteristics-based — and reveals that not all discrimination is perceived equally. Consumers accept time-based and customer-oriented differences when they perceive a clear logic or reward behind them, such as loyalty benefits or off-peak discounts. In contrast, arbitrary or opaque practices, especially those tied to location or purchasing volume, provoke perceptions of injustice and distrust. The findings demonstrate that fairness is not a secondary sentiment but the central bridge between pricing strategy and consumer behavior. When customers feel treated fairly, they do not merely repurchase — they internalize the brand’s values and advocate for it. The study underscores a crucial managerial insight: in the long term, fairness-driven pricing is not only ethically superior but strategically indispensable for sustaining competitiveness and trust in modern markets.
THE ECONOMIC ROLE OF MARKETING STRATEGY IN LIGHT INDUSTRY INNOVATION
This study explores the economic role of marketing strategy in fostering innovation within the light industry sector. As global markets become increasingly competitive, innovative approaches to production and marketing are essential for maintaining sustainability and growth. The light industry of Azerbaijan, encompassing textiles, clothing, and carpet production, has significant potential for innovation-driven expansion. Effective marketing strategies contribute to this process by aligning innovative products with market demands, improving brand competitiveness, and enhancing export potential. The study emphasizes that innovation marketing supports not only technological advancement but also consumer awareness and preference for locally produced goods. Moreover, the integration of innovative products through modern marketing tools—such as digital promotion, market segmentation, and branding—stimulates investment and job creation in the sector. Consequently, marketing strategy acts as a bridge between innovation and market success, ensuring that new ideas translate into economic value. The paper concludes that strengthening marketing capabilities and innovation-oriented management practices is a key factor for the sustainable development of Azerbaijan’s light industry in the global market.
LINK BETWEEN EXPORT, FEMALE EMPLOYMENT AND PRODUCTIVITY: EMPIRICAL EVIDENCE FROM BHUTAN
Influence of export orientation on overall employment level is a fairly well-established fact but its impact on female employment and gender wise differences in productivity is not yet very well established. Using a Cross-sectional data of 164 Bhutanese manufacturing units, this study finds that female employment intensity in export-oriented Bhutanese manufacturing industry is not only low as compared to domestic market-oriented firms but it also declines as the share exports rises. Case wise, standard Cobb-Douglas production function establishes that productivity of female labour is only marginally higher in export-oriented units. Female labour in Bhutan is trapped in a catch 22 situation- lower employment intensity combined with lower productivity in export-oriented units as well as in the domestic market-oriented firms.
EVOLVING HEALTH, EDUCATIONAL AND SOCIAL NEEDS OF CHILDREN WITH TYPE 1 DIABETES IN GEORGIA: A COMPARATIVE STUDY 2023–2025
Type 1 Diabetes (T1D) in children poses complicated medical, psychological, and educational challenges, especially in countries where development is limited. In Georgia, data do not cover the evolving needs of children with diabetes and their families. This research compares 2023 and 2025 data in identifying successes and challenges in diabetes care in children. A quantitative cross-sectional survey was performed with 177 parents and caregivers of children with T1D using a structured online and telephone interview questionnaire. The new survey was a modified version of the 2023 survey with additional questions about access to diabetes technology, education, and psychosocial support. Descriptive and comparative analyses were performed using SPSS version 29.0 and results were interpreted on the population basis. Access to continuous glucose monitoring (CGM) increased from 38% to 61%, and parental participation in diabetes education programs increased from 42% to 68% between 2023 and 2025. Awareness of psychosocial support services increased by 29%, and reported barriers to insulin affordability decreased by 18%. Although this trend changed dramatically, 32% of families - especially in rural areas - still had trouble accessing consistent endocrinology care, and 40% did not have appropriate school-based diabetes management support. The present study addresses a lack of understanding on the challenge in diabetes care post transition in Eastern European health systems with the continued technological development and its correlation with socioeconomic and regional differences. It offers quantitative information of improved access, awareness and highlights systemic gaps of educational and psychosocial care. These results underscore the requirement for integrated, multidisciplinary diabetes care models that integrate medical, family, and school support. Such findings may inform ongoing policy and healthcare efforts to shape equitable treatment to better pediatric diabetes in Georgia and comparable developing countries.
THE IMPACT OF BANKING SECTOR LIQUIDITY AND STABILITY ON ECONOMIC GROWTH IN THE WESTERN BALKANS: EVIDENCE FROM 2013–2023
This paper examines the impact of banking sector liquidity and stability on driving economic growth in the Western Balkans (comprising Kosovo, Albania, Montenegro, North Macedonia, Bosnia and Herzegovina, Croatia, and Serbia) from 2013 to 2023. Using panel data analysis, the study includes linear regression, Fixed Effects (FE), Random Effects (RE), Hausman-Taylor (HTH), and Generalised Method of Moments (GMM) to examine the relationship between key banking indicators and economic growth. The dependent variable is economic growth, while independent variables include private sector credit, bank deposits, non-performing loans, government expenditure and inflation. The empirical results suggest that the banking sector plays a crucial role in driving economic growth Western Balkans countries. Specifically, bank deposits have a positive and statistically significant effect, while private sector credit also shows a positive effect but is not statistically significant. In contrast, non-performing loans and inflation have a negative impact on economic growth. These findings underscore the importance of strengthening banking sector liquidity, stability and enhancing credit access to promote sustainable economic growth, providing valuable insights for policymakers and financial regulators.
INTERNATIONAL TECHNOLOGICAL COMPETITIVENESS OF POLAND AFTER TWO DECADES OF EU MEMBERSHIP
The aim of the article is to assess the changes in Poland’s technological development and international competitive position in the field of technology in the context of integration with the European Union. The analyzed period — 1995–2023 — was chosen in order to answer the following research questions: (1) what changes have occurred in the area of the country’s technological competitiveness? and (2) what government policies support the development of innovation? The study applies a mixed-method approach, combining quantitative analysis of technological indicators with a qualitative assessment of political strategies and innovation support programs. The results indicate an improvement in Poland’s technological capabilities, particularly in the IT sector and high-tech industries, supported by EU funds and international cooperation. At the same time, challenges such as insufficient commercialization of innovations and a focus on medium-tech sectors limit the full use of Poland’s potential. Therefore, it remains necessary to strengthen the national innovation ecosystem so that Poland can achieve a lasting competitive advantage in the global knowledge-based economy.
PARADIGMS OF PUBLIC ADMINISTRATION: CONFIGURATIONS OF THE FIELD IN OUR TIME
Public Administration has evolved from a relatively narrow, state-centric administrative craft into a multi-paradigmatic field drawing on economics, sociology, psychology, and governance studies. Building on Nicholas Henry’s classic notion of paradigms in public administration, this article reviews how contemporary public administration science is structured around several partially competing, partially complementary paradigms, including Traditional Public Administration, New Public Management, New Public Governance, the New Public Service, public value, and digital era-oriented approaches, and Behavioral Public Administration. Using a narrative literature review, it examines their core assumptions regarding the role of the state, the image of the citizen, dominant values, and preferred instruments. The discussion shows that, rather than a linear replacement of one paradigm by another, current public administration is characterized by hybridization and contextual variation across countries and levels of government. The conclusion makes the case that this multi-paradigmatic situation is likely to continue and that future studies should concentrate on how many paradigms are selectively merged in reality, particularly in non-Western contexts and in times of polycrisis and digital transition.
ORGANIZATIONAL CULTURE AS THE FOUNDATION OF TRANSPARENCY AND ACCOUNTABILITY IN THE BUSINESS ENVIRONMENT
Contemporary geopolitical trends, such as globalization, changes in international relations, political instability, and economic sanctions, have a profound impact on national and international socioeconomic development. In this context, organizational cultures within enterprises and institutions become key factors in their resilience and adaptability. Transparency and accountability in business processes not only enable effective management of risks arising from geopolitical changes, but also strengthen trust among actors in the global marketplace. This paper analyzes how different models of organizational culture, drawing on the Competing Values Framework, can help organizations better cope with geopolitical challenges and contribute to sustainable socioeconomic development. Special focus is placed on the role of leadership, innovation, and communication in establishing a culture of resilience that supports long-term strategic goals at the national and international levels. An overview of recommendations is also presented for developing an organizational culture aligned with dynamic geopolitical circumstances, thereby contributing to the stability and prosperity of society.
ELECTRONIC COMMERCE AND DIGITAL COMMUNICATION AS A PILLAR IN THE TRANSFORMATION PROCESS OF BUSINESSES IN ALBANIA
Electronic commerce nowadays is offering and developing more and more opportunities, fundamentally changing the way business is developed. The job market in E-commerce is expanding rapidly, driving equally large changes in the global economy. One of the areas most affected in business by internet and mobile platform technologies is marketing and marketing communications. The paper presented by the authors aims to highlight the importance of E-commerce in the conditions of a digital market as an opportunity to change a significant part of industries in terms of their structure, processes and strategies and as an opportunity to expand in the international market. The process of reviewing scientific literature at the national and international levels, as well as the analysis of the cases of the development of electronic commerce offer the opportunity to address the way in which the business fields in Albania are approaching this transformation process and at the same time every difficulty encountered during the development of electronic commerce (Qurtubi, 2022). The findings presented in the paper evidence the fact that investment in Internet technologies and mobile platforms in the development of businesses, adapting to them and improving the customer experience, remain the main elements for a stable and growing presence of Albanian businesses in the digital market.
CONSUMER PREFERENCES AND PURCHASING DETERMINANTS FOR OLIVE OIL IN ALBANIA: EVIDENCE FROM TIRANA
This study aims to analyze market developments and consumer preferences for olive oil in Tirana with a particular focus on how sociodemographic factors influence consumer behavior in the choice of olive oil. The growth of the Albanian economy and increased health concerns after Covid-19, have led to a rise in demand for higher quality products such as olive oil. Therefore, this study is relevant as it analyzes the importance of product's origin and investigates whether consumer uses olive oil for aesthetic and health care purposes. The study is based on data collected from 150 respondents in Tirana through a structured questionnaire distributed via Google Forms and analyzed using descriptive statistical method and chi-square tests in Microsoft Excel. The findings indicate that while educational status and gender do not significantly influence the importance consumers attribute to olive oil origin, age and, occupation have a significant effect. The findings reveal that 70% of consumers use olive oil for both aesthetic and health purposes, primarily applying it to the skin for cosmetic care and using it to address digestive issues for health treatment. The paper provides valuable insights that may be used to develop more effective marketing strategies and also policy recommendations.
THE IMPACT OF TIKTOK CONTENT STRATEGIES ON USER ENGAGEMENT: FINDINGS FROM SLOVENIA
Social media has significantly transformed the ways in which consumers make decisions, enabling companies to influence users at every stage of the purchasing process. Among the fastest-growing platforms is TikTok, which is based on the creation and sharing of short videos, often enhanced with music, filters, and special effects. This study aims to examine the relationship between content types and user engagement on TikTok. A quantitative research metodology was employed, using a survey questionnaire with closed-ended questions that focused on users' perceptions and preferences regarding different content types. The research took place in Slovenia, the sample was random and responders were volontary. Social media channels (Instgram and Facebook) were used to deseminate link to survey. Folowing the social media paradigm of immediate response, the the time available to complete the survey was short (three days). The survey reached 201 respondents from which 70 surveys were finally fully completed. The results indicate that users most frequently engage with entertaining, creative, and educational content, whereas promotional posts that merely present a product or service achieve lower levels of responsiveness. The findings further suggest that influencers’ presence alone does not guarantee higher engagement. These insights contribute to a better understanding of user interaction dynamics on TikTok and provide a basis for developing effective content strategies. The study has certain limitations, as the sample was convenient and relatively small, and the data relied on self-reports, which may affect validity. Nevertheless, it offers an empirical contribution to the study of user engagement on social media and opens opportunities for further research, particularly in comparative and longitudinal contexts.
BUILDING RESILIENT ECONOMIES THROUGH INTEGRATION INTO THE BRICS+ FRAMEWORK IN A DYNAMIC GLOBAL LANDSCAPE: A SCENARIO-BASED PROBABILISTIC ANALYSIS OF EECME INTEGRATION PATHWAYS
This paper investigates the strategic prospects for Eastern European countries to recalibrate their global alignments by engaging more deeply with the BRICS bloc. While historically integrated with the EU, many Eastern European economies face vulnerabilities stemming from overdependence on Western markets, limited diversification, and geopolitical volatility. Through a scenario-based analysis, this study evaluates four potential pathways with BRICS engagement: full integration, limited engagement, selective strategic partnerships, and geopolitical realignment under crisis. Findings suggest that a selective partnership approach offers the highest probability of success, allowing Eastern Europe to diversify economically while maintaining stability within existing Western alliances. Ultimately, the paper argues that a balanced engagement with BRICS could position the region as a strategic intermediary between East and West, fostering growth, resilience, and contributing to an emerging multipolar global order.
INTELLECTUAL CAPITAL: CHALLENGES AND SOLUTIONS
In today’s rapidly evolving business environment, intellectual capital has become one of the most critical determinants of organizational competitiveness and sustainable growth. Intellectual capital refers to the intangible assets of an organization, including human capital (skills, knowledge, and competencies), organizational capital (processes, structures, and systems), and relational capital (relationships with customers, partners, and other stakeholders). This article explores the major challenges organizations face in managing intellectual capital, such as the protection of intellectual property, the accumulation and effective utilization of knowledge, fostering innovation, and the measurement and valuation of intangible assets. The study also highlights various practical solutions for overcoming these challenges. These include developing intellectual leadership, implementing effective knowledge management processes, promoting knowledge sharing and collaboration among employees, investing strategically in human and organizational resources, and establishing legal frameworks to protect intellectual property. Furthermore, the article emphasizes the importance of integrating intellectual capital management into the overall strategic objectives of the organization to enhance its value creation potential, improve operational efficiency, and achieve long-term competitive advantage. By understanding, nurturing, and leveraging intellectual capital, organizations can not only adapt to dynamic market conditions but also drive innovation, increase profitability, and maintain a strong position in the global marketplace.
THE EU AND UKRAINE ECONOMIES RESILIENCE TO CLIMATE CHALLENGES
Climate challenges such as rising temperatures, droughts, floods, and extreme weather events pose systemic threats to agriculture, infrastructure, energy security, and public health. An examination of the vulnerability and readiness level of Ukraine and EU member states to climate change, with both common challenges and regional differences has been presented in the article. The study aims to identify key climate risks, evaluate national adaptive capacities, and propose mechanisms for strengthening economic resilience of EU member states and Ukraine. Findings show that Northern and Western Europe demonstrate the highest resilience, supported by strong institutions, green policies, and investments in infrastructure. In contrast, Southern and Eastern Europe display medium resilience, with Ukraine also falling into this group. However, Ukraine’s readiness remains critically low, limiting its ability to respond effectively to climate risks, particularly in the context of ongoing military aggression that amplifies climate-related challenges. To address these threats, the study proposes the “Economic Resilience Shield,” which focuses on reducing carbon intensity, expanding renewable energy, improving efficiency, and strengthening adaptation policies.
DEVELOPING A CONTEXT SPECIFIC MULTIDIMENSIONAL SCALE TO MEASURE THE SUSTAINABILITY OF FAMILY OWNED INDIAN MSMES
The importance of the family business is globally visible, contributing approximately 70% to 90% of the global GDP. In India, family-owned businesses (FOBs), particularly Micro, Small, and Medium Enterprises (MSMEs), are dominant, contributing approximately 30% to the Indian economy and employing around 111 million people. Given this significant role, understanding the factors crucial for the sustainability of family-owned Indian MSMEs is essential. This study addresses a critical research gap: the absence of a validated, context specific measuring scale to assess sustainability within this area. The objective is to develop and validate a multidimensional scale specifically tailored for Indian family-owned MSMEs, strictly adhering to the systematic approach suggested by Churchill (1979). Four primary variables were identified: Family Goals, Succession Planning, Family Culture, and Entrepreneurial Orientation, as variables of sustainability. Initial phases, including item generation and a pilot study, demonstrated internal consistency through Cronbach’s Alpha and Confirmatory Factor Analysis (CFA), thus confirming the items’ theoretical coherence and reliability. This process provides a reliable, scientifically developed multi-item scale ready for large-scale data collection, which is useful for academicians and policy makers.
MEASURING ECONOMIC EFFICIENCY OF DIGITAL TRANSFORMATION ACROSS EU COUNTRIES USING DEA TECHNIQUES
Digitalization has become a critical focus for both companies and public organizations, with numerous reports highlighting its growing importance. This study evaluates the comparative efficiency of digital transformation across European Union countries using Data Envelopment Analysis (DEA). Data are sourced from the Digital Transformation Account 2018 published by the European Commission. DEA is employed to measure the relative efficiency of countries in leveraging digital transformation enablers to achieve desired outcomes. The analysis uses the “enablers and outputs” framework from the Digital Transformation Scoreboard, considering Digital Infrastructure, Investment and Access to Finance, Digital Skills Demand and Supply, E-Leadership, and Entrepreneurial Culture as inputs, and ICT startups and overall Digital Transformation performance as outputs. The study provides a ranking of EU countries based on their digital transformation efficiency. Findings reveal that Denmark, Italy, and the United Kingdom exhibit relatively high levels of digital transformation efficiency, whereas countries such as the Netherlands and Germany perform below the efficiency frontier. These outcomes offer practical insights for policymakers and organizations seeking to strengthen digital adoption capabilities and enhance competitive advantage across Europe.
ILLUMINATION EFFECTS ON FACE RECOGNITION ALGORITHMS: A COMPARATIVE ANALYSIS AND PRACTICAL INSIGHTS
Face recognition systems are being deployed everywhere these days, from airport security to smartphone unlocking. But there's a problem that keeps coming up: these systems don't work well when the light changes. This research examines the impact of varying lighting conditions on the precision of face recognition systems. We looked at how earlier methods like Eigenfaces and Fisherfaces relate to current deep learning methods, like FaceNet. What we found is quite clear: when the lighting isn't perfect, standard algorithms have a hard time, while deep learning models do considerably better. We also looked into whether basic picture preprocessing methods, like CLAHE, could help make things more accurate in low light (Awodeyi, Olutayo, & Adetunmbi, 2025). The results were really good. When we used CLAHE preprocessing with FaceNet, accuracy in low light went up from 82.4% to 95.2%. This is important since mistakes in recognition cost money. When a machine doesn't recognize someone, it either puts security at risk or needs help from a person, both of which cost money (Wei & Rodrigo, 2021). Our research indicates that businesses can make facial recognition systems that perform in the real world and don't cost a lot of money by using the proper mix of contemporary algorithms and sensible preprocessing.
EXPLORING THE INTEGRATION OF LATERAL THINKING IN HUNGARIAN ECONOMIC HIGHER EDUCATION
n the rapidly evolving context of economic higher education, lateral thinking—a non-linear, adaptable approach to problem-solving—has turned into an essential instrument to foster innovation and adaptability among students working in VUCA environments. Informed by empirical data of Hungarian economic universities, complemented with theoretical background on lateral marketing and intelligent inverse innovation, this study responds to two research questions: (1) How integrated is the lateral strategy in Hungarian economic higher education? (2) How are the perceptions of students and teachers regarding lateral thinking and creative leadership influencing its implementation? With qualitative synthesis of the authors’ research and recent literature, the findings confirm strong perceptual support for the added value of lateral. The study proposes actionable suggestions on the integration of lateral styles through AVICA (Agile, Value-oriented, Inspiring, Collaborative, Appreciative) leadership models and information technology, promoting global arguments on education competitiveness in a knowledge economy.
A STATISTICAL STUDY FOR CYBERSECURITY RISK MANAGEMENT IN FINANCIAL INSTITUTIONS IN ALBANIA
With the rapid development of technology and the digitalization of financial services, financial institutions are becoming increasingly vulnerable to cyber threats, which can seriously damage both the credibility and accessibility of customers and financial institutions. Cybersecurity has become a key issue in operational risk management for banks and financial institutions, requiring a robust regulatory and policy framework to protect sensitive data and financial assets. The purpose of this article is to examine cybersecurity risk management in financial institutions, with an emphasis on identifying common threats that are directly related to human and organizational contributions, such as ransomware, phishing, and social engineering. In this context, this study focuses on the role of human factors and the impact of employee awareness in preventing cyber incidents, highlighting the importance of continuous training and a strong organizational security culture. This study aims to assess the effectiveness of cybersecurity risk management practices in Albanian banks and financial institutions through literature review and survey methodology. This study contributes to a better understanding of the role of cybersecurity in financial risk management and suggests important steps to strengthen security measures and increase employee awareness.
THE IMPACT OF ARTIFICIAL INTELLIGENCE ON LEADERSHIP: PERSPECTIVES FROM LEADERSHIP EXPERT
This study explores how the integration of artificial intelligence (AI) transforms contemporary leadership practices, focusing on leaders’ perceptions, experiences, and ethical reflections. Drawing on a constructivist qualitative design, seven semi-structured interviews were conducted with leadership experts from diverse sectors including technology, education, and services. Thematic analysis was applied to identify recurring patterns and conceptual insights regarding the evolving relationship between human judgment and machine intelligence. The results reveal that AI is primarily perceived as a decision-support tool that enhances analytical capacity and efficiency, yet it simultaneously challenges traditional leadership roles, ethics, and trust. Leaders view AI as a strategic partner that complements rather than replaces human intuition, emphasizing the need for transparency, accountability, and empathy in algorithmic decision-making. Findings highlight a shift in leadership identity from authority-based to interpretive and facilitative forms, demanding new competencies such as digital literacy, ethical awareness, and adaptive learning. The study contributes to leadership theory by framing AI as a catalyst for a new paradigm of human–machine collaboration, in which ethical reflection and technological competence are equally essential. Practically, it underscores the importance of cultivating organizational cultures that balance innovation with human values. The research concludes that AI does not diminish leadership—it redefines it as a dynamic, morally grounded, and human-cantered practice in an era of intelligent technology.
A COMPARATIVE STUDY ON EPISODES OF FINANCIAL TURMOIL: INSIGHTS FROM THE DOTCOM BUBBLE, 2008 CRISIS, AND CRYPTOCURRENCY ERA
This paper examines the recurring dynamics of financial crises through a comparative case study of the Dotcom bubble, the 2008 global financial crisis, and the ongoing cryptocurrency era. The objective is to investigate whether cryptocurrencies represent a genuine financial revolution or a repetition of past speculative manias. Using a qualitative methodology, the study applies a behavioral finance framework to analyse biases such as herding, overconfidence, and FOMO, and combines this with the evaluation of market data, including IPO trends, interest rates, and volatility indices. The results reveal strong equivalents across all three cycles. In each case, investor sentiment amplified volatility, and speculative assets obscured true risk. Weak regulation left markets vulnerable to collapse. Today’s ICOs are a reflection of IPOs in the Dotcom bubble, meanwhile the regulatory faults in 2008 find similarities in decentralized finance (DeFi). Moreover, the evidence challenges the Efficient Market Hypothesis, which markets illustrate collective perceptions instead of objective fundamentals. The findings suggest that financial markets repeat inefficiencies in new forms. Cryptocurrencies risk becoming another phase in the history of financial instability without coordinated regulation, investor education, and macroprudential monitoring.