Eurasian Business and Economics Perspectives

Table of Contents

1. Frontmatter

2. Eurasian Business Perspectives: Corporate Social Responsibility

   1. Frontmatter

   2. The Influence of ESG Factors on the Companies Performance in Developed and Emerging Markets

      Egorova Aleksandra

      Abstract

      Sustainable development and ecological, social, and governance (ESG) factors of company performance play an outstanding role in modern business. The purpose of this study is to compare the impact of ESG factors on the market performance of companies in developed and emerging markets. The author analyzed the panel data for 315 non-financial companies from seven industries from 2010 to 2020, operating in developed and emerging countries. The dependent variables are market indicators of companies, such as Tobin’s Q, P/S, and EV/EBITDA. The explanatory variables are the components of the ESG rating. As a research method, OLS regression was used, within which pool regression, and regression with a random and fixed effect were tested. The results of the study showed there is a positive impact of the ESG rating and its components on the market performance of companies in developed markets, while in emerging markets such a relationship was not confirmed. This indicates that ESG factors do play a role in the market valuation of companies by investors in developed markets, where over the past 10 years companies have been able to realign their business to a sustainable agenda. A similar trend can likely be found soon in emerging markets. The results of this study will be of practical use to companies planning a transition to the ESG trend as confirmation that a high ESG rating can increase their market performance.

   3. Linking Corporate Social Responsibility, Innovation and Company Performance: A Theoretical Investigation

      Olegs Nikadimovs

      Abstract

      This study seeks to conduct a semi-systematic literature review on the causal relationships between CSR, innovation, and company performance, and to provide a summary of the findings. The aim of the literature review on CSR, innovation, and company performance is to select and analyse existing literature in a partially structured manner. The study has identified 527 sources through Harzing’s Publish or Perish software and after additional screening has selected 11 empirical papers for content analysis. Most of the studies found that there are positive direct and indirect causal relationships between CSR, innovation, and company performance. The results of this study provide further evidence of a positive causal relationship between CSR and innovation, with companies that have more established CSR initiatives exhibiting greater innovation capabilities and introducing more new products or services. However, the results also reveal a general lack of consensus on some key aspects of the causal relationships, and inconsistencies in the field of CSR, innovation, and company performance. The present study offers a theoretical contribution to the existing scope of research on the relationships between CSR, innovation, and the economic performance of companies. As such, it provides researchers and practitioners with an additional source of summarized knowledge to better understand the relationships between the variables under study and to create and implement successful strategies that foster corporate sustainability and economic advantages.

3. Eurasian Business Perspectives: Management

   1. Frontmatter

   2. Employees’ Opportunism and Firm Performance: Evidence from Russian Corporations

      Dmitri A. Pletnev, Elena V. Kozlova

      Abstract

      The paper aims to analyze the relationship between behavioral opportunism and the firm performance of Russian corporations. The research is based on the survey results of 463 Russian employees from 57 biggest companies from all leading industries. The survey results allowed us to calculate the opportunism level for every respondent and every company. The research shows the negative correlation between opportunism and firm performance in Banking, Communication, and Metallurgy. The correlation is positive for Energy, Transport. In other industries (Retail, Manufacturing, Oil and gas industry, Transport, Chemistry) there’s no significant relationship between opportunism and firms performance. The study results partially confirm the initial hypothesis of the study. The results will be useful for the human capital-related programs based on decreasing opportunism levels in companies. The research results interpretation is limited by country and by the method. Research results can be used for further development of related studies (for wider samples, more performance indicators, comparative studies).

   3. Optimising Decision-Making: Devising a Framework Applicable to Project Management Practitioners

      Ismail Can Kurtuk, Martyn Polkinghorne

      Abstract

      Projects are defined as being temporary concepts which are planned, designed, and delivered to achieve a single aim which is often transformative in nature. Project management is therefore the process of monitoring and controlling such projects to ensure optimal delivery of project outcomes can be achieved. Decision-making is a soft skill which is recognised as being an essential tool for successful project managers to be able to use. Decisions made need to take into account multiple factors including risks and impacts. Because each project is unique, each decision will be unique too. This research study has investigated the concept of decision-making when applied to project management and has considered the drivers, methods and processes which are commonly used. Within this, the concept of Deep Smarts is explored in which a project manager brings together a range of their own personal, and often disparate, knowledge and experiences to make efficient decisions. From this research, a framework is proposed which separates project management decision-making into four elements, these being context, methods, processes and impact. This framework can be used by project management practitioners to aid their decision-making, and to help them to ensure that the decisions which they make, which will have to take into account the risk appetite of the organisation, are not overly influence by stakeholder pressure, and consider the best interests of the project being delivered. As such, this framework can be applied to any project, in any country, in which similar formalised project management processes are utilised.

   4. The Dual Role of the Manager as an Employee and as a Representative of the Organization in Shaping the Psychological Contract

      Anna Rogozińska-Pawełczyk

      Abstract

      The purpose of this manuscript is to expand the knowledge of the expectations of managers in the context of the employer-employee relationship. One of the assumptions is to recognize the alignment of opinions of managers playing the role of representative of the organization and employees in terms of understanding mutual responsibilities and expectations as a source of mutual realization of the psychological contract. A Paper and Pen Personal Interview survey was conducted with 178 managers surveyed from the perspective of the organization representative and 800 managers surveyed from the perspective of the employee. The research determined what expectations and obligations respondents set for themselves—which are most important to respondents, and which are less important. And also how the level of disagreement develops in terms of understanding each other’s obligations and expectations. As a result, perceptions of employees’ obligations are slightly lower than perceptions of employers’ expectations, while employers’ obligations are slightly higher than employees would expect. The survey provides guidance for managers on how they should manage their psychological contracts, as well as those of their employees. The observations noted take into account the need for flexibility of action with reference to the situational approach.

   5. The Roles of Transformational Leadership, Perceived Organizational Support, Digital Capability Towards Employees’ Adaptability and Readiness for Digital Transformation

      Neneng Nurhayati, Soebowo Musa, Elok Savitri Pusparini

      Abstract

      This study aims to understand the factors that could cause a successful digital transformation from perspectives of leadership, organizational behavior, innovation, and readiness for digital transformation by examining transformational leadership, perceived organizational support and digital capability toward employees’ adaptability and readiness for digital transformation. A validated questionnaire was used to collect data from 246 respondents who work in different position levels within the agriculture business in Indonesia. This study shows that transformational leadership and perceived organizational support have the highest association. Transformational leadership through digital capability and employees’ adaptability supports organizations’ readiness for digital transformation. Transformational leadership is not directly supporting the readiness for DT. Further, this study clarifies that in creating readiness for digital transformation, perceived organizational support plays a significant role in enhancing digital capability in developing employees’ adaptability to prepare them for digital transformation.

   6. The Role of Organizational Capabilities Towards Firm Performance in Disruptive Environment

      Doddy Triadi Pinilih Enggarsyah, Soebowo Musa

      Abstract

      The objective of this study is to identify multiple paths from organizational capabilities towards firm performance, as well as to clarify conflicting results concerning whether inertia is a preferable crisis management approach. With a response rate of 63.2%, a validated questionnaire was utilized to collect data from 316 respondents who worked in a variety of businesses that catered to different industry categories in Indonesia. This quantitative study uses a cross-sectional methodology, online questionnaires for data collecting, and a structural equation model for data analysis. It also highlights the roles and connections among organizational capabilities that may affect firm’s performance in a turbulent condition. The finding confirms that the firm’s inertia will establish a strong basic orientation, limiting the firm’s ability to develop essential creative and adaptive answers. Being overly creative amid turbulent times may have the opposite effect as it could impair the firm performance. Organizational resilience leads to the best path to firm performance, compared to creativity and agility.

   7. Service Sector High-Growth Firms in the Covid-19 Pandemic: Russian Case

      Dmitri Pletnev, Kseniia Naumova

      Abstract

      The consequences of the COVID-19 pandemic crisis have a direct and delayed impact. High-growth firms are well-known growth drivers for national economy. The aim of the study is to track the performance differences of normal and high-growth firms in most affected by COVID-19 pandemic industries. The research question is based on assumption of higher service high-growth firms’ performance comparing with normal service firms in most affecting COVID-19 pandemic. Firms performance is measured with three aspects and three indicators such as ability to grow (revenue growth rate), profitability (return on sales), and solvency (equity-to-assets rate). The paper is based on 13,705 Russian firm official statistics (including 392 gazelles). The period of observation is from 2016 to 2019 for gazelles’ identification. Firm performance is evaluated with 2020 and 2021 data. The hypotheses are tested using a one-way ANOVA. High-growth firms demonstrate better ability to grow, and lower solvency than normal firms in 2020 and 2021. The gazelles’ profitability is not significantly differ the normal firm rates (higher in 2020 and lower in 2021). Statistically significant differences in the behavior of HGF and normal firms were confirmed for all samples, as well as for retail and catering industries. Retail and domestic services, conference and exhibition industry have better coped with pandemic challenges. The prospects for the future researches are comparative cross-industry analyses in 2020 and 2021.

4. Eurasian Business Perspectives: Marketing

   1. Frontmatter

   2. Choosing Environmentally Friendly Transportation in the Post-Covid-19 Era: The Role of Personal Moral Norms

      Antonio Capaldo, Muhammad Kashif Javed

      Abstract

      The COVID-19 pandemic brought about significant changes concerning mobility issues. Since public transport is extremely susceptible to the spreading of infectious diseases, people may avoid using it and opt for their own cars, with negative consequences on the environment. However, the lessons learned during the COVID-19 pandemic about the advantages of living in a cleaner world, and the resulting environmental awareness of consumers, may affect consumers’ choice, leading them to prefer environmentally friendly transportation means. The aim of this paper is to investigate whether and how, in the post-COVID-19 era, customers develop the intention to buy electric cars, rather than heat engine ones. Structural equation modeling analysis of data collected from 206 respondents reveals that the environmental awareness due to the COVID-19 pandemic leads individuals to develop personal moral norms concerning the ethical superiority of choosing environmentally friendly transportation solutions, which in turn has a positive effect on consumers’ intention to buy electric cars. We advise car companies and policy makers to leverage the COVID-19 pandemic experience to further enhance the environmental awareness of consumers. This will reinforce consumers’ tendency to frame car purchase as a moral issue, and hence to develop a favorable inclination toward buying electric cars.

   3. The Relationships of Design Thinking, Customer Experience, Customer Satisfaction, Customer Loyalty and Word of Mouth

      Asep Ganjar Rahman, Soebowo Musa

      Abstract

      Both consumers and businesses have been negatively impacted by the COVID-19 pandemic. Consumer behavior is negatively impacted by this disruptive environment, particularly for online users of digital goods and services from many industries. Due to the shift in consumer behavior, businesses have had to develop or enhance their existing products to become online digital products. In order to foster customer experience, customer satisfaction, and customer loyalty—behaviors that are anticipated to be an enabler for an effective word-of-mouth marketing communication strategy—this study aims to examine the role of design thinking, a system thinking that is believed to provide an effective design process of a product or service that suits customer needs. 256 respondents who have utilized digital products via the internet. The finding confirms that the optimal path towards positive word-of-mouth can be achieved through design thinking and customer experience. Therefore, by paying attention to the factors that shape word-of-mouth promotion, the company can control it so that it is possible to manage it for the long-term interest.

   4. The Relationships of Marketing Mix Strategy and Product Innovation on Firm Reputation, Brand Equity & Competitive Advantage

      Jeremia Kevin Mardyaputra Muslie, Soebowo Musa

      Abstract

      The objectives of this study are to identify multiple paths to gaining a business’s competitive advantage from the customers’ perspective of marketing mix strategy implementation, product innovation, and firm reputation, as well as to examine the mediator the role of overall the brand equity in enhancing a firm’s competitive advantage. A validated questionnaire was used to collect data from 250 consumers of dairy product in Indonesia. This study shows marketing mix and product innovation have positive relationship with firm reputation. Marketing mix promotes overall brand equity through firm reputation. Marketing mix and product innovation perception as individual factor is not sufficient enough to come up into the consumers’ perception and highlighting competitive advantage. This study also clarifies that firms need to establish firm reputation and overall brand equity that can produce high barrier for the new entrants to create sustainable competitive advantage.

5. Eurasian Business Perspectives: SMEs

   1. Frontmatter

   2. What SMEs Should Be Supported to Increase the Number of Exporting SMEs?

      Zhelyu Vladimirov

      Abstract

      The goal of this study is to identify the potential SMEs exporters, to which the export promotion programs should address with priority in order to increase their number. For that, the paper analyses differences on some basic economic and export-related characteristics of various groups of SMEs such as: exporters and non-exporters; low-tech and high-tech exporters; innovative and non-innovative SMEs; younger and older SME; and exporters at different stage of their export involvement. The data are obtained by a standardized questionnaire among 210 Bulgarian SMEs from both high- and low-tech sectors, and are processed through the ANOVA and the Kruskal Wallis tests. The results show that exporters and non-exporters differ significantly, while the differences between high- and low-tech exporters are smaller. The innovative, medium-innovative and non-innovative SMEs don’t differ significantly on most basic economic and export related indicators. The younger SMEs are smaller in size, experience the highest competition, sell the newest products, face bigger financial challenges, and have a greater need of operational support. The international new ventures differ from other exporters by being smaller, younger, export intensive, and most product innovative SMEs from both low- and high-tech sectors. The conclusion is that in order to increase the number of exporting SMEs and to be in line with the strategy of innovation, the export promotion programs should target younger and innovative SMEs, regardless of the sector. The limitations of the study refer to the cross-sectional nature of data and non-probability purposive sampling.

   3. How Leaders Deal with Changes from the External Environment in Developing Country: Evidence from Indonesia

      Ipuk Widayanti, Amin Wibowo

      Abstract

      The purpose of this study is to investigate how dynamic managerial ability affects SMEs’ sales performance under environmental shocks with strategic adjustment as a mediating variable and dominant logic as a moderating variable. An empirical investigation of SMEs in Indonesia using questionnaires, which received around 246 responses. Structural equation modeling (SEM) was employed to test the proposed hypotheses. The results of this study’s empirical analysis support two of its three hypotheses, confirming that strategic adjustment positively and significantly influences SME sales performance under environmental shocks and indicating that dynamic managerial capabilities are valuable intangible resources for this. According to these results, strategic leaders of SMEs should develop and support their dynamic managerial skills to manage strategic adjustment in response to environmental shocks.

6. Eurasian Business Perspectives: Tourism

   1. Frontmatter

   2. Knowing the State of the Art of the Application of Technology in Tourism: A Bibliometric Analysis

      Soraya González-Mendes, Sara Alonso-Muñoz, Fernando García-Muiña, Rocío González-Sánchez

      Abstract

      With a view to ascertaining the state of the art of technology research in the tourism sector, a bibliometric analysis was carried out of papers published in the Web of Science (WoS) database. VOSviewer software was used to conduct this bibliometric analysis. It has been collected data from 654 articles published between 1993 and 2021 with the words “Tourism” and “Technology”. The analysis identified five research streams in the application of technology in tourism. Firstly, its use to foster the collaborative economy between customers and the accommodation sector. Secondly, the contribution of technology to develop a new tourist experience in the framework of smart tourism. The use of Industry 4.0 tools with tourism experiences to achieve loyalty and high perceived value for tourists. The third trend explores “sustainable tourism” and the future of the industry considering climate change. The fourth stream studies the importance of tourist attitude and behavior, considering user trust and acceptance of new technologies. The last stream is represented by a cluster related to the management of tourism communication with booking and review websites. Finally, this study sets out future lines of research. New needs have emerged in this sector such as Metaverse.

   3. The Role of Public Trust in Fostering Residents’ Support for Tourism Development: Evidence from a Portuguese Historic Town

      Ana Paula Rodrigues, Isabel Vieira, Didiana Fernandes, Nuno Sousa

      Abstract

      Efficient governance is necessary to achieve sustainability, and the association between the local public sector and local communities is a vital element to dynamize in order to obtain a democratic planning process. In this context, evidence recommends that public trust is vital in explaining residents’ support of tourism development initiatives. This study investigates the drivers of residents’ support for tourism development (STD), putting the emphasis on the relevance of residents’ trust in the government institutions that are involved in tourism planning and development. This research proposes a conceptual framework to explore the connections between community attachment, inhabitants’ assessment of the effectiveness of management by local governments, people’s trust in government agencies and citizens´ STD. A survey of 150 people living in a small, historically significant town in the Douro Valley – a UNESCO World Heritage Site– was used to empirically test the proposed model. The model was estimated through the structural equation modelling (SEM) method. The findings indicate that there is a correlation between community attachment and public trust. Likewise, community attachment significantly predicted residents´ STD. The results also indicate that the management of tourism by local authorities had a considerable impact on the trust of the people in government organizations, but did not have a significant and direct effect on the STD of the inhabitants. The implications of these findings for theory and practice, the limitations of the study, and suggestions for future research directions were discussed in light of the results.