Eurasian Business and Economics Perspectives

Table of Contents

1. Frontmatter

2. Eurasian Business Perspectives: Entrepreneurship

   1. Frontmatter

   2. What Are the Contributing Factors to Business Simulation Results in Entrepreneurial Education?

      Aivars Spilbergs, Airita Aksjonenko, Liga Peiseniece, Eduards Aksjonenko

      Abstract

      As digital environments advance, they present new opportunities for entrepreneurial education and business operations. Gamification techniques are increasingly utilized to help students and future professionals develop and test their skills in simulated business settings, offering practical and engaging preparation for real-world challenges. This research paper investigates the factors influencing participant success in “Bizness24h 2023,” one of Latvia’s largest annual business simulation competitions for young adults, held online and at the BA School of Business and Finance. The study analyzes data from 800 participants, focusing on how educational level, gender composition, regional background, and team leadership impact performance in critical areas such as creativity, idea presentation quality, and visual design. The results show that participants’ educational levels significantly influence creativity and the quality of idea explanations but not visual design. In contrast, the gender of the team leader and team structure affect the visual presentation but do not impact creativity or explanation quality. These findings suggest that when forming project teams, it is crucial to consider educational levels, regional representation, gender of the team leader and team structure, depending on the specific goals and expected outcomes. While the study focuses on participants aged 15 to 25, its findings provide insights applicable in both academic settings and business training programs, enhancing the effectiveness of entrepreneurial education across various managerial levels.

   3. Determinants of Gender Inequality in Entrepreneurship: Evidence from Europe

      Valentina Vučković

      Abstract

      The main goal of this paper is to analyse factors that contribute to gender inequality within entrepreneurship. Precisely, the paper explores the social, economic, political, and institutional factors that may influence gender inequality in entrepreneurship, proxied by the data on self-employment rates across the European Union. Precisely, the factors that were tested include the share of women with tertiary education, regulatory environment quality, gender civil liberties, political participation, unemployment rate, corruption and GDP per capita. In doing so, the random effects panel model was used in order to estimate the effects of selected variables on a gender gap in entrepreneurship in a sample of 27 EU countries in the 2002–2022 period, divided into two sub-samples. The results show divergent effects of selected variables on the gender gap in two clusters of new and old EU member states, precisely from the aspect of economic and institutional variables. The research also has policy implications, since in order to create an inclusive entrepreneurial landscape in the European Union, heterogeneity among individual member states needs to be encompassed.

3. Eurasian Business Perspectives: Management

   1. Frontmatter

   2. Preparedness of Czech Small and Medium-Sized Enterprises for ESG Reporting

      Jindra Peterková, Martina Pavlačková, Eva Svobodová, Viktorie Zezulová

      Abstract

      This paper is devoted to the analysis of the tendency of Czech small and medium-sized enterprises towards solving environmental, social, and governance issues. This theme is highly topical, as it will soon be mandatory for SMEs in the Czech Republic to implement ESG reporting obligations. The survey sample investigated in this article consists of 247 Czech SMEs that responded to an ESG issue-solving questionnaire developed in cooperation with the Association of Small and Medium-sized Enterprises. The tendency to address ESG issues is studied based on the number of employees using descriptive statistical methods. Furthermore, the whole survey sample is investigated to get a complex knowledge of ESG issue-solving in Czech SMEs. Our findings show that company size has a positive influence on the ESG scores, that the average company in the survey sample addresses ESG issues only superficially, and that awareness of ESG reporting obligations is very low. At the same time, most studied SMEs think of sustainability in terms of ESG, and within ESG they focus most on the social dimension.

   3. Supply Chain Collaboration and Performance in the Moroccan Context: Qualitative Study

      Fatima Gouiferda

      Abstract

      The environment’s intensive competition resulted from a rapid change of demand. Companies are depending on their partners in the supply chain to increase their competitiveness. As the joint created value leads to collaborative advantage, the quest for the individual added value is not tempting. The jointly developed advantage generates more lasting rewards for all parties involved in the collaboration activities. This study identifies some insights into laboratory-wholesaler collaboration activities. This paper lies in proving a deep understanding of how supply chain performance is captured. Throughout process innovations resulting from collaborative efforts in the pharmaceutical sector, higher benefits can be acquired. A qualitative approach was followed. Semi-structured interviews were conducted. Ten pharmaceutical practitioners were interviewed. Data was analyzed using Iramuteq software. The descriptive and content analysis revealed four main themes that provide insights into how pharmaceutical companies collaborate and how these coworking efforts result in process innovations in the supply chain. Findings indicated that while collaboration improves supply chain performance, process innovation resulting from collaborative practices can lead to superior benefits for the whole chain. This research revealed insights regarding supply chain performance drivers in the pharmaceutical supply chain, constrained by high regulations.

   4. Impact of Strategic Human Resource Management and Leadership on Employee Voice and Silence Behaviors: A Systematic Literature Review

      Hava Yasin, Laima Jeseviciute-Ufartiene, Renata Korsakiene

      Abstract

      The recent research aims to explore how the interplay of leadership and human resource practices influence employee voice and silence approaches in a corporate context. The majority of the research has predominantly focused on examining the role of leadership or HR practices separately in managing employee voice and silence. Hence, the major purpose of this study involves looking at research published over the previous decade (2013–2023) which has investigated the interplay of leaders’ roles and HR procedures in managing employee voice and silence. A systematic literature review technique was applied, and the studies were reviewed using the PRIMSA methodology. Data were acquired using a database called Scopus. The findings showed that  interplay of leaders and HR strategies positively impacted employee voice and lowered employee silence. Alternatively, it was revealed that abusive bosses and human resource procedures together had a detrimental impact on employee voice as well. Furthermore, analyzed research revealed that despite having the presence of excellent HR practices, if the leaders/managers are uncivilized, then merely the presence of HR procedures does not exclude the likelihood of silence. Hence, leaders appeared as the most powerful influencers for employee voice.

   5. The Resilience and Investment Strategies of Premium-Class Hotels in Adriatic Croatia: Designing a Governmental Framework for High-End Sustainable Tourism Support

      Denis Prevolšek, Željko Kukurin, Tea Golja

      Abstract

      The COVID-19 pandemic significantly impacted global tourism, including Croatia’s hotel industry. This study examines the resilience of Croatia’s premium-class hotels during the pandemic, explores investment strategies, and proposes a sustainable tourism framework. Using secondary data analysis and an online survey of sales and marketing directors from 4-star and 5-star hotels in Adriatic Croatia, the research focused on key performance indicators such as occupancy, average daily rate (ADR), revenue per available room (REVPAR), and total revenue per available room (TREVPAR). Findings reveal that premium-class hotels were more resilient, with quicker recovery, higher ADR, and longer operational periods than lower-class hotels. Istria recovered faster due to proximity to major markets, while Dubrovnik struggled with its reliance on cruise and flight tourism. Investment strategies highlighted ‘new luxury,’ sustainability, and authentic local experiences. The proposed framework suggests strategic initiatives for government support, sustainable high-quality tourism, financial incentives, and public-private collaboration. This study adds to luxury hospitality literature and offers actionable recommendations for enhancing the resilience and performance of Croatia’s premium-class hotels.

4. Eurasian Business Perspectives: Marketing

   1. Frontmatter

   2. Exploring the Role of Social Media in Relationship Marketing: Insights into Customer Engagement and Brand Relationship Quality

      Maria Olearova, Richard Fedorko, Štefan Kráľ

      Abstract

      Social media has become a pivotal tool for brands to cultivate and reinforce relationships with their customers. The effective use of social media can significantly contribute to the practice of relationship marketing (RM) and the development of a loyal customer base. This research aims to enhance our understanding of relationship marketing within the framework of social media by synthesizing scientific insights. The article explores diverse viewpoints among researchers regarding the role and significance of relationship marketing and social media. It also summarizes empirical studies addressing this topic and delves into the core components of this concept: customer engagement (CE) and brand relationship quality (BRQ). The study’s findings indicate that social media platforms are powerful interactive tools for achieving relationship marketing objectives across various social domains. The study contributes to the academic discourse by offering a more comprehensive understanding of the theoretical framework surrounding the use of social media in relationship marketing. This research is valuable not only for theoretical exploration but also as a foundation for future empirical studies on consumer-brand relationships. By clarifying the role of social media in RM, this study offers insights that could inform more effective marketing strategies.

   3. Using Culture for Customers Expectations Analysis in a Luxury Hotel

      Irina Sidorčuka, Agnesa Kurusina

      Abstract

      The study of customers’ expectations leading to their satisfaction and loyalty in the luxury segment of the hospitality business suffers from a significant gap. Specifically, there is insufficient analysis of culturally diverse customers’ expectations of luxury hotels regarding services and interaction with the staff, including their manners, communication style, timing and language, and personalised requirements. This research aims to narrow this gap by analyzing the case of a luxury hotel in Biarritz, France. Expectations of the major groups of the hotel’s international guests in the high seasons of 2017–2019 (American, Russian, French, Spanish, and Japanese) are analysed through the prism of Geert Hofstede’s six cultural dimensions. The research is descriptive and is based on in-depth analysis of data obtained through 157 face-to-face questionnaire discussions with customers, selected by random sampling. The main hotel departments providing services were analysed, including reception, conciergerie, food and beverage, room services and housekeeping. The findings indicate significant differences in international customers’ expectations towards communication styles, the timing of services, status recognition, ethnicity recognition, the language used, menu and catering experiences, leisure program organisation, and other aspects of services.

5. Eurasian Economic Perspectives: Applied Economics

   1. Frontmatter

   2. Synchronization of the Italian External Macroeconomic Imbalances with European Union Countries

      Pavla Bednářová, Vladimíra Hovorková Valentová

      Abstract

      Italy, as an EU member state, is subject to the Macroeconomic Imbalances Procedure. The aim of the paper is to evaluate the development of the external macroeconomic imbalances of the Italian economy, as well as its synchronization with other EU countries, between 2013 and 2022. The required results are obtained using the furthest neighbor agglomerative method of cluster analysis, with the resulting dendrogram. The main conclusion to be drawn from the cluster analysis is the identification of a significant long-term mutual similarity in the development of external macroeconomic imbalances in Italy and France, as well as with core EU countries in 2014, 2017 and 2022, but not in 2020. Both countries experienced similar structural problems, including labor market mismatches, persistent structural unemployment, and low cost competitiveness of the corporate sector, high income inequality, and large redistributive programs that were offset by fiscal deficits. Throughout the period under review, Italy experienced significant negative changes in its export market share. This was mainly due to increased labor costs, declining labor productivity, the Italian economy’s strong dependence on tourism, and the impact of the Covid-19 pandemic, escalating inflation levels and rising energy prices. This information can be an important indicator for early warning of adverse economic developments.

   3. Intra-Industry Trade Expansion and Adjustment Cost in the Estonian Labor Market in 2008–2022

      Grigori Fainstein

      Abstract

      In recent decades, globalization has brought about significant changes in the landscape of international trade. These shifts in trade patterns have caused a reorganization of production resources, both within and across various economic sectors. Consequently, this process of reallocation results in adjustment costs. This study explores the connection between trade expansion and the costs associated with labor market adjustments. We focus on the smooth adjustment hypothesis, which proposes that increased intra-industry trade leads to lower labor adjustment costs. To investigate this, we employ an empirical model that analyses the impact of both intra-industry and inter-industry trade development on changes in employment within Estonian manufacturing sectors. We utilize these employment changes as a proxy for labor market adjustment costs. The analysis leverages panel data encompassing trade, employment, labor productivity, demand, and trade openness variables for 17 manufacturing sectors across the period 2007–2022. We employ a fixed-effects model for the analysis. Our findings provide support for the smooth adjustment hypothesis within the Estonian context during the examined timeframe. Additionally, a positive association emerged between changes in sectoral labor productivity and employment. These results suggest that, in Estonia, the increased competition driven by trade expansion played a significant role in labor market adjustments. However, other control variables specifically trade openness and changes in sectoral demand were not statistically significant.

   4. Socio-Demographic Characteristics with a Focus on the Jeseník District Located in the Czech Republic

      Jaroslav Skrabal, Martin Poledna

      Abstract

      The paper aims to compare selected socio-demographic indicators within the Czech Republic, with a specific focus on a case study of the Jeseník district, in the context of the availability of medical care and facilities. The study is divided into two parts. The first part examines the socio-demographic profile of the Czech Republic, with an emphasis on population size, ethnic composition, and connections to historical milestones. The data, covering the period from 1869 to 2021. The findings indicate that the population is aging, which has negative implications for the economy and, consequently, the availability of healthcare services. The second part of the paper presents a case study of LAU 1 (Local Administrative Unit 1—district) Jeseník, where the authors conducted a correlation analysis between population size and indicators related to the availability of doctors and medical facilities. A key finding of this case study is the observed correlation between a declining and aging population and a decrease in the number of residents per doctor. This trend could potentially undermine the quality of healthcare in the region in the future.

6. Eurasian Economic Perspectives: Banking and Finance

   1. Frontmatter

   2. Bank Branches Since the 2012 Spanish Banking Reform: Impact on Some Municipal Variables

      Guillermo Peña

      Abstract

      The main target of this chapter is to study the impact on the Spanish municipalities of the financial reform after the Law of Sanitation of the Financial Sector of February, 2012. This is analyzed by observing the effects of reducing the number of banking branches to lower than 4—or between less than 5 to 5 as robustness check—on some variables of Spanish municipalities. To this aim, recent Difference-in-Differences techniques with multiple periods are applied to the effects of the annual loose of bank branches on municipalities for 2012–2021 derived of that reform over the population. Additionally, the effects on other variables as net income or income inequality measured by the P80/P20 participation are also analyzed. The results show a reduction in the population of rural areas provoked by the disappearance of the banking branches, a decrease that is significant and robust to the different specifications, control variables and samples but is only temporal for the first years, with a full recovery in 5 years. The results also show a negative but temporal impact on both economic activity per capita and income inequality. This chapter and its results reveal the importance of banking branches not only as a crucial service in isolated areas, but also as a good tool for fighting against the countryside depopulation. Additional policy measures are provided.

   3. Credit Risk and Competitive Behavior in European Banking

      Didar Erdinç

      Abstract

      This paper revisits the bank competition-stability nexus in European banking from a novel angle treating jointly and interactively a set of competition and concentration measures. We explore the impact of the Lerner index, the Boone indicator, and the 5-bank concentration ratio on credit risk for a panel of 36 European countries during 1999–2019. Our findings based on system-GMM estimations provide support for a non-linear competition-stability relationship such that market power enhances banks’ credit risk in an inverse U-shaped form. We find that there is a threshold level of market power beyond which credit risk deteriorates. Our results are enhanced when an efficiency-based competition measure, the Boone measure, is interacted with the market power indicator, the Lerner index: stronger the role of efficiency in driving competitive position of banks, weaker is the impact of market power on credit risk. We also find support for a “concentration-stability” argument implying that concentration does not necessarily imply lack of competition: competition and concentration may coexist with a favorable impact on bank stability if contestability is maintained in the presence of leading banks with efficiency advantages. Policy makers should monitor a wider mix of competition-concentration measures as an additional macroprudential channel to ensure bank stability.

   4. Does the Indian Festival of Dhanteras Affect the London Gold Market?

      Parizad Phiroze Dungore

      Abstract

      This study investigates import demand for gold traits in India specifically during the Indian festival of Dhanteras. The distribution pattern of monthly gold price realized returns are modelled by substantiating the expectation/standard deviation/volatility of the Indian gold import price series (RJD) and London gold market. As gold is purchased typically in the form of jewellery and utensils on Dhanteras, gold demand is estimated in the form of non-monetary precipitate and semi-manufactured forms of gold import in India. The effect of the gold rush in the Indian market is tested specifically during the festive season, to see the effect on London Bullion Market Association (LBMA). The dummy variable proxy to capture the effect of the gold rush during the festive season using the GJR GARCH model is highly significant. Furthermore, the Indian gold import series reflects mean reversion as tested by the Trend Stationary Process (TSP) model. Also, the intensity of price fluctuations is modelled by the ARJI GARCH and the Jump Diffusion Models. Compared to the other models, the time varying jump diffusion model provides the best results.