ISSN 1691-5348/ e-ISSN 2593-0001 is published jointly by RISEBA University of Applied Sciences and BA School of Business and Finance. The journal publishes papers which contribute to an understanding of business management and provide readers with a fresh look at emerging business management practices and research. The journal is published annually. The journal is indexed in ERIH PLUS, EBSCO, COPERNICUS, and DOAJ. JBM is OPEN ACCESS licensed under a Creative Commons Attribution 4.0 International License.
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Family Involvement and Firm Outcomes: A Bibliometric-Systematic Literature Review
Purpose: This paper explores the dynamics of family involvement and its impact on performance and long-term viability of family-owned enterprises (Powell and Eddleston 2017; Campopiano et al., 2015). The study seeks to clarify the primary definitions of family involvement, examine the various methodologies and approaches employed to measure it, and synthesize existing research to evaluate its influence on corporate performance and organizational longevity. Design/methodology/approach: A sequential multi-methods approach was employed. The research began with a bibliometric analysis that quantitatively mapped the field’s intellectual structure and identified its principal thematic clusters. Insights from this mapping then informed the systematic literature review, which synthesized prior studies to assess core concepts, measurement practices, and documented outcomes related to family involvement in business. Findings: We identify four main thematic clusters within the literature, highlighting persistent conceptual fragmentation with over 30 definitions and 12 measurement approaches to family involvement. Results show that family involvement has both positive and negative impacts on firm performance and longevity: active participation enhances long-term orientation and innovation, while excessive or passive involvement may lead to governance challenges and rigidity. Contextual factors—such as generational stage, firm size, and culture—moderate these outcomes, underscoring their non-linear and contingent nature. Originality/value: This paper offers the first integrated bibliometric–systematic review of family involvement research, combining quantitative mapping of 874 articles with an in-depth synthesis of 91 studies. It contributes a structured, multidimensional framework clarifying definitional and methodological inconsistencies and proposes a future research agenda emphasizing contextual, longitudinal, and cross-cultural approaches to better explain how family involvement shapes firm performance and survival.
Copyright (c) 2026 Professor Anete Pajuste, Valerija Kozlova, Jelena Luca, Maija Dobele https://creativecommons.org/licenses/by/4.0
Impact of Digital Competences on Organisational Learning
Purpose Digital transformation affects almost every company and its employees. Tasks are changed and even completely new jobs are created. This disruptive incident on workplaces with a mismatch between current knowledge of workforce and new digital competences might be compensated through organisational learning. However, there is no sufficient knowledge about the mechanism, on how and to what extend the level, willingness to increase digital competences and their importance for the task causes organisational learning. Design/ methodology/ approach This study aims to test the effect of digital competences on organisational learning to adapt and reallocate resources in digital transformation. A questionnaire was designed and distributed in social media. Structural equation modelling (PLS-SEM) and Necessary condition analysis (NCA) was applied to empirically test the gathered data. Findings The perceived importance of digital competences positively effects the self-assessed level of competences and impacts the participants willingness to increase this level. Employee’s willingness to build or increase their level of digital competences are a necessary, but not sufficient condition on a high level of organisational learning. Research limitations The sample size is small for generalisable results. Future research is needed with large samples. Practical implications Digital competences are relevant and must be considered for organisational learning in the ongoing transformational process. Originality/value Organisational learning is complex and happens on different levels. Since competences of employees are known as relevant part of organisational learning, there is need for more knowledge about the mechanisms to adjust human resources.
Copyright (c) 2025 Sandra Starke, Iveta Ludviga https://creativecommons.org/licenses/by/4.0
USE OF LARGE LANGUAGE MODELS IN THE ASSET MANAGEMENT INDUSTRY: EVIDENCE REVIEW
Purpose Large Language Model (LLM) applications can play an important role in the asset management (AM) industry, which is a critical sector within finance and investment. For successful implementation of the technology, there must be a match between the industry challenges and the technological capabilities. Design/ methodology/ approach A review of evidence supported by an LLM-based evidence and review tool was completed to identify key challenges of the industry and current LLM applications within the sector. Content analysis was used to match the key categories of the challenges with the areas of LLM applications. Findings The challenges in the AM industry include regulatory and compliance issues, technological disruption, market dynamics, performance measurement, and adaptation to consumer preferences. Despite a scarcity of specific literature on LLMs in AM, the research points to potential applications such as sentiment analysis, market predictions, and regulatory compliance. LLMs can enhance customer interaction, improve risk management, and develop informed investment strategies by processing and analyzing large datasets. A matrix of the industry challenges and LLM application is created to indicate well addressed areas and those requiring further development. There is a need for more diverse training datasets, better integration, and scalability of LLMs, and improvements in global applicability. Practical implications While LLMs hold significant potential for transforming AM by addressing various challenges, further investigation is needed to overcome existing gaps and limitations. Future research should focus on enhancing data diversity, improving model integration, ensuring regulatory compliance, and addressing the environmental impact of LLM technologies. Originality/value This study contributes valuable insights into LLM applications, supporting the advancement of automated tools in financial services.
Copyright (c) 2025 Dmitrii Gimmelberg, Marta Glowacka , Alexei Belinskiy; Iveta Ludviga https://creativecommons.org/licenses/by/4.0
CARING ABOUT INDIVIDUAL MOTIVATION TO ADOPT AND LEARN?
Purpose: It is unavoidable for organisations and individuals to deal with the issue of digital transformation. Legislators are striving to accelerate the transformation in the healthcare sector. Despite potential opportunities and external pressure, digital offerings are far away from expectations with threatening prospects for future affordability. The reasons for this refusal remain unclear. Literature on this issue is quite fragmented, knowledge on an individual level with relevant factors and mechanisms is missing. Therefore, this study aims to create a theoretical framework on how individual actors in healthcare can drive the change. Design/ methodology/ approach: With a systematic literature review approach two search strings on learning and dynamic capabilities were conducted. The objective is to investigate impacting factors as a starting point for further research on the restraint of digital transformation in healthcare. Findings: In the constructed framework, the need for action to acquire relevant competences with learning as new leverage is identified, contributing to dynamic capabilities theory. Based on this, further research on the role of individual actors with their motivation to adapt and acquire digital competences with learning as fundamental capability is required. Research limitations: This study has limitations due to the inclusion and exclusion criteria for the literature review. Future research could follow up the development. Practical implications: The research provides advice for managers to shift their employees’ mindsets fostering openness towards innovation for sustained learning to enable employees to deal with new technology. Originality/value: A framework for a better understanding of impacting factors or digital transformation in healthcare is provided. The research streams of dynamic competences and learning are investigated and combined, introducing sustained learning as relevant dynamic capability of organisations and individual actors in healthcare. Keywords: Digital transformation, human capital in healthcare, dynamic capabilities, learning, innovation adoption, digital competences Type of the paper: M10 General
A systematic review of leading literature on productivity in work- from-home settings
Topicality: The topic of working from home has gained more and more attention in recent years, especially after the Covid-19 pandemic. Many companies worldwide have announced that they would permanently enable people to work remotely, as they themselves believe that quality work can be done remotely. To this end, working-from-home arrangements should be closely analyzed and understood, and understanding the psychological implications of prolonged work-from-home is crucial. Purpose: This paper aims to systematically review the literature to develop a common understanding of the concept of productivity in work-from-home settings and how work-from-home impacts productivity. Moreover, it provides future research directions for the development of theory and practice. Design/ methodology/ approach: The review examines the leading publications with the search term “Work from home AND Productivity” in Scopus, Emerald Insight, and ScienceDirect databases. 56 publications were used in over 47 sources from 1993 to 2023. Findings: Research into working-from-home models and productivity has been a hot topic for researchers over the past three years. There also seems to be an upward trend. Publications can be found in professional journals with different subject areas such as applied psychology, human resources management, and organizational behavior. The publication's view of working from home describes working away from the office, primarily at home. Employee productivity varies significantly between home office and workplace work. These differences arise from the impact of the workplace on the productivity of the individual. In addition, there are many factors that influence this relationship such as gender, age, level of education, work experience, marital status, number of children, and type of organization. Originality/value: This study is intended to contribute to the advancement of scientific knowledge in the field of teleworking and enable companies to reconsider their teleworking strategies in order to optimize policies and improve organizational productivity without compromising the quality of life and well-being of their employees. Keywords: Work from home, working from home, covid-19, employee productivity Paper type: Literature review
Copyright (c) 2025 Mhd Samer Sbahi Shahin https://creativecommons.org/licenses/by/4.0
ARTIFICIAL INTELLIGENCE FOR SMALL AND MEDIUM-SIZED ENTERPRISES
Purpose. Small and medium-sized enterprises (SMEs) play a crucial role in the global economy, yet they often face significant challenges in implementing cutting-edge technologies such as artificial intelligence (AI) due to limited resources and expertise. This study aims to address this gap by identifying the most important applications of AI for SMEs, exploring their benefits and challenges and assessing their impact on business processes. Design/methodology/approach. A quantitative research approach was employed, including an online survey distributed through various social media platforms. The survey, which was conducted in May 2023, used a standardized questionnaire with closed-ended questions. The survey data were analysed using statistical methods to identify patterns and trends in AI adoption among German SMEs, with a particular focus on their experiences, challenges, and perceived benefits of AI implementation. Findings. The results of this study highlight the most important AI applications for SMEs in various professions and business activities, including virtual assistants, recommendation systems, and machine learning. The study also highlights the benefits of these applications, such as improved efficiency, productivity, and decision-making, as well as the challenges they present, such as privacy concerns and the need for specialized skills. Research limitations/implications. The study is limited by the sample size and the self-reported data collected through an online survey. The findings may not be generalizable to all industries and regions. The implications of this study are that SMEs need to carefully consider the potential benefits and challenges of AI before implementing it in their processes. Originality/value. This study provides a comprehensive overview of the most important AI applications for SMEs and their impact on business processes. Thus, this research serves scientists as a theoretical basis for future research in the field of AI implementation in SMEs. Furthermore, the findings have practical implications for SMEs considering implementing AI in their operations.
Copyright (c) 2023 Marius Schönberger https://creativecommons.org/licenses/by/4.0
ORGANIZATIONAL CITIZENSHIP BEHAVIOUR: EVOLUTION OF THE CONCEPT IN THE SCOPE OF INDUSTRY 4.0 AND INDUSTRY 5.0
Purpose: Organizational citizenship behaviour (OCB) is defined as an individual’s behaviour that is discretionary, not directly or explicitly recognized by the formal reward system, and promotes the efficient and effective functioning of the organization. This concept originated during the period of the Industry 3.0 revolution. Now employees are working during the Industry 4.0 and Industry 5.0 revolutions, which are reshaping the nature of work roles and requirements. This article analyses how the OCB concept evolved during these revolutions. Design / Methodology / Approach: The article follows the method of a narrative literature review, examining papers on OCB and summarizing (1) the origin of OCB, the definition of OCB and concepts related to OCB – contextual performance and prosocial behaviour; (2) two groups of OCB dimensions – according to behaviour and the beneficiary – as well as the importance of recognizing context for OCB dimensions; and (3) suggestions for future research. Conclusions / Findings: Our research shows the gap in previous literature in regard to analysing OCB dimensions in the context of Industry 4.0 and Industry 5.0. OCB is outside of work-role behaviours, which depends on context, and its dimensions were originally developed during Industry 3.0. Though previous literature found that the Industry 4.0 and Industry 5.0 revolutions change workplaces and thus work-role requirements, there is little evidence of how this influences citizenship behaviour since existing research works have not focused on capturing new dimensions of OCB which may be emerging in the context of Industry 4.0 and Industry 5.0. Research and Practical Implications: The findings show that more research should be conducted to fill the gap of evolved OCB dimensions in existing literature. This could help scholars to use the OCB scale, which has been updated according to the Industry 4.0 and Industry 5.0 context, and practitioners to better understand the extra-work-role behaviours that are most relevant for organizational effectiveness in the new era of work. Original Contribution: The study contributes towards future research on OCB in the Industry 4.0 and Industry 5.0 context.
Copyright (c) 2023 Irina Serbinenko, Iveta Ludviga https://creativecommons.org/licenses/by/4.0
MEASURING ORGANISATIONAL RESILIENCE: COMBINING STRATEGIC AND OPERATIONAL DIMENSIONS
Topicality: Research about measuring organisational resilience is gaining popularity due to rising uncertainty in the business environment. Although studies researching organisational resilience are aimed at various industries, using different methodological approaches and resulting in varied outcomes. Moreover, lacking a shared understanding of organisational resilience, publications offer vast differences in measuring approaches and outcomes of organisational resilience. Therefore, understanding organisational resilience as the combination of strategic and operational resilience might lead to a better quantifiability of the overarching construct. Research aim: This paper will conduct a systematic literature review to analyse the different approaches to measuring organisational resilience in leading publications in business and management studies. Furthermore, a combined methodology for measuring organisational resilience from these studies is introduced. Methodology: This literature review explores the leading publications in the business and management field from the scientific database of Scopus using a Boolean search with 'organisational resilience' and 'measur*',' indicator',' scale', and' survey' as the search terms in the Scopus database. Findings: An increasing number of publications studies on how to measure organisational resilience. Nevertheless, a common understanding of the concepts still escapes capture. A split of organisational resilience into strategic and operational resilience can improve the fit of the models to create a shared understanding of its measurement. Novelty: Current research directions regarding catching the concept of organisational resilience and its measurement are widely fractured. This research synthesises the existing methodologies and provides a combined approach for measuring organisational resilience by splitting indicators into operational and strategic resilience dimensions.
Copyright (c) 2025 Tim Colberg https://creativecommons.org/licenses/by/4.0
EVALUATING THE EFFECT OF WISDOM ON CORPORATE MANAGERS’ INTENTIONS TO CONTRIBUTE TO NON-STATE SOCIAL PROTECTION IN THE FUTURE
Topicality: Management literature largely frames business contributions to a society based on concepts of ‘responsibility’ and ‘business case’. Even though the ‘responsibility’ discourse is considered less effective, experiments on the ‘business case’ did not result in a strong positive intention of corporate managers towards society. The underpinnings of these two concepts are called into question in periods of crisis and uncertainty, where wisdom is especially required for decision-making. The research aim: This study aims to assess the effects of wisdom on corporate managers’ intentions to contribute to non-state social protection in the future. Methodology: The authors conducted a survey and mediation analysis of a serial multiple mediation model using Andrew Hayes’s PROCESS Macro as an add-in SPSS. Findings: The research finds a strong relationship between wisdom and corporate managers’ good intentions and concludes that wise corporate managers have good intentions to contribute to non-state social protection in the future. Wise corporate managers have good intentions towards society. Novelty: This research pushes the boundaries of SPW theory by empirically showing that wisdom also leads to good intentions. In addition, the study contributes to the scant literature on wise management decision-making and on non-state social protection. JEL Code: M140 Paper classification: Research paper.
Copyright (c) 2023 Richmond Baah, Tatjana Volkova, Iveta Ludviga https://creativecommons.org/licenses/by/4.0
THE IMPACT OF BOARD GENDER DIVERSITY ON FINANCIAL PERFORMANCE AT HIGH-PERFORMING AND LOW-PERFORMING FIRMS
The impact of corporate board gender diversity on firm financial performance has been topical for at least the last five decades; however, there is still no clear answer regarding whether gender diversity has a significant effect on organizational performance. Recent academic research (2010-2022) from different countries provides contradictory results in terms of the positive or negative effect of women’s representativeness on corporate boards. Our paper contributes to the understanding of this issue based on a sample of the top 500 Latvian firms, analysing financial performance during a three-year period. As an indicator, we took the two accounting-based measures most frequently used in other research – return on assets (ROA) and return on equity (ROE) – and correlated it to female presence on company boards. The findings are based on quantile regression analysis and show a statistically significant positive impact on both ROA and ROE. Quantile regression demonstrates a stronger impact on ROA at high-performing companies. It also shows a positive impact on ROE, which grows together with higher firm performance. The results suggest that the gender diversity effect is not homogeneous and has a signiﬁcantly larger positive impact at high-performing ﬁrms relative to low-performing ﬁrms. The paper contributes to the scientific debate on the impact of board gender diversity and provides the basis for broader research on different aspects of board gender diversity and firm performance going beyond financial indicators. JEL Classification M14, L25
Copyright (c) 2023 Irina Sennikova, Olga Dzene https://creativecommons.org/licenses/by/4.0
THE QUALITY ASSESSMENT OF INTEGRATED REPORTING: A STRUCTURED LITERATURE REVIEW
Purpose: In December 2022, the European Union implemented the Corporate Sustainability Reporting Directive. It is intended to strengthen non-financial and financial information in corporate reporting to meet the growing requirements of an organization’s stakeholders. The quality of this information is essential to increase the usefulness of stakeholders’ decisions. Therefore, the article aims to give a comprehensive overview of the relevant literature that assesses characteristics for the quality of Integrated Reporting. On the one hand, it analyses the insights and reviews the critiques associated with quality assessment. On the other hand, the paper outlines future research paths to clarify which quality-enhancing elements in Integrated Reporting are essential. Design / Methodology / Approach: The research is based on a qualitative research design. It develops a structured literature review and sheds light on the empirical state of the art. The papers are examined by using document analysis and structured content analysis. Findings: The results highlight that the research field of Integrated Reporting is becoming increasingly important; most of the papers come from Italy. The results indicate that the quality of integrated reports is significantly related to company-specific factors. However, the results also show that there are still many open future research paths to fully capture the quality assessment of Integrated Reporting. Research Implications / Limitations: The paper reveals the classical limitations of qualitative research. In addition, due to the tight inclusion criteria and novelty of the research field, the sample size is limited. Contribution / Originality / Value: This paper presents a state-of-the-art structured literature review. It offers insights into the quality assessment of Integrated Reporting and the corresponding decision’s usefulness of information. To the researcher’s knowledge, no paper investigates this topic with a wide-ranging structured literature review. Consequently, the paper adds value to academia, practitioners, and standard setters. JEL Classification: L20, M10, M14, M40 Paper Classification: Literature Review
Copyright (c) 2023 Marcel Mock https://creativecommons.org/licenses/by/4.0
Future perspectives of competitiveness of Latvia’s mashinery and metalworking industry
Machinery and metalworking is a strategic sector (further MMS) with high value added. Its operations require wide knowledge and deep skills. MMS supplies all sectors of national economy with machines, equipment, spare parts and manufacturing systems and related services, as well as needed technologies and human capital and knowledge. The EU research outlines the following criteria for future competitiveness of MMS: Problem solving competence; Customized knowledge; Technological excellence; Quality and confidence; Personnel quality and costs; Education and training; Investment in capital goods. The dominance of low cost approach so far compensated weakness in other competitiveness factors. The recent rapid increase of wage levels, raw material and service costs ask for more and more efforts local companies should introduce to keep their competitiveness. As a result the industry strategy will be shifted to innovation, investment in new technologies and qualified labour.
Copyright (c) 2023 Anna Strazda https://creativecommons.org/licenses/by/4.0
Modeling of work-commitment determinants: a cross-cultural comparison
The object of the current analysis is the work commitment phenomenon and the possibilities of modeling it by analysing its components and the system of influencing factors searching for most significant determinants. The objective is to discuss the possible components of work-commitment phenomenon, propose the system of commitment-influencing factors and test their significance using an appropriate mathematical methodology. An addition task is to implement cross-cultural analysis, modeling general sample and separate samples for different cultures. In this paper the quantitative research methodology was chosen. However, the special attention should be driven to the choice of the adequate data modeling method, taking into account the limitations emanating from semi-qualitative data characteristics. In the current analysis Bayesian classification technique is used. Cross-cultural comparison was made for five countries from rather different cultural clusters: Great Britain, USA, Russian Federation, Japan and Germany. The cross-cultural comparison analysis yielded the relative non-homogeneity of the best predictors across the countries, with the best predictors being the factors of work climate, perception of the place of work in life, job security, interesting job, income, sex and pride related to the type of work.
Copyright (c) 2023 Jekaterina S. Babichenko, Svetlana I. Babichenko https://creativecommons.org/licenses/by/4.0
New outside blockholders, performance and governance in Germany
In this paper we examine stock price reactions to announcements of large block purchases with German targets. We can show that the formation of new outside blocks leads to significant value creation for target shareholders, regardless the acquirer‟s intention. Splitting the sample by acquirer intention indicates that activist and strategic blocks entail significantly higher abnormal returns than purely financial blocks. The positive effect of activist block purchases still persists when we control for other block- and target-specific factors in cross-section. We do not find a significant relation between incumbent ownership structure and announcement effects, sustaining the recent evidence that existing large blockholders do not necessarily play a significant role in disciplining management.
Copyright (c) 2023 Friedel Drees, Dirk Schiereck https://creativecommons.org/licenses/by/4.0
Network analysis is one of the most popular methods of scientific research at present. The aim of the topic is to examine the specific features of entrepreneurship in network markets. Network goods are those goods which meet the following characteristics: complementarities; high economy of scale; network externalities; lock-in effects. These characteristics of network goods and network markets give some advantages and form some new problems for enterprises: prices, legislation problems, etc. Advantages: information and information exchange; flexibility; development of non-commercial organisations; social contacts. Problems: contradictions in the information; complexity of economic life; protection of information; price-decisions; legislation. It is important to construct the most effective business model, which is capable to be competitive and cooperative in the network markets.
Copyright (c) 2023 Irina Strelets https://creativecommons.org/licenses/by/4.0
Problems of imbalanced liquidity in Latvian commercial banks and possible solutions
At present many commercial banks in Latvia face the problem of imbalanced liquidity caused by the mismatch between the terms of borrowing and lending. Thus, during the last 5 years, a rapid growth of long-term lending was not sufficiently covered by long-term resources. Many banks were forced to transform significant amounts of short-term resources into long-term assets running the risk of imbalanced liquidity. In spite of the fact that the implementation of the government‟s anti-crisis programme will undoubtedly affect the banking sector and will lead to a gradual slowing down of lending growth rates, the problem of finding long-term resources will remain high on the banks‟ agenda. In the authors‟ opinion, an important role in attracting long-term bank resources should be played by the issue of securities: bonds, mortgage bonds, etc. as well as by the creation of subordinated liabilities. The present article is devoted to the analysis of the level of equilibrium of bank assets and liabilities by terms and amounts, to the identification of the existing problems in imbalanced liquidity risk management, and to the search for the optimal solution to these problems. The authors also reveal an interconnection between the imbalanced liquidity risk and other risks of a commercial bank (credit, interest rate, market, reputation risks, etc.). They identify the sources of the imbalanced liquidity risk, characterize the impact of each risk source and propose methods for controlling the risk.
Copyright (c) 2023 Natalia Konovalova, Marina Kudinska, Ludmila Rozgina https://creativecommons.org/licenses/by/4.0
Searching for opportunities outside home economy: Russian cargo transportation market, its perspectives and opportunities for growth
The research was written with the purpose to investigate situation on the Russian cargo transportation market and to identify external and internal factors influencing on feasibility of establishing Latvian cargo transportation subsidiary in Russian market. The main aim of research is to explore whether and to what extent it is feasible to establish subsidiary company on Russian cargo transportation market. The dissertation is based on the basis of scientific sources, educational literature, statistical data and observation of Russian transport branch development peculiarities, using strategic and financial management tools, analyses. The research performed is of analytical and predictive types; the information collection method was in the form of deskwork and documentation survey. The outcome of research provides the answer to the main research question, which is based on the results of thorough analyses performed.
Copyright (c) 2023 Andrejs Čirjevskis, Olga Karnauhova https://creativecommons.org/licenses/by/4.0
The role of financial reporting for the development of business: evidence from Latvia
It is well known that the financial statement is the basic source of the financial information on the companies‟ activities in the business world. Not casually, Accounting is often said to be the „language‟ of business. The purpose of the financial reporting is presentation of objective and useful information on activity of the company to the broad audience of users. To what extent the information contained in the financial statements is objective and useful is determined by two factors: regulation and presentation of statements. The given paper reveals the problems of preparation of financial statements by Latvian companies, which occur because of regulatory legislation‟s imperfection and its differences with international standards, and also because of its accounting practices. The aim of this paper is to provide recommendations on financial statement quality improvements, which would ensure adequacy of financial information disclosure on Latvian companies‟ activitities and comparability of indicators of the financial reporting for international users. The qualitatively prepared financial statement, including the Intellectual Capital Report, the author considers as a factor, which ensures the strengthening of investment attractiveness of Latvian companies and development of Latvian business in the European market.
Copyright (c) 2023 Irina Kuzmina https://creativecommons.org/licenses/by/4.0
Restructuring of business as a way of increasing a company’s value
Business managers in Latvia divide restructuring into two main kinds. The strategic restructuring is intended to increase the value of equity for shareholders, keep the corporative property and deal with other issues for an enterprise to maintain its functional condition. The restructuring of companies in a situation of crisis is focused on the restructuring solutions for insolvent or bankrupt enterprises to lead them back in the condition of functional enterprise. In generally, restructuring is the corporate management term for the act of partially dismantling and reorganizing a company for the purpose of making it more efficient and therefore more profitable. It generally involves selling off portions of the company and making severe staff reductions.
Copyright (c) 2023 Inese Mavlutova https://creativecommons.org/licenses/by/4.0
The sustainability of family businesses: evidence from three UK case studies
This paper analyses some of the key issues faced by family businesses (FBs) in the UK. Perhaps because most family businesses are Small and Medium sized Enterprises (SMEs), in the UK it is rare to draw any distinction between the problems faced by FBs and SMEs, yet FB have some unique characteristics and problems.. The paper examines certain key issues for the development (and perhaps the very existence), of the FBs. These areas are motivation (to found the business), development/diversification, sustainability (it is this family succession that most distinguishes an FOB from other businesses), and the role and importance of technology in all aspects of the business. These issues are discussed, with reference to the available literature and are highlighted by evidence from three case studies, each of which is taken from a different business sector in the UK.
Copyright (c) 2023 John R. Dobson, Jonathan S. Swift https://creativecommons.org/licenses/by/4.0
Sustainable business development and economic growth under scenarios of economic slowdown
Concerned with employment, this paper deals with doubt regarding widely accepted corner stones of economic theory and measures based thereupon. The author has long doubted some prevailing economic theories as far as publicly discussed and applied. As a result of reflections and own practice as innovator, entrepreneur and consultant, the author draws conclusions, relating contradictory macro economic theories with developments outside of economy: With Human Nature and Culture. Moreover with Diversity of Values and the dealing with qualitative and quantitative information. The paper offers ways to explain, what leading researchers of economic science have admitted not to understand, and draws conclusions regarding cultural elements, which are decisive for the sustainable development of prosperity, social security, self-determination and independence. By offering different interpretations, the author seeks to induce new directions in scientific research. This paper is to be complemented by more detailed presentations of methodology of promotion and sustainable management.
Copyright (c) 2023 Gerhard Eichweber https://creativecommons.org/licenses/by/4.0
Evaluation of business macro environment: case of economic slowdown
Nowadays due to growing importance of competitiveness measurement (9) a lot of resources are invested in the issue-related researches. One of the major components of measuring competitiveness is evaluation of business macro environment (BME). Three approaches are mainly used to evaluate the BME: Analysis of key indicators (usually by segregating business environment in parts (4, 9), for instance, PESTEL analysis); Business surveys (for instance, IFO Business Climate Index in Germany, Economic Sentiment Index in Latvia, etc.). However, this approach does not give a clear explanation of how entrepreneurs carry out the BME evaluation and what information they use. More advanced (and rear) approach that combines results of the first two approaches and explains the gap between the evaluation results. In the economic slowdown conditions the analysis of key indicators is still appropriate to employ (with some exceptions though), but reasonable changes take place in the BME evaluation undertaken by the entrepreneurs for the reason that general economic indicators become less important. The most important information for the entrepreneurs to evaluate the BME in 2005-2006 was the average wages level in the country, but in the end of 2007 (in the beginning of the slowdown) - the overall employment situation.
Copyright (c) 2023 Vulfs Kozlinskis https://creativecommons.org/licenses/by/4.0
Economic growth vs sustainable development – the case of Latvia
Latvia has experienced an extremely high economic growth of late years. The same time the present macroeconomic situation in Latvia has been evaluated as the worst in the European Union. Economic growth, which is measured by the increase of GDP, shows the increase of economic activities, and is in correlation with the welfare. Latvia can be considered as an example where there is a rather high discrepancy between the level of economic activities and the welfare of people – high growth with low development. Development is a broader process than economic growth, as well as welfare can not be measured only in monetary terms. The analysis of economic processes in Latvia shows, that the rapid economic growth in Latvia has caused serious problems from the point of view of sustainable development.
Copyright (c) 2023 Ivars Brīvers https://creativecommons.org/licenses/by/4.0
The coefficient of multiplier and the marginal propensity to import: the case of Latvia
Any changes of aggregate expenditure in national economy involve the multiplier effect. Valuing possible effects of macroeconomic policy, one must take into account the coefficient of multiplier. Value of the coefficient depends first of all on the population‟s marginal propensity to consume (MPC) and typically exceeds 1. But besides the MPC there are other factors that may substantially affect the value of multiplier. One of these factors is the marginal propensity to import (MPI). It is usually stated that the MPI cannot exceed 1. The aim of the paper is to estimate the value of multiplier in Latvian economy in order to check whether this value might prove below 1 due to high MPI. Calculations of the coefficients of multiplier, MPC, and MPI for period of 1995 – 2006 are made by author on the basis of Latvian statistics. Conclusions and implications for macroeconomic policy are suggested.
Copyright (c) 2023 Aleksandrs Fedotovs https://creativecommons.org/licenses/by/4.0
INSIGHTS INTO TRENDS AND CHALLENGES OF THE PHARMACEUTICAL INDUSTRY
Purpose: As an important player in the healthcare sector, the pharmaceutical industry has received increased attention in the context of the coronavirus disease caused by the SARS-CoV-2 virus (COVID-19) pandemic and medicine shortages. Given the profitability of the pharmaceutical industry, there is a rising focus on business analysis from a wide range of business analysts, as well as consulting and auditing companies. However, the role of scientific research in the analysis of the pharmaceutical industry has been unclear in recent years. Therefore, this study aims to provide insight into the role of scientific business research in the development of the pharmaceutical industry. Methodology: To achieve the research aim, a general review was conducted using Academy of Management journals’ resources, the Web of Science platform, and the Scopus database for the selection of scientific articles. In addition, the views of leading business analysts, as well as consulting and auditing companies, on trends and challenges in the pharmaceutical industry were considered within this framework. Findings: Overall, the trend over the last 15 years has been towards less fundamental research on the development of the pharmaceutical industry. It can be assumed that business analysts, as well as consulting and auditing companies, have taken over this function. However, it is probably the lack of fundamental theoretical research that is one of the determining factors for the uncertain trends and hidden challenges of an outwardly thriving industry. Research limitations: This research provides an overview of trends and challenges in the pharmaceutical industry. In-depth factor analysis is beyond the limitations of this study. Practical implications: This study encourages researchers to focus more on fundamental business research in the pharmaceutical industry, as empirical local market research currently dominates. Originality: The study identified a research gap in fundamental business research on the pharmaceutical industry and proposes to strengthen this research to support the healthcare sector and people’s health. Paper classification: general review
Copyright (c) 2023 Diana Araja https://creativecommons.org/licenses/by/4.0
The special issue of the journal is devoted to the papers presented at the International Scientific Conference “Sustainable business development under scenarios of possible economic slowdown” held at Riga International School of Economics and Business Administration (RISEBA), Latvia, on 10-12 April 2008 and was hosted by three leading in the field of Business Administration academic institutions of higher education in Latvia that are: Riga International School of Economics and Business Administration, Ventspils University College and BA School of Business and Finance (these institutions also run a joint PhD Business Administration program). Participants from twelve countries – Latvia, Lithuania, Sweden, Germany, Switzerland, United Kingdom, Russia, Australia, Estonia, Poland, Denmark and USA – took part in the conference. The conference topic was announced in February 2007 (during the previous conference), when Latvia and other countries experienced the rapid economic growth. At that time, it seemed that the conference issue on business development under scenarios of economic slowdown was too pessimistic. However, the forecast appeared to be right. Nowadays discussions of economists and politicians are focused around the duration and seriousness of consequences of the slowdown in contrast to the last year‟s focus – how long the rapid world economic growth would last. It is particularly applicable to the Baltic countries, where a number of indicators show that economic changes are occurring rapidly. The fast slowdown of the economic growth indicates on the fact that the Baltic countries have entered into a reverse stage of the development cycle, although the future positive growth is forecasted with respect to all three countries. The conference agenda addressed three basic questions: 1) the severity of the situation in the Latvian economy and possible scenarios of further development; 2) the economic behavior of entrepreneurs under conditions of economic slowdown; 3) the Government‟s role in the period of the rapid slowdown of the economic growth. The considerable decline of the Latvian economy was forecasted the current economic situation. Simultaneously, the participants counted on the fact that the Government is able to avoid the economic recession and other shocks, e.g. depreciation of the lat. The overall forecast of entrepreneurs in the middleof 2008 is quite optimistic: 4-5% growth rate of GDP1. However, despite of this optimistic viewpoint it was admitted that the economic risks still remain very high, driven mainly by the current trade deficit and high inflation rate. Therefore, sound and rapid qualitative changes applied to the country‟s economy are required in order to eliminate these risks. The participants also admitted that the Latvian economy is strongly dependent on exports and, thus, on the global tendencies that are hard to influence. Hence, in order to solve Latvia‟s economic problems the internal state changes are required in the first place. These changes have to be undertaken by both entrepreneurs and the Government. It is of an utmost importance for the economy that the entrepreneurs were optimistic and proactive, although they have to understand that their growth opportunities will be limited due to two reasons. The first one has already been mentioned in connection with the economic slowdown. The second is tied to the fact that the Latvian in-house market is not very big and in order to continue to develop in line with their business ambitions the entrepreneurs often have to open up new markets outside Latvia. Given the decline of the economic growth rate and the consequential growth of demand, the competition is expected to increase, the price competition in the first place. However, the price competition has its own limitations and, thus, could not be regarded as the entrepreneurial optimum. The involvement of business growth in the price competition could be a sound strategy in the markets where the competition level was low. Yet, in most of the economy sectors the growth and development potential is underpinned by innovations, by offering new and unique products, by improving relationships with customers, by modernizing the internal organization structure. The great potential of the business development had hitherto been carried by the “copy-paste” strategy: when the demand grows rapidly, a number of other template businesses arise (whether local, or foreign). Nowadays, in contrast, the greatest potential lies within the creative and innovative thinking. What do the entrepreneurs expect from the Government? The answer is: they do not possess the unified plan of actions. However, the entrepreneurs‟ feasible expectations include: macroeconomic stability, rise of the economic competitiveness (that has fallen during the last years) and adequate support of the economy sectors, which do not feature free competition and which are dependent on public support. The entrepreneurs are still in the lack of the vision of the country‟s course of economic development, the vision that is clear and simple enough. Latvia is a small country and its resources are limited – it pertains to both nature and human resources. Therefore, consolidation of human resources in a number of priority directions could result in the larger contribution to the state economy as opposed to the case when there are no such priority directions or they are not clear enough for the entrepreneurs. However, in order for this consolidation to ensue, it is necessary to manage this process. And that is where the Government‟s role as the leader lies corresponding with the entrepreneurs‟ expectations. Considering the complicated situation in the state economy, it is imperative to think innovatively and pragmatically as well as to increase productivity not only on the business, but also on the state level. The Government sector‟s task is to serve the society. It is, therefore, essential that every lat spent carried a clear justification from the viewpoint of the goals set due to the reason that the state competitiveness is influenced by the consumers‟ and entrepreneurs‟ degree of reliance to the Government. In case the processes causing uncertainty towards the Government‟s actions, e.g. it works in favor of one of the group‟s interests or accomplishes such projects that are not supported by the society, then the entrepreneurs‟ confidence towards the future weakens. Under circumstances of the economic growth rate declining, the Government could initiate large-scale projects that encouraged the economic growth. At the same time for the sake of effective allocation of resources it is required to provide calculations on the project‟s return justified scientifically. The current practice when decisions are taken on the subjective grounds is not viable from the state‟s development viewpoint. A number of the conference participants mentioned the importance of ensuring alterations in relation to the education system. One of the modifying criteria is that the education system has to be capable of preparing ambitious leaders thinking creatively and able to make decisions in the ever-changing environment. Key words of conference: the Government‟s role in the business environment stabilization, leadership, economic slowdown, sustainable development and competitiveness On behalf of the Conference editorial board, 2008: V. Kozlinskis, A. Nipers
Analysis of the quality assurance system in the higer educational establishment
The purpose of this article is to reveal the opportunities to improve the quality of the higher education at three levels: state, higher educational establishment and a teacher, which are interconnected. Thus, a teacher plays the leading role in formation of quality improvement. The article discusses the impact of globalization processes that influences higher educational establishments and teaching quality assurance criteria. The main idea is to analyze different requirements for quality of higher education according the level of control.
Copyright (c) 2023 Nina Vevere https://creativecommons.org/licenses/by/4.0
The evaluation of human resources management in large enterprises of Latvia
Similarly as in other European countries, the number of large enterprises in Latvia, where more than 250 employees work, is not more than 1% of all enterprises. For successful management of these enterprises entrepreneurs need not only to organize and to manage basic activities and to ensure the appropriate supporting functions, but they also need to evaluate these functions. One of the most important systems of conduct of a business is human resources management therefore it is necessary to evaluate this system to use appropriate methods of evaluating. Researchers on human recourses management have developed several methods of evaluating human recourses management. The purpose of this paper is to describe large enterprises of Latvia, what the methods of evaluating human recourses management they use.
Copyright (c) 2023 Līga Peiseniece https://creativecommons.org/licenses/by/4.0
An assesment and management of credit risk in Baltic states’ banks
Recently rapid development of the Baltic States was evidently influenced by the increase of lending rate. In such conditions especially actual is the evaluation of the banks‘ credit risk and the commercial banks stability. The aim of the research is to examine the aspects of assessment and management of the credit risk in the Baltic commercial banks. Management of the credit risk is a keystone of risk management in the banking area. Finance institutions have to be able to govern the credit risk at the level of whole lending base as well as at the level of individual borrowers and concrete credit form. Modern credit risk management theory establishes four credit risk dimensions that define the credit risk value: Probability of Default – disability of the borrower to meet his engagements; the probability of borrower‘s insolvency during the contract period; Exposure at Default; Loss Given Default; Maturity – the time left until debt coverage. The change for the worse of the macroeconomic situation in the Baltic States (economic development quick rise, growth of the unemployment level, still high inflation level) influenced the borrowers‘ insolvency negatively. Quick fall of the lending base quality could be observed especially well in the Latvian commercial banks.
Copyright (c) 2023 Juta Šļapina, Mg. oec, Ingrīda Jakušonoka https://creativecommons.org/licenses/by/4.0
Problems of the evaluation of credit risk in commercial banks
The introduction of the requirements of the Basel 2 agreements for Latvian commercial banks to estimate their capital adequacy has changed the approaches to credit risk evaluation. On the one hand, it enabled commercial banks to apply different economic models and methods of credit risk evaluation. On the other hand, it has created new problems connected with the formation of the banks credit portfolio. The aim of the research is to analyze the methods of credit risk assessment according to the requirements of the Basel Committee and to develop recommendations on introducing these methods in the practice of Latvian commercial banks and their customers. Tasks of the research: to investigate the essence of the standardized approach to credit risk assessment; to compare Basel 1 and Basel 2 approaches to credit risk evaluation; to investigate the essence of the credit risk assessment approach based on internal ratings; to identify the advantages and disadvantages of the approaches of credit risk assessment; to analyze the process of introducing the new approaches to credit risk assessment in the practice of Latvian banks.
Copyright (c) 2023 Natalia Konovalova https://creativecommons.org/licenses/by/4.0