THE INFLUENCE OF THE SIZE OF THE ECONOMY AND EUROPEAN INTEGRATION ON FOREIGN DIRECT INVESTMENTS IN THE CENTRAL, SOUTHEASTERN AND EASTERN EUROPEAN STATES 1994-2013

The paper studies the interdependence of the economy size and foreign direct investments (FDI) in the transitional economies of Central, Southeastern and Eastern Europe. In the global capitalist economy, foreign direct investments (FDI) represent one of the key determinants of economic growth. Among some transitional economies, in the last 20 years, FDI represented one of factors that increased the economic growth, and in other transitional economies, the influence of FDI was minor or even negligible. In the literature devoted to the influence of FDI on economies, the research about the determinants of geographical pattern of FDI distribution usually focuses on the factors that determine why some states manage to draw FDI in higher levels than some other states. Our research focused on the transitional economies of Central, Southeastern and Eastern Europe, which were for the most part of the last 20 years net receivers of the FDI. Only a couple of these countries in the years of the current economic crisis have experienced FDI net outflow. Among the states studied, we have equally studied the EU members, as well as the non-EU members. We have tried to find similarities and differences between these two groups of states in order to determine the influence of EU membership on FDI per capita and how it correlates with the size of the state’s economy. We have also tried to answer the question of how much the GDP growth rate correlates to the FDI net inflow share in GDP for EU and non-EU members. The methodology is based on the statistical correlation between FDI in current US dollars and GDP per capita in current US dollars (World Bank data) for each represented state, through the surveyed period from 1994 until 2013. The statistical correlation matrix (Pearson method) determined whether any correlation between the average GDP growth rate (chain index) and the average share of FDI in GDP per each state exists for each state surveyed

THE RELATIONSHIP BETWEEN TECHNOLOGICAL DYNAMICS OF NEW TECHNOLOGIES AND ABSORPTIVE CAPACITY OF EXPORT COMPANIES OF THE REPUBLIC OF CROATIA

Information and communication and digital technologies provide numerous opportunities for companies so that companies can operate more easily and efficiently globally and, due to new technologies, gain a competitive advantage. New trends and technologies are creating great pressure in the market and companies are forced to look for new, faster and more efficient ways and models of doing business. Markets dictate the pace and are becoming more digital precisely due to technology that is advancing and evolving rapidly. With new technology, knowledge and innovations are the key factors to success. Many companies today are defined and described as knowledge companies that accumulate and develop existing knowledge but also adopt new. The aim of this paper was to explore and examine the ability of the organization to absorb knowledge (absorptive capacity) as the key factor in the process of acceptance of new technologies. The research was conducted in the Republic of Croatia and Croatian export companies (micro, small, medium and large) were included in the research. The research hypothesis "Technological dynamics of new technologies affect the absorptive capacity of acceptance of new technologies in export companies of the Republic of Croatia" was confirmed through conducted research. The research has proven that absorptive capacity plays a major role in the context of an organization’s ability to recognize, acquire, transform, and use new knowledge and new technologies

The correlation between the FDI and the GDP in the EU15 member states in the period 1980-2014

Članak se bavi istraživanjem korelacije između izravnih inozemnih ulaganja (FDI) i BDP-a u prvih 15 članica Europske unije (EU15), u razdoblju 1980. - 2014. FDI su postavljena kao nezavisna, a BDP kao zavisna varijabla. Namjera članka je istraživanje korelacije FDI-a i BDP-a među državama koje su osnovale EU (tada EEZ) ili se priključile EEZ ili EU do 1996. Postavljene su sljedeće hipoteze istraživanja: hipoteza br. 1, kojom se tvrdi da FDI i BDP u državama EU15 pokazuju značajnu korelaciju, te hipoteza br. 2, kojom se tvrdi da države EU15 koje pripadaju "ekonomskoj periferiji EU15" pokazuju značajniju korelaciju od država EU15 iz "ekonomske jezgre EU15". Također je postavljena i nulta hipoteza, kojom se tvrdi da u navedenim državama nema značajne korelacije FDI-a i BDP-a. Vrijednosti Pearsonova koeficijenta korelacije verificirale su postavljene hipoteze istraživanja za većinu istraživanih država.The paper studies the correlation between the FDI and the GDP in the EU15 member states, between 1980 and 2014. The FDI was set as an independent variable, and the GDP as a dependent variable. The aim of the paper is to study the correlation between the FDI and the GDP in the states that founded the EU (then the EEC) or joined the EEC/EU up to 1996. The following research hypotheses were set: no. 1, stating that the FDI and the GDP in the EU15 member states show a significant correlation, and research hypothesis no. 2, claiming that EU15 member states of "the EU15 economic periphery" show a higher correlation than the EU15 member states of "the EU15 economic core". The NULL hypothesis, which claims that the FDI and the GDP in EU15 member states do not show a significant correlation, was also set. The Pearson correlation coefficient values verified the research hypotheses for most of the studied states

Influence of Digital Technologies and Its Technological Dynamics on Company Management

Doing business in the market today is unthinkable without new and modern technology, which is one of the key resources by which companies achieve a sustainable competitive advantage. Digitalization and digital transformation of business includes a number of information and communication technologies (ICT) that are built into business processes and which make it easier for management to do business but also ensure market recognition. Globalization of business affects the expansion and easier access to markets, whereby the management of the company must find new ways and methods of doing business, where the digital transformation of business and new digital and information-communication technologies have an effect on growth and competitive advantage. The ability of an organization to transform its business towards digitalization and application of new digital technologies largely depends on the management of the company and a clear digital strategy as an integral part of the corporate business strategy. In order to investigate the impact of constant and rapid development of digital technologies on the management of the company from the aspect of its acceptance and integration within the company\u27s strategy, a survey was conducted in the territory of the Republic of Croatia and Croatian export companies (micro, small, medium and large) were included in the survey

Operational Risk Management Using Multi-Criteria Assessment (AHP Model)

Decision making and management are synonyms. Banks are facing a number of business risks and operational risk is prevalent. Risk management is related to making decisions; therefore, it is important for the whole organization. The aim of this paper is to develop a decision-making system when choosing the method of operational risk management by using the Analytical Hierarchical Process (AHP). AHP is an efficient process in solving decision-making problems. The final decision depends on the evaluation of a set of alternatives and decision criteria. Therefore, AHP defines the criteria related to operational risk and the alternatives that the bank management can undertake in order to successfully manage operational risk. The main purpose of the process is to find appropriate solutions for defined user factors in the current competitive environment. The results, obtained by the classical numerical method show that External Factors is the dominant criterion, especially during the financial crisis or the Covid pandemic, and that solutions should be sought in international standards along with using the control tools created by banks themselves

Development of Small and Medium Entrepreneurship in the Republic Of Croatia

Entrepreneurship is a key driver of economic growth and a generator of employment opportunities in all modern economies across the world. Small and medium enterprises (SMEs) are the engines of modern entrepreneurship. In the Republic of Croatia, SMEs are also indispensable in the effort to boost employment and economic growth. The global economic crisis has virtually brought the national economies worldwide to a halt, causing a considerable decline in production, consumption, and gross domestic product. In such conditions, the development of individual entrepreneurial competencies and entrepreneurial culture represents the main preconditions for successful economic growth and development. The SME sector plays a key role in achieving this by increasing the national economy’s competitiveness in the regional and European Union markets. The aim of this paper is to present the position of entrepreneurs in the Republic of Croatia, to identify challenges that come with setting up a business, and to describe the state of small and medium entrepreneurship in the Republic of Croatia. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.</p

IMPROVEMENT OF THE ACTIVITIES OF STUDENT SERVICES AT UNIVERSITY NORTH, UNIVERSITY CENTER VARAŽDIN

An organization is a group of people who enable the achievement of a common goal using their own efforts. Organizing is a process which has two specific parts: the structure of a company and coordination of human resources. They are both very important and almost indispensable in business economics and the modern business world. Therefore, in the context of this definition, University North is seen as an organizational unit with all its features, i.e. advantages and problems. An organization (manufacturing or service) cannot be imagined and cannot operate or survive in the market unless proper, timely and quality selection of the organizational structure together with its maintenance and improvement are taken into account. Having that in mind, certain problems have been noticed in the organization of University North which hamper its effectiveness. Student services, as one of the organizational units, contribute to its work and it is very important for the total satisfaction of the most important subjects – students, as well as teachers and other interested parties. Based on many years of work in student services and previous knowledge, it has been noticed that the effectiveness of tasks carried out by the student services is not at the expected and required level, i.e. it is possible to increase their efficiency to a higher level by reorganization and certain improvements. The efficiency and effectiveness of student services is determined by the satisfaction of students and all other stakeholders – teachers, workers, graduates, employers, associates, and others. The paper presents an analysis and research of a better organization with the purpose of improving the organization and efficiency of the Student Services at University North. Upon recognizing and defining the problems for this research, the data have been collected in order to get an insight into the current situation, which is generally defined by the hypotheses. Using surveys, this research examines the students’ satisfaction/dissatisfaction regarding the services provided by the Student Services on a daily basis. Do students of University North consider that this unit provides quality services and is available to them? Upon collecting the data, an analysis has been conducted, i.e. the situation has been studied so as to find propositions for improvement. Various tools and methods were used in that part of the paper in order to enable the observation of the optimum alternative to the solution. The research results will serve as indicators of how to increase the student satisfaction with regard to the work of the Student Services and how to improve their efficiency

Applying Gravity Model to Analyse Trade Direction

The application of Newton\u27s law of gravity in explaining international trade proved to be very successful. The popularity of a gravity model for explaining trade flows has been due to the fact that the calculations require affordable data for every economy. The basic elements of the panel gravity model are mainly GDP, population and distance. This paper analyses Serbia\u27s trade from 2001 to 2018 based on the experience of neighbouring countries of Croatia and Romania, using STATA software. The trade exchange with more distanced EU members is less realized. The country tends to trade much more with its neighbouring EU members, proving the basic assumption of a gravity model. There are exceptions regarding some parts of the trade with developed EU economies, regardless of their distance. These relations will help us to evaluate the trade pattern and direction of Serbian trade in the EU accession process using a gravity model

Entrepreneurship during the Times of the Coronavirus Pandemic in Republic of Croatia

Entrepreneurship is a key driver of economic growth and a generator of employment opportunities in all modern economies across the world. Small and medium enterprises (SMEs) are the engines of modern entrepreneurship. In the Republic of Croatia, SMEs are indispensable to boost employment and economic growth. Numerous economic activities have been slowed down due to the coronavirus pandemic, and some have even been completely halted. In these extraordinary circumstances, not only in the Republic of Croatia but also all over the world, an entrepreneur must be proactive and able to promptly adapt to this new situation. The purpose of this article is to investigate the entrepreneur’s position in the Republic of Croatia and to identify key problems entrepreneurs face during the coronavirus pandemic. As indicated by the research results, the coronavirus pandemic has drastically altered business activity conduction and entrepreneurship. For their businesses to survive these new, everyday challenges, many companies are forced to adapt their supply to market demands, introduce business informatization, lower the product and service prices and invest in employee education