Contemporary banks operate in a changing environment influenced by regulatory requirements, emerging new risk types and high competition on the market. At the same time banks have on their disposal ...large datasets from internal and external sources – the question arising is whether banks are using adequate analytics to gain value from big data. Big data has been used in banking for some time, mostly in the marketing field, but the usage of big data in banks’ risk management has not been a subject of extensive scientific research. The goals of this paper are twofold. Firstly, the authors are presenting an overview of existing research on the topic of big data usage in banks’ risk management by discussing selected aspects of this topic. Secondly, the authors are formulating a proposal on how to strategically use big data in risk management in banks by merging literature based extracted usage of big data with risk management phases. Expected contributions of this paper are systematization of knowledge from available literature and increasing scientific and professional awareness on the topic and potential of big data in banks’ risk management.
The paper analyzes the financing of small and medium enterprises (SMEs) in the Republic of Croatia. The fundamental goal of the paper is to determine the most common forms of funding sources used by ...entrepreneurs classified as SMEs, as well as the advantages and disadvantages that each financing model brings. The article pays special attention to financing methods that are less known to the average Croatian entrepreneur, such as peer-to-peer lending, initial coin offering, and security token offering. Unlike the banking system, which serves as an indirect financial system, modern forms of financing allow SMEs to raise funds directly from borrowers. To obtain the most relevant information from practice, the article presents the results of conducted research on financing models for SMEs in Croatia, with a particular focus on the awareness of entrepreneurs about new and contemporary forms of financing. Research was carried out in the form of a survey questionnaire created using Google Forms. The sample for the research consisted of 145 SMEs companies, selected to represent the population from various sectors of activity according to the national categorization of activities, from which 14.48% responded to the survey questionnaire. Research showed a higher rate of awerenes and the utilization of traditional forms of financing compared to modern ones. However, it also indicates a certain readiness to embrace the latter. Although the share of modern forms of financing remains small, research revealed that they constitute an appropriate alternative to traditional banking systems, both as a relatively solid investment channel and as a way to obtain loans with convenient terms.
In our study, we explore the financial performance of companies in advertising industry in Croatia, depending on internal factors and overall economic conditions. Internal factors are represented by ...financial ratios of liquidity, leverage and activity, and economic conditions by the selected macroeconomic variable. Financial ratios used in this research are Current ratio (CR), Debt ratio (DR) and Total Asset Turnover (AT), and macroeconomic variable is Gross Domestic Product (GDP). The performance of the companies is measured by Net Profit Margin (NPM). The idea behind this research is based on the fact documented in the literature that some companies see marketing costs as an investment, and not only do not cut their spending on marketing in times of economic downturn, but even increase it. If many companies behave this way, this should reflect on the profitability of companies in advertising industry, with a negative relationship between GDP and their profitability.The population of this study is comprised of all the companies operating in Croatia whose main activity is promotion. According to National Classification of Activities (NACE Provisions 2007) the mentioned activity is classified in the section M 73 - Advertising and market research, and this section includes advertising agencies (M 7311), media advertising companies (M 7312) and market research companies (M 7320). The financial ratios for those companies were measured from 2009 to 2018. A multiple regression model was used and secondary data were analyzed.Among the four independent variables, only AT does not show the significance on NPM. The results of multiple regression analysis show that DR, CR and GDP have significant correlation with the financial performance of promotion companies in Croatia; DR and GDP are negatively correlated, while CR is positively correlated to the industry performance measured with NPM. The contribution of this paper is twofold: on one side, it contributes to the literature dealing with the impact of financial ratios and macroeconomic variables on financial performance, on the other side it contributes to the literature that studies the relationship between marketing costs and economic activity.
The leading hypothesis of this research is based on the assumption that the concept of value based management can be enhanced through the application of system dynamics. The scientific contribution ...achieved by this research is the verification and validation of the justification for a paradigm shift in long-standing understandings of the actions of a company. Methodological assumptions were tested against findings from research on the alignment of fundamental principles, objectives, and instruments of system dynamics and value based management. The research led to the conclusion that there is a conceptual and methodological alignment between system dynamics and value based management, as both concepts perceive and study business activities as systems with interconnected elements, utilizing the methodology of cause-andeffect relationships and feedback loops. The application of system dynamics enhances the traditional analysis of value based management by revealing the structure of a business through the use of feedback loop diagrams, stock and flow variables. The introduction of system dynamics into the analysis and management of value creation is a part of the development and enhancement of the mentioned concept, thus improving the analysis of business operations in general. The application of system dynamics to solve value based management problems is necessary considering the aforementioned reasons, as it can truly enhance the process of managing business entities, enabling not only learning but also a better understanding of system behavior and more effective management of business entities.
Adequate functioning of the supply chain is one of the key prerequisites for successful functioning of business activities within contemporary organizations. Globalisation of business activities, ...related to advances in information technology and its effects on the supply chain activities, may lead to increased risk in any part of the supply chain, especially in terms of the company not being able to optimize its supply chain activities. Failures or inadequacies in any part of the supply chain may result in significant financial or reputational loss for the company. It is therefore crucial for companies to manage its supply chain risks properly. The aims of this paper are: (1) to present a comprehensive overview of literature related to supply chain risk management, based on which aspects of risk management and advances in this area that may be related to supply chain will be evaluated and (2) to give suggestions for improvement and future research in the analysed area. Special accentuation is put on holistic view on risk management in the company, having on mind that this view leads to optimization of risks and adding value to the company.
The purpose of the paper is to present and to explain the method and importance of measuring and determination of the comparative advantages of the national economies. The goal of the paper is to ...determine the priority service sectors of Republic of Croatia in which the strategy of smart specialization should be implemented, targeted on establishing the strong points and potentials on which the state should focus to create national comparative advantages. The indicator of the revealed comparative advantage (RCA indicator) shows that Republic of Croatia realizes positive values of RCA in all service sectors, and the strongest comparative advantages are in the sector of tourism and services related to travelling, which shows, along with the sector of transportation services, the largest percentage in service export. From the above mentioned it is clear that there is a significant correlation between the sectors with the revealed comparative advantages and its percentage in the structure of the export. Aggregated GL index shows that Republic of Croatia realizes the highest level of specialization in the intra-industrial exchange (exchange of the same services) in ICT sector, which is followed by the transportation services, other business services, and the recreational, cultural and sport services. Other service sectors have the features of the inter-industrial specialization. There is a correlation between the level of specialization and export importance of a particular service sector, since the sector of tourism and travel-related services realizes the largest percentage in the export of all services of Republic of Croatia. After the sector of tourism and travel-related services, the construction services are second on the list of value of indicators of the export competitiveness, followed by the ICT services and the services of transport. From the above mentioned, it can be concluded that the priority service sectors, to which Republic of Croatia should focus because of creation of the national comparative advantage, are the sector of tourism, travel-related sector, transportation sector and sector of ICT services.
U našem radu istražujemo financijsku uspješnost reklamnih poduzeća u Republici Hrvatskoj, u ovisnosti o unutarnjim čimbenicima i ukupnim ekonomskim uvjetima. Unutarnji čimbenici odnose se na odabrane ...financijske pokazatelje, a ekonomski uvjeti određeni su makroekonomskom varijablom – Bruto domaćim proizvodom (GDP). Financijski pokazatelji korišteni u ovom istraživanju su: Koeficijent tekuće likvidnosti (CR), Koeficijent zaduženosti (DR) i Koeficijent obrta ukupne imovine (AT). Uspješnost poduzeća mjeri se neto profitnom maržom (NPM). Zamisao ovog istraživanja temelji se na činjenici da određena poduzeća marketinške troškove smatraju investicijom te čak u vrijeme gospodarske krize ne samo da ne smanjuju već povećavaju svoju potrošnju vezanu uz marketinške aktivnosti. Stoga, ako se većina poduzeća ponaša na ovaj način, pretpostavka je da postoji negativna korelacija između Bruto domaćeg proizvoda i profitabilnosti promotivnih poduzeća.
Populaciju ove studije čine sva poduzeća koja posluju u Republici Hrvatskoj, a čija je glavna djelatnost promidžba. Prema Nacionalnoj klasifikaciji djelatnosti (Odredbe NKD-a 2007) spomenuta djelatnost razvrstana je u odjeljak M 73 –Promidžba (reklama i propaganda) i istraživanje tržišta, a ovaj odjeljak uključuje agencije za oglašavanje (M 7311), poduzeća za medijsko oglašavanje (M 7312) i poduzeća za istraživanje tržišta ( M 7320). Financijski pokazatelji za navedena poduzeća mjereni su od 2009. do 2018. Korišten je višestruki regresijski model i analizirani su sekundarni podaci.
Rezultati višestruke regresijske analize pokazuju da DR, CR i BDP imaju značajnu korelaciju s financijskom uspješnošću promotivnih poduzeća; DR i BDP su negativno korelirani, dok je CR pozitivno koreliran s uspješnošću industrije mjerenom NPM -om.
Doprinos ovog rada je dvojak: s jedne strane doprinosi literaturi koja se bavi utjecajem financijskih pokazatelja i makroekonomskih varijabli na financijsku uspješnost, s druge strane doprinosi literaturi koja proučava odnos između troškova marketinga i gospodarske aktivnosti.
Entrepreneurial orientation is a theoretical concept defined by three dimensions: innovativeness, proactivity and risk-taking. Entrepreneurial orientation researchers suggest that entrepreneurial ...orientation is a concept that pervades through all organizational levels of the company (Wiklund and Shepherd, 2005; Wales, Monsen and McKelvie, 2011). Although focus of early research on the concept has been oriented on the company level and its influence on profitability, cotemporary research has put much accent both on research of individual entrepreneurial orientation, as well as on research of entrepreneurial orientation of non-profit companies. Having on mind the fact that contemporary university should be an incubator of practical and applicable knowledge, but also being aware of many practical dimensions related to university management, in this paper we will focus on investigating whether there is a rationale for incentives for universities and students to be more entrepreneurially oriented by systematizing the findings of research papers whose focus has been on measuring individual entrepreneurial orientation of students and on researching different dimensions of entrepreneurial orientation of universities.
Nowadays banks operate in changing environment influenced by regulatory requirements, emerging risk types and competition on the market. At the same time banks have available large datasets arising ...from internal and external sources. The potential for this data usage in risk management has only recently been discovered and has not been the subject of extensive scientific research. There are two goals of this paper. Firstly, authors give an overview of available scientific literature and practical research related to big data usage in risk management in banks. Secondly, based on the literature review authors are presenting framework with specified detailed use of big data in specific key risk management areas. Expected contribution of this paper is in presenting framework that can be used for practical purposes in banking industry as a matrix for using big data in certain risk management area. Second expected contribution is in increasing scientific public awareness on the topic and on the potential of research in the field of big data technologies usage in risk management in banks.
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