- Vol. 9, Issue 3, 2024

Vol. 9, Issue 3, 2024

The Role of Information and Communication Technology (ICT) and FDI on South African Economic Growth

Page: 413
Authors: Thomas HABANABAKIZE, Mulatu ZERIHUN
Abstract: Information, communication, technology (ICT) and foreign direct investment plays a substantial role in various spheres of social and economic development. Therefore, changes in these variables can significantly impact a country’s economy. The current study aims to assess the implication of information and communication technology (ICT) and FDI on South African economic growth. To achieve this objective, the autoregressive distributed lag (ARDL) model and Error Correction Model (ECM) were applied to time series data over the period 1991 to 2021. Findings obtained from econometric modelling and analysis indicate that besides the positive effect of FDI on South African economic growth, all the analysed components of ICT namely mobile phone subscriptions, fixed phones, and internet subscriptions are drivers of economic growth in South Africa. Based on the findings, from the policy perspective, it was suggested that South African economic authorities increase and improve investment in the ICT infrastructure while also attracting more foreign investors. Additionally, to benefit from FDI and ICT’s drivers of economics, policymakers should endorse policies and strategies that enhance economic openness and the ICT’s resource allocation.
JEL Classification: C33, O30, O47
Keywords: digitalisation, economic growth, FDI, ICT, South Africa.
DOI: 10.24818/mer/2024.03-01

Assessment of Adequacy of Product Appearance Attributes to the Design Objective

Page: 427
Authors: Andrei DUMITRESCU
Abstract: A new method for assessment of product aesthetics („Assessment of adequacy of product appearance attributes to the design objective and to values of market segment”, Adequacy Method, in short) was developed by the author. The method is based on the need to assess product aesthetics against the design objective and the human values / goals of the target market segment. In a pre-test, eight products (from four classes) with the most different design were chosen for testing the method. Then, in an experimental study, the products were assessed using the proposed method by students from a technical university. After statistically analysing the assessment results, it was found that the method criteria and the method itself proved to be reliable, efficient, and clear. The proposed method was also tested by comparison with a complex method (FTESE – Functional, Technical, Ergonomic, Significance and Esthetic Analysis). The same products used in the paper presenting the FTESE method were assessed using the proposed method and lead to the same ordering of products according to their aesthetics. But the comparison also indicated that the proposed method allows for a superior refinement.
JEL Classification: L60, M31
Keywords: design assessment, evaluation method, product appearance, product aesthetics
DOI: 10.24818/mer/2024.03-02

Detecting the Influence of ETF Performance – A Case Study of China

Page: 439
Authors: Tzu-Yi YANG, Ssu-Han CHEN, Hsiao-Hui HSU, Ping ZHANG, Hong-Yu LIN
Abstract: As international capitals keep flowing into Asia, in particular China, it experienced rapid development on both economy and financial market during the last three decades. While more and more financial products are introduced, the government also loosens the leash on investment, so that the approaches to investment in the Chinese market are diversified enough to attract more and more investors to invest in it. This study will thus explore in depth what have affected Chinese ETF performance. For empirical analysis, the daily data on total ETF transactions and related economic indices during a period from February 24, 2005 to December 31, 2015 were used with multiple regression models. Our findings indicated that the amount of international capital inflow to China, the stock market, and interest rates affected the investment performance of Chinese ETFs.
JEL Classification: E10, E19, E60
Keywords: ETF, international capitals, China, stock market
DOI: 10.24818/mer/2024.03-03

Comparative Analysis of Trade Performance between the European Union and Serbia using AHP-DNMA Method

Page: 453
Authors: Radojko LUKIC
Abstract: This study aims to conduct a comparative analysis of the key performance indicators of trade between the European Union (EU) and Serbia. The AHP-DNMA method is used here. The results are as follows: the trade of France is in the first place. Next: Germany, Spain, Italy, the Netherlands, etc. The trade of the leading countries of the European Union is well positioned for performance. The trade of Croatia is positioned in twenty-second place in terms of performance. Slovenia’s trade is positioned in the twenty-third place in terms of performance. The trade performance of Croatia is better than that of Slovenia. According to performance results, she is in twentieth place. It is in a better performance position compared to the trade of Croatia and Slovenia. Adequate control of key factors is a function of achieving target performance.
JEL Classification: L81, M31, M41, O32
Keywords: performance, factors, Serbian trade, AHP-DNMA method.
DOI: 10.24818/mer/2024.03-04

Investment Management as a Mechanism for Economic Diversification in the Kingdom of Saudi Arabia: between Opportunities and Challenges – Analytical and Foresight Study 2030 Vision

Page: 470
Authors: Meriem TOUATI, Mohamed Ali SAAD
Abstract: Investment plays an increasing role in promoting economic diversification, and this only succeeds if it is managed effectively. Economic diversification is a crucial feature of supportable progress, as divergence improves economic steadiness and support to surge GDP and encourages organisational and long standing change not only in the budget but also in extra columns of expansion such as communal establishments and proportions. Nevertheless, there is no accord on the consequences in the literature review for the reason that of several influences, for example the employment of dissimilar variable quantity, methods, KSA countries, and time periods. Thus, this work provides detailed insight into the current and future trends and shifts of the Saudi economy. The paper conducts a measurement and analysis of the Saudi economic diversification in light of Vision 2030, the findings of which are used to develop and propose a study framework for developing a dynamic economy.
JEL Classification: E22, O11
Keywords: Investment Management, Economic diversification, GDP diversification, Continuous economic expansion, KSA.
DOI: 10.24818/mer/2024.03-05

Entrepreneurial Value Proposition Proficiency Diagnosis: A KAP Model Dimension

Page: 483
Authors: Ishmael Obaeko IWARA
Abstract: The persistently high attrition rates of small, medium, and micro enterprises in most economies globally hinge significantly on challenges stemming from lack of business dynamism and intense competition. This study explores the entrepreneurial proficiency of entrepreneurs in value proposition skills, a pivotal resource in mitigating homogeneity-related business failures. Utilising the KAP framework, variables within knowledge (awareness, comprehension and competence), attitudes (perception, intention and consistency), and practices (target audience, differential offerings and customer value) were scrutinised across cohorts (gender, location and support status). Through a non-parametric analysis of a data structure obtained from conducting a 5-Likert type scale survey with 648 entrepreneurs, the findings explain that while awareness of the value proposition is notably high across respondents, supported entrepreneurs outshine their unsupported counterparts. Comprehension and competence, however, exhibit comparatively lower values, particularly among unsupported entrepreneurs and despite a positive perception, the intention and consistency levels regarding the value proposition concept are sub-par across all groups. In terms of practice, factors such as target audience and differential offerings, are below average, emphasising the need for strategic and pragmatic interventions. The result indicates an overall deficiency in value proposition proficiency, stressing targeted soft and hard entrepreneurial skills interventions to foster not only value proposition acumen but market positioning, entrepreneurial resilience and enterprise efficacy in the competitive business landscape.
JEL Classification: D4, M21, Q2, O31, R2
Keywords: Business dynamism, entrepreneurship efficacy, KAP framework, market positioning, stiff competition, sustainable SMMEs, Value proposition proficiency
DOI: 10.24818/mer/2024.03-06

Impact of Organisational Innovation on Sustainable Competitive Advantage of Manufacturing Firms in Lagos State, Nigeria

Page: 507
Authors: Abdul-Hameed Adeola SULAIMON, Chinenye Anthonia ONYEMAOBI, Christopher Idemudia EBEGBETALE, Taofeek Olalekan GBADAMOSI, Oladimeji Charles FAJIMOLU
Abstract: The increased level of competition in the current business climate required the implementation of processes and systems to guarantee a sustainable organisational competitive advantage for the benefit of stakeholders. This research evaluates the association between product innovation and manufacturing firms’ sustainable competitive advantage, determine the effect of process innovation on manufacturing firms’ sustainable competitive advantage, examine the influence of administrative innovation on manufacturing firms’ sustainable competitive advantage and ascertain the joint relationship between product, process, and administrative innovation on manufacturing firms’ sustainable competitive advantage. Descriptive research design was adopted and a sample size of 131 manufacturing firms was used for the analysis. Data were collected using a questionnaire and analysed using regression analysis with the aid of SPSS Version 25. The findings showed that product innovation (β = .524, p < .005) process innovation (β = .417, p < .005) and administrative innovation (β = .488, p < .005) significantly influenced firm sustainable competitive advantage, individually and jointly. The research concludes that manufacturing organisations should prioritise innovation in their strategic plans. This study suggests ongoing product improvement through process and administrative adjustments and a culture of innovation and experimentation to find new sources of competitive advantage and create sustainable value.
JEL Classification: M1, O31
Keywords: Administrative innovation, Organisational innovation, Product innovation, Sustainable competitive advantage
DOI: 10.24818/mer/2024.03-07

Promoting Innovation in Public Organisations: An Analysis in a National Public Institution in Algeria

Page: 525
Authors: Hemza GUERNOUB
Abstract: Organisational innovation has become a critical factor for the survival and competitiveness of public-sector organisations. This form of innovation entails the introduction of new ways of doing and organising work that aimed at enhancing the organisation’s capacity to achieve its objectives. The aim of this study is therefore to explore the conditions that stimulate the development of organisational innovation in the context of a national public institution experiencing transformation and modernisation in Algeria. More specifically, our aim is to identify the internal and external conditions that facilitate the emergence of innovation, using a descriptive and analytical approach based on qualitative data collection (interviews and observations). The results of this work show that innovation is not isolated in the organisation, but is influenced by the organisation’s internal and external environment. This environment exerts pressure but also provides the conditions and the opportunities for innovation. The existence of a clear development strategy and project-based working structures provides a favourable context for innovation. Innovation is also a collective phenomenon, arising from the contribution of all key people in the organisation and the mobilisation of collective capacities through the role of leadership and the organisational support. Public organisations must therefore pay particular attention to these aspects in order to create value and innovate in their practices and remain competitive in an increasingly turbulent environment.
JEL Classification: L32, O31, O35
Keywords: Innovation, Leadership, Project Structure, Public Organisation, Strategy
DOI: 10.24818/mer/2024.03-08

Artificial Intelligence’s Level of Development and Influence on the Automotive Supply Chain in Europe: A Case Study on Audi

Page: 536
Authors: Gabriela CĂLINESCU, Elena-Simona IONEL
Abstract: Over the last few years, many factors have transformed the automotive supply chain in Europe. This paper addresses some of the issues that challenge this supply chain and discusses artificial intelligence’s implementation benefits, such as the elimination of bottlenecks, gaining an advantage on the procure-to-pay system of the automotive supply chain, and the automatic read of invoices. Qualitative methodology was used to analyse the information gathered within this study, using in depth literature review and checking important releases on this subject in scientific papers available, focusing also on the Audi case study that shows real application of artificial intelligence technology into their manufacturing process and the opportunities to further apply this in Europe. Major changes in European automotive supply chains are underway as a result of the adoption of artificial intelligence, not only solves existing problems but calls for advanced algorithms to be developed to meet new demands. The implementation of artificial intelligence needs to follow ethics, and in some cases needs human supervision. The use of artificial intelligence has both advantages and disadvantages. Some are analysed in this article and the important role of Germany as a pioneer in using artificial intelligence effectively in the automobile industry is emphasized by a case study on Audi.
JEL Classification: O31, L62
Keywords: Artificial intelligence, supply chain management, structural shift, automotive industry, Audi
DOI: 10.24818/mer/2024.03-09

Ethical Theories Applied in the Field of Tourism

Page: 544
Authors: Ionuț-Emilian ANASTASIU, Loredana-Cornelia BOȘCA, Silviu-Gabriel BACIU
Abstract: The paper aims to synthesise the main ethical theories that can be applied in any economic area in general and in the tourism field in particular. It is widely believed that each economic sector in which human interaction is principal, has a moral side. This moral side is translated into tourism through concepts such as ethical tourism, responsible tourism, and sustainable tourism. Three main ethical theories are described from a philosophical perspective. They can be applied in a concrete manner to real tourism processes and activities and will enable clarification of key concepts that form any applied ethics expert’s tool: values, principles, standards, ethics, and/or codes of conduct, etc. In the last part of the paper, among the main conclusions, future research directions are detailed.
JEL Classification: Z30, Z39
Keywords: ethical tourism, kantian theory, responsible tourism, sustainable tourism, utilitarian ethics, virtue theory
DOI: 10.24818/mer/2024.03-10

Conative Dimension of Attitude: An Investigation on Student Influencing Stimuli in Decision-Making Processes

Page: 556
Authors: Ion-Dănut LIXANDRU, Daniel Nicolae MĂIȚĂ, Darko SHULESKI
Abstract: This paper investigates various stimuli that influence students’ expressed choice of university, including physical, psychological, social, and virtual factors. Using a combination of survey research and statistical analysis, the study examines the role of these factors in shaping students’ decisions and provides information on the decision-making process. The findings suggest that the support provided through the Virtual Factors is of considerable value for the students when making one of the most important decisions regarding the university to enrol to. Using the Kruskal-Wallis test, it emerges that there are some persistent gender concordances on price perception, study programme’s features, and even family effects. Using a sample of 828 respondents, the present research takes and adds a new angle by examining the effects of these dimensions on the conative aspect of the attitude and describes a behavioural orientation based on the ranking of these factors. This study advancement will be therefore directed to the completion of these factors as well as the ongoing research regarding the factors on how to change the attitudes of students on university study programmes, and thus the selection of these programmes.
JEL Classification: I21, I23, I25, M31, O33, P46
Keywords: social factors in decision-making conative dimension, attitude, behaviour, higher education
DOI: 10.24818/mer/2024.03-11