ECONOMICS - INNOVATIVE AND ECONOMICS RESEARCH JOURNAL

GREEN HRM AS A MEDIATOR: STRATEGIC MANAGEMENT ACCOUNTING AND ENVIRONMENTAL PERFORMANCE IN THE JORDANIAN INDUSTRY

Munther Al-Nimer — Fri, 16 May 2025 00:00:00 +0000

Amid escalating global environmental pressures, this study examines how Strategic Management Accounting Practices (SMAPs) enhance environmental performance in Jordan's industrial sector. Green Human Resource Management (GHRM) serves as a crucial mediator. Drawing on contingency theory, we propose that SMAPs—including environmental cost analysis and lifecycle budgeting—require complementary GHRM mechanisms to transform technical accounting data into sustainable outcomes. Data from 180 professionals across 53 manufacturing firms, analysed via Smart PLS-SEM, reveal that GHRM fully mediates the relationship between SMAPs and environmental performance. Green policy alignment emerged as the most influential mediator, while diminishing returns in green adaptability and employee involvement at lower levels of SMAPs adoption suggest threshold effects. This study advances contingency theory by empirically validating GHRM's role as a sociotechnical bridge between accounting systems and ecological outcomes. For practitioners, the results necessitate the integration of SMAPs with targeted HR interventions, such as sustainability-linked training and cross-functional green teams. This alignment enhances compliance and operational efficiency for Jordan—a water-scarce economy facing stringent environmental regulations. While cross-sectional data and perceptual measures limit causal claims, this research provides a validated framework for emerging economies. Future studies should employ longitudinal designs to assess GHRM's evolving impact during sustainability transitions and explore cultural moderators in Arab collectivist contexts. This work bridges environmental accounting and HRM scholarship, demonstrating that technical systems require human-centric mechanisms to operationalise sustainability.

GREEN GROWTH IN SCANDINAVIA: ASSESSING THE ROLE OF ENVIRONMENTAL TAXATION, GREEN INNOVATION, TRADE, AND URBANIZATION IN ADVANCING CLEAN ENERGY CONSUMPTION

Mon, 01 Sep 2025 00:00:00 +0000

The research analyses the drivers of clean energy use (CEU) in Scan-

dinavian countries by assessing the influence of environmental taxa-

tion (ETR), green innovation (GRI), trade openness (TRD), economic

growth (ECG), and urbanization (URB). In exploring these relation-

ships, the research is mainly theorized within the Energy Transition

Theory and Environmental Kuznets Curve (EKC) hypothesis frame-

work while employing panel data from 1990 to 2023 and advanced

econometric tools. Results show that while GRI and ECG significant-

ly contribute to adopting clean energies, the URB process enhances

CEU through improved infrastructure and technology adoption. It

reveals that environmental taxation has an adverse short-term impact

by raising energy costs, while trade openness yields ambiguous re-

sults. The study confirms the theoretical frameworks and highlights

the interplay among socio-technical and economic dimensions as crit-

ical enablers and barriers for energy transitions. Thus, environmental

taxation should be complemented with subsidies, more significant in-

vestments in green innovation should be made, and economic growth

should be used to ensure clean energy infrastructure and clean energy

in urban planning. These findings provide actionable strategies to fast-

track clean energy transitions in Scandinavia and beyond, thus ensur-

ing economic growth and harmony with environmental sustainability.

EXPLORING THE IMPACT OF GREEN BEHAVIOUR ON ORGANIZATIONAL GREEN PERFORMANCE: THE MEDIATING ROLE OF GREEN TRAINING PROGRAMS AND GREEN COMPENSATION IN VIETNAM’S ENERGY SECTOR

Sahilali Saiyed, Mustaqim Roshid, Vimal Kumar, Quoc-Hieu Phan — Mon, 01 Sep 2025 00:00:00 +0000

The research investigates how green behaviour affects organizational green performance in the Vietnamese energy sector by analysing green training programs and green compensation practices as potential mediation elements. The sample of 826 respondents from energy-based organizations shows that green behaviour produces substantial positive effects on organizational green performance through analysis with Partial Least Squares Structural Equation Modelling. The results demonstrate that green compensation practices establish an essential intermediary bridge by uniting employee rewards with sustainability targets to boost the power of green conduct towards organizational success. Green training programs do not demonstrate a notable impact on mediation thus requiring evaluation of their present design and execution methods. The research demonstrates that reward systems represent vital driving forces behind sustainable actions and it provides practical lesson plans for training enhancements. The study enhances knowledge about how green human resource management approaches help organizations achieve sustainability objectives.

DIGITAL INNOVATION AND ENTREPRENEURIAL SUCCESS IN THE PHILIPPINE MSME SECTOR: CHALLENGES AND OPPORTUNITIES

Mon, 01 Sep 2025 00:00:00 +0000

While digital tools are becoming more accessible in emerging econ-

omies, MSMEs in the Philippines are still unable to adopt them. The

study aims to examine how digital innovation can help in the entre-

preneurial success of the Philippine MSME sector by identifying the

barriers and opportunities in digital adoption. Mixed-method approach

of surveying MSME owners and interviewing industry experts. The

survey was designed to determine how digital adoption. What types of

digital tools are being used, and what barriers are perceived. Data anal-

ysis used statistical methods and thematic analysis. The findings indi-

cate that while the MSMEs are becoming more digital embracing social

media marketing, digital payment systems, and other digital tools, they

have not leveraged the adoption of more advanced technologies such

as cloud computing and ERP systems. To identify the leading obstacles

to digital adoption, the first three were identified: cultural resistance,

lack of technical expertise, and financial constraints. Other issues that

prevent digital transformation from taking off in regional terms include

infrastructure and regulatory issues. The study highlights the need for

policy interventions and capacity-building programs, emphasizing

changes in digital adoption barriers facing MSMEs. It is suggested that

more access to digital tools at affordable prices, training, and raising

awareness on the importance of digital innovation. Further research on

longitudinal studies, industry-specific research, and cross-country re-

search will be needed to better understand the effect of digital adoption

on MSME performance.

THE THRESHOLD EFFECT OF EXCHANGE RATE ON ECONOMIC GROWTH IN BRAZIL, RUSSIA, INDIA, CHINA AND SOUTH AFRICA (BRICS) COUNTRIES

Ireen Choga, Goitsemodimo Abel Molocwa — Mon, 01 Sep 2025 00:00:00 +0000

The growth of any economy is pivotal to its development and sustainability. Achieving this kind of feat depends on various factors that include but are not limited to exchange rates. This article examines the threshold effect of exchange rates on economic growth in BRICS countries from 1994 - 2022. The paper employed the Panel Threshold regression model to explore the threshold effect of exchange rates on economic growth in BRICS countries across different regimes (lower regime or upper regime). The findings of this study confirm that economic growth exhibits a positive relationship with exchange rate appreciation in the lower regime (EXCH < 5.164), while exchange rate depreciation in the upper regime (EXCH > 5.164) has a negative impact on growth. Moreover, when the exchange rate depreciates beyond the threshold in the upper regime, the negative effects extend to other control variables such as inflation rate, interest rate and trade openness, further constraining economic growth. These insights provide valuable guidance for BRICS nations and similar economic blocs in formulating more effective monetary and exchange rate policies and choosing the most appropriate exchange rate regime, which can be leveraged by the New Development Bank to enhance economic stability and resilience. This study underscores the significant influence of exchange rates on economic growth in BRICS countries, providing valuable insights for policymakers to refine strategies during excessive exchange rate depreciation. It is one of the few analyses employing the PRT to investigate the threshold effects of exchange rates on growth and the first to do so specifically within the BRICS context

EFFICIENCY ANALYSIS OF REGIONAL GOVERNMENT EXPENDITURE ON DEVELOPMENT: EVIDENCE FROM INDONESIA

Paidi, Sirojuzilam, Suwardi Lubis, Agus Purwoko — Mon, 01 Sep 2025 00:00:00 +0000

Regional governments are expected to be able to focus more on im-

proving the welfare of the community in optimizing government ad-

ministration in each region. This study aims to identify the factors

that influence regional development as indicated by the human devel-

opment index in that region. This study analyzes the efficiency level,

productivity level, trade openness, degree of fiscal autonomy (DFA),

and democracy on regional development in Indonesia during the peri-

od 2016-2020. The effectiveness and efficiency of government budget

functions were evaluated using Data Envelopment Analysis. The re-

search model was evaluated using panel data regression with E-views.

Trade openness and Indonesian Democracy Index have a positive and

insignificant effect on Regional Development. The Degree of Fiscal

Autonomy has a negative and insignificant effect on Regional De-

velopment. Thus, the government needs to focus on the efficiency of

budget use and democracy in its region in order to optimize regional

development. This research also indicates that the level of the Degree

of Fiscal Autonomy in a region must be managed properly. DFA that

is too high can reduce the achievement of regional development in

general. Thus, governments have to pay attention to elevate the degree

of fiscal autonomy given to each region to spur economic growth.

UNRAVELING THE ASYMMETRIC DYNAMICS OF OIL PRICE SHOCKS AND MARKET VOLATILITY ON STOCK RETURNS: EVIDENCE FROM NARDL PANEL APPROACH

Tarek Sadraoui, Mohamed Neffati, Wafa Achour — Mon, 01 Sep 2025 00:00:00 +0000

This study explores the asymmetric oil price shock dynamics, market volatility, liquidity shock, and stock returns in a panel of nations during the period 2000-2024. Using the Nonlinear Autoregressive Distributed Lag (NARDL) panel method and application of robust econometric techniques, we explore the impact of changes in oil prices on market volatility, erode liquidity levels, and subsequently influence stock returns. We show that our findings are associated with large asymmetries, whereby stock returns respond more to the rise than fall in oil prices, and that market volatility increases during periods of negative shock. We find that increased volatility also amplifies liquidity shocks so that risk premiums rise and stocks return less. We also discuss regional differences as well as how macroeconomic conditions moderate these channels. The evidence highlights liquidity as a principal mechanism of transmission from volatility to the performance of the stock market and indicates its role in determining global equity returns. The study contributes to financial market behavior knowledge and provides valuable implications for policymakers and investors with a requirement to work through periods of economic uncertainty.

CREATIVE ECONOMY AT THE NEXUS OF INNOVATION, DIGITALIZATION AND EDUCATION: ARDL AND NARDL APPROACH FROM KAZAKHSTAN

Mon, 01 Sep 2025 00:00:00 +0000

The purpose of the research work is to assess the indicators of innova-

tion, digitalization and knowledge that have an impact on the creative

economy. For this purpose, the following indicators were analyzed: to-

tal GVA for the creative industry, the share of GVA for the creative in-

dustry in GDP, government expenditure on education, research and de-

velopment expenditure, information technology exports, internal R&D

costs by branches of science, the volume of innovative products (goods,

services), and the share of innovative products (goods, services). The

data covers the period 2004-2022 and is taken from global and domes-

tic data sources. In order to obtain comprehensive results of the study,

two models were used: Linear Autoregressive Distributed Lag (ARDL)

and Non-Linear Autoregressive Distributed Lag (NARDL). According

to the results of the model, indicators with linear and nonlinear effects

in the long and short term were identified. The practical significance

of the study lies in the finding that the negative impact of internal Re-

search and Development indicates the need to strictly monitor the prog-

ress and results of funds allocated to this sector and scientific projects.

Although government spending on education has negative effects in

the short term, it has positive effects in the strategic long run. It is im-

portant to highlight that for Kazakhstan, it is high priority to support

creative economy sectors that have practical importance and result in

production. The study also adds new empirical evidence and extends

the existing literature on the creative economy.

ECONOMIC TRANSFORMATION IN THE DIGITAL AGE: THE NEXUS BETWEEN LEARNING AND INNOVATION

J C Pavithra, Mohana Sundari V — Mon, 01 Sep 2025 00:00:00 +0000

This research examines the implications of new generation digital learning technologies for the transformation of skill formation and economic outcomes under a now-ubiquitous educational environment. It adds them to the background of establishing interdependencies of adaptive learning technologies, digital learning platforms, and learning design innovation as contributory and crucial determinants outcome as economic impact with mediating role of skill acquisition and moderating role of socioeconomic status. Convenience sampling method is used to conduct a self-questionnaire based survey on social media channels and subsequently applied structural equation modelling on the responses of 377 individuals. The study established that of adaptive learning technologies, digital learning platforms and learning design innovation improved learning outcomes dramatically through experience as well as democratization. Results showcased the importance of innovative learning design in enhancing organizational performance and learning effectiveness. Indeed, digital learning platforms can be harnessed to strengthen learning in educational institutions pursuance of knowledge sharing, skill development and improving development in the economy. This research supports the understanding of the change dynamics of digital learning and inspires educational institutions and policymakers alike to adjust and survive against an increasingly digital educational landscape.

FINANCIAL DEVELOPMENT, TECHNOLOGICAL INNOVATION, AND ENVIRONMENTAL DEGRADATION: EVIDENCE FROM LOWER-MIDDLE-INCOME COUNTRIES IN ASIA

Ngoc Toan Bui, My-Linh Thi Nguyen, Bao-Chau Xuan Nguyen — Mon, 01 Sep 2025 00:00:00 +0000

This study analyzes the causal relationship between financial develop-

ment and technological innovation, considering their impact on envi-

ronmental degradation. The data sample covers nineteen lower-mid-

dle-income countries in Asia over the period 2000-2021. By using

the panel vector autoregression (PVAR), the authors demonstrate the

close relationship between financial development and technological

innovation. Specifically, technological innovation fosters financial

development in both the short and long term, while the latter plays a

vital role in driving the former over the long term. Furthermore, finan-

cial development is reported to worsen environmental degradation in

these countries in both the short and long run. These findings imply

that while financial development provides essential financial resourc-

es for technological innovation, it may also contribute to environmen-

tal degradation by stimulating business activities, investment, and

energy consumption. Meanwhile, technological innovation promotes

financial development but has not significantly improved the ability

to mitigate environmental degradation in these countries. These find-

ings align with the characteristics of lower-middle-income countries,

where financial resources for business expansion and technological

innovation are prioritized, but measures to stop environmental deg-

radation remain limited. In light of the findings, the study provides

recommendations for governments and policymakers in these econo-

mies, emphasizing the need to promote financial development coupled

with minimizing environmental degradation, particularly by further

innovating technology to achieve substantial environmental benefits.

THE EVOLUTION OF FINANCIAL ANALYSIS: FROM MANUAL METHODS TO AI AND AI AGENTS

Zornitsa Yordanova, Yanko Hristizov — Mon, 01 Sep 2025 00:00:00 +0000

Purpose: This study examines the transformation of financial deci-

sion-making through the adoption of artificial intelligence, focusing

on the shift from conventional AI systems to AI agents and agentic AI.

It differentiates between automated analytical tools and autonomous,

goal-oriented systems that increasingly assume decision-making au-

thority within financial operations.

Design/Methodology/Approach: Employing a qualitative multi-meth-

od approach—comprising semi-structured expert interviews, industry

report synthesis, in-depth case studies, and a comparative performance

evaluation—this research investigates AI agent implementation

across SMEs, pharmaceutical analytics, and ERP-integrated corpo-

rate finance. Theoretically, it extends foundational models including

the Efficient Market Hypothesis (EMH), Behavioral Finance, and the

Adaptive Markets Hypothesis (AMH) by embedding the dynamic,

learning-driven nature of AI agents into financial decision logic.

Findings: The results indicate that AI agents introduce novel forms

of informational asymmetry, enhance bias mitigation through adaptive

modeling, and give rise to emergent decision structures via multi-agent

interactions. These dynamics challenge core assumptions of market ra-

tionality and static efficiency. Practically, the study offers a structured

framework for AI agent integration, emphasizing explainability, hy-

brid human-AI governance, and risk-specific safeguards to navigate

ethical and regulatory constraints. The proposed conceptual taxonomy

and cross-industry implementation roadmap reposition agentic AI as a

strategic transformation—reshaping how financial institutions process

data, execute judgments, and regulate algorithmic autonomy.

PUBLIC FINANCIAL SUPPORT AND INBOUND OPEN INNOVATION IN DEVELOPING ECONOMIES: EVIDENCE FROM MOROCCAN FIRMS

Mohamed Hosni, Hicham Ouakil, Houda Lechheb — Mon, 01 Sep 2025 00:00:00 +0000

The objective of this study is to quantitatively examine the impact of

public financial support (PFS) on the adoption of inbound open inno-

vation (IOI). The study is based on data from the World Bank survey

of 1,096 Moroccan firms (WBES, 2020). Inbound open innovation

is measured by two indicators, namely the acquisition of external

knowledge and the use of licensed foreign technologies. Given the

nature of the data, we apply two complementary methods to control

for the potential endogeneity problem associated with access to pub-

lic funding: logistic regression and propensity score matching (PSM).

The results show that firms benefiting from public financial support

are more likely to adopt inbound open innovation (IOI), i.e., the ac-

quisition of external knowledge and the use of licensed foreign tech-

nologies. This result highlights the strategic role of public innovation

policy, particularly public financial support, in supporting innovation

in developing countries (DCs). Our study concludes that targeted fi-

nancing mechanisms can strengthen the absorptive capacity of com-

panies, particularly in contexts where private investment in research

and development (R&D) and technological knowledge remains lim-

ited. This can generate positive spin-offs not only for companies ben-

efiting from public financial support (PFS), but also for the economy

as a whole, by improving productivity, boosting competitiveness, and

helping to bridge the technology gap with advanced countries.

THE IMPACT OF DIGITAL ECONOMY ON GREEN GROWTH IN THE KINGDOM OF SAUDI ARABIA

Mohamed Neffati, Imen Khemiri — Mon, 01 Sep 2025 00:00:00 +0000

In the background of the rapid development of the digital economy,

Saudi Arabia is facing an imperative necessity to transition to green

and sustainable growth from traditional growth patterns, as per its Vi-

sion 2030 ambitions. This study examines how the digital economy

impacts green growth in Saudi Arabia during 1996–2022, addressing

both environmental sustainability and inclusive development. The

study uses reliable data from international sources such as the OECD,

WDI, and Heritage.org, and applies cointegration tests along with

Bayesian methods to estimate a vector autoregression model (BVAR)

to investigate the relationships between digitalization (DESI), trade,

corruption, and population growth in relation to green growth.

The empirical findings strongly support the hypothesis that digitali-

zation significantly contributes to green growth in the long term, pri-

marily by inducing structural transformation and greater sustainabil-

ity. DESI emerges as a strong and growing determinant, explaining

14.24% of variation in green growth in the long run—just after trade.

Historical decomposition also highlights that the positive impact of

digitalization was most prominent between 2005 and 2015, matching

a global digital shift. The analysis also gives interpretative proof of the

role of the digital economy in inclusive green growth as better gover-

nance and less corruption appear to mediate this relationship.

The evidence confirms that while digitalization has giant potential to

drive green growth, the success will lie in mainstreaming sustainabil-

ity in digital policy, green investment in technology, and the align-

ment of trade and labour policies with green priorities. Policymakers

should ensure that digital transformation is accompanied by proper

institutional reforms and inclusive planning to realize an equitable and

sustainable green transformation in Vision 2030.

HUMAN DEVELOPMENT, INSTITUTIONAL QUALITY, AND FINANCIAL DEVELOPMENT: EVIDENCE FROM MIDDLE-INCOME COUNTRIES

Thi Anh Nhu Nguyen — Mon, 01 Sep 2025 00:00:00 +0000

Contrasted sharply with a large cohort of studies on financial devel-

opment in developed and developing countries, research observed

particularly in middle-income countries is uncommon. Accordingly,

this research explores the effect of human development and institu-

tional quality on financial development in 84 middle-income coun-

tries from 2004 to 2022. Furthermore, it examines the impact of the

interaction between six indicators of institutional quality and human

development on financial development. In this research, financial

development is captured in two core sectors of the financial system,

namely financial institutions and financial markets. The baseline re-

sults estimated by difference-GMM indicate that human development

positively influences financial development regarding financial in-

stitutions. However, this factor negatively affects financial develop-

ment regarding financial markets. When institutional quality interacts

with human development, it could amplify the impacts on financial

development. Specifically, better institutional quality regarding law

and government effectiveness could promote financial development

in both financial institutions and markets, while control of corruption

shows a non-significant link. Findings from this research contribute

meaningful evidence to design policies inducing financial develop-

ment in middle-income countries.

THE IMPACT OF DIGITAL HRM IMPLEMENTATION ON PUBLIC SECTOR PERFORMANCE: A QUANTITATIVE ANALYSIS OF SERVICE DELIVERY EFFICIENCY

Mon, 01 Sep 2025 00:00:00 +0000

This study investigates the extent to which digital HRM systems are

implemented in public sector organizations and the assessment of the

effectiveness of technology in enhancing organizational performance.

Through quantitative analysis of survey data from managers (n=25),

HR professionals (n=50), and employees (n=70), the research exam-

ines implementation success factors and their impact on service de-

livery. Findings reveal optimal ROI at moderate budget allocations

(10-14%) and a strong correlation between implementation effective-

ness and service quality (β=0.4058, p=0.001). Departments obtained

between 19.8% and 25.1% increase in efficiency with system usability

proved to have a strong positive correlation with perceived system use

(r = 0.96). The study makes multiple theoretical and practical con-

tributions by presenting proven implementation strategies and intro-

ducing the efficiency ratio to assess digitalization effectiveness in the

public sector.

THE ROLE OF DIGITAL INNOVATION BEHAVIOUR, EMPLOYEE SATISFACTION AND WORKFORCE AGILITY ON EMPLOYEE PERFORMANCE DURING DIGITAL ERA

Calen, Yusuf Ronny Edward, Thomas Sumarsan Goh, Nagian Toni — Mon, 01 Sep 2025 00:00:00 +0000

The purpose of this study is to analyze the relationship between digital

innovative behaviour variables and employee performance, the rela-

tionship between job satisfaction variables and employee performance

and analyze the relationship between workforce agility variables and

employee performance. The strategy used in this study is associative.

An associative strategy is a research strategy used to determine the re-

lationship between two or more variables. The research method used

in this study is a quantitative approach. In this study, a purposive sam-

pling technique was used because the sampling was taken with certain

considerations or criteria that must be met. The data collection meth-

od in this study was carried out by distributing online questionnaires

through social media. The respondents in this study were 432 manu-

facturing managers in Indonesia. The scale used to measure is a scale

with an interval of 1 - 5, from strongly disagree to strongly agree.

In measuring respondent answers, filling out the questionnaire was

measured using a Likert scale. The data collection technique in this

study used a questionnaire by providing several written statements

addressed to the respondents and then answered. Structural equation

modelling which is often called Partial Squares Structural Equation

Modeling (PLS-SEM) with SmartPLS version 3.0. The results of this

study show that innovative supply chain behaviour has a positive and

significant relationship to performance, Job satisfaction has a signif-

icant positive influence on employee performance, and workforce

agility has a significant positive influence on employee performance.

ANALYZING THE ADOPTION OF GREEN TAXI SERVICES: A MULTI-STAKEHOLDER PERSPECTIVE

Nguyen Hoang Phu, Ma Van Khoi, Tran Thi Khanh Linh, Nguyen Huynh Cam Tu — Mon, 01 Sep 2025 00:00:00 +0000

This study explores the relationship between three dimensions (Environmental, Social, and Economic) and consumers' intention to adopt green taxis from the perspective of different stakeholders. Utilizing the Triple Bottom Line theory, the study investigates the Environmental Behavioral Intention of consumers. Consumer data was collected using a purposive sampling method, involving over 200 consumers. Additionally, 10 experts, including researchers and managers, were invited for interviews. A hybrid approach, combining Partial Least Squares Structural Equation Modelling (PLS-SEM) and multi-criteria decision-making techniques, specifically the Best-Worst Method (BWM), was employed to identify the key factors driving green taxi adoption in Vietnam. Ten hypotheses were proposed, and the results confirmed 4 out of the 10 hypotheses. The findings reveal that consumers are primarily influenced by Environmental Attitudes, Media Influence, Perceived Comfort, and Travel Time Period. In contrast, managers focus predominantly on economic factors, demonstrating a negative mindset by prioritizing economics over environmental and social dimensions, which might lead to green washing behavior. Meanwhile, researchers emphasize environmental concerns. These disparities highlight inconsistencies among stakeholders, underscoring the need for collaborative strategies that align priorities and foster the adoption of green taxi services. The government should educate the public about the negative consequences of conventional vehicles, including global warming, environmental pollution, and dependence on fossil fuels. Also, having sanctions for greenwashing firms should also be applied.

ROLE OF DIGITAL TECHNOLOGIES BASED ON CYBERSECURITY AWARENESS IN ENHANCING FIRMS’ PERFORMANCE: DIGITAL ACCOUNTING SYSTEMS SETTING

Mon, 01 Sep 2025 00:00:00 +0000

Regarding the endeavors of this study, managing cybersecurity policies and producers within organizations suggests increasing the efficiency of digital accounting systems and, eventually, the overall performance among Small-Medium Enterprises (SMEs) in Jordan. Using a quantitative approach, 435 employees from SEMs were surveyed to determine the purpose of this study. Utilizing a structural equation model based on AMOS software, the results of this study indicate that employees’ cybersecurity awareness is significantly affected by their priors (Strategies Adopted, Legal Consequences, Proactive, and Information Security). Additionally, the results reveal that employees’ cybersecurity awareness significantly influences their adoption of digital accounting systems. Furthermore, the results reveal that the adoption of digital accounting systems significantly influences organizational performance. The results of this research contribute to the related literature through integrating Human-Organization-Technology Theory and Diffusion of Innovations Theory to reinforce performance. Finally, the primary practical insight is that policymakers in SEMs are encouraged to employ assertive policies and procedures regarding cybersecurity settings to obtain digital accounting quality and enhance overall business performance.

ECONOMIC POLICY INSTRUMENTS FOR INNOVATIVE GROWTH IN THE EUROPEAN UNION - THE CASE OF AI

Vasil Gechev — Mon, 01 Sep 2025 00:00:00 +0000

The recent economic (USA tariffs) and geopolitical (conflict in

Ukraine) developments are creating a host of challenges for the EU, at

a time when a new wave of high technology is intensifying EU’s eco-

nomic competition with the U.S. and China. In the last 15 years, the

European economy has been lagging in both the quantitative and qual-

itative characteristics of growth compared with its two main rivals.

Therefore, the enhancement of the EU’s technological and product

innovation capabilities is of critical importance for its future positions

in the global marketplace.

This research focuses on the selection of adequate economic policy

instruments for the establishment of an investment, R&D, and institu-

tional environment that will enhance innovation processes in the EU,

with a focus on artificial intelligence (AI) – where, currently, the EU

lags behind the USA and China. An in-depth analysis outlines the key

factors behind the lag and proposes specific mechanisms and instru-

ments for catching up.

IS THE STOCK MARKET A “BAROMETER” OF THE ECONOMY? BASED ON SOUTH AFRICA COMPREHENSIVE ANALYSIS

Jean-Claude Bimenyimana, Dong Mei-sheng, Momodou Lamin Jallow — Mon, 01 Sep 2025 00:00:00 +0000

An efficient stock market supports economic growth and is a barom-

eter of South Africa’s financial health. Our research delves into how

macroeconomic variables impact stock prices in South Africa by in-

vestigating yearly time series data ranging from 2000 to 2023. We

utilise Johansen’s cointegration test and the Vector Error Correction

Model (VECM) to investigate the equilibrium relationship between

stock market prices and critical macroeconomic factors like infla-

tion (INFL), trade rate (TR), money supply (MS) and exchange rate

(EXCH). The study findings indicate that these factors are correlated

in the long run, indicating a lasting correlation between specific mac-

roeconomic indicators and stock market prices. Stock market prices

are affected positively by exchange rates and inflation, as well as by

the money supply; however, trade rates have a negative impact accord-

ing to the analysis of short-term financial dynamics, which suggests

that adjustments are made to reach a long-term equilibrium despite the

lesser immediate effects of macroeconomic factors. Granger causality

tests show that macroeconomic factors influence stock market prices

over long and short-term periods. This highlights the importance of

the stock market as an indicator of trends and signals potential shifts

in the broader economy, which policymakers and investors should

keep a close eye on as an early warning system.

DIVERSIFICATION OF BUSINESS THROUGH DIGITAL TECHNOLOGIES: CASE STUDY OF KAZAKHSTAN INDUSTRIAL COMPANIES

Mon, 01 Sep 2025 00:00:00 +0000

This article examines the impact of digital technologies on the diversifi-

cation of industrial enterprises’ activities, using the example of industri-

al firms in Kazakhstan. A literature review was conducted to analyze the

influence of digital technologies on financial, human resource, and lo-

gistics indicators of enterprises, as well as their effects on activity diver-

sification. Based on the review and expert interviews, the authors devel-

oped survey questions and conducted a survey among 230 respondents

who are middle and high-level managers of industrial enterprises in

Kazakhstan. Using the Smart PLS program, we employed a dual-model

approach: one to measure variables like digital technologies, financial

performance, HR performance, logistic performance and diversification

levels (Formative model), and another to analyze their relationships

(Structural Equation Modeling, SEM). The findings indicate strong con-

vergent validity among the variables studied. Interestingly, digital tech-

nologies have a significant impact on financial and HR performances,

but less so on logistic performance. This highlights a common issue

among most industrial enterprises: the limited use of digital technolo-

gies in their logistical consolidation. Moreover, while financial and HR

performances strongly influence enterprise diversification, logistic has a

minor effect. These results underscore the intricate dynamics within en-

terprise management frameworks and highlight how technological and

organizational strategies can affect diversification outcomes differently.

The results of the study can be useful for supporting the theory of the

relationship between digital technologies and the diversification of en-

terprise activities, as well as for identifying problem areas that require

deeper analysis and intervention by top managers of enterprises.

THE STATISTICAL APPROACH TO UNDERSTANDING THE INTERDEPENDENCIES AMONG SUSTAINABLE DEVELOPMENT GOALS

Oksana Liashenko, Oleksandr Dluhopolskyi — Mon, 01 Sep 2025 00:00:00 +0000

This paper comprehensively analyses the interdependencies among the

Sustainable Development Goals (SDGs) through Canonical Correlation

Analysis (CCA). By categorizing SDGs into Social Development Goals,

Environmental Sustainability Goals, and Economic Development and

Sustainable Growth Goals, the study illuminates the complex dynamics

and mutual influences within these categories. The empirical findings

from CCA reveal significant, statistically robust correlations that high-

light synergistic and antagonistic interactions among the SDGs, which

are critical for effective policy-making and strategic planning. The

research underscores the importance of a holistic approach to under-

standing the SDG framework, advocating for integrated policy frame-

works that account for the intricate interconnections between different

goal sets. For instance, SDG7 (Affordable and Clean Energy) progress

supports environmental objectives and enhances economic and social

inclusion outcomes. The analysis thus provides crucial insights into how

advancements in specific goals can facilitate or hinder progress in oth-

ers, emphasizing the necessity for a balanced and informed approach

to SDG implementation. The findings contribute to the academic and

practical understanding of SDGs, offering strategic insights for coherent

and effective policy-making that can optimize the collective pursuit of

all goals. This paper serves as a valuable resource for policymakers,

practitioners, and researchers involved in planning and implementing

sustainable development initiatives, ensuring that efforts are compre-

hensive and aligned with the systemic interactions of the SDGs.

CENTRAL BANK INDEPENDENCE: DOES LEGAL ORIGINS MATTER?

Viktor Koziuk — Mon, 01 Sep 2025 00:00:00 +0000

Legal Origins and Law and Finance literature, despite heavy criti-

cism, shows vivid examples of how legal traditions affect economic

and political institutions with strong consequences for financial sys-

tems. Is there a relation between Legal Origins and central bank inde-

pendence (CBI)? The research idea of the paper is based on prediction

that Legal Origins could related to formal status, but more likely affect

factual status. From the empirical side it is found that the level of

CBI varies in countries with different legal traditions. Such difference

was widened during the time of CBI reforms around the globe, so

Common Law countries demonstrate the lowest level of CBI among

others. ANOVA and Fisher LSD test confirm the statistical signifi-

cance of differences in CBI across Legal Origins. In terms of inflation

performance, the situation is not the same. Common Law countries

are neither the best nor worst inflation performers, saying that, low-

er formal CBI may coexist with a better inflation situation. Results

of Correspondence Analysis confirm that all together lower levels of

CBI and inflation compared to the group mean are in statistically sig-

nificant ties with the Common Law proxy during the 1980-2023 and

2000-2023 period, while rule of law and sovereign wealth funds prox-

ies are significant only during 2000-2023. From the theoretical side, it

means that Legal Origin matters for CBI, especially after comprehen-

sive reforms of monetary institutions, yet the channels of its influence

on central banks should be investigated further.

PANEL INVESTIGATION OF THE FACTORS DETERMINING THE SUPPLY OF BANK LOANS IN BULGARIA USING MICROECONOMIC DATA

Petar Ilkov Peshev, Radostina Asenova Stamenova — Mon, 01 Sep 2025 00:00:00 +0000

This paper studies the factors affecting Bulgarian commercial banks’

loan supply over the period between Q1 2007 and Q4 2024. The anal-

ysis employs a panel of indicators derived from individual (micro-

economic) commercial banks’ balance sheets and income statements,

alongside macroeconomic variables. Combining cointegrated I(0) and

I(1) data suggests the use of the Pooled Mean Group (PMG) ARDL

model in panel data of Pesaran, et al. (1999). Our main findings are that

the capital adequacy ratio (CAR), cost-to-income ratio (CTOI), yield

on government bonds, and return on assets (ROA) exhibit negative as-

sociation with loan growth, while market share (MS), loan-to-deposit

ratio, interest rate on liabilities, GDP growth, housing prices, and infla-

tion positively influence lending activity. The negative value of the Er-

ror-correction term of -0.11 and the p-value of 0.016 support the validi-

ty of a long-run relationship, indicating that loan growth adjusts toward

the equilibrium state at a speed of 11% per quarter. Short-run dynamics

reveal that changes in CAR, market share, and loan-to-deposit ratios

significantly affect loan growth, while bank lending, economic growth,

and bank efficiency indicators display lagged effects. The results of this

study offer important insights into the operation of credit markets in

small, open, and bank-dependent economies such as Bulgaria.

DEGLOBALIZATION IN INTERNATIONAL FINANCE AND PAYMENTS: A NEW PARADIGM OR A PHASE IN GLOBALIZATION’S EVOLUTION?

Vesela Todorova, Monika Moraliyska, Iva Raycheva — Mon, 01 Sep 2025 00:00:00 +0000

This paper examines the phenomenon of deglobalization in interna-

tional finance and payments, assessing whether it represents a funda-

mental shift or a temporary phase within the broader process of glo-

balization. Using a combination of theoretical analysis and empirical

assessment, the research introduces the Deglobalization Coefficient,

a novel metric that synthesizes key financial indicators, including

cross-border capital flows, trade restrictions, and international pay-

ment diversification. Data from sources such as the United Nations

Trade and Development and the Bank for International Settlements

provide insights into trends from 2007 to 2022, a period marked by

financial crises, trade policy shifts, and geopolitical tensions. The

findings indicate that the world economy is undergoing a moderate

level of financial deglobalization, with increasing regionalization of

finance and greater national autonomy in monetary policy. However,

the study also highlights the counterbalancing role of digitalization,

which sustains financial integration despite protectionist tendencies.

The research contributes to the ongoing debate on the future of global-

ization, offering a systematic approach to measuring deglobalization

trends in financial markets.

SOCIO-ECONOMIC DIMENSIONS OF STATE REGULATION OF SUSTAINABLE DEVELOPMENT: INNOVATIVE APPROACHES TO IMPROVING THE ORGANISATIONAL MECHANISM

Mon, 01 Sep 2025 00:00:00 +0000

The article examines the organisational and economic mechanism of

state regulation of sustainable development of the national economy of

Ukraine. The relevance of the topic is due to the complex challenges

faced by the country as a result of war, economic and political instability,

global crises and internal structural changes. The author emphasises the

critical importance of finding new approaches to the development of a

deeply transformed socio-economic system that would ensure stability,

recovery and focus on long-term sustainable development goals. The au-

thor emphasises the key role of the state in combining short-term mea-

sures to restore infrastructure and the economy with long-term strategies

that meet the principles of sustainability. The importance of integrating

social (employment, inclusiveness, quality of life), economic (innovative

development, investment) and environmental priorities in the processes

of state regulation is substantiated. The author points out the need to op-

timise public administration mechanisms for efficient use of resources,

attract international assistance, stimulate the “green economy”, support

innovation and adapt regulatory instruments to the conditions of war and

reconstruction. It is proved that the development of a comprehensive ap-

proach to state regulation, which integrates the principles of sustainable

development into the economic policy of Ukraine, is necessary to ensure

stability and gradual growth of the national economy even in conditions

of instability and compliance with modern global sustainability trends.

STRATEGIC IGNORANCE: THE PARADIGM OF UNVEILING THE HIDDEN MOTIVES BEHIND MANAGERIAL BLIND SPOTS

Bahareh Abedin, Cristina Veres, Manuela Rozalia Gabor — Mon, 01 Sep 2025 00:00:00 +0000

The prevailing idea is that decision makers tend to have access to in-

formation as much as possible and consider all information related to

a subject for their decisions. However, the evidence shows that some-

times managers deliberately ignore some information. It is a kind of

conscious ignorance that empowers managers to decide and act in the

way they think is right. This behavioural strategy is called “strategic

ignorance”. The aim of this study is to investigate the reasons why

strategic ignorance is used by managers in SMEs across various in-

dustries. To achieve this goal, we conducted in-depth interviews with

12 managers. The results turn our attention to a hidden reality behind

the logical behaviours of managers, and that is the human desire to use

“conscious ignorance”. This study confirms that “strategic ignorance”

is a deliberate attempt to prevent the organizations flow of knowledge

or information. This phenomenon is influenced by the systematic, en-

vironmental, and cognitive stimuli of ignorance and the indicators of

the information itself. Our research could help organizations develop

more effective strategies for preventing and mitigating strategic igno-

rance. By understanding the underlying motivations and mechanisms

of “Strategic ignorance”, organizations could implement interven-

tions to promote more informed decision-making practices.

THE INFLUENCE OF AI-DRIVEN SUSTAINABLE HUMAN RESOURCE MANAGEMENT ON EMPLOYEE CREATIVE PERFORMANCE: ANALYZING IDIOSYNCRATIC DEALS IN THE INDIAN INFORMATION TECHNOLOGY SECTOR

Karthikeyan Thangaraju, Poonguzhali Palani — Mon, 01 Sep 2025 00:00:00 +0000

The research explores how AI-powered sustainable HR practices

influence employee creative performance within India’s IT sector

through the mediating role of individualized agreements. The research

applies structural equation modeling to examine survey data from 360

IT professionals based on the frameworks of the Job Demands-Re-

sources model and Social Exchange Theory. AI-based training and

performance management systems raise creative performance levels

and show that ideals partially mediate these relationships. The re-

search results reveal contextual differences because ideals mediate

recruitment effects and performance management outcomes but show

no significant mediation for training interventions, likely because of

the sector’s inclination toward standardized learning approaches. The

research delivers significant theoretical advancements by analysing

AI-HRM systems in emerging economies and exploring personal

work arrangements’ limits in tech-heavy settings. These insights serve

as essential guidance for practitioners deploying HR technologies that

successfully combine standardization with personalization to promote

workplace innovation. The research reveals surprising results about

the minimal direct influence of sustainability orientation. The research

advocates for integrated strategies to synchronize sustainability initia-

tives with innovation objectives within India’s IT sector.