<abstract xmlns="http://www.w3.org/1999/xhtml"><bold>Research purpose.</bold> This paper has established the index of the cycle of money. The index shows the level of the appropriately structured economy. According to the theory of the cycle of money, it is examined if an amount of money is recycled in the economy a lot of times or this amount of money is lost from an economy to other economies or banks abroad, because of inadequate structure of the economy of the country, then the purpose of the paper is to show an application of the case cycle of money, here in the case of Latvia. Therefore, this work aims to clarify how the theory of the cycle of money works to a real case scenario, and in general, how the cycle of money applies to an economy. Moreover, the index of the cycle of money shows how an economy could counteract to an economic crisis and how well-structured it is.<bold>Design/Methodology/Approach.</bold> The methodology followed in this work is based on the mathematical application of the theory of the cycle of money. Then, the current results have as root the equations of this theory for the examination of the case of Latvia for the period from 2012 to 2017. Beyond the mathematical applications, the R.B.Q. model with the Q.E. method is applied to ensure the credibility of the results. Therefore, we have a real case scenario and a simulation case for the case of Latvia.<bold>Findings.</bold> The results of the index of the cycle of money to the case of Latvia are compared with the global average index of the cycle of money. The results show, as expected, that Latvia is above the average global value. Latvia’s findings show that it is a well-structured economy and can counteract an economic crisis.<bold>Originality/Value/Practical implications.</bold> The results are original and show for the first time the cycle of money of Latvia through the application of this theory. This research is the first application of the cycle of money in the case of index calculations. So, it is a completely new concept based on the theory of the cycle of money.</abstract>

Index of the Cycle of Money - The Case of Latvia

<abstract xmlns="http://www.w3.org/1999/xhtml"><bold>Research purpose.</bold> Traditionally used communication mix as a part of company’s marketing strategy, including advertising, sales promotion, personal sales and public relations, is gradually changing and expanding. Thanks to the development of new information-communication technologies, all these tools are constantly being transformed into the conditions of the Internet. This fact also affects consumer’s lifestyle, and thus, their buying behaviour. As a large part of consumers are almost always online via fixed internet, WIFI or within data, companies in various sectors, especially in service sector such as hotel industry, have a better opportunity to reach a specific target group with online marketing communication. The main goal of the article is to provide a literature review on online marketing communication from the viewpoint of several foreign and domestic authors, analyse its trends in hotel industry and propose measures for the efficient online marketing communication in Slovak hotels.<bold>Design/Methodology/Approach.</bold> To achieve the main goal of the article, general scientific methods as well as statistical methods such as descriptive statistics were used. The primary data were obtained from the questionnaire survey focused on the determination of the online marketing communication trends in the hotel industry by Slovak consumers. The size of the basic set was determined by using demographic statistics of the Statistical Office of the Slovak Republic and was consisted of inhabitants living in the Slovak Republic older than 15 years. In total, 390 respondents participated in the marketing survey. The survey took the form of computer-assisted web interviewing respecting the ICC/ESOMAR (International code on Market, Opinion and Social Research and Data Analytics). For the processing of the survey data, the quantitative assessment method was applied. The secondary data included domestic and foreign scientific works, statistical databases and annual companies reports.<bold>Findings.</bold> Gradual changes in society, including the advent of new communication technologies, have an impact on the changing attitudes and behaviour of consumers, especially represented by the new generations, who prefer communication with companies in the online environment. However, there is still a large number of companies in Slovakia, including the hotel industry, that underestimate the power of online marketing communication, and their activity in the online environment such as social media is often inadequate. Based on the analysis and results of the questionnaire survey, it is thus clear that implementation of online marketing communication in business strategy of Slovak hotels brings many benefits, including brand building, improving relationships with customers and increasing their brand loyalty.<bold>Originality/Value/Practical implications.</bold> Finally, measures for the efficient implementation of online marketing communication in the specific Slovak conditions are proposed, and opportunities for future research are recommended.</abstract>

Faculty of Operation and Economics of Transport and Communications, Department of Economics

Online Marketing Communication Trends in Slovak Hotel Industry

<abstract xmlns="http://www.w3.org/1999/xhtml"><bold>Purpose.</bold> This study aimed to explore the relationship between organisational justice and commitment and how the combined influence of organisational justice and perceived organisational support (POS) impacts on commitment.<bold>Research Methodology.</bold> Data were obtained through questionnaires administered to 124 teaching and non-teaching staff, who were conveniently selected by the researchers from Ghanaian public universities. Descriptive survey design was adopted for this study.<bold>Findings.</bold> The results from regression analysis of data collected showed a significant positive relationship among the dimensions of organisational justice and affective commitment. Furthermore, POS was found to moderate the relationship between organisational justice and commitment, as the effect of justice on commitment increased when POS was added to the model.<bold>Practical Implications.</bold> The present study supported the expected relationship among justice, POS and organisational commitment and implied that higher level of fairness and support from the organisation can favourably influence the commitment level of employees.<bold>Originality.</bold> The current research examines the moderating role of POS on organisational justice–commitment link using samples from the Ghanaian higher education institutions. Thus, it makes relevant contribution to the existing literature by modelling both organisational justice and support and analysing its effect on organisational commitment.</abstract>

Perceived Organisational Support as a Moderator in the Relationship Between Organisational Justice and Affective Organisational Commitment

<abstract xmlns="http://www.w3.org/1999/xhtml"><bold>Research purpose.</bold> The goal of the current paper is to investigate the impact of internal factors on bank performance. All the performance indicators and explanatory factors have been distinguished from the scientific literature.<bold>Design/methodology/approach.</bold> To investigate if there was an effect of the distinguishing factors on Latvian banks’ performance, correlation-regression analysis was applied. To test the developed models’ accuracy, determination coefficient, Durbin–Watson coefficient, variance inflation factor (VIF), Cook’s distance and p-value were computed.<bold>Findings.</bold> The findings revealed that there was a relationship between all the dependent and independent factors, except return on assets (ROA) and return on equity (ROE). ROA has a significant positive relationship only with net commission income, and ROE, with net interest margin and net commission income. Moreover, two regression models were developed and showed that total assets and number of automated teller machines (ATMs) affect the profitability, represented by earnings before interest, taxes, depreciation, and amortization (EBIDTA) and bank value.<bold>Originality/value/practical implications.</bold> The current findings contribute to the scientific literature dealing with commercial banks’ performance issue and could be used by the banks to develop strategies for maximising profitability.</abstract>

Determinants of Bank Profitability: Case of Latvia

<abstract xmlns="http://www.w3.org/1999/xhtml"><bold>Research purpose.</bold> The European Union recognizes the importance of information systems for improving the performance of trans-European transport network ports by promoting a set of initiatives focused on their use. The Directive 2010/65/EU obliges the provision of electronic services for the reception and treatment of declaratory acts necessary for the entry and exit of ships into the European Community and opens the way for future harmonization in the European Union of such services. The research purpose is to analyze and assess the degree of adequacy of European seaport information systems relative to the requirements of the European Directive to the availability of electronic services. Are they complying with the directive?<bold>Design / Methodology / Approach.</bold> The objective of the study was to characterize the current situation of the main European seaports regarding the impacts of the European Directive. In this sense, it was decided to construct a survey to facilitate the identification and characterization of the options and actions taken by each country regarding the implementation of the Directive 2010/65/UE. This study was attended by the main EU Members and Norway.<bold>Findings.</bold> From the analysis of the results of the European survey on the implementation of the Directive, we can conclude that the implementation of the Directive is carried out by entities of the State sphere. Member States show a low priority to the exchange of information between the Member States and the majority has not taken any action in this direction. With respect to the Single Window development model, the mixed model is the one adopted in most Member States.<bold>Originality / Value / Practical implications.</bold> The central objective of Directive 2010/65/EU is to simplify and harmonize the administrative procedures required for maritime transport through electronic means. This Directive is seen as an opportunity to facilitate trade and administrative barriers through harmonization and standardization of the European Seaports Organization. The analysis of directive adoption represents an opportunity to increase scientific knowledge in this economic sector.</abstract>

European Seaports Information Systems. The Impacts of Directive 2010/65/EU

<abstract xmlns="http://www.w3.org/1999/xhtml"><bold>Research purpose.</bold> Especially against the background of a globalised world, municipal managers are confronted with increasingly complex tasks. Furthermore, the range of tasks of a municipality and its stakeholders are very heterogeneous. While repetitive work processes are basically characterised by a clear starting position and objectives and the resources required to achieve these objectives are known and available, these manageable prerequisites are usually not present in complex public administration systems. The transfer of purely management ratio-based approaches from the business management sector is difficult for public administration, since not profit but the common good is the prioritized target. Municipal managers need a holistic approach that addresses the municipal council, the population, companies, administrative organization and budget management in order to be able to control municipalities within a diagnostic framework.<bold>Design/Methodology/Approach.</bold> First of all, a brief insight into the history of the new municipal budget law in Germany is given. The aim of the budget law is to reform the budget and accounting system, but above all, to strengthen municipal control through goal orientation. After an overview of the current diagnostic frameworks, it becomes clear that a holistic approach is missing. To develop such a framework, success factors for municipal control are identified. These are then combined into success clusters to create a more manageable, holistic structure for implementation – the Kehler Management System (KMS). A survey and two case studies, which were conducted within two years in the municipality of Ottersweier, empirically prove the practical relevance of the KMS approach.<bold>Findings.</bold> 36 success factors were identified, which were structured into six success clusters. One success cluster addresses the trusting cooperation between politics and administration (in short: politics and administration). A culture of leadership and cooperation within the administration is another cluster of success (in short: culture of leadership and cooperation). Sustainable human resources management forms the third cluster of success factors (in short: human resources management). A further cluster could be identified in the strategic area (in short: strategy). A fifth cluster of success relates to the conversion to a modern budget and accounting system, which considers resource consumption (in short: municipal accrual accounting as a control instrument). The last success cluster addresses changes in the administrative environment (in short: learning organization). The six success clusters are not independent, however, these have a causal order. The municipal accrual accounting as a control instrument and the integration of the strategy are fundamental for the other four success clusters, which address the implementation of the reform process.<bold>Originality/Value/Practical implications.</bold> In 2015, the framework of the KMS was evaluated in a survey of 115 municipalities with up to 50,000 inhabitants and was considered coherent and helpful by the municipal executives. In individual communities like Ottersweier, detailed diagnostic analyses based on the Kehler Management System were conducted with various internal stakeholders, which led to strategy development, resource-oriented budget management, operational implementation, and a continuous improvement process. However, only the internal view of the municipal administration is currently addressed. In an extension of the KMS, further research aims at integrating the external view of citizens and companies into the framework.</abstract>

The Kehler Management System: A Holistic Framework for the Administration of Municipalities

<abstract xmlns="http://www.w3.org/1999/xhtml"><bold>Research purpose.</bold> Growth of illicit trade has markedly increased and caused damage to a multitude of economic, socio-economic and environmental outcomes. The purpose of this paper is to examine the impact of Hofstede’s country cultural dimensions on the attitudes towards illicit trade and the political will to counter the crime across countries.<bold>Design/Methodology/Approach.</bold> The 2018 Global Illicit Trade index published by the Economics Intelligence Unit for 62 countries is empirically analysed. Six hypotheses are built and tested across Hofstede’s six cultural dimensions.<bold>Findings.</bold> The results indicate that countries that are culturally more individualistic, have greater uncertainty avoidance and have a stronger long-term orientation have a stronger structural capacity to protect against illicit trade on average.<bold>Originality/Value/Practical implications.</bold> In reference to originality, the paper adds to the scarce research on the fight against global illicit trade and empirically explores the role that culture plays in driving the attitudes towards illicit trade and the political will to fight the crime. In reference to practical implications, anti-illicit policy initiatives are likely to be more challenging in collectivist countries with lower uncertainty avoidance and a short-term orientation. Policymakers need to tailor their anti-illicit trade efforts in these countries as these societies will not likely place the same value on countering illicit trade as the countries that are culturally more individualistic, have greater uncertainty avoidance and have a strong long-term orientation.</abstract>

Illicit Trade and Hofstede’s Cultural Dimensions

<abstract xmlns="http://www.w3.org/1999/xhtml"><bold>Research purpose:</bold> Food security remains a major component of economic development. Many developing nations are facing challenges of food insecurity, which had contributed to starvation and other societal problems. With adequate food intake, human healthy living is assured. This study investigates the impact of access to formal finance and indigenous technology and knowledge on food security in Ondo central senatorial district in Ondo state, Nigeria.<bold>Methodology</bold>: In total, 216 farmers were sampled, and data were collected through a well-structured questionnaire and focus interviews. Data collected were analysed using descriptive statistics and logit estimation technique.<bold>Findings</bold>: Descriptive statistics show that there are more male farmers (61.1%) than female counterparts (38.9%), with most of the farmers (42.7%) in their ages 56 years and above and with 51.9% having primary education. Majority of the farmers (65.7%) engage in arable crop farming, while 15.2 and 19.1% engage in cash crop and livestock farming, respectively. The econometric model reveals that age, income, gender, education, marital status, religion, family size, assets owned and distance are major determinants of a farmer’s decision on account ownership, savings and borrowing. Indigenous knowledge of soil fertility, disease-resistant and quickly-growing crops, food storage, local weather, water management, pest and diseases control are significant determinants of food security in Ondo central senatorial district. Likewise, account ownership, savings and borrowing from formal financial institutions are significant determinants of food security.<bold>Practical implications</bold>: It is, therefore, important that efforts to ease access to formal financial services and improve indigenous technology to serve as complement to modern farming techniques to achieve food security be made a priority by government and private institutions.</abstract>

Access to Finance, Indigenous Technology and Food Security in Nigeria: Case Study of Ondo Central Senatorial District

AHEAD OF PRINT

Volume 21 (2024): Issue 1 (June 2024)

Volume 20 (2023): Issue 2 (December 2023)

Volume 20 (2023): Issue 1 (June 2023)

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Volume 19 (2022): Issue 1 (June 2022)

Volume 18 (2021): Issue 2 (December 2021)

Volume 18 (2021): Issue 1 (June 2021)

Volume 17 (2020): Issue 2 (December 2020)

Volume 17 (2020): Issue 1 (June 2020)

Volume 16 (2019): Issue 2 (December 2019)

Volume 16 (2019): Issue 1 (June 2019)

Volume 15 (2018): Issue 2 (December 2018)

Volume 15 (2018): Issue 1 (June 2018)

Volume 14 (2017): Issue 2 (December 2017)

Volume 14 (2017): Issue 1 (June 2017)

Volume 13 (2016): Issue 2 (December 2016)

Volume 13 (2016): Issue 1 (June 2016)

Economics and Culture

Aims and Scope  Journal Economics and Culture is a international open-access journal that publishes original scientific papers on the latest empirical and theoretical research in the fields of economics, business management and culture. All articles are doubl-blind peer-reviewed.  Authors are specially welcomed to submit their papers focused on cultural economics, application of statistical methods to the field of culture, cultural and event management, cultural education, business issues in culture and creative industries, i.e. topics combining economic, management and culture issues.  Journal Economics and Culture has been published since 2010 by the EKA University of Applied Sciences. Periodicity of the edition　– 2 times per year (June and December).  Peer-review process. The journal uses double-blind peer review (neither the authors nor the reviewers know the identity of each other) to avoid bias. See more information in the section „For Authors – Reviewing Policy“  Plagiarism policy. Authors should strictly avoid plagiarism, including self-plagiarism. Papers submitted to Economics and Culture must be original and not be published or submitted for publication elsewhere.  The editorial board is participating in a growing community of Similarity Check System's users in order to ensure that the content published is original and trustworthy. Similarity Check is a medium that allows for comprehensive manuscripts screening, aimed to eliminate plagiarism and provide a high standard and quality peer-review process.  Open access statement. The journal is an Open Access journal that allows a free unlimited access to all its contents without any restrictions upon publication to all users.  Copyright policy. Economics and Culture publishes open-access articles licensed under the Creative Commons Attribution-NonCommercial-NoDerivs License  Since Volume 2022, the journal has changed its license to the Creative Commons BY NC ND 4.0. (CC BY-NC-ND 4.0)  Archiving policy. Sciendo archives the contents of this journal in Portico - digital long-term preservation service of scholarly books, journals and collections.  APC policy. To publish in Economics and Culture, the authors are not required to pay an Article Processing Charge. 