<abstract>
<title style='display:none'>Abstract</title>
<sec><title style='display:none'>Background</title>
Customer segmentation has become one of the most innovative ways which help businesses adopt appropriate marketing campaigns and reach targeted customers. The RFM model and machine learning combination have been widely applied in various areas.
</sec>
<sec><title style='display:none'>Motivations</title>
With the rapid increase of transactional data, the RFM model can accurately segment customers and provide deeper insights into customers’ purchasing behaviour. However, the traditional RFM model is limited to 3 variables, Recency, Frequency and Monetary, without revealing segments based on demographic features. Meanwhile, the contribution of demographic characteristics to marketing strategies is extremely important.
</sec>
<sec><title style='display:none'>Methods/Approach</title>
The article proposed an extended RFMD model (D-Demographic) with a combination of behavioural and demographic variables. Customer segmentation can be performed effectively using the RFMD model, K-Means, and K-Prototype algorithms.
</sec>
<sec><title style='display:none'>Results</title>
The extended model is applied to the retail dataset, and the experimental result shows 5 clusters with different features. The effectiveness of the new model is measured by the Adjusted Rand Index and Adjusted Mutual Information. Furthermore, we use Cohort analysis to analyse customer retention rates and recommend marketing strategies for each segment.
</sec>
<sec><title style='display:none'>Conclusions</title>
According to the evaluation, the proposed RMFD model was deployed with stable results created by two clustering algorithms. Businesses can apply this model to deeply understand customer behaviour with their demographics and launch efficient campaigns.
</sec>
</abstract>

An Extended RFM Model for Customer Behaviour and Demographic Analysis in Retail Industry

<abstract xml:lang="en"><title style='display:none'>Understanding Process Performance Measurement Systems</title>The purpose of this paper is to analyze the current state of Process Performance Measurement Systems (PPMS) by means of a systematic review of literature. The PPMS literature is reviewed using a systematic approach. Based on an extensive literature review only twelve articles that contain the term PPMS in the title were found. The literature analysis showed that PPMS is a relatively new topic in the area of performance measurement. In order to understand PPMS, it was crucial to explain the concepts of business process management, business performance measurement and Performance Measurement System (PMS) which are well known and used in the literature and practice. PPMS is a special type of PMS that should be used in process-oriented organizations. Limitations of this research lie in the fact that all the conclusions were derived only from the literature, not empirical research. The results presented in the paper continue towards providing an updated overview of the current state of performance measurement, especially PPMS in order to identify the existing research gaps on which ongoing and future research efforts regarding this topic can be focused.</abstract>

Understanding Process Performance Measurement Systems

<abstract xml:lang="en"><title style='display:none'>Do macroeconomic factors matter for stock returns? Evidence from estimating a multifactor model on the Croatian market</title>Factor models observe the sensitivity of an asset return as a function of one or more factors. This paper analyzes returns on fourteen stocks of the Croatian capital market in the period from January 2004 to October 2009 using inflation, industrial production, interest rates, market index and oil prices as factors. Both the direction and strength of the relation between the change in factors and returns are investigated. The analyses included fourteen stocks and their sensitivities to factors were estimated. The results show that the market index has the largest statistical significance for all stocks and a positive relation to returns. Interest rates, oil prices and industrial production also marked a positive relation to returns, while inflation had a negative influence. Furthermore, cross-sectional regression with the estimated sensitivities used as independent variables and returns in each month as dependent variables is performed. This analysis resulted in time series of risk premiums for each factor. The most important factor affecting stock prices proved to be the market index, which had a positive risk premium. A statistically significant factor in 2004 and 2008 was also inflation, marking a negative risk premium in 2004 and a positive one in 2008. The remaining three factors have not shown as significant.</abstract>

Ministry of Finance of the Republic of Croatia, Katančićeva 5, 10000 Zagreb, Croatia

Faculty of Economics & Business, University of Zagreb, Trg J. F. Kennedyja 6, 10000 Zagreb, Croatia

Do macroeconomic factors matter for stock returns? Evidence from estimating a multifactor model on the Croatian market

<abstract xml:lang="en"><title style='display:none'>Decision making based on single and double acceptance sampling plans for assessing quality of lots</title><bold>Background:</bold> Acceptance sampling is a statistical tool of quality control. Sampling plans and operating characteristic (OC) curves are very useful for conducting acceptance sampling and provide the quality manager with tools to evaluate the quality of a production run or shipment. There are developed different sampling plans, but common used in practise are single and double acceptance sampling plans. <bold>Objectives:</bold> The goal of the paper is to test if applying of single and double sampling plan can lead to statistically significant different conclusion about quality level of observed lot. <bold>Methods/Approach:</bold> Statistical tests of difference in proportions are used to test if there is some statistically significant difference in probabilities of lot fraction defectives between a single and a double sampling plan at the same levels of probability of acceptance. <bold>Results:</bold> The results of the analysis show that in some cases there is statistically significant difference. Namely, the quality manager should be careful when he chooses to use, instead of the first, the second sampling plan with different parameters because on that way he could make statistically significant different conclusion about quality level of observed lot. <bold>Conclusions:</bold> The paper shows that some intentional manipulations by using different sampling plans are possible.</abstract>

Decision making based on single and double acceptance sampling plans for assessing quality of lots

<abstract><title style='display:none'>Abstract</title> Background: Globalization, strong development of information-communication technologies and the emergence of new burning challenges for the global communities enabled the concept of corporate social responsibility to be perceived as a business model that allows for successful differentiation of companies, as well creating sustainable competitive advantage. Objective: The goal of the paper is to offer a short overview of the role of internal and external stakeholders within the concept of corporate social responsibility and point out the importance of quality relationships between the company and its stakeholders with the aim of improving the standard of living of all community members. Methods/approach: The paper is based on a systematic analysis of previously published relevant international scientific papers in the field of corporate social responsibility, stakeholder theory and information-communication technologies. Results: This paper demonstrates that the concept of corporate social responsibility has gone, in its several decades of existence, from the "unnecessary dependency" phase to the critical business model phase. Conclusions: As there is a natural connection between the concept of corporate social responsibility and the stakeholders, it can be concluded that the quality of the relationship between the company and its stakeholders represents a key factor that affects the success of the company in its notion of differentiating itself from competitors and creating sustainable competitive advantage.</abstract>

Corporate social responsibility and stakeholders: Review of the last decade (2006–2015)

<abstract xml:lang="en"><title style='display:none'>The impact of liquidity on the capital structure: a case study of Croatian firms</title><bold>Background:</bold> Previous studies have shown that in some countries, liquid assets increased leverage while in other countries liquid firms were more frequently financed by their own capital and therefore were less leveraged. <bold>Objectives:</bold> The aim of this paper is to investigate the impact of liquidity on the capital structure of Croatian firms. <bold>Methods/Approach:</bold> Pearson correlation coefficient is applied to the test on the relationship between liquidity ratios and debt ratios, the share of retained earnings to capital and liquidity ratios and the relationship between the structure of current assets and leverage. <bold>Results:</bold> A survey has been conducted on a sample of 1058 Croatian firms. There are statistically significant correlations between liquidity ratios and leverage ratios. Also, there are statistically significant correlations between leverage ratios and the structure of current assets. The relationship between liquidity ratios and the short-term leverage is stronger than between liquidity ratios and the long-term leverage. <bold>Conclusions:</bold> The more liquid assets firms have, the less they are leveraged. Long-term leveraged firms are more liquid. Increasing inventory levels leads to an increase in leverage. Furthermore, increasing the cash in current assets leads to a reduction in the short-term and the long-term leverage.</abstract>

Faculty of Economics, J.J. Strossmayer University of Osijek, Osijek, Croatia

Institute for Scientific and Art Research Work, Croatian Academy of Science and Art, Osijek, Croatia

The impact of liquidity on the capital structure: a case study of Croatian firms

<abstract>
<title style='display:none'>Abstract</title>
<sec><title style='display:none'>Background</title>
As the world rapidly evolves, digitalisation continues, and artificial intelligence is used, it is crucial to understand how education systems are preparing future generations to succeed in this very dynamic environment where there is a tremendous demand for skilled workers.
</sec>
<sec><title style='display:none'>Objectives</title>
This paper analyses similarities and differences between European Union Member States regarding the educational attainment of young adults and their performance in the labour market.
</sec>
<sec><title style='display:none'>Methods/Approach</title>
Ward’s cluster method in hierarchical cluster analysis for output and outcome indicators of young adult education systems is used for two selected years: 2012 and 2021.
</sec>
<sec><title style='display:none'>Results</title>
Belgium, Cyprus, Denmark, France, Ireland, Latvia, Lithuania, Luxembourg, and the Netherlands have the highest average percentage of young adults with tertiary education in 2021. On the other hand, Belgium, Bulgaria, Hungary, Ireland, Lithuania, Malta, Poland, and Romania have the highest average employment and income benefits of tertiary education for young adults.
</sec>
<sec><title style='display:none'>Conclusions</title>
The average share of 25-to 34-year-olds with tertiary education increased significantly in the EU-27 between 2012 and 2021, partly due to higher demand for skilled workers in labour markets. Higher levels of education are generally associated with better employment opportunities and higher wages. However, there are large differences across EU economies. The results can help governments and education policymakers design future policies and provide insights into cross-country comparisons.
</sec>
</abstract>

Exploring the Link Between Education Length and Employment Outcomes among Youth in Europe: A Hierarchical Clustering Approach

<abstract>
<title style='display:none'>Abstract</title>
<sec><title style='display:none'>Background</title>
In this study, the parameters that directly impact purchase intentions were analysed, such as electronic word of mouth, customer engagement, brand awareness, and customer retention.
</sec>
<sec><title style='display:none'>Objectives</title>
This study aimed to explore the impact of digital content marketing on customer purchase intentions.
</sec>
<sec><title style='display:none'>Methods/Approach</title>
The study used Partial Least Square Structural Equation Modeling (PLS-SEM) to explore the hypothesised relationships between variables and the extent to which digital content marketing strategies influence purchase intention.
</sec>
<sec><title style='display:none'>Results</title>
The study’s findings highlighted that content marketing positively impacts electronic word of mouth, brand awareness, customer retention, and customer engagement. In contrast, the results revealed that content marketing does not directly impact purchase intentions.
</sec>
<sec><title style='display:none'>Conclusions</title>
The study’s results indicate that digital content marketing affects purchase intentions indirectly, primarily through customer engagement, brand awareness, customer retention, and electronic word of mouth. In essence, the complete impact of digital content marketing on purchase intention is realised through these indirect factors. The findings enrich the literature on digital content marketing and provide some practical implications for companies to invest more in this direction to improve their performance.
</sec>
</abstract>

Digital Content Marketing and EWOM: A Mediational Serial Approach

<abstract>
<title style='display:none'>Abstract</title>
<sec><title style='display:none'>Background</title>
Export activities represent one of the prerequisites for the growth and development of economies. In combination with new digital technologies, they create a sustainable advantage and competitiveness in the market.
</sec>
<sec><title style='display:none'>Objectives</title>
The focus of this research was to determine whether there is a significant difference and connection between the absorptive capacity of accepting new technologies and its influence on financial performance in the domestic and foreign markets.
</sec>
<sec><title style='display:none'>Methods /Approach</title>
The relationship between the absorptive capacity of the application of new technologies and its influence on financial performance was investigated in a sample of Croatian companies. Structural equation modelling was used to investigate the relationship between absorptive capacity and financial performance.
</sec>
<sec><title style='display:none'>Results</title>
The results of the research confirm a statistically significant relationship between the absorptive capacity of accepting new technologies and its influence on the financial performance of export companies.
</sec>
<sec><title style='display:none'>Conclusion</title>
The analysis revealed that absorptive capacity significantly impacts the financial performance of Croatian export companies, with a stronger influence observed in foreign markets compared to domestic ones. These findings suggest that investing in the ability to absorb and apply new technologies is crucial for enhancing financial outcomes, particularly in the global marketplace.
</sec>
</abstract>

Enhancing Financial Performance through Absorptive Capacity: Evidence from Croatian Export Companies in Domestic and International Markets

<abstract>
<title style='display:none'>Abstract</title>
<sec><title style='display:none'>Background</title>
The startup scene in Croatia has been accelerating in development in the last decade, partly due to the available European Union funds. Organisational culture is one of the main prerequisites for the growth and development of successful startups. Internal marketing is often crucial to reshaping positive organisational culture and fostering innovative employee behaviour.
</sec>
<sec><title style='display:none'>Objectives</title>
The purpose of this article was to investigate a main characteristic of the startup culture in the Republic of Croatia in order to recommend actions and activities of internal marketing that can help companies achieve their goals faster by engaging and motivating their employees and fostering a positive culture change.
</sec>
<sec><title style='display:none'>Methods/Approach</title>
Survey research was conducted on a sample of employees of Croatian startups. The main informant approach was used to collect the answers.
</sec>
<sec><title style='display:none'>Results</title>
The analysis reveals that as startups grow, they enhance gender diversity and opportunities for idea sharing yet face challenges in maintaining autonomy and constructive feedback. Additionally, mentoring, as one of the venues of internal marketing within startups, significantly bolsters adherence to company principles and fosters a culture of constructive problem-solving, highlighting the critical role of mentorship in shaping a positive organisational environment.
</sec>
<sec><title style='display:none'>Conclusions</title>
Results show that startups in the Republic of Croatia still have an opportunity to develop further and improve employee-focused culture and to apply several internal marketing activities in order to engage and retain their employees, such as internal communication, professional development, employee benefits, employee recognition and employee engagement.
</sec>
</abstract>

Shaping Startup Culture in Croatia: The Role of Internal Marketing in Fostering Growth

<abstract>
<title style='display:none'>Abstract</title>
<sec><title style='display:none'>Background</title>
Digital technologies have significantly changed the way adolescents perceive the world around them. The perception of the social environment is crucial for their well-being and health.
</sec>
<sec><title style='display:none'>Objectives</title>
This paper aims to evaluate the relationship between the perceived life circumstances of adolescents, such as dietary habits, physical activity, obesity, subjective health, the use of digital technology devices, and the level of occupancy with school obligations.
</sec>
<sec><title style='display:none'>Methods/Approach</title>
The survey research was conducted on a sample of adolescents between the ages of 11 and 15. Data was analysed using regression analysis and association rules.
</sec>
<sec><title style='display:none'>Results</title>
The results present a moderate positive correlation between the level of school obligations and life satisfaction or subjective health, while for the independent variable, time spent in front of screens, the strength of the relationship is moderate and negative.
</sec>
<sec><title style='display:none'>Conclusions</title>
The model represents a useful starting point for the recommendations for creating patterns to influence life satisfaction and well-being in adolescence. It provides insight into the potential optimisation of school obligations of adolescents according to the level of life satisfaction, subjective perception of health, and time spent in front of the screen.
</sec>
</abstract>

Adolescent Well-being and Life Satisfaction: Impact of Digital Technology Usage

<abstract>
<title style='display:none'>Abstract</title>
<sec><title style='display:none'>Background</title>
In the dynamic realm of business, ethics serves as a critical compass, guiding the delineation between right and wrong actions. Gaining momentum as a focal point within organisational discourse, the concept of ethics has burgeoned into a cornerstone element of corporate identity and operations.
</sec>
<sec><title style='display:none'>Objectives</title>
This study aims to dissect the theoretical underpinnings of moral virtues—specifically wisdom, justice, courage, and restraint—and their intersection with the managerial profession and associated personality traits. We propose the extension of the Mintzberg model of managerial traits from the perspective of virtue ethics.
</sec>
<sec><title style='display:none'>Methods/Approach</title>
Employing a theoretical review methodology, this investigation traverses through each identified moral virtue, engaging with contemporary research and scholarly publications within the domain of virtue ethics.
</sec>
<sec><title style='display:none'>Results</title>
The analysis affirms that virtue ethics, with its emphasis on character and morality, is instrumental in shaping the framework for managerial conduct and decision-making. The exploration identifies a symbiotic relationship between managerial virtues within the Mintzberg model of managerial traits, highlighting how these elements collectively contribute to the effectiveness and ethical grounding of managerial practices.
</sec>
<sec><title style='display:none'>Conclusions</title>
The findings underscore the indispensability of moral virtues and specific personality traits in the cultivation of proficient and ethically oriented managerial professionals. The extended Mintzberg model can be a relevant starting point for a more detailed discussion regarding virtue ethics in a globalised economy.
</sec>
</abstract>

Virtue Ethics, Managerial Profession and Personality Traits: The Extension of Mintzberg’s Managerial Traits

<abstract><title style='display:none'>Abstract</title><bold>Background:</bold> Complexity of the digital transformation (Digital Transformation) paradigm and its relation to the fourth technological revolution face companies with serious challenges when it comes to keeping up with the competition or becoming a leader in operating industries.<bold>Objectives:</bold> The goal of our research is to systematize, analyse and evaluate technological and business concepts of Digital Transformation, in order to identify and investigate Digital Transformation initiatives in Croatia.<bold>Methods/Approach:</bold> To accomplish this goal, we used a multiple-case study approach to gather data from experts who participated in successful Digital Transformation initiatives.<bold>Results:</bold> Questionnaires were developed and used to gather both, qualitative background and technology-business related data relevant for Digital Transformation initiatives’ success, discussed in the last part of the paper. The limitation of this study is a relatively small number of case studies (6), as well as its local coverage, resulting therefore with conclusions, which will serve as a base for future studies.<bold>Conclusions:</bold> There are several background, business, and technology-related concepts or factors relevant to Digital Transformation initiatives: profile and involvement of external Digital Transformation experts; the transformation drivers and expectations. In achieving most significant business concepts for business transformation, no single one right combination of technological concepts could be explicitly determined.</abstract>

Understanding Digital Transformation Initiatives: Case Studies Analysis

<abstract>
<title style='display:none'>Abstract</title>
<bold>Background:</bold> The bootstrap can be alternative to cross-validation as a training/test set splitting method since it minimizes the computing time in classification problems in comparison to the tenfold cross-validation.
<bold>Objectives:</bold> Тhis research investigates what proportion should be used to split the dataset into the training and the testing set so that the bootstrap might be competitive in terms of accuracy to other resampling methods.
<bold>Methods/Approach:</bold> Different train/test split proportions are used with the following resampling methods: the bootstrap, the leave-one-out cross-validation, the tenfold cross-validation, and the random repeated train/test split to test their performance on several classification methods. The classification methods used include the logistic regression, the decision tree, and the k-nearest neighbours.
<bold>Results:</bold> The findings suggest that using a different structure of the test set (e.g. 30/70, 20/80) can further optimize the performance of the bootstrap when applied to the logistic regression and the decision tree. For the k-nearest neighbour, the tenfold cross-validation with a 70/30 train/test splitting ratio is recommended.
<bold>Conclusions:</bold> Depending on the characteristics and the preliminary transformations of the variables, the bootstrap can improve the accuracy of the classification problem.
</abstract>

The Proportion for Splitting Data into Training and Test Set for the Bootstrap in Classification Problems

<abstract><title style='display:none'>Abstract</title><bold>Background:</bold> The aging of the European population is a demographic trend reflected in the ever-growing number of older employees. This paper introduces the importance of motivation and satisfaction in the workplace among age diverse employees in Slovenian companies.<bold>Objectives:</bold> The goal is to investigate the differences between the motivation and satisfaction of employees from different age groups in the workplace.<bold>Methods/Approach:</bold> The paper is based on research including a survey of two age groups of employees in Slovenia. We employed the Mann-Whitney U test to verify differences in the motivation and satisfaction in the workplace between the two groups.<bold>Results:</bold> Older employees are more motivated by flexibility in the workplace; autonomy at work; good interpersonal relationships in the workplace; the possibility of working at their own pace; respect among employees; equal treatment of employees regardless of their age. They are more satisfied with interpersonal relationships in the company; their work; working hours and the distribution of work obligations; and facilitation of the self-regulation of the speed of work performed.<bold>Conclusions:</bold> Motivation and satisfaction change as individuals age. Using this information, managers and employers can apply appropriate measures to contribute to employees’ well-being and better workplace performance, better working relationships with colleagues, higher productivity, and greater creativity.</abstract>

Motivation and Satisfaction of Employees in the Workplace

<abstract><title style='display:none'>Abstract</title> Background: Bike-sharing programmes have become popular in a large number of cities in order to facilitate bicycle use. Determining the location of bike sharing stations is vital to success of these programmes. Objectives: In this paper, a case study is applied to the Gaziantep University campus in order to find possible locations of the stations for users (students). The purpose is to minimize the total walking distance. Methods/Approach: Set and maximal covering mathematical models are considered to decide on coverage capability of determined 20 demand points and 20 potential bike stations. Then, the mathematical models of P-center and P-median are used to build possible stations and to allocate demand points to the opened stations. Finally, an undesirable facility location model is used to find the bike stations, which have the maximum distance from demand nodes, and to eliminate them. Results: In computational results, it is clearly seen that the proposed approaches set the potential bike station covering all demand points. They also provide different solutions for the campus planners. Conclusions: The methodology outlined in this study can provide university administrators with a useful insight into locations of stations, and in this way, it contributes significantly to future planning of bike-sharing systems.</abstract>

Location and Coverage Analysis of Bike- Sharing Stations in University Campus

<abstract xml:lang="en"><title style='display:none'>Change Management as a Critical Success Factor in e-Government Implementation</title>Change management in e-government implementation is a very complex issue. E-government services are frequently distributed over different IT systems and organizations. There are also events from outside the public administration that cause changes such as government policies and legislation, public-private partnership, etc., and finally a huge resistance to change exists in public administration proverbial. Another problem is that the e-government is predominantly seen only as a technology mission and not as an organizational transformation issue. Those are probably the main reasons that the existing literature about change management in e-government is still missing at large. There are articles dealing with some aspects of changes affected by the new technology implementation, however, there is no comprehensive framework that would identify changes that have to be managed in e-government implementation. Therefore, the main aim of the paper is to identify a comprehensive set of changes that have to be considered in e-government implementation and the role of leadership in such processes. Finally, the paper proposes a conceptual model of change management in e-government implementation.</abstract>

Change Management as a Critical Success Factor in e-Government Implementation

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