Jovana Zoroja

Editorial: impact of information and communication technology to the competitiveness of European countries - cluster analysis approach

IntroductionInformation and communication technology (ICT) has been recognized as a key factor in the economic development and growth of countries, especially in the last decades [3], [16], [19], [30]. Development of ICT contributes to higher productivity, efficiency, gross domestic product, and a higher level of innovation activity [17], [20], [29]. According to the European Commission, ICT drives 20% of productivity growth in the European Union countries [7].The development of ICT impacts higher overall competitiveness in numerous ways. A positive impact of ICT usage can be found in many areas: the financial sector, health organizations, education and science, and public organizations [14]. The usage of ICT increases development of e-skills and the quality of education systems, changes the structure of business processes, encourages employment and collaboration among individuals and facilitates everyday activities [2], [27].Usage and application of the information and communication technology (ICT) differs in particular countries, which lead to the digital divide among countries [22], [29], which has a negative impact on the overall development of the information society [13], [15], [28]. The digital divide does not present only the difference between using and not using ICT, but also the difference in the level of knowledge and skills which are necessary for using ICT [1].According to numerous researches, digital divide is present in European countries. For example, Piatkowski [21] showed that ICT led to higher growth of productivity at macro and micro level in several post-transition countries which became EU members in 2004. He highlighted that the highest efforts were made by several countries such as: the Czech Republic, Poland, Hungary and Slovenia, followed by Romania. On the other hand, Slovakia and Bulgaria lag behind regarding economic development and ICT usage. This indicates that European leaders should invest more efforts in decreasing the digital divide [4], especially taking into account that EU countries are thriving to become the most dynamic and competitive knowledge-based economy and society [25]. In order to maintain a competitive position on the market in the next several years, European countries should enhance development of ICT and e-skills, since educated employees with such skills are a crucial factor for competitiveness, growth and employment [5], [10].In this paper, we investigate how ICT influences competitiveness of European countries through four areas (elearning, personal usage of the Internet, e-commerce, e-government). We attempt to determine if there are differences in the economic development of those countries and how ICT affects them. In order to attain this goal, we have conducted a two-stage analysis. In the first stage, the cluster analysis using K-means was used to organize European countries into sensible groupings for the year 2011, according to their usage of ICT. Defined clusters are compared using Anova analysis according to their competitiveness indices, using the Global Competitiveness Report.The paper is organized as follows. The first section provides an introduction. In the second section data and the model specification are explained. Results of the cluster and the Anova analysis are described in the third section. At the end, a discussion and conclusion close the paper.MethodologyIn the following section, the methodological approach to the research will be presented: measuring ICT usage, measuring competitiveness, and statistical two-stage methodology.Measuring ICT UsageICT usage was measured using four dimensions: e-learning, personal usage of the Internet, e-commerce, egovernment.Indicators of the e-learning usage are: (i) purchase of e-learning courses/materials, (ii) search of information on education and training, (iii) usage of the Internet for education and training and (iv) usage of the Internet for decisionmaking on learning. …

RFID usage in European enterprises and its relation to competitiveness: Cluster analysis approach

The radio frequency identification (RFID) is one of the most promising new technologies of modern economy, with a high potential of improving the efficiency and productivity of enterprises. The main goal of this study is to determine the extent of RFID usage in European (EU) countries and to estimate whether there is a relation between countries’ competitiveness and their levels of RFID usage. First, the trend of RFID usage among EU enterprises is analyzed for the years 2009, 2011, and 2014. Second, a cluster analysis is applied with the goal to create homogenous groups of countries according to the RFID application across different industries. Third, countries from different clusters were compared according to their competitiveness in 2014. Results revealed that enterprises in Europe differ substantially according to their RFID usage. Also, RFID usage is not evenly distributed among countries across different industries, since some countries were leaders in RFID usage in one industry while lagging behind in RFID usage in other industries. Finally, countries from clusters with a higher RFID usage level also have a higher level of technological readiness and innovation, while smaller differences were found in business sophistication.

Selection of variables for credit risk data mining models: Preliminary research

Credit risk is related to the risk of the borrower that the lender will not be able to return their debt including interest. Numerous researches have been conducted in the area of credit risk, both using classical models such as Altman Z-score and using machine learning methodology. However, the research using the data from Croatian financial institutions is scarce, especially research focused on the selection of the demographic and/or behavior variables. In addition, it is important to develop robust models that estimate credit risk as accurately as possible. The goal of this research is to develop a data mining model for prediction of credit risk, using the data from Croatian financial institutions on defaulted clients (demographic and behavior data). Decision tree models are constructed for the prediction of credit risk. Different algorithms for the variable selection are evaluated based on the classification accuracy of the decision trees developed based on the selected variables.

Impact of ICTs on Innovation Activities: Indication for selected European countries

Abstract The development and usage of information and communication technologies (ICTs) has particularly increased in the last two decades, while at the same time showing great potential to improve the efficacy of business processes, facilitate and drive innovations, and therefore increase competitiveness. Innovation activities represent an important factor for social and economic change as well as for increasing competitive advantages at both the national and firm levels. This paper focuses on the role that ICTs play in the innovation performance of selected European countries. Using data drawn from the Eurostat and Global Competitiveness Index (2007–2011) and panel regression analysis, research results indicate that ICTs have a significant impact on business innovation activities.

Early warning system in business, finance, and economics: Bibliometric and topic analysis

Different economic crises such as banking, financial, and currency lead to high economic costs and have negative impact to whole society. Development of early warning systems could help in prevention of economic and business crisis, while they present a systematic forecast of unwanted events. Early warning systems are used primary for detecting crises before damage has been made and for reducing false alarms of possible crisis. The aim of our article is to provide bibliometric analysis of early warning system, their development and usage in different environment especially in economic and finance sector. It investigates the role of early warning systems for prediction and recognition of negative events, especially in the area of business, finances, and economy. Moreover, this article contributes to the existing literature by providing systematic analysis of development and usage of early warning systems to predict critical and problematic events for economic and social development.

Case Study in Interdisciplinary Scientific Communication: A Decade of the INDECS Journal

Abstract Background: Interdisciplinary scientific areas regularly develop unique methodologies, yet utilise the conventional communication modes to disseminate results of their researches. Objectives: This paper analyses whether a novel, interdisciplinary communication mode can be found in a gradually developing interdisciplinary journal. Methods/Approach: The content of the journal was categorised based on the characteristics attributed to the published papers. Statistical tests were performed to check for the overlapping categories. Results: A number of indicators, related to papers or to their authors, are introduced and quantified. Conclusions: Methodology utilised and data collected serve, on the one hand, as a referent set for treating the content of other interdisciplinary or disciplinary scientific journals, and, on the other hand, as a set for comparison and extraction of universalities or specificities of the journals. Fluctuations accompanying a gradual rise of the considered journal content prevent a definite answer to the question whether there are some emerging interdisciplinary communication novelties.

Development Practices of Embedded Systems: SMEs in SEE countries

Abstract Background: Embedded systems are evolving in their use based on the increased trend of merging software with hardware appliances. The market for the embedded systems development is rapidly increasing and this is one of the possible new markets for software firms striving for new competitive advantage. Objectives: The goal of the paper is to explore embedded systems development practices of Croatian firms and compare them with the practices of the firms from South Eastern European (SEE) countries. Methods/Approach: The survey was conducted using the sample of SME software firms and the data on embedded systems development practices have been analysed. Practices of Croatian firms were compared with practices of other firms from SEE countries. Results: Results of the survey revealed that in comparison to their counterparts from SEE countries, Croatian firms involved in embedded systems development utilise cutting-edge technology and processes to a lower extent. Conclusions: Cutting-edge technology and processes are prerequisites for attaining the level of productivity in software production that is sufficient to ensure maintaining cost competency. However, SMEs are yet to fulfill their market potentials