JEM Vol. 43, 2021

Beginning with the issue of 43, 2021, JEM is published with Sciendo, a part of De Gruyter academic publisher.


All articles of this journal are licensed under a Creative Commons Atribution-NonCommercial International License

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GDPR implementation in public administration in Poland – 1.5 year after: An empirical analysis

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Dominika Lisiak-Felicka , Maciej Szmit
2021, 43, 1-21.

Aim/purpose – The paper contains descriptive exploratory research on the implementa-tion of General Data Protection Requirements (GDPR) in a group of Polish public administration offices. The purpose of this research is to investigate the current state of personal data protection in the entities surveyed.
Design/methodology/approach – The diagnostic survey method using the Computer Assisted Web Interview was employed. The survey was conducted in local government administration offices a year and a half after the GDPR implementation.
Findings – All marshal offices and the majority of districts (about 80%) confirmed that they comply with all the GDPR requirements. The situation was slightly worse in municipal offices – about 23% of them declared that they do not comply with all the GDPR requirements. In officials’ opinion this situation may be improved by conducting training for employees, employee engagement, and appropriate support of the office management. Another aspect that draws attention is a very small budget dedicated to the GDPR implementation and maintenance in most of the offices surveyed.
Research implications/limitations – The limitation of the findings is the relatively low responsiveness of the questionnaire survey.
Originality/value/contribution – The research concerns a relatively new subject. The state of personal data protection in public administration in Poland after 18 months of the GDPR implementation was analyzed. So far, there is no comprehensive research that has been conducted into this field in local government administration.

Keywords: General Data Protection Regulation (GDPR), public administration, personal data, GDPR implementation, data protection breaches.
JEL Classification: M15, H83, K24.


Contribution of VAT to economic growth: A dynamic CGE analysis

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Jean Luc Erero
2021, 43, 22-51.

Aim/purpose – This study sought to assess the impact of an increased historical fixed VAT rate of 14% to the current rate of 15% on the South African economy.
Design/methodology/approach – The method applied in this study was based on a Dynamic Computable General Equilibrium (CGE) model to evaluate the impact of both the VAT rate of 14% and a new rate of 15% on the South African economy. The CGE model has been proven over the years to be a suitable model when evaluating the impact assessment of any shock within an economy. Enhancements were made by the researcher to the direct and indirect tax section of the model, i.e., the direct tax section was disaggregated, such that for both firm and household revenues, a dividend income stream is separated from other income streams. The main reason is to facilitate a detailed analysis of Corporate Income Tax (CIT) and Personal Income Tax (PIT), as well as the latest implemented Dividend Tax (DT).
Findings – When VAT was increased from 14% to 15%, the immediate reaction of the shock from the Dynamic CGE model indicates that the Gross Domestic Product (GDP) declined by 0.0002% in 2018, but increased by 0.0028% in the following year (2019). The trend continued until 2021, hence the 1% increase in the VAT tax rate will increase the expected forecast of VAT collection by approximately R3.2 billion on average.
Research implications/limitations – The findings of this study will be implemented by the South African government, which will use a dynamic CGE model to assess South Africa’s VAT contribution to the economy. The database of the CGE model was limited to the Social Accounting Matrix (SAM) for 2015.
Originality/value/contribution – The study recommends the use of this method for assessing the impact of tax policy changes to the South African economy. The CGE model seems to be the best model as far as the impact assessment of a shock in the economy is concerned. This will assist the South African authorities with their decision making regarding future VAT revenue.

Keywords: South African Revenue Service (SARS), Value Added tax (VAT), Dynamic computable general equilibrium (CGE) model.
JEL Classification: H21, C68, E62.


Going green in logistics: The case of small and medium-sized enterprises in Poland

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Krzysztof Zowada
2021, 43, 52-69.

Aim/purpose – The aim of the paper is to identify the features of ‘green’ small and medium-sized enterprises operating in Poland.
Design/methodology/approach – The paper is based on a quantitative approach and a group of 200 small and medium-sized enterprises operating in Poland were examined. The classification tree method was used to analyze the data gathered.
Findings – The ‘green’ small and medium-sized enterprises operating in Poland were characterized and their important features were identified, e.g., belonging to the TFL (Transport Forwarding Logistics) sector and a direct relationship with the supply chain leader. In the case of enterprises from the TFL sector, their area of activity is a natural environment for the development of ‘green logistics’ practices. In turn, the supply chain leader usually pushes for specific solutions aimed at achieving the assumed goals, in-cluding environmental goals.
Research implications/limitations – The research results enable the identification pro-cess of small and medium-sized enterprises interested in implementing the ‘green logis-tics’ concept and, consequently, their support. Nevertheless, small and medium-sized enterprises operating in Poland were the only examined, thus the research findings can-not be generalized for other countries. However, the paper could be a starting point for comparative analyses on an international scale.
Originality/value/contribution – The development of ‘green logistics’ among small and medium-sized enterprises in Poland is still not recognized by researchers. The paper is a valuable addition to this research gap.

Keywords: green logistics, SME, classification tree.
JEL Classification: L21, M20, Q50.


Sampling methods for investment portfolio formulation procedure at increased market volatility

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Mateusz Dzicher
2021, 43, 70-89.

Aim/purpose – In this paper, a market volatility-robust portfolio composition framework under the modified Markowitz’s approach with the use of sampling methods is developed in order to improve the allocation efficiency for a portfolio of financial instruments formulation procedure at an increased market volatility.
Design/methodology/approach – In order to overcome the risk of not receiving an optimal solution to the portfolio optimization (suboptimal outcomes of attribution of weights in allocation procedures) the developed model, first, implements the rationale that financial markets largely feature two states, i.e., quiescent (non-crisis; low market volatility) periods that are occasionally interspersed with stress (crisis; high market volatility) periods and, second, relies on many input samples of rates of return, either from an empirical distribution or a theoretical distribution (mitigating estimation risk). All computational results are reported for publicly available historical daily data sets on selected Polish blue-chip securities. onducted in local government administration offices a year and a half after the GDPR implementation.
Findings – Not only did the presented method produce more diversified allocation, but also successfully minimized the unfavorable effects of increased market volatility by providing less risky portfolios in comparison to Newton’s method, typically used for optimization under portfolio theory.
Research implications/limitations – The research emphasized that in order to get a more diversified investment portfolio it is crucial to outdo the limitations of a single sample approach (utilized in Markowitz’s model) which may on some occasions be statistically biased. Thus it was proved that sampling methods allow to obtain a less concentrated and volatile allocation which contributes the investment decision-making. However, the current research focused solely on publicly available input data of particular securities. In this manner, an additional analysis can be prepared for other jurisdictions and asset classes. There can also be considered a use of other than variance risk measures.
Originality/value/contribution – The suggested framework contributes to existing methods a wide array of quantitative data analysis and simulation tools for composing an unique approach that directly addresses the task of minimizing the adverse implications of increased market volatility that, in consequence, pertains to knowledgeable attributing of investment portfolio proportions of either individual or institutional investors. The prepared method is also proved to hold demanded computational quality and, importantly, the capacity for further development.

Keywords: investment decisions, optimization techniques, portfolio selection, statistical simulation methods.
JEL Classification: C150, C610, G110.


Strategic analysis for Poland as a European hub for Belt and Road Initiative

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Andrzej Hanusik , Anna Woźnica
2021, 43, 90-109.

Aim/purpose – This paper aims at determining the role of Poland in the Belt and Road Initiative (BRI) and identifying an alternative course of the trail. However, there are still many variables that can significantly affect the extent of Poland’s participation in BRI.
Design/methodology/approach – The paper was based on a literature query and interviews with six experts of the Polish logistics environment closely connected to the concept of the New Silk Road. The interviews and the literature analysis allowed of the authors to define potential scenarios for the course of the New Silk Road. In addition, the SWOT analysis was used to identify the Poland’s role in BRI.
Findings – The most important factors that can significantly contribute to Poland’s participation in BRI are a very convenient geographical location and a strong logistics sector, whereas the main negative factors are the ambivalent attitude of the Polish authorities towards the Chinese party and the underdeveloped modern railway infrastructure. The study identified some potential scenarios for the route of the New Silk Road, i.e., Poland as a European hub, transit only, southern road and northern road (ro-ro neighbors). The first scenario is the most favorable for Poland – Poland as a European hub. This is due to the current course of the New Silk Road and the location of Poland on the most economically effective transport corridor.
Research implications/limitations – The research findings allow for a relatively precise definition of possible scenarios of the BRI Northern Corridor through areas directly related to Poland. The results may contribute to raising knowledge and awareness about BRI, which may provide insights into an academic and social debate on this topic. The upshot is that the results may entail actual activities contributing to increasing the chances of Poland for being a European hub gate for BRI.
Originality/value/contribution – Previous publications explored various route alternatives of the entire New Silk Road, whereas there was no analysis of the last stage of the transport corridor on which Poland lies. The paper is a response to this research gap.

Keywords: Belt and Road Initiative, New Silk Road, Northern Corridor, logistics, international trade.
JEL Classification: E27, E61, F15.


Competence measurement of production enterprises in product innovations for technological and marketing strategies

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Ireneusz P. Rutkowski
2021, 43, 110-130.

Aim/purpose – This paper attempts to arrange and present the methods of measuring the competences of production enterprises in the field of product innovations.
Design/methodology/approach – The method used in this paper is a literature review, in the area of new product development management. The author assumes that the review and conceptual nature of this research is dominant.
Findings – The obtained results indicate the importance of measurement in product innovation competencies and provide various metrics in this field. The author proposes new indicators to measure competencies in this area, i.e., the intensity of competition on new products market.
Research implications/limitations – The results provide a basis for improving efforts of production enterprises in the field of product innovations. The limitations of the study include a complex character of considered theoretical constructs. Sets of measures must be adapted to the information needs of a specific enterprise.
Originality/value/contribution – The values of these indicators reflect the directions of industrial enterprises’ conduct in the process of developing new products and technologies. Moreover, these indicators show the strength of linking technology with the effectiveness of new product development, and consequently with the enterprise marketing, economic and financial efficiency. The contribution of research to the development of management sciences primarily includes the formulation of a set of indicators whose level determines product innovation competencies in industrial companies.

Keywords: competence measurement, product innovation, production enterprise, new product, technical and marketing strategy.
JEL Classification: O31, O32, M21.


Testing for causality-in-mean and in-variance among the U.S., China, and some Africa capital markets: A CCF approach

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Osarumwense Osabuohien-Irabor
2021, 43, 131-153.

Aim/purpose – Owing to the huge risk occasioned by negative contagion effects associ-ated with financial market linkages, markets participants and academia have continued to examine the capital market cross country interdependence at different levels. In this paper, we examined the causal relationships among the U.S., China and some top African capital market indexes.
Design/methodology/approach – To examine the mean and variance causal effects, we estimated a univariate AR-EGARCH model for all capital market indexes. Then employed the residual-based two-step bivariate cross-correlation function (CCF) test developed by Cheung & Ng (1996). The test statistics had a well-defined asymptotic standard distribution that was robust to distributional assumptions.
Findings – The obtained results indicate the importance of measurement in product innovation competencies and provide various metrics in this field. The author proposes new indicators to measure competencies in this area, i.e., the intensity of competition on new products market.
Research implications/limitations –  Owing to the fact that knowledge of other financial markets provides adequate information about a market situation, the results from this research paper will be helpful for the policymakers of African countries in shaping their economic policies, help investors diversify investments with less risk, and international portfolio managers make portfolio allocation decision
Originality/value/contribution – This paper examined the mean and risk dynamics of three top African, the U.S., and Chinese capital markets with their inter-dependence using the CCF approach. Furthermore, to the best of our knowledge, no previous re-search paper on this issue exists.

Keywords: causality-in-mean, causality-in-variance, capital market, cross-correlation function.
JEL Classification: G10, F31, C20.


Ranking of optimal stock portfolios determined on the basis of expected utility maximization criterion

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Dawid Giemza
2021, 43, 154-178.

Aim/purpose – The aim of the paper is to rank the optimal portfolios of shares of com-panies listed on the Warsaw Stock Exchange, taking into account the investor’s propen-sity to risk.
Design/methodology/approach – Investment portfolios consisting of varied number of companies selected from WIG 20 index were built. Next, the weights of equity holdings of these companies in the entire portfolio were determined, maximizing portfolio’s expected (square) utility function, and then the obtained structures were compared between investors with various levels of risk propensity. Using Hellwig’s taxonomic development measure, a ranking of optimum stock portfolios depending on the investor’s risk propensity was prepared. The research analyzed quotations from 248 trading sessions.
Findings – The findings indicated that whilst there are differences in the weight struc-tures of equity holdings in the entire portfolio between the investor characterized by aversion to risk at the level of γ = 10 and the investor characterized by aversion to risk at the level of γ = 100, the rankings of the constructed optimum portfolios demonstrate strong similarity. The study validated, in conformity with the literature, that with the increase in the number of equity holdings in the portfolio, the portfolio risk initially decreases and then becomes stable at a certain level.
Research implications/limitations – The study used data from the past as for which there is no guarantee that they will be adequate for the future. There is sensitivity to the selection of the period from which the historic data come. When changing the period of the analyzed historic data by a small time unit it may prove that the portfolio composi-tion will become totally different.
Originality/value/contribution – The paper compares the composition of optimum stock portfolios depending on the investor’s propensity to risk. Their ranking was created using the taxonomic method for this purpose. Taking advantage of this method also additional variables can be taken into account, which describe and differentiate the portfolio and they can be assigned relevant significance depending on the investor’s preferences.

Keywords: optimal portfolio, expected rate of return on the portfolio, portfolio standard deviation, expected utility theory, multidimensional comparative analysis.
JEL Classification: G10, G11.


An analysis of certification processes for Good Clinical Practice and project management competencies

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Marek Zawada , Dorota Gągała
2021, 43, 179-205.

Aim/purpose – The purpose of this paper is to clarify the certification process of the Good Clinical Practice (GCP) competencies based on a comparison with the project management (PM) certification process. This aim was accomplished by model development.
Design/methodology/approach – The study was divided into three main phases: 1st phase – the identification of key characteristics of PM and GCP certification processes, 2nd phase – the development of certification models for PM and GCP, 3rd phase – the conclusions from in-depth interviews.
Findings – As a result of the research, key characteristics of PM and GCP certification processes were identified, certification models for PM and GCP were developed. In addition, based on conclusions from in-depth interviews, solutions for organizing the way of confirming knowledge of GCP guidelines were proposed.
Research implications/limitations – The proposed rules may be too complex and may exceed the needs and expectations of the clinical trial environment. The models focus on stakeholder relations, without the rules of certification granting procedures, to enable broader contextualization of the issues discussed in the paper. The analysis might be fragmented as it regards the sole certification process. The research refers to Poland only, hence it will be valuable to identify whether foreign authorities have the same attitude to the GCP competency certification model. It is recommended to increase the number of respondents’ interviews to obtain results of higher validity and reliability.
Originality/value/contribution – The paper raises research topics at the crossroads of project management, clinical trials, and GCP, topics that have been underdeveloped so far. The results might be significant for all organizations involved in conducting clinical research projects. The findings contribute to the quality of clinical trials and provide public assurance that the rights, safety, and well-being of trial subjects are protected and the clinical trial data are credible.

Keywords: project management, clinical trials, certification, Good Clinical Practice, GCP.
JEL Classification: M10, O32, I11.