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Abstract
The most significant concept of János Kornai's oeuvre is the shortage economy theory as it was presented in Anti-equilibrium more than fifty years ago. According to this, modern economies are never in equilibrium. On the markets of goods and services, the aggregate demand is either significantly higher or significantly lower than the aggregate supply. This dichotomous model is discussed in the first part of the paper.
After the collapse of the communist system in 1989/90, shortages disappeared everywhere unexpectedly quickly. But it was also an unexpected development that the institutions of liberal democracy have not developed in several countries and/or collapsed after a short period. Regarding Hungary, Kornai issued an alarm signal at the turn of 2010/2011. He was the first who said that the Orbán regime had turned the country into an autocracy in barely a year. The second part of the paper examines whether Kornai's assertion, shared by many transition-economy specialist, that there are only two political systems (democracies and autocracies) is adequate for the entire range of post-socialist countries. The author's answer to this question is negative.
Abstract
János Kornai published an interesting and important paper in 2000 about the “system paradigm”, and another in 2016 about the “system paradigm revisited”. In the last one he made a theoretical approach for differences between democracies, autocracies and dictatorships; made a typology for the most important elements for characterization of different political systems. In the second half of the 2010’s a debate has started among political analysts, public intellectuals and journalists, how we can characterize the new political system of Hungary led by Viktor Orbán. We can read detailed analyses about “hybrid regime”, “limited democracy”, “illiberal democracy”, “plebiscite leader democracy” etc. In this paper I would like to deal with the question of different political systems in general, and – on the experiences of the debates about the current Hungarian system – I would like to think further – the Kornai's model. Kornai pointed out 10 elements for characterization of it (the questions of removable governments, opposition parties in parliaments, elections, civil society, freedom of press, etc.) – I would like to differentiate 10 new potential elements, especially from the side of the political ideas, historical backgrounds and other viewpoints.
Abstract
This article explores the communication strategies of multinational corporations in response to the Russo-Ukrainian War and the public pressure to divest from the Russian domestic market. By content analyzing official statements from the top 50 revenue-generating multinational corporations in Russia, the article identifies patterns in corporate narratives about the war, their actions and concerns, and potential solutions. The findings reveal that most companies declare scaling down their presence in Russia while maintaining certain basic obligations, prioritizing employee safety, and expressing concerns about the global economy. While few explicitly condemn Russia's aggression, many adopt neutral language to avoid naming Russia as the aggressor. Corporations emphasize the importance of diplomacy, adherence to international law, and the pursuit of peace, but often avoid proposing concrete solutions. Despite variations across industries, countries of origin, and decisions to stay or leave Russia, the differences in statements were not significant. The uniformity of corporate statements and evidence that companies frequently do not follow their declared promises suggest potential “bluewashing” – making vague or false claims of social responsibility or anti-war stances to improve their public image. These findings emphasize the need for multinational corporations to develop sincere and original wartime communication strategies.
Abstract
This paper presents the first comprehensive systematic literature review of articles from the last five years published on enterprise-scaled agility and offers practical insights for organisations looking to become more agile. The management literature on agile structures is still relatively scarce and fragmented, but emerging. Our results highlight the characteristics, advantages and tensions created by agility at the organisational level, and give insight for executives to support their decisions on organisational design. By examining the structural, cultural, and leadership antecedents that are necessary for success, this paper contributes to the ongoing debate about agile organisations. The concept of ‘Agility Forest’ proposed here will contribute to the better understanding of the connections between structure, culture, and leadership.
Abstract
One of the important issues of banking today is the role bank branches and online banking solutions play in serving consumers. With the help of a representative Survey of 1,000 adults in Hungary conducted in 2022, we examine how well online and mobile banking solutions can provide a suitable alternative to bank branches. Based on our results, online banking solutions cannot fully replace personal banking in Hungary due to the customers' attitudes, as we can see that their use does not significantly affect the frequency of visits to the bank branch, and their usage rate does not increase with the distance from the bank branch. We also point out that for the Hungarian population the trend of bank branch closures may entail the risk of being left out of the formal financial system mostly for the older, digitally less receptive social strata living in small settlements and in a relatively worse financial situation.
Abstract
This paper explores the ambiguous relationship between Confucian culture and innovation based on the scholarly literature. Applying a scoping review approach, the purpose of the literature review is to uncover the reasons behind the ambiguities of empirical research results and conceptualizations of how Confucianism affects innovation on the individual and on the organizational level. The paper builds on the assumption that the different operationalizations of Confucian culture are behind these contradictions. Since Confucianism is an ideology that has developed for over 2000 years, and even its most often cited virtues and principles are quite heterogenous, approaches to its operationalization in the field of management are also diverse. The results of the literature review indicate that different approaches to Confucian culture indeed show homogeneity in the conceptualization of the Confucianism-innovation relationship. Virtues and principles related to rigid hierarchies and great power distance have a detrimental effect, while others a rather positive one. Therefore, the paper argues that a more specific denomination of cultural factors should be necessary to avoid biased and unspecified results in both theoretical and empirical approaches.
Abstract
Given that knowledge is one of the most important human resource values, the manner of its acquisition, transfer and development within an organisation is crucial. It should come as no surprise that given the link between knowledge acquisition and development in most spheres, several individuals wish to restrict their knowledge to themselves, as it gives them value in the labour market. Yet, if we inculcate knowledge sharing habits among individuals at an early age, so that they not only impart but also acquire knowledge through knowledge transfer, information acquisition can become a mutually beneficial process for both providers and acquirers. In this study, we conducted a survey among university students in Hungary to investigate how open they are about sharing their knowledge with each other and what they expect from their peers in exchange for the information they have. Data analyses showed that students' willingness to transfer knowledge and their expectations in return for the knowledge transferred are greatly influenced by their mutual relationships, but the strength of these relationships impact the rewards they expect for knowledge transfer.
Abstract
The COVID-19 pandemic affected all countries both in social and economic dimensions. Currently, vaccination is considered to be one of the most efficient solutions which can stop the further spread of the virus. Therefore, the paper aims to understand the factors that determined the social approval of the COVID-19 vaccines in Romania. To get a detailed picture on the situation, we looked not only at economic variables, but also at social and demographic components. Accordingly, the findings of the analysis list the variables that significantly influence the vaccination rate nationwide. The social approval (or the refusal) of these shots is a complex issue, thus it is essential that policymakers make decisions based on scientific evidence. The practical relevance of the paper lies in the two policy implications suggested (i.e., transparent and predictable policymaking and adjustments on the level of the education system in the long run for similar situations), which also highlight the importance of evidence-based decision-making processes in public health. Our analysis method consists of multivariate cross-sectional OLS regressions.
Large firm effect in enterprise risk management
Empirical evidence of Hungarian corporations
Abstract
Micro-level risk awareness affects macro-level financial stability as well. Thus, the corporate risk management practice impacts the exposures and the potential fragility of an economy. While corporate risk management is accepted to create value in an imperfect market, the effect of the firm size is not straightforward. Smaller, financially constrained firms can benefit more by engaging in risk management programs, but larger corporations face more complex risks and have more resources for this activity. Empirical studies on risk management focusing mainly on the US market, highlight a positive relation between the firm size and the quality of risk management that includes not just the hedging of financial risks, but the concept of integrated risk management as well. The aim of this paper is two-fold: first, to summarize the existing literature on corporate risk management with a special focus on the effect of corporate size; second, to contribute to the existing literature by investigating a Central European market, Hungary. The findings are similar to those of the existing global literature, as derivatives usage, and applications of an integrated risk management concept increase with firm size. Although all firms in the sample manage their foreign exchange risk, interest rate hedging and more sophisticated derivatives, like options, are much less widespread in Hungary, compared to the US and Asian peers. The size effect is proven for the objective criteria of risk management quality by comparative analysis and a structured modelling framework, however, the subjective self-evaluation was uncorrelated to the size.
Abstract
I examine the relationship between the internationalisation of family firms and innovation. After the review of the relevant literature, I group together the narrow research topics addressed in the literature, which largely confirm the positive relationship between the two categories. Moreover, I demonstrate a theoretical framework which, according to the literature, can be implemented to put socio-emotional welfare and entrepreneurial orientation, which are restraining the internationalisation of family firms, on a common path, so that they can contribute to enhancing the innovative and international performance of family firms in a mutually supportive way.
