scholarly journals PRINCIPLES OF INTERACTION IN INTER-ORGANIZATIONAL NETWORKS IN THE CONTEXT OF THE PRINCIPAL – AGENT ISSUE

2019 ◽  
Vol 26 (6) ◽  
pp. 1619-1626
Author(s):  
Emil Mitov ◽  
Albena Vutsova
Keyword(s):  
Social Relations ◽  
Development Process ◽  
Economic Behavior ◽  
Political Environment ◽  
Organizational Networks ◽  
Principal Agent ◽  
Evolutionary System ◽  
Neoclassical Theory ◽  
The Cost ◽  
Personal Behavior

In the development process of the economic theory, the focus is shifted from the market, being the only form of coordination of economic activity, to the personal behavior and its impact on economic processes. This reveals the importance of human habits and how they shape the socio-economic behavior. Social relations and interaction become more and more important and are seen as a factor influencing not only the daily decisions, but also the economic behavior of the personality. "Economics is seen by them as an open evolutionary system, experiencing a constant impact by the external environment through culture, political environment, nature, etc."In the development process of the economic theory, the focus is shifted from the market, being the only form of coordination of economic activity, to the personal behavior and its impact on economic processes. This reveals the importance of human habits and how they shape the socio-economic behavior. Social relations and interaction become more and more important and are seen as a factor influencing not only the daily decisions, but also the economic behavior of the personality. "Economics is seen by them as an open evolutionary system, experiencing a constant impact by the external environment through culture, political environment, nature, etc."Neoclassical theory assumes that fully rational, decision-making individuals, through their absolute awareness and using the exchange of goods on the market, strive for equilibrium and actually achieve it. New institutional economy rejects one of the most important postulates of neoclassical theory - the economy's quest for equilibrium, accepting it only as short-term (if at all possible) and uncharacteristic state. The public interest seeks to build more efficient structures/institutions, and by better defining property rights and maximizing the usefulness of each individual, to achieve greater public welfare. The most important concepts of the new institutional economy are the theory of transaction costs, the theory of property rights and the principal-agent problem theory.The problematic area of the present study is the conflicts, arising from the interaction and cooperation between different business partners, united in inter-organizational networks. The subject of this research is the theory and practice of these inter-organizational networks, reflected through the prism of "principal-agent".The expansion of the markets by counterparties and traded goods, as well as by geographic scope, leads to a de-personalization of the exchange, thus an increase in the uncertainty for the participants and consequently the cost of limiting it. The possibility of long-term reiteration of deals with the same contractor is negligible, while at the same time partners become increasingly distanced, virtual and abstract. This stimulates market participants to look for mechanisms to curb the negative effects of expanding markets - commercial contracts, bank guarantees, warranties, betting and trade codes. Their introduction is aimed at reducing the cost of obtaining information about the counterparty, the traded commodities, as well as providing guarantees to prevent opportunistic behavior after the conclusion of the agreement.

scholarly journals Selection and Prioritization of Software Requirements Applying Verbal Decision Analysis

Complexity ◽  
2019 ◽  
Vol 2019 ◽  
pp. 1-20
Author(s):  
Paulo A. M. Barbosa ◽  
Plácido R. Pinheiro ◽  
Francisca R. V. Silveira ◽  
Marum Simão Filho
Keyword(s):  
Software Development ◽  
Decision Analysis ◽  
Decision Maker ◽  
Development Process ◽  
Software Requirements ◽  
Software Development Process ◽  
Next Release Problem ◽  
Support Tools ◽  
Verbal Decision Analysis ◽  
The Cost

During the software development process, the decision maker (DM) must master many variables inherent in this process. Software releases represent the order in which a set of requirements is implemented and delivered to the customer. Structuring and enumerating a set of releases with prioritized requirements represents a challenging task because the requirements contain their characteristics, such as technical precedence, the cost required for implementation, the importance that one or more customers add to the requirement, among other factors. To facilitate this work of selection and prioritization of releases, the decision maker may adopt some support tools. One field of study already known to solve this type of problem is the Search-Based Software Engineering (SBSE) that uses metaheuristics as a means to find reasonable solutions taking into account a set of well-defined objectives and constraints. In this paper, we seek to increase the possibilities of solving the Next Release Problem using the methods available in Verbal Decision Analysis (VDA). We generate a problem and submit it so that the VDA and SBSE methods try to resolve it. To validate this research, we compared the results obtained through VDA and compared with the SBSE results. We present and discuss the results in the respective sections.

scholarly journals MECHANISM OF REPRODUCING TECHNICAL RESOURCES OF ENTERPRISES IN THE PROCESS OF THEIR FUNCTIONING

2021 ◽  
Author(s):  
Olena Bobrovska
Keyword(s):  
Economic Behavior ◽  
Point Of View ◽  
Main Function ◽  
Total Capital ◽  
Economic Transformations ◽  
Definition Of ◽  
Additional Value ◽  
The Cost ◽  
The Relationship ◽  
Cost Characteristics

The specific character of reproducing and maintaining the quality and productivity of technical resources is considered from the point of view of their economic essence and economic behavior in the production process. The views of domestic and foreign scientists are analyzed regarding the subject-functional and monetary definition of the enterprises’ capital, а part of which is the cost of technical resources. Understanding the properties of technical resources as a part of the enterprise total capital allowed identifying the basic statements. The relationship between the reproduction of technical resources and their total value in the process of functioning, namely the turnover and transition of their monetary equivalent to the material equivalent and vice versa has been shown. The steps of movement of the technical resources monetary equivalent are presented and considered in three stages: formation of the stage, at which the enterprise money capital is transformed into technical resources; the stage of technical resources production use and that of resources conversion into monetary form in the process of which the relationship between the state of technical resources capabilities and their cost characteristics changes. The character of economic transformations in the process of movement is described; the method of creating and adding cash flow formed by technical resource, to the money capital of the enterprise is considered. It has been proposed to use a linear rate depreciation accounting, from the beginning of the technical resources acquisition and throughout useful life using of the capital discount rate, in order to prevent partial loss of value of the initial capital invested in technical resources. It has been shown that the use of technical resources is expedient until the value of the monetary product is equal to their discounted price. The research pursued showed that for timely innovative reproduction of technical resources as part of the enterprise capital cost, these resources must perform the main function – that of forming additional value (additional profit).

scholarly journals Developments in rural areas in relation with developments in land and water management research in the Netherlands. I. Economic development and rural development plans.

1983 ◽  
Vol 31 (2) ◽  
pp. 125-135
Author(s):  
C. Bijkerk ◽  
C.G.J. Van Oostrom
Keyword(s):  
Water Management ◽  
The Netherlands ◽  
Rural Areas ◽  
Development Process ◽  
Production Volume ◽  
Management Research ◽  
Agricultural Engineering ◽  
Land And Water Management ◽  
Development Plans ◽  
The Cost

Since 1900 seven successive stages can be distinguished in the development of agricultural engineering and in land and water management research in the Netherlands. The development process is traced from the introduction of fertilizers during 1900-1930, through mechanisation, improvement of water management and land accessibility, and increase in the size and specialisation of units, to increasing emphasis on the ecological and recreational value of land. The main features of economical development in agriculture after 1945 are disucssed, including changes in production volume, structure and costs, labour input and productivity, and the cost of wages. The influence of land and water management projects on the rise in agricultural productivity is considered, together with the present policy of selective growth. (Abstract retrieved from CAB Abstracts by CABI’s permission)

Conceptual Model of the Subject of Circular Economy in the Context of Sustainable Development

2021 ◽  
pp. 17-27
Author(s):  
Roman Ivanov ◽  
Keyword(s):  
Sustainable Development ◽  
Circular Economy ◽  
Synergistic Effects ◽  
Economic Behavior ◽  
Negative Consequences ◽  
Positive Effects ◽  
Wave Nature ◽  
The Subject ◽  
Methodological Principles ◽  
The Cost

The article deals with certain issues of the introduction and functioning of the circular economy, the introduction of which allows you to obtain positive environmental, economic and social effects. It is noted that it is characterized by the emergence of synergistic effects in the conditions of development of ecological and economic systems, which create conditions for their advancement towards a state of sustainable development. A model of the subject of a circular economy in the context of sustainable development, which reflects the transformative essence, wave nature and cyclical nature of economic processes within the framework of the wave-particle concept of the formation of economic behavior, is proposed and analyzed. The model is formulated in accordance with the methodological principles of describing material flows, which are based on the phenomenological assumption that their kinetics is isomorphic to the dynamics of a continuous medium. The presented construct was named “economic dipole”. The model is built in the state space, the coordinates of which characterize the quantitative and qualitative indicators of the studied subject. The model reflects the self-organizing nature of the management of a circular economy entity, the balance between production and consumption and cyclical movement within the framework of such a circular economy business model as resource recovery. It minimizes the cost of resources by increasing the efficiency of production through reverse flows. The adequacy and information content of the model was checked by analyzing the fields of speed and motivation, the connection of which in the context of sustainable development is represented by the equation of maintaining overall motivation, which consists of a motivating and compensating component. It is shown that the subject of the circular economy is more motivated for sustainable development and overcoming the negative consequences of production than for maintaining the existing state, which reflects the key positive effects of introducing a circular economy.

scholarly journals QUANTIFYING THE UNCERTAINTY OF SOLAR PHOTOVOLTAIC SOFT COSTS IN THE “COST OF RENEWABLE ENERGY SPREADSHEET TOOL” (CREST) MODEL

2020 ◽  
Vol 1 ◽  
pp. 2157-2166
Author(s):  
S. M. Syal ◽  
E. F. MacDonald
Keyword(s):  
Renewable Energy ◽  
Development Process ◽  
Solar Photovoltaic ◽  
Financial Barriers ◽  
Solar Photovoltaics ◽  
Cost Of Energy ◽  
Sensitivity Indices ◽  
Project Costs ◽  
The Cost ◽  
Total Project

AbstractWhile solar photovoltaics are projected to grow, major financial barriers exist that impede installation. Soft costs (human-driven costs) can account for over half of total project costs and are often simplified in typical models. We use the National Renewable Energy Laboratory's “Cost of Renewable Energy Spreadsheet Tool” to quantify uncertainty of three soft cost inputs and their influence on the output cost of energy using variance-based sensitivity indices. We then suggest how the development process and model can be redesigned to represent the complexities of this socio-technical system.

Preparing a framework for two-stage target-cost arrangement formulation

2016 ◽  
Vol 9 (1) ◽  
pp. 123-146 ◽  
Author(s):  
Pertti Lahdenperä
Keyword(s):  
Service Provider ◽  
Development Process ◽  
Cost Effective ◽  
Two Stage ◽  
Content Type ◽  
Investment Projects ◽  
Second Stage ◽  
Target Cost ◽  
The Cost ◽  
Concrete Model

Purpose – Early involvement of the project team with the construction resources seems to be gaining popularity as it aims to improve the cost efficiency of a project as there is significantly more potential to influence the project solution at that point in time. The missing price during early involvement/selection and the principal-agent setting, however, tend to leave the project owner in doubt of the reasonableness of pricing when it is fixed only later after the joint design phase involving the service provider and the owner. The purpose of this paper is to find a solution for this challenge. Design/methodology/approach – A two-stage target-cost (2STC) arrangement has been proposed as the solution. In this model the service provider earns a bonus by suggesting a lower target cost than the reference set at the time of the involvement of the provider. The amount of bonus also impacts the cost over-run risk transferred to the service provider to avoid overly optimistic promises. The proposition encompassed just the basic idea, and did not really delve into actual model formulations and their functioning under practical realities. Therefore, the required work is presented here in the form of a conceptual, discursive study focusing on relevant theories and empirical findings from major investment projects. Findings – The study produces a requirement framework for the 2STC model to allow functioning models to be formulated and tested. The framework incorporates numerous requirements, constraints and a suggested path forward. For instance, while the model may not be manipulatable, it must incentivise the service provider to seek more cost-effective project solutions, be feasible also from the view of the project owner and adapt to various project risk profiles and ranges of efficiency improvements. Research limitations/implications – The study suggests more concrete model formulations to be provided under the guidance of the presented framework. Originality/value – The 2STC model is a unique concept and no comparable construct is known to exist. Besides the requirement framework, the study also strengthens the foundation of and need for the 2STC model by a thorough survey of its theoretical linkages. Accordingly, the study presented in this paper forms the second stage in the overall 2STC development process focused on benefiting project owners and the industry.

scholarly journals INCOME INEQUALITY IN UKRAINE: FEATURES OF ECONOMIC BEHAVIOR OF HOUSEHOLDS

2021 ◽  
pp. 5-11
Author(s):  
Fomina O. ◽  
Hoholieva N.
Keyword(s):  
Income Inequality ◽  
Social Relations ◽  
Gini Coefficient ◽  
Population Differentiation ◽  
Household Income ◽  
Economic Behavior ◽  
Concentration Curve ◽  
Practical Significance ◽  
Current Standard ◽  
Food Expenditures

The goal of article is to identify the characteristics of economic behavior of households based on the study of inequality and statistical analysis of their income and expenditure for the period of 2014–2019. The population differentiation according to the level of per capita equivalent income for 2019 was analyzed and Gini coefficient was calculated based on the methods of economic and mathematical statistics. The Lorentz concentration curve was constructed using the graphical-variational method. Based on the method of analysis and synthesis, the resources and expenditures of households in 2014–2019 were studied and conclusions were made about their economic behavior. The calculated Gini coefficient for Ukraine's economy in 2019 is 23.50% which means that there is a moderate level of inequality in the country. The analysis of household income and expenditure statis-tics provides information on low standards of living, as the main sources of household income are wages, pensions, scholarships, and social benefits; the most important item of expenditure is food expenditures. Economic behavior of households, resulting from the current standard of living, the structure of its resources and expenditures, is defined as passive and is characterized by adaptation, conformism and patience of the population to their living conditions, which hinders the active development of so-cio-economic system and the change of economic thinking. The Lorentz curve proves the low level of population differentiation in Ukraine, however, given the high proportion of the poor in the country, there is a need to improve the methodology for collecting and compiling statistical information. The scientific novelty is in the practical application of the method of calculating the Gini coef-ficient and construction of the Lorentz concentration curve on the basis of data from the State Statistics Service was developed. Based on the analysis of household income and expenditure, the type of their economic behavior was defined as passive. The practical significance is in the basis for the study of different types of economic human behavior in the system of social relations based on the analysis of socio-economic inequality was developed. Keywords: income inequality, economic behavior, welfare level, Gini coefficient, Lorentz curve. У статті виявлено особливості економічної поведінки домогосподарств на основі дослідження нерівності та статистич-ного аналізування їх доходів і витрат за період 2014–2019 років. На основі методів економіко-математичної статистики проаналізовано диференціацію населення за рівнем середньодушових еквівалентних доходів за 2019 рік, розраховано коефіцієнт Джині. За допомогою графічно-варіаційного методу побудована крива концентрації Лоренца. Розрахований коефіцієнт Джині для економіки України у 2019 році складає 23,50% та означає, що наявний помірний рівень нерівності в країні. Аналізування статистики доходів та витрат домогосподарств надає інформацію про низький рівень життя насе-лення, оскільки основними джерелами формування грошових доходів домогосподарств є оплата праці, пенсії, стипендії, соціальні допомоги, а найбільш вагомою статтею витрат залишаються витрати на продукти харчування. Економічна по-ведінка домогосподарств, що випливає з поточного рівня життя населення, структури його ресурсів і витрат, визначається як пасивна та характеризується пристосуванством, конформізмом та терплячістю населення до умов їх існування, що заважає активному розвитку соціально-економічної системи та зміни економічного мислення населення. Крива Лоренца підтверджує низький рівень диференціації населення в Україні, але зважаючи на високу долю бідного населення в країні є потреба удосконалення методики збору та формування статистичної інформації. Ключові слова: нерівність доходів, економічна поведінка, рівень добробуту, коефіцієнт Джині, крива Лоренца.

Innovative sustainable methodology for managing in-house software development in SMEs

2018 ◽  
Vol 25 (3) ◽  
pp. 1085-1103 ◽  
Author(s):  
Abbas Tarhini ◽  
Manal Yunis ◽  
Abdul-Nasser El-Kassar
Keyword(s):  
Design Methodology ◽  
Development Process ◽  
System Development ◽  
Content Type ◽  
Agile Methodology ◽  
The Past ◽  
Database Technology ◽  
The Cost ◽  
Selection Of

Purpose The purpose of this paper is to present an innovative agile methodology that proposes fundamental changes in managing the development of in-house information systems in small- and medium-sized enterprises (SMEs) and benchmarks it with one of two database technologies enabling these systems to be both efficient and competitive. Design/methodology/approach The objectives are achieved by presenting an elaborated design of the agile methodology that manages the system development process by addressing three basic components: roles played by system players, process needed to fulfill the system development, and artifacts to document the project. A case study is conducted as a proof of the effectiveness of the proposed methodology and measures whether the selection of the database technology affects the effectiveness of the system development process. Findings Results show that, compared with traditional methodologies, the proposed methodology reduced the cost of system development and testing by 30 percent and enhanced the IT – business alliance. Further, this work found that the selection of a suitable database technology is strongly related to the complexity and interrelationships between the data used. Originality/value Such research did not receive the needed attention (Hunter, 2004) even in the past decade. Successful adoption of IT by companies could be in the form of customized IS which could be expensive for SMEs to adopt due to a lack in technical expertise and financial resources. The proposed methodology has the potential to promote sustainable development through helping SMEs in reducing the time and cost of IT project development.

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