Abstract Background A significant share of business innovation arises from information and communication (ICT) sector. Business investment into research and development (R&D) activities can be seen as an important basis for innovation, which can further lead to better economic performance. This can be especially true for the ICT sector. Objectives The paper examines the share of the ICT sector on innovation and the total R&D expenditure in selected European countries. Furthermore, our aim is to test the potential positive correlation between R&D expenditure, productivity and the value added in the sector. Methods/Approach The goals of the paper has been tested by empirical data analysis using the pane regression analysis. We examined panel data for 24 European countries in the 2008-2016 period. Results The highest share of business R&D expenditure in ICT has been captured in Nordic countries. Firms in ICT appear to be innovative above the average and represent a significant share in the total business R&D expenditure. Conclusions We found a positive correlation between R&D expenditure and both value-added and apparent labour productivity in the ICT sector. We believe that this could be to some extent attributed to the innovation of products and processes. Hence, the government support in the form of R&D tax incentives can be also beneficial for the economic performance of ICT firms.
{"title":"R&D Investments in the European ICT sector: Implications for Business Performance","authors":"J. Huňady, Peter Pisár, Ina Ďurčeková","doi":"10.2478/bsrj-2020-0025","DOIUrl":"https://doi.org/10.2478/bsrj-2020-0025","url":null,"abstract":"Abstract Background A significant share of business innovation arises from information and communication (ICT) sector. Business investment into research and development (R&D) activities can be seen as an important basis for innovation, which can further lead to better economic performance. This can be especially true for the ICT sector. Objectives The paper examines the share of the ICT sector on innovation and the total R&D expenditure in selected European countries. Furthermore, our aim is to test the potential positive correlation between R&D expenditure, productivity and the value added in the sector. Methods/Approach The goals of the paper has been tested by empirical data analysis using the pane regression analysis. We examined panel data for 24 European countries in the 2008-2016 period. Results The highest share of business R&D expenditure in ICT has been captured in Nordic countries. Firms in ICT appear to be innovative above the average and represent a significant share in the total business R&D expenditure. Conclusions We found a positive correlation between R&D expenditure and both value-added and apparent labour productivity in the ICT sector. We believe that this could be to some extent attributed to the innovation of products and processes. Hence, the government support in the form of R&D tax incentives can be also beneficial for the economic performance of ICT firms.","PeriodicalId":43772,"journal":{"name":"Business Systems Research Journal","volume":null,"pages":null},"PeriodicalIF":1.5,"publicationDate":"2020-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76930059","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Background Blockchain technology has gained a great public interest due to the appearance of cryptocurrencies, a digital asset used for exchanging funds. Although blockchain calculations offer the benefits of security and reduced costs, blockchain is still strongly criticised for its lack of usefulness and resource-heavy consumption. Objectives The aim of this research is to provide different insights into blockchain technology and to propose NP-complete problems as a suitable alternative to the current consensus algorithm. Methods/approach This research discusses the current state of proposed alternatives, projects such as distributed volunteering for scientific purposes and different consensus algorithms within cryptocurrencies but focusing on incorporating NP-complete problems as a secondary, more useful option. Results Using the properties of NP-complete problems, it is possible to solve various problems in different areas, such as science, biology, medicine and finance, but also to improve business processes, optimize markets, payments and supply chains while decreasing environmental costs. Conclusions This paper shows that the alternative mechanisms are being developed and used to substitute an existing Blockchain algorithm with a more efficient one. It also suggests further investigation in this area because the alternatives greatly improve blockchain’s usability and efficiency.
{"title":"Optimizing the Resource Consumption of Blockchain Technology in Business Systems","authors":"Vedran Juricic, Matea Radosevic, E. Fuzul","doi":"10.2478/bsrj-2020-0028","DOIUrl":"https://doi.org/10.2478/bsrj-2020-0028","url":null,"abstract":"Abstract Background Blockchain technology has gained a great public interest due to the appearance of cryptocurrencies, a digital asset used for exchanging funds. Although blockchain calculations offer the benefits of security and reduced costs, blockchain is still strongly criticised for its lack of usefulness and resource-heavy consumption. Objectives The aim of this research is to provide different insights into blockchain technology and to propose NP-complete problems as a suitable alternative to the current consensus algorithm. Methods/approach This research discusses the current state of proposed alternatives, projects such as distributed volunteering for scientific purposes and different consensus algorithms within cryptocurrencies but focusing on incorporating NP-complete problems as a secondary, more useful option. Results Using the properties of NP-complete problems, it is possible to solve various problems in different areas, such as science, biology, medicine and finance, but also to improve business processes, optimize markets, payments and supply chains while decreasing environmental costs. Conclusions This paper shows that the alternative mechanisms are being developed and used to substitute an existing Blockchain algorithm with a more efficient one. It also suggests further investigation in this area because the alternatives greatly improve blockchain’s usability and efficiency.","PeriodicalId":43772,"journal":{"name":"Business Systems Research Journal","volume":null,"pages":null},"PeriodicalIF":1.5,"publicationDate":"2020-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79427238","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Background The automotive world is on the threshold of a new era. Manufacturers are transforming themselves into suppliers of mobility services. Fundamentals for the transformation are customer processes combined with connectivity driven by the Internet of Things. Mobile payment serves as an enabler to most of these services. Objectives This paper demonstrates promising ways how payment-enabled services in the context of connected cars can be designed based on the process thinking approach. Methods/Approach In this paper, the methodology of use cases is applied as a means to develop services for the connected car through process thinking. The use case studied is validated afterwards with industry experts following a semi-structured interview format. Results The use case investigated in the course of the paper suggests that the core characteristics and challenges of these services are already predictable ex-ante by the theoretical framework on which the paper is built upon. In particular, the paper shows the steps needed for a driver’s request for on-demand horsepower for a certain time span along with mobile payment for this service. Conclusions It is concluded that the connectivity paradigm supplemented by mobile payment options enables consistent implementation of customer centricity in terms of process thinking.
{"title":"Mobile Payment in the Connected Car: Developing Services Based on Process Thinking","authors":"L. Petry, J. Moormann","doi":"10.2478/bsrj-2020-0027","DOIUrl":"https://doi.org/10.2478/bsrj-2020-0027","url":null,"abstract":"Abstract Background The automotive world is on the threshold of a new era. Manufacturers are transforming themselves into suppliers of mobility services. Fundamentals for the transformation are customer processes combined with connectivity driven by the Internet of Things. Mobile payment serves as an enabler to most of these services. Objectives This paper demonstrates promising ways how payment-enabled services in the context of connected cars can be designed based on the process thinking approach. Methods/Approach In this paper, the methodology of use cases is applied as a means to develop services for the connected car through process thinking. The use case studied is validated afterwards with industry experts following a semi-structured interview format. Results The use case investigated in the course of the paper suggests that the core characteristics and challenges of these services are already predictable ex-ante by the theoretical framework on which the paper is built upon. In particular, the paper shows the steps needed for a driver’s request for on-demand horsepower for a certain time span along with mobile payment for this service. Conclusions It is concluded that the connectivity paradigm supplemented by mobile payment options enables consistent implementation of customer centricity in terms of process thinking.","PeriodicalId":43772,"journal":{"name":"Business Systems Research Journal","volume":null,"pages":null},"PeriodicalIF":1.5,"publicationDate":"2020-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79715288","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Background: To stay competitive in a highly unpredictable market of today, companies must be able to manage project risks effectively. The basis for an effective risk management is a thorough risk analysis. Despite the availability of many different risk analysis approaches, companies can be reluctant to use them, since the models are usually complex and very time consuming. Objectives: The main objective is to present a simple, yet effective risk analysis approach that can also serve as a useful basis for resolving project risks. Methods/Approach: The proposed standard risk analysis approach is based on a standard risk model that deals with risk events and impacts separately and therefore allows for a separate planning of preventive and corrective measures. To classify risks and to represent them graphically, a risk map is used. Results: The use of the proposed approach is illustrated on a die-cast tool development project. The approach proved to be very simple to use and it served as a useful basis for resolving the identified risks. Conclusions: The main advantage of the proposed approach is its simplicity and clarity. It can also be used as a quick decision-making tool in a subsequent risk resolving process.
{"title":"Standard Project Risk Analysis Approach","authors":"Tena Žužek, L. Rihar, T. Berlec, J. Kušar","doi":"10.2478/bsrj-2020-0021","DOIUrl":"https://doi.org/10.2478/bsrj-2020-0021","url":null,"abstract":"Abstract Background: To stay competitive in a highly unpredictable market of today, companies must be able to manage project risks effectively. The basis for an effective risk management is a thorough risk analysis. Despite the availability of many different risk analysis approaches, companies can be reluctant to use them, since the models are usually complex and very time consuming. Objectives: The main objective is to present a simple, yet effective risk analysis approach that can also serve as a useful basis for resolving project risks. Methods/Approach: The proposed standard risk analysis approach is based on a standard risk model that deals with risk events and impacts separately and therefore allows for a separate planning of preventive and corrective measures. To classify risks and to represent them graphically, a risk map is used. Results: The use of the proposed approach is illustrated on a die-cast tool development project. The approach proved to be very simple to use and it served as a useful basis for resolving the identified risks. Conclusions: The main advantage of the proposed approach is its simplicity and clarity. It can also be used as a quick decision-making tool in a subsequent risk resolving process.","PeriodicalId":43772,"journal":{"name":"Business Systems Research Journal","volume":null,"pages":null},"PeriodicalIF":1.5,"publicationDate":"2020-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76318082","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
S. Drobne, Alberto Garre, E. Hontoria, Miha Konjar
Abstract Background: Functional regions are abstract, uniformly defined territorial units that form an important basis for many development strategies of a country or a region. Objectives: This study analyses the application of network theory to the detection of such regions. Methods/Approach: Functional regions are analysed using two methods based on the graph theory: the Walktrap algorithm and the chain approach. The quality of the two regionalization methods is analysed using the fuzzy set theory with the revised method. Slovenia was used as a case study. Results: The Walktrap algorithm generated eight functional regions; seven of them corresponded to those identified in previous studies. The only difference occurred in the northwestern mountainous part of Slovenia. The chain approach led to similar results, although it resulted in a huge functional urban region of the capital Ljubljana. Conclusions: The results show that the Walktrap algorithm calculates regions that are more closed, where more workers find work in the home region, than the chain approach.
{"title":"Comparison of Two Network-Theory-Based Methods for detecting Functional Regions","authors":"S. Drobne, Alberto Garre, E. Hontoria, Miha Konjar","doi":"10.2478/bsrj-2020-0013","DOIUrl":"https://doi.org/10.2478/bsrj-2020-0013","url":null,"abstract":"Abstract Background: Functional regions are abstract, uniformly defined territorial units that form an important basis for many development strategies of a country or a region. Objectives: This study analyses the application of network theory to the detection of such regions. Methods/Approach: Functional regions are analysed using two methods based on the graph theory: the Walktrap algorithm and the chain approach. The quality of the two regionalization methods is analysed using the fuzzy set theory with the revised method. Slovenia was used as a case study. Results: The Walktrap algorithm generated eight functional regions; seven of them corresponded to those identified in previous studies. The only difference occurred in the northwestern mountainous part of Slovenia. The chain approach led to similar results, although it resulted in a huge functional urban region of the capital Ljubljana. Conclusions: The results show that the Walktrap algorithm calculates regions that are more closed, where more workers find work in the home region, than the chain approach.","PeriodicalId":43772,"journal":{"name":"Business Systems Research Journal","volume":null,"pages":null},"PeriodicalIF":1.5,"publicationDate":"2020-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87974082","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This special issue of Business Systems Research (SI of the BSR) is co-published by the Slovenian Society INFORMATIKA – Section for Operational Research (SSI-SOR) and highlights recent advances in Operations Research and Management Science (OR /MS), with a focus on linking OR /MS with other areas of quantitative and qualitative methods in a multidisciplinary framework. Eleven papers selected for this SI of the BSR present improvements and new techniques (methodology) in Operations Research (OR) and their application in various fields of economics, business, spatial science, smart mobility, higher education, human resources, environment, agriculture and social networks.
{"title":"Editorial for the special issue: “Novel Solutions and Novel Approaches in Operational Research”","authors":"S. Drobne, Ksenija Dumicic, L. Stirn","doi":"10.2478/bsrj-2020-0011","DOIUrl":"https://doi.org/10.2478/bsrj-2020-0011","url":null,"abstract":"Abstract This special issue of Business Systems Research (SI of the BSR) is co-published by the Slovenian Society INFORMATIKA – Section for Operational Research (SSI-SOR) and highlights recent advances in Operations Research and Management Science (OR /MS), with a focus on linking OR /MS with other areas of quantitative and qualitative methods in a multidisciplinary framework. Eleven papers selected for this SI of the BSR present improvements and new techniques (methodology) in Operations Research (OR) and their application in various fields of economics, business, spatial science, smart mobility, higher education, human resources, environment, agriculture and social networks.","PeriodicalId":43772,"journal":{"name":"Business Systems Research Journal","volume":null,"pages":null},"PeriodicalIF":1.5,"publicationDate":"2020-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81652204","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Aljaz Ferencek, D. Kofjac, A. Škraba, Blaž Sašek, M. K. Borstnar
Abstract Background: This paper addresses the problem of products’ terminal call rate (TCR) prediction during the warranty period. TCR refers to the information on the amount of funds to be reserved for product repairs during the warranty period. So far, various methods have been used to address this problem, from discrete event simulation and time series, to machine learning predictive models. Objectives: In this paper, we address the above named problem by applying deep learning models to predict terminal call rate. Methods/Approach: We have developed a series of deep learning models on a data set obtained from a manufacturer of home appliances, and we have analysed their quality and performance. Results: Results showed that a deep neural network with 6 layers and a convolutional neural network gave the best results. Conclusions: This paper suggests that deep learning is an approach worth exploring further, however, with the disadvantage being that it requires large volumes of quality data.
{"title":"Deep Learning Predictive Models for Terminal Call Rate Prediction during the Warranty Period","authors":"Aljaz Ferencek, D. Kofjac, A. Škraba, Blaž Sašek, M. K. Borstnar","doi":"10.2478/bsrj-2020-0014","DOIUrl":"https://doi.org/10.2478/bsrj-2020-0014","url":null,"abstract":"Abstract Background: This paper addresses the problem of products’ terminal call rate (TCR) prediction during the warranty period. TCR refers to the information on the amount of funds to be reserved for product repairs during the warranty period. So far, various methods have been used to address this problem, from discrete event simulation and time series, to machine learning predictive models. Objectives: In this paper, we address the above named problem by applying deep learning models to predict terminal call rate. Methods/Approach: We have developed a series of deep learning models on a data set obtained from a manufacturer of home appliances, and we have analysed their quality and performance. Results: Results showed that a deep neural network with 6 layers and a convolutional neural network gave the best results. Conclusions: This paper suggests that deep learning is an approach worth exploring further, however, with the disadvantage being that it requires large volumes of quality data.","PeriodicalId":43772,"journal":{"name":"Business Systems Research Journal","volume":null,"pages":null},"PeriodicalIF":1.5,"publicationDate":"2020-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91244000","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Background: The project manager choice is one of the most important, complicated and multi-layered decisions in project management. Although the competence of a project manager is the subject of numerous studies, mostly in the field of economic sciences, there are still relatively few studies dealing with project manager selection. Objectives: The aim of this paper is to provide a useful overview of research on approaches, models, techniques, and competencies during the process of selecting project managers, in order to improve understanding an effective process of selecting project managers from academic researchers and practitioners’ point of view. Methods/Approach: This article is a scientific review of previously published studies that are linked to competencies of a project manager and the process of project manager selection according to the traditional and the modern approach. Results: The process of selecting project managers is not sufficiently investigated in Croatia, while most of the research is focused to traditional approach. Conclusions: In this work, we propose a combination of the traditional and the modern approach to the selection of project managers, which would be based on the multicriteria decision making.
{"title":"Selection of Project Managers: An Overview","authors":"M. Kuliš","doi":"10.2478/bsrj-2020-0018","DOIUrl":"https://doi.org/10.2478/bsrj-2020-0018","url":null,"abstract":"Abstract Background: The project manager choice is one of the most important, complicated and multi-layered decisions in project management. Although the competence of a project manager is the subject of numerous studies, mostly in the field of economic sciences, there are still relatively few studies dealing with project manager selection. Objectives: The aim of this paper is to provide a useful overview of research on approaches, models, techniques, and competencies during the process of selecting project managers, in order to improve understanding an effective process of selecting project managers from academic researchers and practitioners’ point of view. Methods/Approach: This article is a scientific review of previously published studies that are linked to competencies of a project manager and the process of project manager selection according to the traditional and the modern approach. Results: The process of selecting project managers is not sufficiently investigated in Croatia, while most of the research is focused to traditional approach. Conclusions: In this work, we propose a combination of the traditional and the modern approach to the selection of project managers, which would be based on the multicriteria decision making.","PeriodicalId":43772,"journal":{"name":"Business Systems Research Journal","volume":null,"pages":null},"PeriodicalIF":1.5,"publicationDate":"2020-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89200580","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Background: In the portfolio optimization area, most of the research is focused on insample portfolio optimization. One may ask a rational question of what the efficiency of the portfolio optimization strategy is and how to measure it. Objectives: The objective of the paper is to propose the approach to measuring the efficiency of the portfolio strategy based on the hypothesis inference methodology and considering a possible data snooping bias. The proposed approach is demonstrated on the Markowitz minimum variance model and the fuzzy probabilities minimum variance model. Methods/Approach: The proposed approach is based on a statistical test. The null hypothesis is that the analysed portfolio optimization strategy creates a portfolio randomly, while the alternative hypothesis is that an optimized portfolio is created in such a way that the risk of the portfolio is lowered. Results: It is found out that the analysed strategies indeed lower the risk of the portfolio during the market’s decline in the global financial crisis and in 94% of the time in the 2009-2019 period. Conclusions: The analysed strategies lower the risk of the portfolio in the out-of-sample period.
{"title":"Portfolio Optimization Efficiency Test Considering Data Snooping Bias","authors":"A. Kresta, A. Wang","doi":"10.2478/bsrj-2020-0016","DOIUrl":"https://doi.org/10.2478/bsrj-2020-0016","url":null,"abstract":"Abstract Background: In the portfolio optimization area, most of the research is focused on insample portfolio optimization. One may ask a rational question of what the efficiency of the portfolio optimization strategy is and how to measure it. Objectives: The objective of the paper is to propose the approach to measuring the efficiency of the portfolio strategy based on the hypothesis inference methodology and considering a possible data snooping bias. The proposed approach is demonstrated on the Markowitz minimum variance model and the fuzzy probabilities minimum variance model. Methods/Approach: The proposed approach is based on a statistical test. The null hypothesis is that the analysed portfolio optimization strategy creates a portfolio randomly, while the alternative hypothesis is that an optimized portfolio is created in such a way that the risk of the portfolio is lowered. Results: It is found out that the analysed strategies indeed lower the risk of the portfolio during the market’s decline in the global financial crisis and in 94% of the time in the 2009-2019 period. Conclusions: The analysed strategies lower the risk of the portfolio in the out-of-sample period.","PeriodicalId":43772,"journal":{"name":"Business Systems Research Journal","volume":null,"pages":null},"PeriodicalIF":1.5,"publicationDate":"2020-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81145130","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Background: The area of pension expectations in Hungary is barely researched. However, the importance of adequate financial literacy and self-provision is becoming obvious at the economic, the decision-making, and the individual level. Objectives: Our research is conducted to investigate state pension expectations and certain aspects of financial literacy of the young generation, and to find a behavioral explanation for their pessimistic attitude. Methods/Approach: Using a 14-question questionnaire, we collected answers from Hungarian financially educated, young people. Two hypotheses were investigated by the Principal Component Analysis (PCA). Besides, a comparative analysis was conducted to connect the survey results with the ten instincts published by Hans Rosling in his book ‘Factfulness’. Results: The outcomes are in harmony with prior expectations, i.e. i) students in finance major are aware of the connection between a longer working period and a higher retirement income; and ii) despite the unisex pension scheme there are gender differences in the expected pension age. In the comparative analysis with ‘Factfulness’, we identified five instincts that lie behind the general pessimism of respondents. Conclusions: State pension expectations of the Hungarian young generation are overly pessimistic, the same attitude being found in international literature, as well. Pessimistic expectations can be explained using some of the ten instincts by Rosling.
{"title":"Pension Pessimism in the Young Generation: Basics or Instincts to Blame?","authors":"E. Kovacs, Ágnes Vaskövi","doi":"10.2478/bsrj-2020-0019","DOIUrl":"https://doi.org/10.2478/bsrj-2020-0019","url":null,"abstract":"Abstract Background: The area of pension expectations in Hungary is barely researched. However, the importance of adequate financial literacy and self-provision is becoming obvious at the economic, the decision-making, and the individual level. Objectives: Our research is conducted to investigate state pension expectations and certain aspects of financial literacy of the young generation, and to find a behavioral explanation for their pessimistic attitude. Methods/Approach: Using a 14-question questionnaire, we collected answers from Hungarian financially educated, young people. Two hypotheses were investigated by the Principal Component Analysis (PCA). Besides, a comparative analysis was conducted to connect the survey results with the ten instincts published by Hans Rosling in his book ‘Factfulness’. Results: The outcomes are in harmony with prior expectations, i.e. i) students in finance major are aware of the connection between a longer working period and a higher retirement income; and ii) despite the unisex pension scheme there are gender differences in the expected pension age. In the comparative analysis with ‘Factfulness’, we identified five instincts that lie behind the general pessimism of respondents. Conclusions: State pension expectations of the Hungarian young generation are overly pessimistic, the same attitude being found in international literature, as well. Pessimistic expectations can be explained using some of the ten instincts by Rosling.","PeriodicalId":43772,"journal":{"name":"Business Systems Research Journal","volume":null,"pages":null},"PeriodicalIF":1.5,"publicationDate":"2020-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77089916","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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