ISSN 1987-5789 ESSN 2587-5426
doi 10.52340

Journal number 3 ∘

Journal N3, 2024 content

„ECONOMICS and BUZINESS“ VOLUM XVI, N3, 2024 C O N T E N T S ECONOMIC THEORY ◊ ECONOMIC POLICY Revaz Gvelesiani, Irine Gogorishvili - Factors Facilitating and Impeding the Implementation of the Phygitalization of Education in Georgia Rusudan Sirbiladze - Theoretical Aspects of the Development of Brown and GreenGigi Elizbarashvili - “The Lader” of Economic Prosperity of Post-Communist Georgi BUSINESS ◊ MANAGEMENT Giorgi Gaganidze, Badri Ramishvili - Determination of the Optimal Level of the Span of a Management and its Influence on the Formation of the Organizational StructureUshangi Samadashvili - The Role of Innovative Entrepreneurship in Georgia’s Sustainable Economic DevelopmentShota Shaburishvili - The Study of National Competitiveness Determinants in Case of GeorgiaZhana Tolordava - Profiling and its role in businessTengiz Verulava - The Dilemma of Rationing Health Services MARKETING &lo

Journal number 3 ∘ Revaz Gvelesiani ∘ Irina Gogorishvili ∘

Factors Facilitating and Impeding the Implementation of the Phygitalization of Education in Georgia

doi.org/10.52340/eab.2024.16.03.01 journal N 3.2024 The main features of the digitalization of education are: integration of information technologies into the educational process; simplification and expansion of access to information; Digital technologies have made it possible to create interactive teaching materials and classes, as well as personalized curricula; Educational practice and teaching methods have undergone a transformation in many aspects. The offer of online courses, virtual universities and international educational projects has increased all over the world, making education more accessible. Digitalization, reforming the educational environment, has expanded the possibilities of using traditional methods and enriched learning with new forms of interactivity. Successful digitalization of education requires a balance between technical innovations and participants in the learning process. To ensure an optimal educational experience, the introduction of new technologies m

Journal number 3 ∘ Rusudan Sirbiladze ∘

Theoretical Aspects of the Development of Brown and Green Economy

doi.org/10.52340/eab.2024.16.03.02 The article presents theoretical aspects of modern brown and green economic development. It considers the characteristic for brown and green economics, unlimited economic growth of brown economics, thus, isolation of green economic growth from using natural resources. Non-renewable energy sources of brown economics, renewable energy sources of green economy, an intensive utilization of natural resources of brown economy, energy and material intensity, energy efficiency of green economy and its results. Greenhouse gases of brown economy, pure manufacturing of green economy. Destruction of bio-diversity of green economy, global social inequality of brown economy, inter generative and inter regional equity of green economy, unlimited consumption of brown economy (more usage), sustainable consumption of green economy, non-existence of corporative-social responsibility for business and investors in brown economy, corporative and social responsibility for

Journal number 3 ∘ Gigi Elizbarashvili ∘

“The Lader” of Economic Prosperity of Post-Communist Georgia

doi.org/10.52340/eab.2024.16.03.03 After the disintegration of the communist system, post-communist countries have been undergoing development for more than 30 years. The communist regime imposed dictatorial objectives on these countries, impeding natural progress and leaving a significant legacy of economic hardships and disrupting economies. The extent of this impact varied for each country, depending on its socio-economic circumstances at the time of the Soviet Union's collapse or earlier, resulting in differing strategies for overcoming these difficulties. Notably, the Federal Republic of Germany is excluded from the discussion of post-communist countries in this article due to its rapid development after merging with West Germany, making meaningful comparisons with other post-communist countries unfeasible.The principal strategy employed by post-communist countries to address the substantial impact of the command economy was the transformation of state institutions from the commu

Journal number 3 ∘ Giorgi Gaganidze ∘ Badri Ramishvili ∘

Determination of the Optimal Level of the Span of a Management and its Influence on the Formation of the Organizational Structure

doi.org/10.52340/eab.2024.16.03.04 It has been about a century and a half since mankind used the scientific method to improve the management of organizations. From the second half of the 20th century, management itself became one of the directions of science. During this time, many governance problems have been solved through the scientific approach, and many still need to be solved. One of them is the issue of the optimal span of a management, which has been debated by scientists and practitioners for more than a century. Each organization during its creation, has a problem of determining the span of a management. In this case, it does not matter what form of ownership has organization or what type of the organizational-legal basis is used. With the development and consolidation of organizations, this question only gets worse.Quite a large share of those studies that are conducted in the direction of management all over the world, concern the definition of the optimal span of a manag

Journal number 3 ∘ Ushangi Samadashvili ∘

The Role of Innovative Entrepreneurship in Georgia’s Sustainable Economic Development

doi.org/10.52340/eab.2024.16.03.05 The paper explains the essence and importance of innovative entrepreneurship as the basis of economic development; Scientific views on innovation and entrepreneurship are systematized; The inadmissibility of using "innovation" and "invention", "innovative activity" and "innovative activity" as synonyms is shown; Classification of innovations according to object, process and intensity is given; There is a difference between the innovation cycle and the innovation life cycle; Facilitating and hindering factors for the activation of innovative activities have been identified; The stages of innovation process and innovative entrepreneurship are different from each other; The characteristics of "radical innovation" and "incremental innovation" are highlighted; Entrepreneurship is classified according to the degree of innovation: "business", "traditional entrepreneurship" and "innovative entrepreneurship. Such a separation is made only at the theoretical l

Journal number 3 ∘ Shota Shaburishvili ∘

The Study of National Competitiveness Determinants in Case of Georgia

doi.org/10.52340/eab.2024.16.03.06 National competitiveness is a key issue in the research of contemporary economists and enhancing it represents a pressing problem for the economic policy of any country. Its importance has especially increased under conditions of globalization, as more countries and companies are involved in competitive battles. With the deepening of globalization processes, the determinants of national competitiveness are constantly changing. In this process, the role of natural resources, climatic conditions, geographical location, and other static factors (factors inherited by countries that cannot be increased) is diminishing. At the same time, the role of dynamic factors, whose improvement depends on the economic policies and entrepreneurial models of a specific country, is increasing – such as a country’s innovative potential, technological dynamism, human resources, the level of infrastructure development, etc. National competitiveness ensures a co

Journal number 3 ∘ Zhana Tolordava ∘

Profiling and its role in business

doi.org/10.52340/eab.2024.16.03.07 Presently the comparatively new practice of profiling is being widely used in various fields of activity throughout the world. Profiling is a set of methods designed for recording and analysis of a person's psychological andubehavioralucharacteristics to determine his(her) stereotypical behavior and use it in such activities as: predicting personnel and management risks, determining loyalty to established societal rules and norms, non-instrumental detection of falsity, prediction of basic models of social, economic and electoral behavior [1].  Initially, profilers in investigative practice were creating behavioral portraits of suspects using scientifically proven methods. This has led to an environment where today profilers work not only in investigative agencies, but also help solve business, HR, and electoral issues. The field of profiling has become very important and indispensable.There are several main directions of profiling, such as busines

Journal number 3 ∘ Tengiz Verulava ∘

The Dilemma of Rationing Health Services

doi.org/10.52340/eab.2024.16.03.08 Health rationing has been the subject of debate in health economics in recent years. It is a concept that deals with the allocation of limited healthcare resources. Due to the increase in the demand for health services, the costs increase significantly, which leads to the need for rationing of health care to provide medical services to patients. However, the public discourse on this issue mainly focuses on ethical considerations, with less emphasis on economic rationality. The economic rationality of health rationing is essential to healthcare decision-making. Health rationing includes 3 important concepts: scarcity, resource limitation, and exclusion. Thus, rationing in the health sector means the limitation of resources (including funding) directed to medical services and the fair distribution of these limited resources.In Georgia, where public health spending is limited, health rationing will help healthcare decision-makers ensure maximum benefit

Journal number 3 ∘ Nugzar Todua ∘ Levani Danelia ∘

The Impact of Social Media on Consumers Purchase Decisions for Travel Services (A Study Using the Technology Acceptance Model)

doi.org/10.52340/eab.2024.16.03.09 the 21st century, the rapid development of digital technologies has fundamentally transformed all aspects of our lives, which is why companies, for the most part, have switched to electronic information services. In this case, a special role is assigned to social media, which influences the behavior of tourists. Indeed, social media is a digital platform that allows users to interactively create and share different topics, opinions and experiences with each other.Today, companies use social media to create successful branding strategies and develop diverse channels of communication with consumers.At the modern stage, social media has become an integral part of the tourism industry, and it plays an important role in consumers' selection of destinations. Social media platforms allow consumers to find concise and relevant information related to tourism. However, each consumer has a specific desire and intention to control their travel experience, which

Journal number 3 ∘ Shadi Valizadeh ∘ Dr. Bijan Nahavandi ∘ Dr. Nasser Rezaei ∘

The Role of Culture in Choosing a Tourism Destination (Case Study: Old Tbilisi, Georgia)

doi.org/10.52340/eab.2024.16.03.10 Although limited investigation was undertaken to delve into the significance of cultural worldview and authenticity within a goal-oriented behavioral approach, the current study analyzed tourism innovation's role in determining whether cultural worldview, authenticity, and tourism innovation significantly influence the decision-making process concerning visits to cultural tourism destinations. The statistical population of this research included Iranian travelers who visited Georgia, particularly in the Old Tbilisi region, a randomly selected sample of 384 individuals received and completed questionnaires for the research. The findings were assessed through structural equation modeling conducted via AMOS software. Contrary to expectations, the study revealed that cultural worldview has a lower role in the goal-oriented behavioral approach to creating the behavioral intention of Iranian tourists to visit old Tbilisi. There is no significant effect on

Journal number 3 ∘ Lali Okroshidze ∘

Price Competitiveness of Georgia as a Tourist Destination During and Post-COVID-19 Pandemic

doi.org/10.52340/eab.2024.16.03.11 This study investigates Georgia's price competitiveness as a tourist destination during and after the COVID-19 pandemic. It compares Georgia with its neighboring countries (Txrkiye, Russian Federation, Azerbaijan, and Armenia) using factors that influence price competitiveness. The analysis uses the World Economic Forum's Travel & Tourism Competitiveness Index (TTCI) variables, focusing on four key indicators: ticket taxes and airport charges, hotel price index, purchasing power parity, and fuel price levels. For the analyses, the study uses ANOVA and IQR statistical tests. The findings show that Georgia, despite efforts, holds an intermediate position compared to its neighbors due to high regional competition. The study emphasizes the need for Georgia to improve service quality instead of just reducing prices to enhance its tourism competitiveness post-pandemic. The proposed methodology can be applied to competing regional countries, as included

Journal number 3 ∘ Mariam Vardiashvili ∘

Review of Measurdemen-Related Changes in International Public Sector Accounting Standards (IPSAS)

doi.org/10.52340/eab.2024.16.03.12 To recognize elements in financial statements, it is necessary to establish monetary value. This is achieved only through the process of measurement that requires the selection of the appropriate basis and method.The main difference between the basis and methods of measurement used under IPSAS and IFRS is the applicability of fair value.Fair value can be difficult to use in the public sector, due to the following reasons:Many assets are stored for current operating use, and it is impractical to get a selling price; • If the asset cannot be sold, the costs of revaluating the asset may outweigh the benefits of the revaluation; and• Many assets are either specialized or limited, which means there is no market for the, making it difficult to determine fair value.Prior to the change, fair value was not offered as a basis for measurement on the conceptual basis of public sector financial reports, even though many IPSAS inclused fair value in meas

Journal number 3 ∘ Merab Jikia ∘

Factor Analysis Methodology Improvement Issues

doi.org/10.52340/eab.2024.16.03.13 All events and processes of economic activity of enterprises are in interrelation, interdependence and mutual conditioning. One group of them is directly dependent on each other, and the other group – indirectly. Each event can be considered as a cause or consequence. If in the process of analysis this or that indicator is seen as the result of one or more reasons and presented as an object of research, then when studying the relationship it is called resulting , and the indicators that determine the behavior of the properties of the resulting indicator are called factor indicators.Each of the resulting indicators depends on many different factors. The more detailed the deviations of the main factors, their causes and their impact on the value of the resulting indicator are investigated, the more accurate the results of the analysis and evaluation of the company's work will be. Without a thorough and in-deep study of factor deviations, it is im