Eurasian Journal of Economic and Business Studies

Exploring the Management Perspective in the Formation of Digital Hub

Galiya Seitkan, Kuralay Nurgaliyeva, Aigul Akparova — Sat, 30 Mar 2024 00:00:00 +0500

The rapid growth of the term digitalization was seen throughout the COVID-19 pandemic all over the world. Digitization and ICT have become a part of people’s lives. Currently, the concept of digital or technological hubs is relevant. The purpose of forming those hubs was to interact with the stakeholders and provide them with the resources (technological services, competent ICT specialists, financial investments, qualitative training, accelerating start-ups, incubators) to come to the best solution as in the global questions arriving in the world by improving the network and ecosystem, also in business questions occurring in the society. The appropriate infrastructure is needed to form such hubs, including competent personnel, technologies, finances, markets, and other resources. The purpose of this article is to identify the level of ICT, management, business, economics, and students’ familiarity and interest in the digital hub concept and examine the influence of the number of universities on the number of students, number of graduated students, and employed population of 15-28 years old by economic activities. The methods of systematic literature review of foreign literature, quantitative survey, and correlation analysis were used in the paper. The students from different universities in Kazakhstan took part in the survey. The survey's findings revealed that the vast majority of aspiring specialists are enthusiastic and confident about their plans to work in the ICT industry.

Assessment of the Global Experience of Strategies for Gender Asymmetry Reduction

Anel Kireyeva, Yerkezhan Kenzheali — Sat, 30 Mar 2024 00:00:00 +0500

Gender asymmetry often denotes significant gender inequality, encompassing disparities in societal norms, cultural convictions, and historical legacies. This asymmetry results in an unequal distribution of opportunities, resources, and power between individuals of different genders, with one gender often enjoying certain privileges over the other. This article analyzes the effectiveness of implemented and tested strategies in reducing gender asymmetry, with a special focus on four countries such as the United States, Great Britain, Germany and Kazakhstan. Special attention is paid to comparing approaches and results in different countries, which makes it possible to identify the most successful practices and general trends. Despite the implementation of various government policies and standards aimed at achieving equal pay for employees of all genders, women still tend to receive lower salaries compared to their male counterparts, even when they hold similar positions and perform similar job responsibilities. Through meticulous investigation and the application of statistical methodologies, it is attempted to gauge whether these strategies have contributed to a reduction in gender asymmetry, comparing the statistics from 2019 to 2023 for the outcomes’ evaluation. In conclusion, the article offers recommendations for the development and implementation of effective strategies that can be used by governments and organizations to further promote gender equality.

Artificial Intelligence Models for Predicting Budget Expenditures

Sat, 30 Mar 2024 00:00:00 +0500

This study develops and tests a machine learning (ML)-based cost forecasting model against traditional earned value management (EVM) techniques. Utilizing Python for ML implementation, the research applies algorithms to a dataset of completed projects globally, evaluating their performance with metrics like mean absolute percentage error (MAPE) and percentage error (PE). The results confirmed that ML give more accurate results than the traditional methods. Thus, the initial rate showing that XGBoost is more accurate than the traditional method using Index-2 is 88%. In 23 of 25 randomly selected projects, this algorithm was more accurate. At the middle stage, the same frequency is 92.6%; later stage, the selected criterion further confirms that the ML algorithm is more accurate than the traditional method, accounting for 75% of 21 projects out of 28. By introducing ML into project management forecasting, managers could spend less time on the technical tasks in their projects. Despite its effectiveness, the study's scope is limited by a small sample size of 110 projects and the testing of only three algorithms. Future research is suggested to expand the dataset and explore additional algorithms, including neural networks and tree-based methods, to enhance forecasting precision.

Impact of Scientific Activity and Innovation on Economic Competitiveness: An Analysis of Kazakhstan

Sat, 30 Mar 2024 00:00:00 +0500

This study is aimed to evaluate the influence of scientific activity and innovation on the economic performance of a country, measured by Gross Domestic Product (GDP), using Kazakhstan as a case study. Employing Partial Least Squares Path Modeling (PLS-PM), a variance-based Structural Equation Modeling (SEM) approach, the research analyzed secondary data to explore the structural relationships between scientific investment, activity, and their subsequent impact on GDP and innovative organizational activity. The methodology was centered on assessing the measurement model for reliability and validity, and the structural model for the strength and significance of the relationships using path coefficients and R-squared values. Hypotheses were formulated to test the expected positive influences of scientific activity and internal R&D costs on GDP, and the role of scientific activity in driving innovative activity within organizations. The results indicated a positive relationship between scientific activity and GDP, confirming the hypothesis that science contributes significantly to economic development. Internal R&D costs were found to have a strong positive impact on scientific activity, highlighting the importance of R&D investment. However, innovative activity within organizations showed a negative association with GDP, suggesting a more complex relationship that may not lead to immediate economic gains. Scientific activity was also seen to positively influence organizational innovation. The study’s findings emphasize the need for strategic planning and investment in scientific research and education to bolster economic development.

Sustainability Complexities in Supply Chains: A Qualitative Study utilizing Social Systems Theory

Alexander Neske, Ilona Bordiyanu, Christian Brauweiler — Sat, 30 Mar 2024 00:00:00 +0500

The purpose of this paper is to explore which sustainability complexities firms see in their supply chains. As supply chains consist of various actors and the consideration of sustainability requirements in supply chains adds to the complexity of the management of the supply chains, we apply the social systems theory as a theoretical framework enlighten inherent complexities. For investigating the research purpose, this study carried out multiple case studies with firms in the agriculture sector as these firms rely on the natural habitat and produce or source agricultural products face high expectations but also pressures from various actors. The interviewed firms were from textiles, beverages, coffee, food, non-food, cosmetics, ingredients and chemical branches. In total, this study conducted 26 semi-structured interviews with sustainability responsibles. The findings show, which different sustainability complexities firms in different branches see. By that, this study contributes to the literature as it is to the best of our knowledge the first utilizing social systems theory in the context of sustainable supply chain management. Second, for reducing sustainability complexities firms need to view and understand their relevant sustainability complexities first. Third, this paper contributes with managerial implications as firms can use our research as a starting point for identifying sustainability complexities and coping with them.

Impact of Economic and Social Factors on Urban Development: A Comprehensive Analysis of Cities in Kazakhstan

Maxat Shakibayev, Kuralay Balginova, Murat Aimurzinov, Aizhan Baimukhamedova — Sat, 30 Mar 2024 00:00:00 +0500

This study presents a comprehensive analysis of the development dynamics of cities in Kazakhstan, focusing on the interplay between economic and social factors and their impact on the Gross Regional Product (GRP). Employing a dataset encompassing a range of indicators, cities were categorized into development groups (Highly Developed, Moderately Developed, Less Developed) based on normalized composite scores. The study aimed to test two central hypotheses through Partial Least Squares Regression (PLSR) analysis: firstly, that economic factors are significant positive determinants of GRP, overshadowing the influence of social factors; and secondly, that social factors significantly influence GRP, with economic factors playing a lesser role. The analysis revealed that economic factors, including SME activity, retail trade, fixed capital investment, and tax revenue, exhibited a substantial impact on GRP, whereas social factors like population growth, average salary, and income levels showed relatively less influence. The findings underscore the predominance of economic determinants in shaping regional productivity, providing critical insights for strategic urban development planning and policy-making. By highlighting the differential impacts of economic and social factors on urban development, this study contributes to the broader understanding of regional growth dynamics and offers a data-driven foundation for targeted developmental initiatives in Kazakhstan's urban centers.

Higher Education and Urban Development: Market Dynamics and Gender Differences

Anna Kredina, Aisulu Dzhanegizova — Sat, 30 Mar 2024 00:00:00 +0500

The study is devoted to analyzing the impact of higher education on urban development, with an emphasis on the cities of Kazakhstan. The paper examines the role of universities in economic growth and the social and cultural life of cities, as well as the impact of the quality of educational programs on the employment of graduates in the context of meeting the requirements of the labor market. The problems of obsolescence of the theory of human capital development against the background of the development of artificial intelligence and changes in the employment structure caused by digitalization are highlighted. The authors draw attention to the contradictions between urban development and the decline of small settlements caused by heterogeneity in access to the Internet and digital technologies. The issue of gender disparity in access to education and its impact on employment is raised. The study presents the results of an initial survey of Kazakhstan students to identify their expectations of university education and its role in future employment. Hypotheses about the perception of the competitiveness of diplomas, the correlation between accessibility and quality of education, and gender differences in the assessment of these aspects are analyzed. The study's results emphasize the importance of cooperation between the state and educational institutions for the development of cities and the training of qualified specialists capable of meeting the needs of the modern labor market.

Reduction of Inequality of Regions as a Factor of Sustainable Development: The Case of Western Macro-region of Kazakhstan

Nailya Nurlanova, Farida Alzhanova, Aizhan Tleuberdinova, Makpal Bekturganova — Sat, 30 Mar 2024 00:00:00 +0500

The most critical Sustainable Development Goals (SDGs) are the promotion of sustainable economic growth, the eradication of poverty, and the reduction of inequality within countries. The hypothesis of the study is the assumption that the achievement of the SDGs in the country depends on the reduction of socio-economic inequality in the West Kazakhstan regions, which includes four regions of the country: Mangistau, Atyrau, Aktobe, and West Kazakhstan. This formulation of the question is because earlier studies by the article's authors indicate a discrepancy between the level of social well-being of a given region and the actual contribution to the development of the country’s economy. The aim of the article is to study the dynamics and degree of socio-economic development inequality of the Western Kazakhstan region and to develop recommendations on measures of state regulation to reduce it. To achieve this goal, the methods of generalization, concretization, economic-statistical, index, and comparative analysis were used. The result was a system of indicators for measuring the level of socio-economic stability of regions, taking into account country specifics, a study of trends, and an assessment of the degree of inequality in the socio-economic development of the regions of Western Kazakhstan, and recommendations for improving regulatory methods to reduce regional disparities. The authorities can use the recommendations to make decisions on achieving the Sustainable Development Goals in the regions of Western Kazakhstan.

The Role of Economic Investments in Mitigating Poverty Across Urban and Rural Kazakhstan

Gaukhar Kenzhegulova, Aruzhan Jussibaliyeva, Dinara Mussabalina — Sat, 30 Mar 2024 00:00:00 +0500

This study employed a comprehensive analytical approach to examine the relationships between investments in healthcare, education, and other economic sectors and their impact on poverty levels in Kazakhstan in urban and rural contexts, allowing for nuanced insights into the differential impacts of investments across these settings. The analysis was structured around evaluating correlations, regression modeling, and ANOVA tests to assess the significance of the observed relationships. Results revealed significant positive correlations between investments in healthcare and education and poverty reduction, with these investments demonstrating a powerful impact in urban areas. Investments in other economic sectors, such as agriculture, industry, and construction, also showed correlations with poverty levels, underscoring the importance of integrated investment strategies. However, regional disparities in investment impacts were evident, highlighting the need for tailored approaches to address the unique challenges and opportunities in specific areas of Kazakhstan. Notably, the study identified particular regions requiring more focused attention due to fluctuations in sectoral contributions to the Gross Regional Product (GRP), variations in investment levels, and the distinct challenges rural areas face. The findings support the hypotheses that investments in healthcare and education significantly affect poverty reduction, with implications for policymakers and regional development strategies.

Evaluating Public-Private Partnership Dynamics: the Kazakhstan Toll Road Case

Andrey Samoilov, Timur Narbaev, Gabriel Castelblanco, Yerzhan Mukashev — Mon, 01 Apr 2024 00:00:00 +0500

The holistic collaboration between the government and business through public-private partnerships (PPPs) is crucial in developing economies in transition. With the help of the PPP mechanism, emerging economies realize new and maintain existing social and economic infrastructure projects in education, energy, transportation, and healthcare. This lessens the funding burden on the state budget and attracts private investment and expertise into the economy. However, one of the critical tasks is to engage a suitable private partner with whom a long-term relationship can be built for mutual benefit. The most vital issue in establishing and maintaining the PPP collaboration with such a partner is related to the appropriate management of business risks. This study focuses on the success of an infrastructure project for a private partner by analyzing the critical risks inherent in PPP projects. The research uses system dynamics (SD) modeling, which qualitatively and quantitatively determines how each risk affects the project realization. The study examines the largest PPP project in Central Asia, the Big Almaty Ring Road. This toll road project is taken as a case to demonstrate the impact of the most critical risks on the success of the PPP projects. For the simulation, the “hard tolls” form, which is one of the popular payment mechanisms in the global PPP practice, is considered where the private partner bears most of the risks. The findings show the riskiness of such a payment mechanism in implementing toll road projects with existing traffic and tariffs under conditions of uncertainty typical for Kazakhstan and other similar developing countries.