International Journal of Applied Research in Management and Economics <p>The International Journal of Applied Research in Management and Economics is a platform for scientific discussion and knowledge sharing open for all researchers worldwide. The abbreviation for the Journal is IJARME. It provides a forum for both academics and decision-makers to advance theory and application in the fields of Management and Economics. All submitted articles should report original, previously unpublished research results, experimental or theoretical, and will be peer-reviewed. Articles submitted to the journal should meet these criteria and must not be under consideration for publication elsewhere. Manuscripts should follow the style of the journal and are subject to both review and editing.</p> Mokslinės Leidybos Deimantas (Diamond Scientific Publication) en-US International Journal of Applied Research in Management and Economics 2538-8053 Blockchain in Corporate Finance: A Review of Use-Case, Opportunities and Risks <p>In the era of the digital revolution, organizations are surrounded by disruptive technologies and find themselves constantly in the middle of change processes. In recent years, blockchain technology has evolved tremendously, and in the future, it may fundamentally influence and change the finance and accounting domain of the early 21<sup>st</sup> century. Originally the blockchain technology was created only as technology to introduce the cryptocurrency Bitcoin, however by now the blockchain is considered by experts as a major innovation beyond its initial scope.</p> <p>In light of these changing circumstances, innovative opportunities, as well as new challenges, arise. This creates many questions and academic debates among researchers all over the globe as to which business models and functions in the financial sector may become obsolete or where to streamline and enhance processes through blockchain applications.</p> <p>The paper addresses the research question to what extent the blockchain technology is capable of changing well-known business processes and finance functions within companies. In doing so, it shows the opportunities and challenges, which are based on an extensive literature-review by the authors. The paper presents current use cases on market and finishes with an outlook on the future potential of blockchain.</p> Gianfranco Marotta Cam-Duc Au Copyright (c) 2021 International Journal of Applied Research in Management and Economics 2021-12-20 2021-12-20 4 1 1 12 10.33422/ijarme.v4i1.486 The Effect of Inflation and Corporate Social Responsibility on Share Returns with Profitability as Intervening Variables in the Mining Sector: 2017-2019 Period <p>This study aims to prove the effect of inflation and corporate social responsibility on stock returns with profitability as an intervening variable in mining listed on the Indonesia Stock Exchange. The population of this study is 47 mining sector companies listed on the Indonesia Stock Exchange (BEI). The sampling technique uses a purposive sampling method which has certain criteria in taking samples that have an annual financial report 2017-2019, in order to obtain 22 companies. mining sector is listed on the Indonesia Stock Exchange (IDX). The method of this research uses analysis of Structural Equation Modeling (SEM) based on variance, namely Partial Least Square (PLS). SEM with variance-based PLS so that it can handle two conditions, namely conditions with undetermined factors and conditions where the solution cannot be accepted. This study uses a computer program from smart PLS 3.2 which is to determine which variables are significant to stock returns in mining listed on the Indonesia Stock Exchange for the 2017-2019 period. The results of this research show that: (1) inflation has a significant effect to stock returns; (2) inflation has a significant impact on profitability; (3) corporate social responsibility has a major impact on stock returns; (4) corporate social responsibility has a significant impact on profitability; (5) profitability has a significant impact on stock returns.</p> Verry Allan Dwi Prastyo Slamet Riyadi Sunu Priyawan Copyright (c) 2021 International Journal of Applied Research in Management and Economics 2021-12-20 2021-12-20 4 1 13 29 10.33422/ijarme.v4i1.472 How to influence total costs of sourcing? A case study of SCOPQ with Six Sigma <p>Total cost of sourcing is receiving significant attention from firms in general and purchasing managers in particular. Academic research on lean and six sigma programs has evolved rapidly in the last decade. This study focuses on uncovering most effective sourcing initiatives, which aim to decrease total costs addressing quality issues and Supplier Costs of Poor Quality (SCOPQ). This research aims to update the literature on supply chain management by analysing and verifying the proposed Six Sigma framework through a case study. A case study focused on a set of interviews with practitioners based on a firm located in Germany was used that generates uncaptured insights in previous research of this area. The results of the paper highlight the relevance of building cross-functional teams for achieving continuous improvement and implementing suitable, proven, and appropriated tools. Whereas lean is preferred for scopes as part of processes with few interfaces and medium grade of difficulty, Six Sigma is the most suitable methodology for scopes with a high grade of difficulty or problems involving cross-functional processes. SCOPQ is defined as the costs associated with defects and deficiencies originated by suppliers. For instance, they could include the costs for supplier-related incidents like shortages or failure-related costs, production stop costs, rework costs, complaints, etc. This research not only validates the proposed framework through an in-firm case study, but also confirms the relevance of mitigating and avoiding biases, recommends standardizing processes and texts templates, and the regularly training of the employees involved. Besides of the main goal of investigating Six Sigma's role in reducing quality costs, research results demonstrate the advantage of standardized multilingual texts for the complaint process of global players. The study indentified the influence of English collocations into the complaint process because of the majority of the specialized literature is written in English.</p> Rubén Medina Serrano M. Reyes González Ramírez José Luis Gascó Wanja Wellbrock Copyright (c) 2021 International Journal of Applied Research in Management and Economics 2021-12-20 2021-12-20 4 1 30 49 10.33422/ijarme.v4i1.480 The Imperatives of Financial Instruments to Addressing the Working Capital Challenges of Businesses in the Global Value Chains Trades: The New World Trading Currency <p>The study was carried out to examine the level of awareness on financial instruments and familiarization with any other financial instruments apart from the Letter of Credit (L/C) and Bank Guarantee (BG). Furthermore, it examined the impacts of COVID-19 on business working capital and the level of readiness of the business to take advantage of financial instruments when fully innovated and globally acceptable. The study used primary data obtained through experience, observation, and opinion sampling from thirty businesses in Nigeria with a digital market presence. Data were analyzed using a descriptive statistical method of measures of frequency. From the study, an average respondent is aware of financial instruments application for financing their business working capital. However, very few are familiar with other financial instruments apart from L/C and BG. Unarguably, COVID-19 has impacted business working capital and many respondents are willing to take advantage of financial instruments when fully innovated and globally acceptable based on the principle of good faith amongst all actors in the GVCs trades. The recommendations include the need to embrace the Global Registry of Financial Instruments (GRoFI) and encourage in-country and regional domestication by the Central Banks and Multilateral Development Banks. Furthermore, the global and national leaders may embrace the Multilateral Committee on Financial Instruments (MultiCoFI) to work out the fine details to innovate financial instruments facilitating trade for development.</p> Adedeji Richard Adeshile Copyright (c) 2022 International Journal of Applied Research in Management and Economics 2021-12-20 2021-12-20 4 1 50 59 10.33422/ijarme.v4i1.618 The Impact of Organizational Change on Change Management in ICT sector in the Republic of Croatia <p>In recent years, the information and communication technology (ICT) sector has recorded rapid growth and development and is the driving force of the Croatian economy. At the same time, this sector is characterized by fast and dynamic changes which in the demanding business environment requires an immediate and adequate response, so the question of how organizational changes affect change management in ICT sector in the Republic of Croatia arises. To answer this question, empirical research was conducted. The research sample is structured according to data collected from 103 experts in Croatian ICT sector. It offers sufficient elements to establish a quality methodological framework to monitor the impact of organizational change on change management in this sector. This empirical research offered evidence on the possibility of using the ADKAR model of change management in analysis of need for change, implementation, and monitoring of the course of change in ICT organizations. The research results point to the conclusion that organizational change presented through ADKAR model has an impact on change management and is of key importance for ICT organizations. This paper contributes to a better understanding of organizational change and its significance for change management in Croatian ICT organizations.</p> Ivana Sataić Copyright (c) 2022 International Journal of Applied Research in Management and Economics 2021-12-20 2021-12-20 4 1 60 70 10.33422/ijarme.v4i1.619