The paper presents an overview of new network and networking ideas as well as their impact oncontemporary changes in economy and culture under conditions of globalisation and intensive development of international business. Networking processes and new network-based development tendencies in economy and culture are described and defined as a particularly important field of scientific cognition. The complexity and systematics of networking and network-creation processes are analysed. The main focus is on the idea that they could be perceived as one of the most important priorities of the modernisation of contemporary economy and culture, as well as of social, economic, and political development as well as scientific and technological progress. Promising directions of the scientific research on networking and networks are also characterised.

This article aims to compare the situation in the banking sectors of two regions that have much in common due to their political and economic history: the Western Balkan states of Serbia, Croatia, and Macedonia and the Baltic Sea states of Lithuania, Estonia, and Latvia. It presents three approaches to defining banking stability that can be found in literature and carries out a preliminary analysis of the financial performance of the discussed banking sectors using the CAMEL approach. Although in 2010 the banking sectors of the Baltic Sea states were in a worse shape than the banking sectors of the Western Balkan states, it has been proved that the banking sectors in countries in which the process of economic transformation has been completed could recover from a crisis faster than states that are still undergoing this process. Economic transformation is essential for the further development of the market economy and the sooner it is completed, the sooner the banking sector can develop and the easier it will be to recover from a crisis or an external shock.
 

The paper analyses the innovation capabilities and development of the Baltic Sea region within the framework of the Europe 2020 strategy. The ongoing structural change towards service and knowledge societies, innovations, and the increasing integration of markets will have considerable influence on the European Union. In March 2010, the European Commission presented the Europe 2020 strategy, which is supposed to push the EU to become the smartest and most competitive region in the world. Among the EU member states, the Baltic Sea countries are effective in bringing up innovative solutions and establishing cooperation between science and business. However, the Europe 2020 strategy sets ambitious goals and some of the Baltic Sea countries will presumably fail to meet them. The enormous disparities between the countries and between central and peripheral regions within a country can thus be observed in selected indicators. These findings need to be recognised to intensify the efforts to transform the region into an innovation leader.

Relations between different fields of tertiary education and the innovativeness of an economy
The main aim of the paper is to determine the relations between the education in different fields of university study and the innovativeness of an economy. The research method is an analysis of the correlations between the number of graduates in particular fields and the number of patent applications filed in given country. The study confirms the hypothesis that not all numbers of tertiary education graduates are positively correlated with innovativeness indicators. The strongest statistically relevant correlation was found between the number of patent applications and the number of graduates in medicine, science, humanities and arts, and engineering. Another relevant correlation was found between the number of patent applications and the number of graduates in social sciences, business and law, and education, but only several years after they had finished studying. There is no correlation between the number of patent applications and graduates in agriculture or services.
 

The aim of the article is to answer two questions fundamental from the perspective of the EU customs union: Do the new regulations introduced by the Union Customs Code (UCC) affect the functioning of the EU customs union as a whole? And will the UCC guarantee the uniform application of customs legislation throughout the EU customs area by the customs service of each member state? In order to answer these questions, the paper analyses the prerequisites for the modernisation of EU customs legislation and indicates the main objectives of the introduced changes. An in-depth analysis of new solutions and regulations, particularly those concerning the simplification of customs service businesses and the implementation of customs procedures, proves that the new Customs Code includes several solutions previously regulated by national legislation of the member states. This resulted in the lack of transparent and uniform customs guidelines for all EU customs administrations. The UCC provides equal treatment for economic operators, including uniform rules for access to simplifications and facilitations of customs services. The analysis carried out in the article allows to formulate the following conclusions:
1. The wide scope of regulations contained in the new customs legislation, set out in the UCC Regulation and in the implementing and delegated acts, is likely to contribute to improving the functioning of the customs union and ensuring security in the EU.
2. Since the new rules have only been in force for a short period so far, the impact of the UCC on the functioning of the customs union cannot be unequivocally assessed. It is necessary to further monitor the implementation of the provisions of the Customs Code and the quantitative research in the areas governed by the new rules.
Due to the lack of aggregated statistical data for the period from May 2016 to March 2017 on the use of new customs tools and customs procedures introduced into the economic practice through the legal regulations of the EU Customs Code, a statistical analysis of the effectiveness of the introduced changes was not possible. Therefore, the following research methods have been used in the paper: descriptive method, analysis of literature and legislation, and direct interview method.
 

Globalisation requires global regulation of banking activity, especially of large banks that operate in many countries, whose careless policy can quickly lead to an outbreak of a global financial crisis. The crisis of 2007–2009 has revealed the lack of relevant national and global banking regulations and the weakness of banking supervision. The purpose of the paper is to analyse changes in global banking regulations in the post-crisis era. Particular attention has been paid to the implementation of the Basel III agreement to domestic banking systems and to the regulations introduced in the euro area in connection with the banking union. This article is based on a study of literature and legislation related to banking regulations and supervision. The analysis makes it possible to conclude that with the changes already made, both the global and national banking systems have become safer.

This paper aims at presenting an overview of the six most important trends in the world trade of our times: (1) a continuing expansion of world trade volume – but with declining dynamism, (2) new relations between the old and the new world-trade powers, and (3) further shifts in the sectoral composition of trade flows (commodities, manufactures, and services). In addition, there is the influence of (4) new players in the commodity trade (i.e., the ‘financialisation’ of commodity trade), (5) new forms of enterprise cooperation in manufacturing (production networks, strategic alliances, global value chains), and (6) new tradables in the service sector.

The aim of the paper is to evaluate the main factors influencing the value and dynamics of international trade flows in 2008–2015. The author points to the main factors of the 2009 trade breakdown and 2012–2015 slowdown. Empirical analysis suggests the decline in exports can be largely traced to weaker economic activity, most notably subdued investment growth. The apparent decline in the growth of global value chains also played an important part in the observed slowdown. A small role was also played by the changes in trade policy. For 2012–2015, analysis reveals a significant impact of the decrease in export prices on global trade value, which has been growing at a similar rate as world GDP in volume terms, whereas in value terms the growth rate is much lower.

Foreign direct investment is generally perceived as a source of benefits for the countries that receive it. The expected effects of FDI lead countries to compete with each other by creating favourable conditions for long-term investments, i.e., a favourable investment climate. However, the actions undertaken may not only attract foreign capital, but also discourage investment and lead to the withdrawal of invested capital. The primary objective of this study is to identify the factors influencing the investment climate in Lithuania, Latvia, and Estonia. Factors influencing FDI inflows to the Baltic countries were evaluated and divided into what foreign investors perceive as incentives and barriers. Finally, the results allowed to determine the directions of change for the analysed economies.

The aim of this article is to examine the trends in Polish FDI targeted at the service sector, paying particular attention to the structural changes within the FDI and their deployment for tax optimisation. The research was based on statistical data from Narodowy Bank Polski (Central Bank of Poland), EUROSTAT, and UNCTAD. The research shows the growing importance of the service sector in Polish FDI. This is consistent with general FDI trends. The industry structure of Polish FDI is dominated by holding companies geographically concentrated in offshore financial centres. This indicates that the aim of their activities is to use transnational mechanisms to optimise the tax burden. This phenomenon applies to Polish companies controlled by both foreign and domestic capital. An intensification of the process of fiscal optimisation by use of offshore subsidiary companies has been particularly noticeable in recent years.

The main aim of the paper is to identify the areas and determine the feasibility of trade between Polish and Iranian companies in relation to historical and cultural conditions. The authors describe the complexity of the issue of foreign trade, the determinants of relations between Poland and the Islamic Republic of Iran, and the Iranian economy – its features, strengths and weaknesses, and consequences of the recent UN, EU, and US sanctions. They analyse Iranian international trade in recent years, with particular focus on countries with the largest share of import and export, and trade between Iran and EU countries (including Poland). They also describe the most promising sectors from the point of view of Polish exporters as well as prospective sectors for the import of commodities from Iran to Poland. The authors use primarily descriptive statistical methods of analysis, based mainly on literary research and the latest available statistics published by international organisations. The studies show that there are many areas in which cooperation between Polish and Iranian companies would be possible and profitable for both parties. However, measures should be taken to further remove trade barriers and facilitate the establishment and development of bilateral trade relations.

The aim of the article is to examine the process of Lithuania’s accession to the euro-zone in 2015 and the inflation resulting from the introduction of the euro. Statistical data for the years 2015–2016 did not give cause for concern, but prices for particular goods increased significantly during this period, which caused great dissatisfaction among the Lithuanians. The paper analyses inflation trends and changes in prices for particular goods (including top 40 most purchased products). The comparative meth-od has been used and weight changes have been measured by calculating the annual rates of change for commodity classes in the Harmonized Index of Consumer Prices (HICP) using 2013–2016 data provided by Eurostat, the Lithuanian Statistics De-partment, the World Bank, and the European Central Bank. The analysis revealed that after the introduction of the euro the prices for particular goods and services increased, but the decline in oil prices in the world markets offset those increases in the basket, thus maintaining inflation at a low level.

The article presents the growth story of Islamic financial institutions in the 21st century, observed mostly through the growth in the Islamic assets worldwide. Based on the structural analysis of this Sharia-based system (Sharia defined as a system of legal and ethical norms, based on Qur’an and Sunnah, further developed into fiqh), the article offers a multi-faceted analysis of the current state of Islamic finance. The purpose of the article is to critically analyse the current state of Islamic financial institutions and to identify the key risk areas, constituting important development barriers for the sector. The key identified barriers are: concentration of assets within banking sector, heavy geographical and sectoral exposure, small average size of Islamic financial institutions, lack of clear governing standards, complicated product structures, and lack of skilled personnel. The article also presents secular factors supporting further developments of Islamic finance, mainly rapid growth of Muslim population worldwide and potential ethical aspect of the sector’s risk-sharing model, leading to its ability to reach out beyond Muslim communities. The article predominantly applies a deductive method, based on a secondary data analysis, using the latest available market data and policy papers from institutions like the World Bank Group. Sections of the article draw on the author’s current research on linkages between the structure of the UK-based Islamic banks and their operating cost base.
 

The paper examines different kinds of manufacturing companies with various levels of market orientation. Its main aim was to test whether their level of competitiveness is correlated with their level of market orientation. The paper is based on a quantitative research in which 334 manufacturing companies were examined. For measuring market orientation, the MKTOR scale developed by Narver and Slater was used. The competitive position of the analysed firms was determined using the Competitiveness Index developed by Fonfara. The statistical significance of the observed differences was tested using the Mann-Whitney U-test. The study shows that in every type of manufacturing companies, their competitiveness grows along with increasing market orientation. However, the extent of this growth differs depending on company type. The results also show that it is always beneficial to increase market orientation, as the firms with the highest market orientation belong to the most competitive 5% of manufacturing companies.

The aim of the article is to analyse the main motives for restructuring commercial banks. It investigates the M&A transactions in the Ukrainian banking sector and changes in its trends and assesses the level of banking market concentration and its dynamics in 2010–2016 by calculating the Herfindahl-Hirschman Index based on the volume of bank assets. The main theories that explain the reasons for restructuring commercial banks with the intention of their integration are discussed. The effectiveness of bank mergers is evaluated with the example of PJSC ‘Ukrsotsbank’ and PJSC ‘UniCreditbank’. The financial restructuring mechanism is presented schematically as a sequential plan of action of a commercial bank. The author concludes that success of M&A transactions usually results from a synergy effect, and lack thereof – from irrational actions of management (agency theory of free cash flow) or overestimating the value of the target company (hubris theory). The research methods used in the paper include economic analysis and a critical review of the literature.

The paper presents the results of a research whose main aim was to determine the extent of Internet use in the SME sector and in the distribution of banking services. To reach this objective, direct interviews using a research questionnaire (PAPI) were conducted on a random sample of SMEs operating in the Polish banking market. A total of 1,100 interviews were conducted with managers responsible for selecting a bank to handle the company’s financial operations. It is worth to point out the extensive use of the Internet, which grows along with the number of employees. The main conclusion is that the Internet can be treated as a way of conducting business or as a tool supplementing traditional marketing that provides customers with additional advantages.

The purpose of the study is to provide an understanding of how customer satisfaction affects dimensions of loyalty in the B2B service industry. In this regard, the effect of satisfaction on attitudinal loyalty, behavioural loyalty, price tolerance, complaining behaviour, word-of-mouth marketing, and behavioural intention was explored in the Turkish B2B markets. The hypotheses of the study were tested through a survey conducted in small and medium-sized businesses operating in the electronic security sector. In the analysis of the collected data, explorative factor analysis and simple linear regression were run. According to the findings, the effect of customer satisfaction on the dimensions of loyalty can be presented in descending order as follows: behavioural intention, word-of-mouth marketing, attitudinal loyalty, price tolerance, behavioural loyalty. No significant relationship was found between satisfaction and complaining behaviour. This study is expected to highlight the influence of customer satisfaction on various loyalty dimensions in the B2B service industry in Turkey.

This paper presents an overview of support mechanisms for social entrepreneurship available in the seven Baltic Sea Region (BSR) countries with references to the pertinent literature. Its main aim is to evaluate the mechanisms of support provided by state and local authorities in terms of their influence on the development of the social entrepreneurship sector. The research is based on a survey conducted among representatives of social enterprises from the seven BSR countries and focus group interviews. The hypothesis assumes that that there is a great disparity in the level of support offered to social entrepreneurs in the researched countries; moreover, it is not the kind of support that is expected by entrepreneurs. The study revealed that the expected support mechanisms include: specialised institutions founded by the government, access to direct financial support, and infrastructure support aimed at increasing the capacity of social enterprises. The conclusion is that the existing support mechanisms require greater state and local involvement. Continued efforts are required to make them more accessible and better adjusted to the needs of social entrepreneurs in the researched countries.

International virtual teams are a relatively new form of working organization, closely linked to the global development of information technologies. Their dynamic development is causing growing interest in both advantages and weaknesses of this form of cooperation in international business. The aim of this review paper, in addition to organizing terminology related to different types of teams, is to identify the benefits and shortcomings of this form of working organization. To achieve this aim, the descriptive method and qualitative approach were used. The basic method of collecting qualitative data were unstructured individual and group interviews and observation, in particular participant observation. These were supplemented by data from secondary sources, such as research papers and reports from quantitative studies. A comparative analysis of the data collected from primary and secondary sources allowed to identify the advantages and disadvantages of international virtual teams, with made it possible to formulate conclusions and recommendations.

The purpose of this study is to present the terminology, traits, types, transformation, and trajectory of new product development (NPD) from an interdisciplinary perspective, compare the traditional and modern models, and analyse the side effects of NPD. A descriptive and, in some cases, chronological method is used for data analysis. Data has been gathered from more than a hundred credible literature and online sources. The subject matter is discussed in the context of marketing, engineering, strategy, management, and innovation in order to compile a typology and compare traditional and modern models, counter models, and side effects of NPD. Academic NPD literature has been around for only fifty years and is still relatively young. The study uncovers the transformations of new products and services throughout history, thereby revealing the secrets of a really productive NPD – this however, might not be enough, since the future is too fuzzy, complicated, multi-dimensional, and full of discontinuities.