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RIGA TECHNICAL UNIVERSITY 57TH INTERNATIONAL SCIENTIFIC CONFERENCE “SCIENTIFIC CONFERENCE ON ECONOMICS AND ENTREPRENEURSHIP” (SCEE’2016) PROCEEDINGS RIGA – 2016 Editor-in-Chief Prof. Remigijs Počs, Riga Technical University, Latvia Managing Editor Prof. Dr. Tatjana Tambovceva, Riga Technical University, Latvia International Editorial Board Prof. Elina Gaile-Sarkane, Riga Technical University, Latvia Prof. Ineta Geipele, Riga Technical University, Latvia Prof. Natalja Lace, Riga Technical University, Latvia Prof., Dr. Inga Lapina, Riga Technical University, Latvia Prof. Hana Loštakova, University of Pardubice, Czech Republic Dr. David J.Pollard, Leeds Metropolian University, United Kingdom Prof. Olha Prokopenko, Sumy State University, Ukraine Prof. Tatjana Volkova, BA School of Business and Finance, Latvia Technical Editor Maksims Smirnovs, Riga Technical University, Latvia ISBN: 978-9934-10-860-0 ISSN: 2256-0866 Authors are responsible for the correctness of the publications. All rights are reserved. No part of this publication may be reproduced, stored, transmitted or disseminated in any form or by any means without prior written permission from Riga Technical University represented by RTU Faculty of Engineering Economics and Management to whom all requests to reproduce copyright material should be directed in writing. © Riga Technical University, 2016 CONTENTS SECTION “National Economy and Entrepreneurship” SUBSECTION “Business Engineering, Economics, Finance and Management” EFFICIENCY ASSESSMENT CONCEPT MODEL FOR COMPETING COMPANIES I. Arefjevs .......................................................................................................................................................... 12 SUSTAINABLE ECOSYSTEM FOR SMALL BUSINESS G.M.P. Barrientos, D. Ščeulovs........................................................................................................................ 14 KNOWLEDGE-DRIVEN DEVELOPMENT AND INNOVATIVE GROWTH OF THE EUROPEAN ECONOMIES T. Boikova ......................................................................................................................................................... 15 IDENTIFICATION OF CROSS-BORDER CONTAGION RISK TRANSMISSION CHANNELS RELEVANT FOR THE CENTRAL AND EASTERN EUROPEAN COUNTRIES: A QUANTITATIVE APPROACH V.Deltuvaitė ...................................................................................................................................................... 17 ASSESSMENT OF BUSINESS CYCLE SYNCHRONIZATION OF THE CENTRAL AND EASTERN EUROPEAN COUNTRIES V.Deltuvaitė ...................................................................................................................................................... 21 EMPLOYEES PARTICIPATION IN CORPORATE MANAGEMENT: EUROPEAN FRAMEWORK E. Eteris, I. Dovladbekova ................................................................................................................................ 26 PROJECT GOVERNANCE IN CONSTRUCTION COMPANIES: BBETWEEN TRANSACTION COSTS, STAKEHOLDER AND AGENCY THEORIES E. Głodziński, S. Marciniak .............................................................................................................................. 28 DECISION MAKING USING EXPERT INTERVAL ESTIMATIONS V. Jansons, I. Voronova .................................................................................................................................... 30 SENSITIVITY ANALYSIS OF ECONOMIC SYSTEMS IN CONDITIONS OF UNCERTAINTY USING MODELLING V. Jansons, V. Jurenoks .................................................................................................................................... 32 COMPARATIVE EFFICIENCY OF THE INTER-FIRM NETWORK ORGANIZATIONS A. Khizhnyak ..................................................................................................................................................... 34 RISK MANAGEMENT APPLICATION IN SMALL AND MEDIUM SIZED BUSINESS M.Krastins, J. Hermanis ................................................................................................................................... 40 MEASURING PATIENTS' SATISFACTION IN FOR-PROFIT ORTHOPAEDIC HOSPITAL J. Kuzmina ........................................................................................................................................................ 43 LATVIA IN OECD AND BALTIC COUNTRIES’ ROAD TO CORPORATE GOVERNANCE J. Kuznecovs, T.Tambovceva ............................................................................................................................ 45 CREDITOR PROTECTION UNDER COMMERCIAL LAW OF LATVIA – ISSUES AND POSSIBLE SOLUTIONS O. Lukashina, M. Živitere, K. Hamruna ........................................................................................................... 46 A SURVEY ON COMPETENCE AND ADMINISTRATION OF SUPERVISORY BOARD ACTIVITIES IN GERMAN STOCK-LISTED COMPANIES K. Michelberger ................................................................................................................................................ 50 ASSESSMENT OF CREDIT RISK IN THE LATVIAN BANKING SYSTEM: IMPLICATION FOR LENDING RATES V. Micune, S.Balina .......................................................................................................................................... 53 PROCESS MANAGEMENT IN SMALL AND MEDIUM ENTERPRISES M. Millers, E. Gaile-Sarkane ........................................................................................................................... 55 IT AND NON-IT RELATED ASPECTS OF PROCESS MANAGEMENT IN SMALL BUSINESS M. Millers, D. Ščeulovs .................................................................................................................................... 56 CLIENT RELATIONSHIPS AND COMPETITIVENESS OF ADVERTISING AGENCY. THE CASE OF LATVIAN ADVERTISING AGENCIES L. Ozolina, Ē. Šumilo ........................................................................................................................................ 57 MUSSEL FARMING AND ITS ECONOMIC POTENTIAL IN THE BALTIC SEA Z. Ozolina ......................................................................................................................................................... 59 REAL OPTIONS AND DISCOUNTED CASH FLOW ANALYSIS TO ASSESS STRATEGIC INVESTMENT PROJECTS A. Pivorienė ...................................................................................................................................................... 62 E-TRUST AND TRUST UNDERSTANDING COMPARISON IN THE ONLINE AND OFFLINE DIMENSIONS E. Radionova-Girsa, A. Lahiza ......................................................................................................................... 64 PARTICIPATING IN THE STUDY OF THE HIGHER EDUCATION INSTITUTIONS AS A SIGNIFICANT FACTOR FACILITATING THE RATINGS OF THE HIGHER EDUCATION INSTITUTIONS E. Rusite ............................................................................................................................................................ 66 DEVELOPMENT OF FINTECH IN LATVIA S. Saksonova, A. Kims ...................................................................................................................................... 69 IMPROVEMENT OF MANAGEMENT SYSTEM IN THE WOODWORKING COMPANY WITH LEAN 5S METHOD I.Skalberga, H. Kalkis, Z. Roja ......................................................................................................................... 71 COMPETENCE-BASED APPROACH IMPLEMENTATION TOOL FOR PROJECT TEAM MEMBERS SELECTION O.Stariņeca ....................................................................................................................................................... 73 RISK CULTURE: MAIN ASPECTS D.Stepčenko, I.Voronova .................................................................................................................................. 75 THE ONTOLOGICAL ANALYSIS OF THE PROJECT RISK MANAGEMENT TERM „RISK“ J. Uzulāns ......................................................................................................................................................... 77 CAN DIFFERENCES IN CHARACTERISTICS EXPLAIN ETHNIC WAGE GAP IN LATVIA? K. Vilerts, O. Krasnopjorovs ............................................................................................................................ 79 PREREQUISITE IMPLEMENTATION OF PROCESS-ORIENTED MANAGEMENT IN MEDICAL INSTITUTIONS OF KAZAKHSTAN AND CONTINUOUS IMPROVEMENT M. Yelubayeva, G. Kabduyeva, M.Zivetere, O.Golub ...................................................................................... 81 SOCIAL AND ECONOMIC VALUES AND IDENTIFY PRIORITY AREAS OF ECONOMIC DEVELOPMENT B. Zamkevych .................................................................................................................................................... 83 ASSESSING THE REAL EFFECTS OF THE ASSET PURCHASE PROGRAMME: EMPIRICAL EVIDENCE A. Zlobins .......................................................................................................................................................... 85 SUBSECTION “Competitiveness of Latvian Enterprises in Foreign Markets (EKOSOC-LV 5.2.1)” ASSESSMENT OF BUSINESS ENVIRONMENT FACTORS INFLUENCING THE EXTERNAL COMPETITIVENESS OF HEALTH CARE INDUSTRY IN LATVIA D. Behmane, U.Berkis, A. Villerusa ................................................................................................................. 88 CHALLENGES OF NATION-BRANDING FOR STIMULATION OF LATVIAN EXPORTS A.
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