JOURNAL OF MANAGEMENT SCIENCES AND APPLICATIONS

2024, Journal of Management Sciences and Applications

The journal is committed to publishing scientific empirical and theoretical research articles that have a major impact on governance, administration, regional development and marketing. The journal encourages new ideas or perspectives on existing research. The publications are published twice a year in December and June. The journal publishes a wide range of topics in the fields of Management sciences, Strategic planning, Methodological research and Theoretical paradigms. Manuscripts that are suitable for publication in the Journal of Management Sciences and Applications may also include Regional policy, Entrepreneurship, Human resource management, Organizational behaviour, Organizational theory and Earth sciences.

F JOURNAL OF MANAGEMENT SCIENCES AND APPLICATIONS ◄ ▲ ▼ ► VOLUME 3 (1), 2024 ISSN: 2815-3030 FACULTY OF MANAGEMENT AND ADMINISTRATION UNIVERSITY OF NATIONAL AND WORLD ECONOMY JOURNAL OF MANAGEMENT SCIENCES AND APPLICATIONS VOLUME 3, ISSUE 1, 2024 ISSN: 2815-3030 HTTP://JOMSA.SCIENCE Journal of Management Sciences and Applications (JOMSA) is an electronic journal of the Faculty of Management and Administration at the University of National and World Economy, Sofia, Bulgaria. The journal is committed to publishing scientific empirical and theoretical research articles that have a major impact on governance, administration, regional development and marketing. The journal encourages new ideas or perspectives on existing research. The publications are published twice a year in December and June. The journal publishes a wide range of topics in the fields of Management sciences, Strategic planning, Methodological research and Theoretical paradigms. Manuscripts that are suitable for publication in the Journal of Management Sciences and Applications may also include Regional policy, Entrepreneurship, Human resource management, Organizational behaviour, Organizational theory and Earth sciences. Copyright Notice All authors agree that the articles submitted for consideration to be published in Journal of Management Sciences and Applications have not been previously published, accepted for publication, and have not been sent to another journal for publication. All authors declare and undertake that all publication rights indefinitely belong to Journal of Management Sciences and Applications. Contact Faculty of Management and Administration University of National and World Economy Bulgaria Sofia, 1700, Student Town Office 3066 admin@jomsa.science Principal Contact Prof. D.Sc. Simeon Jelev Phone +359 2 8195 689 s.jelev@unwe.bg Support Contact Dr. Tsvetelina Berberova-Valcheva Phone +359 2 8195 674 tzberberova@unwe.bg CONTENTS EDITORIAL BOARD ........................................................................................................................................... 3 EXECUTIVE BOARD .......................................................................................................................................... 3 THE ROLE OF CIRCULAR ECONOMY IN THE MANAGEMENT OF ENTERPRISES PROFITABILITY THEORETICAL FORMULATIONS AND LIMITATIONS Petar Borisov, Georgi Petkov .................................................................................................................................. 4 CIRCULAR APPROACHES: THE FUTURE OF PUBLIC PROCUREMENT Krasimira Valcheva ............................................................................................................................................... 22 GROWTH CHALLENGES AND OPPORTUNITIES FOR MSMEs IN BULGARIA Ivaylo Iliev ............................................................................................................................................................ 34 PUBLIC PROCUREMENT IN BULGARIA: DO WE GET VALUE FOR THE TAXPAYER’S MONEY? Krasimira Valcheva ............................................................................................................................................... 42 DISCOURSE ON CAPACITY ASPECTS OF HUMAN CAPITAL VITAL AGGREGATES IN CONTEMPORARY BULGARIAN STATE ADMINISTRATION Daniela Krasteva ................................................................................................................................................... 53 INNOVATIVE APPROACHES IN THE MANAGEMENT OF PUBLIC SERVICES IN THE CONTEXT OF THEIR APPLICATION IN BULGARIA Kalin Boyanov ....................................................................................................................................................... 74 ANALYSIS OF ELECTRONIC ADMINISTRATIVE SERVICES PROVIDED IN THE ADMINISTRATIVETERRITORIAL UNITS OF BULGARIA Tsvetelina Berberova-Valcheva ............................................................................................................................ 85 LANDSCAPE: THE IMPETUS NEEDED FOR A FAIRER TAX SYSTEM AND FAIRER USE OF TAXES Denisa Cani, Rezear Kolaj, Ekaterina Arabska, Petar Borisov ............................................................................. 98 THE PSYCHOLOGY AND SOCIOLOGY OF A FRAUDSTER: IMPLICATIONS FOR TODAY ACCOUNTING PROFESSION Efe Efosa Ehioghiren, Augustina Izehiuwa Efosa-Ehioghiren, Eromonsele Addeh ........................................... 109 KEY ASPECTS OF STRATEGIC INFRASTRUCTURE DEVELOPMENT Hristo Grozdanov ................................................................................................................................................ 123 ROAD SAFETY AS FUNDAMENT IN ROAD INFRASTRUCTURE PLANNING Hristo Grozdanov ................................................................................................................................................ 130 BULGARIAN CIVIL SOCIETY – POLITICAL PARTICIPATION AND APATHY Mihail Stavrev ..................................................................................................................................................... 137 EXPLORING THE INFLUENCE OF ORGANIZATIONAL COMMITMENT ON WORK-LIFE BALANCE IN PUNJAB'S HEALTHCARE INSTITUTIONS: A QUALITATIVE ANALYSIS Ulfat Andrabi, Priyanka Chhibber ....................................................................................................................... 146 OPPORTUNITIES FOR SUSTAINABLE DEVELOPMENT OF THE AGRICULTURAL SECTOR THROUGH PRIORITIZATION IN THE PLANS FOR INTEGRATED DEVELOPMENT OF MUNICIPALITIES Vanya Bankova ................................................................................................................................................... 163 GUIDELINES FOR IMPROVING STRATEGIC MARKETING ACTIVITIES IN AGRIBUSINESS Teodor Radev ...................................................................................................................................................... 176 Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 2 EDITORIAL BOARD INTERNATIONAL EDITORIAL BOARD Prof. D. Sc. Simeon Zhelev (UNWE, Sofia) – Chairman of the International Editorial Board Assoc. Prof. Dr. Aleksandar Valkov (UNWE, Sofia)–Vice Chairman. Prof. Dr. Nikolay Tsonkov (UNWE, Sofia) – Vice Chairman Prof. Dr. Hristo Katrandjiev (UNWE, Sofia) – Vice Chairman Asoc.Prof. Dr. Juan Esteban YupanquiVillalobos (Peru) Asoc. Prof. Dr. Rezear Kolaj (Albania) Assoc. Prof. Dr. Angel Marchev (UNWE, Sofia) Assoc. Prof. Dr. Denitsa Gorchilova (UNWE, Sofia) Assoc. Prof. Dr. Emilia Patarchanova (SWU, Blagoevgrad) Assoc. Prof. Dr. Eng. Ivaylo Ivanov (UASG, Sofia) Assoc. Prof. Dr. Georgi Nikolov (UNWE, Sofia) Assoc. Prof. Sc. Petar Borisov (AU, Plovdiv) Dr. Aleksandra Borowicz (Poland) Dr. Fidan Qerimi (Albania) Dr. Ira Gjika (Albania) Dr. Vincent Weli (Niger) Prof. Dr. Alla M. Kolomiets (Ukraina) Prof. Dr. Dejan Mirakovski (North Macedonia) Prof. Dr. Dusan Cogoljevic (Serbia) Prof. Dr. Gazmend Qorraj (Kosovo) Prof. Dr. Alex Svidersky (Kazakhstan) Prof. Dr. Ing. Prof. Nikolay Mihaylov (UASG, Sofia) Prof. Dr. Jari Stenvall (Finland) Prof. Dr. Jose Luiz Garcia Lopez (Spain) Prof. Dr. Kamen Petrov (UNWE, Sofia) Prof. Dr. Kliment Naidenov (SU, Sofia) Prof. Dr. Margarita Bogdanova (TAE, Svishtov) Prof. Dr. Milos Pavlovic (Serbia) Prof. Dr. Mukhiddin Juliev (Uzbekistan) Prof. Dr. Nadia Mironova (UNWE, Sofia) Prof. Dr. Natasa Miteva (North Macedonia) Prof. Dr. Olena Isaikina (Ukraina) Prof. Dr. Orhan Kocak (Turkey) Prof. Dr. Rosita Zvirgzdiņa (Latvia) Prof. Dr. Sreten Miladinoski (North Macedonia) Prof. Dr. Tsvetana Stoyanova (UNWE, Sofia) Prof. Dr. Elizabeta Mitreva (North Macedonia) Prof. Sc. Elżbieta Kawecka-Wyrzykowska (Poland) EXECUTIVE BOARD Prof. D. Sc. Simeon Jelev–Chairman Chief Assist. Dr. Ralitsa Veleva –Еditor-inChief Chief Assist. Dr. Krassimira Valcheva –Vice Editor-in-Chief Assoc. Prof. Dr. Aleksandar Valkov – Responsible Еditor Chief Assist. Dr. Tsvetelina BerberovaValcheva – Scientific Secretary Assoc. Prof. Dr. Angel Marchev Assoc. Prof. Dr. Denitsa Gorchilova Prof. Dr. Hristo Katrandjiev Prof. Dr. Kamen Petrov Chief Assist. Dr. Ivaylo Iliev Chief asst. Dr. Eng. Hristo Grozdanov Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 3 Petar Borisov Georgi Petkov Petar Borisov Prof., DcS Department of Management and Marketing, Faculty of Economics, Agricultural university of Plovdiv, Bulgaria Corresponding author: e-mail: peterborisov@gmail.com ORCID: https://orcid.org/0000-00034236-9482 THE ROLE OF CIRCULAR ECONOMY IN THE MANAGEMENT OF ENTERPRISES PROFITABILITY THEORETICAL FORMULATIONS AND LIMITATIONS Georgi Petkov PhD student at Department of Management and Marketing, Faculty of Economics, Agricultural university of Plovdiv, Bulgaria e-mail: georgipetkov@tutanota.com ORCID: https://orcid.org/0009-00023936-7363 Published First Online: 24.06.2024 ABSTRACT The purpose of current research is to analyse the main definitions regarding the essence of the concept of "circular economy" and summarize a general approach for defining scientific principles for evaluating the potential of the circular economy in the agricultural sector of Bulgaria. Compiling an objective and credible methodology for the analysis and evaluation of the contribution of the circular economy approach in the management of the profitability of enterprises in the sector is a complex process that must begin with the definition of the boundaries of scientific research, as well as the determination of the main limitations, as well as in terms of the information characterizing the object and the subject of research, as well as in terms of the influence of other "random" events (phenomenon) on the level of profitability achieved in the investigated enterprises. KEYWORDS: circle economy, profitability, bio economy, management of enterprise Pages: 4 – 21 DOI: https://doi.org/10.37075/JOMS A.2024.1.01 INTRODUCTION In recent years, the principles of the circular economy in enterprise management have been increasingly proclaimed. Both at the level of entrepreneurial activity and at the political level, man's desire to mitigate the pressure on nature resulting from the intensive development of a number of industrial sectors is palpably felt. Agriculture is one such sector that directly affects nature and generates a number of negative effects. On the other hand, agriculture is a sector that makes it possible to quickly and effectively impose the principles of the circular economy due to the presence of a number of factors favourable to this process. These factors are: (1) agriculture generates a huge amount of biomass that can be used as an input again in the next production cycle; (2) farmers in our country are already experienced and highly adaptable to Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 4 environmentally friendly subsidizing policies; (3) has already accumulated experience in the field of circular economy in the past of the country's economic development. The purpose of current research is to analyse the main definitions regarding the essence of the concept of "circular economy" and summarize a general approach for defining scientific principles for evaluating the potential of the circular economy in the agricultural sector of Bulgaria. A number of scientific studies prove that the implementation of the principles of circularity in the management of the production process has a direct positive impact on the profitability of the enterprise from various sectors of the economy (Moore, 1951; Lazarevic & Valve, 2017; Kumar & Brown, 2020; Moreau et al. 2017; Müller-Christ, 2011; Blomsma & Brennan, 2017; Blum et al, 2020). Based on these conclusions and summaries of previous research, our aim is to create and present a scientifically based methodology for the analysis and assessment of the contribution of the circular economy in the overall management of the profitability of the agricultural enterprise. Circular economy - essence and main theoretical propositions In Bulgaria, the circular economy approach is not a new tool for the economic development of the sectoral economy. In the last years of the last century, the approach was intensively used to deal with resource shortages in a number of industries. In enforcing this approach, through a number of government initiatives and policies, the population was encouraged to collect and hand over to designated points waste products with the official name of "secondary raw materials". In this process, separate social strata were involved, which were required to show their contribution to the social and economic development of certain industries and regions. Of course, this approach today has a more modern sound, namely the circular economy. The approach to motivation is slightly different, but the goal remains the same, namely to motivate the population and think about the principles of the circular economy in their daily activities. Under a different approach, it is understood that the state, through its instruments, strives through financial and other incentives to form a new attitude to the reuse of waste in production use. It should not be denied that a big role in imposing the "circular economy" approach "can be played by the entrepreneurial factor" (Blum et al, 2020). But this factor initiated changes in its business models mainly in the search for higher profitability and return. The state should be the one to determine the rules of the game, namely to create appropriate institutional conditions for the enforcement and development of the circular economy. This is the place to get to know and study in depth what the circular economy is and what benefits it can provide in the management of profitability in the agricultural sector. Since the more joint industrialization of Europe, there has been a sharp increase in labour productivity in industrial enterprises. In the 60s of the last century, the so-called "green revolution" took place in European agriculture, namely a sharp increase in the volumes of agricultural production, thanks to the principles of automation, the imposition of "unmanned" production technologies and the systematic use of intensive production factors, a product of the research and development activities of scientific institutes and universities in the field of Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 5 agriculture. This leads to the so-called "mountains" of agricultural production. The main inducing factor for this process was, of course, subsidies in agricultural production. Their power is so significant that farmers become permanently addicted to these financial "bonuses". They get them based on the amount of output produced and their drive to produce ever greater volumes of agricultural output is economically understandable and leads to overproduction and hence to a crash in prices and massive negative effects as a result of the shortsightedness of politicians. In addition to mass bankruptcies, protests and the high tax burden of Europeans, the green revolution leads to the following negative effects: (1) natural capital is quickly wasted, which damages the future production of agrarian products; (2) a large amount of waste accumulates, which is not used and is simply thrown into nature; (3) people are taught to waste and not think rationally about their consumption. The Green Revolution is realized by mainly using the linear approach of economic development, namely - the use of the maximum amount of input resources to achieve the maximum amount of production, as the generated biomass and unsold agricultural products are thrown away without thinking about how to use them again. included in the next production cycle. These are the main reasons why today there is more and more talk about the circular economy, which can be an effective tool for dealing with the mentioned problems in the agricultural and related sectors. The circular economy approach to achieving economic growth is one of the most frequently discussed approaches today. There are many definitions of the nature of the circular economy and its role in the economic development of countries. Below we will look at the most common and popular in practice definitions of circular economy. According to the European Commission, “the circular economy is a model aimed at extending the life cycle of products. In practice, this means sharing, borrowing, reusing, repairing and recycling existing materials and products as long as possible. When a product reaches the end of its life, the materials from which it is composed can continue to be used in another way. This can be done over and over again, thus minimizing waste disposal." "The circular economy is a model for economic development that is based on the principles of renewing, reusing and recycling resources, with the aim of reducing waste and the burden on the environment." (The circular economy: what it is and why it matters) "The circular economy is an economic system in which resources are used efficiently and the reverse flow of materials and products is encouraged in the production process, rather than being discarded as waste after their use." (Fitch-Roy, 2019) "The circular economy is defined as a model of economic management that emphasizes opportunities to reuse materials and resources, thus minimizing waste and the burden on the environment." (Geissdoerfer et al, 2018) "The circular economy is characterized by a variable approach to production and consumption that focuses on creating a closed loop where waste is turned into resources and recycled or reincorporated into the economic system." (Haas, 2015) Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 6 "The circular economy is an economic system in which production processes are organized so that waste from one process is used as input for other processes or products, creating a closed loop of materials and resources." (Khan, 2021) "The circular economy characterized by minimizing the use of non-renewable resources and energy, emphasizing the transition to renewable sources and energy-efficient technologies." (Mah, 2021) The circular economy seeks to create “a balance between economic growth, social well-being and environmental protection, achieving this goal through the sustainable management of resources and materials." (Linder, M., & Williander, 2017) From all these definitions, it can be summarized that the circular economy is an attempt by man to move to a new economic order in which there is no waste. The idea is gaining a lot of popularity due to the fact that resources are becoming increasingly scarce on the one hand, and humanity's needs are increasingly due to an increase in the number of the human population and the level of disposable income. Under these conditions, managers, entrepreneurs and politicians are looking for an alternative to deal with the problem called "scarce resources". It is becoming clear that the linear approach of economic development is exhausting its potential and the future belongs to another alternative. According to the European Commission, it is high time that the concept of the circular economy is "a counterbalance to the traditional linear model where raw materials are used, things are created from them, they are consumed and the leftovers are thrown away. This model relies on large quantities of cheap and accessible materials and energy sources" (Linder, M., & Williander, 2017). Until now, the evolution in economic theory and practice has been based on the linear approach, namely resource→product→waste. In this approach, the motives for achieving higher profitability from production are the leading principle, rather than environmental protection. Admittedly, in both the planned economy and the market economy, the linear approach is dominant, as it allows for easier management of the profitability of the activity. "The circular economy enables, to refer to, the ability of an economic system to grow successfully while the use of resources decreases." (Pehlivanov, 2022) This statement is relevant for economic systems that develop in conditions of scarce resources, but due to globalization, such systems almost do not exist. History proves that the planned economy has greater success in applying the circular economy than the market one. The main contribution to this success is the use of optimization models in the design and rationalization of economic sectors in a country whose political leadership is the originator of a planned economy. A prominent representative of the optimization economic model is Leontiev (Mirokovich, 2000). Leontiev's main idea is that resource flows between individual economic branches can and should be designed in such a way as to minimize the waste of resources. These resource flows are called in his theory "inter-industry linkages". By optimizing cross-industry linkages, maximum effect can be achieved from the use of minimum input resources. Leontiev's theory goes even further, as the author implies that a part of the resources can be modified so that they have a dual character, namely the goods resulting from one production can be used as an input resource for another production. In essence, the theory Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 7 represents an attempt to present and popularize the idea of economic development in which waste and waste are minimized. The main shortcoming of Leontiev's theory is that it ignores, even excludes the role of the market as a mechanism that should be included in the model. Another theory that implies some of the principles of the circular economy is the concept of "industrial ecology". In this theory, the idea is to create a closed-loop production process in which waste serves as an input resource, thereby eliminating the creation of an unwanted byproduct, which is waste (Frosh, 1989). "In industrial ecology, production processes are designed according to local environmental constraints, while also considering their global impact from the very beginning of the production processes. The goal is to design production processes to be as close as possible to natural systems and to restore natural capital." (What is a circular economy? A framework for an economy that is restorative and regenerative by design.). Table1. Basic theories sharing the principles of the circular economy Theory Leontiev's model of inter-industry connections Industrial ecology Biomimicry From cradle to cradle The concept of eco-efficiency Sustainable Development Closed loop Main idea Resource flows between individual economic sectors can and should be designed to minimize resource wastage a closed-loop production process in which waste serves as an input resource, thereby eliminating the creation of an unwanted byproduct, which is waste Dealing with the problem of waste from human economic activity can be done by looking for ready-made solutions in nature. The use and accelerated implementation of waste-free technologies to ensure the generation of "0" amounts of waste. The use of production approaches and technologies that spare natural resources or limit their excessive exploitation; Changing production methods and looking for ways to create more end products from a unit of resource, which will make it possible to produce more output and satisfy the needs of more consumers. Changes in the regulatory sector policy, which changes are based on an integrative approach in the future development of agriculture. This integrative approach is based on the idea that agriculture must be developed in such a way that this process does not harm the production needs of future generations. Using resources in a circular process where the waste of one Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ Source Mirkovic (2000) Kruglov (2019) Luke (2014) Braungart (2015) (2002); Toxopeus York, R., EA Rosa, and T. Dietz. (2004) Ivanov B., T. Radev, D. Vachevska, P. Borisov. (2009) Moore (1951) No. I, 2024 pg. 8 Theory Main idea product is converted into raw materials for another. Instead of being discarded or treated as waste, the materials are recycled or reintegrated into a repeated production cycle. The theory borrows the idea from another theory explaining the theoretical existence of a self-sufficient "autarchy" economic system. The process of maximizing the value of input resources must be carried out while avoiding losses and waste. The idea is to use resources in a way that generates the most value for society. Extracting value Re-engineering Theory of the sharing economy The product-as-service theory This process includes recycling or other forms of reuse of products and materials. The theory is based on the principle of recycling and reorganizing the production processes so as to achieve maximum efficiency from the use of the production resource within the applied technology. Using resources more efficiently by sharing assets, such as cars, homes or tools, between users, which reduces the need for new production and therefore resources. The theory focuses on moving from a model where only a product is sold to a model where a service is offered instead. Source Izzo (2014) Varun Grover, Seung Ryul Jeong, William J. Kettinger & James TC Teng (1995) Altinay, L.andTaheri, B.(2019), Li, AQ,Rich, N.,Found, P.,Kumar, M.andBrown, S.(2020) Source: Own Another theory that also shares the principles of the circular economy is "biomimicry". The founder of this theory is Janine Benyus. In his book "Biomimicry: Innovation Inspired by Nature" (Benyus, 2003), first published in 1997, the author considers nature as the main source of ideas for solving human problems. According to this theory, dealing with the problem of waste from human economic activity can be done by looking for ready-made solutions in nature. Nature, thanks to its evolution, has built efficient methods for recycling and reuse of resources and elements in ecosystems. All these mechanisms can be used as a benchmark for building economic and business models that have a minimal footprint and impact on the environment. Of course, putting this theory into practice requires man to work not as an individual, but as a society developing in obedience to the idea that natural systems are the most valuable source of value and their preservation should be a primordial value in human behaviour. Of course, the human mentality is still very far from professing this doctrine, which in the short-term dooms to failure the imposition of the idea of more jointly introducing the principles of biomimicry in all economic sectors and human activities. However, there are societies like the Japanese that take advantage of the gifts of biomimicry successfully and prove that the idea really works in practice. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 9 Another theory that shares the circular economy idea is called the cradle-to-cradle approach (Braungard & McDonagh, 2009). This theory was created by Brundgaard and McDonough and is basically based on the idea that "all materials involved in industrial and commercial processes can have a positive impact and reduce negative impacts on the environment". The idea behind the presented theory is too radical, namely in the use and accelerated implementation of wastefree technologies to guarantee the generation of "0" amounts of waste. This theory builds on biomimicry as a source of ideas for the design of waste-free technologies. Manufacturing processes must be designed to mimic the mechanism of "biological metabolism" in nature. In organisms, the bio-chemical processes are organized in such a way that with a minimum energy resource, a maximum metabolic effect is achieved, by releasing minimum amounts of waste substances, the organic nature of which allows their immediate recycling by other organisms along the food chain. The main points of support on which the "from cradle to cradle" theory is built are the following: - "Waste is a type of food - in fact, in natural systems there is no waste. Engineered products and materials have a long life cycle, are safe for human health and the environment, and can be used repeatedly through biological and technical metabolism. Establish management systems for the collection and recovery of the value of materials after their use, which will lead to the elimination of waste' (What is a circular economy? A framework for an economy that is restorative and regenerative by design); - Use of energy from renewable sources - in nature, the main source of energy is the sun. Conventional sources of energy, coal, oil and natural gas, on the one hand, seriously pollute the environment, and on the other hand, negatively affect the efficiency of the economic cycle, as they increase the costs of the production of final products" (What is a circular economy? A framework for an economy that is restorative and regenerative by design); - "Diversity is strength - the modern world is characterized by great dynamics and changes, which naturally leads to changes in people's needs. More and more often, products are abandoned in favour of new ones, which turns them into waste. Environmental pollution can be limited by recycling waste, or by reducing its quantity by creating products suitable for long-term use, repair or upgrading, rather than discarding them because they are functionally obsolete, damaged or not conform to fashion trends. It is essential not only to have the right design, but also to change the attitudes of the users. The implementation of appropriate local policies aimed at promoting the positive effects of reducing waste generation on ecosystems, as well as in the direction of increasing social responsibility, by stimulating reuse." (Balinov, 2018) Another theory that complements the circular economy theory is the "eco-efficiency concept" (Schaltegger & Sturm, 2000). This theory appeared at the end of the last century as an answer to the question "How long can the economic development of the world last?" Both in the planned economy and in the market economy, no answer is sought to the question of what humanity will do when natural resources are exhausted. The presented theory provides guidelines for dealing with the mentioned case study, using production approaches and Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 10 technologies that spare natural resources or limit their overexploitation. "The problem can be solved by changing production methods and finding ways to create more end products from a unit of resource, which will enable more output to be produced and meet the needs of more consumers." (Zhelyazkova, 2019) The genesis of the current reading of the essence of circular economy theory is laid mostly in the "sustainable development theory" of agriculture in Europe. This theory is presented as an idea in the document Brutland Commission Report (Brutland, 2015). Due to the negative consequences of the "Green Revolution", the commission proposes changes in the regulatory sector policy, which changes are based on an integrative approach in the future development of agriculture. This integrative approach is based on the idea that agriculture must be developed in such a way that this process does not harm the production needs of future generations. The radical idea of the theory is to care for unknown people who will be born in the future. This theory was first presented as a framework of principles in the Brutland Commission Report. The Commission declares that the future development of agriculture needs to be built on three components, namely: (1) economic expediency; (2) the environmentally friendly; (3) social responsibility. The combination of these ideals in a unified approach to the economic development of agriculture aims at sustainable and progressive development of the sector, taking into account future production needs. From a political point of view, things sound plausible and humane, but from the point of view of economic theory, the combination of ecological compliance with economic efficiency in the current social development is a utopia. Why is it a utopia? An answer to this question has long been given by the science of "cybernetics, namely in cybernetics, the sustainability and sustainable development of a system depends both on the state of its building blocks, its input/outputs, and the surrounding environment. A major role for the sustainable development of a system is the environment. This environment is characterized by the following features - complexity, uncertainty and mobility. This requires the system to possess the properties: resilience, flexibility and adaptability. The environment creates conditions of uncertainty threatening the steady state of the system. It seeks to destroy the orderliness and hierarchical subordination of the elements that make up the system. According to Pamukchiev M., 1978 “a system in which the output position remains unchanged or changes within strictly regulated limits regardless of the interaction received at the input is considered stable." Closely related to the stability of a given system is the concept of homeostasis. According to Pamukchiev M., 1978 and Dimitrov D, 1991 it reveals "the system's ability to adapt to changes in the environment." Homeostasis is the ability of the system to free itself from the influence of the environment, to maintain its equilibrium state regardless of the impact of its input. An equilibrium state of a system exists when it maintains its state unchanged, and the substances and energy entering it change. Therefore, the achievement of a sustainable state of the agricultural enterprise is carried out by preserving its homeostasis over time. In practice, the natural system "environment" preserves its homeostasis by maintaining biological diversity, which guarantees a multifunctionality of the system. On the other hand, the man-made "economic system - agriculture" develops and preserves its homeostasis by maintaining uniformity. The principle of diversity contradicts the principle of uniformity in the system construction, which determines the collapse of the idea of sustainable development of agriculture. In other words, sustainable development is just wishful thinking that will not work in the long run. This statement is proven by a number of studies that prove that, despite the Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 11 established environmental standards in the last 20 years, the use of chemicals and fertilizers in agriculture has significantly increased, thanks to subsidies. Another theory that can be defined as one of the main principles of the circular economy is the "closed loop theory". This theory focuses on the idea of using resources in a circular process where the waste of one product is converted into raw materials for another (Moore, 1951). Instead of being discarded or treated as waste, the materials are recycled or reintegrated into a repeated production cycle. The theory borrows the idea from another theory explaining the theoretical existence of a self-sufficient "autarchy" economic system. “It is a state in which a society or country is able to obtain all necessary resources and goods internally, without significant dependence on imports or foreign aid. A basic approach to the realization of this economic system is the utilization of every single resource without losses and achieving maximum efficiency from the invested resource" (Johnson, 1935). In summary, we should note that the theory of the closed cycle, as well as the theory of the autarchic system, aim at maximum resource efficiency in order to overcome the scarcity of available resources in the system. Accordingly, the circular economy as an approach may be required under conditions of scarce resources in an economic system. Another theory that shares the principles of the circular economy is the theory of the "value extraction" principle. In this theory, the hypothesis is proclaimed that "the process of maximizing the value of the input resources should be carried out while avoiding losses and waste." (Izzo, 2014) The idea is to use resources in a way that generates the most value for society. Sharing other principles from the circular economy approach is seen in reengineering theory. Re-engineering theory is an approach that focuses on “managing the reverse flow of goods from the end user to the manufacturer. This process includes recycling or other forms of reuse of products and materials. The theory is based on the principle of recycling and reorganizing production processes in such a way as to achieve maximum efficiency from the use of the production resource within the framework of the applied technology" (Grover, 1995). The circular economy cannot happen without the widespread promotion of the principle of sharing both resources and consumption of products on the demand side. These principles stand out most clearly in the theory of the sharing economy. Sharing economy theory focuses on "using resources more efficiently by sharing assets, such as cars, homes or tools, between users, which reduces the need for new production and, accordingly, resources" (Altinay & Taheri, 2019). The main idea of the theory is that solidarity is one of the possible ways to overcome the scarcity of resources in different economic sectors. Of course, sharing should be considered as an even deeper philosophy, which should be proclaimed among the population at an early age and, through various marketing approaches, implanted in the consumer's consciousness as one of the leading methods for satisfying needs. Another theory sharing the idea of the circular economy is the Product-as-a-Service theory. This theory focuses on "moving from a model where only a product is sold to a model where a service is offered instead" (Li et al, 2020). Instead of owning a good, consumers pay for the use or access to it, which can include maintenance, repair and renovation. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 12 The presented theories are only a small part of the group of theories that are used to explain and apply the concept of the circular economy. In fact, in modern practice, different approaches and strategies are combined to achieve maximum efficiency and sustainability in economic systems. The review of theories relevant to the circular economy is an attempt to familiarize ourselves with the basic principles on which the theory of the circular economy is built. In conclusion, it can be summarized that the circular economy is a concept that seeks to optimize the use of resources by minimizing waste and changing the way goods and services are produced and consumed. It is based on various theories and models that present ways to achieve a more sustainable and efficient economic functioning of enterprises, industries and sectors in an economic system. From all the considered definitions of the essence of the circular economy, the following basic principles emerge: (1) closing the production cycle; (2) recycling and (3) reuse. Applying these principles in practice requires a new way of thinking in organizing business processes and the overall presentation of the business model on the market. The most common principles in individual definitions of the essence of the circular economy are: - Use of product design suitable for recycling and reuse of resources and components. Products are designed so that at a later stage in the value chain, their components can be more easily disassembled, recycled and reused. "The use of this principle reduces the amount of waste and resources that are consumed during production" (Baxter et al, 2017); - Use of renewable energy sources in organizing business processes. Such renewable energy sources include solar, wind and hydroelectric power, which have "a smaller carbon footprint and lower harmful emissions than burning fossil fuels." (BimpizasPinis et al, 2021); - Promotion of the shared economy in the consumption of goods and services (Sharing economy). This principle proclaims "imposing the need on consumers instead of owning products, such as cars, homes or tools, to encourage their sharing through sharing economy platforms" (Flynn & Hacking, 2019); - "Production of durable and quality products that are remotely suitable" (Johansson & Henriksson, 2020). Producing products that are durable and maintainable reduces the need for frequent replacement and the generation of waste; - Industrial symbioses. "Different industries are integrating to share resources, energy and even waste, leading to more efficient use of resources and reducing harmful emissions and waste" (Ghisellini, 2016); - Enforcing circular supply chains. The principles of the circular economy are applied "not only in the organization of production, but also throughout the supply chain, encouraging the inclusion of materials, waste and products in a repeated production cycle" (Friant et al, 2020). Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 13 - Waste management and the recycling process. "Improved waste management, including separate collection, recycling and processing to reduce environmental impact" (Acerbi & Taisch, 2020) and to increase the efficiency of the use of resources. Of course, these principles are not universal and cannot be blindly applied to every single economic system. This is because each such system functions under different specific conditions. But by creating an appropriate environment, the adaptation of the economic system from a linear type to a circular model can take place. The adaptation process should be smooth and by convincing users, circular business models should be encouraged in different economic sectors. Role of circular economy in profitability management One of the essential questions, which may appear to be a significant barrier to the imposition of the circular economy approach both in our country and on a global scale, is whether the circular economy can increase the profitability of the investments made? As we have already mentioned, the linear model of organizing business processes has proven to be cost-effective and preferred by most countries. It can even be said that thanks to the linear approach, today the world economic system has become globalized and enables every single entrepreneur to achieve the profit he wants regardless of where he is in the world. The linear method of organizing business chains is appropriate and does not burden the entrepreneur with what the imprint is on the nature of the business model he manages. Profitability is an economic category that represents a principle, approach and goal for managing the business model. Profitability can be defined as a complex economic category that is influenced by many factors and can hardly be measured with a single indicator. Our aim is not to go into depth about the nature of the category1, but only to define the main features and characteristics that are important in clarifying the impact of the circular economy on profitability. In this context, we can identify the following important characteristics: - Profitability is a measure of efficiency. "It is a measure of excellence in business process management" (Borisov et al, 2017); - Profitability is a measure of profitability. Profitability is presented "as a rate of return" (Borisov et al, 2017), ability of an asset to bring income to its owner; - Profitability is a measure of return. It measures and reports "the ability of a resource invested in production to recover its value" (Borisov, 2013); - Profitability is a measure of fairness. Profitability “measures the benefits of using a factor of production in production. It gives an answer to the question to what extent the generated income from the activity should be appropriated by the entrepreneur" (Borisov et al, 2014); 1 Profitability as an economic category has long been studied, defined and objectively presented in scientific theory. The first documented attempt to clarify the nature of profitability is the researcher David Ricardo, who defends the thesis that not only land, but also other factors of production can generate rent for their owners. Source: Danailov, D. (1996). Financial Management, ed. Luren, pp. 95-96. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 14 - Profitability is a tool for objective analysis of various economic alternatives. Through profitability "an objective analysis of various investment alternatives can be carried out and an objective and justified investment decision can be made" (Borisov & Radev, 2012 ); All these characteristics define profitability as an important aspect in the management of the business model. The imposition of the circular economy approach in the development of individual economic sectors is necessary to create conditions for increasing the profitability of the business model, or at least "not to reduce the achieved levels of profitability" (Babbitt et al, 2018). There are a number of scientific studies and publications (Calisto et al, 2021), which prove that the approach can significantly affect the profitability of the business model that the entrepreneur imposes on the market. Below we present key findings and summaries from these research studies: - Reduction of costs for acquisition of raw materials. In the automotive industry, "evidence of positive effects from the application of the circular economy" is seen (Casson & Welch, 2021). In this industry, the principles of the circular economy have contributed to "reducing the cost of purchasing new raw materials and materials for production" (Casson & Welch, 2021), which leads to lower production costs and, respectively, to an increase in profitability: - Improved efficiency of production processes. Designing products and production processes that enable "resource optimization and recycling leads to more efficient use of energy and resources" (Fellner et al, 2017). This leads to a reduction in operating costs and an increase in business profitability; - Reducing waste also leads to lower costs for its processing. The implementation of circular economy principles helps to reduce these costs. This "leads to lower operating costs and increased profitability" (Gregson et al, 2015). - Improved competitiveness and better customer service.A number of business models that have adapted to circular economy principles "generate greater competitiveness by offering more sustainable and environmentally friendly products and services" (Manninen et al, 2018). By moving to the new business model, they have been able to increase their market share and hence their profitability from sales; - Increased life cycle of the products offered. A number of business models applying the principles of the circular economy have managed to "conquer lasting market positions by offering long-lasting and quality products that can be repaired and reused" (Mcdowall et al, 2017). These business models have been able to generate long-term revenue by increasing the value realization of the products and hence the profitability of the operation. Agriculture involves living organisms (Borisov & Radev, 2012), which also determines the peculiarities of profitability management in agricultural holdings. The seasonality of production, caused by the participation of plants and animals in the production process, are the main factors that account for the pronounced seasonality in the profitability of production. This Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 15 seasonality is so pronounced that it is one of the main motivations for introducing subsidies and financial incentives to overcome this huge deficiency in the management of business models in the agricultural sector. In contrast to other economic branches, in agriculture, a synergistic effect can be realized from the investments made, namely, with the same resources, several products (effect) are obtained. Biomass is one of the products that can be valued and marketed. These products can contribute to the management of farm profitability by diversifying sources of income. According to a number of publications (Millar & Mclaughlin, 2019; Reike et al, 2018; Kama, 2015; Laser & Stowell, 2020a; Zhu et al, 2019; Schröder et al, 2019; Murray et al, 2017; Genovese & Pansera, 2020) the biomass that is generated in agriculture is a potential that is not yet fully utilized. Researchers of the problem are of the opinion that the circular economy needs to be combined with the "bioeconomy" (Inigo & Blok, 2019), so that the approach can be implemented in practice. Bioeconomy is "a multidisciplinary field that studies the sustainable use of biological resources to produce a variety of materials, energy and services" (Veleva et al, 2017). It covers various aspects of biology, agriculture, ecology, engineering, economics and other fields of human activity. The goal of the bioeconomy is "to create an economic system that is in harmony with nature and that uses biological resources in a way that does not harm the environment and is sustainable in the long term" (Luke, 2014). This includes "developing new technologies and methods for using biomass, including plants, microorganisms and animals, to produce food, energy, medicines, materials and other products" (Luke, 2014). According to a number of publications, “the bioeconomy has great potential to contribute to solving some of humanity's greatest challenges, such as climate change, biodiversity loss and natural resource limitations. It can also contribute to economic growth and the creation of new jobs in high-tech sectors related to biology and innovation" (Braungart & McDonough, 2002). From all that has been said so far, it is clear that the circular economy and the bioeconomy as approaches to economic development intersect in the agricultural sector. This is the sector that provides the greatest opportunity to introduce the mentioned approaches with a view to achieving sustainable and competitive development. Table 2 summarizes both the positive and negative effects of applying circular economy principles in business model profitability management. The summarized information in the table gives an idea that the impact of the circular economy on profitability is complex and requires careful planning on how to introduce the approach in business model management so that the positive effects dominate over the negative ones. Table2. Influence of the principles of the circular economy on the profitability of the activity Principles of circular economy Reduction of costs for acquisition of raw materials Improved efficiency of production processes Positive impact on profitability Reducing costs, other things being equal, creates an "opportunity to realize a larger margin" The higher efficiency causes savings in materials and raw materials, which creates an Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ Negative impact on profitability No. I, 2024 pg. 16 Principles of circular economy Reducing waste Increased life cycle products offered of Positive impact on profitability "opportunity for a greater rate of profit" The reduction of waste, by reinclusion in the production cycle, "creates conditions for minimizing costs within the applied technology." the Negative impact on profitability "Additional investments are required to move to a new technological level, which in the short term lowers profitability due to higher investment costs", necessary to implement the new technology. The process of implementing the new resourcesaving technology requires time, which can negatively affect profitability. "Longer product life cycles can create conditions for reduced sales turnover and hence sales revenue". All other things being equal, this could result in lower profitability on a sales revenue basis. The product can quickly tire of the consumer and he prefers a competitor, thereby shrinking sales, and therefore revenue and profitability based on sales revenue. Source: Ambec & Lanoie, 2008; D'Amato & Korhon, 2021; Flachenecker & Kornejew, 2019; Cainelli et al, 2020; Hizarci-Payne et al, 2021 CONCLUSION Compiling an objective and credible methodology for the analysis and evaluation of the contribution of the circular economy approach in the management of the profitability of enterprises in the sector is a complex process that must begin with the definition of the boundaries of scientific research, as well as the determination of the main limitations, as well as in terms of the information characterizing the object and the subject of research, as well as in terms of the influence of other "random" events (phenomenon) on the level of profitability achieved in the investigated enterprises. The main constraints identified as critical are: - Reliability of the selected metrics (indicators) assessing the degree of introduction of circular economy principles in the investigated enterprises; - Analyticity of the selected measures – they must be scientifically based, i.e. be defined using established scientific terms and approaches; - Metrics of the chosen measures – they should be easy to measure and interpret in the scientific study; - Relevance of the metrics – they should help to account for the effect of the application of the circular economy approach on the level of profitability of the enterprise. Another important aspect of the scientific research is to define a reliable approach for differentiating business industry enterprises into separate groups according to their level of Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 17 implementation of circular economy principles. Such an approach can be built using the approach to identify the technological readiness levels of enterprises - TRL (technology readiness levels). Using this approach in the scientific research, the investigated business industrial enterprises are grouped according to their degree of readiness to introduce the principles of the circular economy. For this purpose, a 4-level scale is used to analyse and evaluate the readiness of enterprises to implement the circular economy approach as follows: - Level 1– enterprises that have introduced or are in the process of introducing technologies allowing them to close the production cycle; - Level 2– enterprises that have introduced technologies that enable them to recycle resources, products or waste from a previous production-technological cycle; - Level 3– enterprises that have introduced technologies that enable them not only to recycle, but also to have the opportunity to reuse recycled resources in the next production-technological cycle. 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Efforts for a circular economy in China: A comprehensive review of policies. Journal of Industrial Ecology, 23(1), 110–118. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 21 CIRCULAR APPROACHES: THE FUTURE OF PUBLIC PROCUREMENT Krasimira Valcheva Chief Assistant, PhD Department of Public administration, Faculty of Management and Administration, UNWE, Sofia, Bulgaria Corresponding author: e-mail: kvalcheva@unwe.bg ORCID: https://orcid.org/0000-00025353-4191 Published First Online: 24.06.2024 ABSTRACT The future of public procurement is increasingly interconnected with the principles of circular economy as governments face pressing ecological, economic, and social challenges that deplete their financial resources. The adoption of circular public procurement practices represents a significant shift towards sustainability and offers significant benefits to government contractors, businesses, and citizens alike. This approach drives innovation and creates added value as it focuses on extending product lifecycles, reducing waste, and promoting resource efficiency throughout supply chains. If public entities prioritize circularity in their purchasing, they could enhance trust and reputation through the creation of a sustainable and resilient procurement ecosystem. This paper explores the concept of circular public procurement and how it could be implemented by public entities to advance sustainable development goals and ensure long-term socio-environmental benefits. KEYWORDS: public procurement, circularity, sustainability, models, approaches Pages: 22 – 33 JEL: F18, H57, Q01 DOI: https://doi.org/10.37075/JOMSA.2 024.1.02 INTRODUCTION The traditional linear economy model of ‘take, make, dispose’ leads the world to various escalating environmental challenges as natural resources deplete and pollution levels constantly increase. It has multiple disadvantages for modern economies and proved to be unsustainable in the long run. This realization has inspired a global shift towards more eco-orientated practices, with sustainable, circular, and green public procurements emerging as key strategies. Public procurement, which accounts for a significant portion of the expenses in modern states, is viewed as a powerful tool for the promotion of sustainable development and a driver for a market transformation towards more environmentally friendly practices. Historically, public procurement policies have been cantered around cost-effectiveness and efficiency. The introduction of circular criteria into the processes has the potential to significantly alter market dynamics. If public contractors prioritize products and services that meet higher environmental standards, they could drive demand for sustainable innovations and incentivize companies to develop greener solutions. Despite their numerous potential benefits, the implementation of circular public procurement also faces challenges related to lack of expertise, price concerns, and available market options. The current legal and regulatory frameworks do not always support the inclusion of circular criteria in the procurement process that necessitates policy reforms and capacity-building initiatives. International organizations and local governments play a key role as they have the Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 22 authority to enact legislation that encourages and even mandates the adoption of circular procurement practices. 1. PUBLIC PROCUREMENT IN A CIRCULAR ECONOMY In contrast to the linear economy, the circular economy is an economic system designed to eliminate waste and encourage the continual use of resources. With the significant purchasing power at their disposal, public authorities could lead the transformation, set an example, and create demand for more sustainable products and services. Public procurement is a key tool that could be utilized to encourage the business to seek innovative solutions that could turn out to be more economically advantageous in the long term not only for the public contractors but also for the citizens and the environment. The European Parliament (2023) defines the circular economy as a system that minimizes waste by reusing, repairing, refurbishing, and recycling existing materials and products. It aims to keep products and materials in use for as long as possible extracting maximum value from them while in use and then recovering and regenerating products and materials at the end of their life cycle. The benefits of a circular economy are diverse: 1) environmentally, it reduces waste, conserves resources, and decreases greenhouse gas emissions, 2) economically, it stimulates innovation, creates jobs, and enhances competitiveness by creating new business opportunities and reducing production costs, and last but not least 3) socially, it stimulates sustainable consumption patterns and could improve the citizens’ quality of life by promoting products that are more durable and easier to maintain. The transition to a circular economy requires changes across the entire value chain - product design, business models, and consumer behaviour. Key strategies include eco-design, which focuses on the creation of products that are easier to repair, upgrade, and recycle, and new business models such as product-as-a-service, where companies retain ownership of products and provide services to customers. To facilitate this transition, comprehensive and continuous policies are of key importance. On a regional level, the European Parliament actively supports the circular economy as it adopts and implements regulations that set targets for waste reduction and recycling, incentives for businesses to endorse circular practices, and measures to raise consumer awareness about the benefits of sustainable consumption such as the adopted in 2019 Directive (EU) 2019/904 regarding Single Use Plastics. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 23 Figure 1. Phases of the circular economy vs EU waste prevention Source: ECA, 2023 Different definitions exist concerning Circular Public Procurement (CPP). A more general one is adopted by Oppen et al.: ‘Circular procurement is the process in which a product, a service or a project is purchased according to the principles of a circular economy. In this process the technical aspects of the product are as circular as possible, taking maintenance and return policies at the end of the use period into account, as well as including financial incentives to guarantee circular use’ (Van Oppen et al., 2018; p.20). The European Commission (EC) provides a more detailed definition: the CPP represents ‘the process by which public authorities purchase works, goods or services that seek to contribute to closed energy and material loops within supply chains, whilst minimizing, and in the best case avoiding, negative environmental impacts and waste creation across their whole life cycle’ (EC, 2017; p.5). Both support the principles of circular economy through prioritization of goods that are designed to be durable, reparable, and recyclable, as well as services that promote product life extension and resource efficiency. It is essential to make a distinction between Circular Public Procurement (CPP), the focus of the present article, and another prominent type of procurement, Sustainable Public Procurement (SPP). While both have gained significant importance in recent years, a major line of differentiation lies in their respective scopes. Both types have a goal to promote sustainable priorities, but the SPP extends further than the CPP and includes not only environmental but also social considerations. SPP represents an effective way to reduce the environmental impact, but CPP has the potential to take sustainability further shifting the structure of the economy from a linear model to a closed loop, a more holistic approach that requires collaboration throughout the value chain to align common goals and empower stakeholders to actively engage (Gualandris et al., 2019; Thompson et al., n.d.). McLennan (2018) raises an interesting question - is CPP the new sustainable? The author’s assertion that ‘circularity itself is not an objective it is a means for achieving sustainability’ reveals the interconnected yet distinct nature of the two concepts. Various organizations have included CPP in their agenda – Circular Innovation Council, CircPro, Interreg Europe, The Chartered Institute of Procurement & Supply (CHIPS), CityLoops, etc. The European Union (EU) makes no exception and is a frontrunner in the promotion of CPPs. The new Circular Economy Action Plan (EC, 2020), part of the European Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 24 Green Deal, includes specific measures to ensure that public procurement practices support the transition to a circular economy. The focus is on those sectors that consume the most resources and where the potential for circularity is high such as electronics and ICT, batteries and vehicles, packaging, plastics, etc. The member states are encouraged to adopt circular procurement criteria and to provide guidance on how to implement such practices. The Circular Economy Action Plan also provides examples of sustainable practices (EC, 2020). For example, in the electronics and ICT sector ‘two in three Europeans would use their digital devices for longer provided performance is not significantly affected’. The solution would be to promote business models that encourage product-as-a-service and eco-designs. Regarding plastics, by 2050 they could account for 20% of oil consumption and 15% of greenhouse gas emissions, with plastic consumption expected to double in the next 20 years. The Action plan advocates for substitution of the single-use products wherever possible with durable, reusable alternatives. 2. ADVANTAGES AND DISADVANTAGES OF CPP CPPs are in line with the United Nations Sustainable Development Goals as they offer a wide range of benefits that enhance both operational efficiency and sustainability for organizations. A primary advantage of CPPs is the reduction of costs in both the short and long term through the reuse, refurbishment, and recycling of materials, which streamlines processes and minimizes waste management needs. They address environmental challenges such as the depletion of scarce raw materials and broader environmental degradation and thus contribute to the preservation of natural resources and environmental protection. This approach brings greater transparency to the supply chain and allows organizations to more effectively track the origin and lifecycle of materials. CPPs also help organizations generate more added value and become future-proof through cost reductions, securing material supply, enhancing resilience to market fluctuations, and fostering a more dependable supply chain. A quick look at one of the indicators from the four groups that are set to monitor the circular economy transition advancement reveals a significant potential that could be further utilized specifically for the added value of the circular economy (EC, 2018). Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 25 Figure 2. Private investment and gross added value related to circular economy sectors as % of GDP (2012-2021) 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 Member states Average EU average Source: author’s calculations based on Eurostat, 2022 The adoption of circular practices enhances the organizational reputation and market distinction by demonstrating a commitment to sustainability, attracting customers, investors, and partners who value environmental responsibility. A notable example of a such commitment and positive trend is the EU Ecolabel. A world-renowned scheme, it facilitates Europe’s shift towards a circular economy as it promotes sustainable production and consumption. It sets transparent ecological criteria that allow consumers to make informed choices without sacrificing product quality. The EU Ecolabel also incentivizes manufacturers to design durable and repairable products, and this fosters innovation and resource conservation. This label is a key element of the EC’s Sustainable Consumption and Production and Sustainable Industrial Policy action plan and is referenced in the 2020 Circular Economy Action Plan (EC, n.d.). Figure 3. Evolution in EU Ecolabel products and licenses 3000 100000 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 2500 2000 1500 1000 500 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Number of EU Ecolabel products Number of EU Ecolabel licences Source: author’s calculation based on EC, 2024 CPPs support the modernization of business models as they promote innovation and adaptation to changing market demands by extending product lifespans and reducing procurement frequency. By expanding sustainable procurement activities and prioritizing social and Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 26 economic benefits, CPP drives innovation, builds capacity in both public and private sectors, shifts markets independently of legislation, and aligns with policy objectives such as fiscal cautiousness, greenhouse gas emissions reduction, and biodiversity protection, all while generating economic opportunities (CHIPS, 2024; FCM, 2023). Despite their multiple potential benefits, the implementation of CPPs also faces several challenges. The lack of awareness and understanding of circular economy principles among procurement officials is a major one. Many public procurement processes are still heavily influenced by traditional linear economic models, and transitioning to a circular approach requires significant changes in procurement criteria and practices (Rainville, 2021). There are also practical challenges related to the availability and cost of circular products and services – sometimes circular options may have higher upfront costs, which could be a barrier for public authorities that operate under tight budget constraints. To be able to consider the long-term cost savings and environmental benefits that CPP could offer a specific expertise is required. A step towards the successful transition is the implementation of the concept of ‘Most Economically Advantageous Tender (MEAT)’ in the EU procurement practice with Directive 2014/24/EU. It is a procurement evaluation method used by contracting authorities to determine the best value for money from tenders. Rather than selecting solely based on the lowest price, MEAT allows for the consideration of various qualitative and technical criteria that reflect the overall benefits of a tender. The two additional options to be included in the evaluation are directly connected with the circular economy model: cost, using a cost-effectiveness approach such as life cycle costing or the best price-quality ratio (FELP, 2023). Many member states successfully apply the MEAT criteria, but as of the latest available data from the Single Market Scoreboard, there is still much room for improvement. Figure 4. Award criteria % based on price alone, 2022 100 85 86 87 80 81 83 80 96 92 93 94 70 72 65 65 68 58 58 60 49 49 50 40 30 20 1 8 15 37 21 22 0 >80% unsatisfactory performance Source: EC - Single Market Scoreboard, 2023 Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 27 Despite the drawbacks, there are examples across Europe, where the CPP approach is successfully adopted. The Norwegian pilot (Boessenkool, 2022), led by the Norwegian Agency for Public and Financial Management (DFØ), showcases a proactive approach to furniture procurement, emphasizing reuse and redesign to mitigate waste. The initiative was undertaken in line with the European Environmental Bureau that underscores the alarming scale of waste generation in the EU, with approximately 10 million tonnes of furniture discarded annually by businesses and consumers, a significant portion of which ends up in landfills or incinerators. DFØ's adoption of circular criteria in its procurement process, including prioritizing longevity, closed material loops, and compliance with environmental regulations, confirms its commitment to sustainability. The key lesson from DFØ's experience is the importance of early and thorough planning that includes setting quantified reuse goals, securing leadership support, and engaging suppliers well in advance. Another notable example is the ‘The City of Helsinki’s Roadmap for Circular and Sharing Economy’ (Urban Environment Division, 2020). The city conducts procurements that exceed 2 billion euros annually and equal to around 40% of its total expenses. Given the substantial volume, the integrations of circular economy criteria could significantly mitigate material consumption, waste generation, transportation, and associated emissions. The city governance plans foresee from 2025 on all procurements to include circular economy criteria. In Seville, Spain, the city focused on improving the recycling quality of construction and demolition waste (CDW) and enhancing efficiency in bio-waste collection. Through a comprehensive procurement strategy, Seville promoted circular economy principles, collaborated with various stakeholders to develop circular instruments, and signed the European Circular Cities Declaration. Workshops and seminars facilitated knowledge-sharing and stakeholder engagement in the construction and demolition sector to foster a circular economy approach in CDW management and contribute to sustainable resource utilization and waste reduction in the city (CityLoops, 2023). Despite the advantages that a circular economy could provide the transition process is slow in the EU. As per the European Court of Auditors (2023), despite the allocation of the purpose over 10 billion euros for the period of 2014-2020, neither the EC nor member states didn't effectively target investments towards circular product and production process design. Instead, a significant portion of EU funds went to waste management, which has limited potential for reducing environmental impact. Although there's increased emphasis on the circular economy in the 2021-2027 programming period, member states still have the option to allocate funds predominantly to waste management rather than focus on its prevention through circular design. 3. MODELS AND APPROACHES TO CPP Models and approaches to CPP involve diverse strategies aimed at the integration of the principles of a circular economy into the procurement processes. These models emphasize the importance of waste reduction, promotion of reuse and recycling of materials, and shift focus from product ownership to service-oriented solutions. CPP could be implemented through various frameworks, such as the Green Public Procurement (GPP) and the Innovative Public Procurement (IPP), which guide municipal authorities in their efforts to reshape procurement Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 28 practices to support sustainability goals. A review of three different approaches and models is to illustrate the various methods by which public contractors could effectively integrate circular economy principles in the procurement process. Van Oppen et al. (2018) in their book ‘Circular Procurement in 8 Steps’ offered a comprehensive guide that involves integrating circular economy principles into the procurement process to promote sustainability and resource efficiency. The authors believe that there is no single solution to achieve CPP but rather a set of principles and practices that could be tailored to individual organizational needs. The eight steps that are proposed are as follows: 1. Circular procurement: why and what? This step involves defining the purpose and significance of circular procurement within an organization. It includes establishing the motivation behind the adoption of circular practices and determining what circular economy means for a specific procurement project. 2. Internal organization and alignment: engagement of internal stakeholders across different departments to ensure alignment with the circular procurement process. This step focuses on getting buy-in from key decision-makers and employees to support the transition to circular practices. 3. Formulating your question: definition of the scope of the procurement assignment and specification of the requirements. This step involves determining the objectives, specifications, and criteria for the procurement project to ensure circularity is integrated into the process. 4. Collaboration: fostering collaboration with external partners, suppliers, and other stakeholders to promote circularity in the process. It emphasizes the importance of working with a diverse range of partners to achieve circular goals and close the loop in the value chain. 5. Tendering procedure: development of a procurement procedure that encourages suppliers to provide circular offers while maintaining a balance between competition and collaboration. The focus is on creating a procurement process that incentivizes circular solutions and promotes innovation among suppliers. 6. Measuring and assessing circularity: implementation of methods to objectively measure and evaluate the circularity of products and services being procured. There should be established metrics, indicators, and assessment tools to evaluate the level of circularity in procurement activities. 7. Securing circularity: ensure the long-term sustainability of circular ambitions by exploring revenue models and proposing circular contracts. Strategies need to be developed to guarantee that circular commitments from suppliers are met and maintained throughout the contract period. 8. Managing circular contracts: monitor and manage the implementation of contracts to ensure continued use and success. This step focuses on overseeing Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 29 the execution of circular contracts, tracking progress, and addressing any challenges or opportunities that arise during the contract period. According to the authors, the eight steps are not linear but rather iterative and cyclical. Each project and procurement process build on previous experiences, leading to continuous improvement in the organization's circularity efforts. Another view on CPP implementation is offered by The Circular Procurement Guide (FCM, 2023) issued as part of the program of the Federation of Canadian Municipalities. It outlines five core circular business models that serve as strategies for the achievement of CPP goals. The first model includes a ‘Sharing platform’ and focuses on enabling the shared use of products or assets among multiple users thus reducing the need for individual purchases. It emphasizes increasing the utilization of products by distributing them among many users. The second one is the ‘Product as Service’ model where public contractors instead of owning a product, purchase its function or value. Examples may include office copiers, lighting, computers, and mobile phones, where ownership, repair, and maintenance remain the supplier's responsibility. The third model is called ‘Product Life Extension’ and involves purchasing from suppliers that support repair, refurbishment, or remanufacturing to extend a product's lifetime. It also includes buying products designed for easy disassembly or with solid warranties to facilitate product life extension. The ‘Circular Supplies’ model relies on inputs made from sources that are renewable, easily recyclable, or recoverable. Purchasing from suppliers that use recovered or renewable materials in their products and assets promotes resource and product recovery. Finally, the fifth model ‘Resource Recovery’ concentrates efforts on finding ways to recover materials from products at the end of their useful life and converting them into a resource that could be reintegrated into another production cycle. Examples include recycling and composting, with an emphasis on managing recovery locally. The Guide further addresses how circularity could be implemented in the procurement process that involves three distinct phases: pre-purchase, purchase, and post-purchase. Each phase presents an opportunity to include circular considerations and prioritize long-term thinking across the entire product life cycle as market engagement is essential in advancing the circular economy within procurement. It involves open communication and discussions with suppliers to understand the organization's needs, uncover opportunities and barriers, and gain insight into the market's capabilities to respond to circular procurement requirements. Market engagement should occur in the pre- and post-purchase phases, to allow for pre-competitive conversations and knowledge sharing to develop circular criteria based on outcomes. Table 1. Implementation of circular considerations in procurement phases Procurement Phase Description Pre-Purchase Phase This phase offers the most significant opportunity to optimize circularity within procurement. Circular Considerations Buyers examine all stages of the product life cycle and develop procurement criteria; Assess whether a purchase is necessary and explore a circular business model; Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 30 Procurement Phase Circular Considerations Description Engage the market to communicate circular ambitions, learn about business developments, and understand procurement priorities. Incorporate product specifications and outcome-based criteria; In this phase, findings from the pre-purchase phase are incorporated into the procurement approach. Purchase Phase Post-Purchase Phase This phase relates to how products can be better used, maintained, and managed after their initial life and at end-oflife. Focus on reducing material usage, increasing manufacturing efficiency, extending product life, and optimizing reusability and recyclability; Consider specifications and criteria across supplier selection, products and accessories, servicing, delivery, maintenance, and end-of-life impacts. Monitor product use and perform regular maintenance; Refurbish older products and ensure warranties and responsible manufacturing; Explore opportunities for reuse by other organizations. Extend product life span and reduce the need for new products. Source: adapted from FCM, 2023 The EC provides guidance and best practices for implementing CPP within public organizations as a part of its commitment to emphasize the importance of transitioning from a linear economy to a circular economy. The approach is different as the models are divided into three major levels: system, supplier, and product. Table 2. CPP models System Level Supplier Level Product Level Product service system Supplier take-back system Materials in the product can be identified Public Private Partnership Design for disassembly Products can be disassembled after use Cooperation on sharing/reuse Reparability of standard products Recyclable materials Rent/lease External reuse/sale of products Resource efficiency and Total Cost of Ownership Supplier take-back systems. Internal reuse of products Recycled materials Source: EC, 2017, p.6 The organizational policy of implementation includes the necessity of creating a dedicated CPP policy or integrating circular economy principles into existing SPP policies to ensure sustainability is a priority within the organization. The strategic approach is significant since Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 31 the process is not limited to the purchase only but encompasses all the stages before and after the acquisition of products, works, or services. The EC also focuses on market engagement and highlights the benefits of collaboration with suppliers, sharing insights, and creating a pool of good practices to accelerate the transition. The evaluation is another critical phase in the CPP process. A comprehensive assessment is needed for their effectiveness and impact thus setting performance targets and monitoring are essential to ensure that organizational goals related to CPP are met. CONCLUSION With the growing global recognition of the importance of the circular economy, it is the future of public procurement to embrace its principles and approaches. The transition could offer significant advantages that not only address environmental challenges but also enhance economic efficiency and social benefits. The strategic mindset could considerably enhance the adoption and implementation of coherent regional and local policies and practices by public contractors. They could result in reduced waste, promote resource efficiency, and foster innovation and added value across supply chains. Market engagement is the key to knowledge sharing and acceleration of the transition to circularity, while clear procurement requirements and robust evaluation mechanisms could ensure that circular objectives are effectively met. Circular procurement is gradually adopted across the world and the EU, reflecting a fragmented yet promising shift towards sustainable practices. Despite the varying levels of implementation, the integration of circular procurement principles into public purchasing processes marks a significant advancement in addressing various challenges and prioritizing long-term sustainability over short-term gains. However, the adoption remains inconsistent, with some regions and countries leading the way and a lot of others to follow up. As public procurement continues to evolve and embrace circular approaches toward sustainable development goals, national governments could build a strong resilience against global challenges and contribute to a more sustainable future. REFERENCES Boessenkool, E. (2022, February 14). Pioneering the circular procurement of furniture. Interreg North Sea Region. https://northsearegion.eu/procirc/news/pioneering-the-circular-procurement-of-furniture/ CHIPS. (2024). Circular procurement. https://www.cips.org/intelligence-hub/sustainability/circular-procurement CityLoops. (2023). Circular procurement in Europe: Handbook for local and regional governments. https://cityloops.eu/fileadmin/user_upload/Images/Pages_Images/Circular_Procurement/CityLoops_2023 _Handbook_Circular-Procurement.pdf Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC European Commission (EC). (2017). Public procurement for a circular economy: good practice and guidance. https://circulareconomy.europa.eu/platform/sites/default/files/knowledge__public_procurement_circular_economy_brochure.pdf European Commission (EC). (2020). Circular economy https://environment.ec.europa.eu/strategy/circular-economy-action-plan_en Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 32 action plan. European Commission (EC). (n.d.). About the EU Ecolabel. https://environment.ec.europa.eu/topics/circulareconomy/eu-ecolabel/about-eu-ecolabel_en European Commission. (2018). COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS on a monitoring framework for the circular economy. https://eurlex.europa.eu/legal-content/EN/TXT/?uri=COM%3A2018%3A29%3AFIN European Commission. (2020). Circular economy action plan: the European Green Deal. Publications Office. https://data.europa.eu/doi/10.2775/458852 European Commission. (2023, September 26). Single Market Scoreboard (01/2022-12/2022). https://singlemarket-scoreboard.ec.europa.eu/business-framework-conditions/public-procurement_en European Commission. (2024). EU Ecolabel facts and figures. https://environment.ec.europa.eu/topics/circulareconomy/eu-ecolabel/business/ecolabel-facts-and-figures_en European Court of Auditors (ECA). (2023). Special Report: https://www.eca.europa.eu/ECAPublications/SR-2023-17/SR-2023-17_EN.pdf Circular economy. European Parliament. (2023, May 24). Circular economy: definition, importance and benefits. https://www.europarl.europa.eu/topics/en/article/20151201STO05603/circular-economy-definitionimportance-and-benefits Eurostat. (2022). Private investment and gross added value related to circular economy sectors. [Data set]. https://doi.org/10.2908/CEI_CIE012 FCM. (2023). Circular Procurement: Strategies for Circular Criteria. https://circularprocurement.ca/wpcontent/uploads/2024/02/CCRI-English-Circular-Procurement-Guide.pdf FELP. (2023). Most economically advantageous tender (MEAT). https://www.felp.ac.uk/content/mosteconomically-advantageous-tender-meat Gualandris, J., Edmonds, F. & Da Ponte, M. (2019). How sustainable and circular procurement can take off. https://nbs.net/how-sustainable-and-circular-procurement-can-take-off/ McLennan. (2018, September 13). Is Circular Procurement the New Sustainable? Green Policy Platform. https://www.greenpolicyplatform.org/blog/circular-procurement-new-sustainable Rainville, A. (2021). Stimulating a more Circular Economy through Public Procurement: Roles and dynamics of intermediation. Research Policy, 50(4), p. 104193. https://doi.org/10.1016/j.respol.2020.104193. Thompson, N., Braun, J. & Elias, H. (n.d.) Why is circular procurement a hot topic right now? Edge Impact. https://www.edgeimpact.global/insights/circular-procurement Urban Environment Division. (2020). The city of Helsinki’s roadmap for circular and sharing economy. https://circulareconomy.europa.eu/platform/sites/default/files/the-city-of-helsinkis-roadmap-for-circularand-sharing-economy.pdf Van Oppen, A., Croon, G. & De Vroe, D. (2018). Circular procurement in 8 steps. Copper8. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 33 GROWTH CHALLENGES AND OPPORTUNITIES FOR MSMEs IN BULGARIA Ivaylo Iliev PhD Business Management and Marketing, VUZF, Sofia, Bulgaria ABSTRACT Corresponding author: e-mail: i.iliev@vuzf.bg ORCID: https://orcid.org/0000-00029118-6079 Micro, small, and medium enterprises (MSMEs) are frequently established in Bulgaria. They face many unique challenges from all business perspectives: management, finance, marketing, human resources, etc. While MSMEs have certain advantages, the challenges they face are quite different from the ones medium and large companies experience. This article used a mixed-method research design to determine the key challenges of MSMEs in Bulgaria. To overcome their challenges, MSMEs should rely on their main advantages – flexibility, adaptation, and resilience. KEYWORDS: business, management, challenges, MSMEs Published First Online: 24.06.2024 JEL: G3, J0, L1, L2 Pages: 34 – 41 DOI: https://doi.org/10.37075/JOMS A.2024.1.03 INTRODUCTION Micro, Small, and Medium Enterprises (MSMEs) play a key role in the marketplace of the economies around the world. While definitions vary from country to country, their impact on battling economic issues such as poverty and unemployment while supporting innovation and growth is recognized in the different regions (Salgado et al., 2018; Scuotto, Santoro et al., 2017). MSMEs impact job creation and economic development (Sahut et al. 2019) in a world that’s heavily driven by the digitalization (post-COVID-19 pandemic) of both public services and businesses. A variety of factors impact the performance of a company, with the environment creating a unique set of growth challenges and opportunities to explore. Some of the main advantages and growth opportunities that MSMEs have compared to large corporations are their adaptability and flexibility (lacking the larger structure and established processes in larger companies), their open innovation (Torchia & Calabrò, 2019), and their collaboration possibilities (Zahoor &Al-Tabaa, 2020). The main challenges for MSMEs can come from an administrative/legislative perspective, market-wise (competitors, marketing budget restrictions), and internal (employees, their qualifications, expenses, etc.). 1. Challenges for MSMEs in Bulgaria MSMEs hold a key position in the economic balance – they account for 90% of businesses, 6070% of employment, and 50% of GDP worldwide (UN data). Small and medium-sized enterprises represent 99% of all companies in the EU and employ around 100 million people. As a member of the European Union, Bulgaria applies the same definitions concerning the Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 34 classification of the enterprise. As per the European Commission (2003) the limit under which a company is considered an MSME is 250 employees and a turnover below €50 million. Table 1 outlines the specific numbers regarding staff headcount and turnover for each of the MSME types. Table 1. Classifications of enterprise Enterprise type Micro Small Medium Large Staff headcount <10 <50 <250 > 250 Turnover ≤ €2m ≤ €10m ≤ €50m > €50m Source: European Commission, 2003 As per NSI (2022) Bulgaria, the impact MSMEs have on the economy is similar to the worldwide data. 93.4% of 449,481 enterprises are micro, 5.4% are small-sized, 1% are medium and only 0.2% are large companies. MSMEs are essential for countries' potential growth and development (Stel, A. V., Carree, Thurik, 2005, Acs, Desai, Leora, 2008). In Bulgaria, 72% of the total revenue received by nonfinancial enterprises is received by MSMEs affirming the considerable impact that this type of enterprise has on the economy. 1.1. Administrative Challenges Regulatory business freedom is the ability to create, operate, and close a registered company easily and quickly. This freedom is also highlighted as an important part of the EU-wide legislation through the EU Charter of Fundamental Rights (within Title II Freedoms, Article 16 – Freedom to conduct a business). While Bulgarian legislation and requirements are being simplified for an easier process for companies (e.g. company registration), there are still many areas that could be improved in terms of services provided by the government to make the process for micro and small companies including providing a bigger variety of online services and quicker deadlines. Some aspects of the regulations are burdensome and redundant – they create the biggest challenges and barriers to MSMEs in Bulgaria. The importance of reform in the public administration modus operandi has been highlighted by the recent Structural Reform Support Program (EU, 2019) in which the Commission offered support for the conduct of a comprehensive review of the central administration organization, compliance of allocated functions and competencies applying a model pre-defined in the Administration act. While those recommendations would benefit all companies, they are crucial for small business owners whose operations can sometimes be wholly blocked by administrative delays and deadlines it’s even more pivotal. The benefit of larger companies is that their operations are larger and their overall performance won’t be affected as strongly as the smaller MSMEs (which can be fully blocked/stopped). Another challenge many MSMEs are facing is easy access to government services. This is especially valid for owners in small cities and villages who have to travel and spend more time reaching administrative offices. Easy online access to all government services will save costs and provide further flexibility for MSMEs. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 35 1.2. Competition and market pressures MSMEs in Bulgaria are positioned in a challenging environment – with factors such as poverty (Veleva, 2023), low-level quality of education in the workforce, and competition from international conglomerates across different sectors. Micro companies face intense competition from larger manufacturers and imported goods, often struggling to compete on price due to higher production costs. Globalization offers both bigger opportunities and challenges to MSMEs. Many companies operate on multiple markets and expand to international reach through platforms like Etsy, Amazon, eBay, etc. Many Bulgarian micro-companies are offering their goods using this model while others prefer to have local reach only (services such as personal grooming for example). The market conditions continuously accentuate the need to improve the product or service for the business to survive. A core element of MSMEs is entrepreneurship. While there are many definitions of what entrepreneurship entails, it has been agreed upon by a consensus that entrepreneurship helps with the ability to generate desirable economic outcomes of growth, innovation, and flexibility (Tiessen, 1997). Key aspects of entrepreneurship such as innovation, productivity, risk-taking, and motivation are important since they add a competitive edge in the business world. The entrepreneurial mindset provides a unique competitive advantage to MSMEs. The author has surveyed Bulgarian business owners of MSMEs through survey questionnaires. All respondents were assured confidentiality of the information provided and anonymity regarding their participation in this study. 67 respondents completed the survey. The survey had 3 distinct parts: 1. General and statistical information about the owner and the business 2. Perceived challenges and advantages for the business Table 2. Characteristics of a sample of MSME representatives Characteristics of respondents Gender Education Location of the enterprise Offering The period business has been operating for Number of respondents Percentage % Male Female High School Bachelor Degree Master's Degree Doctorate or higher Capital (Sofia) 42 25 21 29 15 2 33 63% 37% 31% 43% 22% 3% 49% Regional city Small city or village 12 5 18% 7% Online only Product Service Both 17 53 13 1 25% 79% 19% 1% 0-3 years 12 18% Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 36 Characteristics of respondents Size of the business Number of respondents Percentage % 3-5 years 5-10 years 10+ years 1-10 employees 11-50 employees 42 9 4 48 16 63% 13% 6% 72% 24% 50-250 employees 3 4% Source: Own (survey conducted online, 2024) To determine the specific growth challenges MSMEs in Bulgaria are facing the author has first focused on understanding the situation in which the analysed companies operate. The respondents who fulfilled the survey were predominantly male (63%), while 37% were females. The highest level of education obtained by the constituents was a doctorate (PhD.) or higher – with only two respondents having it (3%). The majority of respondents had completed either high school (31%) or a bachelor's degree (43%), while only 22% had obtained a master’s degree. This shows that people with an entrepreneurial mindset rarely follow the academic development path, preferring to focus on their business pursuits. The majority of the enterprises are located in the capital city of Bulgaria, Sofia – 49%, with 18% being located in a regional city, 7% in a small city or village, and interestingly enough – 25% of the companies do not have a physical store/location where they interact with their customers, instead of that focusing only on online presence and operating their business fully through digital channels. Most of the businesses that participated in the survey have been operating between 3 and 5 years (63%), with 18% of them operating between 0-3 years and 13% of respondents with businesses operating between 5-10 years. Only 6% of the respondents were operating over 10 years. Although the survey conducted is relatively small (only 67 respondents), the results show that few MSMEs make it long-term (over 10 years) which means they cannot maintain their position in the marketplace long-term. In terms of the size of the business, the majority of firms within the respondents are microenterprises and have 1-10 employees – 72%. 24% of the companies have between 10-50 employees and only 4% have between 50 and 250 employees. This shows us that the majority of respondents work in smaller teams and are still in the development/entrepreneurial stage of their business journey. The second part of the survey focused on the challenges and general marketing activities of the respondent companies. The results are outlined in Table 3. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 37 Table 3. Growth Challenges and Opportunities for MSMEs Number of respondents that feel positive towards the statement Focus area Percentage % Product COGS advantage 26 39% 18 27% 13 19% 46 32 28 25 69% 48% 42% 37% Yes 42 63% No Yes No Yes No Yes 25 50 17 29 38 2 37% 75% 25% 43% 57% 3% No 63 94% Product/Service quality advantage Final price for the customer Workforce Employee effectiveness Employee experience Employee skill set Employee loyalty Marketing efforts Website Facebook page Instagram account TikTok Account Source: Own (survey conducted online, 2024) The second part of the survey focuses on the business challenges that MSMEs face and the growth opportunities. This part of the survey is divided into several segments touching points on key functionalities/elements of the business operations: Product, Workforce, and Marketing efforts. Within the product questions, the enterprises have answered whether they feel they have a COGS advantage (COGS stand for Costs of Goods Sold, the expenses for manufacturing the product). A solid 26 respondents (39%) of the companies have advised they feel they have a COGS advantage which is a good result and is most likely attributed to unique products and cheaper costs for manufacturing and shipping within Bulgaria compared to other countries. At the same time, micro companies face intense competition from larger manufacturers and imported goods, often struggling to compete on price due to higher production costs (Iliev, I., 2024). Only 27% of the respondents feel they have an advantage concerning the quality they’re offering. Regarding the final price that is offered to the marketplace (and customers) only 19% feel confident that they have a competitive advantage. As of the workforce, 69% of the respondents of the survey feel they employees are effective, while only 48% would say that they’re experienced. The impressive 42% feel that the employee Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 38 skill set is offering a strong competitive advantage for the business. 37% of the respondents confirm that their employees are loyal to the company. The next part of the survey focuses on the presence online of the companies since it’s a crucial element to the marketing mix and success. 63% of respondents have a website, while the remainder do not have one. Only 2 companies or barely 3% have a TikTok account, while the remaining 63 participants (or 94%) do not have one. The survey shows that while MSMEs believe in the qualities of their employees, they have room for improvement with regards to the product or service being offered and their digital marketing efforts. Marketing plays a pivotal role in promoting innovation and enhancing the value offered to consumers. It provides insights into consumer needs and preferences, guiding the development of new products and services that fulfil unmet demands. (Ilieva, 2024). 2. Growth opportunities for MSMEs in Bulgaria Product economics is important for a company’s budgeting and financial success. One of the challenges that many micro and small companies face is related to budgeting and understanding the basic principles of analysis and prognosis of a budget (Jolovski, 2018) is crucial for the long-term survival and success of the entity. MSMEs could benefit from a consultancy from experienced business and financial professionals to help them look for opportunities to optimize their COGS. With regards to the product and service offered and its uniqueness – this is an area that might change the outcome of the business. MSMEs should spend extensive time researching their competitors and learning from their customers what features they’re looking for in the products/services niche they’re in. Personalization, customization, and unique design – all of these features can allow MSMEs to be competitive on the marketplace. MSMEs should focus on creating a work environment that supports skill development and inspires the employees to improve their performance – this will only benefit the company long term. Thinking about ways to incentivize employee loyalty as well as build closer relationships with the employees is something that could help MSMEs build a strong team to help them grow and improve their profits. The digital presence of the MSMEs in Bulgaria offers opportunities for the growth and development of the business. Social media platforms are no longer just digital business cards for companies – they can be used as marketplaces and help customers go through the marketing funnel successfully. MSMEs in Bulgaria can benefit from learning more about the ways to use social media to their benefit and support them in growing their business. In conclusion, there are many growth opportunities where MSMEs can use their strengths and improve their financial performance. They need to use their flexibility, quicker adaptation to changes, and strong resilience when facing difficulties to manage all aspects of their business. Identifying the weak spots in each specific business also allows for the identification of the areas where the biggest growth can occur. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 39 CONCLUSION The biggest challenges MSMEs in Bulgaria face can be distinguished between two main categories: administration and market pressure. While the administration is undergoing a digitalization process, there is room for improvement both in terms of technical operations and legislative ease in terms of processes regarding MSMEs. The market challenges MSMEs face come from the competitors operating with imported goods or larger volumes that can offer better prices to the end customers. Digital expansion and marketing efforts are another area that presents both challenges and opportunities to MSMEs. When exploring growth opportunities Bulgarian MSMEs should focus on the product/service they’re offering, optimizing their COGS, and creating a work environment that supports skill development and inspires employees to be better and loyal to the company. Creating a strong internal core will help MSME companies to be stronger in the competitive marketplace. Relying on their strengths is the way MSMEs can explore growth opportunities such as a stronger digital presence and reaching out to their target audience. REFERENCES Acs, Z. J., Desai, S., & Leora, F. K. (2008). What does ’entrepreneurship’ data really show? Small Business Еconomics, 31, 265-281. Retrieved from http://hdl.handle.net/10986/4902 Braybrooks, M., (2008). Entrepreneurial policy in South Eastern Europe: the role of culture, economics and regulation in augmenting MSME development, https://ir.library.oregonstate.edu/concern/graduate_projects/cz30pv46v Gomes de Carvalho, G., Martins de Resende, L.M., Pontes, J., Gomes de Carvalho, H., Beti, L.M.B. (2021). Innovation and Management in MSMEs: A Literature Review of Highly Cited Papers, SAGE Open 11(4), Available from: https://www.researchgate.net/publication/355345378_Innovation_and_Management_in_MSMEs_A_Liter ature_Review_of_Highly_Cited_Papers Iliev, I., Scaling Furniture Manufacturing Micro Companies into SMEs, 17th International Scientific Conference, WoodEMA, 2024. Green Deal Initiatives. Sustainable Management, Market Demands, and New Production Perspectives in the Forestry-Based Sector Ilieva, G., Digital Marketing Strategies to promote furniture manufacturing MSMEs, 17th International Scientific Conference, WoodEMA, 2024. Green Deal Initiatives. Sustainable Management, Market Demands, and New Production Perspectives in the Forestry-Based Sector Jolovski, J, ‘Budget – key instrument of financial management’ and ‘Pension and life insurance’ in ‘Personal finance’ 2018, JA Bulgaria, ISBN 978-954-8421-37-9 Sahut, J-M, Iandoli, L., and Teulon, F., (2019). The age of digital entrepreneurship. Small Business Economics 56, 1159–69 Salgado, E. G., Salomon, V. A. P., Mello, C. H. P., & Silva, C. E.S. D. (2018). New product development in small and medium-sized technology-based companies: A multiple case study. ActaScientiarum Technology, 40, 11. https://doi.org/10.4025/actas-citechnol.v40i1.35242 Scuotto, V., Santoro, G., Bresciani, S., & Del Giudice, M. (2017). Shifting intra- and inter-organizational innovation processes towards digital business: An empirical analysis of SMEs. Creativity and Innovation Management, 26(3), 247–255.https://doi.org/10.1111/caim.12221 Stel, A. V., Carree, M., & Thurik, R. (2005). The effect of entrepreneurial activity on national economic growth. Small Business Economics, 24(3), 311-321 Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 40 Torchia, M., & Calabrò, A. (2019). Open innovation in SMEs: A systematic literature review. Journal of Enterprising Culture,27(2), 201–228. https://doi.org/10.1142/s0218495819500080 Veleva, R. (2023). Poverty in Bulgaria: A General Challenge. Journal of Management Sciences and Applications, 2023/2, pp. 233–240. ISSN 2815-3030, https://www.ceeol.com/search/article-detail?id=1203928 Zahoor, N., & Al-Tabbaa, O. (2020). Inter-organizational collaboration and SMEs’ innovation: A systematic review and future research directions. Scandinavian Journal of Management, 36(2), 19. https://doi.org/10.1016/j.scaman.2020.101109 EUR-Lex - 32003H0361 (2003). https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32003H0361 EU Charter of Fundamental Rights (2007). Official Journal of the European Union C 303/17 - 14.12.2007 https://fra.europa.eu/en/eu-charter/article/16-freedom-conduct-business?page=1 NSI. (2023). Брой на предприятията https://www.nsi.bg/bg/content/8212/%D0%B1%D1%80%D0%BE% D0%B9-%D0%BD%D0%B0-%D0%BF%D1%80%D0%B5%D0%B4%D0%BF %D1%80%D0%B8%D1%8F%D1%82%D0%B8%D1%8F%D1%82%D0%B0 United Nations (2024). https://www.un.org/en/observances/micro-small-medium-businesses-day#:~: text=MSMEs%20account%20for%2090%25%20of,and%20groups%20in%20vulnerable%20situations European Commission (2023). https://reform-support.ec.europa.eu/what-we-do/public-administration-andgovernance/supporting-public-administration-reform-bulgaria_en Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 41 Krasimira Valcheva Chief Assistant, PhD Department of Public administration, Faculty of Management and Administration, UNWE, Sofia, Bulgaria Corresponding author: e-mail: kvalcheva@unwe.bg ORCID: https://orcid.org/0000-00025353-4191 Published First Online: 24.06.2024 Pages: 42 – 52 DOI: https://doi.org/10.37075/JOMSA.2 024.1.04 PUBLIC PROCUREMENT IN BULGARIA: DO WE GET VALUE FOR THE TAXPAYER’S MONEY? ABSTRACT The article provides insights of the public procurement practices in Bulgaria within the European Union context. Through an examination of key indicators, trends, and challenges, the study offers a general understanding on how public procurement generates value for the taxpayers’ money with focus on competition. While Bulgaria demonstrates a strong commitment to transparency, challenges persist on national level, aligned with the overall regional trends. The prevalence of single bidding in certain sectors and negotiated procedures without open competition highlights key areas for improvement. Policymakers and stakeholders could enhance competitiveness and fairness in procurement practices, ultimately driving better outcomes for citizens and promoting sustainable development by prioritization targeted interventions and leveraging the available data. KEYWORDS: public procurement, scoreboard indicators, transparency competitiveness, value-for-money, JEL: H57, H60 INTRODUCTION One of the key elements that the New public management introduced into the public sector is competition with the goal to foster efficiency, effectiveness, innovation and to maximize the value-for-money (VfM) proposition for the taxpayers. By inciting competition, the intention was to stimulate public agencies and departments to streamline processes, minimize wastage, and ultimately deliver higher-quality services at optimal costs, thereby ensuring that taxpayers receive optimal returns on their investment in public services. Competition is also a key element when the public entities need to acquire goods, services, and works from private sector suppliers. This process – public procurement, represents a is a vital component of government operations worldwide. It significantly influences economic development and resource allocation within a country and at present is used as a strategic tool for policy implementation. In the European Union, the member states should navigate a complex web of regional and national regulations and practices to ensure that public procurement processes adhere to principles of transparency, fairness, efficiency, etc. On regional level the European Commission has developed a comprehensive set of performance indicators to monitor specific elements of the tendering process and if the contracting public entities manage to get good value for money (EC, n.d. c). The purpose of the present article is to provide an initial overview on how Bulgaria, compared to the other member states scores on three, that are regarded of utmost significance for the competitive level of the procurement process. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 42 1. KEY ELEMENTS OF EU PUBLIC PROCUREMENT REGULATORY FRAMEWORK Public procurement plays a central role in the functioning of modern democratic economies. Within the European Union (EU), public procurement accounts for a significant portion of overall government expenditure: annually more than 250 000 public entities spend around 14% of the GDP, equal to approximately to 2 trillion EUR (EC, n.d. a). Over the years, the EU has developed a comprehensive policy framework to regulate public procurement practices among its member states that could be traced back to the Treaty of Rome in 1957, which established the European Economic Community (EEC). Initially, the focus was on promotion of crossborder trade and prevention of discrimination against suppliers from other member states. However, with the expansion and further integration of the EU, the need for harmonized public procurement rules became evident. In 2014 the European commission (EC) called for corrective actions and strategies to modernize the public procurement in the EU, based of four key elements: value for money, transparency, fairness, and good governance. Public procurement should not be regarded anymore as just an administrative process but as an opportunity to deliver various societal objectives through smart spending (EC, 2014). This led to the adoption in 2014 of a set of directives aimed to facilitate and regulate the creation of a single market for public procurement within the EU: Directive 2014/24/EU and 2014/25/EU. On April 18, 2016, the transposition deadline for the two directives required EU countries to enact national legislation accordingly and the significant changes reshaping how EU countries and public authorities allocate a substantial portion of the funds dedicated to public procurement on annual basis entered in force. The new rules were aimed to streamline procurement processes, making it more accessible and cost-effective for small and medium-sized enterprises (SMEs) to compete for public contracts and prioritized obtaining the best value for money in public purchases while upholding the EU's principles of transparency and competition. The new legislation also allowed for the consideration of environmental, social, and innovative aspects when awarding public contracts, encouraging progress towards specific public policy objectives (EC, n.d. b; European Parliament News, 2014). In 2017, The EC continued its efforts to enhance the public procurement sector and strengthen the Single Market by presenting an “initiative to carry out procurement more efficiently and in a sustainable manner, while making full use of digital technologies to simplify and accelerate procedures” (EC, 2017a). The key priorities outlined in the strategy focus on ensuring wider uptake of strategic public procurement by emphasizing the importance of incorporating innovative, green, and social criteria, promoting pre-market consultation, and providing practical support for procurement processes. As key objectives were also highlighted addressing shortcomings in public procurement systems, targeting priority sectors for specific attention, and enhancing the role of public procurement in economic policy. By improving operational systems, promoting sustainable growth and jobs, and implementing directives to simplify procedures and enhance transparency, the strategy aims to transform public procurement into a strategic tool for economic development and efficiency within the EU. The Communication of the EC (2017b) also addressed the issue of competition in public procurement markets by stating concerns about collusion and the impact it could have on prices. This illegal practice could lead to inflated prices, adding up to 20% to the costs that would be incurred in competitive markets. The Commission acknowledges the role of contracting authorities in investigating and enforcing measures against collusive practices but also emphasizes the importance of proactive measures to minimize the risks of such behaviours. Actions to improve market knowledge of contracting authorities, careful planning and design of procurement processes, and better cooperation between public procurement and competition Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 43 authorities are proposed to address this issue. Additionally, guidelines on the application of EU procurement directives on exclusion grounds related to collusion are mentioned as part of the efforts to boost competition and integrity in public procurement. The focus in public procurement has shifted – it not just important the procurement to be in adherence to the legal framework, but it should further prioritize value-for-money (VfM), emphasizing the importance of obtaining optimal returns on investments. Public authorities should be committed to promote a fairer society that is built on principles of equal opportunity, sustainable economic growth, and broad market participation, while at the same time they maintain sustainable financial frameworks. National governments recognize the significant impact of public procurement on policy delivery and at present they view it as a strategic tool to achieve key policy objectives (Bieńkowska, 2017) and provide more value for the taxpayers’ money. The concept of VfM is significant for the public sector governance as it is closely related to the public expenditure, a significant part of which are the funds dedicated for public procurement. Various organizations, scholars and experts have attempted to define what is VfM in public procurement2. Although the aim of the present article does not include reviewing them, it is important to provide a basic understanding. A comprehensive one is provided by Jackson (2012) who explained the concept with reference to its close relation to the “three E’s”economy, efficiency, and effectiveness, as it represents striking the balance between them. It is not just about minimizing costs (economy) or maximizing outputs for a given level of inputs (efficiency), but also about achieving desired results and outcomes (effectiveness) in a costeffective manner. VfM is essential for ensuring that public funds are utilized efficiently and effectively and when it comes to procurement, it is about goods, services, or works to be acquired at the best possible cost while meeting the required quality standards and achieving the desired outcomes. In the procurement process, VfM considerations also involve assessment not only of the price of the goods or services but also of their quality, sustainability, and the overall value they bring to the project or program. By focusing on VfM in procurement, organizations could make informed decisions that maximize the impact of their spending and contribute to the overall effectiveness of their initiatives. But as Jackson points out “studies show that when procurement is tied, value for money is reduced: some believe by 15-30%” (p.3). This underscores the importance of promoting competition within procurement practices, as it fosters innovation, efficiency, and cost-effectiveness, ultimately driving better outcomes for both public organizations and the citizens, the main beneficiaries. The pursuit of VfM by the public contractors aims to instil confidence among taxpayers that their money is being managed carefully and responsibly by government entities, which fosters transparency, accountability, and trust in public institutions. The latter are also among the fundamental principles of public procurement as set in the EU’s rules and regulation: “As part of the single market, EU law sets out minimum public procurement rules to safeguard the core principles of transparency, equal treatment, open competition, and sound procedural management. This creates a competitive, open, and well-regulated procurement market to support growth in jobs and investments in the EU” (EU, n.d.). The goal is evident but of significant importance are the regulatory frameworks that would facilitate its achievement as well as the indicators that would be used to monitor its effectiveness as the main of concern are presented in the next paragraphs. 2 A comprehensive summary is provided by Adewumi-Audu, 2023. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 44 2. KEY COMPETITIVENESS INDICATORS IN PUBLIC PROCUREMENT Ensuring competition is the cornerstone to achieve VfM in public procurement and to support a dynamic marketplace. If the suppliers are encouraged to offer the best possible value, the public contractors could benefit from more efficiency, innovation, and cost-effectiveness. Also, if there are multiple suppliers competing for contracts, procurement processes become more transparent, open, and competitive, thus leading to better outcomes for taxpayers and stakeholders since resources are utilized in the most effective and efficient manner possible. To ensure competition in EU public tendering procedures encompass various methods for awarding contracts, with competitive tendering being the standard approach. Under competitive tendering, several procedures exist (Your Europe, 2024): • Open procedure: allows anyone to submit a full tender, most commonly used in practice; • Restricted procedure: allows anyone to request participation, but only pre-selected candidates could submit tenders; • Competitive negotiated procedure: open to all interested parties, but only pre-selected participants could submit initial tenders and negotiate; • Competitive dialogue: enables a contracting authority to propose a method for addressing a specific need; • Innovation partnership: applicable when the contracting party plans to purchase a product or service not yet available on the market and multiple companies may be involved throughout the process; • Design contest: used to acquire design ideas. Additional techniques that support competition may also be employed such as framework agreements, electronic dynamic purchasing systems and electronic auctions. Although there is a legal framework on EU level, all public procurement procedures are conducted in accordance with national regulations. For contracts of higher value, these regulations align with the overarching EU public procurement rules (there are specified thresholds that indicate when EU rules apply). They vary as per the nature of the purchase and the procuring entity, and they are periodically reviewed and adjusted. For tenders of lower value than those specified national procurement rules apply, yet adherent to EU principles of transparency and equal treatment (EC, n.d. d). At national level also, non-competitive tendering procedures may be used. For example, in Bulgaria they are under special surveillance from the national Public Procurements Agency (PPA): Negotiated procedure without prior publication, Negotiated procedure without prior call for competition of a contract notice, Negotiated procedure without publication of a contract notice and Direct contracting. They are considered of high risk since they are the least likely to comply with the basic principles of the public procurements - publicity, transparency, and competitiveness. For this reason, they could be applied by contracting authorities only in the presence of certain prerequisites and are subject to compliance with the conditions explicitly set out in the national law (PPA, 2022). In 2023, The European court of auditors published a special report “Public procurement in the EU: Less competition for contracts awarded for works, goods and services in the 10 years up to 2021” (ECA, 2023). Its goal was to provide insights into the challenges, trends, and shortcomings in the public procurement practices across the EU based on a comprehensive dataset that spreads over a decade-long period. Various aspects of public procurement are examined such as competition levels, direct awards, monitoring mechanisms, and the impact of Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 45 the 2014 reform of the directives on procurement practices. Some of the key points covered in the Report include evidence that there is less competition in public procurement processes as well as there is a prevalence of direct awards in several member states, which also limits competition. Although the EU and national legal frameworks are designed to encourage competition, there are inherent problems that impede reaching maximum effectiveness and efficiency that the public authorities find hard to deal with. They often come as a result of the complex regulations, bureaucratic barriers, and insufficient oversight mechanisms. Such factors could discourage potential bidders and thus compromise the attainment of VfM so they deserve special attention on European and national level. In the Report outlined are twelve Scoreboard indicators that are used to assess the performance of public procurement processes in EU. These indicators are categorized based on their weighting and what they measure and serve as evidence of key issues related to competitiveness since they indicate the inability of public contractors to secure VfM when purchasing goods, services, and works from private sector. For the purpose of the present research, only three indicators are selected since the Commission considered them to be particularly relevant, and triple-weighted them to calculate an overall composite indicator (ECA, 2023, p.11). Table 1. Scoreboard indicators description Triple weighted indicators Indicator What it measures Single bidding The proportion of contracts awarded where there was just one bidder. No call for bids Publication rate The proportion of procurement procedures that were negotiated with a company in the absence of a call for bids (also termed “direct award”); The value of public procurement advertised on TED as a proportion of national GDP. Source: excerpt from ECA, 2023 While it is not inherently problematic to receive a single bid, as it may indicate a competitive market with few suitable suppliers or contractors, consistently high levels of single bid occurrences could raise concerns about competition, value for money, and transparency in the procurement process. In 2019, Fazekas outlined a few significant reasons why single bidding is considered a problem and a challenge in public procurement with respect of competitiveness and VfM. The first one is that it may indicate a lack of competition in the procurement process, which could lead to higher prices, lower quality of goods or services, and reduced innovation. It might also suggest collusion or anti-competitive behaviour among suppliers, which could distort the market and harm fair competition and transparency of the procurement process. In the 2023 Report (ECA, 2023) these issues are further addressed since in a competitive bidding environment, multiple bidders compete to provide the best VfM which drives the cost savings and improves outcomes for the contracting authority – in a scenario with only one bid submitted, this could lead to suboptimal choices and inefficiencies in public spending. A higher rate of single bidding could be evidence that the market is distorted and the opportunities for new entrants and smaller businesses to engage in public procurement are limited. Procurement officials should monitor single bid statistics to identify trends in market engagement and assess Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 46 the effectiveness of their efforts to attract a diverse pool of suppliers or contractors. Consistently low levels of competition signal the need for targeted interventions to stimulate market interest. Also, relying on a single supplier or contractor increases the organization's vulnerability to disruptions, such as supplier insolvency or supply chain disruptions. Diversifying the supplier base through competitive procurement processes mitigates these risks. If the contracting party attains goods, services, or works, that were negotiated with a company in the absence of a call for bids also restricts competitiveness in the procurement process and needs to be monitored. When a public authority opts for a direct award without issuing a call for bids, it restricts competition by not allowing other potential suppliers to participate in the procurement process. In such procedures there is a high risk of non-compliance with the principles of transference and fairness as without an open and competitive bidding process, there is a risk of favouritism, lack of accountability, and potential for corruption. By bypassing the competitive bidding process, public authorities may miss opportunities to obtain better VfM and have access to more cost-effective solutions. With reference to the publication rate indicator which measures the extent to which public procurement procedures are advertised, the EU court of auditors state in the Report that by limiting the access to openly available information, the transparency and equality principles may be at risk. The member states are required to ensure that data for above-threshold procedures is obligatory transferred to the platform Tenders Electronic Daily (TED) in accordance with EU directives. This requirement further enhances accountability in public spending as it allows stakeholders to monitor the procurement activities. 3. COMPETITION AND VALUE-FOR-MONEY IN THE BULGARIAN PUBLIC PROCUREMENT SECTOR In Bulgaria the public procurement has an annual share of the national GDP (calculated by Production approach – Total of economy) below the average observed across the EU, which stands at approximately 14% for the period of 2009-2022. Several factors may contribute to this difference, which will me mentioned here but require further research and analysis. Bulgaria's economic structure and size may influence the proportion of GDP allocated to public procurement as smaller economies often exhibit lower spending levels on public procurement. Also, the efficiency and effectiveness of Bulgaria's public procurement processes, including transparency, competition levels, and regulatory frameworks, may impact the scale of procurement activities relative to GDP. Variations in government priorities, spending patterns, and investment strategies could further influence the amount of public procurement expenditure relative to overall economic activity. Another potential contributing factor is further suggested by the Bosio and Djankov (2020): “Fragile states often have a small share of public procurement to GDP, reflecting the limited ability of governments to deliver services”. In support of such claim, The Fragile state index, as provided by the Fund of Peace reveal for the period of 20092021 that Bulgaria has the second average highest score after Cyprus (TheGlobalEconomy.com, n.d.). Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 47 Figure 1. Public procurement value as a percentage of GDP in Bulgaria (2008-2022) 14,0 13,1 12,4 11,8 12,0 10,0 9,1 8,0 8,9 8,5 7,0 6,5 6,3 6,7 7,9 7,3 5,7 6,0 4,6 4,0 2,0 1,2 0,0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: author’s calculations based on data from NSI, n.d. and PPA, n.d. With reference to the competitiveness indicators selected and presented in the previous part of the article, a data provided by the European court of editors is used. To the analysis provided in the Report, an interactive dashboard was created (the “ECA Public procurement Dashboard) which is publicly available for further research of the data, collected for the audit (ECA, 2023, p.13). Regarding the first indicator “Single bidding”, the data reveals that in Bulgaria, the scores for the analysed period as very close to the average for the EU and follow the overall trend of increasing. Figure 2. Scoreboard indicators 2011-2020: Single bidding (%) 50,0 45,0 40,0 35,0 30,0 25,0 20,0 15,0 10,0 5,0 0,0 MS Average ЕU Average Source: author’s calculations based on data from ECA dashboard, 2023 The sectors in which the levels of single bidding in Bulgaria are higher include transport services, energy, and sewage services. Among the possible explanations for this may be few underlying reasons. First, the nature of these sectors often involves specialized infrastructure and technical requirements that limits the pool of eligible bidders who are capable to meet the Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 48 tendering specifications. A complex regulatory frameworks and licensing requirements also exist that may further deter potential competitors. In these sectors a concentration of market power among a few dominant suppliers or contractors is also common. Figure 3. Share of single bidder contracts in Bulgaria per biggest sectors (2011-2021) Medical eqpt 23,6% Financial svcs 30,1% All 32,8% Engineering 33,9% Construction 34,4% Transport eqpt 44,6% Health svcs 46,7% Repairs 47,7% Sewage svcs 60,3% Energy 63,7% Transport svcs 71,2% Source: ECA dashboard, 2023 The second indicator of the “triple weighed” group refers to the proportion of procurement procedures that were negotiated with a company in the absence of a call for bids. Such negotiations often occur when a contracting authority identifies a specific supplier deemed capable to meet the procurement requirements without the need for a formal bidding process. While negotiated procedures could offer flexibility and efficiency in certain circumstances, contracting without open competition may raise concerns regarding transparency, fairness, and the potential for favouritism or collusion. The average values for the period available (20112020) reveal that such tendering procedures tend to be more common for a few member-state, including Bulgaria. Figure 4. Scoreboard indicators 2011-2020: No call for bids (%) 30,0 25,0 20,0 15,0 10,0 5,0 0,0 MS Average ЕU Average Source: author’s calculations based on ECA dashboard, 2023 Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 49 The publication rate measures the value of public procurement advertised on TED as a proportion of national GDP. As seen on Fig.5, Bulgaria has the second highest level after Latvia, despite its GDP is much lower than the leading economies in the EU. The score highlights that Bulgaria is actively engaged in ensuring transparency in the public procurement processes and tries to provide a significant opportunity for businesses and suppliers who seek to participate in Bulgaria's public procurement market. Figure 5. Scoreboard indicators 2011-2020: Publication rate (%) 10,0 9,0 8,0 7,0 6,0 5,0 4,0 3,0 2,0 1,0 0,0 MS Average ЕU Average Source: author’s calculations based on ECA dashboard, 2023 While these three indicators provide a starting point further evaluation of the competitiveness of public procurement in Bulgaria, they alone are insufficient for a comprehensive assessment. However, they offer initial insights into the state's adherence to transparency principles and its pursuit of VfM in taxpayer spending. Despite Bulgaria's public procurement expenditure falls below the EU average as a percentage of GDP, revealing potential for leveraging procurement to stimulate economic growth, the country demonstrates a commitment to transparency and market participation through its high publication rate relative to GDP. Challenges are also evident with respect to the elevated levels of single bidding in specific sectors and negotiated procedures lacking open competition. They suggest areas that require targeted government and institutional attention so as competitiveness and fairness in procurement practices to be enhanced. The data also reveals that the practices in Bulgaria align with broader trends in the EU, emphasizing the need for improvement across all member states – “Improving public procurement can yield big savings: even a 1% efficiency gain could save €20 billion per year” (EC, n.d. a). CONCLUSION The EU procurement regulatory system is designed to enhance transparency, fairness, and competitiveness. The enforced changes in 2016 were meant to make the Single market more open to supplier regardless of their residence, to lower the administrative burden and include other reward criteria along with the lowest offered price. However, in practice there are persisting problems that need to be addressed by the regulators that impede competitiveness and require careful monitoring and analysis. Policymakers and stakeholders must prioritize efforts to address these challenges, leveraging available data and insights to drive reforms that Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 50 promote efficiency, accountability, and value for money. Bulgaria, as part of the EU could strengthen its public procurement framework and deliver better outcomes for its citizens by adopting a proactive approach to address current shortcomings utilizing the data available to establish causal relationships and to develop comprehensive measures. Sponsorship This article was developed as part of the research under the project "State and civil sector: transforming non-market defects and generating public value", funded by UNWE Research activity (NID NI-8/2023). REFERENCES Adewumi-Audu, L. (2023). Value for money in public procurement policy implementation [Doctoral dissertation, University of South Wales]. https://pure.southwales.ac.uk/ws/portalfiles/portal/10718039/LARA_OZIOFU_ADEWUMI_AUDU_PhD _THESIS_2023.pdf Bieńkowska, E. (2017). Strategic public procurement. European Commission. https://www2.aop.bg/wpcontent/uploads/2019/06/strategic-public-procurement-brochure.pdf Bosio, E. & Djankov, S. (2020, February 05). How large is public procurement? WORLD BANK BLOGS. https://blogs.worldbank.org/en/developmenttalk/how-large-public-procurement European Comission. (2014). EUROPEAN SEMESTER THEMATIC FACTSHEET:PUBLIC PROCUREMEN. https://commission.europa.eu/document/download/e3872422-2adc-4802-a40ee0660e622f3d_en?filename=european-semester_thematic-factsheet_public-procurement_en.pdf European Comission. (2017a). Increasing the impact of public investment through efficient and professional procurement. https://wayback.archiveit.org/12090/20211022112123/https:/ec.europa.eu/growth/content/increasing-impact-public-investmentthrough-efficient-and-professional-procurement-0_en European commission. (2017b). COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS: Making Public Procurement work in and for Europe. https://ec.europa.eu/docsroom/documents/25612 European Comission. (n.d. a). Public procurement. Retrieved on March 20, 2024, from https://single-marketeconomy.ec.europa.eu/single-market/public-procurement_en European Comission. (n.d. b). Legal rules and implementation. Retrieved on March 20, 2024, from https://singlemarket-economy.ec.europa.eu/single-market/public-procurement/legal-rules-and-implementation_en European Comission. (n.d. c). Single market Scoreboard: Access to public procurement. Retrieved on March 20, https://single-market-scoreboard.ec.europa.eu/business-framework-conditions/public2024, from procurement_en European Comission. (n.d. d). Treshholds. Retrieved on March 20, 2024, from https://single-marketeconomy.ec.europa.eu/single-market/public-procurement/legal-rules-and-implementation/thresholds_en European court of auditors (ECA). (2023). Public procurement in the EU: Less competition for contracts awarded for works, goods and services in the 10 years up to 2021 (Special report). https://www.eca.europa.eu/ECAPublications/SR-2023-28/SR-2023-28_EN.pdf European court of auditors Dashboard (ECA Dashboard). (2023). ECA dashboard to Special Report 28/2023. https://public.tableau.com/app/profile/eca.public.procurement/viz/eca_dashboard_17002195654680/Story ?publish=yes European Parliament News. (2014). New EU-procurement rules to ensure better quality and value for money. https://www.europarl.europa.eu/news/en/press-room/20140110IPR32386/new-eu-procurement-rules-toensure-better-quality-and-value-for-money Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 51 European Union. (n.d.). Public procurement, tenders and contracts within the European Union. Retrieved March 26, 2024, from https://european-union.europa.eu/live-work-study/public-contracts_en Fazekas, M. (2019). Single bidding and non-competitive tendering. https://ec.europa.eu/regional_policy/sources/work/SingleBiding_2019.pdf European Comission. Jackson, P. (2012). Value for money and international development: Deconstructing myths to promote a more constructive discussion. OECD Development Co-operation Directorate. https://www.oecd.org/dac/effectiveness/49652541.pdf National Statistical Institute (NSI). (n.d.). GDP by Production approach – Total of economy. https://www.nsi.bg/en/content/2206/gdp-production-approach-%E2%80%93-total-economy Public procurement Agency (PPA). (2022). Annual Report 2022 [In Bulgarian]. https://www2.aop.bg/wpcontent/uploads/2023/06/GD_2022.pdf Public Procurements Agency (PPA). (n.d.). Annual Reports. https://www2.aop.bg/en/ppa/annual-reports/ TheGlobalEconomy.com. (n.d.). Fragile state index Country https://www.theglobaleconomy.com/rankings/fragile_state_index/European-union/ Your rankings. Europe. (2024, January 12). Types of public tendering procedures. https://europa.eu/youreurope/business/selling-in-eu/public-contracts/public-tendering-rules/index_en.htm Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 52 Daniela Krasteva Chief assist. Prof., PhD Department of Public administration, Faculty of Management and Administration, UNWE, Sofia, Bulgaria Corresponding author: e-mail: d.krusteva@unwe.bg ORCID: https://orcid.org/0000-00016977-0271 Published First Online: 24.06.2024 Pages: 53 – 73 DOI: https://doi.org/10.37075/JOMS A.2024.1.05 DISCOURSE ON CAPACITY ASPECTS OF HUMAN CAPITAL VITAL AGGREGATES IN CONTEMPORARY BULGARIAN STATE ADMINISTRATION ABSTRACT The discussion of human capital vital aggregates refers to the nature and existence of any administration in terms of a holistic understanding of the human resources that function productively within it. In this case, the focus is on two phases of the management of these resources: staffing and the process of recruitment and reassignment, including employee mobility, with prior shared considerations of the centrality of vitality. The analysis is subordinated to the recognition of the contemporary features and of the generated problems of the functioning of human resources management in the public administration. KEYWORDS: vitality, human capital vital aggregates, competitive recruitment, employee mobility, “active ageing”. JEL: H83, J01, J24 INTRODUCTION The state administration (the administration of the executive power – central and territorial) of the Republic of Bulgaria is part of the public administration and embodies most clearly the main thing in the administrative process (Zhivkova, 1994; Benev & Ivanov, 2002; Velichkov & Benev, 2004; Pavlov & Mihaleva, 2004; Hristov et al., 2007; Arabadzhiiski, 2010; Katsamunska, 2011; Hristov, 2011; Veleva & Krasteva, 2021; Kurtev, 2014). Within its boundaries, as a rule, a complex of administrative services for citizens and other economic and social subjects, products for own consumption in connection with the mechanism of regulation and control of the social reproduction process (support for the construction of the country's regulatory base), as well as the organization of the necessary administrative processes are created. Public administration is a set of bodies engaged in administrative activities, in another aspect – organization of types of activities in public units. In a broad sense, it is a set of structures (processes, organisations and persons) and their inherent functions and roles related to: a) supporting the creation of a regulatory system and, above all, organising its implementation through public organisations; b) creating public services for citizens and legal Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 53 entities, managing public property, collecting and disposing of taxes, etc. (public sector); c) civil protection of public interests (non-profit sector), etc. In segmental terms, it may be the administration of business units (non-public administration), the administration of the legislature, the administration of the executive, the administration of the judiciary, etc. Outside public administration is the public sphere or public space (Tsakova, 2011). It is a territory for free communication in democratic conditions: public communications, discussions, debates between equal subjects, free from bias and subjectivity, exercising public control over power, etc. This paper interprets issues of executive administration, which is the deepest root of the "administrative" tree. It is the object of the study. Vital aggregates (the joining of energetic parts/ mechanisms into a whole) are related to vitality (vitality/animation: strength, energy, expansiveness, synergy, etc.), and its maintenance and activation, which is aimed at achieving permanently accelerated sustainable development. Vitality and energism are interrelated. Vitality is the inevitable state of existence of a biological, social, economic, etc. system, and energeticism expresses the mechanism of the holistic movement of this system, without its presence it would not exist. In another aspect, this mechanism has as its basis the capacity of human-capital vital aggregates. This is the subject of the article. The human capital presence (the presupposition of vitality – animation) expresses the impact of human capital (in the sense of its embodiment in human resources both as a given and as a productive factor), whose involvement in the administrative process is a means of creating its adequate product – the administrative service. This metamorphosis (transformation) has two sides: the first, the existence of a competitive vector (capital objectification into labouractivating components: health, gifts, knowledge, skills, experience and other characteristic qualities – cultural and moral values, all of which infiltrate into competences that are essential requisites of administrative reproduction and growth) and the second, the functional transformation of this presence into a useful public product. These points make it necessary to link the mechanism of human capital aggregates organically to the stages of human resource management. The characterization of its two main steps is the predicate (the main feature) of the article (capacity sides). Its research aim is to make sense of the main contemporary features in the mechanism of human capital vitality (the capacity of animation) in the Bulgarian state administration. What has been stated so far presupposes the solution of two main tasks: firstly, posing the question of the vitality mechanism, which is contextual to the human capital presence and secondly, presenting the real picture of two sides of the capacity of the Bulgarian civil service for the period 2012-2022 (human capital staffing, respectively resources, with the necessary labour requisites and the product potential of recruitment and reappointment), including the recognition of the main problem fields and solutions in this process. The conceptual platform of the article can be defined as follows: human capital penetration into the vital aggregates of contemporary Bulgarian state administration is a growing process whose level and trends need to be carefully monitored and aligned with the needs of social practice. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 54 The sources of information for the study are the research papers available to the author, as well as the Annual Reports on the State of the Administration (ARSA) for the period 20122022 year. 1. The phenomenon of "vitality" in the context of human capital penetration: a conceptual framework Vitality with its constitutive processes of origination, affirmation, development and transformation is an inherent requisite of all matter. In its profound essence it is an initial philosophical category – vitalization is also a constructive element of contemporary philosophy. This is how N. Bogomilova (2006, p.7) begins the introduction of her interesting book: "Vitality and its associated renewal are categories that reflect movement and change in man and nature in terms of their preservation, qualitative diversity and meaningful enrichment. These categories are a particularly important theoretical 'lens' in situations of crisis, turmoil, and change in the life of society and nature. Through them, social, spiritual ruptures and changes can be analysed and detected as destruction and construction, as involution or development, as charged with the impulses of routine and repetition or with the vital energy of growth and qualitative renewal." The most important function of vitality is overcoming enclosure through metabolism, which generates mutuality, synergy, liberation and animation. This process is directly related to enlivenment as the permanent life support of the system. In the aspect of the conception of this article, several statements are fundamental (adaptation to public administration of postulates from N. Bogomilova (2006): • vitality in public administration implies an imperative to renew (an ever-changing world) and enliven (energize) things; • vitality in any administration is built on the anonymous power of the functioning competences of the employees, which is the being of the substance "prosperity" and the "romantic" face of change; • enlivenment passes inevitably through the solution of the problems posed, and more generally, inevitable reformation; • the being of the contradictory (problem world) is the genetic form of the existence of progress in administrative structures as well; • the administrative categories of "power, money and career", if taken as the logo of the employee's behaviour, are implied in his working life; • the vitality of the administration is a manifestation of the vitality of its employees, with the following orientations: the unified energy field and interaction with society; the will and freedom to define and follow their work vector (contextual to the organization's goals); a sense and taste for reality; spontaneity, self-sufficiency and naturalness in the realized behaviour, etc. Given this initial factual basis, human-capital life aggregates (interconnected mechanisms) can be recognized in meaningful terms through the use of a number of criterion indicators that find different manifestation. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 55 First, as verbal nouns (Stoyanov, 1993) these recognition tools symbolize a specific activity (action, movement and result): learn – learn, compete – compete, teach – teach, instruct – instruct, mobilize – mobilize, socialize – socialize, engage – engage, trust – trust, etc. Obviously, we are talking about nouns that are derived from unfinished verbs with the use of the suffix "not" and express strong verbality. From their verbal roots, action nouns can be formed with the suffixes "nija","nie", "tzia", etc. Second, as an accentuated totality of forms of vitality: vitalcreation, vitalorganization, vitalsolidification, vitalreformation, vitaltransformation, etc., which expresses the individual successive steps of vitalisation. Third, in concreteness for administrative life, as formalizing the stages of human resources management that express their cyclical vitality. a) Input/ capacity: recruitment and selection, number of appointees (total and first-time), educational (the role of adult education NGOs should be taken into account (Kurtev, 2016)) and age structure of employees, reappointment, etc. b) Expansion: energizing (training in administration), gaining experience (mentoring, coaching and mentoring), creating safe working conditions, maintaining a climate that encourages activity, etc. c) Internal workforce movement: flexible mobility (producing work enthusiasm), performance appraisal (productive vitality), advancement (professional and career), sanctioning (disciplinary, deprivation of bonuses, deferral of professional advancement, etc.), etc. d) Other aggregates: adaptation, 'active' ageing (remaining in employment beyond the age of retirement or after retirement). e) De-energizing: disruptions (pursuing unreasonable policies, implementing unproductive operational management, omissions due to staff illness, force majeure, etc.) and exiting the organization due to retirement. In addition, the specified aggregate states in functional and local forms, including as input, process and output, kata energizing and deenergizing, etc., are listed in Table 1. Table 1. Disposition of human capital vital aggregates Tools of lifeforms / forms of energization Internal aggregates Entrance Number of employees; educational and age structure and form of employment Direct energization Training, mentoring, coaching, etc. Indirect energization Basically Mobility, estimated performance, professional development, sanctions, working conditions, etc. Additional Adaptation, “active ageing”, etc. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ Exit Accompanying Branding, image, reputation, etc. No. I, 2024 pg. 56 Leavers, retirees, turnover, policy and management gaps, incompetence, force majeure, etc. Tools of lifeforms / forms of energization External aggregates Entrance Indirect energization Direct energization Demographics; health, family, science, culture, education and training, etc. Science, culture, education and training, etc. Exit Basically Additional Accompanying Labor movement: labor market Socioeconomic and psychological theory of adaptation, personnel policy Marketing Communications Ongoing communication Source: author's own construction The above-mentioned initial premises are the basis of human resource management in our public administration. The subject in question and its vital forces holding back its development are considered only in that part which is provided by information from the annual reports on the state of the administration and relates directly to human capital. Obviously, coaching, mentoring, coaching, adaptation, branding, image and reputation are not considered, as they are not informed in the reports in question. The issue of technical provision is an important but rather spatial subject and could be interpreted in a separate analysis. On this basis, the paper attempts to recognize the main in basic human capital aggregates, respectively in their emphasis issues. Two of them are selected: the first, contemporary features of staffing the civil service with human capital carriers and the second, competitive motives in recruitment and reappointment. 2. Input parameters – between current possibilities and expected future: not only positivity In this part of the article, we consider the features of the elements of the encrypted human capital base: the number of new employees hired in a given year and the total actual number of staff in the public administration, employed under the legal relationship: service and employment, educational and age structure of the staff. The main features of the inflow into our civil service are shown in Table 2. 2020 2021 2022 142613 143381 143815 2019 2018 2017 2016 2015 2014 2013 2012 Table 2. Elements of the functioning flow of labour resources in the Bulgarian state administration for the period 2012-2022. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ 142747 141784 139665 132648 137693 140767 144832 Total projected staff accrual 144875 1. Total employment No. I, 2024 pg. 57 2022 131644 91,5% 2021 132335 92,3% 2020 92,4% 131812 2019 131762 92,3% 2018 130005 91,7% 2017 2016 126808 128905 92,3% 86,4% 95,6% 2015 118971 2014 91,9%. 129313 2013 132612 91,6% 133575 2012 Percentage of establishment plan 92,2% Employees actually employed according to reporting data 89959/ 65,8% 87405/ 67,6% 79332/ 66,7% 84638/ 66,7% 85293/ 66,2% 86048/ 66,2% 86681/ 65,8% 87233/ 66,2% 88429/ 66,8% 88592/ 67,1% 42653/ 34,2% 41998/ 32,4% 39639/ 33,3% 42170/ 33,3% 43,612/ 33,8% 43957/ 33,8% 45081/ 34,2% 44579/ 33,8% 43906/ 33,2% 48413/ 32,9% Number of employees / prcentage 42299/ 31,7% Number by Service relationship / Percentage 91276/ 68,3% 2. Employed by legal relationship Source: ARSA 2012, pp.8-9; 2013, pp.6-7; 2014, pp.7-8; 2015, pp.7-8; 2016, pp.8; 2017, pp.8-9; 2018, p.10; 2019, p.10; 2020, p.9; 2021, p.8; 2022, p.8. 10,15. The discrepancy in the total numbers for the education and age structure is explained by the legal assumptions that allow more than one person to be appointed to a single post, and by errors in the information submitted by the administrations reported (for 2016-2022, they are between 559 and 592), as well as by the movement of individual employees - departures, mobility, sickness, etc. The most general "reading" of the table is indicative of the reduction in the projected total staffing level over the period under consideration by 1,060, which is also evident from the overall geometric growth rate of 0.9993. This implies an average annual geometric growth rate of minus 0.07%, and an average annual arithmetic number per 1,000 staff units decreasing ("power generosity") by 7.5 units. The analogous figures for actual staff numbers are as follows: the absolute growth rate over the period under review was 1,931 fewer; the overall geometric growth rate was 0.9986, the annual reduction in staff was at an annual average growth rate of minus 0.14%, and the average reduction per 1,000 was 14.7 fewer ('organisational rawness'). The above-mentioned condition shows that the parallelism in the evolution of the number of staff and the number of employees has been maintained, and that the higher dynamics of the actual number of employees is the result of a natural evolution of their number as a function of the observed loss of staff due to death, resignations, transfers to EU structures, etc. In a hidden form, this is reflected in internal staff movements, manifested mainly as mobility, which is reflected in the 'redeployment' function. Additional features. a) There are two phases in the movement (continuous steady decrease or increase) of the number of real employees: the first, from 2012 to 2015, with an absolute decrease of Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 58 14,604 and an annual geometric average growth rate of minus 2.86%; the second, from 2016 to 2022, with an absolute increase of 4,836 real employees and an annual geometric average growth rate of 0.53%. These moments are related to the austerity regime in the first period, which is a function of the challenges in 2013-2014 - four different governments, strong confrontation between leading political forces and instability in economic growth - lower than expected, relatively low employment and high unemployment, among others. Overcoming the difficulties is also related to the implementation of the Strategy for the Development of Public Administration 20142020 and its accompanying other documents - Strategy for the Development of eGovernment, Decentralisation Strategy, Strategy for Support to the Development of Civil Society Organisations, etc. which marks a new programming period. b) At the same time, it may be a question of "staff hunting": the staffing table (on the assumption that one staff member is assigned to one staff position) was implemented at a minimum relative level of 86.4% (2015) and a maximum of 95.6% (2016). The free staffing buffer created is in the range of 5-14% and allows free manoeuvring with the number of employees by the structural units, which poses a risk of waste of resources, disguised in the shadow of: democratisation of human resources management, liberalisation of staffing disciplines, tolerable errors in the determination of the staffing table, increase in the need for additional administrative services of high quality, etc. c) Employees by type of legal relationship, in the context of creating conditions for human capital presence, are decisively dislocated in the service sector of the civil service between 65-69% of employees are appointed under the service relationship. At the same time, their number absolutely decreased by 2,684 people. The average annual geometric rate of increase in the number of persons employed under this relationship is minus 0.28%. The two stages interpreted above clearly stand out. Conversely, the number of people in employment increased absolutely by 6,144 - their annual average rate of geometric growth was 1.23%, and their relative share increased by 1.2%. The trend of their development is divergent and does not express the outlined two stages. Employees under this employment regime are an important part of the civil service that should be systematically nurtured, including through the transfer of good practices for the functioning of employees under the civil service: strict discipline, order, teamwork, appropriate management style, cultivation and maintenance of progressive organisational values, etc. It is worth sharing, albeit with a bit of an aside, that good practices in public administration should also be brought in from the private sector, respectively, including the organisation of administrative activities. d) Education is a religion of the product functioning of human capital. Educational attendance as a fundamental feature of employees in the civil service for the last 6 years is presented in Table 3 and Figure 1. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 59 Table 3. Distribution of civil service employees by educational attainment 2016 2017 2018 2019 2020 2021 2022 Number and share of employees Number of employed persons with higher education/percentage of all employed persons Number of employees with secondary education/percentage of total employees Number of employees with basic education/ percentage of all employees 73963/ 76744/ 78721/ 83518/ 80,690/ 82,662/ 83399І 58,32% 59,53% 60,38% 63,39% 61,22% 62,44% 63,2% 52428/ 51689 51174/ 47661/ 50443/ 49,170/ 48124/ 41,31% 40,9% 39,25% 36,17% 38,27% 37,16% 36,5% 444/ 472/ 484/ 579/ 672/ 534/ 479/ 0,37% 0,38% 0,37% 0,44% 0,51% 0,40% 0,36% Type of higher education completed Economic Science 34,1% 33% 33,81% 31,9% 21,35% 21,83% 22,3% Technical Sciences 18,5% 15,8% 16,28% 14,81% 9,35% 9,52% 9,9% Law Sciences 9,1% 11% 12,60% 12,69% 7,93% 8,11% 8,6% Pedagogical Sciences 8,5% 7,1% Security and Defence 7,2% 6,5% Social Sciences 8% 5,7% Source: ARSA, 2016, p.10-11; 2017, p.10-11;2018, p.13-14; 2019, p.13-14; 2020, p.14-15; 2021, p.9-12; 2022, p. 15. Structure of the number of employees by type of completed education for 2016 and 2021. Figure 1. Structure of the number of employees by type of completed education for 2016 and 2021 62,4 58,3 Higher education 37,2 41,3 Secondary education 0,4 0,4 Primary education 0 10 20 30 2021 40 50 60 70 80 90 2016 There are several highlights in the information presented. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 60 100 a) A determining factor in the number of employees in the administration of the executive branch of power are employees with a university degree (their absolute average relative share for the period is 61.2%). This share for employees with secondary education was 38.4 per cent, and the remainder for those with primary education was 0.4 per cent. The specificity and responsibility of the administrative activity presupposes the need for high intellectual potential of the employees, which is why it is unacceptable for them to follow the projected general structure of employment in 2030 for the country (Employment Strategy of...): "...structuring the educational level in 2030 as follows: of all employees, the share of those with secondary education should reach 58.3%, higher education – 33.5%, and with primary education and below – 8.2%". The trajectory of the relative share of the educational structure of employment is a justification for such a conclusion. The specificity and high responsibilities of employees in the state administration are the grounds for designing their own trend of structural components of human resources education in the state administration. b) The absolute number of employees with higher education increased by 9,436 in the period under review, with their relative share increasing by 4.9%, respectively, the number and relative share of employees with secondary education decreased by 4,304 and 4.8%. The overall geometric growth rate of the number of employees with higher education is 1.0172, their average annual growth rate is 1.72% and for employees with secondary education is 0.9878 and minus 1.22%. c) Employees with primary education perform (as a rule) service and complementary functions and their absolute number increased by 62 persons, maintaining its relative share for the last years between 0.3-0.5% of all employees. d) In terms of subject matter, while in the initial four years graduates in business, technical and legal sciences predominated (about 60 per cent of employees), in the latter years they have considerably reduced their share (below 40 per cent) at the expense of an increase in employees who graduated in pedagogical and social sciences, security and defence, etc. This is entirely consistent with the diversity in the subject matter, content and nature of the activities carried out. The age structure of the staff is also relevant to human capital. Since such information has not been systematically and consistently collected, the assumption is made that age mirrors experience, and from this assumption the picture of a priori accumulated skills used is revealed vicariously (Table 4 and Fig. 2). Table 4. Age structure of civil servants 2016 2017 2018 2019 2020 2021 2022 Number of employees under 29 years / percentage of total employees 11913/ 10240/ 9400/ 9292/ 8,660/ 7891/ 7750/ 9,4% 7,9% 7,2% 7% 6,6% 6% 5,9% Number of employees in the age category 30-59 / percentage of total employees 106940/ 109283/ 119123/ 111097/ 111442/ 112322/ 111705/ 84% 84,5% 84,4% 84,3% 84,5% 84,9% 84,6% Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 61 Number of employees in the age category 60 and over / percentage of all employees 2016 2017 2018 2019 2020 2021 2022 8388/ 9,793/ 10950/ 11461/ 11771/ 12052/ 12579/ 6,6% 7,6% 8,4% 8,7% 8,9% 9,1% 9,5% Source: ARSA: 2016, p.10-11; 2017, p.10-11; 2018, p.13-14; 2019, p.13-14; 2020, p.14-15; 2021, p.9-12; 2022, p.15. Figure 2. Structure of employees by age in the public administration for the period 2016-2021 Structure of employees by age 0 < 29 10 20 40 50 60 70 80 90 9,4 9,1 84 84,9 30-59 > 60 30 6,6 6 2016 2021 Source: ARSA, 2016, p. 10-11; 2021, p. 9-12. A number of conclusions can be drawn from the data presented. a) A catastrophic situation is observed in terms of the number and relative weight (percentage of all employees) of workers in the age category up to 29 years. They decreased by 4,163 over the period studied, with the largest absolute decrease between 2016 and 2017 being 1,673, between 2017 and 2018 it was 840, between 2020 and 2021 it was 769, and between 2021 and 2022 it was 141. The declining negative contour formed is evident. The relative share of the number of employees in this age group decreases systematically and unconditionally from 9.4% (2016) to 5.9% (2022). The annual geometric average growth rate is minus 5.96%. The overall finding is an alarming aging of our civil service workforce. This is a trend formed in the first decade of the century and radical solutions are being actively sought to overcome it, which are not yet satisfactory. b) The defining building block of human activity in the administration under review is based primarily on employees in the 30-59 age range. Over the period under review, their number increased by 4,765 persons in absolute terms and by only 0.6% in relative terms to reach the level of 84.6% of all employees. Their geometric average annual growth rate is 0.62% Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 62 c) In the 60 years and over category, there is also an overall increase of 4,191 in the number of people in employment, or 2.9% in their relative weight (9.5% overall in 2022). Their geometric average annual growth rate is 6.15%. There is no doubt that retired employees are a useful labour component/potential. They are carriers not so much of new knowledge as of original concrete experience. This has given rise to the inclusion in the lexicon of human resources management of the category of "active ageing", which is embodied in two strands: the first – the "giving back" by the older generation in the administration of their experience to the younger through mentoring, coaching, etc. and the second - remaining in employment beyond the retirement and pensionable age. Several points in this regard are relevant to the design of this publication. a) For the last years, the number of those who have acquired the right to retirement pension under the basic staff schedule in the civil service is about 3-4 thousand people per year (1145 in 2012 - GDSA, p. 26 and 9048 in 2020 - GDSA, p. 26, due to restructuring of the Ministry of Interior and retirement of 5528 employees there), which is about 2- 3% of the actual employees. b) The data show that the absolute and relative level of pension eligibility is increasing, but at the same time the presence of pensioners in administrative life is intensifying (Table 4). Unfortunately, such information has only been collected for the period 20122017; for 2018 under this heading, the annual report is perceived to be devoted exclusively to a forecast of the number and occupational structure of retirees in the following year; in 2019-2022, alongside this forecast, the number of retirees, including employment, service and other). Table 4. Coordinates of the presence of retirees in the work of public administration 2012 2013 2014 2015 2016 2017 Number of retirees and employees who became entitled to a pension in the current and transitional years but continue to work, incl./ Percentage of retired and retired staff actually in employment who became entitled to a pension in the current year and remain in employment 1970/ 1,5% 2774/ 2,1% 3145/ 2,4% 2627/ 2,2% 2852/ 2,2% 6382/ 4,9% Total number of retired and post-retirement appointees, including/ Percentage of staff actually employed 1206/ 0,9% 1289/ 1% 1439/ 1,7% 1673/ 1,4 1728/ 1,4% 5629/ 4,3% Number of persons not retired (entitled to a pension) in the current and previous years but continuing in their job, incl./ Percentage of those actually employed 764/ 0,6% 1485/ 1,1% 1706/ 1,3% 954/ 0,8% 1123/ 0,9% 753/ 0,6% Source: ARSA, 2012, p. 26; 2013, p. 25-26; 2014, p. 26-27; 2015, p. 26, 2016, p. 19, 2017, p.18. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 63 The pension "quota" in human resources for this 6-year period is the basis for several conclusions. • The number of people retiring but remaining in employment ("active ageing") increased by 4,412 souls over the period. Between 1.5% and 4.9% of those actually employed, retired and entitled to a pension in the current and transitional years remained in employment as "active ageing" supporting the administrative processes. The "residual retirement employment factor" is a specific buffer whose relative side is distinguished by two rate coordinates: the first, the overall geometric rate of development of the number of employees retired and entitled to a pension in the current and previous years but still working, is 1.2164, and the analogous annual average geometric rate of growth is 21.6%. What better recognition of human capital presence in the form of work experience than this? • The number of retirements and reemployments in the current year has an overall geometric growth rate of 1.2927, implying an average annual geometric growth rate of 29.27%. This contingent, as a percentage of actual employees, ranges from 0.9% (2012) - 4.3% (2017). • The proportion of non-retirees (those who became eligible for retirement) in the current and previous years, but who continue to serve in their position, is in the range of 0.6%, 2012 and 2017, and 1.3%, 2014; the overall geometric growth rate is 0.9975, respectively an annual average geometric growth rate of minus 0.25. Practice shows that "retaining" staff in post-retirement employment is a productive approach. It is certainly possible to improve the legislation and create regulations for more and more active inclusion of qualified and still capable pensioners in the activities of the public administration. This is also the imperative of the adopted Employment Strategy of the Republic of Bulgaria 2021-2030. It addresses retirement in a multifaceted way as a source of filling the labour shortage: "In order to increase labour supply, it is necessary to activate unemployed persons over 55 years of age and to use the potential of persons of retirement age" (p. 39). Further (p. 30), the following measures are highlighted in this respect: in a broader perspective, activation of the available potential labour force (inactive persons, disabled persons, pensioners, those not working for personal or family reasons, seasonal workers, etc.); support for reconciliation of personal and professional life, flexible employment, part-time employment, maintaining the labour activity of persons of retirement age, etc. These are important steps in the right direction for sustainable development. It is obvious that there are serious bottlenecks in the hidden human capital base that need to be consistently and systematically addressed. Among them, the one of great importance is that of the still unattractiveness of the civil service as a work space for the growth of young professionals. 3. Recruitment and reassignment product potential Recruitment and reappointment are an ongoing process of human resource renewal in the civil service. These two acts occur in parallel and reproduce a number of research difficulties. The Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 64 latter are related to the information used. The annual data presented on the competitions held do not allow comparisons to be made, because this process contains a number of 'steps' which must be carefully monitored and taken into account when making generalisations: a) competitions for appointment are the first aspect of this process; b) competitions completed with appointment are the second; c) competitions completed without appointment (no candidates admitted, completed without ranking, terminated for lack of candidates, etc.) are the third; d) the unrecorded results of competitions. At the same time, the number of appointments and reappointments made through a competition procedure is lower than the actual number, since the legislation allows for the following to be made without competition: appointment to the same administration in a similar post or at the same level; appointment to a newly created administration before the competition; part-time appointment; appointment as head of a public relations unit; transfer to the civil service in another organisation under Article 81a of the Staff Regulations Act; appointment to a shared post under Article 84a of the Staff Regulations Act. All this makes the subject of the analysis with a focus only on the recognition of the most general trends and problems raised. It is predominantly appointments and reappointments that have been made under the Civil Servant Law, i.e. under the service relationship. The total number of appointments and reappointments and their share of the number of staff in the service is shown in Table 5. Table 5. Total number and share of employees with service/appointed and reappointed in the civil service 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total number 10605 10174 10181 11413 10764 10564 13196 13723 9646 10506 11611 Share 11,6% 11,3% 11,6% 11,4% 12,7% 12,4% 15,3% 15,8% 11,1% 11,9% 13,1% Source: ARSA, 2012, p. 16; 2013, p. 14; 2014, p. 16; 2015, p. 16; 2016, p.9; 2017, p.9; 2018, p.11; 2019, p.11; 2020, p.10; 2021, p.13 и 2022, p. 11. The data shows that on average, 11125 employees were appointed/re-appointed in each year of the period, which in relative terms is an average of 12.6% of the average annual number of employees under the civil service. This means that every 8th civil servant in this administration was appointed or re-appointed annually. Such a turnover is indicative of both the active extensive reproduction and the expected intensive qualitative development of the defining personnel of the civil service - those appointed/reappointed by service. The intensive aspect of the quantitative reproduction of the staff in question is definitely carried out on a competitive basis. According to the information gathered, the number of posts recruited through a competitive procedure under the service and employment relationship for the 11-year period under review increases by 2 434 and is set at 5 610 in 2022. The overall arithmetic increase is 176.6%, the growth rate is 76.6% and the overall geometric growth rate is 1.0530 which is equivalent to an average annual growth rate of 5.3%. The following parameters characterise the posts recruited by competitive recruitment: they represent 82% of the total number of posts recruited by competitive recruitment in the civil service; their overall average Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 65 growth rate is 154.6% (54.6% growth rate); the overall geometric growth rate is 1.0404; and the average annual growth rate is 4.04%. A cursory comparison with the overall data also shows an intensive restructuring of staffing levels through competition and by employment. A full picture of the number of posts filled by competition can be obtained from Table 6. Table 6. Posts filled by competition procedure Absolute increase Acceleration 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 0 -1065 56 498 1204 -302 2163 -553 -634 -10 1057 0 1121 442 706 -1506 2465 -2716 -81 624 1067 Source: ARSA, 2012, p. 16-17; 2013, p.14-17; 2014, p.16; 2015, p.16-17; 2016, p.9; 2017, p.9;2018, p.11; 2019, p.11; 2020, p.10; 2021, p.13; 2022 p.11. Some of the data have been recalculated by the author (staff employed through competitive employment for 2017, 2018 and 2019). The discrepancy for some years (2015-2019) is the result of employees hired by competition from a previous year included in the total hires data for the Ministry of Interior, etc. Clearly, the negative levels of absolute growth in 2013, 2017, 2019, 2020 and 2021 are indicative of the weakening effect of competitions as a specific "pass" for entering the civil service or being reassigned to another post (the same or at a higher level in the hierarchy in the current or another administration). It is interesting to note that in 2018 the absolute increment was 2,163, after which a three-year decline began, which was overcome in 2022. The second derivative (differences in increments) of the process relates to absolute acceleration, which is the momentum along which absolute growth moves. It has a positive sign until 2016 and a negative sign in 2017, 2019 and 2020. The positive acceleration (624) for 2021 heralds the halt in the decline of absolute growth, which is confirmed in the following year - an absolute growth of 1067. Recruitment/ re-appointment of permanent staff is also done through competitive recruitment. The highest number of appointees/reappointments under this relationship in 2022 was 1,010 (2.1% of the number of employees under this relationship) and the lowest (87) in 2013 (0.2%). The overall geometric growth rate is 1.1580, i.e. the average annual growth rate is 15.8%. Clearly, radical measures need to be taken in this regard, which will saturate the civil service with more competent personnel. Opportunities should be sought here to create better working conditions and professional growth, increase remuneration, increase commitment and microclimate in functioning teams, etc. The innovative component of appointments (commitment to the future) and hence increased speed of functioning of the civil service is shown in Table 7. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 66 Total arithmetic increment 54,9% Total geometric growth rate 1,0464 Average annual geometric growth rate 4,64% 2022 36,7% 3,2% 4258 2021 43% 3,4% 4522 2020 44,9% 3,3% 4336 2019 2682 19,5% 2% 2018 20,1% 2% 2652 2017 25,8% 2, 1% 22,7% 1,9% 2751 2016 18,8% 1,8% 2449 2015 23,5% 1,8% 2141 2014 22% Percentage of employees actually employed 1,8% 2395 2013 25,9% 2241 Percentage of total appointments and reappointments 2,6% Employees appointed for the first time to the civil service 2749 2012 Table 7. Parameters of employees who are appointed for the first-time in the state administration Source: ARSA, 2012, p.16-17; 2013, p.14-17; 2014, p.16; 2015, p.16-17; 2016, p.9; 2017, p.9;2018, p.11; 2019, p.11; 2020, p.10; 2021, p.13, 2022, p. 11. Some of the data have been recalculated by the author (staff employed through competitive employment for 2017, 2018 and 2019). The discrepancy for some years (2015-2019) is the result of employees hired by competition from a previous year included in the total hires data for the Ministry of Interior, etc. Conclusions: 1) The number of first-time appointees increased from 2,749 in 2012 to 4,258 (2022), i.e. there was an increase of 54.9%. On average, this implies an annual increase of 5% on a 2012 baseline. Averaged geometrically (with a chained baseline) with cumulative growth, this increase is by a factor of 1.0464, which equates to an annual average geometric growth rate of 4.64%. 2) First-time appointees account for a respectable share of the total number of appointees and reappointments. It increased by 10.8% over the selected period, rising from 25.9% to 36.7%. Particular circumstances (the COVID crisis, for example) necessitate an increase for 2020 and 2021 of first-time appointees to 44.9% and 43%. This is a serious extensive upgrade of human potential. Taking into account the fact that, by regulation, mandatory training of these personnel also follows, there are already grounds to argue that recruitment, and reappointment, are serious tracks for human capital presence and saturation of the civil service with productive activity. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 67 3) The number of first-time appointees is a relatively low proportion of the number of actual employees (between 1.8 % and 3.4 %). They are expected to possess the necessary capacity of human capital components: health, knowledge, skills, acquired experience (it is a requirement for recruitment!), specific traits that ensure the multiplication of the intellect of the labour potential of the civil service - human resource experts must be impeccable in their judgments. The correlation coefficient between the total number of recruited and reassigned staff and those who are recruited for the first time recognizes a strong correlation of 87.9%, which is indicative of the existence of a good balance (parallel) between mobile staff movement and filling the created deficit through new recruitment. For the assessment of the capital human presence in the civil service, the main means of filling (appointment and reappointment) of a civil service position are important. This point is directly related to mobility (transferable competence, flexible employment, personal willingness and cooperative attitude, transfer of foreign practices, leadership war for talent inclusion, etc.), which fills an important niche of capital vigour utilization and is a specific key potential of reappointment regulations, which is an exceptional manifestation of knowledge-based economy (Vachkova & Zhivkova, 2009; Beleva, 2012; Vladimirova, 2015; Simova, 2016). Mobility issues are regulated by the Labour Migration and Labour Mobility Act and, specifically for the civil service, by Articles 81a and 81b of the Civil Servant Act. The picture of the main mobilities is presented in Table 8. https://jomsa.science/ 2022 778/ 0,59% 301/ 0,22% 81/ 0,06% 122/ 0,09% 2021 631/ 0,47% 235/ 0,17% 133/ 0,10% 72/ 0,05% 2020 304/ 0,23% 53/ 0,04% 640/ 0,48% 2019 621/ 0,47% 66/ 0,05% 76/ 0,06% 383/ 0,29% 75/ 0,06% ISSN 2815-3030 342/ 0,26% 302/ 0,23% 102/ 0,08% Journal of Management Sciences and Applications 195/ 0,15% 2018 621/ 0,47% 339/ 0,26% 157/ 0,12% 74/ 0,05% 2017 796 / 0,61% 290/ 0,24% 113/ 0,09% 114/ 0,09% 2016 967/ 0,76% 284/ 0,21% "Fast track - Art.82(2) under the conditions of Art.82(4) / relative share of actual employees 259/ 0,2% 57/ 0,04% 2015 1150/ 0,96% 232/ 0,17% 50/ 0,04% 2014 Permanent mobility Article 81a, transfer of civil service to another organisation/ relative share of actual employees 133/ 0,1% 56/ 0,04% Temporary mobility to another administration Article 81b(1) / relative share of actual staff 1255/ 0,97% 1094/ 0,82% Replacement of an employee under Article 15(2) of the Staff Act/ relative share of actual employees 44/ 0,03% 2013 Table 8. Levels and shares of the main mobilities in the Bulgarian civil service for the period 2013-2022. No. I, 2024 pg. 68 2022 2200/ 1,66% 1965/ 1,49% 5789% 4,35% 5159/ 3,9% 1912/ 1,45% 2021 2848/ 2,16% 5594/ 4,24% 2518/ 1,9% 2020 6442/ 4,89% 9310/ 7,12% 1673/ 1,27% 2019 1664/ 1,26% 2018 3893/ 3% 8308/ 6,37% 3262/ 2,50% 2017 2644/ 2,05% 5875/ 4,64% 1917/ 1,48% 2016 3475/ 2,72% 6593/ 5,16% 1598/ 1,26% 2015 4582/ 3,85% 7924/ 5,74% 1739/ 1,46% 2014 3597/ 2,78% Total number/ total relative share 6861/ 4,21% 1425/ 1,10% 2013 4340/ 3,27% 912/ 0,68% Horizontal mobility - Art. 82(1)/ relative share of actual employees 6767/ 4,99% Vertical mobility - Art. 82, para. 3/ relative share of actual employment Source: ARSA, 2013, p. 14-17; 2014, p. 16; 2015, p.16-17; 2016, p.9; 2017, p. 9; 2018, p. 11; 2-19, p. 11; 202021 p. 19; 2021, p.8, 2022, p. 11. The scale of mobility achieved is not particularly impressive. Over the period under review, the number of staff involved in mobility decreased by a total of 1 608 (arithmetic index - 0.76), with the largest decreases in horizontal mobility – 2375, in the replacement of an employee under Article 15(2) of the Staff Act - 316 and in the "fast track" – 52. The largest increase in the number of staff covered by mobility is for vertical mobility (1 000 souls), followed by vertical mobility – 70 and permanent mobility – 69. The overall geometric growth rate is 0.9732 and the average annual growth rate is minus 2.68%. This picture is complemented by the mobility of civil servants observed and reported in the annual reports over the last two years (Table 9). Table 9. Identified mobility of the workforce employed in the public administration for 2021 and 2022. Number of job position changes Proportion of appointees and reappointees 2021 2022 2021 2022 311 317 2,9% 2,7% Horizontal mobility-Article 82(1) reassignment to another post in the same administration 2,200 1965 20,9 16,9% Vertical mobility-Article 82(1) subject to Article 82(1). 3-transformation of an expert post to a higher post 2518 1912 24% 16,5% Fast Track - Art.82, par.2 under the conditions of Art.82, par.4-without having the conditions for minimum rank or professional experience but after a one-year probationary period and having obtained the highest annual performance evaluation 133 81 1,3% 0,7% Appointed by the following ranked Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 69 Number of job position changes Proportion of appointees and reappointees 2021 2022 2021 2022 373 763 3,5% 6,6% Permanent mobility- Article 81a-transfer to civil service in another organisation 235 301 2,2% 2,6% Temporary mobility in another administration Art.81b(1) 72 122 0,7% 1% Replacement without a competition under Article 15(2) of the Law on Staff Regulations 631 778 6% 6,7% Occupation of a civil servant's post under paragraph 36, paragraph 1 of the Law on the Transformation of a post from an employment to a service relationship by a normative act 679 17 6,5% 0,1 Total 7152 6256 68% 53,8% Temporary horizontal mobility in the same administration- Article 82, paragraph 1-temporary reassignment Temporary mobility in another administration Art.81b(1) Source: ARSA, 2021, p.8, 2022, p. 14. It is evident that in 2022 there is a 14.2% decrease in the relative share of the compared mobilities, with an increase in temporary reassignment under Art.81 paragraph 1of Civil Servant Law, permanent mobility in the event of transfer to civil service in another organization (Art. 82a), replacement without competition (Art. 15 paragraph 2), etc. In another aspect, there is retention of the leading post in a higher post by transformation of an expert post into a higher post (vertical mobility under Article 82(3)), reassignment to the same post in the same organisation (horizontal mobility), replacement without competition under Article 15(2), etc. Mobility as thus understood is a belated recognition by the authors of the reports of the need for a separate mobility segment in the reports in order to manage it effectively. Moreover, the mobility information portal is a specific tool for creating transparency in the civil service labour market. The implementation by each organisation of a mobility programme must become a reality. This is all the more urgent as mobility will increasingly become a mandatory key element of career development for managers, who should accumulate and share their high managerial competence. Moreover, in the last two years, the annual reports have monitored the extent to which external mobility is applied in the civil service structure (Table 10). Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 70 Table 10. Percentage of administrations applying the mechanisms of external mobility of the civil service (2020-2022) Territorial administration Central administration Type of administrative structure 2020 2021 2022 Administrative structure established by Decree of the Council of Ministers 55,6% 66,7% 50,0% Administrative structure, established by law 88% 92,3% 92% Administration of a State Commission 100% 75% 75% Administration of the Council of Ministers and Ministries 100% 92,6% 100% State Agency 100% 100% 100% Executive Agency 89,3% 100% 93,5% Administrative structure established by law accountable to the National Assembly 100% 100% 100% Total central administration 90,3% 92,3% 91,4% District Administration 67,9% 67,9% 71,4% Municipal administration 33,3% 35% 32,8% Municipal administrations of a region 60% 60% 65,7% Specialised territorial administration 44,4% 52,1 55,6% Total for territorial administration 40,8% 44% 44,6% Source: ARSA, 2020, p. 19, 2021, p. 17 and 2022, p. 13. Data are rounded to the first decimal place. It is obvious that in the central administration these processes cover from 50% to 100% of its constituent units, while in the territorial administration this share ranges from 33.3% to 71.4%. The lag in the implementation of external mobility in the territorial administration (average coverage of 43.1%, compared with 91.3% for the central administration) is more than evident. Reasons for the difference can be sought in the capacity of the individual administrations, the need to "cover" bottlenecks with interested trained personnel from other organizations, etc. The issue of recruitment is also linked to a number of opportunities to make not so precise/"convenient" changes. Interesting is the assumption under the Petkov Cabinet (The Cabinet of..., 2022) that the Council of Ministers decided to reduce the seniority (work experience) requirements for a number of senior administrative positions. For example, the Secretary General of the Council of Ministers can be appointed with 8 years of work experience instead of 9 as the current legal documents regulating the appointment and reappointment until then prescribe; the Secretary General of a ministry can occupy the position with 7 years of work experience instead of 8 as it was until now, etc. In the same vein is the decision of the Council of Ministers that some of the salary levels of the IT incumbents should exceed their maximum Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 71 statutory level fixed by up to 80%. The idea is to bring them at par with their counterparts in the private sector to ensure that the civil service is saturated with highly qualified personnel of this type. This point would not be subject to obstruction if, by presumption, it did not have a political motive - the domination of the cadres from the environment of the political party "We Continue the Change". CONCLUSION Capacity parameters of human capital presence can be viewed as a function of stationaryposition and organizational factors. In the present analysis, the former is determinately related to the staffing of the civil service with the necessary qualitative resources (tangible and intangible), while the latter are manifested in the life-creating elements of recruitment and reappointment, finding a clear manifestation in mobility, which is, on the other hand, the result of the entrepreneurial decisions of the leadership of the civil service. These processes (as well as the other phases of human resources management) should be subject to annual audit and careful regulation through national and other regulations. 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Politicheski nauki. Parvo izdanie. Sofia: Izdatelski kompleks-UNSS. Vachkova, El. i Zhivkova, N. (2009). Mobilnostta na rabotnata sila kato faktor za formirane na evropeyskia trudov pazar i vliyanieto i varhu upravlenieto i razvitieto na choveshkite resursi. Nalichno::http://meching.com/journal/Archive/2009/67/5_vachkowa_jivkowa_Mobilnost_01.06.pdf Veleva, R., Krasteva, D. (2021). Obuchenieto na sluzhitelite v darzhavnata administratsia v Bulgaria: realno sastoyanie, perspektivi i vazmozhnosti. Biznes posoki, 17(2), 54-60. Izdatelstvo FLAT. ISSN: 1312-6016 (print), ISSN: 2367-9277 (online). Dostapno: https://bjournal-bfu.bg/uploads/pcategory/2_2021_bg.pdf. Velichkov, Iv. i Benev, B. (2004) Teoreticheski osnovi na publichnata administratsia. Blagoevgrad:YuZU. Vladimirova, K. (2015) Transgranichna mobilnost na rabotnata sila v ES:demografska i sotsialno-ikonomicheski izmerenia za Bulgaria. Nalichno: nasselenie_review.org/phocodowu load pap/22015/Pop_2015_2_056_072_17 preview.pdf Zakon za darzhavnia sluzhitel. Obn. DV. br.67 ot 27.07.1999. Posledno izm.DV. br.109 ot 22.12.2020. Zhivkova, E. (1994). Publichna administratsia.Sliven: Izd. kashta ”Zhazhda” Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 73 Kalin Boyanov Chief assist. Prof., PhD Public Administration Department/ Faculty of Management and Administration, University of National and World Economy (ÙNWE), Bulgaria e-mail: kalin.boyanov@unwe.bg ORCID: https://orcid.org/0009-00029837-677X INNOVATIVE APPROACHES IN THE MANAGEMENT OF PUBLIC SERVICES IN THE CONTEXT OF THEIR APPLICATION IN BULGARIA ABSTRACT Published First Online: 24.06.2024 Pages: 74 – 84 DOI: https://doi.org/10.37075/JOMSA.2 024.1.06 The article discusses various modern innovations aimed at improving the efficiency, accessibility, and quality of public services in the context of their application in Bulgaria. It explores the integration of digital technologies, the engagement of citizens in the democratic process, and the adoption of sustainable and environmentally friendly practices. Key trends include increased digitization, the use of smart urban systems, blockchain technology, and sustainable urban mobility solutions. These innovations not only enhance service delivery but also increase public trust and meet the evolving needs of society. KEYWORDS: Digital technologies, Citizen Engagement, Sustainability, Smart Urban systems, Public service innovation JEL: H1, H4, H5 INTRODUCTION Innovations in public service management are crucial to increasing the efficiency and quality of services delivered to citizens. They help introduce new technologies and methods that can significantly optimize processes, reduce costs and increase the accessibility of services. They also support the adaptability of the public sector to the changing needs and expectations of society, thereby improving public confidence and satisfaction with public administration. Include the development and implementation of smart urban systems that facilitate citizen access to information and services. They cover the introduction of digital platforms for civic participation, which strengthens the democratic process and improves transparency. It is essential to emphasize the role of sustainable and environmentally friendly approaches that not only save resources but also protect the environment. Thus, innovation contributes not only to higher efficiency and satisfaction on the part of citizens, but also to the creation of a healthier and sustainable public environment. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 74 At the modern stage, there are several key trends in the field of innovation and public service management. These include increasing digitisation and automation, which aims to improve the accessibility and efficiency of services. There is also a growing emphasis on sustainability and environmentally friendly practices, reflecting global efforts to protect the environment. Another important trend is the engagement of citizens and stakeholders in the decision-making process, which strengthens democratic principles and increases transparency. This paper aims to explore and analyse how modern innovations are transforming the management and delivery of public services. The article presents successful models and strategies that show a sustained improvement in the efficiency, accessibility and quality of public services, as well as discusses the challenges and possible solutions for adapting these innovations, in particular in Bulgaria. INNOVATIVE METHODS FOR THE ORGANIZATION OF PUBLIC SERVICES Public sector innovation can be defined as the introduction of new or improved products, processes or a combination thereof that differ significantly from the unit's previous practices and have been made available to potential users or commissioned by the unit itself. This concept extends beyond simply technological or digital advances, emphasizing the importance of culture, leadership, finance, governance, and people in fostering innovation. Innovation activities are diverse and aim to generate value by focusing on public interests, increasing the efficiency of public services and meeting the basic needs of citizens (OECD, 2019). The potential of innovation is a force that can be unleashed or released to achieve powerful results (Valcheva, 2023). In terms of innovative methods and approaches to public service management, the following can be distinguished: technological innovations, innovations related to ensuring sustainability and those involving the involvement of communities. Technological innovations in smart urban systems The emergence of smart urban systems means a major change in the management of public services, using technologies to increase efficiency, resilience and citizen engagement (Gracias et al, 2023). These systems include data analysis, the Internet of Things, and artificial intelligence to support dynamic urban planning, resource management, and responsive management. The proliferation of such innovations offers a promising approach to address complex urban challenges, such as congestion, energy consumption and public safety. Despite their potential, these innovations face challenges. Initially, the digital divide represents a significant barrier where disparities in technological access and literacy can exacerbate social inequalities. Furthermore, concerns around data protection and cybersecurity necessitate robust frameworks to protect citizens' information. The integration of new technologies into old infrastructure also presents logistical and financial challenges requiring significant investment and strategic planning. The figure below depicts the benefits and costs of deploying smart urban systems. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 75 Figure 1. Benefits and Costs of Smart Cities Source: Gracias et al, 2023 Singapore's Smart Nation initiative is an example of a successful deployment where extensive networks of sensors and data analytics improve public transport, health and environmental monitoring. Also, the integration of the Internet of Things, smart lighting solutions and waste management in Barcelona shows the potential of technologies to improve city life and operational efficiency (Bellini et al, 2022). For Bulgaria, the adoption of technological innovations in public services offers a path to urban regeneration and improved citizen engagement. Initiatives can focus on the development of smart infrastructure projects in cities such as Sofia and Plovdiv, prioritizing areas in public transport efficiency, energy management and citizen-centric services. Collaborative partnerships between government, academia and the private sector have the opportunity to help create a favourable environment for innovation, while policy decisions and investment in digital literacy will ensure inclusive and sustainable progress. The digitalization of public services transforms technological innovations into the basis for more effective and accessible management. An example of a successful application is Estonia, where e-government covers almost all aspects of interaction with the state. Challenges include data protection, the digital divide and the need to continuously upgrade technology infrastructure. In Bulgaria, the potential for digitalization is revealed by improving Internet access and digital literacy, while ensuring strict measures to protect personal data. Use of Blockchain Technology Another innovation that is gaining significant momentum is the use of blockchain technology to increase transparency and security in various sectors, especially in public services. This transformative technology is particularly important in e-government services and the Internet of Things, promising to revolutionize the way data integrity, confidentiality and public trust are maintained. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 76 The adoption of blockchain in e-government services aims to streamline bureaucratic procedures by transitioning from traditional paper-based systems to digital platforms. This transition significantly reduces response time while increasing transparency and comprehensiveness. The intrinsic properties of blockchain, such as immutability and transparency, make it easier to establish trust between participants, a crucial aspect in egovernment applications. These capabilities are a tool to simplify administrative procedures and improve the confidentiality and security of services covering areas such as electronic contracts, e-voting, authentication and data sharing. Despite its potential, the integration of blockchain into e-government services raises privacy concerns, especially when personal data is involved. This requires solutions that comply with legal frameworks while ensuring the integrity and immutability of the data (Lykidis et al., 2021). In the IoT domain, blockchain technology is tackling key security and privacy challenges. As IoT ecosystems expand, blockchain integration offers a solution to protect individual system elements and communication pathways throughout the ecosystem. Blockchain improves security, increases capacity, and facilitates peer-to-peer opportunities. However, integrating blockchain with the IoT creates challenges related to scalability, resource use, and legal issues. Countries, such as Estonia have successfully implemented blockchain in public services, demonstrating the technology's potential to promote transparency and security. However, challenges such as ensuring scalability, complying with laws and bridging the digital divide remain prevalent. For a country such as Bulgaria, the adoption of blockchain technology can significantly improve the provision of public services. Addressing these challenges requires comprehensive strategies, including investing in digital infrastructure, promoting public-private partnerships, and ensuring policies that protect data privacy and security in line with technological advances. Blockchain technology offers a transformative potential for public services, realizing its full benefits requires addressing technical, legal and social challenges. Future research and policy development efforts should focus on creating an enabling environment for the successful integration of blockchain into public services, taking into account the lessons learned from global best practices. Sustainable Urban Mobilities Sustainable urban mobility is a critical area of focus in modern dialogue on environmental sustainability, urban planning and public health. The transition to sustainable urban mobility involves the adoption of electric and autonomous vehicles, along with the development of infrastructure that supports a more sustainable, efficient and inclusive transport ecosystem. One of the main challenges in the transition to sustainable urban mobility is the decarbonisation of transport to meet the 2050 climate targets. This requires a paradigm shift that includes not only physical infrastructure changes, but also a socio-cultural transition to a shared vision of sustainable mobility among citizens and stakeholders. This transition process involves overcoming barriers such as societal and political adoption of new mobility solutions and integrating push and pull strategies to encourage behaviour change towards more sustainable transport choices. Strong local leadership and governance structures are essential to guide Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 77 immediate mobility action with a long-term vision based on global commitments (Corais, F. et al, 2022). Electric and autonomous vehicles are essential to advancing sustainable urban mobility. However, the integration of these technologies into urban transport systems faces obstacles, including technological constraints, infrastructure requirements and the need for a planned transition to their effective integration into urban mobility systems. Consumer resistance due to comfort levels related to car sharing and environmental concerns related to electric vehicle batteries pose additional challenges. Nevertheless, the European Union's target for all newly produced vehicles to emit 0 g CO2 by 2035 highlights the urgent need to switch to electric vehicles as part of a broader strategy to reduce urban CO2 emissions. (Kovacic, M. at al, 2022) By adopting innovations for sustainable urban mobility in Bulgaria, an opportunity is offered to improve urban living conditions, reduce pollution and align with the EU's environmental goals. Initiatives may include encouraging the use of electric vehicles through incentives, developing charging infrastructure, and implementing urban planning that encourages active modes of transport such as cycling and walking. In addition, Bulgaria needs to draw lessons from cities that have successfully integrated sustainable mobility solutions to address the sociotechnical complexities of such a transition. Several cities around the world have successfully integrated sustainable mobility solutions into their urban environments, which can be taken as an example: First of all, it is Copenhagen (Denmark) – often, it is called one of the most sustainable cities in the world. It features a strong cycling culture, extensive bike lanes, and bike rental services that encourage non-motorized transportation. The city aims to become carbon neutral by 2025, largely through sustainable transport solutions. Another successful example is Curitiba, (Brazil) – famous for its innovative bus rapid transit system. It is a pioneer in efficient and sustainable public transport. The city's integrated transport network significantly reduces car use and pollution. Amsterdam, (Netherlands) is another city known for its cycling-friendly infrastructure, which includes over 400 km of bike paths. The city's comprehensive public transport system and commitment to electric vehicles further support its sustainable mobility goals. Oslo (Norway) focuses on reducing car traffic in the city centre, increasing the number of bike lanes and promoting public transport. The city is also investing in electric vehicle infrastructure, including charging stations. Portland, (Oregon, USA) has policies in place to support cycling, walking, and public transport. The city's transport system includes light rail, trams and an extensive bus network. These cities exemplify different approaches to sustainable urban mobility, from developing advanced public transport systems to promoting cycling and walking, each tailored to a unique urban context. They provide valuable case studies for other cities aiming to improve their resilience through improved urban mobility strategies. Sustainable urban mobility requires a holistic approach that takes into account technological innovation, infrastructure development, policy frameworks and behaviour change. By addressing these challenges through informed strategies and governance, cities can move towards a more sustainable, effective and inclusive future of urban mobility. Green energy and urban green spaces: Integrating sustainability into urban planning Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 78 Green energy initiatives focus on reducing carbon emissions and increasing energy efficiency, which are critical to combating climate change. One of the main challenges in this sector is the integration of renewable energy sources such as solar and wind energy into the existing electricity grid, which are not designed for intermittent energy sources. Innovative solutions such as advanced battery storage technologies and smart grids have been developed to improve the reliability and efficiency of renewable energy. For example, Germany has successfully integrated a significant amount of renewable energy into its national grid, supported by policies such as the Energiewende, which aims to phase out nuclear power and promote renewable energy (Gawusu, S. 2024). Urban green spaces, such as parks, gardens, and green roofs, have a crucial role to play in improving the air quality and mental health of residents. However, urban planners often face challenges in terms of land availability and the cost of maintaining these green spaces. Solutions such as vertical gardens and green roofs have been successfully implemented in cities such as Singapore, where the government is integrating green building standards into national building codes to promote urban sustainability (Beatley, 2010). A significant challenge in both sectors is the economic cost associated with the switch to green energy and the development of urban green spaces. Financial incentives, public-private partnerships and international funding are crucial to overcome these barriers. Education and community engagement are also vital to ensuring the sustainability of these initiatives as they promote a culture of environmental responsibility and conservation. For Bulgaria, the implementation of these innovations can be supported through the use of EU environmental funds and within the framework of the Recovery and Resilience Plan. Cities like Sofia can improve their resilience by adopting integrated urban planning strategies that include green roofs and increased green spaces in residential and commercial buildings. The successful implementation of green energy projects, especially in solar and wind energy, can be accelerated by adopting incentive structures similar to those used in Germany. Community involvement in the management of public services Another innovative approach that needs attention is the inclusion of community voices in urban planning and policy-making through digital platforms, which greatly enhances transparency, accountability and public satisfaction. Civic engagement platforms allow communities to voice their concerns, propose solutions, and directly influence policy. According to the literature reviewed by the author, the significant shift towards digital engagement tools that increase the responsiveness of the public sector (Sgueo, G., 2020). These platforms range from online forums and e-petition sites to integrated systems that allow real-time feedback on local projects. The main difficulties include problems with the digital divide, where people with less technological knowledge or those without internet access can be excluded from the participation process. To address this, hybrid models combining online and offline engagement strategies have proven effective, ensuring broader inclusion. Furthermore, data privacy concerns are paramount; robust data protection measures are needed to maintain the trust and safety of users engaged with these platforms. A successful example is Barcelona's Decidim platform, an exemplary model of civic engagement facilitated by technology. This open-source platform allows citizens to propose, discuss, and prioritize projects directly, significantly improving the Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 79 process of public policymaking and budget allocation in the city. (Bokolo, 2023). In Bulgaria, the potential implementation of such platforms could significantly improve local governance. Municipalities such as Sofia can implement platforms similar to the Barcelona model, adapting them to the local context to improve public transport, green spaces and public services. Providing city-wide training sessions and public access points can mitigate the digital divide and encourage active participation. Co-operative models for public service management are also an innovative approach to public service management that is worth paying attention to. There is a growing trend towards decentralized community-led service delivery systems. These models enable the local population to help improve service responsiveness and promote resilience. These include community members who are actively involved in planning, decision making, and service delivery. They can range from healthcare to local infrastructure and education services. Such models are rooted in the principles of shared responsibility, mutual benefit, and community empowerment. A major challenge in cooperative models is ensuring equal participation among all members of the community, avoiding the domination of the few. To address this, structured governance frameworks are essential. Another problem is the sustainability of funding. Community-based funding mechanisms and partnerships with local businesses or government subsidies are opportunities to provide solutions. An example of successful implementation is Mondragon Corporation in Spain, one of the largest cooperatives in the world, which integrates various business and educational services managed and owned by local workers and residents. This model leads to high employment and economic stability in the region (Whyte & Whyte, 2014). In Bulgaria, the adoption of cooperative models can be particularly useful in rural areas, where community ties are strong but access to services is limited. Initiatives can focus on sectors such as agricultural cooperatives that can significantly improve efficiency and local economies. In order to explore, the intersection of community engagement, social innovation and community initiatives, it is crucial to understand the dynamics and impact of these practices in urban and rural environments. Social innovations are strategic implementations designed to meet societal needs more effectively than existing solutions, often harnessing the creative potential in communities to promote sustainable social relationships and improved collaborative practices. Encouraging them is about securing sustainable funding and resources. Solutions to problems include establishing partnerships with local authorities, NGOs and private sectors to establish a diversified funding stream. A significant challenge is to achieve scalability and reproducibility of successful initiatives. Building strong networks and sharing best practices through platforms like Social Innovation Exchange is a way to facilitate the wider implementation of successful models. One notable example is the city of Medellín, Colombia, which is being transformed through social innovation that focuses on community-driven urban planning and development. (Sutter, J. and Romo R. ,2013) Initiatives have been associated with the development of public spaces that promote social cohesion and the use of cable cars to connect marginalized communities living on the steep hills with the city's economic centres. This integration significantly reduces travel time and costs for residents, facilitating easier access to job opportunities, educational institutions, and health services. This approach has an impact in Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 80 curbing crime and improving local economies. These innovations can be particularly influential in Bulgaria in dealing with problems such as rural depopulation and backward economic development. Implementing social innovations that promote local entrepreneurship and local tourism, for example, contributes to the rejuvenation of small towns and villages, ensuring economic viability and enhancing community cohesion. GUIDELINES FOR THE DEVELOPMENT OF INNOVATIVE APPROACHES IN THE MANAGEMENT OF PUBLIC SERVICES Technology Trends Emerging technologies such as artificial intelligence, the Internet of Things, and blockchain are reshaping industries and communities around the world. Each of these technologies is associated with unique challenges and varying degrees of success in its implementation in a relevant context. Artificial intelligence is revolutionizing sectors from healthcare to finance by enabling more efficient data processing, predictive analytics, and customer service through automation and machine learning. However, it does pose risks to ethical considerations, such as privacy issues and algorithmic biases that can perpetuate discrimination. Effective regulation and ongoing research into fair machine learning practices are critical to mitigating these challenges. Estonia's success in using artificial intelligence to streamline public services and improve e-government proves that it makes the public sector more efficient and transparent. IoT, the technology integrates physical objects with sensors and software to collect and exchange data, improving connectivity and automation in everyday objects and industrial machines. But it has security vulnerabilities and massive data management requirements. Robust cybersecurity measures and effective data processing frameworks are key solutions to these problems. Singapore's Smart Nation initiative is proof of successfully turning on the Internet of Things to improve urban life, using sensors and smart devices to manage traffic and effectively monitor environmental conditions. Blockchain, offers a decentralized record-keeping system that is transparent and tamper-proof, useful for applications such as secure transactions and supply chain management. Advances in blockchain technology, such as the development of more energy-efficient consensus algorithms, are addressing these issues. Georgia has successfully implemented blockchain to secure and streamline real estate transactions, increase transparency and reduce fraud. The opportunities for the adoption of these technologies in Bulgaria offer significant potential for improving various sectors, including government services, healthcare and energy management. For example, blockchain can improve transparency and efficiency in the provision of public services, artificial intelligence, favours the improvement of diagnostic capabilities in healthcare, and the Internet of Things optimizes the management of the energy system in cities to create a smarter and more sustainable urban environment. Strategic implementation, guided by in-depth research and sound policy frameworks, will be key to harnessing the full potential of these technologies in Bulgaria and beyond. Sustainable development and climate change management Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 81 Sustainable development aims to meet the needs of the present without compromising the ability of future generations to meet their own needs. Managing climate change requires innovative approaches to mitigate the effects of rising global temperatures, rising sea levels and extreme weather events. The main factor that causes difficulties in managing climate change is the economic cost of the transition to green technologies. Solutions should focus on using renewable energy sources such as wind and solar power and implementing carbon pricing to economically reduce emissions. Another challenge is political resistance, education and public awareness campaigns are crucial to gaining public support for necessary policies. Denmark is a leading example of successful climate change management. The country is committed to achieving carbon neutrality by 2050 and has invested heavily in wind power, which now accounts for a significant part of energy production. This change not only contributes to global efforts to combat climate change, but also stabilizes energy prices and reduces dependence on fossil fuels. Bulgaria should adopt similar strategies by increasing investment in renewable energy resources and increasing energy efficiency in buildings and transport. Developing comprehensive urban planning that integrates green spaces and promotes public transport supports the Sustainable Development Goals (Tsonkov, N., Petrov, K., & Berberova-Valcheva, T., 2022). Expanding community participation and democratization Expanding community involvement requires overcoming the barriers of political and economic inequality that limit access to decision-making processes. Based on discussions in various forums, the author concludes that effective initiatives should focus on the development of participatory budgeting and local councils that involve citizens directly in government decisions. A serious challenge is the digital divide, which can exclude segments of the population from online platforms. Bridging this gap requires investment in digital infrastructure and community education programs to ensure that all citizens have the opportunity to engage. An example is the city of Porto Alegre in Brazil, known for its pioneering participatory budgeting system. Since its inception in the late 1980s, it has allowed residents to directly decide how public money is spent, resulting in fairer public spending and enhanced public trust in government. This model has been reproduced in various forms around the world, demonstrating its adaptability and effectiveness. In Bulgaria, the implementation of these innovations requires encouraging greater community involvement in local governance. For example, by implementing digital platforms in Bulgarian municipalities, citizens are allowed to vote on local projects or participate in forums discussing community issues. Additionally, creating local participatory councils helps integrate diverse community voices into local policy planning and implementation. CONCLUSION In summary, innovative approaches, such as the integration of digital technologies, participatory governance models and sustainable practices, significantly increase the effectiveness, accessibility and quality of public services. Technologies such as artificial intelligence and blockchain demonstrate the potential for service automation and data protection, thereby increasing transparency and trust among citizens. The public service Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 82 landscape is constantly evolving due to technological advances, changing demographic needs and economic fluctuations. Continuous innovation and adaptation to new methodologies are therefore imperative. Organizations that embrace flexibility and are open to experimentation can more effectively respond to unforeseen challenges and opportunities. For example, the use of smart city technology in urban management allows cities like Amsterdam and Singapore to become more responsive to the needs of their residents. These cities are continually adapting their strategies based on real-time data and feedback from citizens, resulting in improved urban living conditions and resource management. Innovation is not only about adopting new technologies, but also about transforming organizational cultures and attitudes to be more proactive and oriented towards continuous improvement. The ability to innovate and adapt determines the success of a public organisation in fulfilling its mandate in an effective and fair manner. From this perspective, education programs in public administration should include training in emerging technologies and leadership in innovation. This ensures that future leaders in the public sector are equipped to effectively implement and manage innovative solutions. Public service management must continually evolve through innovation and adaptation to effectively meet the challenges of the 21st century. This will not only improve service delivery, but also ensure that public administrations remain relevant, resilient and responsive to the needs of the public. Sponsorship This article was developed as part of the research under the project "State and civil sector: transforming non-market defects and generating public value", funded by UNWE Research activity (NID NI-8/2023). REFERENCES Beatley, T. (2010). Green cities: Urban Growth and Environment, Book, published by Island Press Washington DC. Bellini, P., Nesi, P., Pantaleo, G. (2022). IoT-Enabled Smart Cities: A Review of Concepts, Frameworks and Key Technologies, Appl. Sci. 2022, 12(3), 1607 Bokolo, A. (2023). The Role of Community Engagement in Urban Innovation Towards the Co-Creation of Smart Sustainable Cities, Journal of the Knowledge Economy Corais, F., Bandiera, M., Silva, C., Braganca, L. (2022). Between the Unstoppable and the Feasible: The Lucid Pragmatism of Transition Processes for Sustainable Urban Mobility: A Literature Review, Future Transp. 2022, 2(1), 86-114 Gawusu, S. (2024). Impact of Renewable Energy Integration on Commodity Markets, SSRN Electronic Journal Gracias J.S., G.S. Parnell, E. Specking, E. A. Pohl, R. Buhanan (2023). Smart Cities—A Structured Literature Review, Smart Cities 2023, 6(4), 1719-1743 Kovacic, M., M. Mutavzidja, K. Buntak (2022). New Paradigm of Sustainable Urban Mobility: Electric and Autonomous Vehicles—A Review and Bibliometric Analysis Sustainability, 14(15), 9525 Lykidis, I., G. Drosatos, K. Rantos (2021). The Use of Blockchain Technology in e-Government Services, The_Use_of_Blockchain_Technology_in_e-Government_S.pdf OECD (2019). Enhancing innovation capacity in city government, ilibrary.org/sites/6593ec90-en/index.html?itemId=/content/component/6593ec90-en Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 83 https://www.oecd- Sgueo, G. (2020). Digital EPRS_BRI2020646161_EN.pdf democracy – Is the future of civic engagement online? Sutter J. and Rafael Romo (2013). Medellín's Transformation: From Murder Capital to Model CityMedellín's Transformation: From Murder Capital to Model City, https://www.cnn.com/2013/10/10/world/americas/medellin-transformation/index.html Tsonkov, N., Petrov, K., & Berberova-Valcheva, T. (2022). Adoption of Information Technologies for Black Sea Region Municipalities' Smart Development. International Journal on Information Technologies and Security, 14(1), 87-96 Valcheva, K. (2023). Unleashing the power of innovation: the transformative role of smes. Journal of Management Sciences and Applications, 2(1),162–168. Retrieved from https://jomsa.science/index.php/jomsa/article/view/31 Whyte, W. F. & Whyte, K. K. (2014). Making Mondragon: The growth and dynamics of the worker cooperative complex: E-book Second Edition, https://www.researchgate.net/publication/329735848_Making_Mondragon_The_growth_and_dynamics_of_the_ worker_cooperative_complex_Second_Edition Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 84 Tsvetelina BerberovaValcheva Chief Assistant, PhD Regional Development Department, Faculty of Management and Administration, UNWE, Sofia, Bulgaria Corresponding author: e-mail: tzberberova@unwe.bg ORCID: https://orcid.org/00000002-5843-8799 ANALYSIS OF ELECTRONIC ADMINISTRATIVE SERVICES PROVIDED IN THE ADMINISTRATIVETERRITORIAL UNITS OF BULGARIA ABSTRACT Published First Online: 24.06.2024 Electronic administrative services are an effective tool for the modernisation of local self-government. The provided administrative services contribute to facilitating communication between citizens, businesses, and administration, Pages: 85 – 97 as well as within the administration itself. This article aims to reveal the average provision of electronic administrative services at the local level by DOI: examining the average data for each district and to reveal the differences in the provision of electronic administrative services. For this purpose, statistical data https://doi.org/10.37075/JOMSA.2 on the population who are respondents to the services are used, and the 024.1.07 electronic administrative services provided in Bulgaria largely meet the reliability standards. The arguments by which citizens justify the fact that they do not use electronic administrative services are related to public distrust of these services and state institutions in general, preference for personal contact with employees in the administration, concerns about insufficient information security, lack of computer skills, and personal electronic devices that allow the services to be used. KEYWORDS: municipalities, electronic administrative services, demographic situation JEL: H1, H7, J1, R5 INTRODUCTION Electronic administrative services allow citizens and businesses to access administrative services at any time and from any place, greatly facilitating the process of interaction, which is of particular importance for people who live in remote areas or have limited mobility. Our country is characterised by large and large differences in the number of population by municipalities, the population density by municipalities varies from 1.68 people per sq. m. km for the municipality of Treklyano to 3,135.75 people per sq. m. km in the municipality of Plovdiv, according to the data from the last census in 2021 (NSI, 2023). Demographic situation in the country in 2023 The population is characterised by an ongoing process of population decline and ageing, with regional variations in terms of age. The demographic characteristics of the population help to identify the population's needs for the appropriate services for them. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 85 According to the latest data from 2023, the oldest population ranges from 19.6% for the district of Sofia-capital to 31.5% for the district of Vidin. The concentration of the working population is in the big cities. That is why electronic administrative services are so important for citizens to have equal access to the necessary services, to contribute to the social inclusion of vulnerable groups, such as the elderly or those living in remote areas. According to the latest data published by the NSI, the relative share of households with Internet access over the past five years has increased significantly from 72.1% in 2018 to 88.5% in 2023, with nearly 80% of the country's population regularly using the Internet (every day or at least once a week) (NSI, 2023). Only 29.7% of the country's population in 2023 using the Internet to interact with administrative authorities and public institutions, with only 4.4% for submitting a request for the issuance of official documents and certificates. In 2023, 35.5% of people have basic or above basic digital skills, and the data vary both in territorial aspect and in education and especially in age. Therefore, it is necessary to consider the territorial variations of the provided electronic administrative services, as well as the territorial distribution of the population with its characteristics, because it is determined, both from its natural movement and external migration, as well as from internal migration and changes in the administrativeterritorial structure of the country. 1. Administrative-territorial division The Republic of Bulgaria has a division that can be considered administrative, territorial, and statistical. In statistics, the territory of our country is considered at 3 levels, which are also in accordance with the requirements of the Common Classification of Territorial Units for Statistical Purposes (NUTS), applied in the European Union. The first two levels: NUTS 1 statistical zones and NUTS 2 - statistical regions, do not represent administrative-territorial units, while the third level NUTS 3 - districts, are administrative-territorial units and cover the territory of the 28 districts of the same name. Administratively, our country is divided into districts and municipalities, with each district, municipality and town hall having its own territory, borders, population, name and administrative centre, and the region - territory, borders, population and name. According to NSI data, as of December 31, 2023, there are 5,256 settlements on the territory of the Republic of Bulgaria (including 257 towns and 4,999 villages), 166 settlements (including 8 of national importance and 158 of local importance), which are united in 265 municipalities, and they, in turn, in 28 districts. The districts include municipalities, as only Sofia District includes only one municipality Sofia, and Sofia Region as many as 22 municipalities, and there are some of the smallest municipalities in terms of territory, such as Chelopech, Chavdar, and Dolna Banya. Viewed from a demographic point of view, they can be grouped as you can see in Figure 1: Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 86 Figure 1. Distribution of the number of municipalities according to the population size and the total population living in them, 2023 3000000 140 2631816 2500000 121 100 2000000 1500000 80 81 1332922 1339821 60 1000000 500000 120 40 849475 43 291447 12 8 50000 - 99999 over 100000 0 20 0 up to 5999 6000 - 19999 20000 - 49999 The number of municipalities Number of population Source: NSI, Administrative-Territorial and Territorial Divisions of the Republic of Bulgaria as of 31.12.2023, 2024 The largest population lives in the eight municipalities with a population of more than 100,000 people, which is 40.8% of the country's population. The largest in terms of population is the Sofia Municipality with 1,286,965 people, followed by the municipalities of Plovdiv with 325,485 people and Varna with 323,386 people.4.5% of the country's population. Among all municipalities with the smallest population is Treklyano, 470 people. For the last year, the population living in cities increased and reached 73.5%. Municipalities such as Sofia Municipality, Plovdiv Municipality, and Varna are divided administratively-territorially into regions: Sofia Municipality - 24 districts, Sofia Municipality - 24 districts. Plovdiv - 6 districts, Plovdiv. Varna - in 5 districts. According to the Law on the Administrative-Territorial Structure of the Republic of Bulgaria, regions are created in the capital and in cities with a population of more than 300,000 people, and such a possibility is provided for cities with a population of more than 100,000 people, and this is possible after a decision of the municipal council and the conditions specified in Art. 12 of the same Act: ➢ presence of a population of more than 25 000 people in the area; ➢ possibility for zoning of the territory of the respective cities according to their current general urban development plans and in accordance with permanent naturalgeographical or infrastructural dividers; ➢ availability of infrastructure of regional importance to meet administrative, social and sanitary-hygienic needs. According to the Constitution of the Republic of Bulgaria, the municipality is the main administrative-territorial unit in which local self-government is carried out. Constituent administrative-territorial units in municipalities are mayoralties and districts. The body responsible for local self-government in the municipality is the municipal council, which is elected by the population, and the executive body in the municipality is the mayor. The actions of the mayor in which he carries out his activities are guided by the law, the acts of the municipal council and the decisions of the population. Local self-government is expressed in the right and real opportunity of citizens and their elected bodies to independently decide on all issues of local importance, which the law has assigned to them in their competence in the field of: Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 87 • municipal property, municipal enterprises, municipal finances, taxes and fees, municipal administration; • the development and development of the territory of the municipality and the settlements in it; • education, healthcare, culture, social services; • public works and communal activities; • environmental protection and rational use of natural resources; • Maintenance and preservation of cultural, historical, and architectural monuments; • the development of sports, recreation, and tourism; • disaster protection. Citizens participate in the management of the municipality through their elected bodies, both through a referendum and a general assembly of the population. A local referendum and a general assembly of the population shall be convened and held under conditions and in accordance with the procedure established by law. Civic participation is part of the democratic values of society, and its active participation would contribute to a better understanding of the real needs and challenges of the community. With the introduction of electronic administrative services, this opportunity increases, and the satisfaction of the population increases, trust in the authorities is strengthened, and governance becomes more effective and faster for citizens. Automation of processes saves time and costs and increases the quality of the services offered to both the population and the business, and the administration itself. 2. E-Government The improvement of administrative services started with the adoption in 1999 of the Law on Administrative Services for Individuals and Legal Entities, and the start of the process of establishing e-government in Bulgaria with the adoption of the Electronic Document and Electronic Signature Act in 2001 and Decision of the Council of Ministers No. 866 of 28. 11. 2002 and the adopted Strategy for e-Government. The process of transforming traditional paper documents into digital format directly corresponds to the Electronic Communications Act and the Electronic Government Act (EGA) adopted in 2007. Within the meaning of the e-Government Act, "electronic" is the management when the work of the administrative bodies is carried out through electronic documents, as well as their exchange, i.e. the provision of administrative services occurs electronically, as they are requested and/or provided remotely through the use of electronic means. In general, it aims to modernise and optimise the work of the public sector through the integration of information and communication technologies (ICT), because e-Government serves as the main platform for the digital transformation of public institutions, aimed at improving the quality of administrative services, streamlining internal processes, and providing access to electronic resources. According to authors such as Alan Brown, Jerry Fishenden, and Mark Thompson, digital transformation requires redesign and reengineering at every level – people, process, technology, and management (Brown, Fishenden, & Thompson, 2014). E-Government is related to the provision of electronic administrative services. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 88 According to a study by Nedelcheva and Boneva (Nedelcheva & Boneva, 2023), terms such as electronic services and digital services are unambiguous; even digital services are gaining more popularity due to the introduction of the expression "digital transformation", which in turn is used both for business services and for those provided by the public sector. The main legal strategic documents use electronic administrative services, as these are those services that are provided to citizens and organisations by administrative bodies, as these are those services that are provided by persons entrusted with the performance of public functions, as well as public services that can be requested and/or provided remotely through the use of electronic means. The bodies providing these services are administrative bodies or these are the persons performing public functions, and the organisations providing public services are obliged to provide all services within their competence and by electronic means, unless the law provides for a special form for the performance of individual actions or the issuance of relevant acts. The Ministry of eGovernment is the administrative body that coordinates the activities for the implementation of a unified state policy in the field of electronic government and, accordingly, electronic services, as part of this activity. The Single Portal for Access to Electronic Administrative Services (SPAEAS, eGov.bg) is a single point of access to electronic administrative services. According to the regulated relations, the site "eGov.bg" is defined as a single-entry point for electronic access to services, information and systems provided by administrative bodies providing administrative services, persons performing public functions, and organisations providing public services. Electronic administrative services aim to create a more efficient, transparent, and citizen and business-orientated environment that meets modern requirements, and in Figure 2 it is possible to track the number of newly introduced administrative services. Figure 2. Number of new electronic services developed according to the Unified Model 500 450 400 350 300 250 200 150 100 50 0 470 272 183 83 55 16 2019 2020 2021 2022 2023 2024 Source: Unified model for requesting, paying and providing electronic services, https://unifiedmodel.egov.bg/wps/portal/unified-model/unified-model/statistics/statistics/ As can be seen in Figure 2, the largest number of services at the central and local level was created in 2021 and 2022, which had to respond to the new situation caused by the emergence of COVID-19, which required the closure of many institutions that serve the public interest. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 89 The number of electronic administrative services provided by municipal administrations is 187. There are 3 services provided by each administration. According to European Union surveys, Bulgaria is in one of the last places in the indicator Digital public services for citizens of DESI 2023 (European Commission, 2024). The development of e-services is in line with the priorities set out in the Updated Strategy for the Development of E-Government in the Republic of Bulgaria 2019-2025. According to the Strategy for the Development of e-Government in the Republic of Bulgaria 2019-2025, e-Government is a means both for a comprehensive increase in the efficiency of the processes in the administration and for facilitating the interaction between the administration, citizens and business, and with a coordinated, standardised and expedient implementation of eGovernment, valuable resources are freed up, time, people and finances" (Council of Ministers, 2021). The provision of electronic services makes the process more efficient, transparent and accessible. The following figure shows the number of electronic services requested. Figure 3. Requested electronic administrative services through the Unified Model 100000 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 91591 35020 35090 38385 2020 2021 2022 2500 2019 2023 Source: Unified model for requesting, paying and providing electronic services, https://unifiedmodel.egov.bg/wps/portal/unified-model/unified-model/statistics/statistics/ The figure shows a noticeable increase in the consumption of electronic services for the last year, with consumption increasing more than 138% compared to the previous year and compared to 2019. 36 times, i.e., administrative services are increasingly being used in an electronic environment. This, in turn, makes administrative processes more transparent and traceable and restores the trust of citizens and businesses. The EU and the European Commission (EC) are actively working to modernise public administrations, achieve interoperability, and facilitate interaction between administrations, citizens, and businesses. In addition to the many regulations, strategies, and initiatives, it creates a platform to make it easier for citizens and businesses to exercise their rights and fulfil their obligations within the internal market by providing a single-entry point for access to quality information, online administrative procedures, and assistance and problem-solving services. The European Commission, through Digital Europe, has focused on the need to apply emerging Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 90 trends, including artificial intelligence and blockchain technologies, while ensuring a high level of data protection, digital rights, and ethical standards. Widespread use of mobile devices and the Internet, however, the development of technology creates another conscious need, and this is new competencies related to the development of new technologies and their application. In order for e-government to be successful, knowledge and skills are needed, which can be summarised as digital competencies. Digital competence is a combination of knowledge, skills, and attitudes regarding the use of technology to perform tasks, solve problems, communicate, manage information, collaborate, and create and share content effectively, relevantly, securely, critically, creatively, independently, and ethically (Ignatova, 2024). Digital skills and digital competence correspond directly. The European Commission considers that digital competence is part of the eight key core competencies for lifelong learning. It is creating EPALE - Electronic Platform for Adult Learning in Europe, so that digital connectivity between Learning and Learning can work towards social inclusion. Digital skills refer to the ability to use electronic services effectively, and in Bulgaria they are not at a high level. The highest relative share is among young people between the ages of 16 and 24 (53.2%), and the lowest in the age group 65 - 74 years - 7.3%. More than half of those living in the South-West region (51.5%) have basic or above basic digital skills. Skills, while in the South-Central region their relative share is 22.5% (NSI, 2023). The rationalisation of the processes, their continuous development, and improvement depend not only on the population, but also on the administrative readiness of the employees in the administrations. The Bulgarian administration employees are the conduits of change. According to authors such as Nikolov, Stefanov, and Georgoeva, they would support any change that has been proven to improve the quality of administrative services or the effectiveness of state regulations and policies, simply because the employees themselves want to work better and strive to achieve better results (Dr. Nikolay Nikolov, Sava Stefanov, Gergana Georgieva, 2023, p. 39). According to NSI data for March 2024, nearly 1/3 of the persons employed under an employment contract in the administration of the executive power are in municipal administrations (NSI, 2024). What distinguishes municipalities where local self-government is carried out from other structures of executive power is that these employees manage the processes. According to assessment studies, the administrative capacity of municipal administrations for 2023 is 2.9086 compared to 2.8441 for 2022, which means that these administrative structures are gradually regaining their top positions in the ranking (Borisov & Gospodinov, 2024), which indicates excellent administrative capacity. These results show that people working at the local level provide quality services, provide access to information, adequate and timely responses to external challenges, inform socioeconomic partners and users of public services about the strategic documents (strategies, plans, and programmes) that determine municipal policy, as well as regulation of internal work processes and employee responsibilities. In the survey, municipalities do not show districts with unsatisfactory administrative capacity, and the lowest ratings indicating satisfactory capacity are related to the lack of self-assessment systems, ignorance of the opportunities and benefits of artificial intelligence for the administration, lack of planning for staff development, and the failure to apply rules and methodologies for monitoring and evaluation of public policies, although such exist, including those developed under European projects. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 91 According to the Single Portal for Access to Electronic Administrative Services, the number of developed services is 187, which are provided by Municipal Administrations, out of a total of 2118 services in the portal. There are 3 services that are provided by each administration, which are: issuance of a certificate of social security income (UP 2); issuance of a certificate of length of service (UP 3); Providing access to public information. Based on an author's study conducted in May-June 2024 and analysing the data presented on the Single Portal for Access to Electronic Administrative Services, how many services each of the municipal administrations provides. Administrative e-Services are divided into categories as follows: o Administrative services "Green System" o Administrative Services "Construction Control" o Administrative Services "Cadaster" o Administrative Services "Local Taxes and Fees" o Administrative services "Advertising" o Administrative Services "Agriculture and Ecology" o Administrative Services "Trade, Tourism, Transport" o Administrative services for civil registration and draughting of deeds o Administrative and technical services "Municipal property" o Administrative and technical services "Spatial Planning" o Administrative Services "Social Activities" o Other administrative services o About Notaries o Elections 2023 o Schools, kindergartens The survey revealed an uneven provision of the number of services, as the municipality that provides the most services is Bregovo and is located in the district of Vidin, and the population is 3617 people and falls among the poorly populated municipalities, as 10 settlements fall within the municipality. The municipality that applies the least services is Harmanli, it offers only 50 electronic administrative services and again falls into the category of municipalities with a population of up to 49999 people. The following figure shows the average values of the services provided by each municipality, aggregated at the administrative area level (NUTS 3). Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 92 1000000 800000 600000 400000 200000 0 Еlectronic administrative services 160 140 120 100 80 60 40 20 0 Administrative е-services 1200000 Vidin Vratsa Lovech Montana Pleven Veliko Tarnovo Gabrovo Razgrad Ruse Silistra Varna Dobrich Targovishte Shumen Burgas Sliven Stara Zagora Yambol Blagoevgrad Kyustendil Pernik Sofia Sofia (stolitsa) Kardzhali Pazardzhik Plovdiv Smolyan Haskovo Аverage annual population 1400000 141 126 127 130 143 149 114 134 145 136 128 131 143 129 130 122 142 136 123 135 126 131 98 127 140 121 139 131 Figure 4. Distribution of the average number of electronic administrative services and the average annual population (NUST3, Bulgaria, 2023) Аverage annual population Source: Author's calculation based on data from the Single Portal for Access to Electronic Administrative Services and NSI, 2024 The data in Figure 4 clearly show that the district with the largest population is Sofia City, where we have only one municipality in Sofia. However, Sofia Municipality offers the least number of services, 98. The district that offers the best average service provision is Veliko Tarnovo, where the average number of services of all municipalities in the district is 149. Veliko Tarnovo is the district with the most depopulated settlements - 67. In the district, the settlements with the smallest population support a larger range of electronic services - Suhindol with a population of 1969 people offers 169 services, Strazhitsa with 9796 people - 174, while the municipality of Svishtov, which has a population of 26236 people, has only 122 electronic administrative services, and Gorna Oryahovitsa with a population of 36877 people has 116 services. It is evident from the figure that the districts with the highest average annual population offer at least an average number of electronic services per municipality. In addition to the Sofia city district, the data also show low average values for the Plovdiv and Varna districts, where the average number of services provided by the municipalities is 121 for the Plovdiv region and 128 services for the Varna district. We have one value for the services offered in the Gabrovo region. It consists of only four municipalities and, like Veliko Tarnovo, it is the district with many depopulated settlements 67 in number. Sliven districts also consist of only four municipalities and offer an average of 122 electronic administrative services. The district is characterised by a high birth rate and negative natural growth is mainly due to negative demographic trends in the villages and the highest relative share of the self-identified Roma ethnic group of the population, 15.3%. Unfortunately, according to the NSI data from the 2021 census, the Roma ethnic group has the highest share of uneducated persons, 19.95 of all Roma and 11.8% of the self-identified Roma ethnic group aged 9 and older are illiterate (NSI, 2022). Blagoevgrad also provided a low average number of electronic administrative services 123, although it does not have the same ethnocultural characteristics. Municipalities such as Bansko, Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 93 Razlog, Simitli, Kresna, and Blagoevgrad provide well above the average value of services, but due to municipalities such as Petrich, Strumyani, Satovcha, and Sandanski, the average result falls, as they provide less than 100 electronic administrative services. 50 30 20 10 0 Еlectronic administrative services Median age of population 52,6 48,5 50,3 50,6 50,3 49,6 51,8 49,3 49,7 51,1 44,9 50,2 49,2 48,7 46,1 44,6 47,4 49 46,2 50,9 48,8 47,3 42,8 50,5 48,2 45,6 52,3 48,6 60 40 141 126 127 130 143 149 114 134 145 136 128 131 143 129 130 122 142 136 123 135 126 131 98 127 140 121 139 131 160 140 120 100 80 60 40 20 0 Vidin Vratsa Lovech Montana Pleven Veliko Tarnovo Gabrovo Razgrad Ruse Silistra Varna Dobrich Targovishte Shumen Burgas Sliven Stara Zagora Yambol Blagoevgrad Kyustendil Pernik Sofia Sofia (stolitsa) Kardzhali Pazardzhik Plovdiv Smolyan Haskovo Average number of provided administrative e-services Figure 5. Distribution of the average number of administrative electronic services and the average age of the population (NUST3, Bulgaria, 2023) Average age of the population Source: Authors' calculation based on data from the Single Portal for Access to Electronic Administrative Services and Eurostat (demo_r_pjanind3), 2024 Looking at the data for 2023 on the average age and average performance of e-services, it is not open for visibility, since not in every of the districts with a high average age there are also high values of the provided administrative e-services. The district with the highest average age is Vidin, and the average coverage of administrative e-services is 141. In the Vidin region, there are no municipalities offering less than 115 services, and here is the municipality with the most such, Bryagovo, with 180. The next district with a high average age is Smolyan, but it also has a very good average provision of electronic services of 139. There are two municipalities in the district that provide less than 100 administrative e-services, these are Borino and Nedelino, and the municipalities of Banite, Devin, Dospat, Madan, Smolyan, and Chepelare provide above the average for the district. Gabrovo District ranks third in terms of average age, but last in average terms in terms of services provided. An interesting fact is that districts with a low average age also provide the smallest average number of administrative e-services. These are the Sofia city districts, Plovdiv, Sliven, and Varna, and for the last three districts the average number of services varies between 121-128. Despite the data that young people are higher in digital literacy, no more services are provided for their discussion. Obviously, we have to conclude that it is believed that, based on the lower average age of the population of these districts, it is believed that they are more mobile and will consume the services on the ground. As a conclusion of the study, we can conclude that on the territory of the districts with the largest population and the lowest average age, the average number of services offered by municipalities is low. Most services are provided by general ones on the territory of districts with a high average age, where only the district of Gabrovo is an exception, because it has a high average age and the lowest average supply of electronic administrative services of all Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 94 administrative districts. There is no direct correlation between the size of the population and the number of services provided in the general survey. The study does not pretend to be exhaustive and will be the result of further scientific developments. That is why I would agree with Bogdanova that digital transformation takes place as an evolutionary process, in which at the beginning there is a one-way electronic participation (from the administration to the citizens) (Bogdanova, 2023, p. 82). Transparency and accountability are principles of utmost importance in the overall activity of public administration, and they would be best maintained through electronic government and active interaction between citizens, businesses, and administration. And, as Craciun and other authors say, the effectiveness of e-government is directly dependent on: 1) the availability of qualified human capital engaged in digital services; 2) the digital skills of users of electronic services; 3) the integration of digital technologies; 4) the use of open data in public administration (Crăciun, Țăran, Noja, Pirtea, & Răcătăian, 2023). To create a more efficient and sustainable community that wants to generate growth and development, the integration of innovations in municipal management is a necessity, not an option. CONCLUSION Bulgaria is lagging behind the average European levels of the use of digital skills and e-public services, but over the years we have made progress that will undoubtedly improve egovernment in Bulgaria. Sustainable transformation in all areas of public life is due to the policies, strategies, standards, and methodology adopted to manage programmes and projects, also supported by the EU. This process will undoubtedly lead to an increase in citizens' confidence in the use and integration of electronic administrative services, which can significantly increase the quality of local self-government. The uneven provision of services leading to different average results is typical not only for Bulgaria, but also for all countries, even the most innovative ones. Municipalities are the most direct contact with citizens and companies, and their perception of the processes and progress of digital transformation as a communication channel depends on them. The pandemic has taught us valuable lessons and has provided a boost to the development of electronic government. Accelerating the provision of electronic administrative services and the implementation of established European instruments to support administrative capacity will support the modernisation of administrations in the executive branch and will bring added value. REFERENCES Borisov, B., & Gospodinov. (2024). INDEX OF THE ADMINISTRATIVE CAPACITY OF THE STATE ADMINISTRATION IN THE REPUBLIC OF BULGARIA FOR 2023. Svishtov: Academic publishing house Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 95 "Tsenov" town of Svishtov. https://www.ipa.government.bg/sites/default/files/report_iakda-2023.pdf Извлечено от Bogdanova, M. (2023). 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(Министерския съвет. (03 2021 r.). Актуализирана стратегия за развитие на електронното управление в Република България 2019 – 2025 г. Извлечено от Министерство на електронното управление). Eurostat (demo_r_pjanind3), 2024 - Population structure indicators by NUTS https://ec.europa.eu/eurostat/databrowser/view/demo_r_pjanind3/default/table?lang=en Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 96 3 region- NSI. (2022, 11 24). Sofia, Bulgaria. Изтеглено на 3 6 https://www.nsi.bg/sites/default/files/files/pressreleases/Census2021-ethnos.pdf 2024 r. от NSI. (2023, 11 15). Census 2021 Statistical Reference. Sofia, BG. Retrieved from https://www.nsi.bg/bg/content/20892/%D0%BF%D1%83%D0%B1%D0%BB%D0%B8%D0%BA%D0 %B0%D1%86%D0%B8%D1%8F/%D1%81%D1%82%D0%B0%D1%82%D0%B8%D1%81%D1%82 %D0%B8%D1%87%D0%B5%D1%81%D0%BA%D0%B8%D1%81%D0%BF%D1%80%D0%B0%D0%B2%D0%BE%D1%87%D0%BD%D0%B8%D0%BA%D0%BF%D1%80%D0%B5 NSI. (2023, 12 8). Use of information and communication technologies in households and by individuals in 2023. Sofia, Bulgaria. Извлечено от https://www.nsi.bg/bg/content/20936/%D0%BF%D1%80%D0%B5%D1%81%D1%81%D1%8A%D0% BE%D0%B1%D1%89%D0%B5%D0%BD%D0%B8%D0%B5/%D0%B8%D0%B7%D0%BF%D0%BE %D0%BB%D0%B7%D0%B2%D0%B0%D0%BD%D0%B5-%D0%BD%D0%B0%D0%B8%D0%BD%D1%84%D0%BE%D1%80%D0%BC%D0%B0%D1%86%D0%B8%D0%BE%D 0%BD NSI. (2024, 6 4). PERSONS EMPLOYED IN 2024 IN EXECUTIVE ADMINISTRATION. Sofia, Bulgaria. Retrieved from https://nsi.bg/bg/content/3942/%D0%BD%D0%B0%D0%B5%D1%82%D0%B8%D0%BB%D0%B8%D1%86%D0%B0-%D0%B2%D0%B0%D0%B4%D0%BC%D0%B8%D0%BD%D0%B8%D1%81%D1%82%D1%80%D0%B0%D1 %86%D0%B8%D1%8F%D1%82%D0%B0-%D0%BD%D0%B0%D0%B8%D0%B7%D0%BF%D1%8A%D0%BB%D0%BD%D0%B8%D1%82%D0%B5%D0 NSI (2024)- Average annual population by statistical regions, areas of residence and genderhttps://www.nsi.bg/bg/content/2985/%D1%81%D1%80%D0%B5%D0%B4%D0%BD%D0%BE%D0% B3%D0%BE%D0%B4%D0%B8%D1%88%D0%BD%D0%BE%D0%BD%D0%B0%D1%81%D0%B5%D0%BB%D0%B5%D0%BD%D0%B8%D0%B5%D0%BF%D0%BE%D1%81%D1%82%D0%B0%D1%82%D0%B8%D1%81%D1%82%D0%B8%D1%87%D0%B5%D1% 81%D0%BA%D0%B8-%D1%80%D0%B0%D0%B9%D0%BE%D0%BD%D0%B8%D0%BE%D0%B1%D0%BB%D0%B0%D1%81%D1%82%D0%B8%D0%BC%D0%B5%D1%81%D1%82%D0%BE%D0%B6%D0%B8%D0%B2%D0%B5%D0%B5%D 0%BD%D0%B5-%D0%B8-%D0%BF%D0%BE%D0%BB NSI (2024) Administrative-territorial and territorial division of the Republic of Bulgaria as of 31.12.2023https://www.nsi.bg/bg/content/21318/%D0%BF%D1%80%D0%B5%D1%81%D1%81%D1%8A%D0% BE%D0%B1%D1%89%D0%B5%D0%BD%D0%B8%D0%B5/%D0%B0%D0%B4%D0%BC%D0%B8 %D0%BD%D0%B8%D1%81%D1%82%D1%80%D0%B0%D1%82%D0%B8%D0%B2%D0%BD%D0 %BE%D1%82%D0%B5%D1%80%D0%B8%D1%82%D0%BE%D1%80%D0%B8%D0%B0%D0%BB%D0 %BD%D0%BE-%D0%B8%D1%82%D0%B5%D1%80%D0%B8%D1%82%D0%BE%D1%80%D0%B8%D0%B0%D0%BB%D0 %BD%D0%BE-%D0%B4%D0%B5%D0%BB%D0%B5%D0%BD%D0%B8%D0%B5%D0%BD%D0%B0%D1%80%D0%B5%D0%BF%D1%83%D0%B1%D0%BB%D0%B8%D0%BA%D0%B0%D0%B1%D1%8A%D0%BB%D0%B3%D0%B0%D1%80%D0%B8%D1%8F%D0%BA%D1%8A%D0%BC-31122023-%D0%B3%D0%BE%D0%B4%D0%B8%D0%BD%D0%B0 The single portal for access to electronic administrative services https://egov.bg/wps/portal/egov/dostavchitsi%20na%20uslugi/obshtinski%20administratsii Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 97 - Denisa Cani Rezear Kolaj Ekaterina Arabska Petar Borisov Denisa Cani Ph.D. Candidate Department of Finance, Faculty of Economics, QU, Tirana, Albania. e–mail: denisa.cani@qiriazi.edu.al ORCID: https://orcid.org/0000-00020056-3298 Rezear Kolaj Associate Professor, Dr. Department of Economics and Rural Development Policies, Faculty of Economics and Agribusiness, AUT, Tirana, Albania e–mail: rkolaj@ubt.edu.al ORCID: https://orcid.org/0000-00025702-317X Ekaterina Arabska Associate Professor, Dr. Department of Management, University of Agribusiness and Rural Development, Plovdiv, Bulgaria e–mail: earabska@uard.bg ORCID: https://orcid.org/0000– 0001–6992–4867 Petar Borisov Professor, Dr. Faculty of Economics, Agricultural University Plovdiv, Plovdiv, Bulgaria e–mail: peterborisov@gmail.com ORCID: https://orcid.org/0000– 0003–4236–9482 Published First Online: 24.06.2024 Pages: 98 – 108 DOI: https://doi.org/10.37075/JOMSA.202 4.1.08 LANDSCAPE: THE IMPETUS NEEDED FOR A FAIRER TAX SYSTEM AND FAIRER USE OF TAXES ABSTRACT Innovation, new technologies and techniques have transformed the economy and especially the tax landscape. The rapid process of e– fiscalization in Albania has influenced the improvement of the performance of the tax administration and institutions, the business climate and trust. The paper aims to explore the impact of e–fiscalization toward a fairer tax system, illustrating with a case study from Albania. The study provides an insight into the multi–dimensional impact of innovation and e–fiscalization on the economy, with a focus on the financial ecosystem, organizations and key actors in society. The qualitative investigation used supports the influence of fiscal innovation and new practices for increasing transparency and restoring trust, creating a new institutional and governance potential for both fairer taxation and fairer use of taxes. KEYWORDS: public policy, e–fiscalization, fair taxation, fair use of taxes development, agglomeration, direction, model, survey, study JEL: O38, H21, H29 INTRODUCTION Currently, all developmental paradigms are defined by innovation and technology, influencing human life, civilization, well–being, sustainability and our resources. As a result, distances and costs are reduced and efficiency has increased by improving the performance of institutions and management systems. These dynamics determine in real–time the economic results and the functioning of markets, production and services, and especially the financial system. While appearing influential with time (short–medium–long term) on the main current issues such as migration, growth and security, innovative transformation and especially in the tax landscape, it poses previously unknown questions about institutions and their innovative–logistical capacity, future knowledge and education. The findings illustrate that adaptations to current challenges for sustainability and innovation practices within EU "green" (Borisov et al., 2019) Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 98 or "just transition" (Apostolopoulos et al., 2023) policies are now critical everyday tasks, emphasizing the crucial importance of scientific research for predictability and solutions in key sectors of the economy. The ecosystem of financial services and taxes is perhaps the most exposed to the effects of these transformations in many ways. Innovations, from transmissions and transfers via Morse code to the Internet, digitization and currently fintech have re–dimensioned the way, speed and meaning of the financial world. However, as digitization and technological inventions have become widely available to subjects, organizations and financial institutions, the need for rapid adjustments has been observed (Georgieva et al., 2020; Georgiev et al., 2022; Stefanov et al., 2022). E–governance and transition of services through software and hardware developments and in the financial sectors can create complications for users (eg operators, fiscal administration), the response and speed of adaptations by institutions, etc., and therefore for the compliance of businesses, as an indicator of the efficiency of public policies and sustainability (Dečman et al., 2010; Liargovas et al., 2019; Albayati et al., 2020; Hodzic, 2018). High–tech solutions and customer–friendly practices would improve and reduce fiscal administration and could contribute towards a fairer fiscal policy. Current innovative developments within the financial ecosystem in Albania, through new e– fiscalization practices with cost and time advantages (e.g. real–time data), have broadened the debate on taxes, the efficiency of their use and the fiscal policy and fairer taxation. The discussion of the effects of e–fiscalization on the tax landscape provides a multifaceted mapping of resources and factors within an interconnected and sophisticated spectrum of economic, technical–technological, infrastructural and logistical–instrumental, education and skill– generating issues with social and psychological effects. The e–fiscalisation exceeds the traditional approach in a multi–dimensional way. It is enabled through the latest transmitters, unused resources and the new–functional systems of management and coordination and higher competencies of the tax administration, influencing the results and the economic environment and thus the confidence of the entrepreneurs and the level of acceptability of public policies in society. Given the context, a question of research interest arises: Does new e–fiscalization in Albania affect a fairer tax system? Digitization and transformative effects may encourage citizen activism on public issues and taxes. Whereas fair taxation (e.g. income tax) is more often equated with the principle of social justice, the functioning of market competition, avoidance of evasion and a more equitable fiscal environment (Allingham et al., 1972; Bloomquist, 2003), the controversy of the egalitarian approach on horizontal taxation as a compressive expression of moral norms in society represents also an important view within a spectrum of this research subject (Barth et al., 2006; Galle, 2008). Beyond the categories of taxes (and their rates), the meaning of taxes includes broader and more complex dimensions expressed by poverty or redistribution, sources or factors, etc., where "fairer" is critical because it implicitly implies efficiency of the use of taxes in society, where institutions, trust, freedom and acceptance of individuals are keywords. E– fiscalisation can affect processes and the foundations of social structures. The paper aims to investigate the effect of e–fiscalization towards a new fiscal policy and fairer taxation, illustrating with a case study from Albania. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 99 1. LITERATURE REVIEW The discussion over taxation involves the essence of the circulation of money. Embodying the basic elements of sciences such as philosophy, laws, culture and mathematics it is complex, ever–present and of research interest. From Aristotle, Seneca and Caesar (the first sales tax, 1% flat rate), "institutions", "trust" and "fair taxation" are preached. Among the founders, Smith (2005), emphasizes the "pay principle" (or "payability") as the ability of people who earn and pay more taxes to "good government" (Five Canons of Taxation). Pigou (1932), explains the principle of equal "sacrifice" in the function of social welfare of "taxes". Lindahl (1958), highlights controversies of tax theory, using the principle of "marginal utility" of citizens from public services provided, given the way taxes are spent by the government. Bowen (1943), regarding it as a “public good” and “symmetrical distribution” within the community as its prerequisite, points out that if voters have an equal tax burden and marginal rate substitutions equally are distributed, then a majority of voters lead to the efficient provision of a Pareto– efficiency supply of a single good. Swan (1907), shows the feudalist view that sees the state as a territory and therefore certain property, including the national subjugation of persons through "tax burdens", emphasizing the importance of "tax fairness" and arguing that the state is not the owner of the economy or people, but a public instrument for the fulfilment of necessary public functions based on the public interest. In response to the question “Is taxation per se a burden?”, Thomas (1941), frees the discussion from clichés, arguing the importance of the established economic and social criteria and the definitions of what is “fair”, through creative ability and vision for the future economy. Groves (1949), analyses post–Keynesian influence (e.g. income, consumption and investments) and points out that policies that manipulate tax rates according to cyclical needs when the economy is struggling, can risk the suspension of the entire tax system. In the spectrum of the discussion on the well–functioning of the tax system and the current trends and consequences, studies emphasize concepts such as (1) tax fairness, (2) tax responsibility, and (3) tax efficiency (figure 1). Figure 1. The spectrum of views on the taxation system. Source: PRI, 2021. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 100 Richardson (2006), while arguing that tax fairness is also related to noneconomic variables by referring to social–psychological ones, emphasizes the importance of culture and specifics related to the location forces of regions and reveals that tax fairness has a multi–dimensional impact on the business environment and is significantly related to tax compliance by the subjects. Authors (Granger et al., 2022), support that game–changing innovations or new e– taxation systems in the new era are based on compliance of entities by conditioning it with enterprise transformation, modernization of the financial system and the increase of interconnection with other areas of the tax landscape affect tax fairness and economic governance. Do et al. (2022), argue that e–tax services improve the business environment and national competitiveness, affecting the costs and financial resources provided for public services and thus tax fairness and policy–making efficiency. Priniotaki (2023), reveals that e– services and AI in the tax landscape have transformed the financial ecosystem, affecting the improvement of costs, tax fairness and tax administration. While discussing the ethical issue of "whether robots are taxed", Beev (2022), argues that the diffusion of innovation in the e–tax system is rapid and positive toward tax responsibility, fairness and tax policy. Bachev (2020a; 2020b) highlights the impact of digitization and e–taxes in rural areas and the effects on new management systems, organizations and public policy instruments. Dečman et al., (2015), suggest that e–taxes and new technological services offered affect system improvement, user satisfaction and responsibility and tax governance. Kalogiannidis (2021), argues that the innovations in the tax system affect government revenues, modernization of the financial ecosystem and consequently entities' responsibility, tax fairness and fiscal policy. Bărbulescu et al., (2021), comparing the recent tax systems (post–Covid 19) between Romania and Bulgaria explain the superiority of advanced innovative systems used in taxation in Bulgaria and the impact on the increase of general government revenue and the collection of various taxes and the benefits of good governance practices, tax fairness and efficiency and fiscal policy reform. 2. GOVERNANCE OF THE TAX SYSTEM IN THE COUNTRIES OF THE REGION AND ALBANIA While the achievement of tax fairness is based on the efficiency of the use of taxes, the speed of growth (e.g. industrial employment), the trust or tolerance of businesses to financial risk, including environmental effects (e.g. sustainability), the context of region countries (e.g. location forces, EU integration, etc.) and the specifics of economies (e.g. policy goals, production structure, competitiveness, etc.), can expose it in different ways and times to risks such as demographic ones (especially migration and aging), social and institutional, resource and technological or other (e.g. religiousness). Tax revenues constitute a primary task for public governance and fiscal policy efficiency and current fiscal innovations have facilitated their collection rate, reducing costs and improving redistribution. According to Jacobs (2017), fiscal digitization and innovation provide efficiency and increase interaction in different segments of the tax system, avoiding evasion and sophisticating the system through combinations (eg taxation of labour vs. assets), making the same level of redistribution to be achieved with lower tax rates and contributing towards fairer taxation. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 101 Fiscal efficiency is the essence of a nation (Schumpeter et al., 1918), and according to Moore (2007), while tax revenue by governments has varied on average from 10%–40% of GDP, quality governance is decisive for fiscal policy (1) ensuring that revenues are needed for public uses and not incentives for inefficient spending’s or abuse; (2) contributing to a sophisticated public policy by distributing the tax burden among potential taxpayers in the poorest regions, special activities or specifics (e.g. from migration), etc.; and especially (3) minimizing the direct and indirect costs from the increase in taxation which always are under the vigilance of the subjects since they impact their profits (or subsistence), the business environment and future investments, etc. Moreover, the findings at the micro and macro levels support that helpful (not wasteful) governance affects the increase of perception on the fulfilment of tax obligations by subjects, the minimization of moral costs, the improvement of traditional rules and norms and the reduction of the shadow economy, since this the latter is particularly related to fiscal efficiency and policies (Torgler et al., 2007). Figure 1. General government revenues of Western Balkan countries (% of GDP; 2008, 2018). Source: OECD, 2019. Governance at a Glance: Western Balkans. Table 1. General government revenues of Western Balkan countries (% of GDP; 2008, 2018). Bosnia and Herzegovina Serbia Montenegro North Macedonia Albania Kosova 2008 45.5 41.0 48.8 32.8 26.8 24.3 2018 42.8 41.6 41.4 28.5 27.6 26.1 Western Balkans OECD EU28 38.3 36.9 43.9 37.1 37.5 45.2 Source: OECD, 2019. Governance at a Glance: Western Balkans. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 102 While the research debate on new taxation policies, implications and new approaches has remained very rich (Emran et al., 2005; Auriol et al., 2005; Besley et al., 2014; Abramovsky et al., 2014), the discussion on tax revenue “numbers” and tax limits "defined" for the "transition" of developing countries to developed ones (from 25–30% of GDP; Kaldor, 1962) has remained partially conditional according to objectives of the Global Agenda (22% of GDP) by 2030 (UN, 2005). During the last decade (2008–2018), government revenues of Western Balkan countries (Figure 1; Table 1) and OECD countries and EU28 are presented, where Albania is between 26.8% and 27.6%, BiH 45%; 42%, Kosova 24.3%; 26.1%, Montenegro 48.8%; 41.4%, Rep. of North. Mac. 32.8%; 28.5% and Serbia 41% and 41.6%. In the countries of the region (EU member), the level of government revenues (2023) was: Bulgaria 37%, Croatia 45%, Greece 50%, and Slovenia 43.9%. In the countries of the Western Balkans (2023), Albania is presented at the level of 26.79%, Bosnia and Herzegovina at 39.8% and the Republic of North Macedonia at 30.6% (IMF, 2023). We argued a variety of justifications and the complexity of decisions for the choice of tax programs depending on the context of the countries (e.g. integrated or not) based on sources, implications, or factors (e.g. endogenous, exogenous) and economic objectives (or global agendas), etc., however, financial governance is challenged by the dilemma on the one hand (1) to increase tax revenues (and coherently) within an acceptable level of the entrepreneurial actors, and on the other hand (2) to ensure that relevant decisions do not affect the foundations and the way of functioning social–political system. Fiscal policy can contribute to wide–ranging economic, social, and environmental effects and combinations with new practices adopted by regional countries (e.g. flat tax in Bulgaria), and used innovations can serve as discussible references. Taxation in developing countries can improve the formalization of the economy, favouring the main sectors (e.g. exports, imports) and the markets, national production, or income by influencing in a complex way (with various intensities) critical factors in developing countries, such as human capital (professionals) and labour migration (Bird, 2008; Clemens, 2014). 3. E–FISCALIZATION AND FAIRER TAXATION IN ALBANIA — EMPIRICAL INVESTIGATION The discussion on digitization, the launch of e–fiscalization (2021) and fiscal policy in recent years in Albania has developed within a dynamic of complicated events under the influence of environmental factors (e.g. COVID–19, earthquake 2019, etc.), economic and social (e.g. migration). In addition, fiscal policy during the last decade has always been discussible especially compared to the practices of EU countries (Cani et al., 2023a). The rapid digitalization of services (e.g. E–Albania, e–filling, self–care) has included all the main financial activities, such as banks, business entities and citizens, tax administration and institutions, improving quality, technology and logistics used, and reducing costs. Although studies on the acceptability of e–fiscalization by subjects are lacking, especially in specific sectors (eg agriculture) where traditionally in Albania (and also EU countries) problems are found in tax items (especially VAT), evaluations of proactively developed e–fiscalization, nevertheless, show that it was not associated by a decrease in government revenues even in its beginnings during the first months of the implementation (Cani et al., 2023b). Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 103 The process of e–fiscalization, innovations and new technologies in operation can contribute towards the necessary adjustments and adaptations and fairer taxation as well. E–fiscalization, through the implementation of the new digital system, improves the monitoring process and reporting of financial transactions, developing the potential and changing the way taxes are collected. Through it, the tax administration enriched with technology and new competencies can be accompanied by its reduction (and eventually the size of governance also), making both (1) the improvement of services to businesses and the reduction of costs; and (2) better use of tax information to identify problems and improve solutions, towards a fairer fiscal burden and opportunities towards a fairer taxation system. While Yin (2009) supports the use of empirical qualitative investigation through case studies, especially in the case of rapid phenomena within a real–unclear–complex context, we have investigated in the business field three companies regarding the effects of e–fiscalization (Cani et al., 2023c) and the potential for fairer taxation. In response to the question (1) "Does e–fiscalization affect the increase of trust towards the tax administration and institutions?" the representative of the "Erzeni" company emphasizes that "contacts with the tax administration have been reduced, avoiding cases of self–offering on its part through pro–evasionist behavior"; "Hako" company pointed out "advantages of data transfer in real–time and the good possibility of using taxes in the future"; the "Sidney" company underlined "increased initial (fixed) costs and infrastructural problems (eg Internet, cyber security, etc.)". To question (2) "Does e–fiscalization affect a fairer tax system?", "Erzeni" company admitted that "there is an improvement in competition and better distribution of the fiscal burden", "Hako" company emphasized "that the fairer distribution of the fiscal burden will improve the business environment"; and "Sidney" company underlined "the impact of e–fiscalization and new fiscal practices towards the new approach of institutions and the potential for a fairer taxation". Summarising, some key issues result from the analysis of the three case studies (Figure 2). Figure 2. Summary of results from the implemented case studies. Transparency and increase of trust, improve of institutional performance towards a fairer use of taxes Improvement of informality and the opportunity to a fairer fiscal burden towards a fairer taxation Source: Processing by the authors. The representatives of the three companies showed facts and examples of events about their cost challenges (including additional personnel for maintenance and new e–fiscalization procedures), infrastructural problems (especially in rural areas) related to access to the Internet network, interruption of electricity and concerns about cyber security, real–time data reporting, confirming the all–accepted perception regarding improvement of the institutional performance and especially tax administration. Through the findings (with few differences), it can be seen that there is a consensus from the representatives on the impact of e–fiscalization and new Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 104 transparent practices towards a higher level of efficiency and responsibility from both sides: (1) institutions and (2) businesses, enhancing trust. The removal of informal companies from the market and the increase of market access to the formalized companies promote the democratization of the processes and the increase of government revenues and consequently to a fairer fiscal burden in the future, fairer taxation and fairer use of taxes and this is well– supported by the literature (above). CONCLUSION Digitization, e–fiscalization and fiscal innovation improve the performance of tax administration, reducing costs, increasing efficiency and creating premises for a public fiscal policy that expands influence and redistribution by lowering tax rates and creating the conditions for fairer taxation. By increasing the impact on the business environment and the compliance of businesses (especially small ones) with public policies, e–fiscalization can influence the increase in the responsibility of entrepreneurs to current challenges (imperatives of the time) such as social and environmental ones, contributing practically to a fairer and contemporary fiscal policy. Achieving fair taxation is closely related to issues and factors different and interactive such as institutional, economic, demographical, geographical, social and socio–psychological, technological, cultural, educational, instrumental, etc., which define also trust, so important in society. By improving the tax landscape, organizations and institutions, fiscal innovation has the potential to influence the correct use of public goods, i.e. the renewal of trust, and both: (1) a fair tax system, and (2) fair use of taxes. Although increasing taxes represents a favourite "game" for governments with the justification of increasing budget numbers, public expenditures, etc., taxes determine market equilibrium (Miller, 1977). They must ensure that (1) are not discriminatory, and (2) are consistent with the economic context (e.g. they are redistributed and fairly, and empower the businesses), by better helping the economy (Burgess et al., 1993; Avi–Yonah, 2006; Bird et al., 2013). For example, examining carefully the impact of innovations (e.g. costs and adaptions) on sustainability in particular, with the vision to attract more FDI and jobs and especially specific ones (e.g. industrial), low taxes (e.g. flat rate) in emerging markets may favour the anti–evasion environment, where profit and growth are perceived freely (first by the locals) and possibly inadequacies (e.g. market dysfunction and anti–competitive behaviour) have been overcome. 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Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 108 Efe Efosa Ehioghiren Augustina Izehiuwa Efosa-Ehioghiren Eromonsele Addeh Ehioghiren, Efe Efosa Human Initiative Development and Research Centre (HIDRC) Benin City, Edo State of Nigeria e-mail: ehioghiren2004@gmail.com ORCID: https://orcid.org/0009-00037979-2716 Efosa-Ehioghiren, Augustina Izehiuwa Department of Guidance and Counseling, Ambrose Alli University, Nigeria ORCID: https://orcid.org/0009-00093503-2583 Addeh, Eromonsele National Institute of Construction Technology and Management, Uromi, Edo State e-mail: a.eromonsele@nict.edu.ng THE PSYCHOLOGY AND SOCIOLOGY OF A FRAUDSTER: IMPLICATIONS FOR TODAY ACCOUNTING PROFESSION ABSTRACT The study examines the Psychology and sociology of a fraudster: Implications for today accounting profession. The investigation was guided by three questions and a hypothesis. The study employed a survey research approach, and the 274 auditing businesses in Nigeria's South-South geopolitical zone comprised the study's population., the Taro Yamane was uses to determine the sample of the study and Spearman rank correlation was used to analyse the data. Results from the research reveal that there was a correlation in capability (r= 0.121 p< 0.05), lifestyle (r= 0.561 p< 0.05 and environment (r= 0.108 p< 0.05) and the psycho-social behaviour of the perpetrator of fraud. The implication was that the professional auditors should apply professional scepticism and exercising due care in engaging their work for better delivery and discharge of their duties, as this will lead to the detection of fraud and the reporting of red flags that are of material misstatement. The study recommended that an active, strong and proper supervision of internal control system will put to serious check the action of fraudulent activities. KEYWORDS: Psychology, Sociology, Fraudster, Power theory, Accounting Profession. Published First Online: 24.06.2024 JEL: M21 Pages: 109 – 122 INTRODUCTION DOI: https://doi.org/10.37075/JOMS A.2024.1.09 The business environment and the society are becoming complex day in and day out and behavioural scientists to date have not be able to pinpoint a psychological and sociological specific behaviour that acts as a dependable and valid indicator of a person's propensity to perpetrate fraud., even though some effort has been made in this direction (Sridharan & Hadley, 2018). This is further compounded by the advanced technological and global era of today world. Burnes, Henderson, Sheppard, Zhao, Pillemer and Lachs (2017) believe that studying fraud today requires a multidisciplinary approach rather than just one discipline. To fully understand the fraud phenomena, economic, psychological, social, criminological, and political methods Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 109 are necessary. Murphy and Free (2016) affirm that businesses have been making efforts to reduce and prevent fraud and proactively manage fraud risk, this effort has not completely yielded. Kramer (2015) reaffirmed that preventing fraud is a considerable challenge to organizations as fraudsters continuously discover different methods to commit fraud. ACFE (2016) observed that detecting fraud is even more difficult as fraudsters usually attempt to hide their tracks. Worrisome is the facts that many of the world's organizations have witnessed widespread corporate accounting fraud, these Fraudulent, money laundry, embezzlement and such like take place under the suppose watchful environment where there is professional accountant. Azam (2018) collaborate this statement that these financial crisis and fraudulent activities is as a result of the silence of the auditors. The fraud triangle, which has been referred to as the main framework dealing to fraud incorporated in professional auditing standards, serves as the foundational idea in accounting literature and international audit standards around the world (Omar, Nawawi & Salin 2016). The fraud triangle is a theory that explains why individuals steal. Lokanan (2015) affirmed that triangle of fraud has being used as standard ways to investigate and understand the factors that make people commit fraud. Ramamoorti (2016) argues that these three elements: pressure, opportunity and rationalization must exist to commit a crime. The investigators can identify the pressure (such as exaggerated income or net income) that resulted in fraud by analyzing the financial statements. (Abdullahi & Mansor 2015). A deficiency in internal controls or a lack of effective internal controls has been perceived as providing the chance for fraud, and fraud has been justified using these methods. (Kalana 2019). Awang, Ismail, Rahim and Rahman (2016) say that the desire to deceive for one's own gain is a common element in all frauds. Although the fraud triangle creates a foundation for examining elements that influence fraud Bassem and Yustrida (2019) added that there could be many other variables that may influence an individual’s intent to commit fraud. (Brown, Hays & Stuebs 2016) There has been discussion to move fraud research beyond the fraud triangle and the fraud diamond which is “an individual’s capability” to perpetrate the fraud. (Sridharan et al, 2018) added that these capabilities include the knowledge and intelligence necessary to carry out the fraud, as well as the skills needed to avoid detection. Md Abdul (2022) claimed that deception, purposeful intent, intensity of desire, risk of suspicion, breach of trust, rationalization, etc. are all human characteristics that go into fraud. Therefore, it is crucial to comprehend the psychological and sociological aspects that may have an impact on fraudsters' behaviour. Psychology generally aims to comprehend, explain, foresee, and observe both individual and societal behaviour (Bassem et al., 2019). Personal psychology is the study of people specifically. Social psychology is thought of as the study of group behaviour, while abnormal/personal/forensic psychology and sociology concentrate on deviant behaviour (Iuga, Nurse & Erola 2016). Cross-cultural psychology (anthropology) examines the impact of culture and context on behaviour. The rationale of drawing on behavioural sciences is clear from the intuition that one needs to think like a crook to catch a crook as many business professionals, especially in the financial field, tend to reduce behaviours explanations (Ehioghiren & Atu, 2016). But with the continued Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 110 occurrence of fraud in growth, the spotlight behavioural factors may be an important approach not only to detect fraud but in other words, when discussing and conducting cross- disciplinary research the subject of fraud, must certainly bring in the human factors (Ramamoorti, 2016) Equally, psychological and sociological factors as seem will influence the way a person interprets the situation they are in and this, in turn, will influence the action they choose to take (Young 2020). Fraud, like other crime, can best be explained by three factors: a supply of motivated offenders, the availability of suitable targets and the absence of capable guardians control systems or someone “to mind the store”, so to speak (Huber 2016). The authors focus on psychological and sociological aspects of fraud by identifying a number of psychological and sociological correlates of fraud offending, but quick to note that these are by no means unique to fraud, and do not necessarily differentiate fraudsters from law-abiding citizens. Petty and Briñol (2015) agrees that the psychological and sociological behavioural sciences help to support the interdisciplinary field of fraud examination and forensic accounting in theory development, in practice, in fraud prevention, deterrence, and detection. Nevertheless, there are several examples of attempts to separate those who will commit fraud from those who won't (or who are likely to commit fraud given the correct circumstances; Federal Bureau of Investigation 2018). These efforts include "honesty" or "integrity" tests designed to gauge a candidate's dependability (Bonita, Michael & Georgiy 2017). The Minnesota Multiphasic Personality Inventory (MMPI) and the Personality Assessment Inventory (PAI) are two examples of personality tests that are used as a standard for identifying people who are likely to commit fraud (Judges, Gallant, Yang & Lee 2017). Remember that psychological and social aspects may be seen as a marker for fraud but not a complete explanation for it when examining the factors related with fraud in general as well as specific categories of fraud (Ehioghiren, et al., 2016). The following questions are specifically supported by this research: To what extent has a psycho-social behaviour aided capability of the perpetrator to commit fraud; to what extent has the Psycho-social behaviours for desire to attain certain lifestyle influence fraud and to what extent has vulnerable environments attractive potential for fraudulent reward aided Psycho-social behaviours. Against this backdrop this paper examines the Psychology and sociology of a fraudster: Implications for today accounting profession (Kadoyo, Khan, Narumoto, & Watanabe, 2021). LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT Definitions of Psychology and Sociology Psychology is the study of the nature, functions, and phenomena of behaviour and mental experience; simply put, it is the science of human behaviour (Ramamoorti 2016). In general, psychology seeks to understand, explain, predict, and control individual and group behaviour. (Bassem 2019) added that specifically, in the case of personality psychology which studies individuals; while Sociology looks at group behaviour and their social influence; these revolves round cross-cultural context on behaviour in different aspect of human endeavour abnormal, personality, forensic, sociology, and including psychiatry that focus on deviant behaviour and industrial psychopaths (Button & Cross 2017). Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 111 Fraud Triangle A criminologist named Donald R. Cressey made a comment about the Sutherland study in the 1950s. According to Cressey, three things—pressure, justification, and opportunity— encouraged the occurrence of fraud. The Fraud Triangle idea was thus named after these three elements (Cho, Cam, & Oltramari, 2016). Pressure: which cannot be explained in terms of money, may be one of the things that causes fraud to happen. According to Cressey, the pressure mostly alludes to financial pressures like debt, a lavish lifestyle, drug addiction, and other potential financial inducements. Opportunity: enables fraud to take place. It is typically brought on by a company's lax internal controls, a lack of monitoring, and abuse of power. Opportunity is one of the three components of the fraud triangle that is most likely to be reduced by process, procedures, control, and early fraud detection initiatives (Chuchuen & Chanvarasuth, 2015). Rationalization: is a key component of fraud, as the fraudster continually looks for justification for his actions. For instance, the fraudster may justify his actions by saying that doing so will bring happiness to his family and the people he cares about, that his working career has been long enough for him to feel entitled to more (in terms of position, salary, and promotion), and that the corporate profit is so significant that it is unimportant for him to receive a share of it. Petty et al. (2015) cite Cressey's fundamental study, which states that professional people may commit fraud due to financial pressures that cannot be disclosed, the belief that there is a chance that the theft will go undetected, and the justification that the actions taken are appropriate. For many years, the Fraud Triangle has served as the foundation for the majority of talks on whitecollar crime in the accounting curriculum. The Fraud Triangle turns into a useful tool for auditors to observe the intent of fraud perpetrators (Kalana, 2019). Fraud Scale In addition to Cressey's Fraud Triangle, Albrecht's Fraud Scale was another fraud theory that was proposed in 1984. According to Albrecht's Fraud Scale, three things—situational pressures, opportunities for fraud, and personal integrity—can cause fraud to occur. Albrecht changed the rationalization component to personal integrity because, in his opinion, rationalization is harder for outsiders to understand whereas personal integrity can be determined by a person's past actions (Azam 2018). These are transgressions of morality, integrity, and accountability, which are at the core of accounting fraud. By evaluating the circumstances around a fraud perpetrator, it may be determined that pressure factors contribute to ethical issues and that rationalization is a cause of ethical concerns. Modern Fraud Theories The A-B-C Analysis According to a study by Ramamoorti, fraud is primarily caused by behaviour. He suggested using an A-B-C model to classify and sort out fraud. The three sorts of fraud identified by Ramamoorti (2016) are: a poor apple, a bad bushel, and a terrible crop. Individual fraud, or Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 112 fraud committed by an individual, is referred to as a bad apple. A bad Bushel, also known as collusive fraud or fraud conducted in collusion, and a bad Crop, also known as fraud committed in collaboration with societal and cultural mechanisms that influence the occurrence of fraud, respectively. A bad harvest is the most hazardous of the three sorts. A rotten crop is defined by moral weakness among the organization's leaders, which soon spreads to the workers under them. Fraud eventually becomes a culture in the organization, practiced in congregation from the top to the subordinates, spreading nearly entirely across it (Young 2020). Fraud Diamond and M.I.C.E. Model After examining the four components of fraud, Huber (2016) suggested that the Fraud Triangle can be strengthened by including the fourth component, capability. The perpetrator's capacity may include authority and sufficient knowledge. The potential for fraud, pressure, and justification bring the perpetrator closer to the door, but the culprit must be able to recognize the possibility of entering the door and engaging in fraudulent behaviour. The Fraud Diamond alters both the pressure factor and the added aspect of capability. The Fraud Triangle's pressure component may not always refer to external financial pressure. For instance, not all participants involved in bribery in a case involving many parties may have been motivated by financial need. Another illustration comes from Ramamoorti (2016), who revealed that affluent and powerful CEOs who are also fraudsters. It is clear that the primary motivation is not pecuniary. Fraud Triangle is unable to fully see the pressure aspect in this situation. Four variables, popularly known by the acronym M.I.C.E. (money, ideology, coercion, and entitlement), can be used to explain the situational pressure that may inspire the occurrence of fraud. The financial pressure that leads a person to commit fraud is referred to as the "money factor." Excessive spending, debt, pressing family requirements, and other factors can contribute to financial stress. The ideology component indicates that the offender believes his actions are for the greater good (Xu, Wang, Xu, & Xu, 2022). For instance, he believes that earning money illegally is not an issue because he will give the cash to numerous individuals in need. The coercion element denotes the presence of a third party who sets a bad example, threatens, intimidates, and coerces others to commit fraud. The term "entitlement" describes the ego of a person who believes that his fraud would go undetected (Xiao & Porto 2021). Theory of Power When attempting to comprehend how someone becomes involved in fraud, the fraud triangle and fraud diamond theories are helpful. However, the power hypothesis explains how one person might persuade another to take part in the hoax. The perpetrator of a fraud "has the desire to carry out his or her own will-influence another person to act and do as the perpetrator wishes - regardless of resistance," according to Huber (2016). In 1959, John French and Bertram Raven divided "power" into five distinct factors, each originating from the various facets of the interaction between an actor and the subject of their influence. French and Raven demonstrated that the following factors impact A's influence over B: Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 113 (1) The capacity of A to benefit B (reward power) (2) A's capacity for coercion over B (expert power), (3) A's specific knowledge or skill (expert power), (4) A's legal authority to dictate behaviour to B (legitimate power), and (5) the degree to which B identifies with A (referent power) The Fraud Triangle Re-Interpreted The ''fraud triangle,'' which is loosely based on what police officers and detectives have referred to as ''means, motives, and opportunity,'' is a crucial conceptual framework for comprehending fraud. The Association of Certified Fraud Examiners (ACFE) has widely spread the concept of the "fraud triangle," which consists of three components: perceived incentives or pressures, perceived opportunities, and rationalization of fraudulent behaviour (Azam 2018). It should come as no surprise that the psychology of the fraudsters affects all three aspects of the fraud triangle. Human behaviour is influenced by individual motivations and perceived pressure, and the desire to defend misbehaviour is psychologically anchored in the idea of cognitive disagreement (Xiao et, al. 2021). To some extent, the perpetrator's individual, behavioural calculus influences even the judgment of opportunity, even the comparatively low risk of being caught. Therefore, it is in our best interests to look for psychological explanations and answers rather than merely logical ones when attempting to comprehend the underlying causes of deception. • If everyone is becoming wealthy, then why shouldn't I? • Taking money is only a brief "loan"; it will be paid back once the gambling or betting winnings are realized. • I deserve these "perks" as fair remuneration, and the business can surely afford them. • If anything, this is a victimless crime, and I am not harming anyone—in fact, what I'm doing is for the best of reasons! • The situation is not particularly serious. Although the fraud triangle is a potent conceptual tool, there are other factors that do not easily fit within the fraud triangle framework, such as basic greed and covetousness, a "payback motive" to make the organization pay for perceived inequities, or a "catch me if you can" attitude that some white-collar criminals display. Similar to this, the white-collar criminal's evaluation of the organization's attitude toward fraud, even if the perpetrator is identified (e.g., organizational inaction and reluctance to take any action, turning a blind eye, being satisfied with a warning, poor track record in vigorously prosecuting fraud), gets factored into the behavioural calculus but is not immediately apparent as a separate descriptive category. Therefore, ACFE's founder Joseph Wells offers the following piece of advice: "Let them know you're watching!" Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 114 Due to the well-connected and frequent first-time offenders, white collar crime is very challenging to prosecute. Such fraudsters go to great lengths to hide their actions, get rid of any relevant evidence, and sabotage the audit trail. Indeed, according to (Burnes et al. 2017), white collar crime is a key topic in criminology because it highlights the dynamics of inequality in prestige, position, power, and reputation as well as the "differentials of power and influence." As a result, even the adage "where there's smoke, there's fire" may not quite apply because the fraudster may utilize a smoke screen or another method to suppress the smoke, leaving no obvious signs of fire. Instead, we should remember the adage that scientists who are looking for extraterrestrial life sometimes use: "Absence of evidence is not evidence of absence." Due to all of these factors, a lot of corporate and economic crimes go unpunished while having serious financial repercussions, and white-collar crime is still mainly an unmanaged risk in firms Yang, Su, Wang, & Xu, (2022). When prosecuting white collar crimes, it's crucial to take into account the "other fraud triangle," which consists of the peaks of "the act, the concealment, and the conversion," to figure out how the fraudulent act was carried out, what steps the fraudster took to cover his or her tracks or obscure the audit trail, and ultimately how he (as well as potential others) illegally benefited from the act (Brown, et al 2016). The following categories of fraud have been listed for comparison's sake. a) A major or senior official of an organization defrauding that organization. Examples of this include wrongdoing by "high-flying entrepreneurs" (Brown, et al. 2016) against shareholders or creditors or corrupt actions by senior public officials. b) Fraud committed by a customer (an "outsider") or an employee (an "insider") against an organization. Embezzlement, insurance fraud, tax evasion, and other types of fraud against the government fall under this category. c) Fraud committed by one person against another in a situation involving direct face-toface contact. This would include traditional "con games" (Button et al. 2017), salesperson frauds, and predatory acts by dishonest investment advisers, dubious roof repairers, and other people who prey directly on a consumer (Xiao & Porto 2021). d) Fraud conducted against a large group of people via print, electronic, or other indirect media. This might include share market manipulation, deceptive advertising, and investment solicitations targeted at a sizable number of potential victims, such as advance fee frauds in Nigeria (Bonita et al. 2017). Three facts of Fraud (a) Identity Fraud often relies on being taken for a usual business practice, and those who do it are successful to the extent that they can come off as trustworthy and honest. In order to obtain their victims' trust and money, con artists have used positions ranging from high government authority to ethnic affiliation. The most blatant example of the strategic exploitation of social identity to conduct financial crimes is affinity fraud, in which similarities in ethnicity, religion, or profession is exploited as a shortcut to determine who to believe (Cho, et al. 2016). Impression management, a technique used to fabricate a false social reality, is the strategic Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 115 deployment and manipulation of identity. This impression management is intended to mislead others for financial gain, such as by purposefully misrepresenting one's identity in a professional capacity in order to obtain employment or exploiting others due to their familiarity with the victim. (b) Interaction Fraud is an interactional crime that can lead to vulnerability to financial fraud since it depends on the nature of the relationship between the two parties for its effectiveness in addition to requiring both a deceiver and a victim. According to the national fraud victimization survey, for instance, fraud efforts are more likely to be successful when the victims (or know of the culprit) are certain vulnerable victims. Some offenders take advantage of these victims because of the interaction relationship. Sociologists are particularly interested in fraud because it reveals a variety of social network characteristics, both good and bad (Iuga et al., 2016). These social networks and linkages have a negative side that increases opportunities for dishonesty, vice, and improper behaviour (Yang, Su, Wang, & Xu, 2022). Inappropriate usage of social networks places a special emphasis on trust and human relationships. Even in societies with highly developed institutional frameworks, people claim to place greater faith in informal networks of locals than in formal institutions. Some interaction contexts may be "criminogenic" because of how simple it is to abuse interpersonal relationships and conceal instances of misconduct within countless other legitimate interactions (Burnes et al. 2017). They noted that the trust fostered by personal relationships presents an increased opportunity for wrongdoing by its very nature. The desire and willingness of most people to assume that others are trustworthy unless given cause to doubt it may assist fraud. (c) Institution In the sense that they cannot be explained by the actions of identifiable persons, the frauds that perhaps pose the biggest risks to the stability of the economy and the government are essentially faceless. Institutional fraud puts the entire financial system at danger, from political "machines" that live on bribes and kickbacks to corporate cultures that use rigged bidding procedures and faked accounting. This is due to the fact that institutions offer routines on which expectations might be established and that economic actions are based on exceptions (Chuchuen et al. 2015). Fraud can destabilize economic institutions and bring down the entire financial system. Institutional contexts can support fraud by offering very alluring structural conditions with lots of possibilities and rewards and few risks. The scale, legitimacy, and complexity of these institutions' structures are all present (Gavett et al. 2017). The first two elements make it difficult to identify who is responsible for acts or make it simple to conceal wrongdoing; the third component offers cover by exempting some institutions from suspicion or subjecting them to little regulatory oversight. (European Commission 2020). Hypothesis Three hypotheses were developed for the study, and these served as the research's direction: H1: The relationship between the perpetrator capability and its psychosocial behaviours is not significantly positive. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 116 H2 There is no discernible link between the risk of a desire to continue a particular lifestyle and its psycho-social behaviours. H3 There is no discernible relationship between psycho-social behaviours and enticing potential for fraud in vulnerable contexts. METHODOLOGY The study adopted a survey research design. This design is considered suitable and appropriate because of its ability to view comprehensively the major questions raised in the research. The population of this study was the 274 auditing firms in South- South geo political region of Nigeria. However, of interest is focused on the auditing staff based on their practical knowledge on the subject matter. Using Taro Yamane 1967 a sample of 162 were selected from the target population. Simple random sampling technique was employed and a 95% confidence level is assumed. The sample for the study was; firstly, by applying statistically the Taro Yamane formula in determining the sample for the study as follow: Where N= Population 𝑁 1 + 𝑁(𝑒)² e= Limit of tolerable error is 0.5% n= Sample size 1= constant To get a sample from the population n= 274 1 + 274 (0.5)2 n = 162 The study made use of the questionnaire to collect the data. Two hundred and seventy-four (274) copies of questionnaire were administered out of which one hundred and sixty-two (162) copies where returned representing 59.12% Model specification The functional form of our model is here by expressed PSB = f (PERCA, LIFSTYLE, ENVIRO)…..…………………………………….…. (1) The multiple regression with an error term (µ) is expressed in equation……………..(2) PSB = a0 + β PERCA + β LIFSYLE + β ENVIRO + µ Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 117 Where: PSB = Psycho-social behaviours PERCA = perpetrator capability LIFSYLE= lifestyle ENVIRO = vulnerable environments ESTIMATION RESULTS AND DISCUSSION OF FINDING Data Analysis and results The data collected were analyses as show in the tables Table 1. Spearman Rank Correlation PSB PSB Sig. PERCA Sig. LIFSYLE Sig. ENVIRO Sig. PERCA LIFSYLE ENVIRO 1 .0 0.121* 1 0.002 .0 0.561* -0.71 1 0.000 0.452 .0 0.108* -0.278* 0.34 1 -0.007 0.003 -0.097 .0 Source: Researchers computation 2022 Analysis of result and Findings From table 1 above the correlation coefficients of the variables were examined. However, of particular interest to the study is the correlation of PSB Psycho-social behaviour with PERCA (perpetrator capability), LIFSYLE (lifestyle) and ENVIRO (vulnerable environments). The finding from the study to hypotheses 1 show that PSB is positively and significantly corrected with PERCA @ (r= 0.121 p< 0.05) which suggest that the perpetrator capability could be a strong indicator of the Psycho-social behaviour of a fraudster in aiding fraud occurrence in firms and that large firms are open to many of these frauds. This shows that there is a significant positive correlation between the perpetrator capability and its Psycho-social behaviours. The research found in hypotheses 2 a positive and significant association between PSB and LIFSYLE @ (r= 0.561 p< 0.05). This implies that the perpetrator lifestyle due to the desire to attain and maintain certain lifestyle standards is a danger from the Psycho-social behaviours of fraudulent person. From hypotheses 3 ENVIRO was observed to be positively and significantly correlated with PSB @ (r= 0.108 p< 0.05) meaning that the Psycho-social behaviours of a perpetrator make him to identify vulnerable environment for fraudulent reward. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 118 Table 2. Questionnaires administers to the population Please tick where appropriate in the space provided using any of these options below; S/N 1 Questions The estimate of opportunity, including the low probability of being apprehended, depends on the criminal's psychological and behavioral calculus. 2 When trusted individuals believe they have a financial issue that cannot be discussed and are aware that this issue may be covertly remedied by breaching the position of financial trust, they turn into trust violators. 3 Vulnerable settings and opportunistically interpretable events that individuals and organizations see as presenting alluring possibility for illegal reward with little apparent risk of detection or punishment present fraud chances. 4 The urge to preserve or acquire a particular lifestyle is fueled by the fact that wealth and success have become markers of social status. 5 Psycho-social behavioural factors present in fraud triangle are not necessary and sufficient conditions for the occurrence of fraud unless the perpetrator has the capability. Options (1) Strongly agree ( ) (2) Agree ( ) (3) Undecided ( ) (4) Strongly disagree ( ) (5) Disagree ( ) (1) Strongly agree ( ) (2) Agree ( ) (3) Undecided ( ) (4) Strongly disagree ( ) (5) Disagree ( ) (1) Strongly agree ( ) (2) Agree ( ) (3) Undecided ( ) (4) Strongly disagree ( ) (5) Disagree ( ) (1) Strongly agree ( ) (2) Agree ( ) (3) Undecided ( ) (4) Strongly disagree ( ) (5) Disagree ( ) (1) Strongly agree ( ) (2) Agree ( ) (3) Undecided ( ) (4) Strongly disagree ( ) (5) Disagree ( ) Source: Researchers computation 2022 Implications for Today Accounting Profession The psychological and sociological behaviours of the fraudster as affecting accounting profession has being receiving attention in the public domain. The society and the public keep asking a particular question ‘ where are the professional accountant where fraud is committed?’ this implies that they the public expect so much from the accounting profession which is one of the major stakeholder in fraud management, detection and prevention. The profession has a role to play by way of implication and adherence of ethical, accounting and professional standards. The effect of an action that fraud has occurs or will likely not occurs is an indication on the society confidence on the integrity of the accounting profession, so the professional accountant should refrain from engaging in or supporting any activities that would discredit the profession. It was professor Osisioma who once said “Accountants who lack integrity destroy standards; they destroy the profession and ultimately they destroy the nation”. The accounting professions need to strengthen her professional codes of ethics, accounting standards, auditing standard guiding the accounting discipline. Engage in training, workshop and retraining of professional, the forensic accountants, auditors, and fraud examiners on the latest, new and contemporary issues emanating in the profession. (Kadoyo, Khan, Narumoto, & Watanabe, 2021). keeping up Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 119 with various fraud-fighting strategies, including the efficient implementation of internal control systems, an ethical corporate governance structure, a whistleblower policy, the use of internal and external auditors, an audit committee, and forensic accountants. To effectively supply their services and perform their obligations, professional auditors should exercise necessary caution and professional scepticism, as doing so will enable them to identify fraud and disclose serious misstatements. CONCLUSION AND RECOMMENDATIONS Fraud has been one of the greatest dangers to economic and political stability in several countries and the behaviour of identifiable actors is still faceless, in the sense that the perpetrators seem getting away with the crime even those caught is been let off the hooks. The psychological and sociological aspects of fraud and the behavioural factors present in fraud triangle are not necessary and sufficient conditions for the occurrence of fraud unless the perpetrator has the capability. The study findings also agreed that lifestyle and environment are correlation of the Psycho-social behaviours of the perpetrators. The study recommended that an active, strong and proper supervision of internal control system will put to serious check action of fraudulent activities ‘’a stitch in time saves the nine’’. REFERENCES Abdullahi, R. & Mansor, N. (2015) Fraud Triangle Theory and Fraud Diamond Theory. Understanding the Convergent and Divergent For Future Research. International Journal of Academic Research in Accounting, Finance and Management Sciences Vol. 5, (4), pp. 38–45 Association of Certified Fraud Examiners (ACFE). (2016). “Report to the Nation on Occupational Fraud and Abuse,” Austin, TX. Awang, Y., Ismail, S., Rahim, A., & Rahman, A. (2016). “Measuring the Potential for Financial Reporting Fraud in a Highly Regulated Industry,” The International Journal of Accounting and Business Society (24:1), pp. 81–95. Azam, M. R. (2018). Theory Application: Why People Commit Fraud. International Journal of Management, Accounting and Economics, 5 (1), 54-65. Bassem, I. & Yustrida, B. 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Asia Pasific Fraud Journal, 1,(2) 177-188 Omar, M., Nawawi, A., & Salin, A.S.A.P. (2016).The causes, impact and prevention of employee fraud: A case study of an automotive company. Journal of Financial Crime. 23(4), 1012-1027. Retrieved October, 2017, from Pro Quest database. Petty, R. E., & Briñol, P. (2015) Emotion and persuasion: cognitive and meta- cognitive processes impact attitudes. Cognit Emot 29(1):1–26 Ramamoorti, S. (2016). The Psychology and Sociology of Fraud. https://doi.org/10.2308/iace.2008.23.4.521 Sridharan, U. & Hadley, L. (2018). “Internal Audit, Fraud and Risk Management at Wells Fargo,” Journal of the Academic Business World (12:1), pp. 49–53. Xiao, J., J., and Porto, N. (2021). Financial capability and wellbeing of vulnerable consumers. J. Consum. Aff.56, 1004-1018.doi: 10:1111/joca.12418 Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 121 Xu, L., Wang, J., Xu, D., and Xu, L. (2022). Integrating individual factors to construct recognition models of consumer fraud victimization. Int. J. Environ. Res. Public Health 19:461. Doi:10:3390/ijerph19010461 Yang, S., Su, K., Wang, B., and Xu, Z. (2022) A coupled mathematical model of the dissemination route of shortterm funding fraud. Mathematics 10:1709. doi:10:3390/MATH10101709 Young, T. R. (2020) Drama of Social Life: Essays in Post-Modern Social Psychology. New Brunswick, NJ: Transaction Press. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 122 Hristo Grozdanov KEY ASPECTS OF STRATEGIC INFRASTRUCTURE DEVELOPMENT Dr. Eng. Faculty of transportation engineering, University of architecture, civil engineering and geodesy, Sofia, Bulgaria Corresponding author: ABSTRACT e-mail: grozdanov@institutetsi.com The strategic infrastructure is the backbone of every transport network. The development in the last several years changed its course following the geopolitical situation and the enormous growth of electrical and self-driving cars. It is no longer enough to connect borders, we need to connect them in a certain way to ensure that the transport from one country will not face difficulties to the final point. For example, in the current situation if we travel between the farthest points in Europe we will cross different roads, with different characteristics and different rules, but we will reach the final point. If we consider traveling with the electric car it will be impossible as we will need a charging station every few hundred kilometres. To meet society's needs we need to reorganize the ways we are thinking of the strategic infrastructure. ORCID: https://orcid.org/0009-00056962-3649 Published First Online: 24.06.2024 Pages: 123 – 129 DOI: https://doi.org/10.37075/JOMS A.2024.1.10 KEYWORDS: Strategic infrastructure, Electric cars, Self-driving cars, Challenges in front of road infrastructure JEL: 018, 021, R58 INTRODUCTION During the last few years, we faced different difficult situations all of which affected society. Maybe the worst hit was on the transport sector. During COVID-19 we saw that we cannot reorganize the traditional routes in such a manner not to have a huge impact on the free travel of the goods and people. We were unable to transport goods that were transported by road before COVID-19 on railways or another type of transport. We were unable to transport people who were transported by plane before on any other type of transport. So, the goods and people stopped to travel. Of course, a huge impact has on the restrictions all countries imposed, but if we had good connections to different kinds of transport the impact would be smaller. After COVID the situation started to normalize but all the research shows that it will never be the same again (Tzonevska, 2022). The prices will stay higher (than before COVID), the transport, especially road transport will need decades to come back to the level before. The second big problem we faced was the war in Ukraine. Ukraine cannot transport its grain any other way than by ship. Every problem on the route causes a huge impact. A lot of people are starving because of that and the price of the grain becomes unstable. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 123 Now when we are talking about what will happen after the war we are saying that we must build transportation corridors to Ukraine to help it to recover faster. This once again shows that the infrastructure is not nearly enough. So is the infrastructure planned in the best way? Maybe if we consider the times before COVID and the war, but now we must be sure that during the last 50 or more years, when we planned our infrastructure we didn`t take all the risk into account. The goal of the paper is to examine the risks we are expected to face when planning the strategic infrastructure and to give a different view of the aspects we are usually missing or not taking into consideration. 1. Literature review Strategic infrastructure development is essential for building connectivity (Tsonkov & Petrov, 2022). The improvement of communication networks and connections between different territories leads in turn to economic and social change in the long term (Ray, 2015). In the context of digital change, a digital connectivity approach is increasingly being adopted (Tsonkov, Petrov, Berberova-Valcheva, 2023). Speaking of strategic infrastructure development, it is necessary to analyze and evaluate its various aspects. These aspects relate to the advantages of forming an adequate framework for managing the overall development process (Too, 2010); strategic planning in the context of sustainable development (Malekpour, Brown, De Haan, 2015); environmental impact assessment, and evaluation of infrastructure projects (Morrissey, Iyer-Raniga, McLaughlin, Mills, 2012). All these aspects are largely combined in the choice of a model for the territorial development of regions to improve connectivity between them (Tsonkov, 2022). This process is also directly manifested in urban development and mobility models (Petrov, 2021). In a broader context, we can highlight a strong link that exists between strategic infrastructure development and regional development of national space (Shkarlet, Ivanova, Popelo, Dubyna, Zhuk, 2020). The Bulgarian scientific literature on the issue related to the development of strategic infrastructure can be highlighted in the analyses of authors such as Petrov and Tsonkov. In their works, several policies and concrete solutions are proposed in the area of strategic infrastructure development. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 124 Figure 1. TEN-T network and Corridor № 9. According to the authors, the route will play the significant role of the crossing point of two of the ten Pan-European corridors - Pan-European Corridor VII (Danube), which connects Western Europe with the Black Sea and Central Asia, and Pan-European Corridor IX, which connects Scandinavia and the Russian Federation with Southern Europe and Asia Minor, respectively. As a result of its geographical position, more than 80% of the transit of goods between Romania, Bulgaria, Greece, and Turkey, or about 23 billion euros per year, passes through Bucharest-Giurgiu-Ruse and Craiova-Beket-Orjáchovo (Tsonkov & Petrov, 2023). Figure 2. Parallel route of Corridor № 9 Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 125 2. THE RISKS WE WILL FACE SHORTLY What we will face in the next few years? Are we ready and do we learn our lessons? When searching the scientific literature there are not enough papers examining the future risks. If we search deeper with a view from the year 2019 we will see that there are very few papers examining the strategic infrastructure and its ability to be replaceable following different situations including war. So the situation now is pretty much the same, we don`t know the risk, or we don`t care about them and definitely, we are doing nothing to face the future with our heads up. But what do we expect from the future, what new we face? Mainly in road transport, we are in front of a big change. The automotive industry is changing in such a big manner that maybe only the first cars at the end of the XIX century had on the transport. We will need to fully change our approach and understanding of the roads to meet the car`s needs. Of course, we are not ready. Even in a highly developed region like the USA and Europe, there are places we can`t reach with electric vehicles. Of course, the situation is worse in lower-developed regions. Some research (Figure 3) shows that the growth of electric cars will be faster than the growth of new charging stations, which will even make the problem bigger. The road authorities are still planning, building, and maintaining the infrastructure using standards that don`t cover the needs of electric cars. Figure 3. Number of public chargers and number of electric vehicles (Figure by EC) Parallel with electric cars shortly we will have fully autonomous road vehicles. Again, we don`t know how to build the roads to be suitable for that kind of vehicle. We even don`t examine the Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 126 impact of autonomous vehicles on the roads and the people, to have a base point from which to plan the new roads and reconstruct the old ones. Maybe the most examined future problem is the one of climate change and its impact on the roads, so this paper will not focus on it (Popova, Katsarov, Antov, 2019). 3. THE CHANGES IN THE STRATEGIC INFRASTRUCTURE The strategic infrastructure is the backbone of the transport network. It includes the roads, railways, airports, ports, and the connections between them. All other infrastructure is built by the plans for strategic infrastructure. But is the planning of strategic infrastructure flexible enough to cover the needs? The simple answer is no, because of the costly procedures and often the differences between countries it must cross. Let`s examine one transport corridor. The corridor N8 Durres – Skopie – Sofia – Plovdiv – Bourgas – Varna was originally developed to connect three main ports in Europe – Durres, Bourgas, and Varna and of course Albania, North Macedonia, and Bulgaria as a country with bad connections between them (Katsarov, 2019). This corridor, before COVID and the war in Ukraine, was part of the plans of the EU and Albania, North Macedonia, and Bulgaria, but never actually anything was done for it to be built. Now when we started to talk about the reconstruction of Ukraine after the war and how we will do it the main part was with the missing infrastructure and of course, the connection with the ports is essential. So to the corridor was “attached” the port in Brindisi and the connection from Varna to Ukraine (Tsonkov, Petrov, Berberova-Vulcheva, 2021; Tsonkov, 2023). Figure 4. Corridor №8 – Source Bulgarian Ministry of Transport and Communications In less than a year the Bulgarian government started the following procedures: 1. Technical design of the missing highway section between the Macedonian border and the Struma Highway Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 127 2. Road safety assessment for the Rila highway, which continues the highway from the Macedonian border to the Struma highway, to the Trakia highway (Second Macedonian Road Congress 2022) 3. Road safety assessment for building additional lanes for Trakia highway in the section from Sofia to Maritsa Highway (after Plovdiv) 4. Technical design for Cherno more highway, connecting Bourgas and Varna 5. Technical design and road safety assessment for two sections for reconstruction of the road from Varna to Romania (Ukraine) 6. The Three Seas Initiative investment fund bought a major part of the port of Bourgas. So the war in Ukraine was the trigger to start all of those, but what would happen if we already had it? Maybe we would be in a position to help Ukraine faster and better, maybe we would have the possibility to transport the Ukrainian grain via this corridor, and so on. Pretty much the same is the situation with the connection North-South in the eastern part of Europe, A connection between Bulgaria (and Greece) with the Baltic countries was needed connections but work done on it, not before 2021 when the Three Seas Initiative summit and business forum held in Sofia it was made a main topic (Tsonkov, 2022). Later it was unofficially added a connection to Ukraine. In the term “Corridor” we added digitalization. This is a huge step towards changing our minds and our understanding of the infrastructure. The step is huge but it is not enough we need to understand that we must change our regulations and standards to have the infrastructure the society needs. CONCLUSION Now facing all that and understanding that we must plan our transportation infrastructure considering all the possibilities we need to establish a new way of understanding transport. From now further, when we talk about transport we must consider everything – the road, the connections, the intermodality, the digitalization, all the possible scenarios even the least likely. For that to happen we need to: 1. Reconsider our vision and understanding 2. Rewrite our strategies 3. Change our standards 4. Building the infrastructure in a way that guarantees that all the goods and people will have the possibility to travel on a different transport mode at the same cost This must be agreed between all the countries, assuring that traveling between borders will not face different rules and different kinds of infrastructure. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 128 REFERENCES Tzonevska, D. „Effectiveness of financial support for recovery from COVID-19 in road sector “, International scientific conference on economy, society and transformation: Covid-19 consequences, their understanding and dynamics March 30th, 2022, Sofia. Сп. Научни трудове, том 5/2022 г. SSN (print): 0861-9344, ISSN (online): 2534-8957 Tsonkov, Nikolay & Petrov, Kamen. (2022). Bulgaria's role in building cross-border connectivity in the SouthEast European space, International Relations Journal, vol. 5-6. Ray, N. (Ed.). (2015). Strategic infrastructure development for economic growth and social change. IGI Global. Tsonkov, Nikolay, Petrov, Kamen & Berberova-Valcheva, Tzvetelina. (2023). Intelligent Development and Connectedness in the Context of the Regional Development. Yearbook of UNWE. Vol. 2. 119-133. 10.37075/YB.2022.2.10. Too, E. G. (2010). A framework for strategic infrastructure asset management. Definitions, concepts, and scope of engineering asset management, 31-62. Malekpour, S., Brown, R. R., & De Haan, F. J. (2015). Strategic planning of urban infrastructure for environmental sustainability: Understanding the past to intervene for the future. Cities, 46, 67-75. Morrissey, J., Iyer-Raniga, U., McLaughlin, P., & Mills, A. (2012). A strategic project appraisal framework for ecologically sustainable urban infrastructure. Environmental Impact Assessment Review, 33(1), 55-65. Tsonkov, Nikolay & Tsonkov, Nikolay. (2022) Regulatory models for territorial development. Publishing House - UNWE. Petrov, K. (2021) Geo-urban systems and urban development, Publishing House - UNWE. Shkarlet, S., Ivanova, N., Popelo, O., Dubyna, M., & Zhuk, O. (2020). Infrastructural and regional development: theoretical aspects and practical issues. Studies of Applied Economics, 38(4). Popova, V., Katsarov, I., Antov, A. (2019) PIARC, Abu Dhabi „Impact of climate change on transport infrastructure. Recommendations for adapting the road infrastructure in Bulgaria and its neighboring countries to climate change “. Katsarov, I. (2019) Strategic Transport Corridor №8; Scientific Journal Patishta, Republic of North Macedonia, issue 11. Tsonkov, N., Petrov, K., Berberova-Vulcheva, Tsv. (2021). Overcoming regional imbalances in the Black Sea region by introducing a new strategic planning approach. International Relations Journal, vol. 6, pp 19-32. Tsonkov, N. (2023). On the necessity of shaping Bulgarian national interests in terms of global uncertainty. International Journal on Information Technologies and Security, vol.15, no.2, pp. 109-120. Second Macedonian Road Congress 2022, "Road Safety Assessment Practices and their Implementation in Bulgaria", V. Katsarova Tsonkov, N. (2022) Bulgarian transport corridors through the prism of the Three Seas Initiative. International Relations Journal, vol. 3-4, pp 63-68. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 129 Hristo Grozdanov Dr. Eng. Faculty of transportation engineering, University of architecture, civil engineering and geodesy, Sofia, Bulgaria ROAD SAFETY AS FUNDAMENT IN ROAD INFRASTRUCTURE PLANNING ABSTRACT Corresponding author: e-mail: grozdanov@institutetsi.com ORCID: https://orcid.org/0009-00056962-3649 Published First Online: 24.06.2024 The road safety is a key indicator for the development of the society. May it be a key factor in the development of the road infrastructure? How will it affect the costs of road planning, construction, and maintenance? Will the “saved costs” from lowering the road accidents cover the higher cost of building and maintaining the roads? All those questions are difficult to answer; some seem even impossible. Nevertheless, it is important to analyse the problem, establish theoretical models, and formulate hypotheses. So we need to analyse the correlation between road safety, all the costs for road infrastructure, and the social effect in a theoretical manner. The paper aims to formulate the basis of the problem, and the potential solutions, analyse the needed data, and establish the theoretical models. Pages: 130 – 136 DOI: https://doi.org/10.37075/JOMS A.2024.1.11 KEYWORDS: Road safety, Road infrastructure planning, Costs for road infrastructure JEL: 018, 021, R58 INTRODUCTION The scale of external costs generated by transport is steadily increasing. Transport users do not cover a large part of the costs of noise pollution, air pollution, the costs of traffic congestion, and traffic accidents. The costs of traffic accidents are partially covered, mainly through insurance policies, but a large part is still covered by society. In the process of internalizing externalities, the most relevant external costs need to be identified and valued. Although external costs do not have a definite market price, they are partly observed in insurance policy costs, hospital charges, administrative costs, and quality of life losses. An important part of these externalities is traffic accidents, which are a major factor in the stability of road safety. In this sense, transport accidents are a serious problem for all modes of transport. Their consequences can be horrific, and we know that people are prepared to pay a lot to reduce their own risk of being the victim of a traffic accident. The cost of road accidents worldwide and in Europe is enormous. Part of the problem with road accidents can be explained by the fact that the user, when making a decision, does not take into account all the costs associated with the journey and, in this case, with the accident, i.e. some of the potential damage is external to the user. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 130 All this raises important questions such as - How do we plan the road infrastructure? Which is the fundamental point? What is more important – the costs, the quality, the sustainability, the road safety, the society, the policies? There is not one answer to those questions. Of course, the roads are built for society, and from that point of view, society is the most important. But how do we cover the society's needs? If we build highways everywhere with the best quality is society ready to pay for them? If we built the most sustainable road, will we have the best connections and enough comfort? If we build roads without road accidents will we be ready to cover all the costs and face all the restrictions? All of those questions lead to more questions than answers. There is not a single rule which will meet the criteria. But how do we need to plan our road infrastructure, there must be if not one rule, then a system of rules that lead to the most efficient use of the resources. So, we must formulate what are the fundamental factors for the efficient use of the resources for road infrastructure. 4. METHODOLOGY Road safety analyses are essential in the overall strategic planning process for road infrastructure development. At the heart of this process is the development of an adequate and accurate methodology for calculating external costs, including those from road accidents. In this respect, the goal of the paper is to examine society's needs and how engineers have to change their approach to meet these needs. The author uses an interdisciplinary approach, costbenefit analysis, and comparative analysis to illustrate the change in approach to road safety research. 5. Literature review Road traffic accidents (RTA) are a major but neglected global health problem. They require a clear, reasoned, and coordinated approach for effective prevention. Of all the problems society has to deal with globally, road transport is one of the most complex and dangerous. Road traffic accidents are the eighth leading cause of death, accounting for 3.2% of all deaths worldwide (according to a global study in 2012). Road accidents happen in a split second, but their consequences can last for months, years, or even the rest of your life. The vast majority of those injured in road traffic accidents recover fully, but others never recover and suffer from various types of disability throughout their lives. In Spain, for example, according to current research, 15% of road traffic accident survivors must be treated in a hospital for at least one day, 32% must be out of hospital for up to three months, and 29% must be out of work for a longer period. In addition to the loss of life or reduced quality of life, traffic accidents carry many other consequences for survivors such as legal, financial, and psychological implications. In May 2017 the World Health Organization released a report (Bachani, Peden, Gururaj, Norton, Hyder, 2017) on the effect of road traffic accidents, key facts from it are: ➢ Around 1,250,000 people die each year after a road traffic accident and around 50,000,000 people are injured Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 131 ➢ Road traffic accidents are the leading cause of death among people aged 15 to 29, people aged 15 to 44 account for 48% of global road traffic accident fatalities. 73% of road traffic accident victims are men. ➢ 90% of the world's road deaths are in poor and developing countries, even though only 54% of cars are located there ➢ Nearly half of those killed on the world's roads are pedestrians, cyclists and motorcyclists ➢ Road accidents cost most countries 3% of their gross domestic product. Comparative analysis shows that the problem with traffic safety stayed stable during the period from 2017 to 2023. The proof of this thesis is the statistics for 2023 of the World Health Organization (WHO, Road Traffic Injuries, 2023). According to the organization's data, almost 1.19 million people die each year as a result of road traffic crashes. Road traffic accidents and injuries are in the first place. These injuries cause death for children and young adults aged 5– 29 years. Additionally, 92%t of the world's fatalities on the roads occur in low- and middleincome countries, even though these countries have around 60% of the world's vehicles. More than half of all road traffic deaths are among vulnerable road users, including pedestrians, cyclists and motorcyclists. The estimation of the organization shows that road traffic crashes cost 3% of the gross domestic product of a single state. Road safety is a much-debated issue. In recent years, several authors have addressed different aspects. Quite a few of them concentrate on how to calculate accidents in different countries and cities. For example, Sina Rejali, Kayvan Aghabayk, Mohammadali Seyfi, and Oscar Oviedo-Trespalacios investigate the factors for road accidents in New York using a temporal analysis, based on random parameters logit model (Rejali, Aghabayk, Seyfi, OviedoTrespalacios, 2024). Other authors focus on driver behavior and how it affects road safety (Moslem, Farooq, Esztergár-Kiss, Yaseen, Senapati, Deveci, 2024). Another major line of research focuses on using new information technology and Internet-based surveillance and evaluation technologies to analyse road safety; and constructing models for evaluation (Farrag, Heikal, Ahmed, Osama, 2024; Sarkodie, 2024). There are also analyses in the available literature on road safety and how it is affected by geographical and climatic conditions, especially changes and specifics over time (Hasan, Mahmud, Akter, Sakib, 2024). The planning of strategic infrastructure in Bulgaria is influenced by the analyses of the most problematic sections of the road network and the opportunities through its construction to solve problems such as improving connectivity and regional development of Bulgarian territories (Tsonkov, Petrov, 2023; Tsonkov, Petrov, 2023; Tsonkov, Petrov, Berberova-Valcheva, 2023). Road safety is also related to strategic planning and construction of road infrastructure in municipalities and improving urban mobility (Nikolova, Petrov, Tsonkov, Zhecheva-Radeva, Grozdanov, 2023). Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 132 All these studies show the importance and relevance of road safety and the need for future research in road safety to improve the strategic planning process for road infrastructure. 6. Road safety and strategic road infrastructure planning Traffic safety encompasses all components of the accident - person, vehicle, road, and environment. Each of these components contributes to crashworthiness and reducing the impact of any one of them will improve road safety. In this sense, by studying road safety, respectively the role of the road on accident rates, additional knowledge and tools will be gained and used to improve road safety. The external costs due to traffic accidents should be internalized and the funds used to improve the road to reduce traffic accidents. This can happen both globally in the definition of national transport policies and strategies and locally in the definition of road design elements. In practice, this means that adding the external costs of road traffic accidents to analyses of the effectiveness of road infrastructure investments can turn a project from ineffective to cost-effective or re-prioritize the construction and maintenance of the road network. The same applies to road design elements, again taking into account the economic impact of external costs due to road traffic accidents, it may be that a certain element is more profitable than another. We don`t need deep research to find that if the costs are lower, the quality and all other elements are at the lowest point. If we have high quality, we must pay a higher price and society has to be deprived of something else (Nikolova, Tsonevska, 2019). If we are making policies for example with neighbouring countries, we must be ready for compromises. All those correlations are clear. But are the factors mentioned above that may be correlated to all of the others? The costs are the one. That is the reason why during the last decades everything we do for the roads is explained with the costs. We are not building that tunnel because it is very costly; We are building that road because it will help the region to grow economically; We are connecting those transport modes because it will help them grow and lower the costs etc. But what about the other elements? When we are building new roads, we are bringing pollution, noise, and road accident risks (if we don`t have roads, we will not have road accidents). The same can be interpreted the other way – if we build that tunnel we will lower the pollution and noise from other roads, and we will reduce the risks of road accidents. So where is the point that overturns a project from “not to be built” to “to be built”? Do we miss anything when planning? Maybe the answer is yes and not because the scientific research says that, but because we are seeing growing discontent in society towards the road infrastructure. It seems like everything we do is not enough to meet society's needs. Every road is not comfortable enough, or safety enough, green enough, or too costly. So maybe we need to change the approach. But changing the approach is not easy even more we are in a very conservative business under constant monitoring from society. So, what is the best approach to “change the approach”? What I witness is that society explains very well what it wants but it is not happy when it receives it. For example, in urban planning all over the world, there are huge groups of pedestrians and any kind of organization in their favour and the most common thing they want are pedestrian crossings or traffic lights. They assume that if we have pedestrian crossings or traffic lights it will be easier and more safety for pedestrians to move from one point to another, so what they want is not a crossing or traffic lights, but more comfortable and safe movement. The same with Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 133 car drivers, they want wider roads or more parking places, assuming that this will make their trip faster and comfort, so they want a faster, more comfortable, and safer trip. But all of them didn`t mention what they wanted but what are the solutions. Are the users those who can give the solutions or do they only need to address the problem? Figure1. Vision zero “Shared responsibilities”. Source:https://visionzeronetwork.org/fundamentals-of-the-safe-system-approach/ According to picture 1 which is fundamental for the Vision Zero approach we have shared responsibilities which is translated as “as soon as the individuals have responsibilities to protect themselves the ones involved in design, construction and maintenance of the infrastructure are responsible to make the road safety enough”. At the top of the decision-making process nevertheless are the policy makers. The usual procedure is that the policymakers (after consulting with the planners) propose policies to the society (individuals), and then the society accepts or rejects them (Katsarova, 2022). If the policies are rejected the policy makers rewrite the policies and propose them again to the society. When society accepts them the policies are implemented and we are constantly checking for mistakes from the users which we later try to minimize by making new policies the same way. This circle is repeated again and again the same way and we expect different results. The inefficiency of that approach was shown during Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 134 the decade of road safety 2011-2020 as we didn`t manage to go anywhere near the targeted reductions. The new decade 2021-2030 was presented in September 2020 by the UN with the same goal of reducing road traffic deaths by 50%. As of the date of this paper, we are far away from that goal and we will not achieve it again. Those facts must have our attention and make us think about where are our mistakes and what we have to do to achieve our goals. At the same time, according to NSI data, in 2019, 6,730 serious traffic accidents were registered in Bulgaria, with 628 killed and 8,499 injured. Compared to the previous year (2018 ), the number of traffic accidents increased by 0.7%, the number of deaths by 2.9% and the number of injuries by 0.4%. Serious attention should be paid that ¼ of the traffic accidents are "pedestrian hitting". Of the 628 killed and 8499 injured, 162 killed and 3611 injured were women, and 466 killed and 4888 injured were men. The country, in 2019, is following the global trend - three out of every four people killed are men, with the main casualties due to road accidents being people of working age - 354 killed and 4,722 in the 25-64 age group. 7. RESULTS and Conclusion We need a new approach (Katsarov, 2019). The critics of the current one is more and more. Nevertheless, we must learn from it and not change it in full but “rearrange it” and put the users on the top. Let`s put the prevention on the top and stop looking backward. The planners and the policymakers are obliged to put the individual's needs in front and plan taking it into account. Society wants simple improvements like more comfort, more user friendly, and mainly safer roads and streets. It is not difficult to ask the users and understand their needs. This approach is usual in other industries where the „demand determines supply”. If we think of industries close to the roads like automotive we will see that this approach is what drives that industry. The same is true with the business related to the construction sector like material production and technologies and machines needed for the construction. That is why we have better and better cars, better machines and materials, but not better roads. Changing the approach doesn`t need much resources it needs only to understand that we are those who supply not those who demand! The conclusion is clear – we must meet society's needs and the society what safer roads. Of course, the experts and planners have to explain what this will cost, and what we will need as time, expertise, resources, and so on, but the approach is clear. The users, the individuals, and the society are on the Top. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 135 REFERENCES Bachani, A., Peden, M., Gururaj, G., Norton, R., & Hyder, A. (2017). Road traffic injuries. https://www.who.int/news-room/fact-sheets/detail/road-traffic-injuries Rejali, Sina & Aghabayk, Kayvan & Seyfi, Mohammadali & Oviedo-Trespalacios, Oscar. (2024). Assessing distracted driving crash severities at New York City urban roads: A temporal analysis using random parameters logit model. IATSS Research. 48. 147-157. 10.1016/j.iatssr.2024.03.003. Moslem, Sarbast & Farooq, Danish & Esztergár-Kiss, Domokos & Yaseen, Ghulam & Senapati, Tapan & Deveci, Muhammet. (2024). A Novel Spherical Decision-Making Model for Measuring the Separateness of Preferences for Drivers’ Behavior Factors Associated with Road Traffic Accidents. Expert Systems with Applications. 122318. 10.1016/j.eswa.2023.122318. Farrag, Mahmoud & Heikal, Ali & Ahmed, Mohamed & Osama, Ahmed. (2024). Investigation of road safety using crowdsourcing and internet-based surveys: Cairo, Egypt, as case study. Advances in Transportation Studies. April 2024. 173-190. Sarkodie, Kofi. (2024). MAPPING VEHICULAR ACCIDENTS AND CASUALTIES ON THE OHIAMAADWEN -GOMOA ODUMASI ROAD USING GEOGRAPHIC INFORMATION SYSTEM. 10.13140/RG.2.2.27801.22888. Hasan, Md & Mahmud, S. M. & Akter, Ayesha & Sakib, Faisal. (2024). ADVERSE WEATHER IMPACT ON ROAD CRASHES: A COMPARATIVE ANALYSIS BETWEEN BARISHAL AND KHULNA DIVISION. Tsonkov, Nikolay & Petrov, Kamen. (2023). On the need for connectivity and a new strategic approach to building road infrastructure in the Balkans. IOP Conference Series: Materials Science and Engineering. 1297. 012019. 10.1088/1757-899X/1297/1/012019. Tsonkov, Nikolay & Petrov, Kamen. (2023). Possibilities for the construction of a parallel route of the European transport corridor No 9 through Romania, Bulgaria, and Greece. IOP Conference Series: Materials Science and Engineering. 1297. 012018. 10.1088/1757-899X/1297/1/012018. Tsonkov, Nikolay & Petrov, Kamen & Berberova-Valcheva, Tzvetelina. (2023). Intelligent Development and Connectedness in the Context of the Regional Development. Yearbook of UNWE. Vol. 2. 119-133. 10.37075/YB.2022.2.10. Nikolova, Ch., Petrov, K., Tsonkov, N., Zhecheva-Radeva, I., Grozdanov, H. (2023) Spatial and Transport Modeling in an Urban Environment at the Municipality Level (Stara Zagora Municipality Example), Publishing House of UNWE, Nikolova, Hr., Tsonevska, D. Increasing road safety through the application of road management and monitoring systems, XIIth National Scientific Conference with International Participation, Nessebar, 10-12 October 2019, Proceedings, ISSN: 2683-0752 https://visionzeronetwork.org/fundamentals-of-the-safe-system-approach/ Second Macedonian Congress on Roads, 2022, "Road Safety Assessment Practices and their Implementation in Bulgaria", V. Katsarova Katsarov I, 2019, ARSA – A New Model For Road Safety Analysis And Assessment At Intersections In Urban Environments, XII National Transport Infrastructure Conference With International Participation Proceedings Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 136 Mihail Stavrev PhD student in the Department of Public Administration, Faculty of Management and Administration, UNWE, Sofia, Bulgaria BULGARIAN CIVIL SOCIETY – POLITICAL PARTICIPATION AND APATHY ABSTRACT This article aims to analyze the contemporary manifestation of civil society in Bulgaria through the prism of political participation and apathy among citizens. For this purpose, the concept of civil society and the need for active political citizens have been examined successively; an analysis of the political participation of Bulgarian citizens was made, through a study of electoral activity, membership in political parties and their participation in the electoral process as advocates; finally, the main reasons for the relatively high levels of political apathy and anomie among Bulgarian society, in relation to the role of political parties, are presented. Corresponding author: e-mail: mihail.stavrev@unwe.bg Published First Online: 24.06.2024 KEYWORDS: civil society, political participation, voter turnout, membership in political parties, apathy Pages: 137 – 145 DOI: https://doi.org/10.37075/JOMS A.2024.1.12 JEL: K15, K16, D72 INTRODUCTION In the last thirty years, there has been a revaluation of a number of values in Bulgarian society, social orientations are also changing, which, however, represents a serious problem for civil society. The democratic changes of the 1990s destroyed old values and laid the foundations for new ones but this process affected the generation that grew up during that period. For some of those born after 1989, it can be said that they are indifferent to legal issues, apathetic to the country's political problems, and the absence of basic orientations and disturbed socialization processes lead to an increased number of deviant manifestations among adolescents. The disturbed process of legal and political socialization of the "children of the transition" has its negative effect on the construction of the Bulgarian civil society (Chuturkova, 2019). This article aims to analyse the contemporary manifestation of civil society in Bulgaria through the prism of political participation and apathy among citizens. For this purpose, special attention is paid to a brief presentation of the concept of civil society, also to an analysis of the political participation of Bulgarian citizens, studied mainly through electoral activity and membership in political parties, as well as, respectively, to an attempt to derive some of the main reasons for the relatively high levels of political apathy and anomie among Bulgarian society. 1. The concept of civil society One of the most frequently quoted definitions of the concept of civil society is the one given by Adam Selingman, according to which "civil society is an autonomous, self-regulating public sphere, independent of the state (...) an ethical ideal of social order that, even if not overcomes, Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 137 at least harmonizes, the clash between individual interest and the public good"(Tsakova, 2011, pp. 249-250). Hegel defines civil society as a state between the state and the family (that is, a public state that does not coincide with either the public sphere of the state or the private sphere of private life). While Marx contrasts the political state with civil society, understood as the "total material intercourse of individuals" of a society, i.e. the economic system. In Bulgarian literature, the concept of civil society has been analysed in detail by Vasil Prodanov (2003), Ivka Tsakova (2013, pp. 199-256), Denitsa Gorchilova (2010, pp. 181-208). Regardless of the chosen approach, civil society in the modern sense of the word can be seen as having a complex structure containing several main components, including citizens who have certain rights; the family, but only to the extent that its functioning has public consequences and is of public interest, and not to the extent that it is related to individual life and private activity; ethnic, cultural, racial, religious, national communities with which the individual identifies; schools and universities, church organizations, media, cultural industries, analytical units and centres, sociological agencies, etc. and last but not least foundations, associations, organizations, and unions that are to one degree or another relatively independent from the state and do not perform business activities (Prodanov, 2003, pp. 21-23). Therefore, civil society is a function of the social behaviour of citizens and of their conscious attitude towards the state. The direct connection of citizens with the state is constituted through the existing individual rights and freedoms, and their connection with society - through their real application and the existing guarantees for them. In other words, the functioning of a civil society is impossible without civic consciousness. It represents the understanding that members of a society have of their rights and obligations. This, in turn, implies an aspiration to protect and exercise these rights but also the fulfilment of existing obligations. Therefore, civic consciousness is an indicator of the effectiveness of civil society, and political participation can be perceived as a necessary and mandatory element of civic consciousness, because without politically active citizens, the formation of civic consciousness, respectively the creation and functioning of a real civil society, is unthinkable. 2. Electoral activity of citizens as an element of political participation Civil society is made up of three interconnected elements – institutions, organizations (including political parties) and individuals (citizens and participants in civil society) (Gorchilova, 2010, pp. 203-204). In this regard, the clarification of the political participation of Bulgarian citizens against the background of increasing trends of political apathy is extremely important for the functioning of the Bulgarian civil society. Unfortunately, today, more than 30 years after the transition to democracy, the Bulgarian civil society is still accompanied by numerous deficits. To a certain extent, the underdevelopment and immaturity of political mediators (especially political parties) (Kanev, 1998, p. 67) and the decline of traditional parties contribute to its unsatisfactory state. However, it is important to point out that similar trends are observed in all modern representative democracies, taking into account a decrease in the potential of political parties to fulfil their role as mediators between citizens and the administrative system, to be both formative and implementing public policies. In view of this, a decrease in voter turnout, low engagement with various forms of political and civil militancy, deteriorating trust in political parties and the main government institutions is beginning to be observed (Marten, 2013). For the purposes of this article, the concept of political participation is defined as a conscious action, individual or collective, that aims to influence the political process... in general and on political decision-making in particular, these are the legitimate activities of private citizens that Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 138 aim more or less to influence the selection of management personnel or their actions (Todorov, 2012, pp. 342, 349). Therefore, one of the main measures of political participation is the voter turnout of Bulgarian citizens. One of the main characteristics of modern political democracy is the holding of free, fair and periodically held elections, through which citizens can choose and be chosen in the governance of the country. In other words, the act of election (which is political in nature) is a delegation of power through which citizens sovereignly express their will to construct electoral bodies (institutions) (Tsenova, 2001, p. 174). The granted active and passive right to vote to citizens, however, does not always mobilize the voter to be active and cast their vote on election day for a particular party. In this regard, based on the relatively low levels of voter turnout in Bulgaria in recent years, a number of analysts share the view that this is an indicator of an immature civil society in Bulgaria; for citizens who do not understand and do not realize their importance in the political process, and for this reason often abstain from voting; for citizens who distrust political parties and the political system in general. After the initial euphoria of the opportunity for Bulgarian citizens to freely exercise their choice for political representatives, when there was an extremely high voter turnout, in the years from 1990 to 1997, voter turnout in Bulgaria gradually decreased in the country. This trend is clearly visualized in Figure 1. It can be seen that voter turnout has dropped sharply in the last two years, which is an important indicator of the real state of civil society in the country. With a more developed civil society, citizens realize their role and importance in the electoral process. Figure 1. Voter turnout in parliamentary elections in Bulgaria (2013-2023) Source: The figure is the author's, as it was created using the voter turnout data published on the website of the Central Election Commission, https://results.cik.bg/, accessed on 16.04.2023. Unfortunately, in a number of studies in Bulgaria, a large number of respondents feel excluded from political processes, which subsequently contributes to increasing the distance between citizens and political representatives (political parties). The increase of this distance forms in Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 139 citizens a sense of disappointment and alienation from political institutions, growing into a strong mistrust of democratic institutions. In the latest survey by the Open Society Institute - Sofia and the Center for Liberal Strategies, dedicated to public attitudes towards democracy, the rule of law and basic human rights in 2021-2022, it is revealed that trust in political parties, the National Assembly and the Government is extremely low in the country. The data for 2022 show that only 9% of Bulgarian citizens trust the National Assembly, 11% trust the political parties, and 16% trust the Government (Smilov, 2022, p. 15). Based on these low levels of trust, one cannot expect increased interest in the political process. Fatigue from voting and the inability of political parties to motivate voters to vote are also important for the declining voter turnout in the last two years. In this regard, it should be pointed out that some of the political parties in Bulgaria are interested in the low voter turnout, because they rely primarily on their solid electorate and regardless of the level of voter turnout, the final result for them will be similar to that of the previous elections. 3. Political participation through the prism of party membership Political participation is not only limited to the electoral activity of Bulgarian citizens but to a certain extent it is also measured by citizens' membership in political parties and/or their participation in the electoral process as advocates. The indicated data on low trust in political parties also reflect negatively on the membership in political parties. The main indicator of the effectiveness of a civil society is the participation of citizens in various organizations, including political parties. Although there is no official data on the number of members of the various parties, from the available data in the research cited above, a tendency towards a decrease in the number of Bulgarian citizens belonging to political parties is clearly evident (see: figure 2). Figure 2. Share of members of parties and non-governmental organizations by years (in percent) Source: The table is the author's, as it was created using the data on membership fees published on the website of the Bulgarian National Audit Office, https://www.bulnao.government.bg/bg/kontrol-partii/otcheti-na-partii/, Available on 16.04.2023 Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 140 The answer to the question of what is the cause of the growing distrust of political parties in Bulgaria is not clear-cut, because the reasons are quite diverse. Undoubtedly, in the era of new communications, the emergence of new social networks, etc., a significant part of citizens cannot be attracted to political parties, which leads to the emergence of erosion of political membership. To a certain extent, this is due to the fact that some of the youth in the country fall into a special form of extreme individualism, which is accompanied by a rejection of collective forms of political participation. However, it is important to specify that the refusal to take part in collective forms of political participation is accompanied by a small increase in the percentage of Bulgarian citizens who take part in protest actions. Another reason for the decline in political party membership is related to the way voters vote. In contrast to the 20th century, in the 21st century, the solid electorate of political parties is gradually decreasing, and the mobilization of a significant percentage of voters is defined by the term "skipping". These are voters who often choose to vote for different political parties in different elections. Although there is no official data on the number of members of the various political parties in Bulgaria, to a certain extent some of them can be judged from the official data from the Bulgarian National Audit Office regarding the funds received by the political parties from paid membership fees. Table 1. Membership fees of political parties, in thousands BGN (2015 – 2021) Year Political Party 2015 2016 2017 2018 2019 2020 2021 BSP (Bulgarian Socialist Party) 1451 1028 1139 938 1145 1193 1169 GERB (Citizens for European Development of Bulgaria) 281 104 110 161 568 483 1053 MRF (Movement for Rights and Freedoms) 509 563 498 493 472 184 466 Revival 0 0 0 0 0 0 0 Source: The table is the author's, as it was created using the data on membership fees published on the website of the Bulgarian National Audit Office, https://www.bulnao.government.bg/bg/kontrol-partii/otcheti-na-partii/, accessed on 16.04.2023. It is clear from the data in the table that during the analysed period the membership of the main political parties in Bulgaria did not change drastically, and the jumps and drops in the collection of membership fees were due to external factors. Thus, the lower collection of membership fees in MRF in 2020 is due to the party's decision to make membership fees voluntary in view of the Covid pandemic, and the sharp increase in membership fees in GERB in 2021 is not due to an increased number party member but it is the result of a purposeful campaign to collect it. Quite interesting is the case with the membership fee at "Revival" Political Party, which, as with other political parties, in its statute in Art. 40, the obligation of each member to pay their regular membership fees is legally enshrined. However, as can be seen from what was declared to the Court of Auditors for the period 2015-2021, no member of the political party paid membership fees to the organization. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 141 In addition to political party membership, another indicator of political activity is the number of advocates in the electoral process. In recent years, the role of advocates in the electoral process has not only not diminished but it has become an increasingly complex and essential part of the overall legitimacy of election results (Pozharliev, 2018, p. 150). Most of the advocates in the country are members of a certain political party or its sympathizers, and this form of their political participation is mostly aimed at supporting the party and protecting its interests in the electoral process. The role of the advocate is legally enshrined in Art. 101 of the Electoral Code, where it is stated that the candidate lists of parties, coalitions of parties and initiative committees may have advocates who assist them and represent their interests before state bodies, public organizations and election commissions, and one candidate list may be represented by one advocate in one polling station on election day (Electoral Code, 2011). Despite the role of the advocate in the Electoral Code, their presence is often criticized, especially in view of the fact that some political parties pay for the services of the advocate, which for many researchers can be interpreted as a form of a paid vote (Krastev, 2017). In addition to these unregulated practices of some political parties, there is another problem in the Electoral Code related to the lack of a centralized system for registration of advocates. According to Bulgarian legislation, a registry of advocates by the CEC (Central Electoral Commission) is maintained only for those outside the country (CEC, 2023), which cannot present the real picture of the impact that this form of political participation can have on voter turnout inside the country. In addition, given the fact that only half of the advocates state that they are members or supporters of a political party, this indirectly suggests that a relatively large percentage of them are not motivated to participate in the electoral process in relation to monitoring for compliance with the democratic procedures and practices in the electoral process or protection of a certain party (ideological) basis. 4. Political apathy in the Bulgarian society The distrust in political institutions, the erosion of membership in political parties, the decline of traditional parties and the emergence of new anti-systemic political formations as well as the corruption and mismanagement all form a political environment characterized by fragmentation and increasing instability, which in turn creates conditions for the expansion of political apathy among citizens. Rejecting the legitimacy of politics, among certain groups of the population in Bulgaria a disengagement from political life is observed which is quite disturbing because a government based on political apathy often leads to the spread of authoritarian and oligarchic practices. The analysis of political apathy in Bulgarian society must take into account that the levels of disengagement from politics are different depending on the age group. It is an indisputable fact that the older generation in Bulgaria continues to be more politicized than the younger generation, which can clearly be proven by the levels of voter turnout. The latter is relatively higher among the older generation than among the youth group, who not only do not vote but also report very low levels of desire for any political activity whatsoever – including political party membership., According to data from a study by the Gallup International Balkan Sociological Agency regarding the "profile" of those who voted in the parliamentary elections held on 02.04.2023 (Gallup, 2023). The reasons for the growing apathy among parts of Bulgarian society are numerous but the role of political parties in the political system has a serious impact. As the main channel of communication and connection between citizens and the rulers, political parties are to a certain extent insensitive to the demands of civil society, which results in a crisis of legitimacy – they Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 142 are no longer perceived as representatives and expressers of the demands of a large part of Bulgarian citizens. The transformation of a part of the political parties from the representatives of the civil interest into the defenders of the interest of the party caste, the so-called partyocracy, leads to an escalation of mistrust towards them provoked by the impossibility of civil society exerting a significant and real influence on the formation and manner of implementation of various policies by political parties. Secondly, the transformation of political parties into catch-all parties and the erosion of ideology turns participatory democracy into audience democracy. Political parties do not mobilize their electorate on the basis of ideas and values but use the personalization of politics – focused on their leader. The election campaign is not done through debates between opposition leaders while the communication with potential voters takes place on social networks. Instead of mobilizing public interest and effort to achieve meaningful goals, today's fashionable politicians seek to exploit these goals to draw constant attention to themselves (Marinov, 2002). The spontaneous mobilization of voters by political parties is often based on populist rhetoric and subsequently the false hopes of citizens lead to yet another exodus of voters. Thirdly, although political parties are pointed out as one of the institutions of civil society, the direct connection with the government of the state predetermines the need for civil control over their activities. Unfortunately, in Bulgaria, political parties are weakly dependent on civil society, which has a sporadic impact on them – primarily during political crises. In practice, there is no permanent civil control, since the social base of the parties is mainly reduced to a small stratum of activists and members who pursue raising their own social status and obtaining certain privileges (Asenov, 2015, p. 141). This impossibility of influence further contributes to the increase of mistrust towards political parties and subsequently results in the strengthening of alienation from politics. CONCLUSION The analysis of civil society through the prism of political participation and apathy among Bulgarian society reveals deep problems in its effective functioning. It is an indisputable fact that all the conditions and institutions for a functioning civil society are present. The problem is rooted in the impossibility in a certain part of society to form a civic consciousness, to create a sense of the duty of political participation. Real democracy requires participation of citizens, including participation in the electoral process, membership in political parties, control over the activities of political intermediaries. On the other hand, however, the absence of internal party democracy, particracy and oligarchy interference in political parties discourage citizens from political participation. This reveals a vicious circle in Bulgarian society, with political participation starting to be limited to the hard electorates of the political parties, and the protest vote ("I don't support anyone" – over 109,000 votes in the parliamentary elections held on 02.04.2023, according to data of the CEC, posted on their official website https://results.cik.bg/ns2023/rezultati/index.html) is a symptom of a society based on mistrust. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 143 REFERENCES Asenov, S. (2015). Politicheskite partii i demokratichnata konsolidacia v Bulgaria: problemi i perspektivi // Ot kakvi znania za politikata se nuzhdayat studentite ot ikonomicheski specialnosti v UNSS (Political parties and democratic consolidation in Bulgaria: problems and perspectives // What kind of knowledge about politics do the students of economics majors in UNWE need). Sofia: UNSS Publishing House, pp. 131147. 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Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 145 Ulfat Andrabi Priyanka Chhibber Ulfat Andrabi PhD – Research Mittal School of Business, Lovely Professional University, Phagwara, Punjab, India Corresponding author: e-mail: ulfatandrabi456@gmail.com EXPLORING THE INFLUENCE OF ORGANIZATIONAL COMMITMENT ON WORKLIFE BALANCE IN PUNJAB'S HEALTHCARE INSTITUTIONS: A QUALITATIVE ANALYSIS Priyanka Chhibber Associate Professor ABSTRACT Mittal School of Business, Lovely Professional University, Phagwara, Punjab, India Corresponding author: e-mail: priyanka.chhibber@lpu.co.in ORCID: https://orcid.org/0000-00030956-7225 Published First Online: 24.06.2024 This study aims to assess the relationship between organizational commitment and work-life balance among staff members working in hospitals in the Indian state of Punjab. Based on a sample of 382 hospital employees, including medical and paramedical staff, the study was conducted. The required information was gathered using a standardized questionnaire. The Smart PLS statistical tool was utilized for analysing the data that was gathered. The study's findings demonstrate a significant and positive association between organizational commitment and work-life balance in selected hospitals of Punjab, highlighting the significance of this balance in encouraging employee commitment in this situation. Based on the R 2 value of 0.644, it can be concluded that the model is responsible for approximately 64 percent of the variance in organisational commitment. Nevertheless, the circumstances that are accountable for the remaining 36 percent of variability have not been found. KEYWORDS: Health care division; Organizational Commitment; Work-life balance. Healthcare sector, Healthcare employees. Pages: 146 – 162 DOI: https://doi.org/10.37075/JOMS A.2024.1.13 INTRODUCTION The state of a nation's health is widely regarded as the single most essential factor in determining that nation's overall level of wealth in today's world, giving authority to the motto that "health is wealth." One of the most important economic sectors and one of the professions with the highest rate of expansion in India is the healthcare industry. However, the provision of medical services to preserve people's health and shield them from the dangers that threaten their well-being is the component of the healthcare industry that is both the most essential and significant. When there is a shortage of health and medical services, it has a negative influence on the nation as a whole and puts an undue burden on relatively few medical professionals and paramedical workers who are forced to work excessive hours to assist Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 146 those who are sicker than they are personally able to manage. Because of this, a circumstance of this nature has the effect of having a negative influence on the WLB of (both medical and paramedical) who work in the healthcare industry. This study was initiated to analyse the problem with WLB in healthcare employees, both medical and paramedical staff in the state of Punjab. Problem statement There are few studies available on these two aspects, but they deal with nursing staff only. This study deals with a broader picture of Paramedical and medical staff. Every working person possesses two significant spheres in which they might play a variety of roles throughout their lives. These spheres can be broken down into two categories: job and family. To keep a healthy balance in one's life, it is necessary to fulfil the requirements of one's roles in both the workplace and the family. Every sphere has demanding requirements to meet at a particular moment in a period, but when an individual is unable to meet those expectations, there is an imbalance in that person's overall life. Due to the strong relationship between the two, it is therefore highly necessary to strive to strike a balance between your career and personal responsibilities. In contrast to the makeup of the workforce in the past, the workforce in the organization has become more diverse in recent years, and men and women now share nearly equal levels of responsibility within the company. Nevertheless, in every community, women are expected to take on the additional obligations of caring for their families and keeping their homes running smoothly. There is an expectation that women who work full-time also must take care of domestic obligations, which can add additional pressures to their already packed schedules, as stated by O'Kelly (2002). This can be challenging for women who already have a lot on their plates. This may place women in situations that are more difficult to navigate and filled with tension than those faced by men. The challenges of upholding a healthy work–life balance is becoming increasingly prevalent in the twenty-first century as a direct result of demography and societal shifts that have led to the development of a more varied labour force. We have formulated the following objective for the study. ‘To study the impact of organizational commitment to work-life balance in selected hospitals of the Punjab.’ Hypothesis 1: There is a significant impact of organizational commitment on work-life balance. Literature Review Organizational commitment In 1982, Mowday was the first person to talk about organizational loyalty. Organizational commitment was described as the way employees feel about the company, including how they feel about its values and goals. People have thought of organizational commitment as a useful company asset that helps the company reach its goals. Allen and Meyer (1990) said that organizational commitment was the workers' emotional association with the company. Organizational commitment is a state of mind that shows how attached, trustworthy, and connected an employee is to their company. It is a key idea in organizational behavior, and researchers have investigated it a lot over the years. People think that organizational commitment is important for employee engagement, job satisfaction, and the general Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 147 performance of an organization. A three-component model of organizational commitment: Allen and Meyer came up with this model in 1990. It says that there are three parts to organizational commitment: affective, continuance, and normative commitment. Affective commitment is a feeling of sentimental connection to the corporation. Continuance commitment refers to a state of fear of the costs of exiting the corporation. Normative commitment is a consciousness of duty to stay with the organization. Researchers have investigated many things that affect organizational commitment. Some typical causes are job satisfaction, organizational support, a sense of organizational fairness, the way leaders act, the culture of the organization, and employee participation. Organizational commitment has been linked to several good things, both for workers and for organizations. These include better job performance, fewer plans to quit, more job happiness, more organizational citizenship behaviour, and better health for employees. A person's level of identification and association with a specific organization can be used to provide a measure of their organizational commitment, which can be described as the relative power of this identification and association with the organization in question. This can be done by using a person's level of identification and association with the organization in question. It is feasible to characterize it in terms of the three factors that are listed below 1) an unshakeable confidence in and acknowledgement of the association’s objectives and ideals; 2) a readiness to devote a large deal of strength to the organisation’s interest; and 3) a powerful urge to take care of membership inside the association (Hashish, 2017. Members who are effective in their roles are distinguished by the following three qualities: People's interest in the topic of organizational commitment is sparked by the presumption that exceptionally organized devoted employers are theorized to participate in more citizenship activities, and they demonstrate superior job performance (Jaros, 1997), and exhibit other behaviours comparable to those that are desired. In other words, people are interested in organizational commitment because of the presumption that exceptionally organizationally devoted employers are theorized to participate in more citizenship activities. When analysing and evaluating an employee's behaviour in the context of his or her organization, one must consider the employee's level of organizational commitment, as stated by Wombacher and Felfe (2017). This is a vital component to take into consideration. In addition, Das, Byadwal, and Singh (2017) define organizational commitment as "a feeling of dedication, a readiness to put up the effort, and the intention to continue working for a specific company for an extended period." The research that was conducted in 2013 by Maria Batool found that there is a correlation between job stress and a lack of organizational commitment. However, there was not found to be a statistically significant inverse association between the various aspects of commitment, such as effective, continuation, and normative commitment. According to the findings of the study, stress levels can be lowered to improve organizational performance as well as individual performance. This, in turn, leads to stronger employee commitment to the organization, which ultimately results in higher levels of productivity. Decreased levels of stress in the workplace lead to improved levels of passion and motivation among workers for their jobs. An investigation that was carried out in 2008 by Sajid Bashir found that there is a substantial connection between work-life rules and both career possibilities and organizational dedication. The research was conducted in the United Arab Emirates. According to the findings of the study, however, occupational qualities do not play a significant effect in the decision to remain committed to an organization. According to the findings of the Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 148 study, employee roles are also affected by role conflicts that occur in the workplace. Work-life conflict can be reduced and organizational commitment among employees can be increased by employing a variety of work-life policies, which can be implemented by companies to solve this issue. The concept of organisational commitment is multi-dimensional, with several aspects being defined and examined in a variety of research conducted by professionals in the fields of management and psychology. According to Newstrom and Davis (2002), there are three different types of commitment that may be found in an organisation: emotional commitment, continuous commitment, and normative commitment (Newstrom & Davis, 2002; Nobarieidishe, Somayyeh Chamanifard, Raheleh Nikpour, 2014; Oztekin, Isci, & Karadag, 2015). When personnel are largely responsible for machine operations, as they are in business organisations such as PT. Indocement Tunggal Prakarsa Tbk., it is expected of them that they would follow to the policies of the company, work towards specified goals, and demonstrate a strong dedication to the organisation. A mental condition that is intrinsic to personnel, in which they continually seek to offer their best for the organisation, is what we mean when we talk about emotional commitment. When employees demonstrate a continuous commitment, it demonstrates that they have a strong and unwavering desire to continue their association with the organisation. According to Newstrom and Davis (2002) and Zurnali (2010), normative commitment is characterised by an employee's strong belief in and unwavering acceptance of the organization's values and aims. For businesses to be successful, they need to not only recruit and keep a talented and passionate workforce but also workers who are committed to the organization and responsible for their actions beyond the scope of their roles, (Kapil & Rastogi, 2020). According to Akter et al. (2019), OC and WLB are significant because they affect the efficiency of organizations and the happiness of families. According to the findings of Akter et al. (2019), Liu et al. (2021), and Shabir & Gani (2020), WLB was discovered to have an affirmative and substantial connotation with organizational commitment. It is possible to say that WLB is one of the indications of OC (Wilkanandya & Sudarma, 2020). Hence, a balanced work-life makes employees more committed to their jobs. Work-life Balance The introduction of new technologies in the workplace has resulted in major shifts both in the character of the work itself and the attributes that are expected of employees. A shift in duties and responsibilities has occurred as a direct result of these changes, which had an impact not only on organizational structures but also on the characteristics of the workforce. Women now work alongside males in the workforce and contribute financially to the household. The desire of both men and women to realize their potential and obligations in their entirety forced the establishment of the balance into a necessity. Despite this, the work of the organizations is becoming increasingly complicated. In this complicated and challenging climate, organizations are making efforts to maintain a strong WLB for their employees. A strong WLB can be characterized as an organization's ability to benefit from an employee's goal to analyse their experiences in the workplace as well as in areas that are not related to their employment. The Department of Trade and Industry in the UK states that the "work-life balance" is "achieving a satisfying balance between meeting one's career goals and fulfilling one's responsibilities." According to the explanation, "work-life balance" can be attained by striking a satisfying stability between meeting one's career goals and fulfilling one's (www.dti.gov.uk). Every company or organization must make it a priority to recognize the significance of maintaining a Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 149 satisfactory equilibrium relating to worker’s professional and personal duties. The stress level of employees will increase if they are unable to maintain a healthy balance in their lives. In a study by Moorhead and Gryphon (2013), WLB is a person's ability to strike a good balance between the demands of their job and the needs of their personal life and family. This means that they can meet the requirements of both their professional and personal lives. 2014 study by Poulose and Sudarsan states that an individual's ability to maintain a healthy work-life balance may be influenced by various factors, including personal traits, structural issues, and ecological issues. Meanwhile, Lazar et al. (2010) suggests that achieving a WLB can benefit organizations in several ways, such as reducing absence and lateness, improving efficiency, enhancing employee commitment and loyalty, retaining customers, and diminishing employee turnover. Handayani et al. (2015) define WLB as a state where an individual can manage various responsibilities and set priorities, resulting in a sense of involvement and satisfaction in both their work and family domains, with minimal conflict. According to Moorhead and Griffin (2013), work-life balance refers to an individual's ability to balance work demands with personal and family obligations. Fisher et al., (2009) suggest that work-life balance involves managing one's time between work and other actions outside of work, which may generate personal conflict but also provide a source of energy. The quest to strike a balance between work and life is a global issue that affects people everywhere. This problem becomes especially important when there is a lack of job satisfaction. To reduce the stress that frequently results from balancing work and family obligations, achieving a work-life balance requires a harmonious balance between professional obligations and personal obligations (Yadav and Yadav 2014). Researchers (Adnan et al. 2019) investigated the connections between one's professional and personal lives, as well as the correlations between contentment and productiveness in the workplace. A questionnaire-based survey was constructed appropriately to evaluate the same, and the research concentrated on a sample size of 289 employees from Med Pharma, which is one of the pharmaceutical firms in Jordan. Multiple regressions were performed to put the study's hypotheses to the test. Because of this study, numerous recommendations were able to be derived for the consideration of managers of organizations, particularly those in Jordanian Pharmaceutical industries, to promote work-life balance and pleasure at work, since this will enhance employee productivity. These recommendations might be taken into consideration by managers in Jordanian Pharmaceutical industries. Because of this, a greater amount of emphasis needs to be placed on the life quality elements that are known to influence the results. Affective organizational commitment, employee engagement, and job happiness are the three components that make up this aspect. According to the findings of an investigation that was carried out by (Afshan Naseem in 2011), it was discovered that happy workers deliver great performance, which in turn adds to the success of the business and, ultimately, results in increased financial wealth for the individual. The contentment of workers contributes to an improvement in the quality of the job, and it also has a beneficial effect on the contentment of customers, given that the employees who provide customer service are directly responsible for its standard of excellence. The results of the study highlight how important it is for an organization to care about its workers and treat them well to be successful. Organizational Commitment and Work-Life Balance Work-life balance is commonly defined as the stability between responsibilities in one's personal life and commitments at work and achieving a satisfactory work-life balance typically Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 150 involves decreasing the amount of time spent working to increase the volume of time consumed on other aspects of life (Kelliher, et al., 2019). Individuals must reduce the number of hours they devote to their work to free up greater time for various aspects of their lives. According to another definition offered by academics, Work-life balance " is the act of harmonizing and managing the three key dimensions of an individual's life—social, personal, and organizational—to ensure that sufficient attention is devoted to each area" (Wayne et. al., 2017). These three key measurements of a person's life are social interaction, individual development, and organizational commitment. To put it another way, striking a healthy work-life balance requires skillfully balancing and prioritizing the various parts of one's life to preserve equilibrium and direct sufficient attention toward social interactions, one's well-being, and professional responsibilities. In the contemporary environment, where competition is fierce, businesses are making concerted efforts to adopt procedures and exercises that assist employees in balancing the demands of their personal lives with those of their professional lives. According to Garg and Yajurvedi (2016), they can accomplish this by instituting rules that promote work-life balance. Some examples of these policies include adaptable operational hours, parental leave, and the provision of childcare facilities. In essence, organizations are making intensive attempts to develop a supportive work environment that caters to the many requirements of their workforce and makes it easier for workers to efficiently accomplish both their Work and personal lives In the framework of this research, investigators have observed that a healthy WLB is vital to confirm the efficiency of instructors for their relevant organizations (DuXbery, Higgins, & Coghill, 2003; Punia & Kamboj, 2013). This was determined to be the case by taking into consideration the context of the study. According to Hatam et al. (2016), the likelihood of an employee quitting their organization increases when there is an argument between the employee's personal life and their professional life. According to Noor (2011), companies that make it a priority to assist their workers in striking a healthy balance between their professional and personal lives produce employees who are both happier and more dedicated to their jobs. Research Gap There is a dearth of studies available on these aspects considering the affective, normative, and continuous commitment. Considering the past literature on the variables under study, the current research study was built on the aspect that work-life balance practices have a substantial optimistic impact on the commitment of healthcare professionals. In our research study, we have filled the research gap by examining the impact of satisfaction balance, time balance, and involvement balance on the commitment level of healthcare professionals. It is clear from previous research analysis that academics, professionals, and researchers have produced an extensive amount of written material discussing numerous aspects of the organizational commitment and work life balance the research conducted by Kim (2014) investigated the influence that a healthy work-life balance has on the affective commitment and in-role performance of industrial workers in Korea. To conduct the research, 520 questionnaires were sent out, and a total of 293 responses were considered valid. Through the utilization of regression analysis, the research endeavoured to gain an understanding of the interaction that exists between work-life balance, affective commitment, and success in one's role. According to the findings, there is a direct connection between having a healthy work-life balance and having an affective commitment. On the other hand, the research did not find any evidence of Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 151 a direct connection between work-life balance and functioning effectively in one's profession. The findings, on the other hand, demonstrated that affective commitment acts as a mediator, hence altering performance in the position. Consequently, the study found that there is a connection between work-life balance and success in one's function, but it is a connection that is indirect. This connection is made through the intermediary element of affective commitment. It is important to note that organisational commitment is the dependent variable in question, and that it is influenced by an extensive number of independent variables. Existing research has demonstrated that visionary leadership (Dhammika, 2016; Ubaidillah, Chistiana, & Sahrandi, 2019) and talent management (Al Ariss, Cascio, & Paauwe, 2014; Cheese, Thomas, & Craig, 2008; Gapersz, 2013; Lewis, 2006; Marwan, Alshaboul, & Daud, 2020; Nobarieidishe, Somayyeh Chamanifard, Raheleh Nikpour, 2014; Pramarta & Netra, 2018) are among the independent variables influencing organisational commitment. Furthermore, studies conducted by Azeem and Akhtar (2014), Gregory, Abigail and Milner (2009), Naiemaha, Azizirb, and Ruswahidac (2019), Nayak and Sahoo (2015), and Wijaya and Dewi (2017) have discovered that elements such as balance between work and personal life and job satisfaction play a part in the formation of organisational commitment. 3.1 Research Methodology Study’s Design The effect of organizational commitment on Work life balance in the selected hospitals of Punjab was investigated using a descriptive approach. Participants The study's participants are healthcare employees, (medical and paramedical. Staff). A random sampling technique was applied to collect information from 382 staff members working in the Punjab state, employed by the National Accredited Board of Hospitals (NABH) and the Public Hospital System Corporation (PHSC). This was done to achieve goals. Measuring Instruments The Allens and Mayers Questionnaire was used to verify the commitment point of the respondent, questioning respondents using a 5-point Likert-type scale expanding from 1 (Strongly disagree) and 5 (Strongly agree). Peeter and Warr's measurement of work-life balance with a small questionnaire has been used to study the work-life balance among healthcare employees in hospitals in Punjab. On this scale, respondents must rate themselves on the 5- 5point Likert scale ranging from 1 (Strongly disagree) to 5 (Strongly agree). However, to validate both instruments, subject matter experts assisted. This is because the scales were modified rather than adopted. This resulted in the removal of some components from both scales; hence, only those components that were extremely relevant to the investigation were retained. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 152 1. Data Analysis Figure 1. Structural Model (Validating lower order constructs) Source: Authors own Convergent Validity: convergent validity in research methodologies and psychometrics has been explained in a precise and understandable manner by you. Convergent validity is a notion that is used to assess how well two separate metrics that are theoretically meant to be connected correlate with one another. It confirms that two measurements that are used to measure the same or nearly related ideas are connected and help determine whether they are convergent on the same underlying notion. This validation is crucial to make sure that the measurements are accurate in measuring what they are supposed to, and that they do so consistently and reliably. Table 1. Cronbach’s alpha, composite reliability and average variance were extracted. Column1 AC Cronbach's alpha 0.744 Composite reliability (rho_a) 0.747 Composite reliability (rho_c) 0.838 Average variance extracted (AVE) 0.565 CC 0.839 0.85 0.879 0.514 IB 0.769 0.772 0.853 0.592 Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 153 Column1 NC Cronbach's alpha 0.78 Composite reliability (rho_a) 0.787 Composite reliability (rho_c) 0.872 Average variance extracted (AVE) 0.694 SB 0.862 0.863 0.894 0.547 TB 0.784 0.786 0.874 0.699 Source: Authors own Based on three criteria, the study assessed the scale items' convergent validity. First, the composite dependability for each construct should be more than 0.70. Second, as recommended by Hair et al. (2007), factor loadings ought to be more than 0.50. Finally, the (AVE) must exceed the 0.50 cut-off point established by Fornell and Larcker (1981) for each variable. All these measures are within the permitted range, according to the data in the dependability table. Discriminant Validity The next step in demonstrating construct validity is the evaluation of discriminant validity, which can be carried out in several ways. Discriminant validity is a vital factor in establishing how distinct a particular idea is from others. In terms of research and statistics, discriminant validity aims to determine if a measurement or construct is unique from other comparable constructs. Concept validity, which focuses on how effectively a measurement tool captures the theoretical concept it is designed to examine, is another essential aspect of construct validity. The specific objective of demonstrating discriminant validity is to demonstrate that measures do not significantly correlate with measurements of other constructs. Table 2 Discriminant Validity Column1 Column2 Column3 Column4 Column5 Column6 Column7 AC CC IB NC SB TB AC CC 0.778 IB 0.735 0.856 NC 0.758 0.791 0.702 SB 0.755 0.888 0.899 0.731 TB 0.715 0.818 0.802 0.656 0.898 Source: Authors own A statistical method used in partial least squares structural equation modelling (PLS-SEM) to evaluate the discriminant validity of constructs in a measurement model is the heterotraitmonotrait (HTMT) ratio. This technique helps researchers determine whether the constructs they are researching are separate and not closely connected by quantitatively comparing the differences between the underlying concepts. Researchers contrast correlations within the same construct with correlations between unrelated constructs (heterotrait correlations) to calculate the HTMT ratio. They determine this ratio, particularly, by subtracting the average heterotrait correlation from the average monotrait correlation. According to the recommendations of Gold and Arvind Malhotra (2001), the resulting HTMT ratio should typically be smaller than 0.85 or 0.90, as this indicates that there is discriminant validity. In other words, it suggests that the ideas under study are separate from one another. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 154 Multicollinearity When numerous independent variables—often referred to as predictors or features—display strong connections with one another inside a regression model, multicollinearity—a statistical problem—occurs. Essentially, this suggests that these variables are linearly connected, which makes it challenging to separate and understand the various effects of each variable on the dependent variable. The issue of multicollinearity must be solved if a regression analysis is to produce reliable and understandable results. It is imperative to take action to resolve multicollinearity to prevent erroneous results and poor decision-making. Table 3. Multicollinearity Statistics Column1 VIF AC1 1.717 AC2 1.286 AC3 1.581 AC4 1.391 CC1 1.449 CC2 1.591 CC3 1.579 CC4 1.806 CC5 2.307 CC6 2.314 CC7 2.212 IB1 1.555 IB2 1.76 IB3 1.556 IB4 1.338 NC1 1.718 NC2 1.737 NC4 1.476 SB1 1.73 SB2 1.787 SB3 1.695 SB4 1.937 SB5 1.696 SB6 1.677 SB7 1.572 TB1 1.542 TB2 1.766 TB3 1.654 Source: Authors own An analytical tool for determining whether multicollinearity exists in data is the variance inflation factor (VIF). To reduce collinearity problems, it is typically advised to aim for a VIF of 5 or below, according to a study by Hair et al. (2011). Furthermore, according to some studies, collinearity can be inferred if the VIF is greater than 3.3 (Knock & Lynn, 2012). All Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 155 observed variables in this situation have VIF values that are less than 3.3, which shows that there is little collinearity between them. As a result, we may say that there is very little collinearity between the variables. Outer Loadings In factor analysis and structural equation modelling (SEM), outer loadings, sometimes referred to as item loadings or factor loadings, are crucial for determining the link between latent factors and observable variables, which are frequently represented by items or indicators. These loadings express how much of each observable variable's variance is attributable to the underlying latent factor. Both factor analysis and SEM work under the presumption that one or more unobservable factors have an impact on the observable variables, with outer loadings providing a quantitative description of the magnitude and direction of this influence. The estimated linkages (shown as arrows) connecting the latent variable to its indicators are what are generally known as outer loadings. In reflective measurement models, these links are used to determine how much each object contributes to the construct it represents. A value of 0.7 or above for the outer loading is deemed satisfactory by Henseler et al. (2015), however, Chin (1998) believes that values above 0.5 are acceptable and those below 0.5 should be eliminated. Table 4. Outer Loadings Column1 AC AC1 0.806 AC2 0.732 AC3 0.748 AC4 0.716 CC CC1 0.602 CC2 0.603 CC3 0.64 CC4 0.746 CC5 0.82 CC6 0.797 CC7 0.773 IB IB1 0.769 IB2 0.817 IB3 0.787 IB4 0.7 NC NC1 0.847 NC2 0.863 NC4 0.787 SB SB1 0.75 SB2 0.762 SB3 0.72 SB4 0.776 SB5 0.731 SB6 0.722 SB7 0.712 Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 156 TB Column1 AC CC IB NC SB TB TB1 0.823 TB2 0.857 TB3 0.827 Source: Authors own All the outside loadings for the items are either above 0.7 or surpass 0.5, so they all seem to be appropriate. Items NC3 and SB8, however, have negative loadings, making them inappropriate for further research. The following items are suitable for further research since their outer loading values reach or exceed the 0.7 or 0.5 standards, following the preceding data. These results are deemed satisfactory, and they will all be kept for additional study. Additionally, by looking at the P-values in Table 4 and using a 5% significance level, the results' significance can be confirmed. The 5% significance criteria are reached thanks to this verification approach. Additionally, bootstrapping can be used to provide additional support for these observations. Hypotheses Testing Organizational commitment significantly influences work-life balance. Arnau (1998) suggested that it may be advantageous to use the bootstrapping method in Smart PLS for hypothesis testing. Arnau contends that the second-order technique is superior to the first-order strategy when a study's goal is to improve the wider application of theoretical notions. According to Chen, Sousa, and West (2005), second-order factor models are thought to provide a more consistent and understandable model than the first-order approach. As a result, these justifications served as the foundation for the variables and second-order constructs created for this study. The evaluation of the three traits as independent variables and their effects on the three work-life balance dimensions as dependent variables are shown in Figure II. The study evaluates the path coefficients and R2 coefficient of determination in the structural model. Figure 2. Structural model: Effect of Work-life Balance on Organizational Commitment Path Coefficients Column Original sample (O) Sample mean (M) Standard deviation (STDEV) T statistics (|O/STDEV| P values org Comit. -> WLB 8.801 8.802 0.022 36.103 0.000 Source: Authors own R -Square and R-square adjusted Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 157 Column1 R-square R-square adjusted WLB 0.642 0.641 Source: Authors own The dependent variable's variances are approximately 64% explained by the model, as indicated by an R2 value of 0.644. The causes of the remaining 36% of the variability, though, are yet unknown. The model is still dependable even after considering the number of predictors, as shown by the modified R-value, which is currently at 0.644 and is quite like the initial R2 value. This underlines the model's suitability for the data even further. The values of R2 and adjusted R2 provide information about how well the regression model fits the dependent variables. A better fit is often indicated by higher R2 values, which imply that the model effectively accounts for a substantial proportion of the variation displayed by the dependent variable. Discussion The study that as carried out by Pandey and Singh (2021) and other studies that are quite like provide light on the complex dynamics that exist across a variety of different organizations. These studies reveal a significant connection between work-life balance, organizational commitment, and related dimensions. The findings that are similar across a variety of studies, such as those conducted by Yang, Sun, and Chen (2021) and Lu, Siu, and Lu (2010), point to a universal trend in which a healthy work-life balance has a favourable influence on organizational commitment. The authors Yang, Sun, and Chen (2021) highlight several important aspects, one of which is the favourable association between work-life balance and both affective and normative commitment among Chinese employees. The assumption that a better work-life balance contributes to increased job satisfaction and less work stress is in line with the findings of Lu, Siu, and Lu (2010). These findings provide credibility to the foundation that employees who are happy at work and who experience less stress are more likely to be dedicated to their organizations. The findings of Norton (2009) and Dockel et al. (2006), which indicate that work-life balance has a significant and direct impact on affective commitment, provide a detailed knowledge of the precise characteristics of commitment that are influenced by behaviour related to work-life balance. In addition, the research conducted by Choo et al. (2016) and Biwott et al. (2015) presents a holistic viewpoint, establishing a connection between work-life balance and not just affective commitment but also emotional commitment, normative commitment, and continuing commitment. In the framework of the post-COVID scenario, the healthcare industry has undergone a significant transformation. Healthcare professionals, who play an essential part in the fight against the epidemic, have transformed their perceptions and devotion to the cause. The findings of this study are consistent with the findings of other research, which indicate that even in the post-COVID age, healthcare staff demonstrate stronger levels of dedication when work-life balance is effectively integrated into the working environment of the hospital. This highlights the significance of adaptability in Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 158 organizational procedures to fulfil the ever-changing requirements of employees, particularly in high-stakes industries such as the healthcare industry. The data that has been gathered from this research highlights the significance of maintaining a healthy work-life balance in terms of its ability to influence various aspects of organizational commitment across a variety of different industries. Maintaining a healthy work-life balance appears as a vital aspect in developing employee engagement and happiness, whether it be in the banking industry, as observed by Pandey and Singh (2021), or in the healthcare sector post-COVID. This is the case regardless of the sector. The ramifications of these observations are extremely helpful for organizational leaders who are looking to improve the well-being and dedication of their employees in the constantly shifting landscape of the workplace. CONCLUSION The basic perspective of this study was to see the association of OC and WLB in selected hospitals of Punjab state. According to this study, organizational commitment and WLB have a favourable association. The conclusion is that in the state of Punjab, employee organizational commitment contributes to work-life balance. While attempting to improve WLB, human resources managers (HR) should concentrate on numerous areas of employee organizational commitment. The outcome of this research will assist human resource managers in implementing various measures for work-life balance among their employees. The research not only sheds light on the positive correlation between organizational commitment (OC) and worklife balance (WLB) in several hospitals in Punjab, but it also provides useful recommendations for human resource managers who are looking to improve WLB among their staff members. According to the findings, a strategic approach to enhancing overall work-life balance in this particular setting could involve putting more of an emphasis on establishing and reinforcing employee organizational commitment from the perspective of the organization. The fact that a positive relationship was found emphasizes how important it is to cultivate an environment at work that promotes dedication among staff members. Human resource managers have the option of starting programs with the goals of boosting job satisfaction, developing a healthy organizational culture, and cultivating strong relationships among members of the team. These kinds of actions can help employees feel more loyal and dedicated to their employers, which may ultimately result in a higher level of dedication to the firm and, as a result, a better balance between their personal and professional lives. Furthermore, the findings of the study suggest that treatments aimed at promoting organizational commitment should not be considered in isolation but rather as essential components of more comprehensive strategies for improving work-life balance than other approaches. This all-encompassing approach acknowledges that organizational commitment is entangled with a variety of factors of the working environment, such as the effectiveness of leadership, communication channels, and possibilities for career advancement. Employees can be encouraged to cultivate both dedication and balance through the use of a comprehensive framework that may be developed by human resource managers through modification of their plans to include these multiple features. In the end, the findings of the study offer valuable guidance that can be put into practice by human resource managers working in hospitals in Punjab." eventually, human resource professionals can favourably influence work-life balance, which eventually contributes to a workforce that is healthier and more productive. This is accomplished by carefully collaborating to promote the organization's Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 159 commitment. Because organizations continue to place a high priority on the health and happiness of their workforce, this study is a priceless asset for developing specific strategies that are personalized for the specific circumstances of the healthcare industry in Punjab. Future Research • Further studies within this field may pursue multiple paths that will improve and enhance our understanding of the correlation between organizational commitment and work-life balance among healthcare practitioners in Punjab. Initially, long-term research might be carried out to monitor shifts in work-life balance and organizational commitment. This would help establish any connection between them and offer insights into the dynamics of these variables. Furthermore, a comparative examination between various healthcare environments, such as public and private institutions, may be conducted to determine whether the association observed differs depending on the organizational structure. • Further research could benefit from examining the function of certain treatments or policies meant to enhance work-life balance in the healthcare industry. Examining the effects of wellness campaigns, support services, or flexible work arrangements on worklife balance and organizational commitment may fall under this category. Hospitals looking to improve worker dedication and well-being may find useful insights from an understanding of the efficacy of such treatments. • One possible direction for future study is to investigate the human and organizational features that may modify or mediate the connection between organizational commitment and work-life balance. This is a potential route that might be explored in the future. For instance, investigating how leadership styles, organizational culture, and job characteristics all have an impact on this association may provide a more nuanced understanding of the complexity that is involved. • Last but not least, taking into consideration the continually changing nature of work and healthcare contexts, research might investigate the consequences of emerging trends, such as telemedicine and remote work, on the dynamic relationship between organizational commitment and work-life balance among healthcare professionals. These findings may provide useful insights into how technological improvements and shifting work practices affect the relationship that is the subject of the research. • In the end, the purpose of future research in this field should be to deepen our understanding of the dynamics of organizational commitment and work-life balance in healthcare settings, investigate the possibility of actions, and take into account the impact of contextual and technological factors to provide researchers and practitioners in the field with comprehensive insights. REFERENCES Abdulaziz, A., Bashir, M., & Alfalih, A. A. (2022). The impact of work-life balance and work overload on teacher’s organizational commitment: do Job Engagement and Perceived Organizational support matter. Education and Information Technologies, 27(7), 9641-9663. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 160 Akter, A., Hossen, M. A., & Islam, M. N. (2019). 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Tayfun, A., & ÇATIR, Ö. G. O. (2014). An empirical study into the relationship between work/life balance and organizational commitment. ISGUC The Journal of Industrial Relations and Human Resources, 16(1), 2037. Wijaya & Dewi. (2017). Pengaruh keseimbangan kehidupan kerja dan kepuasan kerja terhadap komitmen organisasi karyawan di hotel Mercure Kuta. Prosiding Seminar Nasional AIMI, 27–28. Zurnali, C. (2010). Learning Organization, Competency, Organizational Commitment, dan Customer Orientation: Knowledge Worker - Kerangka Riset Manajemen Sumberdaya Manusia pada Masa Depan. Bandung: Penerbit Unpad Press. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 162 Vanya Bankova Chief Assist. Prof., PhD Administration and Management Department, New Bulgarian University, Sofia, Bulgaria Corresponding author: e-mail: vbankova@nbu.bg ORCID: https://orcid.org/0000-00027666-9996 Published First Online: 24. 06.2024 Pages: 163 – 175 OPPORTUNITIES FOR SUSTAINABLE DEVELOPMENT OF THE AGRICULTURAL SECTOR THROUGH PRIORITIZATION IN THE PLANS FOR INTEGRATED DEVELOPMENT OF MUNICIPALITIES ABSTRACT DOI: https://doi.org/10.37075/JOMS A.2024.1.14 The focus of the study is directed to the analysis of existing deficits in some of the plans for integrated development of the municipalities in the Republic of Bulgaria, having a direct relation to the development of a sustainable agricultural sector. On the basis of the identified weaknesses/gaps, specific proposals have been prepared to valorise the potential of this sector. Unpopular, "soft measures" aimed at realizing fruitful cooperation between interested parties have been proposed. Cooperating efforts of farmers, public authorities and civil society are the basis of this targeted cooperation. KEYWORDS: sustainable development, agricultural sector, farmers, plans for integrated development of municipalities, cooperation JEL: Q01, Q13, R58 INTRODUCTION The global challenges that the world has encountered in recent years have placed societies in a dilemma of simultaneously stimulating growth, necessary for maintaining the achieved quality of life, and better managing risks (of all kinds) to ensure long-term sustainability. They have also necessitated the adoption of timely, flexible corrective measures to address these challenges, mitigating imbalances at national, regional, and local levels. The global framework for achieving sustainable development, adopted by the United Nations in 2015, by itself, is not a sufficient guarantee for eliminating the aforementioned imbalances. The reconsideration of strategies, policies, and specific measures to achieve socially responsible and environmentally sound economic development increasingly occupies the agenda of governing elites. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 163 In its quest to generate tangible leverage, the European Union implements the fundamental aspects of sustainable development outlined in the Sustainable Development Goals (SDGs) within the Union's strategic vision for building a prosperous, modern, competitive, and climateneutral economy by 2050. This long-term vision, paving the way for a structural shift in the European economy, is transferred to the National Development Program "BULGARIA 2030," determining the overarching goals of development policies in all sectors of public administration, including their territorial dimensions. The National Development Program "BULGARIA 2030" extensively describes the areas of impact subject to targeted interventions by 2030, prioritized and sub-prioritized, accompanied by outcome indicators, a framework of financial resources, funding sources, and comparable development goals as defined by the UN. The priorities defined by the Program, as well as those outlined in the National Spatial Development Concept for the period 2013-2025, are embedded in integrated territorial development strategies for planning regions and plans for the integrated development of municipalities. Specifically, the plans for the integrated development of municipalities are the documents defining the strategic framework for the development of municipal units for the period 20212027, taking into account the new approaches in implementing regional policy in our country, established through changes in the Regional Development Act adopted in 2020. They set medium-term goals and priorities for the integrated and sustainable development of municipalities, providing spatial, temporal, and factual coordination and integration of various policies and planning resources to achieve the defined goals for sustainable improvement of the economic, social, and environmental conditions of a given municipality. The balanced and sustainable development of municipalities in Bulgaria is invariably in correlative dependence on the aforementioned challenges and the new reality regarding the socio-economic context, necessitating a timely review of the results achieved so far in the main strategic documents at the local level and undertaking specific actions to adapt the priorities and measures of the plans for the integrated development of municipalities to them. METHODOLOGY For the purposes of the study, a holistic approach was applied. Emphasis is placed on the results of the content analysis of the integrated development plans of 27 municipalities in the Republic of Bulgaria, including: Blagoevgrad, Boboshevo, Botevgrad, Breznik, Veliko Tarnovo, Gabrovo, Gorna Oryahovitsa, Gotse Delchev, Galabovo, Dimovo, Dupnitsa, Elena, Kavarna, Kovachevtsi, Kocherinovo, Montana, Pernik, Petrich, Pleven, Sandanski, Simitli, Sofia, Stambolovo, Trun, Tryavna, Shumen, Yablanitsa. The choice of the surveyed municipalities is based on the desire for maximum representativeness of the sample (which constitutes 10% of the total number of Bulgarian municipalities). Small, medium and large municipalities (in terms of population), municipalities with natural limitations, urban, rural, high mountain, border municipalities, etc. are covered. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 164 The content analysis is also based on the outlined priority lines of the main strategic documents at the supranational, national and regional level, related to goal setting at the local level. The methods of comparative and deductive analysis for preparing the presented proposals for sustainable development of the agrarian sector are advocated. 1. PROPOSALS FOR ADDING NEW INTERVENTIONS TO THE PLANS FOR INTEGRATED DEVELOPMENT OF MUNICIPALITIES At the core of the approach to defining the strategic component of each integrated development plan lies a shift in focus from supporting settlements to supporting territories and from sectororiented investments to integrated territorial investments. When developing each integrated development plan, the priorities of the municipal development plan of the respective municipality and its integrated urban regeneration and development plan for the period 20142020 should be taken into account, along with an assessment of the effects achieved and the areas where targeted investments are still needed. The selection of measures and project ideas is also based on socio-economic analysis of the respective municipality, stakeholder consultations, exchange of information with experts from the municipal administration, and other potential sources of information. Consideration is given to defined areas, possible funding sources, readiness for partnership, and project maturity of individual ideas, as well as priorities in sectoral, national and local documents. The strategic framework for the development of a given municipality should represent a logical and functional-temporal projection of the identified and evaluated comparative advantages, potentials, and problems of its territory. It should be directly aimed at providing the necessary conditions for generating tangible inclusive growth of the municipal economy, mitigating intramunicipal imbalances, and ensuring adequate infrastructure provision and service to meet the needs of the local community and business environment. The main goal of integrated municipal development plans should be to integrate the interests of all stakeholders and the entire local community for sustainable development by proposing measures through specific projects in the key areas of sustainability from economic, social, environmental, cultural, and managerial perspectives. 2. POSSIBILITIES FOR SUSTAINABLE AGRICULTURAL SECTOR DEVELOPMENT OF THE The role and significance of the agricultural sector for the overall socio-economic development of municipalities in Bulgaria are often underestimated and, at times, neglected. Although the contribution of agriculture to production and employment at the national level is not significant (NSI, 2022), maintaining the vitality of the sector and those employed in it is of essential importance. The extensive discussions on global food challenges and the factors shaping them have catalysed the search for flexible and innovative solutions to capitalize on the potential of the agricultural sector, counteracting negative demographic trends, and preserving the identity of Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 165 rural communities. To adequately respond to the challenges posed by globalization, urbanization, as well as economic disruptions caused by COVID-19 and the military conflict in Ukraine, the implementation of sectoral policies should be more closely linked to the specificities of each region. The definition of specific instruments and measures should, to some extent, be based on feedback from the population, which will directly reflect their implementation. Detailing them, relying on the "place-based approach," involving all levels of governance (including local civic initiatives), as a tool to ensure the relevance of these measures and generate added value, is also neglected but necessary. Involving local civic initiatives, such as local communities, NGOs, various cluster associations, local initiative groups (LIGs), and others, in the programming, updating (in part, and implementation) of integrated development plans (IDPs), is a guarantee in itself for addressing interventions to specific problems and/or specific needs of rural communities. The introduction of innovations and subsequent improvement of the competitiveness of the agricultural sector should be a top priority. Sub-goals should focus on indirectly correcting negative socio-economic trends and improving living conditions in rural areas, preserving and promoting local identity, among many others. Establishing constructive and active partnerships between local authorities and communities could form the basis of a working approach to achieve these priorities, as well as to minimize a large portion of the generally encountered deficits in integrated development plans of municipalities. 2.1 ORGANIZATION AND CONDUCT OF INFORMATIONAL MEETINGS WITH AGRICULTURAL PRODUCERS/PROCESSORS DURING CAMPAIGNS WITHIN THE ECONOMIC YEAR By presumption, measures related to support for ecological agriculture and those related to modernization and innovation in the sector identify agricultural producers and/or processors as responsible entities for their implementation. Consequently, the achieved results regarding this type of project ideas in integrated community development plans depend on the agricultural producers themselves, their initiative, and proactivity. To a large extent, this initiative (or lack thereof) is linked to the quantity and quality of information provided to them, both regarding potential financial instruments for the development and modernization of their farms, and administrative procedures related to them. Given the logic that integrated community development plans were adopted during the period of the Rural Development Program 2014-2020 (Regulation (EU) 2020/2220), and the Strategic Plan for Agricultural and Rural Development started in early 2023, the need to conduct informational campaigns targeted at agricultural producers is essential. The Strategic Plan for Agricultural and Rural Development includes a much larger number of schemes, new conditions, and requirements, and agricultural producers even from the smallest Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 166 populated areas in the country should be thoroughly acquainted with the opportunities available to them for financial support. In early 2023, the Ministry of Agriculture conducted a national information campaign regarding the Plan, aiming to acquaint agricultural producers with the conditions for implementing its instruments (MAF, 2023). Various interventions outlined in it were presented during the events. However, the one-time conduct of such a campaign in certain locations is not sufficient to reach all agricultural producers and meet their informational needs within the five-year period of implementation. The conditions for an "active agricultural producer" (Article 54, Paragraph 1 of the Law on Assistance to Agricultural Producers) and the Ministry of Agriculture and Food's inspections initiated from July 1, 2023, to establish whether direct payment applicants meet the criteria, have unintentionally caused dissatisfaction among agricultural producers due to the lack of accessible and clear information. The absence of data in the annual activity reports of active producers for the previous year submitted to the National Statistical Institute and/or based on data from annual tax declarations submitted to the National Revenue Agency shows that these bureaucratic procedures are a serious obstacle for a large portion of farmers (Article 20, Paragraph 3 of the Statistics Act). The coding of operations (revenue from sales with code 15110, revenue from financing with code 15411, insurance expenses with code 10320, etc.) in the income and expenditure statement, as well as the possibility of submitting it with electronic signature or personal identification code to the National Revenue Agency in the Business Statistics Information System, also raised certain concerns among producers. Many new farmers, on the other hand, experience difficulties with the procedure for initial registration, when and how it is done, what the mechanism for issuing and receiving a registration card is, respectively - the registration number of the agricultural producer, and many others. Survey forms during initial registration also raise questions - whether a separate survey form is filled out for each plot of land cultivated by the farmer and/or for each type of livestock raised, or if all cultivated areas/raised livestock are recorded in a single form. This "information obscurity" could potentially be eliminated through the organization and conduct of informational meetings with farmers/processors during campaigns within the agricultural year, in collaboration with Municipal Agriculture Services, Regional Directorates of the State Fund "Agriculture," and the National Advisory Service in Agriculture. Establishing effective partnerships with the aforementioned territorial structures for conducting informational meetings aimed at farmers should be initiated by local authorities and ensured by them. The financial resources necessary for holding regular informational meetings during campaigns within the agricultural year can be provided by the municipal budget or through grants. The main objective of these meetings is to provide timely, clear, and focused information relevant to farmers, assisting them in achieving the goals outlined in many integrated community development plans. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 167 Particular emphasis should be placed on specific regulatory requirements related to: Certification of farmers' registration cards, declaring changes in circumstances, and other details outlined in Regulation No. 3 of January 29, 1999 (still in use at present); Requirements when ceasing activities, deregistering from the Register of Farmers, and returning the registration card; Opportunities for re-registration in the Register of Farmers (in case of deregistration or missed annual verification), since: Only registered farmers possessing certified registration cards for the respective agricultural year are eligible to apply for and receive funding under relevant schemes and measures from the European Agricultural Funds through the State Fund "Agriculture"; Only registered farmers have the right to sell their produce in markets throughout the country without cash registers (excluding exchanges and markets). The aforementioned assumes the presence of a linear relationship between the quantity and quality of information provided to farmers and the possibility of achieving satisfactory results in objectives related to the competitiveness of the agricultural sector. The absence of laws regulating industry organizations limits the opportunities for real representation of the interests of Bulgarian farmers (especially small and medium-sized farms). Often, the problems of small farms do not reach the legislator. Small-scale farming poses a number of problems, mainly regarding the lack of sufficient mechanization opportunities, possibilities for implementing new technological solutions, application of good agricultural practices, and development of efficient farming, which are precisely the focus of the strategic vision for sector development, both at national and local levels (Strategic Plan, 2022). Direct contact and the opportunity to hear the opinions and problems of small farmers are yet another motive for initiating these informational meetings. The idea is for their structure to be two-way: 1. Competent experts provide legitimate and sufficiently comprehensive and clear information needed by farmers; 2. Farmers share their problems and difficulties in an attempt to find an effective mechanism for resolving them. Topics related to agreements and concluded contracts for the use of municipal agricultural land, as well as frequently occurring problems with pastures, investment opportunities for irrigation as outlined in the Recovery and Resilience Plan, issues arising from the significant imports of agricultural products from Ukraine, and other current cases should also find a place in these informational meetings. The regulatory framework governing activities in the sector is one of the most frequently supplemented and amended. Timely informing farmers about these changes would have a significant positive effect. Bringing to their knowledge information related to transitional Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 168 national aids and other similar, but insufficiently publicized measures, would also be beneficial for both parties. 2.2 NATIONWIDE PROVISION OF FARMERS' MUNICIPALITIES OF THE REPUBLIC OF BULGARIA MARKETS IN THE The World Health Organization identifies unhealthy eating as a major threat to human health. The lack of essential nutrients in the body due to improper nutrition, as well as overweight, represent particularly prominent trends in developed countries over the past few decades. Its studies indicate that about 60% of all cases of cardiovascular diseases, stroke, and type 2 diabetes could be prevented if people adopt healthier eating habits and are physically active (WHO, 2022). This threat has been identified as a global problem and naturally found its place in the global Sustainable Development Goals of the United Nations. Goal 2 of the Sustainable Development Goals, along with its eight associated targets, is aimed at achieving food security and improved nutrition, as well as promoting sustainable agriculture. In turn, the European Union has also initiated efforts to address this issue. The "Farm to Fork" strategy comprehensively tackles the challenges of sustainable food systems and defines the inseparable interconnection between healthy individuals, a "healthy society," and a "healthy planet." Thus, it rightfully occupies a central place in the United Nations' sustainability agenda, as well as in the European Commission's program for achieving sustainability. The focus of the Strategy encompasses not only accessible, safe, and nutritious food (from a public health perspective) but also mechanisms for generating fair economic returns, promoting the competitiveness of the agricultural sector, and fair trade (Farm to Fork Strategy, 2020). European priorities aimed at supporting small-scale agricultural producers and the products they produce, as advocated in the National Development Program "Bulgaria 2030," particularly sub-priority 6.4.b "Organic production," reflect the compelling trend in recent years towards seeking healthy and proven quality foods by consumers. It is precisely this trend that necessitates the implementation of measures to accelerate the development of this subsector at the local level (National Development Program BULGARIA 2030, 2020). The organization and conduct of farmers' markets at the municipal level are an effective tool for achieving this goal. By its very nature, a farmers' market is a market where independent suppliers (mainly farmers and local producers) offer fruits, vegetables, dairy and meat products, often including prepared foods and beverages, produced in home conditions. These markets are a global phenomenon existing in many countries worldwide and in extensive regions in Latin America, Europe (mainly France), North America (USA and Canada), and Asia. They are part of the life of small communities around the world. The market is a good way for tourists to sample local cuisine, thus promoting the cultural and culinary identity of regions and local communities. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 169 The first farmers' market in the new history of Bulgaria was organized in 2013 in the city of Plovdiv. Today, such markets can be visited in Sofia, Dobrich, Balchik, Varna, Sliven, Pernik, Gabrovo, and others. The advantage of farmers' markets from the consumer's point of view is the direct purchase from the producer of fresh, organic, seasonal, and healthy food. As for the agricultural producer, the absence of third parties (resellers) shortens the food chains, and the added value remains with the producer. The direct contact with the "hands that produce the products" is particularly exciting. The affinity of local consumers for "delicious" and "healthy," as well as the growing role of socalled sustainable consumption, sufficiently justifies the need for organizing and conducting such markets in the municipalities of the Republic of Bulgaria. The following can participate in farmers' markets: Registered agricultural producers; Craftsmen registered under the Crafts Act; Producers of beer and spirits registered under the Law on Wine and Spirits and the Food Act; Establishments, cooks, and culinary specialists registered as mobile or temporary food preparation facilities, according to the Food Act; Traders registered under the Trade Act. Agricultural producers are required to have a registration document according to Ordinance No. 3 of January 29, 1999, and in the case of producers of organic foods - in the Register of Organic Farming of the Ministry of Agriculture and Food. Each of the participants in the farmers' market, regardless of which category they belong to, must meet the following requirements: to be registered in the register kept by the Bulgarian Food Safety Agency; to have Food Safety and Self-Control Systems (Bulgarian Food Safety Agency, 2023). The registration procedure with the Bulgarian Food Safety Agency is significantly facilitated for persons offering products at farmers' markets. This is because participation in them is voluntary and depends on the capabilities and desires of the participant. Registration with the Agency's Register is done by submitting an application in the prescribed form to the respective territorial division depending on the area where the activity is carried out. A list of foods to be offered is attached to the application. Given the transient nature of the markets, the exact location where the goods will be offered is not specified when filling out the application. A state fee is paid for processing the application. Regarding the food safety and self-control systems, they are developed by technologists who are familiar with the current national and European legislation regarding offering, storage, health and hygiene standards, and requirements for working with food. These systems are individual, depending on the type of products offered by the respective farmer. For example, individuals selling low-risk products such as fruits and vegetables only need to monitor good hygiene practices. However, if the commercial activity includes the sale of dairy and meat products, then requirements must be met according to which the products should be displayed in mobile refrigerated showcases. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 170 An important condition for participation in farmers' markets is to offer only own production or products that have been produced in an ecological, natural, and healthy manner, in accordance with the requirements of current European and national legislation. Foods labelled as "bio" or "organic" should possess the respective certification. From the above, it becomes clear that the responsibility for the goods offered at the farmers' market lies with the individuals selling them, rather than with the local authorities, who determine the time, place, order, and conditions for its conduct. Farmers' markets are not regulated in the Law on Support for Agricultural Producers or in any other legislative act. A sub-legal act regulating the specific requirements for the production of small quantities of food in home conditions is also not available. Their regulation is achieved through municipal ordinances governing the order and conditions for placing movable facilities on the territory of the respective municipality. Although sustainable food systems require a collective approach involving state, regional, and local authorities, participants from the private sector, NGOs, social partners, and society as a whole, local proactivity in implementing such initiatives is also of immense importance. To accelerate the transition to healthy and environmentally friendly food chains, policies (at both national and local levels), innovative approaches, and the implementation of good practices are essential because they are instruments for developing and testing solutions, overcoming barriers, and discovering new opportunities. These opportunities support the activities of local producers while ensuring citizens' access to quality local products and goods. 2.3 ORGANIZATION AND IMPLEMENTATION OF AN INFORMATION CAMPAIGN AT THE MUNICIPAL LEVEL, IN CONNECTION WITH THE FRAMEWORK PROGRAM FOR LOCAL TRADITIONAL AND REGIONAL TRADITIONAL PRODUCTS 2022-2032 Sustainable local development largely depends on the possibilities for rational use of available natural resources, the measures implemented to improve the standard of living of the population, and last but not least - the preservation of the cultural identity of local communities. In its endeavour to support less developed regions to achieve growth and increase employment and living standards, the European Commission, through the Common Agricultural Policy, has set three main objectives: improving the competitiveness of agriculture, achieving sustainable management of natural resources and actions in the field of climate, as well as balanced territorial development (Bankova, Ramkovata programa za mestni tradicionni i regionalni tradicionni producti 2022-2032 v konteksta na ystoichivoto razvitie na selskite rayoni, 2023). At the national level, these objectives are directly reflected in several strategic documents, including: the National Development Program "Bulgaria 2030", the Strategic Plan for the Development of Agriculture and Rural Areas of the Republic of Bulgaria 2023 - 2027, as well as in the Framework Program for Local Traditional and Regional Traditional Products for the period 2022 - 2032. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 171 The main goal of the Program is to valorise the traditional products specific to a given territory and strengthen their connection with the communities, aiming at the development of the local economy and the agri-food sector (Ramkova programa za mestni tradicionni i regionalni tradicionni producti 2022-2032, 2021). Considering the fact that regional traditional and local traditional products represent a kind of national wealth, reflecting our Bulgarian cultural identity and heritage as a people, stimulating the production and processing of these products would inevitably contribute to the development and competitiveness of local agricultural producers, to the promotion of social welfare and to the improvement of the quality of the products themselves. Priority is given to the development and consolidation of these products as a stimulus for the socio-economic growth of Bulgarian regions and municipalities, as well as as a recognizable and attractive element of Bulgaria's cultural identity, our culinary map, and tourist destinations (Bankova, Ramkovata programa za mestni tradicionni i regionalni tradicionni producti 2022-2032 v konteksta na ystoichivoto razvitie na selskite rayoni, 2023). As an intervention object, the Program covers all agricultural products and foods intended for human consumption, including wines, flavored vinous products, products based on fruit wines and vinegars, and other alcoholic beverages. However, the specific measures, especially those aimed at assisting producers of products with potential for protection under European quality schemes, remain relatively distant and unclear to farmers and local producers, given the lack of a comprehensive information campaign. Organizing and conducting a series of informational meetings in the municipalities, related to the implementation of the European policy for the quality of agricultural products, foods, and beverages, guaranteeing unified protection of designations as intellectual property rights could mobilize the potential of local producers. Clarifying the possibilities for product certification in one of the three main categories: "Protected Designation of Origin", "Protected Geographical Indication", or "Traditional Specialty Guaranteed" would have a substantial contribution to achieving priorities related to the development of a competitive agricultural sector (Geographical indications and quality schemes, 2023). At present, Bulgarian specific products and foods meeting the provisions of Regulation (EU) No 1151/2012 of the European Parliament and of the Council of 12 November 2012 on quality schemes for agricultural products and foodstuffs, and possessing implementing regulations, are included in the two major European legal registries. Inclusion in the European register "eAmbrosia" includes a total of 69 Bulgarian specific agricultural products, foods, alcoholic beverages, and wines. These include: Gornooryahovski sudzhuk, Bulgarian rose oil, Strandzhanski manov med, Trojanska slivova rakiq, Lovechka slivova rakiq, Sukhindolska grozdova rakiq, Sungurlarska grozdova rakiq, Straldzhanska Muskatova rakiq, Slivenska perla, Pomoriiska grozdova rakiq, Karlovska grozdova rakiq, Burgaska Muskatova rakiq, Grozdova rakiq ot Targovishte, Karnobatska grozdova rakiq, Yambolska grozdova rakiq and 54 wines originating from Bulgaria (eAmbrosia, 2023). Apart from the aforementioned, inclusion in the European register "GIview" also includes: Bulgarian white brined cheese; Bulgarian yogyrt; and Strandzha herbal tea (GIview, 2023). Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 172 Undoubtedly, the list of local traditional and regional traditional products and foods is far from exhausted with already certified ones, but the interest in European quality schemes remains low. The lack of accessible and clear information on the rules and procedures for certification is one of the reasons for the low levels of interest. At present, there is no systematic approach at the national level regarding local traditional and regional traditional products by competent authorities. There is also no publicly available database (such as an electronic platform) to assist interested parties in finding accurate and up-to-date information on issues related to these products. Sporadically, in recent years, limited in time and scope targeted initiatives have been implemented, unfortunately remaining on the periphery of both state policies and public attention. Limiting deficits of this nature would assist in directing collective efforts (of stakeholders) towards popularizing and promoting the production of local traditional foods and beverages. Prioritizing such measures and the potential certification of authentic, traditional local products, foods, and beverages, and valorising them would directly reflect on both local producers and the local economy as a whole. Organizing and conducting information campaigns at the municipal level, with the participation of experts from the Ministry of Agriculture and Food and/or its territorial structures, would mitigate the negative effects of the widely accepted understanding that the limited capabilities of the predominant part of Bulgarian micro and small enterprises to bear the investment costs for ensuring compliance with product specifications make their certification impossible. From a factual point of view, the lack of a large number of agricultural products and foods from the country certified under quality schemes for agricultural products and foods could be defined as a "missed opportunity." Realizing the untapped potential for improving the position of producers of agricultural products and foods in the value chain would inevitably also contribute to sustainable local development and the preservation of our cultural identity (FAO, 2011). Ensuring unified protection of designations as intellectual property rights and providing clear information about products with specific characteristics related to geographical origin enable producers to enhance the image of their products, hence the prices of registered products, as consumers are willing to pay for guaranteed production methods and traditional products (Bankova, Ramkovata programa za mestni tradicionni i regionalni tradicionni producti 20222032 v konteksta na ystoichivoto razvitie na selskite rayoni, 2023). It is increasingly necessary to intervene in a more targeted manner towards achieving a high level of interaction between central government, local authorities, representatives of the agricultural sector, economic entities in the tourism sector, and not least, the local communities themselves, in order to achieve coherence in their actions and a synergistic effect in unfolding the potential of local traditional and regional traditional products. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 173 CONCLUSION The complex socio-economic, political, and demographic reality in Bulgaria presupposes and requires the adoption of a holistic approach to governance, both at the central and local levels. The precise formulation, execution, monitoring, updating, and reporting of strategic documents at all levels of governance are essential for valorising the opportunities for sustainable development. Integrated development plans for municipalities in Bulgaria for the period 20212027 are no exception. As instruments for managing and coordinating the joint efforts of local authorities, businesses, and citizens for balanced and sustainable development of municipalities, they undoubtedly require updating regarding the measures laid out to achieve competitiveness in the agricultural sector. 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Retrieved from Council of the European Union: https://ec.europa.eu/agriculture/eambrosia/geographical-indicationsregister/ European Commision. (2023, 12 20). Farm to Fork Strategy. Retrieved from Council of the European Union: https://www.consilium.europa.eu/en/policies/from-farm-to-fork/ European Commision. (2023, 12 05). GIview - Geographical Indications across the European Union and beyond. Retrieved from: https://www.tmdn.org/giview/gi/search FAO of the UN (2011). Global Food Losses and Food Waste - Extent, Causes and Prevention, International Congress “SAVE FOOD!”, Düsseldorf, Germany Ministry of Agriculture and Food. (2023, 12 18). The national information campaign for the Strategic Plan for the Development of Agriculture and Rural Areas in Bulgaria for the period 2023-2027. Retrieved from MAF: https://www.mzh.government.bg/odz-lovech/bg/home/23-02-27/.aspx National Development Program BULGARIA 2030. (2023, 12 15). Retrieved from Ministry of Finance official website: https://www.minfin.bg/en/1394 National Statistical Institute. (2023, 12 10). EMPLOYED PERSONS BY ECONOMIC ACTIVITIES AND GENDER IN 2022. Retrieved from NSI official website: https://www.nsi.bg/bg/content/4009/%D0%B7%D0%B0%D0%B5%D1%82%D0%B8%D0%BB%D0%B8%D1%86%D0%B0-%D0%B8%D0%BA%D0%BE%D0%B5%D1%84%D0%B8%D1%86%D0%B8%D0%B5%D0%BD%D1%82%D 0%B8-%D0%BD%D0%B0-%D0%B7%D0%B0%D0%B5%D1%82%D0%BE%D1%81%D1%82%D0%BD%D0%B0%D1%86%D0%B8%D0%BE%D0%BD%D0%B0%D0%BB%D0%BD%D0%BEJournal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 174 %D0%BD%D0%B8%D0%B2%D0%BE%D1%81%D1%82%D0%B0%D1%82%D0%B8%D1%81%D1%82%D0%B8%D1%87%D0%B5%D1% 81%D0%BA%D0%B8-%D1%80%D0%B0%D0%B9%D0%BE%D0%BD%D0%B8%D0%BE%D0%B1%D0%BB%D0%B0%D1%81%D1%82%D0%B8 National Statistical Institute. (2023, 12 10). GDP - PRODUCTION METHOD - NATIONAL LEVEL. 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Ministry of agriculture and food, Sofia, Bulgaria Regulation (EU) 2020/2220 of the European Parliament and of the Council of 23 December 2020 laying down certain transitional provisions for support from the European Agricultural Fund for Rural Development (EAFRD) and from the European Agricultural Guarantee Fund (EAGF) in the years 2021 and 2022 and amending Regulations (EU) No 1305/2013, (EU) No 1306/2013 and (EU) No 1307/2013 as regards resources and application in the years 2021 and 2022 and Regulation (EU) No 1308/2013 as regards resources and the distribution of such support in respect of the years 2021 and 2022. (2023, 12 18). Retrieved from EUR-Lex: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32020R2220 Regulation №3 of January 29, 1999 on the establishment and maintenance of the register of farmers, promulgated in the State Gazette, no. 10 of February 5, 1999, amended in no. 62 of July 21, 2023 Statistics Act, Promulgated in the State Gazette no. 57 of June 25, 1999, amended in no. 38 of April 24, 2020 and entered into force on January 1, 2022 Strategic plan for the development of agriculture and rural areas of the Republic of Bulgaria for the period 20232027. (2022). CCI 2023BG06AFSP001. Version 1.1. p. 452-467 World Health Organization. (2023, 12 21). Physical activity. Retrieved from WHO: https://www.who.int/newsroom/fact-sheets/detail/physical-activity Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 175 Teodor Radev Assoc. prof., PhD Department of Management and Marketing, Faculty of Economics, Agricultural university of Plovdiv, Bulgaria Corresponding author: e-mail: radev1974@abv.bg ORCID: https://orcid.org/00000002-5367-2121 Published First Online: 24.06.2024 Pages: 176 – 182 DOI: https://doi.org/10.37075/JOMS A.2024.1.15 GUIDELINES FOR IMPROVING STRATEGIC MARKETING ACTIVITIES IN AGRIBUSINESS ABSTRACT The agrarian business in Bulgaria has potential for development by applying a marketing approach in its management. Agricultural production can be developed by satisfying the needs of the market. The supply of Bulgarian agricultural products faces many market challenges, which forces farmers to look for means to improve the market image of their products. The purpose of the article is to determine guidelines for improving the management of Bulgarian agricultural holdings. Implementation of strategic marketing activities by farmers can improve their economic performance based on better market performance. The correct implementation of these activities requires that they be considered as part of a systemic process that affects all elements of the production and marketing system. This requires that the management functions related to planning, execution and control of marketing activities are performed in the context of the market environment for each particular business. KEYWORDS: process, system, marketing chain, analysis, marketing objectives INTRODUCTION The strategic marketing process begins with articulating the organization's mission and setting its long-term goals. Although these activities are not purely marketing, they are the basis for all others because they are general in nature and operate over a long period of time. Thus, at this stage, the boundaries within which the business will move (develop) in the future are determined and the attitude of the top management and shareholders towards the business is expressed. Although it was established (in the course of the research) that the respondents gave the highest percentage of positive answers to the question regarding the clear formulation of the organization's mission, there are reservations regarding the content of this activity, the utilization of which will increase the quality of the entire marketing process. First of all, it should be noted that it is common for the mission statement to be too narrow in nature, focusing on the product being offered. Such an expression contradicts the basic principle of the marketing concept that the consumer with his needs is the main (starting) point for any business. This also determines the need for the needs that the company wants and believes it could satisfy through its products to be the basis of its mission. Thus, the mission will acquire a permanent character over time, due to the fact that the needs exist objectively, and the products are only a means of satisfying them. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 176 The second direction for improving the formulation of the organization's mission is related to its reality. This problem has two sides - on the one hand, the mission may have an unrealistic character, as it is impossible to fulfil, and on the other hand, in case of a strong underestimation of the company's capabilities, the stimulating function of the mission for the staff is lost, i.e. it is easy to achieve. Therefore, a balance must be found here between these two extremes. To be real and achievable, the mission must be tailored to the company's capabilities and market characteristics, taking into account both the current state and expectations for their future development. Also thus, the mission should stimulate the staff in their activities, which can be achieved by expressing a broader understanding of the business, setting the basic requirements by which the staff should be guided in the performance of their duties. Of course, it is no less important that the staff is familiar with and shares the company mission, which is the result of their motivation. In this way, unidirectionality is achieved in the actions of each of the employees and empathy with the philosophy of the organization. This, in turn, leads to an increase in the efficiency of the business unit's operation and achievement of its goals. After the company mission is formulated, it needs to be detailed, through the main (main) goal and strategic goals of the organization (Borisov and Behluli, 2020). The main objective indicates the specific intentions of the company in the long term, and the strategic objectives take into account those areas that are recognized by managers as key to the realization of the mission and the main objective. For this detailing to be successful, managers need to have information about the needs and state of the market and, through strategic goals, to direct the efforts of associates to meet market conditions. For agricultural producers, it is appropriate that the strategic goals are related to the quality of the products offered; compliance with sanitary and hygienic requirements; establishment of partnership relationships with other economic entities; conservation of natural resources; staff training etc. After defining the mission and strategic goals and before conducting a strategic analysis, market segmentation and target market selection are performed (Borisov and Garabedian, 2020). Thus, on the basis of the expressed mission and goals, the market will be segmented in such a way as to create an opportunity to choose the target market(s) that best suits them. After which to proceed to the next stage - carrying out a strategic analysis. We recommend that such an analysis be carried out, not only on the selected target markets, but also on the others that are currently not in the focus of the company, as this will allow to reveal both the common and the different between the individual segments, as well as to monitors their development so that, under certain conditions, the company can promptly direct its activities to serve new segments. From the results of the conducted research, it is clear that there are significant reserves for increasing the effectiveness of strategic marketing activities at this stage. Market segmentation is the first step, without which it is unthinkable to carry out the next ones from this stage. Its successful implementation requires solving two problems: to define the relevant market, then to select appropriate criteria by which to segment it. According to Krastevich, the relevant market includes the entire set of consumers who will be the subject of the segmentation. It differs from the widely known category of target market. While the target market includes those market segments that are of particular interest to the business organization and to which marketing impacts are directly directed, the relevant market includes the entire set of potential and actual consumers with their needs that are relevant to it. There are different concepts Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 177 according to which an enterprise can define its relevant market. The most important of them are the following: elementary market concept; concept of physical-technical similarity; cross price elasticity concept; concept of functional similarity; concept of expected competitive response; concept of subjectively perceived interchangeability. When solving the first problem, we recommend approaching it not from the point of view of the offered products, but from the point of view of what needs they satisfy in the user. This allows a broader view of the market to be formed, taking into account other products satisfying consumer needs. The broader definition of the relevant market allows to identify more segments that can be fully covered with specially developed company offers. In order to achieve this, it is necessary not only to segment, but also to outline the user profile of each of the segments. Unfortunately, this activity is among the least represented in the enterprises of the branch. Its implementation requires the collection of rich information about users, which is assigned to the relevant specialists. Here is the place of the marketing specialist, researching the market to provide this information, through which to know the characteristics of each of the segments, by answering the questions: "Who are the consumers?"; "What is their social status?"; "How old are they?"; "What motivates them to make a purchase decision?"; "What is their lifestyle?" etc. Collecting this information requires additional costs, but it enables the company to offer a specific marketing mix tailored and meeting exactly the needs of the given segment. This would save significant resources to produce and market products that are not based on consumer characteristics and would be difficult to adopt. Not a small part of the enterprises has focused on offering a mass product, without a clear idea of its user and competition based on price advantage. The creation of specific marketing mixes will personalize consumers and enable the transition to non-price competition, effectively using the other elements to influence demand. Development of such marketing mixes can be undertaken after conducting a strategic analysis of the target markets. It examines all elements of the internal and external business environment, which requires obtaining information about each of them. Without sufficient information in terms of quantity and quality, the results of this analysis cannot be used further, that is why the construction and operation of a company information system has a leading role here. In fact, the quality of strategic analysis is determined by the availability of the necessary information and the methods used to collect and process it, and the improvement of the informationdocumentary base is a prerequisite for its improvement. The presence of multiple subjects in the analysis necessitates the use of registries to gather information about each of them. While for the elements of the macro environment (economic, political, demographic, etc. conditions), various official publications (State Gazette, Statistical Yearbook, publications of governmental and non-governmental institutions, etc.) can be used, which provide the information in a ready form and it only needs to be classified. For the elements of the microenvironment and the internal environment, documents can be developed in which the collected information can be summarized according to certain parameters characterizing the state and actions of each element. The use of ready-made forms would facilitate the process of processing the information and improve its visibility. Samples of such forms are proposed, and we recommend that they be completed by year, after which they should be kept for a longer period of time (7-8 years). Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 178 In particular, the following forms have been developed: When developing a distributor form, the main indicators by which they can be characterized and are relevant in the analysis of this element of the macro environment are included. Since the filling of the form is annual, it contains summary information about each economic entity, which is the result of the information collected throughout the year. This, in turn, requires that all interactions between the company and the distributor be recorded in chronological order. The form also contains ratings that can be given by experts and information about the distributor that the marketing specialists are responsible for recruiting. A competitor form contains information about the products it offers, as well as how it operates in the market. We recommend filling in this form for each target segment separately, i.e. for the same company they can draw up more than one form depending on how many segments it participates in. In this way, the collected information about all competitors is relevant to the specific segment, which makes it easier to carry out a strategic analysis for each segment. Collecting the information contained in a supplier form allows a company to both monitor and evaluate its interactions with each supplier and compare them among themselves. For this reason, the forms must be classified by type of product supplied, and also filled in for potential suppliers who, under certain conditions, would become partners for the company. The emergence of new entrants to the market exacerbates competition, which is why it is necessary to analyse them. Through the proposed form, all new products on the market are registered, and here, too, the filling must be by segments. Despite its usefulness, this form is intended only for already developed and proposed products, and the analysis of this element of the external microenvironment (new entrants) requires also assessing the possibilities of their appearance, which is why only the proposed forms cannot be used. Evaluating the possibilities for the emergence of new participants can be done on the basis of expert assessments, using the information from the competitors’ section. Also, in addition to the appearance of new products on the market, it is also possible for new economic entities to enter the sector. Forms for registering information about the state of the elements of the internal company environment. The proposed forms can be used both to analyse the elements of the internal environment and to compare the achievements with your competitors. During the development of the financial form, 6 main indicators are included, which represent the financial situation of the company. To fill it in, information is used from the company's annual balance sheet and from its income and expense report. Personnel is an important element of the internal company environment due to the fact that it is involved in all business processes. The proposed indicators show how labour resources have been used and their analysis makes it possible to reveal existing potential for their development. A production form can be filled in either by plots (in case they are located at a great distance from each other or there are differences between them), or by varieties grown in the massifs. The information contained in this form makes it possible to analyse how the different plots are used and, on this basis, to foresee measures to improve those that do not meet the established Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 179 company standards (Nikolov, Boevsy, Borisov and Readev, 2020). Also, the registered information allows to reveal the real potential of the company for production. Form marketing contains information characterizing the products offered by the company. It can be completed both for each segment of the markets in which the company participates, and in general for all segments, thus the significance of each of them would be easily assessed. So the proposed forms yes large volume of information is collected, which is often difficult to access. Each completed form participates in the strategic analysis and through them the status of the different farmers involved in the marketing chain can be compared, which is important to reveal their development potential. Although the use of such forms requires the allocation of resources from companies, they have the following advantages: • The collected information clearly and accurately describes the state of the market; • The use of ready-made formats facilitates the collection and processing of information; • Changes in indicators over time can be tracked; • The information is available and it is possible to use it for other purposes, not only for the needs of strategic analysis. Another strategic marketing activity that can increase the effectiveness in formulating, implementing and controlling the marketing strategy is setting quantitative marketing goals in written form (Kolaj, Osmani, Borisov and Skunca, 2019). Its non-performance by a significant proportion of the studied sites indicates an underestimation of this stage, which can be overcome by understanding its role. Goal setting is an important part of any management process and is the basis for planning. Quantifying marketing goals is necessary for at least two reasons: the numbers accurately express what we want to achieve, and they facilitate control over the achievement of those goals. As for their written form, marketing objectives are part of the marketing plan (and of other strategic documents), so they must inevitably be present in it. In order for the set marketing goals to be effective, we recommend that they be aligned with the mission, the main goal and the goals of the other functional areas. Marketing objectives derive from the mission and the main objective, and together with the other functional objectives ensure their implementation during the period for which the marketing plan is developed. Aligning marketing goals with those in other areas will make them real, achievable, which is among the most important requirements in goal setting. In this way, setting marketing goals becomes a process in which managers from all company areas participate, which will make them empathetic to their achievement. After the marketing goals have been set, the goal setting process continues with the determination of specific goals for all elements of the marketing mix, the achievement of which will lead to the realization of the first ones. As a result of this process, the so-called a tree of goals, with the mission at the top, followed by the main goal, from which the goals by functional areas (including the marketing ones) derive, which are detailed in goals by their individual elements. The development of a tree of objectives not only presents clearly and clearly what the organization strives for, but it is also the basis for developing the operational objectives that are the subject of operational management. The Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 180 binding of all these goals in one network shows not only what the company wants to achieve, but also what intermediate states it must go through, which necessitates setting specific deadlines for their achievement. Another problem area in the formulation, implementation and control of the marketing strategy in the studied enterprises is the construction of a system to control its implementation. Control is an important management function, which aims to constantly compare the actual state of the organization regarding the implementation of the marketing strategy and the set desired state. The essence of the marketing strategy requires control to cover the state of the external as well environment, by monitoring the changes that occur in it. In this way, inconsistencies between the changed external environment and the current marketing strategy would be identified at an early stage, which would allow management to take corrective actions in order to establish alignment between them. The construction of a system for controlling strategic marketing activities is based on: • • • • • • creating standards for the state of intra-firm dimensions; monitoring of the elements of the external business environment; evaluating the effectiveness of the organizational structure; evaluating the implementation of the delegated rights and responsibilities for the implementation of the marketing strategy; procedure for correcting registered deviations; evaluating the implemented marketing strategy. Thus, the proposed system monitors the current implementation of the company's marketing strategy, which is summarized at the end of its implementation period with an assessment of its effectiveness. This allows management to use these results in the next management cycle, which ensures continuity between time periods and justification of newly adopted management decisions. Building such a system will inevitably increase efficiency in formulating, implementing and controlling a marketing strategy. CONCLUSION In conclusion, it can be summarized that implementation of strategic marketing activities by farmers can lead to improvement of their economic results based on better market performance. The correct implementation of these activities requires that they be considered as part of a systemic process that affects all elements of the production and marketing system. This requires that the management functions related to planning, execution and control of marketing activities are performed in the context of the market environment for each particular business. Agribusiness has its own inherent characteristics and the implementation of strategic marketing activities helps to improve the service of the market. Strategic marketing activities determine the essence of the marketing strategy of the business and form the basis on which the agricultural holding interacts with the business environment. The need to manage this interaction is provoked by the prospects for business development and the desire for long-term development of agrarian business. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 181 REFERENCES Borisov, P., A. Behluli (2020). Strategic orientation of business organization – step by step. Journal of Bio-Based Marketing, vol.2, 2020, 5-20, ISSN 2683-0825 Borisov, P., H. Garabedian (2020). The impact of the product strategy on the market share. The case of Bulgarian wineries. Journal of Bio-Based Marketing, vol.2, 2020, 42-50, ISSN 2683-0825 Kolaj, R., M. Osmani, P. Borisov, D. Skunca (2019). Empowering partnering links as opportunities for development of the regions: can PPPs work in agriculture? Bulgarian Journal of Agricultural Science, vol. 25 (No. 3) 2019, 468–473 Krastevich, T. Strategic marketing approach in market development. b-ka "Economic World" No. 5, 1993 Nikolov, D., Iv. Boevski, P. Borisov, T. Radev. (2020). Opportunities for joint bio-based marketing of farmers from the reigon of Smolyan. Bulgarian Journal of Agricultural Economics and Management, vol.1/2020, 70-77 Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. I, 2024 pg. 182

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