Problems of Management in The 21st Century, Vol. 15, No. 2, 2020

Problems of Management in the 21st Century, Vol. 15, No.
2, 2020
ISSN 2029-6932 (Print) ISSN 2538-712X (Online)
PROBLEMS OF MANAGEMENT IN
THE 21ST CENTURY
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Prof., dr. Aldona Andrzejczak, University of Economics and Business, Poland

Prof., dr. Constantin Bratianu, Academy of Economic Studies, Bucharest, Romania
Dr. Luca Bussotti, International Studies Center of ISCTE, Portugal
Dr. Camille Carbonnaux, University of Lille Nord de France, France
Assoc. prof., dr. Tsai-Hsin Chu, National Chiayi University, Taiwan
Assoc. prof., dr. Dana Egerova, University of West Bohemia, Czech Republic
Dr. Jorge Lima de Magalhães, Oswaldo Cruz Foundation/FIOCRUZ, Brazil
Assoc. Prof., Dr. Vitalii Nitsenko, Odessa I.I.Mechnikov National University, Ukraine
Dr. Jerzy Kaźmierczyk, Poznan University of Economics, Poland
Prof., dr. Ivars Muzis, University of Latvia, Latvia
Asst. prof., dr. Ivona Orzea, Academy of Economic Studies, Bucharest, Romania
Dr. Ioan Constantin Dima, „Valahia” University of Targoviste, Romania
Prof., dr. Sonia Teresinha de Sousa Penin, University of Sao Paulo, Brazil
Asst. prof., dr. Nikhil Chandra Shil, American International University, Dhaka, Bangladesh
Assoc. prof., dr. Michelberger Pál, Óbuda University, Hungary
Dr. Michal Kubenka, University of Pardubice, Czech Republic
Copyright of this issue is the property of Scientia Socialis Ltd. Lithuania. By virtue of their appearance in this
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Index Copernicus (IC™ Value): 96.40 (2019).

ICDS (Secondary Composite Index Broadcasting): 5.8
Problems of Management in the 21st Century is an international, periodical, peer reviewed scientific journal,
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ISSN 2029-6932 (Print) ISSN 2538-712X (Online) © Scientia Socialis Ltd., Lithuania, 2020
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Contents 75
Editorial
MANAGEMENT IN A TIME OF RADICAL UNCERTAINTY

Marc Jacquinet ........................................................................................................ 76
Articles
THE MANAGEMENT OF ORGANIZATIONAL COMMUNICATION AS A FACTOR

OF SOCIALIZATION: THE MAGAZINE VIDA NOVA
Cantífula de Castro .....................................................................................................79
MARKETING INTELLIGENCE: BENEFITS AND IMPLEMENTATION OF ITS BUSINESS

Siti Maria, Tommy Pusriadi, Dio Caisar Darma ...................................................................92
FORMER PLAYERS AS FOOTBALL COACHES IN POLAND

Adam Metelski, Jerzy Kaźmierczyk .................................................................................100
DATA, INFORMATION AND IT SECURITY - SOFTWARE SUPPORT

FOR SECURITY ACTIVITIES
Pál Michelberger, Ágnes Kemendi ...................................................................................108
THE INNOVATIVE INDUSTRIAL СLUSTER CONCEPT OF REGIONAL MANAGEMENT

FOR SUSTAINABLE DEVELOPMENT OF SOCIOECONOMIC SYSTEMS
Ekaterina Panarina ..................................................................................................... 125
Information
INSTRUCTIONS FOR AUTHORS ..............................................................................144
GAMTAMOKSLINIS UGDYMAS / NATURAL SCIENCE EDUCATION................................147

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76
MANAGEMENT IN A TIME OF RADICAL
UNCERTAINTY
Marc Jacquinet
Open University of Lisbon, Portugal
E-mail: mjacquinet@gmail.com
Societies are still, now, indubitably, in the middle of a major sanitary and health crisis,
all over. If April 2020 was a time of local lockdown in Asia, Europe and the Americas, it is
expanding globally, and countries that are unable or unwilling to manage the spread of the
disease are putting their health system as well as their social and economic activities under
pressure, without ignoring the heavy toll on human populations.
The impact of the Sars-CoV-2 and the resulting disease for humans is already tremendous,
above 3 percent of GDP for the first quarter of 2020 and above 15 or 20 percent for the whole
current year. According to the World Trade Organization (WTO 2020) the decline of global
trade is reckoned between 13 and 32 % (OECD 2020).
As in any big social change, people’s subjective experience of time has changed;
remembrance of the recent past (late 2019 or early 2020) seems so long ago; whilst some distant
memories are springing in the day-to-day mental wandering about what is happening now, and
what is the meaning of all that in the present, and the consequences for the future, for society,
local groups and humanity and how should people behave. The change is not just subjective.
It touches objective dimensions of people’s lives and worlds, close or faraway. What about
the spread of Covid-19, overwhelmed health care systems, panic, stock market turbulence,
foreclosures, sudden spike in unemployment, business closures, and reorganization of corporate
activities and policy orientation? All could be associated to a sudden and unforeseen change.
Three considerations are worth brief discussion: (1) the dimension of risk in the current
crisis; (2) the question of change and its necessity, namely in relation to management practice
and sustainability, and, finally, (3) the question of method in management, at different levels.
Fist, the dimension of risk, in the current meltdown, is central for rethinking the problems,
the difficulties experienced by corporations and workers and to design new solutions, especially
for tackling climate change and sustainability.
That is what social scientists call uncertainty and it encompasses risks. Uncertainty is
an overarching concept and reality which includes the other complementary notion of risk. In
a way, what Ulrich Beck (1992, 2013) called the risk society is the self-reflection of society
and sociology on the unveiling of human activities related to errors, mistakes, ignorance and
complexity. This dimension of risk, how it is defined, managed, shared (in terms of costs and
opportunities) and used (for imposing order or compensation). This dimension is pervasive
and is related to several dimensions of social life, one is the knowledge or ignorance that
characterizes the interaction of agents and group. It is crucial for democratic processes and the
capacity to adapt to unexpected challenges.
The second consideration has to do with the question of sustainability and the difficulties
of changing the path taken up until now. A central feature of the current Covid-19 crisis is the
resistance of the unquantified, the invisible, the social respect, the relationships to other(s) and
the stranger(s), the disease, the fear of the disease, and the loss of habits, friends and family
members, the gathering and social interaction. This could be called the unquantified self, in
contradistinction to what Deborah Lupton (2016) characterized as the quantified self. The latter
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Marc JACQUINET. Management in a time of radical uncertainty
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is very present in the emergence of artificial intelligence, assessment of work, appraisal of 77

behavior and the processes of surveillance and control. The former, the unquantified self, is
much more related to democracy, freedom and family and private life, much more than work
and corporate life.
There is here an opportunity for society and communities to rethink those tendencies
and to bring back what matters to people: up until now, performance (for whom?) rather than
flourishing (for all).
In a few words, the world has changed radically, not just in terms of daily behavior –
through the sanitary and health crisis and the economic downturn, but also in terms of how
management is perceived, valorized and reinvented.
Third, there is a need to change the method in management, both for studying problems,
such as risk, and for implementing change in corporations and business schools, namely in terms
of developing new ways of looking, teaching and researching in the field. A good example is the
evolution of the role played by masks in collective settings (Lynteris 2018).
The problems facing management – as academic discipline and as current practice
in organizations – are much beyond the pale outlook preceding the pandemic crisis. It
calls for deeper thinking about the issues, theoretically, empirically, methodologically and
philosophically. In this final section, two considerations are worthwhile. First, the disciplinary
divides, in and beyond management lead to the accrue necessity of a transdisciplinary or cross-
disciplinary perspective. To move beyond academic and professional silos, it is necessary to
adhere to some form of interdisciplinarity or cross-disciplinarity and deep reflexivity about
management practice or professional routines. The cross-disciplinary routine can help view the
research problems or the management issues (on the job challenges) in another perspective. The
dogma of the 1980s and 2010s “there is no alternative” or TINA, is not sustainable and in the
long run counterproductive, leaving social and health problems unattended.
In the present crisis, the strong disciplinary focus is both a strength and a weakness.
There is no point here to insist on the strong contributions of specialization and a thorough
study of specific phenomena. The weakness of specialization, both in science and in practical
matters such as management, is the absence of conscious concentration, following routines,
and the inability to look beyond the narrow problem, without much attention to the context,
global and local, and to other dimensions of reality. The case of zoonoses is a good example.
Accordingly, this disease can jump from one species to another, if the right conditions happen,
and it can be either detected or people can look carefully at the right combinations of factors that
can make it happen, as it was most probably the case in Huan in late 2019. Some of the factors
are related to climate change, natural disasters, social unrest and political turmoil, coupled with
other triggers such as drive for exotic food and animals, globalization and intensification of
economic exchanges and travel. All those elements combined made a perfect storm.
Combining different scientific and professional approaches can help unveil what is going
out and what emerging risks people can face. The emerging risks are either systemic risks with
interconnected parts such as financial markets and institutions (such as banks) or new risks that
cross boundaries, like the zoonoses that lead to the Covid-19 pandemic and the current crisis.
Second, the question of the method in research is central to better understand what
management is and what are the challenges for managers and scholars beyond the limited realm
of corporations and business schools, in order to include a more critical study of reality, in its
social, natural, economic dimensions; and this means to perfect the way people look at things
in front of them, and at the borders, to reach what matters today and in the future of daily lives,
in all their complexity.
One of the central conclusions is the necessity of cooperation, not just in the search of cures
and vaccines, but also in the overhaul of the economic, social and political system; and management
is much part of it, in business schools, corporations and public administration. It means managing
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Marc JACQUINET. Management in a time of radical uncertainty
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78 more humanely, working together to reach genuine goas for flourishing. This can be translated
into better attention to sustainability and green activities, more focus on understanding risks and
their consequences, and, finally, overhauling our methods of research and behaving regarding
the economy and work.
References
Beck, U. (1992). Risk society: Towards a new modernity. Sage Publications.

Beck, U. (2013). World at risk. Wiley.
Lupton, D. (2016). The quantified self. Wiley.
Lynteris, C. (2018). Plague masks: The visual emergence of anti-epidemic personal protection
equipment. Medical Anthropology, 37(2), 442-457. https://doi.org/10.1080/01459740.2017.123072
OECD (2020). OECD Economic Outlook, Interim Report, March 2020. OECD Publishing.
https://doi.org/10.1787/7969896b-en
WTO (2020). Trade set to plunge as COVID-19 pandemic upends global economy. https://www.wto.org/
english/news_e/pres20_e/pr855_e.htm
Received: June 15, 2020 Accepted: November 12, 2019
Cite as: Jacquinet, M. (2020). Management in a time of radical uncertainty. Problems of

Management in the 21st Century, 15(2), 76-78. https://doi.org/10.33225/pmc/20.15.76
Marc Jacquinet PhD in Economics, Open University of Lisbon, Portugal.

E-mail: mjacquinet@gmail.com
ORCID: https://orcid.org/0000-0003-1157-060X

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THE MANAGEMENT OF ORGANIZATIONAL 79
COMMUNICATION AS A FACTOR OF
SOCIALIZATION: THE MAGAZINE VIDA
NOVA
Cantífula de Castro
Rádio Encontro & Vida Nova Magazine, Mozambique
E-mail: padrecantifula@gmail.com
Abstract
Organizational communication is a key element for the survival, maintenance and consolidation
of human relationships in the workplace. This research aims to understand how organizational
communication is being managed in the Mozambican Catholic Vida Nova Magazine, verifying how
inclusive communication contributes to maintaining good quality of the journal and a high productivity
of employees. The methodology used was qualitative, with a field work that consisted of participant
observation for one year, complemented by semi-structured interviews with key witnesses. The results
showed that Vida Nova Magazine experiences a particular kind of participatory, dialogical and strategic
communication processes, coming mainly from the spontaneity of personal relations and communication
among employees rather than due to a strategic option of the management. In view of the global demands
in the field of social communication, Vida Nova Magazine seeks to broaden its field of action using
instrumental forms of communication, based on new technologies, as digital platforms, both social
networks and the website. The socialization process of its employees is promising as it cooperates in the
consolidation of personal life and is expected to have a new life with Vida Nova.
Keywords: organizational communication, collaborators socialization, community life, information
processing
Introduction
The Magazine Vida Nova is a monthly periodical of a religious type, owned by the
Archdiocese of Nampula and created in 1960 in the District of Meconta, Nampula Province
(Northern Mozambique) and registered under number 05/GABINFO-DEPC/1994. The
magazine was created by the Portuguese missionaries of Boa Nova in Nampula, which later
became managed at the Anchilo Centre by the Comboni Fathers.
Even after 1975, when Mozambique achieved its national independence from the
Portuguese settler, the magazine was never interrupted, even though the new state adhered to
socialist ideology. Meanwhile, a censorship mechanism was activated at the governmental level,
and the Magazine Vida Nova was limited in its freedom of expression in various circumstances,
in line with what was happening with all the activities of the Catholic Church, considered as
an ally of the former colonizer and therefore an enemy of the state (Mounier-Genoud, 2019;
Nhaueleque, 2018; Thomaz, 2008). The Magazine Vida Nova has always maintained its mission,
that is, to be a magazine of "Christian Formation and Information". One of its fundamental
organizational aspects has always been to maintain an adequate level of communication both
internally and externally, in order, on the one hand, to establish a pleasant working environment
with the collaborators, and, on the other hand, to keep the subscribers and, in general, the
readers constantly informed on the main themes addressed.

Cantífula DE CASTRO. The management of organizational communication as a factor of socialization: The magazine Vida Nova
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80 For this reason, this research aimed to understand organizational communication as a

socializing factor in Vida Nova Magazine, verifying how this contributes to maintain the good
quality of the magazine and a high productivity of employees. The study, therefore, focuses on
the internal aspect of communication within this organization, not touching on communication
with readers and subscribers.
Communicating means allowing the flow and exchange of information, dialogue,
exchange of relations and consolidation of increasingly healthy human and labor ties. When
assumed in this perspective of thought, communication gains importance and becomes more
valuable within organizations, taking greater prominence to improve the relationship between
people in an organization and lead to a solid socialization as is the case intended for the
Magazine Vida Nova.
This research made use of the qualitative methodological paradigm, focusing on the
analysis of the journal's own articles and bibliography of works that address the issue of
communication and organizational socialization. For the fieldwork, the same qualitative
methodology was also applied in the analysis of the data obtained through participant observation
and semi-structured interviews with five stakeholders among managers and collaborators of
Vida Nova Magazine. The participant observation was carried out for about a year, the author
being one of the journalists who daily animates the life of this magazine. The position of the
researcher in relation to his subject of study had to rely on a conscious distance, since his tasks
within the magazine often pushed him towards a less critical and more proactive approach, not
recommended in scientific works. As there was no published research on the specific subject
of this journal, a more general literature was used, which helped in the understanding of the
organizational and communication dynamics internal to the object of research.
In this regard, Vida Nova Magazine has been conducted to an analysis of its organizational
structure, to see if its principles and methods are managing to keep it stable and sustainable in
the new economic context that is constantly developing. A very important aspect from this
perspective is the promotion of effective internal communication between employees and the
latter with customers.
Besides investing in the instrumental and strategic dimension, any organization needs to
invest in the human communication dimension. The organizational environment is considered
as a social reality experienced by people who live in it, originating the specific problem based
on this research. According to an internal diagnosis, in the last three years (2017- 2020), the
communication that was maintained by Vida Nova Magazine for six decades did not seem
to flow in the desired way to its collaborators with a view to a favorable socialization. As a
matter of fact, this circumstance may have had a negative impact on the final product, that
is, on the quality of the magazine. Therefore, this research sought to answer the question of
how organizational communication has been driving the socialization of Vida Nova magazine's
employees, and what measures were taken to overcome such stalemate.
Theoretical Framework
Human communication has followed a long road of evolution. Writings attest to the fact
that human communication began in the era of polished stone when the first humans began to
live in small groups. Some researchers, such as Cherry (1996), believed that all communication
is linked to spoken language and to signs created by a certain social group that will use these
linguistic signs to share their experiences and regulate their behavior or even as an instrument
of group coexistence.
The evolution of communication is a legacy that comes to us from many peoples and
ages, from the alphabetic writing of the Phoenicians, the role of the Chinese, the records of the
first civilizations that left us their communicational contribution through the cave paintings that
demonstrate the way of life carried out during prehistory. In Africa, what prevailed was oral
tradition. It is thanks to oral communication that knowledge and other cultural values have been
preserved from older generations to younger generations throughout history to the present day
(Bussotti, 2015).

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In the case of Mozambique, where the adult illiteracy rate prevails to date at 45%, oral 81
communication is still an indispensable and fluent means of transmitting knowledge, especially
of the local cultural heritage. For example, in traditional1 education ceremonies (initiation rites)
- a characteristic practice of the people of central and northern Mozambique - the masters of
ceremonies use oral communication to pass on the values and knowledge of the local cultural
heritage. The traditional education of this people – which, in Northern Mozambique, finds its
main moment in initiation rites, merging cultural, social and religious elements (Nhaueleque,
2012) - "takes on a more formal tone and covers education in all aspects of life. In addition to
preparing young people to assume their responsibility in society, it promotes in them loyalty to
community institutions" (Martinez, 2009, p. 119). From this, it is easy to conclude that human
communication is in accordance with the needs of every age and culture of people. It is not a
finished process; it is continuous because man exists only while communicating. This is why it
is said that communication connects and integrates people and permeates the whole process of
human evolution (Scheid, et al, 2019).
If this is the basis of human communication, in many cases even more so in oral cultures
such as African ones, in corporate communication the approach is not the same. Torquato (1986)
presented the way communication needs and functions within an organization are processed,
establishing three distinct levels: i) The organizational system: referring to the internal structure
of the organization, through which data concerning tasks and operations to be performed
internally are transported; ii) The competitive system: linked to the channels for reaching the
consumer, through which data on the organization’s production activities, consumption of
goods and services and the competitive structure are transported; iii) The environmental system:
which refers to the means of reaching the environment in which the organization operates,
involving the transportation of the social, cultural, political and economic standards by which
the organization is established.
Thus Goldhaber (1999) discussed organizational communication as a complex and open
system that is influenced and influences the environment through message flows that link the
organizational structure to people. In this way, "it analyses the system, the functioning and the
communication process between the organization and its various audiences [...] and configures
the different communication modalities that permeate its activity" (Kunsch, 2006, p. 149).
Therefore, within the organization, enjoying fluid, effective and pleasant communication
between employees and their superiors can generate synergy and motivation among several
other benefits essential for its good functioning, as well as for the improvement of productivity.
This vision is corroborated by Baldissera (2002), for whom organizational communication
must transpose the forms of communication used by organizations to relate and interact with
their audiences.
It is true that communication serves as an instrument and catalyst for socialization
because it cooperates in shaping human behavior, both mental and physical, as well as cultural,
through the experience given by social situations. Mitchell (1998) considers that socialization is
a process of acculturation, communication and permanent learning. Accordingly, for Durkheim
(1897), socialization enables a person to acquire the norms which define moral and ethical
criteria, according to the standards of the society in which he is inserted. In the meantime, it
cannot be said that there is only one form of socialization. In reality, each culture has its own
"pedagogy" of socialization (Costa, 1995). It is a two-way process in which each party tries to
influence and adapt to the other its own convenience and purpose. The adaptation is mutual in
search of a true symbiosis between the parties. In other words, socialization is two-way and
reciprocal. Also, the socialization process is often identified as a learning process, in which the
organization has the pedagogical role (Mosquera, 2000).
1 It is the instructional process made up of ideas, feelings, customs and skills that are transmitted orally
for some time, passing from generation to generation to members of a human society, either through verbal lan-
guage or, equally, through the acts themselves. This process performs personal, social and cultural integration
for the individual.

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82 The classical theories of administration were based on the motivational question and a
purely technical and mechanistic approach. It is noted that here the person is considered as a
robot and appendix of the industrial machine, which reveals to be a prescriptive and normative
approach tending towards a closed system and poor communication. For example, Taylor put
more emphasis on tasks and focus on production as Fayol, put more emphasis on structure
because it ensured efficiency for all parties involved, be they bodies (departments) or people
(such as occupants of positions and task performers), and also defined the task of administration
to foresee, organize, command, coordinate and control. The administrative functions involve
the elements of the administration, i.e. the functions of the administrator (Silva, 1960).
With the advent of the Theory of Human Relations, the respect and appreciation of
the person in its various dimensions has been redeemed and, automatically, communication
in organizations has come to be treated as a social phenomenon, indispensable for good
relationships between the different internal levels. In this respect, the Executive Director of
Vida Nova Magazine ensures that within his organization, "direct and personal communication
with employees on a permanent basis and also indirect communication which takes place
through letters, pamphlets and telephone calls with subscribers and external collaborators
flowing without a shadow of a doubt"2 is clearly visible and practiced.
It was precisely this aspect that was investigated throughout the field work, based on a
vision of human relations theory elaborated by Elton Mayo, according to which organizational
communication, as an activity, happens when possibilities of negotiation, interaction,
participation, recognition and dialogue are presented; when the instrumental guidelines of
corporate communication lose space and it is perceived that the receiver, in the communicative
process, is as important as the transmitter (Macarenco, 2006).
It is this communicational direction that was here proposed as relevant to Vida Nova
Magazine, considering, according to Genelot (1998) that only through communicative acts
individuals and/or groups confront their points of view and engage effectively in the purposes
of the organization.
Vida Nova Magazine uses various forms of communication, both internal and marketing,
to maintain permanent contact with its customers (external audiences), to provide information
on how to pay for annual subscriptions or pastoral activities, to congratulate readers as part of
the celebration of various events and as an advertising mechanism for its services and products.
In this way, the diversity of communication methods provides the organization (Vida
Nova Magazine) with an apparatus of resources that allows greater proximity to its audiences,
both internal and external. New digital communication technologies are redefining the way
people relate to institutions, especially in a contemporary context where the expansion of social
networks, mediated information and, above all, visual information impose challenges in the
field of organizational communication.
This is the factor that, according to Bonato (2020), led the management of Vida Nova
Magazine to invest "in the magazine's web page and Facebook page in addition to the Whatsapp
group, hoping to contribute to greater interactivity with the magazine's readers, especially
reaching the youth in cities that have access to social networks more than young people in rural
areas". In addition to the printed version of Vida Nova Magazine, since the end of 2012 the
magazine has been distributed online through a massive mailing list in PDF format.
Allied to this, Castells (2015) comments that the phenomenon of virtual communication
in organizations is permeating the understanding of the social structure that is consolidating
around networks of activities supported by Information and Communication Technologies,
requiring an adequate posture of institutions according to the behavior of the publics that
inhabit the networked society. The image of the organization gains importance in the external
environment if within it there is an intermittent flow of communication assumed by all.
Thus, nowadays, communication has become an activity responsible for the articulation of
organizational relations at internal, market and institutional levels, as a univocal reality. With
2 Interview held on 10 April 2020 with the Director of Vida Nova Magazine, Bonato, in Anchilo
(Nampula).

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these dimensions, the magazine Vida Nova starts to play a fundamental role, because in addition 83
to reaching several audiences, in the course of the 60 years, it is also an opinion-former. And the
very motto is deeply in keeping with this: "Magazine of Formation and Christian Information".
Research Methodology
General Background
This research had as hypothesis that the participative organizational models, accompanied
by an open communication promoted by the management of the Magazine Vida Nova constitute
the fundamental foundations for the good internal climate and the success and duration of the
magazine.
The research focused on a methodological approach of the qualitative type, based on
two disciplinary areas: on the one hand, a historical type approach, where the evolution of
Vida Nova Magazine was described; on the other hand, an approach based on the sociology of
organizations, with a special focus on internal communication processes. The same qualitative
approach was applied both in theoretical data analysis and empirical research.
Before carrying out the actual research, an exploratory survey was carried out in the
preliminary phase, contacting some people who are part of Vida Nova Magazine, among them
the collaborators and managers of the organization who know the history of the magazine.
Within this exploratory phase, a long process of participant observation was carried out, favored
by the fact that the researcher works in the journal itself, which is the object of analysis. Having
looked at the magazine's internal work from the perspective of the researcher provided valuable
information, which formed the basis for formulating the semi-structured interview with key
informants, which complemented the work.
The next phase of the exploratory research was the literature review, which consisted of
the analysis of books and articles, among other documents. An important source in this phase was
the Vida Nova Magazine itself, which provided relevant documents for the research. However,
difficulties were faced, related to the lack of bibliographic material mainly from Mozambican
authors who address issues around communication and socialization in organizations. This
difficulty has been overcome, in part, by using the material available on the internet (articles and
theses) and using several contacts from friends and well-known people who made documents
available both in electronic and physical format.
Participants
In the sample selection field, the employees interviewed were chosen from a population
of ten people from the magazine, based on the criteria of functions carried out within the
magazine (in the sectors of Management, Secretary, Administration, Printing and Logistics),
the notoriety of their work, availability and good will for the interview. In this way, the number
of interviews was delimited using the saturation criterion, i.e. the information given becomes
repetitive (Martins & Bicudo, 2005).
One of the interviewers had difficulties in writing the answers and to remedy this face-to-
face conversation was used with the recording of the conversation which was later transcribed
literally. The working methodology allowed the interviewers greater freedom in answering the
questions posed.
With regard to instruments and procedures, five stakeholders (managers and employees)
were interviewed. A semi-structured interview was applied to the employees who, at their
request, moved by the current planetary scenario of the Coronavirus pandemic, took the printed
questionnaire to answer.

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84 Data Analysis
The collected material was favorable for the analysis and interpretation of the results
according to the research objectives. The survey responses were analyzed with a focus on the
main questions about communication management and the research goals. Thus, the analysis
of the data consisted of the articulation of all material from the reports of the participant
observation, the transcription of the interviews and the analysis of the consulted documents.
Indeed, attempts were made to establish connections and relationships that would make it
possible to propose new explanations and interpretations. To ensure the confidentiality of the
information obtained, resulting from the interviewees' own request for anonymity, each key
actor was treated with the letter "E" which corresponds to the term Employee.
Research Results
As noted above, the specialized literature divides Organizational Communication

into three dimensions: Instrumental, Strategic and Human (Kunsch, 2006). Throughout the
research, it was apparent that the organization, Vida Nova Magazine, favors the instrumental
dimension of communication. This observation was evident throughout the participating
observation work, for example listening and participating in the conversations of the magazine's
collaborators, and explicitly mentioned by the interviewers. Four (4) of them were unanimous
in reaffirming that there are instruments of internal communication in the Vida Nova Magazine,
which manifest themselves in two ways: "through direct and personal communication with
permanent collaborators and indirect communication with external ones", affirmed collaborator
E4. Among the instrumental means of communication are: "Cell phones, computers, SMS,
e-mails, letters, pamphlets and the magazine itself", as reported by collaborators E1, E3, E4 and
E5. Such means are configured as instruments for conveying information, so they are necessary
to carry out professional tasks, but in an oral culture and far from the new technologies, such
tools can lead to a distancing of the collaborator from his job. Vida Nova Magazine, therefore,
shows efficiency and effectiveness, which may partly explain the success and duration of its
publications, this is also an extremely rare element in the Mozambican context; however, it may
cause strangeness to the collaborators, who may no longer identify with the mission and values
of the magazine.
If, therefore, the instrumental communication part represents a point of strength, the
interviewers show some doubt about strategic communication while they also praise the
human part of communication in the organization, Vida Nova. However, the current context
in which the phenomenon of globalization is prevalent and with significant advances in
information technology and digitalization, it is imperative to rethink the strategic dimension of
communication as a way of keeping up with the demands and constant changes of contemporary
society.
The E4 interviewer considers that good communication within an organization can
improve its own performance and even more "workers collaborate actively and punctually
respecting annual planning". In the opinion of this interviewer, this good communication
motivates the employees because they perceive that they are active members and responsible of
the organization. This fact is embodied in the achievement of the magazine's monthly production
targets and consequent allocation to subscribers and correspondents.
This shows the materialization of the strategic dimension of the organization as it reveals
the pragmatic vision of communication. In this way, it is strategically aligned, through planning
and management, with the overall objectives of the organization and the principles established
in relation to its mission, vision and values.
However, this view is not shared by another interviewer who considers that "there should
be a greater flow of information; allow questionnaires and suggestions within the organization"
(E2). According to this interviewer (an opinion that also emerged through the work of

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participant observation), strategic communication is not being widely applied by the magazine's 85
leaders, communicating little with other members about the most important decisions of the
organization. In order to fill this gap, the Vida Nova Magazine will have to increase, according
to E2, the modalities that allow an authentic sense of flow in the communication process. This
will allow for the participation of all collaborators in the decision-making power and in the
resolution of problems that arise in the course of the work.
Despite these limitations, the interviewers confirmed that there is "a good relationship
between colleagues and management as the main element" - as stated by interviewerE5.
And another interviewer pointed out the existence of "correspondence in the help between
workers, mutual correction and mutual counseling", as highlighted by employee E1. Therefore,
the employees feel that the interpersonal relationship favors a lot for greater organizational
productivity. But this seems to be the result of "personal commitment and willingness to achieve
institutional goals" (E1); "mutual understanding" (E2); "comprehensive and concrete planning
in the face of the various events that the current reality presents" (E4); and "identification
with the common goal to be achieved and the accountability of the entire management of the
magazine" (E4).
The members of the internal editorial staff make this possible through monthly, weekly
and daily meetings with the operators of the magazine's printing and logistics. As a result,
the employees' performance level is considered good and favorable. Nevertheless, this level
of communication is yet strategic and functional to the achievement of good results in the
organizational activity; but what the interviewed employees look for is a community sense of
communication, which means a human form of communication.
The research revealed the presence of top-down mechanisms of communication,
established by superiors to employees within the magazine Vida Nova. Above all, it is a
communication in which information moves from the management to the other members of the
organization following the hierarchical line. As a result, the information transmitted is basically
organizational in nature, such as rules, norms, instructions, reprimands and data for performing
functions.
The research also noted that the organization favors horizontal communication within
the organization. It happens, above all, between employees of the same hierarchical level and
the same sector, but also with other members of different departments; this makes the work
within the organization become multi-sectoral, more holistic, coordinated and provides greater
productivity.
Although there is a high level of organizational productivity, the interviewers are
unanimous in saying that Vida Nova Magazine does not promote training to invest in employees'
professional skills. This is why some consider that the skills materialize "by entrusting each
operator with the task of carrying out the work with self-professionalism" (E4 &E1). They
do not hesitate to sentence that there is no mechanism of internal or external training that can
serve in the professional competences of the collaborators. "I think there are no mechanisms
since there are no internal or external trainings. Therefore, there is a lack of morale. Each one
adapts in his own way" (E1). This idea is shared by two others, who state that "there are no
courses or ongoing training. Everyone in the area in which he or she works learns by working
and getting used to it over time" (E5 &E2). Some collaborators since they started their work
have never had any training other than a few days' explanation when they were inserted in
their tasks and entered the organization. Another group of employees interviewed emphasizes
more the "personal motivation" (E3). The existing professional shortcomings are remedied by
personal findings in the course of the work "requesting full responsibility in the work sector
itself. Entrusting each operator with the task of carrying out the work with professionalism and
active participation" (E4). Despite these gaps that limit strategic communication, research has
shown that the level of performance and skills of employees is high, demonstrating that the lack
of multi-sectorial training does not affect the organization's relationships.

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86 From the participant observation it was noted that the management of Vida Nova
Magazine recognizes that strategic communication is indispensable for a greater attention to
the various events in the country, the search for sources and verification of the journalistic
methodology used in the newsroom; greater interaction of the agents involved in the production
of the magazine; invitation to a greater active participation of all collaborators in the organization
and operationalization of the magazine; greater accountability of the various sectors that should
not wash their hands hoping that others will solve the organizational problems.
Therefore, in order to "pursue" the demands of the current organizational situation,
the internal and external audiences of Vida Nova Magazine play an outstanding role in the
process of forming the organizational image because they are the true coders of the information
they receive and experience through accumulated personal experience and interpersonal
communication with colleagues in the organization.
Moreover, although there are strategic limits, the research showed that the interviewers
perceive that the magazine and its form of communication manage to go beyond instrumental
and strategic communication (which are linked to the professional part), also being interested
in the person and the collaborator as such. The research revealed that the interviewers signal
immeasurable advances as a result of the work done in Vida Nova Magazine. For they manage
to develop personal work, in addition to primary goods; they also invest in private training in
other areas of entrepreneurship, buying land and building their own homes where they welcome
family members. The organization capitalizes on the humanization of the working environment
as a result of the opening up of dialogic channels and greater appreciation of people. In this
sense, if for some communication is a factor of greater "learning and school of life" (E5 &E1)
for others it cooperates in the articulation of family life because they manage to "buy school
material for siblings and nephews; daily food, do small businesses: sale of cakes, ice, maheu3,
etc; invest in personal work and land" (E3 &E2).
According to the research, there is a predominance of human communication within
the organization, probably motivated by the fact that it is promoted more spontaneously by
employees than planned by the highest managers. For employees are subject to "continuous
interactions" (E1) and interpersonal relationships, interaction with internal and external
audiences, as well as the complexity that permeates the communication that happens in them,
help to overcome the merely mechanistic and instrumental vision of communication, thus
incorporating a humanistic vision. This exchange of human communication has been strongly
advocated and loved by Elton Mayo when he explained that organizations need to improve
their relations with everyone in the organization. Workers are not machines (mechanism), but
human beings, thinking and sensitive. Therefore, human interaction and teamwork improves
and standardizes the context of organizational life. Within the magazine Vida Nova, it is
considered that there is "interpersonal collaboration, personalized meetings in different sectors,
coexistence actions and recognition of the work that is done" (E3). In this sense, and depending
on the participating observation work, it is difficult to establish that the magazine Vida Nova
has invested in human communication within its organization, but that it has emerged thanks to
a series of interpersonal relationships between workers, which tend to reproduce the external
environment, based on communitarianism and solidarity.
This important result was confirmed by the interviewers. Asked about the factors that
influence internal communication, the interviewees showed that the human dimension of
communication is necessary because it is a social reality experienced by people who live there.
It is in this context that what has emerged in this research has become a way of understanding
the communication processes in the corporate environment that needs dialogue, information
exchange and participation among managers, employees and the environment. In fact, the
interviewers pointed out the following internal aspects as causes of the corporatization of the
human dimension of communication:
3 Traditional sweet drink made from maize flour and sugar. For its preparation, one kilogram of maize
flour is mixed with three litres of water and baked until it forms porridge, about 20 minutes.

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• Openness, accessibility and availability of information to all employees; 87

• Authenticity in the relationship between employees ensuring effective
communication and teamwork;
• Intensive prioritization of communication in terms of time, resources and
everyone's alignment with the organization's goals;
• Search for precise information to carry out the work effectively;
• Constant learning of what is communicated;
• Mutual trust in internal relations and the fluidity of communication to be achieved;
• Concern to keep the balance between technology and personal contact.
The participant observation grid and document analysis provided the possibility of
perceiving that this communicational structure originates from the genesis of the magazine
itself, as well as from the external environment, which tends to reproduce the communicational
mechanisms within the organization, making it more welcoming and efficient. The origin of
the magazine also seems to have had a significant influence on the affirmation of the human
dimension of communication among the magazine's collaborators. Since it was born as a vector
of communication and information sharing for overall pastoral action, there is consequently an
effort to maintain its characteristic identity in the organizational context. Thus, this model of
organizational management which advocates internal communication allows for a relationship
between people aimed at providing a pleasant environment of human relations and cohesion,
thus being characterized as a horizontal structure, without, however, omitting the asymmetries
of temperament which may exist at the internal level. Moreover, the Theory of Human
Relations has unveiled labor relations giving them respect and appreciation of the person and
communication is now treated as a social phenomenon.
This is how one of the interviewers believes that the interactive processes and the
articulation of the balance "between technology and personal contact" (E5) contribute to the
survival and achievement of the organizational objectives of the magazine. Indeed, the digital
age changes on a large scale the forms of relationships and the way to produce communication.
In this way, communication in organizations becomes in itself the guarantor of the process
of socialization and humanization. It is vital both in the human field and in organizational life
and comprises a series of tools aimed at keeping all employees informed of what is happening
in the organization. Therefore, in all aspects, knowing how to communicate is fundamental so
that the message has no noise and avoids misunderstandings. The anthropological dimension
assumed by communication makes us glimpse the correlation between individual and
collective life mediated by communication. And, in fact, no one lives as an island without
any social insertion, no matter how lonely it may be, and neither is there any society without
communication. Communication is an action inherent to human nature.
Discussion
Organizational communication is an essential tool that favors the transformation

of people's attitudes in the workplace. In fact, in addition to changing ideas, it should also
contribute to changing the individual behavior of those around the dynamics of organizations.
Communication is present in all contexts of life in society and in the corporate environment,
being carried out not only through conversations, formal and informal, phone calls and
meetings, but also through social and human relations every day, as well as the use of written
communication tools. In fact, "it is possible to rationalize human communication as one can
rationalize technical communication" (Walton, 1973, p. 39).
As stated earlier, the instrumental dimension is focused on the technical elements of
communication, and aims to transmit information and enable processes (Kunsch, 2006): in
short, it presupposes the efficiency of organizational communication, without looking too
much at the human component. Strategic communication is also part of the elements that an
organization implements to obtain greater effectiveness in its actions, involving workers more in

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88 the decision making that the company has to take (Kunsch, 2006). Finally, the human dimension
of communication characterizes "normal" communication between human beings, and can find
application even in complex organizations. For example, in an organization such a dimension
should be preferred, rather than suffocating collaborators with a constant bombardment of
technical or instrumental communication, which usually brings the result of dehumanizing
internal relationships, making work a tiring and unenthusiastic exercise (Kunsch, 2006).
This last approach was the bet of Elton Mayo's Theory of Human Relations, which was
proposed to support this research. It is true that for effective communication in an organization,
clarity and objectivity are required. This guarantees the progress of the processes, the
execution of the activity plan and the achievement of the results of the established goals. And
for communication to be effective it is important: assertiveness in the processes; engages and
motivates employees; it reduces internal and external conflicts and improves the organizational
climate.
The research carried out demonstrated the predominance of the three dimensions,
mentioned above, within the Vida Nova Magazine. Thus, contrary to what was postulated by
the classic theories of administration, for its mechanism and technicality, communication in
Magazine Vida Nova is understood to be an instrument and “school of life”. This circumstance is
probably due to the fact that classical authors studied Western contexts, meanwhile the research
here presented tried to analyze the communication flux into an African organization, even if
of Catholic nature. For the mechanisms of internal communication seem highly influenced by
a community approach which is present in the daily life of Vida Nova’s employees, and that
employees tend to reproduce inside their work relations. This process of adaptation between
daily life and work could represent a new line of research for African organizations, which seem
differ from Western approach to organizational communication.
Conclusions
To think about communication is to reflect about a vital process in human existence

because it serves as a basis and foundation for both human life and the life of organizations.
The results of the research and its intersection with the theoretical framework indicated that
there is a predominance and flow of successful organizational communication in Vida Nova
Magazine, although this is mainly due to mechanisms in part foreign to the organizational
and communication line of the magazine. This communicational process generates in the
collaborators involved in the research feelings of integration and belonging in the life of
the organization, at the same time as they participate in the processes of production and
organizational management. Therefore, internal communication makes it possible to establish
channels that enable the agile and transparent relationship of Vida Nova Magazine with its
employees. On the other hand, communication is assumed by all employees as well as between
them and the organization's managers aiming to create relationship, participation, sharing
and socialization in the organization. In other words, communication arises as an element of
promoting understanding, understanding and mutual recognition.
In this sense, organizational communication plays an important role in the humanization
and consolidation of interpersonal relationships within the magazine Vida Nova. And, as a
result, it promotes not only the synergy of different work sectors, the engagement, interaction,
dissemination and democratization of information, but also becomes an instrument for increasing
productivity. In this sense, communication assumes the role of emancipation. Besides being
based on dialogue, it allows questioning and enables the receiver to generate meaning and
develop his or her autonomous system of interpretation. Moreover, the interpersonal relationship
provides a pleasant and cohesive environment for a work team that shares the objectives and
seeks to achieve the goals of the organization.
This type of communication directs the communicative actions with all collaborators
under the same perspective, which gives attention to the internal and external environments,

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always aiming at the strategies of integration of the individual in the life of the organization 89
from the Mission, Vision, Values and Culture of the organization. This is the social character
of communication which, in turn, guarantees the well-being, good coexistence, motivation and
enthusiasm of employees and individuals who train external audiences.
This is why we understand communication in Vida Nova Magazine as the cornerstone
on which the organization is based and takes shape. For 60 years, Vida Nova Magazine has also
been a formatter of opinion, investing in two pillars: "Formation and Christian Information".
In fact, communication and humanization are the greatest challenge for those who want to
reach the levels of openness of dialogical channels and greater appreciation of people. It is not
enough to invest only in the instrumental and strategic dimension of communication, forgetting
the human dimension. In this way, the general objective of the survey was achieved, and all
the hypotheses raised were confirmed. It is true that the research faced limitations related to the
lack of specialized bibliography on native organizational communication, i.e. national authors.
This situation was partly resolved thanks to the information (articles, speeches, etc.) found in
the magazine itself.
Despite the limitations that the research has faced, this does not mean that it has not
brought relevant results that constitute a great lever and/or contribution to the area in which it
fits at national and/or planetary level. Above all, this research can be taken as a starting point
for researchers who are interested in this type of subjects and want to go deeper and bring new
information to the country and the world.
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Received: October 10, 2020 Accepted: December 03, 2019

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91
Cite as: Castro, C. de (2020). The management of organizational communication as a factor
of socialization: The magazine Vida Nova. Problems of Management in the 21st Century,
15(2), 79-91. https://doi.org/10.33225/pmc/20.15.79
Cantífula de Castro Journalist (Editor in Chief of Vida Nova Magazine and Deputy Director of Rá-
dio Encontro, Catholic Broadcaster of Nampula), Master in Sociology of Work
and Organizations by Institute Superior Monitor (Instituto Superior Monitor),
Maputo, Mozambique.
E-mail: padrecantifula@gmail.com

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92
MARKETING INTELLIGENCE: BENEFITS
AND IMPLEMENTATION
OF ITS BUSINESS
Siti Maria
Mulawarman University, Indonesia
E-mail: siti.maria@feb.unmul.ac.id
Tommy Pusriadi
State University of Malang, Indonesia
E-mail: tommy.pusriadi.2004139@students.um.ac.id
Dio Caisar Darma

Samarinda High College of Economics, Indonesia
E-mail: diocaisar@stiesam.ac.id
Abstract
Marketing intelligence (MI) may still sound quite foreign to some people who have never heard this term.
However, this term is certainly often heard by some people, especially those who are in the business
world. The term MI is generally interpreted as knowledge obtained as a result of data analysis in a
company. This paper presents the extent to which the benefits and strategic steps that companies get
by implementing MI. In simplifying the presentation, the auhors use literature study techniques from
various journals and other supporting information. This system is commonly used by companies to be
able to get information about what the company wants to know, for example, in marketing performance
or maybe, sales results or maybe the company wants to know various things about consumer behavior.
So in this case, the company can apply this system to get an overview of certain matters relating to
the products produced. With the presence of MI, business actors can take advantage of all information
and technology that are interconnected, so that it becomes practical convenience in this digital era.
Establishing technology requires facilities such as the internet so that it will change the work environment
for marketers. Those who have adapted to MI, need to carry out further studies to determine consumer
groups and association power so that the business continues to grow.
Keywords: MI, digital systems, business development, supporting information
Introduction
In this digital era, marketing intelligence (MI), as information that is relevant to the
company's daily market, is specifically collected and analyzed because it becomes a consideration
for accurate decision making. So far, MI is the actual information in determining the market
penetration strategy, market opportunities, market development, and the level of competitive
competition. Thus, MI is indispensable when a company or those engaged in business enter the
global market (Al-zoubi, 2016; Tahmasebifard, 2018).
MI is also needed to determine intelligence, provide it to marketing managers, and gather
with the search environment. With the special assistance of software, marketing intelligence
can develop through the local supply of software as a service. Data sources are integrated with
these systems because of the inclusion of multiple data sources (web analytics, sales data,
business intelligence, and data centers) that often come in separate reports, thus placing them

Siti MARIA, Tommy PUSRIADI, Dio CAISAR DARMA. Marketing intelligence: Benefits and implementation of its business
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into one environment. To collect MI, marketing managers are in intensive contact with relevant 93
information, newspapers, books, and other print media containing trade publications (Fan et al.,
2020; Kartika, 2017; Wagner & Zubey, 2015).
Venter and Rensburg (2014) explained that it is necessary to talk with various stakeholders
such as customers, distributors, and additional suppliers. MI should also monitor social media
and conduct online discussions. Marketing managers can design related reports and visualize
data coming from multiple departments and sources (even, in some cases, external data).
The concept of MI, in particular, has developed in both business and academia. Various
studies on marketing are certainly a priority, especially in developing countries because they
are useful for understanding consumers operating in the marketing environment. Referring to
complex awareness, this coincides with their success in conducting marketing studies with
particular consequences so that even if there is clear pressure to explain it, there are usually
barriers to achieving it (Kinsey, 1988; Wright & Calof, 2006).
Research Problem
Currently, most of the middle and lower class businesses still pay less attention to MI,
even though this is quite important to note. MI is the process of gathering information that
will later be used to solve problems related to marketing plans and strategies (Ade et al., 2014;
Igbaekemen, 2014; Keysa, 2020). This activity is usually carried out by trained professionals
so that they are familiar and can collect information without other people knowing that they are
an MI. An MI is also very accustomed to looking for as much information as possible and can
use everything to be used as information (Gresty, 2015; Obeidat et al., 2016).
This MI is an important thing for the process of developing a business. With this MI
activity, companies can find out information about what our target market needs and wants,
target market behavior, and what is currently trending in society. This is very important for the
successful marketing of a new product.
Research Focus
In developed countries, most of them have implemented the MI system well, but in local
companies in developing countries (such as Indonesia) there are still not many companies that
carry out market intelligence activities, especially small companies, and new businesses. They
are still hesitant to carry out market intelligence activities because doing this activity requires
more human resources and costs. On the basis of these considerations, we are interested in
highlighting the beneficial aspects and strategic steps in MI for corporate sustainability.
The model in this study focuses on the predetermined objectives of the role of MI for
corporate sustainability, so a theoretical approach is needed. In order to deepen this concept, at
least it needs a description and critical evaluation of the views of the various studies that have
been carried out so that it becomes a major concern. This work is supported by an analytical
model, i.e. a systematic review. According to Kraus et al. (2020) and Lestari et al. (2020), a
systematic review is part of a literature review that uses systematic methods in comparison of
previous studies, collecting secondary data, and comparing them from perspective.
The theoretical and practical contribution with a literature review can at least bring up
the potential for an idea or thought that can be developed by explaining how and what criteria
should be used in evaluating its quality (Snyder, 2019) in an integrative and systematic way,
that the quality and purpose of implementing effective research can use any type of approach
(Adolphus, 2009; Gentles et al., 2016).

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94 Research Results
Benefits of MI
Basically, the use of MI can provide positive benefits for its users. Some of these benefits
include analysis of consumer behavior, predictions of sales, financial budgets, optimization of
operational performance, and risk analysis (Vishnoi & Bagga, 2020; Qandah et al., 2020).
Consumer behavior becomes something that is considered important for a company in an
effort to market products. By carrying out the act of analyzing consumer behavior, a person can
gain knowledge and understanding of what to do with the product. Producing products should
at least be done based on market demand. So, someone needs to understand what consumers
want, so they can produce products that suit the needs and desires of consumers. After all, a
product will certainly be more easily accepted by the market if it is needed (Aldaihani & Ali,
2019).
MI is also a system that can be useful for companies to determine various steps and efforts
in terms of product sales or marketing. With this system, companies can carry out marketing
activities that are right on target. To achieve the right results, the company should be able to
predict the sales process that will be carried out. The product sales process certainly plays an
important role in marketing the product. The right sale will make the product in demand in the
market so that later appropriate results can be obtained (Maria et al., 2019; Yaseen et al., 2016).
Figure 1 presents that since the presence of the MI system, funds planning or budgeting
can also be carried out appropriately because through this system a company will be led to
conduct surveys in order to obtain various data obtained. The results in the form of data that are
then processed will help determine the various efforts that need to be made as to the next stage.
To determine various efforts, a budget is definitely needed. Therefore, fund budgeting needs to
be done properly so that every step taken by the company tends to be efficient.
Figure 1
The Comprehensive of MI
Source: Authors design
Through a systemized data collection, all employees in a company can work as needed. In
this case, the MI system will help and make it easier for employees to work so that appropriate

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results can be obtained based on all the data that has been obtained. In other words, the 95
operational performance of a company can run more optimally. In the end, optimal performance
can help get the right analysis results so that later the sales process can be carried out on target
(Alshanty & Emeagwali, 2019; Susanto & Samuel, 2017).
The risks that may be experienced by a company are also predictable. In this case, the
use of the MI system can also help companies to carry out a risk analysis. Various possible risks
can be predicted so that the company can then take preventive measures. Prevention efforts are
carried out as a form of anticipation of all risks that may be experienced by the company. For
example, just the risk of loss will result in bankruptcy and even a sharp decline.
Implementation and Strategy
As for the implementation of this MI, there are several steps that are commonly
taken through identifying problems, identifying locations, designing data, surveying data,
and implementing applications (Obeidat, 2016). MI requires information technology as an
important key in responding to market changes, satisfying customers, implementing marketing
plans, and final decision-makers. For example, supermarket chains are formed because they are
broadcast on television because indirectly such media can help promote products. In addition to
information technology assistance, revitalization of knowledge is also being developed, thereby
increasing company sales (Guarda et al., 2012; Mackenna, 2002; Trim & Lee, 2006).
Problem identification is the first step in the MI system. In this case, the problem that
needs to be identified is everything related to the business world. Through this effort, several
kinds of data will be found that are needed to support analytical activities by the company. From
the results of this analysis, results will be obtained regarding all matters relating to the business
or business. Therefore, problem identification must be done clearly so that later clear analysis
results can be obtained (Giménez-Figueroa et al., 2018; Shatnawi, 2015).
Every company, of course, requires a variety of data. In general, efforts are made to
obtain data regarding various things that can support the activities of a company. Also included
in this case is the location related to the data collection process. The location needs to be known
because this location itself will also become data so that it can provide information about
something in a company (Maria et al., 2019).
The data obtained, for example, from the results of a survey by a company is usually still
raw. So, all the data that has been obtained must be processed first before then being analyzed. If
the data has been processed, this means that the data is ready to be converted into a more precise
form and can be processed. The data, which was still raw in nature, needs to be converted into
consistent data (Al-Lozi, 2017).
Steps are needed in retrieving various data that have been processed in the previous
stage. The data taken is then classified based on the main problem. Thus, the data analysis
process can later be done in an easier way. Data analysis can be done by looking at data that
has been centralized so that the results of the analysis can be right on target (Aunkofer, 2018;
Nguyen & Canh, 2020).
The final step in the MI system is to install the applications needed to be able to process
data. You may be able to install applications to help employees carry out all their duties. The
application installed certainly aims to facilitate employee performance in terms of data analysis.
Provide applications that make it easier to access data so that later work can be done more
effectively and efficiently (Paris & Vinogradov, 2013).
Through the MI application according to the steps suggested, of course, there are
various kinds of appropriate and maximum benefits. The same is the case when deciding to
use the appropriate product to support company finances. One of them is through the use of
online businesses. That way, the company's finances can be more optimal and more efficient.

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96 Breakouts can be done more quickly and the potential for cheating can also be maximally
avoided. With the presence of MI, this allows them to measure key performance indicators in
real-time, as quickly as the source provides data, and analyze trends rather than waiting for
analysts to provide reports for long periods of time. In a business context, the combination of
technology, innovation, and strategy with increasing competitiveness makes the high demands
for information need and a challenge in itself (Ilmi et al., 2020). Some good reasons to reflect
the decision-making process that is built on valid information refers to the collection of data
from internal and external sources. Although the volume of information available is always
increasing, it does not mean that people can get hold of it easily (Petrini & Pozzebon, 2003).
Conclusions
MI is designed through a system specifically for managers and employees throughout

a marketing-based company or organization. This allows them to come together because they
have users who tend to be similar to consumer software rather than software that only reaches
out to individual proprietary data sources, so they are designed and useful for analysts. In
practice, MI can collect data in a timely, accurate, and detailed manner. However, from time to
time it requires information technology support because it relates to the design and editing of
special reports.
MI which is used in large-scale companies uses the activity of designing competitive
advantage and customer value analysis in observing competitors. The source of MI used by
large-scale companies is the internal and external environment of the company. The MI factor
used by large-scale companies uses three kinds of factors. The first factor is the observation of
six competitor's main data (competitors' products, competitor prices, competitor promotions,
competitor strategies, competitor sales, and other data relating to competitors. Second,
competitive advantage factors that emphasize information processing related to competitor
innovations such as product quality. Therefore, the third factor used is salesforce through
company insiders to carry out MI, because relying on the company's ability is needed in the
use of these factors. This study is expected to contribute to global markets that are developing
digital systems. As an added value, it needs continuous integration in MI with the support
of managers in various companies and organizations, technological advances, consumers, and
other parties related to product marketing.
Acknowledgements
The authors gratitude goes to both institutions for moral support. The authors have spent
their time, energy, and thoughts in this paper. The highest appreciation goes to the editors and
reviewers of Problems of Management in the 21st Century.
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99
Cite as: Maria, S., Pusriadi, T., & Caisar Darma, D. (2020). Marketing intelligence: Benefits
and implementation of its business. Problems of Management in the 21st Century, 15(2), 92-
99. https://doi.org/10.33225/pmc/20.15.92
Siti Maria Doctor of Economics (Dr), Senior Lecturer, Department of Management, Faculty
of Economics and Business, Mulawarman University, Samarinda City (75119),
East Borneo Province, Indonesia.
E-mail: siti.maria@feb.unmul.ac.id
Website: https://scholar.google.co.id/citations?user=GTu9MPcAAAAJ&hl=id
Tommy Pusriadi Ph.D student in Doctoral Program of Management, Faculty of Economics and
(Corresponding author) Business, State University of Malang, Malang City, 65145, East Java Province,
Indonesia
E-mail: tommy.pusriadi.2004139@students.um.ac.id
ORCID: https://orcid.org/0000-0003-2384-0048
Dio Caisar Darma Master of Economics (M.Si), Researcher, Department of Management, Sama-
rinda High College of Economics, Samarinda City (75242), East Borneo Provin-
ce, Indonesia.
E-mail: diocaisar@stiesam.ac.id

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100
FORMER PLAYERS AS FOOTBALL
COACHES IN POLAND
Adam Metelski, Jerzy Kaźmierczyk
Poznan University of Economics and Business, Poland
E-mail: adam.metelski@ue.poznan.pl, jerzy.kazmierczyk@ue.poznan.pl
Abstract
Should sports clubs be managed by former professional athletes? There is a belief in the sports world
that team management is a mystery, something that only former players can understand. Some studies
indeed indicate that practicing sports may actually predispose a person to also performing managerial
functions. The aim of the research was to verify if former professional football players do better than
other people as coaches of football clubs. The interest in this topic was due to the fact that like a top
manager in a company, a coach is a very important figure in the football club and sport is an important
part of the global economy today. The research was based on the top Polish football league – Ekstraklasa.
The study covered the years 2015-2020 and during this period, a total of 46 head coaches worked in the
analyzed clubs. The results indicate that owners of football clubs often hire former successful athletes,
and in the research group their average results were better than others.
Keywords: former professional players, management in football, team performance
Introduction
The importance of this topic is worth emphasizing, as sport is an important part of the
global economy today. The value of the global sports market in 2018 amounted to almost half
a trillion USD, and it is expected to grow by as much as 25% in the next 4 years (Kutwa &
Rafał, 2019). In 2018, the Polish sports market generated almost PLN 10 billion in added value,
109,000 people worked in the field of sport, and the sports industry generated a total of nearly
PLN 3 billion in salaries. Out of all types of sport, football is definitely the most popular in
Poland, and is practiced by 39.4% of participants of sports clubs (GUS, 2019).
This article focuses on the role of the coach because it is a very important position in
a football club. Like a top manager in a company, a coach is a major representative of the
owners of a football club. He has responsibilities in many areas and makes diverse strategic
and operational decisions which directly affect the team’s performance. A coach’s activities
include among others: selecting game strategies, selecting players for matches, motivating
them, and determining which players to buy or sell during a transfer window (Argentieri et
al., 2019). Football clubs change coaches relatively frequently, and the search for a new one
usually only lasts a few days (Kuper & Szymański, 2017). Usually, club owners do not organize
a professional recruitment process for a coach position, but often follow their instincts or rely
on advisers. Frequent coach changes occur most often because the club's management wants
to quickly improve the team's performance. Some studies indicate that a change of coach may
improve team performance (e.g. the new coach may be able to motivate the players better),
but others do not confirm this (de Paola & Scoppa, 2012). However, a slow and thoughtful
recruitment process, rarely seen in football, can bring positive results, as exemplified by Arsène
Wenger's recruitment by Arsenal London in 1996 (Kuper & Szymański, 2017). Arsene Wegner
worked at Arsenal for the next 22 years and became a true club legend (Koliński, 2020).
Another example of a prudent and patient approach to personnel issues is that of Manchester

Adam METELSKI, Jerzy KAŹMIERCZYK. Former players as football coaches in Poland
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United, when in 1990 no decision was made to dismiss the failing manager Alex Ferguson. 101
How right the decision was, is emphasized by the fact that Alex Ferguson won 38 trophies with
Manchester United over the course of 26 years (Grabowski, 2020).
There is a belief in the football community that there is something mysterious about team
management, something that only former players can understand (Kuper & Szymański, 2017).
Of course, former players like this concept because they can always reply to criticism by saying
that if someone was never a footballer, he or she has no idea about the functioning of a team. It
also seems logical to assume that a former player will better understand how to motivate other
players to play well, and since he has achieved success as a footballer, he will be able to repeat
it as a coach. However, one of the most famous football coaches today – Jose Mourinho, when
being criticized as not being a good footballer in the past, replied: “I don't see a relationship, my
dentist is the best specialist in the world, although he has never experienced a serious toothache
in his life” (Kuper & Szymański, 2017). Another famous coach, Carlo Ancelotti, a former great
footballer, once said: “The football experience helps me only in one situation: I understand
what my players think, but the job is different, you have to learn how to be a manager” (Kuper
& Szymański, 2017, p. 85). In the perception of football players the most significant qualities
of a good coach are: educated, goal-oriented, organized, demanding, knows how to organize a
team, and is able to inspire and communicate information (Petrovska et al., 2020). A coach’s
leadership skills are very important to obtain successful results with a team. It is worth adding,
that leadership in sports is not so different from leadership in general (Acet et al., 2017).
Some studies have shown that practicing sport predisposes a person to performing
managerial functions (Caudill & Long, 2010; Metelski, 2019). Various authors indicated
that practicing sport builds character, promotes discipline and teamwork, and promotes other
qualities valued on the labor market (Bailey et al., 2013; Ewing, 1998). Sport can also contribute
to build human capital (Jaźwiński, 2017) and affect job satisfaction (Kaźmierczyk & Wyrwa,
2017; Metelski, 2020). Physical activity can also constitute a positive signal and help a person
in work. It has been demonstrated that employers more often contacted work candidates who
signaled sport-related abilities (Rooth, 2011). Considering the above, it can be assumed that
being an ex-footballer makes it easier to become a professional football coach.
It is also worth discussing who manages the Polish Football Association, i.e. the
organization supervising all football leagues in Poland. The president of the PFA is Zbigniew
Boniek, who played for the Polish national team (80 matches, 24 goals), participated in three
World Cups (1978, 1982 – third place, 1986), and had a very successful sports career in the
Polish and Italian leagues (PFA, 2020). In addition to President Zbigniew Boniek, the board
also includes 3 other notable footballers: Marek Koźmiński (vice-president for coaching),
Paweł Wojtala and Radosław Michalski. It can therefore be concluded that former successful
footballers have a significant impact on the work of the association supervising football in
Poland. The aim of the study was to check how former successful professional footballers
perform as coaches as compared to people who either did not play professionally or whose
careers were not that successful.
General Background
This study was conducted on the basis of the top football league in Poland – the
Ekstraklasa. The Ekstraklasa is named PKO Ekstraklasa since the 2019–20 season due to its
sponsorship by PKO Bank Polski – biggest Polish bank. Sixteen top Polish football league
teams play a total of 30 games each. The Ekstraklasa is now operated by the Ekstraklasa S.A.
There are some differences in the exact start and end dates of each season, but for the purposes

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102 of this research it was specified that the Ekstraklasa season begins on July 1 and ends on June
30 (lasting for 12 months).
The data used in this study were obtained from the official website of the league
(ekstraklasa.org) as well as from many individual websites of the analyzed clubs. Due to the
excessive number of websites used, it was decided not to mention all of them, but it should be
stated that the data used in the study is available on free specialized sports websites.
Sample Selection
The research group consisted of coaches who worked in the Ekstraklasa from the
2015/2016 season to the 2019/2021 season. The study took into account only those clubs that in
the above-mentioned period consistently played in the Ekstraklasa (every season in the Polish
premier division, the two worst teams are relegated to a lower league).
Instrument and Procedures
In this study, the football coaches were divided based on their experience as football
players. Coaches, who in the past played in a national team or played at the highest level of
competition in a given country for at least five years, were called practitioners, and coaches
without such experience theorists. Among the theorists, one can also find people who played
football in the past, but either for a short time at the highest level (for example Czesław
Michniewicz – 9 appearances in the top league) or only at the lower leagues (for example Kosta
Runjaić and Ireneusz Mamrot). When analyzing the profiles of all the coaches, it should be
noted that almost all of them used to play football themselves, at least in a youth team.
Data Analysis
Microsoft Excel and IBM SPSS Statistics 26 applications were used to process the
quantitative data of research. The obtained data is presented in text and in tables.
Research Results
Being a football coach in a professional league is not a stable job – the results show that
it is rare for a coach to work for a club for even one whole season. Table 1 lists the analyzed
clubs and the names of the clubs’ main coaches in each season. The number in parentheses next
to their names indicates the number of months that they were employed at the club in a given
season.

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Table 1 103
Coaches in the Clubs of the Polish Ekstraklasa in 2015/2016-2019/2020
Clubs
(number of
2015/2016 2016/2017 2017/2018 2018/2019 2019/2020
club
coaches)
Besnik Hasi
Henning Berg Dean Klafurić (1)
(2.5)
Legia War- (3) Jacek Magiera (2.5) Aleksandar Aleksandar
Aleksandar
szawa Stanisław Czerc- Romeo Jozak (7) Vuković (3.5) Vuković
Vuković (0.25)
(12) zesow Dean Klafurić (2.5) Ricardo Sá Pinto (12)
Jacek Magiera
(9) (7.5)
(9.25)
Maciej Skorża Ivan Đurđević (4)
Jan Urban (2) Rafał Ulatowski
Lech Poznań (2.5) Adam Nawałka Dariusz Żuraw
Nenad Bjelica (3)
(10) Jan Urban (4) (12)
(10) Nenad Bjelica (9)
(9.5) Dariusz Żuraw (4)
Radoslav Látal Dariusz Wdowczyk
Waldemar Waldemar
Piast Gliwice Radoslav Látal (8) (2.5)
Fornalik Fornalik
(7) (12) Dariusz Wdow- Waldemar Fornalik
(12) (12)
czyk (4) (9.5)
Jerzy Brzęczek (2)
Piotr Nowak (3)
Lechia Gdańsk Thomas von Piotr Nowak Piotr Stokowiec Piotr Stokowiec
Adam Owen (5)
(9) Heesen (3) (12) (12) (12)
Piotr Stokowiec (4)
Piotr Nowak (5.5)
Tadeusz
Pawłowski (5) Tadeusz Pawłoski
Mariusz Jan Urban (7.5) Vítězslav
Śląsk Wrocław Romuald (5.5)
Rumak (5.5) Tadeusz Pawłoski Lavička
(10) Szukiełowicz(3) Vítězslav Lavička
Jan Urban (6) (4.5) (12)
Mariusz Rumak (6)
(4)
Kazimierz
Pogoń Szczecin Czesław Michnie- Maciej Skorża (4) Kosta Runjaić Kosta Runjaić
Moskal
(6) wicz (12) Kosta Runjaić (8) (12) (12)
(12)
Cracovia Jacek Zieliński Jacek Zieliński Michał Probierz Michał Probierz
Michał Probierz (12)
(5) (12) (12) (12) (12)
Jagiellonia Ireneusz
Michał Probierz Michał Probierz Ireneusz Mamrot Ireneusz Mamrot
Białystok Mamrot (4)
(12) (12) (12) (12)
(6) Iwajło Petew (7)
Ben van Dael
Piotr Stokowiec (5) Mariusz Lewan-
Zagłębie Lubin Piotr Stokowiec Piotr Stokowiec (2)
Mariusz Lewan- dowski (4)
(8) (12) (12) Martin Ševela
dowski (7) Ben van Dael (8)
(8.5)
Kazimierz Moskal
(5) Dariusz Wdow- Maciej Stolarc-
Wisła Kraków Tadeusz czyk (4.5) Kiko Ramírez (5.5) Maciej Stolarczyk zyk (4.5)
(10) Pawłowski (2) Kiko Ramírez Joan Carrillo (6) (12) Artur Skow-
Dariusz Wdowczyk (6) ronek (7.5)
(3.5)
Gino Lettieri
Tomasz Wil- (2)
Korona Kielce man (4) Mirosław
Marcin Brosz (12) Gino Lettieri (12) Gino Lettieri (12)
(8) Maciej Barto- Smyła (5.5)
szek (8) Maciej Barto-
szek (4)
Number of
coaches 19 18 21 17 16
in each season
Note: Bold font – coaches with no notable experience as players (theorists).

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104 In total, during the analyzed period 46 coaches (including 11 theorists and 35
practitioners) worked in the 11 above-listed clubs. It can be said that practitioners accounted
for 76% of all coaches in the analyzed period. Changes occurred frequently (91 in total), but
quite a few times a coach dismissed from a given club found employment in another. The
highest number of changes took place in the 2017/2018 season (21), and the club with the most
changes was the multiple Polish champion – Legia Warszawa (12). This team is so accustomed
to winning in the Polish league that each defeat poses a certain threat to the employment of a
coach. The average period of employment of a coach in Legia Warszawa was only 5 months.
The fewest changes were made in the 2019/2020 season (16), and the club with the longest
average employment period of coaches was Cracovia, where there were no changes at this
position during the seasons. Only two coaches worked in Cracovia in the analyzed period – the
average period of employment was 2.5 years. In all the analyzed clubs, the average period of
employment of a coach lasted for 7.25 months, which is slightly more than half a season. It is
also worth noting that only men and mainly Poles (26 out of 46) were employed as coaches.
In the further part of the study, it was checked at what position in the league the clubs
finished at the end of a given season when led by theorists and practitioners. Due to numerous
changes with coaches in clubs, it was decided that a season could be considered as being led
by a practitioner or theoretician if a given type of coach had been running the club for at least
two-thirds of the season (8 months). Detailed data is presented in Table 2.
Table 2
The Club's Place in the League in 2015/2016-2019/2020 and the Coaches' Experience as
Players
Clubs 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 Average
Legia Warszawa 1 1 1 2 1 1.2
Lech Poznań 7 3 3 8 2 4.6
Piast Gliwice 2 10 14 1 3 6
Lechia Gdańsk 5 4 13 3 4 5.8
Śląsk Wrocław 10 11 10 12 5 9.6
Pogoń Szczecin 6 7 11 7 6 7.4
Cracovia 4 14 9 4 7 7.6
Jagiellonia Białystok 11 2 2 5 8 5.6
Zagłębie Lubin 3 9 7 6 11 7.2
Wisła Kraków 9 6 6 9 13 8.6
Korona Kielce 12 5 8 10 15 10
– theorist, – practitioner.

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In the analyzed period, practitioners on average finished at place 5.73 in the league at the 105
end of the season (SD = 3.74), and theorists at place 7.83 (SD = 4.05). Despite some differences,
it cannot be said that they are statistically significant – as indicated by the Student's t-test for
independent samples t (49) = -1.869; p = .068. Table 2 also shows which teams were the best
on average in the analyzed period. By far the best team was Legia Warszawa, which was the
four-time champion, and only once finished second. The weakest team was Korona Kielce,
which ended the season in the 10th place on average. Looking at these two teams, a person
can notice significant differences, because Legia was led mainly by practitioner coaches, and
Korona Kielce is the only team that employed only theorist coaches. The average positions of
these clubs may also be an indication of the importance of previous experience as a player in
the work of a coach, or indicate how difficult it is to find employment in good clubs without this
type of experience.
Discussion
There is a belief in the football community that there is something mysterious in team
management, something that only former professional footballers can deal with (Kuper &
Szymański, 2017). The example of Poland confirms the existence of this belief because the
owners of football clubs in Poland were indeed much more likely to hire former professional
footballers (so-called practitioners) as coaches (35 out of 46 in the analyzed period). Interestingly
practitioners were also more often employed in the more successful teams (see two Polish top
clubs: Legia Warszawa and Lech Poznań). The aim of this study, however, was to verify if
former professional football players do better than other people as coaches of football clubs. In
the study group, being a so-called practitioner was associated with achieving a better place in
the league, but despite the differences, it cannot be said that they are statistically significant. It
is worth referring to some of the earlier studies that showed that the vast majority of coaches
seem to have no influence on their teams' performance and do not stay in their positions for long
(Kuper & Szymański, 2017). On the other hand, other authors argued that coaches are more
important, especially as demonstrated by comparing football with other industries (Anderson
& Sally, 2014). Relatively rarely, in the literature of the subject, one can find studies devoted to
examining whether former players are doing better than others in the position of a coach. Our
research shows that football experience can be linked to better results as a coach.
Another important result is that being a coach in the best football league in Poland is
not a stable profession. There seems to be a similar pattern in other professional leagues (de
Dios Tena & Forrest, 2007). It rarely happened that one coach worked at the club for the entire
season. Usually, there were changes during the season, and this does not only apply only to the
worst teams, because the highest number of changes with the position of the coach took place in
the best team – Legia Warszawa. As previously stated, Legia Warszawa became so accustomed
to winning in Poland that each defeat acts as a threat to the coach’s position. Frequent changes
of coaches probably result from the belief that the new coach will be able to motivate players
better and this will improve the team’s results. Therefore, club owners in the poorer period of the
team's season often decide to make such a move. It is also usually relatively easier for owners to
change coach than hire or fire many players. Examples of well-known coaches from the English
league – Arsene Wegner and Alex Ferguson, however, indicate that sometimes it is worth being
patient, because in the long term a coach is able to fully demonstrate his skills. These coaches
were working in their clubs for over twenty years. Currently the longest-employed coach in
the Ekstraklasa club is Michał Probierz, who has worked in Cracovia for the last three seasons.
In subsequent studies, it would be worth extending the analysis to other variables, such
as the club's budget, the size of the town in which the club is located, the value of the players,
etc. These variables also affect the team's position in the league to a different extent. It would

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106 also be worth checking whether former professional athletes are also likely to be employed as
coaches in other sport disciplines, and verify if they achieve better results than other people at
this position.
Conclusions
A coach plays a very important role in a football club. He is the direct manager of the
players and often acts as an intermediary between the players and the board members. His
duties include: choosing the match squad, conducting preparations for matches, as well as
ensuring the appropriate motivation and attitude of the players. The aim of the study was to
verify if former professional football players do better than other people as coaches of football
clubs. The research was based on the top Polish football league. The focus was on having
experience as a football player because there is a belief in the football environment that this
type of experience is very helpful in the work of a coach. The results of the study confirm the
existence of this belief, because in Poland, club owners are more likely to hire people who
had a very successful sports career in the past. Furthermore, in the study group, clubs led by
former notable footballers achieved better results than clubs led by coaches without this type
of experience. However, despite the differences, it cannot be said that they are statistically
significant. It is also worth adding that the work of a coach in the professional league is not a
stable occupation, and a coach was rarely able to lead his club throughout the whole season.
In all the analyzed clubs, the average period of a coach’s employment was only 7.25 months,
which is slightly more than half a season.
Acknowledgements
Implemented with support of the Russian Foundation for Basic Research (project 19-29-
07131 "Modeling and measurement of human capital and its forms in the context of economy
digitalization: resources, flows, institutions").
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https://doi.org/10.33225/pmc/20.15.100
Adam Metelski PhD, Assistant Professor, Poznań University of Economics and Business, al.
Niepodległości 10, 61-875 Poznań, Poland.
E-mail: adam.metelski@ue.poznan.pl
Jerzy Kaźmierczyk PhD, Assistant Professor, Poznan University of Economics and Business,
(Corresponding author) Poznan, Zielona Góra, Poland.
E-mail: jerzy.kazmierczyk@ue.poznan.pl

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108
DATA, INFORMATION AND IT SECURITY -
SOFTWARE SUPPORT FOR SECURITY
ACTIVITIES
Pál Michelberger, Ágnes Kemendi

Óbuda University, Hungary
E-mail: michelberger.pal@bgk.uni-obuda.hu,
kemendi.agnes@phd.uni-obuda.hu
Abstract
Data protection, information and IT security became number one priorities in these fast- paced days
that top management needs to focus on. A number of IT solutions have been developed on the market
to address the security challenges that require prompt actions. These solutions contribute to a control
environment that is robust and stand the potential threats. This research describes the framework of
governance, risk and compliance and provides an integrated, holistic approach which helps to increase
process performance and to ensure that the organization follows its own rules, risk appetite, and complies
with external regulations. These systems fulfil a core role in the enterprise’s defense system. This research
reviews the features of security packages relevant to IT GRC and provides an overview of the security
elements and describes their main characteristics. This review covers the configuration database related
to the enterprise business model; the business impact analysis; the risk management-, governance
and compliance functions; the data security; the data protection and GDPR; the business continuity
management; the network -, IoT - and industrial control system safety, the access - and log management.
Embedding these solutions to the business and operations processes strengthens the response of an
organization to the various risks and requirements that it faces and reduces the likelihood of major non-
compliance or security gaps.
Keywords: data protection, GRC software solutions, information security

Introduction
The Corporate leaders often face information security challenges. The IT system of
an enterprise is made up of a number of basic software (operating systems), applications,
database managers, hardware and network components. Significant parts of these components
have information and data protection function. However, users, key users, and administrators
(and external business partners using the IT of the enterprise) are reluctant or unable to take
advantage of the myriad - but sometimes insufficient - opportunities that are “readily available”
on the shelf.
Corporate executives, on the other hand, want to keep their own and their business partners’
data secure; they force company stakeholders to use security-conscious information technology
and to implement complex solutions that support an information security management system
which controls information security threats (Kuyoro et al., 2011). In recent years, a number of
companies have offered complex IT security solutions that oversee, analyze, and support the
role of the IT security manager in all ‘areas of protection’ (Vunk et al., 2017).
Key concern is to understand the need behind proper risk management processes on
enterprise level with respect to data, information and IT security and to identify hands-on
solutions available for corporate stakeholders to manage the security risks. In this research, the

Pál MICHELBERGER, Ágnes KEMENDI. Data, information and it security - software support for security activities
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theoretical framework and the possible features of security software packages are studied to 109
provide both theoretical and practical reference material to address this problem.
Purpose: The purpose of the research was to provide an understanding behind the
framework of governance, risk and compliance model with focus on data, information and IT
security and to provide a structured approach on related security solutions.
Design/methodology/approach – The research purpose has been accomplished through
describing the role of the governance, risk and compliance model and through reviewing the
features of security packages relevant to IT GRC and through providing an overview of the
security elements and specifying their main characteristics.
Findings – The research has identified a set of IT solutions that can be used to manage
the data, information and IT security risks. Furthermore, the research has provided an overview
of the identified software solutions.
Originality/value – The research – that covers data, information and IT security with
respect to software solutions for security activities in enterprises – provides a unique approach
because it brings under one umbrella the literature background behind governance, risk and
compliance model, the proper enterprise defense system and the software solutions that meant
to mitigate the risks in this area. The research identifies the practical solutions and demonstrates
their features. The research can be leveraged as a best practice in corporate environment, can
help to increase process performance and to ensure that the organization follows its own rules,
risk appetite, and complies with external regulations. The research can be used as a tutorial in
this respective area.
Information security management system in practice (areas concerned):
• Classification of information (public, internal, confidential, strictly confidential –
‘confidential handling’)
• Threats and risks
• Encryption (process and stakeholders)
• User access, authorization
• Electronic mail rules
• Internet usage
• Virus Protection
• Password usage (training rules, change management)
• Printing
• Mobile devices and data storage
• Manage archives
• Verbal communication rules
• Control on Information management (clean desk - clean screen, protection of IT
assets and data carriers, prevention of data leakage)
• Backups
• Human resources (recruitment, training, monitoring, dismissal)
• Information and Communication Technology (ICT) vulnerabilities (reliability -
network, firewall, servers, core and application software)
• Logging (logins, transactions, errors, incidents, prints, copies, logs analysis)
• Incident management (lessons learned)
• Responsibilities, procedures
• Information Security Management Systems (ISMS) monitoring and development by
Plan-Do-Check-Act (PDCA) model).
Possible features of security software solutions:
• ‘Inventory’ (configuration database; hardware, network, peripherals, operating
system, database manager, applications (including protection solutions, etc.),
clouds, users, processes (workflow), data assets – i.e. resource properties and their
relationship in a structured way)

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110 • Vulnerability testing and risk management (monitoring of threats and protection
measures developed to address them; risk management plan and risk report
(indicating the degree of vulnerability))
• Log management (broken down by actions), log analysis, database recovery
• User behavior analysis, user authentication, identity management
• Secure data storage
• Compliance assessments, preparation for audit (internal regulations, recommendations
(e.g. COBIT), standards, ISMS (e.g. ISO/IEC 27001))
• Maintenance and testing of Business Continuity Plans (BCP) providing alternative
solutions, incident simulation
• Data protection; compliance with data management rules, the European General
Data Protection Regulation (GDPR) audit
• Network security (gateway, firewall, virus protection, authorization and access
management, Application Programming Interface (API) management).
The Role of GRC Systems
The Governance, Risk & Compliance (GRC) systems cover the organization's safety
network pillars in terms of governance, risk management, and compliance.
Racz et al. pointed out in 2010 that the concept behind the GRC acronym has not yet been
sufficiently explored and its interpretation varies amongst professionals in the so-called Frame
of Reference for Research of Integrated Governance, Risk & Compliance conference paper.
The research team laid down the definition of GRC (see Figure 1.): ‘GRC is an integrated,
holistic approach to organization-wide governance, risk and compliance ensuring that an
organization acts ethically correct and in accordance with its risk appetite, internal policies
and external regulations through the alignment of strategy, processes, technology and people,
thereby improving efficiency and effectiveness.’
Technology is key, but the concept is much more than that; the integrated GRC is designed
to increase process performance and to ensure that the organization follows its own rules, risk
appetite, and complies with external regulations through its strategy, processes, technology, and
consistency of the human factor to enhance synergies and driving performance.
Figure 1
Frame of Reference for Integrated Governance, Risk & Compliance (Racz et al., 2011, p.9.)
Governance
internal policies
Operations Etically correct

managed an behavior,
supported Strategy
improved
through integrated, holistic, efficiency
GRC Processes People
organization-wide
Technology
external
risk appetite
regulations
Risk
Compilance
Management

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The elements of the GRC model (Racz et.al, 2010) are as follows: 111
• Governance - corporate objectives, processes and the organization which operates
the processes, with special emphasis on information technology that also supports
the achievement of underlying objectives (ISO / IEC 38500),
• Risk Management – the identification of expected events and their risks and the
formulation of the expected level of security for all company processes, resp.
information technology tools (Committee of Sponsoring Organizations of the
Treadway Commission Enterprise Risk Management, COSO ERM),
• Compliance - the company must comply with internal regulations, policies, laws,
standards and contractual requirements.
The application of the model also means a comprehensive list of requirements that
is constantly evolving in response to the changing circumstances. The management of the
company is aware of the risks and the expectations it meets at a given moment.
The self-sustaining regulatory circle can lead to risk-based management decisions.
The model manages the corporate strategy, the material and the administrative processes, the
technology and the employees (Michelberger & Lábodi, 2012).
Management tools in support of the company’s decision-making process have a key role
in successful company management (Francsovics et al., 2019). The design and the operation
of the risk management framework have a fundamental role in the company’s risk response
and ultimately reduce the likelihood of major gaps. A well-functioning system has a number of
benefits that generate value for an organization: contributes to transparency, enables continual
improvements, and strengthens the quality management system which increases customer
satisfaction and market position consequently.
GRC systems are linked to the various levels of the organization’s defense system; these
lines are the primary, secondary, and tertiary lines of defense. The three lines of defense model
in effective risk management and control have been defined in the January 2013 resolution of
the IIA (Institute of Internal Auditors, Position Paper, 2013). (See Table 1.)
Table 1
Roles in the Risk Management Process according to the Three Lines of Defense Model
FIRST LINE OF DEFENSE SECOND LINE OF DEFENSE THIRD LINE OF DEFENSE

Risk owners / managers Risk controls & compliance Risk assurance
-operating management -limited independence -internal audit
-riports primarly to management -greater independence
-riports to governing body
Source: IIA Position Paper, 2013, p.6.
The primary line of defense is the risk management embedded in the business processes
itself. The responsibility of business process managers includes the identification and proper
management of the risks in the corporate processes within their competence, and they have to
ensure the operation of controls.
The primary line of defense provides active protection at the level of operational
processes.
The secondary line of defense is the risk management and compliance function, which is
also part of the so-called protection network of the organization; this line monitors and controls
the operation of primary processes.
The third line of defense tests and verifies already as an independent function, in the form
of an internal or external audit.

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112 The above model also reflects the need for an integrated system for managing, effectively
documenting and operating corporate processes (Norman, 2007).
All the three lines of defense play a prominent role in the organization’s broader
governance framework. Governing bodies and members of senior management are the primary
stakeholders (IIA Position Paper, 2013).
The advantages of GRC systems in practice:
- Effective risk management
- Transparent, efficient internal processes, stronger control environment and increased
process security
- Support the decision-making process
- Effective audit support
- Easier identification of continuous improvement opportunities.
The GRC market has been present for about more than 15 years and is characterized by
dominant user demands. The GRC software market is mainly dominated by key players like
IBM, Thomson Reuters or SAP.
Initially, it was characterized by its own developments; nowadays, there is a growing
demand for comprehensive software solutions that large developers can meet. The market
is price sensitive; typical business scenario is that the business need for software needs to
be seriously substantiated in order to win the consent and approval of the company's internal
decision makers and in case of acceptance usually only a limited budget is available.
The functionalities of the software are becoming more and more extensive as a result of
market demands (Cau, 2014; Recor & Xu, 2017a).
A number of software development companies and consulting firms conduct studies on
GRC, but these can be scientifically biased due to their underlying business interests (Racz et
al., 2011).
To review the status quo, we present however the results of Forrester Consulting in 2019,
in which, commissioned by SAP, it assessed the importance of GRC tools in today’s modern
business environment.
As a result, the importance of GRC is widely recognized, however, many companies do
not take advantage of its inherent business values.
Integrating the GRC function into the business processes can be an effective, value-
adding part of the decision-making and planning processes; this requires that GRC-related
corporate practices are more directly integrated into the business workflows.
For investment decisions related to intelligent GRC solutions, the most determining
factors are the increased profitability through the reduced effects of error and better process
efficiency. According to the survey, these solutions are mostly related to risk management and
mitigation, resp. they provide value to companies through continuous monitoring.
By automating the related routine tasks, a more efficient operation of the system can be
achieved (Forrester Opportunity Snapshot, 2019).
Ensuring effective and reliable compliance with Sarbanes-Oxley's segregation of duties
and conflict prevention rules is an example of a labor-intensive, administrative area, where the
implementation of process in-built controls and automation save significant time of human
resources and provide an audit trail as well.
A robust GRC system can also contribute to financial success. The complex regulatory
environment itself and the monitoring of the changes are regular tasks that can be relieved as a
result of automation: minimizing the risk of human error and making routine compliance tasks
more efficient. In addition to the general business risks, such as the macroeconomic situation,
competitors, rising costs / wages, cyber security emerges as a major business risk that needs to
be addressed (Oxford Economics, 2019).

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In simple terms, GRC systems actually serve to protect strategic business goals. The 113
benefit of examining the relationship between strategy and risk is that it helps to identify which
of the different degrees of severity and impact of risks can be described as the most critical ones
for the company (Anderson & Frigo, 2020).
Reliable data quality at all times is efficient, free from error operation calls for the
operation of the GRC modules as an integrated system where a piece of data is recorded only
once and is updated in the related modules.
Overview of GRC Software Functions
The primary function of GRC software is to automate most of the documentation related
to risk management and regulatory compliance that are closely related to corporate governance
and business objectives. Primary end users include internal auditors, compliance officers, and
management. The main functions of the GRC software cover Risk management, Business
Continuity Management, Policy- and Knowledge management, Compliance, Legal and Audit
management. (See Table 2 for the specifications of these functions.)
Through GRC solutions, companies can improve their internal processes and automate
risk management processes, which increases process security and can also result in significant
reduction of manual work.
Table 2
Main Functions of GRC Software
1. Risk- & Business Continuity Management

IT Risk Management, IT Vendor Risk Management, Operational Risk Management, Business
Continuity Management
Supports risk management professionals in risk-related documentation, workflow, assessment,
analysis, reporting, visualization & remedation. This function focuses primarly on risks and
incident monitoring, but may also collect data from risk analysis tools e.g. credit risk, market
risks, etc. to provide a comprehensive status of risks.
2. Policy- & Knowledge Management
Supports the document management process, from policy creation to review and approval,
manages changes and the archiving process, assigns policies to mandates and business
objectives on the one hand, and to risks and controls on the other. It handles also the related
information flow.
3. Compliance, Legal
Corporate Compliance and Oversight Enterprise Legal Management
Supports the relevant professionals in documentation; workflow; reporting and visualization of
control objectives, controls and related risks; questionnaires and self-assesments; testing and
remediation. It covers all areas of compliance, including with internal processes.
4. Audit Management
Supports the internal audit team in managing working papers, planning audit tasks, scheduling
and reporting.
Source: Cau, 2014; Recor & Xu, 2017a

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114 IT GRC
The management of information and communication technologies in the company is

supported by the ISO / IEC 38500 international standard from Australian origin, which can
also be interpreted as a management framework. On the basis of the standard a policy can be
developed which monitors, evaluates and manages how business processes are served from
IT perspective. This addresses the responsibilities of managers, the information technology
aspects of corporate strategy, the procurement and performance of information technology tools
and compliance with business objectives, and human behavior (Michelberger & Lábodi, 2012).
The IT GRC dimension of GRC systems can be interpreted at two levels: 1) the usage of
IT tools to manage GRC processes according to the structure presented in the previous part of
the article, and 2) ensuring that all IT systems and processes that support business processes is
also appropriate from a GRC point of view. In the following part of the article, we review the
main groups of security functions according to this latter definition (Rasmussen, 2009).
GRC Software Review – an Overview of the Security Elements Relevant to IT

GRC
The software available on the market aims to serve a wider range of customer needs. In
the followings (see Figure 2), we provide an overview of what the customer requirements are
and how IT GRC developers respond to the software needs in the digital world (Balasys, n.d.;
Secube, n.d.).
Figure 2
Security Elements Relevant to IT GRC
Inventory BIA Risk Management Governance

Configuration database Risk management plan
Features and and risk report
relationship of resources (indication of degree of
vulnerability)
Compliance Data Security Data Protection BCM-BCP & DRP

Compliance testing GDPR Alternative solutions
Preparation for audits Incident simulation
(internal processes,
recommendations,
standards)
Network Safety IoT Safety ICS Safety Access Management

Gateway industrial safety User profile creation
Firewall and acces management
Virus protection Privileged acces
API safety management (PAM)
Log management (Security Information and Event Management - SIEM; User behavior analysis)

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Inventory Module 115
Inventory module describes the corporate operating model; a configuration database

where the structure, the operation of the company together with the essential resources
necessary for the operation can be recorded and managed. Configuration elements can represent
hierarchical relationships and dependencies/linkages. The basic goal is to correctly map the
underlying corporate structure, therefore being customizable is a prerequisite
The Inventory module is actually the null module, as the workflows of the other modules
are built on this module. It can be interpreted as an inventory of the so-called information
security management system asset.
The configuration elements of the enterprise business model explore and provide a
good overview of the organizational structure including the human resources, the site - and the
inventory structure, the data property, the services and systems, the business and production
processes and the safeguarding measures.
Business Impact Analysis (BIA)
On the basis of business impact analysis, we can determine the value of our resources, the
value of the assets based on their impact by assessing their potential damages that would occur
during possible damage/loss to business activities, systems or data assets. Under damage we
mean breach of availability, confidentiality and / or integrity. Material and intangible valuation
aspects can be also identified, a typical example of this latter case is loss of reputation. BIA
provides input also for the identification and risk analysis of critical resources.
Risk Management
Governance & Compliance functions are covered only briefly since their details have
been already introduced in the earlier sections.
Risk management covers the analysis and management of corporate risks according to
the steps laid down in the risk management methodology. Risk analysis creates a relationship
between the vulnerabilities of our resources and the threats they pose; analyses business impacts
and the safeguards used as a risk management tool. The result of the risk analysis is the list
of risks, which is managed by the company through the risk management plan and related
reports. In the followings the Risk management – Governance & Compliance functions briefly
since their details have been already covered in the earlier sections that contain indication of
the degree of vulnerability. The ISO/IEC 27001 Information Security Management System
and ISO/IEC 27005 Information Security Risk Management Standards are the ISO quality
assurance aspects behind the applied methodology.
Governance
Governance is related to the operation of the information security management system.

With the help of Governance, security tasks and documents related to the maintenance of the
system can be managed; security incidents and security exceptions - that are allowed in special
cases - can be recorded. Incident simulation and related analyses are also part of the system.
Compliance
Compliance refers to compliance with various requirements - such as ISO/IEC 27001

(ISMS), Sarbanes Oxley 404 management assessment of internal controls, internal regulations

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116 e.g. parent company requirements, information security objectives, recommendations (e.g.
COBIT) - compliance review & testing, audit, analysis of deviations and development of action
plans, preparation for audits and their documentation.
Data Security
Data security is a key pillar of IT systems that interweaves the security elements
discussed.
The principles of data security (see Figure 3) are confidentiality (available only to
the authorized individuals), integrity (can only be modified by the authorized persons) and
availability of the information (can be used in the required time and for the duration). These are
the key security goals.
Data security is ensured when the protection is enclosed: all relevant threats are assessed
by the system and the protection is full: all system components are covered, including IT,
physical, and personal security features.
The principle of minimum levels of access requires that jobs are performed with a bare
minimum of accesses through a precise definition of competence in the particular job/role.
Furthermore, the configuration of the IT system is limited also to the necessary services as
the least functionality principle lays that down. The four eyes principle applies where two
independent and competent persons knowledgeable about the process perform checks over
the particular process step to ensure that the execution - and the financial transactions are
properly controlled. This principle has twofold benefits: through the checks of different persons
the segregation of duties is maintained as well as possible process errors, incidents can be
prevented as a result of this control step. In addition as per the protection proportionate to risk
level principle the cost of data security protection is proportionate to the value of the damage
that may occur (Breithaupt & Merkow, 2014; Dayarathna, 2009; Vega et al., 2017).
Figure 3
Data Security Principles
Confidentality
Availability Integrity
Least privilege DATA SECURITY

4-eye principle
principle PRINCIPLES
Least functionality Enclosed- and full

principle protection
Protection
proportionate to risk
level

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Many repositories and software are available in the so-called cloud through the Internet. 117
The spread of cloud-based IT has lifted IT services to a new level, enabling economies of
scale, making backups cheaper as data can be mirrored into multiple redundant locations in the
cloud provider’s network. To ensure appropriate protection against attacks effective operation
of policies and technologies is essential (Marston et al., 2011).
Data Protection, GDPR
Protection of personal data whenever collected is the key objective of the related rules.
Under EU data protection rules the protection of the personal data subject to data collection
must be guaranteed both for digital and paper-based data (Your Europe European Union, n.d.).
In connection with the EU General Data Protection Regulation 2016/679, it is necessary
to register the company's data management activities and to demonstrate compliance.
The European GDPR regulates the organizations’ data management and processing
based on non-information security considerations. The question is what we want, resp. what
we have to protect from our own and our partners ’data. Basic principle is that only as much
personal data (name, address, tax identification number, social security number, e-mail address
and password, bank account number, IP address, portrait, etc.) can be processed and only for as
long as and to the extent that is strictly necessary. Failure to comply with GDPR requirements
(non-compliance) is privacy incident that can result in severe penalties and damage to the
organization’s reputation. In the event of loss of purpose or in case of request, the data must be
deleted (including the paper-based data) and the deletion must be documented. The protection
of personal data is not (only) the responsibility of IT professionals (data processors), but
primarily the responsibility of data controllers (purchasers, marketers, HR professionals, etc.).
If possible, the IT Security Officer, the Data Protection Officer (DPO) and the Information
Security Officer should be three separate individuals who work closely together to resolve data
protection incidents.
Data protection incidents must be reported to the designated authority within 72 hours,
and for instance in Hungary to the National Authority for Data Protection and Freedom of
Information (Politou, et al., 2018).
Business Continuity Management (BCM)
The purpose of business continuity management is to be prepared for possible business

disruptions. From the point of view quality assurance, the ISO 22301 Business Continuity
Management System Standard lays down the requirements for such systems.
The scope of BCM is applied for major impairment of operation in a factory unit or in the
office space, failure in the systems. Among others hardware failure, fire, flood, or loss of human
resources are events for which emergency preparedness through BCM activities with a list of
actions developed by the company is required.
The elements of BCM are the BCP and the Disaster Recovery Planning (DRP).
BCP aims to ensure the continuity of business processes through carefully planning
which alternative solutions can be applied in the event of a downtime in the support-processes
and by doing so making the smooth run of the business possible.
DRP focuses on providing the resources needed for the processes involved in the business
operation - to replace, restore - in the event of an emergency.
The system includes standby preparedness for emergency (resource management
planning, IT resource recovery plan, etc.), testing, ongoing maintenance, simulation of incidents
and emergencies, preparation of statements the measurement of impacts, and setting recovery
time targets (Conrad et al., 2016; Recor & Xu, 2017b).

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118 Network Safety
Network safety is a crucial part of safety in the IT field; security gateways, firewalls,
virus protection, the so-called API security are key to a company’s security system. API security
is covered in detail as the volume of data traffic due to the rapid development of API became
very significant, and recently there have been a number of related security incidents that calls
for attention to this area.
The APIs connect to the Web and cloud services, mobile and IoT devices through machine-
to-machine communication. (An API is a programming interface and its documentation which
allows the system to connect to another program. This solution makes it possible to use the
services of the other program system without the need to know the internal details of the other
program and is independent of the program language.)
The second EU payment services directive, the EU Revised Directive on Payment
Services (PSD2) provides the opportunity for the so-called third party service providers to
access the banks' current account management system and to the data stored in that. API
communication is playing an increasingly important role, so appropriate protection measures
are key.
Sensitive data, such as personal identifiers, financial data, and confidential information,
is handled through the API, so addressing security threats, such as analyzing and controlling
API traffic, is core requirement to focus on to protect systems that store internal data.
The EU General Data Protection Regulation also imposes significant data protection
requirements, which must be complied with. The secure handling of credit card data is subject
to the Payment Card Industry Data Security Standard (PCI DSS) global data security standard
and is intended to protect credit card data and sensitive identification data wherever such data is
processed, stored or transmitted. PCI DSS requires security controls, processes with appropriate
controls over them, information security policies, secure networks and systems, protection of
stored card data and encryption when transmitting data over public networks. By strengthening
the control environment related to data protection, the number of bank card frauds and other
collusions can be reduced (PCI DSS Quick Reference Guide, 2018).
IoT Safety
Internet-connected devices also require enhanced data protection and security measures;
large amount of data is transferred through these devices, data is collected and shared, thus
being in the crossfire of cybercriminals. This is an area requiring special attention in the context
of Industry 4.0. It is essential to control network data traffic, e.g. using security router, as the
necessary protection functions in IoT devices are missing or not sufficiently developed in most
cases. Large volume of sensitive information is shared, such as in case of mobile-managed and
paid online shopping.
The use of IoT poses additional security challenges; increased caution is required due to
the communication of devices connected to the Internet.
The safety requirements of the IoT are described by Babar et al. (2011) co-authors and
are grouped as follows:
1. User Identification: The approval process, which validates the users before using the
system.
2. Tamper resistance: compliance with security requirements, even in the event of
intrusion by malicious parties.
3. Secure Execution Environment: refers to a secure, managed-code, runtime
environment designed to protect against deviant applications.
4. Secure Content: protects the rights of digital content used in the system.

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5. Secure Network Access: network connection or service access is only possible with 119
an authorized device.
6. Secure data communication: authentication of the communication partners,
ensuring the confidentiality and the integrity of data, prevention of the denial of
the communication transactions and protection of the ’identity’ of communicating
entities.
7. Identity Management: this broad administrative area deals with the identification of
individuals / things in a system and controls their access to resources in the system
by associating user rights and restrictions with the user ID.
8. Secure Storage: confidentiality and integrity of sensitive information stored in the
system.
Industrial Control System (ICS) Safety
The safety of industrial control systems is of paramount importance for large market
companies and for strategically important companies (critical infrastructure). In an industrial
environment, a network attack can lead to malfunction, complete operation failure, personal
injury and / or environmental damage.
Attacks can be the so called Advanced Persistent Threat (APT) attacks as well, which
are built-in for the purpose of obtaining hidden information, taking advantage of zero-day
vulnerabilities, temporary unpreparedness of defense devices, in which case the goal is not a
specific damage, but the constant unnoticed presence and espionage (Grooby et al., 2019)
In the era of industrial digital transformation, various attacks, extortion viruses, malicious
codes require a system of protection that provides an adequate level of border protection.
Access Management
Access management – basic principle is to allocate only the accesses that are required
as a bare minimum to perform the job; the roles of the users do not contain access rights that
can cause segregation of duties conflicts; in the event of potential conflicts, appropriate risk
mitigation controls must be introduced. A properly designed and operated access management
process contributes to data security.
The internal control process of user access management is a key IT security process
(see Figure 4): creation of user profiles and assignment of accesses incl. privileged accesses,
managing and monitoring accesses incl. privileged accesses, operation of controls related to
segregation of duties conflicts, and sensitive accesses.

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120 Figure 4
User Access Management Process
Creation of user
profiles & assignment
of accesses
USER ACCESS Priviliged access

Change
MANAGEMENT management &
management
PROCESS monitoring
Protection
proportionate to risk
level
The design and operation of the authorization and access management - from the creation
of user accounts to the granting, monitoring, and, if necessary, termination of access - requires
a robust process.
The so-called Identity and Access Management (IAM) systems are able to manage
the critical security process at the enterprise level that covers who has and which accesses to
networks, data and various applications. Authorization and access management can be used
to efficiently and accurately assign access to users in systems; it is transparent who has access
in the entire IT infrastructure and the associated security and non-compliance risks can be
identified. This simplifies the change management process, including user creation, position
change and exit of the employees. The implementation, operation and maintenance of such
system is costly; it requires a targeted strategic decision to select the right product tailored to
the needs of the company (Muse, 2017).
Privileged Access Management (PAM) covers the management and monitoring of users
with privileged accesses. Due to the assigned privileges these are high-risk user accounts, which
are popular targets for external cyber-attacks. Security risks can be reduced by recording user
activity, logging and analyzing each keystroke in real time.
Log Management
Log management activity logging provides the footprint of events in the IT environment;
fulfils a security function, used as a troubleshooting tool but the logged data serves also as input
for business analysis - such as performance measurement, network traffic analysis.
Security Information and Event Management (SIEM) solutions - covering security
information and event management - play an outstanding role in the IT security strategy;
management of security events and logs form one of their key areas. Successful log management
centrally manages relevant events, defines and documents the covered set categories, is regularly
monitored, and is properly documented (Swift, 2010)

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The so-called syslog-ng is a log management solution that optimizes the performance of 121
the SIEM solution, filters and normalizes log data, thereby reduces the data size and complexity,
allowing fast searching of logged data in almost second. The solution is compliant with legal
requirements. Its safety storage device is the so-called syslog-ng Store Box, which archives
automatically, is a non-manipulable storage device that is encrypted with SSL / TLS protocol,
compressed, and timestamped and is supported by properly defined access controls to protect
stored data. Data collection is central, ensuring transparency (Nawyn, 2003).
User Behavior Analysis
User behavior analysis – through user behavior analysis IT tools can identify abuses, and
as a result of the early detection data theft attempts can be prevented. Digital behavior of the
users in fact provides the digital footprint of the users: typical time of accessing the systems,
typing speed, screen resolution, servers and services used. Behavioral analysis algorithms
can be used to reveal unusual commands executed by database operators and administrators;
this behavior is an automatic risk-increasing factor. User behavior analysis is able to identify
security events that would remain otherwise uncovered: login with stolen credential is collected
though in SngStore Box and is transmitted to SIEM, however, as it is a successful login, it does
not generate an alarm in the SIEM system (Hamornik & Krasznay, 2017).
The high-risk system administrator activity became controllable by the so-called Shell
Control Box (SCB) / Privileged Session Management (PSM) software that is able to monitor
privileged user accounts (One Identity, 2017). The SCB is an activity monitoring device, client
and server independent, so it can be integrated. It controls access to remote servers, virtual
desktops, and networks and records the workflows of users connected to the systems in movie-
like, repayable audit trail domains. Audit logs can be retrieved. The SCB is capable of real-time
alerting and intervention in response to identifying suspicious user activity, such as a dangerous
command.
Conclusions
Data, information and IT security are key objectives for the company management that
are essential in the defense system of an enterprise. Adequate Governance Risk and Compliance
system can contribute to the effectiveness and efficiency of an organization and support the
enterprise management in its strategic objectives. Software support for security activities is
inevitable in managing the risks in the highly digitalized world where the operation is closely
connected to various applications which are exposed to security threats.
A number of security solutions are available to address the needs of an enterprise, thereof
integrated solutions embedded into the day-to-day business and operational processes provide
the best fit to utilize synergies. The features of the software solutions address the various
needs of the customers that arise as part of their operations. These solutions generate value
for an organization in a number of interconnected forms and contribute to an effective risk
management, to transparent, and efficient internal processes, to a stronger control environment
and increased process security. This system strengthens the organization in its decision-making
process.
In this analysis it was provided an overview of the main attributes of a well-designed IT
GRC system that covers the business processes end-to-end. Each of the explained functions -
starting from the inventory module; the business impact analysis; the risk management-,
governance and compliance functions; data security; data protection and GDPR; business
continuity management; network -, IoT - and industrial control system safety, to the access -
and log management – contribute to a well-established control framework that is capable of
managing the IT risks.

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122 Limitations and Future Research
The literature review and the list of corresponding IT solutions introduced in the research
cannot be treated as exhaustive and closed. The nature of data, information and IT security risks
and the variety of issues in the affected area – which changes constantly in the dynamic and
globalized era of digital economy - indicate the need for future research on this matter. Neither
the problems and solutions nor the applied practices are static. Further future research could
capture and compare the security issues and solutions and identify the changes in the field of
applied software solutions.
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124
Received: June 14, 2020 Accepted: November 22, 2019
Cite as: Michelberger, P., & Kemendi, A. (2020). Data, information and it security - software
support for security activities. Problems of Management in the 21st Century, 15(2), 108-124.
https://doi.org/10.33225/pmc/20.15.108
Pál Michelberger PhD, Professor, Institute of Mechanical Engineering and Security Sciences,
(Corresponding author) Bánki Donát Faculty of Mechanical and Safety Engineering, Óbuda University,
Népszínház utca 8., Budapest, Hungary, H-1081.
E-mail: michelberger.pal@bgk.uni-obuda.hu
Ágnes Kemendi PhD Student, Doctoral School of Safety and Security Science, Óbuda Univer-
sity, Népszínház utca 8., Budapest, Hungary, H-1081.
E-mail: kemendi.agnes@phd.uni-obuda.hu

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THE INNOVATIVE INDUSTRIAL СLUSTER 125
CONCEPT OF REGIONAL MANAGEMENT

FOR SUSTAINABLE DEVELOPMENT OF
SOCIOECONOMIC SYSTEMS
Ekaterina Panarina
Anahuac University, Mexico
E-mail: ekaterina.panarina@anahuac.mx
Abstract
The focus on the relationship between sustainable development, regionalism and clusterisation of
economy formed a scientific interest of the present paper. Based on a questionnaire filled in by a sample of
managers from 3 cluster-oriented regions of Russia, the perception of business strengths and weaknesses
and the assessment of the external environment were investigated and paralleled with the main causes for
the success of clusters or underutilization of the clusters integrated benefits.
The efficiency of a region’s cluster-type development was linked to optimization of resources potential
and national industrial complex enlargement, growth of market infrastructure, recruiting qualified
personnel, attracting small and medium-size innovative businesses, and collaborative engagement of all
entities participating in the strategic alliance within a cluster. The purpose of this research was to identify
key factors of successful clustering of an economy based on experience of foreign clusters and leading
clusters of the Russian economy, and to stimulate the influence of innovative clusters on regional social-
economic development in Russia.
The research methodology is based on the cluster concept of regional management and numerous case-
studies that describe the cases of high-tech clusters nationally and internationally.
Conclusions of the study give a plausible picture of the level of development, interrelated with the quality
of business strategies in the measured regions, and ask for a comparative analysis of more Russian
regions.
The present study contributes to the government body of regional management to approach sustainable
development of social-economic systems and increasing entrepreneurial activity in the regions of the
Russian Federation.
Keywords: cluster efficiency, cluster strategy, economic competitiveness, innovation economy, innovative
industrial cluster, national innovation systems, regional development, clustering success factors
Introduction
The purpose of this research was to study best practices of cluster formation in Russia
and foreign countries, in order to validate preconditions for development of highly effective
territorial clusters. In the paper, we determine the key factors that create conditions for operation
of a cluster in a sustainable way, and we outline different characteristics of economic clustering,
especially its innovative focus.
The hypothesis of this research is to propose clustering in a regional economy as a
mechanism of enhancing well-being and competitiveness in a region under globalization of
social and economic processes.
The findings of this study contribute for the deployment by the government body of
regional management to approach sustainable development of social-economic systems and
increasing entrepreneurial activity in the regions of the Russian Federation.

Ekaterina PANARINA. The innovative industrial сluster concept of regional management for sustainable development of
socioeconomic systems
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126 The Concepts of Clustering of National Economies
The realities of contemporary economy set new priorities for Russia. With the commodity
markets globalization, the cluster development concept for the Russian economy is gaining in
importance, with its main priority being to foster intensive economic growth through innovative
development and diversification of business activities in the regions.
Clusters have multiple purposes: innovative modernization of production; activation
of investment practices; development of enterprise infrastructure; creation of trend-setting,
progressive human capital assets; generation of employment; raising living standards in the
region and others.
Innovative cluster is a management mechanism that enables the creation of effective
business models with a defined specialization based on interaction of every participant involved
in value chain creation, starting with scientific research, proceeding with marketing and
consumption of the innovative products.
Clusters and clustering processes keep interest of academics, regional policymakers and
business people during the last 30—35 years (Asheim et al., 2006; Porter, 2000). In the literature,
clusters are presented in many types, sizes and origins, and there is a wide array of cluster
definitions, and ways to maintain it with innovative focus and sustainability (Martin & Sunley,
2003). However, the uncertainty surrounding the debate, calls for conceptual discussions.
The role of clusters in development and enhancement of innovative activities has been
studied by many foreign researchers, such as Best (2001), Porter (1998, 2000, 2003), Castells
and Hall (1994), Enright (2000), Boja (2011), Breschi & Malerba (2005), Shakya (2009) and
others. Foreign and national cluster development practices were analysed by the Russian authors
Porvatkina (2011), Kutsenko (2015), Britsko (2013), Maslikhina (2016), Yashin et al. (2017),
Panarina (2016, 2017) and others. Nevertheless, the results of their research do not provide a
clear view on key factors of industrial clustering in specific regions and do not outline different
characteristics of economic clustering especially with its innovative focus.
The present research is based on the cluster concept of regional development by
Porter (1998) who viewed competitiveness of a country from the perspective of international
competitiveness of clusters (union of enterprises from different sectors). According to M.
Porter, in the modern economy, especially in the context of globalization, traditional division
of the national economy into sectors and industries is losing its relevance. Clusters (networks
of interactions between enterprises and organizations) are taking leading positions (Porter,
1998). Porter’s (1998, 2000) work on clusters has proved especially influential and inspired
policymakers over the world to use his model as a tool for promoting regional competitiveness,
innovation and growth. Porter (2000, p. 15) defined a cluster as a ‘‘geographic concentration of
interconnected companies, specialized suppliers, service providers, firms in related industries,
and associated institutions (e.g. universities, standards agencies, trade associations) in a
particular field that compete but also cooperate’’.
Innovative clusters are seen as a driver of national economic growth at the works of
Bathelt (2005), Martin and Sunley (2003). Other contributions include Malmberg and Power
(2006, p. 57), who have pointed towards some generic criteria for cluster formation: ‘‘There
should be a spatial agglomeration of similar and related economic activity; these activities
should be interlinked by relations and interactions of local collaboration and competition;
there should be some form of self-awareness among the cluster participants and some joint
policy action’’. Yeung el al. (2005) focuses on the origin of the cluster and separate between
an endogenous or self-organized cluster and an intentional cluster. The origin of the first one is
closely linked to classical agglomeration and cluster effects (knowledge spill overs, collective
learning, rivalry, complementarity, proximity, etc.), while an intentional cluster is closely linked
to policy strategies and government support. Such an idea of policy-driven clusters is further

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developed by Richardson (2010, p. 59), who defines this as clusters that ‘‘...owe their origin 127
to the direct action and strong commitment of governmental actors who set the conditions for
the clusters creation either in response to an industrial crisis, or to promote regional growth’’.
Following the academic recommendations many regional policymakers around the
world have tried to replicate successful regional clusters by designing, promoting and creating
clusters, however some of them failed due to lacking an industrial foundation (Martin & Sunley,
2003). Fløysand et al. (2012) developed the concept of working clusters (a critical mass of
knowledge, expertise and resources that create agglomeration economies), latent clusters (a co-
location of firms that forms a critical mass, but that have not developed the level of interaction
necessary to benefit from co-location) and potential clusters (clusters with only some of the
elements necessary for a working cluster) and illustrated industry-driven clusters at various
levels of development.
In the era of economy’s digital transformation, development strategies of innovative
industrial clusters should be based on endogenous models developed in works by Clausen and
Rasmussen (2013), Cooke (2001), Delgado et al. (2014, 2016), Dunning and Narula (2005),
Frej and Gause (2001), Kuznetsova and Roud (2014), Woodward (2012), etc. Technological
factors are driving factors of cluster development in empirical research by Clausen and
Rasmussen (2013) who proved that intentional technological changes are the core factors of
economic growth, and that technology development level lies in direct proportion to invested
resources. Investments add value to technologies, and technologies add value to investments,
and this spurs economic growth. Endogenous models explain growth as based on inter-sectoral
exchange of technologies and organizational innovations. National and regional economies
advance, when companies from one sector set examples for companies from other sectors, and
diffusion of best practices promotes sustainable growth.
For the purpose of determining factors and preconditions for highly effective clusters
that spur regional growth, analysis of best foreign practices in cluster development is to be of
our academic interest.
Case Analysis of Cluster Initiatives Development in Advanced Economies
According to expert opinion, in advanced economies, the contribution of clusters to GDP

(Gross Domestic Product) is about 50%. In 2018 USA had 380 clusters, Great Britain – 168, the
Netherlands – 20, Germany – 32, Denmark – 34, France – 96, Italy – 206, Finland – 9, India –
106. The production sector in Scandinavian countries for the most part consists of clusters
structure (Porvatkina, 2011).
International experience in clustering shows that most of the clusters in advanced
economies are formed on regional levels. Among distinct characteristics of clusters are their
unique internal environment, infrastructure and regional macro system level, and also their
capacity to utilize competitive advantages in the regions by means of participants’ integration
(Nahar & Inder, 2002; Moreno et al., 2005).
Worldwide recognized clusters are “Silicon Valley” (USA), London technical cluster
(Great Britain), Information technologies, electronics, biology and pharmacology cluster
“Sophia Antipolis” (France), Special economic zone (SEZ) “Technopolis Moscow - Zelenograd”
(Russia) that is a key driver of new industrial Moscow and is dedicated to the development of
innovative ecosystem of the city by creating favourable conditions for localization of high-tech
companies.
It is to be noted that among bench-marking countries there can observed a certain
specialization depending on regional conditions and competitive advantages. Thus, in Great
Britain the most frequent clusters are bio-technical and agro-industrial, car assembly, financial
services, tourism, and furniture clusters. Consumer goods manufacturing clusters are most

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128 frequent in Italy. French clusters produce electronics, consumer goods, plastic, and food.
The priority industries of SEZ Zelenograd - Moscow in Russia are Microelectronics, Optics
and Electronic Equipment; Medtech, Medical Devices, and Life Science; Energy Efficiency;
Advanced Materials, Surfaces and Nanotech; ICT. Advanced manufacturing creates the key
hubs of Moscow's innovative ecosystem dedicated to localization of hi-tech companies and
research facilities. In USA biotechnology, pharmacology, aerospace engineering, computer and
information technologies, and telecommunication services clusters are most significant (Kocker
& Muller, 2015). Besides, innovation-oriented cluster development is a common tendency that
can be observed in all countries.
Special attention should be given to practices of such countries as USA, Canada, China,
Finland and Germany, as they are considered to be leaders in cluster development. USA was the
pioneer in implementing the cluster approach. In the present work we study the development of
pharmaceutical and aerospace clusters in the USA in detail.
Pharmaceutical, bio-technical and bio-medicine clusters are built close to universities
and research laboratories of the corresponding specialization, and, as a rule, form industrial
parks (Shapira, 2008). One of the main parks in pharmaceutics and biotechnology is “Triangle
Park” in North Carolina, created in 1959. The cluster encompasses around 200 enterprises with
over fifty thousand people on staff (Rykhtik, 2011), 4 universities, specializing in bio-medical
engineering and molecular bio-technology; venture companies that invest millions of dollars in
large and small enterprises, and the startups located in the park. Around 80 companies in the
park are operating in pharmaceutical and bio-technological spheres with the total number of
personnel exceeding ten thousand. Not only enterprises, but also large scientific and research
institutes are located in Technopark, such as National Institute of Environmental Health Sciences
(NIEHS), Research Triangle Institute (RTI), National Institute of Statistical Science (NISS),
Inter-university Research Center, Statistics and Mathematics Institute, National Humanities
Center and others. Some of the companies that the park houses are IBM, BASF Crop Protection,
Bayer Crop Science, Monsanto Corporation, Nufarm Americas, and Syngenta.
Innovative approach, developed infrastructure, active interconnection of participants due
to concentration of organizations on the same territory attract American and foreign investors.
80% of jobs are created by multinational companies. In 2016-2017 international companies
invested 460 million dollars in the development of the park and created more than 2600 jobs
(Panarina, 2017). Success of the park is largely determined by intensive collaboration of
the state, businesses and universities. Among other specific features of the park are multiple
recreation areas with natural landscapes, high-quality living facilities for employees, developed
infrastructure, and convenient location of universities. All of this not only attracts employees,
but also increases their loyalty.
A specific feature of development and operation of aerospace clusters in USA is that its
participants are not concentrated in one geographic region. Two regions can be singled out in
USA that specializes in aerospace engineering: 1. Cluster of Seattle, Tacoma and Olympia in
the State of Washington (Northwest of USA); and 2. Cluster of Phoenix in the State of Arizona
(Southern border of USA).
The first and world’s largest aerospace cluster is located in the State of Washington with
its history going back to 1916 in the city of Seattle. Currently around 132.5 thousand employees
from 1350 organizations are engaged in aviation industry in Seattle. The most famous company
is Boeing. Also, a large number of high-tech enterprises are involved in aerospace industry,
among them we can name such as “Aerospace Industrial” (search and navigation equipment),
“Aaco Avionics” (special electronic equipment and devices), “FLAerospace” (navigation
devices) and others. Companies within the cluster not only contribute to the aerospace industry
in the USA, but also hold a unique position in the creation chain of world aerospace products.
The following universities are central to clusters – University of Washington (Seattle), that

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specializes in researching new aerospace technologies and Washington State University 129
(Pullman), that designs new engineering programs.
In the second region with the centre in Phoenix, the aerospace sector is represented by
more than 1200 companies that include “Lockheed Martin Corp.” (wide range of products
for aviation space sector), “Honeywell International Inc.” (various equipment and devices),
“Space Manufacturing Inc.” (navigation equipment) and others. Export revenue of aerospace
companies increased by 22% in the period from 2015 to 2018 and reached 3.5 billion dollars.
According to American researchers, due to the companies of the State of Arizona USA, they
became the third-largest supplier of aerospace products in the world (Lindqvist et al., 2013).
Canada is one of the demonstrative examples of innovative clusters. Geographical,
economic and political closeness of the country to USA largely determines specifics of cluster
organization in the country. Today Canada has about 50 technological clusters of various
size and development stages. The Science and Research Council and the Canada Institute
for Scientific and Technical Information play important roles in the development of cluster
structures. The Science and Research Council points out the following preconditions for creation
of effective clusters: interest on the part of the local population; presence of a university or a
research centre in the area; availability of principal technology for development of a cluster;
developed information infrastructure; human resources; investments, including venture capital
investments. Clusters in Canada are formed either on the basis of an already existing regional
industrial infrastructure, or by establishing a research centre that will be the centre of a future
cluster.
Aero Montreal aerospace cluster (Quebec, Canada), founded in 2006, contributes
significantly to the Canadian economy. The cluster serves as a research centre and was built
around an aerospace technology centre. The cluster includes world-class manufacturers,
universities, scientific centres and suppliers of different elements of value chain creation. It is
formed by 204 companies and 190 small and medium enterprises with 41750 employees. Its
unique feature is that all enterprises involved in construction of aircraft components are located
in one area. Its sales volume is 13.8 billion dollars, 80% of which are from export sales. The
cluster creates 55% of the jobs in Canadian industry. The aerospace cluster contributes to GNP
(Growth National Product) about 1.85% more than other national sectors (Lenchuk & Vlaskin,
2010).
The cluster policy of China is focused on improvement of already existing manufacturing
clusters and their transformation into innovative ones by means of collaborative creation of
radically new products. Clusters are initiated by the state through grants and investments.
One of the successful clusters in China is high-tech Zhanjiang cluster (Geng & Hengxin, 2009),
which was founded as per special resolution of the PRC (the People's Republic of China)
Government in 1992. The cluster was formed in the economic development area of Pudong. The
state was actively involved in the creation of the cluster. In 1999 its principal direction of activity
became biopharmaceutics, computer software and integrated circuits. The park houses 11 state
manufacturing facilities, 5380 residents, and 108 research institutions. About 120000 people
are employed in the park, with about 60000 of them being engineers and technical specialists
(Geng & Hengxin, 2009). Throughout its operating history, there have been submitted 9142
patent applications and 2205 patents have been received. By 2018, the cumulative production
value reached 6.54 billion dollars, with export revenue being 2.9 billion dollars.
Finland´s economy is also an interesting example of cluster development. Clusters
are created in promisingly developing industries, where there is a necessary potential for
development. The wood industry cluster is considered the “strongest” in Finland. It incorporates
logging, woodworking, pulp and paper sectors, related engineering and machine manufacturing
sectors, and also educational institutions and specialized research centres. The main products
of woodworking and pulp and paper sectors are paper, cardboard, sawn wood, pulp, plywood,

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130 wood board, and joinery. The wood industry cluster contribution to GNP is 5%. At the end of
2018 it accounts for about 20% of industrial output and about 20% of the export revenue of
Finland. About fifty thousand people are employed in the wood industry cluster. Companies
of the wood industry cluster are actively engaged in innovative development, investing about
two thirds of cumulative investments in research and development of engineering. The state
also assists in financing various innovative projects related to creating new technologies and
materials.
Analysis of the first clusters in Germany indicates that the clusters developed “from the
bottom”. They were mainly initiated by local authorities. Many regional clusters started and
developed with no involvement from the state, which is explained by the federal structure of the
country. Only in 2003 did German authorities begin giving high priority to high-tech projects.
Today the clusters in Germany are created based on “triple helix” concept, i.e. collaboration
of government, science and business. In addition to that, Germany promotes exchange of
knowledge and innovations between key economic sectors to enable its full-scale development
(Chemical parks and sites in Germany, and online resources). Since the 1980s Germany
has been specializing in the chemical industry. Clusters in the country not only have close
technological connections, but also have collaboration agreements between residents, which
implies the creation of associations. Associations of chemical manufacturers are created in
several federal states of Germany. In the North Rhine Westphalia region, there are two chemical
clusters – in Ruhr region as part of the Ruhr coal field and chemical parks of the Rhine region.
One of the largest European chemical unions - ChemSite association, was created in 1997 in the
Ruhr region. It represents a good example of collaboration between government, science and
business. It comprises 11 chemical parks, located in the densely populated region of Germany
with developed infrastructure, including highways, water routes and railroads; and about 400
large and small member companies including start-ups, universities, research centres and Ruhr
region authorities and public members. Enterprises – cluster residents and also end product
consumers are located close to each other. Cluster parks specialize in manufacturing of semi-
finished products, ethylene, phenol, alkaloid, solvents, polyester, coal, tar, bitumen, aromatic
hydrocarbons, methanol, ammonia, and industrial gases. The cluster has a high human potential
with the number of employees being one hundred thousand people.
The second association ChemCologne consists of large enterprises with over 1000
employees each. Altogether the association is comprised of 150 organizations with over seventy
thousand people on staff. Activity of enterprises within the association is characterized by high
innovative activity and high capital intensity. The centre of this cluster is formed by chemical
park in Leverkusen, chemical park Knapsack, petroleum refinery Shell, that are located close
to transport junctions, pipelines and also energy providers. In addition to that, the cluster
encompasses enterprises from other sectors, machinery manufacturing, logistic and marketing
companies.
Analysis of foreign practices in cluster-type development by Britsko (2013), Ketels
(2004, 2013, in press), Lenchuk and Vlaskin (2010), Liberati et al. (2016), Kocker and Muller
(2015), Moreno et al. (2005), Sölvell and Williams (2013) allows one to determine preconditions
for creation and effective operation of clusters (Table 1).

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Table 1 131
Preconditions for Creation and Development of Clusters in Foreign Countries
Country Preconditions
• proximity to universities or research centres;

• developed infrastructure;
USA • attracting investments, including venture capital investments;
• high human capacity;
• developed network of supporting organisations
• the interest of the local population in the creation of a cluster;

• location on university or research centre grounds;
• available technology for the development of a cluster;
Canada • developed information infrastructure;
• high capacity of local human capital;
• attracting investments, including venture capital investments;
• enhanced geographical localisation of cluster participants
• promisingly developing industries base;

• economic and human potential of an industry;
Finland
• developed infrastructure;
• network of supporting organisations
• the convenient location of universities and research centres;

• human potential in the region;
Germany • developed infrastructure;
• presence of supporting organisations in the region (financial, logistics, information, etc.);
• regional government policy supporting cluster development
Source: author’s elaboration of the data systematisation
Systematisation of preconditions suggests similarity of criteria for successful cluster-

type development of regions. First of all, effectiveness of foreign cluster structures is linked
to developed business infrastructure, innovation-oriented entrepreneurial activities, long-term
interaction with research centres and universities, highly qualified personnel and investments
in new technologies and products. Efficiency of a cluster structure is based on effective
interaction between all levels (participants) within the cluster. Establishment, implementation
and improvement of this interconnection mechanism is a process managed by both members of
a cluster and state non-commercial organizations.
Analysis of Trends and Factors of Cluster Development in Russian Regions
In Russia clusters are located in the following regions: Moscow special economic zone
(Technopolis Moscow – Zelenograd), Saint-Petersburg (Saint Petersburg Cluster of information
technologies and info-telecommunications; Saint Petersburg Cluster of medical, pharmaceutical
industries and radiation technologies), the Republic of Tatarstan (Kama Innovative Territorial
Industrial Cluster), Nizhny Novgorod region (Industrial Innovative Cluster of motor vehicle
construction and petrochemical production), Perm region (Rocket Engine Construction Cluster
Technopolis “Noviy Zvezdniy”), Samara region (Samara aerospace innovative territorial
cluster), the Republic of Bashkortostan (Petrochemical Regional Innovative Cluster), Ulyanovsk
region, etc.

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132 We have analysed the competitive advantages of some innovative territorial clusters in
Russia in more detail by the works of Bek et al. (2013), Ivanov et al. (2009), Kuznetsova and
Roud (2014), Kutsenko (2015), Maslikhina (2016), Panarina (2016, 2017, in press), Romanova
and Lavrikova (2008), Sandler and Kuznetsov (2015), Yashin et al. (2017), Volkonitskaia
(2015) and others.
One of the successful examples of cluster-based concept is the rocket engine construction
cluster Technopolis “Noviy Zvezdniy” in the Perm region, which encompasses research and
production potential of companies engaged in rocket and aviation engine construction, and
manufacturing of high-tech products of power engineering industry in Perm region. Leading
regional science and education institutions play a key role in the cluster – Perm National
Research Polytechnical University, Perm State National Research University, and the Perm
Scientific Centre of Russian Academy of Sciences. For the purposes of forming innovative
cooperation and giving cluster members access to innovative ideas and technologies, the core
companies of the cluster interact with external organizations – with over 1500 medium and
small businesses. One of the unique characteristics of this cluster is historical cooperative
relationships between companies: JSC Proton-PM, JSC UEC - Perm Engines, JSC UEC
Aviadvigatel, JSC NPO Iskra, JSC PZ Mashinostroitel, JSC Perm scientific and instrument
engineering company. Each company is a leader in its own segment of machine-building
industry. For example, JSC Proton-PM holds a monopoly on the manufacture of the RD-276
engine that has some of the best indicators in the world market of launch vehicles for value of
inserting 1 kg payload into orbit and launch safety (safety factor – 0,998). The missile-carrying
aircraft Proton successfully competes in the world market of vehicles launching payloads into
outer space. The Turbojet engine PS-90A manufactured by JSC Perm Engines provides an
opportunity to improve the cost-effectiveness of new generation aircraft by almost two times
and to ensure their compliance with world ecology standards. Interaction of separate cluster
participants is carried out within the framework of the national Technological platform ‘Minor
Distributed Energy’ and in cooperation with the JSC Russian Corporation of Nanotechnologies
and Venture Fund Skolkovo (Moscow). However, a negative factor should be pointed out — the
cluster does not have a designated organization to manage and coordinate development of the
cluster, its strategic core, and the need for establishing such an organization is recognized by
all members.
The Samara aerospace innovative territorial cluster enjoys scientific, educational and
production-technological chains that were established in the soviet time economy and today
determine specialisation of economy in the region. The cluster specializes in development of
missile-carrying aircraft, space vehicles, airplanes, gas turbine and rocket engines, accessories
and components, and electronic equipment. The cluster is made of three sub-clusters: 1)
space and missile; 2) aircraft manufacturing; and 3) engine technology. Besides, the cluster
includes higher education establishments that train specialists and carry out research for all
the sub-clusters – Samara State Aero-space University and Samara State Technical University.
Cluster participants possess a significant potential in research and development, and production
and technology. So, more than 40% of personnel are engaged in research and development.
Enterprises forming the core of the cluster are recognized as leaders of this market in Russia. For
example, JSC SRC Progress is the head organization in Russia that develops missile-carrying
vehicles of medium class and Earth remote- sensing space vehicles. JSC “Kuznetsov” is the
largest engineering and development complex for creation of rocket and gas turbine engines
in Russia. JSC ‘Aviator – aviation plant’ is a part of Russian Machines holding, and produces,
repairs and does maintenance of TU-154 and AN-140 airplanes, and supplies components
for aviation machinery. Established development institutes and a network of infrastructural
organizations actively operate on the territory of the cluster to support and promote innovative
solutions.

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Products manufactured by Kama innovative territorial industrial cluster of the Republic 133
of Tatarstan are supplied to both internal Russian and world markets. About 40% of all synthetic
rubber in Russia, every third Russian truck and every third tire are manufactured in the cluster.
The cluster enjoys a powerful innovative potential. Participating leading scientific-research
and educational organizations supply the cluster with qualified personnel, ground-breaking
innovative solutions in chemistry, petrochemistry and automobile production, and effectively
transfer technologies into production via innovative infrastructure facilities. Development
of this cluster should lead to creation of an innovative economic centre on the territory of
the Republic of Tatarstan that will encompass high-tech industrial sectors to the economic
complexes, networks of logistic info-communicative centres and comfortable living conditions
for republic residents (Panarina, 2017).
Petrochemical territorial cluster of Bashkortostan Republic unites petrochemical
companies that hold leading positions in the national market. The cluster enjoys enhanced
innovative activity of participants. The cluster development program makes provisions for
the planned investment of about 165 billion roubles, with almost 160 billion roubles coming
from private investors. The cluster includes 11 research and development and five educational
organizations, specializing in petrochemistry. The development of the petrochemical cluster
targets at strengthening its competitive position in the internal and external markets. All
cluster development activities can be conventionally attributed to one of the two directions:
1) production, with the focus to improve production and establish a developed manufacturing
infrastructure; and 2) social, with the focus on creating comfortable environment for living and
development of employees and their family members residing on the territory of the cluster.
With that, the main activities on developing manufacturing infrastructure are concentrated on
activating small and medium innovative businesses around large enterprises of the cluster.
The strategic aim of Pharmaceutics, Biotechnologies and Biomedicine cluster of Kaluga
region is to become one of the top three manufacturers of innovative pharmaceutical products
in Russia. That is why the cluster maintains a high rate of economic development. Thus, the
number of employees in pharmaceutical enterprises increased by more than 600 people within a
year and reached 12400 people in 2019. During the period of 2016-2019, the range of finished
pharmaceutical products almost doubled in quantity. At the moment, more than 15 articles
are in the registration stage, and over ten pharmaceutical products are in the process of the
development (different stages of clinical and pre-clinical trials). During the years 2016-2019
volume of manufactured products almost doubled and amounted to 21 billion roubles in 2019.
The members of the cluster devote special attention to development and market launch of
new products, and first of all, to the manufacturing of import-substituting products. For the
purposes of creating the full chain of product development within one cluster, the Centre of
pre-clinical trials was established according to GLP (Good laboratory practice) standards. One
of the advantages of this cluster is its highly innovative activity. The cluster encompasses about
38 small innovative and special purpose companies. More than 70% of products produced by
participating companies are innovative.
The information above enables us to describe main factors of creation and development
of effective clusters in Russian regions, they were systematised in Table 2.

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134 Table 2
Preconditions for Forming the Innovative Territorial Clusters in Russia
Clusters Preconditions
Innovative territorial cluster of • developed manufacturing and technological capacity of the region;
rocket engine construction Tech- • presence of qualified human potential;
nopolis “Noviy Zvezdniy”, • development and application of innovative technologies;
Perm region • steadfast stand on internal and external markets;
• enhanced geographic localization of the participants;
• available natural resources necessary for further development of existing
and new participants;
• the interest of regional authorities in innovative development of the cluster
Samara territorial aerospace • enhanced geographic localisation of major production sites;

innovative cluster • availability of powerful science and educational potential;
• high level of cooperation between the cluster members;
• available legislative and regulative framework and innovative infrastructure
with exhaustive provisions for government support of innovations
Kama innovative territorial indus- • beneficial economic and geographic position;

trial cluster, • developed connections in the ‘government-science-business’ system;
Republic of Tatarstan • enhanced geographic localisation of its members (largest enterprises are
located within a 30-kilometre radius);
• elaborated mechanisms for developing scientific infrastructure and interna-
tional scientific connections, and also approaches for engaging educational
organisations within the cluster into personnel training and development;
• in-depth developed actions for improving transport, energy, engineering and
social infrastructures
Petrochemical territorial cluster, • location in one of the key petrochemical industry agglomerations in Russia;
Bashkortostan Republic • considerable potential for developing contemporary petrochemical produc-
tion;
• high investment activity of cluster members
Pharmaceutics, Biotechnologies • enhanced innovative activity;
and Biomedicine cluster, Kaluga • highly competent cluster management team;
region • the effective business model of members’ interaction;
• balanced high-tech chain for development and market launch of finished
pharmaceutical and biomedical products;
• developed a system of networking collaboration for achieving synergy in
world level researches and personnel training;
• beneficial geographic location in proximity to a large consumer market;
• a high rate of social economic and innovative development of the region,
favourable investment climate;
• developed system of benefits and preferences for research and innovative
companies in the region.
Source: author’s elaboration of the data systematisation
Analysis of clusters in several regions in Russia enables us to define some general

characteristics that determine the competitiveness of these clusters in the market.
1. Long-standing business activity history of cluster members. Throughout the years of their
presence in the market, manufacturers have managed to build up production and financial
potential, decrease losses and develop partnership connections.
2. Powerful academic potential of the territories on which clusters are based. In the studied
regions, the number of academic establishments considerably exceeds the average Russian
figures. Close connections with manufacturers enable the fast market launch of innovative

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solutions in the form of finished products and contribute to solving the problem of human 135
resources, which positively affects competitiveness.
3. Principles of specialisation and labour division are in widespread use. All clusters demonstrate
a high level of specialisation between members.
4. Available supporting infrastructures in regions – industrial parks, techno-parks, special
economic areas, etc.
5. The formation of clusters from groups of heterogeneous companies and organisations,
interested in pooling together their resources with the purpose to jointly resist market fluctuations
and to improve their chances for state support.
The above-listed characteristics of Russian clusters partly coincide with general factors
of successful clustering in advanced countries. Alongside that, Russian clusters possess a
considerable innovative growth potential, that has not been fully discovered yet.
Research Problem
The relevance of the cluster concept of regional management is increasing due to

strengthening of geographic competitiveness and the need to improve business models of
innovative growth, in order to be able to keep up with the accelerated rate of scientific and
technological advances and to ensure sustainable growth of social and economic systems.
Contemporary economic policy of Russia views clusters as an innovative tool for developing
regions, which is based on the balance between business freedom and state interests in social
and economic growth of territories and the country in general. Territorial clusters are considered
effective tools for achieving sustainable economic growth in a region. Their successful
development is a decisive condition for creating a new business model with the priority in
innovative upgrade.
The investigation continued with the survey of 68 businesses involved in three regions
of economy clusterisation distributed around Russia. The initial interview with the head of the
Regional Development Agency (Moscow) was held to determine the major factors for possible
weaknesses and strengths for clusters’ formation and functioning and the basic assessment of
the external environment to complete the portrait of the region’s level of development with the
main indicators used in policymaking to measure progress.
The structure of the discussion comprised three sections. The first section addressed the
degree of economic development in the major economic regions and the skewness of wealth
distribution, analysing the causes for business performance and identifying which indicators
are used to measure sustainability. The second section focused on dominant sectors of industry
in the Moscow economic zone (Russia´s capital) and its impact upon the region’s evolution in
the past and as future perspectives. Finally, the third section was dedicated to SMEs and their
absorptive capacity to integrate to the clusters structure.
For the following up analysis with managers we have chosen territories with the most
potential for economic development via innovative activities – Technopolis “Noviy Zvezdniy”
(Perm region), Samara region aerospace innovative cluster and Pharmaceutics, Biotechnologies
and Biomedicine cluster (Kaluga region). All these clusters allocate their spheres of specialisation.
A smart specialisation strategy creates competitive advantages on the international level, first of
all, due to innovative development of mentioned regions, improvement of sectoral management
and engagement of a wide range of interested parties in clustering.
By analysing the operations, the international and inter-sectoral activities, and the long-
term sustainability of the presented above clusters in Russia, half-structured in-depth interviews
were conducted with 50 cluster managers in 2019.

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136 In this qualitative study, we focused on the following questions related to the benefits of
the local environment, added value, cluster management, international activities, and the plans
of these clusters.
• Can the region’s clusters rely on the local environmental benefits?

Most of the clusters included in this analysis rely on local advantages. They try to involve local
business actors, research and educational institutes, and local governments to embed themselves
into the surrounding economic and social environments. Only three cluster managers stated that
local relations do not influence their activities, as they are geographically independent and are
carried out at a national or international level.
• What added value does a cluster provide its members, and how is this value strengthened
by cluster management?
As Figure 1 shows, according to the region’s cluster managers, the major added value of
clusters is generating common research and development projects and providing project funds.
Furthermore, the managers also appreciate that clusters generate knowledge transfers between
members, increase competitiveness, and help members reach international markets and co-
operations. Moreover, according to cluster managers, the two most important advantages for
cluster participants are the option to co-operate and easier access to tendering resources.
Figure 1
Added Value of the Cluster for their Members
Generating common R&D projects
Gaining project funds
Generating international cooperations
Knowledge transfer, technology transfer
Increasing competitiveness of the cluster
Joint communication platform and joint appearance
Services offered by the cluster management
0 2 4 6 8 10 12
Note: by the number of opinions among the 50 cluster managers, 2019
• How typical are inter-sectoral and international co-operations among regional

clusters?
The potential for inter-sectoral or international co-operation is utilised by the clusters in
this region. Three of the clusters involved in this analysis perform inter-sectoral activities and
they have made serious efforts to understand international relations, primarily by following
European models initiating the promotion of a cluster and its international relations. The
clusters have foreign relations due to cluster members.
• How do the clusters view their future operations and objectives regarding their
financing and sustainability?
Considering the cluster organisations’ changes and development, they have clear, well-
defined visions of the future. They plan common research and development and innovation
projects and have set a goal of becoming internationalised. The clusters aim to optimise inter-

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sectoral and inter-cluster co-operation to improve their competitiveness. About cluster financing, 137
fifteen cluster managers said that, without project funds, the operation of their clusters would not
be sustainable. However, most of the interviewees believe that membership fees, revenues from
services, and other activities would finance their clusters’ operation. However, without external
resources, these clusters would be at risk of failing to develop because they cannot achieve
self-sufficiency through their activity and, thus, require external help from both a financial and
a professional point of view. Some interviewees indicated that cluster maintenance does not
depend on direct project resources but on the economic environment and the positive effects
of other forms of support. They considered an international presence, networking activities,
and a common communication platform to be the most important tools. Still, their jobs would
be significantly helped by the provision of infrastructure, low-interest loans, and operative
mentoring activity, too. The clusters’ financial statuses are not sufficiently stable, and the major
difficulty that the managers face is the creation of financial background and the maintenance
of the constant activities of cluster members. As the generating effect of project sources in the
creation of clusters is indisputable, the cluster managers believed that external financial and
non-financial support should be provided to achieve successful operations and development. As
the new trends indicate, one of the most important directions and goals is to reach international
markets and to enhance international and inter-sectoral relations.
• Expectations of various interest groups from implementing cluster strategies

One of the key factors of a successful cluster is the presence of various interest groups
(stakeholders) in the formation of a cluster. It is worth mentioning, that effect, produced by the
functioning of a cluster, can present different values for various cluster participants. Determining
interests of stakeholders (business and academic representatives, investors, partners, regional
and federal authorities) helps to understand incentive factors and expectations from the cluster
development of a region. Expectations of various interest groups from implementing cluster
strategies are presented in the form of Table 3.

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138 Table 3
Interest of Stakeholders in Cluster Strategy of Regional Development
Stakeholders Reason of interest in cluster development

Business representatives Decrease of transaction costs (due to stability of relations); easier access to qualified
workforce (direct dialogue with educational establishments); improving investment
attractiveness of a business (due to the reduction of business risks and high capital
productivity ratio); mitigation of risks at entry into new markets and of potential losses;
collaborative development of infrastructure; deeper business specialisation (opportuni-
ties to create a unique production chain); cost allocation to development and imple-
mentation of innovations; lobbying business interests; growth of a company’s and its
product competitiveness as compared with external competitors; increasing life cycle
of a business by diversifying activities, etc.
Academic sector represent- An opportunity to commercialise its own innovations (transform innovations in clus-
atives ter products); access to commercial sources of financing research and development;
growth of research and development base and infrastructure; employment for gradu-
ates of educational establishments
Investors Receiving high earning power of invested assets; mitigation of risks; guaranteed repay-
ment of capital due to business stability and competitiveness
Partners Mitigation of business risks; long-term sustainable and mutually beneficial partnership;
reduction of transaction costs
Regional authorities Attracting investments into region; competitive growth of a region; sustainable growth
of regional economy based on steady business development; increase of taxable base;
provision of workplaces and reduction of out-migration; improvement of human capital
quality and living standards
Federal authorities Implementing an innovative model of national economic development; an increase of
innovative potential; enhanced country competitiveness in the world markets; complex
development of regions; diversification of the national economy
Source: author’s elaboration of the data systematization
It is necessary to determine the expected effects on various stakeholders when taking

mutually beneficial decisions and considering each other’s interests will ensure the growth’s
synergy. A special role in intensifying cluster-type development of regional economies belongs
to interested regional and federal authorities. In the era of information, companies operate
based on integrated business processes. The state should enable continuous interaction between
all members of innovative-technological economic growth complexity, and also develop
appropriate infrastructure.
Research Results
Due to complex influence of an innovative industrial cluster on a regional economic

system, in Figure 2, it makes sense to present its effect as a model based on the interpretation of
an innovative industrial cluster influence on a regional economic system by in-depth interviews
with 50 cluster managers of three regional clusters distributed around Russia.

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Figure 2 139
Model of an Innovative Industrial Cluster Influence on a Regional Economy
Creation of cost advantages Activation of innovative activity Attracting investments

MICRO-EFFECTS OF
Increase of the occupational level Increase of tax liabilities
CLUSTERING
Personnel competency
Creation of new businesses Production volume increase
development
Increase of budget costs for social

Competitiveness growth and Development of regional
and economic development of a
regional image improvement investment attractiveness
region
MACRO-EFFECTS OF
CLUSTERING Increased export of regional
Improved quality of human capital
Reaching goals of the social and competitive products
economic wellbeing in the region
Diversification and sustainability of

Overcoming economic decay Sustainable GNP growth
the regional economy
By analogy with macro- and micro-environment of organisations, cluster participants

produce micro-effects as they carry out their business activities, which in their turn lead to
macro-changes in the regional economy. Innovative industrial clusters produce a multilateral
impact on the regional economy. In particular, the creation of a new business and related
increase of occupational level (micro-effect of clusterisation) lead to diversification of the
economy and increase the probability of overcoming economic decay (macro-effect). The drive
to reduce costs (micro-effect) ensures a competitive cost advantage, which directly affects
price competitiveness and increases product demand. Due to the close relationship between
manufacturers and academic establishments, three goals are achieved – personnel training,
regular skills enhancement (micro-effect), and spur of innovativeness and increased export of
competitive products (macro-effect). Besides, engagement of academic establishments into
clusters positively affects the quality of human capital in the region (macro-effect). Clusters
stimulate the increase of production volume to ensure sustainable GNP growth (macro-effect).
With the development of clusters, tax liabilities grow, which expands regional budget capacities
to finance territorial social and economic development projects (macro-effect). Inflow of
investments into a cluster project together with production volume growth and high capital
productivity ratio promote higher investment attractiveness and a more favourable image of
a region in general (macro-effect). The suggested conceptual model of clusters’ influence on
regional economies maps micro-effects that result from the operation of a cluster, and lead to
macro-changes in the regional economy.
The key purpose for implementing the cluster concept of economic development is to
achieve territorial social and economic well-being, which is represented by such macro-effects
as higher competitiveness of regional products, enhanced attractiveness of investment, deficit-
free budget, improved human capital quality, sustainable growth of Gross National Product

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140 (GNP) and other components. Clustering of regional economies, as is evident in Russian and
foreign practices, is a compound process with a perspective for sustainable growth of social and
economic systems.
As illustrated above, systematised factors and preconditions of clustering in Russia and
foreign countries prove the similarity of criteria for successful cluster-type development in
regions. First of all, the effectiveness of clusters is based on developed business infrastructure, the
company focus on innovations, long-term connections with scientific centres and universities,
highly qualified personnel and investments in new technologies and products. Alongside that,
the developed structure of connections between all cluster representatives is a binding element,
i.e. a cluster is capable of meeting its targets, with the most important ones being production
expansion, development of export, innovative and human potentials, only when effective and
mutually beneficial relationships of integration and connections of all clusters elements are in
place. Creation, implementation and improvement of such a mechanism should be a managed
process, developing under the guidance of a specialised non-commercial organisation interested
in and responsible for the implementation of cluster projects.
To conclude the analysis of territorial cluster policy, it is worth listing the most significant
factors to consider promoting successful clustering of the Russian economy:
1. Optimum development of state financial motivation system – preferential taxation,
financing, subsidizing, grants, and state orders. Large-scale state support.
2. Developed supporting infrastructure, including financial, manufacturing and
managerial. Extensive application of cluster infrastructural elements – incubators,
accelerators, co-working, techno-parks, competitiveness poles, outsourcing, start-
ups, etc.
3. In-depth development of academic sector; close and active relationship between
universities, research centres and manufacturing companies.
4. Development of venture organizations.
5. Reliance on existing competitive technological potential of local manufacturing
enterprises and scientific organizations.
6. Existence of leading enterprises that are able to be in charge of innovative processes
and to consolidate other organizations around them in the period of cluster formation.
7. Available highly qualified world-class specialists.
8. Presence of small businesses in a cluster.
9. Available network for information exchange between small and medium-size
innovative enterprises, educational and research establishments.
10. Establishment of screening procedures for companies entering clusters.
11. Interest of local community in forming a cluster.
12. Active state support for development of clusters. Government should ensure
interaction between all participants of innovative and technological economy growth
process, and by doing so guarantee sustainable growth of regions and of national
competitiveness.
The obtained results have a theoretical and applied relevance for further research in
relation to developing management mechanisms for innovative type clusters. Based on the
above results, it is worth emphasizing that clusters should be viewed as a target for strengthening
competitive positions of territories and the economy as a whole.
Conclusions and Recommendations
In this analysis the focus was made on the relationship between sustainable development,
regionalism and clusterisation of the Russian economy, along with modelling of an innovative
industrial cluster influence on a regional economy and investigating the best foreign and national
practices in implementing and developing industrial cluster policies.

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As presented above, the clusters have become geographic hubs of interconnected 141
companies, start-ups, specialised suppliers, service providers, and associated institutions
and government agencies in a particular field with innovative value for a nation or region.
Clusters arise because they increase the productivity with which companies can compete. The
development and upgrading of clusters is an important agenda for governments, companies, and
other institutions. Local and state government, investors, start-ups, academic institutions are all
intertwined together to be able to bring synergy effect in innovation growth and sustainable
development, and trigger economic activity.
In Russia the cluster development initiatives started to be considered as an important new
direction in economic policy, as it effects in macroeconomic stabilization, market opening, and
production of more innovative products. Based on the above results, it is worth emphasizing
that clusters should be viewed as a target for strengthening competitive positions of territories
and the economy as a whole. The call for further research of theoretical and applied relevance in
relation to developing management mechanisms for innovative type clusters in regional context
of Russia is actual and has the author´s interest.
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proceedings/
Porter, M. (1998). Competitive advantage: Creating and sustaining superior performance. The Free
Press.

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In Porter, M. (Ed.), On competition (pp. 197–287). Harvard Business Review Book.
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https://doi.org/10.1080/0034340032000108688
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tspu.edu.ru/en/archive.html?year=2011&issue=12&article_id=3159
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on Russian Economic Development, 19(4), 366–375. https://doi.org/10.1134/S1075700708040060
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development strategy. Nizhny Novgorod Press.
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Received: November 02, 2020 Accepted: December 06, 2019
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for sustainable development of socioeconomic systems. Problems of Management in the 21st
Century, 15(2), 125-143. https://doi.org/10.33225/pmc/20.15.125
Ekaterina Panarina PhD, Full-time Professor, School of Economics and Business, Anahuac
University, 52786, Naucalpan de Juárez, Mexico.
E-mail: ekaterina.panarina@anahuac.mx
Website: https://www.anahuac.mx/mexico/

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148 Problems of Management in the 21st Century,

Vol. 15, No. 2, 2020
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Problems of Management in the 21st Century, Vol. 15, No.

Scientia Socialis Ltd. & SMC „Scientia Educologica“, Lithuania,

Prof. Dr. Vincentas Lamanauskas, Siauliai University, Lithuania

Dr. Iwona Gorzeń-Mitka, Czestochowa University of Technology, Poland

Prof., dr. Aldona Andrzejczak, University of Economics and Business, Poland

Index Copernicus (IC™ Value): 96.40 (2019).

Address: Scientia Socialis, Ltd.

MANAGEMENT IN A TIME OF RADICAL UNCERTAINTY

THE MANAGEMENT OF ORGANIZATIONAL COMMUNICATION AS A FACTOR

MARKETING INTELLIGENCE: BENEFITS AND IMPLEMENTATION OF ITS BUSINESS

FORMER PLAYERS AS FOOTBALL COACHES IN POLAND

DATA, INFORMATION AND IT SECURITY - SOFTWARE SUPPORT

THE INNOVATIVE INDUSTRIAL СLUSTER CONCEPT OF REGIONAL MANAGEMENT

INSTRUCTIONS FOR AUTHORS ..............................................................................144

GAMTAMOKSLINIS UGDYMAS / NATURAL SCIENCE EDUCATION................................147

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https://doi.org/10.33225/pmc/20.15.76 ISSN 2029-6932 (Print) ISSN 2538-712X (Online)

is very present in the emergence of artificial intelligence, assessment of work, appraisal of 77

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Beck, U. (1992). Risk society: Towards a new modernity. Sage Publications.

Received: June 15, 2020 Accepted: November 12, 2019

Cite as: Jacquinet, M. (2020). Management in a time of radical uncertainty. Problems of

Marc Jacquinet PhD in Economics, Open University of Lisbon, Portugal.

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THE MANAGEMENT OF ORGANIZATIONAL 79

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80 For this reason, this research aimed to understand organizational communication as a

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As noted above, the specialized literature divides Organizational Communication

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• Openness, accessibility and availability of information to all employees; 87

Organizational communication is an essential tool that favors the transformation

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To think about communication is to reflect about a vital process in human existence

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Received: October 10, 2020 Accepted: December 03, 2019

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Dio Caisar Darma

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Source: Authors design

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Implementation and Strategy

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MI is designed through a system specifically for managers and employees throughout

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Received: October 20, 2020 Accepted: December 02, 2019

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https://doi.org/10.33225/pmc/20.15.100 ISSN 2029-6932 (Print) ISSN 2538-712X (Online)

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Instrument and Procedures

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Clubs 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 Average

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GAMTAMOKSLINIS UGDYMAS / NATURAL SCIENCE EDUCATION................................147