Innovative economics and management

The Role of Digital Transformation in the Implementation of Mineral and Freshwater Export Policy in Georgia

Gulnaz Erkomaishvili — 2026-08-26

Gulnaz Erkomaishvili

Ivane Javakhishvili Tbilisi State University

Tbilisi, Georgia

ABSTRACT

The need for the digitalization of processes in all areas is growing with increasing intensity today. Digital transformation enables new interactions between system units and creates entirely new experiences and opportunities for users.

The study highlights that it is crucial for Georgia's development to thoroughly understand the significance of digital transformation, develop an appropriate strategy, and develop mechanisms for the involvement and cooperation of all stakeholders in this process.

The study presents the role of digital transformation in the implementation of Georgia's mineral and freshwater export policy.

Mineral and freshwater production has long occupied an important position in the Georgian economy. This is due to the naturalness of the raw materials, their abundance, cheapness, stability, renewability, non-seasonality, high quality, competitiveness, and, above all, the short payback period. In this context, it must also be taken into account that Georgia is located in the middle of countries where there is an acute shortage of drinking water.

The study showed that the use of digital tools in mineral and freshwater companies has contributed to business efficiency. They have enabled the automation of routine tasks, reduced human errors, built databases, reduced costs and increased productivity, improved communication, optimized business processes, and much more. Digital platforms have made it possible for employees in certain positions to work from home, making work within the company more flexible.

Export policies have also become easier thanks to digital platforms. There are now many ways to communicate directly with customers and understand their personal needs.

Integrating Management Accounting for Sustainable Performance: Environmental Costs and Green KPIs in the Coal Mining Industry of Kazakhstan

Beibit Korabayev — 2026-08-26

Beibit Korabayev

L.N. Gumilyov Eurasian National University

Astana, Kazakhstan

https://orcid.org/0000-0003-0420-9517

ABSTRACT

This study develops an applied framework for integrating management accounting with environmental management in coal mining companies of Kazakhstan. It demonstrates how an expanded costing architecture-Environmental Management Accounting (EMA) combined with Activity-Based Costing/Budgeting (ABC/ABB) and Life-Cycle Costing (LCC)-alongside a system of green KPIs, can be used to manage sustainable performance. The proposed approach supports the reduction of unit environmental costs, improvement of environmental intensity indicators (tCO₂e per ton, m³ of water per ton, land reclamation rate), and the maintenance of profitability and investment attractiveness. Building on the concepts of dual-criteria optimization and a threshold environmental payment coefficient (EPC), the paper offers practical calculation tools for selecting Best Available Techniques (BAT) and for estimating the break-even point for environmental payments. Illustrative statistical examples (based on simulated data) are provided to demonstrate: (1) trends in environmental costs per ton, (2) an aggregated enterprise “green” score based on KPI sets, (3) the correlation between green KPIs and EBITDA margin, and (4) the estimation of the EPC threshold beyond which operations become economically unviable.The proposed framework can serve as a methodological basis for implementing green controlling and environmentally integrated budgeting systems in Kazakhstan’s coal mining sector.

Trends and Development Opportunities for Equipping the Logistics Sector in Georgia with Innovative Technologies

Irma Chkhaidze — 2026-08-26

Irma Chkhaidze

Batumi Shota Rustaveli State University

Batumi, Georgia

https://orcid.org/000-0003-4430-181X

Teona Koncelidze

Batumi Shota Rustaveli State University

Batumi, Georgia

https://orcid.org/0009-0001-0067-8300

ABSTRACT

This paper identifies the main changes and modern trends in the field by studying the evolutionary stages of the development of transportation logistics. The study analyzes the role of innovative and digital technologies in the development of transport logistics, as well as modern technical-technological and organizational-functional approaches. which contribute to improving the efficiency of logistics processes, operational flexibility, and service quality.

The key trends are presented, the application of which will significantly impact the sector's development and the improvement of the current situation. The discussion covers the digital transformation of logistics, process automation, the integration of data analytics and artificial intelligence, the development of intermodal transport, and modern approaches to effective supply chain management. The implementation of these trends in the logistics sector will be based on increased operational efficiency, cost optimization, and enhanced competitiveness of the sector at both local and international levels.

Georgian startup companies operating in the field of logistics are discussed: Cargon, OMOFOX, QuickShipper and Cardeal. The main directions of their activities, the practice of implementing modern digital and innovative technologies, as well as how these innovations contribute to optimizing logistics processes, improving service quality, and how these innovations contribute to optimizing logistics processes, improving service quality, and increasing supply chain efficiency. It discusses how these companies are transforming the logistics sector, creating new business opportunities, and strengthening competitiveness in both local and international markets.

The advantages and weaknesses of the logistics platforms created by Georgian startups are identified. The study evaluates their functional capabilities, technological development, customer-oriented services, efficiency of delivery processes, quality of digital integration, and level of market adaptation. Aspects such as service speed, operational flexibility, use of innovative technologies, customer experience, and competitiveness in the local market were analyzed. Current challenges have been identified, including limited technological resources, difficulties integrating with international networks, limited financial capabilities, and barriers to expansion into the global market.

Technological Mechanisms for Assessing Service Quality and the Characteristics of Their Application in Georgia

Gela Mamuladze — 2026-08-26

Gela Mamuladze

Batumi Shota Rustaveli State University

Batumi, Georgia

https://orcid.org/0000-0003-4194-7025

Salome Mzhavanadze

Batumi Shota Rustaveli State University

Batumi, Georgia

https://orcid.org/0009-0007-4620-7858

ABSTRACT

Against the backdrop of global economic transformation in the twenty-first century, the service sector has emerged as the primary source of economic growth and competitive advantage. In recent years, service quality and its assessment have become significant challenges, driven by escalating consumer expectations, rapid advancements in digital technologies, and intensifying global competition. According to Service-Dominant Logic theory (Vargo and Lusch, 2016), the global economy has progressively transitioned from tangible goods toward intangible, service-oriented models, generating new imperatives for the assessment of service quality.

Service quality and digital technologies are today inextricably intertwined. The integration of digital technologies is fundamentally reshaping the mechanisms through which service quality is evaluated. The strategic significance of this domain is further underscored by the trajectory of investment in artificial intelligence within the marketing sector, which grew from $191.5 million to $1.38 billion between 2018 and 2024 (MasleJ *et al*, 2025).

The present study examines the role of service as a principal driver of economic activity, contemporary trends in international trade in services, and the modern digital mechanisms employed in service quality assessment, among other dimensions. The paper concludes with recommendation for enhancing and refining existing service quality assessment frameworks.

The Role of Management and Owners in Change

Tinatin Gogashvili — 2026-08-26

Tinatin Gogashvili

Caucasus International University

Tbilisi, Georgia

https://orcid.org/0009-0007-1760-4408

ABSTRACT

Introduction. A company’s top management and its owners play a leading role in developing the organization and managing its organizational changes. This is so natural that their role is reflected in all models of organizational development and change management. L. Greiner's model of organizational change asserts that the primary impetus for change should come from top management. However, an understanding of the need for change may be brought to the organization not by the leader, but by someone else: for example, the owner or an ordinary employee. Implementing change requires the support of top management.

Methodology. The methodological basis of the study is the method of dialectical cognition, a system of rules formulated from known patterns in the field of study. This method served as a guide for us throughout the research process. Obviously, we used the tool of the dialectical method of cognition - dialectical logic, which allowed us to technically implement the formulation of the research principles, develop approaches to the object and subject of the research, and theoretically substantiate the truth of the forms through which we achieved the desired goal.

The results are presented in two algorithms developed by the author: the first describes the owner's decision to transfer management to a professional manager, and the second outlines the stages of the consulting process.

The conclusion states that the activities and views of the organization's owners and managers significantly affect not only the processes of organizational change but also the trajectory of the organization’s development. As for the educational effect of consulting, it is perhaps the most important. The choice of methods and the degree of client involvement can strengthen or weaken this effect.