Innovative economics and management

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

Gulnaz Erkomaishvili — Wed, 26 Aug 2026 00:00:00 -0500

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 — Wed, 26 Aug 2026 00:00:00 -0500

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, Teona Koncelidze — Wed, 26 Aug 2026 00:00:00 -0500

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, Salome Mzhavanadze — Wed, 26 Aug 2026 00:00:00 -0500

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 — Wed, 26 Aug 2026 00:00:00 -0500

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.

Determinants of Georgia’s Foreign Trade With 3+3 Format Countries

Imeda Paksadze, Ali Riza Sandalcilar — Wed, 26 Aug 2026 00:00:00 -0500

Imeda Paksadze

Batumi Navigation University

Batumi, Georgia

https://orcid.org/0000-0003-3772-9308

Ali Riza Sandalcilar

Recep Tayyip Erdoğan University

Rize, Türkiye

https://orcid.org/0000-0002-9185-6968

ABSTRACT

This study examines the economic dimension of the 3+3 initiative, which emerged in the South Caucasus after 2020, by analyzing Georgia’s foreign trade relations. As part of broader regional cooperation and integration efforts, this framework has the potential to reshape Georgia’s trade orientation and regional economic ties. Against this background, the study seeks to address a gap in the literature by identifying the determinants of Georgia’s foreign trade flows using a panel gravity model.

The empirical findings indicate that the main determinants of Georgia’s foreign trade are economic size and shared borders. In the export models, the distance variable is negative and statistically significant, confirming that greater geographical distance increases trade costs. In contrast, distance and partner-country GDP are statistically insignificant in the import models, suggesting that imports are driven primarily by Georgia’s domestic demand. The common religion variable is negative and significant in most models, indicating that cultural proximity does not have the expected positive effect on trade. Likewise, free trade agreements exhibit limited or statistically insignificant effects.

Overall, the results suggest that economic size and geographical proximity are the primary drivers of Georgia’s foreign trade, while cultural and institutional factors play a more limited role. The findings highlight the importance of strengthening trade relations with neighboring countries and maximizing the benefits of economic growth. They also emphasize the need to support Georgia’s trade policy through infrastructure investment, improved border-crossing procedures, and more effective implementation of free trade agreements

The Impact of Emotion Regulation on Teacher Burnout

Shorena Meskhidze — Wed, 26 Aug 2026 00:00:00 -0500

Shorena Meskhidze

Batumi Shota Rustaveli State University

Batumi, Georgia

https://orcid.org/0000-0001-9801-5347

ABSTRACT

The psychological health of a school teacher is one of the most important prerequisites for achieving the national goals of general education. Professional burnout is a reaction to chronic stress at work, which develops gradually and can eventually become chronic, leading to a weakening of the stability of mental functions, partial loss of working capacity, deterioration of health and even mental disorders. Numerous studies conducted in different countries of the world have shown that the prevalence of emotional exhaustion is highest among school teachers.

Based on the analysis of the scientific literature devoted to the burnout syndrome, a research variable was identified – a specific internal factor characteristic of the teacher’s activity, such as: negative emotion regulation strategies. The empirical study was conducted with a cross-sector design, on a representative sample. The selection was completed using the principle of two-stage stratified random sampling. The measurement error does not exceed 2%. A total of 500 teachers from public schools in the Adjara region were surveyed. Burnout was measured using the Maslach Burnout Questionnaire; emotion regulation – using the Cognitive Regulation of Emotions Questionnaire (CERQ). Adapted Georgian versions of these questionnaires were used. The research data were processed using the SPSS-27 program.

Based on the results of the study, regression analysis confirmed the significant effect of emotion regulation on professional burnout: maladaptive emotion regulation strategies are a contributing factor, while adaptive strategies are protective

Between Trust, Risk, And Innovation: Managing Artificial Intelligence Narratives on The Digital Platforms of Georgian Traditional Media

Mariam Kebadze — Wed, 26 Aug 2026 00:00:00 -0500

Mariam Kebadze

Ivane Javakhishvili Tbilisi State University

Tbilisi, Georgia

https://orcid.org/0009-0009-0678-4882

ABSTRACT

Artificial intelligence has become a visible issue of public communication, raising questions not only about technological progress, but also about trust, risk, responsibility and innovation. This article examines how artificial intelligence narratives are organized on the digital platforms of Georgian traditional media. It focuses on three interrelated narrative dimensions: trust, risk and innovation, and approaches AI-related coverage as a public communication management issue rather than merely as a topic of media representation.

The study is based on a mixed content analysis of 195 valid AI-related publications selected from an initial audit of 230 coding cards. The corpus includes materials published on the digital platforms of four Georgian traditional media outlets: 1TV.ge, Euronews Georgia, Imedi News and Rustavi 2. Each publication was coded according to its dominant content category, while additional analytical attention was given to technological objects, functional emphases, risk elements, trust-related issues and media literacy components.

The findings show that AI-related coverage is dominated by technological and business-oriented news, which accounts for 93 publications, or 47.7% of the analyzed corpus. However, the coverage is not uniformly optimistic. Risk-oriented and verification-related narratives are also visible: the “myth-nightmare” category includes 36 publications, global political competition and information war accounts for 24 publications, and media literacy or fact-checking appears as the dominant category in 26 publications. The “myth-idyll” category, which presents AI through strongly positive or idealized expectations, accounts for 16 publications.

The article argues that Georgian traditional media’s digital platforms organize AI narratives through an uneven but significant interaction of innovation, risk and trust. In a small-language media environment, this narrative structure matters because traditional media platforms remain important intermediaries through which global AI developments are translated into local public communication. Responsible AI communication therefore requires not only frequent coverage, but also balanced explanation of technological opportunities, limitations, risks and accountability mechanisms

Batumi, 1919–1920: British Balancing Policy, Russian Post-Imperial Politics, and Georgian Sovereignty

Davit Batsikadze — Wed, 26 Aug 2026 00:00:00 -0500

Davit Batsikadze

Batumi Shota Rustaveli State University

Batumi, Georgia

https://orcid.org/0009-0000-0785-236X

ABSTRACT

This article examines the relationship between the Russian National Council and the British occupation administration in Batumi during 1919–1920, and its impact on the state interests of the Democratic Republic of Georgia. The study analyzes the role of Batumi as a post-imperial political space within the context of the Russian Civil War and the rivalry among great powers in the South Caucasus. Particular attention is devoted to the political activities of the Russian National Council, the concept of a "united and indivisible Russia," Britain's policy of balancing, and the efforts of the Georgian authorities to secure Batumi's integration within the framework of an independent state.

The research is based on P. Maslov's memoir Batumi in 1917–1920, as well as on Georgian, Russian, and Western historiography, which allows for a comprehensive analysis of the issue.

The study demonstrates that, during 1919–1920, Batumi emerged as one of the principal centers of international political rivalry in the South Caucasus. Despite its declared policy of balancing, the practical measures taken by the British administration frequently strengthened Russian anti-Bolshevik forces. London considered the Batumi question not only in relation to Georgian interests but also within the broader context of the "Russian question," and supported those forces striving to restore a "united and indivisible Russia." At the same time, the Russian National Council regarded Batumi as part of Russia's historical space and did not recognize Georgian independence. As a result, the Batumi question became one of the significant factors shaping international diplomacy and the regional balance of power.

The article argues that the political crisis in Batumi reflected the contradictions of the post-imperial transitional period, in which the idea of national statehood, imperial revanchism, and the geopolitical interests of the great powers intersected

Sustainability of Dual Vocational Education in Georgia: Challenges and Development Opportunities

Maia Toidze — Wed, 26 Aug 2026 00:00:00 -0500

Maia Toidze

Batumi Shota Rustaveli State University

Batumi, Georgia

https://orcid.org/0009-0007-1179-7763

ABSTRACT

This article analyses trends in the development of dual vocational education and training (dual VET) in Georgia, the challenges affecting its sustainability, and opportunities to improve the model. The study combines a comparative analysis of Georgian and European experience with official statistics for 2016–2025 and the practical experience of educational institutions and partner organisations involved in delivering dual programmes. Its purpose is to assess the current state of dual VET in Georgia and examine the institutional, financial and dual programme-development mechanisms that shape the model’s flexibility and sustainability within the national vocational education system. The findings show that between 2016 and 2022 dual VET developed through piloting, accumulated experience and gradual expansion. From 2023 onwards, however, the number of dual programmes, enrolments and implementing institutions fell sharply. Following the introduction of legal rules governing training-enterprise status, obtaining that status became a major systemic challenge. Only 21 companies had obtained it, suggesting that the new requirements were not equally realistic across sectors. The construction sector is especially illustrative: some partner companies prefer short-term training and direct recruitment to participation in a lengthy dual programme. The article also examines the requirement that more than half of the credits in vocational modules be achieved in a real working environment. Current funding rules and Education Management Information System (EMIS) administration link this requirement to a strict allocation of learning outcomes between the institution and the training enterprise. This can produce mechanical divisions that do not sufficiently consider where and when a competence can best be developed. The article therefore recommends revising the operating model, making the award of training-enterprise status more flexible and supportive, and aligning funding and EMIS rules with the practical needs of dual learning